Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 18, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-35777 | ||
Entity Registrant Name | New Residential Investment Corp. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 45-3449660 | ||
Entity Address, Address Line One | 1345 Avenue of the Americas | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10105 | ||
City Area Code | (212) | ||
Local Phone Number | 798-3150 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4.7 | ||
Entity Common Stock, Shares Outstanding | 415,551,820 | ||
Documents Incorporated by Reference | The information required by Part III (Items 10, 11, 12, 13 and 14) will be incorporated by reference from the registrant’s Definitive Proxy Statement for its 2020 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A. | ||
Entity Central Index Key | 0001556593 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Common Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | NRZ | ||
Security Exchange Name | NYSE | ||
7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||
Trading Symbol | NRZ PR A | ||
Security Exchange Name | NYSE | ||
7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||
Trading Symbol | NRZ PR B | ||
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments in: | |||
Excess mortgage servicing rights (“MSRs”), at fair value | $ 379,747 | $ 447,860 | |
Excess mortgage servicing rights, equity method investees, at fair value | 125,596 | 147,964 | |
Mortgage servicing rights, at fair value | 3,967,960 | 2,884,100 | |
Mortgage servicing rights financing receivables, at fair value | 1,718,273 | 1,644,504 | |
Servicer advance investments, at fair value | [1] | 581,777 | 735,846 |
Real estate and other securities, available-for-sale | 19,477,728 | 11,636,581 | |
Residential mortgage loans, held-for-investment (includes $108,630 and $121,088 at fair value at December 31, 2019 and December 31, 2018, respectively) | [1] | 925,706 | 735,329 |
Residential mortgage loans, held-for-sale | 1,429,052 | 932,480 | |
Residential mortgage loans, held-for-sale, at fair value | 4,613,612 | 2,808,529 | |
Consumer loans, held-for-investment | [1] | 827,545 | 1,072,202 |
Cash and cash equivalents | [1] | 528,737 | 251,058 |
Restricted cash | 162,197 | 164,020 | |
Servicer advances receivable | 3,301,374 | 3,277,796 | |
Trades receivable | 5,256,014 | 3,925,198 | |
Deferred tax asset, net | 8,669 | 65,832 | |
Other assets (includes $172,336 and $121,602 in residential mortgage loans subject to repurchase at December 31, 2019 and December 31,2018, respectively) | 1,559,467 | 961,714 | |
Total assets | 44,863,454 | 31,691,013 | |
Liabilities | |||
Repurchase agreements | 27,916,225 | 15,553,969 | |
Notes and bonds payable (includes $659,715 and $117,048 at fair value at December 31, 2019 and December 31, 2018, respectively) | [1] | 7,720,148 | 7,102,266 |
Trades payable | 902,081 | 2,048,348 | |
Due to affiliates | 103,882 | 101,471 | |
Dividends payable | 211,732 | 184,552 | |
Accrued expenses and other liabilities (includes $172,336 and $121,602 in residential mortgage loans repurchase liabilities at December 31, 2019 and December 31,2018, respectively) | [1] | 773,126 | 612,112 |
Total liabilities | 37,627,194 | 25,602,718 | |
Commitments and Contingencies | |||
Equity | |||
Common Stock, $0.01 par value, 2,000,000,000 shares authorized, 415,520,780 and 369,104,429 issued and outstanding at December 31, 2019 and December 31, 2018, respectively | 4,156 | 3,692 | |
Additional paid-in capital | 5,498,226 | 4,746,242 | |
Retained earnings | 549,733 | 830,713 | |
Accumulated other comprehensive income (loss) | 682,151 | 417,023 | |
Total New Residential stockholders’ equity | 7,157,710 | 5,997,670 | |
Noncontrolling interests in equity of consolidated subsidiaries | 78,550 | 90,625 | |
Total Equity | 7,236,260 | 6,088,295 | |
Total Liabilities And Equity | 44,863,454 | 31,691,013 | |
7.50% Series A Preferred Stock, $0.01 par value, 11,500,000 shares authorized, 6,210,000 and 0 issued and outstanding at December 31, 2019 and December 31, 2018, respectively | |||
Equity | |||
Series A and Series B Preferred Stock | 150,026 | 0 | |
7.125% Series B Preferred Stock, $0.01 par value, 11,500,000 shares authorized, 11,300,000 and 0 issued and outstanding at December 31, 2019 and December 31, 2018, respectively | |||
Equity | |||
Series A and Series B Preferred Stock | $ 273,418 | $ 0 | |
[1] | See Note 14 regarding consolidated VIEs. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Residential mortgage loans, held-for-investment, fair value | $ 484,443 | $ 121,088 |
Residential mortgage loans subject to repurchase | 172,336 | 121,602 |
Notes and bonds payable, fair value | 659,738 | 117,048 |
Accrued expenses and other liabilities | $ 172,336 | $ 121,602 |
Preferred stock, par values (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 415,520,780 | 369,104,429 |
Common stock, shares outstanding (in shares) | 415,520,780 | 369,104,429 |
7.50% Series A and 7.125% Series B Preferred Stock | ||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
7.50% Series A Preferred Stock, $0.01 par value, 11,500,000 shares authorized, 6,210,000 and 0 issued and outstanding at December 31, 2019 and December 31, 2018, respectively | ||
Preferred stock, par values (in dollars per share) | $ 0.01 | $ 0.01 |
Dividend interest rate | 7.50% | 7.50% |
Preferred stock, shares authorized (in shares) | 11,500,000 | 11,500,000 |
Preferred stock, shares issued (in shares) | 6,210,000 | 0 |
Preferred stock, shares outstanding (in shares) | 6,210,000 | 0 |
7.125% Series B Preferred Stock, $0.01 par value, 11,500,000 shares authorized, 11,300,000 and 0 issued and outstanding at December 31, 2019 and December 31, 2018, respectively | ||
Preferred stock, par values (in dollars per share) | $ 0.01 | $ 0.01 |
Dividend interest rate | 7.125% | 7.125% |
Preferred stock, shares authorized (in shares) | 11,500,000 | 11,500,000 |
Preferred stock, shares issued (in shares) | 11,300,000 | 0 |
Preferred stock, shares outstanding (in shares) | 11,300,000 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Interest income | $ 1,766,130 | $ 1,664,223 | $ 1,519,679 |
Interest expense | 933,751 | 606,433 | 460,865 |
Net Interest Income | 832,379 | 1,057,790 | 1,058,814 |
Impairment | |||
Other-than-temporary impairment (OTTI) on securities | 25,174 | 30,017 | 10,334 |
Valuation and loss provision, net on loans and real estate owned (REO) | 10,403 | 60,624 | 75,758 |
Total Impairment Charges | 35,577 | 90,641 | 86,092 |
Net interest income after impairment | 796,802 | 967,149 | 972,722 |
Servicing revenue, net of change in fair value of $(712,950), $(191,245), and $(67,672), respectively | 385,159 | 528,595 | 424,349 |
Gain on originated mortgage loans, held-for-sale, net | 475,455 | 96,145 | 0 |
Other Income | |||
Change in fair value of investments in excess mortgage servicing rights | (10,505) | (58,656) | 4,322 |
Change in fair value of investments in excess mortgage servicing rights, equity method investees | 6,800 | 8,357 | 12,617 |
Change in fair value of investments in mortgage servicing rights financing receivables | (189,023) | 31,550 | 66,394 |
Change in fair value of servicer advance investments | 10,288 | (89,332) | 84,418 |
Change in fair value of investments in residential mortgage loans | (70,914) | 69,820 | 0 |
Change in fair value of derivative investments | (56,143) | (108,234) | (2,190) |
Gain (loss) on settlement of investments, net | 225,687 | 95,085 | 10,310 |
Earnings from investments in consumer loans, equity method investees | (1,438) | 10,803 | 25,617 |
Other income (loss), net | 44,149 | (10,778) | 6,298 |
Total Other Income | (41,099) | (51,385) | 207,786 |
Operating Expenses | |||
General and administrative expenses | 538,035 | 231,579 | 67,159 |
Management fee to affiliate | 79,472 | 62,594 | 55,634 |
Incentive compensation to affiliate | 91,892 | 94,900 | 81,373 |
Loan servicing expense | 31,737 | 43,547 | 52,330 |
Subservicing expense | 227,482 | 176,784 | 166,081 |
Total Operating Expenses | 968,618 | 609,404 | 422,577 |
Income (Loss) Before Income Taxes | 647,699 | 931,100 | 1,182,280 |
Income tax (benefit) expense | 41,766 | (73,431) | 167,628 |
Net Income (Loss) | 605,933 | 1,004,531 | 1,014,652 |
Noncontrolling Interests in Income of Consolidated Subsidiaries | 42,637 | 40,564 | 57,119 |
Dividends on Preferred Stock | 13,281 | 0 | 0 |
Net income (loss) attributable to common stockholders | $ 550,015 | $ 963,967 | $ 957,533 |
Net Income Per Share of Common Stock | |||
Basic (in dollars per share) | $ 1.35 | $ 2.82 | $ 3.17 |
Diluted (in dollars per share) | $ 1.34 | $ 2.81 | $ 3.15 |
Weighted Average Number of Shares of Common Stock Outstanding | |||
Basic (in shares) | 408,789,642 | 341,268,923 | 302,238,065 |
Diluted (in shares) | 408,990,107 | 343,137,361 | 304,381,388 |
Dividends declared per Share of Common Stock (in dollars per share) | $ 2 | $ 2 | $ 1.98 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Servicing revenue, change in fair value | $ (712,950) | $ (191,245) | $ (67,672) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Comprehensive income (loss), net of tax | |||
Net income | $ 605,933 | $ 1,004,531 | $ 1,014,652 |
Other comprehensive income (loss) | |||
Net unrealized gain (loss) on securities | 445,943 | (7,397) | 248,412 |
Reclassification of net realized (gain) loss on securities into earnings | (180,815) | 59,953 | (10,308) |
Total other comprehensive income (loss) | 265,128 | 52,556 | 238,104 |
Total comprehensive income | 871,061 | 1,057,087 | 1,252,756 |
Comprehensive income attributable to noncontrolling interests | 42,637 | 40,564 | 57,119 |
Dividends on Preferred Stock | 13,281 | 0 | 0 |
Comprehensive income attributable to common stockholders | $ 815,143 | $ 1,016,523 | $ 1,195,637 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total New Residential Stockholders’ Equity | Noncontrolling Interests in Equity of Consolidated Subsidiaries | Common Stock | Common StockCommon Stock | Common StockAdditional Paid-in Capital | Common StockTotal New Residential Stockholders’ Equity | Preferred Stock | Preferred StockPreferred Stock | Preferred StockTotal New Residential Stockholders’ Equity |
Balance, beginning at Dec. 31, 2016 | $ 3,468,177 | $ 0 | $ 2,507 | $ 2,920,730 | $ 210,500 | $ 126,363 | $ 3,260,100 | $ 208,077 | |||||||
Balance, beginning (in shares) at Dec. 31, 2016 | 250,773,117 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Dividends declared on common stock | (608,557) | (608,557) | (608,557) | ||||||||||||
Capital distributions | (84,196) | (84,196) | |||||||||||||
Issuance stock (in shares) | 56,545,787 | ||||||||||||||
Issuance of common and preferred stock | 834,529 | $ 566 | 833,963 | 834,529 | |||||||||||
Option exercise | (1,386) | (1,386) | (1,386) | ||||||||||||
Purchase of noncontrolling interests in the Buyer | (65,860) | 9,183 | 9,183 | (75,043) | |||||||||||
Director share grants (in shares) | 42,405 | ||||||||||||||
Director share grants | 699 | $ 1 | 698 | 699 | |||||||||||
Comprehensive income (loss) | |||||||||||||||
Net income (loss) | 1,014,652 | 957,533 | 957,533 | 57,119 | |||||||||||
Net unrealized gain (loss) on securities | 248,412 | 248,412 | 248,412 | ||||||||||||
Reclassification of net realized (gain) loss on securities into earnings | (10,308) | (10,308) | (10,308) | ||||||||||||
Total comprehensive income | 1,252,756 | 1,195,637 | 57,119 | ||||||||||||
Balance, ending at Dec. 31, 2017 | 4,796,162 | 0 | $ 3,074 | 3,763,188 | 559,476 | 364,467 | 4,690,205 | 105,957 | |||||||
Balance, ending (in shares) at Dec. 31, 2017 | 307,361,309 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Dividends declared on common stock | (692,730) | (692,730) | (692,730) | ||||||||||||
Capital distributions | (64,559) | (64,559) | |||||||||||||
Issuance stock (in shares) | 57,991,659 | ||||||||||||||
Issuance of common and preferred stock | $ 982,062 | $ 580 | 981,482 | 982,062 | |||||||||||
Option exercised (in shares) | 15,803,216 | 3,694,228 | |||||||||||||
Option exercise | $ 37 | (37) | |||||||||||||
Purchase of noncontrolling interests in the Buyer | $ 9,316 | 653 | 653 | 8,663 | |||||||||||
Other dilution | (63) | (63) | (63) | ||||||||||||
Director share grants (in shares) | 57,233 | ||||||||||||||
Director share grants | 1,020 | $ 1 | 1,019 | 1,020 | |||||||||||
Comprehensive income (loss) | |||||||||||||||
Net income (loss) | 1,004,531 | 963,967 | 963,967 | 40,564 | |||||||||||
Net unrealized gain (loss) on securities | (7,397) | (7,397) | (7,397) | ||||||||||||
Reclassification of net realized (gain) loss on securities into earnings | 59,953 | 59,953 | 59,953 | ||||||||||||
Total comprehensive income | 1,057,087 | 1,016,523 | 40,564 | ||||||||||||
Balance, ending at Dec. 31, 2018 | 6,088,295 | 0 | $ 3,692 | 4,746,242 | 830,713 | 417,023 | 5,997,670 | 90,625 | |||||||
Balance, ending (in shares) at Dec. 31, 2018 | 369,104,429 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Dividends declared on common stock | (830,995) | (830,995) | (830,995) | ||||||||||||
Dividends declared on preferred stock | (13,281) | (13,281) | (13,281) | ||||||||||||
Capital distributions | $ (54,712) | (54,712) | |||||||||||||
Issuance stock (in shares) | 46,000,000 | ||||||||||||||
Issuance of common and preferred stock | $ 751,393 | $ 460 | $ 750,933 | $ 751,393 | $ 423,444 | $ 423,444 | $ 423,444 | ||||||||
Option exercised (in shares) | 2,041,222 | 348,613 | |||||||||||||
Option exercise | $ 3 | (3) | |||||||||||||
Director share grants (in shares) | 67,738 | ||||||||||||||
Director share grants | $ 1,055 | $ 1 | 1,054 | 1,055 | |||||||||||
Comprehensive income (loss) | |||||||||||||||
Net income (loss) | 605,933 | 563,296 | 563,296 | 42,637 | |||||||||||
Net unrealized gain (loss) on securities | 445,943 | 445,943 | 445,943 | ||||||||||||
Reclassification of net realized (gain) loss on securities into earnings | (180,815) | (180,815) | (180,815) | ||||||||||||
Total comprehensive income | 871,061 | 828,424 | 42,637 | ||||||||||||
Balance, ending at Dec. 31, 2019 | $ 7,236,260 | $ 423,444 | $ 4,156 | $ 5,498,226 | $ 549,733 | $ 682,151 | $ 7,157,710 | $ 78,550 | |||||||
Balance, ending (in shares) at Dec. 31, 2019 | 415,520,780 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Cash Flows From Operating Activities | |||
Net income | $ 605,933 | $ 1,004,531 | $ 1,014,652 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Change in fair value of investments in excess mortgage servicing rights | 10,505 | 58,656 | (4,322) |
Change in fair value of investments in excess mortgage servicer rights, equity method investees | (6,800) | (8,357) | (12,617) |
Change in fair value of investments in mortgage servicing rights financing receivables | 189,023 | (31,550) | (66,394) |
Change in fair value of servicer advance investments | (10,288) | 89,332 | (84,418) |
Change in fair value of residential mortgage loans, at fair value, and notes and bonds payable, at fair value | 50,244 | (68,929) | 0 |
(Gain) / loss on settlement of investments, net | (225,687) | (95,085) | (10,310) |
Gain on sale of originated mortgage loans, held-for-sale, net | (475,455) | (96,145) | 0 |
Bargain Purchase Gain | (49,539) | 0 | 0 |
Earnings from investments in consumer loans, equity method investees | 1,438 | (10,803) | (25,617) |
Change in fair value of derivative instruments | 56,143 | 108,234 | 2,190 |
Changes in fair value of contingent consideration | 10,487 | 1,581 | 0 |
Unrealized (gain) / loss on other ABS | (2,101) | (10,283) | (2,883) |
(Gain) / loss on transfer of loans to REO | (11,842) | (19,519) | (22,938) |
(Gain) / loss on transfer of loans to other assets | 1,144 | 1,977 | (488) |
(Gain) / loss on Excess MSR recapture agreements | (2,294) | (979) | (2,384) |
(Gain) / loss on Ocwen common stock | (174) | 10,860 | (5,346) |
Accretion and other amortization | (379,129) | (701,967) | (1,031,384) |
Other-than-temporary impairment | 25,174 | 30,017 | 10,334 |
Valuation and loss provision, net on loans and real estate owned (REO) | 10,403 | 60,624 | 75,758 |
Non-cash portions of servicing revenue, net | 712,950 | 191,245 | 67,672 |
Non-cash directors’ compensation | 1,055 | 1,020 | 699 |
Deferred tax provision | 52,991 | (80,054) | 168,518 |
Changes in: | |||
Servicer advances receivable, net | 218,217 | 381,400 | (30,688) |
Other assets | (338,300) | (193,681) | (32,174) |
Due to affiliates | 2,411 | 12,510 | 41,613 |
Accrued expenses and other liabilities | 182,153 | 186,311 | 26,081 |
Other operating cash flows: | |||
Interest received from excess mortgage servicing rights | 34,050 | 45,947 | 79,612 |
Interest received from servicer advance investments | 28,437 | 33,821 | 168,595 |
Interest received from Non-Agency RMBS | 264,694 | 219,704 | 211,599 |
Interest received from PCD residential mortgage loans, held-for-investment | 8,485 | 8,962 | 8,021 |
Interest received from PCD consumer loans, held-for-investment | 30,588 | 36,660 | 52,372 |
Distributions of earnings, equity method investees | 8,999 | 11,059 | 13,668 |
Purchases of residential mortgage loans, held-for-sale | (8,610,511) | (5,767,172) | (5,135,700) |
Origination of residential mortgage loans, held-for-sale | (19,411,150) | (3,385,868) | 0 |
Proceeds from sales of purchased and originated residential mortgage loans, held-for-sale | 24,968,751 | 6,546,613 | 3,514,108 |
Principal repayments from purchased residential mortgage loans, held-for-sale | 417,840 | 194,038 | 106,213 |
Net cash provided by (used in) operating activities | (1,622,548) | (1,229,114) | (899,718) |
Cash Flows From Investing Activities | |||
Business Acquisitions, net of cash acquired | (1,223,233) | (123,185) | 0 |
Purchase of servicer advance investments | (1,622,808) | (2,306,043) | (12,168,519) |
Purchase of Non-Agency RMBS | (885,629) | (2,969,308) | (2,570,753) |
Purchase of derivatives | 0 | 0 | (2,350) |
Purchase of real estate owned and other assets | (68,024) | (33,377) | (38,127) |
Purchase of investment in consumer loans, equity method investees | (64,499) | (308,050) | (470,344) |
Purchase of commercial real estate, equity method investees | 0 | (75,000) | 0 |
Draws on revolving consumer loans | (54,375) | (63,971) | (56,321) |
Payments for settlement of derivatives | (300,771) | (172,152) | (164,025) |
Return of investments in excess mortgage servicing rights | 48,444 | 53,055 | 172,395 |
Return of investments in equity method investments | 92,748 | 300,056 | 393,722 |
Principal repayments from servicer advance investments | 1,786,394 | 2,421,334 | 13,820,019 |
Principal repayments from Agency RMBS | 2,085,283 | 111,202 | 107,666 |
Principal repayments from Non-Agency RMBS | 1,294,010 | 939,690 | 815,451 |
Principal repayments from residential mortgage loans | 113,602 | 147,403 | 94,807 |
Proceeds from sale of residential mortgage loans | 41,622 | 25,511 | 13,313 |
Principal repayments from consumer loans | 261,456 | 311,222 | 401,403 |
Principal repayments from MSRs and MSR financing receivables | 51,470 | 0 | 0 |
Proceeds from sale of mortgage servicing rights | 24,528 | 13,248 | |
Proceeds from sale of excess mortgage servicing rights | 10,095 | 19,064 | 13,505 |
Proceeds from sale of Agency RMBS | 22,173,505 | 7,528,490 | 8,880,766 |
Proceeds from sale of Non-Agency RMBS | 1,950,384 | 86,443 | 182,384 |
Proceeds from settlement of derivatives | 108,472 | 242,422 | 126,319 |
Proceeds from sale of real estate owned | 138,910 | 140,301 | 86,241 |
Net cash used in investing activities | (10,948,515) | (5,171,090) | (1,777,579) |
Cash Flows From Financing Activities | |||
Repayments of repurchase agreements | (230,954,107) | (93,214,286) | (54,289,124) |
Margin deposits under repurchase agreements and derivatives | (4,567,677) | (1,934,868) | (1,056,408) |
Repayments of notes and bonds payable | (9,307,033) | (9,892,659) | (8,971,523) |
Payment of deferred financing fees | (6,705) | (12,498) | (6,610) |
Common stock dividends paid | (807,788) | (661,859) | (570,232) |
Preferred shareholders stock dividends paid | (9,334) | 0 | 0 |
Borrowings under repurchase agreements | 243,316,628 | 99,662,678 | 57,762,563 |
Return of margin deposits under repurchase agreements and derivatives | 4,365,946 | 1,733,387 | 1,058,791 |
Borrowings under notes and bonds payable | 9,706,864 | 9,770,909 | 8,057,720 |
Issuance of preferred stock | 423,444 | 0 | 0 |
Issuance of common stock | 752,217 | 983,149 | 835,465 |
Costs related to issuance of common stock | (824) | (1,087) | (936) |
Noncontrolling interest in equity of consolidated subsidiaries - contributions | 0 | 0 | 0 |
Noncontrolling interest in equity of consolidated subsidiaries - distributions | (54,712) | (64,559) | (84,196) |
Payment of contingent consideration | (10,000) | 0 | 0 |
Purchase of noncontrolling interests in the Buyer | 0 | 925 | (65,860) |
Net cash provided by financing activities | 12,846,919 | 6,369,232 | 2,669,650 |
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | 275,856 | (30,972) | (7,647) |
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period | 415,078 | 446,050 | 453,697 |
Cash, Cash Equivalents, and Restricted Cash, End of Period | 690,934 | 415,078 | 446,050 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the period for interest | 902,466 | 564,722 | 442,287 |
Cash paid during the period for income taxes | 1,479 | 5,012 | 5,021 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||
Dividends declared but not paid | 211,732 | 184,552 | 153,681 |
Transfer from residential mortgage loans to real estate owned and other assets | 95,640 | 109,527 | 141,968 |
Transfer from residential mortgage loans, held-for-investment to residential mortgage loans, held-for-sale | 9,136 | 23,080 | 23,080 |
Contingent consideration | 55,222 | 40,842 | |
Ditech effective settlement of Preexisting Relationships | 4,919 | 0 | 0 |
Real estate securities retained from loan securitizations | 1,171,959 | 900,491 | 403,270 |
Residential mortgage loans subject to repurchase | 172,336 | 121,602 | 0 |
Ocwen transaction (Note 6) - excess mortgage servicing rights | 0 | 638,567 | 71,982 |
Ocwen transaction (Note 6) - servicer advance investments | 0 | 3,175,891 | 481,220 |
Ocwen transaction (Note 6) - mortgage servicing rights financing receivables, at fair value | 0 | 1,017,993 | 64,450 |
Mortgage Servicing Rights and Servicer Advances | |||
Cash Flows From Investing Activities | |||
Purchase of MSRs, MSR financing receivables and servicer advance receivables | (1,450,375) | (1,194,467) | (1,661,608) |
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||
Purchase price holdback | (25,245) | (697) | 40,854 |
Agency Residential Mortgage Backed Securities | |||
Cash Flows From Investing Activities | |||
Purchase of Agency RMBS | (35,479,893) | (10,200,299) | (9,165,868) |
Mortgage-backed Securities, Issued by Private Enterprises | |||
Cash Flows From Investing Activities | |||
Purchase of residential mortgage loans | 0 | (85,778) | (609,627) |
MSRs | |||
Cash Flows From Investing Activities | |||
Proceeds from sale of mortgage servicing rights | 1,539 | 5,776 | 0 |
Loans and Finance Receivables | |||
Cash Flows From Investing Activities | |||
Proceeds from sale of mortgage servicing rights | 22,989 | 7,472 | 0 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | |||
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||
Purchase of Agency and Non-Agency RMBS, settled after year end | 902,081 | 2,048,348 | 1,169,896 |
Sale of investments, primarily Agency RMBS, settled after year end | 5,256,014 | 3,925,198 | 1,030,850 |
Consumer Loans | |||
Other operating cash flows: | |||
Distributions of earnings, equity method investees | 8,607 | 6,176 | 6,240 |
Excess MSRs Investees | |||
Cash Flows From Investing Activities | |||
Return of investments in equity method investments | 20,169 | 21,099 | 21,972 |
LoanCo | |||
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||
Non-cash distributions from LoanCo | 0 | 25,739 | 44,587 |
Shellpoint Acquisition | |||
Cash Flows From Financing Activities | |||
Payment of contingent consideration | (10,000) | ||
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||
Purchase price holdback | 0 | 8,173 | 0 |
Contingent consideration | 0 | 39,300 | 0 |
Guardian Acquisition | |||
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||
Contingent consideration | $ 13,893 | $ 0 | $ 0 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION New Residential Investment Corp. (together with its subsidiaries, “New Residential”, or “the Company”) is a Delaware corporation that was formed as a limited liability company in September 2011 for the purpose of making real estate related investments and commenced operations on December 8, 2011. New Residential is an independent publicly traded real estate investment trust (“REIT”) primarily focused on investing in residential mortgage related assets. New Residential is listed on the New York Stock Exchange (“NYSE”) under the symbol “NRZ.” New Residential has elected and intends to qualify to be taxed as a REIT for U.S. federal income tax purposes. As such, New Residential will generally not be subject to U.S. federal corporate income tax on that portion of its net income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. See Note 19 - Income Taxes, for additional information regarding New Residential’s taxable REIT subsidiaries. New Residential, through its wholly-owned subsidiaries New Residential Mortgage LLC (“NRM”) and NewRez LLC (“NewRez”), is licensed or otherwise eligible to service residential mortgage loans in all states within the United States and the District of Columbia. Each of NRM and NewRez is also approved to service mortgage loans on behalf of investors, including the Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”) (collectively, Government Sponsored Enterprises or “GSEs”) and, solely in the case of NewRez, Government National Mortgage Association (“Ginnie Mae”). NewRez is also eligible to perform servicing on behalf of other servicers (subservicing). NewRez originates, sells and securitizes conventional (conforming to the underwriting standards of Fannie Mae or Freddie Mac; collectively referred to as “Agency” loans), government-insured (Federal Housing Administration (“FHA”) and Department of Veterans Affairs (“VA”)), and U.S. Department of Agriculture (“USDA”) and non-qualified (“Non-QM”) residential mortgage loans. The GSEs or Ginnie Mae guarantee securitizations completed under their applicable policies and guidelines. New Residential generally retains the right to service the underlying residential mortgage loans sold and securitized by NewRez. NRM and NewRez are required to conduct aspects of their operations in accordance with applicable policies and guidelines published by FHA, Fannie Mae and Freddie Mac in order to maintain those approvals. New Residential has entered into a management agreement (the “Management Agreement”) with FIG LLC (the “Manager”), an affiliate of Fortress Investment Group LLC (“Fortress”), pursuant to which the Manager provides a management team and other professionals who are responsible for implementing New Residential’s business strategy, subject to the supervision of New Residential’s board of directors. For its services, the Manager is entitled to management fees and incentive compensation, both defined in, and in accordance with the terms of, the Management Agreement. As of December 31, 2019 , New Residential conducted its business through the following segments: (i) Origination, (ii) Servicing, (iii) MSR Related Investments, (iv) Residential Securities and Loans, (v) Consumer Loans and (vi) Corporate. Approximately 2.4 million shares of New Residential’s common stock were held by Fortress, through its affiliates, as of December 31, 2019 . In addition, Fortress, through its affiliates, held options relating to approximately 10.5 million shares of New Residential’s common stock as of December 31, 2019 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting — The accompanying consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP’’ or “US GAAP”). The consolidated financial statements include the accounts of New Residential and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. New Residential consolidates those entities in which it has control over significant operating, financial and investing decisions of the entity, as well as those entities deemed to be variable interest entities (“VIEs”) in which New Residential is determined to be the primary beneficiary. For entities over which New Residential exercises significant influence, but which do not meet the requirements for consolidation, New Residential uses the equity method of accounting whereby it records its share of the underlying income of such entities. Distributions from equity method investees are classified in the Statements of Cash Flows based on the cumulative earnings approach, where all distributions up to cumulative earnings are classified as distributions of earnings. Certain prior period amounts have been reclassified to conform to the current period’s presentation. Risks and Uncertainties — In the normal course of business, New Residential encounters primarily two significant types of economic risk: credit and market. Credit risk is the risk of default on New Residential’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of investments due to changes in prepayment rates, interest rates, spreads or other market factors, including risks that impact the value of the collateral underlying New Residential’s investments. New Residential believes that the carrying values of its investments are reasonable taking into consideration these risks along with estimated prepayments, financings, collateral values, payment histories, and other information. Furthermore, for each of the periods presented, a significant portion of New Residential’s assets are dependent on its servicers’ and subservicers’ ability to perform their obligations servicing the loans underlying New Residential’s Excess MSRs, MSRs, MSR Financing Receivables, Servicer Advance Investments, Non-Agency RMBS and loans. If a servicer is terminated, New Residential’s right to receive its portion of the cash flows related to interests in servicing related assets may also be terminated. Additionally, New Residential is subject to significant tax risks. If New Residential were to fail to qualify as a REIT in any taxable year, New Residential would be subject to U.S. federal corporate income tax (including any applicable alternative minimum tax), which could be material. Unless entitled to relief under certain statutory provisions, New Residential would also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification is lost. Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Comprehensive Income — Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances, excluding those resulting from investments by and distributions to owners. For New Residential’s purposes, comprehensive income represents net income, as presented in the Consolidated Statements of Income, adjusted for unrealized gains or losses on securities available for sale. INCOME RECOGNITION Investments in Excess Mortgage Servicing Rights — Excess MSRs are aggregated into pools as applicable; each pool of Excess MSRs is accounted for in the aggregate. Interest income for Excess MSRs is accreted into interest income on an effective yield or “interest” method, based upon the expected excess mortgage servicing amount through the expected life of the underlying mortgages. Changes to expected cash flows result in a cumulative retrospective adjustment, which will be recorded in the period in which the change in expected cash flows occurs. Under the retrospective method, the interest income recognized for a reporting period is measured as the difference between the amortized cost basis at the end of the period and the amortized cost basis at the beginning of the period, plus any cash received during the period. The amortized cost basis is calculated as the present value of estimated future cash flows using an effective yield, which is the yield that equates all past actual and current estimated future cash flows to the initial investment. In addition, New Residential’s policy is to recognize interest income only on its Excess MSRs in existing eligible underlying mortgages. The difference between the fair value of Excess MSRs and their amortized cost basis is recorded as “Change in fair value of investments in excess mortgage servicing rights.” Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the Excess MSRs, and therefore may differ from their effective yields. Investments in MSRs — MSRs are aggregated into pools as applicable; each pool of MSRs is accounted for in the aggregate. Income from MSRs is recorded in “Servicing revenue, net” and is comprised of three components: (i) income receivable from the MSRs, less (ii) amortization of the basis of the MSRs, plus or minus (iii) the mark-to-market on the MSRs. Amortization of the basis of the MSRs is based on the remaining UPB of the residential mortgage loans underlying the MSRs relative to their UPB at acquisition. Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the MSRs. Investments in MSR Financing Receivables — In certain cases, New Residential has legally purchased MSRs or the right to the economic interest in MSRs; however, New Residential has determined that the purchase agreement would not be treated as a sale under GAAP. Therefore, rather than recording an investment in MSRs, New Residential records an investment in mortgage servicing rights financing receivables. Income from this investment (net of subservicing fees) is recorded as interest income, and New Residential has elected to measure the investment at fair value, with changes in fair value flowing through change in fair value of investments in mortgage servicing rights financing receivables in the Consolidated Statements of Income. Servicer Advance Investments — New Residential accounts for its Servicer Advance Investments similarly to its investments in Excess MSRs. Interest income for Servicer Advance Investments is accreted into interest income on an effective yield or “interest” method, based upon the expected aggregate cash flows of the Servicer Advance Investments, including the basic fee component of the related MSR (but excluding any Excess MSR component) through the expected life of the underlying mortgages, net of a portion of the basic fee component of the MSR that New Residential remits to the servicer as compensation for the servicer’s servicing activities. Changes to expected cash flows result in a cumulative retrospective adjustment, which will be recorded in the period in which the change in expected cash flows occurs. Refer to “—Investments in Excess Mortgage Servicing Rights” for a description of the retrospective method. Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the Servicer Advance Investments, and therefore may differ from their effective yields. Investments in Real Estate and Other Securities — Discounts or premiums are accreted into interest income on an effective yield or “interest” method, based upon a comparison of actual and expected cash flows, through the expected maturity date of the security. For securities acquired at a discount for credit quality (i.e., where it is probable at acquisition that New Residential will not collect all contractually required interest and principal repayments), the difference between contractual cash flows and expected cash flows at acquisition is not accreted (non-accretable difference). For these securities, the excess of expected cash flows over the carrying value (accretable yield) is recognized as interest income on an effective yield basis. Depending on the nature of the investment, changes to expected cash flows may result in a prospective change to yield or a retrospective change which would include a catch up adjustment. Deferred fees and costs, if any, are recognized as an adjustment to the interest income over the terms of the securities using the interest method. Upon settlement of securities, the specific identification method is used to determine the excess (or deficiency) of net proceeds over the net carrying value of such security recognized as a realized gain (or loss) in the period of settlement. Investments in Residential Mortgage Loans, REO and Consumer Loans — New Residential evaluates the credit quality of its loans, as of the acquisition date, for evidence of credit quality deterioration. Loans with evidence of credit deterioration since their origination, and where it is probable that New Residential will not collect all contractually required principal and interest payments, are Purchased Credit Deteriorated (“PCD”) loans. At acquisition, New Residential aggregates PCD loans into pools based on common risk characteristics and the aggregated loans are accounted for as if each pool were a single loan with a single composite interest rate and an aggregate expectation of cash flows. The excess of the total cash flows (both principal and interest) expected to be collected over the carrying value of the PCD loans is referred to as the accretable yield. This amount is not reported on New Residential’s Consolidated Balance Sheets but is accreted into interest income at a level rate of return over the remaining estimated life of the pool of loans. Loans where New Residential expects to collect all contractually required principal and interest payments are considered performing loans. Interest income on performing loans is accrued and recognized as interest income at their effective yield, which includes contractual interest and the amortization of purchase price discount or premium and deferred fees or expenses, and considers anticipated prepayment rates. Loans acquired with the intent to sell and loans not acquired with the intent to sell that New Residential decides to sell are classified as held-for-sale. Loans held-for-sale are measured at the lower of cost or fair value, with valuation changes recorded in impairment. Purchase price discounts or premiums are deferred in a contra loan account until the related loan is sold. The deferred discounts or premiums are an adjustment to the basis of the loan and are included in the quarterly determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. Residential mortgage loans, held-for-sale, at fair value are originated or acquired loans for which New Residential has elected to account for at fair value. Accordingly, we estimate the fair value of the residential mortgage loans, held-for-sale, at fair value at each reporting date and reflect the change in the fair value in the Consolidated Statements of Income. For originated residential mortgage loans measured at fair value, we report the change in the fair value within gain on originated mortgage loans, held-for-sale, net in the consolidated statements of income. Fair value is generally determined using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. For acquired residential mortgage loans measured at fair value, we report the change in the fair value within change in fair value of investments in residential mortgage loans in the consolidated statements of income. Fair value is generally determined by discounting the expected future cash flows using inputs such as default rates, prepayment speeds and discount rates. Interest earned on residential mortgage loans measured at fair value are reported in other income. Real estate owned (“REO”) assets are those individual properties acquired by New Residential or where New Residential receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession). New Residential measures REO assets at the lower of cost or fair value, with valuation changes recorded in other income or impairment, as applicable. Impairment of Securities — Securities are considered to be impaired when it is probable that New Residential will be unable to collect all principal or interest when due according to the contractual terms of the original agreements, or for securities purchased at a discount for credit quality or that represent retained beneficial interests in securitizations, when New Residential determines that it is probable that it will be unable to collect as anticipated. The evaluation of a security’s estimated cash flows includes the following, as applicable: (i) review of the credit of the issuer or borrower, (ii) review of the credit rating of the security, (iii) review of the key terms of the security or underlying loans, (iv) review of the performance of the underlying loans, including debt service coverage and loan to value ratios, (v) analysis of the value of the underlying loans, (vi) analysis of the effect of local, industry and broader economic factors, and (vii) analysis of historical and anticipated trends in defaults, loss severities and prepayments for similar securities or underlying loans. New Residential must record a write down if it has the intent to sell a given security in an unrealized loss position, or if it is more likely than not that it will be required to sell such a security. Upon determination of impairment, New Residential records a direct write down for securities based on the estimated fair value of the security or underlying collateral using a discounted cash flow analysis or based on an observable market value. Subsequent to a determination of impairment, and a related write down, income on securities is accrued on an effective yield method from the new carrying value to the related expected cash flows, with cash received treated as a reduction of basis. Impairment of Loans — To the extent that they are classified as held-for-investment, New Residential must periodically evaluate each of these loans or loan pools for possible impairment. Impairment is indicated when it is deemed probable that New Residential will be unable to collect all amounts due according to the contractual terms of the loan, or for PCD loans, when it is deemed probable that New Residential will be unable to collect as anticipated. Upon determination of impairment, New Residential establishes an allowance for loan losses with a corresponding charge to earnings. Performing loans are aggregated into pools for the evaluation of impairment based on like characteristics, such as loan type and acquisition date. Pools of loans are evaluated based on criteria such as an analysis of borrower performance, credit ratings of borrowers, loan to value ratios, the estimated value of the underlying collateral, if any, the key terms of the loans and historical and anticipated trends in defaults and loss severities for the type and seasoning of loans being evaluated. This information is used to estimate provisions for estimated unidentified incurred losses on pools of loans. Significant judgment is required in determining impairment and in estimating the resulting loss allowance. For PCD loans, New Residential estimates the total cash flows expected to be collected over the remaining life of each pool. Probable decreases in expected cash flows trigger the recognition of impairment. Impairments are recognized through the provision for loans and an increase in the allowance for loan losses. Probable and significant increases in expected cash flows would first reverse any previously recorded allowance for loan losses with any remaining increases recognized prospectively as a yield adjustment over the remaining estimated lives of the underlying loans. A loan is determined to be past due when a monthly payment is due and unpaid for 30 days or more. Loans, other than PCD loans, are placed on nonaccrual status and considered non-performing when full payment of principal and interest is in doubt, which generally occurs when principal or interest is 120 days or more past due unless the loan is both well secured and in the process of collection. A loan may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loan. New Residential’s ability to recognize interest income on nonaccrual loans as cash interest payments are received rather than as a reduction of the carrying value of the loans is based on the recorded loan balance being deemed fully collectible. Loans held-for-sale are subject to the nonaccrual policy described above, however, as loans held-for-sale are recognized at the lower of cost or fair value, New Residential’s allowance for loan losses and charge-off policies do not apply to these loans. Accretion and Other Amortization — As reflected on the consolidated statements of cash flows, this item is comprised of the following: Year Ended December 31, 2019 2018 2017 Accretion of net discount on securities and loans (A) $ 323,652 $ 452,500 $ 398,213 Accretion of servicer advances receivable discount and servicer advance investments 28,094 214,876 542,983 Accretion of excess mortgage servicing rights income 32,647 44,440 103,053 Amortization of deferred financing costs (4,019 ) (7,795 ) (12,076 ) Amortization of discount on notes and bonds payable (1,245 ) (2,054 ) (789 ) $ 379,129 $ 701,967 $ 1,031,384 (A) Includes accretion of the accretable yield on PCD loans. Other Income (Loss), Net — This item is comprised of the following: Year Ended December 31, 2019 2018 2017 Unrealized gain (loss) on other ABS $ 2,101 $ 10,283 $ 2,883 Unrealized gain (loss) on notes and bonds payable (1,236 ) (684 ) — Unrealized gain (loss) on contingent consideration (10,487 ) (1,581 ) — Gain (loss) on transfer of loans to REO 11,842 19,519 22,938 Gain (loss) on transfer of loans to other assets (1,144 ) (1,977 ) 488 Gain (loss) on Excess MSR recapture agreements 2,294 979 2,384 Gain (loss) on Ocwen common stock 174 (10,860 ) 5,346 Bargain Purchase Gain (A) 49,539 — — Rental and Ancillary Revenue 21,181 — — Other income (loss) (30,115 ) (26,457 ) (27,741 ) $ 44,149 $ (10,778 ) $ 6,298 (A) Partly driven by certain transition, integration, relocation and training costs incurred by the Ditech Acquisition (Note 3). Gain (Loss) on Settlement of Investments, Net — This item is comprised of the following: Year Ended December 31, 2019 2018 2017 Gain (loss) on sale of real estate securities, net $ 205,989 $ (29,936 ) $ 20,642 Gain (loss) on sale of acquired residential mortgage loans, net 153,174 (7,677 ) 39,731 Gain (loss) on settlement of derivatives (129,923 ) 54,867 (39,214 ) Gain (loss) on liquidated residential mortgage loans (4,872 ) (3,734 ) (10,201 ) Gain (loss) on sale of REO (11,521 ) (12,424 ) (9,215 ) Gains on settlement of investments in excess MSRs and servicer advance investments — 113,002 11,320 Other gains (losses) 12,840 (19,013 ) (2,753 ) $ 225,687 $ 95,085 $ 10,310 EXPENSE RECOGNITION Interest Expense — New Residential finances certain investments using floating rate repurchase agreements and loans. Interest is expensed as incurred. General and Administrative Expenses, Loan Servicing Expense and Subservicing Expense — General and administrative expense primarily include employee compensation, legal fees, audit fees, insurance premiums, and other costs, as well as loan servicing and subservicing expenses, and are expensed as incurred. General and Administrative Expenses is comprised of the following: Year Ended December 31, 2019 2018 2017 Compensation and benefits expense, servicing $ 121,004 $ 47,084 $ 184 Compensation and benefits expense, origination 164,485 62,786 — Legal and professional expense 89,489 45,234 40,182 Loan origination expense 59,418 16,050 — Occupancy expense 19,388 8,868 — Other (A) 84,251 51,557 26,793 $ 538,035 $ 231,579 $ 67,159 (A) Represents miscellaneous general and administrative expenses. Management Fee and Incentive Compensation to Affiliate — These represent amounts due to the Manager pursuant to the Management Agreement. For further information on the Management Agreement, see Note 17. BALANCE SHEET MEASUREMENT Investments in Servicing Related Assets — Servicing related assets consist of New Residential’s Excess MSRs, MSRs, MSR Financing Receivables, and Servicer Advance Investments. Upon acquisition, New Residential has elected to record each of such investments at fair value. New Residential elected to record its investments at fair value in order to provide users of the financial statements with better information regarding the effects of prepayment risk and other market factors on servicing related assets. Under this election, New Residential records a valuation adjustment on its investments in servicing related assets on a quarterly basis to recognize the changes in fair value in net income as described in “Income Recognition — Investments in Excess Mortgage Servicing Rights,” “Income Recognition — Investments in MSRs” and “Income Recognition — Servicer Advance Investments.” The Company recognizes MSRs created through the sale of loans it originates. Under the accounting guidance for transfers and servicing, the Company initially measures a mortgage servicing asset that qualifies for separate recognition at fair value on the date of transfer. Investments in Real Estate and Other Securities — New Residential has classified its investments in real estate and other securities as available for sale. Securities available for sale are carried at market value with the net unrealized gains or losses reported as a separate component of accumulated other comprehensive income, to the extent impairment losses are considered temporary. At disposition, the net realized gain or loss is determined on the basis of the amortized cost of the specific investments and is included in earnings. Unrealized losses on securities are charged to earnings if they reflect a decline in value that is other-than-temporary. Investments in Residential Mortgage Loans and Consumer Loans — Loans for which New Residential has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are classified as held-for-investment. Performing loans held-for-investment are presented at the aggregate unpaid principal balance adjusted for any unamortized premium or discount, deferred fees or expenses, an allowance for loan losses, charge-offs and write-down for impaired loans. PCD loans held-for-investment are initially recorded at their purchase price at acquisition and are subsequently measured net of any allowance for loan losses. To the extent that the loans are classified as held-for-investment, New Residential periodically evaluates such loans for possible impairment as described in “—Impairment of Loans.” Loans which New Residential does not have the intent or the ability to hold into the foreseeable future are considered held-for-sale and are either carried at (i) the lower of their amortized cost basis or fair value or (ii) fair value where elected. New Residential discontinues the accretion of discounts or amortization of premiums on loans if they are reclassified from held-for-investment to held-for-sale. Mortgage Loan Repurchases — NewRez, as an approved issuer of Ginnie Mae MBS, originates, sells and securitizes government-insured residential mortgage loans into Ginnie Mae guaranteed securitizations and NewRez retains the right to service the underlying residential mortgage loans. As the servicer, NewRez, holds an option to repurchase delinquent loans from the securitization at its discretion (the “Ginnie Mae Buy-Back Option”). In accordance with the accounting guidance in ASC 860, NewRez recognizes any delinquent loans subject to the Ginnie Mae Buy-Back Option and an offsetting repurchase liability on its balance sheet regardless of whether NewRez executes its option to repurchase. Cash and Cash Equivalents and Restricted Cash — New Residential considers all highly liquid short-term investments with maturities of 90 days or less when purchased to be cash equivalents. Substantially all amounts on deposit with major financial institutions exceed insured limits. As of December 31, 2019 and 2018 , New Residential held: (i) $64.0 million and $60.0 million , respectively, of restricted cash related to the financing of servicer advances that has been pledged to the note holders for interest and fees payable, (ii) $0.0 million and $1.9 million , respectively, of restricted cash related to financing requirements of the corporate notes secured by Excess MSRs (Note 12), (iii) $4.7 million and $4.1 million , respectively, of restricted cash related to Ginnie Mae Excess MSRs, (iv) $32.4 million and $37.6 million , respectively, of restricted cash related to the financing of consumer loans, and (v) $61.1 million and $60.4 million , respectively, of restricted cash related to MSRs. Servicer Advances Receivable — Represents servicer advances due to New Residential’s servicer subsidiary, NRM (Note 6). The servicer advances receivable purchased in conjunction with MSRs are recorded with purchase discounts. Subsequent advances are recorded at cost, subject to impairment. Any related purchase discounts are accreted into servicing revenue, net (MSRs) or interest income (MSR financing receivables) on a straight-line basis over the estimated weighted average life of the advances. Income Taxes — New Residential operates so as to qualify as a REIT under the requirements of the Internal Revenue Code of 1986, as amended. Requirements for qualification as a REIT include various restrictions on ownership of New Residential’s stock, requirements concerning distribution of taxable income and certain restrictions on the nature of assets and sources of income. A REIT must distribute at least 90% of its taxable income to its stockholders (subject to certain adjustments). Distributions may extend until timely filing of New Residential’s tax return in the subsequent taxable year. Qualifying distributions of taxable income are deductible by a REIT in computing taxable income. Certain activities of New Residential are conducted through taxable REIT subsidiaries (“TRSs”) and therefore are subject to federal and state income taxes. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases upon the change in tax status. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. New Residential recognizes tax benefits for uncertain tax positions only if it is more likely than not that the position is sustainable based on its technical merits. Interest and penalties on uncertain tax positions are included as a component of the provision for income taxes on the consolidated statements of operations. Other Assets and Other Liabilities — Other assets and liabilities are comprised of the following: Other Assets Accrued Expenses and Other Liabilities December 31, December 31, 2019 2018 2019 2018 Margin receivable, net (A) $ 280,176 $ 145,857 MSRs purchase price holdback 75,348 100,593 Servicing fee receivables 159,607 105,563 Interest payable 68,668 49,352 Due from servicers 163,961 95,261 Accounts payable 119,771 75,591 Principal and interest receivable 85,191 76,015 Derivative liabilities (Note 11) 6,885 29,389 Equity investment (B) 114,763 74,323 Due to servicers 127,846 95,419 Other receivables 117,045 23,723 Residential mortgage loan repurchase liability 172,336 121,602 Real Estate Owned 93,672 113,410 Contingent Consideration 55,222 40,842 Single-family rental properties 24,133 — Accrued Compensation and Benefits 41,228 17,656 Residential mortgage loans subject to repurchase 172,336 121,602 Excess spread financing, at fair value 31,777 39,304 Consumer loans, equity method investees (Note 10) — 38,294 Operating lease liability 38,520 — Goodwill 29,737 24,645 Reserve for sales recourse 12,549 5,880 Notes Receivable (D) 37,001 — Other liabilities 22,976 36,484 Warrants 28,042 — $ 773,126 $ 612,112 Recovery asset (E) 23,100 — Property and equipment 18,018 11,263 Receivable from government agency (C) 19,670 20,795 Intangible assets 40,963 18,708 Prepaid expenses 19,249 29,165 Operating lease right-of-use asset 32,120 — Derivative assets (Note 11) 41,501 10,893 Ocwen common stock, at fair value 7,952 7,778 Other assets 51,230 44,419 $ 1,559,467 $ 961,714 (A) Represents collateral posted primarily as a result of changes in fair value of our 1) real estate securities securing our repurchase agreements and 2) derivative instruments. (B) Represents equity investments in funds that invest in 1) a commercial redevelopment project and 2) operating companies in the single family housing industry. The indirect investments are accounted for at fair value based on the net asset value (“NAV”) of New Residential’s investment and as an equity method investment, respectively. (C) Represents claims receivable from the FHA on EBO and reverse mortgage loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee. (D) Represents a four-year subordinated debt facility to Covius (Note 3). (E) Represents post loan charge off deficiency balances acquired through the Ditech Acquisition (Note 3). Goodwill — As a result of the Shellpoint and Guardian acquisitions, New Residential recorded goodwill for the consideration transferred in excess of the fair value of the net identifiable assets acquired. New Residential performs an annual assessment of goodwill on October 1 and in interim periods in case of events or circumstances that make it more likely than not that an impairment may have occurred. New Residential did not recognize any impairment this year. Intangible Assets — As a result of the Shellpoint, Guardian and Ditech acquisitions, New Residential identified intangible assets in the form of licenses, customer relationships, business relationships, and tradename. New Residential recorded the intangible assets at fair value at the acquisition date and will amortize the value of finite lived intangibles into expense over the expected useful life. The licenses acquired as part of the Shellpoint acquisition and the tradename acquired as part of the Guardian acquisition were deemed to have an indefinite useful life and will be evaluated for impairment on a quarterly basis and the fair value will be assessed annually and in interim periods if indicators of impairment exist. New Residential performs an annual assessment of impairment on October 1 and in interim periods in case of events or circumstances that make it more likely than not that an impairment may have occurred. New Residential did not recognize any impairment this year. Repurchase Agreements and Notes and Bonds Payable — New Residential’s repurchase agreements are generally short-term |
BUSINESS ACQUISITIONS
BUSINESS ACQUISITIONS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITIONS | BUSINESS ACQUISITIONS New Residential completed the Shellpoint acquisition in 2018 and the Guardian and Ditech acquisitions in 2019 as part of its strategy to expand its residential origination, servicing and asset management capabilities. New Residential accounted for these transactions using the acquisition method which requires, among other things, that the assets acquired and liabilities assumed be recognized at fair value as of the acquisition date. In a business combination, the initial allocation of the purchase price is considered preliminary and therefore subject to change until the end of the measurement period (up to one year from the acquisition date). Goodwill is calculated as the excess of the purchase price over the net assets recognized and represents synergies and benefits expected to result from combining operations and adding in-house servicing, asset origination and recapture capabilities. Purchase Price Allocation New Residential has performed an allocation of the total consideration paid to acquire the assets and liabilities of the companies acquired, as set forth below. 2019 2018 Ditech Guardian Total Shellpoint Total Consideration ($ in millions) $ 1,218.2 $ 21.5 $ 1,239.7 $ 425.5 Assets Mortgage servicing rights, at fair value (A) $ 387.2 $ — $ 387.2 $ 286.6 Residential mortgage loans, held-for-investment, at fair value — — — 125.3 Residential mortgage loans, held-for-sale, at fair value 627.4 — 627.4 488.2 Residential mortgage loans subject to repurchase — — — 121.4 Cash and cash equivalents — 1.8 1.8 79.2 Restricted cash — — — 9.9 Servicer Advance Receivable 238.0 — 238.0 22.4 Intangible assets (B) (C) (D) 10.5 11.7 22.2 18.4 Other assets (E) 64.8 6.6 71.4 59.1 Total Assets Acquired $ 1,327.9 $ 20.1 $ 1,348.0 $ 1,210.5 Liabilities Repurchase agreements $ — $ — $ — $ 439.6 Notes and bonds payable — — — 20.7 Mortgage-backed securities issued, at fair value — — — 120.7 Residential mortgage loans repurchase liability — — — 121.4 Excess spread financing, at fair value — — — 48.3 Accrued expenses and other liabilities 60.2 3.7 63.9 50.6 Total Liabilities Assumed $ 60.2 $ 3.7 $ 63.9 $ 801.3 Noncontrolling Interest $ — $ — $ — $ 8.3 Net Assets $ 1,267.7 $ 16.4 $ 1,284.1 $ 400.9 Goodwill (Bargain Purchase Gain) $ (49.5 ) $ 5.1 $ (44.4 ) $ 24.6 (A) Includes $135.3 million of Ginnie Mae MSRs related to the Shellpoint acquisition where New Residential acquired the rights to the economic value of the servicing rights from Shellpoint prior to the acquisition date. (B) Includes intangible assets acquired as part of the Ditech acquisition in the form of correspondent customer relationships and servicing contracts tied to the recovery of defaulted loans. These intangibles will be amortized over a finite life of three years based on the expected useful life of these intangibles. (C) Includes intangible assets acquired as part of the Guardian acquisition in the form of customer relationships and a tradename. Customer relationships will be amortized over a finite life of seven years based on the expected useful life of these intangibles. New Residential has determined that the tradename has an indefinite useful life and will be evaluated for impairment given no legal, regulatory, contractual, competitive or economic factors that would limited useful life. (D) Includes intangible assets acquired as part of the Shellpoint acquisition in the form of mortgage origination and servicing licenses, internally developed software and a tradename. New Residential determined that mortgage origination and servicing licenses have an indefinite useful life and will be evaluated for impairment given no legal, regulatory, contractual, competitive or economic factors that would limit the useful life. Internally developed software will be amortized over a finite useful life of five years and tradenames were fully amortized over six months , respectively, based on the expected software development timeline and New Residential’s determination of the time to change a tradename with limited value. (E) Includes post loan charge off deficiency balances acquired through the Ditech Acquisition. Throughout the measurement period for the Ditech and Guardian acquisitions, the allocation of total consideration may differ from the amounts included herein to reflect new information obtained, primarily related to the valuation of intangible assets acquired as part of both acquisitions. Any measurement period adjustments that New Residential identifies and determines to be material will be applied retrospectively to the period of acquisition, as well as any applicable subsequent periods. Acquisition of select Assets and Liabilities from Ditech Holding Corporation On June 17, 2019, New Residential, entered into a “stalking-horse” Asset Purchase Agreement (the “APA”) with Ditech Holding Corporation, a Maryland corporation (“Holding”), and Ditech Financial LLC, a Delaware limited liability company (“Financial” and together with Holding, the “Sellers” or “Ditech”) to acquire certain assets and assume certain liabilities under the APA based on the value of the acquired assets and assumed liabilities as calculated in accordance with the terms of the APA, subject to certain adjustments. Ditech filed voluntary petitions for relief under Chapter 11 of the Bankruptcy code, in the United States Bankruptcy Court for the Southern District of New York (“Bankruptcy Court”). The proposed sale was conducted through a Bankruptcy Court-supervised process, subject to Bankruptcy Court-approved bidding procedures, with the potential receipt of higher or better offers from competing bidders at auction, the approval of the sale by the Bankruptcy Court, and the satisfaction of certain conditions. As the stalking horse bidder, the Company’s offer to acquire the assets and assume the liabilities, as set forth in the APA, set the standard by which any other qualifying bids would be evaluated. Upon conclusion of the competitive bidding process, Ditech decided to proceed with New Residential’s stalking horse bid, as amended and sought the Bankruptcy Court’s approval. On October 1, 2019, New Residential Investment Corp (“Ditech Purchaser”) completed the acquisition (“Ditech Acquisition”) contemplated by the APA dated June 17, 2019, as amended, by and among the Ditech Purchaser and Ditech. Pursuant to the APA, Ditech sold, transferred, and assigned to the Ditech Purchaser (and its certain designated subsidiaries) the acquired assets, as defined in the APA, and the Ditech Purchaser (and its certain designated subsidiaries) assumed the liabilities, as defined in the APA, for cash consideration of $1.2 billion . The acquisition included certain Fannie Mae, Ginnie Mae and non-agency MSRs, the servicer advance receivables relating to such MSRs and other assets core to certain origination and servicing businesses at Ditech. Additionally, New Residential assumed certain Ditech office spaces and added approximately 1,100 Ditech employees to support the increase in volume to its existing origination and servicing operations. The acquisition of assets from the bankruptcy estate of Ditech along with the subsequent hiring of Ditech employees was accounted for as a business acquisition rather than an asset acquisition. Upon completing the Ditech Acquisition, the consideration transferred by the Ditech Purchaser for the acquired assets and assumed liabilities was determined to be less than the net assets acquired from Ditech resulting in an economic gain (“Bargain Purchase”). New Residential completed the required reassessment to validate that all assets acquired and liabilities assumed on the acquisition date had been identified and appropriately measured in accordance with ASC 805. Based on the reassessment, the transaction resulted in a Bargain Purchase gain of $49.5 million , which has been included in Other income (loss), net within the Consolidated Statements of Income for the year ended December 31, 2019 . The Bargain Purchase gain resulted from certain transition, integration, relocation and training costs that were factored into the purchase price and identified as future liabilities, of which approximately $22.9 million were incurred during the year ended December 31, 2019 . The results of Ditech’s operations have been included in New Residential’s Consolidated Statements of Income for the year ended December 31, 2019 from the date of acquisition and represent $134.5 million and $104.7 million of revenue and net income, respectively. The acquisition date fair value of the consideration transferred includes $1.2 billion in cash consideration and $4.9 million in effective settlement of preexisting relationships. The total consideration is summarized as follows: Total Consideration (in millions) Amount Cash Consideration $ 1,213.3 Effective Settlement of Preexisting Relationships (A) 4.9 Total Consideration $ 1,218.2 (A) Represents the effective settlement of preexisting relationships between New Residential and Ditech related to operating accounts receivable and payable existing prior to the acquisition date. The effective settlement of these preexisting relationships had no impact to New Residential’s Consolidated Statements of Income. New Residential recognized the effective settlement of preexisting relationships separately from the acquisition of assets and assumption of liabilities in the business combination. Unaudited Supplemental Pro Forma Financial Information — The following table presents unaudited pro forma combined Servicing and Origination Revenue, which is comprised of 1) servicing revenue, net and 2) gain on originated mortgage loans, held-for-sale, net, and Income Before Income Taxes for the years ended December 31, 2019 and 2018 prepared as if the Ditech Acquisition had been consummated on January 1, 2018. Years Ended December 31, 2019 2018 Pro Forma (in millions) Servicing and Origination Revenue $ 1,104.0 $ 1,238.1 Income Before Income Taxes 552.8 923.3 The unaudited supplemental pro forma financial information has not been adjusted for transactions other than the Ditech Acquisition, or for the conforming of accounting policies. The unaudited supplemental pro forma financial information does not include any anticipated synergies or other anticipated benefits of the Ditech Acquisition and, accordingly, the unaudited supplemental pro forma financial information is not necessarily indicative of either future results of operations or results that might have been achieved had the Ditech Acquisition occurred on January 1, 2018. Acquisition of Guardian Asset Management On August 19, 2019, NRZ Guardian Purchaser LLC (“Guardian Purchaser”), entered into an agreement to acquire 100% of the shares of DDG RE Investments LLC d/b/a Guardian Asset Management (“Guardian”). On September 3, 2019, the Guardian Purchaser acquired 100% of the outstanding interests of Guardian for cash consideration of $7.6 million (“Guardian Acquisition”). As additional consideration for the Guardian Acquisition, the Guardian Purchaser may make up to four cash earnout payments, which will be calculated as the amount of cumulative Guardian earnings on specified contracts in excess of certain thresholds up to a maximum of $17.5 million (the “Guardian Earnout Payments”). The Guardian Earnout Payments are classified as contingent consideration recorded at fair value at the acquisition date and included in the total consideration transferred for the Guardian Acquisition. The contingent consideration is subsequently measured at fair value on a quarterly basis with changes in fair value recorded in Other income (loss), net. Guardian is a field services and asset management business and provides New Residential with in-house property management, inspection and repair service capabilities. The results of Guardian's operations have been included in New Residential's Consolidated Statements of Income for the year ended December 31, 2019 from the date of acquisition and represent $14.4 million and $2.9 million of revenue and net income, respectively. The acquisition date fair value of the consideration transferred includes $7.6 million in cash consideration and $13.9 million in contingent consideration. The total consideration is summarized as follows: Total Consideration (in millions) Amount Cash Consideration $ 7.6 Earnout Payment (A) 13.9 Total Consideration $ 21.5 (A) The range of outcomes for this contingent consideration is from $0 to $17.5 million dependent on the performance of Guardian. The goodwill of $5.1 million primarily includes the benefits expected to result from adding in-house property management and repair services has been allocated to the Servicing reporting segment. The full amount of goodwill of $5.1 million is expected to be deductible for tax purposes. New Residential will assess the goodwill annually on October 1 and in interim periods in case of events or circumstances make it more likely than not that an impairment may have occurred. Based on New Residential’s assessment performed, there were no indicators of impairment as of December 31, 2019 . Unaudited Supplemental Pro Forma Financial Information — The following table presents unaudited pro forma combined Income Before Income Taxes for the years ended December 31, 2019 and 2018 prepared as if the Guardian Acquisition had been consummated on January 1, 2018. Years Ended December 31, 2019 2018 Pro Forma (in millions) Income Before Income Taxes $ 651.5 $ 932.2 The unaudited supplemental pro forma financial information has not been adjusted for transactions other than the Guardian Acquisition, or for the conforming of accounting policies. The unaudited supplemental pro forma financial information does not include any anticipated synergies or other anticipated benefits of the Guardian Acquisition and, accordingly, the unaudited supplemental pro forma financial information is not necessarily indicative of either future results of operations or results that might have been achieved had the Guardian Acquisition occurred on January 1, 2018. Acquisition of Shellpoint Partners LLC On November 29, 2017, NRM Acquisition LLC (the “Shellpoint Purchaser”), a Delaware limited liability company and a wholly owned subsidiary of New Residential, entered into a Securities Purchase Agreement (the “Shellpoint SPA”) to acquire Shellpoint Partners LLC, a Delaware limited liability company (“Shellpoint”). Shellpoint is a vertically integrated mortgage platform with established origination and servicing capabilities and provides New Residential with in-house servicing, asset origination and recapture capabilities. On July 3, 2018, the Shellpoint Purchaser acquired 100% of the outstanding equity interests of Shellpoint for a cash purchase price of $212.3 million (the “Shellpoint Acquisition”). As additional consideration for the Shellpoint Acquisition, the Shellpoint Purchaser may make up to three cash earnout payments, which will be calculated following each of the first three anniversaries of the Shellpoint closing as a percentage of the amount by which the pre-tax income of certain of Shellpoint’s businesses exceeds certain specified thresholds, up to an aggregate maximum amount of $60.0 million (the “Shellpoint Earnout Payments”). The Shellpoint Earnout Payments are classified as contingent consideration recorded at fair value at the acquisition date and included in the total consideration transferred for the Shellpoint Acquisition. The contingent consideration is subsequently measured at fair value on a quarterly basis with changes in fair value recorded in Other income (loss), net. As of December 31, 2019 , New Residential had paid out $10.0 million of the Shellpoint Earnout Payments and is expected to pay the remaining amounts by September 2021. Once a payment has been made the sellers have no requirement to refund the payment even if the business does not exceed the specified thresholds in subsequent periods. The results of Shellpoint’s operations have been included in the Company’s Consolidated Statements of Income for the years ended December 31, 2019 and 2018 and represent $780.7 million and $177.4 million of revenue and $359.0 million and $26.8 million of net income, respectively. The acquisition date fair value of the consideration transferred includes $212.3 million in cash consideration, $39.3 million in contingent consideration and $173.9 million in effective settlement of preexisting relationships. The total consideration is summarized as follows: Total Consideration (in millions) Amount Cash Consideration $ 212.3 Earnout Payment (A) 39.3 Effective Settlement of Preexisting Relationships (B) 173.9 Total Consideration $ 425.5 (A) The range of outcomes for this contingent consideration is from $0 to $60.0 million , dependent on the performance of Shellpoint. At acquisition date, New Residential derived a fair value of the remaining contingent consideration payment in three years of $39.3 million . This amount excludes contingent payments to the long-term employee incentive plans that require continuing employment and are recognized as compensation expense within General and Administrative expenses in the post-acquisition consolidated financial statements separate from New Residential’s acquisition of assets and assumption of liabilities in the business combination. As of December 31, 2019 , the contingent consideration had a fair value of $40.9 million . (B) Represents the effective settlement of preexisting relationships between New Residential and Shellpoint. The effective settlement of these preexisting relationships had no impact to New Residential’s Consolidated Statements of Income. The final amount and allocation of total consideration reflects certain measurement period adjustments identified during the fourth quarter of 2018, including the effect on earnings that would have been recorded during the third quarter of 2018 had the accounting been completed at the acquisition date. Such measurement period adjustments included 1) a decrease of $3.5 million in the amount of contingent consideration based upon finalization of the internal valuation, 2) a decrease of $6.4 million to consideration transferred for the effective settlement of existing relationships, 3) an increase of $14.1 million to the fair value of identifiable intangible assets based upon receipt of the final valuation report from a third-party valuation firm, and 4) an increase of $0.3 million to other assets due to a decrease in the fair value discount on certain servicing advance receivables. These measurement period adjustments resulted in a corresponding decrease to goodwill in the amount of $24.3 million . The goodwill of $24.6 million primarily includes the synergies and benefits expected to result from combining operations with Shellpoint and adding in-house servicing, asset origination and recapture capabilities and has been allocated to the Servicing and Origination reporting segment. The full amount of goodwill for tax purposes of $24.6 million is expected to be deductible. New Residential will assess the goodwill annually on October 1 and in interim periods in case of events or circumstances make it more likely than not that an impairment may have occurred. Based on New Residential’s assessment performed, there were no indicators of impairment as of December 31, 2019 . Certain transactions were recognized separately from New Residential’s acquisition of assets and assumption of liabilities in the business combination. These separately recognized transactions include 1) contingent payments to Shellpoint’s employees and 2) effective settlement of preexisting relationships discussed above, including 1) MSR acquisitions, 2) a note payable and 3) operating accounts receivable and payable existing prior to the acquisition date. Unaudited Supplemental Pro Forma Financial Information — The following table presents unaudited pro forma combined Servicing and Origination Revenue, which is comprised of 1) servicing revenue, net and 2) gain on originated mortgage loans, held-for-sale, net, and Income Before Income Taxes for the years ended December 31, 2018 and 2017 prepared as if the Shellpoint Acquisition had been consummated on January 1, 2017. Years Ended December 31, 2018 2017 Pro Forma (in millions) Servicing and Origination Revenue $ 767.0 $ 749.0 Income Before Income Taxes 948.1 1,197.5 The unaudited supplemental pro forma financial information has not been adjusted for transactions other than the Shellpoint Acquisition, or for the conforming of accounting policies. The unaudited supplemental pro forma financial information does not include any anticipated synergies or other anticipated benefits of the Shellpoint Acquisition and, accordingly, the unaudited supplemental pro forma financial information is not necessarily indicative of either future results of operations or results that might have been achieved had the Shellpoint Acquisition occurred on January 1, 2017. Strategic Investment in Covius Holdings Inc. On May 1, 2019, New Residential made a strategic investment in Covius, a leading provider of technology-enabled services to the mortgage industry. Covius provides settlement and title, document and letter fulfillment, regulatory compliance, quality assurance, commercial and residential loan due diligence and business process automation services. New Residential invested $27.3 million in common stock for a non-controlling interest in Covius, with an option to increase its ownership position through specified future investments and $35.0 million in a four-year subordinated debt facility. New Residential determined that the investment should be accounted for under the equity method of accounting since it has the ability to exercise significant influence over the investee’s operating and financial policies. As the consideration transferred for the investment was greater than the net equity of the investment (“basis differences”), the company allocated the basis difference in a manner consistent with business combination accounting resulting in goodwill of $11.8 million , and intangible assets primarily in the form of customer backlog and tradename of $ 3.6 million . Goodwill and intangibles are included as part of Equity investments within Other assets on the Consolidated Balance Sheets. The results of the investment have been included in New Residential's Consolidated Statements of Income for the year ended December 31, 2019 from the date of the Company’s investment. The goodwill of $11.8 million primarily includes the benefits expected to result from having a significant investment in the service provider and has been allocated to the MSR Related Investments reporting segment. None of the goodwill is expected to be deductible for tax purposes. New Residential will assess the goodwill annually on October 1 and in interim periods in case of events or circumstances make it more likely than not that an impairment may have occurred. Based on New Residential’s assessment performed, there were no indicators of impairment as of December 31, 2019 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING New Residential’s portfolio consists of the following segments: (i) Origination, (ii) Servicing, (iii) MSR Related Investments, (iv) Residential Securities and Loans, (v) Consumer Loans and (vi) Corporate, organized based on differences in services and products. The corporate segment consists primarily of general and administrative expenses, management fees and incentive compensation related to the Management Agreement, corporate cash and related interest income. During the fourth quarter of 2019, due to the acquisition of select assets and liabilities from Ditech Holding Corporation that are core to the forward origination and servicing businesses of NewRez, New Residential reevaluated the composition of its reportable segments based on the significance of certain business activities to its operations and performance evaluation, which drive resource allocation. The change to reportable segments is primarily the disaggregation of the origination and servicing businesses from the MSR Related Investments. The new Origination segment includes the origination activities of NewRez and its related title and appraisal ancillary businesses, Avenue 365 and eStreet. The new Servicing segment includes the servicing activities of NewRez. The MSR Related Investments segment includes MSRs, MSR Financing Receivables, Excess MSRs, Servicer Advances Receivable and Servicer Advance Investments, as well as investments in servicing related businesses, including Covius and Guardian. Segment information for prior periods have been restated to reflect this change. Securities owned by New Residential that are collateralized by servicer advances and consumer loans are included in the MSR Related Investments and Consumer Loans segments, respectively. Secured corporate loans effectively collateralized by Excess MSRs are included in the MSR Related Investments segment. Summary financial data on New Residential’s segments is given below, together with a reconciliation to the same data for New Residential as a whole: Servicing and Origination Residential Securities and Loans Origination Servicing MSR Related Investments Elimination (A) Total Servicing and Origination Real Estate Securities Residential Mortgage Loans Consumer Loans Corporate Total Year Ended December 31, 2019 Interest income $ 42,166 $ 34,013 $ 530,225 $ — $ 606,404 $ 744,145 $ 249,673 $ 165,877 $ 31 $ 1,766,130 Interest expense 41,949 1,043 246,294 — 289,286 453,609 158,298 32,558 — 933,751 Net interest income (expense) 217 32,970 283,931 — 317,118 290,536 91,375 133,319 31 832,379 Impairment — — — — — 25,174 (20,607 ) 31,010 — 35,577 Servicing revenue, net (1,605 ) 184,763 250,580 (48,579 ) 385,159 — — — — 385,159 Gain on originated mortgage loans, held-for-sale, net 397,252 1,029 52,991 (51,360 ) 399,912 — 75,543 — — 475,455 Other income (loss) 9,340 5,859 (144,231 ) — (129,032 ) 20,929 75,385 (9,999 ) 1,618 (41,099 ) Operating expenses 258,729 145,813 344,430 (48,579 ) 700,393 3,160 52,745 22,540 189,780 968,618 Income (Loss) Before Income Taxes 146,475 78,808 98,841 (51,360 ) 272,764 283,131 210,165 69,770 (188,131 ) 647,699 Income tax (benefit) expense 39,768 21,396 23,744 (14,179 ) 70,729 — (28,461 ) (502 ) — 41,766 Net Income (Loss) $ 106,707 $ 57,412 $ 75,097 $ (37,181 ) $ 202,035 $ 283,131 $ 238,626 $ 70,272 $ (188,131 ) $ 605,933 Noncontrolling interests in income (loss) of consolidated subsidiaries $ 6,231 $ — $ 4,255 $ — $ 10,486 $ — $ — $ 32,151 $ — $ 42,637 Dividends on Preferred Stock $ — $ — $ — $ — $ — $ — $ — $ — $ 13,281 $ 13,281 Net income (loss) attributable to common stockholders $ 100,476 $ 57,412 $ 70,842 $ (37,181 ) $ 191,549 $ 283,131 $ 238,626 $ 38,121 $ (201,412 ) $ 550,015 Servicing and Origination Residential Securities Origination Servicing MSR Related Investments Elimination (A) Total Servicing and Origination Real Estate Residential Mortgage Loans Consumer Corporate Total December 31, 2019 Investments $ 1,414,528 $ — $ 6,773,353 $ — $ 8,187,881 $ 19,477,728 $ 5,843,983 $ 827,545 $ — $ 34,337,137 Cash and cash equivalents 77,237 32,225 318,714 — 428,176 87,359 1,180 6,514 5,508 528,737 Restricted cash 6,730 15,769 107,328 — 129,827 — — 32,370 — 162,197 Other assets 250,709 204,723 3,420,122 — 3,875,554 5,590,456 174,940 78,740 85,956 9,805,646 Goodwill 11,836 12,809 5,092 — 29,737 — — — — 29,737 Total assets $ 1,761,040 $ 265,526 $ 10,624,609 $ — $ 12,651,175 $ 25,155,543 $ 6,020,103 $ 945,169 $ 91,464 $ 44,863,454 Debt $ 1,304,621 $ 33,412 $ 6,646,159 $ — $ 7,984,192 $ 22,151,110 $ 4,676,849 $ 824,222 $ — $ 35,636,373 Other liabilities 117,328 51,264 451,629 — 620,221 980,415 55,121 16,795 318,269 1,990,821 Total liabilities 1,421,949 84,676 7,097,788 — 8,604,413 23,131,525 4,731,970 841,017 318,269 37,627,194 Total equity 339,091 180,850 3,526,821 — 4,046,762 2,024,018 1,288,133 104,152 (226,805 ) 7,236,260 Noncontrolling interests in equity of consolidated subsidiaries 11,354 — 45,025 — 56,379 — — 22,171 — 78,550 Total New Residential stockholders’ equity $ 327,737 $ 180,850 $ 3,481,796 $ — $ 3,990,383 $ 2,024,018 $ 1,288,133 $ 81,981 $ (226,805 ) $ 7,157,710 Investments in equity method investees $ — $ — $ 165,848 $ — $ 165,848 $ — $ — $ — $ — $ 165,848 Servicing and Origination (B) Residential Securities and Loans Origination Servicing MSR Related Investments Elimination (A) Total Servicing and Origination Real Estate Securities Residential Mortgage Loans Consumer Loans Corporate Total Year Ended December 31, 2018 Interest income $ 12,430 $ 8,148 $ 703,387 $ — $ 723,965 $ 573,539 $ 158,892 $ 206,321 $ 1,506 $ 1,664,223 Interest expense 10,018 264 232,063 — 242,345 240,615 80,910 42,563 — 606,433 Net interest income (expense) 2,412 7,884 471,324 — 481,620 332,924 77,982 163,758 1,506 1,057,790 Impairment — — — — — 30,017 12,061 48,563 — 90,641 Servicing revenue, net (450 ) 63,006 476,224 (10,185 ) 528,595 — — — — 528,595 Gain on originated mortgage loans, held-for-sale, net 100,160 — 4,396 (17,168 ) 87,388 — 8,757 — — 96,145 Other income (loss) 2,067 — 12,216 — 14,283 (72,926 ) 7,699 9,965 (10,406 ) (51,385 ) Operating expenses 96,724 52,251 222,099 (10,185 ) 360,889 1,554 32,424 35,230 179,307 609,404 Income (Loss) Before Income Taxes 7,465 18,639 742,061 (17,168 ) 750,997 228,427 49,953 89,930 (188,207 ) 931,100 Income tax (benefit) expense — — (8,364 ) — (8,364 ) — (65,279 ) 212 — (73,431 ) Net Income (Loss) $ 7,465 $ 18,639 $ 750,425 $ (17,168 ) $ 759,361 $ 228,427 $ 115,232 $ 89,718 $ (188,207 ) $ 1,004,531 Noncontrolling interests in income (loss) of consolidated subsidiaries $ 1,599 $ — $ 1,978 $ — $ 3,577 $ — $ — $ 36,987 $ — $ 40,564 Dividends on Preferred Stock $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Net income (loss) attributable to common stockholders $ 5,866 $ 18,639 $ 748,447 $ (17,168 ) $ 755,784 $ 228,427 $ 115,232 $ 52,731 $ (188,207 ) $ 963,967 Servicing and Origination Residential Securities and Loans Origination Servicing MSR Related Investments Elimination (A) Total Servicing and Origination Real Estate Securities Residential Mortgage Loans Consumer Loans Corporate Total December 31, 2018 Investments $ 608,701 $ — $ 5,860,274 $ — $ 6,468,975 $ 11,636,581 $ 4,102,649 $ 1,110,496 $ — $ 23,318,701 Cash and cash equivalents 40,741 35,886 160,244 — 236,871 49 927 8,279 4,932 251,058 Restricted cash 4,292 2,416 119,693 — 126,401 — — 37,619 — 164,020 Other assets 43,412 84,432 3,382,348 — 3,510,192 4,080,202 131,282 64,802 146,111 7,932,589 Goodwill 11,836 12,809 — — 24,645 — — — — 24,645 Total assets $ 708,982 $ 135,543 $ 9,522,559 $ — $ 10,367,084 $ 15,716,832 $ 4,234,858 $ 1,221,196 $ 151,043 $ 31,691,013 Debt $ 555,423 $ 28,639 $ 6,080,273 $ — $ 6,664,335 $ 11,615,364 $ 3,342,636 $ 1,033,900 $ — $ 22,656,235 Other liabilities 468 4,591 515,156 — 520,215 2,111,868 8,916 13,572 291,912 2,946,483 Total liabilities 555,891 33,230 6,595,429 — 7,184,550 13,727,232 3,351,552 1,047,472 291,912 25,602,718 Total equity 153,091 102,313 2,927,130 — 3,182,534 1,989,600 883,306 173,724 (140,869 ) 6,088,295 Noncontrolling interests in equity of consolidated subsidiaries 7,998 — 52,066 — 60,064 — — 30,561 — 90,625 Total New Residential stockholders’ equity $ 145,093 $ 102,313 $ 2,875,064 $ — $ 3,122,470 $ 1,989,600 $ 883,306 $ 143,163 $ (140,869 ) $ 5,997,670 Investments in equity method investees $ — $ — $ 147,964 $ — $ 147,964 $ — $ — $ 38,294 $ — $ 186,258 (A) Elimination of intercompany transactions related primarily to servicing fees, loan sales, and MSR recaptures. (B) Includes results from July 3, 2018, the date of Shellpoint Acquisition (Note 3). Servicing and Origination Residential Securities and Loans Origination Servicing MSR Related Investments Elimination Total Servicing and Origination Real Estate Securities Residential Mortgage Loans Consumer Loans Corporate Total Year Ended December 31, 2017 Interest income $ — $ — $ 713,413 $ — $ 713,413 $ 431,706 $ 110,087 $ 263,844 $ 629 $ 1,519,679 Interest expense — — 233,587 — 233,587 122,997 51,473 52,808 — 460,865 Net interest income (expense) — — 479,826 — 479,826 308,709 58,614 211,036 629 1,058,814 Impairment — — — — — 10,334 12,593 63,165 — 86,092 Servicing revenue, net — — 424,349 — 424,349 — — — — 424,349 Gain on originated mortgage loans, held-for-sale, net — — — — — — — — — — Other income (loss) — — 174,561 — 174,561 (16,371 ) 16,175 28,075 5,346 207,786 Operating expenses — — 186,330 — 186,330 1,471 31,529 43,552 159,695 422,577 Income (Loss) Before Income Taxes — — 892,406 — 892,406 280,533 30,667 132,394 (153,720 ) 1,182,280 Income tax (benefit) expense — — 166,186 — 166,186 — 1,272 170 — 167,628 Net Income (Loss) $ — $ — $ 726,220 $ — $ 726,220 $ 280,533 $ 29,395 $ 132,224 $ (153,720 ) $ 1,014,652 Noncontrolling interests in income of consolidated subsidiaries $ — $ — $ 11,227 $ — $ 11,227 $ — $ — $ 45,892 $ — $ 57,119 Dividends on Preferred Stock $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Net income (loss) attributable to common stockholders $ — $ — $ 714,993 $ — $ 714,993 $ 280,533 $ 29,395 $ 86,332 $ (153,720 ) $ 957,533 |
