☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 91-1653725 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
8950 Cypress Waters Blvd, Coppell, TX | 75019 | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 par value per share | COOP | The Nasdaq Stock Market |
Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | ||||||||
Non-Accelerated Filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Page | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
Item 15. | ||||||||
Item 16. | ||||||||
Period | (a) Total Number of Shares Purchased (in thousands) | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plan or Program (in thousands) | (d) Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plan or Program (in millions) (1) | ||||||||||||||||||||||
October 2021 | — | $ | — | — | $ | 108 | ||||||||||||||||||||
November 2021 | 698 | $ | 41.58 | 698 | $ | 79 | ||||||||||||||||||||
December 2021 | 648 | $ | 40.86 | 648 | $ | 252 | ||||||||||||||||||||
Total | 1,346 | 1,346 |
December 31, | |||||||||||||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||||||||||||||
Mr. Cooper (COOP, formerly WMIH) | $ | 100 | $ | 55 | $ | 63 | $ | 67 | $ | 167 | $ | 224 | |||||||||||||||||||||||
S&P 500 Index | 100 | 119 | 112 | 144 | 168 | 213 | |||||||||||||||||||||||||||||
Peer Group Index(1) | 100 | 89 | 58 | 78 | 118 | 130 |
December 31, | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||
Mr. Cooper (formerly WMIH) | $ | 100 | $ | 126 | $ | 76 | $ | 41 | $ | 47 | $ | 51 | |||||||||||
S&P 500 Index | 100 | 99 | 109 | 130 | 122 | 157 | |||||||||||||||||
Peer Group (2014 through 2017) and S&P Small Cap 600 Financials Index (2018 through 2019) | 100 | 85 | 108 | 133 | 127 | 153 |
Successor | Predecessor | |||||||||||||||||||
As of December 31, | As of December 31, | |||||||||||||||||||
2019(1) | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
Consolidated Balance Sheet Data: (amounts in millions) | ||||||||||||||||||||
Cash and cash equivalents | $ | 329 | $ | 242 | $ | 215 | $ | 489 | $ | 613 | ||||||||||
Mortgage servicing rights | 3,502 | 3,676 | 2,941 | 3,166 | 3,367 | |||||||||||||||
Advances and other receivables, net | 988 | 1,194 | 1,706 | 1,749 | 2,412 | |||||||||||||||
Reverse mortgage interests, net | 6,279 | 7,934 | 9,984 | 11,033 | 7,514 | |||||||||||||||
Mortgage loans held for sale | 4,077 | 1,631 | 1,891 | 1,788 | 1,430 | |||||||||||||||
Total assets(2) | 18,305 | 16,973 | 18,036 | 19,593 | 16,617 | |||||||||||||||
Unsecured senior notes, net | 2,366 | 2,459 | 1,874 | 1,990 | 2,026 | |||||||||||||||
Advance facilities, net | 422 | 595 | 855 | 1,096 | 1,640 | |||||||||||||||
Warehouse facilities, net | 4,575 | 2,349 | 3,285 | 2,421 | 1,890 | |||||||||||||||
Other nonrecourse debt, net | 5,286 | 6,795 | 8,014 | 9,631 | 6,666 | |||||||||||||||
Total liabilities(2) | 16,074 | 15,028 | 16,314 | 17,910 | 14,850 | |||||||||||||||
Total stockholders’ equity(2) | 2,231 | 1,945 | 1,722 | 1,683 | 1,767 |
Successor | Predecessor | |||||||||||||||||||||||
Year Ended December 31, 2019(1) | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | |||||||||||||||||||
Consolidated Statement of Operations and Comprehensive Income Data: (amounts in millions, except for earnings per share data) | ||||||||||||||||||||||||
Total revenues | $ | 2,007 | $ | 594 | $ | 1,196 | $ | 1,650 | $ | 1,915 | $ | 1,989 | ||||||||||||
Total expenses | 1,851 | 707 | 945 | 1,475 | 1,644 | 1,688 | ||||||||||||||||||
Total other income (expenses), net | (159 | ) | (24 | ) | (49 | ) | (131 | ) | (242 | ) | (247 | ) | ||||||||||||
(Loss) income before income tax (benefit) expense | (3 | ) | (137 | ) | 202 | 44 | 29 | 54 | ||||||||||||||||
Less: Income tax (benefit) expense | (273 | ) | (1,021 | ) | 48 | 13 | 13 | 11 | ||||||||||||||||
Net income | 270 | 884 | 154 | 31 | 16 | 43 | ||||||||||||||||||
Less: Net (loss) income attributable to non-controlling interests | (4 | ) | — | — | 1 | (3 | ) | 4 | ||||||||||||||||
Net income attributable to Successor/Predecessor | 274 | 884 | 154 | 30 | 19 | 39 | ||||||||||||||||||
Less: Undistributed earnings attributable to participating stockholders | 2 | 8 | — | — | — | — | ||||||||||||||||||
Net income attributable to common stockholders | 272 | 876 | 154 | 30 | 19 | 39 | ||||||||||||||||||
Earnings per share data: | ||||||||||||||||||||||||
Basic | $ | 2.99 | $ | 9.65 | $ | 1.57 | $ | 0.31 | $ | 0.19 | $ | 0.38 | ||||||||||||
Diluted | $ | 2.95 | $ | 9.54 | $ | 1.55 | $ | 0.30 | $ | 0.19 | $ | 0.37 | ||||||||||||
Other Financial Data: | ||||||||||||||||||||||||
Net cash provided by / (used in): | ||||||||||||||||||||||||
Operating activities | $ | 702 | $ | 1,251 | $ | 2,294 | $ | 1,359 | $ | 972 | $ | 398 | ||||||||||||
Investing activities | (338 | ) | (250 | ) | (162 | ) | (6 | ) | (3,738 | ) | (5,567 | ) | ||||||||||||
Financing activities | (313 | ) | (2,063 | ) | (2,111 | ) | (1,655 | ) | 2,698 | 5,483 |
Overview |
Table 1. Consolidated Operations |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | Change | |||||||||||||||
Revenues - operational(1) | $ | 2,897 | $ | 3,298 | $ | (401) | |||||||||||
Revenues - mark-to-market | 421 | (609) | 1,030 | ||||||||||||||
Total revenues | 3,318 | 2,689 | 629 | ||||||||||||||
Total expenses | 1,662 | 1,782 | (120) | ||||||||||||||
Total other income (expenses), net | 281 | (505) | 786 | ||||||||||||||
Income from continuing operations before income tax expense | 1,937 | 402 | 1,535 | ||||||||||||||
Less: Income tax expense | 471 | 93 | 378 | ||||||||||||||
Net income from continuing operations | 1,466 | 309 | 1,157 | ||||||||||||||
Less: Net income attributable to non-controlling interests | — | 2 | (2) | ||||||||||||||
Net income from continuing operations attributable to Mr. Cooper | $ | 1,466 | $ | 307 | $ | 1,159 |
Successor | Predecessor | ||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Combined(1) | $ Change | % Change | ||||||||||||||||||
Revenues - operational | $ | 2,512 | $ | 758 | $ | 1,000 | $ | 1,758 | $ | 754 | 43 | % | |||||||||||
Revenues - Mark-to-market | (505 | ) | (164 | ) | 196 | 32 | (537 | ) | (1,678 | )% | |||||||||||||
Total revenues | 2,007 | 594 | 1,196 | 1,790 | 217 | 12 | % | ||||||||||||||||
Total expenses | 1,851 | 707 | 945 | 1,652 | 199 | 12 | % | ||||||||||||||||
Total other income (expenses), net | (159 | ) | (24 | ) | (49 | ) | (73 | ) | (86 | ) | 118 | % | |||||||||||
(Loss) income before income tax (benefit) expense | (3 | ) | (137 | ) | 202 | 65 | (68 | ) | (105 | )% | |||||||||||||
Less: Income tax (benefit) expense | (273 | ) | (1,021 | ) | 48 | (973 | ) | 700 | (72 | )% | |||||||||||||
Net income | 270 | 884 | 154 | 1,038 | (768 | ) | (74 | )% | |||||||||||||||
Less: Net loss attributable to non-controlling interests | (4 | ) | — | — | — | (4 | ) | (100 | )% | ||||||||||||||
Net income attributable to Successor/Predecessor | $ | 274 | $ | 884 | $ | 154 | $ | 1,038 | $ | (764 | ) | (74 | )% |
Successor | Predecessor | ||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Combined(1) | $ Change | % Change | ||||||||||||||||||
Income tax (benefit) expense | $ | (273 | ) | $ | (1,021 | ) | $ | 48 | $ | (973 | ) | $ | 700 | (72 | )% | ||||||||
Effective tax rate(2) | 7718.8 | % | 742.4 | % | 23.8 | % |
Segment Results |
Successor | |||||||||||||||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||||||
Servicing | Originations | Xome | Elimination | Total Operating Segments | Corporate/ Other | Consolidated | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Service related, net | $ | 408 | $ | 80 | $ | 422 | $ | (3 | ) | $ | 907 | $ | 2 | $ | 909 | ||||||||||||
Net gain on mortgage loans held for sale | 124 | 963 | — | — | 1,087 | 11 | 1,098 | ||||||||||||||||||||
Total revenues | 532 | 1,043 | 422 | (3 | ) | 1,994 | 13 | 2,007 | |||||||||||||||||||
Total expenses | 690 | 568 | 398 | (3 | ) | 1,653 | 198 | 1,851 | |||||||||||||||||||
Other income (expenses), net: | |||||||||||||||||||||||||||
Interest income | 500 | 98 | — | — | 598 | 7 | 605 | ||||||||||||||||||||
Interest expense | (469 | ) | (98 | ) | — | — | (567 | ) | (212 | ) | (779 | ) | |||||||||||||||
Other income (expenses), net | 4 | 4 | 14 | — | 22 | (7 | ) | 15 | |||||||||||||||||||
Total other income (expenses), net | 35 | 4 | 14 | — | 53 | (212 | ) | (159 | ) | ||||||||||||||||||
Income (loss) before income tax expense (benefit) | $ | (123 | ) | $ | 479 | $ | 38 | $ | — | $ | 394 | $ | (397 | ) | $ | (3 | ) |
Successor | |||||||||||||||||||||||||||
Five Months Ended December 31, 2018 | |||||||||||||||||||||||||||
Servicing | Originations | Xome | Elimination | Total Operating Segments | Corporate/ Other | Consolidated | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Service related, net | $ | 217 | $ | 24 | $ | 177 | $ | — | $ | 418 | $ | — | $ | 418 | |||||||||||||
Net gain on mortgage loans held for sale | 19 | 157 | — | — | 176 | — | 176 | ||||||||||||||||||||
Total revenues | 236 | 181 | 177 | — | 594 | — | 594 | ||||||||||||||||||||
Total expenses | 303 | 155 | 178 | — | 636 | 71 | 707 | ||||||||||||||||||||
Other income (expenses), net: | |||||||||||||||||||||||||||
Interest income | 222 | 27 | — | — | 249 | 7 | 256 | ||||||||||||||||||||
Interest expense | (173 | ) | (26 | ) | (1 | ) | — | (200 | ) | (93 | ) | (293 | ) | ||||||||||||||
Other income, net | 6 | 5 | 1 | — | 12 | 1 | 13 | ||||||||||||||||||||
Total other income (expenses), net | 55 | 6 | — | — | 61 | (85 | ) | (24 | ) | ||||||||||||||||||
Income (loss) before income tax expense (benefit) | $ | (12 | ) | $ | 32 | $ | (1 | ) | $ | — | $ | 19 | $ | (156 | ) | $ | (137 | ) |
Predecessor | |||||||||||||||||||||||||||
Seven Months Ended July 31, 2018 | |||||||||||||||||||||||||||
Servicing(1) | Originations | Xome | Elimination/ Reclassification(1) | Total Operating Segments | Corporate/ Other | Consolidated | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Service related, net | $ | 740 | $ | 36 | $ | 149 | $ | (25 | ) | $ | 900 | $ | 1 | $ | 901 | ||||||||||||
Net gain on mortgage loans held for sale | — | 270 | — | 25 | 295 | — | 295 | ||||||||||||||||||||
Total revenues | 740 | 306 | 149 | — | 1,195 | 1 | 1,196 | ||||||||||||||||||||
Total expenses | 474 | 245 | 123 | — | 842 | 103 | 945 | ||||||||||||||||||||
Other income (expenses), net: | |||||||||||||||||||||||||||
Interest income | 288 | 38 | — | — | 326 | 7 | 333 | ||||||||||||||||||||
Interest expense | (268 | ) | (37 | ) | — | — | (305 | ) | (83 | ) | (388 | ) | |||||||||||||||
Other (expenses) income, net | (1 | ) | — | 9 | — | 8 | (2 | ) | 6 | ||||||||||||||||||
Total other income (expenses), net | 19 | 1 | 9 | — | 29 | (78 | ) | (49 | ) | ||||||||||||||||||
Income (loss) before income tax expense (benefit) | $ | 285 | $ | 62 | $ | 35 | $ | — | $ | 382 | $ | (180 | ) | $ | 202 |
Servicing Segment |
Table 2. Servicer Ratings |
Fitch(1) | Moody’s(2) | S&P(3) |
Rating date | May 2021 | February 2021 | December 2020 | ||||||||||||||
Residential | SQ2- | Above Average | |||||||||||||||
Master Servicer | |||||||||||||||||
Subprime Servicer | RPS2 | SQ2- | |||||||||||||||
Above Average | |||||||||||||||||
Table |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | |||||||||||||||||||||||||||||||||
Amt | bps(1) | Amt | bps(1) | Amt | bps | ||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Operational | $ | 1,605 | 25 | $ | 1,182 | 20 | $ | 423 | 5 | ||||||||||||||||||||||||||
Amortization, net of accretion | (753) | (12) | (510) | (9) | (243) | (3) | |||||||||||||||||||||||||||||
Mark-to-market | 421 | 7 | (609) | (10) | 1,030 | 17 | |||||||||||||||||||||||||||||
Total revenues | 1,273 | 20 | 63 | 1 | 1,210 | 19 | |||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||
Salaries, wages and benefits | 271 | 4 | 272 | 4 | (1) | — | |||||||||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||||||||||||||
Servicing support fees | 86 | 1 | 97 | 2 | (11) | (1) | |||||||||||||||||||||||||||||
Corporate and other general and administrative expenses | 116 | 2 | 120 | 2 | (4) | — | |||||||||||||||||||||||||||||
Foreclosure and other liquidation related (recoveries) expenses, net | (3) | — | (18) | — | 15 | — | |||||||||||||||||||||||||||||
Depreciation and amortization | 32 | 1 | 20 | — | 12 | 1 | |||||||||||||||||||||||||||||
Total general and administrative expenses | 231 | 4 | 219 | 4 | 12 | — | |||||||||||||||||||||||||||||
Total expenses | 502 | 8 | 491 | 8 | 11 | — | |||||||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||||||||
