☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 91-1653725 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
8950 Cypress Waters Blvd, Coppell, TX | 75019 | |||||||
(Address of principal executive offices) | (Zip Code) | |||||||
(469) 549-2000 | ||||||||
Registrant’s telephone number, including area code | ||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common stock, $0.01 par value per share | COOP | The Nasdaq Stock Market |
Large Accelerated Filer | ¨ | Accelerated Filer | x | ||||||||
Non-Accelerated Filer | ¨ | Smaller reporting company | |||||||||
Emerging growth company |
Page | ||||||||
PART I | ||||||||
Consolidated Balance Sheets as of | ||||||||
Consolidated Statements of Operations (unaudited) for the Three and Nine Months Ended | ||||||||
Consolidated Statements of Stockholders’ Equity (unaudited) for the Three and Nine Months Ended | ||||||||
Consolidated Statements of Cash Flows (unaudited) for the | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
September 30, 2020 | December 31, 2019 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 946 | $ | 329 | |||||||
Restricted cash | 229 | 283 | |||||||||
Mortgage servicing rights, $2,663 and $3,496 at fair value, respectively | 2,669 | 3,502 | |||||||||
Advances and other receivables, net of reserves of $191 and $175, respectively | 745 | 988 | |||||||||
Reverse mortgage interests, net of purchase discount of $125 and $114, respectively | 5,460 | 6,279 | |||||||||
Mortgage loans held for sale at fair value | 3,817 | 4,077 | |||||||||
Property and equipment, net of accumulated depreciation of $84 and $55, respectively | 114 | 112 | |||||||||
Deferred tax assets, net | 1,344 | 1,345 | |||||||||
Other assets | 6,431 | 1,390 | |||||||||
Total assets | $ | 21,755 | $ | 18,305 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Unsecured senior notes, net | $ | 2,167 | $ | 2,366 | |||||||
Advance and warehouse facilities, net | 4,851 | 4,997 | |||||||||
Payables and other liabilities | 6,590 | 2,016 | |||||||||
MSR related liabilities - nonrecourse at fair value | 1,091 | 1,348 | |||||||||
Mortgage servicing liabilities | 44 | 61 | |||||||||
Other nonrecourse debt, net | 4,671 | 5,286 | |||||||||
Total liabilities | 19,414 | 16,074 | |||||||||
Commitments and contingencies (Note 15) | |||||||||||
Preferred stock at $0.00001 - 10 million shares authorized, 1.0 million shares issued and outstanding, respectively; aggregate liquidation preference of 10 dollars, respectively | 0 | 0 | |||||||||
Common stock at $0.01 par value - 300 million shares authorized, 92.0 million and 91.1 million shares issued, respectively | 1 | 1 | |||||||||
Additional paid-in-capital | 1,120 | 1,109 | |||||||||
Retained earnings | 1,243 | 1,122 | |||||||||
Treasury shares at cost - 1.2 million and 0 shares, respectively | (24) | 0 | |||||||||
Total Mr. Cooper stockholders’ equity | 2,340 | 2,232 | |||||||||
Non-controlling interests | 1 | (1) | |||||||||
Total stockholders’ equity | 2,341 | 2,231 | |||||||||
Total liabilities and stockholders’ equity | $ | 21,755 | $ | 18,305 |
March 31, 2020 | December 31, 2019 | ||||||
(unaudited) | |||||||
Assets | |||||||
Cash and cash equivalents | $ | 579 | $ | 329 | |||
Restricted cash | 266 | 283 | |||||
Mortgage servicing rights, $3,109 and $3,496 at fair value, respectively | 3,115 | 3,502 | |||||
Advances and other receivables, net of reserves of $193 and $175, respectively | 685 | 988 | |||||
Reverse mortgage interests, net of reserves of $3 and $3, respectively | 5,955 | 6,279 | |||||
Mortgage loans held for sale at fair value | 3,922 | 4,077 | |||||
Property and equipment, net of accumulated depreciation of $65 and $55, respectively | 111 | 112 | |||||
Deferred tax assets, net | 1,411 | 1,345 | |||||
Other assets | 1,569 | 1,390 | |||||
Total assets | $ | 17,613 | $ | 18,305 | |||
Liabilities and Stockholders’ Equity | |||||||
Unsecured senior notes, net | $ | 2,259 | $ | 2,366 | |||
Advance facilities, net | 489 | 422 | |||||
Warehouse facilities, net | 4,551 | 4,575 | |||||
Payables and other liabilities | 1,965 | 2,016 | |||||
MSR related liabilities - nonrecourse at fair value | 1,285 | 1,348 | |||||
Mortgage servicing liabilities | 53 | 61 | |||||
Other nonrecourse debt, net | 4,945 | 5,286 | |||||
Total liabilities | 15,547 | 16,074 | |||||
Commitments and contingencies (Note 18) | |||||||
Preferred stock at $0.00001 - 10 million shares authorized, 1 million shares issued and outstanding, respectively; aggregate liquidation preference of ten dollars, respectively | — | — | |||||
Common stock at $0.01 par value - 300 million shares authorized, 92.0 million and 91.1 million shares issued, respectively | 1 | 1 | |||||
Additional paid-in-capital | 1,108 | 1,109 | |||||
Retained earnings | 961 | 1,122 | |||||
Total Mr. Cooper stockholders’ equity | 2,070 | 2,232 | |||||
Non-controlling interests | (4 | ) | (1 | ) | |||
Total stockholders’ equity | 2,066 | 2,231 | |||||
Total liabilities and stockholders’ equity | $ | 17,613 | $ | 18,305 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Service related, net | $ | 227 | $ | 258 | $ | 186 | $ | 479 | |||||||||||||||
Net gain on mortgage loans held for sale | 645 | 360 | 1,594 | 788 | |||||||||||||||||||
Total revenues | 872 | 618 | 1,780 | 1,267 | |||||||||||||||||||
Expenses: | |||||||||||||||||||||||
Salaries, wages and benefits | 275 | 250 | 769 | 703 | |||||||||||||||||||
General and administrative | 156 | 228 | 525 | 710 | |||||||||||||||||||
Total expenses | 431 | 478 | 1,294 | 1,413 | |||||||||||||||||||
Interest income | 56 | 163 | 250 | 459 | |||||||||||||||||||
Interest expense | (165) | (196) | (534) | (572) | |||||||||||||||||||
Other income (expense), net | (51) | 0 | (50) | 16 | |||||||||||||||||||
Total other expenses, net | (160) | (33) | (334) | (97) | |||||||||||||||||||
Income (loss) before income tax expense (benefit) | 281 | 107 | 152 | (243) | |||||||||||||||||||
Less: Income tax expense (benefit) | 67 | 24 | 36 | (52) | |||||||||||||||||||
Net income (loss) | 214 | 83 | 116 | (191) | |||||||||||||||||||
Less: Net income (loss) attributable to non-controlling interests | 5 | (1) | 2 | (2) | |||||||||||||||||||
Net income (loss) attributable to Mr. Cooper | 209 | 84 | 114 | (189) | |||||||||||||||||||
Less: Undistributed earnings attributable to participating stockholders | 2 | 1 | 1 | 0 | |||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 207 | $ | 83 | $ | 113 | $ | (189) | |||||||||||||||
Net income (loss) per common share attributable to Mr. Cooper: | |||||||||||||||||||||||
Basic | $ | 2.26 | $ | 0.91 | $ | 1.23 | $ | (2.08) | |||||||||||||||
Diluted | $ | 2.18 | $ | 0.90 | $ | 1.20 | $ | (2.08) |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | ||||||
Revenues: | |||||||
Service related, net | $ | (53 | ) | $ | 84 | ||
Net gain on mortgage loans held for sale | 331 | 166 | |||||
Total revenues | 278 | 250 | |||||
Expenses: | |||||||
Salaries, wages and benefits | 246 | 215 | |||||
General and administrative | 198 | 228 | |||||
Total expenses | 444 | 443 | |||||
Other income (expenses), net: | |||||||
Interest income | 118 | 134 | |||||
Interest expense | (192 | ) | (189 | ) | |||
Other income, net | 1 | 15 | |||||
Total other income (expenses), net | (73 | ) | (40 | ) | |||
Loss before income tax benefit | (239 | ) | (233 | ) | |||
Less: Income tax benefit | (68 | ) | (47 | ) | |||
Net loss | (171 | ) | (186 | ) | |||
Less: Net loss attributable to non-controlling interests | (3 | ) | — | ||||
Net loss attributable to Mr. Cooper | (168 | ) | (186 | ) | |||
Less: Undistributed earnings attributable to participating stockholders | — | — | |||||
Net loss attributable to common stockholders | $ | (168 | ) | $ | (186 | ) | |
Net loss per common share attributable to Mr. Cooper: | |||||||
Basic | $ | (1.84 | ) | $ | (2.05 | ) | |
Diluted | $ | (1.84 | ) | $ | (2.05 | ) |
Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares (in thousands) | Amount | Shares (in thousands) | Amount | Additional Paid-in Capital | Retained Earnings | Treasury Share Amount | Total Mr. Cooper Stockholders’ Equity | Non-controlling Interests | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 1,000 | $ | 0 | 91,061 | $ | 1 | $ | 1,100 | $ | 575 | $ | 0 | $ | 1,676 | $ | 2 | $ | 1,678 | ||||||||||||||||||||||||||||||||||||||||||||
Shares issued under incentive compensation plan | — | — | 26 | — | 1 | — | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 5 | — | — | 5 | — | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | 84 | — | 84 | (1) | 83 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 1,000 | $ | 0 | 91,087 | $ | 1 | $ | 1,106 | $ | 659 | $ | 0 | $ | 1,766 | $ | 1 | $ | 1,767 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 1,000 | $ | 0 | 92,022 | $ | 1 | $ | 1,114 | $ | 1,034 | $ | 0 | $ | 2,149 | $ | (4) | $ | 2,145 | ||||||||||||||||||||||||||||||||||||||||||||
Shares issued under incentive compensation plan | — | — | 19 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 6 | — | — | 6 | — | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | (1,187) | — | — | — | (24) | (24) | — | (24) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 209 | — | 209 | 5 | 214 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 1,000 | $ | 0 | 90,854 | $ | 1 | $ | 1,120 | $ | 1,243 | $ | (24) | $ | 2,340 | $ | 1 | $ | 2,341 |
Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||||
Shares (in thousands) | Amount | Shares (in thousands) | Amount | Additional Paid-in Capital | Retained Earnings | Total Mr. Cooper Stockholders’ Equity | Non-controlling Interests | Total Equity | ||||||||||||||||||||||||||
Balance at January 1, 2019 | 1,000 | $ | — | 90,821 | $ | 1 | $ | 1,093 | $ | 848 | $ | 1,942 | $ | 3 | $ | 1,945 | ||||||||||||||||||
Shares issued / (surrendered) under incentive compensation plan | — | — | 221 | — | (2 | ) | — | (2 | ) | — | (2 | ) | ||||||||||||||||||||||
Share-based compensation | — | — | — | — | 4 | — | 4 | — | 4 | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | (186 | ) | (186 | ) | — | (186 | ) | ||||||||||||||||||||||
Balance at March 31, 2019 | 1,000 | $ | — | 91,042 | $ | 1 | $ | 1,095 | $ | 662 | $ | 1,758 | $ | 3 | $ | 1,761 | ||||||||||||||||||
Balance at January 1, 2020 | 1,000 | $ | — | 91,118 | $ | 1 | $ | 1,109 | $ | 1,122 | $ | 2,232 | $ | (1 | ) | $ | 2,231 | |||||||||||||||||
Shares issued / (surrendered) under incentive compensation plan | — | — | 852 | — | (5 | ) | — | (5 | ) | — | (5 | ) | ||||||||||||||||||||||
Share-based compensation | — | — | — | — | 4 | — | 4 | — | 4 | |||||||||||||||||||||||||
Cumulative effect adjustments pursuant to the adoption of ASU 2016-13 | — | — | — | — | — | 7 | 7 | — | 7 | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | (168 | ) | (168 | ) | (3 | ) | (171 | ) | |||||||||||||||||||||
Balance at March 31, 2020 | 1,000 | $ | — | 91,970 | $ | 1 | $ | 1,108 | $ | 961 | $ | 2,070 | $ | (4 | ) | $ | 2,066 |
Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares (in thousands) | Amount | Shares (in thousands) | Amount | Additional Paid-in Capital | Retained Earnings | Treasury Share Amount | Total Mr. Cooper Stockholders’ Equity | Non-controlling Interests | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019 | 1,000 | $ | 0 | 90,821 | $ | 1 | $ | 1,093 | $ | 848 | $ | 0 | $ | 1,942 | $ | 3 | $ | 1,945 | ||||||||||||||||||||||||||||||||||||||||||||
Shares issued / (surrendered) under incentive compensation plan | — | — | 266 | — | (1) | — | — | (1) | — | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 14 | — | — | 14 | — | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (189) | — | (189) | (2) | (191) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 1,000 | $ | 0 | 91,087 | $ | 1 | $ | 1,106 | $ | 659 | $ | 0 | $ | 1,766 | $ | 1 | $ | 1,767 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | 1,000 | $ | 0 | 91,118 | $ | 1 | $ | 1,109 | $ | 1,122 | $ | 0 | $ | 2,232 | $ | (1) | $ | 2,231 | ||||||||||||||||||||||||||||||||||||||||||||
Shares issued / (surrendered) under incentive compensation plan | — | — | 923 | — | (5) | — | — | (5) | — | (5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 16 | — | — | 16 | — | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect adjustments pursuant to the adoption of ASU 2016-13 | — | — | — | — | — | 7 | — | 7 | — | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | (1,187) | — | — | — | (24) | (24) | — | (24) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 114 | — | 114 | 2 | 116 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 1,000 | $ | 0 | 90,854 | $ | 1 | $ | 1,120 | $ | 1,243 | $ | (24) | $ | 2,340 | $ | 1 | $ | 2,341 |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Operating Activities | |||||||||||
Net income (loss) | $ | 116 | $ | (191) | |||||||
Adjustments to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||
Deferred tax benefit | (1) | (53) | |||||||||
Net gain on mortgage loans held for sale | (1,594) | (788) | |||||||||
Interest income on reverse mortgage loans | (158) | (241) | |||||||||
Provision for servicing and non-servicing reserves | 18 | 53 | |||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 1,258 | 998 | |||||||||
Fair value changes in excess spread financing | (132) | (190) | |||||||||
Fair value changes in mortgage servicing rights financing liability | 10 | 15 | |||||||||
Fair value changes in mortgage loans held for investment | 0 | (3) | |||||||||
Amortization of premiums, net of discount accretion | 45 | (38) | |||||||||
Depreciation and amortization for property and equipment and intangible assets | 56 | 67 | |||||||||
Share-based compensation | 16 | 14 | |||||||||
Loss on redemption of unsecured senior notes | 52 | 0 | |||||||||
Other loss | 17 | 5 | |||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | (3,173) | (1,823) | |||||||||
Mortgage loans originated and purchased for sale, net of fees | (38,709) | (27,673) | |||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 43,040 | 27,916 | |||||||||
Changes in assets and liabilities: | |||||||||||
Advances and other receivables | 228 | 264 | |||||||||
Reverse mortgage interests | 1,031 | 1,700 | |||||||||
Other assets | (4,797) | 9 | |||||||||
Payables and other liabilities | 4,555 | (69) | |||||||||
Net cash attributable to operating activities | 1,878 | (28) | |||||||||
Investing Activities | |||||||||||
Acquisitions, net of cash acquired | 0 | (85) | |||||||||
Property and equipment additions, net of disposals | (43) | (38) | |||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (39) | (454) | |||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 44 | 298 | |||||||||
Net cash attributable to investing activities | (38) | (279) |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | ||||||
Operating Activities | |||||||
Net loss | $ | (171 | ) | $ | (186 | ) | |
Adjustments to reconcile net loss to net cash attributable to operating activities: | |||||||
Deferred tax benefit | (68 | ) | (47 | ) | |||
Net gain on mortgage loans held for sale | (331 | ) | (166 | ) | |||
Interest income on reverse mortgage loans | (62 | ) | (82 | ) | |||
Provision for reserves | 8 | 11 | |||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 526 | 379 | |||||
Fair value changes in excess spread financing | (35 | ) | (69 | ) | |||
Fair value changes in mortgage servicing rights financing liability | 6 | 2 | |||||
Fair value changes in mortgage loans held for investment | — | (1 | ) | ||||
Amortization of premiums, net of discount accretion | 23 | 2 | |||||
Depreciation and amortization for property and equipment and intangible assets | 19 | 21 | |||||
Share-based compensation | 4 | 4 | |||||
Other loss | 7 | — | |||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | (919 | ) | (364 | ) | |||
Mortgage loans originated and purchased for sale, net of fees | (12,375 | ) | (5,717 | ) | |||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 13,724 | 6,197 | |||||
Changes in assets and liabilities: | |||||||
Advances and other receivables | 300 | 120 | |||||
Reverse mortgage interests | 400 | 614 | |||||
Other assets | (91 | ) | (216 | ) | |||
Payables and other liabilities | (255 | ) | (217 | ) | |||
Net cash attributable to operating activities | 710 | 285 | |||||
Investing Activities | |||||||
Acquisitions, net of cash acquired | — | (85 | ) | ||||
Property and equipment additions, net of disposals | (12 | ) | (10 | ) | |||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (27 | ) | (130 | ) | |||
Proceeds on sale of forward and reverse mortgage servicing rights | 43 | 243 | |||||
Net cash attributable to investing activities | 4 | 18 |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Financing Activities | |||||||||||
(Decrease) increase in advance and warehouse facilities | (135) | 1,835 | |||||||||
Repayment of notes payable | 0 | (294) | |||||||||
Proceeds from HECM securitizations | 516 | 398 | |||||||||
Proceeds from sale of HECM securitizations | 0 | 20 | |||||||||
Repayment of HECM securitizations | (508) | (568) | |||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | 139 | 220 | |||||||||
Repayment of participating interest financing in reverse mortgage interests | (845) | (1,472) | |||||||||
Proceeds from the issuance of excess spread financing | 24 | 469 | |||||||||
Settlements and repayments of excess spread financing | (159) | (182) | |||||||||
Issuance of unsecured senior debt | 1,450 | 0 | |||||||||
Repayment of nonrecourse debt – legacy assets | 0 | (29) | |||||||||
Redemption and repayment of unsecured senior notes | (1,686) | 0 | |||||||||
Repayment of finance lease liability | (1) | (3) | |||||||||
Surrender of shares relating to stock vesting | (5) | (1) | |||||||||
Repurchase of common stock | (24) | 0 | |||||||||
Debt financing costs | (43) | (5) | |||||||||
Net cash attributable to financing activities | (1,277) | 388 | |||||||||
Net increase in cash, cash equivalents, and restricted cash | 563 | 81 | |||||||||
Cash, cash equivalents, and restricted cash - beginning of period | 612 | 561 | |||||||||
Cash, cash equivalents, and restricted cash - end of period(1) | $ | 1,175 | $ | 642 | |||||||
Supplemental Disclosures of Cash Activities | |||||||||||
Cash paid for interest expense | $ | 180 | $ | 166 | |||||||
Net cash paid (refunded) for income taxes | $ | 40 | $ | (4) |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | ||||||
Financing Activities | |||||||
(Decrease) increase in warehouse facilities | (25 | ) | 307 | ||||
Increase (decrease) in advance facilities | 68 | (30 | ) | ||||
Repayment of notes payable | — | (294 | ) | ||||
Proceeds from sale of HECM securitizations | — | 20 | |||||
Repayment of HECM securitizations | (99 | ) | (127 | ) | |||
Proceeds from issuance of participating interest financing in reverse mortgage interests | 55 | 86 | |||||
Repayment of participating interest financing in reverse mortgage interests | (330 | ) | (494 | ) | |||
Proceeds from the issuance of excess spread financing | 24 | 245 | |||||
Settlements and repayments of excess spread financing | (58 | ) | (50 | ) | |||
Issuance of unsecured senior debt | 600 | — | |||||
Repayment of nonrecourse debt – legacy assets | — | (3 | ) | ||||
Redemption and repayment of unsecured senior notes | (698 | ) | — | ||||
Repayment of finance lease liability | (1 | ) | (1 | ) | |||
Surrender of shares relating to stock vesting | (5 | ) | (2 | ) | |||
Debt financing costs | (12 | ) | (1 | ) | |||
Net cash attributable to financing activities | (481 | ) | (344 | ) | |||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 233 | (41 | ) | ||||
Cash, cash equivalents, and restricted cash - beginning of period | 612 | 561 | |||||