INVESTMENTS IN EXCESS MORTGAGE
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS | 12 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS | INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS Direct Investments in Excess MSRs The following table presents activity related to the carrying value of New Residential’s direct investments in Excess MSRs: Servicer Mr. Cooper SLS (A) Ocwen (B) Total Balance as of December 31, 2017 $ 532,233 $ 2,913 $ 638,567 $ 1,173,713 Purchases — — — — Interest income 44,386 54 — 44,440 Other income 6,444 — 40,417 46,861 Proceeds from repayments (100,215 ) (632 ) (26,946 ) (127,793 ) Proceeds from sales (19,084 ) — — (19,084 ) Change in fair value (18,436 ) 197 (40,417 ) (58,656 ) Ocwen Transaction (Note 6) — — (611,621 ) (611,621 ) Balance as of December 31, 2018 445,328 2,532 — 447,860 Purchases — — — — Interest income 32,587 60 — 32,647 Other income 3,851 — — 3,851 Proceeds from repayments (83,612 ) (419 ) — (84,031 ) Proceeds from sales (10,075 ) — — (10,075 ) Change in fair value (10,387 ) (118 ) — (10,505 ) Balance as of December 31, 2019 $ 377,692 $ 2,055 $ — $ 379,747 (A) Specialized Loan Servicing LLC (“SLS”). (B) Ocwen Loan Servicing LLC, a subsidiary of Ocwen Financial Corporation (together with its subsidiaries, including Ocwen Loan Servicing LLC, “Ocwen”), services the loans underlying the Excess MSRs and Servicer Advance Investments. Mr. Cooper or SLS, as applicable, as servicer performs all of the servicing and advancing functions, and retains the ancillary income, servicing obligations and liabilities as the servicer of the underlying loans in the portfolio. New Residential has entered into a “recapture agreement” with respect to each of the direct Excess MSR investments serviced by Mr. Cooper and SLS. Under such arrangements, New Residential is generally entitled to a pro rata interest in the Excess MSRs on any refinancing by Mr. Cooper of a loan in the original portfolio. These recapture agreements do not apply to New Residential’s Servicer Advance Investments (Note 7). New Residential elected to record its direct investments in Excess MSRs at fair value pursuant to the fair value option for financial instruments in order to provide users of the financial statements with better information regarding the effects of prepayment risk and other market factors on the Excess MSRs. The following is a summary of New Residential’s direct investments in Excess MSRs: December 31, 2019 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis (B) Carrying Value (C) New Residential (D) Fortress-managed funds Mr. Cooper Agency Original and Recaptured Pools $ 43,310,917 32.5% - 66.7% (53.3%) 0.0% - 40.0% 20.0% - 35.0% 5.5 $ 178,603 $ 209,633 Non-Agency (E) Mr. Cooper and SLS Serviced: Original and Recaptured Pools $ 45,034,320 33.3% - 100.0% (59.4%) 0.0% - 50.0% 0.0% - 33.3% 6.5 $ 124,875 $ 170,114 Total $ 88,345,237 5.9 $ 303,478 $ 379,747 December 31, 2018 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis (B) Carrying Value (C) New Residential (D) Fortress-managed funds Mr. Cooper Agency Original and Recaptured Pools $ 52,368,290 32.5% - 66.7% (53.3%) 0.0% - 40.0% 20.0% - 35.0% 5.6 $ 218,797 $ 257,387 Non-Agency (E) Mr. Cooper and SLS Serviced: Original and Recaptured Pools $ 54,058,073 33.3% - 100.0% (59.4%) 0.0% - 50.0% 0.0% - 33.3% 5.8 $ 142,530 $ 190,473 Total $ 106,426,363 6.1 $ 361,327 $ 447,860 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) The amortized cost basis of the recapture agreements is determined based on the relative fair values of the recapture agreements and related Excess MSRs at the time they were acquired. (C) Carrying Value represents the fair value of the pools and recapture agreements, as applicable. (D) Amounts in parentheses represent weighted averages. (E) New Residential is also invested in related Servicer Advance Investments, including the basic fee component of the related MSR as of December 31, 2019 and 2018 (Note 7) on $31.4 billion and $40.1 billion UPB, respectively, underlying these Excess MSRs. Changes in fair value recorded in other income is comprised of the following: Year Ended December 31, 2019 2018 2017 Original and Recaptured Pools $ (10,505 ) $ (58,656 ) $ 4,322 As of December 31, 2019 and 2018 , weighted average discount rates of 7.8% and 8.8% , respectively, were used to value New Residential’s investments in Excess MSRs (directly and through equity method investees). Excess MSR Joint Ventures New Residential entered into investments in joint ventures (“Excess MSR joint ventures”) jointly controlled by New Residential and Fortress-managed funds investing in Excess MSRs. New Residential elected to record these investments at fair value pursuant to the fair value option for financial instruments to provide users of the financial statements with better information regarding the effects of prepayment risk and other market factors. The following tables summarize the financial results of the Excess MSR joint ventures, accounted for as equity method investees, held by New Residential: December 31, 2019 2018 Excess MSR assets $ 226,843 $ 269,203 Other assets 25,035 27,411 Other liabilities (687 ) (687 ) Equity $ 251,191 $ 295,927 New Residential’s investment $ 125,596 $ 147,964 New Residential’s ownership 50.0 % 50.0 % Year Ended December 31, 2019 2018 2017 Interest income $ 23,872 $ 26,363 $ 27,450 Other income (loss) (10,208 ) (9,649 ) (2,149 ) Expenses (64 ) — (68 ) Net income $ 13,600 $ 16,714 $ 25,233 New Residential’s investments in equity method investees changed during the years ended December 31, 2019 and 2018 as follows: 2019 2018 Balance at beginning of period $ 147,964 $ 171,765 Contributions to equity method investees — — Distributions of earnings from equity method investees (8,999 ) (11,059 ) Distributions of capital from equity method investees (20,169 ) (21,099 ) Change in fair value of investments in equity method investees 6,800 8,357 Balance at end of period $ 125,596 $ 147,964 The following is a summary of New Residential’s Excess MSR investments made through equity method investees: December 31, 2019 Unpaid Principal Balance Investee Interest in Excess MSR (A) New Residential Interest in Investees Amortized Cost Basis (B) Carrying Value (C) Weighted Average Life (Years) (D) Agency Original and Recaptured Pools $ 33,592,554 66.7% 50.0% $ 168,807 $ 226,843 5.4 December 31, 2018 Unpaid Principal Balance Investee Interest in Excess MSR (A) New Residential Interest in Investees Amortized Cost Basis (B) Carrying Value (C) Weighted Average Life (Years) (D) Agency Original and Recaptured Pools $ 41,707,963 66.7% 50.0% $ 198,261 $ 269,203 5.5 (A) The remaining interests are held by Mr. Cooper. (B) Represents the amortized cost basis of the equity method investees in which New Residential holds a 50% interest. The amortized cost basis of the recapture agreements is determined based on the relative fair values of the recapture agreements and related Excess MSRs at the time they were acquired. (C) Represents the carrying value of the Excess MSRs held in equity method investees, in which New Residential holds a 50% interest. Carrying value represents the fair value of the pools and recapture agreements, as applicable. (D) Represents the weighted average expected timing of the receipt of cash flows of each investment. A subsidiary of New Residential, New Residential Mortgage LLC (“NRM”), engages third party licensed mortgage servicers as subservicers to perform the operational servicing duties in connection with the MSRs it acquires, in exchange for a subservicing fee which is recorded as “Subservicing expense” on New Residential’s Consolidated Statements of Income. As of December 31, 2019 , these subservicers include PHH, Mr. Cooper, LoanCare , Ditech and Flagstar, which subservice 23.5% , 19.9% , 17.9% , 9.1% , and 1.0% of the underlying UPB of the related mortgages, respectively (includes both Mortgage Servicing Rights and MSR Financing Receivables). The remaining 28.6% of the underlying UPB of the related mortgages is subserviced by the servicing division of NewRez. New Residential has entered into recapture agreements with respect to each of its MSR investments subserviced by PHH, LoanCare, Flagstar, Mr. Cooper, and NewRez. Under the recapture agreements, New Residential is generally entitled to the MSRs on any initial or subsequent refinancing by PHH, LoanCare, Flagstar, Mr. Cooper, or NewRez of a loan in the original portfolios. In certain cases where New Residential has legally purchased MSRs or the right to the economic interest in MSRs, New Residential has determined that the purchase agreement would not be treated as a sale under GAAP. Therefore, rather than recording an investment in MSRs, New Residential has recorded an investment in MSR financing receivables (“MSR Financing Receivables”). Income from these investments, net of subservicing fees, are recorded as Interest income with changes in fair value flowing through Change in fair value of investments in MSR financing receivables in the Consolidated Statements of Income. New Residential records its investments in MSRs and MSR Financing Receivables at fair value at acquisition and has elected to subsequently measure at fair value pursuant to the fair value measurement method. The following table presents activity related to the carrying value of New Residential’s investments in MSRs and MSR Financing Receivables: MSRs MSR Financing Receivables Total Balance as of December 31, 2017 $ 1,735,504 $ 598,728 $ 2,334,232 Purchases, net (A) 1,042,933 128,357 1,171,290 Transfers (B) 124,652 (124,652 ) — New Ocwen Agreements — 1,017,993 1,017,993 Shellpoint Acquisition (Note 3) (C) 151,312 — 151,312 Originations (D) 35,311 — 35,311 Proceeds from sales (5,776 ) (7,472 ) (13,248 ) Amortization of servicing rights (F) (258,068 ) (197,703 ) (455,771 ) Change in valuation inputs and assumptions (G) 61,149 230,036 291,185 (Gain)/loss on sales (2,917 ) (783 ) (3,700 ) Balance as of December 31, 2018 $ 2,884,100 $ 1,644,504 $ 4,528,604 Purchases, net (A) 690,049 735,152 1,425,201 Transfers (B) 367,121 (367,121 ) — Other transfers (H) (410 ) — (410 ) Ditech Acquisition (Note 3) 387,170 — 387,170 Originations (D) 374,450 — 374,450 Prepayments (E) (11,625 ) (82,250 ) (93,875 ) Proceeds from sales (1,539 ) (22,989 ) (24,528 ) Amortization of servicing rights (F) (537,111 ) (203,732 ) (740,843 ) Change in valuation inputs and assumptions (G) (187,530 ) 21,094 (166,436 ) (Gain)/loss on sales 3,285 (6,385 ) (3,100 ) Balance as of December 31, 2019 $ 3,967,960 $ 1,718,273 $ 5,686,233 (A) Net of purchase price adjustments. (B) Represents MSRs previously accounted for as MSR Financing Receivables. As a result of the length of the initial term of the related subservicing agreement between NRM and PHH, although the MSRs were legally sold, solely for accounting purposes, the purchase agreement was not treated as a sale under GAAP through June 30, 2019. (C) Includes $48.3 million of MSRs legally sold by NewRez treated as a secured borrowing as it did not meet the criteria for sale treatment. New Residential elected to record the excess spread financing liability at fair value pursuant to the fair value option. (D) Represents MSRs retained on the sale of originated mortgage loans. (E) Represents purchase price fully reimbursable from sellers as a result of prepayment protection. (F) Based on the ratio of the current UPB of the underlying residential mortgage loans relative to the original UPB of the underlying residential mortgage loans. (G) Change in valuation inputs and assumptions includes changes in inputs or assumptions used in the valuation model and other changes due to the realization of expected cash flows. (H) Represents Ginnie Mae MSRs repurchased. Servicing revenue, net recognized by New Residential related to its investments in MSRs was comprised of the following: Year Ended December 31, 2019 2018 2017 Servicing fee revenue $ 899,623 $ 589,546 $ 412,971 Ancillary and other fees 198,486 130,294 79,050 Servicing fee revenue and fees 1,098,109 719,840 492,021 Amortization of servicing rights (A) (530,031 ) (256,915 ) (223,167 ) Change in valuation inputs and assumptions (B) (C) (186,204 ) 68,587 155,495 (Gain)/loss on sales (D) 3,285 (2,917 ) — Servicing revenue, net $ 385,159 $ 528,595 $ 424,349 (A) Includes $7.1 million , $1.2 million and $0.0 million of amortization to Excess spread financing for the years ended December 31, 2019 , 2018 , and 2017 , respectively. (B) Change in valuation inputs and assumptions includes changes in inputs or assumptions used in the valuation model and other changes due to the realization of expected cash flows. (C) Includes $1.3 million , $7.4 million and $0.0 million of fair value adjustment to Excess spread financing for the years ended December 31, 2019 , 2018 , and 2017 , respectively. (D) Represents the realization of unrealized gain/(loss) as a result of sales. Interest income from investments in MSR Financing Receivables was comprised of the following: Year Ended December 31, 2019 2018 2017 Servicing fee revenue $ 513,172 $ 705,812 $ 94,945 Ancillary and other fees 119,570 146,829 17,313 Less: subservicing expense (196,726 ) (251,184 ) (33,686 ) Interest income, investments in MSR financing receivables $ 436,016 $ 601,457 $ 78,572 Change in fair value of investments in MSR Financing Receivables was comprised of the following: Year Ended December 31, 2019 2018 2017 Amortization of servicing rights $ (203,732 ) $ (197,703 ) $ (43,190 ) Change in valuation inputs and assumptions (A) 21,094 230,036 109,584 (Gain)/loss on sales (B) (6,385 ) (783 ) — Change in fair value of investments in MSR financing receivables $ (189,023 ) $ 31,550 $ 66,394 (A) Change in valuation inputs and assumptions includes changes in inputs or assumptions used in the valuation model and other changes due to the realization of expected cash flows. (B) Represents the realization of unrealized gain/(loss) as a result of sales. The following is a summary of New Residential’s investments in MSRs and MSR Financing Receivables as of December 31, 2019 and 2018 : UPB of Underlying Mortgages Weighted Average Life (Years) (A) Amortized Cost Basis Carrying Value (B) 2019 MSRs: Agency (C) $ 315,427,933 5.1 $ 3,179,556 $ 3,319,035 Non-Agency 6,402,833 5.4 12,437 20,283 Ginnie Mae (D) 52,019,295 4.6 614,855 628,642 MSR Financing Receivables: Agency (C) 54,866,978 4.7 582,600 547,351 Non-Agency 76,117,892 7.6 808,149 1,170,922 Total $ 504,834,931 5.4 $ 5,197,597 $ 5,686,233 2018 MSRs: Agency (C) $ 226,295,778 6.4 $ 2,189,039 $ 2,506,676 Non-Agency 2,143,212 6.6 19,982 22,438 Ginnie Mae (D) 30,023,713 7.4 357,673 354,986 MSR Financing Receivables: Agency (C) 42,265,547 5.9 366,946 434,110 Non-Agency 88,251,018 7.2 936,792 1,210,394 Total $ 388,979,268 6.6 $ 3,870,432 $ 4,528,604 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Carrying Value represents fair value. As of December 31, 2019 and 2018 , weighted average discount rates of 7.8% and 8.7% , respectively, were used to value New Residential’s investments in MSRs, respectively. As of December 31, 2019 and 2018 , weighted average discount rates of 8.9% and 10.3% , respectively, were used to value New Residential’s investments in MSR financing receivables. (C) Represents Fannie Mae and Freddie Mac MSRs. (D) NewRez, as an approved issuer of Ginnie Mae MBS, originates, sells and securitizes government-insured residential mortgage loans into Ginnie Mae guaranteed securitizations and NewRez retains the right to service the underlying residential mortgage loans. As the servicer, NewRez holds an option to repurchase delinquent loans from the securitization at its discretion. As of December 31, 2019 and 2018 , New Residential holds approximately $172.3 million and $121.6 million in residential mortgage loans subject to repurchase and residential mortgage loans repurchase liability on its Consolidated Balance Sheets. Ocwen MSR Financing Receivable Transactions On July 23, 2017, Ocwen and New Residential entered into a Master Agreement (the “Ocwen Master Agreement”) and a Transfer Agreement (the “Ocwen Transfer Agreement”) pursuant to which Ocwen and New Residential agreed to undertake certain actions to facilitate the transfer from Ocwen to New Residential of Ocwen’s remaining interests in the mortgage servicing rights relating to loans with an aggregate unpaid principal balance of approximately $110.0 billion that are subject to the Original Ocwen Agreements (the “Ocwen Subject MSRs”) and with respect to which New Residential holds the Rights to MSRs (as defined in the Original Ocwen Agreements). New Residential and Ocwen concurrently entered into a subservicing agreement pursuant to which Ocwen will subservice the mortgage loans related to the Ocwen Subject MSRs that are transferred to New Residential pursuant to the Ocwen Master Agreement and Ocwen Transfer Agreement. On January 18, 2018, New Residential entered into a new agreement regarding the rights to MSRs (the “New Ocwen RMSR Agreement”) including a servicing addendum thereto (the “Ocwen Servicing Addendum”), Amendment No. 1 to Transfer Agreement (the “New Ocwen Transfer Agreement”) and a Brokerage Services Agreement (the “Ocwen Brokerage Services Agreement” and, collectively, the “New Ocwen Agreements”) with Ocwen. The New Ocwen Agreements amend and supplement the arrangements among the parties set forth in the Original Ocwen Agreements, the Ocwen Master Agreement, the Ocwen Transfer Agreement, and the Ocwen Subservicing Agreement (together with the Original Ocwen Agreements, the Ocwen Master Agreement, and the Ocwen Transfer Agreement, the “Existing Ocwen Agreements”). NRM made a lump-sum “Fee Restructuring Payment” of $279.6 million to Ocwen on January 18, 2018, the date of the New Ocwen RMSR Agreement, with respect to such Existing Ocwen Subject MSRs. Under the Existing Ocwen Agreements, Ocwen sold and transferred to New Residential certain “Rights to MSRs” and other assets related to mortgage servicing rights for loans with an unpaid principal balance of approximately $86.8 billion as of the opening balances in January 2018 (the “Existing Ocwen Subject MSRs”). The New Ocwen Agreements and NRM’s Fee Restructuring Payment resulted in a new investment structured as a transfer of the full interests and economics of the Ocwen subject MSRs. Pursuant to the New Ocwen Agreements, Ocwen will continue to service the mortgage loans related to the Existing Ocwen Subject MSRs until the necessary third party consents are obtained in order to transfer the Existing Ocwen Subject MSRs in accordance with the New Ocwen Agreements. Pursuant to the Ocwen Brokerage Services Agreement, Ocwen will engage NRZ Brokerage to perform brokerage and marketing services for all REO properties serviced by Ocwen pursuant to the Subject Servicing Agreements as defined in the New Ocwen RMSR Agreement. Such REO properties are subject to the Altisource Brokerage Agreement and Altisource Letter Agreement. As of December 31, 2019 , MSRs representing approximately $66.7 billion UPB of underlying loans have been transferred to NRM and NewRez pursuant to the Ocwen Transaction. Economics related to the remaining MSRs subject to the Ocwen Transaction were transferred pursuant to the New Ocwen Agreements. As a result of the length of the initial term of the related subservicing agreement between NRM, NewRez and Ocwen, although the MSRs transferred pursuant to the Ocwen Transaction were legally sold, solely for accounting purposes, New Residential determined that substantially all of the risks and rewards inherent in owning the MSRs had not been transferred to NRM or NewRez, and that the purchase agreement would not be treated as a sale under GAAP. As a part of the ongoing integration efforts related to the Ocwen and PHH merger completed on October 4, 2018, Ocwen now conducts its mortgage servicing business under the PHH tradename. Mr. Cooper MSR Financing Receivable Transaction On February 28, 2019, NRM entered into an agreement with Mr. Cooper to purchase the MSRs, and related servicer advance receivables, with respect to $9.5 billion in total UPB of seasoned Agency residential mortgage loans. The residential mortgage loans underlying the MSRs acquired by NRM are subserviced by Mr. Cooper pursuant to an existing subservicing agreement with NRM. As a result of the length of the initial term of the related subservicing agreement between NRM and Mr. Cooper, although the MSRs were legally sold, solely for accounting purposes, New Residential determined that substantially all of the risks and rewards inherent in owning the MSRs had not been transferred to NRM, and that the purchase agreement would not be treated as a sale under GAAP. United Shore MSR Financing Receivable Transactions On April 2, 2019 and May 21, 2019, NRM entered into agreements with United Shore to purchase the MSRs, and related servicer advance receivables, with respect to $8.2 billion and $23.7 billion in total UPB of seasoned Agency residential mortgage loans, respectively. The residential mortgage loans underlying the MSRs acquired by NRM will be subserviced by NewRez, Mr. Cooper and LoanCare pursuant to existing subservicing agreements with NRM. As a result of the length of term of prepayment protection provided to NRM, although the MSRs were legally sold, solely for accounting purposes, New Residential determined that the transferor retained more than minor protection provisions, and that the purchase agreement would not be treated as a sale under GAAP. Quicken MSR Financing Receivable Transaction On August 6, 2019, NRM entered into an agreement with Quicken to purchase the MSRs, and related servicer advance receivables, with respect to $29.1 billion in total UPB of seasoned Agency residential mortgage loans. The residential mortgage loans underlying the MSRs acquired by NRM are subserviced by LoanCare pursuant to an existing subservicing agreement with NRM. As a result of the length of term of prepayment protection provided to NRM, although the MSRs were legally sold, solely for accounting purposes, New Residential determined that the transferor retained more than minor protection provisions, and that the purchase agreement would not be treated as a sale under GAAP. The table below summarizes the geographic distribution of the underlying residential mortgage loans of the investments in MSRs and MSR Financing Receivables: Percentage of Total Outstanding Unpaid Principal Amount State Concentration December 31, 2019 December 31, 2018 California 21.9 % 21.7 % Florida 6.9 % 6.9 % New York 6.4 % 7.8 % Texas 5.5 % 5.3 % New Jersey 4.9 % 5.0 % Illinois 3.6 % 3.7 % Massachusetts 3.4 % 3.5 % Washington 3.3 % 2.3 % Georgia 3.1 % 3.0 % Maryland 3.0 % 3.4 % Other U.S. 38.0 % 37.4 % 100.0 % 100.0 % Geographic concentrations of investments expose New Residential to the risk of economic downturns within the relevant states. Any such downturn in a state where New Residential holds significant investments could affect the underlying borrower’s ability to make mortgage payments and therefore could have a meaningful, negative impact on the MSRs. Mortgage Subservicing NewRez performs servicing of residential mortgage loans for third parties under subservicing agreements. Mortgage subservicing does not meet the criteria to be recognized as a servicing right asset and, therefore, is not recognized on New Residential’s consolidated balance sheets. The UPB of residential mortgage loans subserviced for others as of December 31, 2019 was $71.2 billion and subservicing revenue of $137.4 million is included within Servicing revenue, net in the Consolidated Statements of Income. Servicer Advances Receivable In connection with its investments in MSRs and MSR financing receivables, New Residential generally acquires any related outstanding servicer advances (not included in the purchase prices described above), which it records at fair value within servicer advances receivable upon acquisition. In addition to receiving cash flows from the MSRs, NRM and NewRez, as servicers, have the obligation to fund future servicer advances on the underlying pool of mortgages (Note 16). These servicer advances are recorded when advanced and are included in Servicer Advances Receivable on the Consolidated Balance Sheets. The following types of advances are included in the Servicer Advances Receivable: December 31, 2019 2018 Principal and interest advances $ 660,807 $ 793,790 Escrow advances (taxes and insurance advances) 2,427,384 2,186,831 Foreclosure advances 163,054 199,203 Total (A) (B) (C) $ 3,251,245 $ 3,179,824 (A) Includes $562.2 million and $231.2 million of servicer advances receivable related to Agency MSRs, respectively, recoverable from the Agencies. (B) Includes $166.5 million and $41.6 million of servicer advances receivable related to Ginnie Mae MSRs, respectively, recoverable from Ginnie Mae. Reserves for advances associated with Ginnie Mae loans in the MSR portfolio are considered in the MSR fair valuation through a nonreimbursable advance loss assumption. (C) Net of $50.1 million and $98.0 million , respectively, in accruals for advance recoveries. New Residential’s Servicer Advances Receivable related to Non-Agency MSRs generally have the highest reimbursement priority (i.e., “top of the waterfall”) and New Residential is generally entitled to repayment from respective loan or REO liquidation proceeds before any interest or principal is paid on the bonds that were issued by the trust. In the majority of cases, advances in excess of respective loan or REO liquidation proceeds may be recovered from pool-level proceeds. Furthermore, to the extent that advances are not recoverable by New Residential as a result of the subservicer’s failure to comply with applicable requirements in the relevant servicing agreements, New Residential has a contractual right to be reimbursed by the subservicer. New Residential assesses the recoverability of Servicer Advance Receivables periodically and as of December 31, 2019 and December 31, 2018 , expected full recovery of the Servicer Advance Receivables. See Note 12 regarding the financing of MSRs. |
INVESTMENTS IN MORTGAGE SERVICI
INVESTMENTS IN MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES | 12 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |
INVESTMENTS IN MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES | INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS Direct Investments in Excess MSRs The following table presents activity related to the carrying value of New Residential’s direct investments in Excess MSRs: Servicer Mr. Cooper SLS (A) Ocwen (B) Total Balance as of December 31, 2017 $ 532,233 $ 2,913 $ 638,567 $ 1,173,713 Purchases — — — — Interest income 44,386 54 — 44,440 Other income 6,444 — 40,417 46,861 Proceeds from repayments (100,215 ) (632 ) (26,946 ) (127,793 ) Proceeds from sales (19,084 ) — — (19,084 ) Change in fair value (18,436 ) 197 (40,417 ) (58,656 ) Ocwen Transaction (Note 6) — — (611,621 ) (611,621 ) Balance as of December 31, 2018 445,328 2,532 — 447,860 Purchases — — — — Interest income 32,587 60 — 32,647 Other income 3,851 — — 3,851 Proceeds from repayments (83,612 ) (419 ) — (84,031 ) Proceeds from sales (10,075 ) — — (10,075 ) Change in fair value (10,387 ) (118 ) — (10,505 ) Balance as of December 31, 2019 $ 377,692 $ 2,055 $ — $ 379,747 (A) Specialized Loan Servicing LLC (“SLS”). (B) Ocwen Loan Servicing LLC, a subsidiary of Ocwen Financial Corporation (together with its subsidiaries, including Ocwen Loan Servicing LLC, “Ocwen”), services the loans underlying the Excess MSRs and Servicer Advance Investments. Mr. Cooper or SLS, as applicable, as servicer performs all of the servicing and advancing functions, and retains the ancillary income, servicing obligations and liabilities as the servicer of the underlying loans in the portfolio. New Residential has entered into a “recapture agreement” with respect to each of the direct Excess MSR investments serviced by Mr. Cooper and SLS. Under such arrangements, New Residential is generally entitled to a pro rata interest in the Excess MSRs on any refinancing by Mr. Cooper of a loan in the original portfolio. These recapture agreements do not apply to New Residential’s Servicer Advance Investments (Note 7). New Residential elected to record its direct investments in Excess MSRs at fair value pursuant to the fair value option for financial instruments in order to provide users of the financial statements with better information regarding the effects of prepayment risk and other market factors on the Excess MSRs. The following is a summary of New Residential’s direct investments in Excess MSRs: December 31, 2019 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis (B) Carrying Value (C) New Residential (D) Fortress-managed funds Mr. Cooper Agency Original and Recaptured Pools $ 43,310,917 32.5% - 66.7% (53.3%) 0.0% - 40.0% 20.0% - 35.0% 5.5 $ 178,603 $ 209,633 Non-Agency (E) Mr. Cooper and SLS Serviced: Original and Recaptured Pools $ 45,034,320 33.3% - 100.0% (59.4%) 0.0% - 50.0% 0.0% - 33.3% 6.5 $ 124,875 $ 170,114 Total $ 88,345,237 5.9 $ 303,478 $ 379,747 December 31, 2018 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis (B) Carrying Value (C) New Residential (D) Fortress-managed funds Mr. Cooper Agency Original and Recaptured Pools $ 52,368,290 32.5% - 66.7% (53.3%) 0.0% - 40.0% 20.0% - 35.0% 5.6 $ 218,797 $ 257,387 Non-Agency (E) Mr. Cooper and SLS Serviced: Original and Recaptured Pools $ 54,058,073 33.3% - 100.0% (59.4%) 0.0% - 50.0% 0.0% - 33.3% 5.8 $ 142,530 $ 190,473 Total $ 106,426,363 6.1 $ 361,327 $ 447,860 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) The amortized cost basis of the recapture agreements is determined based on the relative fair values of the recapture agreements and related Excess MSRs at the time they were acquired. (C) Carrying Value represents the fair value of the pools and recapture agreements, as applicable. (D) Amounts in parentheses represent weighted averages. (E) New Residential is also invested in related Servicer Advance Investments, including the basic fee component of the related MSR as of December 31, 2019 and 2018 (Note 7) on $31.4 billion and $40.1 billion UPB, respectively, underlying these Excess MSRs. Changes in fair value recorded in other income is comprised of the following: Year Ended December 31, 2019 2018 2017 Original and Recaptured Pools $ (10,505 ) $ (58,656 ) $ 4,322 As of December 31, 2019 and 2018 , weighted average discount rates of 7.8% and 8.8% , respectively, were used to value New Residential’s investments in Excess MSRs (directly and through equity method investees). Excess MSR Joint Ventures New Residential entered into investments in joint ventures (“Excess MSR joint ventures”) jointly controlled by New Residential and Fortress-managed funds investing in Excess MSRs. New Residential elected to record these investments at fair value pursuant to the fair value option for financial instruments to provide users of the financial statements with better information regarding the effects of prepayment risk and other market factors. The following tables summarize the financial results of the Excess MSR joint ventures, accounted for as equity method investees, held by New Residential: December 31, 2019 2018 Excess MSR assets $ 226,843 $ 269,203 Other assets 25,035 27,411 Other liabilities (687 ) (687 ) Equity $ 251,191 $ 295,927 New Residential’s investment $ 125,596 $ 147,964 New Residential’s ownership 50.0 % 50.0 % Year Ended December 31, 2019 2018 2017 Interest income $ 23,872 $ 26,363 $ 27,450 Other income (loss) (10,208 ) (9,649 ) (2,149 ) Expenses (64 ) — (68 ) Net income $ 13,600 $ 16,714 $ 25,233 New Residential’s investments in equity method investees changed during the years ended December 31, 2019 and 2018 as follows: 2019 2018 Balance at beginning of period $ 147,964 $ 171,765 Contributions to equity method investees — — Distributions of earnings from equity method investees (8,999 ) (11,059 ) Distributions of capital from equity method investees (20,169 ) (21,099 ) Change in fair value of investments in equity method investees 6,800 8,357 Balance at end of period $ 125,596 $ 147,964 The following is a summary of New Residential’s Excess MSR investments made through equity method investees: December 31, 2019 Unpaid Principal Balance Investee Interest in Excess MSR (A) New Residential Interest in Investees Amortized Cost Basis (B) Carrying Value (C) Weighted Average Life (Years) (D) Agency Original and Recaptured Pools $ 33,592,554 66.7% 50.0% $ 168,807 $ 226,843 5.4 December 31, 2018 Unpaid Principal Balance Investee Interest in Excess MSR (A) New Residential Interest in Investees Amortized Cost Basis (B) Carrying Value (C) Weighted Average Life (Years) (D) Agency Original and Recaptured Pools $ 41,707,963 66.7% 50.0% $ 198,261 $ 269,203 5.5 (A) The remaining interests are held by Mr. Cooper. (B) Represents the amortized cost basis of the equity method investees in which New Residential holds a 50% interest. The amortized cost basis of the recapture agreements is determined based on the relative fair values of the recapture agreements and related Excess MSRs at the time they were acquired. (C) Represents the carrying value of the Excess MSRs held in equity method investees, in which New Residential holds a 50% interest. Carrying value represents the fair value of the pools and recapture agreements, as applicable. (D) Represents the weighted average expected timing of the receipt of cash flows of each investment. A subsidiary of New Residential, New Residential Mortgage LLC (“NRM”), engages third party licensed mortgage servicers as subservicers to perform the operational servicing duties in connection with the MSRs it acquires, in exchange for a subservicing fee which is recorded as “Subservicing expense” on New Residential’s Consolidated Statements of Income. As of December 31, 2019 , these subservicers include PHH, Mr. Cooper, LoanCare , Ditech and Flagstar, which subservice 23.5% , 19.9% , 17.9% , 9.1% , and 1.0% of the underlying UPB of the related mortgages, respectively (includes both Mortgage Servicing Rights and MSR Financing Receivables). The remaining 28.6% of the underlying UPB of the related mortgages is subserviced by the servicing division of NewRez. New Residential has entered into recapture agreements with respect to each of its MSR investments subserviced by PHH, LoanCare, Flagstar, Mr. Cooper, and NewRez. Under the recapture agreements, New Residential is generally entitled to the MSRs on any initial or subsequent refinancing by PHH, LoanCare, Flagstar, Mr. Cooper, or NewRez of a loan in the original portfolios. In certain cases where New Residential has legally purchased MSRs or the right to the economic interest in MSRs, New Residential has determined that the purchase agreement would not be treated as a sale under GAAP. Therefore, rather than recording an investment in MSRs, New Residential has recorded an investment in MSR financing receivables (“MSR Financing Receivables”). Income from these investments, net of subservicing fees, are recorded as Interest income with changes in fair value flowing through Change in fair value of investments in MSR financing receivables in the Consolidated Statements of Income. New Residential records its investments in MSRs and MSR Financing Receivables at fair value at acquisition and has elected to subsequently measure at fair value pursuant to the fair value measurement method. The following table presents activity related to the carrying value of New Residential’s investments in MSRs and MSR Financing Receivables: MSRs MSR Financing Receivables Total Balance as of December 31, 2017 $ 1,735,504 $ 598,728 $ 2,334,232 Purchases, net (A) 1,042,933 128,357 1,171,290 Transfers (B) 124,652 (124,652 ) — New Ocwen Agreements — 1,017,993 1,017,993 Shellpoint Acquisition (Note 3) (C) 151,312 — 151,312 Originations (D) 35,311 — 35,311 Proceeds from sales (5,776 ) (7,472 ) (13,248 ) Amortization of servicing rights (F) (258,068 ) (197,703 ) (455,771 ) Change in valuation inputs and assumptions (G) 61,149 230,036 291,185 (Gain)/loss on sales (2,917 ) (783 ) (3,700 ) Balance as of December 31, 2018 $ 2,884,100 $ 1,644,504 $ 4,528,604 Purchases, net (A) 690,049 735,152 1,425,201 Transfers (B) 367,121 (367,121 ) — Other transfers (H) (410 ) — (410 ) Ditech Acquisition (Note 3) 387,170 — 387,170 Originations (D) 374,450 — 374,450 Prepayments (E) (11,625 ) (82,250 ) (93,875 ) Proceeds from sales (1,539 ) (22,989 ) (24,528 ) Amortization of servicing rights (F) (537,111 ) (203,732 ) (740,843 ) Change in valuation inputs and assumptions (G) (187,530 ) 21,094 (166,436 ) (Gain)/loss on sales 3,285 (6,385 ) (3,100 ) Balance as of December 31, 2019 $ 3,967,960 $ 1,718,273 $ 5,686,233 (A) Net of purchase price adjustments. (B) Represents MSRs previously accounted for as MSR Financing Receivables. As a result of the length of the initial term of the related subservicing agreement between NRM and PHH, although the MSRs were legally sold, solely for accounting purposes, the purchase agreement was not treated as a sale under GAAP through June 30, 2019. (C) Includes $48.3 million of MSRs legally sold by NewRez treated as a secured borrowing as it did not meet the criteria for sale treatment. New Residential elected to record the excess spread financing liability at fair value pursuant to the fair value option. (D) Represents MSRs retained on the sale of originated mortgage loans. (E) Represents purchase price fully reimbursable from sellers as a result of prepayment protection. (F) Based on the ratio of the current UPB of the underlying residential mortgage loans relative to the original UPB of the underlying residential mortgage loans. (G) Change in valuation inputs and assumptions includes changes in inputs or assumptions used in the valuation model and other changes due to the realization of expected cash flows. (H) Represents Ginnie Mae MSRs repurchased. Servicing revenue, net recognized by New Residential related to its investments in MSRs was comprised of the following: Year Ended December 31, 2019 2018 2017 Servicing fee revenue $ 899,623 $ 589,546 $ 412,971 Ancillary and other fees 198,486 130,294 79,050 Servicing fee revenue and fees 1,098,109 719,840 492,021 Amortization of servicing rights (A) (530,031 ) (256,915 ) (223,167 ) Change in valuation inputs and assumptions (B) (C) (186,204 ) 68,587 155,495 (Gain)/loss on sales (D) 3,285 (2,917 ) — Servicing revenue, net $ 385,159 $ 528,595 $ 424,349 (A) Includes $7.1 million , $1.2 million and $0.0 million of amortization to Excess spread financing for the years ended December 31, 2019 , 2018 , and 2017 , respectively. (B) Change in valuation inputs and assumptions includes changes in inputs or assumptions used in the valuation model and other changes due to the realization of expected cash flows. (C) Includes $1.3 million , $7.4 million and $0.0 million of fair value adjustment to Excess spread financing for the years ended December 31, 2019 , 2018 , and 2017 , respectively. (D) Represents the realization of unrealized gain/(loss) as a result of sales. Interest income from investments in MSR Financing Receivables was comprised of the following: Year Ended December 31, 2019 2018 2017 Servicing fee revenue $ 513,172 $ 705,812 $ 94,945 Ancillary and other fees 119,570 146,829 17,313 Less: subservicing expense (196,726 ) (251,184 ) (33,686 ) Interest income, investments in MSR financing receivables $ 436,016 $ 601,457 $ 78,572 Change in fair value of investments in MSR Financing Receivables was comprised of the following: Year Ended December 31, 2019 2018 2017 Amortization of servicing rights $ (203,732 ) $ (197,703 ) $ (43,190 ) Change in valuation inputs and assumptions (A) 21,094 230,036 109,584 (Gain)/loss on sales (B) (6,385 ) (783 ) — Change in fair value of investments in MSR financing receivables $ (189,023 ) $ 31,550 $ 66,394 (A) Change in valuation inputs and assumptions includes changes in inputs or assumptions used in the valuation model and other changes due to the realization of expected cash flows. (B) Represents the realization of unrealized gain/(loss) as a result of sales. The following is a summary of New Residential’s investments in MSRs and MSR Financing Receivables as of December 31, 2019 and 2018 : UPB of Underlying Mortgages Weighted Average Life (Years) (A) Amortized Cost Basis Carrying Value (B) 2019 MSRs: Agency (C) $ 315,427,933 5.1 $ 3,179,556 $ 3,319,035 Non-Agency 6,402,833 5.4 12,437 20,283 Ginnie Mae (D) 52,019,295 4.6 614,855 628,642 MSR Financing Receivables: Agency (C) 54,866,978 4.7 582,600 547,351 Non-Agency 76,117,892 7.6 808,149 1,170,922 Total $ 504,834,931 5.4 $ 5,197,597 $ 5,686,233 2018 MSRs: Agency (C) $ 226,295,778 6.4 $ 2,189,039 $ 2,506,676 Non-Agency 2,143,212 6.6 19,982 22,438 Ginnie Mae (D) 30,023,713 7.4 357,673 354,986 MSR Financing Receivables: Agency (C) 42,265,547 5.9 366,946 434,110 Non-Agency 88,251,018 7.2 936,792 1,210,394 Total $ 388,979,268 6.6 $ 3,870,432 $ 4,528,604 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Carrying Value represents fair value. As of December 31, 2019 and 2018 , weighted average discount rates of 7.8% and 8.7% , respectively, were used to value New Residential’s investments in MSRs, respectively. As of December 31, 2019 and 2018 , weighted average discount rates of 8.9% and 10.3% , respectively, were used to value New Residential’s investments in MSR financing receivables. (C) Represents Fannie Mae and Freddie Mac MSRs. (D) NewRez, as an approved issuer of Ginnie Mae MBS, originates, sells and securitizes government-insured residential mortgage loans into Ginnie Mae guaranteed securitizations and NewRez retains the right to service the underlying residential mortgage loans. As the servicer, NewRez holds an option to repurchase delinquent loans from the securitization at its discretion. As of December 31, 2019 and 2018 , New Residential holds approximately $172.3 million and $121.6 million in residential mortgage loans subject to repurchase and residential mortgage loans repurchase liability on its Consolidated Balance Sheets. Ocwen MSR Financing Receivable Transactions On July 23, 2017, Ocwen and New Residential entered into a Master Agreement (the “Ocwen Master Agreement”) and a Transfer Agreement (the “Ocwen Transfer Agreement”) pursuant to which Ocwen and New Residential agreed to undertake certain actions to facilitate the transfer from Ocwen to New Residential of Ocwen’s remaining interests in the mortgage servicing rights relating to loans with an aggregate unpaid principal balance of approximately $110.0 billion that are subject to the Original Ocwen Agreements (the “Ocwen Subject MSRs”) and with respect to which New Residential holds the Rights to MSRs (as defined in the Original Ocwen Agreements). New Residential and Ocwen concurrently entered into a subservicing agreement pursuant to which Ocwen will subservice the mortgage loans related to the Ocwen Subject MSRs that are transferred to New Residential pursuant to the Ocwen Master Agreement and Ocwen Transfer Agreement. On January 18, 2018, New Residential entered into a new agreement regarding the rights to MSRs (the “New Ocwen RMSR Agreement”) including a servicing addendum thereto (the “Ocwen Servicing Addendum”), Amendment No. 1 to Transfer Agreement (the “New Ocwen Transfer Agreement”) and a Brokerage Services Agreement (the “Ocwen Brokerage Services Agreement” and, collectively, the “New Ocwen Agreements”) with Ocwen. The New Ocwen Agreements amend and supplement the arrangements among the parties set forth in the Original Ocwen Agreements, the Ocwen Master Agreement, the Ocwen Transfer Agreement, and the Ocwen Subservicing Agreement (together with the Original Ocwen Agreements, the Ocwen Master Agreement, and the Ocwen Transfer Agreement, the “Existing Ocwen Agreements”). NRM made a lump-sum “Fee Restructuring Payment” of $279.6 million to Ocwen on January 18, 2018, the date of the New Ocwen RMSR Agreement, with respect to such Existing Ocwen Subject MSRs. Under the Existing Ocwen Agreements, Ocwen sold and transferred to New Residential certain “Rights to MSRs” and other assets related to mortgage servicing rights for loans with an unpaid principal balance of approximately $86.8 billion as of the opening balances in January 2018 (the “Existing Ocwen Subject MSRs”). The New Ocwen Agreements and NRM’s Fee Restructuring Payment resulted in a new investment structured as a transfer of the full interests and economics of the Ocwen subject MSRs. Pursuant to the New Ocwen Agreements, Ocwen will continue to service the mortgage loans related to the Existing Ocwen Subject MSRs until the necessary third party consents are obtained in order to transfer the Existing Ocwen Subject MSRs in accordance with the New Ocwen Agreements. Pursuant to the Ocwen Brokerage Services Agreement, Ocwen will engage NRZ Brokerage to perform brokerage and marketing services for all REO properties serviced by Ocwen pursuant to the Subject Servicing Agreements as defined in the New Ocwen RMSR Agreement. Such REO properties are subject to the Altisource Brokerage Agreement and Altisource Letter Agreement. As of December 31, 2019 , MSRs representing approximately $66.7 billion UPB of underlying loans have been transferred to NRM and NewRez pursuant to the Ocwen Transaction. Economics related to the remaining MSRs subject to the Ocwen Transaction were transferred pursuant to the New Ocwen Agreements. As a result of the length of the initial term of the related subservicing agreement between NRM, NewRez and Ocwen, although the MSRs transferred pursuant to the Ocwen Transaction were legally sold, solely for accounting purposes, New Residential determined that substantially all of the risks and rewards inherent in owning the MSRs had not been transferred to NRM or NewRez, and that the purchase agreement would not be treated as a sale under GAAP. As a part of the ongoing integration efforts related to the Ocwen and PHH merger completed on October 4, 2018, Ocwen now conducts its mortgage servicing business under the PHH tradename. Mr. Cooper MSR Financing Receivable Transaction On February 28, 2019, NRM entered into an agreement with Mr. Cooper to purchase the MSRs, and related servicer advance receivables, with respect to $9.5 billion in total UPB of seasoned Agency residential mortgage loans. The residential mortgage loans underlying the MSRs acquired by NRM are subserviced by Mr. Cooper pursuant to an existing subservicing agreement with NRM. As a result of the length of the initial term of the related subservicing agreement between NRM and Mr. Cooper, although the MSRs were legally sold, solely for accounting purposes, New Residential determined that substantially all of the risks and rewards inherent in owning the MSRs had not been transferred to NRM, and that the purchase agreement would not be treated as a sale under GAAP. United Shore MSR Financing Receivable Transactions On April 2, 2019 and May 21, 2019, NRM entered into agreements with United Shore to purchase the MSRs, and related servicer advance receivables, with respect to $8.2 billion and $23.7 billion in total UPB of seasoned Agency residential mortgage loans, respectively. The residential mortgage loans underlying the MSRs acquired by NRM will be subserviced by NewRez, Mr. Cooper and LoanCare pursuant to existing subservicing agreements with NRM. As a result of the length of term of prepayment protection provided to NRM, although the MSRs were legally sold, solely for accounting purposes, New Residential determined that the transferor retained more than minor protection provisions, and that the purchase agreement would not be treated as a sale under GAAP. Quicken MSR Financing Receivable Transaction On August 6, 2019, NRM entered into an agreement with Quicken to purchase the MSRs, and related servicer advance receivables, with respect to $29.1 billion in total UPB of seasoned Agency residential mortgage loans. The residential mortgage loans underlying the MSRs acquired by NRM are subserviced by LoanCare pursuant to an existing subservicing agreement with NRM. As a result of the length of term of prepayment protection provided to NRM, although the MSRs were legally sold, solely for accounting purposes, New Residential determined that the transferor retained more than minor protection provisions, and that the purchase agreement would not be treated as a sale under GAAP. The table below summarizes the geographic distribution of the underlying residential mortgage loans of the investments in MSRs and MSR Financing Receivables: Percentage of Total Outstanding Unpaid Principal Amount State Concentration December 31, 2019 December 31, 2018 California 21.9 % 21.7 % Florida 6.9 % 6.9 % New York 6.4 % 7.8 % Texas 5.5 % 5.3 % New Jersey 4.9 % 5.0 % Illinois 3.6 % 3.7 % Massachusetts 3.4 % 3.5 % Washington 3.3 % 2.3 % Georgia 3.1 % 3.0 % Maryland 3.0 % 3.4 % Other U.S. 38.0 % 37.4 % 100.0 % 100.0 % Geographic concentrations of investments expose New Residential to the risk of economic downturns within the relevant states. Any such downturn in a state where New Residential holds significant investments could affect the underlying borrower’s ability to make mortgage payments and therefore could have a meaningful, negative impact on the MSRs. Mortgage Subservicing NewRez performs servicing of residential mortgage loans for third parties under subservicing agreements. Mortgage subservicing does not meet the criteria to be recognized as a servicing right asset and, therefore, is not recognized on New Residential’s consolidated balance sheets. The UPB of residential mortgage loans subserviced for others as of December 31, 2019 was $71.2 billion and subservicing revenue of $137.4 million is included within Servicing revenue, net in the Consolidated Statements of Income. Servicer Advances Receivable In connection with its investments in MSRs and MSR financing receivables, New Residential generally acquires any related outstanding servicer advances (not included in the purchase prices described above), which it records at fair value within servicer advances receivable upon acquisition. In addition to receiving cash flows from the MSRs, NRM and NewRez, as servicers, have the obligation to fund future servicer advances on the underlying pool of mortgages (Note 16). These servicer advances are recorded when advanced and are included in Servicer Advances Receivable on the Consolidated Balance Sheets. The following types of advances are included in the Servicer Advances Receivable: December 31, 2019 2018 Principal and interest advances $ 660,807 $ 793,790 Escrow advances (taxes and insurance advances) 2,427,384 2,186,831 Foreclosure advances 163,054 199,203 Total (A) (B) (C) $ 3,251,245 $ 3,179,824 (A) Includes $562.2 million and $231.2 million of servicer advances receivable related to Agency MSRs, respectively, recoverable from the Agencies. (B) Includes $166.5 million and $41.6 million of servicer advances receivable related to Ginnie Mae MSRs, respectively, recoverable from Ginnie Mae. Reserves for advances associated with Ginnie Mae loans in the MSR portfolio are considered in the MSR fair valuation through a nonreimbursable advance loss assumption. (C) Net of $50.1 million and $98.0 million , respectively, in accruals for advance recoveries. New Residential’s Servicer Advances Receivable related to Non-Agency MSRs generally have the highest reimbursement priority (i.e., “top of the waterfall”) and New Residential is generally entitled to repayment from respective loan or REO liquidation proceeds before any interest or principal is paid on the bonds that were issued by the trust. In the majority of cases, advances in excess of respective loan or REO liquidation proceeds may be recovered from pool-level proceeds. Furthermore, to the extent that advances are not recoverable by New Residential as a result of the subservicer’s failure to comply with applicable requirements in the relevant servicing agreements, New Residential has a contractual right to be reimbursed by the subservicer. New Residential assesses the recoverability of Servicer Advance Receivables periodically and as of December 31, 2019 and December 31, 2018 , expected full recovery of the Servicer Advance Receivables. See Note 12 regarding the financing of MSRs. |
SERVICER ADVANCE INVESTMENTS
SERVICER ADVANCE INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
SERVICER ADVANCE INVESTMENTS | SERVICER ADVANCE INVESTMENTS All of New Residential’s Servicer Advance Investments are comprised of outstanding servicer advances, the requirement to purchase all future servicer advances made with respect to a specified pool of residential mortgage loans, and the basic fee component of the related MSR. New Residential elected to record its Servicer Advance Investments, including the right to the basic fee component of the related MSRs, at fair value pursuant to the fair value option for financial instruments to provide users of the financial statements with better information regarding the effects of market factors. A taxable wholly-owned subsidiary of New Residential is the managing member of Advance Purchaser LLC (the “Buyer”), a joint venture entity, and owned an approximately 73.2% interest in the Buyer as of December 31, 2019 . As of December 31, 2019 , third-party co-investors, owning the remaining interest in the Buyer, have funded capital commitments to the Buyer of $389.6 million and New Residential has funded capital commitments to the Buyer of $312.7 million . The Buyer may call capital up to the commitment amount on unfunded commitments and recall capital to the extent the Buyer makes a distribution to the co-investors, including New Residential. As of December 31, 2019 , the noncontrolling third-party co-investors and New Residential had previously funded their commitments, however the Buyer may recall $327.8 million and $305.2 million of capital distributed to the third-party co-investors and New Residential, respectively. Neither the third-party co-investors nor New Residential is obligated to fund amounts in excess of their respective capital commitments, regardless of the capital requirements of the Buyer. The Buyer has purchased servicer advances from Mr. Cooper, is required to purchase all future servicer advances made with respect to this portfolio of loans from Mr. Cooper, and receives cash flows from advance recoveries and the basic fee component of the related MSRs, net of compensation paid back to Mr. Cooper in consideration of Mr. Cooper’s servicing activities. The compensation paid to Mr. Cooper as of December 31, 2019 was approximately 9.2% of the basic fee component of the related MSRs plus a performance fee that represents a portion (up to 100% ) of the cash flows in excess of those required for the Buyer to obtain a specified return on its equity. New Residential has determined that the Buyer is a VIE. See Note 14 for information on the assets and liabilities related to this consolidated VIE. New Residential also acquired a portion of the call rights related to this portfolio of loans. In December 2014, New Residential agreed to acquire (the “SLS Transaction”) 50% of the Excess MSRs and all of the servicer advances and related basic fee portion of the MSR, and a portion of the call rights related to a portfolio of residential mortgage loans which is serviced by SLS. Fortress-managed funds acquired the other 50% of the Excess MSRs. SLS services the loans in exchange for a servicing fee of 10.75 basis points (“bps”) and an incentive fee (the “SLS Incentive Fee”) which is based on the ratio of the outstanding servicer advances to the UPB of the underlying loans. In April 2015, New Residential acquired Servicer Advance Investments and Excess MSRs in connection with the acquisition of HLSS. Through January 1, 2018, Ocwen serviced the underlying loans in exchange for a servicing fee of 12% times the servicing fee collections of the underlying loans, which as of December 31, 2017 and December 31, 2016 was equal to 6.1 bps and 5.9 bps times the UPB of the underlying loans, respectively, and an incentive fee which was reduced by LIBOR plus 2.75% per annum of the amount, if any, of servicer advances outstanding in excess of a defined target. In July 2017, New Residential entered into the Ocwen Transaction as described in Note 6. Subsequent to the Ocwen Transaction, the Servicer Advance Investments (including the related basic fee portion of the MSR) formerly serviced by Ocwen became reclassified, as described in Note 6, as the underlying MSRs are transferred to NRM. The following is a summary of New Residential’s Servicer Advance Investments, including the right to the basic fee component of the related MSRs: Amortized Cost Basis Carrying Value (A) Weighted Average Discount Rate Weighted Average Yield Weighted Average Life (Years) (B) Change in Fair Value Recorded in Other Income for Year then Ended December 31, 2019 Servicer Advance Investments $ 557,444 $ 581,777 5.3 % 5.7 % 6.3 $ 10,288 December 31, 2018 Servicer Advance Investments $ 721,801 $ 735,846 5.9 % 5.8 % 5.7 $ (89,332 ) (A) Carrying value represents the fair value of the Servicer Advance Investments, including the basic fee component of the related MSRs. (B) Weighted Average Life represents the weighted average expected timing of the receipt of expected net cash flows for this investment. The following is additional information regarding the Servicer Advance Investments and related financing: Loan-to-Value (“LTV”) (A) Cost of Funds (C) UPB of Underlying Residential Mortgage Loans Outstanding Servicer Advances Servicer Advances to UPB of Underlying Residential Mortgage Loans Face Amount of Notes and Bonds Payable Gross Net (B) Gross Net December 31, 2019 Servicer Advance Investments (D) $ 31,442,267 $ 462,843 1.5 % $ 443,248 88.3 % 87.2 % 3.4 % 2.8 % December 31, 2018 Servicer Advance Investments (D) $ 40,096,998 $ 620,050 1.5 % $ 574,117 88.3 % 87.2 % 3.7 % 3.1 % (A) Based on outstanding servicer advances, excluding purchased but unsettled servicer advances. (B) Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve. (C) Annualized measure of the cost associated with borrowings. Gross Cost of Funds primarily includes interest expense and facility fees. Net Cost of Funds excludes facility fees. (D) The following types of advances are included in the Servicer Advance Investments: December 31, 2019 2018 Principal and interest advances $ 71,574 $ 108,317 Escrow advances (taxes and insurance advances) 180,047 238,349 Foreclosure advances 211,222 273,384 Total $ 462,843 $ 620,050 Interest income recognized by New Residential related to its Servicer Advance Investments was comprised of the following: Year Ended December 31, 2019 2018 2017 Interest income, gross of amounts attributable to servicer compensation $ 51,940 $ 83,807 $ 871,506 Amounts attributable to base servicer compensation (6,209 ) (8,491 ) (227,585 ) Amounts attributable to incentive servicer compensation (18,065 ) (25,098 ) (115,565 ) Interest income from Servicer Advance Investments $ 27,666 $ 50,218 $ 528,356 See Note 12 regarding the financing of Servicer Advance Investments. |
INVESTMENTS IN REAL ESTATE AND
INVESTMENTS IN REAL ESTATE AND OTHER SECURITIES | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS IN REAL ESTATE AND OTHER SECURITIES | INVESTMENTS IN REAL ESTATE AND OTHER SECURITIES “Agency” residential mortgage backed securities (“RMBS”) are RMBS issued by a government sponsored enterprise, such as Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”). “Non-Agency” RMBS are issued by either public trusts or private label securitization entities. Activities related to New Residential’s investments in real estate and other securities were as follows: Year Ended December 31, 2019 Year Ended December 31, 2018 (in millions) (in millions) Treasury Agency Non-Agency Treasury Agency Non-Agency Purchases Face $ — $ 33,573.5 $ 14,960.4 $ — $ 11,006.7 $ 9,194.8 Purchase Price — 34,335.5 2,059.0 — 11,121.6 3,854.4 Sales Face $ — $ 22,746.3 $ 2,936.2 $ 862.0 $ 9,485.0 $ 115.0 Amortized Cost — 23,337.8 1,852.1 858.0 9,590.6 87.7 Sale Price — 23,449.2 1,949.3 849.8 9,569.2 86.4 Gain (Loss) on Sale — 111.4 97.2 (8.2 ) (21.4 ) (1.3 ) As of December 31, 2019 , New Residential had sold and purchased $5.1 billion and $0.9 billion face amount of Agency RMBS for $5.2 billion and $0.9 billion , respectively, which had not yet been settled. These unsettled sales and purchases were recorded on the balance sheet on trade date as Trades Receivable and Trades Payable. New Residential has exercised its call rights with respect to Non-Agency RMBS trusts and purchased performing and non-performing residential mortgage loans and REO contained in such trusts prior to their termination. In certain cases, New Residential sold portions of the purchased loans through securitizations, and retained bonds issued by such securitizations. In addition, New Residential received par on the securities issued by the called trusts which it owned prior to such trusts’ termination. Refer to Note 9 for further details on these transactions. The following is a summary of New Residential’s real estate and other securities, all of which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired and except for securities which New Residential elected to carry at fair value and record changes to valuation through the income statement. Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Amortized Cost Basis Gains Losses Carrying Value (A) Number of Securities Rating (B) Coupon (C) Yield Life (Years) (D) Principal Subordination (E) December 31, 2019 Agency RMBS (F)(G) $ 11,301,603 $ 11,474,338 $ 57,221 $ (11,616 ) $ 11,519,943 43 AAA 3.17 % 2.78 % 6.0 N/A Non-Agency RMBS (H) (I) 24,857,988 7,307,837 689,158 (39,210 ) 7,957,785 997 B+ 2.90 % 4.70 % 7.0 11.0 % Total/Weighted Average $ 36,159,591 $ 18,782,175 $ 746,379 $ (50,826 ) $ 19,477,728 1,040 A+ 3.03 % 3.53 % 6.4 December 31, 2018 Agency RMBS (F)(G) 2,613,395 2,657,917 7,744 (43 ) 2,665,618 31 AAA 4.01 % 3.70 % 8.1 N/A Non-Agency RMBS (H) (I) 19,539,450 8,554,511 517,861 (101,409 ) 8,970,963 897 B+ 3.40 % 5.63 % 6.9 12.4 % Total/Weighted Average $ 22,152,845 $ 11,212,428 $ 525,605 $ (101,452 ) $ 11,636,581 928 BB+ 3.53 % 5.17 % 7.2 (A) Fair value, which is equal to carrying value for all securities. See Note 13 regarding the estimation of fair value. (B) Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. This excludes the ratings of the collateral underlying 340 bonds with a carrying value of $1,129.3 million which either have never been rated or for which rating information is no longer provided. For each security rated by multiple rating agencies, the lowest rating is used. New Residential used an implied AAA rating for the Agency RMBS. Ratings provided were determined by third party rating agencies, and represent the most recent credit ratings available as of the reporting date and may not be current. (C) Excludes residual bonds, and certain other Non-Agency bonds, with a carrying value of $41.0 million and $3.4 million , respectively, for which no coupon payment is expected. (D) The weighted average life is based on the timing of expected principal reduction on the assets. (E) Percentage of the amortized cost basis of securities that is subordinate to New Residential’s investments, excluding fair value option securities. (F) Includes securities issued or guaranteed by U.S. Government agencies such as Fannie Mae or Freddie Mac. (G) The total outstanding face amount was $11.3 billion and $2.6 billion for fixed rate securities and $0.0 billion and $0.0 billion for floating rate securities as of December 31, 2019 and 2018 , respectively. (H) The total outstanding face amount was $5.4 billion (including $3.2 billion of residual and fair value option notional amount) and $3.8 billion (including $1.5 billion of residual and fair value option notional amount) for fixed rate securities and $19.5 billion (including $12.2 billion of residual and fair value option notional amount) and $15.7 billion (including $7.4 billion of residual and fair value option notional amount) for floating rate securities as of December 31, 2019 and 2018 , respectively. (I) Includes other asset backed securities (“ABS”) consisting primarily of (i) interest-only securities and servicing strips (fair value option securities) which New Residential elected to carry at fair value and record changes to valuation through the income statement, (ii) bonds backed by consumer loans and (iii) corporate debt. Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Amortized Cost Basis Gains Losses Carrying Value Number of Securities Rating Coupon Yield Life (Years) Principal Subordination December 31, 2019 Corporate debt $ 85,000 $ 85,000 $ — $ (1,262 ) $ 83,738 1 B- 8.25 % 8.25 % 5.3 N/A Consumer loan bonds 25,029 25,688 521 (6,190 ) 20,019 6 N/A N/A N/A 1.6 N/A MSR bond — — — — — — N/A — % — % — N/A Fair Value Option Securities Interest-only Securities 11,201,646 308,714 35,882 (19,459 ) 325,137 124 AA+ 1.37 % 10.49 % 2.9 N/A Servicing Strips 4,073,792 40,043 2,431 (4,562 ) 37,912 46 N/A 0.38 % 4.01 % 5.7 N/A December 31, 2018 Corporate debt $ 85,000 $ 85,000 $ — $ (12,325 ) $ 72,675 1 B- 8.25 % 8.25 % 6.3 N/A Consumer loan bonds 56,846 57,480 33 (7,075 ) 50,438 6 B 5.50 % 20.26 % 1.6 N/A MSR bond 228,000 228,000 — (400 ) 227,600 2 BBB- 5.24 % 4.89 % 8.8 N/A Fair Value Option Securities Interest-only Securities 6,832,353 259,725 23,694 (13,025 ) 270,394 79 AA+ 1.38 % 6.58 % 3.0 N/A Servicing Strips 975,048 8,588 1,720 (198 ) 10,110 31 N/A 0.21 % 13.23 % 6.0 N/A Unrealized losses that are considered other-than-temporary and are attributable to credit losses are recognized currently in earnings. During the year ended December 31, 2019 , New Residential recorded OTTI charges of $25.2 million with respect to real estate securities. During the year ended December 31, 2018 , New Residential recorded OTTI of $30.0 million . During the year ended December 31, 2017 , New Residential recorded OTTI of $10.3 million . Any remaining unrealized losses on New Residential’s securities were primarily the result of changes in market factors, rather than issue-specific credit impairment. New Residential performed analyses in relation to such securities, using its best estimate of their cash flows, which support its belief that the carrying values of such securities were fully recoverable over their expected holding period. New Residential has no intent to sell, and is not more likely than not to be required to sell, these securities. The following table summarizes New Residential’s securities in an unrealized loss position as of December 31, 2019 . Amortized Cost Basis Weighted Average Securities in an Unrealized Loss Position Outstanding Face Amount Before Impairment Other-Than- Temporary Impairment (A) After Impairment Gross Unrealized Losses Carrying Value Number of Securities Rating (B) Coupon Yield Life (Years) Less than 12 Months $ 10,805,953 $ 4,798,637 $ (1,208 ) $ 4,797,429 $ (32,342 ) $ 4,765,087 124 AA+ 3.02 % 2.86 % 6.8 12 or More Months 1,704,469 210,058 (2,024 ) 208,034 (18,484 ) 189,550 64 BB+ 4.20 % 6.50 % 4.7 Total/Weighted Average $ 12,510,422 $ 5,008,695 $ (3,232 ) $ 5,005,463 $ (50,826 ) $ 4,954,637 188 AA 3.07 % 3.01 % 6.8 (A) This amount represents OTTI recorded on securities that are in an unrealized loss position as of December 31, 2019 . (B) The weighted average rating of securities in an unrealized loss position for less than 12 months excludes the rating of 51 bonds which either have never been rated or for which rating information is no longer provided. The weighted average rating of securities in an unrealized loss position for 12 or more months excludes the rating of 15 bonds which either have never been rated or for which rating information is no longer provided. New Residential performed an assessment of all of its debt securities that are in an unrealized loss position (an unrealized loss position exists when a security’s amortized cost basis, excluding the effect of OTTI, exceeds its fair value) and determined the following: December 31, 2019 Gross Unrealized Losses Fair Value Amortized Cost Basis After Impairment Credit (A) Non-Credit (B) Securities New Residential intends to sell (C) $ — $ — $ — $ — Securities New Residential is more likely than not to be required to sell (D) — — — N/A Securities New Residential has no intent to sell and is not more likely than not to be required to sell: Credit impaired securities 228,228 237,626 (3,232 ) (9,398 ) Non-credit impaired securities 4,726,409 4,767,837 — (41,428 ) Total debt securities in an unrealized loss position $ 4,954,637 $ 5,005,463 $ (3,232 ) $ (50,826 ) (A) This amount is required to be recorded as OTTI through earnings. In measuring the portion of credit losses, New Residential estimates the expected cash flow for each of the securities. This evaluation includes a review of the credit status and the performance of the collateral supporting those securities, including the credit of the issuer, key terms of the securities and the effect of local, industry and broader economic trends. Significant inputs in estimating the cash flows include New Residential’s expectations of prepayment rates, default rates and loss severities. Credit losses are measured as the decline in the present value of the expected future cash flows discounted at the investment’s effective interest rate. (B) This amount represents unrealized losses on securities that are due to non-credit factors and recorded through other comprehensive income. (C) A portion of securities New Residential intends to sell have a fair value equal to their amortized cost basis after impairment, and, therefore do not have unrealized losses reflected in other comprehensive income as of December 31, 2019 . (D) New Residential may, at times, be more likely than not to be required to sell certain securities for liquidity purposes. While the amount of the securities to be sold may be an estimate, and the securities to be sold have not yet been identified, New Residential must make its best estimate, which is subject to significant judgment regarding future events, and may differ materially from actual future sales. The following table summarizes the activity related to credit losses on debt securities: Year Ended December 31, 2019 2018 Beginning balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income $ 52,803 $ 23,821 Increases to credit losses on securities for which an OTTI was previously recognized and a portion of an OTTI was recognized in other comprehensive income 23,059 16,924 Additions for credit losses on securities for which an OTTI was not previously recognized 2,115 13,093 Reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis — — Reduction for credit losses on securities for which no OTTI was recognized in other comprehensive income at the current measurement date — — Reduction for securities sold/paid off during the period (18,914 ) (1,035 ) Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income $ 59,063 $ 52,803 The table below summarizes the geographic distribution of the collateral securing New Residential’s Non-Agency RMBS: December 31, 2019 2018 Geographic Location (A) Outstanding Face Amount Percentage of Total Outstanding Outstanding Face Amount Percentage of Total Outstanding Western U.S. $ 9,048,847 36.6 % $ 7,318,616 37.7 % Southeastern U.S. 5,983,966 24.2 % 4,613,314 23.8 % Northeastern U.S. 5,416,137 21.9 % 3,829,725 19.7 % Midwestern U.S. 2,562,269 10.4 % 2,063,263 10.6 % Southwestern U.S. 1,440,467 5.8 % 1,321,853 6.8 % Other (B) 296,273 1.1 % 250,833 1.4 % $ 24,747,959 100.0 % $ 19,397,604 100.0 % (A) Excludes $25.0 million and $56.8 million face amount of bonds backed by consumer loans and $85.0 million and $85.0 million face amount of bonds backed by corporate debt as of December 31, 2019 and December 31, 2018 , respectively. (B) Represents collateral for which New Residential was unable to obtain geographic information. New Residential evaluates the credit quality of its real estate securities, as of the acquisition date, for evidence of credit quality deterioration. As a result, New Residential identified a population of real estate securities for which it was determined that it was probable that New Residential would be unable to collect all contractually required payments. For securities acquired during the year ended December 31, 2019 , excluding residual and fair value option securities, the face amount of these real estate securities was $1,045.4 million , with total expected cash flows of $1,020.2 million and a fair value of $612.3 million on the dates that New Residential purchased the respective securities. For those securities acquired during the year ended December 31, 2018 , excluding residual and fair value option securities, the face amount was $1,723.6 million , the total expected cash flows were $1,546.6 million and the fair value was $1,148.7 million on the dates that New Residential purchased the respective securities. The following is the outstanding face amount and carrying value for securities, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments, excluding residual and fair value option securities: Outstanding Face Amount Carrying Value December 31, 2019 $ 5,701,736 $ 3,830,369 December 31, 2018 6,385,306 4,217,242 The following is a summary of the changes in accretable yield for these securities: Year Ended December 31, 2019 2018 Beginning Balance $ 2,245,983 $ 2,000,266 Additions 407,864 397,934 Accretion (239,682 ) (290,014 ) Reclassifications from (to) non-accretable difference (233,683 ) 156,070 Disposals (298,006 ) (18,273 ) Ending Balance $ 1,882,476 $ 2,245,983 See Note 12 regarding the financing of real estate securities. |
INVESTMENTS IN RESIDENTIAL MORT