Interest income | 129 | 2 | 61 | 1 | 68 | 1 | |||||||||||||||||||||||||||||
Advance interest expense | (18) | — | (26) | (1) | 8 | 1 | |||||||||||||||||||||||||||||
Other interest expense | (244) | (4) | (242) | (4) | (2) | — | |||||||||||||||||||||||||||||
Interest expense | (262) | (4) | (268) | (5) | 6 | 1 | |||||||||||||||||||||||||||||
Total other (expenses), net | (133) | (2) | (207) | (4) | 74 | 2 | |||||||||||||||||||||||||||||
Income (loss) from continuing operations before income tax expense (benefit) | $ | 638 | 10 | $ | (635) | (11) | $ | 1,273 | 21 | ||||||||||||||||||||||||||
Weighted average cost - advance facilities | 2.8 | % | 2.9 | % | (0.1) | % | |||||||||||||||||||||||||||||
Weighted average cost - excess spread financing | 9.0 | % | 9.0 | % | — | % |
Successor | Predecessor | ||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Combined(1) | $ Change | % Change | ||||||||||||||||||
Revenues | |||||||||||||||||||||||
Operational | $ | 1,273 | $ | 464 | $ | 656 | $ | 1,120 | $ | 153 | 14 | % | |||||||||||
Amortization | (236 | ) | (64 | ) | (112 | ) | (176 | ) | (60 | ) | 34 | % | |||||||||||
Mark-to-market | (505 | ) | (164 | ) | 196 | 32 | (537 | ) | (1,678 | )% | |||||||||||||
Total revenues | 532 | 236 | 740 | 976 | (444 | ) | (45 | )% | |||||||||||||||
Total expenses | 690 | 303 | 474 | 777 | (87 | ) | (11 | )% | |||||||||||||||
Total other income (expenses), net | 35 | 55 | 19 | 74 | (39 | ) | (53 | )% | |||||||||||||||
(Loss) income before income tax (benefit) expense | $ | (123 | ) | $ | (12 | ) | $ | 285 | $ | 273 | $ | (396 | ) | (145 | )% |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | |||||||||||||||||||||||||||||||||
Amt | bps(1) | Amt | bps(1) | Amt | bps | ||||||||||||||||||||||||||||||
Forward MSR Operational Revenue | |||||||||||||||||||||||||||||||||||
Base servicing fees | $ | 919 | 14 | $ | 952 | 16 | $ | (33) | (2) | ||||||||||||||||||||||||||
Modification fees(2) | 26 | — | 15 | — | 11 | — | |||||||||||||||||||||||||||||
Incentive fees(2) | 1 | — | 8 | — | (7) | — | |||||||||||||||||||||||||||||
Late payment fees(2) | 59 | 1 | 70 | 1 | (11) | — | |||||||||||||||||||||||||||||
Other ancillary revenues(2) | 625 | 10 | 282 | 5 | 343 | 5 | |||||||||||||||||||||||||||||
Total forward MSR operational revenue | 1,630 | 25 | 1,327 | 22 | 303 | 3 | |||||||||||||||||||||||||||||
Base subservicing fees and other subservicing revenue(2) | 254 | 4 | 226 | 4 | 28 | — | |||||||||||||||||||||||||||||
Total servicing fee revenue | 1,884 | 29 | 1,553 | 26 | 331 | 3 | |||||||||||||||||||||||||||||
MSR financing liability costs | (24) | — | (33) | — | 9 | — | |||||||||||||||||||||||||||||
Excess spread payments and portfolio runoff | (255) | (4) | (338) | (6) | 83 | 2 | |||||||||||||||||||||||||||||
Total operational revenue | 1,605 | 25 | 1,182 | 20 | 423 | 5 | |||||||||||||||||||||||||||||
Amortization, Net of Accretion | |||||||||||||||||||||||||||||||||||
Forward MSR amortization | (1,008) | (16) | (848) | (15) | (160) | (1) | |||||||||||||||||||||||||||||
Excess spread accretion | 255 | 4 | 338 | 6 | (83) | (2) | |||||||||||||||||||||||||||||
Total amortization, net of accretion | (753) | (12) | (510) | (9) | (243) | (3) | |||||||||||||||||||||||||||||
Mark-to-Market Adjustments | |||||||||||||||||||||||||||||||||||
MSR MTM | 502 | 8 | (819) | (14) | 1,321 | 22 | |||||||||||||||||||||||||||||
MTM Adjustments(3) | (114) | (2) | 11 | — | (125) | (2) | |||||||||||||||||||||||||||||
Excess spread / financing MTM | 33 | 1 | 199 | 4 | (166) | (3) | |||||||||||||||||||||||||||||
Total MTM adjustments | 421 | 7 | (609) | (10) | 1,030 | 17 | |||||||||||||||||||||||||||||
Total revenues - Servicing | $ | 1,273 | 20 | $ | 63 | 1 | $ | 1,210 | 19 |
Table |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Average UPB | |||||||||||||||||||||||||||||||||||
Forward MSRs | $ | 299,483 | $ | 286,159 | |||||||||||||||||||||||||||||||
Subservicing and other(1) | 350,365 | 305,063 | |||||||||||||||||||||||||||||||||
Total average UPB | $ | 649,848 | $ | 591,222 | |||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
UPB | Carrying Amount | bps | UPB | Carrying Amount | bps | ||||||||||||||||||||||||||||||
Forward MSRs | |||||||||||||||||||||||||||||||||||
Agency | $ | 302,851 | $ | 3,859 | 127 | $ | 227,136 | $ | 2,305 | 101 | |||||||||||||||||||||||||
Non-agency | 36,357 | 364 | 100 | 44,053 | 398 | 90 | |||||||||||||||||||||||||||||
Total forward MSRs | 339,208 | 4,223 | 124 | 271,189 | 2,703 | 100 | |||||||||||||||||||||||||||||
Subservicing and other(1) | |||||||||||||||||||||||||||||||||||
Agency | 353,660 | N/A | 321,858 | N/A | |||||||||||||||||||||||||||||||
Non-agency | 16,860 | N/A | 14,655 | N/A | |||||||||||||||||||||||||||||||
Total subservicing and other | 370,520 | N/A | 336,513 | N/A | |||||||||||||||||||||||||||||||
Total ending balance | $ | 709,728 | $ | 4,223 | $ | 607,702 | $ | 2,703 | |||||||||||||||||||||||||||
Forward MSRs UPB Encumbrance | December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||
Forward MSRs - unencumbered | $ | 212,472 | $ | 104,798 | |||||||||||||||||||||||||||||||
Forward MSRs - encumbered(2) | 126,736 | 166,391 | |||||||||||||||||||||||||||||||||
Total Forward MSRs UPB | $ | 339,208 | $ | 271,189 |
Successor | Predecessor | |||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | ||||||||||
Average UPB | ||||||||||||
Forward MSRs - fair value | $ | 311,601 | $ | 282,806 | $ | 279,520 | ||||||
Subservicing and other(1) | 283,743 | 203,341 | 187,407 | |||||||||
Reverse loans - amortized cost | 25,270 | 29,837 | 33,380 | |||||||||
Total average UPB | $ | 620,614 | $ | 515,984 | $ | 500,307 | ||||||
Successor | ||||||||||||
December 31, 2019 | December 31, 2018 | |||||||||||
Ending UPB | ||||||||||||
Forward MSRs - fair value | ||||||||||||
Agency | $ | 240,688 | $ | 229,108 | ||||||||
Non-agency | 56,094 | 66,373 | ||||||||||
Total MSRs - fair value | 296,782 | 295,481 | ||||||||||
Subservicing and other(1) | ||||||||||||
Agency | 308,532 | 208,607 | ||||||||||
Non-agency | 15,451 | 15,279 | ||||||||||
Total subservicing and other | 323,983 | 223,886 | ||||||||||
Reverse loans - amortized cost | ||||||||||||
MSR | 2,508 | 3,940 | ||||||||||
MSL | 13,994 | 16,538 | ||||||||||
Securitized loans | 6,223 | 7,937 | ||||||||||
Total reverse portfolio serviced | 22,725 | 28,415 | ||||||||||
Total ending UPB | $ | 643,490 | $ | 547,782 |
Table |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Forward MSR | Subservicing and Other | Total | Forward MSR | Subservicing and Other | Total | ||||||||||||||||||||||||||||||
Balance - beginning of year | $ | 271,189 | $ | 336,513 | $ | 607,702 | $ | 296,782 | $ | 323,983 | $ | 620,765 | |||||||||||||||||||||||
Additions: | |||||||||||||||||||||||||||||||||||
Originations | 79,599 | 4,996 | 84,595 | 58,734 | 4,331 | 63,065 | |||||||||||||||||||||||||||||
Acquisitions / Increase in subservicing(1) | 76,594 | 170,258 | 246,852 | 1,506 | 154,718 | 156,224 | |||||||||||||||||||||||||||||
Deductions: | |||||||||||||||||||||||||||||||||||
Dispositions | (1,226) | (16,075) | (17,301) | (110) | (27,765) | (27,875) | |||||||||||||||||||||||||||||
Principal reductions and other | (11,718) | (13,608) | (25,326) | (10,722) | (10,754) | (21,476) | |||||||||||||||||||||||||||||
Voluntary reductions(2) | (74,500) | (111,457) | (185,957) | (73,691) | (107,762) | (181,453) | |||||||||||||||||||||||||||||
Involuntary reductions(3) | (437) | (107) | (544) | (991) | (238) | (1,229) | |||||||||||||||||||||||||||||
Net changes in loans serviced by others | (293) | — | (293) | (319) | — | (319) | |||||||||||||||||||||||||||||
Balance - end of year | $ | 339,208 | $ | 370,520 | $ | 709,728 | $ | 271,189 | $ | 336,513 | $ | 607,702 |
Successor | Predecessor | |||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | ||||||||||
Balance - beginning of period | $ | 519,367 | $ | 465,819 | $ | 473,256 | ||||||
Additions: | ||||||||||||
Originations | 39,355 | 8,936 | 12,327 | |||||||||
Acquisitions | 210,638 | 82,559 | 25,987 | |||||||||
Deductions: | ||||||||||||
Dispositions | (35,004 | ) | (10,140 | ) | (1,877 | ) | ||||||
Principal reductions and other | (21,792 | ) | (7,837 | ) | (11,240 | ) | ||||||
Voluntary reductions(1) | (87,683 | ) | (18,131 | ) | (29,172 | ) | ||||||
Involuntary reductions(2) | (3,816 | ) | (1,689 | ) | (3,241 | ) | ||||||
Net changes in loans serviced by others | (300 | ) | (150 | ) | (221 | ) | ||||||
Balance - end of period | $ | 620,765 | $ | 519,367 | $ | 465,819 |
Table |
December 31, 2021 | December 31, 2020 | ||||||||||
Loan count(2) | 3,561,051 | 3,373,066 | |||||||||
Average loan amount(3) | $ | 195,512 | $ | 180,165 | |||||||
Average coupon - agency(4) | 3.6 | % | 4.2 | % | |||||||
Average coupon - non-agency(4) | 4.4 | % | 4.5 | % | |||||||
60+ delinquent (% of loans)(5) | 3.1 | % | 5.8 | % | |||||||
90+ delinquent (% of loans)(5) | 2.8 | % | 5.3 | % | |||||||
120+ delinquent (% of loans)(5) | 2.6 | % | 4.5 | % | |||||||
Year Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Total prepayment speed (12-month constant prepayment rate) | 25.6 | % | 27.1 | % |
Successor | |||||||
December 31, 2019 | December 31, 2018 | ||||||
Loan count | 3,588,162 | 3,133,784 | |||||
Average loan amount(2) | $ | 172,980 | $ | 165,748 | |||
Average coupon - credit sensitive(3) | 4.7 | % | 4.9 | % | |||
Average coupon - interest sensitive(3) | 4.3 | % | 4.2 | % | |||
60+ delinquent (% of loans)(4) | 2.0 | % | 2.2 | % | |||
90+ delinquent (% of loans)(4) | 1.7 | % | 1.9 | % | |||
120+ delinquent (% of loans)(4) | 1.5 | % | 1.7 | % | |||
Total prepayment speed (12-month constant prepayment rate) | 14.7 | % | 9.1 | % |
Table |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | Change | |||||||||||||||
Modifications(1) | 67,664 | 21,674 | 45,990 | ||||||||||||||
Workouts(2) | 70,028 | 42,867 | 27,161 | ||||||||||||||
Total modification and workout units | 137,692 | 64,541 | 73,151 |
Successor | Predecessor | |||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Combined(1) | Amount Change | % Change | |||||||||||||
HAMP modifications | 11 | 5 | 38 | 43 | (32 | ) | (74 | )% | ||||||||||
Non-HAMP modifications | 20,683 | 13,120 | 16,828 | 29,948 | (9,265 | ) | (31 | )% | ||||||||||
Workouts | 19,669 | 7,066 | 22,700 | 29,766 | (10,097 | ) | (34 | )% | ||||||||||
Total modification and workout units | 40,363 | 20,191 | 39,566 | 59,757 | (19,394 | ) | (32 | )% |
Successor | Predecessor | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Combined(1) | $ Change | % Change | ||||||||||||||||||||||||||||||||||||
Amt | bps(2) | Amt | bps(2) | Amt | bps(2) | Amt | bps(2) | Amt | bps(2) | Amt | bps(2) | ||||||||||||||||||||||||||||||
Forward MSR Operational Revenue | |||||||||||||||||||||||||||||||||||||||||
Base servicing fees | $ | 999 | 16 | $ | 367 | 17 | $ | 501 | 17 | $ | 868 | 17 | $ | 131 | (1 | ) | 15 | % | (6 | )% | |||||||||||||||||||||
Modification fees(3) | 17 | — | 8 | — | 21 | 1 | 29 | 1 | (12 | ) | (1 | ) | (41 | )% | (100 | )% | |||||||||||||||||||||||||
Incentive fees(3) | 15 | — | 5 | — | 13 | — | 18 | — | (3 | ) | — | (17 | )% | — | % | ||||||||||||||||||||||||||
Late payment fees(3) | 84 | 2 | 29 | 2 | 45 | 2 | 74 | 2 | 10 | — | 14 | % | — | % | |||||||||||||||||||||||||||
Other ancillary revenues(3) | 172 | 3 | 40 | 2 | 63 | 2 | 103 | 2 | 69 | 1 | 67 | % | 50 | % | |||||||||||||||||||||||||||
Total forward MSR operational revenue | 1,287 | 21 | 449 | 21 | 643 | 22 | 1,092 | 22 | 195 | (1 | ) | 18 | % | (5 | )% | ||||||||||||||||||||||||||
Base subservicing fees and other subservicing revenue(3) | 239 | 4 | 67 | 3 | 87 | 2 | 154 | 3 | 85 | 1 | 55 | % | 33 | % | |||||||||||||||||||||||||||
Reverse servicing fees | 31 | — | 16 | 1 | 37 | 1 | 53 | 1 | (22 | ) | (1 | ) | (42 | )% | (100 | )% | |||||||||||||||||||||||||
Total servicing fee revenue | 1,557 | 25 | 532 | 25 | 767 | 25 | 1,299 | 26 | 258 | (1 | ) | 20 | % | (4 | )% | ||||||||||||||||||||||||||
MSR financing liability costs | (41 | ) | — | (20 | ) | (1 | ) | (33 | ) | (1 | ) | (53 | ) | (1 | ) | 12 | 1 | (23 | )% | 100 | % | ||||||||||||||||||||
Excess spread costs - principal | (243 | ) | (4 | ) | (48 | ) | (2 | ) | (78 | ) | (3 | ) | (126 | ) | (2 | ) | (117 | ) | (2 | ) | 93 | % | 100 | % | |||||||||||||||||
Total operational revenue | 1,273 | 21 | 464 | 22 | 656 | 21 | 1,120 | 23 | 153 | (2 | ) | 14 | % | (9 | )% | ||||||||||||||||||||||||||
Amortization, net of accretion | |||||||||||||||||||||||||||||||||||||||||