Cash, cash equivalents, and restricted cash - end of period(1) | $ | 845 | $ | 520 | |||
Supplemental Disclosures of Cash Activities | |||||||
Cash paid for interest expense | $ | 89 | $ | 74 |
March 31, 2020 | March 31, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||||
Cash and cash equivalents | $ | 579 | $ | 181 | Cash and cash equivalents | $ | 946 | $ | 371 | |||||||||
Restricted cash | 266 | 339 | Restricted cash | 229 | 271 | |||||||||||||
Total cash, cash equivalents, and restricted cash | $ | 845 | $ | 520 | Total cash, cash equivalents, and restricted cash | $ | 1,175 | $ | 642 |
Final Estimated Fair Value of Net Assets Acquired: | |||
Cash and cash equivalents | $ | 37 | |
Restricted cash | 2 | ||
Mortgage servicing rights | 271 | ||
Advances and other receivables | 84 | ||
Mortgage loans held for sale | 536 | ||
Mortgage loans held for investment | 1 | ||
Property and equipment | 8 | ||
Other assets | 483 | ||
Fair value of assets acquired | 1,422 | ||
Notes payable(1) | 294 | ||
Advance facilities | 13 | ||
Warehouse facilities | 393 | ||
Payables and other liabilities | 530 | ||
Other nonrecourse debt | 129 | ||
Fair value of liabilities assumed | 1,359 | ||
Total fair value of net tangible assets acquired | 63 | ||
Intangible assets: | |||
Customer relationships(2) | 13 | ||
Goodwill | 40 | ||
Final purchase price | $ | 116 |
Three Months Ended March 31, 2019 | |||
Pro forma financial information | (unaudited) | ||
Pro forma total revenues | $ | 269 | |
Pro forma net loss | $ | (184 | ) |
MSRs and Related Liabilities | September 30, 2020 | December 31, 2019 | |||||||||
Forward MSRs - fair value | $ | 2,663 | $ | 3,496 | |||||||
Reverse MSRs - amortized cost | 6 | 6 | |||||||||
Mortgage servicing rights | $ | 2,669 | $ | 3,502 | |||||||
Mortgage servicing liabilities - amortized cost | $ | 44 | $ | 61 | |||||||
Excess spread financing - fair value | $ | 1,044 | $ | 1,311 | |||||||
Mortgage servicing rights financing - fair value | 47 | 37 | |||||||||
MSR related liabilities - nonrecourse at fair value | $ | 1,091 | $ | 1,348 |
MSRs and Related Liabilities | March 31, 2020 | December 31, 2019 | |||||
Forward MSRs - fair value | $ | 3,109 | $ | 3,496 | |||
Reverse MSRs - amortized cost | 6 | 6 | |||||
Mortgage servicing rights | $ | 3,115 | $ | 3,502 | |||
Mortgage servicing liabilities - amortized cost | $ | 53 | $ | 61 | |||
Excess spread financing - fair value | $ | 1,242 | $ | 1,311 | |||
Mortgage servicing rights financing - fair value | 43 | 37 | |||||
MSR related liabilities - nonrecourse at fair value | $ | 1,285 | $ | 1,348 |
Nine Months Ended September 30, | ||||||||||||||||||||
Forward MSRs - Fair Value | 2020 | 2019 | ||||||||||||||||||
Fair value - beginning of period | $ | 3,496 | $ | 3,665 | ||||||||||||||||
Additions: | ||||||||||||||||||||
Servicing retained from mortgage loans sold | 412 | 298 | ||||||||||||||||||
Purchases of servicing rights(1) | 30 | 732 | ||||||||||||||||||
Dispositions: | ||||||||||||||||||||
Sales of servicing assets | 0 | (317) | ||||||||||||||||||
Changes in fair value: | ||||||||||||||||||||
Changes in valuation inputs or assumptions used in the valuation model | (782) | (716) | ||||||||||||||||||
Other changes in fair value | (493) | (323) | ||||||||||||||||||
Fair value - end of period | $ | 2,663 | $ | 3,339 |
Forward MSRs - Fair Value | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | |||||
Fair value - beginning of period | $ | 3,496 | $ | 3,665 | |||
Additions: | |||||||
Servicing retained from mortgage loans sold | 123 | 66 | |||||
Purchases of servicing rights(1) | 24 | 409 | |||||
Dispositions: | |||||||
Sales of servicing assets | — | (260 | ) | ||||
Changes in fair value: | |||||||
Changes in valuation inputs or assumptions used in the valuation model | (401 | ) | (332 | ) | |||
Other changes in fair value | (133 | ) | (67 | ) | |||
Fair value - end of period | $ | 3,109 | $ | 3,481 |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Forward MSRs - UPB and fair value breakdown | UPB | Fair Value | UPB | Fair Value | |||||||||||||||||||
Acquisition Pools | |||||||||||||||||||||||
Credit sensitive | $ | 122,422 | $ | 1,206 | $ | 147,895 | $ | 1,613 | |||||||||||||||
Interest sensitive | 144,245 | 1,457 | 148,887 | 1,883 | |||||||||||||||||||
Total | $ | 266,667 | $ | 2,663 | $ | 296,782 | $ | 3,496 | |||||||||||||||
Investor Pools | |||||||||||||||||||||||
Agency(1) | $ | 220,139 | $ | 2,234 | $ | 240,688 | $ | 2,944 | |||||||||||||||
Non-agency(2) | 46,528 | 429 | 56,094 | 552 | |||||||||||||||||||
Total | $ | 266,667 | $ | 2,663 | $ | 296,782 | $ | 3,496 |
March 31, 2020 | December 31, 2019 | ||||||||||||||
Forward MSRs - UPB and fair value breakdown | UPB | Fair Value | UPB | Fair Value | |||||||||||
Acquisition Pools | |||||||||||||||
Credit sensitive | $ | 138,726 | $ | 1,386 | $ | 147,895 | $ | 1,613 | |||||||
Interest sensitive | 151,908 | 1,723 | 148,887 | 1,883 | |||||||||||
Total | $ | 290,634 | $ | 3,109 | $ | 296,782 | $ | 3,496 | |||||||
Investors Pools | |||||||||||||||
Agency(1) | $ | 238,956 | $ | 2,618 | $ | 240,688 | $ | 2,944 | |||||||
Non-agency(2) | 51,678 | 491 | 56,094 | 552 | |||||||||||
Total | $ | 290,634 | $ | 3,109 | $ | 296,782 | $ | 3,496 |
Forward MSRs - Key inputs and assumptions | September 30, 2020 | December 31, 2019 | |||||||||
Total MSR Portfolio | |||||||||||
Discount rate | 9.5 | % | 9.7 | % | |||||||
Prepayment speeds | 14.4 | % | 13.1 | % | |||||||
Average life | 5.2 years | 5.8 years | |||||||||
Acquisition Pools | |||||||||||
Credit Sensitive | |||||||||||
Discount rate | 10.0 | % | 10.4 | % | |||||||
Prepayment speeds | 12.6 | % | 12.7 | % | |||||||
Average life | 5.6 years | 6.0 years | |||||||||
Interest Sensitive | |||||||||||
Discount rate | 9.0 | % | 9.1 | % | |||||||
Prepayment speeds | 15.9 | % | 13.5 | % | |||||||
Average life | 4.9 years | 5.7 years | |||||||||
Investor Pools | |||||||||||
Agency | |||||||||||
Discount rate | 8.9 | % | 9.0 | % | |||||||
Prepayment speeds | 14.5 | % | 13.0 | % | |||||||
Average life | 5.1 years | 5.8 years | |||||||||
Non-agency | |||||||||||
Discount rate | 12.0 | % | 12.6 | % | |||||||
Prepayment speeds | 13.9 | % | 13.8 | % | |||||||
Average life | 5.5 years | 6.2 years |
Forward MSRs - Key inputs and assumptions | March 31, 2020 | December 31, 2019 | |||
Total MSR Portfolio | |||||
Discount rate | 9.7 | % | 9.7 | % | |
Prepayment speeds | 13.4 | % | 13.1 | % | |
Average life | 5.7 years | 5.8 years | |||
Acquisition Pools: | |||||
Credit Sensitive | |||||
Discount rate | 10.2 | % | 10.4 | % | |
Prepayment speeds | 13.0 | % | 12.7 | % | |
Average life | 5.9 years | 6.0 years | |||
Interest Sensitive | |||||
Discount rate | 9.1 | % | 9.1 | % | |
Prepayment speeds | 13.8 | % | 13.5 | % | |
Average life | 5.5 years | 5.7 years | |||
Investor Pools: | |||||
Agency | |||||
Discount rate | 9.0 | % | 9.0 | % | |
Prepayment speeds | 13.2 | % | 13.0 | % | |
Average life | 5.6 years | 5.8 years | |||
Non-agency | |||||
Discount rate | 12.6 | % | 12.6 | % | |
Prepayment speeds | 14.3 | % | 13.8 | % | |
Average life | 6.1 years | 6.2 years |
Discount Rate | Total Prepayment Speeds | ||||||||||||||||||||||
Forward MSRs - Hypothetical Sensitivities | 100 bps Adverse Change | 200 bps Adverse Change | 10% Adverse Change | 20% Adverse Change | |||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Mortgage servicing rights | $ | (87) | $ | (179) | $ | (157) | $ | (321) | |||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Mortgage servicing rights | $ | (127) | $ | (245) | $ | (165) | $ | (317) |
Discount Rate | Total Prepayment Speeds | ||||||||||||||
Forward MSRs - Hypothetical Sensitivities | 100 bps Adverse Change | 200 bps Adverse Change | 10% Adverse Change | 20% Adverse Change | |||||||||||
March 31, 2020 | |||||||||||||||
Mortgage servicing rights | $ | (111 | ) | $ | (214 | ) | $ | (158 | ) | $ | (305 | ) | |||
December 31, 2019 | |||||||||||||||
Mortgage servicing rights | $ | (127 | ) | $ | (245 | ) | $ | (165 | ) | $ | (317 | ) |
Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Reverse MSRs and Liabilities - Amortized Cost | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||
Balance - beginning of period | $ | 6 | $ | 61 | $ | 11 | $ | 71 | |||||||||||||||
Amortization/accretion | 0 | (17) | 2 | (39) | |||||||||||||||||||
Adjustments(1) | 0 | 0 | (6) | 37 | |||||||||||||||||||
Balance - end of the period | $ | 6 | $ | 44 | $ | 7 | $ | 69 | |||||||||||||||
Fair value - end of period | $ | 6 | $ | 7 | $ | 7 | $ | 41 |
Three Months Ended March 31, | |||||||||||||||
2020 | 2019 | ||||||||||||||
Reverse MSRs and Liabilities - Amortized Cost | Assets | Liabilities | Assets | Liabilities | |||||||||||
Balance - beginning of period | $ | 6 | $ | 61 | $ | 11 | $ | 71 | |||||||
Amortization/accretion | — | (8 | ) | — | (18 | ) | |||||||||
Adjustments(1) | — | — | (4 | ) | 37 | ||||||||||
Balance - end of the period | $ | 6 | $ | 53 | $ | 7 | $ | 90 | |||||||
Fair value - end of period | $ | 6 | $ | 27 | $ | 7 | $ | 75 |
Excess Spread Financing Key Assumptions | September 30, 2020 | December 31, 2019 | |||||||||
Discount rate | 11.9 | % | 11.6 | % | |||||||
Prepayment speeds | 13.6 | % | 12.6 | % | |||||||
Recapture rate | 19.1 | % | 20.1 | % | |||||||
Average life | 5.3 years | 5.8 years |
Excess Spread Financing Assumptions | March 31, 2020 | December 31, 2019 | |||
Discount rate | 11.6 | % | 11.6 | % | |
Prepayment speeds | 12.8 | % | 12.6 | % | |
Recapture rate | 18.6 | % | 20.1 | % | |
Average life | 5.7 years | 5.8 years |
Discount Rate | Prepayment Speeds | ||||||||||||||||||||||
Excess Spread Financing - Hypothetical Sensitivities | 100 bps Adverse Change | 200 bps Adverse Change | 10% Adverse Change | 20% Adverse Change | |||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Excess spread financing | $ | 35 | $ | 72 | $ | 44 | $ | 92 | |||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Excess spread financing | $ | 46 | $ | 95 | $ | 46 | $ | 96 |
Discount Rate | Prepayment Speeds | ||||||||||||||
Excess Spread Financing - Hypothetical Sensitivities | 100 bps Adverse Change | 200 bps Adverse Change | 10% Adverse Change | 20% Adverse Change | |||||||||||
March 31, 2020 | |||||||||||||||
Excess spread financing | $ | 43 | $ | 89 | $ | 48 | $ | 98 | |||||||
December 31, 2019 | |||||||||||||||
Excess spread financing | $ | 46 | $ | 95 | $ | 46 | $ | 96 |
Mortgage Servicing Rights Financing Key Assumptions | September 30, 2020 | December 31, 2019 | |||||||||
Advance financing and counterparty fee rates | 8.2 | % | 8.9 | % | |||||||
Annual advance recovery rates | 20.2 | % | 18.8 | % |
Mortgage Servicing Rights Financing Assumptions | March 31, 2020 | December 31, 2019 | |||
Advance financing rates | 1.7 | % | 3.5 | % | |
Annual advance recovery rates | 18.4 | % | 18.8 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Total Revenues - Servicing | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Contractually specified servicing fees(1) | $ | 282 | $ | 305 | $ | 864 | $ | 893 | |||||||||||||||
Other service-related income(1) | 59 | 51 | 170 | 133 | |||||||||||||||||||
Incentive and modification income(1) | 12 | 12 | 30 | 29 | |||||||||||||||||||
Late fees(1) | 18 | 30 | 65 | 82 | |||||||||||||||||||
Reverse servicing fees | 6 | 7 | 19 | 24 | |||||||||||||||||||
Mark-to-market adjustments(2) | (29) | (83) | (673) | (607) | |||||||||||||||||||
Counterparty revenue share(3) | (104) | (86) | (268) | (204) | |||||||||||||||||||
Amortization, net of accretion(4) | (112) | (73) | (290) | (152) | |||||||||||||||||||
Total revenues - Servicing | $ | 132 | $ | 163 | $ | (83) | $ | 198 |
Total Revenues - Servicing | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | |||||
Contractually specified servicing fees(1) | $ | 297 | $ | 281 | |||
Other service-related income(1) | 49 | 50 | |||||
Incentive and modification income(1) | 10 | 7 | |||||
Late fees(1) | 27 | 25 | |||||
Reverse servicing fees | 6 | 9 | |||||
Mark-to-market adjustments(2) | (383 | ) | (293 | ) | |||
Counterparty revenue share(3) | (76 | ) | (48 | ) | |||
Amortization, net of accretion(4) | (76 | ) | (23 | ) | |||
Total revenues - Servicing | $ | (146 | ) | $ | 8 |
Advances and Other Receivables, Net | September 30, 2020 | December 31, 2019 | |||||||||
Servicing advances, net of $92 and $131 purchase discount, respectively | $ | 746 | $ | 970 | |||||||
Receivables from agencies, investors and prior servicers, net of $21 and $21 purchase discount, respectively | 190 | 193 | |||||||||
Reserves | (191) | (175) | |||||||||
Total advances and other receivables, net | $ | 745 | $ | 988 |
Advances and Other Receivables, Net | March 31, 2020 | December 31, 2019 | |||||
Servicing advances, net of $125 and $131 discount, respectively | $ | 688 | $ | 970 | |||
Receivables from agencies, investors and prior servicers, net of $21 and $21 discount, respectively | 190 | 193 | |||||
Reserves | (193 | ) | (175 | ) | |||
Total advances and other receivables, net | $ | 685 | $ | 988 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
Reserves for Advances and Other Receivables | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Balance - beginning of period | $ | 216 | $ | 98 | $ | 168 | $ | 47 | ||||||||||||||||||
Provision and other additions(1) | 13 | 35 | 72 | 102 | ||||||||||||||||||||||
Write-offs | (38) | (3) | (49) | (19) | ||||||||||||||||||||||
Balance - end of period | $ | 191 | $ | 130 | $ | 191 | $ | 130 |
Reserves for Advances and Other Receivables | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | |||||
Balance - beginning of period | $ | 168 | $ | 47 | |||
Provision and other additions(1) | 30 | 30 | |||||
Write-offs | (5 | ) | (6 | ) | |||
Balance - end of period | $ | 193 | $ | 71 |
Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | ||||||||||||||||||||||
Purchase Discount for Advances and Other Receivables | Servicing Advances | Receivables from Agencies, Investors and Prior Servicers | Servicing Advances | Receivables from Agencies, Investors and Prior Servicers | |||||||||||||||||||
Balance - beginning of period | $ | 117 | $ | 21 | $ | 156 | $ | 48 | |||||||||||||||
Utilization of purchase discounts | (25) | 0 | (8) | 0 | |||||||||||||||||||
Balance - end of period | $ | 92 | $ | 21 | $ | 148 | $ | 48 |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | ||||||||||||||
Purchase Discounts | Servicing Advances | Receivables from Agencies, Investors and Prior Servicers | Servicing Advances | Receivables from Agencies, Investors and Prior Servicers | |||||||||||
Balance - beginning of period | $ | 131 | $ | 21 | $ | 205 | $ | 48 | |||||||
Addition from acquisition | — | — | 19 | — | |||||||||||
Utilization of purchase discounts | (6 | ) | — | (55 | ) | — | |||||||||
Balance - end of period | $ | 125 | $ | 21 | $ | 169 | $ | 48 |
Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | ||||||||||||||||||||||
Purchase Discount for Advances and Other Receivables | Servicing Advances | Receivables from Agencies, Investors and Prior Servicers | Servicing Advances | Receivables from Agencies, Investors and Prior Servicers | |||||||||||||||||||
Balance - beginning of period | $ | 131 | $ | 21 | $ | 205 | $ | 48 | |||||||||||||||
Addition from acquisition | 0 | 0 | 19 | 0 | |||||||||||||||||||
Utilization of purchase discounts | (39) | 0 | (76) | 0 | |||||||||||||||||||
Balance - end of period | $ | 92 | $ | 21 | $ | 148 | $ | 48 |
Reverse Mortgage Interests, Net | September 30, 2020 | December 31, 2019 | |||||||||
Participating interests in HECM mortgage-backed securities (“HMBS”) | $ | 3,663 | $ | 4,282 | |||||||
Other interests securitized | 1,002 | 994 | |||||||||
Unsecuritized interests | 920 | 1,117 | |||||||||
Purchase discount, net | (125) | (114) | |||||||||
Total reverse mortgage interests, net | $ | 5,460 | $ | 6,279 |
Reverse Mortgage Interests, Net | March 31, 2020 | December 31, 2019 | |||||
Participating interests in HECM mortgage-backed securities (“HMBS”), net of $16 and $10 purchase discount and premium, respectively | $ | 4,027 | $ | 4,292 | |||
Other interests securitized, net of $44 and $56 purchase discount, respectively | 851 | 938 | |||||
Unsecuritized interests, net of $69 and $68 purchase discount, respectively | 1,080 | 1,052 | |||||
Reserves | (3 | ) | (3 | ) | |||
Total reverse mortgage interests, net | $ | 5,955 | $ | 6,279 |
Unsecuritized interests | September 30, 2020 | December 31, 2019 | |||||||||
Repurchased HECM loans (exceeds 98% of their Max Claim Amount (“MCA”)) | $ | 634 | $ | 789 | |||||||
HECM related receivables(1) | 213 | 250 | |||||||||
Funded borrower draws not yet securitized | 56 | 64 | |||||||||
Real estate owned (“REO”) related receivables | 17 | 14 | |||||||||
Total unsecuritized interests | $ | 920 | $ | 1,117 |
Unsecuritized interests | March 31, 2020 | December 31, 2019 | |||||
Repurchased HECM loans (exceeds 98% MCA) | $ | 782 | $ | 789 | |||
HECM related receivables(1) | 257 | 250 | |||||
Funded borrower draws not yet securitized | 64 | 67 | |||||
Real estate owned (“REO”) related receivables | 46 | 14 | |||||
Purchase discount, net | (69 | ) | (68 | ) | |||
Total unsecuritized interests | $ | 1,080 | $ | 1,052 |
(1)HECM related receivables consist primarily of receivables from FNMA for corporate advances and service fees and claims receivables |
Reserves for reverse mortgage interests | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | |||||
Balance - beginning of period | $ | 3 | $ | 13 | |||
Provision (release), net | — | — | |||||
Write-offs | — | (5 | ) | ||||
Balance - end of period | $ | 3 | $ | 8 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Purchase discount, net, for reverse mortgage interests(1) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Balance - beginning of period | $ | (127) | $ | (163) | $ | (114) | $ | (164) | |||||||||||||||
Adjustments(2) | 0 | 0 | 0 | (24) | |||||||||||||||||||
Utilization of purchase discounts(3) | 8 | 40 | 27 | 80 | |||||||||||||||||||
Amortization, net of accretion | (6) | (1) | (38) | (16) | |||||||||||||||||||
Balance - end of period | $ | (125) | $ | (124) | $ | (125) | $ | (124) |
Three Months Ended March 31, 2020 | |||||||||||
Purchase premiums and discounts for reverse mortgage interests | Net Discount for Participating Interests in HMBS(1) | Net Discount for Other Interest Securitized(1) | Net Discount for Unsecuritized Interests(1) | ||||||||
Balance - beginning of period | $ | 10 | $ | (56 | ) | $ | (68 | ) | |||
Utilization of purchase discounts(2) | — | 5 | 5 | ||||||||
(Amortization)/Accretion | (44 | ) | 17 | 2 | |||||||
Transfers(3) | 18 | (10 | ) | (8 | ) | ||||||
Balance - end of period | $ | (16 | ) | $ | (44 | ) | $ | (69 | ) |
Three Months Ended March 31, 2019 | |||||||||||
Purchase premiums and discounts for reverse mortgage interests | Net Premium for Participating Interests in HMBS(1) | Net Discount for Other Interest Securitized(1) | Net Discount for Unsecuritized Interests(1) | ||||||||
Balance - beginning of period | $ | 58 | $ | (100 | ) | $ | (122 | ) | |||
Adjustments(4) | (16 | ) | (2 | ) | (6 | ) | |||||
Utilization of purchase discounts(2) | — | 6 | 22 | ||||||||
(Amortization)/Accretion | (14 | ) | (15 | ) | 18 | ||||||
Transfers(3) | 8 | (1 | ) | (7 | ) | ||||||
Balance - end of period | $ | 36 | $ | (112 | ) | $ | (95 | ) |
Mortgage Loans Held for Sale | September 30, 2020 | December 31, 2019 | |||||||||
Mortgage loans held for sale – UPB | $ | 3,642 | $ | 3,949 | |||||||
Mark-to-market adjustment(1) | 175 | 128 | |||||||||
Total mortgage loans held for sale | $ | 3,817 | $ | 4,077 |
Mortgage Loans Held for Sale | March 31, 2020 | December 31, 2019 | |||||