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS AND REAL ESTATE OWNED | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS AND REAL ESTATE OWNED | INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS AND REAL ESTATE OWNED New Residential accumulated its residential mortgage loan portfolio through various bulk acquisitions and the execution of call rights. As a result of the Shellpoint Acquisition, New Residential, through its wholly owned subsidiary, NewRez, originates residential mortgage loans for sale and securitization to third parties and generally retains the servicing rights on the underlying loans. Loans are accounted for based on New Residential’s strategy for the loan, and on whether the loan was credit-impaired at the date of acquisition. New Residential accounts for loans based on the following categories: • Loans Held-for-Investment (which may include PCD Loans) • Loans Held-for-Investment, at fair value • Loans Held-for-Sale, at lower of cost or fair value • Loans Held-for-Sale, at fair value • Real Estate Owned (“REO”) The following table presents certain information regarding New Residential’s residential mortgage loans outstanding by loan type, excluding REO: December 31, 2019 Outstanding Face Amount Carrying Loan Weighted Average Yield Weighted Average Life (Years) (A) Floating Rate Loans as a % of Face Amount LTV Ratio (B) Weighted Avg. Delinquency (C) Weighted Average FICO (D) Loan Type Performing Loans (G) (J) $ 858,703 $ 859,428 13,627 6.9 % 5.3 8.8 % 76.1 % 15.8 % 646 Purchased Credit Deteriorated Loans (H) 96,420 66,278 945 8.5 % 3.2 21.8 % 91.1 % 60.0 % 588 Total Residential Mortgage Loans, held-for-investment $ 955,123 $ 925,706 14,572 7.1 % 5.1 10.1 % 77.6 % 20.2 % 641 Reverse Mortgage Loans (E) (F) $ 11,628 $ 5,844 28 7.9 % 4.6 5.7 % 149.9 % 69.5 % N/A Performing Loans (G) (I) 839,141 857,821 12,808 4.5 % 4.0 62.7 % 50.1 % 7.8 % 688 Non-Performing Loans (H) (I) 680,736 565,387 5,032 5.2 % 3.1 11.8 % 73.8 % 77.3 % 587 Total Residential Mortgage Loans, held-for-sale $ 1,531,505 $ 1,429,052 17,868 4.9 % 3.6 39.7 % 61.4 % 39.2 % 643 Acquired Loans 3,132,007 3,024,288 19,204 4.0 % 7.0 3.3 % 62.2 % 23.1 % 626 Originated Loans 1,543,799 1,589,324 5,806 3.8 % 28.6 3.5 % 79.0 % 8.2 % 674 Total Residential Mortgage Loans, held-for-sale, at fair value (K) $ 4,675,806 $ 4,613,612 25,010 4.0 % 14.1 3.4 % 67.8 % 18.2 % 642 December 31, 2018 Loan Type Performing Loans (G) (J) $ 636,874 $ 591,264 8,424 8.0 % 4.8 20.3 % 77.7 % 8.9 % 649 Purchased Credit Deteriorated Loans (H) 191,497 144,065 1,556 7.6 % 3.1 16.4 % 84.6 % 71.5 % 596 Total Residential Mortgage Loans, held-for-investment $ 828,371 $ 735,329 9,980 7.9 % 4.4 19.4 % 79.3 % 23.3 % 637 Reverse Mortgage Loans (E) (F) $ 13,807 $ 6,557 37 8.1 % 4.8 10.6 % 142.5 % 67.8 % N/A Performing Loans (G) (I) 408,724 413,883 7,144 4.4 % 3.9 56.6 % 61.3 % 9.0 % 670 Non-Performing Loans (H) (I) 621,700 512,040 5,029 5.5 % 3.0 14.9 % 88.1 % 72.6 % 588 Total Residential Mortgage Loans, held-for-sale $ 1,044,231 $ 932,480 12,210 5.1 % 3.4 31.2 % 78.3 % 47.6 % 621 Acquired Loans 2,295,340 2,153,269 12,873 4.5 % 8.0 7.7 % 75.7 % 14.0 % 626 Originated Loans 638,173 655,260 2,307 5.2 % 28.5 96.3 % 80.0 % 3.8 % 714 Total Residential Mortgage Loans, held-for-sale, at fair value (K) $ 2,933,513 $ 2,808,529 15,180 4.6 % 12.5 27.0 % 76.6 % 11.8 % 645 (A) The weighted average life is based on the expected timing of the receipt of cash flows. (B) LTV refers to the ratio comparing the loan’s unpaid principal balance to the value of the collateral property. (C) Represents the percentage of the total principal balance that is 60+ days delinquent. (D) The weighted average FICO score is based on the weighted average of information updated and provided by the loan servicer on a monthly basis. (E) Represents a 70% participation interest that New Residential holds in a portfolio of reverse mortgage loans. Mr. Cooper holds the other 30% interest and services the loans. The average loan balance outstanding based on total UPB was $0.6 million and $0.5 million at December 31, 2019 and 2018 , respectively. Approximately 45.6% and 54.9% of these loans have reached a termination event at December 31, 2019 and 2018 , respectively. As a result of the termination event, each such loan has matured and the borrower can no longer make draws on these loans. (F) FICO scores are not used in determining how much a borrower can access via a reverse mortgage loan. (G) Performing loans are generally placed on nonaccrual status when principal or interest is 120 days or more past due. (H) Includes loans with evidence of credit deterioration since origination where it is probable that New Residential will not collect all contractually required principal and interest payments. As of December 31, 2019 , New Residential has placed Non-Performing Loans, held-for-sale on nonaccrual status, except as described in (J) below. (I) Includes $36.0 million and $26.9 million UPB of Ginnie Mae EBO performing and non-performing loans as of December 31, 2019 , respectively, on accrual status as contractual cash flows are guaranteed by the FHA. As of December 31, 2018 , these amounts were $24.3 million and $51.9 million , respectively. (J) Includes $107.7 million and $345.1 million UPB of non-agency mortgage loans underlying the SAFT 2013-1 securitization and MDST Trusts, respectively, which are carried at fair value based on New Residential’s election of the fair value option. Interest earned on loans measured at fair value are reported in other income. (K) New Residential elected the fair value option to measure these loans at fair value on a recurring basis. Interest earned on loans measured at fair value are reported in other income. New Residential generally considers the delinquency status, loan-to-value ratios, and geographic area of residential mortgage loans as its credit quality indicators. Delinquency status is a primary credit quality indicator as loans that are more than 60 days past due provide an early warning of borrowers who may be experiencing financial difficulties. Current LTV ratio is an indicator of the potential loss severity in the event of default. Finally, the geographic distribution of the loan collateral also provides insight as to the credit quality of the portfolio, as factors such as the regional economy, home price changes and specific events will affect credit quality. The table below summarizes the geographic distribution of the underlying residential mortgage loans: Percentage of Total Outstanding Unpaid Principal Amount December 31, State Concentration 2019 2018 California 16.1 % 16.7 % New York 9.0 % 11.7 % Florida 8.4 % 8.8 % Texas 7.1 % 4.7 % Georgia 4.8 % 2.7 % New Jersey 4.2 % 5.3 % Illinois 3.6 % 4.0 % Maryland 3.3 % 3.6 % Massachusetts 3.3 % 3.1 % Pennsylvania 2.9 % 3.1 % Other U.S. 37.3 % 36.3 % 100.0 % 100.0 % See Note 12 regarding the financing of residential mortgage loans and related assets. Call Rights New Residential has executed calls with respect to Non-Agency RMBS trusts and purchased performing and non-performing residential mortgage loans and REO assets contained in such trusts prior to their termination. In certain cases, New Residential sold portions of the purchased loans through securitizations, and retained bonds issued by such securitizations. In addition, New Residential received par on the securities issued by the called trusts which it owned prior to such trusts’ termination. For the year ended December 31, 2019 , New Residential executed calls on a total of 140 trusts and recognized $54.4 million of interest income on securities held in the collapsed trusts and $156.2 million of gain on securitizations accounted for as sales. Performing Loans The following table provides past due information regarding New Residential’s Performing Loans, which is an important indicator of credit quality and the establishment of the allowance for loan losses: December 31, 2019 Days Past Due Delinquency Status (A) Current 86.5 % 30-59 7.0 % 60-89 2.7 % 90-119 (B) 0.7 % 120+ (C) 3.1 % 100.0 % (A) Represents the percentage of the total principal balance that corresponds to loans that are in each delinquency status. (B) Includes loans 90-119 days past due and still accruing interest because they are generally placed on nonaccrual status at 120 days or more past due. (C) Represents nonaccrual loans. Activities related to the carrying value of performing residential mortgage loans held-for-investment were as follows: Performing Loans Balance at December 31, 2017 $ 507,615 Shellpoint Acquisition 125,350 Purchases/additional fundings 55,993 Proceeds from repayments (106,236 ) Accretion of loan discount (premium) and other amortization (A) 15,773 Provision for loan losses (1,028 ) Transfer of loans to other assets (B) — Transfer of loans to real estate owned (5,131 ) Transfers of loans to held for sale (1,555 ) Fair value adjustment 472 Balance at December 31, 2018 $ 591,253 Ditech Acquisition (C) 381,039 Purchases/additional fundings — Proceeds from repayments (102,340 ) Accretion of loan discount (premium) and other amortization (A) 12,661 Provision for loan losses (595 ) Transfer of loans to other assets (B) — Transfer of loans to real estate owned (6,223 ) Transfers of loans to held for sale (20,505 ) Fair value adjustment 4,138 Balance at December 31, 2019 $ 859,428 (A) Includes accelerated accretion of discount on loans paid in full and on loans transferred to other assets. (B) Represents loans for which foreclosure has been completed and for which New Residential has made, or intends to make, a claim with the governmental agency that has guaranteed the loans that are now recognized as claims receivable in Other Assets (Note 2). (C) As a result of the Ditech Acquisition, New Residential acquired the servicing on certain residual tranches of Non-Agency RMBS it already owned, and now consolidates the trusts. Activities related to the valuation and loss provision on reverse mortgage loans and allowance for loan losses on performing loans held-for-investment were as follows: Performing Loans Balance at December 31, 2017 $ 196 Provision for loan losses (A) 1,028 Charge-offs (B) (1,224 ) Balance at December 31, 2018 $ — Provision for loan losses (A) 595 Charge-offs (B) (595 ) Balance at December 31, 2019 $ — (A) Based on an analysis of collective borrower performance, credit ratings of borrowers, loan-to-value ratios, estimated value of the underlying collateral, key terms of the loans and historical and anticipated trends in defaults and loss severities at a pool level. (B) Loans, other than PCD loans, are generally charged off or charged down to the net realizable value of the collateral (i.e., fair value less costs to sell), with an offset to the allowance for loan losses, when available information confirms that loans are uncollectible. Purchased Credit Deteriorated Loans New Residential determined at acquisition that the PCD loans acquired would be aggregated into pools based on common risk characteristics (FICO score, delinquency status, collateral type, loan-to-value ratio). Loans aggregated into pools are accounted for as if each pool were a single loan with a single composite interest rate and an aggregate expectation of cash flows, including consideration of involuntary prepayments. Activities related to the carrying value of PCD loans held-for-investment were as follows: Balance at December 31, 2017 $ 183,540 Purchases/additional fundings 29,785 Sales — Proceeds from repayments (38,276 ) Accretion of loan discount and other amortization 24,124 (Allowance) reversal for loan losses (A) — Transfer of loans to real estate owned (28,060 ) Transfer of loans to held-for-sale (27,048 ) Balance at December 31, 2018 $ 144,065 Purchases/additional fundings — Sales — Proceeds from repayments (16,855 ) Accretion of loan discount and other amortization 16,041 (Allowance) reversal for loan losses (2,332 ) Transfer of loans to real estate owned (14,487 ) Transfer of loans to held-for-sale (60,154 ) Balance at December 31, 2019 $ 66,278 (A) An allowance represents the present value of cash flows expected at acquisition that are no longer expected to be collected. A reversal results from an increase to expected cash flows that reverses a prior allowance. The following is a summary of the changes in accretable yield for these loans: Balance at December 31, 2017 $ 88,631 Additions 15,644 Accretion (24,124 ) Reclassifications from non-accretable difference (A) 5,493 Disposals (B) (7,257 ) Transfer of loans to held-for-sale (C) (9,755 ) Balance at December 31, 2018 $ 68,632 Additions — Accretion (16,041 ) Reclassifications from (to) non-accretable difference (A) 9,361 Disposals (B) (11,515 ) Transfer of loans to held-for-sale (C) (13,415 ) Balance at December 31, 2019 $ 37,022 (A) Represents a probable and significant increase (decrease) in cash flows previously expected to be uncollectible. (B) Includes sales of loans or foreclosures, which result in removal of the loan from the PCD loan pool at its carrying amount. (C) Represents loans not initially acquired with the intent to sell for which New Residential determined that it no longer has the intent to hold for the foreseeable future, or until maturity or payoff. Loans Held-for-Sale, at Lower of Cost or Fair Value Activities related to the carrying value of loans held-for-sale, at lower of cost or fair value were as follows: Balance at December 31, 2017 $ 1,725,534 Purchases (A) 3,653,608 Transfer of loans from held-for-investment (B) 28,603 Sales (4,205,375 ) Transfer of loans to other assets (C) (9,811 ) Transfer of loans to real estate owned (54,114 ) Proceeds from repayments (195,797 ) Valuation (provision) reversal on loans (D) (10,168 ) Balance at December 31, 2018 $ 932,480 Purchases (A) 1,124,099 Ditech Acquisition 9,136 Transfer of loans from held-for-investment (B) 80,659 Sales (495,925 ) Transfer of loans to other assets (C) (10,154 ) Transfer of loans to real estate owned (49,459 ) Proceeds from repayments (184,683 ) Valuation (provision) reversal on loans (D) 22,899 Balance at December 31, 2019 $ 1,429,052 (A) Represents loans acquired with the intent to sell. (B) Represents loans not initially acquired with the intent to sell for which New Residential determined that it no longer has the intent to hold for the foreseeable future, or until maturity or payoff. (C) Represents loans for which foreclosure has been completed and for which New Residential has made, or intends to make, a claim with the governmental agency that has guaranteed the loans that are now recognized as claims receivable in Other Assets (Note 2). (D) Represents the fair value adjustments to loans upon transfer to held-for-sale and provision recorded on certain purchased held-for-sale loans, including an aggregate of $5.2 million and $59.2 million of provision related to the call transactions executed during the years ended December 31, 2019 and 2018 , respectively. Loans Held-for-Sale, at Fair Value Activities related to the carrying value of originated loans held-for-sale, at fair value were as follows: Balance at December 31, 2018 $ 655,260 Originations 19,512,072 Ditech Acquisition 618,297 Sales (19,176,028 ) Proceeds from repayments (48,626 ) Transfer of loans to other assets (412 ) Change in fair value 28,761 Balance at December 31, 2019 $ 1,589,324 Activities related to the carrying value of acquired loans held-for-sale, at fair value were as follows: Balance at December 31, 2018 $ 2,153,269 Purchases (A) 7,499,614 Sales (6,362,077 ) Proceeds from repayments (187,311 ) Transfer of loans to real estate owned (4,155 ) Accretion of loan discount and other amortization — Change in fair value (75,052 ) Balance at December 31, 2019 $ 3,024,288 (A) Includes an acquisition date fair value adjustment increase of $13.3 million on loans acquired through call transactions executed during the twelve months ending December 31, 2019 . Net Interest Income December 31, 2019 2018 Interest Income: Acquired Residential Mortgage Loans, held-for-investment $ 60,301 $ 76,129 Acquired Residential Mortgage Loans, held-for-sale 65,926 45,653 Acquired Residential Mortgage Loans, held-for-sale, at fair value 123,446 35,904 Originated Residential Mortgage Loans, held-for-sale, at fair value 52,480 15,658 Total Interest Income on Residential Mortgage Loans 302,153 173,344 Interest Expense: Acquired Residential Mortgage Loans, held-for-investment 19,381 23,618 Acquired Residential Mortgage Loans, held-for-sale 40,067 35,796 Acquired Residential Mortgage Loans, held-for-sale, at fair value 98,850 21,496 Originated Residential Mortgage Loans, held-for-sale,at fair value 10,873 2,690 Total Interest Expense on Residential Mortgage Loans 169,171 83,600 Total Net Interest Income on Residential Mortgage Loans $ 132,982 $ 89,744 Gain on originated mortgage loans, held-for-sale, net NewRez, a wholly owned subsidiary of New Residential, originates conventional, government-insured and nonconforming residential mortgage loans for sale and securitization. The GSEs or Ginnie Mae guarantee conventional and government-insured mortgage securitizations and mortgage investors issue nonconforming private label mortgage securitizations while NewRez generally retains the right to service the underlying residential mortgage loans. In connection with the transfer of loans to the GSEs or mortgage investors, New Residential reports gain on originated mortgage loans, held-for-sale, net in its Consolidated Statements of Income. Gain on originated mortgage loans, held-for-sale, net is summarized below: Year Ended December 31, 2019 2018 (A) Gain on loans originated and sold, net (B) $ 53,554 $ 47,172 Gain (loss) on settlement of mortgage loan origination derivative instruments (C) (53,374 ) 1,234 MSRs retained on transfer of loans (D) 374,450 35,311 Other (E) 42,912 14,057 Realized gain on sale of originated mortgage loans, net $ 417,542 $ 97,774 Change in fair value of loans 28,761 3,695 Change in fair value of interest rate lock commitments (Note 11) 26,151 23 Change in fair value of derivative instruments (Note 11) 3,001 (5,347 ) Gain on originated mortgage loans, held-for-sale, net $ 475,455 $ 96,145 (A) Includes results from July 3, 2018, the date of acquisition. (B) Includes loan origination fees of $421.3 million and $21.8 million in the years ended December 31, 2019 and December 31, 2018 , respectively. (C) Represents settlement of forward securities delivery commitments utilized as an economic hedge for mortgage loans not included within forward loan sale commitments. (D) Represents the initial fair value of the capitalized mortgage servicing rights upon loan sales with servicing retained. (E) Includes fees for services associated with the loan origination process. Real estate owned (REO) New Residential recognizes REO assets at the completion of the foreclosure process or upon execution of a deed in lieu of foreclosure with the borrower. REO assets are managed for prompt sale and disposition at the best possible economic value. Real Estate Owned Balance at December 31, 2017 $ 128,295 Purchases 33,377 Transfer of loans to real estate owned 107,577 Sales (A) (152,725 ) Valuation provision on REO (3,114 ) Balance at December 31, 2018 $ 113,410 Purchases 68,024 Transfer of loans to real estate owned 86,167 Sales (A) (150,431 ) Valuation (provision) reversal on REO 635 Balance at December 31, 2019 $ 117,805 (A) Recognized when control of the property has transferred to the buyer. As of December 31, 2019 , New Residential had residential mortgage loans that were in the process of foreclosure with an unpaid principal balance of $433.1 million . In addition, New Residential has recognized $19.1 million in unpaid claims receivable from FHA on Ginnie Mae EBO loans and reverse mortgage loans for which foreclosure has been completed and for which New Residential has made, or intends to make, a claim. During the first quarter of 2018, New Residential formed entities (the “RPL Borrowers”) that issued securitized debt collateralized by reperforming residential mortgage loans. New Residential evaluated these entities under the VIE model and concluded them to be VIEs. See Note 14 for information on the analysis and assets and liabilities related to these consolidated VIEs. |
INVESTMENTS IN CONSUMER LOANS
INVESTMENTS IN CONSUMER LOANS | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS IN CONSUMER LOANS | INVESTMENTS IN CONSUMER LOANS New Residential, through limited liability companies (together, the “Consumer Loan Companies”), has a co-investment in a portfolio of consumer loans. The portfolio includes personal unsecured loans and personal homeowner loans. OneMain is the servicer of the loans and provides all servicing and advancing functions for the portfolio. As of December 31, 2019 , New Residential owns 53.5% of the limited liability company interests in, and consolidates, the Consumer Loan Companies. On June 4, 2019, the Consumer Loan Companies refinanced the outstanding asset-backed notes with an asset-backed securitization for approximately $938.7 million . The proceeds in excess of the refinanced debt of $13.4 million were distributed to the respective co-investors of which New Residential received approximately $7.8 million . New Residential also purchased certain newly originated consumer loans from a third party (“Consumer Loan Seller”). These loans are not held in the Consumer Loan Companies and have been designated as performing consumer loans, held-for-investment. In addition, see “Equity Method Investees” below. The following table summarizes the investment in consumer loans, held-for-investment held by New Residential: Unpaid Principal Balance Interest in Consumer Loans Carrying Value Weighted Average Coupon Weighted Average Expected Life (Years) (A) Weighted Average Delinquency (B) December 31, 2019 Consumer Loan Companies Performing Loans $ 644,676 53.5 % $ 682,310 18.8 % 4.0 4.7 % Purchased Credit Deteriorated Loans (C) 170,083 53.5 % 136,633 15.5 % 3.7 10.1 % Other - Performing Loans 9,158 100.0 % 8,602 15.1 % 0.7 6.1 % Total Consumer Loans, held-for-investment $ 823,917 $ 827,545 18.0 % 3.9 5.9 % December 31, 2018 Consumer Loan Companies Performing Loans $ 815,341 53.5 % $ 856,563 18.8 % 3.6 5.4 % Purchased Credit Deteriorated Loans (C) 221,910 53.5 % 182,917 16.0 % 3.4 11.6 % Other - Performing Loans 35,326 100.0 % 32,722 14.2 % 0.8 5.6 % Total Consumer Loans, held-for-investment $ 1,072,577 $ 1,072,202 18.1 % 3.5 6.7 % (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Represents the percentage of the total unpaid principal balance that is 30 + days delinquent. Delinquency status is the primary credit quality indicator as it provides early warning of borrowers who may be experiencing financial difficulties. (C) Includes loans with evidence of credit deterioration since origination where it is probable that New Residential will not collect all contractually required principal and interest payments, which are accounted for as PCD loans. See Note 12 regarding the financing of consumer loans. Performing Loans The following table provides past due information regarding New Residential’s performing consumer loans, held-for-investment, which is an important indicator of credit quality and the establishment of the allowance for loan losses: December 31, 2019 Days Past Due Delinquency Status (A) Current 95.3 % 30-59 1.8 % 60-89 1.2 % 90-119 (B) 0.7 % 120+ (B) (C) 1.0 % 100.0 % (A) Represents the percentage of the total unpaid principal balance that corresponds to loans that are in each delinquency status. (B) Includes loans more than 90 days past due and still accruing interest. (C) Interest is accrued up to the date of charge-off at 180 days past due. Activities related to the carrying value of performing consumer loans, held-for-investment were as follows: Performing Loans Balance at December 31, 2017 $ 1,137,814 Purchases — Additional fundings (A) 63,971 Proceeds from repayments (257,182 ) Accretion of loan discount and premium amortization, net 1,940 Gross charge-offs (56,870 ) Additions to the allowance for loan losses, net (388 ) Balance at December 31, 2018 $ 889,285 Purchases — Additional fundings (A) 54,375 Proceeds from repayments (213,525 ) Accretion of loan discount and premium amortization, net 186 Gross charge-offs (38,563 ) Additions to the allowance for loan losses, net (846 ) Balance at December 31, 2019 $ 690,912 (A) Represents draws on consumer loans with revolving privileges. Activities related to the allowance for loan losses on performing consumer loans, held-for-investment were as follows: Collectively Evaluated (A) Individually Impaired (B) Total Balance at December 31, 2017 $ 4,429 $ 1,676 $ 6,105 Provision (reversal) for loan losses 47,839 388 48,227 Net charge-offs (C) (49,664 ) — (49,664 ) Balance at December 31, 2018 $ 2,604 $ 2,064 $ 4,668 Provision (reversal) for loan losses 30,008 846 30,854 Net charge-offs (C) (32,057 ) — (32,057 ) Balance at December 31, 2019 $ 555 $ 2,910 $ 3,465 (A) Represents smaller-balance homogeneous loans that are not individually considered impaired and are evaluated based on an analysis of collective borrower performance, key terms of the loans and historical and anticipated trends in defaults and loss severities, and consideration of the unamortized acquisition discount. (B) Represents consumer loan modifications considered to be troubled debt restructurings (“TDRs”) as they provide concessions to borrowers, primarily in the form of interest rate reductions, who are experiencing financial difficulty. As of December 31, 2019 , there are $18.0 million in UPB and $15.9 million in carrying value of consumer loans classified as TDRs. (C) Consumer loans, other than PCD loans, are charged off when available information confirms that loans are uncollectible, which is generally when they become 180 days past due. Charge-offs are presented net of $8.6 million and $9.0 million in recoveries of previously charged-off UPB in 2019 and 2018 , respectively. Purchased Credit Deteriorated Loans A portion of the consumer loans are considered PCD loans. Activities related to the carrying value of PCD consumer loans, held-for-investment were as follows: Balance at December 31, 2017 $ 236,449 (Allowance) reversal for loan losses (A) (31 ) Proceeds from repayments (90,700 ) Accretion of loan discount and other amortization 37,199 Balance at December 31, 2018 $ 182,917 (Allowance) reversal for loan losses (A) 31 Proceeds from repayments (78,519 ) Accretion of loan discount and other amortization 32,204 Balance at December 31, 2019 $ 136,633 (A) An allowance represents the present value of cash flows expected at acquisition that are no longer expected to be collected. A reversal results from an increase to expected cash flows that reverses a prior allowance. The following is the unpaid principal balance and carrying value for consumer loans, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments: Unpaid Principal Balance Carrying Value December 31, 2019 $ 170,083 $ 136,633 December 31, 2018 221,910 182,917 The following is a summary of the changes in accretable yield for these loans: Balance at December 31, 2017 $ 132,291 Accretion (37,199 ) Reclassifications from (to) non-accretable difference (A) 31,426 Balance at December 31, 2018 $ 126,518 Accretion (32,204 ) Reclassifications from (to) non-accretable difference (A) 10,949 Balance at December 31, 2019 $ 105,263 (A) Represents a probable and significant increase (decrease) in cash flows previously expected to be uncollectible. Equity Method Investees In February 2017, New Residential completed a co-investment, through a newly formed entity, PF LoanCo Funding LLC (“LoanCo”), to purchase up to $5.0 billion worth of newly originated consumer loans from Consumer Loan Seller over a two year term. New Residential, along with three co-investors, each acquired 25% membership interests in LoanCo. New Residential accounts for its investment in LoanCo pursuant to the equity method of accounting because it can exercise significant influence over LoanCo but the requirements for consolidation are not met. As of December 31, 2019 , LoanCo has distributed all net assets to New Residential and LoanCo co-investors and New Residential’s investment in LoanCo carried a $0.0 balance. The final distribution resulted in a gain of $3.6 million on the investment to New Residential. In addition, New Residential and the LoanCo co-investors agreed to purchase warrants to purchase up to 177.7 million shares of Series F convertible preferred stock in the Consumer Loan Seller’s parent company (“ParentCo”), which were valued at approximately $75.0 million in the aggregate as of February 2017, through a newly formed entity, PF WarrantCo Holdings, LP (“WarrantCo”). New Residential acquired a 23.57% interest in WarrantCo, the remaining interest being acquired by three co-investors. WarrantCo has agreed to purchase a pro rata portion of the warrants each time LoanCo closes on a portion of its consumer loan purchase agreement from Consumer Loan Seller. The holder of the warrants has the option to purchase an equivalent number of shares of Series F convertible preferred stock in ParentCo at a price of $0.01 per share. New Residential and LoanCo co-investors are vested in the warrants to purchase an aggregate of 177.7 million Series F convertible preferred stock in ParentCo as of December 31, 2019 . The Series F convertible preferred stock holders have the right to convert such preferred stock to common stock at any time, are entitled to the number of votes equal to the number of shares of common stock into which such shares of convertible preferred stock could be converted, and will have liquidation rights in the event of liquidation. As of December 31, 2019, WarrantCo has distributed all warrants to New Residential and WarrantCo co-investors. The warrants are now held on New Residential’s balance sheet in Other Assets and carried at a $28.0 million . New Residential accounted for its investment in WarrantCo pursuant to the equity method of accounting because it could exercise significant influence over WarrantCo but the requirements for consolidation were not met. The following tables summarize the investment in LoanCo and WarrantCo held by New Residential: December 31, 2019 December 31, 2018 (A) Consumer loans, at fair value $ — $ 231,560 Warrants, at fair value — 103,067 Other assets — 25,971 Warehouse financing — (182,065 ) Other liabilities — (1,142 ) Equity $ — $ 177,391 Undistributed retained earnings $ — $ — New Residential’s investment $ — $ 42,875 New Residential’s ownership 24.3 % 24.2 % Year Ended December 31, 2019 2018 (A) Interest income $ 19,912 $ 42,920 Interest expense (6,487 ) (12,258 ) Change in fair value of consumer loans and warrants (4,596 ) 17,491 Gain on sale of consumer loans (B) (10,711 ) 2,697 Other expenses (3,871 ) (7,257 ) Net income $ (5,753 ) $ 43,593 New Residential’s equity in net income $ (1,438 ) $ 10,803 New Residential’s ownership 25.0 % 24.8 % (A) Data as of, and for the periods ended, November 30, 2018, as a result of the one month reporting lag. (B) During the year ended December 31, 2019 , LoanCo sold, through securitizations which were treated as sales for accounting purposes, $406.1 million in UPB of consumer loans. LoanCo retained $83.9 million of residual interest in the securitizations and distributed them to the LoanCo co-investors, including New Residential. New Residential’s investment in LoanCo and WarrantCo changed as follows: Balance at December 31, 2018 $ 38,294 Contributions to equity method investees 64,499 Distributions of earnings from equity method investees (8,607 ) Distributions of capital from equity method investees (92,748 ) Earnings from investments in consumer loans, equity method investees (1,438 ) Balance at December 31, 2019 $ — |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES New Residential uses interest rate swaps and interest rate caps as economic hedges to hedge a portion of its interest rate risk exposure. Interest rate risk is sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations, as well as other factors. New Residential’s credit risk with respect to economic hedges is the risk of default on New Residential’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. As of December 31, 2019 , New Residential held to-be-announced forward contract positions (“TBAs”) which were entered into as an economic hedge in order to mitigate New Residential’s interest rate risk on certain specified mortgage backed securities and any amounts or obligations owed by or to New Residential are subject to the right of set-off with the TBA counterparty. As part of executing these trades, New Residential has entered into agreements with its TBA counterparties that govern the transactions for the TBA purchases or sales made, including margin maintenance, payment and transfer, events of default, settlements, and various other provisions. New Residential has fulfilled all obligations and requirements entered into under these agreements. As of December 31, 2019 , New Residential also held interest rate lock commitments (“IRLCs”), which represent a commitment to a particular interest rate provided the borrower is able to close the loan within a specified period, and forward loan sale and securities delivery commitments, which represent a commitment to sell specific mortgage loans at prices which are fixed as of the forward commitment date. New Residential enters into forward loan sale and securities delivery commitments in order to hedge the exposure related to IRLCs and mortgage loans that are not covered by mortgage loan sale commitments. In addition, as of December 31, 2019 , New Residential held 42.0 million in warrants to acquire Series F convertible preferred stock in the Consumer Loan Seller, which were valued at $28.0 million and are reported in Other Assets (Note 2) on the balance sheet. New Residential’s derivatives are recorded at fair value on the Consolidated Balance Sheets as follows: December 31, Balance Sheet Location 2019 2018 Derivative assets Interest Rate Caps Other assets $ — $ 3 Interest Rate Swaps Other assets 155 — Interest Rate Lock Commitments Other assets 41,346 10,851 Forward Loan Sale Commitments Other assets — 39 TBAs Other assets — — $ 41,501 $ 10,893 Derivative liabilities Interest Rate Swaps (A) Accrued expenses and other liabilities $ — $ 5,245 Interest Rate Lock Commitments Accrued expenses and other liabilities 1,455 223 Forward Loan Sale Commitments Accrued expenses and other liabilities 27 — TBAs Accrued expenses and other liabilities 5,403 23,921 $ 6,885 $ 29,389 (A) Net of $171.8 million and $106.1 million of related variation margin accounts as of December 31, 2019 and December 31, 2018 , respectively. The following table summarizes notional amounts related to derivatives: December 31, 2019 2018 Interest Rate Caps (A) $ 12,500 $ 50,000 Interest Rate Swaps (B) 4,900,000 4,725,000 Interest Rate Lock Commitments 4,043,935 823,187 Forward Loan Sale Commitments 43,654 30,274 TBAs, short position (C) 5,048,000 5,904,300 TBAs, long position (C) 11,692,212 — 5,067,200 (A) As of December 31, 2019 , caps LIBOR at 4.00% for $12.5 million of notional. The weighted average maturity of the interest rate caps as of December 31, 2019 was 11 months. (B) Includes $4.0 billion notional of Receive LIBOR/Pay Fixed of 3.2% and $0.9 billion notional of Receive Fixed of 1.9% /Pay LIBOR with weighted average maturities of 36 months and 87 months, respectively, as of December 31, 2019 . Includes $4.7 billion notional of Receive LIBOR/Pay Fixed of 3.21% with weighted average maturities of 52 months, as of December 31, 2018 . (C) Represents the notional amount of Agency RMBS, classified as derivatives. The following table summarizes all income (losses) recorded in relation to derivatives: Year Ended December 31, 2019 2018 2017 Change in fair value of derivative investments (A) Interest Rate Caps $ (3 ) $ 431 $ 323 Interest Rate Swaps (58,918 ) (108,098 ) (720 ) Unrealized gains(losses) on Interest Rate Lock Commitments — — — Forward Loan Sale Commitments — — — TBAs 2,778 (567 ) (1,793 ) (56,143 ) (108,234 ) (2,190 ) Gain (loss) on settlement of investments, net Interest Rate Caps $ — $ (603 ) $ (1,911 ) Interest Rate Swaps (8,671 ) 65,823 6,921 TBAs (B) (121,252 ) (10,353 ) (44,224 ) (129,923 ) 54,867 (39,214 ) Gain on originated mortgage loans, held for sale, net (A) Interest Rate Lock Commitments $ 26,151 $ 23 $ — TBAs 3,067 (5,064 ) — Forward Loan Sale Commitments (66 ) (283 ) — 29,152 (5,324 ) — Total income (losses) $ (156,914 ) $ (58,691 ) $ (41,404 ) (A) Represents unrealized gains (losses). (B) Excludes $53.4 million and $1.2 million in loss on settlement included within gain on originated mortgage loans, held-for-sale, net (Note 9) for the years ended December 31, 2019 and 2018 , respectively. |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | DEBT OBLIGATIONS The following table presents certain information regarding New Residential’s debt obligations: December 31, 2019 December 31, 2018 Collateral Debt Obligations/Collateral Outstanding Face Amount Carrying Value (A) Final Stated Maturity (B) Weighted Average Funding Cost Weighted Average Life (Years) Outstanding Face Amortized Cost Basis Carrying Value Weighted Average Life (Years) Carrying Value (A) Repurchase Agreements (C) Agency RMBS (D) $ 15,481,677 $ 15,481,677 Jan-20 to May-20 1.99 % 0.1 $ 15,499,156 $ 15,810,728 $ 15,862,218 4.0 $ 4,346,070 Non-Agency RMBS (E) 7,317,519 7,317,519 Jan-20 to Sep-20 2.76 % 0.1 25,220,620 8,014,409 8,661,349 7.0 7,434,785 Residential Mortgage Loans (F) 5,054,667 5,053,207 Feb-20 to May-21 3.48 % 0.6 5,778,009 5,847,650 5,577,297 15.4 3,678,246 Real Estate Owned (G) (H) 63,846 63,822 Feb-20 to May-21 3.53 % 0.7 N/A N/A 77,556 N/A 94,868 Total Repurchase Agreements 27,917,709 27,916,225 2.47 % 0.2 15,553,969 Notes and Bonds Payable Excess MSRs (I) 217,300 217,300 Feb-20 to Jul-22 4.45 % 2.6 97,846,949 306,803 394,644 5.9 297,563 MSRs (J) 2,646,540 2,640,036 Mar-20 to Jul-24 4.16 % 1.6 394,098,370 3,998,060 4,446,855 5.7 2,360,856 Servicer Advances (K) 3,189,486 3,181,672 Jan-20 to Aug-23 2.90 % 2.1 3,587,593 3,858,818 3,883,151 1.4 3,382,455 Residential Mortgage Loans (L) 866,001 864,451 Apr-20 to Dec-45 4.63 % 8.3 1,183,625 1,199,326 1,171,201 7.1 124,945 Consumer Loans (M) 813,808 816,689 Dec-21 to May-36 3.25 % 3.9 823,806 830,900 827,434 3.9 936,447 Total Notes and Bonds Payable 7,733,135 7,720,148 3.60 % 2.8 7,102,266 Total/Weighted Average $ 35,650,844 $ 35,636,373 2.71 % 0.8 $ 22,656,235 (A) Net of deferred financing costs. (B) All debt obligations with a stated maturity through the date of issuance were refinanced, extended or repaid. (C) These repurchase agreements had approximately $84.1 million of associated accrued interest payable as of December 31, 2019 . (D) All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include approximately $5.3 billion of related trade and other receivables. (E) $6,788.4 million face amount of the Non-Agency RMBS repurchase agreements have LIBOR-based floating interest rates while the remaining $529.1 million face amount of the Non-Agency RMBS repurchase agreements have a fixed rate. This also includes repurchase agreements and related collateral of $7.5 million and $10.0 million , respectively, on retained consumer loan bonds and of $638.6 million and $744.4 million , respectively, on retained bonds collateralized by Agency MSRs. (F) All of these repurchase agreements have LIBOR-based floating interest rates. (G) All of these repurchase agreements have LIBOR-based floating interest rates. (H) Includes financing collateralized by receivables including claims from FHA on Ginnie Mae EBO loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee. (I) Includes $217.3 million of corporate loans which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 2.75% . The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the interests in MSRs that secure these notes. (J) Includes: $1,250.0 million of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin ranging from 2.25% to 2.75% ; $59.5 million of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 2.50% ; and $1,337.1 million of public notes with fixed interest rates ranging from 3.55% to 4.62% . The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the MSRs and MSR financing receivables that secure these notes. (K) $1.9 billion face amount of the notes have a fixed rate while the remaining notes bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 1.0% to 2.0% . Collateral includes Servicer Advance Investments, as well as servicer advances receivable related to the mortgage servicing rights and MSR financing receivables owned by NRM. (L) Represents: (i) a $5.6 million note payable to Mr. Cooper which includes a $2.1 million receivable from government agency and bears interest equal to one-month LIBOR plus 2.88% , (ii) $105.3 million of SAFT 2013-1 mortgage-backed securities issued with fixed interest rates ranging from 3.50% to 3.76% (see Note 13 for fair value details), (iii) $353.5 million of 2019-RPL1 asset-backed notes held by third parties which include $0.3 million of REO and bear interest equal to 4.59% (see Note 13 for fair value details), (iv) $202.5 million of MDST Trusts asset-backed notes held by third parties which bear interest equal to 6.58% (see Note 13 for fair value details), and (v) $199.1 million of asset-backed notes held by third parties which include $1.5 million of REO and bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 1.25% . (M) Includes the SpringCastle debt, which is comprised of the following classes of asset-backed notes held by third parties: $734.7 million UPB of Class A notes with a coupon of 3.20% and a stated maturity date in May 2036; $70.4 million UPB of Class B notes with a coupon of 3.58% and a stated maturity date in May 2036; and $8.7 million UPB of Class C notes with a coupon of 5.06% and a stated maturity date in May 2036. As of December 31, 2019 , New Residential had no outstanding repurchase agreements where the amount at risk with any individual counterparty or group of related counterparties exceeded 10% of New Residential’s stockholders' equity. The amount at risk under repurchase agreements is defined as the excess of carrying amount (or market value, if higher than the carrying amount) of the securities or other assets sold under agreement to repurchase, including accrued interest plus any cash or other assets on deposit to secure the repurchase obligation, over the amount of the repurchase liability (adjusted for accrued interest). General Certain of the debt obligations included above are obligations of New Residential’s consolidated subsidiaries, which own the related collateral. In some cases, such collateral is not available to other creditors of New Residential. New Residential has margin exposure on $27.9 billion of repurchase agreements as of December 31, 2019 . To the extent that the value of the collateral underlying these repurchase agreements declines, New Residential may be required to post margin, which could significantly impact its liquidity. Activities related to the carrying value of New Residential’s debt obligations were as follows: Excess MSRs MSRs Servicer Advances (A) Real Estate Securities Residential Mortgage Loans and REO Consumer Loans Total Balance at December 31, 2017 $ 483,978 $ 1,157,179 $ 4,060,156 $ 6,694,454 $ 2,108,007 $ 1,242,756 $ 15,746,530 Repurchase Agreements: Shellpoint Acquisition — — — 1,957 437,675 — 439,632 Borrowings — — — 90,996,778 8,665,900 — 99,662,678 Repayments — — — (85,912,169 ) (7,298,734 ) — (93,210,903 ) Capitalized deferred financing costs, net of amortization — — — (165 ) 589 — 424 Notes and Bonds Payable: Shellpoint Acquisition — 20,731 — — 120,702 — 141,433 Borrowings 350,787 4,212,855 5,207,084 — 183 — 9,770,909 Repayments (537,227 ) (3,022,785 ) (5,887,384 ) — (136,947 ) (308,316 ) (9,892,659 ) Discount on borrowings, net of amortization — — 41 — — 1,633 1,674 Unrealized loss on notes, fair value — — — — 684 — 684 Capitalized deferred financing costs, net of amortization 25 (7,124 ) 2,558 — — 374 (4,167 ) Balance at December 31, 2018 $ 297,563 $ 2,360,856 $ 3,382,455 $ 11,780,855 $ 3,898,059 $ 936,447 $ 22,656,235 Repurchase Agreements: Borrowings — — — 207,138,969 36,177,659 — 243,316,628 Repayments — — — (196,120,793 ) (34,833,314 ) — (230,954,107 ) Capitalized deferred financing costs, net of amortization — — — 165 (429 ) — (264 ) Notes and Bonds Payable: Ditech Acquisition (B) — — — — 209,459 — 209,459 Borrowings 456,741 2,456,410 4,952,585 — 912,445 928,683 9,706,864 Repayments (537,200 ) (2,178,755 ) (5,149,327 ) — (383,635 ) (1,054,610 ) (9,303,527 ) Discount on borrowings, net of amortization — — 102 — — 6,169 6,271 Unrealized loss on notes, fair value — — — — 1,236 — 1,236 Capitalized deferred financing costs, net of amortization 196 1,525 (4,143 ) — — — (2,422 ) Balance at December 31, 2019 $ 217,300 $ 2,640,036 $ 3,181,672 $ 22,799,196 $ 5,981,480 $ 816,689 $ 35,636,373 (A) New Residential net settles daily borrowings and repayments of the Notes and Bonds Payable on its servicer advances. (B) As a result of the Ditech Acquisition, New Residential acquired the servicing on certain residual tranches of Non-Agency RMBS it already owned, and now consolidates the respective securities. See Note 9 for the associated loans. Maturities New Residential’s debt obligations as of December 31, 2019 had contractual maturities as follows: Year Nonrecourse Recourse Total 2020 $ 527,231 $ 29,183,656 $ 29,710,887 2021 1,030,932 752,496 1,783,428 2022 1,646,318 217,300 1,863,618 2023 400,000 382,215 782,215 2024 — 389,177 389,177 2025 and thereafter 1,121,519 — 1,121,519 $ 4,726,000 $ 30,924,844 $ 35,650,844 Borrowing Capacity The following table represents New Residential’s borrowing capacity as of December 31, 2019 : Debt Obligations/ Collateral Borrowing Capacity Balance Outstanding Available Financing Repurchase Agreements Residential mortgage loans and REO $ 6,296,106 $ 3,685,133 $ 2,610,973 New Loan Originations 4,433,000 1,433,380 2,999,620 Non-Agency RMBS 650,000 529,096 120,904 Notes and Bonds Payable Excess MSRs 150,000 — 150,000 MSRs 1,575,000 1,309,484 265,516 Servicer advances (A) 1,645,000 1,289,521 355,479 Residential Mortgage Loans 650,000 199,132 450,868 Consumer loans 150,000 — 150,000 $ 15,549,106 $ 8,445,746 $ 7,103,360 (A) New Residential’s unused borrowing capacity is available if New Residential has additional eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements, including any applicable advance rate. New Residential pays a 0.02% fee on the unused borrowing capacity. Certain of the debt obligations are subject to customary loan covenants and event of default provisions, including event of default provisions triggered by certain specified declines in New Residential’s equity or a failure to maintain a specified tangible net worth, liquidity, or indebtedness to tangible net worth ratio. New Residential was in compliance with all of its debt covenants as of December 31, 2019 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT U.S. GAAP requires the categorization of fair value measurement into three broad levels which form a hierarchy based on the transparency of inputs to the valuation. Level 1 - Quoted prices in active markets for identical instruments. Level 2 - Valuations based principally on other observable market parameters, including: • Quoted prices in active markets for similar instruments, • Quoted prices in less active or inactive markets for identical or similar instruments, • Other observable inputs (such as interest rates, yield curves, volatilities, prepayment rates, loss severities, credit risks and default rates), and • Market corroborated inputs (derived principally from or corroborated by observable market data). Level 3 - Valuations based significantly on unobservable inputs. New Residential follows this hierarchy for its fair value measurements. The classifications are based on the lowest level of input that is significant to the fair value measurement. The carrying values and fair values of New Residential’s assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of December 31, 2019 were as follows: Fair Value Principal Balance or Notional Amount Carrying Value Level 1 Level 2 Level 3 Total Assets: Investments in: Excess mortgage servicing rights, at fair value (A) $ 88,345,237 $ 379,747 $ — $ — $ 379,747 $ 379,747 Excess mortgage servicing rights, equity method investees, at fair value (A) 33,592,554 125,596 — — 125,596 125,596 Mortgage servicing rights, at fair value (A) 373,850,061 3,967,960 — — 3,967,960 3,967,960 Mortgage servicing rights financing receivables, at fair value (A) 130,984,870 1,718,273 — — 1,718,273 1,718,273 Servicer advance investments, at fair value 462,843 581,777 — — 581,777 581,777 Real estate and other securities, available-for-sale 36,159,591 19,477,728 — 11,519,943 7,957,785 19,477,728 Residential mortgage loans, held-for-investment 502,352 441,263 — — 435,234 435,234 Residential mortgage loans, held-for-sale 1,531,505 1,429,052 — — 1,438,302 1,438,302 Residential mortgage loans, held-for-sale, at fair value (B) 4,675,806 4,613,612 — 1,099,230 3,514,382 4,613,612 Residential mortgage loans, held-for-investment, at fair value (C) 452,771 484,443 — — 484,443 484,443 Residential mortgage loans subject to repurchase 172,336 172,336 — 172,336 — 172,336 Consumer loans, held-for-investment 823,917 827,545 — — 849,739 849,739 Derivative assets 8,360,894 41,501 — 155 41,346 41,501 Cash and cash equivalents 528,737 528,737 528,737 — — 528,737 Restricted cash 162,197 162,197 162,197 — — 162,197 Other assets (D) N/A 60,654 7,952 — 52,703 60,655 $ 35,012,421 $ 698,886 $ 12,791,664 $ 21,547,287 $ 35,037,837 Liabilities: Repurchase agreements $ 27,917,709 $ 27,916,225 $ — $ 27,917,709 $ — $ 27,917,709 Notes and bonds payable (E) 7,733,135 7,720,148 — — 7,779,060 7,779,060 Residential mortgage loan repurchase liability 172,336 172,336 — 172,336 — 172,336 Derivative liabilities 17,379,407 6,885 — 5,430 1,455 6,885 Excess spread financing 2,962,629 31,777 — — 31,777 31,777 Contingent consideration N/A 55,222 — — 55,222 55,222 $ 35,902,593 $ — $ 28,095,475 $ 7,867,514 $ 35,962,989 (A) The notional amount represents the total unpaid principal balance of the residential mortgage loans underlying the MSRs, MSR financing receivables, and Excess MSRs. New Residential does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios. (B) Includes $267.7 million in fair value of loans that are 90 days or more past due. (C) Includes $21.6 million in fair value of loans that are 90 days or more past due. (D) Excludes the indirect equity investment in a commercial redevelopment project that is accounted for at fair value on a recurring basis based on the NAV of New Residential’s investment. The investment had a fair value of $74.0 million as of December 31, 2019 . (E) Includes the MDST Trusts, SAFT 2013-1 mortgage-backed securities and the 2019-RPL1 asset-backed notes issued for which the fair value option for financial instruments was elected and resulted in a fair value of $659.7 million as of December 31, 2019 . The carrying values and fair values of New Residential’s assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of December 31, 2018 were as follows: Fair Value Principal Balance or Notional Amount Carrying Value Level 1 Level 2 Level 3 Total Assets Investments in: Excess mortgage servicing rights, at fair value (A) $ 106,426,363 $ 447,860 $ — $ — $ 447,860 $ 447,860 Excess mortgage servicing rights, equity method investees, at fair value (A) 41,707,963 147,964 — — 147,964 147,964 Mortgage servicing rights, at fair value (A) 258,462,703 2,884,100 — — 2,884,100 2,884,100 Mortgage servicing rights financing receivables, at fair value (A) 130,516,565 1,644,504 — — 1,644,504 1,644,504 Servicer advance investments, at fair value 620,050 735,846 — — 735,846 735,846 Real estate and other securities, available-for-sale 22,152,845 11,636,581 — 2,665,618 8,970,963 11,636,581 Residential mortgage loans, held-for-investment 706,111 614,241 — — 625,321 625,321 Residential mortgage loans, held-for-sale 1,043,550 932,480 — — 958,970 958,970 Residential mortgage loans, held-for-sale, at fair value (B) 2,934,727 2,808,529 — 213,882 2,594,647 2,808,529 Residential mortgage loans, held-for-investment, at fair value (C) 122,260 121,088 — — 121,088 121,088 Residential mortgage loans subject to repurchase 121,602 121,602 — 121,602 — 121,602 Consumer loans, held-for-investment 1,072,577 1,072,202 — — 1,054,820 1,054,820 Derivative assets 840,179 10,893 — 42 10,851 10,893 Cash and cash equivalents 251,058 251,058 251,058 — — 251,058 Restricted cash 164,020 164,020 164,020 — — 164,020 Other assets (D) N/A 16,991 7,778 — 9,213 16,991 $ 23,609,959 $ 422,856 $ 3,001,144 $ 20,206,147 $ 23,630,147 Liabilities: Repurchase agreements $ 15,555,156 $ 15,553,969 $ — $ 15,555,156 $ — $ 15,555,156 Notes and bonds payable 7,117,909 7,102,266 — — 7,076,400 7,076,400 Residential mortgage loans repurchase liability 121,602 121,602 — 121,602 — 121,602 Derivative liabilities 15,759,782 29,389 — 29,166 223 29,389 Excess spread financing 3,492,587 39,304 — — 39,304 39,304 Contingent consideration N/A 40,842 — — 40,842 40,842 $ 22,887,372 $ — $ 15,705,924 $ 7,156,769 $ 22,862,693 (A) The notional amount represents the total unpaid principal balance of the residential mortgage loans underlying the MSRs, MSR financing receivables, and Excess MSRs. New Residential does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios. (B) Includes $88.7 million in fair value of loans that are 90 days or more past due. (C) Includes $0.4 million in fair value of loans that are 90 days or more past due. (D) Excludes the indirect equity investment in a commercial redevelopment project that is accounted for at fair value on a recurring basis based on the NAV of New Residential’s investment. The investment had a fair value of $74.3 million as of December 31, 2018 . New Residential has various processes and controls in place to ensure that fair value is reasonably estimated. With respect to the broker and pricing service quotations, to ensure these quotes represent a reasonable estimate of fair value, New Residential’s quarterly procedures include a comparison to quotations from different sources, outputs generated from its internal pricing models and transactions New Residential has completed with respect to these or similar assets or liabilities, as well as on its knowledge and experience of these markets. With respect to fair value estimates generated based on New Residential’s internal pricing models, New Residential corroborates the inputs and outputs of the internal pricing models by comparing them to available independent third party market parameters, where available, and models for reasonableness. New Residential believes its valuation methods and the assumptions used are appropriate and consistent with other market participants. Fair value measurements categorized within Level 3 are sensitive to changes in the assumptions or methodology used to determine fair value and such changes could result in a significant increase or decrease in the fair value. New Residential’s assets measured at fair value on a recurring basis using Level 3 inputs changed as follows: Level 3 Excess MSRs (A) Excess MSRs in Equity Method Investees (A)(B) Agency Non-Agency MSRs (A) Mortgage Servicing Rights Financing Receivables (A) Servicer Advance Investments Non-Agency RMBS Derivatives (C) Residential Mortgage Loans Total Balance at December 31, 2017 $ 324,636 $ 849,077 $ 171,765 $ 1,735,504 $ 598,728 $ 4,027,379 $ 5,974,789 $ — $ — $ 13,681,878 Transfers (D) Transfers from Level 3 — — — — — — — — — — Transfers to Level 3 — — — — — — — — — — Shellpoint Acquisition — — — 275,964 (124,652 ) — — 10,604 179,644 341,560 Gains (losses) included in net income Included in other-than-temporary impairment on securities (E) — — — — — — (24,940 ) — — (24,940 ) Included in change in fair value of investments in excess mortgage servicing rights (E) (18,099 ) (40,557 ) — — — — — — — (58,656 ) Included in change in fair value of investments in excess mortgage servicing rights, equity method investees (E) — — 8,357 — — — — — — 8,357 Included in servicing revenue, net (F) — — — (199,836 ) — — — — — (199,836 ) Included in change in fair value of investments in mortgage servicing rights financing receivable (E) — — — — 31,550 — — — — 31,550 Included in change in fair value of servicer advance investments — — — — — (89,332 ) — — — (89,332 ) Included in change in fair value of investments in residential mortgage loans — — — — — — — — 46,065 46,065 Included in gain (loss) on settlement of investments, net — 40,417 — — — 72,585 (1,288 ) — — 111,714 Included in other income (loss), net (E) 6,137 307 — — — — 10,283 24 (175 ) 16,576 Gains (losses) included in other comprehensive income (G) — — — — — — 31,031 — — 31,031 Interest income 21,936 22,504 — — — 50,218 377,018 — — 471,676 Purchases, sales and repayments Purchases — — — 1,042,933 128,357 2,332,989 3,854,439 — 2,107,204 9,465,922 Proceeds from sales (19,084 ) — — (5,776 ) (7,472 ) — (86,448 ) — — (118,780 ) Proceeds from repayments (58,139 ) (69,654 ) (32,158 ) — — (2,455,155 ) (1,163,921 ) — (2,111 ) (3,781,138 ) Originations — — — 35,311 — — — — — 35,311 Ocwen Transaction (Note 6) — (611,621 ) — — 1,017,993 (3,202,838 ) — — — (2,796,466 ) Balance at December 31, 2018 $ 257,387 $ 190,473 $ 147,964 $ 2,884,100 $ 1,644,504 $ 735,846 $ 8,970,963 $ 10,628 $ 2,330,627 $ 17,172,492 Level 3 Excess MSRs (A) Excess MSRs in Equity Method Investees (A)(B) Agency Non-Agency MSRs (A) Mortgage Servicing Rights Financing Receivables (A) Servicer Advance Investments Non-Agency RMBS Derivatives (C) Residential Mortgage Loans Total (continued) Transfers (D) Transfers from Level 3 — — — — — — — — (32,806 ) (32,806 ) Transfers to Level 3 — — — — — — — — 315,577 315,577 Ditech Acquisition — — — 387,170 — — (178,435 ) — 381,039 589,774 Transfers from investments in mortgage servicing rights financing receivables to investments in mortgage servicing rights — — — 367,121 (367,121 ) — — — — — Gains (losses) included in net income Included in other-than-temporary impairment on securities (E) — — — — — — (25,174 ) — — (25,174 ) Included in change in fair value of investments in excess mortgage servicing rights (E) (7,559 ) (2,946 ) — — — — — — — (10,505 ) Included in change in fair value of investments in excess mortgage servicing rights, equity method investees (E) — — 6,800 — — — — — — 6,800 Included in servicing revenue, net (F) — — — (721,356 ) — — — — — (721,356 ) Included in change in fair value of investments in mortgage servicing rights financing receivable (E) — — — — (189,023 ) — — — — (189,023 ) Included in change in fair value of servicer advance investments — — — — — 10,288 — — — 10,288 Included in change in fair value of investments in residential mortgage loans — — — — — — — — (63,347 ) (63,347 ) Included in gain (loss) on settlement of investments, net 1,479 30 — — — — 97,191 — — 98,700 Included in other income (loss), net (E) 1,523 819 — — — 2,101 29,263 — 33,706 Gains (losses) included in other comprehensive income (G) — — — — — 238,217 — — 238,217 Interest income 14,895 17,752 — — — 27,666 302,705 — — 363,018 Purchases, sales and repayments Purchases — — — 690,049 735,152 1,622,808 2,058,953 — 11,110,245 16,217,207 Proceeds from sales (10,018 ) (57 ) — (1,539 ) (22,989 ) — (1,949,300 ) — (10,638,483 ) (12,622,386 ) Proceeds from repayments (48,074 ) (35,957 ) (29,168 ) (11,625 ) (82,250 ) (1,814,831 ) (1,559,436 ) — (248,503 ) (3,829,844 ) Originations and other — — — 374,040 — — — 844,476 1,218,516 Balance at December 31, 2019 $ 209,633 $ 170,114 $ 125,596 $ 3,967,960 $ 1,718,273 $ 581,777 $ 7,957,785 $ 39,891 $ 3,998,825 $ 18,769,854 (A) Includes the recapture agreement for each respective pool, as applicable. (B) Amounts represent New Residential’s portion of the Excess MSRs held by the respective joint ventures in which New Residential has a 50% interest. (C) For the purpose of this table, the IRLC asset and liability positions are shown net. (D) Transfers are assumed to occur at the beginning of the respective period. (E) The gains (losses) recorded in earnings during the period are attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting dates and realized gains (losses) recorded during the period. (F) The components of Servicing revenue, net are disclosed in Note 6. (G) These gains (losses) were included in net unrealized gain (loss) on securities in the Consolidated Statements of Comprehensive Income. New Residential’s liabilities measured at fair value on a recurring basis using Level 3 inputs changed as follows: Level 3 Excess Spread Financing Mortgage-Backed Securities Issued Contingent Consideration Total Balance at December 31, 2017 $ — $ — $ — $ — Transfers (A) Transfers from Level 3 — — — — Transfers to Level 3 — — — — Shellpoint Acquisition 48,262 120,702 39,262 208,226 Gains (losses) included in net income Included in other-than-temporary impairment on securities (B) — — — — Included in change in fair value of investments in excess mortgage servicing rights — — — — Included in change in fair value of investments in excess mortgage servicing rights, equity method investees (B) — — — — Included in servicing revenue, net (C) (8,591 ) — — (8,591 ) Included in change in fair value of investments in notes receivable - rights to MSRs — — — — Included in change in fair value of servicer advance investments — — — — Included in gain (loss) on settlement of investments, net — — — — Included in other income (B) — 684 1,580 2,264 Gains (losses) included in other comprehensive income, net of tax (D) — — — — Interest income — — — — Purchases, sales and payments Purchases — — — — Proceeds from sales — — — — Payments — (4,338 ) — (4,338 ) Other (367 ) — — (367 ) Balance at December 31, 2018 $ 39,304 $ 117,048 $ 40,842 $ 197,194 Transfers (A) Transfers from Level 3 — — — — Transfers to Level 3 — — — — Acquisitions — — 13,893 13,893 Ditech Acquisition (E) — 209,459 — 209,459 Gains (losses) included in net income Included in other-than-temporary impairment on securities (B) — — — — Included in change in fair value of investments in excess mortgage servicing rights — — — — Included in change in fair value of investments in excess mortgage servicing rights, equity method investees (B) — — — — Included in servicing revenue, net (C) (8,406 ) — — (8,406 ) Included in change in fair value of investments in notes receivable - rights to MSRs — — — — Included in change in fair value of servicer advance investments — — — — Included in change in fair value of investments in residential mortgage loans — — — — Included in gain (loss) on settlement of investments, net — — — — Included in other income (B) — 1,236 10,487 11,723 Gains (losses) included in other comprehensive income, net of tax (D) — — — — Interest income — — — — Purchases, sales and payments Purchases — 378,569 — 378,569 Proceeds from sales — — — — Payments — (46,574 ) (10,000 ) (56,574 ) Other 879 — — 879 Balance at December 31, 2019 $ 31,777 $ 659,738 $ 55,222 $ 746,737 (A) Transfers are assumed to occur at the beginning of the respective period. (B) The gains (losses) recorded in earnings during the period are attributable to the change in unrealized gains (losses) relating to Level 3 liabilities still held at the reporting dates and realized gains (losses) recorded during the period. (C) The components of Servicing revenue, net are disclosed in Note 6. (D) These gains (losses) were included in net unrealized gain (loss) on securities in the Consolidated Statements of Comprehensive Income. (E) As a result of the Ditech Acquisition, New Residential acquired MSRs and the servicing on certain residual tranches of Non-Agency RMBS it already owned, and now consolidates the respective securities. See Note 12 for the associated liability. Investments in Excess MSRs, Excess MSRs Equity Method Investees, MSRs and MSR Financing Receivables Valuation Fair value estimates of New Residential’s investments in MSRs and Excess MSRs were based on internal pricing models. The valuation technique is based on discounted cash flows. Significant inputs used in the valuations included expectations of prepayment rates, delinquency rates, recapture rates, the mortgage servicing amount or excess mortgage servicing amount of the underlying residential mortgage loans, as applicable, and discount rates that market participants would use in determining the fair values of mortgage servicing rights on similar pools of residential mortgage loans. In addition, for investments in MSRs, significant inputs included the market-level estimated cost of servicing. In order to evaluate the reasonableness of its fair value determinations, New Residential engages an independent valuation firm to separately measure the fair value of its investments in MSRs and Excess MSRs. The independent valuation firm determines an estimated fair value range of each pool based on its own models and issues a “fairness opinion” with this range. New Residential compares the range included in the opinion to the value generated by its internal models. To date, New Residential has not made any significant valuation adjustments as a result of these fairness opinions. Significant increases (decreases) in the discount rates, prepayment or delinquency rates, or costs of servicing, in isolation would result in a significantly lower (higher) fair value measurement, whereas significant increases (decreases) in the recapture rates or mortgage servicing amount or excess mortgage servicing amount, as applicable, in isolation would result in a significantly higher (lower) fair value measurement. Generally, a change in the delinquency rate assumption is accompanied by a directionally similar change in the assumption used for the prepayment rate. The following tables summarize certain information regarding the weighted average inputs used: December 31, 2019 Significant Inputs (A) Prepayment Rate (B) Delinquency (C) Recapture Rate (D) Mortgage Servicing Amount (E) Collateral Weighted Average Maturity Years (F) Excess MSRs Directly Held (Note 5) Agency Original Pools 8.6 % 1.1 % 20.3 % 21 20 Recaptured Pools 10.7 % 0.5 % 27.8 % 23 23 9.2 % 0.9 % 22.3 % 22 21 Non-Agency (G) Mr. Cooper and SLS Serviced: Original Pools 9.7 % N/A 15.5 % 15 24 Recaptured Pools 7.5 % N/A 17.4 % 24 23 9.4 % N/A 15.8 % 16 24 Total/Weighted Average--Excess MSRs Directly Held 9.3 % 0.9 % 19.4 % 19 22 Excess MSRs Held through Equity Method Investees (Note 5) Agency Original Pools 9.3 % 1.4 % 23.7 % 19 19 Recaptured Pools 10.3 % 0.8 % 26.7 % 24 22 Total/Weighted Average--Excess MSRs Held through Investees 9.8 % 1.1 % 25.1 % 21 20 Total/Weighted Average--Excess MSRs All Pools 9.5 % 1.0 % 21.4 % 20 21 MSRs (Note 6) Agency (H) Mortgage Servicing Rights (I) 12.5 % 1.0 % 23.3 % 28 22 MSR Financing Receivables (I) 15.4 % 0.4 % 15.8 % 27 25 Non-Agency Mortgage Servicing Rights 11.6 % 1.2 % 22.1 % 31 16 MSR Financing Receivables (I) 8.3 % 14.4 % 9.3 % 47 25 Ginnie Mae Mortgage Servicing Rights (J) 16.2 % 4.4 % 28.1 % 42 27 December 31, 2018 Significant Inputs (A) Prepayment Rate (B) Delinquency (C) Recapture Rate (D) Mortgage Servicing Amount (E) Collateral Weighted Average Maturity Years (F) Excess MSRs Directly Held (Note 5) Agency Original Pools 9.8 % 2.5 % 26.3 % 21 21 Recaptured Pools 8.0 % 2.1 % 23.6 % 22 24 Recapture Agreement 7.9 % 2.2 % 24.8 % 22 — 9.1 % 2.4 % 25.4 % 21 22 Non-Agency (G) Mr. Cooper and SLS Serviced: Original Pools 10.4 % N/A 15.4 % 15 24 Recaptured Pools 8.0 % N/A 19.9 % 23 24 Recapture Agreement 7.9 % N/A 19.8 % 20 — 9.9 % N/A 16.3 % 16 24 Total/Weighted Average--Excess MSRs Directly Held 9.4 % 2.4 % 21.5 % 19 23 Excess MSRs Held through Equity Method Investees (Note 5) Agency Original Pools 10.9 % 3.9 % 29.6 % 19 20 Recaptured Pools 8.5 % 2.6 % 28.8 % 23 23 Recapture Agreement 8.6 % 2.7 % 30.4 % 23 — Total/Weighted Average--Excess MSRs Held through Investees 9.6 % 3.2 % 29.4 % 21 21 Total/Weighted Average--Excess MSRs All Pools 9.5 % 2.7 % 24.5 % 20 22 MSRs (Note 6) Agency (H) Mortgage Servicing Rights (I) 9.4 % 1.0 % 22.2 % 26 22 MSR Financing Receivables (I) 9.5 % 0.9 % 14.7 % 27 20 Non-Agency Mortgage Servicing Rights (I) 13.2 % 0.9 % 10.0 % 25 25 MSR Financing Receivables (I) 8.2 % 17.2 % 5.0 % 45 26 Ginnie Mae Mortgage Servicing Rights (J) 11.2 % 3.9 % 24.2 % 33 27 (A) Weighted by fair value of the portfolio. (B) Projected annualized weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (C) Projected percentage of residential mortgage loans in the pool for which the borrower will miss its mortgage payments. (D) Percentage of voluntarily prepaid loans that are expected to be refinanced by the related servicer or subservicer, as applicable. (E) Weighted average total mortgage servicing amount, in excess of the basic fee as applicable, measured in bps. As of December 31, 2019 and 2018 , weighted average costs of subservicing of $7.18 and $7.30 , respectively, per loan per month was used to value the agency MSRs, including MSR Financing Receivables. Weighted average costs of subservicing of $11.28 and $11.45 , respectively, per loan per month was used to value the non-agency MSRs, including MSR Financing Receivables. Weighted average cost of subservicing of $9.20 and $10.06 , respectively, per loan per month was used to value the Ginnie Mae MSRs. (F) Weighted average maturity of the underlying residential mortgage loans in the pool. (G) For certain pools, the Excess MSR will be paid on the total UPB of the mortgage portfolio (including both performing and delinquent loans until REO). For these pools, no delinquency assumption is used. (H) Represents Fannie Mae and Freddie Mac MSRs. (I) For certain pools, recapture rate represents the expected recapture rate with the successor subservicer appointed by NRM. (J) Includes valuation of the related Excess spread financing (Note 6). With respect to valuing the Ocwen-serviced MSR financing receivables, which include a significant servicer advances receivable component, the cost of financing servicer advances receivable is assumed to be LIBOR plus 1.8% . As of December 31, 2019 and 2018 , weighted average discount rates of 7.8% and 8.8% , respectively, were used to value New Residential’s investments in Excess MSRs (directly and through equity method investees). As of December 31, 2019 and 2018 , weighted average discount rates of 7.8% and 8.7% were used to value New Residential’s investments in MSRs, respectively. As of December 31, 2019 and 2018 , weighted average discount rates of 8.9% and 10.3% , respectively, were used to value New Residential’s investments in MSR financing receivables. All of the assumptions listed have some degree of market observability, based on New Residential’s knowledge of the market, relationships with market participants, and use of common market data sources. New Residential uses assumptions that generate its best estimate of future cash flows for each investment in MSRs and Excess MSRs. When valuing investments in MSRs and Excess MSRs, New Residential uses the following criteria to determine the significant inputs: • Prepayment Rate: Prepayment rate projections are in the form of a “vector” that varies over the expected life of the pool. The prepayment vector specifies the percentage of the collateral balance that is expected to prepay voluntarily (i.e., pay off) and involuntarily (i.e., default) at each point in the future. The prepayment vector is based on assumptions that reflect macroeconomic conditions like home price appreciation, current level of interest rates as well as loan level factors such as the borrower’s interest rate, FICO score, loan-to-value ratio, debt-to-income ratio, vintage on a loan level basis. New Residential considers historical prepayment experience associated with the collateral when determining this vector and also reviews industry research on the prepayment experience of similar loan pools. This data is obtained from remittance reports, market data services and other market sources. • Delinquency Rates: For existing mortgage pools, delinquency rates are based on the recent pool-specific experience of loans that missed their latest mortgage payments. Delinquency rate projections are in the form of a “vector” that varies over the expected life of the pool. The delinquency vector specifies the percentage of the unpaid principal balance that is expected to be delinquent each month. The delinquency vector is based on assumptions that reflect macroeconomic conditions, the historical delinquency rates for the pools and the underlying borrower characteristics such as the FICO score and loan-to-value ratio. For the recapture agreements and recaptured loans, delinquency rates are based on the experience of similar loan pools originated by New Residential’s servicers and subservicers, and delinquency experience over the past year. New Residential believes this time period provides a reasonable sample for projecting future delinquency rates while taking into account current market conditions. Additional consideration is given to loans that are expected to become 30 or more days delinquent. • Recapture Rates: Recapture rates are based on actual average recapture rates experienced by New Residential’s servicers and subservicers on similar residential mortgage loan pools. Generally, New Residential looks to three to six months ’ worth of actual recapture rates, which it believes provides a reasonable sample for projecting future recapture rates while taking into account current market conditions. Recapture rate projections are in the form of a “vector” that varies over the expected life of the pool. The recapture vector specifies the percentage of the refinanced loans that have been recaptured within the pool by the servicer or subservicer. The recapture vector takes into account the nature and timeline of the relationship between the borrowers in the pool and the servicer or subservicer, the customer retention programs offered by the servicer or subservicer and the historical recapture rates. • Mortgage Servicing Amount or Excess Mortgage Servicing Amount: For existing mortgage pools, mortgage servicing amount and excess mortgage servicing amount projections are based on the actual total mortgage servicing amount, in excess of a base fee as applicable. For loans expected to be refinanced by the related servicer or subservicer and subject to a recapture agreement, New Residential considers the mortgage servicing amount or excess mortgage servicing amount on loans recently originated by the related servicer over the past three months and other general market considerations. New Residential believes this time period provides a reasonable sample for projecting future mortgage servicing amounts and excess mortgage servicing amounts while taking into account current market conditions. • Discount Rate: The discount rates used by New Residential are derived from market data on pricing of mortgage servicing rights backed by similar collateral. • Cost of subservicing: The costs of subservicing used by New Residential are based on available market data for various loan types and delinquency statuses. New Residential uses different prepayment and delinquency assumptions in valuing the MSRs and Excess MSRs relating to the original loan pools, the recapture agreements and the MSRs and Excess MSRs relating to recaptured loans. The prepayment rate and delinquency rate assumptions differ because of differences in the collateral characteristics, refinance potential and expected borrower behavior for original loans and loans which have been refinanced. The assumptions for recapture and discount rates when valuing investments in MSRs and Excess MSRs and recapture agreements are based on historical recapture experience and market pricing. Servicer Advance Investments Valuation New Residential uses internal pricing models to estimate the future cash flows related to the Servicer Advance Investments that incorporate significant unobservable inputs and include assumptions that are inherently subjective and imprecise. New Residential’s estimations of future cash flows include the combined cash flows of all of the components that comprise the Servicer Advance Investments: existing advances, the requirement to purchase future advances, the recovery of advances and the right to the basic fee component of the related MSR. The factors that most significantly impact the fair value include (i) the rate at which the servicer advance balance changes over the term of the investment, (ii) the UPB of the underlying loans with respect to which New Residential has the obligation to make advances and owns the basic fee component of the related MSR which, in turn, is driven by prepayment rates and (iii) the percentage of delinquent loans with respect to which New Residential owns the basic fee component of the related MSR. The valuation technique is based on discounted cash flows. Significant inputs used in the valuations included the assumptions used to establish the aforementioned cash flows and discount rates that market participants would use in determining the fair values of Servicer Advance Investments. In order to evaluate the reasonableness of its fair value determinations, New Residential engages an independent valuation firm to separately measure the fair value of its Servicer Advance Investments. The independent valuation firm determines an estimated fair value range based on its own models and issues a “fairness opinion” with this range. New Residential compares the range included in the opinion to the value generated by its internal models. To date, New Residential has not made any significant valuation adjustments as a result of these fairness opinions. Significant increases (decreases) in the advance balance-to-UPB ratio, prepayment rate, delinquency rate, or discount rate, in isolation, would result in a significantly lower (higher) fair value measurement. Generally, a change in the delinquency rate assumption is accompanied by a directionally similar change in the assumption used for the advance balance-to-UPB ratio. The following table summarizes certain information regarding the inputs used in valuing the Servicer Advance Investments, including the basic fee component of the related MSRs: Significant Inputs Weighted Average Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans Prepayment Rate (A) Delinquency Mortgage Servicing Amount (B) Discount Rate Collateral Weighted Average Maturity (Years) (C) December 31, 2019 1.4 % 10.6 % 15.7 % 19.6 bps 5.3 % 22.9 December 31, 2018 1.4 % 10.9 % 17.7 % 19.6 bps 5.9 % 23.4 (A) Projected annual weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (B) Mortgage servicing amount is net of 10.1 bps and 9.6 bps which represent the amounts New Residential paid its servicers as a monthly servicing fee as of December 31, 2019 and 2018 , respectively. (C) Weighted average maturity of the underlying residential mortgage loans in the pool. The valuation of the Servicer Advance Investments also takes into account the performance fee paid to the servicer, which in the case of the Buyer is bas |
CONSOLIDATED VARIABLE INTEREST
CONSOLIDATED VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATED VARIABLE INTEREST ENTITIES | Consolidated Variable Interest Entities VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. A VIE is required to be consolidated only by its primary beneficiary, which is defined as the party who has the power to direct the activities of a VIE that most significantly impact its economic performance and who has the obligation to absorb losses or the right to receive benefits from the VIE that could be potentially significant to the VIE. To assess whether New Residential has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, New Residential considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE’s economic performance; and second, identifying which party, if any, has power over those activities. To assess whether New Residential has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, New Residential considers all of its economic interests and applies judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Servicer Advance Investment New Residential, through a taxable wholly owned subsidiary, is the managing member of the Buyer and owned approximately 73.2% of the Buyer as of December 31, 2019. In 2013, New Residential created the Buyer to acquire the then outstanding servicing advance receivables related to a portfolio of residential mortgage loans from a third party. The Buyer is required to purchase all future servicer advances made with respect to this portfolio of mortgage loans and is entitled to receive cash flows from advance recoveries and a basic fee component of the related MSRs, net of subservicing compensation paid. The Buyer may call capital up to the commitment amount on unfunded commitments and recall capital to the extent the Buyer makes a distribution to the co-investors, including New Residential. As of December 31, 2019, the noncontrolling third-party co-investors and New Residential had previously funded their commitments, however the Buyer may recall $327.8 million and $305.2 million of capital distributed to the third-party co-investors and New Residential, respectively. Neither the third-party co-investors nor New Residential is obligated to fund amounts in excess of their respective capital commitments, regardless of the capital requirements of the Buyer. Shelter Joint Ventures A wholly owned subsidiary of NewRez, Shelter Mortgage Company LLC (“Shelter”) is a mortgage originator specializing in retail originations. Shelter operates its business through a series of joint ventures and is deemed to be the primary beneficiary of the joint ventures as a result of its ability to direct activities that most significantly impact the economic performance of the entities and its ownership of a significant equity investment. Residential Mortgage Loans During the first quarter of 2019, New Residential formed entities (the “RPL Borrowers”) that issued securitized debt collateralized by reperforming residential mortgage loans. New Residential determined that the RPL Borrowers should be evaluated for consolidation under the VIE model rather than the voting interest entity model as the equity holders as a group lack the characteristics of a controlling financial interest. Under the VIE model, New Residential’s consolidated subsidiaries had both 1) the power to direct the most significant activities of the RPL Borrowers and 2) significant variable interests in each of the RPL Borrowers, through their control of the related optional redemption feature and their ownership of certain notes issued by the RPL Borrowers and, therefore, met the primary beneficiary criterion and consolidated the RPL Borrowers. On October 1, 2019, as a result of New Residential’s acquisition of servicing assets from Ditech and its pre existing ownership of the equity, New Residential consolidated the MDST Trusts. New Residential’s determination to consolidate the MDST Trusts is a result of its ownership of the equity in these trusts in conjunction with the ability to direct activities that most significantly impact the economic performance of the entities with the acquisition of the servicing by NewRez. NewRez was deemed to be the primary beneficiary of the SAFT 2013-1 securitization entity as a result of its ability to direct activities that most significantly impact the economic performance of the entity in its role as servicer and its ownership of subordinated retained interests. The following table summarizes certain characteristics of the underlying residential mortgage loans, and related financing, in these securitizations as of December 31, 2019 : December 31, 2019 2018 Residential mortgage loan UPB $ 19,590,978 $ 7,818,221 Weighted average delinquency (A) 1.25 % 1.97 % Net credit losses $ 9,354 $ 9,101 Face amount of debt held by third parties (B) $ 17,946,939 $ 6,783,187 Carrying value of bonds retained by New Residential (C) (D) $ 1,656,712 $ 1,206,402 Cash flows received by New Residential on these bonds $ 270,739 $ 178,301 (A) Represents the percentage of the UPB that is 60 + days delinquent. (B) Excludes bonds retained by New Residential. (C) Includes bonds retained pursuant to required risk retention regulations. (D) Classified within Level 3 of the fair value hierarchy as the valuation is based on certain unobservable inputs including discount rate, prepayment rates and loss severity. See Note 13 for details on unobservable inputs. Consumer Loan Companies New Residential has a co-investment in a portfolio of consumer loans held through the Consumer Loan Companies. As of December 31, 2019 , New Residential owns 53.5% of the limited liability company interests in, and consolidates, the Consumer Loan Companies. The Consumer Loan Companies consolidate certain entities that issued securitization debt collateralized by the consumer loans (the “Consumer Loan SPVs”). The Consumer Loan SPVs are VIEs of which the Consumer Loan Companies are the primary beneficiaries. The table below presents the carrying value and classification of the assets and liabilities of consolidated VIEs on New Residential’s consolidated balance sheets: The Buyer Shelter Joint Ventures Residential Mortgage Loans Consumer Loan SPVs Total December 31, 2019 Assets Servicer advance investments, at fair value $ 565,271 $ — $ — $ — $ 565,271 Residential mortgage loans, held-for-investment, at fair value — — 913,030 — 913,030 Consumer loans, held-for-investment — — — 818,943 818,943 Cash and cash equivalents 30,065 23,802 — — 53,867 Restricted cash 5,350 — — 9,073 14,423 Other assets 2,414 3,556 4,534 12,409 22,913 Total Assets $ 603,100 $ 27,358 $ 917,564 $ 840,425 $ 2,388,447 Liabilities Notes and bonds payable (A) $ 433,300 $ — $ 659,738 $ 820,658 $ 1,913,696 Accrued expenses and other liabilities 1,593 4,187 10,132 4,126 20,038 Total Liabilities $ 434,893 $ 4,187 $ 669,870 $ 824,784 $ 1,933,734 December 31, 2018 Assets Servicer advance investments, at fair value $ 713,239 $ — $ — $ — $ 713,239 Residential mortgage loans, held-for-investment — — 121,319 — 121,319 Consumer loans, held-for-investments — — — 1,039,480 1,039,480 Cash and cash equivalents 29,833 17,346 — — 47,179 Restricted cash 7,809 — — 10,186 17,995 Servicer advances receivable — — — — — Other assets 2,414 618 — 15,627 18,659 Total Assets $ 753,295 $ 17,964 $ 121,319 $ 1,065,293 $ 1,957,871 Liabilities Notes and bonds payable (A) $ 556,340 $ — $ 117,048 $ 1,030,096 $ 1,703,484 Accrued expenses and other liabilities 2,442 2,282 — 3,814 8,538 Total Liabilities $ 558,782 $ 2,282 $ 117,048 $ 1,033,910 $ 1,712,022 (A) The creditors of the VIEs do not have recourse to the general credit of New Residential, and the assets of the VIEs are not directly available to satisfy New Residential’s obligations. Noncontrolling Interests Noncontrolling interests represent the ownership interests in certain consolidated subsidiaries held by entities or persons other than New Residential. These interests are related to noncontrolling interests in consolidated entities that hold New Residential’s Servicer Advance Investments (Note 7), the Shelter JVs, (Note 9), Residential Mortgage Loan trusts (Note 9), and Consumer Loans (Note 10). Others’ interests in the equity of New Residential’s consolidated subsidiaries is computed as follows: December 31, 2019 December 31, 2018 The Buyer (A) Shelter Joint Ventures Consumer Loan Companies The Buyer (A) Shelter Joint Ventures Consumer Loan Companies Total consolidated equity $ 168,207 $ 23,171 $ 46,510 $ 194,513 $ 15,682 $ 66,105 Others’ ownership interest 26.8 % 49.0 % 46.5 % 26.8 % 51.0 % 46.5 % Others’ interest in equity of consolidated subsidiary $ 45,025 $ 11,354 $ 22,171 $ 52,066 $ 7,998 $ 30,561 Others’ interests in the New Residential’s net income (loss) is computed as follows: Year Ended December 31, 2019 Year Ended December 31, 2018 Year Ended December 31, 2017 The Buyer (A) Shelter Joint Ventures Consumer Loan Companies The Buyer (A) Shelter Joint Ventures Consumer Loan Companies The Buyer (A) Shelter Joint Ventures Consumer Loan Companies Net income $ 15,892 $ 12,717 $ 69,143 $ 7,209 $ 3,135 $ 79,539 $ 23,604 $ — $ 98,692 Others’ ownership interest as a percent of total 26.8 % 49.0 % 46.5 % 27.4 % 51.0 % 46.5 % 47.6 % — % 46.5 % Others’ interest in net income of consolidated subsidiaries $ 4,255 $ 6,231 $ 32,151 $ 1,978 $ 1,599 $ 36,987 $ 11,227 $ — $ 45,892 (A) As a result, New Residential owned 73.2% , 72.6% and 52.4% of the Buyer, on average during the years ended December 31, 2019, 2018 and 2017, respectively. See Note 12 regarding the financing of Servicer Advance Investments. |
EQUITY AND EARNINGS PER SHARE