Forward MSR amortization | (527 | ) | (9 | ) | (128 | ) | (6 | ) | �� | (190 | ) | (7 | ) | (318 | ) | (6 | ) | (209 | ) | (3 | ) | 66 | % | 50 | % | ||||||||||||||||
Excess spread accretion | 243 | 4 | 53 | 2 | 78 | 3 | 131 | 3 | 112 | 1 | 85 | % | 33 | % | |||||||||||||||||||||||||||
Reverse MSL accretion(4) | 47 | 1 | 15 | 1 | — | — | 15 | — | 32 | 1 | 213 | % | 100 | % | |||||||||||||||||||||||||||
Reverse MSR amortization | 1 | — | (4 | ) | — | — | — | (4 | ) | — | 5 | — | (125 | )% | — | % | |||||||||||||||||||||||||
Total amortization, net of accretion | (236 | ) | (4 | ) | (64 | ) | (3 | ) | (112 | ) | (4 | ) | (176 | ) | (3 | ) | (60 | ) | (1 | ) | 34 | % | 33 | % | |||||||||||||||||
Mark-to-Market Adjustments | |||||||||||||||||||||||||||||||||||||||||
MSR MTM(5) | (669 | ) | (11 | ) | (153 | ) | (7 | ) | 295 | 10 | 142 | 3 | (811 | ) | (14 | ) | (571 | )% | (467 | )% | |||||||||||||||||||||
Excess spread / financing MTM | 164 | 3 | (11 | ) | (1 | ) | (99 | ) | (3 | ) | (110 | ) | (2 | ) | 274 | 5 | (249 | )% | (250 | )% | |||||||||||||||||||||
Total MTM adjustments | (505 | ) | (8 | ) | (164 | ) | (8 | ) | 196 | 7 | 32 | 1 | (537 | ) | (9 | ) | (1,678 | )% | (900 | )% | |||||||||||||||||||||
Total revenues - Servicing | $ | 532 | 9 | $ | 236 | 11 | $ | 740 | 24 | $ | 976 | 21 | $ | (444 | ) | (12 | ) | (45 | )% | (57 | )% |
Successor | Predecessor | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Combined(1) | Change | % Change | |||||||||||||||||||||||||||||||
Amt | bps(2) | Amt | bps(2) | Amt | bps(2) | Amt | bps(2) | Amt | bps(2) | Amt | bps(2) | |||||||||||||||||||||||||
Salaries, wages and benefits | $ | 346 | 5 | $ | 131 | 6 | $ | 175 | 6 | $ | 306 | 6 | $ | 40 | (1) | 13 | % | (17 | )% | |||||||||||||||||
General and administrative | ||||||||||||||||||||||||||||||||||||
Servicing support fees | 121 | 2 | 59 | 3 | 71 | 2 | 130 | 3 | (9 | ) | (1) | (7 | )% | (33 | )% | |||||||||||||||||||||
Corporate and other general and administrative expenses | 162 | 3 | 66 | 3 | 80 | 3 | 146 | 3 | 16 | — | 11 | % | — | % | ||||||||||||||||||||||
Foreclosure and other liquidation related expenses | 42 | 1 | 38 | 2 | 133 | 4 | 171 | 3 | (129 | ) | (2) | (75 | )% | (67 | )% | |||||||||||||||||||||
Depreciation and amortization | 19 | — | 9 | — | 15 | — | 24 | — | (5 | ) | — | (21 | )% | — | % | |||||||||||||||||||||
Total general and administrative expenses | 344 | 6 | 172 | 8 | 299 | 9 | 471 | 9 | (127 | ) | (3) | (27 | )% | (33 | )% | |||||||||||||||||||||
Total expenses - Servicing | $ | 690 | 11 | $ | 303 | 14 | $ | 474 | 15 | $ | 777 | 15 | $ | (87 | ) | (4) | (11 | )% | (27 | )% |
Successor | Predecessor | ||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Combined(1) | Change | % Change | ||||||||||||||||||||||||||||||||||||
Amt | bps(2) | Amt | bps(2) | Amt | bps(2) | Amt | bps(2) | Amt | bps(2) | Amt | bps(2) | ||||||||||||||||||||||||||||||
Income earned on reverse mortgage interest | $ | 313 | 5 | $ | 206 | 10 | $ | 274 | 9 | $ | 480 | 9 | $ | (167 | ) | (4 | ) | (35 | )% | (44 | )% | ||||||||||||||||||||
Other interest income | 187 | 3 | 16 | 1 | 14 | 1 | 30 | 1 | 157 | 2 | 523 | % | 200 | % | |||||||||||||||||||||||||||
Interest income | 500 | 8 | 222 | 11 | 288 | 10 | 510 | 10 | (10 | ) | (2 | ) | (2 | )% | (20 | )% | |||||||||||||||||||||||||
Reverse mortgage interest expense | (236 | ) | (4 | ) | (147 | ) | (6 | ) | (221 | ) | (7 | ) | (368 | ) | (7 | ) | 132 | 3 | (36 | )% | (43 | )% | |||||||||||||||||||
Advance interest expense | (29 | ) | — | (13 | ) | (1 | ) | (19 | ) | (1 | ) | (32 | ) | (1 | ) | 3 | 1 | (9 | )% | (100 | )% | ||||||||||||||||||||
Other interest expense | (204 | ) | (3 | ) | (13 | ) | (1 | ) | (28 | ) | (1 | ) | (41 | ) | (1 | ) | (163 | ) | (2 | ) | 398 | % | 200 | % | |||||||||||||||||
Interest expense | (469 | ) | (7 | ) | (173 | ) | (8 | ) | (268 | ) | (9 | ) | (441 | ) | (9 | ) | (28 | ) | 2 | (6 | )% | (22 | )% | ||||||||||||||||||
Other income (expenses), net | 4 | — | 6 | — | (1 | ) | — | 5 | — | (1 | ) | — | (20 | )% | — | % | |||||||||||||||||||||||||
Total other income (expenses), net - Servicing | $ | 35 | 1 | $ | 55 | 3 | $ | 19 | 1 | $ | 74 | 1 | $ | (39 | ) | — | (53 | )% | — | % | |||||||||||||||||||||
Weighted average cost - advance facilities | 3.9 | % | 4.1 | % | 3.9 | % | 4.0 | % | (0.1 | )% | (3 | )% | |||||||||||||||||||||||||||||
Weighted average cost - excess spread financing | 8.9 | % | 8.8 | % | 8.8 | % | 8.8 | % | 0.1 | % | 1 | % |
Table |
Successor | |||||||||||||||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||
UPB | Carrying Amount | Weighted Avg. Coupon | UPB | Carrying Amount | Weighted Avg. Coupon | ||||||||||||||||
Forward MSRs - fair value | |||||||||||||||||||||
Agency | $ | 240,688 | $ | 2,944 | 4.5 | % | $ | 229,108 | $ | 3,027 | 4.5 | % | |||||||||
Non-agency | 56,094 | 552 | 4.7 | % | 66,373 | 638 | 4.8 | % | |||||||||||||
Total forward MSRs - fair value | 296,782 | 3,496 | 4.5 | % | 295,481 | 3,665 | 4.5 | % | |||||||||||||
Subservicing and other(1) | |||||||||||||||||||||
Agency | 308,532 | N/A | N/A | 208,607 | N/A | N/A | |||||||||||||||
Non-agency | 15,451 | N/A | N/A | 15,279 | N/A | N/A | |||||||||||||||
Total subservicing and other | 323,983 | N/A | N/A | 223,886 | N/A | N/A | |||||||||||||||
Reverse portfolio - amortized cost | |||||||||||||||||||||
MSR | 2,508 | 6 | N/A | 3,940 | 11 | N/A | |||||||||||||||
MSL | 13,994 | (61 | ) | N/A | 16,538 | (71 | ) | N/A | |||||||||||||
Securitized loans | 6,223 | 6,279 | N/A | 7,937 | 7,934 | N/A | |||||||||||||||
Total reverse portfolio serviced | 22,725 | 6,224 | N/A | 28,415 | 7,874 | N/A | |||||||||||||||
Total servicing portfolio unpaid principal balance | $ | 643,490 | $ | 9,720 | N/A | $ | 547,782 | $ | 11,539 | N/A |
Successor | |||||||||||||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||||||
UPB | Carrying Amount | bps | UPB | Carrying Amount | bps | ||||||||||||||
Forward MSRs - fair value | |||||||||||||||||||
Credit sensitive | $ | 147,895 | $ | 1,613 | 109 | $ | 135,752 | $ | 1,495 | 110 | |||||||||
Interest sensitive | 148,887 | 1,883 | 126 | 159,729 | 2,170 | 136 | |||||||||||||
Total forward MSRs - fair value | $ | 296,782 | $ | 3,496 | 118 | $ | 295,481 | $ | 3,665 | 124 |
Year Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Fair value - beginning of year | $ | 2,703 | $ | 3,496 | |||||||
Additions: | |||||||||||
Servicing retained from mortgage loans sold | 1,077 | 687 | |||||||||
Purchases of servicing rights | 948 | 124 | |||||||||
Dispositions: | |||||||||||
Sales of servicing assets | (55) | (9) | |||||||||
Changes in fair value: | |||||||||||
Due to changes in valuation inputs or assumptions used in the valuation model (MSR MTM): | |||||||||||
Agency | 342 | (691) | |||||||||
Non-agency | 160 | (128) | |||||||||
Changes in valuation due to amortization: | |||||||||||
Scheduled principal payments | (123) | (94) | |||||||||
Prepayments | |||||||||||
Voluntary prepayments | |||||||||||
Agency | (818) | (653) | |||||||||
Non-agency | (63) | (91) | |||||||||
Involuntary prepayments | |||||||||||
Agency | (4) | (9) | |||||||||
Non-agency | — | (1) | |||||||||
Other changes(1) | 56 | 72 | |||||||||
Fair value - end of year | $ | 4,223 | $ | 2,703 |
Successor | Predecessor | |||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | ||||||||||
Fair value - beginning of period | $ | 3,665 | $ | 3,413 | $ | 2,937 | ||||||
Additions: | ||||||||||||
Servicing resulting from mortgage loans sold | 434 | 120 | 162 | |||||||||
Purchases of servicing rights | 858 | 479 | 144 | |||||||||
Dispositions: | ||||||||||||
Sales and cancellation of servicing assets(1) | (408 | ) | (111 | ) | 4 | |||||||
Changes in fair value: | ||||||||||||
Due to changes in valuation inputs or assumptions used in the valuation model: | ||||||||||||
Credit sensitive | (205 | ) | (78 | ) | 203 | |||||||
Interest sensitive | (384 | ) | (45 | ) | 127 | |||||||
Other changes in fair value: | ||||||||||||
Scheduled principal payments | (94 | ) | (39 | ) | (45 | ) | ||||||
Disposition of negative MSRs and other(2) | 64 | 14 | 27 | |||||||||
Prepayments | ||||||||||||
Voluntary prepayments | ||||||||||||
Credit sensitive | (99 | ) | (36 | ) | (71 | ) | ||||||
Interest sensitive | (309 | ) | (37 | ) | (54 | ) | ||||||
Involuntary prepayments | ||||||||||||
Credit sensitive | (7 | ) | (7 | ) | (12 | ) | ||||||
Interest sensitive | (19 | ) | (8 | ) | (9 | ) | ||||||
Fair value - end of period | $ | 3,496 | $ | 3,665 | $ | 3,413 |
See Note 4, Mortgage Servicing Rights and Related Liabilities and Note 17, Fair Value Measurements, in the Notes to Consolidated Financial Statements, for additional information regarding the range of assumptions and sensitivities related to |
Successor | |||||
December 31, 2019 | December 31, 2018 | ||||
Total MSRs Portfolio | |||||
Discount rate | 9.7 | % | 10.2 | % | |
Prepayment speeds | 13.1 | % | 10.8 | % | |
Average life | 5.8 years | 6.7 years | |||
Credit Sensitive | |||||
Discount rate | 10.4 | % | 11.3 | % | |
Prepayment speeds | 12.7 | % | 11.8 | % | |
Average life | 6.0 years | 6.4 years | |||
Interest Sensitive | |||||
Discount rate | 9.1 | % | 9.3 | % | |
Prepayment speeds | 13.5 | % | 10.0 | % | |
Average life | 5.7 years | 7.0 years |
Table |
Year Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Fair value - beginning of year | $ | 934 | $ | 1,311 | |||||||
Additions: | |||||||||||
New financings | — | 24 | |||||||||
Deductions: | |||||||||||
Settlements and repayments | (156) | (207) | |||||||||
Changes in fair value: | |||||||||||
Agency | (20) | (195) | |||||||||
Non-Agency | 10 | 1 | |||||||||
Fair value - end of year | $ | 768 | $ | 934 |
Successor | Predecessor | |||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | ||||||||||
Fair value - beginning of period | $ | 1,184 | $ | 1,039 | $ | 996 | ||||||
Additions: | ||||||||||||
New financings | 542 | 255 | 70 | |||||||||
Deductions: | ||||||||||||
Repayments of debt | (27 | ) | (38 | ) | (3 | ) | ||||||
Settlements of principal balances | (219 | ) | (77 | ) | (105 | ) | ||||||
Changes in fair value: | ||||||||||||
Credit sensitive | (61 | ) | 23 | 73 | ||||||||
Interest sensitive | (108 | ) | (18 | ) | 8 | |||||||
Fair value - end of period | $ | 1,311 | $ | 1,184 | $ | 1,039 | ||||||
Successor | ||||||||||||
Key Weighted-Average Assumptions: | December 31, 2019 | December 31, 2018 | ||||||||||
Total Excess Spread Portfolio | ||||||||||||
Discount rate | 11.6 | % | 10.4 | % | ||||||||
Prepayment speeds | 12.6 | % | 11.0 | % | ||||||||
Recapture rate | 20.1 | % | 18.6 | % | ||||||||
Average life | 5.8 years | 6.5 years | ||||||||||
Credit Sensitive | ||||||||||||
Discount rate | 12.3 | % | 11.1 | % | ||||||||
Prepayment speeds | 12.5 | % | 11.6 | % | ||||||||
Recapture rate | 21.6 | % | 18.0 | % | ||||||||
Average life | 5.9 years | 6.3 years | ||||||||||
Interest Sensitive | ||||||||||||
Discount rate | 10.5 | % | 9.0 | % | ||||||||
Prepayment speed | 12.8 | % | 9.9 | % | ||||||||
Recapture rate | 17.6 | % | 16.0 | % | ||||||||
Average life | 5.8 years | 7.0 years |
Successor | Predecessor | |||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | ||||||||||
Fair value - beginning of period | $ | 32 | $ | 26 | $ | 10 | ||||||
Changes in fair value: | ||||||||||||
Changes in valuation inputs or assumptions used in the valuation model | 23 | 11 | 22 | |||||||||
Other changes in fair value | (18 | ) | (5 | ) | (6 | ) | ||||||
Fair value - end of period | $ | 37 | $ | 32 | $ | 26 | ||||||
Successor | ||||||||||||
Weighted-Average Assumptions | December 31, 2019 | December 31, 2018 | ||||||||||
Advance financing rates | 3.5 | % | 4.2 | % | ||||||||
Annual advance recovery rates | 18.8 | % | 19.0 | % |
Successor | |||||||
December 31, 2019 | December 31, 2018 | ||||||
Owned forward servicing portfolio - unencumbered | $ | 83,557 | $ | 103,644 | |||
Owned forward servicing portfolio - encumbered | 213,225 | 191,837 | |||||
Subserviced forward servicing portfolio and other | 323,983 | 223,886 | |||||
Total unpaid principal balance | $ | 620,765 | $ | 519,367 |
Successor | |||||||
December 31, 2019 | December 31, 2018 | ||||||
Loan count | 165,364 | 192,810 | |||||
Ending unpaid principal balance | $ | 22,725 | $ | 28,415 | |||
Average loan amount(1) | $ | 137,426 | $ | 147,374 | |||
Average coupon | 3.6 | % | 4.5 | % | |||
Average borrower age | 80 | 79 |
Table |