Mortgage loans held for sale – UPB | $ | 3,735 | $ | 3,949 | |||
Mark-to-market adjustment(1) | 187 | 128 | |||||
Total mortgage loans held for sale | $ | 3,922 | $ | 4,077 |
(1)The mark-to-market adjustment includes net change in unrealized gain/loss, premium on correspondent loans and fees on direct-to-consumer loans. The mark-to-market adjustment is recorded in net gain on mortgage loans held for sale |
Nine Months Ended September 30, | |||||||||||
Mortgage Loans Held for Sale | 2020 | 2019 | |||||||||
Balance - beginning of period | $ | 4,077 | $ | 1,631 | |||||||
Loans sold | (42,185) | (27,413) | |||||||||
Mortgage loans originated and purchased, net of fees | 38,709 | 28,209 | |||||||||
Repurchase of loans out of Ginnie Mae securitizations | 3,173 | 1,823 | |||||||||
Net change in unrealized gain (loss) of loans held for sale | 36 | 2 | |||||||||
Net transfers of mortgage loans held for sale(1) | 7 | 15 | |||||||||
Balance - end of period | $ | 3,817 | $ | 4,267 |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Mortgage Loans Held for Sale | UPB | Fair Value | UPB | Fair Value | |||||||||||||||||||
Non-accrual(1) | $ | 49 | $ | 39 | $ | 29 | $ | 22 |
March 31, 2020 | December 31, 2019 | ||||||||||||||
Mortgage Loans Held for Sale | UPB | Fair Value | UPB | Fair Value | |||||||||||
Non-accrual(1) | $ | 33 | $ | 23 | $ | 29 | $ | 22 |
Mortgage Loans Held for Sale | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | |||||
Balance - beginning of period | $ | 4,077 | $ | 1,631 | |||
Loans sold | (13,510 | ) | (6,088 | ) | |||
Mortgage loans originated and purchased, net of fees(1) | 12,375 | 6,253 | |||||
Repurchase of loans out of Ginnie Mae securitizations | 919 | 364 | |||||
Changes in fair value | 61 | 10 | |||||
Net transfers of mortgage loans held for sale(2) | — | — | |||||
Balance - end of period | $ | 3,922 | $ | 2,170 |
Net lease cost | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | |||||
Operating lease cost | $ | 10 | $ | 8 | |||
Short-term lease cost | — | 1 | |||||
Sublease income | (1 | ) | — | ||||
Net lease cost | $ | 9 | $ | 9 |
Operating leases | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | |||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||
Operating cash flows from operating leases | $ | 10 | $ | 6 | |||
Leased assets obtained in exchange for new operating lease liabilities | $ | — | $ | 127 | |||
Weighted average remaining lease term | 5.6 years | 5.5 years | |||||
Weighted average discount rate | 5.0 | % | 5.0 | % |
Year Ending December 31, | Operating Leases | |||
2020(1) | $ | 37 | ||
2021 | 29 | |||
2022 | 20 | |||
2023 | 16 | |||
2024 | 11 | |||
2025 and thereafter | 30 | |||
Total future minimum lease payments | 143 | |||
Less: imputed interest | 18 | |||
Total operating lease liabilities | $ | 125 |
Other assets | March 31, 2020 | December 31, 2019 | |||||
Loans subject to repurchase right from Ginnie Mae | $ | 468 | $ | 560 | |||
Derivative financial instruments | 294 | 153 | |||||
Trade receivables and accrued revenues | 143 | 126 | |||||
Goodwill | 120 | 120 | |||||
Right-of-use assets | 111 | 121 | |||||
Intangible assets | 61 | 74 | |||||
Other | 372 | 236 | |||||
Total other assets | $ | 1,569 | $ | 1,390 |
September 30, 2020 | Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||
Derivative Financial Instruments | Expiration Dates | Outstanding Notional | Fair Value | Gains/(Losses) | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Mortgage loans held for sale | |||||||||||||||||||||||||||||
Loan sale commitments | 2020 | $ | 1,908 | $ | 75 | $ | 43 | ||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||||||||
IRLCs | 2020-2021 | 10,967 | 414 | 279 | |||||||||||||||||||||||||
LPCs | 2020 | 5,217 | 38 | 26 | |||||||||||||||||||||||||
Forward MBS trades | 2020-2021 | 11,452 | 23 | 17 | |||||||||||||||||||||||||
Total derivative financial instruments - assets | $ | 27,636 | $ | 475 | $ | 322 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||||||||
IRLCs | 2020 | $ | 2 | $ | 0 | $ | 0 | ||||||||||||||||||||||
LPCs | 2020 | 598 | 2 | (1) | |||||||||||||||||||||||||
Forward MBS trades | 2020-2021 | 15,974 | 42 | 30 | |||||||||||||||||||||||||
Total derivative financial instruments - liabilities | $ | 16,574 | $ | 44 | $ | 29 |
September 30, 2019 | Nine Months Ended September 30, 2019 | ||||||||||||||||||||||
Derivative Financial Instruments | Expiration Dates | Outstanding Notional | Fair Value | Gains/(Losses) | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Mortgage loans held for sale | |||||||||||||||||||||||
Loan sale commitments | 2019 | $ | 1,508 | $ | 35 | $ | 9 | ||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
IRLCs | 2019 | 4,964 | 144 | 84 | |||||||||||||||||||
LPCs | 2019 | 1,397 | 18 | 17 | |||||||||||||||||||
Forward MBS trades | 2019 | 3,054 | 8 | 6 | |||||||||||||||||||
Eurodollar futures | 2019-2021 | 6 | 0 | 0 | |||||||||||||||||||
Total derivative financial instruments - assets | $ | 9,421 | $ | 170 | $ | 107 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
IRLCs | 2019 | $ | 15 | $ | 0 | $ | 0 | ||||||||||||||||
LPCs | 2019 | 547 | 3 | 3 | |||||||||||||||||||
Forward MBS trades | 2019 | 5,667 | 16 | (8) | |||||||||||||||||||
Eurodollar futures | 2019-2021 | 8 | 0 | 0 | |||||||||||||||||||
Total derivative financial instruments - liabilities | $ | 6,237 | $ | 19 | $ | (5) |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral Pledged | Outstanding | Collateral Pledged | |||||||||||||||||||||||||||||||||||||||||||
Advance Facilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
$875 advance facility(1) | CP+2.5% to 6.5% | April 2021 | Servicing advance receivables | $ | 875 | $ | 144 | $ | 169 | $ | 37 | $ | 88 | |||||||||||||||||||||||||||||||||||||
$640 advance facility(2) | LIBOR+3.9% | August 2022 | Servicing advance receivables | 640 | 144 | 196 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
$425 advance facility(3) | LIBOR+2.8% to 6.5% | October 2021 | Servicing advance receivables | 425 | 206 | 261 | 224 | 285 | ||||||||||||||||||||||||||||||||||||||||||
$250 advance facility(4) | LIBOR+1.5% to 2.6% | December 2020 | Servicing advance receivables | 250 | 0 | 0 | 98 | 167 | ||||||||||||||||||||||||||||||||||||||||||
$100 advance facility | LIBOR+2.5% | January 2021 | Servicing advance receivables | 100 | 75 | 102 | 63 | 125 | ||||||||||||||||||||||||||||||||||||||||||
Advance facilities principal amount | 569 | 728 | 422 | 665 | ||||||||||||||||||||||||||||||||||||||||||||||
Warehouse Facilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
$1,500 warehouse facility | LIBOR+1.7% | June 2021 | Mortgage loans or MBS | 1,500 | 666 | 634 | 759 | 733 | ||||||||||||||||||||||||||||||||||||||||||
$1,200 warehouse facility | LIBOR+1.5% to 3.0% | November 2020 | Mortgage loans or MBS | 1,200 | 564 | 610 | 683 | 724 | ||||||||||||||||||||||||||||||||||||||||||
$1,050 warehouse facility(5) | LIBOR+1.8% to 3.9% | September 2022 | Mortgage loans or MBS | 1,050 | 627 | 679 | 589 | 656 |
March 31, 2020 | Three Months Ended March 31, 2020 | ||||||||||||
Derivative Financial Instruments | Expiration Dates | Outstanding Notional | Fair Value | Recorded Gains/(Losses) | |||||||||
Assets | |||||||||||||
Mortgage loans held for sale | |||||||||||||
Loan sale commitments | 2020 | $ | 2,598 | $ | 111 | $ | 79 | ||||||
Derivative financial instruments | |||||||||||||
IRLCs | 2020 | 6,923 | 263 | 128 | |||||||||
LPCs | 2020 | 834 | 25 | 13 | |||||||||
Forward MBS trades | 2020 | 886 | 6 | — | |||||||||
Eurodollar futures | 2020-2021 | 6 | — | — | |||||||||
Total derivative financial instruments - assets | $ | 8,649 | $ | 294 | $ | 141 | |||||||
Liabilities | |||||||||||||
Derivative financial instruments | |||||||||||||
IRLCs | 2020 | $ | 22 | $ | — | $ | — | ||||||
LPCs | 2020 | 10 | — | (3 | ) | ||||||||
Forward MBS trades | 2020 | 10,229 | 223 | 211 | |||||||||
Eurodollar futures | 2020-2021 | 6 | — | — | |||||||||
Total derivative financial instruments - liabilities | $ | 10,267 | $ | 223 | $ | 208 |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral Pledged | Outstanding | Collateral Pledged | |||||||||||||||||||||||||||||||||||||||||||
$750 warehouse facility | LIBOR+1.8% | August 2021 | Mortgage loans or MBS | 750 | 574 | 591 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
$750 warehouse facility | LIBOR+1.7% to 2.8% | October 2021 | Mortgage loans or MBS | 750 | 472 | 481 | 411 | 425 | ||||||||||||||||||||||||||||||||||||||||||
$750 warehouse facility(6) | LIBOR+2.3% | September 2022 | Mortgage loans or MBS | 750 | 105 | 135 | 54 | 78 | ||||||||||||||||||||||||||||||||||||||||||
$700 warehouse facility(7) | LIBOR+1.3% to 2.2% | November 2020 | Mortgage loans or MBS | 700 | 488 | 505 | 469 | 488 | ||||||||||||||||||||||||||||||||||||||||||
$600 warehouse facility | LIBOR+2.2% | February 2021 | Mortgage loans or MBS | 600 | 156 | 185 | 174 | 202 | ||||||||||||||||||||||||||||||||||||||||||
$500 warehouse facility | LIBOR+2.5% to 4.0% | May 2021 | Mortgage loans or MBS | 500 | 0 | 0 | 336 | 349 | ||||||||||||||||||||||||||||||||||||||||||
$300 warehouse facility | LIBOR+1.4% | January 2021 | Mortgage loans or MBS | 300 | 258 | 258 | 136 | 136 | ||||||||||||||||||||||||||||||||||||||||||
$250 warehouse facility(8) | LIBOR+1.4% to 2.3% | December 2020 | Mortgage loans or MBS | 250 | 0 | 0 | 762 | 783 | ||||||||||||||||||||||||||||||||||||||||||
$200 warehouse facility | LIBOR+1.8% | April 2021 | Mortgage loans or MBS | 200 | 72 | 74 | 27 | 27 | ||||||||||||||||||||||||||||||||||||||||||
$200 warehouse facility | LIBOR+1.3% | November 2020 | Mortgage loans or MBS | 200 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
$50 warehouse facility | LIBOR+1.8% to 4.8% | April 2021 | Mortgage loans or MBS | 50 | 43 | 45 | 11 | 15 | ||||||||||||||||||||||||||||||||||||||||||
$40 warehouse facility | LIBOR+3.3% | January 2021 | Mortgage loans or MBS | 40 | 3 | 4 | 5 | 6 | ||||||||||||||||||||||||||||||||||||||||||
Warehouse facilities principal amount | 4,028 | 4,201 | 4,416 | 4,622 | ||||||||||||||||||||||||||||||||||||||||||||||
MSR Facilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
$450 warehouse facility(9) | LIBOR+5.1% | May 2021 | MSR | 450 | 0 | 0 | 150 | 945 | ||||||||||||||||||||||||||||||||||||||||||
$260 warehouse facility(2) | LIBOR+3.9% | August 2022 | MSR | 260 | 256 | 659 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||
$200 warehouse facility(10) | LIBOR+3.5% | August 2021 | MSR | 200 | 0 | 187 | 0 | 200 | ||||||||||||||||||||||||||||||||||||||||||
$150 warehouse facility(5) | LIBOR+3.8% | September 2022 | MSR | 150 | 0 | 149 | 0 | 130 | ||||||||||||||||||||||||||||||||||||||||||
$50 warehouse facility | LIBOR+2.8% | November 2020 | MSR | 50 | 10 | 80 | 10 | 84 | ||||||||||||||||||||||||||||||||||||||||||
MSR facilities principal amount | 266 | 1,075 | 160 | 1,359 | ||||||||||||||||||||||||||||||||||||||||||||||
Advance, warehouse and MSR facilities principal amount | 4,863 | $ | 6,004 | 4,998 | $ | 6,646 | ||||||||||||||||||||||||||||||||||||||||||||
Unamortized debt issuance costs | (12) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Advance and warehouse facilities, net | $ | 4,851 | $ | 4,997 | ||||||||||||||||||||||||||||||||||||||||||||||
Pledged Collateral for warehouse and MSR facilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans held for sale | $ | 3,560 | $ | 3,637 | $ | 3,826 | $ | 3,931 | ||||||||||||||||||||||||||||||||||||||||||
Reverse mortgage interests | 468 | 564 | 590 | 691 | ||||||||||||||||||||||||||||||||||||||||||||||
MSR | 266 | 1,075 | 160 | 1,359 |
March 31, 2019 | Three Months Ended March 31, 2019 | ||||||||||||
Derivative Financial Instruments | Expiration Dates | Outstanding Notional | Fair Value | Recorded Gains/(Losses) | |||||||||
Assets | |||||||||||||
Mortgage loans held for sale | |||||||||||||
Loan sale commitments | 2019 | $ | 365 | $ | 17 | $ | (9 | ) | |||||
Derivative financial instruments | |||||||||||||
IRLCs | 2019 | 2,557 | 69 | 9 | |||||||||
LPCs | 2019 | 216 | 2 | 1 | |||||||||
Forward MBS trades | 2019 | 410 | 1 | (1 | ) | ||||||||
Eurodollar futures | 2019-2021 | 7 | — | — | |||||||||
Total derivative financial instruments - assets | $ | 3,190 | $ | 72 | $ | 9 | |||||||
Liabilities | |||||||||||||
Derivative financial instruments | |||||||||||||
LPCs | 2019 | $ | 52 | $ | — | $ | — | ||||||
Forward MBS trades | 2019 | 3,804 | 22 | (3 | ) | ||||||||
Eurodollar futures | 2019-2021 | 13 | — | — | |||||||||
Total derivative financial instruments - liabilities | $ | 3,869 | $ | 22 | $ | (3 | ) |
March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||
Advance Facilities | Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral Pledged | Outstanding | Collateral pledged | ||||||||||||||||||
$325 advance facility(1) | LIBOR+1.5% to 6.5% | August 2021 | Servicing advance receivables | $ | 325 | $ | 223 | $ | 283 | $ | 224 | $ | 285 | |||||||||||||
$250 advance facility(2) | LIBOR+1.5% to 2.6% | December 2020 | Servicing advance receivables | 250 | 118 | 138 | 98 | 167 | ||||||||||||||||||
$200 advance facility | LIBOR+2.5% | January 2021 | Servicing advance receivables | 200 | 83 | 117 | 63 | 125 | ||||||||||||||||||
$125 advance facility(3) | LIBOR+1.5% to 7.4% | July 2020 | Servicing advance receivables | 125 | 66 | 76 | 37 | 88 | ||||||||||||||||||
Advance facilities principal amount | 490 | $ | 614 | 422 | $ | 665 | ||||||||||||||||||||
Unamortized debt issuance costs | (1 | ) | — | |||||||||||||||||||||||
Advance facilities, net | $ | 489 | $ | 422 |
March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||
Warehouse Facilities | Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral pledged | Outstanding | Collateral pledged | ||||||||||||||||||
$1,500 warehouse facility | LIBOR+1.0% | June 2020 | Mortgage loans or MBS | $ | 1,500 | $ | 1,214 | $ | 1,160 | $ | 759 | $ | 733 | |||||||||||||
$1,200 warehouse facility | LIBOR+1.5% to 3.0% | November 2020 | Mortgage loans or MBS | 1,200 | 566 | 602 | 683 | 724 | ||||||||||||||||||
$1,000 warehouse facility | LIBOR+1.4% to 2.3% | September 2020 | Mortgage loans or MBS | 1,000 | 593 | 608 | 762 | 783 | ||||||||||||||||||
$800 warehouse facility(1) | LIBOR+2.1% to 3.8% | April 2021 | Mortgage loans or MBS | 800 | 528 | 639 | 589 | 656 | ||||||||||||||||||
$750 warehouse facility | LIBOR+1.4% to 2.8% | September 2020 | Mortgage loans or MBS | 750 | 347 | 355 | 411 | 425 | ||||||||||||||||||
$700 warehouse facility | LIBOR+1.3% to 2.2% | November 2020 | Mortgage loans or MBS | 700 | 628 | 649 | 469 | 488 | ||||||||||||||||||
$600 warehouse facility | LIBOR+2.0% | February 2021 | Mortgage loans or MBS | 600 | 169 | 203 | 174 | 202 | ||||||||||||||||||
$500 warehouse facility | LIBOR+2.0% to 4.0% | May 2020 | Mortgage loans or MBS | 500 | 22 | 23 | 336 | 349 | ||||||||||||||||||
$200 warehouse facility | LIBOR+1.4% | January 2021 | Mortgage loans or MBS | 200 | 100 | 101 | 136 | 136 | ||||||||||||||||||
$200 warehouse facility | LIBOR+1.2% | April 2021 | Mortgage loans or MBS | 200 | 21 | 21 | 27 | 27 | ||||||||||||||||||
$200 warehouse facility | LIBOR+2.0% | May 2020 | Mortgage loans or MBS | 200 | 59 | 83 | 54 | 78 | ||||||||||||||||||
$200 warehouse facility | LIBOR+1.3% | October 2020 | Mortgage loans or MBS | 200 | — | — | — | — | ||||||||||||||||||
$50 warehouse facility | LIBOR+2.0% to 6.0% | June 2020 | Mortgage loans or MBS | 50 | 4 | 6 | 11 | 15 | ||||||||||||||||||
$40 warehouse facility | LIBOR+3.3% | September 2020 | Mortgage loans or MBS | 40 | 6 | 7 | 5 | 6 | ||||||||||||||||||
Warehouse facilities principal amount | 4,257 | 4,457 | 4,416 | 4,622 | ||||||||||||||||||||||
MSR Facility | ||||||||||||||||||||||||||
$400 warehouse facility | LIBOR+3.5% or 6.1% | January 2023 | Mortgage loans or MBS | 400 | 150 | 836 | 150 | 945 | ||||||||||||||||||
$400 warehouse facility | LIBOR+2.3% | December 2020 | Mortgage loans or MBS | 400 | 75 | 190 | — | 200 | ||||||||||||||||||
$150 warehouse facility(1) | LIBOR+2.8% | April 2021 | Mortgage loans or MBS | 150 | 40 | 119 | — | 130 | ||||||||||||||||||
$50 warehouse facility | LIBOR+2.8% | August 2020 | Mortgage loans or MBS | 50 | 30 | 71 | 10 | 84 | ||||||||||||||||||
MSR facilities principal amount | 295 | 1,216 | 160 | 1,359 | ||||||||||||||||||||||
Warehouse and MSR facilities principal amount | 4,552 | $ | 5,673 | 4,576 | $ | 5,981 | ||||||||||||||||||||
Unamortized debt issuance costs | (1 | ) | (1 | ) | ||||||||||||||||||||||
Warehouse facilities, net | $ | 4,551 | $ | 4,575 | ||||||||||||||||||||||
Pledged Collateral: | ||||||||||||||||||||||||||
Mortgage loans held for sale | $ | 3,659 | $ | 3,748 | $ | 3,826 | $ | 3,931 | ||||||||||||||||||
Reverse mortgage interests | 598 | 709 | 590 | 691 | ||||||||||||||||||||||
MSR | 295 | 1,216 | 160 | 1,359 |
Unsecured senior notes | September 30, 2020 | December 31, 2019 | |||||||||
$850 face value, 5.500% interest rate payable semi-annually, due August 2028(1) | $ | 850 | $ | 0 | |||||||
$750 face value, 9.125% interest rate payable semi-annually, due July 2026 | 750 | 750 | |||||||||
$600 face value, 6.000% interest rate payable semi-annually, due January 2027(2) | 600 | 0 | |||||||||
$600 face value, 6.500% interest rate payable semi-annually, due July 2021(3) | 0 | 492 | |||||||||
$300 face value, 6.500% interest rate payable semi-annually, due June 2022(3) | 0 | 206 | |||||||||
$950 face value, 8.125% interest rate payable semi-annually, due July 2023(4) | 0 | 950 | |||||||||
Unsecured senior notes principal amount | 2,200 | 2,398 | |||||||||
Unamortized debt issuance costs, premium and discount | (33) | (32) | |||||||||
Unsecured senior notes, net | $ | 2,167 | $ | 2,366 |
Unsecured senior notes | March 31, 2020 | December 31, 2019 | |||||
$950 face value, 8.125% interest rate payable semi-annually, due July 2023 | $ | 950 | $ | 950 | |||
$750 face value, 9.125% interest rate payable semi-annually, due July 2026 | 750 | 750 | |||||
$600 face value, 6.000% interest rate payable semi-annually, due January 2027(1) | 600 | — | |||||
$600 face value, 6.500% interest rate payable semi-annually, due July 2021(2) | — | 492 | |||||
$300 face value, 6.500% interest rate payable semi-annually, due June 2022(2) | — | 206 | |||||
Unsecured senior notes principal amount | 2,300 | 2,398 | |||||
Unamortized debt issuance costs, premium and discount | (41 | ) | (32 | ) | |||
Unsecured senior notes, net | $ | 2,259 | $ | 2,366 |
Year Ending December 31, | Amount | |||||||
2020 through 2024 | $ | 0 | ||||||
Thereafter | 2,200 | |||||||
Total unsecured senior notes principal amount | $ | 2,200 |
Year Ending December 31, | Amount | |||
2020 | $ | — | ||
2021 | — | |||
2022 | — | |||
2023 | 950 | |||
2024 | — | |||
Thereafter | 1,350 | |||
Total unsecured senior notes principal amount | $ | 2,300 |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
Other nonrecourse debt | Issue Date | Maturity Date | Interest Rate | Class of Note | Collateral Amount | Outstanding | Outstanding | ||||||||||||||||||||||||||||||||||
Participating interest financing(1) | — | — | 0.3%-5.6% | — | $ | 0 | $ | 3,664 | $ | 4,284 | |||||||||||||||||||||||||||||||
Securitization of nonperforming HECM loans | |||||||||||||||||||||||||||||||||||||||||
Trust 2020-1 | September 2020 | September 2030 | 1.3%-7.5% | A, M1, M2, M3, M4, M5 | 519 | 516 | 0 | ||||||||||||||||||||||||||||||||||
Trust 2019-2 | November 2019 | November 2029 | 2.3%-6.0% | A, M1, M2, M3, M4, M5 | 275 | 259 | 333 | ||||||||||||||||||||||||||||||||||
Trust 2019-1 | June 2019 | June 2029 | 2.7%-6.0% | A, M1, M2, M3, M4, M5 | 248 | 226 | 302 | ||||||||||||||||||||||||||||||||||