EQUITY AND EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EQUITY AND EARNINGS PER SHARE | EQUITY AND EARNINGS PER SHARE Equity and Dividends New Residential’s certificate of incorporation authorizes 2,000,000,000 shares of common stock, par value $0.01 per share, and 100,000,000 shares of preferred stock, par value $0.01 per share. In February 2017, New Residential issued 56.5 million shares of its common stock in a public offering at a price to the public of $15.00 per share for net proceeds of approximately $834.5 million . One of New Residential’s executive officers participated in this offering and purchased 18,600 shares at the public offering price. To compensate the Manager for its successful efforts in raising capital for New Residential, in connection with this offering, New Residential granted options to the Manager relating to 5.7 million shares of New Residential’s common stock at the public offering price, which had a fair value of approximately $8.1 million as of the grant date. The assumptions used in valuing the options were: a 2.38% risk-free rate, a 10.82% dividend yield, 28.64% volatility and a 10 -year term. In January 2018, New Residential issued 28.8 million shares of its common stock in a public offering at a price to the public of $17.10 per share for net proceeds of approximately $482.3 million . To compensate the Manager for its successful efforts in raising capital for New Residential, in connection with this offering, New Residential granted options to the Manager relating to 2.9 million shares of New Residential’s common stock at the public offering price, which had a fair value of approximately $3.8 million as of the grant date. The assumptions used in valuing the options were: a 2.58% risk-free rate, a 9.86% dividend yield, 23.16% volatility and a 10 -year term. On July 30, 2018, New Residential entered into a Distribution Agreement to sell shares of its common stock, par value $0.01 per share (the “ATM Shares”), having an aggregate offering price of up to $500.0 million , from time to time, through an “at-the-market” equity offering program (the “ATM Program”). During the year ended December 31, 2018, New Residential sold 0.5 million ATM Shares for aggregate proceeds of $9.1 million . In connection with the shares sold under the ATM program, New Residential granted options to the Manager relating to 0.05 million shares of New Residential’s common stock at the offering prices, which had fair value of approximately $0.1 million as of the grant dates. On August 1, 2019, the Distribution Agreement was amended to, among other things, (i) add additional sales agents under the ATM Program, and (ii) restore the aggregate offering price under the ATM Program to the original amount of $500.0 million . During the year ended December 31, 2019 , New Residential did not sell any ATM Shares. In November 2018, New Residential issued 28.8 million shares of its common stock in a public offering at a price to the public of $17.32 per share for net proceeds of approximately $489.2 million . To compensate the Manager for its successful efforts in raising capital for New Residential, in connection with this offering, New Residential granted options to the Manager relating to 2.9 million shares of New Residential’s common stock at the public offering price, which had a fair value of approximately $3.8 million as of the grant date. The assumptions used in valuing the options were: a 3.25% risk-free rate, a 8.61% dividend yield, 17.50% volatility and a 10 -year term. In February 2019, New Residential issued 46.0 million shares of its common stock in a public offering at a price to the public of $16.50 per share for net proceeds of approximately $751.7 million . To compensate the Manager for its successful efforts in raising capital for New Residential, in connection with this offering, New Residential granted options to the Manager relating to 4.6 million shares of New Residential’s common stock at the public offering price, which had a fair value of approximately $3.8 million as of the grant date. The assumptions used in valuing the options were: a 2.40% risk-free rate, a 9.30% dividend yield, 19.26% volatility and a 10 -year term. On July 2, 2019, in a public offering, New Residential issued 6.2 million shares of its 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (“Preferred Series A”), par value $0.01 per share, with a liquidation preference of $25.00 per share for net proceeds of approximately $150.0 million . To compensate the Manager for its successful efforts in raising capital for New Residential, in connection with this offering, New Residential granted options to the Manager relating to 0.6 million shares of New Residential’s common stock at the closing price per share of common stock on the pricing date, which had a fair value of approximately $0.5 million as of the grant date. The assumptions used in valuing the options were: a 1.91% risk-free rate, a 9.73% dividend yield, 17.95% volatility and a 10 -year term. On August 15, 2019, in a public offering, New Residential issued 11.3 million shares of its 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (“Preferred Series B”), par value $0.01 per share, with a liquidation preference of $25.00 per share for net proceeds of approximately $273.4 million . To compensate the Manager for its successful efforts in raising capital for New Residential, in connection with this offering, New Residential granted options to the Manager relating to 1.1 million shares of New Residential’s common stock at the closing price per share of common stock on the pricing date, which had a fair value of approximately $0.7 million as of the grant date. The assumptions used in valuing the options were: a 1.56% risk-free rate, a 11.20% dividend yield, 18.23% volatility and a 10 -year term. On September 23, 2019, New Residential’s board of directors declared third quarter 2019 preferred dividends of $0.69 per share of Preferred Series A and $0.45 per share of Preferred Series B, or $ 4.3 million and $5.0 million , respectively. On December 16, 2019 , New Residential’s board of directors declared fourth quarter 2019 preferred dividends of $0.47 per share of Preferred Series A and $0.45 per share of Preferred Series B, or $2.9 million and $5.0 million , respectively. Common dividends have been declared as follows: Per Share Declaration Date Payment Date Quarterly Dividend Total Amounts Distributed (millions) January 26, 2017 April 2017 0.48 147.5 June 21, 2017 July 2017 0.50 153.7 September 22, 2017 October 2017 0.50 153.7 December 18, 2017 January 2018 0.50 153.7 March 22, 2018 April 2018 0.50 168.1 June 21, 2018 July 2018 0.50 169.9 September 20, 2018 October 2018 0.50 170.2 December 20, 2018 January 2019 0.50 184.6 March 25, 2019 April 2019 0.50 207.7 June 18, 2019 July 2019 0.50 207.8 September 23, 2019 October 2019 0.50 207.8 December 16, 2019 January 2020 0.50 207.8 Approximately 2.4 million shares of New Residential’s common stock were held by Fortress, through its affiliates, and its principals at December 31, 2019 . On August 20, 2019, New Residential announced that its board of directors had authorized the repurchase of up to $200.0 million of its common stock through December 31, 2020. Repurchases may be made from time to time through open market purchases or privately negotiated transactions, pursuant to one or more plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934 or by means of one or more tender offers, in each case, as permitted by securities laws and other legal requirements. The amount and timing of the purchases will depend on a number of factors including the price and availability of New Residential’s shares, trading volume, capital availability, New Residential’s performance and general economic and market conditions. The share repurchase program may be suspended or discontinued at any time. No share repurchases have been made as of the date of issuance of these Consolidated Financial Statements. Option Plan New Residential has a Nonqualified Stock Option and Incentive Award Plan, as amended (the “Plan”) which provides for the grant of equity-based awards, including restricted stock, options, stock appreciation rights, performance awards, tandem awards and other equity-based and non-equity based awards, in each case to the Manager, and to the directors, officers, employees, service providers, consultants and advisor of the Manager who perform services for New Residential, and to New Residential’s directors, officers, service providers, consultants and advisors. New Residential initially reserved 15,000,000 shares of its common stock for issuance under the Plan; on the first day of each fiscal year beginning during the 10 -year term of the Plan in and after calendar year 2014, that number will be increased by a number of shares of New Residential’s common stock equal to 10% of the number of shares of common stock newly issued by New Residential during the immediately preceding fiscal year (and, in the case of fiscal year 2013, after the effective date of the Plan). No adjustment was made on January 1, 2014. Increases of 4,600,000 , 5,799,166 , 5,654,578 and 2,000,000 were made on January 1, 2020 , 2019 , 2018 and 2017 , respectively. New Residential’s board of directors may also determine to issue options to the Manager that are not subject to the Plan, provided that the number of shares underlying any options granted to the Manager in connection with capital raising efforts would not exceed 10% of the shares sold in such offering and would be subject to NYSE rules. Upon exercise, all options will be settled in an amount of cash equal to the excess of the fair market value of a share of common stock on the date of exercise over the exercise price per share unless advance approval is made to settle options in shares of common stock. Upon joining the board, non-employee directors were, in accordance with the Plan, granted options relating to an aggregate of 7,000 shares of common stock. The fair value of such options was not material at the date of grant. New Residential’s outstanding options were summarized as follows: December 31, 2019 2018 Held by the Manager 10,511,167 6,961,222 Issued to the Manager and subsequently assigned to certain of the Manager’s employees 2,290,749 1,530,916 Issued to the independent directors 7,000 6,000 Total 12,808,916 8,498,138 The following table summarizes New Residential’s outstanding options as of December 31, 2019 . The last sales price on the New York Stock Exchange for New Residential’s common stock in the year ended December 31, 2019 was $16.11 per share. Recipient Date of Grant/ Exercise (A) Number of Unexercised Options Options Exercisable as of December 31, 2019 Weighted Average Exercise Price (B) Intrinsic Value of Exercisable Options as of December 31, 2019 (millions) Directors Various 7,000 7,000 $ 13.61 $ — Manager (C) 2017 1,130,916 — 14.09 2.3 Manager (C) 2018 5,320,000 2,996,715 16.79 — Manager (C) 2019 6,351,000 1,787,500 16.35 — Outstanding 12,808,916 4,791,215 (A) Options expire on the tenth anniversary from date of grant. (B) The exercise prices are subject to adjustment in connection with return of capital dividends. A portion of New Residential’s 2018 dividends was deemed to be a return of capital and the exercise prices were adjusted accordingly. (C) The Manager assigned certain of its options to its employees as follows: Date of Grant to Manager Range of Exercise Prices Total Unexercised Inception to Date 2017 $14.09 1,130,916 2018 $16.68 to $18.15 1,159,833 Total 2,290,749 The following table summarizes activity in New Residential’s outstanding options: Amount Weighted Average Exercise Price December 31, 2017 outstanding options 18,502,188 Options granted 5,799,166 $ 17.23 Options exercised (15,803,216 ) $ 14.30 Options expired unexercised — December 31, 2018 outstanding options 8,498,138 Options granted 6,352,000 $ 16.20 Options exercised (2,041,222 ) $ 13.88 Options expired unexercised — December 31, 2019 outstanding options 12,808,916 See table above Income and Earnings Per Share New Residential is required to present both basic and diluted earnings per share (“EPS”). Basic EPS is calculated by dividing net income by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing net income by the weighted average number of shares of common stock outstanding plus the additional dilutive effect, if any, of common stock equivalents during each period. New Residential’s common stock equivalents are its outstanding options. During the years ended December 31, 2019 , 2018 and 2017 , based on the treasury stock method, New Residential had 200,465 , 1,868,438 and 2,143,323 dilutive common stock equivalents, respectively, outstanding. Noncontrolling Interests Noncontrolling interests is comprised of the interests held by third parties in consolidated entities that hold New Residential’s Servicer Advance Investments (Note 7), Shelter JVs (Note 9) and Consumer Loans (Note 10). |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation – New Residential is or may become, from time to time, involved in various disputes, litigation and regulatory inquiry and investigation matters that arise in the ordinary course of business. Given the inherent unpredictability of these types of proceedings, it is possible that future adverse outcomes could have a material adverse effect on its business, financial position or results of operations. New Residential is not aware of any unasserted claims that it believes are material and probable of assertion where the risk of loss is expected to be reasonably possible. New Residential is, from time to time, subject to inquiries by government entities. New Residential currently does not believe any of these inquiries would result in a material adverse effect on New Residential’s business. Indemnifications – In the normal course of business, New Residential and its subsidiaries enter into contracts that contain a variety of representations and warranties and that provide general indemnifications. New Residential’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against New Residential that have not yet occurred. However, based on its experience, New Residential expects the risk of material loss to be remote. Capital Commitments — As of December 31, 2019 , New Residential had outstanding capital commitments related to investments in the following investment types (also refer to Note 6 for MSR investment commitments and to Note 20 for additional capital commitments entered into subsequent to December 31, 2019 , if any): MSRs and Servicer Advance Investments — New Residential and, in some cases, third-party co-investors agreed to purchase future servicer advances related to certain Non-Agency mortgage loans. In addition, New Residential’s subsidiaries, NRM and NewRez, are generally obligated to fund future servicer advances related to the loans it is obligated to service. The actual amount of future advances purchased will be based on: (a) the credit and prepayment performance of the underlying loans, (b) the amount of advances recoverable prior to liquidation of the related collateral and (c) the percentage of the loans with respect to which no additional advance obligations are made. The actual amount of future advances is subject to significant uncertainty. See Notes 5 and 6 for information on New Residential’s Investments in MSRs and Servicer Advance Investments, respectively. Mortgage Origination Reserves — NewRez, a wholly owned subsidiary of New Residential, originates conventional, government-insured and nonconforming residential mortgage loans for sale and securitization. The GSEs or Ginnie Mae guarantee conventional and government-insured mortgage securitizations and mortgage investors issue nonconforming private label mortgage securitizations while NewRez generally retains the right to service the underlying residential mortgage loans. In connection with the transfer of loans to the GSEs or mortgage investors, NewRez makes representations and warranties regarding certain attributes of the loans and, subsequent to the sale, if it is determined that a sold loan is in breach of these representations and warranties, NewRez generally has an obligation to cure the breach. If NewRez is unable to cure the breach, the purchaser may require NewRez to repurchase the loan. In addition, for Ginnie Mae guaranteed securitizations, NewRez holds the Ginnie Mae Buy-Back Option to repurchase delinquent loans from the securitization at its discretion. While NewRez is not obligated to repurchase the delinquent loans, NewRez generally executes its option to repurchase that will result in an economic benefit. As of December 31, 2019 , New Residential’s estimated liability associated with representations and warranties and Ginnie Mae repurchases was $12.5 million and $172.3 million , respectively. See Notes 6 and 9 for information on New Residential’s Ginnie Mae Buy-Back Option and mortgage origination, respectively. Mortgage Origination Unfunded Commitments — As of December 31, 2019 , NewRez was committed to fund approximately $4,043.9 million of mortgage loans and had forward loan sale commitments of $43.7 million . The forward sales are expected to close during the first quarter of 2020. Residential Mortgage Loans — As part of its investment in residential mortgage loans, New Residential may be required to outlay capital. These capital outflows primarily consist of advance escrow and tax payments, residential maintenance and property disposition fees. The actual amount of these outflows is subject to significant uncertainty. See Note 9 for information on New Residential’s investments in residential mortgage loans. Consumer Loans — The Consumer Loan Companies have invested in loans with an aggregate of $272.1 million of unfunded and available revolving credit privileges as of December 31, 2019 . However, under the terms of these loans, requests for draws may be denied and unfunded availability may be terminated at New Residential’s discretion. Leases — New Residential, through its wholly owned subsidiary, Shellpoint, has leases on office space expiring through 2025 with future commitments under non-cancelable leases of approximately $46.2 million , held on the balance sheet discounted between 4 - 5 %. Included in its future commitments is $20.4 million of leases at market expiring through 2023 acquired as part of the Ditech acquisition. The future commitments under non-cancelable leases have not been reduced by the sublease rentals of approximately $1.9 million due in the future periods. The terms of the leases do not impose any financial restrictions or covenants. Environmental Costs — As a residential real estate owner, New Residential is subject to potential environmental costs. At December 31, 2019 , New Residential is not aware of any environmental concerns that would have a material adverse effect on its consolidated financial position or results of operations. Debt Covenants — New Residential’s debt obligations contain various customary loan covenants (Note 12). Certain Tax-Related Covenants — If New Residential is treated as a successor to Drive Shack Inc. (“Drive Shack”) under applicable U.S. federal income tax rules, and if Drive Shack failed to qualify as a REIT for a taxable year ending on or before December 31, 2014, New Residential could be prohibited from electing to be a REIT. Accordingly, in the separation and distribution agreement executed in connection with New Residential’s spin-off from Drive Shack, Drive Shack (i) represented that it had no knowledge of any fact or circumstance that would cause New Residential to fail to qualify as a REIT, (ii) covenanted to use commercially reasonable efforts to cooperate with New Residential as necessary to enable New Residential to qualify for taxation as a REIT and receive customary legal opinions concerning REIT status, including providing information and representations to New Residential and its tax counsel with respect to the composition of Drive Shack’s income and assets, the composition of its stockholders, and its operation as a REIT; and (iii) covenanted to use its reasonable best efforts to maintain its REIT status for each of Drive Shack’s taxable years ending on or before December 31, 2014 (unless Drive Shack obtains an opinion from a nationally recognized tax counsel or a private letter ruling from the U.S. Internal Revenue Service (“IRS”) to the effect that Drive Shack’s failure to maintain its REIT status will not cause New Residential to fail to qualify as a REIT under the successor REIT rule referred to above). Additionally, New Residential covenanted to use its reasonable best efforts to qualify for taxation as a REIT for its taxable year ended December 31, 2013. |
TRANSACTIONS WITH AFFILIATES AN
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES New Residential is party to a Management Agreement with its Manager which provides for automatically renewing one -year terms subject to certain termination rights. The Manager’s performance is reviewed annually and the Management Agreement may be terminated by New Residential by payment of a termination fee, as defined in the Management Agreement, equal to the amount of management fees earned by the Manager during the 12 consecutive calendar months immediately preceding the termination, upon the affirmative vote of at least two-thirds of the independent directors, or by a majority vote of the holders of common stock. If the Management Agreement is terminated, the Manager may require New Residential to purchase from the Manager the right of the Manager to receive the Incentive Compensation. In exchange therefor, New Residential would be obligated to pay the Manager a cash purchase price equal to the amount of the Incentive Compensation that would be paid to the Manager if all of New Residential’s assets were sold for cash at their then current fair market value (taking into account, among other things, expected future performance of the underlying investments). Pursuant to the Management Agreement, the Manager, under the supervision of New Residential’s board of directors, formulates investment strategies, arranges for the acquisition of assets and associated financing, monitors the performance of New Residential’s assets and provides certain advisory, administrative and managerial services in connection with the operations of New Residential. The Manager is entitled to receive a management fee in an amount equal to 1.5% per annum of New Residential’s gross equity calculated and payable monthly in arrears in cash. Gross equity is generally (i) the equity transferred by Drive Shack, formerly Newcastle Investment Corp., which was the sole stockholder of New Residential until the spin-off of New Residential completed on May 15, 2013, on the date of the spin-off (ii) plus total net proceeds from preferred and common stock offerings, plus certain capital contributions to subsidiaries, less capital distributions and repurchases of common stock. In addition, the Manager is entitled to receive annual incentive compensation in an amount equal to the product of (A) 25% of the dollar amount by which (1) (a) New Residential’s funds from operations before the incentive compensation, excluding funds from operations from investments in the Consumer Loan Companies and any unrealized gains or losses from mark-to-market valuation changes on investments and debt (and any deferred tax impact thereof), per share of common stock, plus (b) earnings (or losses) from the Consumer Loan Companies computed on a level-yield basis (such that the loans are treated as if they qualified as loans acquired with a discount for credit quality as set forth in ASC No. 310-30, as such codification was in effect on June 30, 2013) as if the Consumer Loan Companies had been acquired at their GAAP basis on May 15, 2013, plus earnings (or losses) from equity method investees invested in Excess MSRs as if such equity method investees had not made a fair value election, plus gains (or losses) from debt restructuring and gains (or losses) from sales of property, and plus non-routine items, minus amortization of non-routine items, in each case per share of common stock, exceed (2) an amount equal to (a) the weighted average of the book value per share of the equity transferred by Drive Shack on the date of the spin-off and the prices per share of New Residential’s common stock in any offerings (adjusted for prior capital dividends or capital distributions) multiplied by (b) a simple interest rate of 10% per annum, multiplied by (B) the weighted average number of shares of common stock outstanding. “Funds from operations” means net income (computed in accordance with GAAP), excluding gains (or losses) from debt restructuring and gains (or losses) from sales of property, plus depreciation on real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. Funds from operations will be computed on an unconsolidated basis. The computation of funds from operations may be adjusted at the direction of New Residential’s independent directors based on changes in, or certain applications of, GAAP. Funds from operations is determined from the date of the spin-off and without regard to Drive Shack’s prior performance. In addition to the management fee and incentive compensation, New Residential is responsible for reimbursing the Manager for certain expenses paid by the Manager on behalf of New Residential. Due to affiliates is comprised of the following amounts: December 31, 2019 2018 Management fees $ 7,076 $ 5,779 Incentive compensation 91,892 94,900 Expense reimbursements and other 4,914 792 Total $ 103,882 $ 101,471 Affiliate expenses and fees were comprised of: Year Ended December 31, 2019 2018 2017 Management fees $ 79,472 $ 62,594 $ 55,634 Incentive compensation 91,892 94,900 81,373 Expense reimbursements (A) 500 500 500 Total $ 171,864 $ 157,994 $ 137,507 (A) Included in General and Administrative Expenses in the Consolidated Statements of Income. See Note 5 regarding co-investments with Fortress-managed funds. See Note 15 regarding options granted to the Manager. |
RECLASSIFICATION FROM ACCUMULAT
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME | RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME The following table summarizes the amounts reclassified out of accumulated other comprehensive income into net income: Accumulated Other Comprehensive Income Components Statement of Income Location Year Ended December 31, 2019 2018 2017 Reclassification of net realized (gain) loss on securities into earnings Gain (loss) on settlement of investments, net $ (205,989 ) $ 29,936 $ (20,642 ) Reclassification of net realized (gain) loss on securities into earnings Other-than-temporary impairment on securities 25,174 30,017 10,334 Total reclassifications $ (180,815 ) $ 59,953 $ (10,308 ) New Residential allocated $4.2 million of income tax expense to other comprehensive income for the year ended December 31, 2019 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax (benefit) expense consists of the following: Year Ended December 31, 2019 2018 2017 Current: Federal $ 148 $ 6,146 $ (1,250 ) State and Local 3,411 477 360 Total Current Income Tax Expense (Benefit) 3,559 6,623 (890 ) Deferred: Federal 28,939 (68,907 ) 148,997 State and Local 9,268 (11,147 ) 19,521 Total Deferred Income Tax Expense (Benefit) 38,207 (80,054 ) 168,518 Total Income Tax (Benefit) Expense $ 41,766 $ (73,431 ) $ 167,628 New Residential intends to qualify as a REIT for each of its tax years through December 31, 2019 . A REIT is generally not subject to U.S. federal corporate income tax on that portion of its income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. New Residential operates various securitization vehicles and has made certain investments, particularly its investments in MSRs (Note 6), Servicer Advance Investments (Note 7) and REO (Note 9), through taxable REIT subsidiaries (“TRSs”) that are subject to regular corporate income taxes which have been provided for in the provision for income taxes, as applicable. The increase in the expense for income taxes for the year ended December 31, 2019 is primarily due to deferred tax expense generated by MSR income and loan origination income attributable to New Residential TRSs. The increase in the benefit for income taxes for the year ended December 31, 2018 is primarily due to the release of valuation allowances on deferred tax assets and increase in other deferred tax benefits attributable to New Residential’s TRSs. The difference between New Residential’s reported provision for income taxes and the U.S. federal statutory rate of 21% is as follows: December 31, 2019 2018 2017 Provision at the statutory rate 21.00 % 21.00 % 35.00 % Non-taxable REIT income (16.26 )% (25.44 )% (21.72 )% State and local taxes 2.36 % (1.19 )% 1.76 % Change in valuation allowance — % (2.31 )% 0.85 % Change in federal tax rate — % — % (0.92 )% Other 0.66 % (0.30 )% (0.17 )% Total provision 7.76 % (8.24 )% 14.80 % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liability are presented below: December 31, 2019 2018 Deferred tax assets: Net operating losses and tax credit carryforwards (A) $ 79,897 $ 41,713 Basis differences for REO and other assets 16,279 8,453 Unrealized mark to market 10,084 36,758 Other 1,194 3,087 Total deferred tax assets 107,454 90,011 Less valuation allowance — — Net deferred tax assets $ 107,454 $ 90,011 Deferred tax liabilities: Mortgage servicing rights $ (65,582 ) $ — Basis difference for partnership and other investments (29,022 ) (24,179 ) Fixed asset depreciation (4,181 ) — Total deferred tax (liability) $ (98,785 ) $ (24,179 ) Net deferred tax assets (liability) $ 8,669 $ 65,832 (A) As of December 31, 2019 , New Residential’s TRSs had approximately $328.0 million of net operating loss carryforwards for federal and state income tax purposes which may be available to offset future taxable income, if and when it arises. Approximately, $9.1 million of these federal and state net operating loss carryforwards will begin to expire in 2034. The utilization of the net operating loss carryforwards to reduce future income taxes will depend on the TRSs ability to generate sufficient taxable income prior to the expiration of the carryforward period. In assessing the realizability of deferred tax assets, New Residential considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. As of December 31, 2019 , we believe it is more likely than not that we will fully realize our deferred tax assets. New Residential and its TRSs file income tax returns with the U.S. federal government and various state and local jurisdictions. Generally, New Residential is no longer subject to tax examinations by tax authorities for tax years ended prior to December 31, 2016 . New Residential recognizes tax benefits for uncertain tax positions only if it is more likely than not that the position is sustainable based on its technical merits. Interest and penalties on uncertain tax positions are included as a component of the provision for income taxes on the consolidated statements of operations. As of December 31, 2019 , New Residential has no material uncertainties to be recognized. New Residential does not believe that it is reasonably possible that the total amount of unrecognized tax benefits will significantly change within 12 months of the reporting date. Common stock distributions were taxable as follows: Year Dividends per Share Ordinary Income Long-term Capital Gain Return of Capital 2019 (A) $ 1.87 77.53 % 15.82 % 6.65 % 2018 (B) 1.60 78.03 % 1.03 % 20.94 % 2017 (C) 1.94 66.64 % 7.83 % 25.53 % (A) The entire $0.50 per share dividend declared in December 2019 and paid in January 2020 is treated as received by stockholders in 2020 . (B) The entire $0.50 per share dividend declared in December 2018 and paid in January 2019 is treated as received by stockholders in 2019 . (C) The entire $0.50 per share dividend declared in December 2017 and paid in January 2018 is treated as received by stockholders in 2018 . Series A Preferred stock distributions were as follows: Year Dividends per Share Ordinary Income Long-term Capital Gain Return of Capital 2019 $ 0.69 84.18 % 15.82 % — % Series B Preferred stock distributions were as follows: Year Dividends per Share Ordinary Income Long-term Capital Gain Return of Capital 2019 $ 0.45 84.18 % 15.82 % — % |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS These financial statements include a discussion of material events that have occurred subsequent to December 31, 2019 (referred to as “subsequent events”) through the issuance of these consolidated financial statements. Events subsequent to that date have not been considered in these financial statements. Corporate Activities On December 16, 2019 , New Residential’s board of directors declared a fourth quarter 2019 dividend of $0.50 per common share or $207.8 million , which was paid on January 31, 2020 to stockholders of record as of December 31, 2019 . On February 14, 2020, in a public offering, New Residential issued 14.0 million shares of its 6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (“Preferred Series C”), par value $0.01 per share, with a liquidation preference of $25.00 per share for net proceeds of approximately $338.7 million . To compensate the Manager for its successful efforts in raising capital for New Residential, in connection with this offering, New Residential granted options to the Manager relating to 1.4 million shares of New Residential’s common stock at the closing price per share of common stock on the pricing date, which had a fair value of approximately $1.0 million as of the grant date. The assumptions used in valuing the options were: a 1.55% risk-free rate, a 9.00% dividend yield, 17.39% volatility and a 10 -year term. |
SUMMARY QUARTERLY CONSOLIDATED
SUMMARY QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
SUMMARY OF QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) | SUMMARY QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) The following is an unaudited summary information on New Residential’s quarterly operations. 2019 Quarter Ended Year Ended December 31 March 31 June 30 September 30 December 31 Interest income $ 438,867 $ 416,047 $ 448,127 $ 463,089 $ 1,766,130 Interest expense 212,832 228,004 245,902 247,013 933,751 Net interest income 226,035 188,043 202,225 216,076 832,379 Impairment Other-than-temporary impairment (OTTI) on securities 7,516 8,859 5,567 3,232 25,174 Valuation and loss provision (reversal) on loans and real estate owned 5,280 13,452 (10,690 ) 2,361 10,403 12,796 22,311 (5,123 ) 5,593 35,577 Net interest income after impairment 213,239 165,732 207,348 210,483 796,802 Servicing revenue, net 165,853 (85,537 ) 53,050 251,793 385,159 Gain on originated mortgage loans, held-for-sale, net 67,170 101,018 126,747 180,520 475,455 Other income (loss) (A) (63,966 ) (25,947 ) 102,640 (53,826 ) (41,099 ) Operating Expenses 180,387 201,863 250,565 335,803 968,618 Income (Loss) Before Income Taxes 201,909 (46,597 ) 239,220 253,167 647,699 Income tax (benefit) expense 45,997 (21,577 ) (5,440 ) 22,786 41,766 Net Income (Loss) $ 155,912 $ (25,020 ) $ 244,660 $ 230,381 $ 605,933 Noncontrolling Interests in Income of Consolidated Subsidiaries $ 10,318 $ 6,923 $ 14,738 $ 10,658 $ 42,637 Dividends on Preferred Stock $ — $ — $ 5,338 $ 7,943 $ 13,281 Net Income (Loss) Attributable to Common Stockholders $ 145,594 $ (31,943 ) $ 224,584 $ 211,780 $ 550,015 Net Income (Loss) Per Share of Common Stock Basic $ 0.37 $ (0.08 ) $ 0.54 $ 0.51 $ 1.35 Diluted $ 0.37 $ (0.08 ) $ 0.54 $ 0.51 $ 1.34 Weighted Average Number of Shares of Common Stock Outstanding Basic 388,279,931 415,463,757 415,520,780 415,520,780 408,789,642 Diluted 388,601,075 415,665,460 415,588,238 415,673,185 408,990,107 Dividends Declared per Share of Common Stock $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 2.00 2018 Quarter Ended Year Ended December 31 March 31 June 30 September 30 December 31 Interest income $ 383,573 $ 403,805 $ 425,524 $ 451,321 $ 1,664,223 Interest expense 124,387 133,916 162,806 185,324 606,433 Net interest income 259,186 269,889 262,718 265,997 1,057,790 Impairment Other-than-temporary impairment (OTTI) on securities 6,670 12,631 3,889 6,827 30,017 Valuation and loss provision (reversal) on loans and real estate owned 19,007 3,658 5,471 32,488 60,624 25,677 16,289 9,360 39,315 90,641 Net interest income after impairment 233,509 253,600 253,358 226,682 967,149 Servicing revenue, net 217,236 146,193 175,355 (10,189 ) 528,595 Gain on originated mortgage loans, held-for-sale, net — — 47,054 49,091 96,145 Other income (loss) (A) 264,524 (96,812 ) (84,620 ) (134,477 ) (51,385 ) Operating Expenses 107,817 119,753 192,107 189,727 609,404 Income (Loss) Before Income Taxes 607,452 183,228 199,040 (58,620 ) 931,100 Income tax (benefit) expense (6,912 ) (2,608 ) 3,563 (67,474 ) (73,431 ) Net Income $ 614,364 $ 185,836 $ 195,477 $ 8,854 $ 1,004,531 Noncontrolling Interests in Income of Consolidated Subsidiaries $ 10,111 $ 11,078 $ 10,869 $ 8,506 $ 40,564 Net Income Attributable to Common Stockholders $ 604,253 $ 174,758 $ 184,608 $ 348 $ 963,967 Net Income Per Share of Common Stock Basic $ 1.83 $ 0.52 $ 0.54 $ — $ 2.82 Diluted $ 1.81 $ 0.51 $ 0.54 $ — $ 2.81 Weighted Average Number of Shares of Common Stock Outstanding Basic 330,384,856 336,311,253 340,044,440 358,044,646 341,268,923 Diluted 333,380,436 339,538,503 340,868,403 358,509,094 343,137,361 Dividends Declared per Share of Common Stock $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 2.00 (A) |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP’’ or “US GAAP”). The consolidated financial statements include the accounts of New Residential and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. |
Consolidation, Variable Interest Entities | New Residential consolidates those entities in which it has control over significant operating, financial and investing decisions of the entity, as well as those entities deemed to be variable interest entities (“VIEs”) in which New Residential is determined to be the primary beneficiary. For entities over which New Residential exercises significant influence, but which do not meet the requirements for consolidation, New Residential uses the equity method of accounting whereby it records its share of the underlying income of such entities. Distributions from equity method investees are classified in the Statements of Cash Flows based on the cumulative earnings approach, where all distributions up to cumulative earnings are classified as distributions of earnings. Certain prior period amounts have been reclassified to conform to the current period’s presentation. |
Risks and Uncertainties | In the normal course of business, New Residential encounters primarily two significant types of economic risk: credit and market. Credit risk is the risk of default on New Residential’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of investments due to changes in prepayment rates, interest rates, spreads or other market factors, including risks that impact the value of the collateral underlying New Residential’s investments. New Residential believes that the carrying values of its investments are reasonable taking into consideration these risks along with estimated prepayments, financings, collateral values, payment histories, and other information. Furthermore, for each of the periods presented, a significant portion of New Residential’s assets are dependent on its servicers’ and subservicers’ ability to perform their obligations servicing the loans underlying New Residential’s Excess MSRs, MSRs, MSR Financing Receivables, Servicer Advance Investments, Non-Agency RMBS and loans. If a servicer is terminated, New Residential’s right to receive its portion of the cash flows related to interests in servicing related assets may also be terminated. |
Income Tax Uncertainties | Additionally, New Residential is subject to significant tax risks. If New Residential were to fail to qualify as a REIT in any taxable year, New Residential would be subject to U.S. federal corporate income tax (including any applicable alternative minimum tax), which could be material. Unless entitled to relief under certain statutory provisions, New Residential would also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification is lost. |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Comprehensive Income | Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances, excluding those resulting from investments by and distributions to owners. For New Residential’s purposes, comprehensive income represents net income, as presented in the Consolidated Statements of Income, adjusted for unrealized gains or losses on securities available for sale. |
Income Recognition - Investments in Excess Mortgage Servicing Rights | Excess MSRs are aggregated into pools as applicable; each pool of Excess MSRs is accounted for in the aggregate. Interest income for Excess MSRs is accreted into interest income on an effective yield or “interest” method, based upon the expected excess mortgage servicing amount through the expected life of the underlying mortgages. Changes to expected cash flows result in a cumulative retrospective adjustment, which will be recorded in the period in which the change in expected cash flows occurs. Under the retrospective method, the interest income recognized for a reporting period is measured as the difference between the amortized cost basis at the end of the period and the amortized cost basis at the beginning of the period, plus any cash received during the period. The amortized cost basis is calculated as the present value of estimated future cash flows using an effective yield, which is the yield that equates all past actual and current estimated future cash flows to the initial investment. In addition, New Residential’s policy is to recognize interest income only on its Excess MSRs in existing eligible underlying mortgages. The difference between the fair value of Excess MSRs and their amortized cost basis is recorded as “Change in fair value of investments in excess mortgage servicing rights.” Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the Excess MSRs, and therefore may differ from their effective yields. |
Income Recognition - Investments in MSRs | MSRs are aggregated into pools as applicable; each pool of MSRs is accounted for in the aggregate. Income from MSRs is recorded in “Servicing revenue, net” and is comprised of three components: (i) income receivable from the MSRs, less (ii) amortization of the basis of the MSRs, plus or minus (iii) the mark-to-market on the MSRs. Amortization of the basis of the MSRs is based on the remaining UPB of the residential mortgage loans underlying the MSRs relative to their UPB at acquisition. Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the MSRs. |
Income Recognition - Investments in MSR Financing Receivables | In certain cases, New Residential has legally purchased MSRs or the right to the economic interest in MSRs; however, New Residential has determined that the purchase agreement would not be treated as a sale under GAAP. Therefore, rather than recording an investment in MSRs, New Residential records an investment in mortgage servicing rights financing receivables. Income from this investment (net of subservicing fees) is recorded as interest income, and New Residential has elected to measure the investment at fair value, with changes in fair value flowing through change in fair value of investments in mortgage servicing rights financing receivables in the Consolidated Statements of Income. |
Income Recognition - Servicer Advance Investments | New Residential accounts for its Servicer Advance Investments similarly to its investments in Excess MSRs. Interest income for Servicer Advance Investments is accreted into interest income on an effective yield or “interest” method, based upon the expected aggregate cash flows of the Servicer Advance Investments, including the basic fee component of the related MSR (but excluding any Excess MSR component) through the expected life of the underlying mortgages, net of a portion of the basic fee component of the MSR that New Residential remits to the servicer as compensation for the servicer’s servicing activities. Changes to expected cash flows result in a cumulative retrospective adjustment, which will be recorded in the period in which the change in expected cash flows occurs. Refer to “—Investments in Excess Mortgage Servicing Rights” for a description of the retrospective method. Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the Servicer Advance Investments, and therefore may differ from their effective yields. |
Income Recognition - Investments in Real Estate and Other Securities | Discounts or premiums are accreted into interest income on an effective yield or “interest” method, based upon a comparison of actual and expected cash flows, through the expected maturity date of the security. For securities acquired at a discount for credit quality (i.e., where it is probable at acquisition that New Residential will not collect all contractually required interest and principal repayments), the difference between contractual cash flows and expected cash flows at acquisition is not accreted (non-accretable difference). For these securities, the excess of expected cash flows over the carrying value (accretable yield) is recognized as interest income on an effective yield basis. Depending on the nature of the investment, changes to expected cash flows may result in a prospective change to yield or a retrospective change which would include a catch up adjustment. Deferred fees and costs, if any, are recognized as an adjustment to the interest income over the terms of the securities using the interest method. Upon settlement of securities, the specific identification method is used to determine the excess (or deficiency) of net proceeds over the net carrying value of such security recognized as a realized gain (or loss) in the period of settlement. |
Income Recognition - Investments in Residential Mortgage Loans, REO and Consumer Loans | New Residential evaluates the credit quality of its loans, as of the acquisition date, for evidence of credit quality deterioration. Loans with evidence of credit deterioration since their origination, and where it is probable that New Residential will not collect all contractually required principal and interest payments, are Purchased Credit Deteriorated (“PCD”) loans. At acquisition, New Residential aggregates PCD loans into pools based on common risk characteristics and the aggregated loans are accounted for as if each pool were a single loan with a single composite interest rate and an aggregate expectation of cash flows. The excess of the total cash flows (both principal and interest) expected to be collected over the carrying value of the PCD loans is referred to as the accretable yield. This amount is not reported on New Residential’s Consolidated Balance Sheets but is accreted into interest income at a level rate of return over the remaining estimated life of the pool of loans. Loans where New Residential expects to collect all contractually required principal and interest payments are considered performing loans. Interest income on performing loans is accrued and recognized as interest income at their effective yield, which includes contractual interest and the amortization of purchase price discount or premium and deferred fees or expenses, and considers anticipated prepayment rates. Loans acquired with the intent to sell and loans not acquired with the intent to sell that New Residential decides to sell are classified as held-for-sale. Loans held-for-sale are measured at the lower of cost or fair value, with valuation changes recorded in impairment. Purchase price discounts or premiums are deferred in a contra loan account until the related loan is sold. The deferred discounts or premiums are an adjustment to the basis of the loan and are included in the quarterly determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. Residential mortgage loans, held-for-sale, at fair value are originated or acquired loans for which New Residential has elected to account for at fair value. Accordingly, we estimate the fair value of the residential mortgage loans, held-for-sale, at fair value at each reporting date and reflect the change in the fair value in the Consolidated Statements of Income. For originated residential mortgage loans measured at fair value, we report the change in the fair value within gain on originated mortgage loans, held-for-sale, net in the consolidated statements of income. Fair value is generally determined using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. For acquired residential mortgage loans measured at fair value, we report the change in the fair value within change in fair value of investments in residential mortgage loans in the consolidated statements of income. Fair value is generally determined by discounting the expected future cash flows using inputs such as default rates, prepayment speeds and discount rates. Interest earned on residential mortgage loans measured at fair value are reported in other income. Real estate owned (“REO”) assets are those individual properties acquired by New Residential or where New Residential receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession). New Residential measures REO assets at the lower of cost or fair value, with valuation changes recorded in other income or impairment, as applicable. |
Impairment of Securities and Impairment of Loans | Securities are considered to be impaired when it is probable that New Residential will be unable to collect all principal or interest when due according to the contractual terms of the original agreements, or for securities purchased at a discount for credit quality or that represent retained beneficial interests in securitizations, when New Residential determines that it is probable that it will be unable to collect as anticipated. The evaluation of a security’s estimated cash flows includes the following, as applicable: (i) review of the credit of the issuer or borrower, (ii) review of the credit rating of the security, (iii) review of the key terms of the security or underlying loans, (iv) review of the performance of the underlying loans, including debt service coverage and loan to value ratios, (v) analysis of the value of the underlying loans, (vi) analysis of the effect of local, industry and broader economic factors, and (vii) analysis of historical and anticipated trends in defaults, loss severities and prepayments for similar securities or underlying loans. New Residential must record a write down if it has the intent to sell a given security in an unrealized loss position, or if it is more likely than not that it will be required to sell such a security. Upon determination of impairment, New Residential records a direct write down for securities based on the estimated fair value of the security or underlying collateral using a discounted cash flow analysis or based on an observable market value. Subsequent to a determination of impairment, and a related write down, income on securities is accrued on an effective yield method from the new carrying value to the related expected cash flows, with cash received treated as a reduction of basis. Impairment of Loans — To the extent that they are classified as held-for-investment, New Residential must periodically evaluate each of these loans or loan pools for possible impairment. Impairment is indicated when it is deemed probable that New Residential will be unable to collect all amounts due according to the contractual terms of the loan, or for PCD loans, when it is deemed probable that New Residential will be unable to collect as anticipated. Upon determination of impairment, New Residential establishes an allowance for loan losses with a corresponding charge to earnings. Performing loans are aggregated into pools for the evaluation of impairment based on like characteristics, such as loan type and acquisition date. Pools of loans are evaluated based on criteria such as an analysis of borrower performance, credit ratings of borrowers, loan to value ratios, the estimated value of the underlying collateral, if any, the key terms of the loans and historical and anticipated trends in defaults and loss severities for the type and seasoning of loans being evaluated. This information is used to estimate provisions for estimated unidentified incurred losses on pools of loans. Significant judgment is required in determining impairment and in estimating the resulting loss allowance. For PCD loans, New Residential estimates the total cash flows expected to be collected over the remaining life of each pool. Probable decreases in expected cash flows trigger the recognition of impairment. Impairments are recognized through the provision for loans and an increase in the allowance for loan losses. Probable and significant increases in expected cash flows would first reverse any previously recorded allowance for loan losses with any remaining increases recognized prospectively as a yield adjustment over the remaining estimated lives of the underlying loans. A loan is determined to be past due when a monthly payment is due and unpaid for 30 days or more. Loans, other than PCD loans, are placed on nonaccrual status and considered non-performing when full payment of principal and interest is in doubt, which generally occurs when principal or interest is 120 days or more past due unless the loan is both well secured and in the process of collection. A loan may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loan. New Residential’s ability to recognize interest income on nonaccrual loans as cash interest payments are received rather than as a reduction of the carrying value of the loans is based on the recorded loan balance being deemed fully collectible. Loans held-for-sale are subject to the nonaccrual policy described above, however, as loans held-for-sale are recognized at the lower of cost or fair value, New Residential’s allowance for loan losses and charge-off policies do not apply to these loans. |
Expense Recognition - Interest Expense | New Residential finances certain investments using floating rate repurchase agreements and loans. Interest is expensed as incurred. |
Expense Recognition - General and Administrative Expenses, Loan Servicing Expense and Subservicing Expense | General and administrative expense primarily include employee compensation, legal fees, audit fees, insurance premiums, and other costs, as well as loan servicing and subservicing expenses, and are expensed as incurred. |
Expense Recognition - Management Fee and Incentive Compensation to Affiliate | These represent amounts due to the Manager pursuant to the Management Agreement. |
Balance Sheet Measurement - Investments in Servicing Related Assets | Servicing related assets consist of New Residential’s Excess MSRs, MSRs, MSR Financing Receivables, and Servicer Advance Investments. Upon acquisition, New Residential has elected to record each of such investments at fair value. New Residential elected to record its investments at fair value in order to provide users of the financial statements with better information regarding the effects of prepayment risk and other market factors on servicing related assets. Under this election, New Residential records a valuation adjustment on its investments in servicing related assets on a quarterly basis to recognize the changes in fair value in net income as described in “Income Recognition — Investments in Excess Mortgage Servicing Rights,” “Income Recognition — Investments in MSRs” and “Income Recognition — Servicer Advance Investments.” |
Balance Sheet Measurement - Investments in Real Estate and Other Securities, Residential Mortgage Loans and Consumer Loans | New Residential has classified its investments in real estate and other securities as available for sale. Securities available for sale are carried at market value with the net unrealized gains or losses reported as a separate component of accumulated other comprehensive income, to the extent impairment losses are considered temporary. At disposition, the net realized gain or loss is determined on the basis of the amortized cost of the specific investments and is included in earnings. Unrealized losses on securities are charged to earnings if they reflect a decline in value that is other-than-temporary. Investments in Residential Mortgage Loans and Consumer Loans — Loans for which New Residential has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are classified as held-for-investment. Performing loans held-for-investment are presented at the aggregate unpaid principal balance adjusted for any unamortized premium or discount, deferred fees or expenses, an allowance for loan losses, charge-offs and write-down for impaired loans. PCD loans held-for-investment are initially recorded at their purchase price at acquisition and are subsequently measured net of any allowance for loan losses. To the extent that the loans are classified as held-for-investment, New Residential periodically evaluates such loans for possible impairment as described in “—Impairment of Loans.” Loans which New Residential does not have the intent or the ability to hold into the foreseeable future are considered held-for-sale and are either carried at (i) the lower of their amortized cost basis or fair value or (ii) fair value where elected. New Residential discontinues the accretion of discounts or amortization of premiums on loans if they are reclassified from held-for-investment to held-for-sale. |
Balance Sheet Measurement - Mortgage Loan Repurchases | NewRez, as an approved issuer of Ginnie Mae MBS, originates, sells and securitizes government-insured residential mortgage loans into Ginnie Mae guaranteed securitizations and NewRez retains the right to service the underlying residential mortgage loans. As the servicer, NewRez, holds an option to repurchase delinquent loans from the securitization at its discretion (the “Ginnie Mae Buy-Back Option”). In accordance with the accounting guidance in ASC 860, NewRez recognizes any delinquent loans subject to the Ginnie Mae Buy-Back Option and an offsetting repurchase liability on its balance sheet regardless of whether NewRez executes its option to repurchase. |
Balance Sheet Measurement - Cash and Cash Equivalents and Restricted Cash | New Residential considers all highly liquid short-term investments with maturities of 90 days or less when purchased to be cash equivalents. Substantially all amounts on deposit with major financial institutions exceed insured limits. |
Balance Sheet Measurement - Servicer Advances Receivable | Represents servicer advances due to New Residential’s servicer subsidiary, NRM (Note 6). The servicer advances receivable purchased in conjunction with MSRs are recorded with purchase discounts. Subsequent advances are recorded at cost, subject to impairment. Any related purchase discounts are accreted into servicing revenue, net (MSRs) or interest income (MSR financing receivables) on a straight-line basis over the estimated weighted average life of the advances. |
Balance Sheet Measurement - Income Taxes | New Residential operates so as to qualify as a REIT under the requirements of the Internal Revenue Code of 1986, as amended. Requirements for qualification as a REIT include various restrictions on ownership of New Residential’s stock, requirements concerning distribution of taxable income and certain restrictions on the nature of assets and sources of income. A REIT must distribute at least 90% of its taxable income to its stockholders (subject to certain adjustments). Distributions may extend until timely filing of New Residential’s tax return in the subsequent taxable year. Qualifying distributions of taxable income are deductible by a REIT in computing taxable income. Certain activities of New Residential are conducted through taxable REIT subsidiaries (“TRSs”) and therefore are subject to federal and state income taxes. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases upon the change in tax status. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. New Residential recognizes tax benefits for uncertain tax positions only if it is more likely than not that the position is sustainable based on its technical merits. Interest and penalties on uncertain tax positions are included as a component of the provision for income taxes on the consolidated statements of operations. |
Balance Sheet Measurement - Goodwill | As a result of the Shellpoint and Guardian acquisitions, New Residential recorded goodwill for the consideration transferred in excess of the fair value of the net identifiable assets acquired. New Residential performs an annual assessment of goodwill on October 1 and in interim periods in case of events or circumstances that make it more likely than not that an impairment may have occurred. |
Balance Sheet Measurement - Intangible Assets | As a result of the Shellpoint, Guardian and Ditech acquisitions, New Residential identified intangible assets in the form of licenses, customer relationships, business relationships, and tradename. New Residential recorded the intangible assets at fair value at the acquisition date and will amortize the value of finite lived intangibles into expense over the expected useful life. The licenses acquired as part of the Shellpoint acquisition and the tradename acquired as part of the Guardian acquisition were deemed to have an indefinite useful life and will be evaluated for impairment on a quarterly basis and the fair value will be assessed annually and in interim periods if indicators of impairment exist. New Residential performs an annual assessment of impairment on October 1 and in interim periods in case of events or circumstances that make it more likely than not that an impairment may have occurred. New Residential did not recognize any impairment this year. |
Balance Sheet Measurement - Repurchase Agreements and Notes and Bonds Payable | New Residential’s repurchase agreements are generally short-term debt that expire within one year . Such agreements and notes and bonds payable are carried at their contractual amounts, as specified by each repurchase or financing agreement, and generally treated as collateralized financing transactions. |
Balance Sheet Measurement - Mortgage Origination Reserves | NewRez originates conventional, government-insured and nonconforming residential mortgage loans for sale and securitization. In connection with the transfer of loans to the GSEs or mortgage investors, NewRez provides representations and warranties regarding certain attributes of the loans and, subsequent to the sale, if it is determined that a sold loan is in breach of these representations and warranties, NewRez generally has an obligation to cure the breach. If NewRez is unable to cure the breach, the purchaser may require NewRez to repurchase the loan. New Residential records a reserve for sales recourse at the time of sale to cover all potential recourse obligations based on the outstanding balance of mortgage loans subject to recourse as well as historical and estimated future loss rates. New Residential evaluates the ongoing adequacy of the reserve based on actual experience and changing circumstances, making adjustments to the reserve as deemed necessary. |
Recent Accounting Pronouncements | In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities. The standard: (i) requires that certain equity investments be measured at fair value, and modifies the assessment of impairment for certain other equity investments, (ii) changes certain disclosure requirements related to the fair value of financial instruments measured at amortized cost, (iii) changes certain disclosure requirements related to liabilities measured at fair value, (iv) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and (v) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU No. 2016-01 was effective for New Residential in the first quarter of 2018. The adoption of ASU No. 2016-01 resulted in the fair valuation of an equity investment on its consolidated balance sheet where New Residential did not have significant influence on its consolidated balance sheet and did not have a material impact on its consolidated statement of income. In February 2016, the FASB issued ASU No. 2016-02, Leases . The standard requires that lessees recognize a right-of-use asset and corresponding lease liability on the balance sheet for most leases. The guidance applied by a lessor under ASU No. 2016-02 is substantially similar to existing GAAP. ASU No. 2016-02 is effective for New Residential in the first quarter of 2019. Early adoption is permitted upon issuance. An entity should apply ASU No. 2016-02 by means of a modified retrospective transition method for all leases existing at, or entered into after, the date of initial application. The adoption of ASU No. 2016-02 did not have a material impact on the consolidated financial statements, and the amount of New Residential future lease commitments has been deemed as immaterial (see Note 16 for details). In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments . The standard requires that a financial asset measured at amortized cost basis be presented at the net amount expected to be collected, net of an allowance for all expected (rather than incurred) credit losses. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also changes the accounting for purchased credit deteriorated assets and available-for-sale securities, which will require the recognition of credit losses through a valuation allowance when fair value is less than amortized cost, regardless of whether the impairment is considered to be other-than-temporary. ASU No. 2016-13 is effective for New Residential in the first quarter of 2020, and early adoption was permitted beginning in 2019. An entity should apply ASU No. 2016-13 by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. New Residential is still evaluating and expects to recognize a cumulative-effect adjustment to the balance sheet upon adoption. The standard provides an option to elect fair value option for certain investments as an alternative to adopting ASU No. 2016-13. New Residential expects to elect fair value option on its residential mortgage and consumer loans portfolios, and expects to record a positive adjustments of $5.9 million to retained earnings, comprised of a decrease of $6.0 million due to the change in fair value of residential mortgage loans, and an increase of $11.9 million due to the change in fair value of consumer loans, net of noncontrolling interests. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory . The standard requires recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU No. 2016-16 was effective for New Residential in the first quarter of 2018. The adoption of ASU No. 2016-16 did not have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment (Topic 805) . The standard simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in the current two-step impairment test. Under the new guidance, an impairment charge, if triggered, is calculated as the difference between a reporting unit’s carrying value and fair value, but it is limited to the carrying value of goodwill. ASU No. 2017-04 is effective for New Residential in the first quarter of 2020 and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. New Residential is early adopting the standard for 2019. The adoption of ASU No. 2017-04 did not have a material impact on the financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) . The standard: (i) adds incremental requirements for entities to disclose (a) the amount of total gains or losses for the period recognized in other comprehensive income that is attributable to fair value changes in assets and liabilities held as of the balance sheet date and categorized within Level 3 of the fair value hierarchy, (b) the range and weighted average used to develop significant unobservable inputs and (c) how the weighted average was calculated for fair value measurements categorized within Level 3 of the fair value hierarchy and (ii) eliminates disclosure requirements for (a) transfers between Level 1 and Level 2 and (b) valuation processes for Level 3 fair value measurements. ASU No. 2018-13 is effective for New Residential in the first quarter of 2020 and early adoption is permitted for interim or annual periods beginning with the third quarter of 2018. The adoption of ASU No. 2018-13 is not expected to have a material impact on its consolidated financial statements. On December 18, 2019, the FASB issued Accounting Standards Update 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , as part of its overall simplification initiative. Amendments include removal of certain exceptions to the general principles of ASC 740, Income Taxes , and simplification in several areas including accounting for franchise taxes and step-up in tax basis goodwill. While not required to be adopted until 2021, New Residential is early adopting this guidance in 2019. The adoption of ASU No. 2019-12 did not have a material impact on the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Accretion and Other Amortization | Accretion and Other Amortization — As reflected on the consolidated statements of cash flows, this item is comprised of the following: Year Ended December 31, 2019 2018 2017 Accretion of net discount on securities and loans (A) $ 323,652 $ 452,500 $ 398,213 Accretion of servicer advances receivable discount and servicer advance investments 28,094 214,876 542,983 Accretion of excess mortgage servicing rights income 32,647 44,440 103,053 Amortization of deferred financing costs (4,019 ) (7,795 ) (12,076 ) Amortization of discount on notes and bonds payable (1,245 ) (2,054 ) (789 ) $ 379,129 $ 701,967 $ 1,031,384 (A) Includes accretion of the accretable yield on PCD loans. |
Schedule of Other Income (Loss), Net | This item is comprised of the following: Year Ended December 31, 2019 2018 2017 Unrealized gain (loss) on other ABS $ 2,101 $ 10,283 $ 2,883 Unrealized gain (loss) on notes and bonds payable (1,236 ) (684 ) — Unrealized gain (loss) on contingent consideration (10,487 ) (1,581 ) — Gain (loss) on transfer of loans to REO 11,842 19,519 22,938 Gain (loss) on transfer of loans to other assets (1,144 ) (1,977 ) 488 Gain (loss) on Excess MSR recapture agreements 2,294 979 2,384 Gain (loss) on Ocwen common stock 174 (10,860 ) 5,346 Bargain Purchase Gain (A) 49,539 — — Rental and Ancillary Revenue 21,181 — — Other income (loss) (30,115 ) (26,457 ) (27,741 ) $ 44,149 $ (10,778 ) $ 6,298 (A) Partly driven by certain transition, integration, relocation and training costs incurred by the Ditech Acquisition (Note 3). |
Schedule of Gain (Loss) on Settlement of Investments, Net | Gain (Loss) on Settlement of Investments, Net — This item is comprised of the following: Year Ended December 31, 2019 2018 2017 Gain (loss) on sale of real estate securities, net $ 205,989 $ (29,936 ) $ 20,642 Gain (loss) on sale of acquired residential mortgage loans, net 153,174 (7,677 ) 39,731 Gain (loss) on settlement of derivatives (129,923 ) 54,867 (39,214 ) Gain (loss) on liquidated residential mortgage loans (4,872 ) (3,734 ) (10,201 ) Gain (loss) on sale of REO (11,521 ) (12,424 ) (9,215 ) Gains on settlement of investments in excess MSRs and servicer advance investments — 113,002 11,320 Other gains (losses) 12,840 (19,013 ) (2,753 ) $ 225,687 $ 95,085 $ 10,310 |
Schedule Of General And Administrative Expenses | General and Administrative Expenses is comprised of the following: Year Ended December 31, 2019 2018 2017 Compensation and benefits expense, servicing $ 121,004 $ 47,084 $ 184 Compensation and benefits expense, origination 164,485 62,786 — Legal and professional expense 89,489 45,234 40,182 Loan origination expense 59,418 16,050 — Occupancy expense 19,388 8,868 — Other (A) 84,251 51,557 26,793 $ 538,035 $ 231,579 $ 67,159 (A) Represents miscellaneous general and administrative expenses. |
Schedule of Other Assets and Other Liabilities | Other Assets and Other Liabilities — Other assets and liabilities are comprised of the following: Other Assets Accrued Expenses and Other Liabilities December 31, December 31, 2019 2018 2019 2018 Margin receivable, net (A) $ 280,176 $ 145,857 MSRs purchase price holdback 75,348 100,593 Servicing fee receivables 159,607 105,563 Interest payable 68,668 49,352 Due from servicers 163,961 95,261 Accounts payable 119,771 75,591 Principal and interest receivable 85,191 76,015 Derivative liabilities (Note 11) 6,885 29,389 Equity investment (B) 114,763 74,323 Due to servicers 127,846 95,419 Other receivables 117,045 23,723 Residential mortgage loan repurchase liability 172,336 121,602 Real Estate Owned 93,672 113,410 Contingent Consideration 55,222 40,842 Single-family rental properties 24,133 — Accrued Compensation and Benefits 41,228 17,656 Residential mortgage loans subject to repurchase 172,336 121,602 Excess spread financing, at fair value 31,777 39,304 Consumer loans, equity method investees (Note 10) — 38,294 Operating lease liability 38,520 — Goodwill 29,737 24,645 Reserve for sales recourse 12,549 5,880 Notes Receivable (D) 37,001 — Other liabilities 22,976 36,484 Warrants 28,042 — $ 773,126 $ 612,112 Recovery asset (E) 23,100 — Property and equipment 18,018 11,263 Receivable from government agency (C) 19,670 20,795 Intangible assets 40,963 18,708 Prepaid expenses 19,249 29,165 Operating lease right-of-use asset 32,120 — Derivative assets (Note 11) 41,501 10,893 Ocwen common stock, at fair value 7,952 7,778 Other assets 51,230 44,419 $ 1,559,467 $ 961,714 (A) Represents collateral posted primarily as a result of changes in fair value of our 1) real estate securities securing our repurchase agreements and 2) derivative instruments. (B) Represents equity investments in funds that invest in 1) a commercial redevelopment project and 2) operating companies in the single family housing industry. The indirect investments are accounted for at fair value based on the net asset value (“NAV”) of New Residential’s investment and as an equity method investment, respectively. (C) Represents claims receivable from the FHA on EBO and reverse mortgage loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee. (D) Represents a four-year subordinated debt facility to Covius (Note 3). (E) Represents post loan charge off deficiency balances acquired through the Ditech Acquisition (Note 3). |
BUSINESS ACQUISITIONS (Tables)
BUSINESS ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | New Residential has performed an allocation of the total consideration paid to acquire the assets and liabilities of the companies acquired, as set forth below. 2019 2018 Ditech Guardian Total Shellpoint Total Consideration ($ in millions) $ 1,218.2 $ 21.5 $ 1,239.7 $ 425.5 Assets Mortgage servicing rights, at fair value (A) $ 387.2 $ — $ 387.2 $ 286.6 Residential mortgage loans, held-for-investment, at fair value — — — 125.3 Residential mortgage loans, held-for-sale, at fair value 627.4 — 627.4 488.2 Residential mortgage loans subject to repurchase — — — 121.4 Cash and cash equivalents — 1.8 1.8 79.2 Restricted cash — — — 9.9 Servicer Advance Receivable 238.0 — 238.0 22.4 Intangible assets (B) (C) (D) 10.5 11.7 22.2 18.4 Other assets (E) 64.8 6.6 71.4 59.1 Total Assets Acquired $ 1,327.9 $ 20.1 $ 1,348.0 $ 1,210.5 Liabilities Repurchase agreements $ — $ — $ — $ 439.6 Notes and bonds payable — — — 20.7 Mortgage-backed securities issued, at fair value — — — 120.7 Residential mortgage loans repurchase liability — — — 121.4 Excess spread financing, at fair value — — — 48.3 Accrued expenses and other liabilities 60.2 3.7 63.9 50.6 Total Liabilities Assumed $ 60.2 $ 3.7 $ 63.9 $ 801.3 Noncontrolling Interest $ — $ — $ — $ 8.3 Net Assets $ 1,267.7 $ 16.4 $ 1,284.1 $ 400.9 Goodwill (Bargain Purchase Gain) $ (49.5 ) $ 5.1 $ (44.4 ) $ 24.6 (A) Includes $135.3 million of Ginnie Mae MSRs related to the Shellpoint acquisition where New Residential acquired the rights to the economic value of the servicing rights from Shellpoint prior to the acquisition date. (B) Includes intangible assets acquired as part of the Ditech acquisition in the form of correspondent customer relationships and servicing contracts tied to the recovery of defaulted loans. These intangibles will be amortized over a finite life of three years based on the expected useful life of these intangibles. (C) Includes intangible assets acquired as part of the Guardian acquisition in the form of customer relationships and a tradename. Customer relationships will be amortized over a finite life of seven years based on the expected useful life of these intangibles. New Residential has determined that the tradename has an indefinite useful life and will be evaluated for impairment given no legal, regulatory, contractual, competitive or economic factors that would limited useful life. (D) Includes intangible assets acquired as part of the Shellpoint acquisition in the form of mortgage origination and servicing licenses, internally developed software and a tradename. New Residential determined that mortgage origination and servicing licenses have an indefinite useful life and will be evaluated for impairment given no legal, regulatory, contractual, competitive or economic factors that would limit the useful life. Internally developed software will be amortized over a finite useful life of five years and tradenames were fully amortized over six months , respectively, based on the expected software development timeline and New Residential’s determination of the time to change a tradename with limited value. (E) Includes post loan charge off deficiency balances acquired through the Ditech Acquisition. |
Schedule of Total Consideration | The acquisition date fair value of the consideration transferred includes $1.2 billion in cash consideration and $4.9 million in effective settlement of preexisting relationships. The total consideration is summarized as follows: Total Consideration (in millions) Amount Cash Consideration $ 1,213.3 Effective Settlement of Preexisting Relationships (A) 4.9 Total Consideration $ 1,218.2 (A) Represents the effective settlement of preexisting relationships between New Residential and Ditech related to operating accounts receivable and payable existing prior to the acquisition date. The effective settlement of these preexisting relationships had no impact to New Residential’s Consolidated Statements of Income. New Residential recognized the effective settlement of preexisting relationships separately from the acquisition of assets and assumption of liabilities in the business combination. Total Consideration (in millions) Amount Cash Consideration $ 212.3 Earnout Payment (A) 39.3 Effective Settlement of Preexisting Relationships (B) 173.9 Total Consideration $ 425.5 (A) The range of outcomes for this contingent consideration is from $0 to $60.0 million , dependent on the performance of Shellpoint. At acquisition date, New Residential derived a fair value of the remaining contingent consideration payment in three years of $39.3 million . This amount excludes contingent payments to the long-term employee incentive plans that require continuing employment and are recognized as compensation expense within General and Administrative expenses in the post-acquisition consolidated financial statements separate from New Residential’s acquisition of assets and assumption of liabilities in the business combination. As of December 31, 2019 , the contingent consideration had a fair value of $40.9 million . (B) Represents the effective settlement of preexisting relationships between New Residential and Shellpoint. The effective settlement of these preexisting relationships had no impact to New Residential’s Consolidated Statements of Income. The acquisition date fair value of the consideration transferred includes $7.6 million in cash consideration and $13.9 million in contingent consideration. The total consideration is summarized as follows: Total Consideration (in millions) Amount Cash Consideration $ 7.6 Earnout Payment (A) 13.9 Total Consideration $ 21.5 (A) The range of outcomes for this contingent consideration is from $0 to $17.5 million |
Schedule of Unaudited Supplemental Pro Forma Financial Information | The following table presents unaudited pro forma combined Income Before Income Taxes for the years ended December 31, 2019 and 2018 prepared as if the Guardian Acquisition had been consummated on January 1, 2018. Years Ended December 31, 2019 2018 Pro Forma (in millions) Income Before Income Taxes $ 651.5 $ 932.2 December 31, 2019 and 2018 prepared as if the Ditech Acquisition had been consummated on January 1, 2018. Years Ended December 31, 2019 2018 Pro Forma (in millions) Servicing and Origination Revenue $ 1,104.0 $ 1,238.1 Income Before Income Taxes 552.8 923.3 Years Ended December 31, 2018 2017 Pro Forma (in millions) Servicing and Origination Revenue $ 767.0 $ 749.0 Income Before Income Taxes 948.1 1,197.5 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Segment Financial Data | Summary financial data on New Residential’s segments is given below, together with a reconciliation to the same data for New Residential as a whole: Servicing and Origination Residential Securities and Loans Origination Servicing MSR Related Investments Elimination (A) Total Servicing and Origination Real Estate Securities Residential Mortgage Loans Consumer Loans Corporate Total Year Ended December 31, 2019 Interest income $ 42,166 $ 34,013 $ 530,225 $ — $ 606,404 $ 744,145 $ 249,673 $ 165,877 $ 31 $ 1,766,130 Interest expense 41,949 1,043 246,294 — 289,286 453,609 158,298 32,558 — 933,751 Net interest income (expense) 217 32,970 283,931 — 317,118 290,536 91,375 133,319 31 832,379 Impairment — — — — — 25,174 (20,607 ) 31,010 — 35,577 Servicing revenue, net (1,605 ) 184,763 250,580 (48,579 ) 385,159 — — — — 385,159 Gain on originated mortgage loans, held-for-sale, net 397,252 1,029 52,991 (51,360 ) 399,912 — 75,543 — — 475,455 Other income (loss) 9,340 5,859 (144,231 ) — (129,032 ) 20,929 75,385 (9,999 ) 1,618 (41,099 ) Operating expenses 258,729 145,813 344,430 (48,579 ) 700,393 3,160 52,745 22,540 189,780 968,618 Income (Loss) Before Income Taxes 146,475 78,808 98,841 (51,360 ) 272,764 283,131 210,165 69,770 (188,131 ) 647,699 Income tax (benefit) expense 39,768 21,396 23,744 (14,179 ) 70,729 — (28,461 ) (502 ) — 41,766 Net Income (Loss) $ 106,707 $ 57,412 $ 75,097 $ (37,181 ) $ 202,035 $ 283,131 $ 238,626 $ 70,272 $ (188,131 ) $ 605,933 Noncontrolling interests in income (loss) of consolidated subsidiaries $ 6,231 $ — $ 4,255 $ — $ 10,486 $ — $ — $ 32,151 $ — $ 42,637 Dividends on Preferred Stock $ — $ — $ — $ — $ — $ — $ — $ — $ 13,281 $ 13,281 Net income (loss) attributable to common stockholders $ 100,476 $ 57,412 $ 70,842 $ (37,181 ) $ 191,549 $ 283,131 $ 238,626 $ 38,121 $ (201,412 ) $ 550,015 Servicing and Origination Residential Securities Origination Servicing MSR Related Investments Elimination (A) Total Servicing and Origination Real Estate Residential Mortgage Loans Consumer Corporate Total December 31, 2019 Investments $ 1,414,528 $ — $ 6,773,353 $ — $ 8,187,881 $ 19,477,728 $ 5,843,983 $ 827,545 $ — $ 34,337,137 Cash and cash equivalents 77,237 32,225 318,714 — 428,176 87,359 1,180 6,514 5,508 528,737 Restricted cash 6,730 15,769 107,328 — 129,827 — — 32,370 — 162,197 Other assets 250,709 204,723 3,420,122 — 3,875,554 5,590,456 174,940 78,740 85,956 9,805,646 Goodwill 11,836 12,809 5,092 — 29,737 — — — — 29,737 Total assets $ 1,761,040 $ 265,526 $ 10,624,609 $ — $ 12,651,175 $ 25,155,543 $ 6,020,103 $ 945,169 $ 91,464 $ 44,863,454 Debt $ 1,304,621 $ 33,412 $ 6,646,159 $ — $ 7,984,192 $ 22,151,110 $ 4,676,849 $ 824,222 $ — $ 35,636,373 Other liabilities 117,328 51,264 451,629 — 620,221 980,415 55,121 16,795 318,269 1,990,821 Total liabilities 1,421,949 84,676 7,097,788 — 8,604,413 23,131,525 4,731,970 841,017 318,269 37,627,194 Total equity 339,091 180,850 3,526,821 — 4,046,762 2,024,018 1,288,133 104,152 (226,805 ) 7,236,260 Noncontrolling interests in equity of consolidated subsidiaries 11,354 — 45,025 — 56,379 — — 22,171 — 78,550 Total New Residential stockholders’ equity $ 327,737 $ 180,850 $ 3,481,796 $ — $ 3,990,383 $ 2,024,018 $ 1,288,133 $ 81,981 $ (226,805 ) $ 7,157,710 Investments in equity method investees $ — $ — $ 165,848 $ — $ 165,848 $ — $ — $ — $ — $ 165,848 Servicing and Origination (B) Residential Securities and Loans Origination Servicing MSR Related Investments Elimination (A) Total Servicing and Origination Real Estate Securities Residential Mortgage Loans Consumer Loans Corporate Total Year Ended December 31, 2018 Interest income $ 12,430 $ 8,148 $ 703,387 $ — $ 723,965 $ 573,539 $ 158,892 $ 206,321 $ 1,506 $ 1,664,223 Interest expense 10,018 264 232,063 — 242,345 240,615 80,910 42,563 — 606,433 Net interest income (expense) 2,412 7,884 471,324 — 481,620 332,924 77,982 163,758 1,506 1,057,790 Impairment — — — — — 30,017 12,061 48,563 — 90,641 Servicing revenue, net (450 ) 63,006 476,224 (10,185 ) 528,595 — — — — 528,595 Gain on originated mortgage loans, held-for-sale, net 100,160 — 4,396 (17,168 ) 87,388 — 8,757 — — 96,145 Other income (loss) 2,067 — 12,216 — 14,283 (72,926 ) 7,699 9,965 (10,406 ) (51,385 ) Operating expenses 96,724 52,251 222,099 (10,185 ) 360,889 1,554 32,424 35,230 179,307 609,404 Income (Loss) Before Income Taxes 7,465 18,639 742,061 (17,168 ) 750,997 228,427 49,953 89,930 (188,207 ) 931,100 Income tax (benefit) expense — — (8,364 ) — (8,364 ) — (65,279 ) 212 — (73,431 ) Net Income (Loss) $ 7,465 $ 18,639 $ 750,425 $ (17,168 ) $ 759,361 $ 228,427 $ 115,232 $ 89,718 $ (188,207 ) $ 1,004,531 Noncontrolling interests in income (loss) of consolidated subsidiaries $ 1,599 $ — $ 1,978 $ — $ 3,577 $ — $ — $ 36,987 $ — $ 40,564 Dividends on Preferred Stock $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Net income (loss) attributable to common stockholders $ 5,866 $ 18,639 $ 748,447 $ (17,168 ) $ 755,784 $ 228,427 $ 115,232 $ 52,731 $ (188,207 ) $ 963,967 Servicing and Origination Residential Securities and Loans Origination Servicing MSR Related Investments Elimination (A) Total Servicing and Origination Real Estate Securities Residential Mortgage Loans Consumer Loans Corporate Total December 31, 2018 Investments $ 608,701 $ — $ 5,860,274 $ — $ 6,468,975 $ 11,636,581 $ 4,102,649 $ 1,110,496 $ — $ 23,318,701 Cash and cash equivalents 40,741 35,886 160,244 — 236,871 49 927 8,279 4,932 251,058 Restricted cash 4,292 2,416 119,693 — 126,401 — — 37,619 — 164,020 Other assets 43,412 84,432 3,382,348 — 3,510,192 4,080,202 131,282 64,802 146,111 7,932,589 Goodwill 11,836 12,809 — — 24,645 — — — — 24,645 Total assets $ 708,982 $ 135,543 $ 9,522,559 $ — $ 10,367,084 $ 15,716,832 $ 4,234,858 $ 1,221,196 $ 151,043 $ 31,691,013 Debt $ 555,423 $ 28,639 $ 6,080,273 $ — $ 6,664,335 $ 11,615,364 $ 3,342,636 $ 1,033,900 $ — $ 22,656,235 Other liabilities 468 4,591 515,156 — 520,215 2,111,868 8,916 13,572 291,912 2,946,483 Total liabilities 555,891 33,230 6,595,429 — 7,184,550 13,727,232 3,351,552 1,047,472 291,912 25,602,718 Total equity 153,091 102,313 2,927,130 — 3,182,534 1,989,600 883,306 173,724 (140,869 ) 6,088,295 Noncontrolling interests in equity of consolidated subsidiaries 7,998 — 52,066 — 60,064 — — 30,561 — 90,625 Total New Residential stockholders’ equity $ 145,093 $ 102,313 $ 2,875,064 $ — $ 3,122,470 $ 1,989,600 $ 883,306 $ 143,163 $ (140,869 ) $ 5,997,670 Investments in equity method investees $ — $ — $ 147,964 $ — $ 147,964 $ — $ — $ 38,294 $ — $ 186,258 (A) Elimination of intercompany transactions related primarily to servicing fees, loan sales, and MSR recaptures. (B) Includes results from July 3, 2018, the date of Shellpoint Acquisition (Note 3). Servicing and Origination Residential Securities and Loans Origination Servicing MSR Related Investments Elimination Total Servicing and Origination Real Estate Securities Residential Mortgage Loans Consumer Loans Corporate Total Year Ended December 31, 2017 Interest income $ — $ — $ 713,413 $ — $ 713,413 $ 431,706 $ 110,087 $ 263,844 $ 629 $ 1,519,679 Interest expense — — 233,587 — 233,587 122,997 51,473 52,808 — 460,865 Net interest income (expense) — — 479,826 — 479,826 308,709 58,614 211,036 629 1,058,814 Impairment — — — — — 10,334 12,593 63,165 — 86,092 Servicing revenue, net — — 424,349 — 424,349 — — — — 424,349 Gain on originated mortgage loans, held-for-sale, net — — — — — — — — — — Other income (loss) — — 174,561 — 174,561 (16,371 ) 16,175 28,075 5,346 207,786 Operating expenses — — 186,330 — 186,330 1,471 31,529 43,552 159,695 422,577 Income (Loss) Before Income Taxes — — 892,406 — 892,406 280,533 30,667 132,394 (153,720 ) 1,182,280 Income tax (benefit) expense — — 166,186 — 166,186 — 1,272 170 — 167,628 Net Income (Loss) $ — $ — $ 726,220 $ — $ 726,220 $ 280,533 $ 29,395 $ 132,224 $ (153,720 ) $ 1,014,652 Noncontrolling interests in income of consolidated subsidiaries $ — $ — $ 11,227 $ — $ 11,227 $ — $ — $ 45,892 $ — $ 57,119 Dividends on Preferred Stock $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Net income (loss) attributable to common stockholders $ — $ — $ 714,993 $ — $ 714,993 $ 280,533 $ 29,395 $ 86,332 $ (153,720 ) $ 957,533 |