Year Ended December 31, | |||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Service related, net - Originations(1) | $ | 176 | $ | 105 | $ | 71 | 68 | % | |||||||||||||||
Net gain on mortgage loans held for sale | |||||||||||||||||||||||
Net gain on loans originated and sold(2) | 751 | 1,437 | (686) | (48) | % | ||||||||||||||||||
Capitalized servicing rights(3) | 952 | 674 | 278 | 41 | % | ||||||||||||||||||
Provision for repurchase reserves, net of release | (20) | (23) | 3 | (13) | % | ||||||||||||||||||
Total net gain on mortgage loans held for sale | 1,683 | 2,088 | (405) | (19) | % | ||||||||||||||||||
Total revenues | 1,859 | 2,193 | (334) | (15) | % | ||||||||||||||||||
Expenses | |||||||||||||||||||||||
Salaries, wages and benefits | 609 | 540 | 69 | 13 | % | ||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Loan origination expenses | 100 | 77 | 23 | 30 | % | ||||||||||||||||||
Corporate and other general and administrative expenses | 67 | 64 | 3 | 5 | % | ||||||||||||||||||
Marketing and professional service fees | 52 | 47 | 5 | 11 | % | ||||||||||||||||||
Depreciation and amortization | 24 | 18 | 6 | 33 | % | ||||||||||||||||||
Total general and administrative | 243 | 206 | 37 | 18 | % | ||||||||||||||||||
Total expenses | 852 | 746 | 106 | 14 | % | ||||||||||||||||||
Other income (expenses) | |||||||||||||||||||||||
Interest income | 102 | 95 | 7 | 7 | % | ||||||||||||||||||
Interest expense | (88) | (78) | (10) | 13 | % | ||||||||||||||||||
Total other income, net | 14 | 17 | (3) | (18) | % | ||||||||||||||||||
Income before income tax expense | $ | 1,021 | $ | 1,464 | $ | (443) | (30) | % | |||||||||||||||
Weighted average note rate - mortgage loans held for sale | 3.0 | % | 3.3 | % | (0.3) | % | (9) | % | |||||||||||||||
Weighted average cost of funds (excluding facility fees) | 2.0 | % | 2.7 | % | (0.7) | % | (26) | % |
Successor | Predecessor | ||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Combined(1) | $ Change | % Change | ||||||||||||||||||
Total revenues | $ | 1,043 | $ | 181 | $ | 306 | $ | 487 | $ | 556 | 114 | % | |||||||||||
Total expenses | 568 | 155 | 245 | 400 | 168 | 42 | % | ||||||||||||||||
Total other income (expenses), net | 4 | 6 | 1 | 7 | (3 | ) | (43 | )% | |||||||||||||||
Income before income tax expense | $ | 479 | $ | 32 | $ | 62 | $ | 94 | $ | 385 | 410 | % | |||||||||||
Originations Margin | |||||||||||||||||||||||
Revenue | $ | 1,043 | $ | 181 | $ | 306 | $ | 487 | $ | 556 | 114 | % | |||||||||||
Pull through adjusted lock volume | $ | 42,393 | $ | 8,295 | $ | 11,907 | $ | 20,202 | $ | 22,191 | 110 | % | |||||||||||
Revenue as a percentage of pull through adjusted lock volume(2) | 2.46 | % | 2.18 | % | 2.57 | % | 2.41 | % | 0.05 | % | 2 | % | |||||||||||
Expenses | $ | 568 | $ | 155 | $ | 245 | $ | 400 | $ | 168 | 42 | % | |||||||||||
Funded volume | $ | 40,182 | $ | 8,884 | $ | 12,317 | $ | 21,201 | $ | 18,981 | 90 | % | |||||||||||
Expenses as a percentage of funded volume(3) | 1.41 | % | 1.74 | % | 1.99 | % | 1.89 | % | (0.48 | )% | (25 | )% | |||||||||||
Originations Margin | 1.05 | % | 0.44 | % | 0.58 | % | 0.52 | % | 0.53 | % | 102 | % |
Year Ended December 31, | |||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Key Metrics | |||||||||||||||||||||||
Consumer direct lock pull through adjusted volume(1) | $ | 36,624 | $ | 37,940 | $ | (1,316) | (3) | % | |||||||||||||||
Other locked pull through adjusted volume(1) | 39,810 | 30,631 | 9,179 | 30 | % | ||||||||||||||||||
Total pull through adjusted lock volume | $ | 76,434 | $ | 68,571 | $ | 7,863 | 11 | % | |||||||||||||||
Funded volume | $ | 84,463 | $ | 63,212 | $ | 21,251 | 34 | % | |||||||||||||||
Volume of loans sold | $ | 93,549 | $ | 64,114 | $ | 29,435 | 46 | % | |||||||||||||||
Recapture percentage(2) | 31.4 | % | 27.2 | % | 4.2 | % | 15 | % | |||||||||||||||
Refinance recapture percentage(3) | 40.0 | % | 33.2 | % | 6.8 | % | 20 | % | |||||||||||||||
Purchase as a percentage of funded volume | 23.3 | % | 17.7 | % | 5.6 | % | 32 | % | |||||||||||||||
Value of capitalized servicing on retained settlements | 132 | bps | 134 | bps | (2) | bps | (1) | % | |||||||||||||||
Originations Margin | |||||||||||||||||||||||
Revenue | $ | 1,859 | $ | 2,193 | $ | (334) | (15) | % | |||||||||||||||
Pull through adjusted lock volume | $ | 76,434 | $ | 68,571 | $ | 7,863 | 11 | % | |||||||||||||||
Revenue as a percentage of pull through adjusted lock volume(4) | 2.43 | % | 3.20 | % | (0.77) | % | (24) | % | |||||||||||||||
Expenses(5) | $ | 838 | $ | 729 | $ | 109 | 15 | % | |||||||||||||||
Funded volume | $ | 84,463 | $ | 63,212 | $ | 21,251 | 34 | % | |||||||||||||||
Expenses as a percentage of funded volume(6) | 0.99 | % | 1.15 | % | (0.16) | % | (14) | % | |||||||||||||||
Originations Margin | 1.44 | % | 2.05 | % | (0.61) | % | (30) | % |
Successor | Predecessor | ||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Combined(1) | $ Change | % Change | ||||||||||||||||||
Service related, net - Originations | $ | 80 | $ | 24 | $ | 36 | $ | 60 | $ | 20 | 33 | % | |||||||||||
Net gain on mortgage loans held for sale | |||||||||||||||||||||||
Net gain on loans originated and sold | 562 | 46 | 115 | 161 | 401 | 249 | % | ||||||||||||||||
Capitalized servicing rights | 420 | 114 | 156 | 270 | 150 | 56 | % | ||||||||||||||||
Provision for repurchase reserves, net of release | (19 | ) | (3 | ) | (1 | ) | (4 | ) | (15 | ) | 375 | % | |||||||||||
Total net gain on mortgage loans held for sale | 963 | 157 | 270 | 427 | 536 | 126 | % | ||||||||||||||||
Total revenues - Originations | $ | 1,043 | $ | 181 | $ | 306 | $ | 487 | $ | 556 | 114 | % | |||||||||||
Key Metrics | |||||||||||||||||||||||
Consumer direct lock pull through adjusted volume(2) | $ | 18,151 | $ | 3,588 | $ | 6,100 | $ | 9,688 | $ | 8,463 | 87 | % | |||||||||||
Other locked pull through adjusted volume(2) | 24,242 | 4,707 | 5,807 | 10,514 | 13,728 | 131 | % | ||||||||||||||||
Total pull through adjusted lock volume | $ | 42,393 | $ | 8,295 | $ | 11,907 | $ | 20,202 | $ | 22,191 | 110 | % | |||||||||||
Funded volume | $ | 40,182 | $ | 8,884 | $ | 12,317 | $ | 21,201 | $ | 18,981 | 90 | % | |||||||||||
Volume of loans sold | $ | 40,092 | $ | 9,183 | $ | 12,915 | $ | 22,098 | $ | 17,994 | 81 | % | |||||||||||
Recapture percentage | 26.2 | % | 24.8 | % | 23.8 | % | 24.6 | % | 1.6 | % | 7 | % | |||||||||||
Purchase as a percentage of funded volume | 41.5 | % | 55.8 | % | 46.7 | % | 64.7 | % | (23.2 | )% | (36 | )% | |||||||||||
Value of capitalized servicing on retained settlements | 147 bps | 144 bps | 141 bps | 142 bps | 5 bps | 4 | % |
Successor | Predecessor | ||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Combined(1) | $ Change | % Change | ||||||||||||||||||
Salaries, wages and benefits | $ | 375 | $ | 95 | $ | 148 | $ | 243 | $ | 132 | 54 | % | |||||||||||
General and administrative | |||||||||||||||||||||||
Loan origination expenses | 58 | 19 | 32 | 51 | 7 | 14 | % | ||||||||||||||||
Corporate and other general and administrative expenses | 61 | 18 | 26 | 44 | 17 | 39 | % | ||||||||||||||||
Marketing and professional service fees | 53 | 18 | 32 | 50 | 3 | 6 | % | ||||||||||||||||
Depreciation and amortization | 18 | 5 | 7 | 12 | 6 | 50 | % | ||||||||||||||||
Loss on impairment of assets | 3 | — | — | — | 3 | 100 | % | ||||||||||||||||
Total general and administrative | 193 | 60 | 97 | 157 | 36 | 23 | % | ||||||||||||||||
Total expenses - Originations | $ | 568 | $ | 155 | $ | 245 | $ | 400 | $ | 168 | 42 | % |
Successor | Predecessor | ||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Combined(1) | $ Change | % Change | ||||||||||||||||||
Interest income | $ | 98 | $ | 27 | $ | 38 | $ | 65 | $ | 33 | 51 | % | |||||||||||
Interest expense | (98 | ) | (26 | ) | (37 | ) | (63 | ) | (35 | ) | 56 | % | |||||||||||
Other income, net | 4 | 5 | — | 5 | (1 | ) | (20 | )% | |||||||||||||||
Total other income (expenses), net - Originations | $ | 4 | $ | 6 | $ | 1 | $ | 7 | $ | (3 | ) | (43 | )% | ||||||||||
Weighted average note rate - mortgage loans held for sale | 4.3 | % | 4.9 | % | 4.5 | % | 4.7 | % | (0.4 | )% | (9 | )% | |||||||||||
Weighted average cost of funds (excluding facility fees) | 4.1 | % | 4.5 | % | 4.2 | % | 4.4 | % | (0.3 | )% | (7 | )% |
Corporate/Other |
Successor | Predecessor | ||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Combined(1) | $ Change | % Change | ||||||||||||||||||
Xome - Operations | |||||||||||||||||||||||
Total revenues | $ | 422 | $ | 177 | $ | 149 | $ | 326 | $ | 96 | 29 | % | |||||||||||
Total expenses | 398 | 178 | 123 | 301 | 97 | 32 | % | ||||||||||||||||
Total other income (expenses), net | 14 | — | 9 | 9 | 5 | 56 | % | ||||||||||||||||
Income (loss) before income tax expense (benefit) | $ | 38 | $ | (1 | ) | $ | 35 | $ | 34 | $ | 4 | 12 | % | ||||||||||
Income (loss) before taxes margin - Xome | 9.0 | % | (0.6 | )% | 23.5 | % | 10.4 | % | (1.4 | )% | (13 | )% | |||||||||||
Xome - Revenues | |||||||||||||||||||||||
Exchange | $ | 79 | $ | 34 | $ | 62 | $ | 96 | $ | (17 | ) | (18 | )% | ||||||||||
Services | 323 | 135 | 74 | 209 | 114 | 55 | % | ||||||||||||||||
Data/Technology | 20 | 8 | 13 | 21 | (1 | ) | (5 | )% | |||||||||||||||
Total revenues - Xome | $ | 422 | $ | 177 | $ | 149 | $ | 326 | $ | 96 | 29 | % | |||||||||||
Key Metrics | |||||||||||||||||||||||
Exchange properties sold | 9,851 | 3,952 | 6,920 | 10,872 | (1,021 | ) | (9 | )% | |||||||||||||||
Average Exchange properties under management | 7,893 | 5,660 | 6,567 | 6,189 | 1,704 | 28 | % | ||||||||||||||||
Services completed orders | 1,630,002 | 808,503 | 264,031 | 1,072,534 | 557,468 | 52 | % | ||||||||||||||||
Percentage of revenue earned from third-party customers | 52.5 | % | 56.2 | % | 28.0 | % | 43.3 | % | 9.2 | % | 21 | % | |||||||||||
Xome - Expenses | |||||||||||||||||||||||
Salaries, wages and benefits | $ | 148 | $ | 73 | $ | 58 | $ | 131 | $ | 17 | 13 | % | |||||||||||
General and administrative | |||||||||||||||||||||||
Operational expenses | 236 | 100 | 58 | 158 | 78 | 49 | % | ||||||||||||||||
Depreciation and amortization | 14 | 5 | 7 | 12 | 2 | 17 | % | ||||||||||||||||
Total general and administrative | 250 | 105 | 65 | 170 | 80 | 47 | % | ||||||||||||||||
Total expenses - Xome | $ | 398 | $ | 178 | $ | 123 | $ | 301 | $ | 97 | 32 | % |
Table |
Year Ended December 31, | ||||||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | |||||||||||||||||||||||
Corporate/Other - Operations | ||||||||||||||||||||||||||
Total revenues | $ | 186 | $ | 433 | $ | (247) | (57) | % | ||||||||||||||||||
Total expenses | 308 | 545 | (237) | (43) | % | |||||||||||||||||||||
Interest expense | 128 | 182 | (54) | (30) | % | |||||||||||||||||||||
Other income (expense), net | 528 | (135) | 663 | (491) | % | |||||||||||||||||||||
Key Metrics | ||||||||||||||||||||||||||
Average exchange properties under management | 15,039 | 16,354 | (1,315) | (8) | % |
Successor | Predecessor | ||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Combined(1) | $ Change | % Change | ||||||||||||||||||
Corporate/Other - Operations | |||||||||||||||||||||||
Total revenues | $ | 13 | $ | — | $ | 1 | $ | 1 | $ | 12 | 1,200 | % | |||||||||||
Total expenses | 198 | 71 | 103 | 174 | 24 | 14 | % | ||||||||||||||||
Total other income (expenses), net | (212 | ) | (85 | ) | (78 | ) | (163 | ) | (49 | ) | 30 | % | |||||||||||
Loss before income tax benefit - Corporate/Other | $ | (397 | ) | $ | (156 | ) | $ | (180 | ) | $ | (336 | ) | $ | (61 | ) | 18 | % | ||||||
Corporate/Other - Expenses | |||||||||||||||||||||||
Salaries, wages and benefits | $ | 88 | $ | 38 | $ | 45 | $ | 83 | $ | 5 | 6 | % | |||||||||||
General and administrative | |||||||||||||||||||||||
Operational expenses | 62 | 13 | 54 | 67 | (5 | ) | (7 | )% | |||||||||||||||
Depreciation and amortization | 40 | 20 | 4 | 24 | 16 | 67 | % | ||||||||||||||||
Loss on impairment of assets | 8 | — | — | — | 8 | 100 | % | ||||||||||||||||
Total general and administrative | 110 | 33 | 58 | 91 | 19 | 21 | % | ||||||||||||||||
Total expenses - Corporate/Other | $ | 198 | $ | 71 | $ | 103 | $ | 174 | $ | 24 | 14 | % | |||||||||||
Corporate/Other - Other Income (Expenses), Net | |||||||||||||||||||||||
Interest income, legacy portfolio | $ | 6 | $ | 5 | $ | 7 | $ | 12 | $ | (6 | ) | (50 | )% | ||||||||||
Other interest income | 1 | 2 | — | 2 | (1 | ) | (50 | )% | |||||||||||||||
Total interest income | 7 | 7 | 7 | 14 | (7 | ) | (50 | )% | |||||||||||||||
Interest expense, legacy portfolio | (1 | ) | (1 | ) | (3 | ) | (4 | ) | 3 | (75 | )% | ||||||||||||