Trust 2018-3(2) | November 2018 | November 2028 | 3.6%-6.0% | A, M1, M2, M3, M4, M5 | 0 | 0 | 209 | ||||||||||||||||||||||||||||||||||
Trust 2018-2(2) | July 2018 | July 2028 | 3.2%-6.0% | A, M1, M2, M3, M4, M5 | 0 | 0 | 148 | ||||||||||||||||||||||||||||||||||
Other nonrecourse debt principal amount | 4,665 | 5,276 | |||||||||||||||||||||||||||||||||||||||
Unamortized debt issuance costs, premium and discount | 6 | 10 | |||||||||||||||||||||||||||||||||||||||
Other nonrecourse debt, net | $ | 4,671 | $ | 5,286 |
March 31, 2020 | December 31, 2019 | ||||||||||||||||
Other nonrecourse debt | Issue Date | Maturity Date | Class of Note | Collateral Amount | Outstanding | Outstanding | |||||||||||
Participating interest financing(1) | — | — | — | $ | — | $ | 4,045 | $ | 4,284 | ||||||||
Securitization of nonperforming HECM loans | |||||||||||||||||
Trust 2019-2 | November 2019 | November 2029 | A, M1, M2, M3, M4, M5 | 306 | 297 | 333 | |||||||||||
Trust 2019-1 | June 2019 | June 2029 | A, M1, M2, M3, M4, M5 | 286 | 269 | 302 | |||||||||||
Trust 2018-3 | November 2018 | November 2028 | A, M1, M2, M3, M4, M5 | 209 | 190 | 209 | |||||||||||
Trust 2018-2 | July 2018 | July 2028 | A, M1, M2, M3, M4, M5 | 157 | 137 | 148 | |||||||||||
Other nonrecourse debt principal amount | 4,938 | 5,276 | |||||||||||||||
Unamortized debt issuance costs, premium and discount | 7 | 10 | |||||||||||||||
Other nonrecourse debt, net | $ | 4,945 | $ | 5,286 |
(1)Amounts represent the Company’s participating interest in |
Payables and other liabilities | March 31, 2020 | December 31, 2019 | |||||
Loans subject to repurchase right from Ginnie Mae | $ | 468 | $ | 560 | |||
Payables to servicing and subservicing investors | 407 | 423 | |||||
Derivative financial instruments | 223 | 15 | |||||
Payable to GSEs and securitized trusts | 148 | 182 | |||||
Operating lease liabilities | 125 | 135 | |||||
Other liabilities | 594 | 701 | |||||
Total payables and other liabilities | $ | 1,965 | $ | 2,016 |
Repurchase Reserves | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | |||||
Balance - beginning of period | $ | 25 | $ | 8 | |||
Provisions | 5 | 8 | |||||
Releases | (1 | ) | — | ||||
Balance - end of period | $ | 29 | $ | 16 |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Consolidated transactions with VIEs | Transfers Accounted for as Secured Borrowings | Reverse Secured Borrowings | Transfers Accounted for as Secured Borrowings | Reverse Secured Borrowings | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Restricted cash | $ | 44 | $ | 25 | $ | 66 | $ | 42 | |||||||||||||||
Reverse mortgage interests, net(1) | 0 | 4,603 | 0 | 5,230 | |||||||||||||||||||
Advances and other receivables, net | 430 | 0 | 540 | 0 | |||||||||||||||||||
Total assets | $ | 474 | $ | 4,628 | $ | 606 | $ | 5,272 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Advance facilities(2) | $ | 347 | $ | 0 | $ | 359 | $ | 0 | |||||||||||||||
Payables and other liabilities | 0 | 0 | 1 | 1 | |||||||||||||||||||
Participating interest financing | 0 | 3,664 | 0 | 4,284 | |||||||||||||||||||
HECM Securitizations (HMBS) | |||||||||||||||||||||||
Trust 2020-1 | 0 | 516 | 0 | 0 | |||||||||||||||||||
Trust 2019-2 | 0 | 259 | 0 | 333 | |||||||||||||||||||
Trust 2019-1 | 0 | 226 | 0 | 302 | |||||||||||||||||||
Trust 2018-3 | 0 | 0 | 0 | 209 | |||||||||||||||||||
Trust 2018-2 | 0 | 0 | 0 | 148 | |||||||||||||||||||
Total liabilities | $ | 347 | $ | 4,665 | $ | 360 | $ | 5,277 |
March 31, 2020 | December 31, 2019 | ||||||||||||||
Consolidated transactions with VIEs | Transfers Accounted for as Secured Borrowings | Reverse Secured Borrowings | Transfers Accounted for as Secured Borrowings | Reverse Secured Borrowings | |||||||||||
Assets | |||||||||||||||
Restricted cash | $ | 53 | $ | 43 | $ | 66 | $ | 42 | |||||||
Reverse mortgage interests, net(1) | — | 4,878 | — | 5,230 | |||||||||||
Advances and other receivables, net | 498 | — | 540 | — | |||||||||||
Total assets | $ | 551 | $ | 4,921 | $ | 606 | $ | 5,272 | |||||||
Liabilities | |||||||||||||||
Advance facilities(2) | $ | 407 | $ | — | $ | 359 | $ | — | |||||||
Payables and other liabilities | — | 1 | 1 | 1 | |||||||||||
Participating interest financing | — | 4,045 | — | 4,284 | |||||||||||
HECM Securitizations (HMBS) | |||||||||||||||
Trust 2019-2 | — | 297 | — | 333 | |||||||||||
Trust 2019-1 | — | 269 | — | 302 | |||||||||||
Trust 2018-3 | — | 190 | — | 209 | |||||||||||
Trust 2018-2 | — | 137 | — | 148 | |||||||||||
Total liabilities | $ | 407 | $ | 4,939 | $ | 360 | $ | 5,277 |
Unconsolidated securitization trusts | September 30, 2020 | December 31, 2019 | |||||||||
Total collateral balances - UPB | $ | 1,378 | $ | 1,503 | |||||||
Total certificate balances | $ | 1,378 | $ | 1,512 |
Unconsolidated securitization trusts | March 31, 2020 | December 31, 2019 | |||||
Total collateral balances - UPB | $ | 1,460 | $ | 1,503 | |||
Total certificate balances | $ | 1,467 | $ | 1,512 |
Principal Amount of Transferred Loans 60 Days or More Past Due | September 30, 2020 | December 31, 2019 | |||||||||
Unconsolidated securitization trusts | $ | 179 | $ | 193 |
Principal Amount of Transferred Loans 60 Days or More Past Due | March 31, 2020 | December 31, 2019 | |||||
Unconsolidated securitization trusts | $ | 184 | $ | 193 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Computation of earnings per share | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net income (loss) attributable to Mr. Cooper | $ | 209 | $ | 84 | $ | 114 | $ | (189) | |||||||||||||||
Less: Undistributed earnings attributable to participating stockholders | 2 | 1 | 1 | 0 | |||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 207 | $ | 83 | $ | 113 | $ | (189) | |||||||||||||||
Net income (loss) per common share attributable to Mr. Cooper: | |||||||||||||||||||||||
Basic | $ | 2.26 | $ | 0.91 | $ | 1.23 | $ | (2.08) | |||||||||||||||
Diluted | $ | 2.18 | $ | 0.90 | $ | 1.20 | $ | (2.08) | |||||||||||||||
Weighted average shares of common stock outstanding (in thousands): | |||||||||||||||||||||||
Basic | 91,682 | 91,080 | 91,688 | 91,012 | |||||||||||||||||||
Dilutive effect of stock awards(1) | 2,563 | 117 | 1,529 | 0 | |||||||||||||||||||
Dilutive effect of participating securities(1) | 839 | 839 | 839 | 0 | |||||||||||||||||||
Diluted | 95,084 | 92,036 | 94,056 | 91,012 |
Computation of earnings per share | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | |||||
Net loss attributable to Mr. Cooper | $ | (168 | ) | $ | (186 | ) | |
Less: Undistributed earnings attributable to participating stockholders | — | — | |||||
Net loss attributable to common stockholders | $ | (168 | ) | $ | (186 | ) | |
Net loss per common share attributable to Mr. Cooper: | |||||||
Basic | $ | (1.84 | ) | $ | (2.05 | ) | |
Diluted | $ | (1.84 | ) | $ | (2.05 | ) | |
Weighted average shares of common stock outstanding (in thousands): | |||||||
Basic | 91,385 | 90,828 | |||||
Dilutive effect of stock awards(1) | — | — | |||||
Dilutive effect of participating securities(1) | — | — | |||||
Diluted | 91,385 | 90,828 |
Income taxes | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | |||||
Loss before income tax benefit | $ | (239 | ) | $ | (233 | ) | |
Income tax benefit | $ | (68 | ) | $ | (47 | ) | |
Effective tax rate(1) | 28.4 | % | 20.3 | % |
September 30, 2020 | |||||||||||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||||||||||
Fair value - Recurring basis | Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Mortgage loans held for sale | $ | 3,817 | $ | 0 | $ | 3,817 | $ | 0 | |||||||||||||||
Forward mortgage servicing rights | 2,663 | 0 | 0 | 2,663 | |||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
IRLCs | 414 | 0 | 0 | 414 | |||||||||||||||||||
Forward MBS trades | 23 | 0 | 23 | 0 | |||||||||||||||||||
LPCs | 38 | 0 | 0 | 38 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Forward MBS trades | $ | 42 | $ | 0 | $ | 42 | $ | 0 | |||||||||||||||
LPCs | 2 | 0 | 0 | 2 | |||||||||||||||||||
Mortgage servicing rights financing | 47 | 0 | 0 | 47 | |||||||||||||||||||
Excess spread financing | 1,044 | 0 | 0 | 1,044 |
March 31, 2020 | |||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||
Fair value - Recurring basis | Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||
Assets | |||||||||||||||
Mortgage loans held for sale | $ | 3,922 | $ | — | $ | 3,922 | $ | — | |||||||
Forward mortgage servicing rights | 3,109 | — | — | 3,109 | |||||||||||
Derivative financial instruments | |||||||||||||||
IRLCs | 263 | — | 263 | — | |||||||||||
Forward MBS trades | 6 | — | 6 | — | |||||||||||
LPCs | 25 | — | 25 | — | |||||||||||
Total assets | $ | 7,325 | $ | — | $ | 4,216 | $ | 3,109 | |||||||
Liabilities | |||||||||||||||
Derivative financial instruments | |||||||||||||||
Forward MBS trades | $ | 223 | $ | — | $ | 223 | $ | — | |||||||
Mortgage servicing rights financing | 43 | — | — | 43 | |||||||||||
Excess spread financing | 1,242 | — | — | 1,242 | |||||||||||
Total liabilities | $ | 1,508 | $ | — | $ | 223 | $ | 1,285 |
December 31, 2019 | |||||||||||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||||||||||
Fair value - Recurring basis | Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Mortgage loans held for sale | $ | 4,077 | $ | 0 | $ | 4,077 | $ | 0 | |||||||||||||||
Forward mortgage servicing rights | 3,496 | 0 | 0 | 3,496 | |||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
IRLCs | 135 | 0 | 135 | 0 | |||||||||||||||||||
Forward MBS trades | 7 | 0 | 7 | 0 | |||||||||||||||||||
LPCs | 12 | 0 | 12 | 0 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Forward MBS trades | $ | 12 | $ | 0 | $ | 12 | $ | 0 | |||||||||||||||
LPCs | 3 | 0 | 3 | 0 | |||||||||||||||||||
Mortgage servicing rights financing | 37 | 0 | 0 | 37 | |||||||||||||||||||
Excess spread financing | 1,311 | 0 | 0 | 1,311 |
December 31, 2019 | |||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||
Fair value - Recurring basis | Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||
Assets | |||||||||||||||
Mortgage loans held for sale | $ | 4,077 | $ | — | $ | 4,077 | $ | — | |||||||
Forward mortgage servicing rights | 3,496 | — | — | 3,496 | |||||||||||
Derivative financial instruments | |||||||||||||||
IRLCs | 135 | — | 135 | — | |||||||||||
Forward MBS trades | 7 | — | 7 | — | |||||||||||
LPCs | 12 | — | 12 | — | |||||||||||
Total assets | $ | 7,727 | $ | — | $ | 4,231 | $ | 3,496 | |||||||
Liabilities | |||||||||||||||
Derivative financial instruments | |||||||||||||||
Forward MBS trades | $ | 12 | $ | — | $ | 12 | $ | — | |||||||
LPCs | 3 | — | 3 | — | |||||||||||
Mortgage servicing rights financing | 37 | — | — | 37 | |||||||||||
Excess spread financing | 1,311 | — | — | 1,311 | |||||||||||
Total liabilities | $ | 1,363 | $ | — | $ | 15 | $ | 1,348 |
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||||||||
Fair value - Level 3 assets and liabilities | Forward mortgage servicing rights | IRLCs | LPCs | Excess spread financing | Mortgage servicing rights financing | ||||||||||||||||||||||||
Balance - beginning of period | $ | 3,496 | $ | 135 | $ | 12 | $ | 1,311 | $ | 37 | |||||||||||||||||||
Total gains or losses included in earnings | (1,275) | 279 | 26 | (132) | 10 | ||||||||||||||||||||||||
Purchases, issuances, sales, repayments and settlements | |||||||||||||||||||||||||||||
Purchases | 30 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Issuances | 412 | 0 | 0 | 24 | 0 | ||||||||||||||||||||||||
Settlements and repayments | 0 | 0 | 0 | (159) | 0 | ||||||||||||||||||||||||
Balance - end of period | $ | 2,663 | $ | 414 | $ | 38 | $ | 1,044 | $ | 47 |
Three Months Ended March 31, 2020 | |||||||||||
Assets | Liabilities | ||||||||||
Fair value - Level 3 assets and liabilities | Mortgage servicing rights | Excess spread financing | Mortgage servicing rights financing | ||||||||
Balance - beginning of period | $ | 3,496 | $ | 1,311 | $ | 37 | |||||
Total gains or losses included in earnings | (534 | ) | (35 | ) | 6 | ||||||
Purchases, issuances, sales, repayments and settlements | |||||||||||
Purchases | 24 | — | — | ||||||||
Issuances | 123 | 24 | — | ||||||||
Settlements and repayments | — | (58 | ) | — | |||||||
Balance - end of period | $ | 3,109 | $ | 1,242 | $ | 43 |
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||
Fair value - Level 3 assets and liabilities | Forward mortgage servicing rights | Mortgage loans held for investment | Excess spread financing | Mortgage servicing rights financing | |||||||||||||||||||
Balance - beginning of period | $ | 3,665 | $ | 119 | $ | 1,184 | $ | 32 | |||||||||||||||
Total gains or losses included in earnings | (1,039) | 3 | (190) | 15 | |||||||||||||||||||
Payments received from borrowers | 0 | (11) | 0 | 0 | |||||||||||||||||||
Purchases, issuances, sales, repayments and settlements | |||||||||||||||||||||||
Purchases | 732 | 0 | 469 | 0 | |||||||||||||||||||
Issuances | 298 | 0 | 0 | 0 | |||||||||||||||||||
Sales | (317) | (94) | 0 | 0 | |||||||||||||||||||
Settlements and repayments | 0 | 0 | (182) | 0 | |||||||||||||||||||
Transfers to mortgage loans held for sale | 0 | (12) | 0 | 0 | |||||||||||||||||||
Transfers to real estate owned | 0 | (5) | 0 | 0 | |||||||||||||||||||
Balance - end of period | $ | 3,339 | $ | 0 | $ | 1,281 | $ | 47 |
Three Months Ended March 31, 2019 | |||||||||||
Assets | Liabilities | ||||||||||
Fair value - Level 3 assets and liabilities | Mortgage servicing rights | Excess spread financing | Mortgage servicing rights financing | ||||||||
Balance - beginning of period | $ | 3,665 | $ | 1,184 | $ | 32 | |||||
Total gains or losses included in earnings | (399 | ) | (69 | ) | 2 | ||||||
Purchases, issuances, sales, repayments and settlements | |||||||||||
Purchases | 409 | — | — | ||||||||
Issuances | 66 | 245 | — | ||||||||
Sales | (260 | ) | — | — | |||||||
Settlements and repayments | — | (51 | ) | — | |||||||
Balance - end of period | $ | 3,481 | $ | 1,309 | $ | 34 |
September 30, 2020 | |||||||||||||||||
Range | Weighted Average | ||||||||||||||||
Level 3 inputs | Min | Max | |||||||||||||||
Forward MSR | |||||||||||||||||
Discount rate | 8.3 | % | 12.0 | % | 9.5 | % | |||||||||||
Prepayment speed | 12.6 | % | 19.2 | % | 14.4 | % | |||||||||||
Cost to service per loan(1) | $ | 68 | $ | 295 | $ | 105 | |||||||||||
IRLCs | |||||||||||||||||
Value of servicing (basis points per loan) | (0.4) | 2.1 | 1.2 | ||||||||||||||
Excess spread financing | |||||||||||||||||
Discount rate | 9.8 | % | 15.5 | % | 11.9 | % | |||||||||||
Prepayment speed | 13.4 | % | 14.0 | % | 13.6 | % | |||||||||||
Recapture rate | 17.1 | % | 23.5 | % | 19.1 | % | |||||||||||
Average life | 5.2 years | 5.5 years | 5.3 years | ||||||||||||||
Mortgage servicing rights financing | |||||||||||||||||
Advance financing and counterparty fee rates | 6.4 | % | 9.4 | % | 8.2 | % | |||||||||||
Annual advance recovery rates | 18.6 | % | 22.6 | % | 20.2 | % |
September 30, 2020 | |||||||||||||||||||||||
Carrying Amount | Fair Value | ||||||||||||||||||||||
Financial instruments | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Financial assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 946 | $ | 946 | $ | 0 | $ | 0 | |||||||||||||||
Restricted cash | 229 | 229 | 0 | 0 | |||||||||||||||||||
Advances and other receivables, net | 745 | 0 | 0 | 745 | |||||||||||||||||||
Reverse mortgage interests, net | 5,460 | 0 | 0 | 5,574 | |||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||
Unsecured senior notes(1) | 2,167 | 2,237 | 0 | 0 | |||||||||||||||||||
Advance and warehouse facilities(1) | 4,851 | 0 | 4,851 | 0 | |||||||||||||||||||
Participating interest financing(1) | 3,676 | 0 | 0 | 3,679 | |||||||||||||||||||
HECM Securitization (HMBS)(1) | |||||||||||||||||||||||
Trust 2020-1 | 513 | 0 | 0 | 513 | |||||||||||||||||||
Trust 2019-2 | 257 | 0 | 0 | 257 | |||||||||||||||||||
Trust 2019-1 | 225 | 0 | 0 | 225 |
March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||||||||||||||
Financial instruments | Level 1 | Level 2 | Level 3 | Financial instruments | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||
Financial assets | Financial assets | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 579 | $ | 579 | $ | — | $ | — | Cash and cash equivalents | $ | 329 | $ | 329 | $ | 0 | $ | 0 | |||||||||||||||||||||
Restricted cash | 266 | 266 | — | — | Restricted cash | 283 | 283 | 0 | 0 | |||||||||||||||||||||||||||||
Advances and other receivables, net | 685 | — | — | 685 | Advances and other receivables, net | 988 | 0 | 0 | 988 | |||||||||||||||||||||||||||||
Reverse mortgage interests, net | 5,955 | — | — | 6,015 | Reverse mortgage interests, net | 6,279 | 0 | 0 | 6,318 | |||||||||||||||||||||||||||||
Mortgage loans held for sale | 3,922 | — | 3,922 | — | ||||||||||||||||||||||||||||||||||
Derivative financial instruments | 294 | — | 294 | — | ||||||||||||||||||||||||||||||||||
Financial liabilities | Financial liabilities | |||||||||||||||||||||||||||||||||||||
Unsecured senior notes(1) | 2,259 | 2,055 | — | — | Unsecured senior notes(1) | 2,366 | 2,505 | 0 | 0 | |||||||||||||||||||||||||||||
Advance facilities(1) | 489 | — | 489 | — | ||||||||||||||||||||||||||||||||||
Warehouse facilities(1) | 4,551 | — | 4,551 | — | ||||||||||||||||||||||||||||||||||
Mortgage servicing rights financing liability | 43 | — | — | 43 | ||||||||||||||||||||||||||||||||||
Excess spread financing | 1,242 | — | — | 1,242 | ||||||||||||||||||||||||||||||||||
Derivative financial instruments | 223 | — | 223 | — | ||||||||||||||||||||||||||||||||||
Advance and warehouse facilities(1) | Advance and warehouse facilities(1) | 4,997 | 0 | 4,997 | 0 | |||||||||||||||||||||||||||||||||
Participating interest financing(1) | 4,056 | — | — | 4,056 | Participating interest financing(1) | 4,299 | 0 | 0 | 4,299 | |||||||||||||||||||||||||||||
HECM Securitization (HMBS)(1) | HECM Securitization (HMBS)(1) | |||||||||||||||||||||||||||||||||||||
Trust 2019-2 | 295 | — | — | 295 | Trust 2019-2 | 331 | 0 | 0 | 331 | |||||||||||||||||||||||||||||
Trust 2019-1 | 268 | — | — | 268 | Trust 2019-1 | 300 | 0 | 0 | 300 | |||||||||||||||||||||||||||||
Trust 2018-3 | 189 | — | — | 189 | Trust 2018-3 | 208 | 0 | 0 | 208 | |||||||||||||||||||||||||||||
Trust 2018-2 | 137 | — | — | 137 | Trust 2018-2 | 148 | 0 | 0 | 148 |
December 31, 2019 | |||||||||||||||
Carrying Amount | Fair Value | ||||||||||||||
Financial instruments | Level 1 | Level 2 | Level 3 | ||||||||||||
Financial assets | |||||||||||||||
Cash and cash equivalents | $ | 329 | $ | 329 | $ | — | $ | — | |||||||
Restricted cash | 283 | 283 | — | — | |||||||||||
Advances and other receivables, net | 988 | — | — | 988 | |||||||||||
Reverse mortgage interests, net | 6,279 | — | — | 6,318 | |||||||||||
Mortgage loans held for sale | 4,077 | — | 4,077 | — | |||||||||||
Derivative financial instruments | 153 | — | 153 | — | |||||||||||
Financial liabilities | |||||||||||||||
Unsecured senior notes(1) | 2,366 | 2,505 | — | — | |||||||||||
Advance facilities | 422 | — | 422 | — | |||||||||||
Warehouse facilities(1) | 4,575 | — | 4,575 | — | |||||||||||
Mortgage servicing rights financing liability | 37 | — | — | 37 | |||||||||||
Excess spread financing | 1,311 | — | — | 1,311 | |||||||||||
Derivative financial instruments | 15 | — | 15 | — | |||||||||||
Participating interest financing(1) | 4,299 | — | — | 4,299 | |||||||||||
HECM Securitization (HMBS)(1) | |||||||||||||||
Trust 2019-2 | 331 | — | — | 331 | |||||||||||
Trust 2019-1 | 300 | — | — | 300 | |||||||||||
Trust 2018-3 | 208 | — | — | 208 | |||||||||||