INVESTMENTS IN EXCESS MORTGAG_2
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | Changes in fair value recorded in other income is comprised of the following: Year Ended December 31, 2019 2018 2017 Original and Recaptured Pools $ (10,505 ) $ (58,656 ) $ 4,322 The following table presents activity related to the carrying value of New Residential’s direct investments in Excess MSRs: Servicer Mr. Cooper SLS (A) Ocwen (B) Total Balance as of December 31, 2017 $ 532,233 $ 2,913 $ 638,567 $ 1,173,713 Purchases — — — — Interest income 44,386 54 — 44,440 Other income 6,444 — 40,417 46,861 Proceeds from repayments (100,215 ) (632 ) (26,946 ) (127,793 ) Proceeds from sales (19,084 ) — — (19,084 ) Change in fair value (18,436 ) 197 (40,417 ) (58,656 ) Ocwen Transaction (Note 6) — — (611,621 ) (611,621 ) Balance as of December 31, 2018 445,328 2,532 — 447,860 Purchases — — — — Interest income 32,587 60 — 32,647 Other income 3,851 — — 3,851 Proceeds from repayments (83,612 ) (419 ) — (84,031 ) Proceeds from sales (10,075 ) — — (10,075 ) Change in fair value (10,387 ) (118 ) — (10,505 ) Balance as of December 31, 2019 $ 377,692 $ 2,055 $ — $ 379,747 (A) Specialized Loan Servicing LLC (“SLS”). (B) Ocwen Loan Servicing LLC, a subsidiary of Ocwen Financial Corporation (together with its subsidiaries, including Ocwen Loan Servicing LLC, “Ocwen”), services the loans underlying the Excess MSRs and Servicer Advance Investments. The following table presents activity related to the carrying value of New Residential’s investments in MSRs and MSR Financing Receivables: MSRs MSR Financing Receivables Total Balance as of December 31, 2017 $ 1,735,504 $ 598,728 $ 2,334,232 Purchases, net (A) 1,042,933 128,357 1,171,290 Transfers (B) 124,652 (124,652 ) — New Ocwen Agreements — 1,017,993 1,017,993 Shellpoint Acquisition (Note 3) (C) 151,312 — 151,312 Originations (D) 35,311 — 35,311 Proceeds from sales (5,776 ) (7,472 ) (13,248 ) Amortization of servicing rights (F) (258,068 ) (197,703 ) (455,771 ) Change in valuation inputs and assumptions (G) 61,149 230,036 291,185 (Gain)/loss on sales (2,917 ) (783 ) (3,700 ) Balance as of December 31, 2018 $ 2,884,100 $ 1,644,504 $ 4,528,604 Purchases, net (A) 690,049 735,152 1,425,201 Transfers (B) 367,121 (367,121 ) — Other transfers (H) (410 ) — (410 ) Ditech Acquisition (Note 3) 387,170 — 387,170 Originations (D) 374,450 — 374,450 Prepayments (E) (11,625 ) (82,250 ) (93,875 ) Proceeds from sales (1,539 ) (22,989 ) (24,528 ) Amortization of servicing rights (F) (537,111 ) (203,732 ) (740,843 ) Change in valuation inputs and assumptions (G) (187,530 ) 21,094 (166,436 ) (Gain)/loss on sales 3,285 (6,385 ) (3,100 ) Balance as of December 31, 2019 $ 3,967,960 $ 1,718,273 $ 5,686,233 (A) Net of purchase price adjustments. (B) Represents MSRs previously accounted for as MSR Financing Receivables. As a result of the length of the initial term of the related subservicing agreement between NRM and PHH, although the MSRs were legally sold, solely for accounting purposes, the purchase agreement was not treated as a sale under GAAP through June 30, 2019. (C) Includes $48.3 million of MSRs legally sold by NewRez treated as a secured borrowing as it did not meet the criteria for sale treatment. New Residential elected to record the excess spread financing liability at fair value pursuant to the fair value option. (D) Represents MSRs retained on the sale of originated mortgage loans. (E) Represents purchase price fully reimbursable from sellers as a result of prepayment protection. (F) Based on the ratio of the current UPB of the underlying residential mortgage loans relative to the original UPB of the underlying residential mortgage loans. (G) Change in valuation inputs and assumptions includes changes in inputs or assumptions used in the valuation model and other changes due to the realization of expected cash flows. (H) Represents Ginnie Mae MSRs repurchased. The following is a summary of New Residential’s investments in MSRs and MSR Financing Receivables as of December 31, 2019 and 2018 : UPB of Underlying Mortgages Weighted Average Life (Years) (A) Amortized Cost Basis Carrying Value (B) 2019 MSRs: Agency (C) $ 315,427,933 5.1 $ 3,179,556 $ 3,319,035 Non-Agency 6,402,833 5.4 12,437 20,283 Ginnie Mae (D) 52,019,295 4.6 614,855 628,642 MSR Financing Receivables: Agency (C) 54,866,978 4.7 582,600 547,351 Non-Agency 76,117,892 7.6 808,149 1,170,922 Total $ 504,834,931 5.4 $ 5,197,597 $ 5,686,233 2018 MSRs: Agency (C) $ 226,295,778 6.4 $ 2,189,039 $ 2,506,676 Non-Agency 2,143,212 6.6 19,982 22,438 Ginnie Mae (D) 30,023,713 7.4 357,673 354,986 MSR Financing Receivables: Agency (C) 42,265,547 5.9 366,946 434,110 Non-Agency 88,251,018 7.2 936,792 1,210,394 Total $ 388,979,268 6.6 $ 3,870,432 $ 4,528,604 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Carrying Value represents fair value. As of December 31, 2019 and 2018 , weighted average discount rates of 7.8% and 8.7% , respectively, were used to value New Residential’s investments in MSRs, respectively. As of December 31, 2019 and 2018 , weighted average discount rates of 8.9% and 10.3% , respectively, were used to value New Residential’s investments in MSR financing receivables. (C) Represents Fannie Mae and Freddie Mac MSRs. (D) NewRez, as an approved issuer of Ginnie Mae MBS, originates, sells and securitizes government-insured residential mortgage loans into Ginnie Mae guaranteed securitizations and NewRez retains the right to service the underlying residential mortgage loans. As the servicer, NewRez holds an option to repurchase delinquent loans from the securitization at its discretion. As of December 31, 2019 and 2018 , New Residential holds approximately $172.3 million and $121.6 million in residential mortgage loans subject to repurchase and residential mortgage loans repurchase liability on its Consolidated Balance Sheets. |
Servicing Asset at Amortized Cost | The following is a summary of New Residential’s direct investments in Excess MSRs: December 31, 2019 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis (B) Carrying Value (C) New Residential (D) Fortress-managed funds Mr. Cooper Agency Original and Recaptured Pools $ 43,310,917 32.5% - 66.7% (53.3%) 0.0% - 40.0% 20.0% - 35.0% 5.5 $ 178,603 $ 209,633 Non-Agency (E) Mr. Cooper and SLS Serviced: Original and Recaptured Pools $ 45,034,320 33.3% - 100.0% (59.4%) 0.0% - 50.0% 0.0% - 33.3% 6.5 $ 124,875 $ 170,114 Total $ 88,345,237 5.9 $ 303,478 $ 379,747 December 31, 2018 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis (B) Carrying Value (C) New Residential (D) Fortress-managed funds Mr. Cooper Agency Original and Recaptured Pools $ 52,368,290 32.5% - 66.7% (53.3%) 0.0% - 40.0% 20.0% - 35.0% 5.6 $ 218,797 $ 257,387 Non-Agency (E) Mr. Cooper and SLS Serviced: Original and Recaptured Pools $ 54,058,073 33.3% - 100.0% (59.4%) 0.0% - 50.0% 0.0% - 33.3% 5.8 $ 142,530 $ 190,473 Total $ 106,426,363 6.1 $ 361,327 $ 447,860 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) The amortized cost basis of the recapture agreements is determined based on the relative fair values of the recapture agreements and related Excess MSRs at the time they were acquired. (C) Carrying Value represents the fair value of the pools and recapture agreements, as applicable. (D) Amounts in parentheses represent weighted averages. (E) New Residential is also invested in related Servicer Advance Investments, including the basic fee component of the related MSR as of December 31, 2019 and 2018 (Note 7) on $31.4 billion and $40.1 billion UPB, respectively, underlying these Excess MSRs. |
Summary of the Financial Results of Excess MSR Joint Ventures, Accounted for as Equity Method Investees | The following tables summarize the financial results of the Excess MSR joint ventures, accounted for as equity method investees, held by New Residential: December 31, 2019 2018 Excess MSR assets $ 226,843 $ 269,203 Other assets 25,035 27,411 Other liabilities (687 ) (687 ) Equity $ 251,191 $ 295,927 New Residential’s investment $ 125,596 $ 147,964 New Residential’s ownership 50.0 % 50.0 % Year Ended December 31, 2019 2018 2017 Interest income $ 23,872 $ 26,363 $ 27,450 Other income (loss) (10,208 ) (9,649 ) (2,149 ) Expenses (64 ) — (68 ) Net income $ 13,600 $ 16,714 $ 25,233 New Residential’s investments in equity method investees changed during the years ended December 31, 2019 and 2018 as follows: 2019 2018 Balance at beginning of period $ 147,964 $ 171,765 Contributions to equity method investees — — Distributions of earnings from equity method investees (8,999 ) (11,059 ) Distributions of capital from equity method investees (20,169 ) (21,099 ) Change in fair value of investments in equity method investees 6,800 8,357 Balance at end of period $ 125,596 $ 147,964 |
Summary of Excess MSR Investments made through Equity Method Investees | The following is a summary of New Residential’s Excess MSR investments made through equity method investees: December 31, 2019 Unpaid Principal Balance Investee Interest in Excess MSR (A) New Residential Interest in Investees Amortized Cost Basis (B) Carrying Value (C) Weighted Average Life (Years) (D) Agency Original and Recaptured Pools $ 33,592,554 66.7% 50.0% $ 168,807 $ 226,843 5.4 December 31, 2018 Unpaid Principal Balance Investee Interest in Excess MSR (A) New Residential Interest in Investees Amortized Cost Basis (B) Carrying Value (C) Weighted Average Life (Years) (D) Agency Original and Recaptured Pools $ 41,707,963 66.7% 50.0% $ 198,261 $ 269,203 5.5 (A) The remaining interests are held by Mr. Cooper. (B) Represents the amortized cost basis of the equity method investees in which New Residential holds a 50% interest. The amortized cost basis of the recapture agreements is determined based on the relative fair values of the recapture agreements and related Excess MSRs at the time they were acquired. (C) Represents the carrying value of the Excess MSRs held in equity method investees, in which New Residential holds a 50% interest. Carrying value represents the fair value of the pools and recapture agreements, as applicable. (D) Represents the weighted average expected timing of the receipt of cash flows of each investment. |
INVESTMENTS IN MORTGAGE SERVI_2
INVESTMENTS IN MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |
Schedule of Activity Related to the Carrying Value of Investments in Excess MSRs | Changes in fair value recorded in other income is comprised of the following: Year Ended December 31, 2019 2018 2017 Original and Recaptured Pools $ (10,505 ) $ (58,656 ) $ 4,322 The following table presents activity related to the carrying value of New Residential’s direct investments in Excess MSRs: Servicer Mr. Cooper SLS (A) Ocwen (B) Total Balance as of December 31, 2017 $ 532,233 $ 2,913 $ 638,567 $ 1,173,713 Purchases — — — — Interest income 44,386 54 — 44,440 Other income 6,444 — 40,417 46,861 Proceeds from repayments (100,215 ) (632 ) (26,946 ) (127,793 ) Proceeds from sales (19,084 ) — — (19,084 ) Change in fair value (18,436 ) 197 (40,417 ) (58,656 ) Ocwen Transaction (Note 6) — — (611,621 ) (611,621 ) Balance as of December 31, 2018 445,328 2,532 — 447,860 Purchases — — — — Interest income 32,587 60 — 32,647 Other income 3,851 — — 3,851 Proceeds from repayments (83,612 ) (419 ) — (84,031 ) Proceeds from sales (10,075 ) — — (10,075 ) Change in fair value (10,387 ) (118 ) — (10,505 ) Balance as of December 31, 2019 $ 377,692 $ 2,055 $ — $ 379,747 (A) Specialized Loan Servicing LLC (“SLS”). (B) Ocwen Loan Servicing LLC, a subsidiary of Ocwen Financial Corporation (together with its subsidiaries, including Ocwen Loan Servicing LLC, “Ocwen”), services the loans underlying the Excess MSRs and Servicer Advance Investments. The following table presents activity related to the carrying value of New Residential’s investments in MSRs and MSR Financing Receivables: MSRs MSR Financing Receivables Total Balance as of December 31, 2017 $ 1,735,504 $ 598,728 $ 2,334,232 Purchases, net (A) 1,042,933 128,357 1,171,290 Transfers (B) 124,652 (124,652 ) — New Ocwen Agreements — 1,017,993 1,017,993 Shellpoint Acquisition (Note 3) (C) 151,312 — 151,312 Originations (D) 35,311 — 35,311 Proceeds from sales (5,776 ) (7,472 ) (13,248 ) Amortization of servicing rights (F) (258,068 ) (197,703 ) (455,771 ) Change in valuation inputs and assumptions (G) 61,149 230,036 291,185 (Gain)/loss on sales (2,917 ) (783 ) (3,700 ) Balance as of December 31, 2018 $ 2,884,100 $ 1,644,504 $ 4,528,604 Purchases, net (A) 690,049 735,152 1,425,201 Transfers (B) 367,121 (367,121 ) — Other transfers (H) (410 ) — (410 ) Ditech Acquisition (Note 3) 387,170 — 387,170 Originations (D) 374,450 — 374,450 Prepayments (E) (11,625 ) (82,250 ) (93,875 ) Proceeds from sales (1,539 ) (22,989 ) (24,528 ) Amortization of servicing rights (F) (537,111 ) (203,732 ) (740,843 ) Change in valuation inputs and assumptions (G) (187,530 ) 21,094 (166,436 ) (Gain)/loss on sales 3,285 (6,385 ) (3,100 ) Balance as of December 31, 2019 $ 3,967,960 $ 1,718,273 $ 5,686,233 (A) Net of purchase price adjustments. (B) Represents MSRs previously accounted for as MSR Financing Receivables. As a result of the length of the initial term of the related subservicing agreement between NRM and PHH, although the MSRs were legally sold, solely for accounting purposes, the purchase agreement was not treated as a sale under GAAP through June 30, 2019. (C) Includes $48.3 million of MSRs legally sold by NewRez treated as a secured borrowing as it did not meet the criteria for sale treatment. New Residential elected to record the excess spread financing liability at fair value pursuant to the fair value option. (D) Represents MSRs retained on the sale of originated mortgage loans. (E) Represents purchase price fully reimbursable from sellers as a result of prepayment protection. (F) Based on the ratio of the current UPB of the underlying residential mortgage loans relative to the original UPB of the underlying residential mortgage loans. (G) Change in valuation inputs and assumptions includes changes in inputs or assumptions used in the valuation model and other changes due to the realization of expected cash flows. (H) Represents Ginnie Mae MSRs repurchased. The following is a summary of New Residential’s investments in MSRs and MSR Financing Receivables as of December 31, 2019 and 2018 : UPB of Underlying Mortgages Weighted Average Life (Years) (A) Amortized Cost Basis Carrying Value (B) 2019 MSRs: Agency (C) $ 315,427,933 5.1 $ 3,179,556 $ 3,319,035 Non-Agency 6,402,833 5.4 12,437 20,283 Ginnie Mae (D) 52,019,295 4.6 614,855 628,642 MSR Financing Receivables: Agency (C) 54,866,978 4.7 582,600 547,351 Non-Agency 76,117,892 7.6 808,149 1,170,922 Total $ 504,834,931 5.4 $ 5,197,597 $ 5,686,233 2018 MSRs: Agency (C) $ 226,295,778 6.4 $ 2,189,039 $ 2,506,676 Non-Agency 2,143,212 6.6 19,982 22,438 Ginnie Mae (D) 30,023,713 7.4 357,673 354,986 MSR Financing Receivables: Agency (C) 42,265,547 5.9 366,946 434,110 Non-Agency 88,251,018 7.2 936,792 1,210,394 Total $ 388,979,268 6.6 $ 3,870,432 $ 4,528,604 (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Carrying Value represents fair value. As of December 31, 2019 and 2018 , weighted average discount rates of 7.8% and 8.7% , respectively, were used to value New Residential’s investments in MSRs, respectively. As of December 31, 2019 and 2018 , weighted average discount rates of 8.9% and 10.3% , respectively, were used to value New Residential’s investments in MSR financing receivables. (C) Represents Fannie Mae and Freddie Mac MSRs. (D) NewRez, as an approved issuer of Ginnie Mae MBS, originates, sells and securitizes government-insured residential mortgage loans into Ginnie Mae guaranteed securitizations and NewRez retains the right to service the underlying residential mortgage loans. As the servicer, NewRez holds an option to repurchase delinquent loans from the securitization at its discretion. As of December 31, 2019 and 2018 , New Residential holds approximately $172.3 million and $121.6 million in residential mortgage loans subject to repurchase and residential mortgage loans repurchase liability on its Consolidated Balance Sheets. |
Fees Earned in Exchange for Servicing Financial Assets | Servicing revenue, net recognized by New Residential related to its investments in MSRs was comprised of the following: Year Ended December 31, 2019 2018 2017 Servicing fee revenue $ 899,623 $ 589,546 $ 412,971 Ancillary and other fees 198,486 130,294 79,050 Servicing fee revenue and fees 1,098,109 719,840 492,021 Amortization of servicing rights (A) (530,031 ) (256,915 ) (223,167 ) Change in valuation inputs and assumptions (B) (C) (186,204 ) 68,587 155,495 (Gain)/loss on sales (D) 3,285 (2,917 ) — Servicing revenue, net $ 385,159 $ 528,595 $ 424,349 (A) Includes $7.1 million , $1.2 million and $0.0 million of amortization to Excess spread financing for the years ended December 31, 2019 , 2018 , and 2017 , respectively. (B) Change in valuation inputs and assumptions includes changes in inputs or assumptions used in the valuation model and other changes due to the realization of expected cash flows. (C) Includes $1.3 million , $7.4 million and $0.0 million of fair value adjustment to Excess spread financing for the years ended December 31, 2019 , 2018 , and 2017 , respectively. (D) Represents the realization of unrealized gain/(loss) as a result of sales. Interest income from investments in MSR Financing Receivables was comprised of the following: Year Ended December 31, 2019 2018 2017 Servicing fee revenue $ 513,172 $ 705,812 $ 94,945 Ancillary and other fees 119,570 146,829 17,313 Less: subservicing expense (196,726 ) (251,184 ) (33,686 ) Interest income, investments in MSR financing receivables $ 436,016 $ 601,457 $ 78,572 Change in fair value of investments in MSR Financing Receivables was comprised of the following: Year Ended December 31, 2019 2018 2017 Amortization of servicing rights $ (203,732 ) $ (197,703 ) $ (43,190 ) Change in valuation inputs and assumptions (A) 21,094 230,036 109,584 (Gain)/loss on sales (B) (6,385 ) (783 ) — Change in fair value of investments in MSR financing receivables $ (189,023 ) $ 31,550 $ 66,394 (A) Change in valuation inputs and assumptions includes changes in inputs or assumptions used in the valuation model and other changes due to the realization of expected cash flows. (B) Represents the realization of unrealized gain/(loss) as a result of sales. |
Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans of the Direct Investment in MSRs | The table below summarizes the geographic distribution of the underlying residential mortgage loans of the investments in MSRs and MSR Financing Receivables: Percentage of Total Outstanding Unpaid Principal Amount State Concentration December 31, 2019 December 31, 2018 California 21.9 % 21.7 % Florida 6.9 % 6.9 % New York 6.4 % 7.8 % Texas 5.5 % 5.3 % New Jersey 4.9 % 5.0 % Illinois 3.6 % 3.7 % Massachusetts 3.4 % 3.5 % Washington 3.3 % 2.3 % Georgia 3.1 % 3.0 % Maryland 3.0 % 3.4 % Other U.S. 38.0 % 37.4 % 100.0 % 100.0 % |
Schedule of Investment in Servicer Advances | The following types of advances are included in the Servicer Advances Receivable: December 31, 2019 2018 Principal and interest advances $ 660,807 $ 793,790 Escrow advances (taxes and insurance advances) 2,427,384 2,186,831 Foreclosure advances 163,054 199,203 Total (A) (B) (C) $ 3,251,245 $ 3,179,824 (A) Includes $562.2 million and $231.2 million of servicer advances receivable related to Agency MSRs, respectively, recoverable from the Agencies. (B) Includes $166.5 million and $41.6 million of servicer advances receivable related to Ginnie Mae MSRs, respectively, recoverable from Ginnie Mae. Reserves for advances associated with Ginnie Mae loans in the MSR portfolio are considered in the MSR fair valuation through a nonreimbursable advance loss assumption. (C) Net of $50.1 million and $98.0 million The following is a summary of New Residential’s Servicer Advance Investments, including the right to the basic fee component of the related MSRs: Amortized Cost Basis Carrying Value (A) Weighted Average Discount Rate Weighted Average Yield Weighted Average Life (Years) (B) Change in Fair Value Recorded in Other Income for Year then Ended December 31, 2019 Servicer Advance Investments $ 557,444 $ 581,777 5.3 % 5.7 % 6.3 $ 10,288 December 31, 2018 Servicer Advance Investments $ 721,801 $ 735,846 5.9 % 5.8 % 5.7 $ (89,332 ) (A) Carrying value represents the fair value of the Servicer Advance Investments, including the basic fee component of the related MSRs. (B) Weighted Average Life represents the weighted average expected timing of the receipt of expected net cash flows for this investment. The following is additional information regarding the Servicer Advance Investments and related financing: Loan-to-Value (“LTV”) (A) Cost of Funds (C) UPB of Underlying Residential Mortgage Loans Outstanding Servicer Advances Servicer Advances to UPB of Underlying Residential Mortgage Loans Face Amount of Notes and Bonds Payable Gross Net (B) Gross Net December 31, 2019 Servicer Advance Investments (D) $ 31,442,267 $ 462,843 1.5 % $ 443,248 88.3 % 87.2 % 3.4 % 2.8 % December 31, 2018 Servicer Advance Investments (D) $ 40,096,998 $ 620,050 1.5 % $ 574,117 88.3 % 87.2 % 3.7 % 3.1 % (A) Based on outstanding servicer advances, excluding purchased but unsettled servicer advances. (B) Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve. (C) Annualized measure of the cost associated with borrowings. Gross Cost of Funds primarily includes interest expense and facility fees. Net Cost of Funds excludes facility fees. (D) The following types of advances are included in the Servicer Advance Investments: December 31, 2019 2018 Principal and interest advances $ 71,574 $ 108,317 Escrow advances (taxes and insurance advances) 180,047 238,349 Foreclosure advances 211,222 273,384 Total $ 462,843 $ 620,050 |
SERVICER ADVANCE INVESTMENTS (T
SERVICER ADVANCE INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
Schedule of Investment in Servicer Advances | The following types of advances are included in the Servicer Advances Receivable: December 31, 2019 2018 Principal and interest advances $ 660,807 $ 793,790 Escrow advances (taxes and insurance advances) 2,427,384 2,186,831 Foreclosure advances 163,054 199,203 Total (A) (B) (C) $ 3,251,245 $ 3,179,824 (A) Includes $562.2 million and $231.2 million of servicer advances receivable related to Agency MSRs, respectively, recoverable from the Agencies. (B) Includes $166.5 million and $41.6 million of servicer advances receivable related to Ginnie Mae MSRs, respectively, recoverable from Ginnie Mae. Reserves for advances associated with Ginnie Mae loans in the MSR portfolio are considered in the MSR fair valuation through a nonreimbursable advance loss assumption. (C) Net of $50.1 million and $98.0 million The following is a summary of New Residential’s Servicer Advance Investments, including the right to the basic fee component of the related MSRs: Amortized Cost Basis Carrying Value (A) Weighted Average Discount Rate Weighted Average Yield Weighted Average Life (Years) (B) Change in Fair Value Recorded in Other Income for Year then Ended December 31, 2019 Servicer Advance Investments $ 557,444 $ 581,777 5.3 % 5.7 % 6.3 $ 10,288 December 31, 2018 Servicer Advance Investments $ 721,801 $ 735,846 5.9 % 5.8 % 5.7 $ (89,332 ) (A) Carrying value represents the fair value of the Servicer Advance Investments, including the basic fee component of the related MSRs. (B) Weighted Average Life represents the weighted average expected timing of the receipt of expected net cash flows for this investment. The following is additional information regarding the Servicer Advance Investments and related financing: Loan-to-Value (“LTV”) (A) Cost of Funds (C) UPB of Underlying Residential Mortgage Loans Outstanding Servicer Advances Servicer Advances to UPB of Underlying Residential Mortgage Loans Face Amount of Notes and Bonds Payable Gross Net (B) Gross Net December 31, 2019 Servicer Advance Investments (D) $ 31,442,267 $ 462,843 1.5 % $ 443,248 88.3 % 87.2 % 3.4 % 2.8 % December 31, 2018 Servicer Advance Investments (D) $ 40,096,998 $ 620,050 1.5 % $ 574,117 88.3 % 87.2 % 3.7 % 3.1 % (A) Based on outstanding servicer advances, excluding purchased but unsettled servicer advances. (B) Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve. (C) Annualized measure of the cost associated with borrowings. Gross Cost of Funds primarily includes interest expense and facility fees. Net Cost of Funds excludes facility fees. (D) The following types of advances are included in the Servicer Advance Investments: December 31, 2019 2018 Principal and interest advances $ 71,574 $ 108,317 Escrow advances (taxes and insurance advances) 180,047 238,349 Foreclosure advances 211,222 273,384 Total $ 462,843 $ 620,050 |
Schedule of Interest Income Related to Investments in Servicer Advances | Interest income recognized by New Residential related to its Servicer Advance Investments was comprised of the following: Year Ended December 31, 2019 2018 2017 Interest income, gross of amounts attributable to servicer compensation $ 51,940 $ 83,807 $ 871,506 Amounts attributable to base servicer compensation (6,209 ) (8,491 ) (227,585 ) Amounts attributable to incentive servicer compensation (18,065 ) (25,098 ) (115,565 ) Interest income from Servicer Advance Investments $ 27,666 $ 50,218 $ 528,356 Net Interest Income December 31, 2019 2018 Interest Income: Acquired Residential Mortgage Loans, held-for-investment $ 60,301 $ 76,129 Acquired Residential Mortgage Loans, held-for-sale 65,926 45,653 Acquired Residential Mortgage Loans, held-for-sale, at fair value 123,446 35,904 Originated Residential Mortgage Loans, held-for-sale, at fair value 52,480 15,658 Total Interest Income on Residential Mortgage Loans 302,153 173,344 Interest Expense: Acquired Residential Mortgage Loans, held-for-investment 19,381 23,618 Acquired Residential Mortgage Loans, held-for-sale 40,067 35,796 Acquired Residential Mortgage Loans, held-for-sale, at fair value 98,850 21,496 Originated Residential Mortgage Loans, held-for-sale,at fair value 10,873 2,690 Total Interest Expense on Residential Mortgage Loans 169,171 83,600 Total Net Interest Income on Residential Mortgage Loans $ 132,982 $ 89,744 |
INVESTMENTS IN REAL ESTATE AN_2
INVESTMENTS IN REAL ESTATE AND OTHER SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Real Estate Securities | The following is a summary of New Residential’s real estate and other securities, all of which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired and except for securities which New Residential elected to carry at fair value and record changes to valuation through the income statement. Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Amortized Cost Basis Gains Losses Carrying Value (A) Number of Securities Rating (B) Coupon (C) Yield Life (Years) (D) Principal Subordination (E) December 31, 2019 Agency RMBS (F)(G) $ 11,301,603 $ 11,474,338 $ 57,221 $ (11,616 ) $ 11,519,943 43 AAA 3.17 % 2.78 % 6.0 N/A Non-Agency RMBS (H) (I) 24,857,988 7,307,837 689,158 (39,210 ) 7,957,785 997 B+ 2.90 % 4.70 % 7.0 11.0 % Total/Weighted Average $ 36,159,591 $ 18,782,175 $ 746,379 $ (50,826 ) $ 19,477,728 1,040 A+ 3.03 % 3.53 % 6.4 December 31, 2018 Agency RMBS (F)(G) 2,613,395 2,657,917 7,744 (43 ) 2,665,618 31 AAA 4.01 % 3.70 % 8.1 N/A Non-Agency RMBS (H) (I) 19,539,450 8,554,511 517,861 (101,409 ) 8,970,963 897 B+ 3.40 % 5.63 % 6.9 12.4 % Total/Weighted Average $ 22,152,845 $ 11,212,428 $ 525,605 $ (101,452 ) $ 11,636,581 928 BB+ 3.53 % 5.17 % 7.2 (A) Fair value, which is equal to carrying value for all securities. See Note 13 regarding the estimation of fair value. (B) Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. This excludes the ratings of the collateral underlying 340 bonds with a carrying value of $1,129.3 million which either have never been rated or for which rating information is no longer provided. For each security rated by multiple rating agencies, the lowest rating is used. New Residential used an implied AAA rating for the Agency RMBS. Ratings provided were determined by third party rating agencies, and represent the most recent credit ratings available as of the reporting date and may not be current. (C) Excludes residual bonds, and certain other Non-Agency bonds, with a carrying value of $41.0 million and $3.4 million , respectively, for which no coupon payment is expected. (D) The weighted average life is based on the timing of expected principal reduction on the assets. (E) Percentage of the amortized cost basis of securities that is subordinate to New Residential’s investments, excluding fair value option securities. (F) Includes securities issued or guaranteed by U.S. Government agencies such as Fannie Mae or Freddie Mac. (G) The total outstanding face amount was $11.3 billion and $2.6 billion for fixed rate securities and $0.0 billion and $0.0 billion for floating rate securities as of December 31, 2019 and 2018 , respectively. (H) The total outstanding face amount was $5.4 billion (including $3.2 billion of residual and fair value option notional amount) and $3.8 billion (including $1.5 billion of residual and fair value option notional amount) for fixed rate securities and $19.5 billion (including $12.2 billion of residual and fair value option notional amount) and $15.7 billion (including $7.4 billion of residual and fair value option notional amount) for floating rate securities as of December 31, 2019 and 2018 , respectively. (I) Includes other asset backed securities (“ABS”) consisting primarily of (i) interest-only securities and servicing strips (fair value option securities) which New Residential elected to carry at fair value and record changes to valuation through the income statement, (ii) bonds backed by consumer loans and (iii) corporate debt. Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Amortized Cost Basis Gains Losses Carrying Value Number of Securities Rating Coupon Yield Life (Years) Principal Subordination December 31, 2019 Corporate debt $ 85,000 $ 85,000 $ — $ (1,262 ) $ 83,738 1 B- 8.25 % 8.25 % 5.3 N/A Consumer loan bonds 25,029 25,688 521 (6,190 ) 20,019 6 N/A N/A N/A 1.6 N/A MSR bond — — — — — — N/A — % — % — N/A Fair Value Option Securities Interest-only Securities 11,201,646 308,714 35,882 (19,459 ) 325,137 124 AA+ 1.37 % 10.49 % 2.9 N/A Servicing Strips 4,073,792 40,043 2,431 (4,562 ) 37,912 46 N/A 0.38 % 4.01 % 5.7 N/A December 31, 2018 Corporate debt $ 85,000 $ 85,000 $ — $ (12,325 ) $ 72,675 1 B- 8.25 % 8.25 % 6.3 N/A Consumer loan bonds 56,846 57,480 33 (7,075 ) 50,438 6 B 5.50 % 20.26 % 1.6 N/A MSR bond 228,000 228,000 — (400 ) 227,600 2 BBB- 5.24 % 4.89 % 8.8 N/A Fair Value Option Securities Interest-only Securities 6,832,353 259,725 23,694 (13,025 ) 270,394 79 AA+ 1.38 % 6.58 % 3.0 N/A Servicing Strips 975,048 8,588 1,720 (198 ) 10,110 31 N/A 0.21 % 13.23 % 6.0 N/A Activities related to New Residential’s investments in real estate and other securities were as follows: Year Ended December 31, 2019 Year Ended December 31, 2018 (in millions) (in millions) Treasury Agency Non-Agency Treasury Agency Non-Agency Purchases Face $ — $ 33,573.5 $ 14,960.4 $ — $ 11,006.7 $ 9,194.8 Purchase Price — 34,335.5 2,059.0 — 11,121.6 3,854.4 Sales Face $ — $ 22,746.3 $ 2,936.2 $ 862.0 $ 9,485.0 $ 115.0 Amortized Cost — 23,337.8 1,852.1 858.0 9,590.6 87.7 Sale Price — 23,449.2 1,949.3 849.8 9,569.2 86.4 Gain (Loss) on Sale — 111.4 97.2 (8.2 ) (21.4 ) (1.3 ) |
Summary of Real Estate Securities in an Unrealized Loss Position | The following table summarizes New Residential’s securities in an unrealized loss position as of December 31, 2019 . Amortized Cost Basis Weighted Average Securities in an Unrealized Loss Position Outstanding Face Amount Before Impairment Other-Than- Temporary Impairment (A) After Impairment Gross Unrealized Losses Carrying Value Number of Securities Rating (B) Coupon Yield Life (Years) Less than 12 Months $ 10,805,953 $ 4,798,637 $ (1,208 ) $ 4,797,429 $ (32,342 ) $ 4,765,087 124 AA+ 3.02 % 2.86 % 6.8 12 or More Months 1,704,469 210,058 (2,024 ) 208,034 (18,484 ) 189,550 64 BB+ 4.20 % 6.50 % 4.7 Total/Weighted Average $ 12,510,422 $ 5,008,695 $ (3,232 ) $ 5,005,463 $ (50,826 ) $ 4,954,637 188 AA 3.07 % 3.01 % 6.8 (A) This amount represents OTTI recorded on securities that are in an unrealized loss position as of December 31, 2019 . (B) The weighted average rating of securities in an unrealized loss position for less than 12 months excludes the rating of 51 bonds which either have never been rated or for which rating information is no longer provided. The weighted average rating of securities in an unrealized loss position for 12 or more months excludes the rating of 15 bonds which either have never been rated or for which rating information is no longer provided. New Residential performed an assessment of all of its debt securities that are in an unrealized loss position (an unrealized loss position exists when a security’s amortized cost basis, excluding the effect of OTTI, exceeds its fair value) and determined the following: December 31, 2019 Gross Unrealized Losses Fair Value Amortized Cost Basis After Impairment Credit (A) Non-Credit (B) Securities New Residential intends to sell (C) $ — $ — $ — $ — Securities New Residential is more likely than not to be required to sell (D) — — — N/A Securities New Residential has no intent to sell and is not more likely than not to be required to sell: Credit impaired securities 228,228 237,626 (3,232 ) (9,398 ) Non-credit impaired securities 4,726,409 4,767,837 — (41,428 ) Total debt securities in an unrealized loss position $ 4,954,637 $ 5,005,463 $ (3,232 ) $ (50,826 ) (A) This amount is required to be recorded as OTTI through earnings. In measuring the portion of credit losses, New Residential estimates the expected cash flow for each of the securities. This evaluation includes a review of the credit status and the performance of the collateral supporting those securities, including the credit of the issuer, key terms of the securities and the effect of local, industry and broader economic trends. Significant inputs in estimating the cash flows include New Residential’s expectations of prepayment rates, default rates and loss severities. Credit losses are measured as the decline in the present value of the expected future cash flows discounted at the investment’s effective interest rate. (B) This amount represents unrealized losses on securities that are due to non-credit factors and recorded through other comprehensive income. (C) A portion of securities New Residential intends to sell have a fair value equal to their amortized cost basis after impairment, and, therefore do not have unrealized losses reflected in other comprehensive income as of December 31, 2019 . (D) New Residential may, at times, be more likely than not to be required to sell certain securities for liquidity purposes. While the amount of the securities to be sold may be an estimate, and the securities to be sold have not yet been identified, New Residential must make its best estimate, which is subject to significant judgment regarding future events, and may differ materially from actual future sales. |
Summary of Activity Related to Credit Losses on Debt Securities | The following table summarizes the activity related to credit losses on debt securities: Year Ended December 31, 2019 2018 Beginning balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income $ 52,803 $ 23,821 Increases to credit losses on securities for which an OTTI was previously recognized and a portion of an OTTI was recognized in other comprehensive income 23,059 16,924 Additions for credit losses on securities for which an OTTI was not previously recognized 2,115 13,093 Reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis — — Reduction for credit losses on securities for which no OTTI was recognized in other comprehensive income at the current measurement date — — Reduction for securities sold/paid off during the period (18,914 ) (1,035 ) Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income $ 59,063 $ 52,803 |
Summary of the Geographic Distribution of the Collateral Securing Non-Agency RMBS | The table below summarizes the geographic distribution of the collateral securing New Residential’s Non-Agency RMBS: December 31, 2019 2018 Geographic Location (A) Outstanding Face Amount Percentage of Total Outstanding Outstanding Face Amount Percentage of Total Outstanding Western U.S. $ 9,048,847 36.6 % $ 7,318,616 37.7 % Southeastern U.S. 5,983,966 24.2 % 4,613,314 23.8 % Northeastern U.S. 5,416,137 21.9 % 3,829,725 19.7 % Midwestern U.S. 2,562,269 10.4 % 2,063,263 10.6 % Southwestern U.S. 1,440,467 5.8 % 1,321,853 6.8 % Other (B) 296,273 1.1 % 250,833 1.4 % $ 24,747,959 100.0 % $ 19,397,604 100.0 % (A) Excludes $25.0 million and $56.8 million face amount of bonds backed by consumer loans and $85.0 million and $85.0 million face amount of bonds backed by corporate debt as of December 31, 2019 and December 31, 2018 , respectively. (B) Represents collateral for which New Residential was unable to obtain geographic information. |
Schedule of the Outstanding Face Amount and Carrying Value for Securities Uncollectible | The following is the outstanding face amount and carrying value for securities, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments, excluding residual and fair value option securities: Outstanding Face Amount Carrying Value December 31, 2019 $ 5,701,736 $ 3,830,369 December 31, 2018 6,385,306 4,217,242 |
Summary of Changes in Accretable Yield for Securities | The following is a summary of the changes in accretable yield for these securities: Year Ended December 31, 2019 2018 Beginning Balance $ 2,245,983 $ 2,000,266 Additions 407,864 397,934 Accretion (239,682 ) (290,014 ) Reclassifications from (to) non-accretable difference (233,683 ) 156,070 Disposals (298,006 ) (18,273 ) Ending Balance $ 1,882,476 $ 2,245,983 |
INVESTMENTS IN RESIDENTIAL MO_2
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS AND REAL ESTATE OWNED (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO | The following table presents certain information regarding New Residential’s residential mortgage loans outstanding by loan type, excluding REO: December 31, 2019 Outstanding Face Amount Carrying Loan Weighted Average Yield Weighted Average Life (Years) (A) Floating Rate Loans as a % of Face Amount LTV Ratio (B) Weighted Avg. Delinquency (C) Weighted Average FICO (D) Loan Type Performing Loans (G) (J) $ 858,703 $ 859,428 13,627 6.9 % 5.3 8.8 % 76.1 % 15.8 % 646 Purchased Credit Deteriorated Loans (H) 96,420 66,278 945 8.5 % 3.2 21.8 % 91.1 % 60.0 % 588 Total Residential Mortgage Loans, held-for-investment $ 955,123 $ 925,706 14,572 7.1 % 5.1 10.1 % 77.6 % 20.2 % 641 Reverse Mortgage Loans (E) (F) $ 11,628 $ 5,844 28 7.9 % 4.6 5.7 % 149.9 % 69.5 % N/A Performing Loans (G) (I) 839,141 857,821 12,808 4.5 % 4.0 62.7 % 50.1 % 7.8 % 688 Non-Performing Loans (H) (I) 680,736 565,387 5,032 5.2 % 3.1 11.8 % 73.8 % 77.3 % 587 Total Residential Mortgage Loans, held-for-sale $ 1,531,505 $ 1,429,052 17,868 4.9 % 3.6 39.7 % 61.4 % 39.2 % 643 Acquired Loans 3,132,007 3,024,288 19,204 4.0 % 7.0 3.3 % 62.2 % 23.1 % 626 Originated Loans 1,543,799 1,589,324 5,806 3.8 % 28.6 3.5 % 79.0 % 8.2 % 674 Total Residential Mortgage Loans, held-for-sale, at fair value (K) $ 4,675,806 $ 4,613,612 25,010 4.0 % 14.1 3.4 % 67.8 % 18.2 % 642 December 31, 2018 Loan Type Performing Loans (G) (J) $ 636,874 $ 591,264 8,424 8.0 % 4.8 20.3 % 77.7 % 8.9 % 649 Purchased Credit Deteriorated Loans (H) 191,497 144,065 1,556 7.6 % 3.1 16.4 % 84.6 % 71.5 % 596 Total Residential Mortgage Loans, held-for-investment $ 828,371 $ 735,329 9,980 7.9 % 4.4 19.4 % 79.3 % 23.3 % 637 Reverse Mortgage Loans (E) (F) $ 13,807 $ 6,557 37 8.1 % 4.8 10.6 % 142.5 % 67.8 % N/A Performing Loans (G) (I) 408,724 413,883 7,144 4.4 % 3.9 56.6 % 61.3 % 9.0 % 670 Non-Performing Loans (H) (I) 621,700 512,040 5,029 5.5 % 3.0 14.9 % 88.1 % 72.6 % 588 Total Residential Mortgage Loans, held-for-sale $ 1,044,231 $ 932,480 12,210 5.1 % 3.4 31.2 % 78.3 % 47.6 % 621 Acquired Loans 2,295,340 2,153,269 12,873 4.5 % 8.0 7.7 % 75.7 % 14.0 % 626 Originated Loans 638,173 655,260 2,307 5.2 % 28.5 96.3 % 80.0 % 3.8 % 714 Total Residential Mortgage Loans, held-for-sale, at fair value (K) $ 2,933,513 $ 2,808,529 15,180 4.6 % 12.5 27.0 % 76.6 % 11.8 % 645 (A) The weighted average life is based on the expected timing of the receipt of cash flows. (B) LTV refers to the ratio comparing the loan’s unpaid principal balance to the value of the collateral property. (C) Represents the percentage of the total principal balance that is 60+ days delinquent. (D) The weighted average FICO score is based on the weighted average of information updated and provided by the loan servicer on a monthly basis. (E) Represents a 70% participation interest that New Residential holds in a portfolio of reverse mortgage loans. Mr. Cooper holds the other 30% interest and services the loans. The average loan balance outstanding based on total UPB was $0.6 million and $0.5 million at December 31, 2019 and 2018 , respectively. Approximately 45.6% and 54.9% of these loans have reached a termination event at December 31, 2019 and 2018 , respectively. As a result of the termination event, each such loan has matured and the borrower can no longer make draws on these loans. (F) FICO scores are not used in determining how much a borrower can access via a reverse mortgage loan. (G) Performing loans are generally placed on nonaccrual status when principal or interest is 120 days or more past due. (H) Includes loans with evidence of credit deterioration since origination where it is probable that New Residential will not collect all contractually required principal and interest payments. As of December 31, 2019 , New Residential has placed Non-Performing Loans, held-for-sale on nonaccrual status, except as described in (J) below. (I) Includes $36.0 million and $26.9 million UPB of Ginnie Mae EBO performing and non-performing loans as of December 31, 2019 , respectively, on accrual status as contractual cash flows are guaranteed by the FHA. As of December 31, 2018 , these amounts were $24.3 million and $51.9 million , respectively. (J) Includes $107.7 million and $345.1 million UPB of non-agency mortgage loans underlying the SAFT 2013-1 securitization and MDST Trusts, respectively, which are carried at fair value based on New Residential’s election of the fair value option. Interest earned on loans measured at fair value are reported in other income. (K) New Residential elected the fair value option to measure these loans at fair value on a recurring basis. Interest earned on loans measured at fair value are reported in other income. |
Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans | The table below summarizes the geographic distribution of the underlying residential mortgage loans: Percentage of Total Outstanding Unpaid Principal Amount December 31, State Concentration 2019 2018 California 16.1 % 16.7 % New York 9.0 % 11.7 % Florida 8.4 % 8.8 % Texas 7.1 % 4.7 % Georgia 4.8 % 2.7 % New Jersey 4.2 % 5.3 % Illinois 3.6 % 4.0 % Maryland 3.3 % 3.6 % Massachusetts 3.3 % 3.1 % Pennsylvania 2.9 % 3.1 % Other U.S. 37.3 % 36.3 % 100.0 % 100.0 % |
Past Due Financing Receivables | The following table provides past due information regarding New Residential’s Performing Loans, which is an important indicator of credit quality and the establishment of the allowance for loan losses: December 31, 2019 Days Past Due Delinquency Status (A) Current 86.5 % 30-59 7.0 % 60-89 2.7 % 90-119 (B) 0.7 % 120+ (C) 3.1 % 100.0 % (A) Represents the percentage of the total principal balance that corresponds to loans that are in each delinquency status. (B) Includes loans 90-119 days past due and still accruing interest because they are generally placed on nonaccrual status at 120 days or more past due. (C) Represents nonaccrual loans. The following table provides past due information regarding New Residential’s performing consumer loans, held-for-investment, which is an important indicator of credit quality and the establishment of the allowance for loan losses: December 31, 2019 Days Past Due Delinquency Status (A) Current 95.3 % 30-59 1.8 % 60-89 1.2 % 90-119 (B) 0.7 % 120+ (B) (C) 1.0 % 100.0 % (A) Represents the percentage of the total unpaid principal balance that corresponds to loans that are in each delinquency status. (B) Includes loans more than 90 days past due and still accruing interest. (C) Interest is accrued up to the date of charge-off at 180 days past due. |
Summary of Activities Related to the Carrying Value of Reverse Mortgage Loans and Performing Loans and PCD Loans Held-for-Investment | Activities related to the carrying value of PCD loans held-for-investment were as follows: Balance at December 31, 2017 $ 183,540 Purchases/additional fundings 29,785 Sales — Proceeds from repayments (38,276 ) Accretion of loan discount and other amortization 24,124 (Allowance) reversal for loan losses (A) — Transfer of loans to real estate owned (28,060 ) Transfer of loans to held-for-sale (27,048 ) Balance at December 31, 2018 $ 144,065 Purchases/additional fundings — Sales — Proceeds from repayments (16,855 ) Accretion of loan discount and other amortization 16,041 (Allowance) reversal for loan losses (2,332 ) Transfer of loans to real estate owned (14,487 ) Transfer of loans to held-for-sale (60,154 ) Balance at December 31, 2019 $ 66,278 (A) An allowance represents the present value of cash flows expected at acquisition that are no longer expected to be collected. A reversal results from an increase to expected cash flows that reverses a prior allowance. Activities related to the carrying value of performing residential mortgage loans held-for-investment were as follows: Performing Loans Balance at December 31, 2017 $ 507,615 Shellpoint Acquisition 125,350 Purchases/additional fundings 55,993 Proceeds from repayments (106,236 ) Accretion of loan discount (premium) and other amortization (A) 15,773 Provision for loan losses (1,028 ) Transfer of loans to other assets (B) — Transfer of loans to real estate owned (5,131 ) Transfers of loans to held for sale (1,555 ) Fair value adjustment 472 Balance at December 31, 2018 $ 591,253 Ditech Acquisition (C) 381,039 Purchases/additional fundings — Proceeds from repayments (102,340 ) Accretion of loan discount (premium) and other amortization (A) 12,661 Provision for loan losses (595 ) Transfer of loans to other assets (B) — Transfer of loans to real estate owned (6,223 ) Transfers of loans to held for sale (20,505 ) Fair value adjustment 4,138 Balance at December 31, 2019 $ 859,428 (A) Includes accelerated accretion of discount on loans paid in full and on loans transferred to other assets. (B) Represents loans for which foreclosure has been completed and for which New Residential has made, or intends to make, a claim with the governmental agency that has guaranteed the loans that are now recognized as claims receivable in Other Assets (Note 2). (C) As a result of the Ditech Acquisition, New Residential acquired the servicing on certain residual tranches of Non-Agency RMBS it already owned, and now consolidates the trusts. |
Summary of Activities Related to the Valuation Provision on Reverse Mortgage Loans and Allowance for Loan Losses on Performing Loans Held-for-Investment | Activities related to the valuation and loss provision on reverse mortgage loans and allowance for loan losses on performing loans held-for-investment were as follows: Performing Loans Balance at December 31, 2017 $ 196 Provision for loan losses (A) 1,028 Charge-offs (B) (1,224 ) Balance at December 31, 2018 $ — Provision for loan losses (A) 595 Charge-offs (B) (595 ) Balance at December 31, 2019 $ — (A) Based on an analysis of collective borrower performance, credit ratings of borrowers, loan-to-value ratios, estimated value of the underlying collateral, key terms of the loans and historical and anticipated trends in defaults and loss severities at a pool level. (B) Loans, other than PCD loans, are generally charged off or charged down to the net realizable value of the collateral (i.e., fair value less costs to sell), with an offset to the allowance for loan losses, when available information confirms that loans are uncollectible. Activities related to the allowance for loan losses on performing consumer loans, held-for-investment were as follows: Collectively Evaluated (A) Individually Impaired (B) Total Balance at December 31, 2017 $ 4,429 $ 1,676 $ 6,105 Provision (reversal) for loan losses 47,839 388 48,227 Net charge-offs (C) (49,664 ) — (49,664 ) Balance at December 31, 2018 $ 2,604 $ 2,064 $ 4,668 Provision (reversal) for loan losses 30,008 846 30,854 Net charge-offs (C) (32,057 ) — (32,057 ) Balance at December 31, 2019 $ 555 $ 2,910 $ 3,465 (A) Represents smaller-balance homogeneous loans that are not individually considered impaired and are evaluated based on an analysis of collective borrower performance, key terms of the loans and historical and anticipated trends in defaults and loss severities, and consideration of the unamortized acquisition discount. (B) Represents consumer loan modifications considered to be troubled debt restructurings (“TDRs”) as they provide concessions to borrowers, primarily in the form of interest rate reductions, who are experiencing financial difficulty. As of December 31, 2019 , there are $18.0 million in UPB and $15.9 million in carrying value of consumer loans classified as TDRs. (C) Consumer loans, other than PCD loans, are charged off when available information confirms that loans are uncollectible, which is generally when they become 180 days past due. Charge-offs are presented net of $8.6 million and $9.0 million in recoveries of previously charged-off UPB in 2019 and 2018 , respectively. |
Summary of Changes in Accretable Yield | The following is a summary of the changes in accretable yield for these loans: Balance at December 31, 2017 $ 88,631 Additions 15,644 Accretion (24,124 ) Reclassifications from non-accretable difference (A) 5,493 Disposals (B) (7,257 ) Transfer of loans to held-for-sale (C) (9,755 ) Balance at December 31, 2018 $ 68,632 Additions — Accretion (16,041 ) Reclassifications from (to) non-accretable difference (A) 9,361 Disposals (B) (11,515 ) Transfer of loans to held-for-sale (C) (13,415 ) Balance at December 31, 2019 $ 37,022 (A) Represents a probable and significant increase (decrease) in cash flows previously expected to be uncollectible. (B) Includes sales of loans or foreclosures, which result in removal of the loan from the PCD loan pool at its carrying amount. (C) Represents loans not initially acquired with the intent to sell for which New Residential determined that it no longer has the intent to hold for the foreseeable future, or until maturity or payoff. |
Summary of Activities Related to the Carrying Value of Loans Held-for-sale | Activities related to the carrying value of loans held-for-sale, at lower of cost or fair value were as follows: Balance at December 31, 2017 $ 1,725,534 Purchases (A) 3,653,608 Transfer of loans from held-for-investment (B) 28,603 Sales (4,205,375 ) Transfer of loans to other assets (C) (9,811 ) Transfer of loans to real estate owned (54,114 ) Proceeds from repayments (195,797 ) Valuation (provision) reversal on loans (D) (10,168 ) Balance at December 31, 2018 $ 932,480 Purchases (A) 1,124,099 Ditech Acquisition 9,136 Transfer of loans from held-for-investment (B) 80,659 Sales (495,925 ) Transfer of loans to other assets (C) (10,154 ) Transfer of loans to real estate owned (49,459 ) Proceeds from repayments (184,683 ) Valuation (provision) reversal on loans (D) 22,899 Balance at December 31, 2019 $ 1,429,052 (A) Represents loans acquired with the intent to sell. (B) Represents loans not initially acquired with the intent to sell for which New Residential determined that it no longer has the intent to hold for the foreseeable future, or until maturity or payoff. (C) Represents loans for which foreclosure has been completed and for which New Residential has made, or intends to make, a claim with the governmental agency that has guaranteed the loans that are now recognized as claims receivable in Other Assets (Note 2). (D) Represents the fair value adjustments to loans upon transfer to held-for-sale and provision recorded on certain purchased held-for-sale loans, including an aggregate of $5.2 million and $59.2 million of provision related to the call transactions executed during the years ended December 31, 2019 and 2018 , respectively. |
Schedule of Loans Held For Sale, Fair Value | Activities related to the carrying value of originated loans held-for-sale, at fair value were as follows: Balance at December 31, 2018 $ 655,260 Originations 19,512,072 Ditech Acquisition 618,297 Sales (19,176,028 ) Proceeds from repayments (48,626 ) Transfer of loans to other assets (412 ) Change in fair value 28,761 Balance at December 31, 2019 $ 1,589,324 Activities related to the carrying value of acquired loans held-for-sale, at fair value were as follows: Balance at December 31, 2018 $ 2,153,269 Purchases (A) 7,499,614 Sales (6,362,077 ) Proceeds from repayments (187,311 ) Transfer of loans to real estate owned (4,155 ) Accretion of loan discount and other amortization — Change in fair value (75,052 ) Balance at December 31, 2019 $ 3,024,288 (A) Includes an acquisition date fair value adjustment increase of $13.3 million on loans acquired through call transactions executed during the twelve months ending December 31, 2019 . |
Schedule of Net Interest Income | Interest income recognized by New Residential related to its Servicer Advance Investments was comprised of the following: Year Ended December 31, 2019 2018 2017 Interest income, gross of amounts attributable to servicer compensation $ 51,940 $ 83,807 $ 871,506 Amounts attributable to base servicer compensation (6,209 ) (8,491 ) (227,585 ) Amounts attributable to incentive servicer compensation (18,065 ) (25,098 ) (115,565 ) Interest income from Servicer Advance Investments $ 27,666 $ 50,218 $ 528,356 Net Interest Income December 31, 2019 2018 Interest Income: Acquired Residential Mortgage Loans, held-for-investment $ 60,301 $ 76,129 Acquired Residential Mortgage Loans, held-for-sale 65,926 45,653 Acquired Residential Mortgage Loans, held-for-sale, at fair value 123,446 35,904 Originated Residential Mortgage Loans, held-for-sale, at fair value 52,480 15,658 Total Interest Income on Residential Mortgage Loans 302,153 173,344 Interest Expense: Acquired Residential Mortgage Loans, held-for-investment 19,381 23,618 Acquired Residential Mortgage Loans, held-for-sale 40,067 35,796 Acquired Residential Mortgage Loans, held-for-sale, at fair value 98,850 21,496 Originated Residential Mortgage Loans, held-for-sale,at fair value 10,873 2,690 Total Interest Expense on Residential Mortgage Loans 169,171 83,600 Total Net Interest Income on Residential Mortgage Loans $ 132,982 $ 89,744 |
Schedule of Originated Mortgage Loans | is summarized below: Year Ended December 31, 2019 2018 (A) Gain on loans originated and sold, net (B) $ 53,554 $ 47,172 Gain (loss) on settlement of mortgage loan origination derivative instruments (C) (53,374 ) 1,234 MSRs retained on transfer of loans (D) 374,450 35,311 Other (E) 42,912 14,057 Realized gain on sale of originated mortgage loans, net $ 417,542 $ 97,774 Change in fair value of loans 28,761 3,695 Change in fair value of interest rate lock commitments (Note 11) 26,151 23 Change in fair value of derivative instruments (Note 11) 3,001 (5,347 ) Gain on originated mortgage loans, held-for-sale, net $ 475,455 $ 96,145 (A) Includes results from July 3, 2018, the date of acquisition. (B) Includes loan origination fees of $421.3 million and $21.8 million in the years ended December 31, 2019 and December 31, 2018 , respectively. (C) Represents settlement of forward securities delivery commitments utilized as an economic hedge for mortgage loans not included within forward loan sale commitments. (D) Represents the initial fair value of the capitalized mortgage servicing rights upon loan sales with servicing retained. (E) Includes fees for services associated with the loan origination process. |
Schedule of Real Estate Owned | New Residential recognizes REO assets at the completion of the foreclosure process or upon execution of a deed in lieu of foreclosure with the borrower. REO assets are managed for prompt sale and disposition at the best possible economic value. Real Estate Owned Balance at December 31, 2017 $ 128,295 Purchases 33,377 Transfer of loans to real estate owned 107,577 Sales (A) (152,725 ) Valuation provision on REO (3,114 ) Balance at December 31, 2018 $ 113,410 Purchases 68,024 Transfer of loans to real estate owned 86,167 Sales (A) (150,431 ) Valuation (provision) reversal on REO 635 Balance at December 31, 2019 $ 117,805 (A) Recognized when control of the property has transferred to the buyer. |
INVESTMENTS IN CONSUMER LOANS (
INVESTMENTS IN CONSUMER LOANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments in Consumer Loan Equity Method Investees | The following table summarizes the investment in consumer loans, held-for-investment held by New Residential: Unpaid Principal Balance Interest in Consumer Loans Carrying Value Weighted Average Coupon Weighted Average Expected Life (Years) (A) Weighted Average Delinquency (B) December 31, 2019 Consumer Loan Companies Performing Loans $ 644,676 53.5 % $ 682,310 18.8 % 4.0 4.7 % Purchased Credit Deteriorated Loans (C) 170,083 53.5 % 136,633 15.5 % 3.7 10.1 % Other - Performing Loans 9,158 100.0 % 8,602 15.1 % 0.7 6.1 % Total Consumer Loans, held-for-investment $ 823,917 $ 827,545 18.0 % 3.9 5.9 % December 31, 2018 Consumer Loan Companies Performing Loans $ 815,341 53.5 % $ 856,563 18.8 % 3.6 5.4 % Purchased Credit Deteriorated Loans (C) 221,910 53.5 % 182,917 16.0 % 3.4 11.6 % Other - Performing Loans 35,326 100.0 % 32,722 14.2 % 0.8 5.6 % Total Consumer Loans, held-for-investment $ 1,072,577 $ 1,072,202 18.1 % 3.5 6.7 % (A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) Represents the percentage of the total unpaid principal balance that is 30 + days delinquent. Delinquency status is the primary credit quality indicator as it provides early warning of borrowers who may be experiencing financial difficulties. (C) Includes loans with evidence of credit deterioration since origination where it is probable that New Residential will not collect all contractually required principal and interest payments, which are accounted for as PCD loans. |
Past Due Financing Receivables | The following table provides past due information regarding New Residential’s Performing Loans, which is an important indicator of credit quality and the establishment of the allowance for loan losses: December 31, 2019 Days Past Due Delinquency Status (A) Current 86.5 % 30-59 7.0 % 60-89 2.7 % 90-119 (B) 0.7 % 120+ (C) 3.1 % 100.0 % (A) Represents the percentage of the total principal balance that corresponds to loans that are in each delinquency status. (B) Includes loans 90-119 days past due and still accruing interest because they are generally placed on nonaccrual status at 120 days or more past due. (C) Represents nonaccrual loans. The following table provides past due information regarding New Residential’s performing consumer loans, held-for-investment, which is an important indicator of credit quality and the establishment of the allowance for loan losses: December 31, 2019 Days Past Due Delinquency Status (A) Current 95.3 % 30-59 1.8 % 60-89 1.2 % 90-119 (B) 0.7 % 120+ (B) (C) 1.0 % 100.0 % (A) Represents the percentage of the total unpaid principal balance that corresponds to loans that are in each delinquency status. (B) Includes loans more than 90 days past due and still accruing interest. (C) Interest is accrued up to the date of charge-off at 180 days past due. |
Schedule of Carrying Value of Performing Consumer Loans | Activities related to the carrying value of performing consumer loans, held-for-investment were as follows: Performing Loans Balance at December 31, 2017 $ 1,137,814 Purchases — Additional fundings (A) 63,971 Proceeds from repayments (257,182 ) Accretion of loan discount and premium amortization, net 1,940 Gross charge-offs (56,870 ) Additions to the allowance for loan losses, net (388 ) Balance at December 31, 2018 $ 889,285 Purchases — Additional fundings (A) 54,375 Proceeds from repayments (213,525 ) Accretion of loan discount and premium amortization, net 186 Gross charge-offs (38,563 ) Additions to the allowance for loan losses, net (846 ) Balance at December 31, 2019 $ 690,912 (A) Represents draws on consumer loans with revolving privileges. |
Allowance for Credit Losses on Financing Receivables | Activities related to the valuation and loss provision on reverse mortgage loans and allowance for loan losses on performing loans held-for-investment were as follows: Performing Loans Balance at December 31, 2017 $ 196 Provision for loan losses (A) 1,028 Charge-offs (B) (1,224 ) Balance at December 31, 2018 $ — Provision for loan losses (A) 595 Charge-offs (B) (595 ) Balance at December 31, 2019 $ — (A) Based on an analysis of collective borrower performance, credit ratings of borrowers, loan-to-value ratios, estimated value of the underlying collateral, key terms of the loans and historical and anticipated trends in defaults and loss severities at a pool level. (B) Loans, other than PCD loans, are generally charged off or charged down to the net realizable value of the collateral (i.e., fair value less costs to sell), with an offset to the allowance for loan losses, when available information confirms that loans are uncollectible. Activities related to the allowance for loan losses on performing consumer loans, held-for-investment were as follows: Collectively Evaluated (A) Individually Impaired (B) Total Balance at December 31, 2017 $ 4,429 $ 1,676 $ 6,105 Provision (reversal) for loan losses 47,839 388 48,227 Net charge-offs (C) (49,664 ) — (49,664 ) Balance at December 31, 2018 $ 2,604 $ 2,064 $ 4,668 Provision (reversal) for loan losses 30,008 846 30,854 Net charge-offs (C) (32,057 ) — (32,057 ) Balance at December 31, 2019 $ 555 $ 2,910 $ 3,465 (A) Represents smaller-balance homogeneous loans that are not individually considered impaired and are evaluated based on an analysis of collective borrower performance, key terms of the loans and historical and anticipated trends in defaults and loss severities, and consideration of the unamortized acquisition discount. (B) Represents consumer loan modifications considered to be troubled debt restructurings (“TDRs”) as they provide concessions to borrowers, primarily in the form of interest rate reductions, who are experiencing financial difficulty. As of December 31, 2019 , there are $18.0 million in UPB and $15.9 million in carrying value of consumer loans classified as TDRs. (C) Consumer loans, other than PCD loans, are charged off when available information confirms that loans are uncollectible, which is generally when they become 180 days past due. Charge-offs are presented net of $8.6 million and $9.0 million in recoveries of previously charged-off UPB in 2019 and 2018 , respectively. |
Schedule of Carrying Value of Purchased Credit Deteriorated Loans | A portion of the consumer loans are considered PCD loans. Activities related to the carrying value of PCD consumer loans, held-for-investment were as follows: Balance at December 31, 2017 $ 236,449 (Allowance) reversal for loan losses (A) (31 ) Proceeds from repayments (90,700 ) Accretion of loan discount and other amortization 37,199 Balance at December 31, 2018 $ 182,917 (Allowance) reversal for loan losses (A) 31 Proceeds from repayments (78,519 ) Accretion of loan discount and other amortization 32,204 Balance at December 31, 2019 $ 136,633 (A) An allowance represents the present value of cash flows expected at acquisition that are no longer expected to be collected. A reversal results from an increase to expected cash flows that reverses a prior allowance. |
Impaired Financing Receivables | The following is the unpaid principal balance and carrying value for consumer loans, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments: Unpaid Principal Balance Carrying Value December 31, 2019 $ 170,083 $ 136,633 December 31, 2018 221,910 182,917 |
Schedule of Changes in Accretable Yield | The following is a summary of the changes in accretable yield for these loans: Balance at December 31, 2017 $ 132,291 Accretion (37,199 ) Reclassifications from (to) non-accretable difference (A) 31,426 Balance at December 31, 2018 $ 126,518 Accretion (32,204 ) Reclassifications from (to) non-accretable difference (A) 10,949 Balance at December 31, 2019 $ 105,263 (A) Represents a probable and significant increase (decrease) in cash flows previously expected to be uncollectible. |
Summary of the Investment in the Consumer Loan Companies | The following tables summarize the investment in LoanCo and WarrantCo held by New Residential: December 31, 2019 December 31, 2018 (A) Consumer loans, at fair value $ — $ 231,560 Warrants, at fair value — 103,067 Other assets — 25,971 Warehouse financing — (182,065 ) Other liabilities — (1,142 ) Equity $ — $ 177,391 Undistributed retained earnings $ — $ — New Residential’s investment $ — $ 42,875 New Residential’s ownership 24.3 % 24.2 % Year Ended December 31, 2019 2018 (A) Interest income $ 19,912 $ 42,920 Interest expense (6,487 ) (12,258 ) Change in fair value of consumer loans and warrants (4,596 ) 17,491 Gain on sale of consumer loans (B) (10,711 ) 2,697 Other expenses (3,871 ) (7,257 ) Net income $ (5,753 ) $ 43,593 New Residential’s equity in net income $ (1,438 ) $ 10,803 New Residential’s ownership 25.0 % 24.8 % (A) Data as of, and for the periods ended, November 30, 2018, as a result of the one month reporting lag. (B) During the year ended December 31, 2019 , LoanCo sold, through securitizations which were treated as sales for accounting purposes, $406.1 million in UPB of consumer loans. LoanCo retained $83.9 million of residual interest in the securitizations and distributed them to the LoanCo co-investors, including New Residential. New Residential’s investment in LoanCo and WarrantCo changed as follows: Balance at December 31, 2018 $ 38,294 Contributions to equity method investees 64,499 Distributions of earnings from equity method investees (8,607 ) Distributions of capital from equity method investees (92,748 ) Earnings from investments in consumer loans, equity method investees (1,438 ) Balance at December 31, 2019 $ — |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives | New Residential’s derivatives are recorded at fair value on the Consolidated Balance Sheets as follows: December 31, Balance Sheet Location 2019 2018 Derivative assets Interest Rate Caps Other assets $ — $ 3 Interest Rate Swaps Other assets 155 — Interest Rate Lock Commitments Other assets 41,346 10,851 Forward Loan Sale Commitments Other assets — 39 TBAs Other assets — — $ 41,501 $ 10,893 Derivative liabilities Interest Rate Swaps (A) Accrued expenses and other liabilities $ — $ 5,245 Interest Rate Lock Commitments Accrued expenses and other liabilities 1,455 223 Forward Loan Sale Commitments Accrued expenses and other liabilities 27 — TBAs Accrued expenses and other liabilities 5,403 23,921 $ 6,885 $ 29,389 (A) Net of $171.8 million and $106.1 million of related variation margin accounts as of December 31, 2019 and December 31, 2018 , respectively. The following table summarizes notional amounts related to derivatives: December 31, 2019 2018 Interest Rate Caps (A) $ 12,500 $ 50,000 Interest Rate Swaps (B) 4,900,000 4,725,000 Interest Rate Lock Commitments 4,043,935 823,187 Forward Loan Sale Commitments 43,654 30,274 TBAs, short position (C) 5,048,000 5,904,300 TBAs, long position (C) 11,692,212 — 5,067,200 (A) As of December 31, 2019 , caps LIBOR at 4.00% for $12.5 million of notional. The weighted average maturity of the interest rate caps as of December 31, 2019 was 11 months. (B) Includes $4.0 billion notional of Receive LIBOR/Pay Fixed of 3.2% and $0.9 billion notional of Receive Fixed of 1.9% /Pay LIBOR with weighted average maturities of 36 months and 87 months, respectively, as of December 31, 2019 . Includes $4.7 billion notional of Receive LIBOR/Pay Fixed of 3.21% with weighted average maturities of 52 months, as of December 31, 2018 . (C) Represents the notional amount of Agency RMBS, classified as derivatives. The following table summarizes all income (losses) recorded in relation to derivatives: Year Ended December 31, 2019 2018 2017 Change in fair value of derivative investments (A) Interest Rate Caps $ (3 ) $ 431 $ 323 Interest Rate Swaps (58,918 ) (108,098 ) (720 ) Unrealized gains(losses) on Interest Rate Lock Commitments — — — Forward Loan Sale Commitments — — — TBAs 2,778 (567 ) (1,793 ) (56,143 ) (108,234 ) (2,190 ) Gain (loss) on settlement of investments, net Interest Rate Caps $ — $ (603 ) $ (1,911 ) Interest Rate Swaps (8,671 ) 65,823 6,921 TBAs (B) (121,252 ) (10,353 ) (44,224 ) (129,923 ) 54,867 (39,214 ) Gain on originated mortgage loans, held for sale, net (A) Interest Rate Lock Commitments $ 26,151 $ 23 $ — TBAs 3,067 (5,064 ) — Forward Loan Sale Commitments (66 ) (283 ) — 29,152 (5,324 ) — Total income (losses) $ (156,914 ) $ (58,691 ) $ (41,404 ) (A) Represents unrealized gains (losses). (B) Excludes $53.4 million and $1.2 million in loss on settlement included within gain on originated mortgage loans, held-for-sale, net (Note 9) for the years ended December 31, 2019 and 2018 , respectively. |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | Activities related to the carrying value of New Residential’s debt obligations were as follows: Excess MSRs MSRs Servicer Advances (A) Real Estate Securities Residential Mortgage Loans and REO Consumer Loans Total Balance at December 31, 2017 $ 483,978 $ 1,157,179 $ 4,060,156 $ 6,694,454 $ 2,108,007 $ 1,242,756 $ 15,746,530 Repurchase Agreements: Shellpoint Acquisition — — — 1,957 437,675 — 439,632 Borrowings — — — 90,996,778 8,665,900 — 99,662,678 Repayments — — — (85,912,169 ) (7,298,734 ) — (93,210,903 ) Capitalized deferred financing costs, net of amortization — — — (165 ) 589 — 424 Notes and Bonds Payable: Shellpoint Acquisition — 20,731 — — 120,702 — 141,433 Borrowings 350,787 4,212,855 5,207,084 — 183 — 9,770,909 Repayments (537,227 ) (3,022,785 ) (5,887,384 ) — (136,947 ) (308,316 ) (9,892,659 ) Discount on borrowings, net of amortization — — 41 — — 1,633 1,674 Unrealized loss on notes, fair value — — — — 684 — 684 Capitalized deferred financing costs, net of amortization 25 (7,124 ) 2,558 — — 374 (4,167 ) Balance at December 31, 2018 $ 297,563 $ 2,360,856 $ 3,382,455 $ 11,780,855 $ 3,898,059 $ 936,447 $ 22,656,235 Repurchase Agreements: Borrowings — — — 207,138,969 36,177,659 — 243,316,628 Repayments — — — (196,120,793 ) (34,833,314 ) — (230,954,107 ) Capitalized deferred financing costs, net of amortization — — — 165 (429 ) — (264 ) Notes and Bonds Payable: Ditech Acquisition (B) — — — — 209,459 — 209,459 Borrowings 456,741 2,456,410 4,952,585 — 912,445 928,683 9,706,864 Repayments (537,200 ) (2,178,755 ) (5,149,327 ) — (383,635 ) (1,054,610 ) (9,303,527 ) Discount on borrowings, net of amortization — — 102 — — 6,169 6,271 Unrealized loss on notes, fair value — — — — 1,236 — 1,236 Capitalized deferred financing costs, net of amortization 196 1,525 (4,143 ) — — — (2,422 ) Balance at December 31, 2019 $ 217,300 $ 2,640,036 $ 3,181,672 $ 22,799,196 $ 5,981,480 $ 816,689 $ 35,636,373 (A) New Residential net settles daily borrowings and repayments of the Notes and Bonds Payable on its servicer advances. (B) As a result of the Ditech Acquisition, New Residential acquired the servicing on certain residual tranches of Non-Agency RMBS it already owned, and now consolidates the respective securities. See Note 9 for the associated loans. The following table presents certain information regarding New Residential’s debt obligations: December 31, 2019 December 31, 2018 Collateral Debt Obligations/Collateral Outstanding Face Amount Carrying Value (A) Final Stated Maturity (B) Weighted Average Funding Cost Weighted Average Life (Years) Outstanding Face Amortized Cost Basis Carrying Value Weighted Average Life (Years) Carrying Value (A) Repurchase Agreements (C) Agency RMBS (D) $ 15,481,677 $ 15,481,677 Jan-20 to May-20 1.99 % 0.1 $ 15,499,156 $ 15,810,728 $ 15,862,218 4.0 $ 4,346,070 Non-Agency RMBS (E) 7,317,519 7,317,519 Jan-20 to Sep-20 2.76 % 0.1 25,220,620 8,014,409 8,661,349 7.0 7,434,785 Residential Mortgage Loans (F) 5,054,667 5,053,207 Feb-20 to May-21 3.48 % 0.6 5,778,009 5,847,650 5,577,297 15.4 3,678,246 Real Estate Owned (G) (H) 63,846 63,822 Feb-20 to May-21 3.53 % 0.7 N/A N/A 77,556 N/A 94,868 Total Repurchase Agreements 27,917,709 27,916,225 2.47 % 0.2 15,553,969 Notes and Bonds Payable Excess MSRs (I) 217,300 217,300 Feb-20 to Jul-22 4.45 % 2.6 97,846,949 306,803 394,644 5.9 297,563 MSRs (J) 2,646,540 2,640,036 Mar-20 to Jul-24 4.16 % 1.6 394,098,370 3,998,060 4,446,855 5.7 2,360,856 Servicer Advances (K) 3,189,486 3,181,672 Jan-20 to Aug-23 2.90 % 2.1 3,587,593 3,858,818 3,883,151 1.4 3,382,455 Residential Mortgage Loans (L) 866,001 864,451 Apr-20 to Dec-45 4.63 % 8.3 1,183,625 1,199,326 1,171,201 7.1 124,945 Consumer Loans (M) 813,808 816,689 Dec-21 to May-36 3.25 % 3.9 823,806 830,900 827,434 3.9 936,447 Total Notes and Bonds Payable 7,733,135 7,720,148 3.60 % 2.8 7,102,266 Total/Weighted Average $ 35,650,844 $ 35,636,373 2.71 % 0.8 $ 22,656,235 (A) Net of deferred financing costs. (B) All debt obligations with a stated maturity through the date of issuance were refinanced, extended or repaid. (C) These repurchase agreements had approximately $84.1 million of associated accrued interest payable as of December 31, 2019 . (D) All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include approximately $5.3 billion of related trade and other receivables. (E) $6,788.4 million face amount of the Non-Agency RMBS repurchase agreements have LIBOR-based floating interest rates while the remaining $529.1 million face amount of the Non-Agency RMBS repurchase agreements have a fixed rate. This also includes repurchase agreements and related collateral of $7.5 million and $10.0 million , respectively, on retained consumer loan bonds and of $638.6 million and $744.4 million , respectively, on retained bonds collateralized by Agency MSRs. (F) All of these repurchase agreements have LIBOR-based floating interest rates. (G) All of these repurchase agreements have LIBOR-based floating interest rates. (H) Includes financing collateralized by receivables including claims from FHA on Ginnie Mae EBO loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee. (I) Includes $217.3 million of corporate loans which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 2.75% . The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the interests in MSRs that secure these notes. (J) Includes: $1,250.0 million of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin ranging from 2.25% to 2.75% ; $59.5 million of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 2.50% ; and $1,337.1 million of public notes with fixed interest rates ranging from 3.55% to 4.62% . The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the MSRs and MSR financing receivables that secure these notes. (K) $1.9 billion face amount of the notes have a fixed rate while the remaining notes bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 1.0% to 2.0% . Collateral includes Servicer Advance Investments, as well as servicer advances receivable related to the mortgage servicing rights and MSR financing receivables owned by NRM. (L) Represents: (i) a $5.6 million note payable to Mr. Cooper which includes a $2.1 million receivable from government agency and bears interest equal to one-month LIBOR plus 2.88% , (ii) $105.3 million of SAFT 2013-1 mortgage-backed securities issued with fixed interest rates ranging from 3.50% to 3.76% (see Note 13 for fair value details), (iii) $353.5 million of 2019-RPL1 asset-backed notes held by third parties which include $0.3 million of REO and bear interest equal to 4.59% (see Note 13 for fair value details), (iv) $202.5 million of MDST Trusts asset-backed notes held by third parties which bear interest equal to 6.58% (see Note 13 for fair value details), and (v) $199.1 million of asset-backed notes held by third parties which include $1.5 million of REO and bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 1.25% . (M) Includes the SpringCastle debt, which is comprised of the following classes of asset-backed notes held by third parties: $734.7 million UPB of Class A notes with a coupon of 3.20% and a stated maturity date in May 2036; $70.4 million UPB of Class B notes with a coupon of 3.58% and a stated maturity date in May 2036; and $8.7 million UPB of Class C notes with a coupon of 5.06% |
Schedule of Contractual Maturities of Debt Obligations | New Residential’s debt obligations as of December 31, 2019 had contractual maturities as follows: Year Nonrecourse Recourse Total 2020 $ 527,231 $ 29,183,656 $ 29,710,887 2021 1,030,932 752,496 1,783,428 2022 1,646,318 217,300 1,863,618 2023 400,000 382,215 782,215 2024 — 389,177 389,177 2025 and thereafter 1,121,519 — 1,121,519 $ 4,726,000 $ 30,924,844 $ 35,650,844 |
Schedule of Borrowing Capacity | The following table represents New Residential’s borrowing capacity as of December 31, 2019 : Debt Obligations/ Collateral Borrowing Capacity Balance Outstanding Available Financing Repurchase Agreements Residential mortgage loans and REO $ 6,296,106 $ 3,685,133 $ 2,610,973 New Loan Originations 4,433,000 1,433,380 2,999,620 Non-Agency RMBS 650,000 529,096 120,904 Notes and Bonds Payable Excess MSRs 150,000 — 150,000 MSRs 1,575,000 1,309,484 265,516 Servicer advances (A) 1,645,000 1,289,521 355,479 Residential Mortgage Loans 650,000 199,132 450,868 Consumer loans 150,000 — 150,000 $ 15,549,106 $ 8,445,746 $ 7,103,360 (A) New Residential’s unused borrowing capacity is available if New Residential has additional eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements, including any applicable advance rate. New Residential pays a 0.02% fee on the unused borrowing capacity. |
FAIR VALUE MEASURMENT (Tables)
FAIR VALUE MEASURMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Fair Values of Financial Assets and Liabilities Recorded at Fair Value on a Recurring Basis | The carrying values and fair values of New Residential’s assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of December 31, 2019 were as follows: Fair Value Principal Balance or Notional Amount Carrying Value Level 1 Level 2 Level 3 Total Assets: Investments in: Excess mortgage servicing rights, at fair value (A) $ 88,345,237 $ 379,747 $ — $ — $ 379,747 $ 379,747 Excess mortgage servicing rights, equity method investees, at fair value (A) 33,592,554 125,596 — — 125,596 125,596 Mortgage servicing rights, at fair value (A) 373,850,061 3,967,960 — — 3,967,960 3,967,960 Mortgage servicing rights financing receivables, at fair value (A) 130,984,870 1,718,273 — — 1,718,273 1,718,273 Servicer advance investments, at fair value 462,843 581,777 — — 581,777 581,777 Real estate and other securities, available-for-sale 36,159,591 19,477,728 — 11,519,943 7,957,785 19,477,728 Residential mortgage loans, held-for-investment 502,352 441,263 — — 435,234 435,234 Residential mortgage loans, held-for-sale 1,531,505 1,429,052 — — 1,438,302 1,438,302 Residential mortgage loans, held-for-sale, at fair value (B) 4,675,806 4,613,612 — 1,099,230 3,514,382 4,613,612 Residential mortgage loans, held-for-investment, at fair value (C) 452,771 484,443 — — 484,443 484,443 Residential mortgage loans subject to repurchase 172,336 172,336 — 172,336 — 172,336 Consumer loans, held-for-investment 823,917 827,545 — — 849,739 849,739 Derivative assets 8,360,894 41,501 — 155 41,346 41,501 Cash and cash equivalents 528,737 528,737 528,737 — — 528,737 Restricted cash 162,197 162,197 162,197 — — 162,197 Other assets (D) N/A 60,654 7,952 — 52,703 60,655 $ 35,012,421 $ 698,886 $ 12,791,664 $ 21,547,287 $ 35,037,837 Liabilities: Repurchase agreements $ 27,917,709 $ 27,916,225 $ — $ 27,917,709 $ — $ 27,917,709 Notes and bonds payable (E) 7,733,135 7,720,148 — — 7,779,060 7,779,060 Residential mortgage loan repurchase liability 172,336 172,336 — 172,336 — 172,336 Derivative liabilities 17,379,407 6,885 — 5,430 1,455 6,885 Excess spread financing 2,962,629 31,777 — — 31,777 31,777 Contingent consideration N/A 55,222 — — 55,222 55,222 $ 35,902,593 $ — $ 28,095,475 $ 7,867,514 $ 35,962,989 (A) The notional amount represents the total unpaid principal balance of the residential mortgage loans underlying the MSRs, MSR financing receivables, and Excess MSRs. New Residential does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios. (B) Includes $267.7 million in fair value of loans that are 90 days or more past due. (C) Includes $21.6 million in fair value of loans that are 90 days or more past due. (D) Excludes the indirect equity investment in a commercial redevelopment project that is accounted for at fair value on a recurring basis based on the NAV of New Residential’s investment. The investment had a fair value of $74.0 million as of December 31, 2019 . (E) Includes the MDST Trusts, SAFT 2013-1 mortgage-backed securities and the 2019-RPL1 asset-backed notes issued for which the fair value option for financial instruments was elected and resulted in a fair value of $659.7 million as of December 31, 2019 . The carrying values and fair values of New Residential’s assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of December 31, 2018 were as follows: Fair Value Principal Balance or Notional Amount Carrying Value Level 1 Level 2 Level 3 Total Assets Investments in: Excess mortgage servicing rights, at fair value (A) $ 106,426,363 $ 447,860 $ — $ — $ 447,860 $ 447,860 Excess mortgage servicing rights, equity method investees, at fair value (A) 41,707,963 147,964 — — 147,964 147,964 Mortgage servicing rights, at fair value (A) 258,462,703 2,884,100 — — 2,884,100 2,884,100 Mortgage servicing rights financing receivables, at fair value (A) 130,516,565 1,644,504 — — 1,644,504 1,644,504 Servicer advance investments, at fair value 620,050 735,846 — — 735,846 735,846 Real estate and other securities, available-for-sale 22,152,845 11,636,581 — 2,665,618 8,970,963 11,636,581 Residential mortgage loans, held-for-investment 706,111 614,241 — — 625,321 625,321 Residential mortgage loans, held-for-sale 1,043,550 932,480 — — 958,970 958,970 Residential mortgage loans, held-for-sale, at fair value (B) 2,934,727 2,808,529 — 213,882 2,594,647 2,808,529 Residential mortgage loans, held-for-investment, at fair value (C) 122,260 121,088 — — 121,088 121,088 Residential mortgage loans subject to repurchase 121,602 121,602 — 121,602 — 121,602 Consumer loans, held-for-investment 1,072,577 1,072,202 — — 1,054,820 1,054,820 Derivative assets 840,179 10,893 — 42 10,851 10,893 Cash and cash equivalents 251,058 251,058 251,058 — — 251,058 Restricted cash 164,020 164,020 164,020 — — 164,020 Other assets (D) N/A 16,991 7,778 — 9,213 16,991 $ 23,609,959 $ 422,856 $ 3,001,144 $ 20,206,147 $ 23,630,147 Liabilities: Repurchase agreements $ 15,555,156 $ 15,553,969 $ — $ 15,555,156 $ — $ 15,555,156 Notes and bonds payable 7,117,909 7,102,266 — — 7,076,400 7,076,400 Residential mortgage loans repurchase liability 121,602 121,602 — 121,602 — 121,602 Derivative liabilities 15,759,782 29,389 — 29,166 223 29,389 Excess spread financing 3,492,587 39,304 — — 39,304 39,304 Contingent consideration N/A 40,842 — — 40,842 40,842 $ 22,887,372 $ — $ 15,705,924 $ 7,156,769 $ 22,862,693 (A) The notional amount represents the total unpaid principal balance of the residential mortgage loans underlying the MSRs, MSR financing receivables, and Excess MSRs. New Residential does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios. (B) Includes $88.7 million in fair value of loans that are 90 days or more past due. (C) Includes $0.4 million in fair value of loans that are 90 days or more past due. (D) Excludes the indirect equity investment in a commercial redevelopment project that is accounted for at fair value on a recurring basis based on the NAV of New Residential’s investment. The investment had a fair value of $74.3 million as of December 31, 2018 . |