Interest expense on unsecured senior notes | (203 | ) | (90 | ) | (77 | ) | (167 | ) | (36 | ) | 22 | % | |||||||||||
Other interest expense | (8 | ) | (2 | ) | (3 | ) | (5 | ) | (3 | ) | 60 | % | |||||||||||
Total interest expense | (212 | ) | (93 | ) | (83 | ) | (176 | ) | (36 | ) | 20 | % | |||||||||||
Other (expense) income, net | (7 | ) | 1 | (2 | ) | (1 | ) | (6 | ) | 600 | % | ||||||||||||
Total other income (expenses), net - Corporate/Other | $ | (212 | ) | $ | (85 | ) | $ | (78 | ) | $ | (163 | ) | $ | (49 | ) | 30 | % | ||||||
Weighted average cost - unsecured senior notes | 7.9 | % | 7.1 | % | 7.4 | % | 7.2 | % | 0.7 | % | 10 | % |
Successor | |||
December 31, 2018 | |||
Performing - UPB | $ | 145 | |
Nonperforming (90+ delinquency) - UPB | 27 | ||
REO - estimated fair value | 4 | ||
Total legacy portfolio | $ | 176 |
Successor | ||||||||||||||
December 31, 2019 | December 31, 2018 | $ Change | % Change | |||||||||||
Cash and cash equivalents | $ | 329 | $ | 242 | $ | 87 | 36.0 | % | ||||||
Mortgage servicing rights | 3,502 | 3,676 | (174 | ) | (4.7 | )% | ||||||||
Advances and other receivables, net | 988 | 1,194 | (206 | ) | (17.3 | )% | ||||||||
Reverse mortgage interests, net | 6,279 | 7,934 | (1,655 | ) | (20.9 | )% | ||||||||
Mortgage loans held for sale at fair value | 4,077 | 1,631 | 2,446 | 150.0 | % | |||||||||
Deferred tax asset, net | 1,345 | 967 | 378 | 39.1 | % | |||||||||
Other | 1,785 | 1,329 | 456 | 34.3 | % | |||||||||
Total assets | $ | 18,305 | $ | 16,973 | $ | 1,332 | 7.8 | % |
Successor | ||||||||||||||
December 31, 2019 | December 31, 2018 | $ Change | % Change | |||||||||||
Unsecured senior notes, net | $ | 2,366 | $ | 2,459 | $ | (93 | ) | (3.8 | )% | |||||
Advance facilities, net | 422 | 595 | (173 | ) | (29.1 | )% | ||||||||
Warehouse facilities, net | 4,575 | 2,349 | 2,226 | 94.8 | % | |||||||||
MSR related liabilities - nonrecourse at fair value | 1,348 | 1,216 | 132 | 10.9 | % | |||||||||
Other nonrecourse debt, net | 5,286 | 6,795 | (1,509 | ) | (22.2 | )% | ||||||||
Other liabilities | 2,077 | 1,614 | 463 | 28.7 | % | |||||||||
Total liabilities | 16,074 | 15,028 | 1,046 | 7.0 | % | |||||||||
Total stockholders’ equity | 2,231 | 1,945 | 286 | 14.7 | % | |||||||||
Total liabilities and stockholders’ equity | $ | 18,305 | $ | 16,973 | $ | 1,332 | 7.8 | % |
Liquidity and Capital Resources |
Table |
Year Ended December 31, | |||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
Net cash attributable to: | |||||||||||||||||||||||
Operating activities | $ | 2,632 | $ | 331 | $ | 2,301 | 695 | % | |||||||||||||||
Investing activities | 1,192 | (134) | 1,326 | (990) | % | ||||||||||||||||||
Financing activities | (3,696) | 104 | (3,800) | (3,654) | % | ||||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | $ | 128 | $ | 301 | $ | (173) | (57) | % |
Successor | Predecessor | ||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Combined(1) | $ Change | % Change | ||||||||||||||||||
Net income | $ | 270 | $ | 884 | $ | 154 | $ | 1,038 | $ | (768 | ) | (74 | )% | ||||||||||
Fair value changes in MSRs, MSR related liabilities and mortgage loans held for investment | 838 | 234 | (80 | ) | 154 | 684 | 444 | % | |||||||||||||||
Deferred tax (benefit) expense | (366 | ) | (1,021 | ) | 63 | (958 | ) | 592 | (62 | )% | |||||||||||||
Other non-cash adjustments to net income | (1,249 | ) | (294 | ) | (388 | ) | (682 | ) | (567 | ) | 83 | % | |||||||||||
Originations net sales activities | (1,204 | ) | (10 | ) | 520 | 510 | (1,714 | ) | (336 | )% | |||||||||||||
Changes in working capital | 2,413 | 1,458 | 2,025 | 3,483 | (1,070 | ) | (31 | )% | |||||||||||||||
Net cash attributable to operating activities | $ | 702 | $ | 1,251 | $ | 2,294 | $ | 3,545 | $ | (2,843 | ) | (80 | )% |
Successor | Predecessor | ||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Combined(1) | $ Change | % Change | ||||||||||||||||||
Acquisitions, net | $ | (85 | ) | $ | (33 | ) | $ | — | $ | (33 | ) | $ | (52 | ) | 158 | % | |||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (547 | ) | (307 | ) | (134 | ) | (441 | ) | (106 | ) | 24 | % | |||||||||||
Proceeds on sale of assets | — | — | 13 | 13 | (13 | ) | (100 | )% | |||||||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 343 | 105 | — | 105 | 238 | 227 | % | ||||||||||||||||
Other | (49 | ) | (15 | ) | (41 | ) | (56 | ) | 7 | (13 | )% | ||||||||||||
Net cash attributable to investing activities | $ | (338 | ) | $ | (250 | ) | $ | (162 | ) | $ | (412 | ) | $ | 74 | (18 | )% |
Successor | Predecessor | ||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Combined(1) | $ Change | % Change | ||||||||||||||||||
Increase (decrease) in warehouse facilities | $ | 1,704 | $ | (351 | ) | $ | (585 | ) | $ | (936 | ) | $ | 2,640 | (282 | )% | ||||||||
(Decrease) increase in advance facilities | (186 | ) | 45 | (305 | ) | (260 | ) | 74 | (28 | )% | |||||||||||||
Repayment of notes payable | (294 | ) | — | — | — | (294 | ) | (100 | )% | ||||||||||||||
Payment of unsecured senior notes and nonrecourse debt | (129 | ) | (1,036 | ) | (69 | ) | (1,105 | ) | 976 | (88 | )% | ||||||||||||
Issuance of excess spread financing | 542 | 255 | 70 | 325 | 217 | 67 | % | ||||||||||||||||
Repayment of excess spread financing | (27 | ) | (38 | ) | (3 | ) | (41 | ) | 14 | (34 | )% | ||||||||||||
Settlement of excess spread financing | (219 | ) | (77 | ) | (105 | ) | (182 | ) | (37 | ) | 20 | % | |||||||||||
Decrease of participating interest financing | (1,591 | ) | (831 | ) | (1,391 | ) | (2,222 | ) | 631 | (28 | )% | ||||||||||||
Changes in HECM securitizations | (99 | ) | (31 | ) | 311 | 280 | (379 | ) | (135 | )% | |||||||||||||
Other | (14 | ) | 1 | (34 | ) | (33 | ) | 19 | (58 | )% | |||||||||||||
Net cash attributable to financing activities | $ | (313 | ) | $ | (2,063 | ) | $ | (2,111 | ) | $ | (4,174 | ) | $ | 3,861 | (93 | )% |
Table |
December 31, 2021 | December 31, 2020 | ||||||||||
Advance facilities principal amount | $ | 614 | $ | 669 | |||||||
Warehouse facilities principal amount | 4,125 | 5,835 | |||||||||
MSR facilities principal amount | 270 | 270 | |||||||||
Unsecured senior notes principal amount | 2,700 | 2,100 |
Successor | |||||||
December 31, 2019 | December 31, 2018 | ||||||
Advance facilities, net | $ | 422 | $ | 595 | |||
Warehouse facilities, net | 4,575 | 2,349 | |||||
Unsecured senior notes, net | 2,366 | 2,459 |
Table |
Year Ending December 31, | Amount | |||
2020 | $ | — | ||
2021(1) | 492 | |||
2022(1) | 206 | |||
2023 | 950 | |||
2024 | — | |||
Thereafter | 750 | |||
Unsecured senior notes principal amount | 2,398 | |||
Unamortized debt issuance costs, premium and discount | (32 | ) | ||
Unsecured senior notes, net | $ | 2,366 |
Amount |
Less than 1 Year | 1 - 3 Years | 3-5 Years | More than 5 Years | Total | |||||||||||||||
Unsecured senior notes(1) | $ | — | $ | 698 | $ | 950 | $ | 750 | $ | 2,398 | |||||||||
Interest payment from unsecured senior notes(2) | 191 | 343 | 214 | 137 | 885 | ||||||||||||||
Advance facilities | 135 | 287 | — | — | 422 | ||||||||||||||
Warehouse facilities | 4,263 | 313 | — | — | 4,576 | ||||||||||||||
Finance lease obligations | 2 | — | — | — | 2 | ||||||||||||||
Operating lease obligations | 40 | 55 | 29 | 32 | 156 | ||||||||||||||
Total | $ | 4,631 | $ | 1,696 | $ | 1,193 | $ | 919 | $ | 8,439 |
2022 through 2026 | $ | — | ||||||
2,700 | ||||||||
2,700 | ||||||||
Unamortized debt issuance costs | (30) | |||||||
Unsecured senior notes, net | $ | 2,670 |
Critical Accounting Policies and Estimates |
Other Matters |
Table 17. Change in Fair Value |
December 31, 2021 | |||||||||||
Down 25 bps | Up 25 bps | ||||||||||
Increase (decrease) in assets | |||||||||||
Mortgage servicing rights at fair value | $ | (230) | $ | 245 | |||||||
Mortgage loans held for sale at fair value | 19 | (25) | |||||||||
Derivative financial instruments: | |||||||||||
Interest rate lock commitments | 33 | (43) | |||||||||
Forward MBS trades | (22) | 29 | |||||||||
Total change in assets | (200) | 206 | |||||||||
Increase (decrease) in liabilities | |||||||||||
Mortgage servicing rights liabilities at fair value | (3) | 3 | |||||||||
Excess spread financing at fair value | (15) | 19 | |||||||||
Derivative financial instruments: | |||||||||||
Interest rate lock commitments | (5) | 6 | |||||||||
Forward MBS trades | 37 | (49) | |||||||||
Total change in liabilities | 14 | (21) | |||||||||
Total, net change | $ | (214) | $ | 227 |
December 31, 2019 | |||||||
Down 25 bps | Up 25 bps | ||||||
Increase (decrease) in assets | |||||||
Mortgage servicing rights at fair value | $ | (248 | ) | $ | 244 | ||
Mortgage loans held for sale at fair value | 20 | (24 | ) | ||||
Derivative financial instruments: | |||||||
Interest rate lock commitments | 25 | (32 | ) | ||||
Forward MBS trades | (11 | ) | 13 | ||||
Total change in assets | (214 | ) | 201 | ||||
Increase (decrease) in liabilities | |||||||
Mortgage servicing rights liabilities at fair value | (4 | ) | 4 | ||||
Excess spread financing at fair value | (50 | ) | 52 | ||||
Derivative financial instruments: | |||||||
Interest rate lock commitments | (4 | ) | 5 | ||||
Forward MBS trades | 33 | (41 | ) | ||||
Total change in liabilities | (25 | ) | 20 | ||||
Total, net change | $ | (189 | ) | $ | 181 |
Report of Independent Registered Public Accounting Firm (PCAOB ID: 42) | |||||
Consolidated Balance Sheets as of December 31, | |||||
Consolidated Statements of Operations for the | |||||
Consolidated Statements of Stockholders’ Equity for the | |||||
Consolidated Statements of Cash Flows for the | |||||
20. Segment Information | |||||
Valuation of Forward Mortgage Servicing Rights and the Excess Spread Financing Liability | |||||
Description of the Matter | The estimated fair values of forward mortgage servicing rights (MSRs) and the excess spread financing liability were $4.2 billion and $0.8 billion, respectively, as of December 31, 2021. The excess spread financing liability is accounted for as a secured borrowing whereby the Company sold to third parties the right to receive a portion of excess cash flow generated from various pools of forward MSRs. As described in Note 2 to the consolidated financial statements, the Company measures forward MSRs and the excess spread financing liability at fair value on a recurring basis with changes in fair value recorded in the statement of operations. Such fair values are based on the present value of future cash flows from servicing the underlying loans. The significant unobservable assumptions used to estimate the fair value of forward MSRs are discount rate, prepayment speed and cost to service. The significant unobservable assumptions used to estimate the fair value of the excess spread financing liability are discount rate and prepayment speed. Auditing management’s estimate of the fair value of forward MSRs and the excess spread financing liability is complex and required judgment due to the subjectivity of the significant unobservable assumptions utilized in the calculation of the fair value. Changes to any of these assumptions could have a material impact on the fair value of the forward MSRs and the excess spread financing liability. | ||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design, and tested the operating effectiveness of the Company’s internal controls over the development of the significant unobservable assumptions and determination of the fair value of forward MSRs and the excess spread financing liability. This included, among others, testing internal controls over management’s review of historical results and market-based information considered in developing these assumptions, management’s review comparing independent fair value ranges and assumptions obtained from third-party valuation firms to the internally developed fair value estimate and assumptions, and management’s review of the completeness and accuracy of data used in determining the assumptions and the fair value estimate. To test the fair value of the forward MSRs and the excess spread financing liability, our audit procedures included, among others, testing the reasonableness of the significant unobservable assumptions and the fair value estimate. We tested the reasonableness of the assumptions by comparing to historical Company results and independent, market-based information. We tested the completeness and accuracy of the data underlying the assumptions and historical results. We utilized an internal valuation specialist to assist in testing management’s assumptions and the fair value estimate and to identify potential sources of contrary information. We also compared the significant unobservable assumptions and the fair value estimate developed by management to those from the third-party valuation firms utilized by management and evaluated the competence and objectivity of these firms. |