Trust 2018-2 | 148 | — | — | 148 |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Financial information by segment | Servicing | Originations | Xome | Corporate/Other | Consolidated | ||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Service related, net(1) | $ | 92 | $ | 27 | $ | 108 | $ | 0 | $ | 227 | |||||||||||||||||||
Net gain on mortgage loans held for sale | 40 | 605 | 0 | 0 | 645 | ||||||||||||||||||||||||
Total revenues | 132 | 632 | 108 | 0 | 872 | ||||||||||||||||||||||||
Total expenses | 99 | 195 | 94 | 43 | 431 | ||||||||||||||||||||||||
Interest income | 40 | 16 | 0 | 0 | 56 | ||||||||||||||||||||||||
Interest expense | (105) | (15) | 0 | (45) | (165) | ||||||||||||||||||||||||
Other income (expenses), net | 0 | 0 | 1 | (52) | (51) | ||||||||||||||||||||||||
Total other (expenses) income, net | (65) | 1 | 1 | (97) | (160) | ||||||||||||||||||||||||
(Loss) income before income tax (benefit) expense | $ | (32) | $ | 438 | $ | 15 | $ | (140) | $ | 281 | |||||||||||||||||||
Depreciation and amortization for property and equipment and intangible assets | $ | 6 | $ | 5 | $ | 5 | $ | 3 | $ | 19 | |||||||||||||||||||
Total assets | $ | 14,707 | $ | 4,250 | $ | 135 | $ | 2,663 | $ | 21,755 |
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||
Financial information by segment | Servicing | Originations | Xome | Corporate/Other | Consolidated | ||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Service related, net(1) | $ | 126 | $ | 22 | $ | 112 | $ | (2) | $ | 258 | |||||||||||||||||||
Net gain on mortgage loans held for sale | 37 | 312 | 0 | 11 | 360 | ||||||||||||||||||||||||
Total revenues | 163 | 334 | 112 | 9 | 618 | ||||||||||||||||||||||||
Total expenses | 171 | 155 | 101 | 51 | 478 | ||||||||||||||||||||||||
Interest income | 137 | 24 | 0 | 2 | 163 | ||||||||||||||||||||||||
Interest expense | (120) | (24) | 0 | (52) | (196) | ||||||||||||||||||||||||
Other (expense) income, net | 0 | (1) | 3 | (2) | 0 | ||||||||||||||||||||||||
Total other income (expenses), net | 17 | (1) | 3 | (52) | (33) | ||||||||||||||||||||||||
Income (loss) before income tax expense (benefit) | $ | 9 | $ | 178 | $ | 14 | $ | (94) | $ | 107 | |||||||||||||||||||
Depreciation and amortization for property and equipment and intangible assets | $ | 5 | $ | 4 | $ | 4 | $ | 9 | $ | 22 | |||||||||||||||||||
Total assets | $ | 12,065 | $ | 4,386 | $ | 172 | $ | 1,855 | $ | 18,478 |
Three Months Ended March 31, 2020 | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial information by segment | Servicing | Originations | Xome | Elimination | Total Operating Segments | Corporate/Other | Consolidated | Financial information by segment | Servicing | Originations | Xome | Corporate/Other | Consolidated | |||||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service related, net | $ | (180 | ) | $ | 20 | $ | 106 | $ | (1 | ) | $ | (55 | ) | $ | 2 | $ | (53 | ) | ||||||||||||||||||||||||||||||||||||||
Service related, net(1) | Service related, net(1) | $ | (202) | $ | 68 | $ | 320 | $ | 0 | $ | 186 | |||||||||||||||||||||||||||||||||||||||||||||
Net gain on mortgage loans held for sale | 34 | 297 | — | — | 331 | — | 331 | Net gain on mortgage loans held for sale | 119 | 1,475 | 0 | 0 | 1,594 | |||||||||||||||||||||||||||||||||||||||||||
Total revenues | (146 | ) | 317 | 106 | (1 | ) | 276 | 2 | 278 | Total revenues | (83) | 1,543 | 320 | 0 | 1,780 | |||||||||||||||||||||||||||||||||||||||||
Total expenses | 149 | 166 | 96 | (1 | ) | 410 | 34 | 444 | Total expenses | 370 | 528 | 285 | 111 | 1,294 | ||||||||||||||||||||||||||||||||||||||||||
Other income (expenses), net: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | 83 | 34 | — | — | 117 | 1 | 118 | Interest income | 180 | 69 | 0 | 1 | 250 | |||||||||||||||||||||||||||||||||||||||||||
Interest expense | (113 | ) | (27 | ) | — | — | (140 | ) | (52 | ) | (192 | ) | Interest expense | (335) | (55) | 0 | (144) | (534) | ||||||||||||||||||||||||||||||||||||||
Other income (expenses), net | — | — | 1 | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total other income (expenses), net | (30 | ) | 7 | 1 | — | (22 | ) | (51 | ) | (73 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net | Other income (expense), net | 0 | 0 | 3 | (53) | (50) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total other (expenses) income, net | Total other (expenses) income, net | (155) | 14 | 3 | (196) | (334) | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Loss) income before income tax (benefit) expense | $ | (325 | ) | $ | 158 | $ | 11 | $ | — | $ | (156 | ) | $ | (83 | ) | $ | (239 | ) | (Loss) income before income tax (benefit) expense | $ | (608) | $ | 1,029 | $ | 38 | $ | (307) | $ | 152 | |||||||||||||||||||||||||||
Depreciation and amortization for property and equipment and intangible assets | $ | 3 | $ | 3 | $ | 3 | $ | — | $ | 9 | $ | 10 | $ | 19 | Depreciation and amortization for property and equipment and intangible assets | $ | 14 | $ | 12 | $ | 11 | $ | 19 | $ | 56 | |||||||||||||||||||||||||||||||
Total assets | $ | 10,142 | $ | 9,608 | $ | 534 | $ | (5,964 | ) | $ | 14,320 | $ | 3,293 | $ | 17,613 | Total assets | $ | 14,707 | $ | 4,250 | $ | 135 | $ | 2,663 | $ | 21,755 |
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||
Financial information by segment | Servicing | Originations | Xome | Corporate/Other | Consolidated | ||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Service related, net(1) | $ | 108 | $ | 57 | $ | 316 | $ | (2) | $ | 479 | |||||||||||||||||||
Net gain on mortgage loans held for sale | 90 | 687 | 0 | 11 | 788 | ||||||||||||||||||||||||
Total revenues | 198 | 744 | 316 | 9 | 1,267 | ||||||||||||||||||||||||
Total expenses | 555 | 404 | 301 | 153 | 1,413 | ||||||||||||||||||||||||
Interest income | 388 | 64 | 0 | 7 | 459 | ||||||||||||||||||||||||
Interest expense | (343) | (67) | 0 | (162) | (572) | ||||||||||||||||||||||||
Other income (expense), net | 0 | 4 | 14 | (2) | 16 | ||||||||||||||||||||||||
Total other income (expenses), net | 45 | 1 | 14 | (157) | (97) | ||||||||||||||||||||||||
(Loss) income before income tax (benefit) expense | $ | (312) | $ | 341 | $ | 29 | $ | (301) | $ | (243) | |||||||||||||||||||
Depreciation and amortization for property and equipment and intangible assets | $ | 13 | $ | 13 | $ | 11 | $ | 30 | $ | 67 | |||||||||||||||||||
Total assets | $ | 12,065 | $ | 4,386 | $ | 172 | $ | 1,855 | $ | 18,478 |
Three Months Ended March 31, 2019 | |||||||||||||||||||||||||||
Financial information by segment | Servicing | Originations | Xome | Elimination | Total Operating Segments | Corporate/Other | Consolidated | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Service related, net | $ | (27 | ) | $ | 15 | $ | 96 | $ | — | $ | 84 | $ | — | $ | 84 | ||||||||||||
Net gain on mortgage loans held for sale | 35 | 131 | — | — | 166 | — | 166 | ||||||||||||||||||||
Total revenues | 8 | 146 | 96 | — | 250 | — | 250 | ||||||||||||||||||||
Total expenses | 195 | 104 | 99 | — | 398 | 45 | 443 | ||||||||||||||||||||
Other income (expenses), net: | |||||||||||||||||||||||||||
Interest income | 115 | 17 | — | — | 132 | 2 | 134 | ||||||||||||||||||||
Interest expense | (114 | ) | (18 | ) | — | — | (132 | ) | (57 | ) | (189 | ) | |||||||||||||||
Other income, net | — | 4 | 11 | — | 15 | — | 15 | ||||||||||||||||||||
Total other income (expenses), net | 1 | 3 | 11 | — | 15 | (55 | ) | (40 | ) | ||||||||||||||||||
(Loss) income before income tax (benefit) expense | $ | (186 | ) | $ | 45 | $ | 8 | $ | — | $ | (133 | ) | $ | (100 | ) | $ | (233 | ) | |||||||||
Depreciation and amortization for property and equipment and intangible assets | $ | 4 | $ | 3 | $ | 4 | $ | — | $ | 11 | $ | 10 | $ | 21 | |||||||||||||
Total assets | $ | 13,642 | $ | 4,865 | $ | 502 | $ | (4,100 | ) | $ | 14,909 | $ | 2,737 | $ | 17,646 |
Overview |
Table 1. Consolidated Operations |
Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Revenues - operational(1) | $ | 901 | $ | 701 | $ | 200 | 29 | % | |||||||||||||||
Revenues - Mark-to-market | (29) | (83) | 54 | (65) | % | ||||||||||||||||||
Total revenues | 872 | 618 | 254 | 41 | % | ||||||||||||||||||
Total expenses | 431 | 478 | (47) | (10) | % | ||||||||||||||||||
Total other expenses, net | (160) | (33) | (127) | 385 | % | ||||||||||||||||||
Income before income tax expense | 281 | 107 | 174 | 163 | % | ||||||||||||||||||
Less: Income tax expense | 67 | 24 | 43 | 179 | % | ||||||||||||||||||
Net income | 214 | 83 | 131 | 158 | % | ||||||||||||||||||
Less: Net income (loss) attributable to non-controlling interests | 5 | (1) | 6 | (600) | % | ||||||||||||||||||
Net income attributable to Mr. Cooper | $ | 209 | $ | 84 | $ | 125 | 149 | % |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | $ Change | % Change | |||||||||||
Revenues - operational | $ | 661 | $ | 543 | $ | 118 | 22 | % | ||||||
Revenues - Mark-to-market | (383 | ) | (293 | ) | (90 | ) | 31 | % | ||||||
Total revenues | 278 | 250 | 28 | 11 | % | |||||||||
Total expenses | 444 | 443 | 1 | — | % | |||||||||
Total other income (expenses), net | (73 | ) | (40 | ) | (33 | ) | 83 | % | ||||||
Loss before income tax expense benefit | (239 | ) | (233 | ) | (6 | ) | 3 | % | ||||||
Less: Income tax benefit | (68 | ) | (47 | ) | (21 | ) | 45 | % | ||||||
Net loss | (171 | ) | (186 | ) | 15 | (8 | )% | |||||||
Less: Net loss attributable to non-controlling interests | (3 | ) | — | (3 | ) | (100 | )% | |||||||
Net loss attributable to Mr. Cooper | $ | (168 | ) | $ | (186 | ) | $ | 18 | (10 | )% |
Table 1.1 Consolidated Operations |
Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Revenues - operational(1) | $ | 2,453 | $ | 1,874 | $ | 579 | 31 | % | |||||||||||||||
Revenues - Mark-to-market | (673) | (607) | (66) | 11 | % | ||||||||||||||||||
Total revenues | 1,780 | 1,267 | 513 | 40 | % | ||||||||||||||||||
Total expenses | 1,294 | 1,413 | (119) | (8) | % | ||||||||||||||||||
Total other expenses, net | (334) | (97) | (237) | 244 | % | ||||||||||||||||||
Income (loss) before income tax expense (benefit) | 152 | (243) | 395 | (163) | % | ||||||||||||||||||
Less: Income tax expense (benefit) | 36 | (52) | 88 | (169) | % | ||||||||||||||||||
Net income (loss) | 116 | (191) | 307 | (161) | % | ||||||||||||||||||
Less: Net income (loss) attributable to non-controlling interests | 2 | (2) | 4 | (200) | % | ||||||||||||||||||
Net income (loss) attributable to Mr. Cooper | $ | 114 | $ | (189) | $ | 303 | (160) | % |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | $ Change | % Change | |||||||||||
Income tax benefit | $ | (68 | ) | $ | (47 | ) | $ | (21 | ) | 45 | % | |||
Effective tax rate(1) | 28.4 | % | 20.3 | % |
Segment Results |
Three Months Ended March 31, 2020 | |||||||||||||||||||||||||||
Servicing | Originations | Xome | Elimination | Total Operating Segments | Corporate/Other | Consolidated | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Service related, net | $ | (180 | ) | $ | 20 | $ | 106 | $ | (1 | ) | $ | (55 | ) | $ | 2 | $ | (53 | ) | |||||||||
Net gain on mortgage loans held for sale | 34 | 297 | — | — | 331 | — | 331 | ||||||||||||||||||||
Total revenues | (146 | ) | 317 | 106 | (1 | ) | 276 | 2 | 278 | ||||||||||||||||||
Total expenses | 149 | 166 | 96 | (1 | ) | 410 | 34 | 444 | |||||||||||||||||||
Other income (expenses), net: | |||||||||||||||||||||||||||
Interest income | 83 | 34 | — | — | 117 | 1 | 118 | ||||||||||||||||||||
Interest expense | (113 | ) | (27 | ) | — | — | (140 | ) | (52 | ) | (192 | ) | |||||||||||||||
Other income (expenses), net | — | — | 1 | — | 1 | — | 1 | ||||||||||||||||||||
Total other income (expenses), net | (30 | ) | 7 | 1 | — | (22 | ) | (51 | ) | (73 | ) | ||||||||||||||||
(Loss) income before income tax (benefit) expense | $ | (325 | ) | $ | 158 | $ | 11 | $ | — | $ | (156 | ) | $ | (83 | ) | $ | (239 | ) |
Three Months Ended March 31, 2019 | |||||||||||||||||||||||||||
Servicing | Originations | Xome | Elimination | Total Operating Segments | Corporate/Other | Consolidated | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Service related, net | $ | (27 | ) | $ | 15 | $ | 96 | $ | — | $ | 84 | $ | — | $ | 84 | ||||||||||||
Net gain on mortgage loans held for sale | 35 | 131 | — | — | 166 | — | 166 | ||||||||||||||||||||
Total revenues | 8 | 146 | 96 | — | 250 | — | 250 | ||||||||||||||||||||
Total expenses | 195 | 104 | 99 | — | 398 | 45 | 443 | ||||||||||||||||||||
Other income (expenses), net: | |||||||||||||||||||||||||||
Interest income | 115 | 17 | — | — | 132 | 2 | 134 | ||||||||||||||||||||
Interest expense | (114 | ) | (18 | ) | — | — | (132 | ) | (57 | ) | (189 | ) | |||||||||||||||
Other income, net | — | 4 | 11 | — | 15 | — | 15 | ||||||||||||||||||||
Total other income (expenses), net | 1 | 3 | 11 | — | 15 | (55 | ) | (40 | ) | ||||||||||||||||||
(Loss) income before income tax (benefit) expense | $ | (186 | ) | $ | 45 | $ | 8 | $ | — | $ | (133 | ) | $ | (100 | ) | $ | (233 | ) |
Servicing Segment |
Table |
Fitch(1) | Moody’s(2) | S&P(3) | |||||||||||||||
Rating date | January 2020 | September 2020 | May 2019 | ||||||||||||||
Residential | |||||||||||||||||
Special Servicer | RSS2- | Not Rated | Above Average | ||||||||||||||
RPS2- | Not Rated | Above Average | |||||||||||||||
Table |
Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Operational | $ | 273 | $ | 319 | $ | (46) | (14) | % | |||||||||||||||
Amortization, net of accretion | (112) | (73) | (39) | 53 | % | ||||||||||||||||||
Mark-to-market | (29) | (83) | 54 | (65) | % | ||||||||||||||||||
Total revenues | 132 | 163 | (31) | (19) | % | ||||||||||||||||||
Total expenses | 99 | 171 | (72) | (42) | % | ||||||||||||||||||
Total other (expenses) income, net | (65) | 17 | (82) | (482) | % | ||||||||||||||||||
(Loss) income before income tax (benefit) expense | $ | (32) | $ | 9 | $ | (41) | (456) | % |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | $ Change | % Change | |||||||||||
Revenues | ||||||||||||||
Operational | $ | 313 | $ | 324 | $ | (11 | ) | (3 | )% | |||||
Amortization, net of accretion | (76 | ) | (23 | ) | (53 | ) | 230 | % | ||||||
Mark-to-market | (383 | ) | (293 | ) | (90 | ) | 31 | % | ||||||
Total revenues | (146 | ) | 8 | (154 | ) | (1,925 | )% | |||||||
Total expenses | 149 | 195 | (46 | ) | (24 | )% | ||||||||
Total other income (expenses), net | (30 | ) | 1 | (31 | ) | (3,100 | )% | |||||||
Loss before income tax benefit | $ | (325 | ) | $ | (186 | ) | $ | (139 | ) | 75 | % |
Table 3.1 Servicing Segment Results of Operations |
Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Operational | $ | 880 | $ | 957 | $ | (77) | (8) | % | |||||||||||||||
Amortization, net of accretion | (290) | (152) | (138) | 91 | % | ||||||||||||||||||
Mark-to-market | (673) | (607) | (66) | 11 | % | ||||||||||||||||||
Total revenues | (83) | 198 | (281) | (142) | % | ||||||||||||||||||
Total expenses | 370 | 555 | (185) | (33) | % | ||||||||||||||||||
Total other (expenses) income, net | (155) | 45 | (200) | (444) | % | ||||||||||||||||||
Loss before income tax benefit | $ | (608) | $ | (312) | $ | (296) | 95 | % |
Table |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Average UPB | |||||||||||||||||||||||
Forward MSRs | $ | 277,707 | $ | 315,897 | $ | 290,199 | $ | 313,405 | |||||||||||||||
Subservicing and other(1) | 293,014 | 297,081 | 301,752 | 278,158 | |||||||||||||||||||
Reverse loans | 20,260 | 24,301 | 21,126 | 25,933 | |||||||||||||||||||
Total average UPB | $ | 590,981 | $ | 637,279 | $ | 613,077 | $ | 617,496 | |||||||||||||||
September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
Ending UPB | |||||||||||||||||||||||
Forward MSRs | |||||||||||||||||||||||
Agency | $ | 220,139 | $ | 247,821 | |||||||||||||||||||
Non-agency | 46,528 | 58,860 | |||||||||||||||||||||
Total forward MSRs | 266,667 | 306,681 | |||||||||||||||||||||
Subservicing and other(1) | |||||||||||||||||||||||
Agency | 285,704 | 294,783 | |||||||||||||||||||||
Non-agency | 15,151 | 15,748 | |||||||||||||||||||||
Total subservicing and other | 300,855 | 310,531 | |||||||||||||||||||||
Reverse loans | |||||||||||||||||||||||
MSR | 2,079 | 2,761 | |||||||||||||||||||||
MSL | 12,485 | 14,641 | |||||||||||||||||||||
Securitized loans | 5,442 | 6,588 | |||||||||||||||||||||
Total reverse portfolio serviced | 20,006 | 23,990 | |||||||||||||||||||||
Total ending UPB | $ | 587,528 | $ | 641,202 |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | ||||||
Average UPB | |||||||
Forward MSRs | $ | 303,578 | $ | 308,984 | |||
Subservicing and other(1) | 310,160 | 239,468 | |||||
Reverse loans | 22,059 | 27,472 | |||||
Total average UPB | $ | 635,797 | $ | 575,924 | |||
March 31, 2020 | March 31, 2019 | ||||||
Ending UPB | |||||||
Forward MSRs | |||||||
Agency | $ | 238,956 | $ | 238,937 | |||
Non-agency | 51,678 | 64,755 | |||||
Total forward MSRs | 290,634 | 303,692 | |||||
Subservicing and other(1) | |||||||
Agency | 302,060 | 273,786 | |||||
Non-agency | 14,873 | 27,405 | |||||
Total subservicing and other | 316,933 | 301,191 | |||||
Reverse loans | |||||||
MSR | 2,332 | 3,559 | |||||
MSL | 13,360 | 15,928 | |||||
Securitized loans | 5,898 | 7,527 | |||||
Total reverse portfolio serviced | 21,590 | 27,014 | |||||
Total ending UPB | $ | 629,157 | $ | 631,897 |
Table |
Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||
Forward MSR | Subservicing and Other | Total | Forward MSR | Subservicing and Other | Total | ||||||||||||||||||||||||||||||
Balance - beginning of period | $ | 277,975 | $ | 296,792 | $ | 574,767 | $ | 316,012 | $ | 302,108 | $ | 618,120 | |||||||||||||||||||||||
Additions: | |||||||||||||||||||||||||||||||||||
Originations | 14,517 | 1,232 | 15,749 | 11,397 | 410 | 11,807 | |||||||||||||||||||||||||||||
Acquisitions / Increase in subservicing(1) | (2,660) | 38,082 | 35,422 | 333 | 33,273 | 33,606 | |||||||||||||||||||||||||||||
Deductions: | |||||||||||||||||||||||||||||||||||
Dispositions | (23) | (3,046) | (3,069) | (2,707) | (9,399) | (12,106) | |||||||||||||||||||||||||||||
Principal reductions and other | (2,683) | (2,659) | (5,342) | (3,029) | (2,597) | (5,626) | |||||||||||||||||||||||||||||
Voluntary reductions(2) | (20,215) | (29,506) | (49,721) | (14,515) | (13,030) | (27,545) | |||||||||||||||||||||||||||||
Involuntary reductions(3) | (177) | (40) | (217) | (740) | (234) | (974) | |||||||||||||||||||||||||||||
Net changes in loans serviced by others | (67) | — | (67) | (70) | — | (70) | |||||||||||||||||||||||||||||
Balance - end of period | $ | 266,667 | $ | 300,855 | $ | 567,522 | $ | 306,681 | $ | 310,531 | $ | 617,212 |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | ||||||||||||||||||||||
Forward MSR | Subservicing and Other | Total | Forward MSR | Subservicing and Other | Total | ||||||||||||||||||
Balance - beginning of period | $ | 296,782 | $ | 323,983 | $ | 620,765 | $ | 295,481 | $ | 223,886 | $ | 519,367 | |||||||||||
Additions: | |||||||||||||||||||||||
Originations | 11,635 | 662 | 12,297 | 4,891 | 404 | 5,295 | |||||||||||||||||
Acquisitions / Increase in subservicing | (673 | ) | 23,352 | 22,679 | 13,404 | 84,406 | 97,810 | ||||||||||||||||
Deductions: | |||||||||||||||||||||||
Dispositions | (40 | ) | (10,359 | ) | (10,399 | ) | (133 | ) | (1,118 | ) | (1,251 | ) | |||||||||||
Principal reductions and other | (2,748 | ) | (2,965 | ) | (5,713 | ) | (2,827 | ) | (2,317 | ) | (5,144 | ) | |||||||||||
Voluntary reductions(1) | (13,864 | ) | (17,672 | ) | (31,536 | ) | (6,297 | ) | (3,975 | ) | (10,272 | ) | |||||||||||
Involuntary reductions(2) | (387 | ) | (68 | ) | (455 | ) | (762 | ) | (95 | ) | (857 | ) | |||||||||||
Net changes in loans serviced by others | (71 | ) | — | (71 | ) | (65 | ) | — | (65 | ) | |||||||||||||
Balance - end of period | $ | 290,634 | $ | 316,933 | $ | 607,567 | $ | 303,692 | $ | 301,191 | $ | 604,883 |