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis using Level 3 Inputs | New Residential’s assets measured at fair value on a recurring basis using Level 3 inputs changed as follows: Level 3 Excess MSRs (A) Excess MSRs in Equity Method Investees (A)(B) Agency Non-Agency MSRs (A) Mortgage Servicing Rights Financing Receivables (A) Servicer Advance Investments Non-Agency RMBS Derivatives (C) Residential Mortgage Loans Total Balance at December 31, 2017 $ 324,636 $ 849,077 $ 171,765 $ 1,735,504 $ 598,728 $ 4,027,379 $ 5,974,789 $ — $ — $ 13,681,878 Transfers (D) Transfers from Level 3 — — — — — — — — — — Transfers to Level 3 — — — — — — — — — — Shellpoint Acquisition — — — 275,964 (124,652 ) — — 10,604 179,644 341,560 Gains (losses) included in net income Included in other-than-temporary impairment on securities (E) — — — — — — (24,940 ) — — (24,940 ) Included in change in fair value of investments in excess mortgage servicing rights (E) (18,099 ) (40,557 ) — — — — — — — (58,656 ) Included in change in fair value of investments in excess mortgage servicing rights, equity method investees (E) — — 8,357 — — — — — — 8,357 Included in servicing revenue, net (F) — — — (199,836 ) — — — — — (199,836 ) Included in change in fair value of investments in mortgage servicing rights financing receivable (E) — — — — 31,550 — — — — 31,550 Included in change in fair value of servicer advance investments — — — — — (89,332 ) — — — (89,332 ) Included in change in fair value of investments in residential mortgage loans — — — — — — — — 46,065 46,065 Included in gain (loss) on settlement of investments, net — 40,417 — — — 72,585 (1,288 ) — — 111,714 Included in other income (loss), net (E) 6,137 307 — — — — 10,283 24 (175 ) 16,576 Gains (losses) included in other comprehensive income (G) — — — — — — 31,031 — — 31,031 Interest income 21,936 22,504 — — — 50,218 377,018 — — 471,676 Purchases, sales and repayments Purchases — — — 1,042,933 128,357 2,332,989 3,854,439 — 2,107,204 9,465,922 Proceeds from sales (19,084 ) — — (5,776 ) (7,472 ) — (86,448 ) — — (118,780 ) Proceeds from repayments (58,139 ) (69,654 ) (32,158 ) — — (2,455,155 ) (1,163,921 ) — (2,111 ) (3,781,138 ) Originations — — — 35,311 — — — — — 35,311 Ocwen Transaction (Note 6) — (611,621 ) — — 1,017,993 (3,202,838 ) — — — (2,796,466 ) Balance at December 31, 2018 $ 257,387 $ 190,473 $ 147,964 $ 2,884,100 $ 1,644,504 $ 735,846 $ 8,970,963 $ 10,628 $ 2,330,627 $ 17,172,492 Level 3 Excess MSRs (A) Excess MSRs in Equity Method Investees (A)(B) Agency Non-Agency MSRs (A) Mortgage Servicing Rights Financing Receivables (A) Servicer Advance Investments Non-Agency RMBS Derivatives (C) Residential Mortgage Loans Total (continued) Transfers (D) Transfers from Level 3 — — — — — — — — (32,806 ) (32,806 ) Transfers to Level 3 — — — — — — — — 315,577 315,577 Ditech Acquisition — — — 387,170 — — (178,435 ) — 381,039 589,774 Transfers from investments in mortgage servicing rights financing receivables to investments in mortgage servicing rights — — — 367,121 (367,121 ) — — — — — Gains (losses) included in net income Included in other-than-temporary impairment on securities (E) — — — — — — (25,174 ) — — (25,174 ) Included in change in fair value of investments in excess mortgage servicing rights (E) (7,559 ) (2,946 ) — — — — — — — (10,505 ) Included in change in fair value of investments in excess mortgage servicing rights, equity method investees (E) — — 6,800 — — — — — — 6,800 Included in servicing revenue, net (F) — — — (721,356 ) — — — — — (721,356 ) Included in change in fair value of investments in mortgage servicing rights financing receivable (E) — — — — (189,023 ) — — — — (189,023 ) Included in change in fair value of servicer advance investments — — — — — 10,288 — — — 10,288 Included in change in fair value of investments in residential mortgage loans — — — — — — — — (63,347 ) (63,347 ) Included in gain (loss) on settlement of investments, net 1,479 30 — — — — 97,191 — — 98,700 Included in other income (loss), net (E) 1,523 819 — — — 2,101 29,263 — 33,706 Gains (losses) included in other comprehensive income (G) — — — — — 238,217 — — 238,217 Interest income 14,895 17,752 — — — 27,666 302,705 — — 363,018 Purchases, sales and repayments Purchases — — — 690,049 735,152 1,622,808 2,058,953 — 11,110,245 16,217,207 Proceeds from sales (10,018 ) (57 ) — (1,539 ) (22,989 ) — (1,949,300 ) — (10,638,483 ) (12,622,386 ) Proceeds from repayments (48,074 ) (35,957 ) (29,168 ) (11,625 ) (82,250 ) (1,814,831 ) (1,559,436 ) — (248,503 ) (3,829,844 ) Originations and other — — — 374,040 — — — 844,476 1,218,516 Balance at December 31, 2019 $ 209,633 $ 170,114 $ 125,596 $ 3,967,960 $ 1,718,273 $ 581,777 $ 7,957,785 $ 39,891 $ 3,998,825 $ 18,769,854 (A) Includes the recapture agreement for each respective pool, as applicable. (B) Amounts represent New Residential’s portion of the Excess MSRs held by the respective joint ventures in which New Residential has a 50% interest. (C) For the purpose of this table, the IRLC asset and liability positions are shown net. (D) Transfers are assumed to occur at the beginning of the respective period. (E) The gains (losses) recorded in earnings during the period are attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting dates and realized gains (losses) recorded during the period. (F) The components of Servicing revenue, net are disclosed in Note 6. (G) These gains (losses) were included in net unrealized gain (loss) on securities in the Consolidated Statements of Comprehensive Income. |
Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis using Level 3 Inputs | New Residential’s liabilities measured at fair value on a recurring basis using Level 3 inputs changed as follows: Level 3 Excess Spread Financing Mortgage-Backed Securities Issued Contingent Consideration Total Balance at December 31, 2017 $ — $ — $ — $ — Transfers (A) Transfers from Level 3 — — — — Transfers to Level 3 — — — — Shellpoint Acquisition 48,262 120,702 39,262 208,226 Gains (losses) included in net income Included in other-than-temporary impairment on securities (B) — — — — Included in change in fair value of investments in excess mortgage servicing rights — — — — Included in change in fair value of investments in excess mortgage servicing rights, equity method investees (B) — — — — Included in servicing revenue, net (C) (8,591 ) — — (8,591 ) Included in change in fair value of investments in notes receivable - rights to MSRs — — — — Included in change in fair value of servicer advance investments — — — — Included in gain (loss) on settlement of investments, net — — — — Included in other income (B) — 684 1,580 2,264 Gains (losses) included in other comprehensive income, net of tax (D) — — — — Interest income — — — — Purchases, sales and payments Purchases — — — — Proceeds from sales — — — — Payments — (4,338 ) — (4,338 ) Other (367 ) — — (367 ) Balance at December 31, 2018 $ 39,304 $ 117,048 $ 40,842 $ 197,194 Transfers (A) Transfers from Level 3 — — — — Transfers to Level 3 — — — — Acquisitions — — 13,893 13,893 Ditech Acquisition (E) — 209,459 — 209,459 Gains (losses) included in net income Included in other-than-temporary impairment on securities (B) — — — — Included in change in fair value of investments in excess mortgage servicing rights — — — — Included in change in fair value of investments in excess mortgage servicing rights, equity method investees (B) — — — — Included in servicing revenue, net (C) (8,406 ) — — (8,406 ) Included in change in fair value of investments in notes receivable - rights to MSRs — — — — Included in change in fair value of servicer advance investments — — — — Included in change in fair value of investments in residential mortgage loans — — — — Included in gain (loss) on settlement of investments, net — — — — Included in other income (B) — 1,236 10,487 11,723 Gains (losses) included in other comprehensive income, net of tax (D) — — — — Interest income — — — — Purchases, sales and payments Purchases — 378,569 — 378,569 Proceeds from sales — — — — Payments — (46,574 ) (10,000 ) (56,574 ) Other 879 — — 879 Balance at December 31, 2019 $ 31,777 $ 659,738 $ 55,222 $ 746,737 (A) Transfers are assumed to occur at the beginning of the respective period. (B) The gains (losses) recorded in earnings during the period are attributable to the change in unrealized gains (losses) relating to Level 3 liabilities still held at the reporting dates and realized gains (losses) recorded during the period. (C) The components of Servicing revenue, net are disclosed in Note 6. (D) These gains (losses) were included in net unrealized gain (loss) on securities in the Consolidated Statements of Comprehensive Income. (E) As a result of the Ditech Acquisition, New Residential acquired MSRs and the servicing on certain residual tranches of Non-Agency RMBS it already owned, and now consolidates the respective securities. See Note 12 for the associated liability. |
Summary of Certain Information Regarding Weighted Average Inputs used in Valuing Excess MSRs Owned Directly and through Equity Method Investees | The following table summarizes certain information regards the inputs used in valuing Mortgage-Backed Securities Issued: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Mortgage-Backed Securities Issued $ 659,738 2.58% to 7.5% 4.5% to 15% 0% to 4% 30% to 95% The following tables summarize certain information regarding the weighted average inputs used: December 31, 2019 Significant Inputs (A) Prepayment Rate (B) Delinquency (C) Recapture Rate (D) Mortgage Servicing Amount (E) Collateral Weighted Average Maturity Years (F) Excess MSRs Directly Held (Note 5) Agency Original Pools 8.6 % 1.1 % 20.3 % 21 20 Recaptured Pools 10.7 % 0.5 % 27.8 % 23 23 9.2 % 0.9 % 22.3 % 22 21 Non-Agency (G) Mr. Cooper and SLS Serviced: Original Pools 9.7 % N/A 15.5 % 15 24 Recaptured Pools 7.5 % N/A 17.4 % 24 23 9.4 % N/A 15.8 % 16 24 Total/Weighted Average--Excess MSRs Directly Held 9.3 % 0.9 % 19.4 % 19 22 Excess MSRs Held through Equity Method Investees (Note 5) Agency Original Pools 9.3 % 1.4 % 23.7 % 19 19 Recaptured Pools 10.3 % 0.8 % 26.7 % 24 22 Total/Weighted Average--Excess MSRs Held through Investees 9.8 % 1.1 % 25.1 % 21 20 Total/Weighted Average--Excess MSRs All Pools 9.5 % 1.0 % 21.4 % 20 21 MSRs (Note 6) Agency (H) Mortgage Servicing Rights (I) 12.5 % 1.0 % 23.3 % 28 22 MSR Financing Receivables (I) 15.4 % 0.4 % 15.8 % 27 25 Non-Agency Mortgage Servicing Rights 11.6 % 1.2 % 22.1 % 31 16 MSR Financing Receivables (I) 8.3 % 14.4 % 9.3 % 47 25 Ginnie Mae Mortgage Servicing Rights (J) 16.2 % 4.4 % 28.1 % 42 27 December 31, 2018 Significant Inputs (A) Prepayment Rate (B) Delinquency (C) Recapture Rate (D) Mortgage Servicing Amount (E) Collateral Weighted Average Maturity Years (F) Excess MSRs Directly Held (Note 5) Agency Original Pools 9.8 % 2.5 % 26.3 % 21 21 Recaptured Pools 8.0 % 2.1 % 23.6 % 22 24 Recapture Agreement 7.9 % 2.2 % 24.8 % 22 — 9.1 % 2.4 % 25.4 % 21 22 Non-Agency (G) Mr. Cooper and SLS Serviced: Original Pools 10.4 % N/A 15.4 % 15 24 Recaptured Pools 8.0 % N/A 19.9 % 23 24 Recapture Agreement 7.9 % N/A 19.8 % 20 — 9.9 % N/A 16.3 % 16 24 Total/Weighted Average--Excess MSRs Directly Held 9.4 % 2.4 % 21.5 % 19 23 Excess MSRs Held through Equity Method Investees (Note 5) Agency Original Pools 10.9 % 3.9 % 29.6 % 19 20 Recaptured Pools 8.5 % 2.6 % 28.8 % 23 23 Recapture Agreement 8.6 % 2.7 % 30.4 % 23 — Total/Weighted Average--Excess MSRs Held through Investees 9.6 % 3.2 % 29.4 % 21 21 Total/Weighted Average--Excess MSRs All Pools 9.5 % 2.7 % 24.5 % 20 22 MSRs (Note 6) Agency (H) Mortgage Servicing Rights (I) 9.4 % 1.0 % 22.2 % 26 22 MSR Financing Receivables (I) 9.5 % 0.9 % 14.7 % 27 20 Non-Agency Mortgage Servicing Rights (I) 13.2 % 0.9 % 10.0 % 25 25 MSR Financing Receivables (I) 8.2 % 17.2 % 5.0 % 45 26 Ginnie Mae Mortgage Servicing Rights (J) 11.2 % 3.9 % 24.2 % 33 27 (A) Weighted by fair value of the portfolio. (B) Projected annualized weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (C) Projected percentage of residential mortgage loans in the pool for which the borrower will miss its mortgage payments. (D) Percentage of voluntarily prepaid loans that are expected to be refinanced by the related servicer or subservicer, as applicable. (E) Weighted average total mortgage servicing amount, in excess of the basic fee as applicable, measured in bps. As of December 31, 2019 and 2018 , weighted average costs of subservicing of $7.18 and $7.30 , respectively, per loan per month was used to value the agency MSRs, including MSR Financing Receivables. Weighted average costs of subservicing of $11.28 and $11.45 , respectively, per loan per month was used to value the non-agency MSRs, including MSR Financing Receivables. Weighted average cost of subservicing of $9.20 and $10.06 , respectively, per loan per month was used to value the Ginnie Mae MSRs. (F) Weighted average maturity of the underlying residential mortgage loans in the pool. (G) For certain pools, the Excess MSR will be paid on the total UPB of the mortgage portfolio (including both performing and delinquent loans until REO). For these pools, no delinquency assumption is used. (H) Represents Fannie Mae and Freddie Mac MSRs. (I) For certain pools, recapture rate represents the expected recapture rate with the successor subservicer appointed by NRM. (J) Includes valuation of the related Excess spread financing (Note 6). The following table summarizes certain information regarding the inputs used in valuing residential mortgage loans held-for-investment, at fair value classified as Level 3: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Residential Mortgage Loans Held-for-Investment, at Fair Value $ 484,443 5.5% 6.2% 4.0% 35.5% The following table summarizes certain information regarding the inputs used in valuing IRLCs: Fair Value Loan Funding Probability Fair Value of initial servicing rights (bps) IRLCs (net) $ 39,891 43% to 100% 6.25 to 327 The following table summarizes certain information regarding the inputs used in valuing residential mortgage loans held-for-sale, at fair value classified as Level 3: Fair Value Discount Rate Prepayment Rate CDR Loss Severity Acquired Loans $ 3,024,288 4.0% 7.5% 2.7% 27.6% Originated Loans 490,094 3.0-4.5% 6.0-17.0% 0.0-2.5% 0.0% - 60.0% Residential Mortgage Loans Held-for-Sale, at Fair Value $ 3,514,382 |
Summary of Certain Information Regarding the Inputs used in Valuing the Servicer Advances | The following table summarizes certain information regarding the inputs used in valuing the Servicer Advance Investments, including the basic fee component of the related MSRs: Significant Inputs Weighted Average Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans Prepayment Rate (A) Delinquency Mortgage Servicing Amount (B) Discount Rate Collateral Weighted Average Maturity (Years) (C) December 31, 2019 1.4 % 10.6 % 15.7 % 19.6 bps 5.3 % 22.9 December 31, 2018 1.4 % 10.9 % 17.7 % 19.6 bps 5.9 % 23.4 (A) Projected annual weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (B) Mortgage servicing amount is net of 10.1 bps and 9.6 bps which represent the amounts New Residential paid its servicers as a monthly servicing fee as of December 31, 2019 and 2018 , respectively. (C) Weighted average maturity of the underlying residential mortgage loans in the pool. |
Schedule of Securities Valuation Methodology and Results | New Residential’s securities valuation methodology and results are further detailed as follows: Fair Value Asset Type Outstanding Face Amount Amortized Cost Basis Multiple Quotes (A) Single Quote (B) Total Level December 31, 2019 Agency RMBS $ 11,301,603 $ 11,474,338 $ 11,519,943 $ — $ 11,519,943 2 Non-Agency RMBS (C) 24,857,988 7,307,837 7,953,573 4,212 7,957,785 3 Total $ 36,159,591 $ 18,782,175 $ 19,473,516 $ 4,212 $ 19,477,728 December 31, 2018 Agency RMBS $ 2,613,395 $ 2,657,917 $ 2,665,618 $ — $ 2,665,618 2 Non-Agency RMBS (C) 19,539,450 8,554,511 8,959,845 11,118 8,970,963 3 Total $ 22,152,845 $ 11,212,428 $ 11,625,463 $ 11,118 $ 11,636,581 (A) New Residential generally obtained pricing service quotations or broker quotations from two sources, one of which was generally the seller (the party that sold New Residential the security) for Non-Agency RMBS. New Residential evaluates quotes received and determines one as being most representative of fair value, and does not use an average of the quotes. Even if New Residential receives two or more quotes on a particular security that come from non-selling brokers or pricing services, it does not use an average because it believes using an actual quote more closely represents a transactable price for the security than an average level. Furthermore, in some cases, for non-agency RMBS, there is a wide disparity between the quotes New Residential receives. New Residential believes using an average of the quotes in these cases would not represent the fair value of the asset. Based on New Residential’s own fair value analysis, it selects one of the quotes which is believed to more accurately reflect fair value. New Residential has not adjusted any of the quotes received in the periods presented. These quotations are generally received via email and contain disclaimers which state that they are “indicative” and not “actionable” meaning that the party giving the quotation is not bound to actually purchase the security at the quoted price. New Residential’s investments in Agency RMBS are classified within Level 2 of the fair value hierarchy because the market for these securities is very active and market prices are readily observable. The third-party pricing services and brokers engaged by New Residential (collectively, “valuation providers”) use either the income approach or the market approach, or a combination of the two, in arriving at their estimated valuations of RMBS. Valuation providers using the market approach generally look at prices and other relevant information generated by market transactions involving identical or comparable assets. Valuation providers using the income approach create pricing models that generally incorporate such assumptions as discount rates, expected prepayment rates, expected default rates and expected loss severities. New Residential has reviewed the methodologies utilized by its valuation providers and has found them to be consistent with GAAP requirements. In addition to obtaining multiple quotations, when available, and reviewing the valuation methodologies of its valuation providers, New Residential creates its own internal pricing models for Level 3 securities and uses the outputs of these models as part of its process of evaluating the fair value estimates it receives from its valuation providers. These models incorporate the same types of assumptions as the models used by the valuation providers, but the assumptions are developed independently. These assumptions are regularly refined and updated at least quarterly by New Residential, and reviewed by its valuation group, which is separate from its investment acquisition and management group, to reflect market developments and actual performance. For 67.7% of New Residential’s Non-Agency RMBS, the ranges of assumptions used by New Residential’s valuation providers are summarized in the table below. The assumptions used by New Residential’s valuation providers with respect to the remainder of New Residential’s Non-Agency RMBS were not readily available. Fair Value Discount Rate Prepayment Rate (a) CDR (b) Loss Severity (c) Non-Agency RMBS $ 5,389,502 1.82% to 17.84% 0.5% to 23.0% 0.2% to 7.00% 15.0% to 100% (a) Represents the annualized rate of the prepayments as a percentage of the total principal balance of the pool. (b) Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance of the pool. (c) Represents the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding balance. (B) New Residential was unable to obtain quotations from more than one source on these securities. For approximately $0.7 million in 2019 and $11.1 million in 2018 , the one source was the party that sold New Residential the security. (C) Includes New Residential’s investments in interest-only notes for which the fair value option for financial instruments was elected. |
Schedule of Inputs Used in Valuing Residential Mortgage Loans | The following table summarizes the inputs used in valuing these residential mortgage loans: Fair Value and Carrying Value Discount Rate Weighted Average Life (Years) (A) Prepayment Rate CDR (B) Loss Severity (C) December 31, 2019 Performing Loans $ 707,106 4.2 % 4.1 11.7 % 2.6 % 27.3 % Non-Performing Loans 482,401 5.5 % 3.1 3.0 % 2.9 % 30.0 % Total/Weighted Average $ 1,189,507 4.7 % 3.7 8.2 % 28.4 % December 31, 2018 Performing Loans $ 307,135 4.4 % 4.0 10.5 % 3.0 % 33.2 % Non-Performing Loans 381,940 5.5 % 3.1 2.9 % 2.8 % 30.0 % Total/Weighted Average $ 689,075 5.0 % 3.5 6.3 % 31.4 % (A) The weighted average life is based on the expected timing of the receipt of cash flows. (B) Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance. (C) Loss severity is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding loan balance. |
CONSOLIDATED VARIABLE INTERES_2
CONSOLIDATED VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The table below presents the carrying value and classification of the assets and liabilities of consolidated VIEs on New Residential’s consolidated balance sheets: The Buyer Shelter Joint Ventures Residential Mortgage Loans Consumer Loan SPVs Total December 31, 2019 Assets Servicer advance investments, at fair value $ 565,271 $ — $ — $ — $ 565,271 Residential mortgage loans, held-for-investment, at fair value — — 913,030 — 913,030 Consumer loans, held-for-investment — — — 818,943 818,943 Cash and cash equivalents 30,065 23,802 — — 53,867 Restricted cash 5,350 — — 9,073 14,423 Other assets 2,414 3,556 4,534 12,409 22,913 Total Assets $ 603,100 $ 27,358 $ 917,564 $ 840,425 $ 2,388,447 Liabilities Notes and bonds payable (A) $ 433,300 $ — $ 659,738 $ 820,658 $ 1,913,696 Accrued expenses and other liabilities 1,593 4,187 10,132 4,126 20,038 Total Liabilities $ 434,893 $ 4,187 $ 669,870 $ 824,784 $ 1,933,734 December 31, 2018 Assets Servicer advance investments, at fair value $ 713,239 $ — $ — $ — $ 713,239 Residential mortgage loans, held-for-investment — — 121,319 — 121,319 Consumer loans, held-for-investments — — — 1,039,480 1,039,480 Cash and cash equivalents 29,833 17,346 — — 47,179 Restricted cash 7,809 — — 10,186 17,995 Servicer advances receivable — — — — — Other assets 2,414 618 — 15,627 18,659 Total Assets $ 753,295 $ 17,964 $ 121,319 $ 1,065,293 $ 1,957,871 Liabilities Notes and bonds payable (A) $ 556,340 $ — $ 117,048 $ 1,030,096 $ 1,703,484 Accrued expenses and other liabilities 2,442 2,282 — 3,814 8,538 Total Liabilities $ 558,782 $ 2,282 $ 117,048 $ 1,033,910 $ 1,712,022 (A) The creditors of the VIEs do not have recourse to the general credit of New Residential, and the assets of the VIEs are not directly available to satisfy New Residential’s obligations. December 31, 2019 : December 31, 2019 2018 Residential mortgage loan UPB $ 19,590,978 $ 7,818,221 Weighted average delinquency (A) 1.25 % 1.97 % Net credit losses $ 9,354 $ 9,101 Face amount of debt held by third parties (B) $ 17,946,939 $ 6,783,187 Carrying value of bonds retained by New Residential (C) (D) $ 1,656,712 $ 1,206,402 Cash flows received by New Residential on these bonds $ 270,739 $ 178,301 (A) Represents the percentage of the UPB that is 60 + days delinquent. (B) Excludes bonds retained by New Residential. (C) Includes bonds retained pursuant to required risk retention regulations. (D) Classified within Level 3 of the fair value hierarchy as the valuation is based on certain unobservable inputs including discount rate, prepayment rates and loss severity. See Note 13 for details on unobservable inputs. |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | Others’ interests in the equity of New Residential’s consolidated subsidiaries is computed as follows: December 31, 2019 December 31, 2018 The Buyer (A) Shelter Joint Ventures Consumer Loan Companies The Buyer (A) Shelter Joint Ventures Consumer Loan Companies Total consolidated equity $ 168,207 $ 23,171 $ 46,510 $ 194,513 $ 15,682 $ 66,105 Others’ ownership interest 26.8 % 49.0 % 46.5 % 26.8 % 51.0 % 46.5 % Others’ interest in equity of consolidated subsidiary $ 45,025 $ 11,354 $ 22,171 $ 52,066 $ 7,998 $ 30,561 Others’ interests in the New Residential’s net income (loss) is computed as follows: Year Ended December 31, 2019 Year Ended December 31, 2018 Year Ended December 31, 2017 The Buyer (A) Shelter Joint Ventures Consumer Loan Companies The Buyer (A) Shelter Joint Ventures Consumer Loan Companies The Buyer (A) Shelter Joint Ventures Consumer Loan Companies Net income $ 15,892 $ 12,717 $ 69,143 $ 7,209 $ 3,135 $ 79,539 $ 23,604 $ — $ 98,692 Others’ ownership interest as a percent of total 26.8 % 49.0 % 46.5 % 27.4 % 51.0 % 46.5 % 47.6 % — % 46.5 % Others’ interest in net income of consolidated subsidiaries $ 4,255 $ 6,231 $ 32,151 $ 1,978 $ 1,599 $ 36,987 $ 11,227 $ — $ 45,892 (A) As a result, New Residential owned 73.2% , 72.6% and 52.4% of the Buyer, on average during the years ended December 31, 2019, 2018 and 2017, respectively. See Note 12 regarding the financing of Servicer Advance Investments. |
EQUITY AND ENARNINGS PER SHARE
EQUITY AND ENARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Common Dividends Declared | Common dividends have been declared as follows: Per Share Declaration Date Payment Date Quarterly Dividend Total Amounts Distributed (millions) January 26, 2017 April 2017 0.48 147.5 June 21, 2017 July 2017 0.50 153.7 September 22, 2017 October 2017 0.50 153.7 December 18, 2017 January 2018 0.50 153.7 March 22, 2018 April 2018 0.50 168.1 June 21, 2018 July 2018 0.50 169.9 September 20, 2018 October 2018 0.50 170.2 December 20, 2018 January 2019 0.50 184.6 March 25, 2019 April 2019 0.50 207.7 June 18, 2019 July 2019 0.50 207.8 September 23, 2019 October 2019 0.50 207.8 December 16, 2019 January 2020 0.50 207.8 |
Summary of Outstanding Options | New Residential’s outstanding options were summarized as follows: December 31, 2019 2018 Held by the Manager 10,511,167 6,961,222 Issued to the Manager and subsequently assigned to certain of the Manager’s employees 2,290,749 1,530,916 Issued to the independent directors 7,000 6,000 Total 12,808,916 8,498,138 The following table summarizes New Residential’s outstanding options as of December 31, 2019 . The last sales price on the New York Stock Exchange for New Residential’s common stock in the year ended December 31, 2019 was $16.11 per share. Recipient Date of Grant/ Exercise (A) Number of Unexercised Options Options Exercisable as of December 31, 2019 Weighted Average Exercise Price (B) Intrinsic Value of Exercisable Options as of December 31, 2019 (millions) Directors Various 7,000 7,000 $ 13.61 $ — Manager (C) 2017 1,130,916 — 14.09 2.3 Manager (C) 2018 5,320,000 2,996,715 16.79 — Manager (C) 2019 6,351,000 1,787,500 16.35 — Outstanding 12,808,916 4,791,215 (A) Options expire on the tenth anniversary from date of grant. (B) The exercise prices are subject to adjustment in connection with return of capital dividends. A portion of New Residential’s 2018 dividends was deemed to be a return of capital and the exercise prices were adjusted accordingly. (C) The Manager assigned certain of its options to its employees as follows: Date of Grant to Manager Range of Exercise Prices Total Unexercised Inception to Date 2017 $14.09 1,130,916 2018 $16.68 to $18.15 1,159,833 Total 2,290,749 The following table summarizes activity in New Residential’s outstanding options: Amount Weighted Average Exercise Price December 31, 2017 outstanding options 18,502,188 Options granted 5,799,166 $ 17.23 Options exercised (15,803,216 ) $ 14.30 Options expired unexercised — December 31, 2018 outstanding options 8,498,138 Options granted 6,352,000 $ 16.20 Options exercised (2,041,222 ) $ 13.88 Options expired unexercised — December 31, 2019 outstanding options 12,808,916 See table above |
TRANSACTIONS WITH AFFILIATES _2
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Affiliate Transactions | Due to affiliates is comprised of the following amounts: December 31, 2019 2018 Management fees $ 7,076 $ 5,779 Incentive compensation 91,892 94,900 Expense reimbursements and other 4,914 792 Total $ 103,882 $ 101,471 Affiliate expenses and fees were comprised of: Year Ended December 31, 2019 2018 2017 Management fees $ 79,472 $ 62,594 $ 55,634 Incentive compensation 91,892 94,900 81,373 Expense reimbursements (A) 500 500 500 Total $ 171,864 $ 157,994 $ 137,507 (A) Included in General and Administrative Expenses in the Consolidated Statements of Income. |
RECLASSIFICATION FROM ACCUMUL_2
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of Amounts Reclassified out of Accumulated Other Comprehensive Income into Net Income | The following table summarizes the amounts reclassified out of accumulated other comprehensive income into net income: Accumulated Other Comprehensive Income Components Statement of Income Location Year Ended December 31, 2019 2018 2017 Reclassification of net realized (gain) loss on securities into earnings Gain (loss) on settlement of investments, net $ (205,989 ) $ 29,936 $ (20,642 ) Reclassification of net realized (gain) loss on securities into earnings Other-than-temporary impairment on securities 25,174 30,017 10,334 Total reclassifications $ (180,815 ) $ 59,953 $ (10,308 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Income tax (benefit) expense consists of the following: Year Ended December 31, 2019 2018 2017 Current: Federal $ 148 $ 6,146 $ (1,250 ) State and Local 3,411 477 360 Total Current Income Tax Expense (Benefit) 3,559 6,623 (890 ) Deferred: Federal 28,939 (68,907 ) 148,997 State and Local 9,268 (11,147 ) 19,521 Total Deferred Income Tax Expense (Benefit) 38,207 (80,054 ) 168,518 Total Income Tax (Benefit) Expense $ 41,766 $ (73,431 ) $ 167,628 |
Schedule of Reported Provision for Income Taxes and the U.S. Federal Statutory Rate | The difference between New Residential’s reported provision for income taxes and the U.S. federal statutory rate of 21% is as follows: December 31, 2019 2018 2017 Provision at the statutory rate 21.00 % 21.00 % 35.00 % Non-taxable REIT income (16.26 )% (25.44 )% (21.72 )% State and local taxes 2.36 % (1.19 )% 1.76 % Change in valuation allowance — % (2.31 )% 0.85 % Change in federal tax rate — % — % (0.92 )% Other 0.66 % (0.30 )% (0.17 )% Total provision 7.76 % (8.24 )% 14.80 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liability are presented below: December 31, 2019 2018 Deferred tax assets: Net operating losses and tax credit carryforwards (A) $ 79,897 $ 41,713 Basis differences for REO and other assets 16,279 8,453 Unrealized mark to market 10,084 36,758 Other 1,194 3,087 Total deferred tax assets 107,454 90,011 Less valuation allowance — — Net deferred tax assets $ 107,454 $ 90,011 Deferred tax liabilities: Mortgage servicing rights $ (65,582 ) $ — Basis difference for partnership and other investments (29,022 ) (24,179 ) Fixed asset depreciation (4,181 ) — Total deferred tax (liability) $ (98,785 ) $ (24,179 ) Net deferred tax assets (liability) $ 8,669 $ 65,832 (A) As of December 31, 2019 , New Residential’s TRSs had approximately $328.0 million of net operating loss carryforwards for federal and state income tax purposes which may be available to offset future taxable income, if and when it arises. Approximately, $9.1 million of these federal and state net operating loss carryforwards will begin to expire in 2034. The utilization of the net operating loss carryforwards to reduce future income taxes will depend on the TRSs ability to generate sufficient taxable income prior to the expiration of the carryforward period. |
Schedule of Taxable Common Stock Distributions | Common stock distributions were taxable as follows: Year Dividends per Share Ordinary Income Long-term Capital Gain Return of Capital 2019 (A) $ 1.87 77.53 % 15.82 % 6.65 % 2018 (B) 1.60 78.03 % 1.03 % 20.94 % 2017 (C) 1.94 66.64 % 7.83 % 25.53 % (A) The entire $0.50 per share dividend declared in December 2019 and paid in January 2020 is treated as received by stockholders in 2020 . (B) The entire $0.50 per share dividend declared in December 2018 and paid in January 2019 is treated as received by stockholders in 2019 . (C) The entire $0.50 per share dividend declared in December 2017 and paid in January 2018 is treated as received by stockholders in 2018 . Series A Preferred stock distributions were as follows: Year Dividends per Share Ordinary Income Long-term Capital Gain Return of Capital 2019 $ 0.69 84.18 % 15.82 % — % Series B Preferred stock distributions were as follows: Year Dividends per Share Ordinary Income Long-term Capital Gain Return of Capital 2019 $ 0.45 84.18 % 15.82 % — % |
SUMMARY QUARTERLY CONSOLIDATE_2
SUMMARY QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Unaudited Summary Information | The following is an unaudited summary information on New Residential’s quarterly operations. 2019 Quarter Ended Year Ended December 31 March 31 June 30 September 30 December 31 Interest income $ 438,867 $ 416,047 $ 448,127 $ 463,089 $ 1,766,130 Interest expense 212,832 228,004 245,902 247,013 933,751 Net interest income 226,035 188,043 202,225 216,076 832,379 Impairment Other-than-temporary impairment (OTTI) on securities 7,516 8,859 5,567 3,232 25,174 Valuation and loss provision (reversal) on loans and real estate owned 5,280 13,452 (10,690 ) 2,361 10,403 12,796 22,311 (5,123 ) 5,593 35,577 Net interest income after impairment 213,239 165,732 207,348 210,483 796,802 Servicing revenue, net 165,853 (85,537 ) 53,050 251,793 385,159 Gain on originated mortgage loans, held-for-sale, net 67,170 101,018 126,747 180,520 475,455 Other income (loss) (A) (63,966 ) (25,947 ) 102,640 (53,826 ) (41,099 ) Operating Expenses 180,387 201,863 250,565 335,803 968,618 Income (Loss) Before Income Taxes 201,909 (46,597 ) 239,220 253,167 647,699 Income tax (benefit) expense 45,997 (21,577 ) (5,440 ) 22,786 41,766 Net Income (Loss) $ 155,912 $ (25,020 ) $ 244,660 $ 230,381 $ 605,933 Noncontrolling Interests in Income of Consolidated Subsidiaries $ 10,318 $ 6,923 $ 14,738 $ 10,658 $ 42,637 Dividends on Preferred Stock $ — $ — $ 5,338 $ 7,943 $ 13,281 Net Income (Loss) Attributable to Common Stockholders $ 145,594 $ (31,943 ) $ 224,584 $ 211,780 $ 550,015 Net Income (Loss) Per Share of Common Stock Basic $ 0.37 $ (0.08 ) $ 0.54 $ 0.51 $ 1.35 Diluted $ 0.37 $ (0.08 ) $ 0.54 $ 0.51 $ 1.34 Weighted Average Number of Shares of Common Stock Outstanding Basic 388,279,931 415,463,757 415,520,780 415,520,780 408,789,642 Diluted 388,601,075 415,665,460 415,588,238 415,673,185 408,990,107 Dividends Declared per Share of Common Stock $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 2.00 2018 Quarter Ended Year Ended December 31 March 31 June 30 September 30 December 31 Interest income $ 383,573 $ 403,805 $ 425,524 $ 451,321 $ 1,664,223 Interest expense 124,387 133,916 162,806 185,324 606,433 Net interest income 259,186 269,889 262,718 265,997 1,057,790 Impairment Other-than-temporary impairment (OTTI) on securities 6,670 12,631 3,889 6,827 30,017 Valuation and loss provision (reversal) on loans and real estate owned 19,007 3,658 5,471 32,488 60,624 25,677 16,289 9,360 39,315 90,641 Net interest income after impairment 233,509 253,600 253,358 226,682 967,149 Servicing revenue, net 217,236 146,193 175,355 (10,189 ) 528,595 Gain on originated mortgage loans, held-for-sale, net — — 47,054 49,091 96,145 Other income (loss) (A) 264,524 (96,812 ) (84,620 ) (134,477 ) (51,385 ) Operating Expenses 107,817 119,753 192,107 189,727 609,404 Income (Loss) Before Income Taxes 607,452 183,228 199,040 (58,620 ) 931,100 Income tax (benefit) expense (6,912 ) (2,608 ) 3,563 (67,474 ) (73,431 ) Net Income $ 614,364 $ 185,836 $ 195,477 $ 8,854 $ 1,004,531 Noncontrolling Interests in Income of Consolidated Subsidiaries $ 10,111 $ 11,078 $ 10,869 $ 8,506 $ 40,564 Net Income Attributable to Common Stockholders $ 604,253 $ 174,758 $ 184,608 $ 348 $ 963,967 Net Income Per Share of Common Stock Basic $ 1.83 $ 0.52 $ 0.54 $ — $ 2.82 Diluted $ 1.81 $ 0.51 $ 0.54 $ — $ 2.81 Weighted Average Number of Shares of Common Stock Outstanding Basic 330,384,856 336,311,253 340,044,440 358,044,646 341,268,923 Diluted 333,380,436 339,538,503 340,868,403 358,509,094 343,137,361 Dividends Declared per Share of Common Stock $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 2.00 (A) |
ORGANIZATION - Narrative (Detai
ORGANIZATION - Narrative (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Common stock, shares outstanding (in shares) | 415,520,780 | 369,104,429 |
Stock options outstanding (in shares) | 12,808,916 | |
Fortress-managed funds | ||
Related Party Transaction [Line Items] | ||
Common stock, shares outstanding (in shares) | 2,400,000 | |
Stock options outstanding (in shares) | 10,500,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2018 | |
Cash and Cash Equivalents [Line Items] | |||
Restricted cash | $ 162,197 | $ 164,020 | |
Debt instrument, term | 1 year | ||
Increase in retained earnings due to adoption of new acocunting standard | $ 549,733 | 830,713 | |
Decrease in residential mortgage loans, due to adoption of new accounting guidance | (4,613,612) | (2,808,529) | |
Ginnie Mae | |||
Cash and Cash Equivalents [Line Items] | |||
Restricted cash | 4,700 | 4,100 | |
MSRs | |||
Cash and Cash Equivalents [Line Items] | |||
Restricted cash | 61,100 | 60,400 | |
Secured Corporate Note | |||
Cash and Cash Equivalents [Line Items] | |||
Restricted cash | 0 | 1,900 | |
Servicer Advance Investments | |||
Cash and Cash Equivalents [Line Items] | |||
Restricted cash | 64,000 | 60,000 | |
Consumer Loan | |||
Cash and Cash Equivalents [Line Items] | |||
Restricted cash | $ 32,400 | $ 37,600 | |
Forecast | Accounting Standards Update 2016-13 | |||
Cash and Cash Equivalents [Line Items] | |||
Increase in retained earnings due to adoption of new acocunting standard | $ 5,900 | ||
Decrease in residential mortgage loans, due to adoption of new accounting guidance | 6,000 | ||
Increase in consumer loans, at fair value due to adoption of new accounting guidance | $ 11,900 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accretion and Other Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accretion of discount and other amortization: | |||
Accretion of net discount on securities and loans | $ 323,652 | $ 452,500 | $ 398,213 |
Accretion of servicer advances receivable discount and servicer advance investments | 28,094 | 214,876 | 542,983 |
Accretion of excess mortgage servicing rights income | 32,647 | 44,440 | 103,053 |
Amortization of deferred financing costs | (4,019) | (7,795) | (12,076) |
Amortization of discount on notes and bonds payable | (1,245) | (2,054) | (789) |
Accretion and other amortization | $ 379,129 | $ 701,967 | $ 1,031,384 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Other Income (Loss), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other income (loss), net | |||
Unrealized gain (loss) on other ABS | $ 2,101 | $ 10,283 | $ 2,883 |
Unrealized gain (loss) on notes and bonds payable | (1,236) | (684) | 0 |
Unrealized gain (loss) on contingent consideration | (10,487) | (1,581) | 0 |
Gain (loss) on transfer of loans to REO | 11,842 | 19,519 | 22,938 |
Gain (loss) on transfer of loans to other assets | (1,144) | (1,977) | 488 |
Gain (loss) on Excess MSR recapture agreements | 2,294 | 979 | 2,384 |
Gain (loss) on Ocwen common stock | 174 | (10,860) | 5,346 |
Bargain Purchase Gain (Note 3) | 49,539 | 0 | 0 |
Rental and Ancillary Revenue | 21,181 | 0 | 0 |
Other income (loss) | (30,115) | (26,457) | (27,741) |
Other income (loss), net | $ 44,149 | $ (10,778) | $ 6,298 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Gain (Loss) on Settlement of Investments, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Gain (loss) on sale of real estate securities, net | $ 205,989 | $ (29,936) | $ 20,642 |
Gain (loss) on sale of acquired residential mortgage loans, net | 153,174 | (7,677) | 39,731 |
Gain (loss) on settlement of derivatives | (129,923) | 54,867 | (39,214) |
Gain (loss) on liquidated residential mortgage loans | (4,872) | (3,734) | (10,201) |
Gain (loss) on sale of REO | (11,521) | (12,424) | (9,215) |
Gains on settlement of investments in excess MSRs and servicer advance investments | 0 | 113,002 | 11,320 |
Other gains (losses) | 12,840 | (19,013) | (2,753) |
Gain (loss) on settlement of investments, net | $ 225,687 | $ 95,085 | $ 10,310 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of General and Administrative Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Other Income [Line Items] | |||
Legal and professional expense | $ 89,489 | $ 45,234 | $ 40,182 |
Loan origination expense | 59,418 | 16,050 | 0 |
Occupancy expense | 19,388 | ||
Occupancy expense | 8,868 | 0 | |
Other | 84,251 | 51,557 | 26,793 |
General and Administrative Expense | 538,035 | 231,579 | 67,159 |
Servicing | |||
Schedule Of Other Income [Line Items] | |||
Compensation and benefits expense, servicing | 121,004 | 47,084 | 184 |
Origination | |||
Schedule Of Other Income [Line Items] | |||
Compensation and benefits expense, servicing | $ 164,485 | $ 62,786 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Other Assets and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | May 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Assets | |||||
Margin receivable, net | $ 280,176 | $ 145,857 | |||
Servicing fee receivables | 159,607 | 105,563 | |||
Due from servicers | 163,961 | 95,261 | |||
Principal and interest receivable | 85,191 | 76,015 | |||
Equity investment | 114,763 | 74,323 | |||
Other receivables | 117,045 | 23,723 | |||
Real Estate Owned | 93,672 | 113,410 | |||
Single-family rental properties | 24,133 | 0 | |||
Residential mortgage loans subject to repurchase | 172,336 | 121,602 | $ 0 | ||
New Residential’s investment | 0 | 38,294 | |||
Goodwill | 29,737 | 24,645 | |||
Notes Receivable | 37,001 | 0 | |||
Warrants | 28,042 | 0 | |||
Recovery asset | 23,100 | 0 | |||
Property and equipment | 18,018 | 11,263 | |||
Receivable from government agency | 19,670 | 20,795 | |||
Intangible assets | 40,963 | 18,708 | |||
Prepaid expenses | 19,249 | 29,165 | |||
Operating lease right-of-use asset | 32,120 | 0 | |||
Derivative assets | 41,501 | 10,893 | |||
Ocwen common stock, at fair value | 7,952 | 7,778 | |||
Other assets | 51,230 | 44,419 | |||
Total other assets | 1,559,467 | 961,714 | |||
Accrued Expenses and Other Liabilities | |||||
MSRs purchase price holdback | 75,348 | 100,593 | |||
Interest payable | 68,668 | 49,352 | |||
Accounts payable | 119,771 | 75,591 | |||
Derivative liabilities | 6,885 | 29,389 | |||
Due to servicers | 127,846 | 95,419 | |||
Residential mortgage loan repurchase liability | 172,336 | 121,602 | |||
Contingent Consideration | 55,222 | 40,842 | |||
Accrued Compensation and Benefits | 41,228 | 17,656 | |||
Excess spread financing, at fair value | 31,777 | 39,304 | |||
Operating lease liability | 38,520 | 0 | |||
Reserve for sales recourse | 12,549 | 5,880 | |||
Other liabilities | 22,976 | 36,484 | |||
Total accrued expenses and other liabilities | [1] | $ 773,126 | $ 612,112 | ||
Covius | |||||
Other Assets | |||||
New Residential’s investment | $ 27,300 | ||||
Goodwill | 11,800 | ||||
Notes Receivable | 35,000 | ||||
Intangible assets | $ 3,600 | ||||
[1] | See Note 14 regarding consolidated VIEs. |
BUSINESS ACQUISITIONS - Schedul
BUSINESS ACQUISITIONS - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Oct. 01, 2019 | Sep. 03, 2019 | Jul. 03, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Liabilities | |||||
Goodwill (Bargain Purchase Gain) | $ 29,737 | $ 24,645 | |||
Mortgage servicing rights, at fair value | 3,967,960 | 2,884,100 | |||
Total Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Total Consideration ($ in millions) | 1,239,700 | ||||
Assets | |||||
Mortgage servicing rights, at fair value | 387,200 | ||||
Residential mortgage loans, held-for-investment, at fair value | 0 | ||||
Residential mortgage loans, held-for-sale, at fair value | 627,400 | ||||
Residential mortgage loans subject to repurchase | 0 | ||||
Cash and cash equivalents | 1,800 | ||||
Restricted cash | 0 | ||||
Servicer Advance Receivable | 238,000 | ||||
Intangible assets | 22,200 | ||||
Other assets | 71,400 | ||||
Total Assets Acquired | 1,348,000 | ||||
Liabilities | |||||
Repurchase agreements | 0 | ||||
Notes and bonds payable | 0 | ||||
Mortgage-backed securities issued, at fair value | 0 | ||||
Residential mortgage loans repurchase liability | 0 | ||||
Excess spread financing, at fair value | 0 | ||||
Accrued expenses and other liabilities | 63,900 | ||||
Total Liabilities Assumed | 63,900 | ||||
Noncontrolling Interest | 0 | ||||
Net Assets | 1,284,100 | ||||
Goodwill (Bargain Purchase Gain) | (44,400) | ||||
Ditech | |||||
Business Acquisition [Line Items] | |||||
Total Consideration ($ in millions) | $ 1,218,200 | 1,218,200 | |||
Assets | |||||
Mortgage servicing rights, at fair value | 387,200 | ||||
Residential mortgage loans, held-for-investment, at fair value | 0 | ||||
Residential mortgage loans, held-for-sale, at fair value | 627,400 | ||||
Residential mortgage loans subject to repurchase | 0 | ||||
Cash and cash equivalents | 0 | ||||
Restricted cash | 0 | ||||
Servicer Advance Receivable | 238,000 | ||||
Intangible assets | 10,500 | ||||
Other assets | 64,800 | ||||
Total Assets Acquired | 1,327,900 | ||||
Liabilities | |||||
Repurchase agreements | 0 | ||||
Notes and bonds payable | 0 | ||||
Mortgage-backed securities issued, at fair value | 0 | ||||
Residential mortgage loans repurchase liability | 0 | ||||
Excess spread financing, at fair value | 0 | ||||
Accrued expenses and other liabilities | 60,200 | ||||
Total Liabilities Assumed | 60,200 | ||||
Noncontrolling Interest | 0 | ||||
Net Assets | 1,267,700 | ||||
Goodwill (Bargain Purchase Gain) | (49,500) | ||||
Guardian | |||||
Business Acquisition [Line Items] | |||||
Total Consideration ($ in millions) | $ 21,500 | 21,500 | |||
Assets | |||||
Mortgage servicing rights, at fair value | 0 | ||||
Residential mortgage loans, held-for-investment, at fair value | 0 | ||||
Residential mortgage loans, held-for-sale, at fair value | 0 | ||||
Residential mortgage loans subject to repurchase | 0 | ||||
Cash and cash equivalents | 1,800 | ||||
Restricted cash | 0 | ||||
Servicer Advance Receivable | 0 | ||||
Intangible assets | 11,700 | ||||
Other assets | 6,600 | ||||
Total Assets Acquired | 20,100 | ||||
Liabilities | |||||
Repurchase agreements | 0 | ||||
Notes and bonds payable | 0 | ||||
Mortgage-backed securities issued, at fair value | 0 | ||||
Residential mortgage loans repurchase liability | 0 | ||||
Excess spread financing, at fair value | 0 | ||||
Accrued expenses and other liabilities | 3,700 | ||||
Total Liabilities Assumed | 3,700 | ||||
Noncontrolling Interest | 0 | ||||
Net Assets | 16,400 | ||||
Goodwill (Bargain Purchase Gain) | $ 5,100 | $ 5,100 | |||
Shellpoint | |||||
Business Acquisition [Line Items] | |||||
Total Consideration ($ in millions) | $ 425,500 | 425,500 | |||
Assets | |||||
Mortgage servicing rights, at fair value | 286,600 | ||||
Residential mortgage loans, held-for-investment, at fair value | 125,300 | ||||
Residential mortgage loans, held-for-sale, at fair value | 488,200 | ||||
Residential mortgage loans subject to repurchase | 121,400 | ||||
Cash and cash equivalents | 79,200 | ||||
Restricted cash | 9,900 | ||||
Servicer Advance Receivable | 22,400 | ||||
Intangible assets | 18,400 | ||||
Other assets | 59,100 | ||||
Total Assets Acquired | 1,210,500 | ||||
Liabilities | |||||
Repurchase agreements | 439,600 | ||||
Notes and bonds payable | 20,700 | ||||
Mortgage-backed securities issued, at fair value | 120,700 | ||||
Residential mortgage loans repurchase liability | 121,400 | ||||
Excess spread financing, at fair value | 48,300 | ||||
Accrued expenses and other liabilities | 50,600 | ||||
Total Liabilities Assumed | 801,300 | ||||
Noncontrolling Interest | 8,300 | ||||
Net Assets | 400,900 | ||||
Goodwill (Bargain Purchase Gain) | 24,600 | $ 24,600 | |||
Ginnie Mae | Shellpoint | |||||
Liabilities | |||||
Mortgage servicing rights, at fair value | $ 135,300 | ||||
Customer relationships and servicing contracts | Ditech | |||||
Liabilities | |||||
Finite-lived intangible assets, useful life | 3 years | ||||
Customer relationships and trade names | Guardian | |||||
Liabilities | |||||
Finite-lived intangible assets, useful life | 7 years | ||||
Internally developed software | Shellpoint | |||||
Liabilities | |||||
Finite-lived intangible assets, useful life | 5 years | ||||
Tradenames | Shellpoint | |||||
Liabilities | |||||
Finite-lived intangible assets, useful life | 6 months |
BUSINESS ACQUISITIONS - Narrati
BUSINESS ACQUISITIONS - Narrative (Details) $ in Thousands | Oct. 01, 2019USD ($)employee | Sep. 03, 2019USD ($)earnout_payment | May 01, 2019USD ($) | Jul. 03, 2018USD ($)earnout_payment | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 19, 2019 |
Business Acquisition [Line Items] | |||||||||
Bargain purchase gain | $ 49,539 | $ 0 | $ 0 | ||||||
Effective settlement of preexisting relationships | 4,919 | 0 | 0 | ||||||
Contingent consideration | $ 40,842 | 55,222 | 40,842 | ||||||
Goodwill | 24,645 | 29,737 | 24,645 | ||||||
Payment of contingent consideration | 10,000 | 0 | 0 | ||||||
Strategic investment | 38,294 | 0 | 38,294 | ||||||
Subordinated debt facility | 0 | 37,001 | 0 | ||||||
Intangible assets | 18,708 | 40,963 | 18,708 | ||||||
Covius Holdings Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 11,800 | ||||||||
Strategic investment | 27,300 | ||||||||
Subordinated debt facility | $ 35,000 | ||||||||
Note receivable, term | 4 years | ||||||||
Intangible assets | $ 3,600 | ||||||||
Ditech Acquisition | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash consideration | $ 1,213,300 | ||||||||
Number of employees | employee | 1,100 | ||||||||
Bargain purchase gain | 49,500 | ||||||||
Effective settlement of preexisting relationships | $ 4,900 | ||||||||
Revenue of acquiree | 134,500 | ||||||||
Net income of acquiree | 104,700 | ||||||||
Goodwill | (49,500) | ||||||||
Transition, integration, relocation, and training costs incurred | 22,900 | ||||||||
Guardian | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash consideration | $ 7,600 | ||||||||
Contingent consideration, high | 17,500 | ||||||||
Revenue of acquiree | 14,400 | ||||||||
Net income of acquiree | 2,900 | ||||||||
Contingent consideration | 13,900 | 0 | 13,893 | 0 | 0 | ||||
Goodwill | 5,100 | 5,100 | |||||||
Goodwill, expected tax deductible amount | 5,100 | ||||||||
Guardian | NRZ Guardian Purchaser LLC | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash consideration | $ 7,600 | ||||||||
Equity interest acquired | 100.00% | 100.00% | |||||||
Contingent consideration, high | $ 17,500 | ||||||||
Number of earnout payments | earnout_payment | 4 | ||||||||
Shellpoint Acquisition | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash consideration | $ 212,300 | ||||||||
Effective settlement of preexisting relationships | 173,900 | ||||||||
Contingent consideration, high | 60,000 | ||||||||
Revenue of acquiree | 780,700 | 177,400 | |||||||
Net income of acquiree | 359,000 | 26,800 | |||||||
Contingent consideration | 39,300 | 39,300 | 0 | 39,300 | $ 0 | ||||
Goodwill | 24,600 | 24,600 | $ 24,600 | ||||||
Goodwill, expected tax deductible amount | 24,600 | ||||||||
Payment of contingent consideration | $ 10,000 | ||||||||
Decrease to contingent consideration | (3,500) | ||||||||
Decrease to consideration transferred | (6,400) | ||||||||
Increase to the fair value of identifiable intangible assets | 14,100 | ||||||||
Increase to other assets | 300 | ||||||||
Decrease to goodwill | $ (24,300) | ||||||||
Shellpoint Acquisition | NRM Acquisition LLC | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash consideration | $ 212,300 | ||||||||
Equity interest acquired | 100.00% | ||||||||
Contingent consideration, high | $ 60,000 | ||||||||
Number of earnout payments | earnout_payment | 3 |
BUSINESS ACQUISITIONS - Sched_2
BUSINESS ACQUISITIONS - Schedule of Total Consideration (Details) - USD ($) | Oct. 01, 2019 | Sep. 03, 2019 | Jul. 03, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||
Effective settlement of preexisting relationships | $ 4,919,000 | $ 0 | $ 0 | |||
Contingent consideration | 55,222,000 | 40,842,000 | ||||
Ditech Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Cash Consideration | $ 1,213,300,000 | |||||
Effective settlement of preexisting relationships | 4,900,000 | |||||
Total Consideration | $ 1,218,200,000 | 1,218,200,000 | ||||
Guardian | ||||||
Business Acquisition [Line Items] | ||||||
Cash Consideration | $ 7,600,000 | |||||
Earnout Payment | 13,900,000 | |||||
Total Consideration | 21,500,000 | 21,500,000 | ||||
Contingent consideration, low | 0 | |||||
Contingent consideration, high | 17,500,000 | |||||
Contingent consideration | $ 13,900,000 | 13,893,000 | 0 | 0 | ||
Shellpoint Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Cash Consideration | $ 212,300,000 | |||||
Earnout Payment | 39,300,000 | 40,900,000 | ||||
Effective settlement of preexisting relationships | 173,900,000 | |||||
Total Consideration | 425,500,000 | 425,500,000 | ||||
Contingent consideration, low | 0 | |||||
Contingent consideration, high | $ 60,000,000 | |||||
Contingent consideration, earnout payment period | 3 years | |||||
Contingent consideration | $ 39,300,000 | $ 0 | $ 39,300,000 | $ 0 |
BUSINESS ACQUISITIONS - Sched_3
BUSINESS ACQUISITIONS - Schedule of Unaudited Supplemental Pro Forma Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Ditech Acquisition | |||
Pro Forma (in millions) | |||
Servicing and Origination Revenue | $ 1,104 | $ 1,238.1 | |
Income Before Income Taxes | 552.8 | 923.3 | |
Guardian | |||
Pro Forma (in millions) | |||
Income Before Income Taxes | $ 651.5 | 932.2 | |
Shellpoint Acquisition | |||
Pro Forma (in millions) | |||
Servicing and Origination Revenue | 767 | $ 749 | |
Income Before Income Taxes | $ 948.1 | $ 1,197.5 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | $ 463,089 | $ 448,127 | $ 416,047 | $ 438,867 | $ 451,321 | $ 425,524 | $ 403,805 | $ 383,573 | $ 1,766,130 | $ 1,664,223 | $ 1,519,679 | |
Interest expense | 247,013 | 245,902 | 228,004 | 212,832 | 185,324 | 162,806 | 133,916 | 124,387 | 933,751 | 606,433 | 460,865 | |
Net Interest Income | 216,076 | 202,225 | 188,043 | 226,035 | 265,997 | 262,718 | 269,889 | 259,186 | 832,379 | 1,057,790 | 1,058,814 | |
Impairment | 5,593 | (5,123) | 22,311 | 12,796 | 39,315 | 9,360 | 16,289 | 25,677 | 35,577 | 90,641 | 86,092 | |
Servicing revenue, net | 251,793 | 53,050 | (85,537) | 165,853 | (10,189) | 175,355 | 146,193 | 217,236 | 385,159 | 528,595 | 424,349 | |
Gain on originated mortgage loans, held-for-sale, net | 180,520 | 126,747 | 101,018 | 67,170 | 49,091 | 47,054 | 0 | 0 | 475,455 | 96,145 | 0 | |
Other income (loss) | (53,826) | 102,640 | (25,947) | (63,966) | (134,477) | (84,620) | (96,812) | 264,524 | (41,099) | (51,385) | 207,786 | |
Operating expenses | 335,803 | 250,565 | 201,863 | 180,387 | 189,727 | 192,107 | 119,753 | 107,817 | 968,618 | 609,404 | 422,577 | |
Income (Loss) Before Income Taxes | 253,167 | 239,220 | (46,597) | 201,909 | (58,620) | 199,040 | 183,228 | 607,452 | 647,699 | 931,100 | 1,182,280 | |
Income tax (benefit) expense | 22,786 | (5,440) | (21,577) | 45,997 | (67,474) | 3,563 | (2,608) | (6,912) | 41,766 | (73,431) | 167,628 | |
Net Income (Loss) | 230,381 | 244,660 | (25,020) | 155,912 | 8,854 | 195,477 | 185,836 | 614,364 | 605,933 | 1,004,531 | 1,014,652 | |
Noncontrolling interests in income (loss) of consolidated subsidiaries | 10,658 | 14,738 | 6,923 | 10,318 | 8,506 | 10,869 | 11,078 | 10,111 | 42,637 | 40,564 | 57,119 | |
Dividends on Preferred Stock | 7,943 | 5,338 | 0 | 0 | 13,281 | 0 | 0 | |||||
Net income (loss) attributable to common stockholders | 211,780 | $ 224,584 | $ (31,943) | $ 145,594 | 348 | $ 184,608 | $ 174,758 | $ 604,253 | 550,015 | 963,967 | 957,533 | |
Investments | 34,337,137 | 23,318,701 | 34,337,137 | 23,318,701 | ||||||||
Cash and cash equivalents | 528,737 | 251,058 | 528,737 | 251,058 | ||||||||
Restricted cash | 162,197 | 164,020 | 162,197 | 164,020 | ||||||||
Other assets | 9,805,646 | 7,932,589 | 9,805,646 | 7,932,589 | ||||||||
Goodwill | 29,737 | 24,645 | 29,737 | 24,645 | ||||||||
Total assets | 44,863,454 | 31,691,013 | 44,863,454 | 31,691,013 | ||||||||
Debt | 35,636,373 | 22,656,235 | 35,636,373 | 22,656,235 | 15,746,530 | |||||||
Other liabilities | 1,990,821 | 2,946,483 | 1,990,821 | 2,946,483 | ||||||||
Total liabilities | 37,627,194 | 25,602,718 | 37,627,194 | 25,602,718 | ||||||||
Total equity | 7,236,260 | 6,088,295 | 7,236,260 | 6,088,295 | 4,796,162 | $ 3,468,177 | ||||||
Noncontrolling interests in equity of consolidated subsidiaries | 78,550 | 90,625 | 78,550 | 90,625 | ||||||||
Total New Residential stockholders’ equity | 7,157,710 | 5,997,670 | 7,157,710 | 5,997,670 | ||||||||
Investments in equity method investees | 165,848 | 186,258 | 165,848 | 186,258 | ||||||||
Operating Segments | Servicing and Origination | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 606,404 | 723,965 | 713,413 | |||||||||
Interest expense | 289,286 | 242,345 | 233,587 | |||||||||
Net Interest Income | 317,118 | 481,620 | 479,826 | |||||||||
Impairment | 0 | 0 | 0 | |||||||||
Servicing revenue, net | 385,159 | 528,595 | 424,349 | |||||||||
Gain on originated mortgage loans, held-for-sale, net | 399,912 | 87,388 | 0 | |||||||||
Other income (loss) | (129,032) | 14,283 | 174,561 | |||||||||
Operating expenses | 700,393 | 360,889 | 186,330 | |||||||||
Income (Loss) Before Income Taxes | 272,764 | 750,997 | 892,406 | |||||||||
Income tax (benefit) expense | 70,729 | (8,364) | 166,186 | |||||||||
Net Income (Loss) | 202,035 | 759,361 | 726,220 | |||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 10,486 | 3,577 | 11,227 | |||||||||
Dividends on Preferred Stock | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to common stockholders | 191,549 | 755,784 | 714,993 | |||||||||
Investments | 8,187,881 | 6,468,975 | 8,187,881 | 6,468,975 | ||||||||
Cash and cash equivalents | 428,176 | 236,871 | 428,176 | 236,871 | ||||||||
Restricted cash | 129,827 | 126,401 | 129,827 | 126,401 | ||||||||
Other assets | 3,875,554 | 3,510,192 | 3,875,554 | 3,510,192 | ||||||||
Goodwill | 29,737 | 24,645 | 29,737 | 24,645 | ||||||||
Total assets | 12,651,175 | 10,367,084 | 12,651,175 | 10,367,084 | ||||||||
Debt | 7,984,192 | 6,664,335 | 7,984,192 | 6,664,335 | ||||||||
Other liabilities | 620,221 | 520,215 | 620,221 | 520,215 | ||||||||
Total liabilities | 8,604,413 | 7,184,550 | 8,604,413 | 7,184,550 | ||||||||
Total equity | 4,046,762 | 3,182,534 | 4,046,762 | 3,182,534 | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 56,379 | 60,064 | 56,379 | 60,064 | ||||||||
Total New Residential stockholders’ equity | 3,990,383 | 3,122,470 | 3,990,383 | 3,122,470 | ||||||||
Investments in equity method investees | 165,848 | 147,964 | 165,848 | 147,964 | ||||||||
Operating Segments | Consumer Loans | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 165,877 | 206,321 | 263,844 | |||||||||
Interest expense | 32,558 | 42,563 | 52,808 | |||||||||
Net Interest Income | 133,319 | 163,758 | 211,036 | |||||||||
Impairment | 31,010 | 48,563 | 63,165 | |||||||||
Servicing revenue, net | 0 | 0 | 0 | |||||||||
Gain on originated mortgage loans, held-for-sale, net | 0 | 0 | 0 | |||||||||
Other income (loss) | (9,999) | 9,965 | 28,075 | |||||||||
Operating expenses | 22,540 | 35,230 | 43,552 | |||||||||
Income (Loss) Before Income Taxes | 69,770 | 89,930 | 132,394 | |||||||||
Income tax (benefit) expense | (502) | 212 | 170 | |||||||||
Net Income (Loss) | 70,272 | 89,718 | 132,224 | |||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 32,151 | 36,987 | 45,892 | |||||||||
Dividends on Preferred Stock | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to common stockholders | 38,121 | 52,731 | 86,332 | |||||||||
Investments | 827,545 | 1,110,496 | 827,545 | 1,110,496 | ||||||||
Cash and cash equivalents | 6,514 | 8,279 | 6,514 | 8,279 | ||||||||
Restricted cash | 32,370 | 37,619 | 32,370 | 37,619 | ||||||||
Other assets | 78,740 | 64,802 | 78,740 | 64,802 | ||||||||
Goodwill | 0 | 0 | 0 | 0 | ||||||||
Total assets | 945,169 | 1,221,196 | 945,169 | 1,221,196 | ||||||||
Debt | 824,222 | 1,033,900 | 824,222 | 1,033,900 | ||||||||
Other liabilities | 16,795 | 13,572 | 16,795 | 13,572 | ||||||||
Total liabilities | 841,017 | 1,047,472 | 841,017 | 1,047,472 | ||||||||
Total equity | 104,152 | 173,724 | 104,152 | 173,724 | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 22,171 | 30,561 | 22,171 | 30,561 | ||||||||
Total New Residential stockholders’ equity | 81,981 | 143,163 | 81,981 | 143,163 | ||||||||
Investments in equity method investees | 0 | 38,294 | 0 | 38,294 | ||||||||
Operating Segments | Origination | Servicing and Origination | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 42,166 | 12,430 | 0 | |||||||||
Interest expense | 41,949 | 10,018 | 0 | |||||||||
Net Interest Income | 217 | 2,412 | 0 | |||||||||
Impairment | 0 | 0 | 0 | |||||||||
Servicing revenue, net | (1,605) | (450) | 0 | |||||||||
Gain on originated mortgage loans, held-for-sale, net | 397,252 | 100,160 | 0 | |||||||||
Other income (loss) | 9,340 | 2,067 | 0 | |||||||||
Operating expenses | 258,729 | 96,724 | 0 | |||||||||
Income (Loss) Before Income Taxes | 146,475 | 7,465 | 0 | |||||||||
Income tax (benefit) expense | 39,768 | 0 | 0 | |||||||||
Net Income (Loss) | 106,707 | 7,465 | 0 | |||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 6,231 | 1,599 | 0 | |||||||||
Dividends on Preferred Stock | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to common stockholders | 100,476 | 5,866 | 0 | |||||||||
Investments | 1,414,528 | 608,701 | 1,414,528 | 608,701 | ||||||||
Cash and cash equivalents | 77,237 | 40,741 | 77,237 | 40,741 | ||||||||
Restricted cash | 6,730 | 4,292 | 6,730 | 4,292 | ||||||||
Other assets | 250,709 | 43,412 | 250,709 | 43,412 | ||||||||
Goodwill | 11,836 | 11,836 | 11,836 | 11,836 | ||||||||
Total assets | 1,761,040 | 708,982 | 1,761,040 | 708,982 | ||||||||
Debt | 1,304,621 | 555,423 | 1,304,621 | 555,423 | ||||||||
Other liabilities | 117,328 | 468 | 117,328 | 468 | ||||||||
Total liabilities | 1,421,949 | 555,891 | 1,421,949 | 555,891 | ||||||||
Total equity | 339,091 | 153,091 | 339,091 | 153,091 | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 11,354 | 7,998 | 11,354 | 7,998 | ||||||||
Total New Residential stockholders’ equity | 327,737 | 145,093 | 327,737 | 145,093 | ||||||||
Investments in equity method investees | 0 | 0 | 0 | 0 | ||||||||
Operating Segments | Servicing | Servicing and Origination | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 34,013 | 8,148 | 0 | |||||||||
Interest expense | 1,043 | 264 | 0 | |||||||||
Net Interest Income | 32,970 | 7,884 | 0 | |||||||||
Impairment | 0 | 0 | 0 | |||||||||
Servicing revenue, net | 184,763 | 63,006 | 0 | |||||||||
Gain on originated mortgage loans, held-for-sale, net | 1,029 | 0 | 0 | |||||||||
Other income (loss) | 5,859 | 0 | 0 | |||||||||
Operating expenses | 145,813 | 52,251 | 0 | |||||||||
Income (Loss) Before Income Taxes | 78,808 | 18,639 | 0 | |||||||||
Income tax (benefit) expense | 21,396 | 0 | 0 | |||||||||
Net Income (Loss) | 57,412 | 18,639 | 0 | |||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | |||||||||
Dividends on Preferred Stock | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to common stockholders | 57,412 | 18,639 | 0 | |||||||||
Investments | 0 | 0 | 0 | 0 | ||||||||
Cash and cash equivalents | 32,225 | 35,886 | 32,225 | 35,886 | ||||||||
Restricted cash | 15,769 | 2,416 | 15,769 | 2,416 | ||||||||
Other assets | 204,723 | 84,432 | 204,723 | 84,432 | ||||||||
Goodwill | 12,809 | 12,809 | 12,809 | 12,809 | ||||||||
Total assets | 265,526 | 135,543 | 265,526 | 135,543 | ||||||||
Debt | 33,412 | 28,639 | 33,412 | 28,639 | ||||||||
Other liabilities | 51,264 | 4,591 | 51,264 | 4,591 | ||||||||
Total liabilities | 84,676 | 33,230 | 84,676 | 33,230 | ||||||||
Total equity | 180,850 | 102,313 | 180,850 | 102,313 | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||||
Total New Residential stockholders’ equity | 180,850 | 102,313 | 180,850 | 102,313 | ||||||||
Investments in equity method investees | 0 | 0 | 0 | 0 | ||||||||
Operating Segments | MSR Related Investments | Servicing and Origination | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 530,225 | 703,387 | 713,413 | |||||||||
Interest expense | 246,294 | 232,063 | 233,587 | |||||||||
Net Interest Income | 283,931 | 471,324 | 479,826 | |||||||||
Impairment | 0 | 0 | 0 | |||||||||
Servicing revenue, net | 250,580 | 476,224 | 424,349 | |||||||||
Gain on originated mortgage loans, held-for-sale, net | 52,991 | 4,396 | 0 | |||||||||
Other income (loss) | (144,231) | 12,216 | 174,561 | |||||||||
Operating expenses | 344,430 | 222,099 | 186,330 | |||||||||
Income (Loss) Before Income Taxes | 98,841 | 742,061 | 892,406 | |||||||||
Income tax (benefit) expense | 23,744 | (8,364) | 166,186 | |||||||||
Net Income (Loss) | 75,097 | 750,425 | 726,220 | |||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 4,255 | 1,978 | 11,227 | |||||||||
Dividends on Preferred Stock | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to common stockholders | 70,842 | 748,447 | 714,993 | |||||||||
Investments | 6,773,353 | 5,860,274 | 6,773,353 | 5,860,274 | ||||||||
Cash and cash equivalents | 318,714 | 160,244 | 318,714 | 160,244 | ||||||||
Restricted cash | 107,328 | 119,693 | 107,328 | 119,693 | ||||||||
Other assets | 3,420,122 | 3,382,348 | 3,420,122 | 3,382,348 | ||||||||
Goodwill | 5,092 | 0 | 5,092 | 0 | ||||||||
Total assets | 10,624,609 | 9,522,559 | 10,624,609 | 9,522,559 | ||||||||
Debt | 6,646,159 | 6,080,273 | 6,646,159 | 6,080,273 | ||||||||
Other liabilities | 451,629 | 515,156 | 451,629 | 515,156 | ||||||||
Total liabilities | 7,097,788 | 6,595,429 | 7,097,788 | 6,595,429 | ||||||||
Total equity | 3,526,821 | 2,927,130 | 3,526,821 | 2,927,130 | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 45,025 | 52,066 | 45,025 | 52,066 | ||||||||
Total New Residential stockholders’ equity | 3,481,796 | 2,875,064 | 3,481,796 | 2,875,064 | ||||||||
Investments in equity method investees | 165,848 | 147,964 | 165,848 | 147,964 | ||||||||
Operating Segments | Real Estate Securities | Residential Securities and Loans | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 744,145 | 573,539 | 431,706 | |||||||||
Interest expense | 453,609 | 240,615 | 122,997 | |||||||||
Net Interest Income | 290,536 | 332,924 | 308,709 | |||||||||
Impairment | 25,174 | 30,017 | 10,334 | |||||||||
Servicing revenue, net | 0 | 0 | 0 | |||||||||
Gain on originated mortgage loans, held-for-sale, net | 0 | 0 | 0 | |||||||||
Other income (loss) | 20,929 | (72,926) | (16,371) | |||||||||
Operating expenses | 3,160 | 1,554 | 1,471 | |||||||||
Income (Loss) Before Income Taxes | 283,131 | 228,427 | 280,533 | |||||||||
Income tax (benefit) expense | 0 | 0 | 0 | |||||||||
Net Income (Loss) | 283,131 | 228,427 | 280,533 | |||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | |||||||||
Dividends on Preferred Stock | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to common stockholders | 283,131 | 228,427 | 280,533 | |||||||||
Investments | 19,477,728 | 11,636,581 | 19,477,728 | 11,636,581 | ||||||||
Cash and cash equivalents | 87,359 | 49 | 87,359 | 49 | ||||||||
Restricted cash | 0 | 0 | 0 | 0 | ||||||||
Other assets | 5,590,456 | 4,080,202 | 5,590,456 | 4,080,202 | ||||||||
Goodwill | 0 | 0 | 0 | 0 | ||||||||
Total assets | 25,155,543 | 15,716,832 | 25,155,543 | 15,716,832 | ||||||||
Debt | 22,151,110 | 11,615,364 | 22,151,110 | 11,615,364 | ||||||||
Other liabilities | 980,415 | 2,111,868 | 980,415 | 2,111,868 | ||||||||
Total liabilities | 23,131,525 | 13,727,232 | 23,131,525 | 13,727,232 | ||||||||
Total equity | 2,024,018 | 1,989,600 | 2,024,018 | 1,989,600 | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||||
Total New Residential stockholders’ equity | 2,024,018 | 1,989,600 | 2,024,018 | 1,989,600 | ||||||||
Investments in equity method investees | 0 | 0 | 0 | 0 | ||||||||
Operating Segments | Residential Mortgage Loans | Residential Securities and Loans | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 249,673 | 158,892 | 110,087 | |||||||||
Interest expense | 158,298 | 80,910 | 51,473 | |||||||||
Net Interest Income | 91,375 | 77,982 | 58,614 | |||||||||
Impairment | (20,607) | 12,061 | 12,593 | |||||||||
Servicing revenue, net | 0 | 0 | 0 | |||||||||
Gain on originated mortgage loans, held-for-sale, net | 75,543 | 8,757 | 0 | |||||||||
Other income (loss) | 75,385 | 7,699 | 16,175 | |||||||||
Operating expenses | 52,745 | 32,424 | 31,529 | |||||||||
Income (Loss) Before Income Taxes | 210,165 | 49,953 | 30,667 | |||||||||
Income tax (benefit) expense | (28,461) | (65,279) | 1,272 | |||||||||
Net Income (Loss) | 238,626 | 115,232 | 29,395 | |||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | |||||||||
Dividends on Preferred Stock | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to common stockholders | 238,626 | 115,232 | 29,395 | |||||||||
Investments | 5,843,983 | 4,102,649 | 5,843,983 | 4,102,649 | ||||||||
Cash and cash equivalents | 1,180 | 927 | 1,180 | 927 | ||||||||
Restricted cash | 0 | 0 | 0 | 0 | ||||||||
Other assets | 174,940 | 131,282 | 174,940 | 131,282 | ||||||||
Goodwill | 0 | 0 | 0 | 0 | ||||||||
Total assets | 6,020,103 | 4,234,858 | 6,020,103 | 4,234,858 | ||||||||
Debt | 4,676,849 | 3,342,636 | 4,676,849 | 3,342,636 | ||||||||
Other liabilities | 55,121 | 8,916 | 55,121 | 8,916 | ||||||||
Total liabilities | 4,731,970 | 3,351,552 | 4,731,970 | 3,351,552 | ||||||||
Total equity | 1,288,133 | 883,306 | 1,288,133 | 883,306 | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||||
Total New Residential stockholders’ equity | 1,288,133 | 883,306 | 1,288,133 | 883,306 | ||||||||
Investments in equity method investees | 0 | 0 | 0 | 0 | ||||||||
Elimination | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 0 | 0 | 0 | |||||||||
Interest expense | 0 | 0 | 0 | |||||||||
Net Interest Income | 0 | 0 | 0 | |||||||||
Impairment | 0 | 0 | 0 | |||||||||
Servicing revenue, net | (48,579) | (10,185) | 0 | |||||||||
Gain on originated mortgage loans, held-for-sale, net | (51,360) | (17,168) | 0 | |||||||||
Other income (loss) | 0 | 0 | 0 | |||||||||
Operating expenses | (48,579) | (10,185) | 0 | |||||||||
Income (Loss) Before Income Taxes | (51,360) | (17,168) | 0 | |||||||||
Income tax (benefit) expense | (14,179) | 0 | 0 | |||||||||
Net Income (Loss) | (37,181) | (17,168) | 0 | |||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | |||||||||
Dividends on Preferred Stock | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to common stockholders | (37,181) | (17,168) | 0 | |||||||||
Investments | 0 | 0 | 0 | 0 | ||||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||||||||
Restricted cash | 0 | 0 | 0 | 0 | ||||||||
Other assets | 0 | 0 | 0 | 0 | ||||||||
Goodwill | 0 | 0 | 0 | 0 | ||||||||
Total assets | 0 | 0 | 0 | 0 | ||||||||
Debt | 0 | 0 | 0 | 0 | ||||||||
Other liabilities | 0 | 0 | 0 | 0 | ||||||||
Total liabilities | 0 | 0 | 0 | 0 | ||||||||
Total equity | 0 | 0 | 0 | 0 | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||||
Total New Residential stockholders’ equity | 0 | 0 | 0 | 0 | ||||||||
Investments in equity method investees | 0 | 0 | 0 | 0 | ||||||||
Corporate | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 31 | 1,506 | 629 | |||||||||
Interest expense | 0 | 0 | 0 | |||||||||
Net Interest Income | 31 | 1,506 | 629 | |||||||||
Impairment | 0 | 0 | 0 | |||||||||
Servicing revenue, net | 0 | 0 | 0 | |||||||||
Gain on originated mortgage loans, held-for-sale, net | 0 | 0 | 0 | |||||||||
Other income (loss) | 1,618 | (10,406) | 5,346 | |||||||||
Operating expenses | 189,780 | 179,307 | 159,695 | |||||||||
Income (Loss) Before Income Taxes | (188,131) | (188,207) | (153,720) | |||||||||
Income tax (benefit) expense | 0 | 0 | 0 | |||||||||
Net Income (Loss) | (188,131) | (188,207) | (153,720) | |||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | |||||||||
Dividends on Preferred Stock | 13,281 | 0 | 0 | |||||||||
Net income (loss) attributable to common stockholders | (201,412) | (188,207) | $ (153,720) | |||||||||
Investments | 0 | 0 | 0 | 0 | ||||||||
Cash and cash equivalents | 5,508 | 4,932 | 5,508 | 4,932 | ||||||||
Restricted cash | 0 | 0 | 0 | 0 | ||||||||
Other assets | 85,956 | 146,111 | 85,956 | 146,111 | ||||||||
Goodwill | 0 | 0 | 0 | 0 | ||||||||
Total assets | 91,464 | 151,043 | 91,464 | 151,043 | ||||||||
Debt | 0 | 0 | 0 | 0 | ||||||||
Other liabilities | 318,269 | 291,912 | 318,269 | 291,912 | ||||||||
Total liabilities | 318,269 | 291,912 | 318,269 | 291,912 | ||||||||
Total equity | (226,805) | (140,869) | (226,805) | (140,869) | ||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||||
Total New Residential stockholders’ equity | (226,805) | (140,869) | (226,805) | (140,869) | ||||||||
Investments in equity method investees | $ 0 | $ 0 | $ 0 | $ 0 |
INVESTMENTS IN EXCESS MORTGAG_3
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Activity Related to the Carrying Value of Investments in Excess MSRs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Carrying Value of Investments in Excess MSRs | ||
Beginning balance | $ 4,528,604 | $ 2,334,232 |
Purchases | (1,425,201) | (1,171,290) |
Ending balance | 5,686,233 | 4,528,604 |
Excess MSRs | ||
Carrying Value of Investments in Excess MSRs | ||
Beginning balance | 447,860 | 1,173,713 |
Purchases | 0 | 0 |
Interest income | 32,647 | 44,440 |
Other income | 3,851 | 46,861 |
Proceeds from repayments | (84,031) | (127,793) |
Proceeds from sales | (10,075) | (19,084) |
Change in fair value | (10,505) | (58,656) |
Ocwen Transaction (Note 6) | (611,621) | |
Ending balance | 379,747 | 447,860 |
Excess MSRs | Mr. Cooper | ||
Carrying Value of Investments in Excess MSRs | ||
Beginning balance | 445,328 | 532,233 |
Purchases | 0 | 0 |
Interest income | 32,587 | 44,386 |
Other income | 3,851 | 6,444 |
Proceeds from repayments | (83,612) | (100,215) |
Proceeds from sales | (10,075) | (19,084) |
Change in fair value | (10,387) | (18,436) |
Ocwen Transaction (Note 6) | 0 | |
Ending balance | 377,692 | 445,328 |
Excess MSRs | SLS | ||
Carrying Value of Investments in Excess MSRs | ||
Beginning balance | 2,532 | 2,913 |
Purchases | 0 | 0 |
Interest income | 60 | 54 |
Other income | 0 | 0 |
Proceeds from repayments | (419) | (632) |
Proceeds from sales | 0 | 0 |
Change in fair value | (118) | 197 |
Ocwen Transaction (Note 6) | 0 | |
Ending balance | 2,055 | 2,532 |
Excess MSRs | Ocwen | ||
Carrying Value of Investments in Excess MSRs | ||
Beginning balance | 0 | 638,567 |
Purchases | 0 | 0 |
Interest income | 0 | 0 |
Other income | 0 | 40,417 |
Proceeds from repayments | 0 | (26,946) |
Proceeds from sales | 0 | 0 |
Change in fair value | 0 | (40,417) |
Ocwen Transaction (Note 6) | (611,621) | |
Ending balance | $ 0 | $ 0 |
INVESTMENTS IN EXCESS MORTGAG_4
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Summary of Investments in Excess MSRs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment [Line Items] | |||
Weighted Average Life (Years) | 24 days | ||
Carrying Value | $ 5,686,233 | $ 4,528,604 | $ 2,334,232 |
Changes in fair value recorded in other income | (10,505) | (58,656) | $ 4,322 |
Corporate Joint Venture | Consumer loan bonds | |||
Investment [Line Items] | |||
UPB of Underlying Mortgages | 31,442,267 | 40,096,998 | |
Excess MSRs | |||
Investment [Line Items] | |||
UPB of Underlying Mortgages | $ 88,345,237 | $ 106,426,363 | |
Weighted Average Life (Years) | 5 years 10 months 24 days | 6 years 1 month 6 days | |
Amortized Cost Basis | $ 303,478 | $ 361,327 | |
Carrying Value | 379,747 | 447,860 | |
Excess MSRs | Agency | |||
Investment [Line Items] | |||
UPB of Underlying Mortgages | $ 43,310,917 | $ 52,368,290 | |
Weighted Average Life (Years) | 5 years 6 months | 5 years 7 months 6 days | |
Amortized Cost Basis | $ 178,603 | $ 218,797 | |
Carrying Value | $ 209,633 | $ 257,387 | |
Excess MSRs | Agency | Minimum | |||
Investment [Line Items] | |||
Interest in Excess MSR | 32.50% | 32.50% | |
Excess MSRs | Agency | Maximum | |||
Investment [Line Items] | |||
Interest in Excess MSR | 66.70% | 66.70% | |
Excess MSRs | Agency | Weighted Average | |||
Investment [Line Items] | |||
Interest in Excess MSR | 53.30% | 53.30% | |
Excess MSRs | Agency | Mr. Cooper | Minimum | |||
Investment [Line Items] | |||
Interest in Excess MSR | 20.00% | 20.00% | |
Excess MSRs | Agency | Mr. Cooper | Maximum | |||
Investment [Line Items] | |||
Interest in Excess MSR | 35.00% | 35.00% | |
Excess MSRs | Agency | Fortress-managed funds | Minimum | |||
Investment [Line Items] | |||
Interest in Excess MSR | 0.00% | 0.00% | |
Excess MSRs | Agency | Fortress-managed funds | Maximum | |||
Investment [Line Items] | |||
Interest in Excess MSR | 40.00% | 40.00% | |
Excess MSRs | Non-Agency | |||
Investment [Line Items] | |||
UPB of Underlying Mortgages | $ 45,034,320 | $ 54,058,073 | |
Weighted Average Life (Years) | 6 years 6 months | 5 years 9 months 18 days | |
Amortized Cost Basis | $ 124,875 | $ 142,530 | |
Carrying Value | $ 170,114 | $ 190,473 | |
Excess MSRs | Non-Agency | Minimum | |||
Investment [Line Items] | |||
Interest in Excess MSR | 33.30% | 33.30% | |
Excess MSRs | Non-Agency | Maximum | |||
Investment [Line Items] | |||
Interest in Excess MSR | 100.00% | 100.00% | |
Excess MSRs | Non-Agency | Weighted Average | |||
Investment [Line Items] | |||
Interest in Excess MSR | 59.40% | 59.40% | |
Excess MSRs | Non-Agency | Mr. Cooper | Minimum | |||
Investment [Line Items] | |||
Interest in Excess MSR | 0.00% | 0.00% | |
Excess MSRs | Non-Agency | Mr. Cooper | Maximum | |||
Investment [Line Items] | |||
Interest in Excess MSR | 33.30% | 33.30% | |
Excess MSRs | Non-Agency | Fortress-managed funds | Minimum | |||
Investment [Line Items] | |||
Interest in Excess MSR | 0.00% | ||
Excess MSRs | Non-Agency | Fortress-managed funds | Maximum | |||
Investment [Line Items] | |||
Interest in Excess MSR | 50.00% |
INVESTMENTS IN EXCESS MORTGAG_5
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Narrative (Details) - MSRs | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investment [Line Items] | ||
Discount rate | 7.80% | 8.70% |
Excess MSRs Investees | ||
Investment [Line Items] | ||
Discount rate | 7.80% | 8.80% |
INVESTMENTS IN EXCESS MORTGAG_6
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Summary of Financial Results of Excess MSR Joint Ventures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of MSRs [Line Items] | |||
New Residential’s investment | $ 0 | $ 38,294 | |
Excess MSRs Investees | |||
Schedule of MSRs [Line Items] | |||
Excess MSR assets | 226,843 | 269,203 | |
Other assets | 25,035 | 27,411 | |
Other liabilities | (687) | (687) | |
Equity | 251,191 | 295,927 | |
New Residential’s investment | $ 125,596 | $ 147,964 | |
New Residential’s ownership | 50.00% | 50.00% | |
Interest income | $ 23,872 | $ 26,363 | $ 27,450 |
Other income (loss) | (10,208) | (9,649) | (2,149) |
Expenses | (64) | 0 | (68) |
Net income | $ 13,600 | $ 16,714 | $ 25,233 |
INVESTMENTS IN EXCESS MORTGAG_7
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Change in Equity Method Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage Servicing Rights [Roll Forward] | |||
Balance at beginning of period | $ 38,294 | ||
Distributions of earnings from equity method investees | (8,999) | $ (11,059) | $ (13,668) |
Distributions of capital from equity method investees | (92,748) | (300,056) | (393,722) |
Balance at end of period | 0 | 38,294 | |
Recurring Basis | |||
Mortgage Servicing Rights [Roll Forward] | |||
Balance at beginning of period | 147,964 | 171,765 | |
Contributions to equity method investees | 0 | 0 | |
Distributions of earnings from equity method investees | (8,999) | (11,059) | |
Distributions of capital from equity method investees | (20,169) | (21,099) | |
Change in fair value of investments in equity method investees | 6,800 | 8,357 | |
Balance at end of period | $ 125,596 | $ 147,964 | $ 171,765 |
INVESTMENTS IN EXCESS MORTGAG_8
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Summary of Excess MSRs Made Through Equity Method Investees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of MSRs [Line Items] | |||
Carrying Value | $ 5,686,233 | $ 4,528,604 | $ 2,334,232 |
Weighted Average Life (Years) | 24 days | ||
Excess MSRs Investees | |||
Schedule of MSRs [Line Items] | |||
New Residential Interest in Investees | 50.00% | 50.00% | |
Excess MSRs Investees | Agency | |||
Schedule of MSRs [Line Items] | |||
New Residential Interest in Investees | 50.00% | ||
Excess MSRs Investees | Agency | Original and Recaptured Pools | |||
Schedule of MSRs [Line Items] | |||
Unpaid Principal Balance | $ 33,592,554 | $ 41,707,963 | |
Investee Interest in Excess MSR | 66.70% | 66.70% | |
New Residential Interest in Investees | 50.00% | 50.00% | |
Amortized Cost Basis | $ 168,807 | $ 198,261 | |
Carrying Value | $ 226,843 | $ 269,203 | |
Weighted Average Life (Years) | 5 years 4 months 24 days | 5 years 6 months |
INVESTMENTS IN MORTGAGE SERVI_3
INVESTMENTS IN MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Narrative (Details) - USD ($) $ in Millions | Jan. 18, 2018 | Dec. 31, 2019 | Aug. 06, 2019 | May 21, 2019 | Apr. 02, 2019 | Feb. 28, 2019 | Jan. 01, 2018 | Jul. 23, 2017 |
Schedule of MSRs [Line Items] | ||||||||
Subservicer percent of UPB | 28.60% | |||||||
Mortgage Loans Subserviced | ||||||||
Schedule of MSRs [Line Items] | ||||||||
UPB of Underlying Mortgages | $ 71,200 | |||||||
Subservicing revenue | $ 137.4 | |||||||
PHH Mortgage Corporation | ||||||||
Schedule of MSRs [Line Items] | ||||||||
Subservicer percent of UPB | 23.50% | |||||||
Mr. Cooper | ||||||||
Schedule of MSRs [Line Items] | ||||||||
Subservicer percent of UPB | 19.90% | |||||||
Mr. Cooper | MSRs | ||||||||
Schedule of MSRs [Line Items] | ||||||||
UPB of Underlying Mortgages | $ 9,500 | |||||||
LoanCare | ||||||||
Schedule of MSRs [Line Items] | ||||||||
Subservicer percent of UPB | 17.90% | |||||||
Ditech Financial LLC | ||||||||
Schedule of MSRs [Line Items] | ||||||||
Subservicer percent of UPB | 9.10% | |||||||
Flagstar | ||||||||
Schedule of MSRs [Line Items] | ||||||||
Subservicer percent of UPB | 1.00% | |||||||
Ocwen | ||||||||
Schedule of MSRs [Line Items] | ||||||||
UPB of Underlying Mortgages | $ 86,800 | $ 110,000 | ||||||
Payments to acquire finance receivables | $ 279.6 | |||||||
Ocwen | New Residential Mortgage LLC | MSRs | ||||||||
Schedule of MSRs [Line Items] | ||||||||
Unpaid Principal Balance of underlying loans transferred | $ 66,700 | |||||||
United Shore | MSRs | ||||||||
Schedule of MSRs [Line Items] | ||||||||
UPB of Underlying Mortgages | $ 23,700 | $ 8,200 | ||||||
Quicken | MSRs | ||||||||
Schedule of MSRs [Line Items] | ||||||||
UPB of Underlying Mortgages | $ 29,100 |
INVESTMENTS IN MORTGAGE SERVI_4