Successor | ||||||||||||||||||
December 31, 2019 | December 31, 2018 | December 31, 2021 | December 31, 2020 | |||||||||||||||
Assets | Assets | |||||||||||||||||
Cash and cash equivalents | $ | 329 | $ | 242 | Cash and cash equivalents | $ | 895 | $ | 695 | |||||||||
Restricted cash | 283 | 319 | Restricted cash | 146 | 135 | |||||||||||||
Mortgage servicing rights, $3,496 and $3,665 at fair value, respectively | 3,502 | 3,676 | ||||||||||||||||
Advances and other receivables, net of reserves of $175 and $47, respectively | 988 | 1,194 | ||||||||||||||||
Reverse mortgage interests, net of reserves of $3 and $13, respectively | 6,279 | 7,934 | ||||||||||||||||
Mortgage servicing rights at fair value | Mortgage servicing rights at fair value | 4,223 | 2,703 | |||||||||||||||
Advances and other receivables, net of reserves of $167 and $208, respectively | Advances and other receivables, net of reserves of $167 and $208, respectively | 1,228 | 940 | |||||||||||||||
Mortgage loans held for sale at fair value | 4,077 | 1,631 | Mortgage loans held for sale at fair value | 4,381 | 5,720 | |||||||||||||
Mortgage loans held for investment at fair value | — | 119 | ||||||||||||||||
Property and equipment, net of accumulated depreciation of $55 and $16, respectively | 112 | 96 | ||||||||||||||||
Property and equipment, net of accumulated depreciation of $122 and $92, respectively | Property and equipment, net of accumulated depreciation of $122 and $92, respectively | 98 | 113 | |||||||||||||||
Deferred tax assets, net | 1,345 | 967 | Deferred tax assets, net | 991 | 1,339 | |||||||||||||
Other assets | 1,390 | 795 | Other assets | 2,242 | 7,173 | |||||||||||||
Assets of discontinued operations | Assets of discontinued operations | — | 5,347 | |||||||||||||||
Total assets | $ | 18,305 | $ | 16,973 | Total assets | $ | 14,204 | $ | 24,165 | |||||||||
Liabilities and Stockholders’ Equity | Liabilities and Stockholders’ Equity | |||||||||||||||||
Unsecured senior notes, net | $ | 2,366 | $ | 2,459 | Unsecured senior notes, net | $ | 2,670 | $ | 2,074 | |||||||||
Advance facilities, net | 422 | 595 | ||||||||||||||||
Warehouse facilities, net | 4,575 | 2,349 | ||||||||||||||||
Advance and warehouse facilities, net | Advance and warehouse facilities, net | 4,997 | 6,258 | |||||||||||||||
Payables and other liabilities | 2,016 | 1,543 | Payables and other liabilities | 2,392 | 7,159 | |||||||||||||
MSR related liabilities - nonrecourse at fair value | 1,348 | 1,216 | MSR related liabilities - nonrecourse at fair value | 778 | 967 | |||||||||||||
Mortgage servicing liabilities | 61 | 71 | ||||||||||||||||
Other nonrecourse debt, net | 5,286 | 6,795 | ||||||||||||||||
Liabilities of discontinued operations | Liabilities of discontinued operations | — | 5,203 | |||||||||||||||
Total liabilities | 16,074 | 15,028 | Total liabilities | 10,837 | 21,661 | |||||||||||||
Commitments and contingencies (Note 21) | ||||||||||||||||||
Preferred stock at $0.00001 - 10 million shares authorized, 1 million shares issued and outstanding, respectively; aggregate liquidation preference of ten dollars, respectively | — | — | ||||||||||||||||
Common stock at $0.01 par value - 300 million authorized, 91.1 million and 90.8 million shares issued, respectively | 1 | 1 | ||||||||||||||||
Commitments and contingencies (Note 19) | Commitments and contingencies (Note 19) | 0 | 0 | |||||||||||||||
Preferred stock at $0.00001 - 10 million shares authorized, zero and 1.0 million shares issued, zero and 1.0 million shares outstanding, respectively; aggregate liquidation preference of zero and 10 dollars, respectively | Preferred stock at $0.00001 - 10 million shares authorized, zero and 1.0 million shares issued, zero and 1.0 million shares outstanding, respectively; aggregate liquidation preference of zero and 10 dollars, respectively | — | — | |||||||||||||||
Common stock at $0.01 par value - 300 million shares authorized, 93.2 million and 92.0 million shares issued, respectively | Common stock at $0.01 par value - 300 million shares authorized, 93.2 million and 92.0 million shares issued, respectively | 1 | 1 | |||||||||||||||
Additional paid-in-capital | 1,109 | 1,093 | Additional paid-in-capital | 1,116 | 1,126 | |||||||||||||
Retained earnings | 1,122 | 848 | Retained earnings | 2,879 | 1,434 | |||||||||||||
Treasury shares at cost - 19.4 million and 2.6 million shares, respectively | Treasury shares at cost - 19.4 million and 2.6 million shares, respectively | (630) | (58) | |||||||||||||||
Total Mr. Cooper stockholders’ equity | 2,232 | 1,942 | Total Mr. Cooper stockholders’ equity | 3,366 | 2,503 | |||||||||||||
Non-controlling interests | (1 | ) | 3 | Non-controlling interests | 1 | 1 | ||||||||||||
Total stockholders’ equity | 2,231 | 1,945 | Total stockholders’ equity | 3,367 | 2,504 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 18,305 | $ | 16,973 | Total liabilities and stockholders’ equity | $ | 14,204 | $ | 24,165 |
Successor | Predecessor | Year Ended December 31, | |||||||||||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Year Ended December 31, 2017 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Revenues: | Revenues: | ||||||||||||||||||||||||||||||||
Service related, net | $ | 909 | $ | 418 | $ | 901 | $ | 1,043 | Service related, net | $ | 1,067 | $ | 379 | $ | 829 | ||||||||||||||||||
Net gain on mortgage loans held for sale | 1,098 | 176 | 295 | 607 | Net gain on mortgage loans held for sale | 2,251 | 2,310 | 1,098 | |||||||||||||||||||||||||
Total revenues | 2,007 | 594 | 1,196 | 1,650 | Total revenues | 3,318 | 2,689 | 1,927 | |||||||||||||||||||||||||
Expenses: | Expenses: | ||||||||||||||||||||||||||||||||
Salaries, wages and benefits | 957 | 337 | 426 | 742 | Salaries, wages and benefits | 1,036 | 1,027 | 893 | |||||||||||||||||||||||||
General and administrative | 894 | 370 | 519 | 733 | General and administrative | 626 | 755 | 821 | |||||||||||||||||||||||||
Total expenses | 1,851 | 707 | 945 | 1,475 | Total expenses | 1,662 | 1,782 | 1,714 | |||||||||||||||||||||||||
Other income (expenses), net: | |||||||||||||||||||||||||||||||||
Interest income | 605 | 256 | 333 | 597 | Interest income | 231 | 158 | 291 | |||||||||||||||||||||||||
Interest expense | (779 | ) | (293 | ) | (388 | ) | (731 | ) | Interest expense | (478) | (528) | (543) | |||||||||||||||||||||
Other income, net | 15 | 13 | 6 | 3 | |||||||||||||||||||||||||||||
Other income (expense), net | Other income (expense), net | 528 | (135) | 15 | |||||||||||||||||||||||||||||
Total other income (expenses), net | (159 | ) | (24 | ) | (49 | ) | (131 | ) | Total other income (expenses), net | 281 | (505) | (237) | |||||||||||||||||||||
(Loss) income before income tax (benefit) expense | (3 | ) | (137 | ) | 202 | 44 | |||||||||||||||||||||||||||
Less: Income tax (benefit) expense | (273 | ) | (1,021 | ) | 48 | 13 | |||||||||||||||||||||||||||
Income (loss) from continuing operations before income tax expense (benefit) | Income (loss) from continuing operations before income tax expense (benefit) | 1,937 | 402 | (24) | |||||||||||||||||||||||||||||
Less: Income tax expense (benefit) | Less: Income tax expense (benefit) | 471 | 93 | (278) | |||||||||||||||||||||||||||||
Net income from continuing operations | Net income from continuing operations | 1,466 | 309 | 254 | |||||||||||||||||||||||||||||
Net (loss) income from discontinued operations | Net (loss) income from discontinued operations | (12) | (2) | 16 | |||||||||||||||||||||||||||||
Net income | 270 | 884 | 154 | 31 | Net income | 1,454 | 307 | 270 | |||||||||||||||||||||||||
Less: Net (loss) income attributable to non-controlling interests | (4 | ) | — | — | 1 | ||||||||||||||||||||||||||||
Net income attributable to Successor/Predecessor | 274 | 884 | 154 | 30 | |||||||||||||||||||||||||||||
Less: Net income (loss) attributable to non-controlling interests | Less: Net income (loss) attributable to non-controlling interests | — | 2 | (4) | |||||||||||||||||||||||||||||
Net income attributable to Mr. Cooper | Net income attributable to Mr. Cooper | 1,454 | 305 | 274 | |||||||||||||||||||||||||||||
Less: Undistributed earnings attributable to participating stockholders | 2 | 8 | — | — | Less: Undistributed earnings attributable to participating stockholders | 8 | 3 | 2 | |||||||||||||||||||||||||
Less: Premium on retirement of preferred stock | Less: Premium on retirement of preferred stock | 28 | — | — | |||||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 272 | $ | 876 | $ | 154 | $ | 30 | Net income attributable to common stockholders | $ | 1,418 | $ | 302 | $ | 272 | ||||||||||||||||||
Net income per common share attributable to Successor/Predecessor common stockholders: | |||||||||||||||||||||||||||||||||
Earnings from continuing operations per common share attributable to Mr. Cooper: | Earnings from continuing operations per common share attributable to Mr. Cooper: | ||||||||||||||||||||||||||||||||
Basic | $ | 2.99 | $ | 9.65 | $ | 1.57 | $ | 0.31 | Basic | $ | 17.39 | $ | 3.33 | $ | 2.81 | ||||||||||||||||||
Diluted | $ | 2.95 | $ | 9.54 | $ | 1.55 | $ | 0.30 | Diluted | $ | 16.67 | $ | 3.22 | $ | 2.78 | ||||||||||||||||||
Earnings from discontinuing operations per common share attributable to Mr. Cooper: | Earnings from discontinuing operations per common share attributable to Mr. Cooper: | ||||||||||||||||||||||||||||||||
Basic | Basic | $ | (0.15) | $ | (0.02) | $ | 0.18 | ||||||||||||||||||||||||||
Diluted | Diluted | $ | (0.14) | $ | (0.02) | $ | 0.17 | ||||||||||||||||||||||||||
Earnings per common share attributable to Mr. Cooper: | Earnings per common share attributable to Mr. Cooper: | ||||||||||||||||||||||||||||||||
Basic | Basic | $ | 17.24 | $ | 3.31 | $ | 2.99 | ||||||||||||||||||||||||||
Diluted | Diluted | $ | 16.53 | $ | 3.20 | $ | 2.95 |
Preferred Stock | Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares (in thousands) | Amount | Shares (in thousands) | Amount | Additional Paid-in Capital | Retained Earnings | Treasury Shares Amount | Total Mr. Cooper Stockholders’ Equity | Non-controlling Interests | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019 | 1,000 | $ | — | 90,821 | $ | 1 | $ | 1,093 | $ | 848 | $ | — | $ | 1,942 | $ | 3 | $ | 1,945 | |||||||||||||||||||||||||||||||||||||||||
Shares issued / (surrendered) under incentive compensation plan | — | — | 297 | — | (2) | — | — | (2) | — | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 18 | — | — | 18 | — | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 274 | — | 274 | (4) | 270 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 1,000 | — | 91,118 | 1 | 1,109 | 1,122 | — | 2,232 | (1) | 2,231 | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued / (surrendered) under incentive compensation plan | — | — | 923 | — | (5) | — | — | (5) | — | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 22 | — | — | 22 | — | 22 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect adjustments pursuant to the adoption of CECL - related accounting guidance | — | — | — | — | — | 7 | — | 7 | — | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | (2,584) | — | — | — | (58) | (58) | — | (58) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 305 | — | 305 | 2 | 307 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 1,000 | — | 89,457 | 1 | 1,126 | 1,434 | (58) | 2,503 | 1 | 2,504 | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued / (surrendered) under incentive compensation plan | — | — | 1,244 | — | (20) | — | — | (20) | — | (20) | |||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 29 | — | — | 29 | — | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | (16,924) | — | — | — | (572) | (572) | — | (572) | |||||||||||||||||||||||||||||||||||||||||||||||||
Retirement of preferred stock | (1,000) | — | — | — | (19) | (9) | — | (28) | — | (28) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 1,454 | — | 1,454 | — | 1,454 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | — | $ | — | 73,777 | $ | 1 | $ | 1,116 | $ | 2,879 | $ | (630) | $ | 3,366 | $ | 1 | $ | 3,367 |