Table 5.1 Forward Servicing and Subservicing and Other Portfolio UPB Rollforward |
Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||
Forward MSR | Subservicing and Other | Total | Forward MSR | Subservicing and Other | Total | ||||||||||||||||||||||||||||||
Balance - beginning of period | $ | 296,782 | $ | 323,983 | $ | 620,765 | $ | 295,481 | $ | 223,886 | $ | 519,367 | |||||||||||||||||||||||
Additions: | |||||||||||||||||||||||||||||||||||
Originations | 35,630 | 2,918 | 38,548 | 25,809 | 1,213 | 27,022 | |||||||||||||||||||||||||||||
Acquisitions / Increase in subservicing(1) | (4,967) | 78,342 | 73,375 | 33,810 | 130,394 | 164,204 | |||||||||||||||||||||||||||||
Deductions: | |||||||||||||||||||||||||||||||||||
Dispositions | (94) | (23,156) | (23,250) | (5,079) | (11,192) | (16,271) | |||||||||||||||||||||||||||||
Principal reductions and other | (8,109) | (7,792) | (15,901) | (8,887) | (7,583) | (16,470) | |||||||||||||||||||||||||||||
Voluntary reductions(2) | (51,514) | (73,291) | (124,805) | (31,925) | (25,670) | (57,595) | |||||||||||||||||||||||||||||
Involuntary reductions(3) | (815) | (149) | (964) | (2,309) | (517) | (2,826) | |||||||||||||||||||||||||||||
Net changes in loans serviced by others | (246) | — | (246) | (219) | — | (219) | |||||||||||||||||||||||||||||
Balance - end of period | $ | 266,667 | $ | 300,855 | $ | 567,522 | $ | 306,681 | $ | 310,531 | $ | 617,212 |
Table |
September 30, 2020 | September 30, 2019 | |||||||||||||||||||||||||
Loan count(2) | 3,283,769 | 3,601,322 | ||||||||||||||||||||||||
Average loan amount(3) | $ | 172,828 | $ | 171,389 | ||||||||||||||||||||||
Average coupon - credit sensitive(4) | 4.6 | % | 4.8 | % | ||||||||||||||||||||||
Average coupon - interest sensitive(4) | 4.1 | % | 4.2 | % | ||||||||||||||||||||||
Average coupon - agency(4) | 4.3 | % | 4.5 | % | ||||||||||||||||||||||
Average coupon - non-agency(4) | 4.6 | % | 4.8 | % | ||||||||||||||||||||||
60+ delinquent (% of loans)(5) | 5.9 | % | 2.2 | % | ||||||||||||||||||||||
90+ delinquent (% of loans)(5) | 5.1 | % | 1.9 | % | ||||||||||||||||||||||
120+ delinquent (% of loans)(5) | 4.3 | % | 1.6 | % | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Total prepayment speed (12-month constant prepayment rate) | 30.1 | % | 17.5 | % | 25.0 | % | 13.2 | % |
March 31, 2020 | March 31, 2019 | ||||||
Loan count | 3,506,998 | 3,616,323 | |||||
Average loan amount(2) | $ | 173,231 | $ | 167,266 | |||
Average coupon - credit sensitive(3) | 4.7 | % | 4.9 | % | |||
Average coupon - interest sensitive(3) | 4.3 | % | 4.3 | % | |||
Average coupon - agency(3) | 4.4 | % | 4.4 | % | |||
Average coupon - non-agency(3) | 4.7 | % | 4.8 | % | |||
60+ delinquent (% of loans)(4) | 1.9 | % | 2.4 | % | |||
90+ delinquent (% of loans)(4) | 1.6 | % | 2.1 | % | |||
120+ delinquent (% of loans)(4) | 1.4 | % | 1.9 | % | |||
Total prepayment speed (12-month constant prepayment rate) | 19.2 | % | 8.2 | % |
Table |
Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | Amount Change | % Change | ||||||||||||||||||||
Modifications | 3,242 | 5,061 | (1,819) | (36) | % | ||||||||||||||||||
Workouts(1) | 20,483 | 3,731 | 16,752 | 449 | % | ||||||||||||||||||
Total modifications and workout units | 23,725 | 8,792 | 14,933 | 170 | % |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | Amount Change | % Change | ||||||||
Modifications | 4,715 | 5,189 | (474 | ) | (9 | )% | |||||
Workouts | 3,994 | 4,401 | (407 | ) | (9 | )% | |||||
Total modifications and workout units | 8,709 | 9,590 | (881 | ) | (9 | )% |
Table 7.1 Forward Loan Modifications and Workout Units |
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||
2020 | 2019 | Amount Change | % Change | ||||||||||||||||||||
Modifications | 12,286 | 15,882 | (3,596) | (23) | % | ||||||||||||||||||
Workouts(1) | 25,849 | 15,132 | 10,717 | 71 | % | ||||||||||||||||||
Total modifications and workout units | 38,135 | 31,014 | 7,121 | 23 | % |
Table |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | ||||||||||||||||||||||||||||||||||||||||
Forward MSR Operational Revenue | |||||||||||||||||||||||||||||||||||||||||||||||
Base servicing fees | $ | 231 | 16 | $ | 252 | 16 | $ | (21) | — | (8) | % | — | % | ||||||||||||||||||||||||||||||||||
Modification fees(2) | 3 | — | 4 | — | (1) | — | (25) | % | — | % | |||||||||||||||||||||||||||||||||||||
Incentive fees(2) | — | — | 6 | — | (6) | — | (100) | % | — | % | |||||||||||||||||||||||||||||||||||||
Late payment fees(2) | 15 | 1 | 23 | 2 | (8) | (1) | (35) | % | (50) | % | |||||||||||||||||||||||||||||||||||||
Other ancillary revenues(2) | 51 | 3 | 48 | 3 | 3 | — | 6 | % | — | % | |||||||||||||||||||||||||||||||||||||
Total forward MSR operational revenue | 300 | 20 | 333 | 21 | (33) | (1) | (10) | % | (5) | % | |||||||||||||||||||||||||||||||||||||
Base subservicing fees and other subservicing revenue(2) | 71 | 5 | 65 | 4 | 6 | 1 | 9 | % | 25 | % | |||||||||||||||||||||||||||||||||||||
Reverse servicing fees | 6 | 1 | 7 | — | (1) | 1 | (14) | % | 100 | % | |||||||||||||||||||||||||||||||||||||
Total servicing fee revenue | 377 | 26 | 405 | 25 | (28) | 1 | (7) | % | 4 | % | |||||||||||||||||||||||||||||||||||||
MSR financing liability costs | (8) | (1) | (9) | — | 1 | (1) | (11) | % | (100) | % | |||||||||||||||||||||||||||||||||||||
Excess spread costs - principal | (96) | (6) | (77) | (5) | (19) | (1) | 25 | % | 20 | % | |||||||||||||||||||||||||||||||||||||
Total operational revenue | 273 | 19 | 319 | 20 | (46) | (1) | (14) | % | (5) | % | |||||||||||||||||||||||||||||||||||||
Amortization, net of accretion | |||||||||||||||||||||||||||||||||||||||||||||||
Forward MSR amortization | (212) | (14) | (162) | (10) | (50) | (4) | 31 | % | 40 | % | |||||||||||||||||||||||||||||||||||||
Excess spread accretion | 96 | 6 | 77 | 5 | 19 | 1 | 25 | % | 20 | % | |||||||||||||||||||||||||||||||||||||
Reverse MSL accretion | 4 | — | 10 | — | (6) | — | (60) | % | — | % | |||||||||||||||||||||||||||||||||||||
Reverse MSR amortization | — | — | 2 | — | (2) | — | (100) | % | — | % | |||||||||||||||||||||||||||||||||||||
Total amortization, net of accretion | (112) | (8) | (73) | (5) | (39) | (3) | 53 | % | 60 | % | |||||||||||||||||||||||||||||||||||||
Mark-to-Market Adjustments | |||||||||||||||||||||||||||||||||||||||||||||||
MSR MTM(3) | (63) | (4) | (195) | (12) | 132 | 8 | (68) | % | (67) | % | |||||||||||||||||||||||||||||||||||||
Excess spread / financing MTM | 34 | 2 | 112 | 7 | (78) | (5) | (70) | % | (71) | % | |||||||||||||||||||||||||||||||||||||
Total MTM adjustments | (29) | (2) | (83) | (5) | 54 | 3 | (65) | % | (60) | % | |||||||||||||||||||||||||||||||||||||
Total revenues - Servicing | $ | 132 | 9 | $ | 163 | 10 | $ | (31) | (1) | (19) | % | (10) | % |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | $ Change | % Change | ||||||||||||||||||||
Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | ||||||||||||||||
Forward MSR Operational Revenue | |||||||||||||||||||||||
Base servicing fees | $ | 250 | 16 | $ | 240 | 17 | $ | 10 | (1) | 4 | % | (6 | )% | ||||||||||
Modification fees(2) | 3 | — | 3 | — | — | — | — | % | — | % | |||||||||||||
Incentive fees(2) | 4 | — | 1 | — | 3 | — | 300 | % | — | % | |||||||||||||
Late payment fees(2) | 23 | 2 | 19 | 2 | 4 | — | 21 | % | — | % | |||||||||||||
Other ancillary revenues(2) | 38 | 2 | 48 | 3 | (10 | ) | (1) | (21 | )% | (33 | )% | ||||||||||||
Total forward MSR operational revenue | 318 | 20 | 311 | 22 | 7 | (2) | 2 | % | (9 | )% | |||||||||||||
Base subservicing fees and other subservicing revenue(3) | 65 | 4 | 52 | 4 | 13 | — | 25 | % | — | % | |||||||||||||
Reverse servicing fees | 6 | — | 9 | — | (3 | ) | — | (33 | )% | — | % | ||||||||||||
Total servicing fee revenue | 389 | 24 | 372 | 26 | 17 | (2) | 5 | % | (8 | )% | |||||||||||||
MSR financing liability costs | (8 | ) | — | (12 | ) | (1) | 4 | 1 | (33 | )% | 100 | % | |||||||||||
Excess spread costs - principal | (68 | ) | (4) | (36 | ) | (2) | (32 | ) | (2) | 89 | % | 100 | % | ||||||||||
Total operational revenue | 313 | 20 | 324 | 23 | (11 | ) | (3) | (3 | )% | (13 | )% | ||||||||||||
Amortization, net of accretion | |||||||||||||||||||||||
Forward MSR amortization | (152 | ) | (10) | (79 | ) | (6) | (73 | ) | (4) | 92 | % | 67 | % | ||||||||||
Excess spread accretion | 68 | 4 | 36 | 3 | 32 | 1 | 89 | % | 33 | % | |||||||||||||
Reverse MSL accretion | 8 | 1 | 18 | 1 | (10 | ) | — | (56 | )% | — | % | ||||||||||||
Reverse MSR amortization | — | — | 2 | — | (2 | ) | — | (100 | )% | — | % | ||||||||||||
Total amortization, net of accretion | (76 | ) | (5) | (23 | ) | (2) | (53 | ) | (3) | 230 | % | 150 | % | ||||||||||
Mark-to-Market Adjustments | |||||||||||||||||||||||
MSR MTM(3) | (412 | ) | (26) | (360 | ) | (25) | (52 | ) | (1) | 14 | % | 4 | % | ||||||||||
Excess spread / financing MTM | 29 | 2 | 67 | 5 | (38 | ) | (3) | (57 | )% | (60 | )% | ||||||||||||
Total MTM adjustments | (383 | ) | (24) | (293 | ) | (20) | (90 | ) | (4) | 31 | % | 20 | % | ||||||||||
Total revenues - Servicing | $ | (146 | ) | (9) | $ | 8 | 1 | $ | (154 | ) | (10) | (1,925 | )% | (1,000 | )% |
Table 8.1 Servicing - Revenues |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | ||||||||||||||||||||||||||||||||||||||||
Forward MSR Operational Revenue | |||||||||||||||||||||||||||||||||||||||||||||||
Base servicing fees | $ | 720 | 16 | $ | 749 | 16 | $ | (29) | — | (4) | % | — | % | ||||||||||||||||||||||||||||||||||
Modification fees(2) | 8 | — | 13 | — | (5) | — | (38) | % | — | % | |||||||||||||||||||||||||||||||||||||
Incentive fees(2) | 9 | — | 8 | — | 1 | — | 13 | % | — | % | |||||||||||||||||||||||||||||||||||||
Late payment fees(2) | 54 | 1 | 62 | 2 | (8) | (1) | (13) | % | (50) | % | |||||||||||||||||||||||||||||||||||||
Other ancillary revenues(2) | 133 | 3 | 126 | 3 | 7 | — | 6 | % | — | % | |||||||||||||||||||||||||||||||||||||
Total forward MSR operational revenue | 924 | 20 | 958 | 21 | (34) | (1) | (4) | % | (5) | % | |||||||||||||||||||||||||||||||||||||
Base subservicing fees and other subservicing revenue(2) | 205 | 5 | 179 | 4 | 26 | 1 | 15 | % | 25 | % | |||||||||||||||||||||||||||||||||||||
Reverse servicing fees | 19 | — | 24 | — | (5) | — | (21) | % | — | % | |||||||||||||||||||||||||||||||||||||
Total servicing fee revenue | 1,148 | 25 | 1,161 | 25 | (13) | — | (1) | % | — | % | |||||||||||||||||||||||||||||||||||||
MSR financing liability costs | (25) | (1) | (32) | (1) | 7 | — | (22) | % | — | % | |||||||||||||||||||||||||||||||||||||
Excess spread costs - principal | (243) | (5) | (172) | (4) | (71) | (1) | 41 | % | 25 | % | |||||||||||||||||||||||||||||||||||||
Total operational revenue | 880 | 19 | 957 | 20 | (77) | (1) | (8) | % | (5) | % | |||||||||||||||||||||||||||||||||||||
Amortization, net of accretion | |||||||||||||||||||||||||||||||||||||||||||||||
Forward MSR amortization | (550) | (12) | (366) | (8) | (184) | (4) | 50 | % | 50 | % | |||||||||||||||||||||||||||||||||||||
Excess spread accretion | 243 | 5 | 172 | 4 | 71 | 1 | 41 | % | 25 | % | |||||||||||||||||||||||||||||||||||||
Reverse MSL accretion | 17 | 1 | 39 | 1 | (22) | — | (56) | % | — | % | |||||||||||||||||||||||||||||||||||||
Reverse MSR amortization | — | — | 3 | — | (3) | — | (100) | % | — | % | |||||||||||||||||||||||||||||||||||||
Total amortization, net of accretion | (290) | (6) | (152) | (3) | (138) | (3) | 91 | % | 100 | % | |||||||||||||||||||||||||||||||||||||
Mark-to-Market Adjustments | |||||||||||||||||||||||||||||||||||||||||||||||
MSR MTM(3) | (796) | (17) | (782) | (17) | (14) | — | 2 | % | — | % | |||||||||||||||||||||||||||||||||||||
Excess spread / financing MTM | 123 | 2 | 175 | 4 | (52) | (2) | (30) | % | (50) | % | |||||||||||||||||||||||||||||||||||||
Total MTM adjustments | (673) | (15) | (607) | (13) | (66) | (2) | 11 | % | 15 | % | |||||||||||||||||||||||||||||||||||||
Total revenues - Servicing | $ | (83) | (2) | $ | 198 | 4 | $ | (281) | (6) | (142) | % | (150) | % |
Table |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | ||||||||||||||||||||||||||||||||||||||||
Salaries, wages and benefits | $ | 77 | 5 | $ | 85 | 5 | $ | (8) | — | (9) | % | — | % | ||||||||||||||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||||||||||||||||||||||||||
Servicing support fees | 28 | 2 | 30 | 2 | (2) | — | (7) | % | — | % | |||||||||||||||||||||||||||||||||||||
Corporate and other general and administrative expenses | 33 | 2 | 40 | 3 | (7) | (1) | (18) | % | (33) | % | |||||||||||||||||||||||||||||||||||||
Foreclosure and other liquidation related (recoveries) expenses, net | (45) | (3) | 11 | 1 | (56) | (4) | (509) | % | (400) | % | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 6 | 1 | 5 | — | 1 | 1 | 20 | % | 100 | % | |||||||||||||||||||||||||||||||||||||
Total general and administrative expenses | 22 | 2 | 86 | 6 | (64) | (4) | (74) | % | (67) | % | |||||||||||||||||||||||||||||||||||||
Total expenses - Servicing | $ | 99 | 7 | $ | 171 | 11 | $ | (72) | (4) | (42) | % | (36) | % |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | Change | % Change | ||||||||||||||||||||
Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | ||||||||||||||||
Salaries, wages and benefits | $ | 86 | 5 | $ | 86 | 6 | $ | — | (1) | — | % | (17 | )% | ||||||||||
General and administrative | |||||||||||||||||||||||
Servicing support fees | 25 | 2 | 39 | 3 | (14 | ) | (1) | (36 | )% | (33 | )% | ||||||||||||
Corporate and other general and administrative expenses | 35 | 2 | 39 | 3 | (4 | ) | (1) | (10 | )% | (33 | )% | ||||||||||||
Foreclosure and other liquidation related expenses | — | — | 27 | 2 | (27 | ) | (2) | (100 | )% | (100 | )% | ||||||||||||
Depreciation and amortization | 3 | — | 4 | — | (1 | ) | — | (25 | )% | — | % | ||||||||||||
Total general and administrative expenses | 63 | 4 | 109 | 8 | (46 | ) | (4) | (42 | )% | (50 | )% | ||||||||||||
Total expenses - Servicing | $ | 149 | 9 | $ | 195 | 14 | $ | (46 | ) | (5) | (24 | )% | (36 | )% |
Table 9.1 Servicing - Expenses |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | ||||||||||||||||||||||||||||||||||||||||
Salaries, wages and benefits | $ | 238 | 5 | $ | 261 | 6 | $ | (23) | (1) | (9) | % | (17) | % | ||||||||||||||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||||||||||||||||||||||||||
Servicing support fees | 80 | 2 | 93 | 2 | (13) | — | (14) | % | — | % | |||||||||||||||||||||||||||||||||||||
Corporate and other general and administrative expenses | 100 | 2 | 118 | 3 | (18) | (1) | (15) | % | (33) | % | |||||||||||||||||||||||||||||||||||||
Foreclosure and other liquidation related (recoveries) expenses, net | (62) | (1) | 70 | 1 | (132) | (2) | (189) | % | (200) | % | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 14 | — | 13 | — | 1 | — | 8 | % | — | % | |||||||||||||||||||||||||||||||||||||
Total general and administrative expenses | 132 | 3 | 294 | 6 | (162) | (3) | (55) | % | (50) | % | |||||||||||||||||||||||||||||||||||||
Total expenses - Servicing | $ | 370 | 8 | $ | 555 | 12 | $ | (185) | (4) | (33) | % | (33) | % |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | Change | % Change | ||||||||||||||||||||
Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | ||||||||||||||||
Income earned on Reverse mortgage interest | $ | 43 | 3 | $ | 82 | 6 | $ | (39 | ) | (3) | (48 | )% | (50 | )% | |||||||||
Other interest income | 40 | 2 | 33 | 2 | 7 | — | 21 | % | — | % | |||||||||||||
Interest income | 83 | 5 | 115 | 8 | (32 | ) | (3) | (28 | )% | (38 | )% | ||||||||||||
Reverse mortgage interest expense | (52 | ) | (3) | (71 | ) | (5) | 19 | 2 | (27 | )% | (40 | )% | |||||||||||
Advance interest expense | (5 | ) | — | (9 | ) | (1) | 4 | 1 | (44 | )% | 100 | % | |||||||||||
Other interest expense | (56 | ) | (4) | (34 | ) | (2) | (22 | ) | (2) | 65 | % | 100 | % | ||||||||||
Interest expense | (113 | ) | (7) | (114 | ) | (8) | 1 | 1 | (1 | )% | (13 | )% | |||||||||||
Total other income (expenses), net - Servicing | $ | (30 | ) | (2) | $ | 1 | — | $ | (31 | ) | (2) | (3,100 | )% | (100 | )% | ||||||||
Weighted average cost - advance facilities | 3.0 | % | 4.7 | % | (1.7 | )% | (36 | )% | |||||||||||||||
Weighted average cost - excess spread financing | 9.0 | % | 9.0 | % | — | % | — | % |
Table 10. Servicing - Other (Expenses) Income, Net |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | ||||||||||||||||||||||||||||||||||||||||
Income earned on Reverse mortgage interest | $ | 40 | 3 | $ | 81 | 5 | $ | (41) | (2) | (51) | % | (40) | % | ||||||||||||||||||||||||||||||||||
Other interest income | — | — | 56 | 4 | (56) | (4) | (100) | % | (100) | % | |||||||||||||||||||||||||||||||||||||
Interest income | 40 | 3 | 137 | 9 | (97) | (6) | (71) | % | (67) | % | |||||||||||||||||||||||||||||||||||||
Reverse mortgage interest expense | (37) | (3) | (58) | (4) | 21 | 1 | (36) | % | (25) | % | |||||||||||||||||||||||||||||||||||||
Advance interest expense | (7) | — | (6) | — | (1) | — | 17 | % | — | % | |||||||||||||||||||||||||||||||||||||
Other interest expense | (61) | (4) | (56) | (4) | (5) | — | 9 | % | — | % | |||||||||||||||||||||||||||||||||||||
Interest expense | (105) | (7) | (120) | (8) | 15 | 1 | (13) | % | (13) | % | |||||||||||||||||||||||||||||||||||||
Total other (expenses) income, net - Servicing | $ | (65) | (4) | $ | 17 | 1 | $ | (82) | (5) | (482) | % | (500) | % | ||||||||||||||||||||||||||||||||||
Weighted average cost - advance facilities | 3.0 | % | 3.8 | % | (0.8) | % | (21) | % | |||||||||||||||||||||||||||||||||||||||
Weighted average cost - excess spread financing | 9.0 | % | 8.9 | % | 0.1 | % | 1 | % |
Table 10.1 Servicing - Other (Expenses) Income, Net |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||||
Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | Amt | bps(1) | ||||||||||||||||||||||||||||||||||||||||
Income earned on Reverse mortgage interest | $ | 137 | 3 | $ | 249 | 5 | $ | (112) | (2) | (45) | % | (40) | % | ||||||||||||||||||||||||||||||||||
Other interest income | 43 | 1 | 139 | 3 | (96) | (2) | (69) | % | (67) | % | |||||||||||||||||||||||||||||||||||||
Interest income | 180 | 4 | 388 | 8 | (208) | (4) | (54) | % | (50) | % | |||||||||||||||||||||||||||||||||||||
Reverse mortgage interest expense | (140) | (3) | (175) | (4) | 35 | 1 | (20) | % | (25) | % | |||||||||||||||||||||||||||||||||||||
Advance interest expense | (20) | — | (23) | — | 3 | — | (13) | % | — | % | |||||||||||||||||||||||||||||||||||||
Other interest expense | (175) | (4) | (145) | (3) | (30) | (1) | 21 | % | 33 | % | |||||||||||||||||||||||||||||||||||||
Interest expense | (335) | (7) | (343) | (7) | 8 | — | (2) | % | — | % | |||||||||||||||||||||||||||||||||||||
Total other (expenses) income, net - Servicing | $ | (155) | (3) | $ | 45 | 1 | $ | (200) | (4) | (444) | % | (400) | % | ||||||||||||||||||||||||||||||||||
Weighted average cost - advance facilities | 3.0 | % | 4.0 | % | (1.0) | % | (25) | % | |||||||||||||||||||||||||||||||||||||||
Weighted average cost - excess spread financing | 9.0 | % | 8.9 | % | 0.1 | % | 1 | % |
Table |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
UPB | Carrying Amount | bps | UPB | Carrying Amount | bps | ||||||||||||||||||||||||||||||
Forward MSRs - acquisition pool: | |||||||||||||||||||||||||||||||||||
Credit sensitive | $ | 122,422 | $ | 1,206 | 99 | $ | 147,895 | $ | 1,613 | 109 | |||||||||||||||||||||||||
Interest sensitive | 144,245 | 1,457 | 101 | 148,887 | 1,883 | 126 | |||||||||||||||||||||||||||||
Total forward MSRs - fair value | $ | 266,667 | $ | 2,663 | 100 | $ | 296,782 | $ | 3,496 | 118 | |||||||||||||||||||||||||
Forward MSRs - investor pool: | |||||||||||||||||||||||||||||||||||
Agency | $ | 220,139 | $ | 2,234 | 102 | $ | 240,688 | $ | 2,944 | 122 | |||||||||||||||||||||||||