INVESTMENTS IN MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Rollforward of Carrying Value of Investments In MSRs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage Servicing Rights [Roll Forward] | |||
Beginning balance | $ 4,528,604 | $ 2,334,232 | |
Purchases | 1,425,201 | 1,171,290 | |
Transfer in (out) | 0 | 0 | |
New Ocwen Agreements | 1,017,993 | ||
Other transfers | (410) | ||
Originations | 374,450 | 35,311 | |
Prepayments | (93,875) | ||
Proceeds from sales | (24,528) | (13,248) | |
Amortization of servicing rights | (740,843) | (455,771) | |
Change in valuation inputs and assumptions | (166,436) | 291,185 | |
(Gain)/loss on sales | (3,100) | (3,700) | |
Ending balance | 5,686,233 | 4,528,604 | $ 2,334,232 |
Shellpoint Acquisition | |||
Mortgage Servicing Rights [Roll Forward] | |||
Ditech Acquisition | 151,312 | ||
Ditech Acquisition | |||
Mortgage Servicing Rights [Roll Forward] | |||
Ditech Acquisition | 387,170 | ||
MSRs | |||
Mortgage Servicing Rights [Roll Forward] | |||
Beginning balance | 2,884,100 | 1,735,504 | |
Purchases | 690,049 | 1,042,933 | |
Transfer in (out) | 367,121 | 124,652 | |
New Ocwen Agreements | 0 | ||
Other transfers | (410) | ||
Originations | 374,450 | 35,311 | |
Prepayments | (11,625) | ||
Proceeds from sales | (1,539) | (5,776) | 0 |
Amortization of servicing rights | (537,111) | (258,068) | |
Change in valuation inputs and assumptions | (187,530) | 61,149 | |
(Gain)/loss on sales | 3,285 | (2,917) | |
Ending balance | 3,967,960 | 2,884,100 | 1,735,504 |
MSRs | Shellpoint Acquisition | |||
Mortgage Servicing Rights [Roll Forward] | |||
Ditech Acquisition | 151,312 | ||
MSRs | Ditech Acquisition | |||
Mortgage Servicing Rights [Roll Forward] | |||
Ditech Acquisition | 387,170 | ||
Mortgage Servicing Rights Financing Receivable | |||
Mortgage Servicing Rights [Roll Forward] | |||
Beginning balance | 4,528,604 | ||
Ending balance | 5,686,233 | 4,528,604 | |
New Residential Mortgage LLC | Mortgage Servicing Rights Financing Receivable | |||
Mortgage Servicing Rights [Roll Forward] | |||
Beginning balance | 1,644,504 | 598,728 | |
Purchases | 735,152 | 128,357 | |
Transfer in (out) | (367,121) | (124,652) | |
New Ocwen Agreements | 1,017,993 | ||
Other transfers | 0 | ||
Originations | 0 | 0 | |
Prepayments | (82,250) | ||
Proceeds from sales | (22,989) | (7,472) | |
Amortization of servicing rights | (203,732) | (197,703) | |
Change in valuation inputs and assumptions | 21,094 | 230,036 | 109,584 |
(Gain)/loss on sales | (6,385) | (783) | 0 |
Ending balance | 1,718,273 | 1,644,504 | $ 598,728 |
New Residential Mortgage LLC | Mortgage Servicing Rights Financing Receivable | Shellpoint Acquisition | |||
Mortgage Servicing Rights [Roll Forward] | |||
Ditech Acquisition | 0 | ||
New Residential Mortgage LLC | Mortgage Servicing Rights Financing Receivable | Ditech Acquisition | |||
Mortgage Servicing Rights [Roll Forward] | |||
Ditech Acquisition | $ 0 | ||
New Penn | MSRs | |||
Mortgage Servicing Rights [Roll Forward] | |||
Ditech Acquisition | $ 48,300 |
INVESTMENTS IN MORTGAGE SERVI_5
INVESTMENTS IN MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Servicing Fee Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Investments in Mortgage Servicing Rights [Line Items] | |||||||||||
Less: subservicing expense | $ (227,482) | $ (176,784) | $ (166,081) | ||||||||
Change in valuation inputs and assumptions | (166,436) | 291,185 | |||||||||
(Gain)/loss on sales | (3,100) | (3,700) | |||||||||
Servicing revenue, net | $ 251,793 | $ 53,050 | $ (85,537) | $ 165,853 | $ (10,189) | $ 175,355 | $ 146,193 | $ 217,236 | 385,159 | 528,595 | 424,349 |
Change in fair value of investments in mortgage servicing rights financing receivables | (189,023) | 31,550 | 66,394 | ||||||||
MSRs | |||||||||||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | |||||||||||
Servicing fee revenue | 899,623 | 589,546 | 412,971 | ||||||||
Ancillary and other fees | 198,486 | 130,294 | 79,050 | ||||||||
Interest income, investments in MSR financing receivables | 1,098,109 | 719,840 | 492,021 | ||||||||
Amortization of servicing rights | 530,031 | 256,915 | 223,167 | ||||||||
Change in valuation inputs and assumptions | (187,530) | 61,149 | |||||||||
Change in valuation inputs and assumptions | 186,204 | (68,587) | (155,495) | ||||||||
(Gain)/loss on sales | 3,285 | (2,917) | 0 | ||||||||
(Gain)/loss on sales | 3,285 | (2,917) | |||||||||
Servicing revenue, net | 385,159 | 528,595 | 424,349 | ||||||||
Excess Spread Financing | |||||||||||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | |||||||||||
Amortization of servicing rights | 7,100 | 1,200 | 0 | ||||||||
Change in valuation inputs and assumptions | (1,300) | (7,400) | 0 | ||||||||
Mortgage Servicing Rights Financing Receivable | New Residential Mortgage LLC | |||||||||||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | |||||||||||
Servicing fee revenue | 513,172 | 705,812 | 94,945 | ||||||||
Ancillary and other fees | 119,570 | 146,829 | 17,313 | ||||||||
Less: subservicing expense | (196,726) | (251,184) | (33,686) | ||||||||
Interest income, investments in MSR financing receivables | 436,016 | 601,457 | 78,572 | ||||||||
Amortization of servicing rights | 203,732 | 197,703 | 43,190 | ||||||||
Change in valuation inputs and assumptions | 21,094 | 230,036 | 109,584 | ||||||||
(Gain)/loss on sales | (6,385) | (783) | 0 | ||||||||
Change in fair value of investments in mortgage servicing rights financing receivables | $ (189,023) | $ 31,550 | $ 66,394 |
INVESTMENTS IN MORTGAGE SERVI_6
INVESTMENTS IN MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Investment in MSRs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Mortgage Servicing Rights [Line Items] | |||
Weighted Average Life (Years) | 24 days | ||
Carrying Value | $ 5,686,233 | $ 4,528,604 | $ 2,334,232 |
Residential mortgage loans subject to repurchase | 172,336 | 121,602 | 0 |
MSRs | |||
Schedule of Mortgage Servicing Rights [Line Items] | |||
Carrying Value | $ 3,967,960 | $ 2,884,100 | $ 1,735,504 |
Discount rate | 7.80% | 8.70% | |
Mortgage Servicing Rights Financing Receivable | |||
Schedule of Mortgage Servicing Rights [Line Items] | |||
UPB of Underlying Mortgages | $ 504,834,931 | $ 388,979,268 | |
Weighted Average Life (Years) | 5 years 4 months 24 days | 6 years 7 months 6 days | |
Amortized Cost Basis | $ 5,197,597 | $ 3,870,432 | |
Carrying Value | $ 5,686,233 | $ 4,528,604 | |
Discount rate | 8.90% | 10.30% | |
Agency | MSRs | |||
Schedule of Mortgage Servicing Rights [Line Items] | |||
UPB of Underlying Mortgages | $ 315,427,933 | $ 226,295,778 | |
Weighted Average Life (Years) | 5 years 1 month 6 days | 6 years 4 months 24 days | |
Amortized Cost Basis | $ 3,179,556 | $ 2,189,039 | |
Carrying Value | 3,319,035 | 2,506,676 | |
Agency | Mortgage Servicing Rights Financing Receivable | |||
Schedule of Mortgage Servicing Rights [Line Items] | |||
UPB of Underlying Mortgages | $ 54,866,978 | $ 42,265,547 | |
Weighted Average Life (Years) | 4 years 8 months 12 days | 5 years 10 months 24 days | |
Amortized Cost Basis | $ 582,600 | $ 366,946 | |
Carrying Value | 547,351 | 434,110 | |
Non-Agency | MSRs | |||
Schedule of Mortgage Servicing Rights [Line Items] | |||
UPB of Underlying Mortgages | $ 6,402,833 | $ 2,143,212 | |
Weighted Average Life (Years) | 5 years 4 months 24 days | 6 years 7 months 6 days | |
Amortized Cost Basis | $ 12,437 | $ 19,982 | |
Carrying Value | 20,283 | 22,438 | |
Non-Agency | Mortgage Servicing Rights Financing Receivable | |||
Schedule of Mortgage Servicing Rights [Line Items] | |||
UPB of Underlying Mortgages | $ 76,117,892 | $ 88,251,018 | |
Weighted Average Life (Years) | 7 years 7 months 6 days | 7 years 2 months 12 days | |
Amortized Cost Basis | $ 808,149 | $ 936,792 | |
Carrying Value | 1,170,922 | 1,210,394 | |
Ginnie Mae | MSRs | |||
Schedule of Mortgage Servicing Rights [Line Items] | |||
UPB of Underlying Mortgages | $ 52,019,295 | $ 30,023,713 | |
Weighted Average Life (Years) | 4 years 7 months 6 days | 7 years 4 months 24 days | |
Amortized Cost Basis | $ 614,855 | $ 357,673 | |
Carrying Value | $ 628,642 | $ 354,986 |
INVESTMENTS IN MORTGAGE SERVI_7
INVESTMENTS IN MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans of the MSRs (Details) - MSRs - Mortgage Loans | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 100.00% | 100.00% |
California | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 21.90% | 21.70% |
Florida | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 6.90% | 6.90% |
New York | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 6.40% | 7.80% |
Texas | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 5.50% | 5.30% |
New Jersey | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.90% | 5.00% |
Illinois | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.60% | 3.70% |
Massachusetts | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.40% | 3.50% |
Washington | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.30% | 2.30% |
Georgia | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.10% | 3.00% |
Maryland | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.00% | 3.40% |
Other U.S. | ||
Schedule of MSRs [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 38.00% | 37.40% |
INVESTMENTS IN MORTGAGE SERVI_8
INVESTMENTS IN MORTGAGE SERVICING RIGHTS AND MSR FINANCING RECEIVABLES - Schedule of Advances Included in Servicing Advances Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Investments in Mortgage Servicing Rights [Line Items] | |||
Total | [1] | $ 581,777 | $ 735,846 |
Servicer Advances Receivable | |||
Schedule of Investments in Mortgage Servicing Rights [Line Items] | |||
Principal and interest advances | 660,807 | 793,790 | |
Escrow advances (taxes and insurance advances) | 2,427,384 | 2,186,831 | |
Foreclosure advances | 163,054 | 199,203 | |
Total | 3,251,245 | 3,179,824 | |
Servicer advances receivable related to Agency MSRs | 562,200 | 231,200 | |
Servicer advances receivable related to Ginnie Mae MSRs | 166,500 | 41,600 | |
Unamortized discount and accrual | $ 50,100 | $ 98,000 | |
[1] | See Note 14 regarding consolidated VIEs. |
SERVICER ADVANCE INVESTMENTS -
SERVICER ADVANCE INVESTMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2016 | Dec. 31, 2014 | |
Advance Purchaser LLC | |||||
Investment [Line Items] | |||||
Capital distributed to third-party co-investors | $ 327.8 | ||||
Capital distributed to New Residential | $ 305.2 | ||||
Mr. Cooper | |||||
Investment [Line Items] | |||||
Servicer basic fee, percent | 9.20% | ||||
Performance fee, percent (up to) | 100.00% | ||||
SLS | |||||
Investment [Line Items] | |||||
Servicing asset fee, basis points | 0.1075% | ||||
SLS | Excess MSRs | |||||
Investment [Line Items] | |||||
Percentage of Excess MSRs acquired | 50.00% | ||||
Ocwen Loan Servicing LLC | |||||
Investment [Line Items] | |||||
Servicing asset fee, basis points | 0.061% | 0.059% | |||
Servicing asset fee, percent | 12.00% | ||||
Ocwen Loan Servicing LLC | LIBOR | |||||
Investment [Line Items] | |||||
Variable interest rate spread | 2.75% | ||||
Corporate Joint Venture | |||||
Investment [Line Items] | |||||
New Residential’s ownership | 73.20% | ||||
Funded capital commitments | $ 312.7 | ||||
Corporate Joint Venture | Noncontrolling Third-party Investors | |||||
Investment [Line Items] | |||||
Funded capital commitments | $ 389.6 | ||||
Fortress-managed funds | Excess MSRs | |||||
Investment [Line Items] | |||||
Percentage of additional Excess MSRs acquired | 50.00% |
SERVICER ADVANCE INVESTMENTS _2
SERVICER ADVANCE INVESTMENTS - Summary of Investments in Servicer Advances (Details) - Corporate Joint Venture - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investments in and Advances to Affiliates [Line Items] | ||
Amortized Cost Basis | $ 557,444 | $ 721,801 |
Carrying Value | $ 581,777 | $ 735,846 |
Weighted Average Discount Rate | 5.30% | 5.90% |
Weighted Average Yield | 5.70% | 5.80% |
Weighted Average Life (Years) | 6 years 3 months 18 days | 5 years 8 months 12 days |
Change in Fair Value Recorded in Other Income for Year then Ended | $ 10,288 | $ (89,332) |
SERVICER ADVANCE INVESTMENTS _3
SERVICER ADVANCE INVESTMENTS - Summary of Investments in Servicer Advances - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments in and Advances to Affiliates [Line Items] | |||
Outstanding Servicer Advances | [1] | $ 581,777 | $ 735,846 |
Face Amount of Notes and Bonds Payable | 35,650,844 | ||
Corporate Joint Venture | |||
Investments in and Advances to Affiliates [Line Items] | |||
Outstanding Servicer Advances | 462,843 | 620,050 | |
Corporate Joint Venture | Servicer Advance Investments | |||
Investments in and Advances to Affiliates [Line Items] | |||
UPB of Underlying Mortgages | 31,442,267 | 40,096,998 | |
Outstanding Servicer Advances | $ 462,843 | $ 620,050 | |
Servicer Advances to UPB of Underlying Residential Mortgage Loans | 1.50% | 1.50% | |
Face Amount of Notes and Bonds Payable | $ 443,248 | $ 574,117 | |
Gross Loan-to-Value | 88.30% | 88.30% | |
Net Loan-to-Value | 87.20% | 87.20% | |
Gross Cost of Funds | 3.40% | 3.70% | |
Net Cost of Funds | 2.80% | 3.10% | |
[1] | See Note 14 regarding consolidated VIEs. |
SERVICER ADVANCE INVESTMENTS _4
SERVICER ADVANCE INVESTMENTS - Summary of Investments in Servicer Advances - Components of Funded Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Investment [Line Items] | |||
Total | [1] | $ 581,777 | $ 735,846 |
Corporate Joint Venture | |||
Investment [Line Items] | |||
Principal and interest advances | 71,574 | 108,317 | |
Escrow advances (taxes and insurance advances) | 180,047 | 238,349 | |
Foreclosure advances | 211,222 | 273,384 | |
Total | $ 462,843 | $ 620,050 | |
[1] | See Note 14 regarding consolidated VIEs. |
SERVICER ADVANCE INVESTMENTS _5
SERVICER ADVANCE INVESTMENTS - Schedule of Interest Income Related to Investments in Servicer Advances (Details) - Servicer Advance Investments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment [Line Items] | |||
Interest income, gross of amounts attributable to servicer compensation | $ 51,940 | $ 83,807 | $ 871,506 |
Amounts attributable to base servicer compensation | (6,209) | (8,491) | (227,585) |
Amounts attributable to incentive servicer compensation | (18,065) | (25,098) | (115,565) |
Interest income from Servicer Advance Investments | $ 27,666 | $ 50,218 | $ 528,356 |
INVESTMENTS IN REAL ESTATE AN_3
INVESTMENTS IN REAL ESTATE AND OTHER SECURITIES - Schedule of Investment in Real Estate Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Treasury | ||
Purchases | ||
Face | $ 0 | $ 0 |
Purchase Price | 0 | 0 |
Sales | ||
Face | 0 | 862 |
Amortized Cost | 0 | 858 |
Sale Price | 0 | 849.8 |
Gain (Loss) on Sale | 0 | (8.2) |
Agency | ||
Purchases | ||
Face | 33,573.5 | 11,006.7 |
Purchase Price | 34,335.5 | 11,121.6 |
Sales | ||
Face | 22,746.3 | 9,485 |
Amortized Cost | 23,337.8 | 9,590.6 |
Sale Price | 23,449.2 | 9,569.2 |
Gain (Loss) on Sale | 111.4 | (21.4) |
Non-Agency | ||
Purchases | ||
Face | 14,960.4 | 9,194.8 |
Purchase Price | 2,059 | 3,854.4 |
Sales | ||
Face | 2,936.2 | 115 |
Amortized Cost | 1,852.1 | 87.7 |
Sale Price | 1,949.3 | 86.4 |
Gain (Loss) on Sale | $ 97.2 | $ (1.3) |
INVESTMENTS IN REAL ESTATE AN_4
INVESTMENTS IN REAL ESTATE AND OTHER SECURITIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Other-than-temporary impairment (OTTI) on securities | $ 3,232 | $ 5,567 | $ 8,859 | $ 7,516 | $ 6,827 | $ 3,889 | $ 12,631 | $ 6,670 | $ 25,174 | $ 30,017 | $ 10,334 |
Real estate securities acquired during the period with credit quality deterioration, face amount | 1,045,400 | 1,723,600 | |||||||||
Real estate securities acquired with credit quality deterioration, expected cash flows | 1,020,200 | 1,546,600 | |||||||||
Real estate securities acquired with credit quality deterioration, fair value | 612,300 | $ 1,148,700 | |||||||||
Agency | |||||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Face amount of securities sold | 5,100,000 | 5,100,000 | |||||||||
Face amount of securities purchased, unsettled | 900,000 | 900,000 | |||||||||
Sale price of securities sold | 5,200,000 | 5,200,000 | |||||||||
Purchase of real estate securities, unsettled | $ 900,000 | $ 900,000 |
INVESTMENTS IN REAL ESTATE AN_5
INVESTMENTS IN REAL ESTATE AND OTHER SECURITIES - Summary of Real Estate Securities (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)securitybond | Dec. 31, 2018USD ($)security | |
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 36,159,591 | $ 22,152,845 |
Amortized Cost Basis | 18,782,175 | 11,212,428 |
Carrying Value | $ 19,477,728 | 11,636,581 |
Weighted Average Life (Years) | 24 days | |
Investments | $ 34,337,137 | 23,318,701 |
Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Carrying Value | $ 1,129,300 | |
Number of bonds which New Residential was unable to obtain rating information | bond | 340 | |
Residual Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | $ 41,000 | |
Non-Agency Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments | 3,400 | |
Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 11,301,603 | 2,613,395 |
Amortized Cost Basis | 11,474,338 | 2,657,917 |
Gross Unrealized Gains | 57,221 | 7,744 |
Gross Unrealized Losses | (11,616) | (43) |
Carrying Value | $ 11,519,943 | $ 2,665,618 |
Number of Securities | 43 | 31 |
Weighted Average Rating | AAA | AAA |
Weighted Average Coupon | 3.17% | 4.01% |
Weighted Average Yield | 2.78% | 3.70% |
Weighted Average Life (Years) | 6 years | 8 years 1 month 6 days |
Agency | Fixed Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 11,300,000 | $ 2,600,000 |
Agency | Floating Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 0 | 0 |
Non-Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 24,857,988 | 19,539,450 |
Amortized Cost Basis | 7,307,837 | 8,554,511 |
Gross Unrealized Gains | 689,158 | 517,861 |
Gross Unrealized Losses | (39,210) | (101,409) |
Carrying Value | $ 7,957,785 | $ 8,970,963 |
Number of Securities | 997 | 897 |
Weighted Average Rating | B+ | B+ |
Weighted Average Coupon | 2.90% | 3.40% |
Weighted Average Yield | 4.70% | 5.63% |
Weighted Average Life (Years) | 7 years | 6 years 10 months 24 days |
Weighted Average Principal Subordination | 11.00% | 12.40% |
Non-Agency | Fixed Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 5,400,000 | $ 3,800,000 |
Residual and interest - only notional amount | 3,200,000 | 1,500,000 |
Non-Agency | Floating Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 19,500,000 | 15,700,000 |
Residual and interest - only notional amount | 12,200,000 | 7,400,000 |
Total/Weighted Average | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 36,159,591 | 22,152,845 |
Amortized Cost Basis | 18,782,175 | 11,212,428 |
Gross Unrealized Gains | 746,379 | 525,605 |
Gross Unrealized Losses | (50,826) | (101,452) |
Carrying Value | $ 19,477,728 | $ 11,636,581 |
Number of Securities | security | 1,040 | 928 |
Weighted Average Rating | A+ | BB+ |
Weighted Average Coupon | 3.03% | 3.53% |
Weighted Average Yield | 3.53% | 5.17% |
Weighted Average Life (Years) | 6 years 4 months 24 days | 7 years 2 months 12 days |
Corporate bond | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 85,000 | $ 85,000 |
Amortized Cost Basis | 85,000 | 85,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,262) | (12,325) |
Carrying Value | $ 83,738 | $ 72,675 |
Number of Securities | security | 1 | 1 |
Weighted Average Rating | B- | B- |
Weighted Average Coupon | 8.25% | 8.25% |
Weighted Average Yield | 8.25% | 8.25% |
Weighted Average Life (Years) | 5 years 3 months 18 days | 6 years 3 months 18 days |
Consumer loan bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 25,029 | $ 56,846 |
Amortized Cost Basis | 25,688 | 57,480 |
Gross Unrealized Gains | 521 | 33 |
Gross Unrealized Losses | (6,190) | (7,075) |
Carrying Value | $ 20,019 | $ 50,438 |
Number of Securities | security | 6 | 6 |
Weighted Average Rating | B | |
Weighted Average Coupon | 5.50% | |
Weighted Average Yield | 20.26% | |
Weighted Average Life (Years) | 1 year 7 months 6 days | 1 year 7 months 6 days |
MSR bond | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 0 | $ 228,000 |
Amortized Cost Basis | 0 | 228,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (400) |
Carrying Value | $ 0 | $ 227,600 |
Number of Securities | security | 0 | 2 |
Weighted Average Rating | BBB- | |
Weighted Average Coupon | 0.00% | 5.24% |
Weighted Average Yield | 0.00% | 4.89% |
Weighted Average Life (Years) | 8 years 9 months 18 days | |
Interest-only Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 11,201,646 | $ 6,832,353 |
Amortized Cost Basis | 308,714 | 259,725 |
Gross Unrealized Gains | 35,882 | 23,694 |
Gross Unrealized Losses | (19,459) | (13,025) |
Carrying Value | $ 325,137 | $ 270,394 |
Number of Securities | security | 124 | 79 |
Weighted Average Rating | AA+ | AA+ |
Weighted Average Coupon | 1.37% | 1.38% |
Weighted Average Yield | 10.49% | 6.58% |
Weighted Average Life (Years) | 2 years 10 months 24 days | 3 years |
Servicing Strips | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 4,073,792 | $ 975,048 |
Amortized Cost Basis | 40,043 | 8,588 |
Gross Unrealized Gains | 2,431 | 1,720 |
Gross Unrealized Losses | (4,562) | (198) |
Carrying Value | $ 37,912 | $ 10,110 |
Number of Securities | security | 46 | 31 |
Weighted Average Coupon | 0.38% | 0.21% |
Weighted Average Yield | 4.01% | 13.23% |
Weighted Average Life (Years) | 5 years 8 months 12 days | 6 years |
INVESTMENTS IN REAL ESTATE AN_6
INVESTMENTS IN REAL ESTATE AND OTHER SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)securitybond | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | $ 36,159,591 | $ 22,152,845 | |
Other Than Temporary Impairment - Amortized Cost Basis | (59,063) | (52,803) | $ (23,821) |
Amortized Cost Basis | $ 18,782,175 | $ 11,212,428 | |
Weighted Average Life (Years) | 24 days | ||
Less than 12 Months | |||
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | $ 10,805,953 | ||
Before Impairment - Amortized Cost Basis | 4,798,637 | ||
Other Than Temporary Impairment - Amortized Cost Basis | (1,208) | ||
Amortized Cost Basis | 4,797,429 | ||
Gross Unrealized Losses - Less than Twelve Months | (32,342) | ||
Carrying Value - Less than Twelve Months | $ 4,765,087 | ||
Number of Securities - Less than Twelve Months | security | 124 | ||
Weighted Average Rating | AA+ | ||
Weighted Average Coupon | 3.02% | ||
Weighted Average Yield | 2.86% | ||
Weighted Average Life (Years) | 6 years 9 months 18 days | ||
Number of bonds which New Residential was unable to obtain rating information | bond | 51 | ||
12 or More Months | |||
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | $ 1,704,469 | ||
Before Impairment - Amortized Cost Basis | 210,058 | ||
Other Than Temporary Impairment - Amortized Cost Basis | (2,024) | ||
Amortized Cost Basis | 208,034 | ||
Gross Unrealized Losses - Twelve or More Months | (18,484) | ||
Carrying Value - Twelve or More Months | $ 189,550 | ||
Number of Securities - Twelve or More Months | security | 64 | ||
Weighted Average Rating | BB+ | ||
Weighted Average Coupon | 4.20% | ||
Weighted Average Yield | 6.50% | ||
Weighted Average Life (Years) | 4 years 8 months 12 days | ||
Number of bonds which New Residential was unable to obtain rating information | bond | 15 | ||
Total/Weighted Average | |||
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | $ 12,510,422 | ||
Before Impairment - Amortized Cost Basis | 5,008,695 | ||
Other Than Temporary Impairment - Amortized Cost Basis | (3,232) | ||
Amortized Cost Basis | 5,005,463 | ||
Gross Unrealized Losses - Total/Weighted Average | (50,826) | ||
Carrying Value - Total/Weighted Average | $ 4,954,637 | ||
Number of Securities - Total/Weighted Average | security | 188 | ||
Weighted Average Rating | AA | ||
Weighted Average Coupon | 3.07% | ||
Weighted Average Yield | 3.01% | ||
Weighted Average Life (Years) | 6 years 9 months 18 days |
INVESTMENTS IN REAL ESTATE AN_7
INVESTMENTS IN REAL ESTATE AND OTHER SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position - Associated Intent to Sell (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Securities New Residential intends to sell | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | $ 0 |
Amortized Cost Basis After Impairment | 0 |
Unrealized Credit Losses | 0 |
Unrealized Non-Credit Losses | 0 |
Securities New Residential is more likely than not to be required to sell | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 0 |
Amortized Cost Basis After Impairment | 0 |
Unrealized Credit Losses | 0 |
Credit impaired securities | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 228,228 |
Amortized Cost Basis After Impairment | 237,626 |
Unrealized Credit Losses | (3,232) |
Unrealized Non-Credit Losses | (9,398) |
Non-credit impaired securities | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 4,726,409 |
Amortized Cost Basis After Impairment | 4,767,837 |
Unrealized Credit Losses | 0 |
Unrealized Non-Credit Losses | (41,428) |
Total debt securities in an unrealized loss position | |
Debt Securities, Available-for-sale [Line Items] | |
Fair Value | 4,954,637 |
Amortized Cost Basis After Impairment | 5,005,463 |
Unrealized Credit Losses | (3,232) |
Unrealized Non-Credit Losses | $ (50,826) |
INVESTMENTS IN REAL ESTATE AN_8
INVESTMENTS IN REAL ESTATE AND OTHER SECURITIES - Summary of Activity Related to Credit Losses on Debt Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Beginning balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income | $ 52,803 | $ 23,821 |
Increases to credit losses on securities for which an OTTI was previously recognized and a portion of an OTTI was recognized in other comprehensive income | 23,059 | 16,924 |
Additions for credit losses on securities for which an OTTI was not previously recognized | 2,115 | 13,093 |
Reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis | 0 | 0 |
Reduction for credit losses on securities for which no OTTI was recognized in other comprehensive income at the current measurement date | 0 | 0 |
Reduction for securities sold/paid off during the period | (18,914) | (1,035) |
Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income | $ 59,063 | $ 52,803 |
INVESTMENTS IN REAL ESTATE AN_9
INVESTMENTS IN REAL ESTATE AND OTHER SECURITIES - Summary of the Geographic Distribution of the Collateral Securing Non-Agency RMBS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Non-Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 24,747,959 | $ 19,397,604 |
Percentage of Total Outstanding | 100.00% | 100.00% |
Non-Agency | Western U.S. | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 9,048,847 | $ 7,318,616 |
Percentage of Total Outstanding | 36.60% | 37.70% |
Non-Agency | Southeastern U.S. | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 5,983,966 | $ 4,613,314 |
Percentage of Total Outstanding | 24.20% | 23.80% |
Non-Agency | Northeastern U.S. | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 5,416,137 | $ 3,829,725 |
Percentage of Total Outstanding | 21.90% | 19.70% |
Non-Agency | Midwestern U.S. | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 2,562,269 | $ 2,063,263 |
Percentage of Total Outstanding | 10.40% | 10.60% |
Non-Agency | Southwestern U.S. | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 1,440,467 | $ 1,321,853 |
Percentage of Total Outstanding | 5.80% | 6.80% |
Non-Agency | Other U.S. | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 296,273 | $ 250,833 |
Percentage of Total Outstanding | 1.10% | 1.40% |
Consumer loan bonds | Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Face Amount | $ 25,000 | $ 56,800 |
Corporate bond | Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Face Amount | $ 85,000 | $ 85,000 |
INVESTMENTS IN REAL ESTATE A_10
INVESTMENTS IN REAL ESTATE AND OTHER SECURITIES - Schedule of the Outstanding Face Amount and Carrying Value for Securities Uncollectible (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Outstanding Face Amount | $ 5,701,736 | $ 6,385,306 |
Carrying Value | $ 3,830,369 | $ 4,217,242 |
INVESTMENTS IN REAL ESTATE A_11
INVESTMENTS IN REAL ESTATE AND OTHER SECURITIES - Summary of Changes in Accretable Yield for Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Certain Loans Acquired in Transfer Accounted for as Available-for-sale Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning Balance | $ 2,245,983 | $ 2,000,266 |
Additions | 407,864 | 397,934 |
Accretion | (239,682) | (290,014) |
Reclassifications from (to) non-accretable difference | (233,683) | 156,070 |
Disposals | (298,006) | (18,273) |
Ending Balance | $ 1,882,476 | $ 2,245,983 |
INVESTMENTS IN RESIDENTIAL MO_3
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS AND REAL ESTATE OWNED - Loans Outstanding by Loan Type, Excluding REO (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Weighted Average Life (Years) | 24 days | |
Performing Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 858,703 | $ 636,874 |
Carrying Value | $ 859,428 | $ 591,264 |
Loan Count | loan | 13,627 | 8,424 |
Weighted Average Yield | 6.90% | 8.00% |
Weighted Average Life (Years) | 5 years 3 months 18 days | 4 years 9 months 18 days |
Floating Rate Loans as a % of Face Amount | 8.80% | 20.30% |
LTV Ratio | 76.10% | 77.70% |
Weighted average delinquency | 15.80% | 8.90% |
Weighted Average FICO | 646 | 649 |
Performing Loans | Ginnie Mae EBO | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
UPB of Underlying Mortgages | $ 36,000 | $ 24,300 |
Purchased Credit Deteriorated Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | 96,420 | 191,497 |
Carrying Value | $ 66,278 | $ 144,065 |
Loan Count | loan | 945 | 1,556 |
Weighted Average Yield | 8.50% | 7.60% |
Weighted Average Life (Years) | 3 years 2 months 12 days | 3 years 1 month 6 days |
Floating Rate Loans as a % of Face Amount | 21.80% | 16.40% |
LTV Ratio | 91.10% | 84.60% |
Weighted average delinquency | 60.00% | 71.50% |
Weighted Average FICO | 588 | 596 |
Total Residential Mortgage Loans, Held-for-Investment | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 955,123 | $ 828,371 |
Carrying Value | $ 925,706 | $ 735,329 |
Loan Count | loan | 14,572 | 9,980 |
Weighted Average Yield | 7.10% | 7.90% |
Weighted Average Life (Years) | 5 years 1 month 6 days | 4 years 4 months 24 days |
Floating Rate Loans as a % of Face Amount | 10.10% | 19.40% |
LTV Ratio | 77.60% | 79.30% |
Weighted average delinquency | 20.20% | 23.30% |
Weighted Average FICO | 641 | 637 |
Reverse Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 11,628 | $ 13,807 |
Carrying Value | $ 5,844 | $ 6,557 |
Loan Count | loan | 28 | 37 |
Weighted Average Yield | 7.90% | 8.10% |
Weighted Average Life (Years) | 4 years 7 months 6 days | 4 years 9 months 18 days |
Floating Rate Loans as a % of Face Amount | 5.70% | 10.60% |
LTV Ratio | 149.90% | 142.50% |
Weighted average delinquency | 69.50% | 67.80% |
Performing Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 839,141 | $ 408,724 |
Carrying Value | $ 857,821 | $ 413,883 |
Loan Count | loan | 12,808 | 7,144 |
Weighted Average Yield | 4.50% | 4.40% |
Weighted Average Life (Years) | 4 years | 3 years 10 months 24 days |
Floating Rate Loans as a % of Face Amount | 62.70% | 56.60% |
LTV Ratio | 50.10% | 61.30% |
Weighted average delinquency | 7.80% | 9.00% |
Weighted Average FICO | 688 | 670 |
Non-Performing Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 680,736 | $ 621,700 |
Carrying Value | $ 565,387 | $ 512,040 |
Loan Count | loan | 5,032 | 5,029 |
Weighted Average Yield | 5.20% | 5.50% |
Weighted Average Life (Years) | 3 years 1 month 6 days | 3 years |
Floating Rate Loans as a % of Face Amount | 11.80% | 14.90% |
LTV Ratio | 73.80% | 88.10% |
Weighted average delinquency | 77.30% | 72.60% |
Weighted Average FICO | 587 | 588 |
Total Residential Mortgage Loans, Held-for-Sale | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 1,531,505 | $ 1,044,231 |
Carrying Value | $ 1,429,052 | $ 932,480 |
Loan Count | loan | 17,868 | 12,210 |
Weighted Average Yield | 4.90% | 5.10% |
Weighted Average Life (Years) | 3 years 7 months 6 days | 3 years 4 months 24 days |
Floating Rate Loans as a % of Face Amount | 39.70% | 31.20% |
LTV Ratio | 61.40% | 78.30% |
Weighted average delinquency | 39.20% | 47.60% |
Weighted Average FICO | 643 | 621 |
Acquired Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 3,132,007 | $ 2,295,340 |
Carrying Value | $ 3,024,288 | $ 2,153,269 |
Loan Count | loan | 19,204 | 12,873 |
Weighted Average Yield | 4.00% | 4.50% |
Weighted Average Life (Years) | 7 years | 8 years |
Floating Rate Loans as a % of Face Amount | 3.30% | 7.70% |
LTV Ratio | 62.20% | 75.70% |
Weighted average delinquency | 23.10% | 14.00% |
Weighted Average FICO | 626 | 626 |
Originated Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 1,543,799 | $ 638,173 |
Carrying Value | $ 1,589,324 | $ 655,260 |
Loan Count | loan | 5,806 | 2,307 |
Weighted Average Yield | 3.80% | 5.20% |
Weighted Average Life (Years) | 28 years 7 months 6 days | 28 years 6 months |
Floating Rate Loans as a % of Face Amount | 3.50% | 96.30% |
LTV Ratio | 79.00% | 80.00% |
Weighted average delinquency | 8.20% | 3.80% |
Weighted Average FICO | 674 | 714 |
Total Residential Mortgage Loans, held-for-sale, at fair value | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Outstanding Face Amount | $ 4,675,806 | $ 2,933,513 |
Carrying Value | $ 4,613,612 | $ 2,808,529 |
Loan Count | loan | 25,010 | 15,180 |
Weighted Average Yield | 4.00% | 4.60% |
Weighted Average Life (Years) | 14 years 1 month 6 days | 12 years 6 months |
Floating Rate Loans as a % of Face Amount | 3.40% | 27.00% |
LTV Ratio | 67.80% | 76.60% |
Weighted average delinquency | 18.20% | 11.80% |
Weighted Average FICO | 642 | 645 |
Reverse Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Interest in reverse mortgage loans | 70.00% | |
Unpaid principal balance | $ 600 | $ 500 |
Percentage of loans that have reached a termination event | 45.60% | 54.90% |
Non-Performing Loans | Ginnie Mae EBO | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
UPB of Underlying Mortgages | $ 26,900 | $ 51,900 |
Non Agency Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
UPB of Underlying Mortgages | 107,700 | |
MDST Trusts | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
UPB of Underlying Mortgages | $ 345,100 | |
Mr. Cooper | Reverse Mortgage Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Interest in reverse mortgage loans | 30.00% |
INVESTMENTS IN RESIDENTIAL MO_4
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS AND REAL ESTATE OWNED - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)trust | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Threshold period past due (in days) | 60 days |
Government Guaranteed Mortgage Loans upon Foreclosure Receivable | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Claims receivable | $ 19.1 |
Residential Mortgage Loans | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Unpaid principal balance | $ 433.1 |
Residential Mortgage Loans | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Number of trusts called | trust | 140 |
Loans Sold | Residential Mortgage Loans | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Investment income, interest | $ 54.4 |
Gain (loss) on sale | $ 156.2 |
INVESTMENTS IN RESIDENTIAL MO_5
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS AND REAL ESTATE OWNED - Geographic Distribution of the Underlying Residential Mortgage Loans (Details) - Residential Mortgage Loans | Dec. 31, 2019 | Dec. 31, 2018 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 100.00% | 100.00% |
California | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 16.10% | 16.70% |
New York | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 9.00% | 11.70% |
Florida | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 8.40% | 8.80% |
Texas | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 7.10% | 4.70% |
Georgia | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.80% | 2.70% |
New Jersey | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.20% | 5.30% |
Illinois | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.60% | 4.00% |
Maryland | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.30% | 3.60% |
Massachusetts | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.30% | 3.10% |
Pennsylvania | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 2.90% | 3.10% |
Other U.S. | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 37.30% | 36.30% |
INVESTMENTS IN RESIDENTIAL MO_6
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS AND REAL ESTATE OWNED - Performing Loans Past Due (Details) - Residential Portfolio Segment - Performing Loans | Dec. 31, 2019 |
Investment [Line Items] | |
Delinquency Status | 100.00% |
Current | |
Investment [Line Items] | |
Delinquency Status | 86.50% |
30-59 | |
Investment [Line Items] | |
Delinquency Status | 7.00% |
60-89 | |
Investment [Line Items] | |
Delinquency Status | 2.70% |
90-119 | |
Investment [Line Items] | |
Delinquency Status | 0.70% |
120 | |
Investment [Line Items] | |
Delinquency Status | 3.10% |
INVESTMENTS IN RESIDENTIAL MO_7
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS AND REAL ESTATE OWNED - Carrying Value of Mortgage Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Accretion of loan discount and other amortization | $ 379,129 | $ 701,967 | $ 1,031,384 |
Transfer of loans to real estate owned | (86,167) | (107,577) | |
Residential Portfolio Segment | Performing Loans | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance, beginning | 591,253 | 507,615 | |
Acquisition | 381,039 | 125,350 | |
Purchases/additional fundings | 0 | 55,993 | |
Proceeds from repayments | (102,340) | (106,236) | |
Accretion of loan discount and other amortization | 12,661 | 15,773 | |
Provision for loan losses | (595) | (1,028) | |
Transfer of loans to other assets | 0 | 0 | |
Transfer of loans to real estate owned | (6,223) | (5,131) | |
Transfer of loans to held-for-sale | (20,505) | (1,555) | |
Fair value adjustment | 4,138 | 472 | |
Balance, ending | 859,428 | 591,253 | 507,615 |
PCD Loans | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance, beginning | 144,065 | 183,540 | |
Purchases/additional fundings | 0 | 29,785 | |
Sales | 0 | 0 | |
Proceeds from repayments | (16,855) | (38,276) | |
Accretion of loan discount and other amortization | 16,041 | 24,124 | |
(Allowance) reversal for loan losses | (2,332) | 0 | |
Transfer of loans to real estate owned | (14,487) | (28,060) | |
Transfer of loans to held-for-sale | (60,154) | (27,048) | |
Balance, ending | $ 66,278 | $ 144,065 | $ 183,540 |
INVESTMENTS IN RESIDENTIAL MO_8
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS AND REAL ESTATE OWNED - Valuation Provision on Reverse Mortgage Loans and Allowance for Loan Losses on Performing Loans (Details) - Residential Portfolio Segment - Performing Loans - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 0 | $ 196 |
Provision for loan losses | 595 | 1,028 |
Charge-offs | (595) | (1,224) |
Ending balance | $ 0 | $ 0 |
INVESTMENTS IN RESIDENTIAL MO_9
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS AND REAL ESTATE OWNED - Changes in Accretable Yield (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning balance | $ 68,632 | $ 88,631 |
Additions | 0 | 15,644 |
Accretion | (16,041) | (24,124) |
Reclassifications from non-accretable difference | 9,361 | 5,493 |
Disposals | (11,515) | (7,257) |
Transfer to held-for-sale | (13,415) | (9,755) |
Ending balance | $ 37,022 | $ 68,632 |
INVESTMENTS IN RESIDENTIAL M_10
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS AND REAL ESTATE OWNED - Activities Related to the Carrying Value of Loans Held-for-sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans Held-for-sale, Reconciliation [Roll Forward] | |||
Transfers of loans from held-for-investment | $ 9,136 | $ 23,080 | $ 23,080 |
Transfer of loans to real estate owned | (86,167) | (107,577) | |
Loans Held-for-sale | |||
Loans Held-for-sale, Reconciliation [Roll Forward] | |||
Beginning balance, loans held-for-sale | 932,480 | 1,725,534 | |
Purchases | 1,124,099 | 3,653,608 | |
Ditech Acquisition | 9,136 | ||
Transfers of loans from held-for-investment | 80,659 | 28,603 | |
Sales | (495,925) | (4,205,375) | |
Transfer of loans to other assets | (10,154) | (9,811) | |
Transfer of loans to real estate owned | (49,459) | (54,114) | |
Proceeds from repayments | (184,683) | (195,797) | |
Valuation (provision) reversal on loans | 22,899 | (10,168) | |
Ending balance, loans held-for-sale | 1,429,052 | 932,480 | $ 1,725,534 |
Provision for loans held-for-sale | $ 5,200 | $ 59,200 |
INVESTMENTS IN RESIDENTIAL M_11
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS AND REAL ESTATE OWNED - Schedule of Loans Held-For-Sale, at Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans Held-for-sale, Reconciliation [Roll Forward] | |||
Accretion of loan discount and other amortization | $ 379,129 | $ 701,967 | $ 1,031,384 |
Fair value adjustment | 13,300 | ||
Originated Loans | |||
Loans Held-for-sale, Reconciliation [Roll Forward] | |||
Beginning balance, loans held-for-sale | 655,260 | ||
Originations | 19,512,072 | ||
Ditech Acquisition | 618,297 | ||
Sales | (19,176,028) | ||
Proceeds from repayments | (48,626) | ||
Transfer of loans to other assets | (412) | ||
Fair value adjustment | 28,761 | 3,695 | |
Ending balance, loans held-for-sale | 1,589,324 | 655,260 | |
Acquired Loans | |||
Loans Held-for-sale, Reconciliation [Roll Forward] | |||
Beginning balance, loans held-for-sale | 2,153,269 | ||
Purchases | 7,499,614 | ||
Sales | (6,362,077) | ||
Proceeds from repayments | (187,311) | ||
Transfer of loans to real estate owned | (4,155) | ||
Accretion of loan discount and other amortization | 0 | ||
Fair value adjustment | (75,052) | ||
Ending balance, loans held-for-sale | $ 3,024,288 | $ 2,153,269 |
INVESTMENTS IN RESIDENTIAL M_12
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS AND REAL ESTATE OWNED - Schedule of Net Interest Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Income: | ||
Acquired Residential Mortgage Loans, held-for-investment | $ 60,301 | $ 76,129 |
Acquired Residential Mortgage Loans, held-for-sale | 65,926 | 45,653 |
Acquired Residential Mortgage Loans, held-for-sale, at fair value | 123,446 | 35,904 |
Originated Residential Mortgage Loans, held-for-sale, at fair value | 52,480 | 15,658 |
Total Interest Income on Residential Mortgage Loans | 302,153 | 173,344 |
Interest Expense: | ||
Acquired Residential Mortgage Loans, held-for-investment | 19,381 | 23,618 |
Acquired Residential Mortgage Loans, held-for-sale | 40,067 | 35,796 |
Acquired Residential Mortgage Loans, held-for-sale, at fair value | 98,850 | 21,496 |
Originated Residential Mortgage Loans, held-for-sale,at fair value | 10,873 | 2,690 |
Total Interest Expense on Residential Mortgage Loans | 169,171 | 83,600 |
Total Net Interest Income on Residential Mortgage Loans | $ 132,982 | $ 89,744 |
INVESTMENTS IN RESIDENTIAL M_13
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS AND REAL ESTATE OWNED - Schedule of Gain on Sale of Originated Mortgage Loans, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Long Lived Assets Held-for-sale [Line Items] | |||||||||||
Gain on loans originated and sold | $ 53,554 | $ 47,172 | |||||||||
Gain (loss) on settlement of mortgage loan origination derivative instruments | (53,374) | 1,234 | |||||||||
MSRs retained on transfer of loans | 374,450 | 35,311 | |||||||||
Other | 42,912 | 14,057 | |||||||||
Realized gain on sale of originated mortgage loans, net | 417,542 | 97,774 | |||||||||
Change in fair value of derivative instruments (Note 11) | 29,152 | (5,324) | $ 0 | ||||||||
Gain on originated mortgage loans, held-for-sale, net | $ 180,520 | $ 126,747 | $ 101,018 | $ 67,170 | $ 49,091 | $ 47,054 | $ 0 | $ 0 | 475,455 | 96,145 | 0 |
Loan origination fees and direct loan origination costs | 421,300 | 21,800 | |||||||||
TBAs and Forward Loan Sale Commitments | |||||||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||||||
Change in fair value of derivative instruments (Note 11) | 3,001 | (5,347) | |||||||||
Interest Rate Lock Commitments | |||||||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||||||
Change in fair value of derivative instruments (Note 11) | 26,151 | 23 | $ 0 | ||||||||
Originated Loans | |||||||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||||||
Change in fair value | $ 28,761 | $ 3,695 |
INVESTMENTS IN RESIDENTIAL M_14
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS AND REAL ESTATE OWNED - Schedule of Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Real Estate Owned [Roll Forward] | ||
Beginning balance | $ 113,410 | $ 128,295 |
Purchases | 68,024 | 33,377 |
Transfer of loans to real estate owned | 86,167 | 107,577 |
Sales | (150,431) | (152,725) |
Valuation provision on REO | (3,114) | |
Valuation (provision) reversal on REO | 635 | |
Ending balance | $ 117,805 | $ 113,410 |
INVESTMENTS IN CONSUMER LOANS -
INVESTMENTS IN CONSUMER LOANS - Narrative (Details) $ / shares in Units, shares in Millions | Jun. 04, 2019USD ($) | Feb. 28, 2017USD ($)investor$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) |
Schedule of Consumer Loans [Line Items] | ||||
New Residential’s investment | $ 0 | $ 38,294,000 | ||
Warrants | $ 28,042,000 | $ 0 | ||
WarrantCo | Consumer Portfolio Segment | ||||
Schedule of Consumer Loans [Line Items] | ||||
Number of warrants to be purchased (in shares) | shares | 177.7 | 42 | ||
Value of Series F convertible preferred stock | $ 75,000,000 | |||
Exercise price (in dollars per share) | $ / shares | $ 0.01 | |||
Consumer Loan SPVs | ||||
Schedule of Consumer Loans [Line Items] | ||||
New Residential’s ownership | 53.50% | |||
Refinanced asset-backed notes | $ 938,700,000 | |||
Proceeds in excess of the refinanced debt | 7,800,000 | |||
Consumer Loan SPVs | New Residential and Co Investors | ||||
Schedule of Consumer Loans [Line Items] | ||||
Proceeds in excess of the refinanced debt | $ 13,400,000 | |||
LoanCo | Consumer Portfolio Segment | ||||
Schedule of Consumer Loans [Line Items] | ||||
New Residential’s ownership | 25.00% | |||
Purchase agreement amount | $ 5,000,000,000 | |||
Terms of purchase agreement contract | 2 years | |||
Number of co-investors | investor | 3 | |||
New Residential’s investment | $ 0 | |||
Gain on the distribution of all net assets | $ 3,600,000 | |||
WarrantCo | Consumer Portfolio Segment | ||||
Schedule of Consumer Loans [Line Items] | ||||
New Residential’s ownership | 23.57% | |||
Number of co-investors | investor | 3 | |||
Series F Convertible Preferred Stock | Consumer Loan Seller | New Residential and Co Investors | Consumer Portfolio Segment | ||||
Schedule of Consumer Loans [Line Items] | ||||
Number of securities called by warrants (in shares) | shares | 177.7 |
INVESTMENTS IN CONSUMER LOANS_2
INVESTMENTS IN CONSUMER LOANS - Summary of Investment in Consumer Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Schedule of Consumer Loans [Line Items] | ||||
Carrying Value | [1] | $ 827,545 | $ 1,072,202 | |
Weighted Average Expected Life (Years) | 24 days | |||
Number of days delinquent | 30 days | |||
Consumer Portfolio Segment | ||||
Schedule of Consumer Loans [Line Items] | ||||
UPB of Underlying Mortgages | $ 18,000 | |||
Consumer Portfolio Segment | Parent Company | ||||
Schedule of Consumer Loans [Line Items] | ||||
UPB of Underlying Mortgages | 823,917 | 1,072,577 | ||
Carrying Value | $ 827,545 | $ 1,072,202 | ||
Weighted Average Coupon | 18.00% | 18.10% | ||
Weighted Average Expected Life (Years) | 3 years 10 months 24 days | 3 years 6 months | ||
Weighted average delinquency | 5.90% | 6.70% | ||
Consumer Portfolio Segment | Parent Company | Other - Performing Loans | ||||
Schedule of Consumer Loans [Line Items] | ||||
UPB of Underlying Mortgages | $ 9,158 | $ 35,326 | ||
Interest in Consumer Loans | 100.00% | 100.00% | ||
Carrying Value | $ 8,602 | $ 32,722 | ||
Weighted Average Coupon | 15.10% | 14.20% | ||
Weighted Average Expected Life (Years) | 21 days | 24 days | ||
Weighted average delinquency | 6.10% | 5.60% | ||
Consumer Portfolio Segment | Parent Company | Performing Loans | ||||
Schedule of Consumer Loans [Line Items] | ||||
UPB of Underlying Mortgages | $ 644,676 | $ 815,341 | ||
Interest in Consumer Loans | 53.50% | 53.50% | ||
Carrying Value | $ 682,310 | $ 856,563 | ||
Weighted Average Coupon | 18.80% | 18.80% | ||
Weighted Average Expected Life (Years) | 4 years | 3 years 7 months 6 days | ||
Weighted average delinquency | 4.70% | 5.40% | ||
Consumer Portfolio Segment | Parent Company | Non-Performing Loans | ||||
Schedule of Consumer Loans [Line Items] | ||||
UPB of Underlying Mortgages | $ 170,083 | $ 221,910 | ||
Interest in Consumer Loans | 53.50% | 53.50% | ||
Carrying Value | $ 136,633 | $ 182,917 | ||
Weighted Average Coupon | 15.50% | 16.00% | ||
Weighted Average Expected Life (Years) | 3 years 8 months 12 days | 3 years 4 months 24 days | ||
Weighted average delinquency | 10.10% | 11.60% | ||
[1] | See Note 14 regarding consolidated VIEs. |
INVESTMENTS IN CONSUMER LOANS_3
INVESTMENTS IN CONSUMER LOANS - Credit Quality Indicator (Details) - Consumer Portfolio Segment - Performing Loans | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | |
Delinquency Status | 100.00% |
Current | |
Debt Securities, Available-for-sale [Line Items] | |
Delinquency Status | 95.30% |
30-59 | |
Debt Securities, Available-for-sale [Line Items] | |
Delinquency Status | 1.80% |
60-89 | |
Debt Securities, Available-for-sale [Line Items] | |
Delinquency Status | 1.20% |
90-119 | |
Debt Securities, Available-for-sale [Line Items] | |
Delinquency Status | 0.70% |
120 | |
Debt Securities, Available-for-sale [Line Items] | |
Delinquency Status | 1.00% |
INVESTMENTS IN CONSUMER LOANS_4
INVESTMENTS IN CONSUMER LOANS - Carrying Value of Performing Consumer Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans Receivable [Roll Forward] | |||
Proceeds from repayments | $ (113,602) | $ (147,403) | $ (94,807) |
Accretion of loan discount and premium amortization, net | 379,129 | 701,967 | 1,031,384 |
Consumer Portfolio Segment | Performing Loans | |||
Loans Receivable [Roll Forward] | |||
Beginning balance | 889,285 | 1,137,814 | |
Purchases | 0 | 0 | |
Additional fundings | 54,375 | 63,971 | |
Proceeds from repayments | (213,525) | (257,182) | |
Accretion of loan discount and premium amortization, net | 186 | 1,940 | |
Charge-offs | (38,563) | (56,870) | |
Allowance for loan losses | (846) | (388) | |
Ending balance | $ 690,912 | $ 889,285 | $ 1,137,814 |
INVESTMENTS IN CONSUMER LOANS_5
INVESTMENTS IN CONSUMER LOANS - Allowance for Loan Losses on Performing Consumer Loans, Held-for-Investment (Details) - Consumer Portfolio Segment - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans Receivable [Roll Forward] | ||
UPB of Underlying Mortgages | $ 18,000 | |
Post-modification recorded investment | 15,900 | |
Performing Loans | ||
Loans Receivable [Roll Forward] | ||
Collectively Evaluated, beginning balance | 2,604 | $ 4,429 |
Individually Impaired, beginning balance | 2,064 | 1,676 |
Beginning balance | 4,668 | 6,105 |
Provision (reversal) for loan losses | 30,854 | 48,227 |
Provision for loan losses | (32,057) | (49,664) |
Collectively Evaluated, ending balance | 555 | 2,604 |
Individually Impaired, ending balance | 2,910 | 2,064 |
Ending balance | 3,465 | 4,668 |
Recovery of bad debts | 8,600 | 9,000 |
Performing Loans | Collectively Evaluated | ||
Loans Receivable [Roll Forward] | ||
Provision (reversal) for loan losses | 30,008 | 47,839 |
Provision for loan losses | (32,057) | (49,664) |
Performing Loans | Individually Impaired | ||
Loans Receivable [Roll Forward] | ||
Provision (reversal) for loan losses | 846 | 388 |
Provision for loan losses | $ 0 | $ 0 |
INVESTMENTS IN CONSUMER LOANS_6
INVESTMENTS IN CONSUMER LOANS - Carrying Value of Purchased Deteriorated Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans Receivable [Roll Forward] | |||
Proceeds from repayments | $ (113,602) | $ (147,403) | $ (94,807) |
Accretion of loan discount and other amortization | 379,129 | 701,967 | 1,031,384 |
Acquired Loans | Consumer Portfolio Segment | |||
Loans Receivable [Roll Forward] | |||
Beginning balance | 182,917 | 236,449 | |
Provision for loan losses | 31 | (31) | |
Proceeds from repayments | (78,519) | (90,700) | |
Accretion of loan discount and other amortization | 32,204 | 37,199 | |
Ending balance | $ 136,633 | $ 182,917 | $ 236,449 |
INVESTMENTS IN CONSUMER LOANS_7
INVESTMENTS IN CONSUMER LOANS - UPB and Carrying Value of Consumer Loans (Details) - Acquired Loans - Consumer Portfolio Segment - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Unpaid Principal Balance | $ 170,083 | $ 221,910 |
Carrying Value | $ 136,633 | $ 182,917 |
INVESTMENTS IN CONSUMER LOANS_8
INVESTMENTS IN CONSUMER LOANS - Accretable Yield for Consumer Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans Receivable [Roll Forward] | ||
Beginning balance | $ 68,632 | $ 88,631 |
Accretion | (16,041) | (24,124) |
Ending balance | 37,022 | 68,632 |
Consumer Portfolio Segment | Acquired Loans | ||
Loans Receivable [Roll Forward] | ||
Beginning balance | 126,518 | 132,291 |
Accretion | (32,204) | (37,199) |
Reclassifications from non-accretable difference | 10,949 | 31,426 |
Ending balance | $ 105,263 | $ 126,518 |
INVESTMENTS IN CONSUMER LOANS_9
INVESTMENTS IN CONSUMER LOANS - Summary of Equity Method Investments Prior to Consolidation, Balance Sheet Components (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Nov. 30, 2019 | Dec. 31, 2018 | Nov. 30, 2018 |
Schedule of Consumer Loans [Line Items] | ||||
New Residential’s investment | $ 0 | $ 38,294 | ||
Consumer Portfolio Segment | LoanCo and WarrantCo | ||||
Schedule of Consumer Loans [Line Items] | ||||
Consumer Loan Assets (amortized cost basis) | $ 0 | $ 231,560 | ||
Warrants, at fair value | 0 | 103,067 | ||
Other assets | 0 | 25,971 | ||
Warehouse financing | 0 | (182,065) | ||
Other liabilities | 0 | (1,142) | ||
Equity | 0 | 177,391 | ||
Undistributed retained earnings | 0 | 0 | ||
New Residential’s investment | $ 0 | $ 0 | $ 38,294 | $ 42,875 |
New Residential’s ownership | 24.30% | 24.20% |
INVESTMENTS IN CONSUMER LOAN_10
INVESTMENTS IN CONSUMER LOANS - Summary of Equity Method Investments Prior to Consolidation (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Consumer Loans [Line Items] | ||||
Bonds and residual interests retained | $ 1,171,959 | $ 900,491 | $ 403,270 | |
Consumer Portfolio Segment | LoanCo and WarrantCo | ||||
Schedule of Consumer Loans [Line Items] | ||||
Interest income | $ 19,912 | 42,920 | ||
Interest expense | (6,487) | (12,258) | ||
Change in fair value of consumer loans and warrants | (4,596) | 17,491 | ||
Gain on sale of consumer loans | (10,711) | 2,697 | ||
Other expenses | (3,871) | (7,257) | ||
Net income | (5,753) | 43,593 | ||
New Residential’s equity in net income | $ (1,438) | (1,438) | $ 10,803 | |
New Residential’s ownership | 25.00% | 24.80% | ||
LoanCo | ||||
Schedule of Consumer Loans [Line Items] | ||||
Bonds and residual interests retained | 83,900 | |||
LoanCo | Consumer Portfolio Segment | ||||
Schedule of Consumer Loans [Line Items] | ||||
Unpaid principal of consumer loans | $ 406,100 |
INVESTMENTS IN CONSUMER LOAN_11
INVESTMENTS IN CONSUMER LOANS - Changes in Consumer Loan Equity Method Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Equity Method Investments [Roll Forward] | ||||
Balance at beginning of period | $ 38,294 | |||
Distributions of earnings from equity method investees | (8,999) | $ (11,059) | $ (13,668) | |
Distributions of capital from equity method investees | (92,748) | (300,056) | $ (393,722) | |
Balance at end of period | 0 | 38,294 | ||
Consumer Portfolio Segment | LoanCo and WarrantCo | ||||
Increase (Decrease) in Equity Method Investments [Roll Forward] | ||||
Balance at beginning of period | 38,294 | |||
Contributions to equity method investees | 64,499 | |||
Distributions of earnings from equity method investees | (8,607) | |||
Distributions of capital from equity method investees | (92,748) | |||
Earnings from investments in consumer loans, equity method investees | $ (1,438) | (1,438) | 10,803 | |
Balance at end of period | $ 0 | $ 0 | $ 38,294 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Warrants | $ 28,042 | $ 0 | |
WarrantCo | Consumer Portfolio Segment | |||
Derivative [Line Items] | |||
Warrants to acquire Series F convertible preferred stock | 177.7 | 42 |
DERIVATIVES - Schedule of Deriv
DERIVATIVES - Schedule of Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative assets | $ 41,501 | $ 10,893 |
Derivative liabilities | 6,885 | 29,389 |
Interest Rate Caps | ||
Derivative [Line Items] | ||
Derivative assets | 0 | 3 |
Interest Rate Swaps | ||
Derivative [Line Items] | ||
Derivative assets | 155 | 0 |
Derivative liabilities | 0 | 5,245 |
Variation margin accounts | 171,800 | 106,100 |
Interest Rate Lock Commitments | ||
Derivative [Line Items] | ||
Derivative assets | 41,346 | 10,851 |
Derivative liabilities | 1,455 | 223 |
Forward Loan Sale Commitments | ||
Derivative [Line Items] | ||
Derivative assets | 0 | 39 |
Derivative liabilities | 27 | 0 |
TBAs | ||
Derivative [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | $ 5,403 | $ 23,921 |
DERIVATIVES - Notional Amount (
DERIVATIVES - Notional Amount (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Rate Caps | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 12,500 | $ 50,000 |
Derivative, notional amount | $ 12,500 | |
Derivative, cap interest rate | 4.00% | |
Average remaining maturity (in months) | 11 months | |
Interest Rate Caps | Short | ||
Derivative [Line Items] | ||
Derivative, cap interest rate | 1.90% | |
Interest Rate Swaps | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 4,900,000 | 4,725,000 |
Interest Rate Swaps | Short | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 900,000 | |
Average remaining maturity (in months) | 87 months | |
Interest Rate Swaps | Long | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 4,000,000 | $ 4,700,000 |
Derivative, cap interest rate | 3.20% | 3.21% |
Average remaining maturity (in months) | 36 months | 52 months |
Interest Rate Lock Commitments | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 4,043,935 | $ 823,187 |
Forward Loan Sale Commitments | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | 43,654 | 30,274 |
TBAs | Short | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | 5,048,000 | 5,904,300 |
TBAs | Long | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | $ 11,692,212 | $ 5,067,200 |
DERIVATIVES - Gain (Losses) (De
DERIVATIVES - Gain (Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Other income (loss), net | $ (56,143) | $ (108,234) | $ (2,190) |
Gain (loss) on settlement of investments, net | (129,923) | 54,867 | (39,214) |
Change in fair value of derivative instruments (Note 11) | 29,152 | (5,324) | 0 |
Total gains (losses) | (156,914) | (58,691) | (41,404) |
Gain (loss) on settlement of mortgage loan origination derivative instruments | (53,374) | 1,234 | |
Interest Rate Caps | |||
Derivative [Line Items] | |||
Other income (loss), net | (3) | 431 | 323 |
Gain (loss) on settlement of investments, net | 0 | (603) | (1,911) |
Interest Rate Swaps | |||
Derivative [Line Items] | |||
Other income (loss), net | (58,918) | (108,098) | (720) |
Gain (loss) on settlement of investments, net | (8,671) | 65,823 | 6,921 |
TBAs | |||
Derivative [Line Items] | |||
Other income (loss), net | 2,778 | (567) | (1,793) |
Gain (loss) on settlement of investments, net | (121,252) | (10,353) | (44,224) |
Change in fair value of derivative instruments (Note 11) | 3,067 | (5,064) | 0 |
Interest Rate Lock Commitments | |||
Derivative [Line Items] | |||
Other income (loss), net | 0 | 0 | 0 |
Change in fair value of derivative instruments (Note 11) | 26,151 | 23 | 0 |
Forward Loan Sale Commitments | |||
Derivative [Line Items] | |||
Other income (loss), net | 0 | 0 | 0 |
Change in fair value of derivative instruments (Note 11) | $ (66) | $ (283) | $ 0 |
DEBT OBLIGATIONS - Schedule of
DEBT OBLIGATIONS - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 35,650,844 | ||
Carrying Value | $ 35,636,373 | $ 22,656,235 | $ 15,746,530 |
Weighted Average Funding Cost | 2.71% | ||
Weighted Average Life (Years) | 24 days | ||
Interest payable | $ 68,668 | 49,352 | |
Excess MSRs | |||
Debt Instrument [Line Items] | |||
Carrying Value | 217,300 | 297,563 | 483,978 |
Servicer Advances | |||
Debt Instrument [Line Items] | |||
Carrying Value | 3,181,672 | 3,382,455 | 4,060,156 |
Consumer Loans | |||
Debt Instrument [Line Items] | |||
Carrying Value | 816,689 | 936,447 | $ 1,242,756 |
Repurchase Agreements: | Agency RMBS | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 15,481,677 | ||
Carrying Value | $ 15,481,677 | 4,346,070 | |
Weighted Average Funding Cost | 1.99% | ||
Weighted Average Life (Years) | 2 hours | ||
Repurchase Agreements: | Agency RMBS | Trade And Other Receivables | |||
Debt Instrument [Line Items] | |||
Collateral amount | $ 5,300,000 | ||
Repurchase Agreements: | Agency RMBS | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 4 years | ||
Outstanding Face | $ 15,499,156 | ||
Amortized Cost Basis | 15,810,728 | ||
Carrying Value | 15,862,218 | ||
Repurchase Agreements: | Non-Agency RMBS | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 7,317,519 | ||
Carrying Value | $ 7,317,519 | 7,434,785 | |
Weighted Average Funding Cost | 2.76% | ||
Weighted Average Life (Years) | 3 days | ||
Repurchase Agreements: | Non-Agency RMBS | Retained Servicer Advance and Consumer Bonds | |||
Debt Instrument [Line Items] | |||
Carrying Value | $ 7,500 | ||
Repurchase Agreements: | Non-Agency RMBS | Retainer Bonds Collateralized By Agency MSRs | |||
Debt Instrument [Line Items] | |||
Carrying Value | $ 638,600 | ||
Repurchase Agreements: | Non-Agency RMBS | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 7 years | ||
Outstanding Face | $ 25,220,620 | ||
Amortized Cost Basis | 8,014,409 | ||
Carrying Value | 8,661,349 | ||
Repurchase Agreements: | Non-Agency RMBS | Collateral | Retained Servicer Advance and Consumer Bonds | |||
Debt Instrument [Line Items] | |||
Carrying Value | 10,000 | ||
Repurchase Agreements: | Non-Agency RMBS | Collateral | Retainer Bonds Collateralized By Agency MSRs | |||
Debt Instrument [Line Items] | |||
Carrying Value | 744,400 | ||
Repurchase Agreements: | Residential Mortgage Loans | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 5,054,667 | ||
Carrying Value | $ 5,053,207 | 3,678,246 | |
Weighted Average Funding Cost | 3.48% | ||
Weighted Average Life (Years) | 18 days | ||
Repurchase Agreements: | Residential Mortgage Loans | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 15 years 4 months 24 days | ||
Outstanding Face | $ 5,778,009 | ||
Amortized Cost Basis | 5,847,650 | ||
Carrying Value | 5,577,297 | ||
Repurchase Agreements: | Real Estate Owned | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 63,846 | ||
Carrying Value | $ 63,822 | 94,868 | |
Weighted Average Funding Cost | 3.53% | ||
Weighted Average Life (Years) | 21 days | ||
Repurchase Agreements: | Real Estate Owned | Collateral | |||
Debt Instrument [Line Items] | |||
Carrying Value | $ 77,556 | ||
Repurchase Agreements: | Repurchase Agreements | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 27,917,709 | ||
Carrying Value | $ 27,916,225 | 15,553,969 | |
Weighted Average Funding Cost | 2.47% | ||
Weighted Average Life (Years) | 6 days | ||
Interest payable | $ 84,100 | ||
Repurchase Agreements: | Non-agency RMBS Repurchase Agreements, LIBOR Based Floating Interest Rate | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 6,788,400 | ||
Repurchase Agreements: | Non-agency RMBS Repurchase Agreements, Fixed Rate | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 529,100 | ||
Notes and Bonds Payable: | Residential Mortgage Loans | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 866,001 | ||
Carrying Value | $ 864,451 | 124,945 | |
Weighted Average Funding Cost | 4.63% | ||
Weighted Average Life (Years) | 8 years 3 months 18 days | ||
Notes and Bonds Payable: | Residential Mortgage Loans | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 7 years 1 month 6 days | ||
Outstanding Face | $ 1,183,625 | ||
Amortized Cost Basis | 1,199,326 | ||
Carrying Value | 1,171,201 | ||
Notes and Bonds Payable: | Excess MSRs | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 217,300 | ||
Carrying Value | $ 217,300 | 297,563 | |
Weighted Average Funding Cost | 4.45% | ||
Weighted Average Life (Years) | 2 years 7 months 6 days | ||
Notes and Bonds Payable: | Excess MSRs | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 5 years 10 months 24 days | ||
Outstanding Face | $ 97,846,949 | ||
Amortized Cost Basis | 306,803 | ||
Carrying Value | 394,644 | ||
Notes and Bonds Payable: | MSRs | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 2,646,540 | ||
Carrying Value | $ 2,640,036 | 2,360,856 | |
Weighted Average Funding Cost | 4.16% | ||
Weighted Average Life (Years) | 1 year 7 months 6 days | ||
Notes and Bonds Payable: | MSRs | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 5 years 8 months 12 days | ||
Outstanding Face | $ 394,098,370 | ||
Amortized Cost Basis | 3,998,060 | ||
Carrying Value | 4,446,855 | ||
Notes and Bonds Payable: | Servicer Advances | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 3,189,486 | ||
Carrying Value | $ 3,181,672 | 3,382,455 | |
Weighted Average Funding Cost | 2.90% | ||
Weighted Average Life (Years) | 2 years 1 month 6 days | ||
Face amount of fixed rate debt | $ 1,900,000 | ||
Notes and Bonds Payable: | Servicer Advances | LIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 1.00% | ||
Notes and Bonds Payable: | Servicer Advances | LIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 2.00% | ||
Notes and Bonds Payable: | Servicer Advances | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 1 year 4 months 24 days | ||
Outstanding Face | $ 3,587,593 | ||
Amortized Cost Basis | 3,858,818 | ||
Carrying Value | 3,883,151 | ||
Notes and Bonds Payable: | Consumer Loans | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 813,808 | ||
Carrying Value | $ 816,689 | 936,447 | |
Weighted Average Funding Cost | 3.25% | ||
Weighted Average Life (Years) | 3 years 10 months 24 days | ||
Notes and Bonds Payable: | Consumer Loans | Collateral | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | 3 years 10 months 24 days | ||
Outstanding Face | $ 823,806 | ||
Amortized Cost Basis | 830,900 | ||
Carrying Value | 827,434 | ||
Notes and Bonds Payable: | Total Notes and Bonds Payable | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 7,733,135 | ||
Carrying Value | $ 7,720,148 | $ 7,102,266 | |
Weighted Average Funding Cost | 3.60% | ||
Weighted Average Life (Years) | 2 years 9 months 18 days | ||
Notes and Bonds Payable: | Residential Mortgage Loans | Mr. Cooper | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 5,600 | ||
Collateral amount | $ 2,100 | ||
Variable interest rate spread | 4.59% | ||
Notes and Bonds Payable: | Residential Mortgage Loans | LIBOR | Mr. Cooper | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 2.88% | ||
Notes and Bonds Payable: | Residential Mortgage Backed Securities | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 105,300 | ||
Notes and Bonds Payable: | Residential Mortgage Backed Securities | Minimum | |||
Debt Instrument [Line Items] | |||
Weighted Average Funding Cost | 3.50% | ||
Notes and Bonds Payable: | Residential Mortgage Backed Securities | Maximum | |||
Debt Instrument [Line Items] | |||
Weighted Average Funding Cost | 3.76% | ||
Secured Debt | 3.00% Secured Corporate Note | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 217,300 | ||
Secured Debt | 3.00% Secured Corporate Note | LIBOR | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 2.75% | ||
Secured Debt | 2.25% Agency MSR Secured Note | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 1,250,000 | ||
Secured Debt | 2.25% Agency MSR Secured Note | LIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 2.25% | ||
Secured Debt | 2.25% Agency MSR Secured Note | LIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 2.75% | ||
Secured Debt | 2.50% Agency MSR Secured Note | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 59,500 | ||
Secured Debt | 2.50% Agency MSR Secured Note | LIBOR | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 2.50% | ||
Secured Debt | 3.55% Agency MSR Secured Note | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 1,337,100 | ||
Secured Debt | 3.55% Agency MSR Secured Note | LIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 3.55% | ||
Secured Debt | 3.55% Agency MSR Secured Note | LIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 4.62% | ||
Secured Debt | 4.59% Asset-backed Notes | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 353,500 | ||
Collateral amount | 300 | ||
Secured Debt | 6.58% Asset-backed Notes | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 202,500 | ||
Weighted Average Funding Cost | 6.58% | ||
Secured Debt | Asset-Backed Notes, LIBOR Based Floating Interest Rate | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 199,100 | ||
Collateral amount | $ 1,500 | ||
Secured Debt | Asset-Backed Notes, LIBOR Based Floating Interest Rate | LIBOR | |||
Debt Instrument [Line Items] | |||
Variable interest rate spread | 1.25% | ||
Secured Debt | Consumer Loan, UPB Class A | |||
Debt Instrument [Line Items] | |||
UPB of Underlying Mortgages | $ 734,700 | ||
Interest rate, stated percentage | 3.20% | ||
Secured Debt | Consumer Loan, UPB Class B | |||
Debt Instrument [Line Items] | |||
UPB of Underlying Mortgages | $ 70,400 | ||
Interest rate, stated percentage | 3.58% | ||
Secured Debt | Consumer Loan, UPB Class C-1 | |||
Debt Instrument [Line Items] | |||
UPB of Underlying Mortgages | $ 8,700 | ||
Interest rate, stated percentage | 5.06% |
DEBT OBLIGATIONS - Narrative (D
DEBT OBLIGATIONS - Narrative (Details) $ in Thousands | Dec. 31, 2019USD ($)agreement |
Debt Instrument [Line Items] | |
Face Amount of Notes and Bonds Payable | $ 35,650,844 |
Repurchase Agreements: | Repurchase Agreements | |
Debt Instrument [Line Items] | |
Face Amount of Notes and Bonds Payable | $ 27,917,709 |
Repurchase Agreements: | Stockholders' Equity | Counterpary Concentration Risk Exceeding 10% | |
Debt Instrument [Line Items] | |
Number of outstanding repurchase agreements | agreement | 0 |
DEBT OBLIGATIONS - Carrying Val
DEBT OBLIGATIONS - Carrying Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Roll Forward] | |||
Beginning balance | $ 22,656,235 | $ 15,746,530 | |
Acquisitions | 209,459 | 141,433 | |
Borrowings | 243,316,628 | 99,662,678 | $ 57,762,563 |
Repayments | (230,954,107) | (93,214,286) | (54,289,124) |
Ending balance | 35,636,373 | 22,656,235 | 15,746,530 |
Excess MSRs | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | 297,563 | 483,978 | |
Acquisitions | 0 | ||
Ending balance | 217,300 | 297,563 | 483,978 |
MSRs | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | 2,360,856 | 1,157,179 | |
Acquisitions | 20,731 | ||
Ending balance | 2,640,036 | 2,360,856 | 1,157,179 |
Servicer Advances | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | 3,382,455 | 4,060,156 | |
Acquisitions | 0 | ||
Ending balance | 3,181,672 | 3,382,455 | 4,060,156 |
Real Estate Securities | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | 11,780,855 | 6,694,454 | |
Acquisitions | 0 | ||
Ending balance | 22,799,196 | 11,780,855 | 6,694,454 |
Residential mortgage loans and REO | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | 3,898,059 | 2,108,007 | |
Acquisitions | 120,702 | ||
Ending balance | 5,981,480 | 3,898,059 | 2,108,007 |
Consumer Loans | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | 936,447 | 1,242,756 | |
Acquisitions | 0 | ||
Ending balance | 816,689 | 936,447 | $ 1,242,756 |
Repurchase Agreements: | |||
Debt Instrument [Roll Forward] | |||
Acquisitions | 439,632 | ||
Borrowings | 243,316,628 | 99,662,678 | |
Repayments | (230,954,107) | (93,210,903) | |
Capitalized deferred financing costs, net of amortization | 264 | 424 | |
Repurchase Agreements: | Excess MSRs | |||
Debt Instrument [Roll Forward] | |||
Acquisitions | 0 | ||
Borrowings | 0 | 0 | |
Repayments | 0 | 0 | |
Capitalized deferred financing costs, net of amortization | 0 | 0 | |
Repurchase Agreements: | MSRs | |||
Debt Instrument [Roll Forward] | |||
Acquisitions | 0 | ||
Borrowings | 0 | 0 | |
Repayments | 0 | 0 | |
Capitalized deferred financing costs, net of amortization | 0 | 0 | |
Repurchase Agreements: | Servicer Advances | |||
Debt Instrument [Roll Forward] | |||
Acquisitions | 0 | ||
Borrowings | 0 | 0 | |
Repayments | 0 | 0 | |
Capitalized deferred financing costs, net of amortization | 0 | 0 | |
Repurchase Agreements: | Real Estate Securities | |||
Debt Instrument [Roll Forward] | |||
Acquisitions | 1,957 | ||
Borrowings | 207,138,969 | 90,996,778 | |
Repayments | (196,120,793) | (85,912,169) | |
Capitalized deferred financing costs, net of amortization | (165) | (165) | |
Repurchase Agreements: | Residential mortgage loans and REO | |||
Debt Instrument [Roll Forward] | |||
Acquisitions | 437,675 | ||
Borrowings | 36,177,659 | 8,665,900 | |
Repayments | (34,833,314) | (7,298,734) | |
Capitalized deferred financing costs, net of amortization | 429 | 589 | |
Repurchase Agreements: | Consumer Loans | |||
Debt Instrument [Roll Forward] | |||
Acquisitions | 0 | ||
Borrowings | 0 | 0 | |
Repayments | 0 | 0 | |
Capitalized deferred financing costs, net of amortization | 0 | 0 | |
Notes and Bonds Payable: | |||
Debt Instrument [Roll Forward] | |||
Borrowings | 9,706,864 | 9,770,909 | |
Repayments | (9,303,527) | (9,892,659) | |
Discount on borrowings, net of amortization | 6,271 | 1,674 | |
Unrealized gain on notes, fair value | 1,236 | 684 | |
Capitalized deferred financing costs, net of amortization | (2,422) | (4,167) | |
Notes and Bonds Payable: | Excess MSRs | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | 297,563 | ||
Acquisitions | 0 | ||
Borrowings | 456,741 | 350,787 | |
Repayments | (537,200) | (537,227) | |
Discount on borrowings, net of amortization | 0 | 0 | |
Unrealized gain on notes, fair value | 0 | 0 | |
Capitalized deferred financing costs, net of amortization | 196 | 25 | |
Ending balance | 217,300 | 297,563 | |
Notes and Bonds Payable: | MSRs | |||
Debt Instrument [Roll Forward] | |||
Acquisitions | 0 | ||
Borrowings | 2,456,410 | 4,212,855 | |
Repayments | (2,178,755) | (3,022,785) | |
Discount on borrowings, net of amortization | 0 | 0 | |
Unrealized gain on notes, fair value | 0 | 0 | |
Capitalized deferred financing costs, net of amortization | 1,525 | (7,124) | |
Notes and Bonds Payable: | Servicer Advances | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | 3,382,455 | ||
Acquisitions | 0 | ||
Borrowings | 4,952,585 | 5,207,084 | |
Repayments | (5,149,327) | (5,887,384) | |
Discount on borrowings, net of amortization | 102 | 41 | |
Unrealized gain on notes, fair value | 0 | 0 | |
Capitalized deferred financing costs, net of amortization | (4,143) | 2,558 | |
Ending balance | 3,181,672 | 3,382,455 | |
Notes and Bonds Payable: | Real Estate Securities | |||
Debt Instrument [Roll Forward] | |||
Acquisitions | 0 | ||
Borrowings | 0 | 0 | |
Repayments | 0 | 0 | |
Discount on borrowings, net of amortization | 0 | 0 | |
Unrealized gain on notes, fair value | 0 | 0 | |
Capitalized deferred financing costs, net of amortization | 0 | 0 | |
Notes and Bonds Payable: | Residential mortgage loans and REO | |||
Debt Instrument [Roll Forward] | |||
Acquisitions | 209,459 | ||
Borrowings | 912,445 | 183 | |
Repayments | (383,635) | (136,947) | |
Discount on borrowings, net of amortization | 0 | 0 | |
Unrealized gain on notes, fair value | 1,236 | 684 | |
Capitalized deferred financing costs, net of amortization | 0 | 0 | |
Notes and Bonds Payable: | Consumer Loans | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | 936,447 | ||
Acquisitions | 0 | ||
Borrowings | 928,683 | 0 | |
Repayments | (1,054,610) | (308,316) | |
Discount on borrowings, net of amortization | 6,169 | 1,633 | |
Unrealized gain on notes, fair value | 0 | 0 | |
Capitalized deferred financing costs, net of amortization | 0 | 374 | |
Ending balance | $ 816,689 | $ 936,447 |
DEBT OBLIGATIONS - Contractual
DEBT OBLIGATIONS - Contractual Maturities of Debt Obligations (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt maturing in: | |
2020 | $ 29,710,887 |
2021 | 1,783,428 |
2022 | 1,863,618 |
2023 | 782,215 |
2024 | 389,177 |
2025 and thereafter | 1,121,519 |
Total long-term debt | 35,650,844 |
Nonrecourse | |
Debt maturing in: | |
2020 | 527,231 |
2021 | 1,030,932 |
2022 | 1,646,318 |
2023 | 400,000 |
2024 | 0 |
2025 and thereafter | 1,121,519 |
Total long-term debt | 4,726,000 |
Recourse | |
Debt maturing in: | |
2020 | 29,183,656 |
2021 | 752,496 |
2022 | 217,300 |
2023 | 382,215 |
2024 | 389,177 |
2025 and thereafter | 0 |
Total long-term debt | $ 30,924,844 |
DEBT OBLIGATIONS - Schedule o_2
DEBT OBLIGATIONS - Schedule of Borrowing Capacity (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Residential mortgage loans and REO | |
Debt Instrument [Line Items] | |
Borrowing Capacity | $ 6,296,106 |
Balance Outstanding | 3,685,133 |
Available Financing | 2,610,973 |
New Loan Originations | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 4,433,000 |
Balance Outstanding | 1,433,380 |
Available Financing | 2,999,620 |
Non-Agency RMBS | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 650,000 |
Balance Outstanding | 529,096 |
Available Financing | 120,904 |
Excess MSRs | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 150,000 |
Balance Outstanding | 0 |
Available Financing | 150,000 |
MSRs | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 1,575,000 |
Balance Outstanding | 1,309,484 |
Available Financing | 265,516 |
Servicer Advances | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 1,645,000 |
Balance Outstanding | 1,289,521 |
Available Financing | $ 355,479 |
Unused borrowing capacity fee | 0.02% |
Residential Mortgage Loans | |
Debt Instrument [Line Items] | |
Borrowing Capacity | $ 650,000 |
Balance Outstanding | 199,132 |
Available Financing | 450,868 |
Consumer loan bonds | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 150,000 |
Balance Outstanding | 0 |
Available Financing | 150,000 |
Debt Borrowing Capacity | |
Debt Instrument [Line Items] | |
Borrowing Capacity | 15,549,106 |
Balance Outstanding | 8,445,746 |
Available Financing | $ 7,103,360 |
FAIR VALUE MEASUREMENT - Carryi
FAIR VALUE MEASUREMENT - Carrying Values and Fair Values of Financial Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Investments in: | |||
Excess mortgage servicing rights (“MSRs”), at fair value | $ 379,747 | $ 447,860 | |
Mortgage servicing rights, at fair value | 5,686,233 | 4,528,604 | $ 2,334,232 |
Mortgage servicing rights financing receivables, at fair value | 1,718,273 | 1,644,504 | |
Real estate and other securities, available-for-sale | 19,477,728 | 11,636,581 | |
Residential mortgage loans, held for sale, at fair value | 4,613,612 | 2,808,529 | |
Residential mortgage loans, held-for-investment, fair value | 484,443 | 121,088 | |
Residential mortgage loans subject to repurchase, at fair value | 172,336 | 121,602 | $ 0 |
Derivative assets, at fair value | 41,501 | 10,893 | |
Restricted cash, at fair value | 162,197 | 164,020 | |
Liabilities: | |||
Residential mortgage loan repurchase liability, at fair value | 172,336 | 121,602 | |
Derivative liabilities, at fair value | 6,885 | 29,389 | |
Excess spread financing, at fair value | 31,777 | 39,304 | |
Contingent Consideration | 55,222 | 40,842 | |
Recurring Basis | |||
Investments in: | |||
Excess mortgage servicing rights, principal balance | 88,345,237 | 106,426,363 | |
Excess mortgage servicing rights, equity method investees, principal balance | 33,592,554 | 41,707,963 | |
Mortgage servicing rights, principal balance | 373,850,061 | 258,462,703 | |
Mortgage servicing rights, financing receivables, principal balance | 130,984,870 | 130,516,565 | |
Servicer advance investments, principal balance | 462,843 | 620,050 | |
Real estate and other securities, available-for-sale, principal balance | 36,159,591 | 22,152,845 | |
Residential mortgage loans, held-for-investment, principal balance | 502,352 | 706,111 | |
Residential mortgage loans, held-for-sale, principal balance | 1,531,505 | 1,043,550 | |
Residential mortgage loans, held for sale, principal balance | 4,675,806 | 2,934,727 | |
Residential mortgage loans, held-for-investment, principal balance | 452,771 | 122,260 | |
Residential mortgage loans subject to repurchase, principal balance | 172,336 | 121,602 | |
Consumer loans, principal balance | 823,917 | 1,072,577 | |
Derivative assets, principal balance | 8,360,894 | 840,179 | |
Cash and cash equivalents, principal balance | 528,737 | 251,058 | |
Restricted cash, principal balance | 162,197 | 164,020 | |
Liabilities: | |||
Repurchase agreements, principal balance | 27,917,709 | 15,555,156 | |
Notes and bonds payable, principal balance | 7,733,135 | 7,117,909 | |
Residential mortgage loan repurchase liability, principal balance | 172,336 | 121,602 | |
Derivative liabilities, principal balance | 17,379,407 | 15,759,782 | |
Excess spread financing, principal balance | 2,962,629 | 3,492,587 | |
Mortgage backed securities, issued at fair value | 659,700 | ||
Recurring Basis | Carrying Value | |||
Investments in: | |||
Excess mortgage servicing rights (“MSRs”), at fair value | 379,747 | 447,860 | |
Excess mortgage servicing rights, equity method investees, at fair value | 125,596 | 147,964 | |
Mortgage servicing rights, at fair value | 3,967,960 | 2,884,100 | |
Mortgage servicing rights financing receivables, at fair value | 1,718,273 | 1,644,504 | |
Servicer advance investments, at fair value | 581,777 | 735,846 | |
Real estate and other securities, available-for-sale | 19,477,728 | 11,636,581 | |
Residential mortgage loans, held-for-investment, at fair value | 441,263 | 614,241 | |
Residential mortgage loans, held-for-sale, at fair value | 1,429,052 | 932,480 | |
Residential mortgage loans, held for sale, at fair value | 4,613,612 | 2,808,529 | |
Residential mortgage loans, held-for-investment, fair value | 484,443 | 121,088 | |
Residential mortgage loans subject to repurchase, at fair value | 172,336 | 121,602 | |
Consumer loans, at fair value | 827,545 | 1,072,202 | |
Derivative assets, at fair value | 41,501 | 10,893 | |
Cash and cash equivalents, at fair value | 528,737 | 251,058 | |
Restricted cash, at fair value | 162,197 | ||
Other assets, at fair value | 60,654 | 16,991 | |
Assets, fair value | 35,012,421 | 23,609,959 | |
Liabilities: | |||
Repurchase agreements, at fair value | 27,916,225 | 15,553,969 | |
Notes and bonds payable, at fair value | 7,720,148 | 7,102,266 | |
Residential mortgage loan repurchase liability, at fair value | 172,336 | 121,602 | |
Derivative liabilities, at fair value | 6,885 | 29,389 | |
Excess spread financing, at fair value | 31,777 | 39,304 | |
Contingent Consideration | 55,222 | 40,842 | |
Liabilities, fair value | 35,902,593 | 22,887,372 | |
Recurring Basis | Fair Value | |||
Investments in: | |||
Excess mortgage servicing rights (“MSRs”), at fair value | 379,747 | 447,860 | |
Excess mortgage servicing rights, equity method investees, at fair value | 125,596 | 147,964 | |
Mortgage servicing rights, at fair value | 3,967,960 | 2,884,100 | |
Mortgage servicing rights financing receivables, at fair value | 1,718,273 | 1,644,504 | |
Servicer advance investments, at fair value | 581,777 | 735,846 | |
Real estate and other securities, available-for-sale | 19,477,728 | 11,636,581 | |
Residential mortgage loans, held-for-investment, at fair value | 435,234 | 625,321 | |
Residential mortgage loans, held-for-sale, at fair value | 1,438,302 | 958,970 | |
Residential mortgage loans, held for sale, at fair value | 4,613,612 | 2,808,529 | |
Residential mortgage loans, held-for-investment, fair value | 484,443 | 121,088 | |
Residential mortgage loans subject to repurchase, at fair value | 172,336 | 121,602 | |
Consumer loans, at fair value | 849,739 | 1,054,820 | |
Derivative assets, at fair value | 41,501 | 10,893 | |
Cash and cash equivalents, at fair value | 528,737 | 251,058 | |
Restricted cash, at fair value | 162,197 | 164,020 | |
Other assets, at fair value | 60,655 | 16,991 | |
Assets, fair value | 35,037,837 | 23,630,147 | |
Liabilities: | |||
Repurchase agreements, at fair value | 27,917,709 | 15,555,156 | |
Notes and bonds payable, at fair value | 7,779,060 | 7,076,400 | |
Residential mortgage loan repurchase liability, at fair value | 172,336 | 121,602 | |
Derivative liabilities, at fair value | 6,885 | 29,389 | |
Excess spread financing, at fair value | 31,777 | 39,304 | |
Contingent Consideration | 55,222 | 40,842 | |
Liabilities, fair value | 35,962,989 | 22,862,693 | |
Recurring Basis | Fair Value | Fair Value Measured at Net Asset Value Per Share [Member] | |||
Investments in: | |||
Other assets, at fair value | 74,000 | 74,300 | |
Recurring Basis | Fair Value | Level 1 | |||
Investments in: | |||
Excess mortgage servicing rights (“MSRs”), at fair value | 0 | 0 | |
Excess mortgage servicing rights, equity method investees, at fair value | 0 | 0 | |
Mortgage servicing rights, at fair value | 0 | 0 | |