Preferred Stock | Common Stock | ||||||||||||||||||||||||||||||||||||
Shares (in thousands) | Amount | Shares (in thousands) | Amount | Additional Paid-in Capital | Retained Earnings | Treasury Shares Amount | Total Nationstar Stockholders’ Equity and Mr. Cooper Stockholders’ Equity, respectively | Non-controlling Interests | Total Equity | ||||||||||||||||||||||||||||
Predecessor | |||||||||||||||||||||||||||||||||||||
Balance at January 1, 2017 | — | $ | — | 97,497 | $ | 1 | $ | 1,122 | $ | 701 | $ | (147 | ) | $ | 1,677 | $ | 6 | $ | 1,683 | ||||||||||||||||||
Shares issued / (surrendered) under incentive compensation plan | — | — | 231 | — | (3 | ) | — | (1 | ) | (4 | ) | — | (4 | ) | |||||||||||||||||||||||
Share-based compensation | — | — | — | — | 17 | — | — | 17 | — | 17 | |||||||||||||||||||||||||||
Dividends to non-controlling interests | — | — | — | — | (5 | ) | — | — | (5 | ) | — | (5 | ) | ||||||||||||||||||||||||
Net income | — | — | — | — | — | 30 | — | 30 | 1 | 31 | |||||||||||||||||||||||||||
Balance at December 31, 2017 | — | — | 97,728 | 1 | 1,131 | 731 | (148 | ) | 1,715 | 7 | 1,722 | ||||||||||||||||||||||||||
Shares issued / (surrendered) under incentive compensation plan | — | — | 450 | — | (6 | ) | — | (3 | ) | (9 | ) | — | (9 | ) | |||||||||||||||||||||||
Share-based compensation | — | — | — | — | 17 | — | — | 17 | — | 17 | |||||||||||||||||||||||||||
Dividends to non-controlling interests | — | — | — | — | 5 | — | — | 5 | (6 | ) | (1 | ) | |||||||||||||||||||||||||
Net income | — | — | — | — | — | 154 | — | 154 | — | 154 | |||||||||||||||||||||||||||
Balance at July 31, 2018 | — | $ | — | 98,178 | $ | 1 | $ | 1,147 | $ | 885 | $ | (151 | ) | $ | 1,882 | $ | 1 | $ | 1,883 | ||||||||||||||||||
Successor | |||||||||||||||||||||||||||||||||||||
Balance at August 1, 2018 | 1,000 | $ | — | 90,806 | $ | 1 | $ | 1,091 | $ | (36 | ) | $ | — | $ | 1,056 | $ | — | $ | 1,056 | ||||||||||||||||||
Non-controlling interests acquired | — | — | — | — | — | — | — | — | 3 | 3 | |||||||||||||||||||||||||||
Shares issued under incentive compensation plan | — | — | 15 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 2 | — | — | 2 | — | 2 | |||||||||||||||||||||||||||
Net income | — | — | — | — | — | 884 | — | 884 | — | 884 | |||||||||||||||||||||||||||
Balance at December 31, 2018 | 1,000 | — | 90,821 | 1 | 1,093 | 848 | — | 1,942 | 3 | 1,945 | |||||||||||||||||||||||||||
Shares issued / (surrendered) under incentive compensation plan | — | — | 297 | — | (2 | ) | — | — | (2 | ) | — | (2 | ) | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 18 | — | — | 18 | — | 18 | |||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | 274 | — | 274 | (4 | ) | 270 | ||||||||||||||||||||||||||
Balance at December 31, 2019 | 1,000 | $ | — | 91,118 | $ | 1 | $ | 1,109 | $ | 1,122 | $ | — | $ | 2,232 | $ | (1 | ) | $ | 2,231 |
Successor | Predecessor | |||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Year Ended December 31, 2017 | |||||||||||||
Operating Activities | ||||||||||||||||
Net income | $ | 270 | $ | 884 | $ | 154 | $ | 31 | ||||||||
Adjustments to reconcile net income to net cash attributable to operating activities: | ||||||||||||||||
Deferred tax (benefit) expense | (366 | ) | (1,021 | ) | 63 | (46 | ) | |||||||||
Net gain on mortgage loans held for sale | (1,098 | ) | (176 | ) | (295 | ) | (607 | ) | ||||||||
Interest income on reverse mortgage loans | (307 | ) | (206 | ) | (274 | ) | (490 | ) | ||||||||
Loss (gain) on sale of assets | 2 | — | (9 | ) | (8 | ) | ||||||||||
MSL related increased obligation | — | — | 59 | — | ||||||||||||
Provision for servicing reserves | 66 | 38 | 70 | 148 | ||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 1,005 | 225 | (177 | ) | 430 | |||||||||||
Fair value changes in excess spread financing | (169 | ) | 5 | 81 | 12 | |||||||||||
Fair value changes in mortgage servicing rights financing liability | 5 | 6 | 16 | (17 | ) | |||||||||||
Fair value changes in mortgage loans held for investment | (3 | ) | (2 | ) | — | — | ||||||||||
Amortization of premiums, net of discount accretion | (32 | ) | 9 | 8 | 82 | |||||||||||
Depreciation and amortization for property and equipment and intangible assets | 91 | 39 | 33 | 59 | ||||||||||||
Share-based compensation | 18 | 2 | 17 | 17 | ||||||||||||
Other loss | 11 | — | 3 | 6 | ||||||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | (2,895 | ) | (527 | ) | (544 | ) | (1,249 | ) | ||||||||
Mortgage loans originated and purchased for sale, net of fees | (40,257 | ) | (8,888 | ) | (12,328 | ) | (19,159 | ) | ||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 41,948 | 9,405 | 13,392 | 20,776 | ||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Advances and other receivables | 228 | 43 | 377 | (30 | ) | |||||||||||
Reverse mortgage interests | 2,192 | 1,544 | 1,601 | 1,672 | ||||||||||||
Other assets | 78 | (61 | ) | (41 | ) | (75 | ) | |||||||||
Payables and other liabilities | (85 | ) | (68 | ) | 88 | (193 | ) | |||||||||
Net cash attributable to operating activities | 702 | 1,251 | 2,294 | 1,359 | ||||||||||||
Investing Activities | ||||||||||||||||
Acquisitions, net of cash acquired | (85 | ) | (33 | ) | — | — | ||||||||||
Property and equipment additions, net of disposals | (49 | ) | (15 | ) | (40 | ) | (42 | ) | ||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (547 | ) | (307 | ) | (134 | ) | (63 | ) | ||||||||
Net payment related to acquisition of HECM related receivables | — | — | (1 | ) | — | |||||||||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM-related receivables | — | — | — | 16 | ||||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 343 | 105 | — | 71 | ||||||||||||
Proceeds on sale of assets | — | — | 13 | 16 | ||||||||||||
Purchase of cost-method investments | — | — | — | (4 | ) | |||||||||||
Net cash attributable to investing activities | (338 | ) | (250 | ) | (162 | ) | (6 | ) |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Operating Activities | |||||||||||||||||
Net income | $ | 1,454 | $ | 307 | $ | 270 | |||||||||||
Less: Net (loss) income from discontinued operations | (12) | (2) | 16 | ||||||||||||||
Net income from continuing operations | 1,466 | 309 | 254 | ||||||||||||||
Adjustments to reconcile net income to net cash attributable to operating activities: | |||||||||||||||||
Deferred tax expense (benefit) | 351 | 4 | (371) | ||||||||||||||
Net gain on mortgage loans held for sale | (2,251) | (2,310) | (1,098) | ||||||||||||||
Provision for servicing and non-servicing reserves | 34 | 22 | 63 | ||||||||||||||
Fair value changes and amortization of mortgage servicing rights | 506 | 1,667 | 1,117 | ||||||||||||||
Fair value changes in MSR related liabilities | (33) | (198) | (164) | ||||||||||||||
Depreciation and amortization for property and equipment and intangible assets | 57 | 73 | 90 | ||||||||||||||
Gain on sale of business | (528) | — | — | ||||||||||||||
Loss on redemption of unsecured senior notes | — | 138 | — | ||||||||||||||
Other operating activities | 60 | 60 | 37 | ||||||||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | (10,156) | (4,822) | (2,895) | ||||||||||||||
Mortgage loans originated and purchased for sale, net of fees | (84,684) | (63,233) | (40,257) | ||||||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale | 97,515 | 67,894 | 41,948 | ||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||
Advances and other receivables | (380) | (48) | 161 | ||||||||||||||
Other assets | 41 | 18 | 375 | ||||||||||||||
Payables and other liabilities | 9 | (190) | (330) | ||||||||||||||
Net cash attributable to operating activities - continuing operations | 2,007 | (616) | (1,070) | ||||||||||||||
Net cash attributable to operating activities - discontinued operations | 625 | 947 | 1,772 | ||||||||||||||
Net cash attributable to operating activities | 2,632 | 331 | 702 | ||||||||||||||
Investing Activities | |||||||||||||||||
Sale of business, net of cash divested | 465 | — | — | ||||||||||||||
Acquisitions, net of cash acquired | — | — | (85) | ||||||||||||||
Property and equipment additions, net of disposals | (41) | (57) | (53) | ||||||||||||||
Purchase of forward mortgage servicing rights | (922) | (130) | (547) | ||||||||||||||
Proceeds on sale of forward mortgage servicing rights | 61 | 53 | 343 | ||||||||||||||
Other investing activities | 2 | — | — | ||||||||||||||
Net cash attributable to investing activities - continuing operations | (435) | (134) | (342) | ||||||||||||||
Net cash attributable to investing activities - discontinued operations | 1,627 | — | 4 | ||||||||||||||
Net cash attributable to investing activities | 1,192 | (134) | (338) | ||||||||||||||
Financing Activities | |||||||||||||||||
(Decrease) increase in advance and warehouse facilities | (1,272) | 1,861 | 1,651 | ||||||||||||||
Proceeds from issuance of excess spread financing | — | 24 | 542 | ||||||||||||||
Settlement and repayment of excess spread financing | (156) | (207) | (246) | ||||||||||||||
Issuance of unsecured senior debt | 600 | 2,100 | — | ||||||||||||||
Redemption and repayment of unsecured senior notes and notes payable | — | (2,508) | (394) | ||||||||||||||
Repurchase of common stock | (572) | (58) | — | ||||||||||||||
Retirement of preferred stock | (28) | — | — | ||||||||||||||
Other financing activities | (42) | (55) | (37) |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Net cash attributable to financing activities - continuing operations | (1,470) | 1,157 | 1,516 | ||||||||||||||
Net cash attributable to financing activities - discontinued operations | (2,226) | (1,053) | (1,829) | ||||||||||||||
Net cash attributable to financing activities | (3,696) | 104 | (313) | ||||||||||||||
Net increase in cash, cash equivalents and restricted cash | 128 | 301 | 51 | ||||||||||||||
Cash, cash equivalents and restricted cash - beginning of period | 913 | 612 | 561 | ||||||||||||||
Cash, cash equivalents and restricted cash - end of period(1) | $ | 1,041 | $ | 913 | $ | 612 | |||||||||||
Supplemental Disclosures of Cash Activities | |||||||||||||||||
Cash paid for interest expense | $ | 118 | $ | 206 | $ | 174 | |||||||||||
Net cash paid for income taxes | 159 | 76 | 42 | ||||||||||||||
Supplemental Disclosures of Non-cash Investing Activities | |||||||||||||||||
Equity consideration received from sale of business | $ | 58 | $ | — | $ | — | |||||||||||
Forward mortgage servicing rights sales price holdback | 2 | — | 49 | ||||||||||||||
Purchase of forward mortgage servicing rights | 6 | 5 | 28 |
December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||||||||
Cash and cash equivalents | $ | 895 | $ | 695 | $ | 329 | |||||||||||
Restricted cash | 146 | 135 | 169 | ||||||||||||||
Restricted cash within assets of discontinued operations | — | 83 | 114 | ||||||||||||||
Total cash, cash equivalents and restricted cash | $ | 1,041 | $ | 913 | $ | 612 |
Successor | Predecessor | |||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Year Ended December 31, 2017 | |||||||||||||
Financing Activities | ||||||||||||||||
Increase (decrease) in warehouse facilities | 1,704 | (351 | ) | (585 | ) | 863 | ||||||||||
(Decrease) increase in advance facilities | (186 | ) | 45 | (305 | ) | (241 | ) | |||||||||
Repayment of notes payable | (294 | ) | — | — | — | |||||||||||
Proceeds from issuance of HECM securitizations | 751 | 343 | 759 | 707 | ||||||||||||
Proceeds from sale of HECM securitizations | 20 | — | — | — | ||||||||||||
Repayment of HECM securitizations | (870 | ) | (374 | ) | (448 | ) | (572 | ) | ||||||||
Proceeds from issuance of participating interest financing | 277 | 112 | 208 | 575 | ||||||||||||
Repayment of participating interest financing | (1,868 | ) | (943 | ) | (1,599 | ) | (2,597 | ) | ||||||||
Proceeds from issuance of excess spread financing | 542 | 255 | 70 | — | ||||||||||||
Repayment of excess spread financing | (27 | ) | (38 | ) | (3 | ) | (23 | ) | ||||||||
Settlement of excess spread financing | (219 | ) | (77 | ) | (105 | ) | (207 | ) | ||||||||
Repayment of nonrecourse debt - legacy assets | (29 | ) | (6 | ) | (7 | ) | (15 | ) | ||||||||
Redemption and repayment of unsecured senior notes | (100 | ) | (1,030 | ) | (62 | ) | (123 | ) | ||||||||
Repayment of finance lease liability | (4 | ) | — | — | — | |||||||||||
Proceeds from non-controlling interests | — | 3 | — | — | ||||||||||||