Non-agency | 46,528 | 429 | 92 | 56,094 | 552 | 98 | |||||||||||||||||||||||||||||
Total forward MSRs - fair value | $ | 266,667 | $ | 2,663 | 100 | $ | 296,782 | $ | 3,496 | 118 | |||||||||||||||||||||||||
Total forward MSRs | $ | 266,667 | $ | 2,663 | $ | 296,782 | $ | 3,496 | |||||||||||||||||||||||||||
Subservicing and other(1) | |||||||||||||||||||||||||||||||||||
Agency | 285,704 | N/A | 308,532 | N/A | |||||||||||||||||||||||||||||||
Non-agency | 15,151 | N/A | 15,451 | N/A | |||||||||||||||||||||||||||||||
Total subservicing and other | 300,855 | N/A | 323,983 | N/A | |||||||||||||||||||||||||||||||
Reverse portfolio - amortized cost | |||||||||||||||||||||||||||||||||||
MSR | 2,079 | 6 | 2,508 | 6 | |||||||||||||||||||||||||||||||
MSL | 12,485 | (44) | 13,994 | (61) | |||||||||||||||||||||||||||||||
Securitized loans | 5,442 | 5,460 | 6,223 | 6,279 | |||||||||||||||||||||||||||||||
Total reverse portfolio serviced | 20,006 | 5,422 | 22,725 | 6,224 | |||||||||||||||||||||||||||||||
Total servicing portfolio unpaid principal balance | $ | 587,528 | $ | 8,085 | $ | 643,490 | $ | 9,720 |
March 31, 2020 | December 31, 2019 | ||||||||||||||||||
UPB | Carrying Amount | bps | UPB | Carrying Amount | bps | ||||||||||||||
Forward MSRs - acquisition pool: | |||||||||||||||||||
Credit sensitive | $ | 138,726 | $ | 1,386 | 100 | $ | 147,895 | $ | 1,613 | 109 | |||||||||
Interest sensitive | 151,908 | 1,723 | 113 | 148,887 | 1,883 | 126 | |||||||||||||
Total forward MSRs - fair value | $ | 290,634 | $ | 3,109 | 107 | $ | 296,782 | $ | 3,496 | 118 | |||||||||
Forward MSRs - investor pool: | |||||||||||||||||||
Agency | $ | 238,956 | $ | 2,618 | 110 | $ | 240,688 | $ | 2,944 | 122 | |||||||||
Non-agency | 51,678 | 491 | 95 | 56,094 | 552 | 98 | |||||||||||||
Total forward MSRs - fair value | $ | 290,634 | $ | 3,109 | 107 | $ | 296,782 | $ | 3,496 | 118 | |||||||||
Total forward MSRs | $ | 290,634 | $ | 3,109 | $ | 296,782 | $ | 3,496 | |||||||||||
Subservicing and other(1) | |||||||||||||||||||
Agency | 302,060 | N/A | 308,532 | N/A | |||||||||||||||
Non-agency | 14,873 | N/A | 15,451 | N/A | |||||||||||||||
Total subservicing and other | 316,933 | N/A | 323,983 | N/A | |||||||||||||||
Reverse portfolio - amortized cost | |||||||||||||||||||
MSR | 2,332 | 6 | 2,508 | 6 | |||||||||||||||
MSL | 13,360 | (53 | ) | 13,994 | (61 | ) | |||||||||||||
Securitized loans | 5,898 | 5,955 | 6,223 | 6,279 | |||||||||||||||
Total reverse portfolio serviced | 21,590 | 5,908 | 22,725 | 6,224 | |||||||||||||||
Total servicing portfolio unpaid principal balance | $ | 629,157 | $ | 9,017 | $ | 643,490 | $ | 9,720 |
Table |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Fair value - beginning of period | $ | 2,757 | $ | 3,505 | $ | 3,496 | $ | 3,665 | |||||||||||||||
Additions: | |||||||||||||||||||||||
Servicing retained from mortgage loans sold | 163 | 129 | 412 | 298 | |||||||||||||||||||
Purchases of servicing rights | 6 | 43 | 30 | 732 | |||||||||||||||||||
Dispositions: | |||||||||||||||||||||||
Sales and cancellation of servicing assets | — | (24) | — | (317) | |||||||||||||||||||
Changes in fair value: | |||||||||||||||||||||||
Due to changes in valuation inputs or assumptions used in the valuation model: | |||||||||||||||||||||||
Credit sensitive | (41) | (72) | (262) | (228) | |||||||||||||||||||
Interest sensitive | (24) | (102) | (520) | (488) | |||||||||||||||||||
Other changes in fair value: | |||||||||||||||||||||||
Scheduled principal payments | (23) | (24) | (70) | (69) | |||||||||||||||||||
Disposition of negative MSRs and other(1) | 12 | 20 | 57 | 43 | |||||||||||||||||||
Prepayments | |||||||||||||||||||||||
Voluntary prepayments | |||||||||||||||||||||||
Credit sensitive | (31) | (27) | (81) | (72) | |||||||||||||||||||
Interest sensitive | (155) | (103) | (392) | (205) | |||||||||||||||||||
Involuntary prepayments | |||||||||||||||||||||||
Credit sensitive | — | (1) | (1) | (6) | |||||||||||||||||||
Interest sensitive | (1) | (5) | (6) | (14) | |||||||||||||||||||
Fair value - end of period | $ | 2,663 | $ | 3,339 | $ | 2,663 | $ | 3,339 |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | ||||||
Fair value - beginning of period | $ | 3,496 | $ | 3,665 | |||
Additions: | |||||||
Servicing retained from mortgage loans sold | 123 | 66 | |||||
Purchases of servicing rights | 24 | 409 | |||||
Dispositions: | |||||||
Sales and cancellation of servicing assets | — | (260 | ) | ||||
Changes in fair value: | |||||||
Due to changes in valuation inputs or assumptions used in the valuation model: | |||||||
Credit sensitive | (181 | ) | (121 | ) | |||
Interest sensitive | (220 | ) | (211 | ) | |||
Other changes in fair value: | |||||||
Scheduled principal payments | (23 | ) | (22 | ) | |||
Disposition of negative MSRs and other(1) | 20 | 12 | |||||
Prepayments | |||||||
Voluntary prepayments | |||||||
Credit sensitive | (24 | ) | (19 | ) | |||
Interest sensitive | (102 | ) | (32 | ) | |||
Involuntary prepayments | |||||||
Credit sensitive | (1 | ) | (2 | ) | |||
Interest sensitive | (3 | ) | (4 | ) | |||
Fair value - end of period | $ | 3,109 | $ | 3,481 |
Table |
September 30, 2020 | September 30, 2019 | ||||||||||
Total MSRs Portfolio | |||||||||||
Discount rate | 9.5 | % | 9.7 | % | |||||||
Prepayment speeds | 14.4 | % | 13.9 | % | |||||||
Average life | 5.2 years | 5.6 years | |||||||||
Acquisition Pools: | |||||||||||
Credit Sensitive | |||||||||||
Discount rate | 10.0 | % | 10.4 | % | |||||||
Prepayment speeds | 12.6 | % | 13.2 | % | |||||||
Average life | 5.6 years | 5.9 years | |||||||||
Interest Sensitive | |||||||||||
Discount rate | 9.0 | % | 9.0 | % | |||||||
Prepayment speeds | 15.9 | % | 14.6 | % | |||||||
Average life | 4.9 years | 5.4 years | |||||||||
Investor Pools: | |||||||||||
Agency | |||||||||||
Discount rate | 8.9 | % | 9.0 | % | |||||||
Prepayment speeds | 14.5 | % | 13.7 | % | |||||||
Average life | 5.1 years | 5.5 years | |||||||||
Non-Agency | |||||||||||
Discount rate | 12.0 | % | 12.6 | % | |||||||
Prepayment speeds | 13.9 | % | 14.3 | % | |||||||
Average life | 5.5 years | 6.0 years |
March 31, 2020 | March 31, 2019 | ||||
Total MSRs Portfolio | |||||
Discount rate | 9.7 | % | 10.3 | % | |
Prepayment speeds | 13.4 | % | 13.0 | % | |
Average life | 5.7 years | 6.0 years | |||
Acquisition Pools: | |||||
Credit Sensitive | |||||
Discount rate | 10.2 | % | 11.3 | % | |
Prepayment speeds | 13.0 | % | 13.5 | % | |
Average life | 5.9 years | 6.0 years | |||
Interest Sensitive | |||||
Discount rate | 9.1 | % | 9.4 | % | |
Prepayment speeds | 13.8 | % | 12.5 | % | |
Average life | 5.5 years | 6.1 years | |||
Investor Pools: | |||||
Agency | |||||
Discount rate | 9.0 | % | 9.4 | % | |
Prepayment speeds | 13.2 | % | 12.4 | % | |
Average life | 5.6 years | 6.1 years | |||
Non-Agency | |||||
Discount rate | 12.6 | % | 13.6 | % | |
Prepayment speeds | 14.3 | % | 15.4 | % | |
Average life | 6.1 years | 5.9 years |
Table |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Fair value - beginning of period | $ | 1,124 | $ | 1,429 | $ | 1,311 | $ | 1,184 | |||||||||||||||
Additions: | |||||||||||||||||||||||
New financings | — | 31 | 24 | 469 | |||||||||||||||||||
Deductions: | |||||||||||||||||||||||
Settlements and repayments | (49) | (63) | (159) | (182) | |||||||||||||||||||
Changes in fair value: | |||||||||||||||||||||||
Credit Sensitive | (14) | (59) | (38) | (74) | |||||||||||||||||||
Interest Sensitive | (17) | (57) | (94) | (116) | |||||||||||||||||||
Fair value - end of period | $ | 1,044 | $ | 1,281 | $ | 1,044 | $ | 1,281 | |||||||||||||||
Weighted-Average Key Assumptions | September 30, 2020 | September 30, 2019 | |||||||||||||||||||||
Total Excess Spread Portfolio | |||||||||||||||||||||||
Discount rate | 11.9 | % | 11.9 | % | |||||||||||||||||||
Prepayment speeds | 13.6 | % | 13.3 | % | |||||||||||||||||||
Recapture rate | 19.1 | % | 22.2 | % | |||||||||||||||||||
Average life | 5.3 years | 5.7 years | |||||||||||||||||||||
Credit Sensitive | |||||||||||||||||||||||
Discount rate | 12.6 | % | 12.5 | % | |||||||||||||||||||
Prepayment speeds | 13.0 | % | 12.9 | % | |||||||||||||||||||
Recapture rate | 20.6 | % | 23.6 | % | |||||||||||||||||||
Average life | 5.5 years | 5.8 years | |||||||||||||||||||||
Interest Sensitive | |||||||||||||||||||||||
Discount rate | 10.6 | % | 10.9 | % | |||||||||||||||||||
Prepayment speeds | 14.7 | % | 13.9 | % | |||||||||||||||||||
Recapture rate | 16.4 | % | 20.0 | % | |||||||||||||||||||
Average life | 5.1 years | 5.5 years |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | ||||||
Fair value - beginning of period | $ | 1,311 | $ | 1,184 | |||
Additions: | |||||||
New financings | 24 | 245 | |||||
Deductions: | |||||||
Settlements and repayments | (58 | ) | (51 | ) | |||
Changes in fair value: | |||||||
Credit Sensitive | (2 | ) | (32 | ) | |||
Interest Sensitive | (33 | ) | (37 | ) | |||
Fair value - end of period | $ | 1,242 | $ | 1,309 | |||
Key Weighted-Average Assumptions: | March 31, 2020 | March 31, 2019 | |||||
Total Excess Spread Portfolio | |||||||
Discount rate | 11.6 | % | 10.4 | % | |||
Prepayment speeds | 12.8 | % | 12.9 | % | |||
Recapture rate | 18.6 | % | 20.4 | % | |||
Average life | 5.7 years | 5.9 years | |||||
Credit Sensitive | |||||||
Discount rate | 12.3 | % | 10.9 | % | |||
Prepayment speeds | 12.3 | % | 13.2 | % | |||
Recapture rate | 18.4 | % | 21.7 | % | |||
Average life | 5.9 years | 5.9 years | |||||
Interest Sensitive | |||||||
Discount rate | 10.3 | % | 9.1 | % | |||
Prepayment speeds | 13.5 | % | 12.4 | % | |||
Recapture rate | 19.8 | % | 17.3 | % | |||
Average life | 5.5 years | 6.1 years |
Table |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Fair value - beginning of period | $ | 49 | $ | 43 | $ | 37 | $ | 32 | |||||||||||||||
Changes in fair value: | |||||||||||||||||||||||
Changes in valuation inputs or assumptions used in the valuation model | 3 | 9 | 21 | 28 | |||||||||||||||||||
Other changes in fair value | (5) | (5) | (11) | (13) | |||||||||||||||||||
Fair value - end of period | $ | 47 | $ | 47 | $ | 47 | $ | 47 | |||||||||||||||
September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
Weighted-Average Key Assumptions | |||||||||||||||||||||||
Advance financing and counterparty fee rates | 8.2 | % | 8.7 | % | |||||||||||||||||||
Annual advance recovery rates | 20.2 | % | 18.7 | % |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | ||||||
Fair value - beginning of period | $ | 37 | $ | 32 | |||
Changes in fair value: | |||||||
Changes in valuation inputs or assumptions used in the valuation model | 9 | 6 | |||||
Other changes in fair value | (3 | ) | (4 | ) | |||
Fair value - end of period | $ | 43 | $ | 34 | |||
March 31, 2020 | March 31, 2019 | ||||||
Weighted-Average Assumptions | |||||||
Advance financing rates | 1.7 | % | 3.9 | % | |||
Annual advance recovery rates | 18.4 | % | 19.3 | % |
Table |
September 30, 2020 | September 30, 2019 | ||||||||||
Owned forward servicing portfolio - unencumbered | $ | 85,937 | $ | 89,308 | |||||||
Owned forward servicing portfolio - encumbered | 180,730 | 217,373 | |||||||||
Subserviced forward servicing portfolio and other | 300,855 | 310,531 | |||||||||
Total unpaid principal balance | $ | 567,522 | $ | 617,212 |
March 31, 2020 | March 31, 2019 | ||||||
Owned forward servicing portfolio - unencumbered | $ | 85,124 | $ | 88,995 | |||
Owned forward servicing portfolio - encumbered | 205,510 | 214,697 | |||||
Subserviced forward servicing portfolio and other | 316,933 | 301,191 | |||||
Total unpaid principal balance | $ | 607,567 | $ | 604,883 |
Table |
September 30, 2020 | September 30, 2019 | ||||||||||
Loan count | 151,412 | 170,903 | |||||||||
Ending unpaid principal balance | $ | 20,006 | $ | 23,990 | |||||||
Average loan amount(1) | $ | 132,127 | $ | 140,374 | |||||||
Average coupon | 2.1 | % | 3.8 | % | |||||||
Average borrower age | 80.7 years | 80.1 years |
March 31, 2020 | March 31, 2019 | ||||||
Loan count | 158,838 | 184,807 | |||||
Ending unpaid principal balance | $ | 21,590 | $ | 27,014 | |||
Average loan amount(1) | $ | 135,924 | $ | 146,173 | |||
Average coupon | 3.3 | % | 4.4 | % | |||
Average borrower age | 81 | 80 |
Originations Segment |
Table |
Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Total revenues | $ | 632 | $ | 334 | $ | 298 | 89 | % | |||||||||||||||
Total expenses | 195 | 155 | 40 | 26 | % | ||||||||||||||||||
Total other income (expenses), net | 1 | (1) | 2 | (200) | % | ||||||||||||||||||
Income before income tax expense | $ | 438 | $ | 178 | $ | 260 | 146 | % | |||||||||||||||
Originations Margin | |||||||||||||||||||||||
Revenue | $ | 632 | $ | 334 | $ | 298 | 89 | % | |||||||||||||||
Pull through adjusted lock volume | $ | 19,794 | $ | 12,699 | $ | 7,095 | 56 | % | |||||||||||||||
Revenue as a percentage of pull through adjusted lock volume(1) | 3.19 | % | 2.63 | % | 0.56 | % | 21 | % | |||||||||||||||
Expenses(2) | $ | 194 | $ | 156 | $ | 40 | 26 | % | |||||||||||||||
Funded volume | $ | 15,598 | $ | 11,911 | $ | 3,687 | 31 | % | |||||||||||||||
Expenses as a percentage of funded volume(3) | 1.24 | % | 1.31 | % | (0.07) | % | (5) | % | |||||||||||||||
Originations Margin | 1.95 | % | 1.32 | % | 0.63 | % | 48 | % |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | $ Change | % Change | |||||||||||
Total revenues | $ | 317 | $ | 146 | $ | 171 | 117 | % | ||||||
Total expenses | 166 | 104 | 62 | 60 | % | |||||||||
Total other income (expenses), net | 7 | 3 | 4 | 133 | % | |||||||||
Income before income tax expense | $ | 158 | $ | 45 | $ | 113 | 251 | % | ||||||
Originations Margin | ||||||||||||||
Revenue | $ | 317 | $ | 146 | $ | 171 | 117 | % | ||||||
Pull through adjusted lock volume | $ | 12,677 | $ | 5,960 | $ | 6,717 | 113 | % | ||||||
Revenue as a percentage of pull through adjusted lock volume(1) | 2.50 | % | 2.45 | % | 0.05 | % | 2 | % | ||||||
Expenses | $ | 166 | $ | 104 | $ | 62 | 60 | % | ||||||
Funded volume | $ | 12,359 | $ | 5,716 | $ | 6,643 | 116 | % | ||||||
Expenses as a percentage of funded volume(2) | 1.34 | % | 1.82 | % | (0.48 | )% | (26 | )% | ||||||
Originations Margin | 1.16 | % | 0.63 | % | 0.53 | % | 84 | % |
Table 18.1 Originations Segment Results of Operations |
Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Total revenues | $ | 1,543 | $ | 744 | $ | 799 | 107 | % | |||||||||||||||
Total expenses | 528 | 404 | 124 | 31 | % | ||||||||||||||||||
Total other income, net | 14 | 1 | 13 | 1,300 | % | ||||||||||||||||||
Income before income tax expense | $ | 1,029 | $ | 341 | $ | 688 | 202 | % | |||||||||||||||
Originations Margin | |||||||||||||||||||||||
Revenue | $ | 1,543 | $ | 744 | $ | 799 | 107 | % | |||||||||||||||
Pull through adjusted lock volume | $ | 44,865 | $ | 29,856 | $ | 15,009 | 50 | % | |||||||||||||||
Revenue as a percentage of pull through adjusted lock volume(1) | 3.44 | % | 2.49 | % | 0.95 | % | 38 | % | |||||||||||||||
Expenses(2) | $ | 514 | $ | 403 | $ | 124 | 31 | % | |||||||||||||||
Funded volume | $ | 38,686 | $ | 27,623 | $ | 11,063 | 40 | % | |||||||||||||||
Expenses as a percentage of funded volume(3) | 1.33 | % | 1.46 | % | (0.13) | % | (9) | % | |||||||||||||||
Originations Margin | 2.11 | % | 1.03 | % | 1.08 | % | 105 | % |
Table |
Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Service related, net - Originations | $ | 27 | $ | 22 | $ | 5 | 23 | % | |||||||||||||||
Net gain on mortgage loans held for sale | |||||||||||||||||||||||
Net gain on loans originated and sold | 449 | 191 | 258 | 135 | % | ||||||||||||||||||
Capitalized servicing rights | 162 | 126 | 36 | 29 | % | ||||||||||||||||||
Provision for repurchase reserves, net of release | (6) | (5) | (1) | 20 | % | ||||||||||||||||||
Total net gain on mortgage loans held for sale | 605 | 312 | 293 | 94 | % | ||||||||||||||||||
Total revenues - Originations | $ | 632 | $ | 334 | $ | 298 | 89 | % | |||||||||||||||
Key Metrics | |||||||||||||||||||||||
Consumer direct lock pull through adjusted volume(1) | $ | 10,414 | $ | 5,488 | $ | 4,926 | 90 | % | |||||||||||||||
Other locked pull through adjusted volume(1) | 9,380 | 7,211 | 2,169 | 30 | % | ||||||||||||||||||
Total pull through adjusted volume | $ | 19,794 | $ | 12,699 | $ | 7,095 | 56 | % | |||||||||||||||
Funded volume | $ | 15,598 | $ | 11,911 | $ | 3,687 | 31 | % | |||||||||||||||
Volume of loans sold | $ | 15,206 | $ | 12,150 | $ | 3,056 | 25 | % | |||||||||||||||
Recapture percentage(2) | 24.9 | % | 24.6 | % | 0.3 | % | 1 | % | |||||||||||||||
Refinance recapture percentage(3) | 31.2 | % | 36.9 | % | (5.7) | % | (15) | % | |||||||||||||||
Purchase as a percentage of funded volume | 16.4 | % | 39.1 | % | (22.7) | % | (58) | % | |||||||||||||||
Value of capitalized servicing on retained settlements | 133 | bps | 154 | bps | (21) | bps | (14) | % |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | $ Change | % Change | |||||||||||
Service related, net - Originations | $ | 20 | $ | 15 | $ | 5 | 33 | % | ||||||
Net gain on mortgage loans held for sale | ||||||||||||||
Net gain on loans originated and sold | 183 | 72 | 111 | 154 | % | |||||||||
Capitalized servicing rights | 119 | 61 | 58 | 95 | % | |||||||||
Provision for repurchase reserves, net of release | (5 | ) | (2 | ) | (3 | ) | 150 | % | ||||||
Total net gain on mortgage loans held for sale | 297 | 131 | 166 | 127 | % | |||||||||
Total revenues - Originations | $ | 317 | $ | 146 | $ | 171 | 117 | % | ||||||
Key Metrics | ||||||||||||||
Consumer direct lock pull through adjusted volume(1) | $ | 7,423 | $ | 2,333 | $ | 5,090 | 218 | % | ||||||
Other locked pull through adjusted volume(1) | 5,254 | 3,627 | 1,627 | 45 | % | |||||||||
Total pull through adjusted volume | $ | 12,677 | $ | 5,960 | $ | 6,717 | 113 | % | ||||||
Funded volume | $ | 12,359 | $ | 5,716 | $ | 6,643 | 116 | % | ||||||
Volume of loans sold | $ | 13,255 | $ | 6,235 | $ | 7,020 | 113 | % | ||||||
Recapture percentage | 29.8 | % | 27.5 | % | 2.3 | % | 7 | % | ||||||
Purchase as a percentage of funded volume | 26.0 | % | 51.7 | % | (25.7 | )% | (50 | )% | ||||||
Value of capitalized servicing on retained settlements | 137 | bps | 141 | bps | (4) bps | (3 | )% |
Table 19.1 Originations - Revenues |
Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Service related, net - Originations | $ | 68 | $ | 57 | $ | 11 | 19 | % | |||||||||||||||
Net gain on mortgage loans held for sale | |||||||||||||||||||||||
Net gain on loans originated and sold | 1,085 | 415 | 670 | 161 | % | ||||||||||||||||||
Capitalized servicing rights | 404 | 287 | 117 | 41 | % | ||||||||||||||||||
Provision for repurchase reserves, net of release | (14) | (15) | 1 | (7) | % | ||||||||||||||||||
Total net gain on mortgage loans held for sale | 1,475 | 687 | 788 | 115 | % | ||||||||||||||||||
Total revenues - Originations | $ | 1,543 | $ | 744 | $ | 799 | 107 | % | |||||||||||||||
Key Metrics | |||||||||||||||||||||||
Consumer direct lock pull through adjusted volume(1) | $ | 27,432 | $ | 12,211 | $ | 15,221 | 125 | % | |||||||||||||||
Other locked pull through adjusted volume(1) | 17,433 | 17,645 | (212) | (1) | % | ||||||||||||||||||
Total pull through adjusted volume | $ | 44,865 | $ | 29,856 | $ | 15,009 | 50 | % | |||||||||||||||
Funded volume | $ | 38,686 | $ | 27,623 | $ | 11,063 | 40 | % | |||||||||||||||
Volume of loans sold | $ | 39,633 | $ | 27,474 | $ | 12,159 | 44 | % | |||||||||||||||
Recapture percentage(2) | 26.5 | % | 24.8 | % | 1.7 | % | 7 | % | |||||||||||||||
Refinance recapture percentage(3) | 32.4 | % | 41.2 | % | (8.8) | % | (21) | % | |||||||||||||||
Purchase as a percentage of funded volume | 17.8 | % | 46.7 | % | (28.9) | % | (62) | % | |||||||||||||||