Mortgage servicing rights financing receivables, at fair value | 0 | 0 | |
Servicer advance investments, at fair value | 0 | 0 | |
Real estate and other securities, available-for-sale | 0 | 0 | |
Residential mortgage loans, held-for-investment, at fair value | 0 | 0 | |
Residential mortgage loans, held-for-sale, at fair value | 0 | 0 | |
Residential mortgage loans, held for sale, at fair value | 0 | 0 | |
Residential mortgage loans, held-for-investment, fair value | 0 | 0 | |
Residential mortgage loans subject to repurchase, at fair value | 0 | 0 | |
Consumer loans, at fair value | 0 | 0 | |
Derivative assets, at fair value | 0 | 0 | |
Cash and cash equivalents, at fair value | 528,737 | 251,058 | |
Restricted cash, at fair value | 162,197 | 164,020 | |
Other assets, at fair value | 7,952 | 7,778 | |
Assets, fair value | 698,886 | 422,856 | |
Liabilities: | |||
Repurchase agreements, at fair value | 0 | 0 | |
Notes and bonds payable, at fair value | 0 | 0 | |
Residential mortgage loan repurchase liability, at fair value | 0 | 0 | |
Derivative liabilities, at fair value | 0 | 0 | |
Excess spread financing, at fair value | 0 | 0 | |
Contingent Consideration | 0 | 0 | |
Liabilities, fair value | 0 | 0 | |
Recurring Basis | Fair Value | Level 2 | |||
Investments in: | |||
Excess mortgage servicing rights (“MSRs”), at fair value | 0 | 0 | |
Excess mortgage servicing rights, equity method investees, at fair value | 0 | 0 | |
Mortgage servicing rights, at fair value | 0 | 0 | |
Mortgage servicing rights financing receivables, at fair value | 0 | 0 | |
Servicer advance investments, at fair value | 0 | 0 | |
Real estate and other securities, available-for-sale | 11,519,943 | 2,665,618 | |
Residential mortgage loans, held-for-investment, at fair value | 0 | 0 | |
Residential mortgage loans, held-for-sale, at fair value | 0 | 0 | |
Residential mortgage loans, held for sale, at fair value | 1,099,230 | 213,882 | |
Residential mortgage loans, held-for-investment, fair value | 0 | 0 | |
Residential mortgage loans subject to repurchase, at fair value | 172,336 | 121,602 | |
Consumer loans, at fair value | 0 | 0 | |
Derivative assets, at fair value | 155 | 42 | |
Cash and cash equivalents, at fair value | 0 | 0 | |
Restricted cash, at fair value | 0 | 0 | |
Other assets, at fair value | 0 | 0 | |
Assets, fair value | 12,791,664 | 3,001,144 | |
Liabilities: | |||
Repurchase agreements, at fair value | 27,917,709 | 15,555,156 | |
Notes and bonds payable, at fair value | 0 | 0 | |
Residential mortgage loan repurchase liability, at fair value | 172,336 | 121,602 | |
Derivative liabilities, at fair value | 5,430 | 29,166 | |
Excess spread financing, at fair value | 0 | 0 | |
Contingent Consideration | 0 | 0 | |
Liabilities, fair value | 28,095,475 | 15,705,924 | |
Recurring Basis | Fair Value | Level 3 | |||
Investments in: | |||
Excess mortgage servicing rights (“MSRs”), at fair value | 379,747 | 447,860 | |
Excess mortgage servicing rights, equity method investees, at fair value | 125,596 | 147,964 | |
Mortgage servicing rights, at fair value | 3,967,960 | 2,884,100 | |
Mortgage servicing rights financing receivables, at fair value | 1,718,273 | 1,644,504 | |
Servicer advance investments, at fair value | 581,777 | 735,846 | |
Real estate and other securities, available-for-sale | 7,957,785 | 8,970,963 | |
Residential mortgage loans, held-for-investment, at fair value | 435,234 | 625,321 | |
Residential mortgage loans, held-for-sale, at fair value | 1,438,302 | 958,970 | |
Residential mortgage loans, held for sale, at fair value | 3,514,382 | 2,594,647 | |
Residential mortgage loans, held-for-investment, fair value | 484,443 | 121,088 | |
Residential mortgage loans subject to repurchase, at fair value | 0 | 0 | |
Consumer loans, at fair value | 849,739 | 1,054,820 | |
Derivative assets, at fair value | 41,346 | 10,851 | |
Cash and cash equivalents, at fair value | 0 | 0 | |
Restricted cash, at fair value | 0 | 0 | |
Other assets, at fair value | 52,703 | 9,213 | |
Assets, fair value | 21,547,287 | 20,206,147 | |
Liabilities: | |||
Repurchase agreements, at fair value | 0 | 0 | |
Notes and bonds payable, at fair value | 7,779,060 | 7,076,400 | |
Residential mortgage loan repurchase liability, at fair value | 0 | 0 | |
Derivative liabilities, at fair value | 1,455 | 223 | |
Excess spread financing, at fair value | 31,777 | 39,304 | |
Contingent Consideration | 55,222 | 40,842 | |
Liabilities, fair value | 7,867,514 | 7,156,769 | |
Equal to Greater than 90 Days Past Due | Recurring Basis | Fair Value | |||
Investments in: | |||
Residential mortgage loans, held for sale, at fair value | 267,700 | 88,700 | |
Residential mortgage loans, held-for-investment, fair value | $ 21,600 | $ 400 |
FAIR VALUE MEASUREMENT - Financ
FAIR VALUE MEASUREMENT - Financial Assets Measured at Fair Value on a Recurring Basis using Level 3 Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | ||
Purchases, sales and repayments | ||
Purchases | $ 9,465,922 | |
Balance, ending | ||
Non-Agency | ||
Fair Value, Assets Measured on Recurring Basis, Gains (losses) included in net income | ||
Included in gain (loss) on settlement of investments, net | $ 97,200 | $ (1,300) |
Excess MSRs Investees | ||
Purchases, sales and repayments | ||
New Residential’s ownership | 50.00% | 50.00% |
Recurring Basis | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | $ 17,172,492 | $ 13,681,878 |
Transfers | ||
Transfers from Level 3 | (32,806) | 0 |
Transfers to Level 3 | 315,577 | 0 |
Acquisition | 589,774 | 341,560 |
Transfers from investments in mortgage servicing rights financing receivables to investments in mortgage servicing rights | 0 | |
Fair Value, Assets Measured on Recurring Basis, Gains (losses) included in net income | ||
Included in other-than-temporary impairment on securities | (25,174) | (24,940) |
Included in change in fair value of investments in excess mortgage servicing rights | (10,505) | (58,656) |
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 6,800 | 8,357 |
Included in servicing revenue, net | (721,356) | (199,836) |
Included in change in fair value of investments in mortgage servicing rights financing receivable | 31,550 | |
Included in change in fair value of servicer advance investments | 10,288 | (89,332) |
Included in change in fair value of investments in residential mortgage loans | (63,347) | 46,065 |
Included in gain (loss) on settlement of investments, net | 98,700 | 111,714 |
Included in other income (loss), net | 33,706 | 16,576 |
Gains (losses) included in other comprehensive income | 238,217 | 31,031 |
Included in change in fair value of investments in mortgage servicing rights financing receivables | (189,023) | |
Interest income | 363,018 | 471,676 |
Purchases, sales and repayments | ||
Purchases | 16,217,207 | |
Proceeds from sales | (12,622,386) | (118,780) |
Proceeds from repayments | (3,829,844) | (3,781,138) |
Originations | 1,218,516 | 35,311 |
Ocwen Transaction | (2,796,466) | |
Balance, ending | 18,769,854 | 17,172,492 |
Recurring Basis | Level 3 | Consumer loan bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 735,846 | 4,027,379 |
Transfers | ||
Transfers from Level 3 | 0 | 0 |
Transfers to Level 3 | 0 | 0 |
Acquisition | 0 | 0 |
Transfers from investments in mortgage servicing rights financing receivables to investments in mortgage servicing rights | 0 | |
Fair Value, Assets Measured on Recurring Basis, Gains (losses) included in net income | ||
Included in other-than-temporary impairment on securities | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 0 | 0 |
Included in servicing revenue, net | 0 | 0 |
Included in change in fair value of investments in mortgage servicing rights financing receivable | 0 | |
Included in change in fair value of servicer advance investments | 10,288 | (89,332) |
Included in change in fair value of investments in residential mortgage loans | 0 | 0 |
Included in gain (loss) on settlement of investments, net | 0 | 72,585 |
Included in other income (loss), net | 0 | |
Gains (losses) included in other comprehensive income | 0 | |
Included in change in fair value of investments in mortgage servicing rights financing receivables | 0 | |
Interest income | 27,666 | 50,218 |
Purchases, sales and repayments | ||
Purchases | 1,622,808 | 2,332,989 |
Proceeds from sales | 0 | 0 |
Proceeds from repayments | (1,814,831) | (2,455,155) |
Originations | 0 | 0 |
Ocwen Transaction | (3,202,838) | |
Balance, ending | 581,777 | 735,846 |
Recurring Basis | Level 3 | MSRs | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 2,884,100 | 1,735,504 |
Transfers | ||
Transfers from Level 3 | 0 | 0 |
Transfers to Level 3 | 0 | 0 |
Acquisition | 387,170 | 275,964 |
Transfers from investments in mortgage servicing rights financing receivables to investments in mortgage servicing rights | 367,121 | |
Fair Value, Assets Measured on Recurring Basis, Gains (losses) included in net income | ||
Included in other-than-temporary impairment on securities | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 0 | 0 |
Included in servicing revenue, net | (721,356) | (199,836) |
Included in change in fair value of investments in mortgage servicing rights financing receivable | 0 | |
Included in change in fair value of servicer advance investments | 0 | 0 |
Included in change in fair value of investments in residential mortgage loans | 0 | 0 |
Included in gain (loss) on settlement of investments, net | 0 | 0 |
Included in other income (loss), net | 0 | 0 |
Gains (losses) included in other comprehensive income | 0 | 0 |
Included in change in fair value of investments in mortgage servicing rights financing receivables | 0 | |
Interest income | 0 | 0 |
Purchases, sales and repayments | ||
Purchases | 690,049 | 1,042,933 |
Proceeds from sales | (1,539) | (5,776) |
Proceeds from repayments | (11,625) | 0 |
Originations | 374,040 | 35,311 |
Ocwen Transaction | 0 | |
Balance, ending | 3,967,960 | 2,884,100 |
Recurring Basis | Level 3 | Mortgage Servicing Rights Financing Receivables | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 1,644,504 | 598,728 |
Transfers | ||
Transfers from Level 3 | 0 | 0 |
Transfers to Level 3 | 0 | 0 |
Acquisition | 0 | (124,652) |
Transfers from investments in mortgage servicing rights financing receivables to investments in mortgage servicing rights | (367,121) | |
Fair Value, Assets Measured on Recurring Basis, Gains (losses) included in net income | ||
Included in other-than-temporary impairment on securities | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 0 | 0 |
Included in servicing revenue, net | 0 | 0 |
Included in change in fair value of investments in mortgage servicing rights financing receivable | 31,550 | |
Included in change in fair value of servicer advance investments | 0 | 0 |
Included in change in fair value of investments in residential mortgage loans | 0 | 0 |
Included in gain (loss) on settlement of investments, net | 0 | 0 |
Included in other income (loss), net | 0 | 0 |
Gains (losses) included in other comprehensive income | 0 | 0 |
Included in change in fair value of investments in mortgage servicing rights financing receivables | (189,023) | |
Interest income | 0 | 0 |
Purchases, sales and repayments | ||
Purchases | 735,152 | 128,357 |
Proceeds from sales | (22,989) | (7,472) |
Proceeds from repayments | (82,250) | 0 |
Originations | 0 | 0 |
Ocwen Transaction | 1,017,993 | |
Balance, ending | 1,718,273 | 1,644,504 |
Recurring Basis | Level 3 | Non-Agency | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 8,970,963 | 5,974,789 |
Transfers | ||
Transfers from Level 3 | 0 | 0 |
Transfers to Level 3 | 0 | 0 |
Acquisition | (178,435) | 0 |
Transfers from investments in mortgage servicing rights financing receivables to investments in mortgage servicing rights | 0 | |
Fair Value, Assets Measured on Recurring Basis, Gains (losses) included in net income | ||
Included in other-than-temporary impairment on securities | (25,174) | (24,940) |
Included in change in fair value of investments in excess mortgage servicing rights | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 0 | 0 |
Included in servicing revenue, net | 0 | 0 |
Included in change in fair value of investments in mortgage servicing rights financing receivable | 0 | |
Included in change in fair value of servicer advance investments | 0 | 0 |
Included in change in fair value of investments in residential mortgage loans | 0 | 0 |
Included in gain (loss) on settlement of investments, net | 97,191 | (1,288) |
Included in other income (loss), net | 2,101 | 10,283 |
Gains (losses) included in other comprehensive income | 238,217 | 31,031 |
Included in change in fair value of investments in mortgage servicing rights financing receivables | 0 | |
Interest income | 302,705 | 377,018 |
Purchases, sales and repayments | ||
Purchases | 2,058,953 | 3,854,439 |
Proceeds from sales | (1,949,300) | (86,448) |
Proceeds from repayments | (1,559,436) | (1,163,921) |
Originations | 0 | |
Ocwen Transaction | 0 | |
Balance, ending | 7,957,785 | 8,970,963 |
Recurring Basis | Level 3 | Derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 10,628 | 0 |
Transfers | ||
Transfers from Level 3 | 0 | 0 |
Transfers to Level 3 | 0 | 0 |
Acquisition | 0 | 10,604 |
Transfers from investments in mortgage servicing rights financing receivables to investments in mortgage servicing rights | 0 | |
Fair Value, Assets Measured on Recurring Basis, Gains (losses) included in net income | ||
Included in other-than-temporary impairment on securities | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 0 | 0 |
Included in servicing revenue, net | 0 | 0 |
Included in change in fair value of investments in mortgage servicing rights financing receivable | 0 | |
Included in change in fair value of servicer advance investments | 0 | 0 |
Included in change in fair value of investments in residential mortgage loans | 0 | 0 |
Included in gain (loss) on settlement of investments, net | 0 | 0 |
Included in other income (loss), net | 29,263 | 24 |
Gains (losses) included in other comprehensive income | 0 | 0 |
Included in change in fair value of investments in mortgage servicing rights financing receivables | 0 | |
Interest income | 0 | 0 |
Purchases, sales and repayments | ||
Purchases | 0 | 0 |
Proceeds from sales | 0 | 0 |
Proceeds from repayments | 0 | 0 |
Originations | 0 | 0 |
Ocwen Transaction | 0 | |
Balance, ending | 39,891 | 10,628 |
Recurring Basis | Level 3 | Residential Mortgage Loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 2,330,627 | 0 |
Transfers | ||
Transfers from Level 3 | (32,806) | 0 |
Transfers to Level 3 | 315,577 | 0 |
Acquisition | 381,039 | 179,644 |
Transfers from investments in mortgage servicing rights financing receivables to investments in mortgage servicing rights | 0 | |
Fair Value, Assets Measured on Recurring Basis, Gains (losses) included in net income | ||
Included in other-than-temporary impairment on securities | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 0 | 0 |
Included in servicing revenue, net | 0 | 0 |
Included in change in fair value of investments in mortgage servicing rights financing receivable | 0 | |
Included in change in fair value of servicer advance investments | 0 | 0 |
Included in change in fair value of investments in residential mortgage loans | (63,347) | 46,065 |
Included in gain (loss) on settlement of investments, net | 0 | 0 |
Included in other income (loss), net | 0 | (175) |
Gains (losses) included in other comprehensive income | 0 | 0 |
Included in change in fair value of investments in mortgage servicing rights financing receivables | 0 | |
Interest income | 0 | 0 |
Purchases, sales and repayments | ||
Purchases | 11,110,245 | 2,107,204 |
Proceeds from sales | (10,638,483) | 0 |
Proceeds from repayments | (248,503) | (2,111) |
Originations | 844,476 | 0 |
Ocwen Transaction | 0 | |
Balance, ending | 3,998,825 | 2,330,627 |
Recurring Basis | Level 3 | MSRs Agency | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 257,387 | 324,636 |
Transfers | ||
Transfers from Level 3 | 0 | 0 |
Transfers to Level 3 | 0 | 0 |
Acquisition | 0 | 0 |
Transfers from investments in mortgage servicing rights financing receivables to investments in mortgage servicing rights | 0 | |
Fair Value, Assets Measured on Recurring Basis, Gains (losses) included in net income | ||
Included in other-than-temporary impairment on securities | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights | (7,559) | (18,099) |
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 0 | 0 |
Included in servicing revenue, net | 0 | 0 |
Included in change in fair value of investments in mortgage servicing rights financing receivable | 0 | |
Included in change in fair value of servicer advance investments | 0 | 0 |
Included in change in fair value of investments in residential mortgage loans | 0 | 0 |
Included in gain (loss) on settlement of investments, net | 1,479 | 0 |
Included in other income (loss), net | 1,523 | 6,137 |
Gains (losses) included in other comprehensive income | 0 | 0 |
Included in change in fair value of investments in mortgage servicing rights financing receivables | 0 | |
Interest income | 14,895 | 21,936 |
Purchases, sales and repayments | ||
Purchases | 0 | 0 |
Proceeds from sales | (10,018) | (19,084) |
Proceeds from repayments | (48,074) | (58,139) |
Originations | 0 | 0 |
Ocwen Transaction | 0 | |
Balance, ending | 209,633 | 257,387 |
Recurring Basis | Level 3 | MSRs Agency | Excess MSRs Investees | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 147,964 | 171,765 |
Transfers | ||
Transfers from Level 3 | 0 | 0 |
Transfers to Level 3 | 0 | 0 |
Acquisition | 0 | 0 |
Transfers from investments in mortgage servicing rights financing receivables to investments in mortgage servicing rights | 0 | |
Fair Value, Assets Measured on Recurring Basis, Gains (losses) included in net income | ||
Included in other-than-temporary impairment on securities | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 6,800 | 8,357 |
Included in servicing revenue, net | 0 | 0 |
Included in change in fair value of investments in mortgage servicing rights financing receivable | 0 | |
Included in change in fair value of servicer advance investments | 0 | 0 |
Included in change in fair value of investments in residential mortgage loans | 0 | 0 |
Included in gain (loss) on settlement of investments, net | 0 | 0 |
Included in other income (loss), net | 0 | 0 |
Gains (losses) included in other comprehensive income | 0 | 0 |
Included in change in fair value of investments in mortgage servicing rights financing receivables | 0 | |
Interest income | 0 | 0 |
Purchases, sales and repayments | ||
Purchases | 0 | 0 |
Proceeds from sales | 0 | 0 |
Proceeds from repayments | (29,168) | (32,158) |
Originations | 0 | 0 |
Ocwen Transaction | 0 | |
Balance, ending | 125,596 | 147,964 |
Recurring Basis | Level 3 | MSRs Non-Agency | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning | 190,473 | 849,077 |
Transfers | ||
Transfers from Level 3 | 0 | 0 |
Transfers to Level 3 | 0 | 0 |
Acquisition | 0 | 0 |
Transfers from investments in mortgage servicing rights financing receivables to investments in mortgage servicing rights | 0 | |
Fair Value, Assets Measured on Recurring Basis, Gains (losses) included in net income | ||
Included in other-than-temporary impairment on securities | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights | (2,946) | (40,557) |
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 0 | 0 |
Included in servicing revenue, net | 0 | 0 |
Included in change in fair value of investments in mortgage servicing rights financing receivable | 0 | |
Included in change in fair value of servicer advance investments | 0 | 0 |
Included in change in fair value of investments in residential mortgage loans | 0 | 0 |
Included in gain (loss) on settlement of investments, net | 30 | 40,417 |
Included in other income (loss), net | 819 | 307 |
Gains (losses) included in other comprehensive income | 0 | 0 |
Included in change in fair value of investments in mortgage servicing rights financing receivables | 0 | |
Interest income | 17,752 | 22,504 |
Purchases, sales and repayments | ||
Purchases | 0 | 0 |
Proceeds from sales | (57) | 0 |
Proceeds from repayments | (35,957) | (69,654) |
Originations | 0 | 0 |
Ocwen Transaction | (611,621) | |
Balance, ending | $ 170,114 | $ 190,473 |
FAIR VALUE MEASUREMENT - Fair V
FAIR VALUE MEASUREMENT - Fair Value Liabilities Measured at Fair Value on a Recurring Basis using Level 3 Inputs (Details) - Level 3 - Recurring Basis - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value, liability, beginning balance | $ 197,194 | $ 0 |
Transfers | ||
Transfers from Level 3 | 0 | 0 |
Transfers to Level 3 | 0 | 0 |
Acquisitions | 13,893 | 208,226 |
Ditech Acquisition | 209,459 | |
Gains (losses) included in net income | ||
Included in other-than-temporary impairment on securities | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 0 | 0 |
Included in servicing revenue, net | (8,406) | (8,591) |
Included in change in fair value of investments in notes receivable - rights to MSRs | 0 | 0 |
Included in change in fair value of servicer advance investments | 0 | 0 |
Included in change in fair value of investments in residential mortgage loans | 0 | |
Included in gain (loss) on settlement of investments, net | 0 | 0 |
Included in other income | 11,723 | 2,264 |
Gains (losses) included in other comprehensive income, net of tax | 0 | 0 |
Interest income | 0 | 0 |
Purchases, sales and payments | ||
Purchases | 378,569 | 0 |
Proceeds from sales | 0 | 0 |
Proceeds from repayments | (56,574) | (4,338) |
Other | 879 | (367) |
Fair value, liability, ending balance | 746,737 | 197,194 |
Excess Spread Financing | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value, liability, beginning balance | 39,304 | 0 |
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | |
Acquisitions | 0 | |
Ditech Acquisition | 0 | |
Gains (losses) included in net income | ||
Included in other-than-temporary impairment on securities | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 0 | 0 |
Included in servicing revenue, net | (8,406) | (8,591) |
Included in change in fair value of investments in notes receivable - rights to MSRs | 0 | 0 |
Included in change in fair value of servicer advance investments | 0 | 0 |
Included in change in fair value of investments in residential mortgage loans | 0 | |
Included in gain (loss) on settlement of investments, net | 0 | 0 |
Included in other income | 0 | 0 |
Gains (losses) included in other comprehensive income, net of tax | 0 | 0 |
Interest income | 0 | 0 |
Purchases, sales and payments | ||
Purchases | 0 | 0 |
Proceeds from sales | 0 | 0 |
Proceeds from repayments | 0 | 0 |
Other | 879 | (367) |
Fair value, liability, ending balance | 31,777 | 39,304 |
Mortgage Backed Securities Issued | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value, liability, beginning balance | 117,048 | 0 |
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | |
Acquisitions | 0 | |
Ditech Acquisition | 209,459 | |
Gains (losses) included in net income | ||
Included in other-than-temporary impairment on securities | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 0 | 0 |
Included in servicing revenue, net | 0 | 0 |
Included in change in fair value of investments in notes receivable - rights to MSRs | 0 | 0 |
Included in change in fair value of servicer advance investments | 0 | 0 |
Included in change in fair value of investments in residential mortgage loans | 0 | |
Included in gain (loss) on settlement of investments, net | 0 | 0 |
Included in other income | 1,236 | 684 |
Gains (losses) included in other comprehensive income, net of tax | 0 | 0 |
Interest income | 0 | 0 |
Purchases, sales and payments | ||
Purchases | 378,569 | 0 |
Proceeds from sales | 0 | 0 |
Proceeds from repayments | (46,574) | (4,338) |
Other | 0 | 0 |
Fair value, liability, ending balance | 659,738 | 117,048 |
Contingent Consideration | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value, liability, beginning balance | 40,842 | 0 |
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | |
Acquisitions | 13,893 | |
Ditech Acquisition | 0 | |
Gains (losses) included in net income | ||
Included in other-than-temporary impairment on securities | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights | 0 | 0 |
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | 0 | 0 |
Included in servicing revenue, net | 0 | 0 |
Included in change in fair value of investments in notes receivable - rights to MSRs | 0 | 0 |
Included in change in fair value of servicer advance investments | 0 | 0 |
Included in change in fair value of investments in residential mortgage loans | 0 | |
Included in gain (loss) on settlement of investments, net | 0 | 0 |
Included in other income | 10,487 | 1,580 |
Gains (losses) included in other comprehensive income, net of tax | 0 | 0 |
Interest income | 0 | 0 |
Purchases, sales and payments | ||
Purchases | 0 | 0 |
Proceeds from sales | 0 | 0 |
Proceeds from repayments | (10,000) | 0 |
Other | 0 | 0 |
Fair value, liability, ending balance | $ 55,222 | 40,842 |
MSRs Agency | Excess Spread Financing | ||
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | |
Acquisitions | 48,262 | |
MSRs Non-Agency | Mortgage Backed Securities Issued | ||
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | |
Acquisitions | 120,702 | |
Excess MSRs Investees | MSRs Agency | Contingent Consideration | ||
Transfers | ||
Transfers from Level 3 | 0 | |
Transfers to Level 3 | 0 | |
Acquisitions | $ 39,262 |
FAIR VALUE MEASUREMENT - Weight
FAIR VALUE MEASUREMENT - Weighted Average Inputs used in Valuing Excess MSRs Owned Directly and through Equity Method Investees (Details) | 12 Months Ended | |
Dec. 31, 2019$ / Loan | Dec. 31, 2018$ / Loan | |
Agency | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing Assets And Servicing Liabilities At Fair Value, Monthly Cost Per Loan | 7.18 | 7.30 |
Non-Agency | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing Assets And Servicing Liabilities At Fair Value, Monthly Cost Per Loan | 11.28 | 11.45 |
Ginnie Mae | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing Assets And Servicing Liabilities At Fair Value, Monthly Cost Per Loan | 9.20 | 10.06 |
Prepayment Rate | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.095 | 0.095 |
Prepayment Rate | Agency | MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.125 | 0.094 |
Prepayment Rate | Agency | Mortgage Servicing Rights Financing Receivable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.154 | 0.095 |
Prepayment Rate | Non-Agency | MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.116 | 0.132 |
Prepayment Rate | Non-Agency | Mortgage Servicing Rights Financing Receivable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.083 | 0.082 |
Prepayment Rate | Ginnie Mae | MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.162 | |
Prepayment Rate | Ginnie Mae | Mortgage Servicing Rights Financing Receivable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.112 | |
Prepayment Rate | Directly Held | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.093 | 0.094 |
Prepayment Rate | Directly Held | Agency | Original Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.086 | 0.098 |
Prepayment Rate | Directly Held | Agency | Recaptured Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.107 | 0.080 |
Prepayment Rate | Directly Held | Agency | Recapture Agreement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.079 | |
Prepayment Rate | Directly Held | Agency | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.092 | 0.091 |
Prepayment Rate | Directly Held | Non-Agency | Original Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.097 | 0.104 |
Prepayment Rate | Directly Held | Non-Agency | Recaptured Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.075 | 0.080 |
Prepayment Rate | Directly Held | Non-Agency | Recapture Agreement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.079 | |
Prepayment Rate | Directly Held | Non-Agency | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.094 | 0.099 |
Prepayment Rate | Held through Equity Method Investees | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.098 | 0.096 |
Prepayment Rate | Held through Equity Method Investees | Agency | Original Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.093 | 0.109 |
Prepayment Rate | Held through Equity Method Investees | Agency | Recaptured Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.103 | 0.085 |
Prepayment Rate | Held through Equity Method Investees | Agency | Recapture Agreement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.086 | |
Delinquency | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.010 | 0.027 |
Delinquency | Agency | MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.010 | 0.010 |
Delinquency | Agency | Mortgage Servicing Rights Financing Receivable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.004 | 0.009 |
Delinquency | Non-Agency | MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.012 | 0.009 |
Delinquency | Non-Agency | Mortgage Servicing Rights Financing Receivable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.144 | 0.172 |
Delinquency | Ginnie Mae | MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.044 | |
Delinquency | Ginnie Mae | Mortgage Servicing Rights Financing Receivable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.039 | |
Delinquency | Directly Held | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.009 | 0.024 |
Delinquency | Directly Held | Agency | Original Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.011 | 0.025 |
Delinquency | Directly Held | Agency | Recaptured Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.005 | 0.021 |
Delinquency | Directly Held | Agency | Recapture Agreement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.022 | |
Delinquency | Directly Held | Agency | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.009 | 0.024 |
Delinquency | Held through Equity Method Investees | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.011 | 0.032 |
Delinquency | Held through Equity Method Investees | Agency | Original Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.014 | 0.039 |
Delinquency | Held through Equity Method Investees | Agency | Recaptured Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.008 | 0.026 |
Delinquency | Held through Equity Method Investees | Agency | Recapture Agreement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.027 | |
Recapture Rate | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.214 | 0.245 |
Recapture Rate | Agency | MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.233 | 0.222 |
Recapture Rate | Agency | Mortgage Servicing Rights Financing Receivable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.158 | 0.147 |
Recapture Rate | Non-Agency | MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.221 | 0.100 |
Recapture Rate | Non-Agency | Mortgage Servicing Rights Financing Receivable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.093 | 0.050 |
Recapture Rate | Ginnie Mae | MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.281 | |
Recapture Rate | Ginnie Mae | Mortgage Servicing Rights Financing Receivable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.242 | |
Recapture Rate | Directly Held | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.194 | 0.215 |
Recapture Rate | Directly Held | Agency | Original Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.203 | 0.263 |
Recapture Rate | Directly Held | Agency | Recaptured Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.278 | 0.236 |
Recapture Rate | Directly Held | Agency | Recapture Agreement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.248 | |
Recapture Rate | Directly Held | Agency | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.223 | 0.254 |
Recapture Rate | Directly Held | Non-Agency | Original Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.155 | 0.154 |
Recapture Rate | Directly Held | Non-Agency | Recaptured Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.174 | 0.199 |
Recapture Rate | Directly Held | Non-Agency | Recapture Agreement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.198 | |
Recapture Rate | Directly Held | Non-Agency | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.158 | 0.163 |
Recapture Rate | Held through Equity Method Investees | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.251 | 0.294 |
Recapture Rate | Held through Equity Method Investees | Agency | Original Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.237 | 0.296 |
Recapture Rate | Held through Equity Method Investees | Agency | Recaptured Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.267 | 0.288 |
Recapture Rate | Held through Equity Method Investees | Agency | Recapture Agreement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.304 | |
Servicing Amount Percent | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0020 | 0.0020 |
Servicing Amount Percent | Agency | MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0028 | 0.0026 |
Servicing Amount Percent | Agency | Mortgage Servicing Rights Financing Receivable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0027 | 0.0027 |
Servicing Amount Percent | Non-Agency | MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0031 | 0.0025 |
Servicing Amount Percent | Non-Agency | Mortgage Servicing Rights Financing Receivable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0047 | 0.0045 |
Servicing Amount Percent | Ginnie Mae | MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0042 | 0.0033 |
Servicing Amount Percent | Directly Held | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0019 | |
Servicing Amount Percent | Directly Held | Agency | Original Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0021 | 0.0021 |
Servicing Amount Percent | Directly Held | Agency | Recaptured Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0023 | 0.0022 |
Servicing Amount Percent | Directly Held | Agency | Recapture Agreement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0022 | |
Servicing Amount Percent | Directly Held | Agency | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0022 | 0.0021 |
Servicing Amount Percent | Directly Held | Non-Agency | Original Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0015 | 0.0015 |
Servicing Amount Percent | Directly Held | Non-Agency | Recaptured Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0024 | 0.0023 |
Servicing Amount Percent | Directly Held | Non-Agency | Recapture Agreement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0016 | 0.0020 |
Servicing Amount Percent | Directly Held | Non-Agency | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0019 | 0.0016 |
Servicing Amount Percent | Held through Equity Method Investees | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0021 | 0.0021 |
Servicing Amount Percent | Held through Equity Method Investees | Agency | Original Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0019 | 0.0019 |
Servicing Amount Percent | Held through Equity Method Investees | Agency | Recaptured Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0024 | 0.0023 |
Servicing Amount Percent | Held through Equity Method Investees | Agency | Recapture Agreement | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.0023 | |
Collateral Weighted Average Maturity Years | Weighted Average | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 21 | 22 |
Collateral Weighted Average Maturity Years | Agency | Weighted Average | MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 22 | 22 |
Collateral Weighted Average Maturity Years | Agency | Weighted Average | Mortgage Servicing Rights Financing Receivable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 25 | 20 |
Collateral Weighted Average Maturity Years | Non-Agency | Weighted Average | MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 16 | 25 |
Collateral Weighted Average Maturity Years | Non-Agency | Weighted Average | Mortgage Servicing Rights Financing Receivable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 25 | 26 |
Collateral Weighted Average Maturity Years | Ginnie Mae | Weighted Average | MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 27 | |
Collateral Weighted Average Maturity Years | Ginnie Mae | Weighted Average | Mortgage Servicing Rights Financing Receivable | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 27 | |
Collateral Weighted Average Maturity Years | Directly Held | Weighted Average | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 22 | 23 |
Collateral Weighted Average Maturity Years | Directly Held | Agency | Weighted Average | Original Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 20 | 21 |
Collateral Weighted Average Maturity Years | Directly Held | Agency | Weighted Average | Recaptured Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 23 | 24 |
Collateral Weighted Average Maturity Years | Directly Held | Agency | Weighted Average | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 21 | 22 |
Collateral Weighted Average Maturity Years | Directly Held | Non-Agency | Weighted Average | Original Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 24 | 24 |
Collateral Weighted Average Maturity Years | Directly Held | Non-Agency | Weighted Average | Recaptured Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 23 | 24 |
Collateral Weighted Average Maturity Years | Directly Held | Non-Agency | Weighted Average | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 24 | 24 |
Collateral Weighted Average Maturity Years | Held through Equity Method Investees | Weighted Average | Excess MSRs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 20 | 21 |
Collateral Weighted Average Maturity Years | Held through Equity Method Investees | Agency | Weighted Average | Original Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 19 | 20 |
Collateral Weighted Average Maturity Years | Held through Equity Method Investees | Agency | Weighted Average | Recaptured Pools | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 22 | 23 |
FAIR VALUE MEASUREMENT - Narrat
FAIR VALUE MEASUREMENT - Narrative (Details) $ in Millions | Sep. 05, 2019USD ($)earnout_payment | Sep. 03, 2019USD ($) | Jul. 03, 2018USD ($)earnout_payment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||
Assets, fair value adjustment | $ 14.4 | ||||
Minimum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Recapture rate, term (in months) | 3 months | ||||
Broker price discount | 10.00% | ||||
Maximum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Recapture rate, term (in months) | 6 months | ||||
Broker price discount | 25.00% | ||||
Real Estate Owned | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets, fair value adjustment | $ (0.6) | ||||
Real Estate Acquired in Satisfaction of Debt | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets, fair value adjustment | 3.1 | ||||
Residential Mortgage Loans | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets, fair value adjustment | $ (20) | ||||
Loans Held-for-sale | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets, fair value adjustment | $ 11.3 | ||||
Maturity Greater than 30 Days | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Days delinquent (in days) | 30 days | ||||
Mortgage Servicing Rights Financing Receivable | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Discount rate | 8.90% | 10.30% | |||
MSRs | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Discount rate | 7.80% | 8.70% | |||
MSRs | Excess MSRs Investees | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Discount rate | 7.80% | 8.80% | |||
Nonrecurring | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets measured at fair value on a nonrecurring basis | $ 1,242.2 | $ 764.1 | |||
Nonrecurring | Residential Mortgage Loans Held-for-sale Carried At Lower Cost Or Market | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets measured at fair value on a nonrecurring basis | 1,189.5 | ||||
Nonrecurring | Real Estate Owned | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets measured at fair value on a nonrecurring basis | $ 52.7 | ||||
Nonrecurring | Real Estate Securities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets measured at fair value on a nonrecurring basis | 689.1 | ||||
Nonrecurring | Real Estate Acquired in Satisfaction of Debt | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets measured at fair value on a nonrecurring basis | $ 75 | ||||
LIBOR | Mortgage Servicing Rights Financing Receivable | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Variable interest rate spread | 1.80% | ||||
Shellpoint Acquisition | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Earnout payment payments | earnout_payment | 3 | ||||
Contingent consideration, high | $ 60 | ||||
Cash consideration | 212.3 | ||||
Contingent consideration, discount rate | 11.00% | ||||
Guardian Acquisition | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Earnout payment payments | earnout_payment | 4 | ||||
Contingent consideration, high | $ 17.5 | ||||
Cash consideration | 7.6 | ||||
Contingent consideration, discount rate | 11.00% | ||||
NRM Acquisition LLC | Shellpoint Acquisition | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Contingent consideration, high | 60 | ||||
Cash consideration | $ 212.3 | ||||
NRZ Guardian Purchaser LLC | Guardian Acquisition | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Contingent consideration, high | 17.5 | ||||
Cash consideration | $ 7.6 | ||||
Shellpoint Partners LLC | NRM Acquisition LLC | Shellpoint Acquisition | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cash consideration | $ 10 |
FAIR VALUE MEASUREMENT - Inputs
FAIR VALUE MEASUREMENT - Inputs used in Valuing the Servicer Advances (Details) - Servicer Advances | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 1.40% | 1.40% |
Mortgage Servicing Amount (bps) | 0.00196 | 0.00196 |
Cost to service amount | 0.101% | 0.096% |
Prepayment Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.106 | 0.109 |
Delinquency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.157 | 0.177 |
Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Inputs | 0.053 | 0.059 |
Collateral Weighted Average Maturity Years | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral Weighted Average Maturity (in years) | 22 years 10 months 24 days | 23 years 4 months 24 days |
FAIR VALUE MEASUREMENT - Securi
FAIR VALUE MEASUREMENT - Securities Valuation Methodology and Results (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)source | Dec. 31, 2018USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Face Amount | $ 36,159,591 | $ 22,152,845 |
Amortized Cost Basis | 18,782,175 | 11,212,428 |
Real estate and other securities, available-for-sale | $ 19,477,728 | 11,636,581 |
Number of broker quotation sources | source | 2 | |
Percentage of instruments with ranges of assumptions used available | 67.70% | |
Fair Value | $ 659,738 | |
Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Face Amount | 11,301,603 | 2,613,395 |
Amortized Cost Basis | 11,474,338 | 2,657,917 |
Real estate and other securities, available-for-sale | 11,519,943 | 2,665,618 |
Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding Face Amount | 24,857,988 | 19,539,450 |
Amortized Cost Basis | 7,307,837 | 8,554,511 |
Real estate and other securities, available-for-sale | 7,957,785 | 8,970,963 |
Fair Value | 5,389,502 | |
Multiple Quotes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities, available-for-sale | 19,473,516 | 11,625,463 |
Single Quote | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities, available-for-sale | 4,212 | 11,118 |
Single Quote | Seller | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities, available-for-sale | 700 | 11,100 |
Level 2 | Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities, available-for-sale | 11,519,943 | 2,665,618 |
Level 2 | Multiple Quotes | Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities, available-for-sale | 11,519,943 | 2,665,618 |
Level 2 | Single Quote | Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities, available-for-sale | 0 | 0 |
Level 3 | Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities, available-for-sale | 7,957,785 | 8,970,963 |
Level 3 | Multiple Quotes | Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities, available-for-sale | 7,953,573 | 8,959,845 |
Level 3 | Single Quote | Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Real estate and other securities, available-for-sale | $ 4,212 | $ 11,118 |
Discount Rate | Minimum | Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement Input | 0.0182 | |
Discount Rate | Maximum | Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement Input | 0.1784 | |
Prepayment Rate | Minimum | Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement Input | 0.005 | |
Prepayment Rate | Maximum | Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement Input | 0.230 | |
CDR | Minimum | Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement Input | 0.002 | |
CDR | Maximum | Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement Input | 0.0700 | |
Loss Severity | Minimum | Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement Input | 0.150 | |
Loss Severity | Maximum | Non-Agency | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement Input | 1 |
FAIR VALUE MEASUREMENT - Inpu_2
FAIR VALUE MEASUREMENT - Inputs Used in Valuing Investments (Details) $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage-backed securities, fair value | $ 659,738 | |
Nonrecurring | Fair Value | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans receivable, fair value | 1,189,507 | $ 689,075 |
Nonrecurring | Fair Value | Performing Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans receivable, fair value | 707,106 | 307,135 |
Nonrecurring | Fair Value | Non-Performing Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans receivable, fair value | $ 482,401 | $ 381,940 |
Discount Rate | Nonrecurring | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.047 | 0.050 |
Discount Rate | Nonrecurring | Performing Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.042 | 0.044 |
Discount Rate | Nonrecurring | Non-Performing Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.055 | 0.055 |
Prepayment Rate | Nonrecurring | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.082 | 0.063 |
Prepayment Rate | Nonrecurring | Performing Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.117 | 0.105 |
Prepayment Rate | Nonrecurring | Non-Performing Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.030 | 0.029 |
Collateral Weighted Average Maturity Years | Nonrecurring | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Weighted Average Life (Years) | 3 years 8 months 12 days | 3 years 6 months |
Collateral Weighted Average Maturity Years | Nonrecurring | Performing Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Weighted Average Life (Years) | 4 years 1 month 6 days | 4 years |
Collateral Weighted Average Maturity Years | Nonrecurring | Non-Performing Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Weighted Average Life (Years) | 3 years 1 month 6 days | 3 years 1 month 6 days |
CDR | Nonrecurring | Performing Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.026 | 0.030 |
CDR | Nonrecurring | Non-Performing Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.029 | 0.028 |
Loss Severity | Nonrecurring | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.284 | 0.314 |
Loss Severity | Nonrecurring | Performing Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.273 | 0.332 |
Loss Severity | Nonrecurring | Non-Performing Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.300 | 0.300 |
Total Residential Mortgage Loans, held-for-sale, at fair value | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, fair value | $ 3,514,382 | |
Residential Mortgage Loans Held-for-Investment, At Fair Value | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans, held-for-investment, fair value | $ 484,443 | |
Residential Mortgage Loans Held-for-Investment, At Fair Value | Discount Rate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans, held-for-investment, measurement input | 0.055 | |
Residential Mortgage Loans Held-for-Investment, At Fair Value | Prepayment Rate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans, held-for-investment, measurement input | 0.062 | |
Residential Mortgage Loans Held-for-Investment, At Fair Value | CDR | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans, held-for-investment, measurement input | 0.040 | |
Residential Mortgage Loans Held-for-Investment, At Fair Value | Loss Severity | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans, held-for-investment, measurement input | 0.355 | |
IRLCs | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Derivative, fair value | $ 39,891 | |
Minimum | Discount Rate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage-backed securities, measurement input | 0.0258 | |
Minimum | Prepayment Rate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage-backed securities, measurement input | 0.045 | |
Minimum | CDR | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage-backed securities, measurement input | 0 | |
Minimum | Loss Severity | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage-backed securities, measurement input | 0.30 | |
Minimum | IRLCs | Loan Funding Probability | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Derivative, Measurement Input | 0.43 | |
Minimum | IRLCs | Initial Servicing Rights | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Derivative, Measurement Input | 0.000625 | |
Maximum | Discount Rate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage-backed securities, measurement input | 0.075 | |
Maximum | Prepayment Rate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage-backed securities, measurement input | 0.15 | |
Maximum | CDR | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage-backed securities, measurement input | 0.04 | |
Maximum | Loss Severity | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage-backed securities, measurement input | 0.95 | |
Maximum | IRLCs | Loan Funding Probability | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Derivative, Measurement Input | 1 | |
Maximum | IRLCs | Initial Servicing Rights | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Derivative, Measurement Input | 0.0327 | |
Acquired Loans | Total Residential Mortgage Loans, held-for-sale, at fair value | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, fair value | $ 3,024,288 | |
Acquired Loans | Total Residential Mortgage Loans, held-for-sale, at fair value | Discount Rate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.040 | |
Acquired Loans | Total Residential Mortgage Loans, held-for-sale, at fair value | Prepayment Rate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.075 | |
Acquired Loans | Total Residential Mortgage Loans, held-for-sale, at fair value | CDR | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.027 | |
Acquired Loans | Total Residential Mortgage Loans, held-for-sale, at fair value | Loss Severity | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.276 | |
Acquired Loans | Minimum | Total Residential Mortgage Loans, held-for-sale, at fair value | Discount Rate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.030 | |
Acquired Loans | Minimum | Total Residential Mortgage Loans, held-for-sale, at fair value | Prepayment Rate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.060 | |
Acquired Loans | Minimum | Total Residential Mortgage Loans, held-for-sale, at fair value | CDR | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0 | |
Acquired Loans | Minimum | Total Residential Mortgage Loans, held-for-sale, at fair value | Loss Severity | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0 | |
Acquired Loans | Maximum | Total Residential Mortgage Loans, held-for-sale, at fair value | Discount Rate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.0450 | |
Acquired Loans | Maximum | Total Residential Mortgage Loans, held-for-sale, at fair value | Prepayment Rate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.170 | |
Acquired Loans | Maximum | Total Residential Mortgage Loans, held-for-sale, at fair value | CDR | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.025 | |
Acquired Loans | Maximum | Total Residential Mortgage Loans, held-for-sale, at fair value | Loss Severity | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, measurement input | 0.600 | |
Originated Loans | Total Residential Mortgage Loans, held-for-sale, at fair value | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Loans held-for-sale, fair value | $ 490,094 |
CONSOLIDATED VARIABLE INTERES_3
CONSOLIDATED VARIABLE INTEREST ENTITIES - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
VIE, consolidated | |
Variable Interest Entity [Line Items] | |
New Residential Interest in Investees | 73.20% |
Capital distributed to third-party co-investors | $ 327.8 |
Capital distributed to New Residential | $ 305.2 |
Consumer Loan SPVs | |
Variable Interest Entity [Line Items] | |
Owner interest | 53.50% |
CONSOLIDATED VARIABLE INTERES_4
CONSOLIDATED VARIABLE INTEREST ENTITIES - Variable Interest Entities, Characteristics (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||
Number of days delinquent (in days) | 30 days | ||
SAFT 2013-1 Securitization Entity | VIE, consolidated | |||
Variable Interest Entity [Line Items] | |||
UPB of Underlying Mortgages | $ 19,590,978 | $ 7,818,221 | |
Weighted average delinquency | 1.25% | 1.97% | |
Net credit losses | $ 9,354 | $ 9,101 | |
Face amount of debt held by third parties | 17,946,939 | 6,783,187 | |
Carrying value of bonds retained by New Residential | 1,656,712 | 1,206,402 | |
Cash flows received by New Residential on these bonds | $ 270,739 | $ 178,301 | |
Number of days delinquent (in days) | 60 days |
CONSOLIDATED VARIABLE INTERES_5
CONSOLIDATED VARIABLE INTEREST ENTITIES - Variable Interest Entities, Assets and Liabilities (Details) - VIE, consolidated - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Servicer advance investments, at fair value | $ 565,271 | $ 713,239 |
Residential mortgage loans, held-for-investment, at fair value | 913,030 | 121,319 |
Consumer loans, held-for-investment | 818,943 | 1,039,480 |
Cash and cash equivalents | 53,867 | 47,179 |
Restricted cash | 14,423 | 17,995 |
Servicer advances receivable | 0 | |
Other assets | 22,913 | 18,659 |
Total Assets | 2,388,447 | 1,957,871 |
Liabilities | ||
Notes and bonds payable | 1,913,696 | 1,703,484 |
Accounts payable and accrued expenses | 20,038 | 8,538 |
Total Liabilities | 1,933,734 | 1,712,022 |
The Buyer | ||
Assets | ||
Servicer advance investments, at fair value | 565,271 | 713,239 |
Residential mortgage loans, held-for-investment, at fair value | 0 | 0 |
Consumer loans, held-for-investment | 0 | 0 |
Cash and cash equivalents | 30,065 | 29,833 |
Restricted cash | 5,350 | 7,809 |
Servicer advances receivable | 0 | |
Other assets | 2,414 | 2,414 |
Total Assets | 603,100 | 753,295 |
Liabilities | ||
Notes and bonds payable | 433,300 | 556,340 |
Accounts payable and accrued expenses | 1,593 | 2,442 |
Total Liabilities | 434,893 | 558,782 |
Shelter Joint Ventures | ||
Assets | ||
Servicer advance investments, at fair value | 0 | 0 |
Residential mortgage loans, held-for-investment, at fair value | 0 | 0 |
Consumer loans, held-for-investment | 0 | 0 |
Cash and cash equivalents | 23,802 | 17,346 |
Restricted cash | 0 | 0 |
Servicer advances receivable | 0 | |
Other assets | 3,556 | 618 |
Total Assets | 27,358 | 17,964 |
Liabilities | ||
Notes and bonds payable | 0 | 0 |
Accounts payable and accrued expenses | 4,187 | 2,282 |
Total Liabilities | 4,187 | 2,282 |
Residential Mortgage Loans | ||
Assets | ||
Servicer advance investments, at fair value | 0 | 0 |
Residential mortgage loans, held-for-investment, at fair value | 913,030 | 121,319 |
Consumer loans, held-for-investment | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Servicer advances receivable | 0 | |
Other assets | 4,534 | 0 |
Total Assets | 917,564 | 121,319 |
Liabilities | ||
Notes and bonds payable | 659,738 | 117,048 |
Accounts payable and accrued expenses | 10,132 | 0 |
Total Liabilities | 669,870 | 117,048 |
Consumer Loan SPVs | ||
Assets | ||
Servicer advance investments, at fair value | 0 | 0 |
Residential mortgage loans, held-for-investment, at fair value | 0 | 0 |
Consumer loans, held-for-investment | 818,943 | 1,039,480 |
Cash and cash equivalents | 0 | 0 |
Restricted cash | 9,073 | 10,186 |
Servicer advances receivable | 0 | |
Other assets | 12,409 | 15,627 |
Total Assets | 840,425 | 1,065,293 |
Liabilities | ||
Notes and bonds payable | 820,658 | 1,030,096 |
Accounts payable and accrued expenses | 4,126 | 3,814 |
Total Liabilities | $ 824,784 | $ 1,033,910 |
CONSOLIDATED VARIABLE INTERES_6
CONSOLIDATED VARIABLE INTEREST ENTITIES - Others' Interest in Equity of Consumer Loan Companies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Noncontrolling Interest [Line Items] | ||||||||||||
Total consolidated equity | $ 7,236,260 | $ 6,088,295 | $ 7,236,260 | $ 6,088,295 | $ 4,796,162 | $ 3,468,177 | ||||||
Others’ interest in equity of consolidated subsidiary | 78,550 | 90,625 | 78,550 | 90,625 | ||||||||
Net income (loss) | 230,381 | $ 244,660 | $ (25,020) | $ 155,912 | 8,854 | $ 195,477 | $ 185,836 | $ 614,364 | 605,933 | 1,004,531 | 1,014,652 | |
Noncontrolling Interests in Income of Consolidated Subsidiaries | 10,658 | $ 14,738 | $ 6,923 | $ 10,318 | 8,506 | $ 10,869 | $ 11,078 | $ 10,111 | $ 42,637 | 40,564 | 57,119 | |
VIE, consolidated | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
New Residential Interest in Investees | 73.20% | |||||||||||
VIE, consolidated | Advance Purchaser LLC | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Total consolidated equity | 168,207 | 194,513 | $ 168,207 | 194,513 | ||||||||
Others’ interest in equity of consolidated subsidiary | 45,025 | 52,066 | 45,025 | 52,066 | ||||||||
Net income (loss) | 15,892 | 7,209 | 23,604 | |||||||||
Noncontrolling Interests in Income of Consolidated Subsidiaries | 4,255 | 1,978 | 11,227 | |||||||||
VIE, consolidated | Shelter Joint Ventures | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Total consolidated equity | 23,171 | 15,682 | 23,171 | 15,682 | ||||||||
Others’ interest in equity of consolidated subsidiary | 11,354 | 7,998 | 11,354 | 7,998 | ||||||||
Net income (loss) | 12,717 | 3,135 | 0 | |||||||||
Noncontrolling Interests in Income of Consolidated Subsidiaries | 6,231 | 1,599 | 0 | |||||||||
VIE, consolidated | Consumer Loan SPVs | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Total consolidated equity | 46,510 | 66,105 | 46,510 | 66,105 | ||||||||
Others’ interest in equity of consolidated subsidiary | $ 22,171 | $ 30,561 | 22,171 | 30,561 | ||||||||
Net income (loss) | 69,143 | 79,539 | 98,692 | |||||||||
Noncontrolling Interests in Income of Consolidated Subsidiaries | $ 32,151 | $ 36,987 | $ 45,892 | |||||||||
VIE, consolidated | Advance Purchaser LLC | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Others’ ownership interest | 26.80% | 26.80% | 26.80% | 26.80% | ||||||||
New Residential Interest in Investees | 73.20% | 72.60% | 52.40% | |||||||||
VIE, consolidated | Shelter Joint Ventures | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Others’ ownership interest | 49.00% | 51.00% | 49.00% | 51.00% | ||||||||
VIE, consolidated | Consumer Loan SPVs | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Others’ ownership interest | 46.50% | 46.50% | 46.50% | 46.50% | ||||||||
Weighted Average | VIE, consolidated | Advance Purchaser LLC | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Others’ ownership interest | 26.80% | 27.40% | 26.80% | 27.40% | 47.60% | |||||||
Weighted Average | VIE, consolidated | Shelter Joint Ventures | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Others’ ownership interest | 49.00% | 51.00% | 49.00% | 51.00% | 0.00% | |||||||
Weighted Average | VIE, consolidated | Consumer Loan SPVs | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Others’ ownership interest | 46.50% | 46.50% | 46.50% | 46.50% | 46.50% |
EQUITY AND EARNINGS PER SHARE -
EQUITY AND EARNINGS PER SHARE - Narrative (Details) $ / shares in Units, $ in Thousands | Dec. 16, 2019USD ($)$ / shares | Sep. 23, 2019USD ($)$ / shares | Aug. 15, 2019USD ($)$ / sharesshares | Aug. 01, 2019USD ($) | Jul. 02, 2019USD ($)$ / sharesshares | Jan. 01, 2019shares | Jul. 30, 2018USD ($)$ / shares | Jan. 01, 2018shares | Jan. 01, 2017shares | Jan. 01, 2016shares | Jan. 01, 2014shares | Dec. 31, 2019$ / sharesshares | Feb. 28, 2019USD ($)$ / sharesshares | Dec. 31, 2018$ / sharesshares | Nov. 30, 2018USD ($)$ / sharesshares | Jan. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017$ / shares | Feb. 28, 2017USD ($)employee$ / sharesshares | Dec. 31, 2019$ / sharesshares | Sep. 30, 2019$ / shares | Jun. 30, 2019$ / shares | Mar. 31, 2019$ / shares | Dec. 31, 2018$ / sharesshares | Sep. 30, 2018$ / shares | Jun. 30, 2018$ / shares | Mar. 31, 2018$ / shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Aug. 20, 2019USD ($) |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||||||||||||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||||||||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||||||||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||||||||||||||||||
Preferred stock, par values (in dollars per share) | $ / shares | $ 0.01 | 0.01 | $ 0.01 | 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||||||||
Issuance stock (in shares) | 46,000,000 | 28,800,000 | 28,800,000 | |||||||||||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 16.50 | $ 17.32 | $ 17.10 | |||||||||||||||||||||||||||
Proceeds from issuance of common stock | $ | $ 751,700 | $ 489,200 | $ 482,300 | $ 834,500 | $ 752,217 | $ 983,149 | $ 835,465 | |||||||||||||||||||||||
Options granted to Manager (in shares) | 2,900,000 | 2,900,000 | ||||||||||||||||||||||||||||
Fair value of options granted to Manager | $ | $ 3,800 | $ 3,800 | ||||||||||||||||||||||||||||
Risk-free interest rate | 3.25% | 2.58% | 2.38% | |||||||||||||||||||||||||||
Dividend yield | 8.61% | 9.86% | 10.82% | |||||||||||||||||||||||||||
Volatility | 17.50% | 23.16% | 28.64% | |||||||||||||||||||||||||||
Term (in years) | 10 years | 10 years | 10 years | |||||||||||||||||||||||||||
Aggregate offering price | $ | $ 273,400 | $ 150,000 | ||||||||||||||||||||||||||||
Shares sold (in shares) | 11,300,000 | 6,200,000 | ||||||||||||||||||||||||||||
Options granted (in shares) | 6,352,000 | 5,799,166 | ||||||||||||||||||||||||||||
Risk free interest rate | 1.56% | 1.91% | ||||||||||||||||||||||||||||
Expected dividend rate | 11.20% | 9.73% | ||||||||||||||||||||||||||||
Expected volatility rate | 18.23% | 17.95% | ||||||||||||||||||||||||||||
Expected term (in years) | 10 years | 10 years | ||||||||||||||||||||||||||||
Issuance of common stock | $ | $ 982,062 | $ 834,529 | ||||||||||||||||||||||||||||
Dividends declared per Share of Common Stock (in dollars per share) | $ / shares | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 2 | $ 2 | $ 1.98 | |||||||||||||||
Common stock, shares outstanding (in shares) | 415,520,780 | 369,104,429 | 415,520,780 | 369,104,429 | 415,520,780 | 369,104,429 | ||||||||||||||||||||||||
Stock repurchase program, authorized amount | $ | $ 200,000 | |||||||||||||||||||||||||||||
Reserved shares of common stock for issuance (in shares) | 15,000,000 | 15,000,000 | 15,000,000 | |||||||||||||||||||||||||||
Stock option plan term (in years) | 10 years | |||||||||||||||||||||||||||||
Yearly increase in number of shares available for options | 10.00% | 10.00% | 10.00% | |||||||||||||||||||||||||||
Number of additional shares authorized (in shares) | 4,600,000 | 5,799,166 | 5,654,578 | 2,000,000 | 0 | |||||||||||||||||||||||||
Threshold percentage for options that may be issued to the Manager | 10.00% | 10.00% | 10.00% | |||||||||||||||||||||||||||
Stock options outstanding (in shares) | 12,808,916 | 12,808,916 | 12,808,916 | |||||||||||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 16.11 | $ 16.11 | $ 16.11 | |||||||||||||||||||||||||||
Shares of dilutive common stock equivalents (in shares) | 200,465 | 1,868,438 | 2,143,323 | |||||||||||||||||||||||||||
Executive Officer | ||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||||||||||||
Number of employees | employee | 1 | |||||||||||||||||||||||||||||
Fortress-managed funds | ||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||||||||||||
Common stock, shares outstanding (in shares) | 2,400,000 | 2,400,000 | 2,400,000 | |||||||||||||||||||||||||||
Stock options outstanding (in shares) | 10,500,000 | 10,500,000 | 10,500,000 | |||||||||||||||||||||||||||
Director | ||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||||||||||||
Stock options outstanding (in shares) | 7,000 | 6,000 | 7,000 | 6,000 | 7,000 | 6,000 | ||||||||||||||||||||||||
Director | Equity Option | ||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||||||||||||
Stock options outstanding (in shares) | 7,000 | 7,000 | 7,000 | |||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||||||||||||
Issuance stock (in shares) | 56,500,000 | |||||||||||||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 15 | |||||||||||||||||||||||||||||
Options granted to Manager (in shares) | 5,700,000 | |||||||||||||||||||||||||||||
Fair value of options granted to Manager | $ | $ 8,100 | |||||||||||||||||||||||||||||
Issuance of common stock | $ | $ 751,393 | |||||||||||||||||||||||||||||
Common Stock | Executive Officer | ||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||||||||||||
Issuance stock (in shares) | 18,600 | |||||||||||||||||||||||||||||
7.50% Series A Preferred Stock, $0.01 par value, 11,500,000 shares authorized, 6,210,000 and 0 issued and outstanding at December 31, 2019 and December 31, 2018, respectively | ||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||||||||||||
Preferred stock, shares authorized (in shares) | 11,500,000 | 11,500,000 | 11,500,000 | 11,500,000 | 11,500,000 | 11,500,000 | ||||||||||||||||||||||||
Preferred stock, par values (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||||||||
Dividend interest rate | 7.50% | 7.50% | 7.50% | |||||||||||||||||||||||||||
Preferred stock, liquidation preference per share | $ / shares | $ 25 | |||||||||||||||||||||||||||||
Preferred stock, dividends (USD per share) | $ / shares | $ 0.47 | $ 0.69 | ||||||||||||||||||||||||||||
Dividends on preferred stock | $ | $ 2,900 | $ 4,300 | ||||||||||||||||||||||||||||
7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | ||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||||||||||||
Preferred stock, shares authorized (in shares) | 11,500,000 | 11,500,000 | 11,500,000 | 11,500,000 | 11,500,000 | 11,500,000 | ||||||||||||||||||||||||
Preferred stock, par values (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||||||||
Dividend interest rate | 7.125% | 7.125% | 7.125% | |||||||||||||||||||||||||||
Preferred stock, liquidation preference per share | $ / shares | $ 25 | |||||||||||||||||||||||||||||
Preferred stock, dividends (USD per share) | $ / shares | $ 0.45 | $ 0.45 | ||||||||||||||||||||||||||||
Dividends on preferred stock | $ | $ 5,000 | $ 5,000 | ||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||||||||||||
Issuance stock (in shares) | 57,991,659 | 56,545,787 | ||||||||||||||||||||||||||||
Issuance of common stock | $ | $ 580 | $ 566 | ||||||||||||||||||||||||||||
Common Stock | Common Stock | ||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||||||||||||
Issuance stock (in shares) | 46,000,000 | |||||||||||||||||||||||||||||
Issuance of common stock | $ | $ 460 | |||||||||||||||||||||||||||||
Distribution Agreement | ||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||||||||||||||||||||
Distribution Agreement | Common Stock | ||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||||||||||||
Aggregate offering price | $ | $ 500,000 | $ 500,000 | $ 9,100 | |||||||||||||||||||||||||||
Shares sold (in shares) | 500,000 | |||||||||||||||||||||||||||||
Options granted (in shares) | 50,000 | |||||||||||||||||||||||||||||
Fair value of grants | $ | $ 100 | |||||||||||||||||||||||||||||
Over-Allotment Option | ||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||||||||||||
Shares sold (in shares) | 1,100,000 | 600,000 | ||||||||||||||||||||||||||||
Issuance of common stock | $ | $ 700 | $ 500 | ||||||||||||||||||||||||||||
Share-based Payment Arrangement, Nonemployee | ||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||||||||||||||||||||||||||||
Options granted (in shares) | 4,600,000 | |||||||||||||||||||||||||||||
Stock issued for services, value (usd per share) | $ / shares | $ 3,800,000 | |||||||||||||||||||||||||||||
Risk free interest rate | 2.40% | |||||||||||||||||||||||||||||
Expected dividend rate | 9.30% | |||||||||||||||||||||||||||||
Expected volatility rate | 19.26% | |||||||||||||||||||||||||||||
Expected term (in years) | 10 years |
EQUITY AND EARNINGS PER SHARE_2
EQUITY AND EARNINGS PER SHARE - Common Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 16, 2019 | Sep. 23, 2019 | Jun. 18, 2019 | Mar. 25, 2019 | Dec. 20, 2018 | Sep. 20, 2018 | Jun. 21, 2018 | Mar. 22, 2018 | Dec. 18, 2017 | Sep. 22, 2017 | Jun. 21, 2017 | Jan. 26, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Dividends Payable [Line Items] | ||||||||||||||||||||||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 2 | $ 2 | $ 1.98 | |||||||||||
Total Amounts Distributed (millions) | $ 207.8 | $ 207.8 | $ 207.8 | $ 207.7 | $ 184.6 | $ 170.2 | $ 169.9 | $ 168.1 | $ 153.7 | $ 153.7 | $ 153.7 | $ 147.5 | ||||||||||||||
Quarterly Dividend | ||||||||||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||||||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.48 |
EQUITY AND EARNINGS PER SHARE_3
EQUITY AND EARNINGS PER SHARE - Outstanding Options (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding (in shares) | 12,808,916 | |
Held by the Manager | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding (in shares) | 10,511,167 | 6,961,222 |
Issued to the Manager and subsequently assigned to certain of the Manager’s employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding (in shares) | 2,290,749 | 1,530,916 |
Issued to the independent directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding (in shares) | 7,000 | 6,000 |
Total | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding (in shares) | 12,808,916 | 8,498,138 |
EQUITY AND EARNINGS PER SHARE_4
EQUITY AND EARNINGS PER SHARE - Outstanding Options by Recipient (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 12,808,916 | |
Options exercisable (in shares) | 4,791,215 | |
Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 7,000 | 6,000 |
Stock Options | Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 7,000 | |
Options exercisable (in shares) | 7,000 | |
Weighted average exercise price (in dollars per share) | $ 13.61 | |
Intrinsic value of exercisable options | $ 0 | |
Stock Options | Manager | 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 1,130,916 | |
Options exercisable (in shares) | 0 | |
Weighted average exercise price (in dollars per share) | $ 14.09 | |
Intrinsic value of exercisable options | $ 2.3 | |
Stock Options | Manager | 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 5,320,000 | |
Options exercisable (in shares) | 2,996,715 | |
Weighted average exercise price (in dollars per share) | $ 16.79 | |
Intrinsic value of exercisable options | $ 0 | |
Stock Options | Manager | 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of unexercised options (in shares) | 6,351,000 | |
Options exercisable (in shares) | 1,787,500 | |
Weighted average exercise price (in dollars per share) | $ 16.35 | |
Intrinsic value of exercisable options | $ 0 |
EQUITY AND EARNINGS PER SHARE_5
EQUITY AND EARNINGS PER SHARE - Options Assigned (Details) | Dec. 31, 2019$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options outstanding (in shares) | 12,808,916 |
2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise prices (in dollars per share) | $ / shares | $ 14.09 |
Stock options outstanding (in shares) | 1,130,916 |
2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options outstanding (in shares) | 1,159,833 |
Options Assigned | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options outstanding (in shares) | 2,290,749 |
Minimum | 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise prices (in dollars per share) | $ / shares | $ 16.68 |
Maximum | 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise prices (in dollars per share) | $ / shares | $ 18.15 |
EQUITY AND EARNINGS PER SHARE_6
EQUITY AND EARNINGS PER SHARE - Activity in Outstanding Options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Beginning balance, Outstanding options (in shares) | 8,498,138 | 18,502,188 |
Options granted (in shares) | 6,352,000 | 5,799,166 |
Options exercised (in shares) | (2,041,222) | (15,803,216) |
Options expired unexercised (in shares) | 0 | 0 |
Ending balance, Outstanding options (in shares) | 12,808,916 | 8,498,138 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted average exercise price, options granted (in dollars per share) | $ 16.20 | $ 17.23 |
Weighted average exercise price, options exercised (in dollars per share) | $ 13.88 | $ 14.30 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | |||
Representation and warranties | $ 12,500 | ||
Residential mortgage loan repurchase liability | 172,336 | $ 121,602 | |
Operating lease liability | 38,520 | $ 0 | |
New Penn | |||
Loss Contingencies [Line Items] | |||
Committed to fund | 4,043,900 | ||
Forward loan sale commitments | 43,700 | ||
Consumer Loan SPVs | Consumer Portfolio Segment | Unfunded Loan Commitment | |||
Loss Contingencies [Line Items] | |||
Loans of unfunded and available revolving credit privileges | 272,100 | ||
Shellpoint Acquisition | |||
Loss Contingencies [Line Items] | |||
Future commitments under non-cancelable leases | 46,200 | ||
Ditech Acquisition | |||
Loss Contingencies [Line Items] | |||
Future commitments under non-cancelable leases | $ 20,400 | ||
Forecast | |||
Loss Contingencies [Line Items] | |||
Sublease income | $ 1,900 | ||
Minimum | |||
Loss Contingencies [Line Items] | |||
Leases, discount rate | 400.00% | ||
Maximum | |||
Loss Contingencies [Line Items] | |||
Leases, discount rate | 500.00% |
TRANSACTIONS WITH AFFILIATES _3
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |
Management agreement, renewal term (in years) | 1 year |
Termination fee, number of months' pay (in months) | 12 months |
Proportion of directors' votes needed to terminate | 0.6667 |
Manager | |
Related Party Transaction [Line Items] | |
Management fee rate (percent) | 1.50% |
Incentive compensation percentage | 25.00% |
Interest rate for incentive compensation | 10.00% |
TRANSACTIONS WITH AFFILIATES _4
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES - Schedule of Affiliate Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Due to Related Parties [Abstract] | |||
Total | $ 103,882 | $ 101,471 | |
Management fees | 79,472 | 62,594 | $ 55,634 |
Incentive compensation | 91,892 | 94,900 | 81,373 |
Manager | |||
Due to Related Parties [Abstract] | |||
Management fees | 7,076 | 5,779 | |
Incentive compensation | 91,892 | 94,900 | |
Expense reimbursements and other | 4,914 | 792 | |
Total | 103,882 | 101,471 | |
Management fees | 79,472 | 62,594 | 55,634 |
Incentive compensation | 91,892 | 94,900 | 81,373 |
Expense reimbursements | 500 | 500 | 500 |
Total | $ 171,864 | $ 157,994 | $ 137,507 |
RECLASSIFICATION FROM ACCUMUL_3
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other-than-temporary impairment (OTTI) on securities | $ (3,232) | $ (5,567) | $ (8,859) | $ (7,516) | $ (6,827) | $ (3,889) | $ (12,631) | $ (6,670) | $ (25,174) | $ (30,017) | $ (10,334) |
Net income (loss) | $ 230,381 | $ 244,660 | $ (25,020) | $ 155,912 | $ 8,854 | $ 195,477 | $ 185,836 | $ 614,364 | 605,933 | 1,004,531 | 1,014,652 |
Allocation of income tax expense to other comprehensive income | 4,200 | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income (loss) | (180,815) | 59,953 | (10,308) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gain (loss) on settlement of investments, net | (205,989) | 29,936 | (20,642) | ||||||||
Other-than-temporary impairment (OTTI) on securities | $ 25,174 | $ 30,017 | $ 10,334 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||||||||||
Federal | $ 148 | $ 6,146 | $ (1,250) | ||||||||
State and Local | 3,411 | 477 | 360 | ||||||||
Total Current Income Tax Expense (Benefit) | 3,559 | 6,623 | (890) | ||||||||
Deferred: | |||||||||||
Federal | 28,939 | (68,907) | 148,997 | ||||||||
State and Local | 9,268 | (11,147) | 19,521 | ||||||||
Total Deferred Income Tax Expense (Benefit) | 38,207 | (80,054) | 168,518 | ||||||||
Total Income Tax (Benefit) Expense | $ 22,786 | $ (5,440) | $ (21,577) | $ 45,997 | $ (67,474) | $ 3,563 | $ (2,608) | $ (6,912) | $ 41,766 | $ (73,431) | $ 167,628 |
INCOME TAXES - Schedule of Repo
INCOME TAXES - Schedule of Reported Provision for Income Taxes and the U.S. Federal Statutory Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Provision at the statutory rate | 21.00% | 21.00% | 35.00% |
Non-taxable REIT income | (16.26%) | (25.44%) | (21.72%) |
State and local taxes | 2.36% | (1.19%) | 1.76% |
Change in valuation allowance | 0.00% | (2.31%) | 0.85% |
Change in federal tax rate | 0.00% | 0.00% | (0.92%) |
Other | 0.66% | (0.30%) | (0.17%) |
Total provision | 7.76% | (8.24%) | 14.80% |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating losses and tax credit carryforwards | $ 79,897 | $ 41,713 |
Basis differences for REO and other assets | 16,279 | 8,453 |
Unrealized mark to market | 10,084 | 36,758 |
Other | 1,194 | 3,087 |
Total deferred tax assets | 107,454 | 90,011 |
Less valuation allowance | 0 | 0 |
Net deferred tax assets | 107,454 | 90,011 |
Deferred tax liabilities: | ||
Mortgage servicing rights | (65,582) | 0 |
Basis difference for partnership and other investments | (29,022) | (24,179) |
Fixed asset depreciation | (4,181) | 0 |
Total deferred tax liability | (98,785) | (24,179) |
Net deferred tax assets (liability) | 8,669 | $ 65,832 |
Taxable REIT Subsidiaries | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 328,000 | |
Net operating loss carryforward that will being to expire in 2034 | $ 9,100 |
INCOME TAXES - Schedule of Taxa
INCOME TAXES - Schedule of Taxable Common Stock Distributions (Details) - $ / shares | Dec. 16, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Dividends per share (in dollars per share) | $ 1.87 | $ 1.60 | $ 1.94 | ||||||||||||
Ordinary Income | 77.53% | 78.03% | 66.64% | ||||||||||||
Long-term Capital Gain | 15.82% | 1.03% | 7.83% | ||||||||||||
Return of Capital | 6.65% | 20.94% | 25.53% | ||||||||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 2 | $ 2 | $ 1.98 |
Series A Preferred Stock | |||||||||||||||
Dividends per share (in dollars per share) | $ 0.69 | ||||||||||||||
Ordinary Income | 84.18% | ||||||||||||||
Long-term Capital Gain | 15.82% | ||||||||||||||
Return of Capital | 0.00% | ||||||||||||||
Series B Preferred Stock | |||||||||||||||
Dividends per share (in dollars per share) | $ 0.45 | ||||||||||||||
Ordinary Income | 84.18% | ||||||||||||||
Long-term Capital Gain | 15.82% | ||||||||||||||
Return of Capital | 0.00% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 11, 2020 | Jan. 31, 2020 | Jan. 25, 2020 | Dec. 16, 2019 | Aug. 15, 2019 | Jul. 02, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | Jan. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||||||||||||||||||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 2 | $ 2 | $ 1.98 | ||||||||
Dividends per share (in dollars per share) | $ 1.87 | $ 1.60 | $ 1.94 | ||||||||||||||||||||
Dividends | $ 807,788 | $ 661,859 | $ 570,232 | ||||||||||||||||||||
Issuance stock (in shares) | 11,300,000 | 6,200,000 | |||||||||||||||||||||
Preferred stock, par values (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||
Issuance of common stock | $ 273,400 | $ 150,000 | |||||||||||||||||||||
Options granted to Manager (in shares) | 2,900,000 | 2,900,000 | |||||||||||||||||||||
Fair value of options granted to Manager | $ 3,800 | $ 3,800 | |||||||||||||||||||||
Risk-free interest rate | 3.25% | 2.58% | 2.38% | ||||||||||||||||||||
Dividend yield | 8.61% | 9.86% | 10.82% | ||||||||||||||||||||
Volatility | 17.50% | 23.16% | 28.64% | ||||||||||||||||||||
Term (in years) | 10 years | 10 years | 10 years | ||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Dividends per share (in dollars per share) | $ 0.50 | ||||||||||||||||||||||
Dividends | $ 207,800 | ||||||||||||||||||||||
6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | Subsequent Event | |||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||
Issuance stock (in shares) | 14,000,000 | ||||||||||||||||||||||
Dividend interest rate | 6.375% | ||||||||||||||||||||||
Preferred stock, par values (in dollars per share) | $ 0.01 | ||||||||||||||||||||||
Preferred stock, liquidation preference per share | $ 25 | ||||||||||||||||||||||
Issuance of common stock | $ 338,700 | ||||||||||||||||||||||
Options granted to Manager (in shares) | 1,400,000 | ||||||||||||||||||||||
Fair value of options granted to Manager | $ 1,000 | ||||||||||||||||||||||
Risk-free interest rate | 1.55% | ||||||||||||||||||||||
Dividend yield | 9.00% | ||||||||||||||||||||||
Volatility | 17.39% | ||||||||||||||||||||||
Term (in years) | 10 years |
SUMMARY QUARTERLY CONSOLIDATE_3
SUMMARY QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 16, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Interest income | $ 463,089 | $ 448,127 | $ 416,047 | $ 438,867 | $ 451,321 | $ 425,524 | $ 403,805 | $ 383,573 | $ 1,766,130 | $ 1,664,223 | $ 1,519,679 | ||||
Interest expense | 247,013 | 245,902 | 228,004 | 212,832 | 185,324 | 162,806 | 133,916 | 124,387 | 933,751 | 606,433 | 460,865 | ||||
Net Interest Income | 216,076 | 202,225 | 188,043 | 226,035 | 265,997 | 262,718 | 269,889 | 259,186 | 832,379 | 1,057,790 | 1,058,814 | ||||
Impairment | |||||||||||||||
Other-than-temporary impairment (OTTI) on securities | 3,232 | 5,567 | 8,859 | 7,516 | 6,827 | 3,889 | 12,631 | 6,670 | 25,174 | 30,017 | 10,334 | ||||
Valuation and loss provision (reversal) on loans and real estate owned | 2,361 | (10,690) | 13,452 | 5,280 | 32,488 | 5,471 | 3,658 | 19,007 | 10,403 | 60,624 | 75,758 | ||||
Total Impairment Charges | 5,593 | (5,123) | 22,311 | 12,796 | 39,315 | 9,360 | 16,289 | 25,677 | 35,577 | 90,641 | 86,092 | ||||
Net interest income after impairment | 210,483 | 207,348 | 165,732 | 213,239 | 226,682 | 253,358 | 253,600 | 233,509 | 796,802 | 967,149 | 972,722 | ||||
Servicing revenue, net of change in fair value of $(712,950), $(191,245), and $(67,672), respectively | 251,793 | 53,050 | (85,537) | 165,853 | (10,189) | 175,355 | 146,193 | 217,236 | 385,159 | 528,595 | 424,349 | ||||
Gain on originated mortgage loans, held-for-sale, net | 180,520 | 126,747 | 101,018 | 67,170 | 49,091 | 47,054 | 0 | 0 | 475,455 | 96,145 | 0 | ||||
Other income (loss) | (53,826) | 102,640 | (25,947) | (63,966) | (134,477) | (84,620) | (96,812) | 264,524 | (41,099) | (51,385) | 207,786 | ||||
Operating expenses | 335,803 | 250,565 | 201,863 | 180,387 | 189,727 | 192,107 | 119,753 | 107,817 | 968,618 | 609,404 | 422,577 | ||||
Income (Loss) Before Income Taxes | 253,167 | 239,220 | (46,597) | 201,909 | (58,620) | 199,040 | 183,228 | 607,452 | 647,699 | 931,100 | 1,182,280 | ||||
Income tax (benefit) expense | 22,786 | (5,440) | (21,577) | 45,997 | (67,474) | 3,563 | (2,608) | (6,912) | 41,766 | (73,431) | 167,628 | ||||
Net Income (Loss) | 230,381 | 244,660 | (25,020) | 155,912 | 8,854 | 195,477 | 185,836 | 614,364 | 605,933 | 1,004,531 | 1,014,652 | ||||
Noncontrolling Interests in Income of Consolidated Subsidiaries | 10,658 | 14,738 | 6,923 | 10,318 | 8,506 | 10,869 | 11,078 | 10,111 | 42,637 | 40,564 | 57,119 | ||||
Dividends on Preferred Stock | 7,943 | 5,338 | 0 | 0 | 13,281 | 0 | 0 | ||||||||
Net income (loss) attributable to common stockholders | $ 211,780 | $ 224,584 | $ (31,943) | $ 145,594 | $ 348 | $ 184,608 | $ 174,758 | $ 604,253 | $ 550,015 | $ 963,967 | $ 957,533 | ||||
Net Income (Loss) Per Share of Common Stock | |||||||||||||||
Basic (in dollars per share) | $ 0.51 | $ 0.54 | $ (0.08) | $ 0.37 | $ 0 | $ 0.54 | $ 0.52 | $ 1.83 | $ 1.35 | $ 2.82 | $ 3.17 | ||||
Diluted (in dollars per share) | $ 0.51 | $ 0.54 | $ (0.08) | $ 0.37 | $ 0 | $ 0.54 | $ 0.51 | $ 1.81 | $ 1.34 | $ 2.81 | $ 3.15 | ||||
Weighted Average Number of Shares of Common Stock Outstanding | |||||||||||||||
Basic (in shares) | 415,520,780 | 415,520,780 | 415,463,757 | 388,279,931 | 358,044,646 | 340,044,440 | 336,311,253 | 330,384,856 | 408,789,642 | 341,268,923 | 302,238,065 | ||||
Diluted (in shares) | 415,673,185 | 415,588,238 | 415,665,460 | 388,601,075 | 358,509,094 | 340,868,403 | 339,538,503 | 333,380,436 | 408,990,107 | 343,137,361 | 304,381,388 | ||||
Dividends declared per Share of Common Stock (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | $ 2 | $ 2 | $ 1.98 |