Value of capitalized servicing on retained settlements | 134 | bps | 149 | bps | (15) | bps | (10) | % |
Table |
Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Salaries, wages and benefits | $ | 140 | $ | 104 | $ | 36 | 35 | % | |||||||||||||||
General and administrative | |||||||||||||||||||||||
Loan origination expenses | 20 | 16 | 4 | 25 | % | ||||||||||||||||||
Corporate and other general and administrative expenses | 16 | 16 | — | — | % | ||||||||||||||||||
Marketing and professional service fees | 14 | 12 | 2 | 17 | % | ||||||||||||||||||
Depreciation and amortization | 5 | 4 | 1 | 25 | % | ||||||||||||||||||
Loss on impairment of assets | — | 3 | (3) | (100) | % | ||||||||||||||||||
Total general and administrative | 55 | 51 | 4 | 8 | % | ||||||||||||||||||
Total expenses - Originations | $ | 195 | $ | 155 | $ | 40 | 26 | % |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | $ Change | % Change | |||||||||||
Salaries, wages and benefits | $ | 117 | $ | 69 | $ | 48 | 70 | % | ||||||
General and administrative | ||||||||||||||
Loan origination expenses | 16 | 10 | 6 | 60 | % | |||||||||
Corporate and other general and administrative expenses | 18 | 14 | 4 | 29 | % | |||||||||
Marketing and professional service fees | 12 | 8 | 4 | 50 | % | |||||||||
Depreciation and amortization | 3 | 3 | — | — | % | |||||||||
Total general and administrative | 49 | 35 | 14 | 40 | % | |||||||||
Total expenses - Originations | $ | 166 | $ | 104 | $ | 62 | 60 | % |
Table 20.1 Originations - Expenses |
Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Salaries, wages and benefits | $ | 377 | $ | 261 | $ | 116 | 44 | % | |||||||||||||||
General and administrative | |||||||||||||||||||||||
Loan origination expenses | 52 | 43 | 9 | 21 | % | ||||||||||||||||||
Corporate and other general and administrative expenses | 50 | 43 | 7 | 16 | % | ||||||||||||||||||
Marketing and professional service fees | 37 | 41 | (4) | (10) | % | ||||||||||||||||||
Depreciation and amortization | 12 | 13 | (1) | (8) | % | ||||||||||||||||||
Loss on impairment of assets | — | 3 | (3) | (100) | % | ||||||||||||||||||
Total general and administrative | 151 | 143 | 8 | 6 | % | ||||||||||||||||||
Total expenses - Originations | $ | 528 | $ | 404 | $ | 124 | 31 | % |
Table |
Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Interest income | $ | 16 | $ | 24 | $ | (8) | (33) | % | |||||||||||||||
Interest expense | (15) | (24) | 9 | (38) | % | ||||||||||||||||||
Other expense, net | — | (1) | 1 | 100 | % | ||||||||||||||||||
Total other income (expenses), net - Originations | $ | 1 | $ | (1) | $ | 2 | (200) | % | |||||||||||||||
Weighted average note rate - mortgage loans held for sale | 3.1 | % | 4.1 | % | (1.0) | % | (24) | % | |||||||||||||||
Weighted average cost of funds (excluding facility fees) | 2.5 | % | 3.8 | % | (1.3) | % | (34) | % |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | $ Change | % Change | |||||||||||
Interest income | $ | 34 | $ | 17 | $ | 17 | 100 | % | ||||||
Interest expense | (27 | ) | (18 | ) | (9 | ) | 50 | % | ||||||
Other income, net | — | 4 | (4 | ) | (100 | )% | ||||||||
Total other income (expenses), net - Originations | $ | 7 | $ | 3 | $ | 4 | 133 | % | ||||||
Weighted average note rate - mortgage loans held for sale | 3.8 | % | 4.9 | % | (1.1 | )% | (22 | )% | ||||||
Weighted average cost of funds (excluding facility fees) | 3.2 | % | 4.7 | % | (1.5 | )% | (32 | )% |
Table 21.1 Originations - Other Income, Net |
Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Interest income | $ | 69 | $ | 64 | $ | 5 | 8 | % | |||||||||||||||
Interest expense | (55) | (67) | 12 | (18) | % | ||||||||||||||||||
Other income, net | — | 4 | (4) | (100) | % | ||||||||||||||||||
Total other income, net - Originations | $ | 14 | $ | 1 | $ | 13 | 1,300 | % | |||||||||||||||
Weighted average note rate - mortgage loans held for sale | 3.4 | % | 4.4 | % | (1.0) | % | (23) | % | |||||||||||||||
Weighted average cost of funds (excluding facility fees) | 2.7 | % | 4.3 | % | (1.6) | % | (37) | % |
Xome Segment |
Table |
Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Xome - Operations | |||||||||||||||||||||||
Total revenues | $ | 108 | $ | 112 | $ | (4) | (4) | % | |||||||||||||||
Total expenses | 94 | 101 | (7) | (7) | % | ||||||||||||||||||
Total other income, net | 1 | 3 | (2) | (67) | % | ||||||||||||||||||
Income before income tax expense | $ | 15 | $ | 14 | $ | 1 | 7 | % | |||||||||||||||
Pre-tax margin | 13.9 | % | 12.5 | % | 1.4 | % | 11 | % | |||||||||||||||
Xome - Revenues | |||||||||||||||||||||||
Exchange | $ | 6 | $ | 19 | $ | (13) | (68) | % | |||||||||||||||
Services | 99 | 87 | 12 | 14 | % | ||||||||||||||||||
Data/Technology | 3 | 6 | (3) | (50) | % | ||||||||||||||||||
Total revenues - Xome | $ | 108 | $ | 112 | $ | (4) | (4) | % | |||||||||||||||
Key Metrics | |||||||||||||||||||||||
Exchange properties sold | 860 | 2,453 | (1,593) | (65) | % | ||||||||||||||||||
Average Exchange properties under management | 15,067 | 6,688 | 8,379 | 125 | % | ||||||||||||||||||
Services completed orders | 422,935 | 429,128 | (6,193) | (1) | % | ||||||||||||||||||
Percentage of revenue earned from third-party customers | 50.1 | % | 53.4 | % | (3.3) | % | (6) | % | |||||||||||||||
Xome - Expenses | |||||||||||||||||||||||
Salaries, wages and benefits | $ | 32 | $ | 37 | $ | (5) | (14) | % | |||||||||||||||
General and administrative | |||||||||||||||||||||||
Operational expenses | 57 | 60 | (3) | (5) | % | ||||||||||||||||||
Depreciation and amortization | 5 | 4 | 1 | 25 | % | ||||||||||||||||||
Total general and administrative | 62 | 64 | (2) | (3) | % | ||||||||||||||||||
Total expenses - Xome | $ | 94 | $ | 101 | $ | (7) | (7) | % |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | $ Change | % Change | |||||||||||
Xome - Operations | ||||||||||||||
Total revenues | $ | 106 | $ | 96 | $ | 10 | 10 | % | ||||||
Total expenses | 96 | 99 | (3 | ) | (3 | )% | ||||||||
Total other income (expenses), net | 1 | 11 | (10 | ) | (91 | )% | ||||||||
Income before income tax expense | $ | 11 | $ | 8 | $ | 3 | 38 | % | ||||||
Income before taxes margin - Xome | 10.4 | % | 8.3 | % | 2.1 | % | 25 | % | ||||||
Xome - Revenues | ||||||||||||||
Exchange | $ | 16 | $ | 20 | $ | (4 | ) | (20 | )% | |||||
Services | 85 | 71 | 14 | 20 | % | |||||||||
Data/Technology | 5 | 5 | — | — | % | |||||||||
Total revenues - Xome | $ | 106 | $ | 96 | $ | 10 | 10 | % | ||||||
Key Metrics | ||||||||||||||
Exchange properties sold | 2,114 | 2,421 | (307 | ) | (13 | )% | ||||||||
Average Exchange properties under management | 17,777 | 6,634 | 11,143 | 168 | % | |||||||||
Services completed orders | 408,734 | 379,585 | 29,149 | 8 | % | |||||||||
Percentage of revenue earned from third-party customers | 54.6 | % | 53.0 | % | 1.6 | % | 3 | % | ||||||
Xome - Expenses | ||||||||||||||
Salaries, wages and benefits | $ | 35 | $ | 38 | $ | (3 | ) | (8 | )% | |||||
General and administrative | ||||||||||||||
Operational expenses | 58 | 57 | 1 | 2 | % | |||||||||
Depreciation and amortization | 3 | 4 | (1 | ) | (25 | )% | ||||||||
Total general and administrative | 61 | 61 | — | — | % | |||||||||
Total expenses - Xome | $ | 96 | $ | 99 | $ | (3 | ) | (3 | )% |
Table 22.1 Xome Segment Results of Operations |
Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Xome - Operations | |||||||||||||||||||||||
Total revenues | $ | 320 | $ | 316 | $ | 4 | 1 | % | |||||||||||||||
Total expenses | 285 | 301 | (16) | (5) | % | ||||||||||||||||||
Total other income, net | 3 | 14 | (11) | (79) | % | ||||||||||||||||||
Income before income tax expense | $ | 38 | $ | 29 | $ | 9 | 31 | % | |||||||||||||||
Pre-tax margin | 11.9 | % | 9.2 | % | 2.7 | % | 29 | % | |||||||||||||||
Xome - Revenues | |||||||||||||||||||||||
Exchange | $ | 31 | $ | 59 | $ | (28) | (47) | % | |||||||||||||||
Services | 278 | 240 | 38 | 16 | % | ||||||||||||||||||
Data/Technology | 11 | 17 | (6) | (35) | % | ||||||||||||||||||
Total revenues - Xome | $ | 320 | $ | 316 | $ | 4 | 1 | % | |||||||||||||||
Key Metrics | |||||||||||||||||||||||
Exchange properties sold | 4,165 | 7,519 | (3,354) | (45) | % | ||||||||||||||||||
Average Exchange properties under management | 16,761 | 6,552 | 10,209 | 156 | % | ||||||||||||||||||
Services completed orders | 1,255,643 | 1,226,223 | 29,420 | 2 | % | ||||||||||||||||||
Percentage of revenue earned from third-party customers | 52.7 | % | 53.1 | % | (0.4) | % | (1) | % | |||||||||||||||
Xome - Expenses | |||||||||||||||||||||||
Salaries, wages and benefits | $ | 100 | $ | 111 | $ | (11) | (10) | % | |||||||||||||||
General and administrative | |||||||||||||||||||||||
Operational expenses | 174 | 179 | (5) | (3) | % | ||||||||||||||||||
Depreciation and amortization | 11 | 11 | — | — | % | ||||||||||||||||||
Total general and administrative | 185 | 190 | (5) | (3) | % | ||||||||||||||||||
Total expenses - Xome | $ | 285 | $ | 301 | $ | (16) | (5) | % |
Corporate/Other |
Table |
Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Corporate/Other - Operations | |||||||||||||||||||||||
Total expenses | 43 | 51 | (8) | (16) | % | ||||||||||||||||||
Interest expense | 45 | 52 | (7) | (13) | % | ||||||||||||||||||
Other expense, net | (52) | — | (52) | (100) | % |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | $ Change | % Change | |||||||||||
Corporate/Other - Operations | ||||||||||||||
Total revenues | $ | 2 | $ | — | $ | 2 | 100 | % | ||||||
Total expenses | 34 | 45 | (11 | ) | (24 | )% | ||||||||
Total other income (expenses), net | (51 | ) | (55 | ) | 4 | (7 | )% | |||||||
Loss before income tax benefit - Corporate/Other | $ | (83 | ) | $ | (100 | ) | $ | 17 | (17 | )% | ||||
Corporate/Other - Expenses | ||||||||||||||
Salaries, wages and benefits | $ | 8 | $ | 22 | $ | (14 | ) | (64 | )% | |||||
General and administrative | ||||||||||||||
Operational expenses | 8 | 13 | (5 | ) | (38 | )% | ||||||||
Depreciation and amortization | 10 | 10 | — | — | % | |||||||||
Loss on impairment of assets | 8 | — | 8 | 100 | % | |||||||||
Total general and administrative | 26 | 23 | 3 | 13 | % | |||||||||
Total expenses - Corporate/Other | $ | 34 | $ | 45 | $ | (11 | ) | (24 | )% | |||||
Corporate/Other - Other Income (Expenses), Net | ||||||||||||||
Total interest income | $ | 1 | $ | 2 | $ | (1 | ) | (50 | )% | |||||
Interest expense on unsecured senior notes | (51 | ) | (51 | ) | — | — | % | |||||||
Other interest expense | (1 | ) | (6 | ) | 5 | (83 | )% | |||||||
Total interest expense | (52 | ) | (57 | ) | 5 | (9 | )% | |||||||
Total other income (expenses), net - Corporate/Other | $ | (51 | ) | $ | (55 | ) | $ | 4 | (7 | )% | ||||
Weighted average cost - unsecured senior notes | 7.8 | % | 7.9 | % | (0.1 | )% | (1 | )% |
Table |
Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Corporate/Other - Operations | |||||||||||||||||||||||
Total expenses | 111 | 153 | (42) | (27) | % | ||||||||||||||||||
Interest expense | 144 | 162 | (18) | (11) | % | ||||||||||||||||||
Other (expense) income, net | (53) | 5 | (58) | (1,160) | % |
March 31, 2020 | December 31, 2019 | $ Change | % Change | |||||||||||
Cash and cash equivalents | $ | 579 | $ | 329 | $ | 250 | 76 | % | ||||||
Mortgage servicing rights | 3,115 | 3,502 | (387 | ) | (11 | )% | ||||||||
Advances and other receivables, net | 685 | 988 | (303 | ) | (31 | )% | ||||||||
Reverse mortgage interests, net | 5,955 | 6,279 | (324 | ) | (5 | )% | ||||||||
Mortgage loans held for sale at fair value | 3,922 | 4,077 | (155 | ) | (4 | )% | ||||||||
Deferred tax assets, net | 1,411 | 1,345 | 66 | 5 | % | |||||||||
Other | 1,946 | 1,785 | 161 | 9 | % | |||||||||
Total assets | $ | 17,613 | $ | 18,305 | $ | (692 | ) | (4 | )% |
March 31, 2020 | December 31, 2019 | $ Change | % Change | |||||||||||
Unsecured senior notes, net | $ | 2,259 | $ | 2,366 | $ | (107 | ) | (5 | )% | |||||
Advance facilities, net | 489 | 422 | 67 | 16 | % | |||||||||
Warehouse facilities, net | 4,551 | 4,575 | (24 | ) | (1 | )% | ||||||||
MSR related liabilities - nonrecourse at fair value | 1,285 | 1,348 | (63 | ) | (5 | )% | ||||||||
Other nonrecourse debt, net | 4,945 | 5,286 | (341 | ) | (6 | )% | ||||||||
Other liabilities | 2,018 | 2,077 | (59 | ) | (3 | )% | ||||||||
Total liabilities | 15,547 | 16,074 | (527 | ) | (3 | )% | ||||||||
Total stockholders’ equity | 2,066 | 2,231 | (165 | ) | (7 | )% | ||||||||
Total liabilities and stockholders’ equity | $ | 17,613 | $ | 18,305 | $ | (692 | ) | (4 | )% |
Liquidity and Capital Resources |
Table |
Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Net cash attributable to: | |||||||||||||||||||||||
Operating activities | $ | 1,878 | $ | (28) | $ | 1,906 | (6,807) | % | |||||||||||||||
Investing activities | (38) | (279) | 241 | (86) | % | ||||||||||||||||||
Financing activities | (1,277) | 388 | (1,665) | (429) | % | ||||||||||||||||||
Net increase in cash, cash equivalents, and restricted cash | $ | 563 | $ | 81 | $ | 482 | 595 | % |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | $ Change | % Change | |||||||||||
Net loss | $ | (171 | ) | $ | (186 | ) | $ | 15 | (8 | )% | ||||
Fair value changes in MSRs, MSR related liabilities and mortgage loans held for investment | 497 | 311 | 186 | 60 | % | |||||||||
Deferred tax benefit | (68 | ) | (47 | ) | (21 | ) | 45 | % | ||||||
Other non-cash adjustments to net loss | (332 | ) | (210 | ) | (122 | ) | 58 | % | ||||||
Originations net sales activities | 430 | 116 | 314 | 271 | % | |||||||||
Changes in working capital | 354 | 301 | 53 | 18 | % | |||||||||
Net cash attributable to operating activities | $ | 710 | $ | 285 | $ | 425 | 149 | % |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | $ Change | % Change | |||||||||||
Acquisitions, net | $ | — | $ | (85 | ) | $ | 85 | (100 | )% | |||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (27 | ) | (130 | ) | 103 | (79 | )% | |||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 43 | 243 | (200 | ) | (82 | )% | ||||||||
Other | (12 | ) | (10 | ) | (2 | ) | 20 | % | ||||||
Net cash attributable to investing activities | $ | 4 | $ | 18 | $ | (14 | ) | (78 | )% |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | $ Change | % Change | |||||||||||
(Decrease) increase in warehouse facilities | $ | (25 | ) | $ | 307 | $ | (332 | ) | (108 | )% | ||||
Increase (decrease) in advance facilities | 68 | (30 | ) | 98 | (327 | )% | ||||||||
Repayment of notes payable | — | (294 | ) | 294 | (100 | )% | ||||||||
Redemption and repayment of unsecured senior notes and nonrecourse debt | (698 | ) | (3 | ) | (695 | ) | 23,167 | % | ||||||
Issuance of unsecured senior debt | 600 | — | 600 | 100 | % | |||||||||
Issuance of excess spread financing | 24 | 245 | (221 | ) | (90 | )% | ||||||||
Settlements and repayments of excess spread financing | (58 | ) | (50 | ) | (8 | ) | 16 | % | ||||||
Decrease of participating interest financing | (275 | ) | (408 | ) | 133 | (33 | )% | |||||||
Changes in HECM securitizations | (99 | ) | (107 | ) | 8 | (7 | )% | |||||||
Other | (18 | ) | (4 | ) | (14 | ) | 350 | % | ||||||
Net cash attributable to financing activities | $ | (481 | ) | $ | (344 | ) | $ | (137 | ) | 40 | % |
Table |
September 30, 2020 | December 31, 2019 | ||||||||||
Advance facilities principal amount | $ | 569 | $ | 422 | |||||||
Warehouse facilities principal amount | 4,028 | 4,416 | |||||||||
MSR facilities principal amount | 266 | 160 | |||||||||
Unsecured senior principal amount | 2,200 | 2,398 |
March 31, 2020 | December 31, 2019 | ||||||
Advance facilities, net | $ | 489 | $ | 422 | |||
Warehouse facilities, net | 4,551 | 4,575 | |||||
Unsecured senior notes, net | 2,259 | 2,366 |
Year Ending December 31, | Amount | |||
2020 | $ | — | ||
2021 | — | |||
2022 | — | |||
2023 | 950 | |||
2024 | — | |||
Thereafter | 1,350 | |||
Unsecured senior notes principal amount | 2,300 | |||
Unamortized debt issuance costs, premium and discount | (41 | ) | ||
Unsecured senior notes, net | $ | 2,259 |
Table |
Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | Total | |||||||||||||||||||||||||
Unsecured senior notes | $ | — | $ | — | $ | — | $ | 2,200 | $ | 2,200 | |||||||||||||||||||
Interest payment from unsecured senior notes | 151 | 304 | 304 | 267 | 1,026 | ||||||||||||||||||||||||
Total | $ | 151 | $ | 304 | $ | 304 | $ | 2,467 | $ | 3,226 |
Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | Total | |||||||||||||||
Unsecured senior notes | $ | — | $ | — | $ | 950 | $ | 1,350 | $ | 2,300 | |||||||||
Interest payment from unsecured senior notes | 182 | 363 | 248 | 175 | 968 | ||||||||||||||
Total | $ | 182 | $ | 363 | $ | 1,198 | $ | 1,525 | $ | 3,268 |
Critical Accounting Policies |
Table |
September 30, 2020 | |||||||||||
Down 25 bps | Up 25 bps | ||||||||||
Increase (decrease) in assets | |||||||||||
Mortgage servicing rights at fair value | $ | (127) | $ | 136 | |||||||
Mortgage loans held for sale at fair value | 17 | (22) | |||||||||
Derivative financial instruments: | |||||||||||
Interest rate lock commitments | 74 | (98) | |||||||||
Forward MBS trades | (23) | 32 | |||||||||
Total change in assets | (59) | 48 | |||||||||
Increase (decrease) in liabilities | |||||||||||
Mortgage servicing rights financing at fair value | (4) | 4 | |||||||||
Excess spread financing at fair value | (17) | 20 | |||||||||
Derivative financial instruments: | |||||||||||
Interest rate lock commitments | (3) | 5 | |||||||||
Forward MBS trades | 70 | (92) | |||||||||
Total change in liabilities | 46 | (63) | |||||||||
Total, net change | $ | (105) | $ | 111 |
March 31, 2020 | |||||||
Down 25 bps | Up 25 bps | ||||||
Increase (decrease) in assets | |||||||
Mortgage servicing rights at fair value | $ | (229 | ) | $ | 235 | ||
Mortgage loans held for sale at fair value | 10 | (12 | ) | ||||
Derivative financial instruments: | |||||||
Interest rate lock commitments | 31 | (37 | ) | ||||
Total change in assets | (188 | ) | 186 | ||||
Increase (decrease) in liabilities | |||||||
Mortgage servicing rights liabilities at fair value | (5 | ) | 4 | ||||
Excess spread financing at fair value | (46 | ) | 51 | ||||
Derivative financial instruments: | |||||||
Forward MBS trades | 36 | (44 | ) | ||||
Total change in liabilities | (15 | ) | 11 | ||||
Total, net change | $ | (173 | ) | $ | 175 |
Period | (a) Total Number of Shares Purchased (in thousands) | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plan or Program (in thousands) | (d) Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plan or Program (in millions) | ||||||||||||||||||||||
July 2020 | — | $ | — | — | $ | — | ||||||||||||||||||||
August 2020 | 334 | $ | 18.04 | 334 | $ | 94 | ||||||||||||||||||||
September 2020 | 853 | $ | 20.30 | 853 | $ | 76 | ||||||||||||||||||||
Total | 1,187 | 1,187 |
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | Filed or Furnished Herewith | ||||||||||||||
4.1 | 8-K | 001-14667 | 4.1 | 8/6/2020 | ||||||||||||||||
10.1 | X | |||||||||||||||||||
10.2 | X | |||||||||||||||||||
10.3** | X | |||||||||||||||||||
10.4** | X | |||||||||||||||||||
31.1 | X | |||||||||||||||||||
31.2 | X | |||||||||||||||||||
32.1 | X | |||||||||||||||||||
32.2 | X | |||||||||||||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | X | ||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | X | ||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibits 101.) | X |
MR. COOPER GROUP INC. | ||||||||
October 29, 2020 | ||||||||
/s/ Jay Bray | ||||||||
Date | Jay Bray Chief Executive Officer (Principal Executive Officer) | |||||||
/s/ Christopher G. Marshall | ||||||||
Date | Christopher G. Marshall Vice Chairman & Chief Financial Officer (Principal Financial and Accounting Officer) |