Surrender of shares relating to stock vesting | (2 | ) | — | (9 | ) | (4 | ) | |||||||||
Debt financing costs | (8 | ) | (2 | ) | (24 | ) | (13 | ) | ||||||||
Dividends to non-controlling interests | — | — | (1 | ) | (5 | ) | ||||||||||
Net cash attributable to financing activities | (313 | ) | (2,063 | ) | (2,111 | ) | (1,655 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | 51 | (1,062 | ) | 21 | (302 | ) | ||||||||||
Cash and cash equivalents - beginning of period | 561 | 1,623 | 575 | 877 | ||||||||||||
Cash and cash equivalents - end of period(1) | $ | 612 | $ | 561 | $ | 596 | $ | 575 | ||||||||
Supplemental Disclosures of Cash Activities | ||||||||||||||||
Cash paid for interest expense | $ | 174 | $ | 283 | $ | 417 | $ | 765 | ||||||||
Net cash paid (refunded) for income taxes | $ | 42 | $ | (37 | ) | $ | 36 | $ | 102 | |||||||
Supplemental Disclosures of Non-cash Investing Activities | ||||||||||||||||
Forward mortgage servicing rights sales price holdback | $ | 49 | $ | — | $ | — | $ | — | ||||||||
Purchase of forward mortgage servicing rights | $ | 28 | $ | — | $ | — | $ | — |
Successor | Predecessor | |||||||||||||||
December 31, 2019 | December 31, 2018 | July 31, 2018 | December 31, 2017 | |||||||||||||
Cash and cash equivalents | $ | 329 | $ | 242 | $ | 166 | $ | 215 | ||||||||
Restricted cash | 283 | 319 | 430 | 360 | ||||||||||||
Total cash, cash equivalents and restricted cash | $ | 612 | $ | 561 | $ | 596 | $ | 575 |
Final Estimated Fair Value of Net Assets Acquired: | |||
Cash and cash equivalents | $ | 37 | |
Restricted cash | 2 | ||
Mortgage servicing rights | 271 | ||
Advances and other receivables | 84 | ||
Mortgage loans held for sale | 536 | ||
Mortgage loans held for investment | 1 | ||
Property and equipment | 8 | ||
Other assets | 483 | ||
Fair value of assets acquired | 1,422 | ||
Notes payable(1) | 294 | ||
Advance facilities | 13 | ||
Warehouse facilities | 393 | ||
Payables and other liabilities | 530 | ||
Other nonrecourse debt | 129 | ||
Fair value of liabilities assumed | 1,359 | ||
Total fair value of net tangible assets acquired | 63 | ||
Intangible assets: | |||
Customer relationships(2) | 13 | ||
Goodwill | 40 | ||
Final purchase price | $ | 116 |
Year Ended December 31, 2019 | |||
(unaudited) | |||
Pro forma total revenues | $ | 2,026 | |
Pro forma net income | $ | 273 |
Purchase Price | |||
Converted WMIH common shares in millions (prior to the 1-for-12 reverse stock split) | 394 | ||
Price per share, based on price of $1.398 for WMIH stock on July 31, 2018 | $ | 1.398 | |
Purchase price from common stock issued | 551 | ||
Purchase price from cash payment | 1,226 | ||
Total purchase price | $ | 1,777 |
Final Estimated Fair Value of Net Assets Acquired | |||
Cash and cash equivalents | $ | 166 | |
Restricted cash | 430 | ||
Mortgage servicing rights | 3,422 | ||
Advances and other receivables | 1,262 | ||
Reverse mortgage interests | 9,189 | ||
Mortgage loans held for sale | 1,514 | ||
Mortgage loans held for investment | 125 | ||
Property and equipment | 96 | ||
Other assets | 610 | ||
Fair value of assets acquired | 16,814 | ||
Unsecured senior notes | 1,830 | ||
Advance facilities | 551 | ||
Warehouse facilities | 2,701 | ||
Payables and accrued liabilities | 1,352 | ||
MSR related liabilities—nonrecourse | 1,065 | ||
Mortgage servicing liabilities | 123 | ||
Other nonrecourse debt | 7,583 | ||
Fair value of liabilities assumed | 15,205 | ||
Total fair value of net tangible assets acquired | 1,609 | ||
Intangible assets(1) | 103 | ||
Goodwill | 65 | ||
Purchase price | $ | 1,777 |
Useful Life (Years) | Fair Value | ||||
Customer relationships (i) | 6 | $ | 61 | ||
Tradename (ii) | 5 | 8 | |||
Technology (ii) | 3-5 | 11 | |||
Internally developed software(iii) | 2 | 23 | |||
Total | $ | 103 |
Year Ended December 31, 2018 | |||
(unaudited) | |||
Pro forma total revenues | $ | 1,790 | |
Pro forma net income | $ | 16 |
December 31, 2020 | |||||
Carrying amounts of assets of discontinued operations | |||||
Restricted cash | $ | 83 | |||
Reverse mortgage interests, net | 5,253 | ||||
Other | 11 | ||||
Total assets of discontinued operations | $ | 5,347 | |||
Carrying amounts of liabilities of discontinued operations | |||||
Advances and warehouse facilities, net | $ | 505 | |||
Payables and other liabilities | 233 | ||||
Mortgage servicing liabilities | 41 | ||||
Other nonrecourse debt, net | 4,424 | ||||
Total liabilities of discontinued operations | $ | 5,203 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Revenue - service related, net | $ | 26 | $ | 44 | $ | 80 | |||||||||||
Salaries, wages and benefits expense | (30) | (41) | (64) | ||||||||||||||
General and administrative expense | 21 | (8) | (73) | ||||||||||||||
Interest income | 137 | 176 | 314 | ||||||||||||||
Interest expense | (105) | (174) | (236) | ||||||||||||||
Loss on classification as discontinued operations | (65) | — | — | ||||||||||||||
(Loss) income from discontinued operations before income tax (benefit) expense | (16) | (3) | 21 | ||||||||||||||
Less: Income tax (benefit) expense | (4) | (1) | 5 | ||||||||||||||
Net (loss) income from discontinued operations before income tax (benefit) expense | $ | (12) | $ | (2) | $ | 16 |
MSRs and Related Liabilities | December 31, 2021 | December 31, 2020 | |||||||||
Forward MSRs at fair value | $ | 4,223 | $ | 2,703 | |||||||
Excess spread financing at fair value | $ | 768 | $ | 934 | |||||||
Mortgage servicing rights financing at fair value | 10 | 33 | |||||||||
MSR related liabilities - nonrecourse at fair value | $ | 778 | $ | 967 |
Successor | |||||||
MSRs and Related Liabilities | December 31, 2019 | December 31, 2018 | |||||
Forward MSRs - fair value | $ | 3,496 | $ | 3,665 | |||
Reverse MSRs - amortized cost | 6 | 11 | |||||
Mortgage servicing rights | $ | 3,502 | $ | 3,676 | |||
Mortgage servicing liabilities - amortized cost | $ | 61 | $ | 71 | |||
Excess spread financing - fair value | $ | 1,311 | $ | 1,184 | |||
Mortgage servicing rights financing - fair value | 37 | 32 | |||||
MSR related liabilities - nonrecourse at fair value | $ | 1,348 | $ | 1,216 |
Year Ended December 31, | |||||||||||
Forward MSRs - Fair Value | 2021 | 2020 | |||||||||
Fair value - beginning of year | $ | 2,703 | $ | 3,496 | |||||||
Additions: | |||||||||||
Servicing retained from mortgage loans sold | 1,077 | 687 | |||||||||
Purchases of servicing rights | 948 | 124 | |||||||||
Dispositions: | |||||||||||
Sales of servicing assets | (55) | (9) | |||||||||
Changes in fair value: | |||||||||||
Changes in valuation inputs or assumptions used in the valuation model (MSR MTM) | 502 | (819) | |||||||||
Changes in valuation due to amortization | (1,008) | (848) | |||||||||
Other changes | 56 | 72 | |||||||||
Fair value - end of year | $ | 4,223 | $ | 2,703 |
Successor | Predecessor | |||||||||||
Forward MSRs - Fair Value | Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | |||||||||
Fair value - beginning of period | $ | 3,665 | $ | 3,413 | $ | 2,937 | ||||||
Additions: | ||||||||||||
Servicing retained from mortgage loans sold | 434 | 120 | 162 | |||||||||
Purchases of servicing rights(1) | 858 | 479 | 144 | |||||||||
Dispositions: | ||||||||||||
Sales of servicing assets(2) | (408 | ) | (111 | ) | 4 | |||||||
Changes in fair value: | ||||||||||||
Changes in valuation inputs or assumptions used in the valuation model | (589 | ) | (123 | ) | 330 | |||||||
Other changes in fair value | (464 | ) | (113 | ) | (164 | ) | ||||||
Fair value - end of period | $ | 3,496 | $ | 3,665 | $ | 3,413 |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
Forward MSRs - UPB and Fair Value Breakdown | UPB | Fair Value | UPB | Fair Value | |||||||||||||||||||
Investor Pools | |||||||||||||||||||||||
Agency | $ | 302,851 | $ | 3,859 | $ | 227,136 | $ | 2,305 | |||||||||||||||
Non-agency | 36,357 | 364 | 44,053 | 398 | |||||||||||||||||||
Total | $ | 339,208 | $ | 4,223 | $ | 271,189 | $ | 2,703 |
Successor | |||||||||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||
Forward MSRs - Sensitivity Pools | UPB | Fair Value | UPB | Fair Value | |||||||||||
Credit sensitive | $ | 147,895 | $ | 1,613 | $ | 135,752 | $ | 1,495 | |||||||
Interest sensitive | 148,887 | 1,883 | 159,729 | 2,170 | |||||||||||
Total | $ | 296,782 | $ | 3,496 | $ | 295,481 | $ | 3,665 |
Successor | |||||
December 31, 2019 | December 31, 2018 | ||||
Total MSR Portfolio | |||||
Discount rate | 9.7 | % | 10.2 | % | |
Prepayment speeds | 13.1 | % | 10.8 | % | |
Average life | 5.8 years | 6.7 years | |||
Credit Sensitive | |||||
Discount rate | 10.4 | % | 11.3 | % | |
Prepayment speeds | 12.7 | % | 11.8 | % | |
Average life | 6.0 years | 6.4 years | |||
Interest Sensitive | |||||
Discount rate | 9.1 | % | 9.3 | % | |
Prepayment speeds | 13.5 | % | 10.0 | % | |
Average life | 5.7 years | 7.0 years |
Discount Rate | Total Prepayment Speeds | Cost to Service per Loan | |||||||||||||||||||||||||||||||||
Forward MSRs - Hypothetical Sensitivities | 100 bps Adverse Change | 200 bps Adverse Change | 10% Adverse Change | 20% Adverse Change | 10% Adverse Change | 20% Adverse Change | |||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Mortgage servicing rights | $ | (141) | $ | (272) | $ | (148) | $ | (286) | $ | (46) | $ | (93) | |||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Mortgage servicing rights | $ | (100) | $ | (192) | $ | (181) | $ | (347) | $ | (45) | $ | (89) |
Successor | |||||||||||||||
Discount Rate | Total Prepayment Speeds | ||||||||||||||
Forward MSRs - Hypothetical Sensitivities | 100 bps Adverse Change | 200 bps Adverse Change | 10% Adverse Change | 20% Adverse Change | |||||||||||
December 31, 2019 | |||||||||||||||
Mortgage servicing rights | $ | (127 | ) | $ | (245 | ) | $ | (165 | ) | $ | (317 | ) | |||
December 31, 2018 | |||||||||||||||
Mortgage servicing rights | $ | (137 | ) | $ | (265 | ) | $ | (129 | ) | $ | (250 | ) |
Successor | |||||
Excess Spread Financing Assumptions | December 31, 2019 | December 31, 2018 | |||
Discount rate | 11.6 | % | 10.4 | % | |
Prepayment speeds | 12.6 | % | 11.0 | % | |
Recapture rate | 20.1 | % | 18.6 | % | |
Average life | 5.8 years | 6.5 years |
Discount Rate | Prepayment Speeds | ||||||||||||||||||||||
Excess Spread Financing - Hypothetical Sensitivities | 100 bps Adverse Change | 200 bps Adverse Change | 10% Adverse Change | 20% Adverse Change | |||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Excess spread financing | $ | 26 | $ | 54 | $ | 28 | $ | 58 | |||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Excess spread financing | $ | 30 | $ | 62 | $ | 41 | $ | 84 |
Successor | |||||||||||||||
Discount Rate | Prepayment Speeds | ||||||||||||||
Excess Spread Financing - Hypothetical Sensitivities | 100 bps Adverse Change | 200 bps Adverse Change | 10% Adverse Change | 20% Adverse Change | |||||||||||
December 31, 2019 | |||||||||||||||
Excess spread financing | $ | 46 | $ | 95 | $ | 46 | $ | 96 | |||||||
December 31, 2018 | |||||||||||||||
Excess spread financing | $ | 47 | $ | 99 | $ | 38 | $ | 81 |
Successor | |||||
Mortgage Servicing Rights Financing Assumptions | December 31, 2019 | December 31, 2018 | |||
Advance financing rates | 3.5 | % | 4.2 | % | |
Annual advance recovery rates | 18.8 | % | 19.0 | % |
Year Ended December 31, | |||||||||||
Total Revenues - Servicing | 2021 | 2020 | |||||||||
Contractually specified servicing fees(1) | $ | 1,122 | $ | 1,141 | |||||||
Other service-related income(1) | 640 | 290 | |||||||||
Incentive and modification income(1) | 51 | 39 | |||||||||
Late fees(1) | 71 | 83 | |||||||||
Mark-to-market adjustments(2) | 421 | (609) | |||||||||
Amortization, net of accretion(3) | (753) | (510) | |||||||||
Other(4) | (279) | (371) | |||||||||
Total revenues - Servicing | $ | 1,273 | $ | 63 |
Successor | Predecessor | |||||||||||||||
Total Revenues - Servicing | Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Year Ended December 31, 2017 | ||||||||||||
Contractually specified servicing fees(1) | $ | 1,194 | $ | 421 | $ | 574 | $ | 1,003 | ||||||||
Other service-related income(1)(2) | 182 | 44 | 66 | 168 | ||||||||||||
Incentive and modification income(1) | 40 | 17 | 37 | 80 | ||||||||||||
Late fees(1) | 110 | 34 | 53 | 89 | ||||||||||||
Reverse servicing fees | 31 | 16 | 37 | 58 | ||||||||||||
Mark-to-market adjustments(3) | (505 | ) | (164 | ) | 196 | (160 | ) | |||||||||
Counterparty revenue share(4) | (284 | ) | (68 | ) | (111 | ) | (230 | ) | ||||||||
Amortization, net of accretion(5) | (236 | ) | (64 | ) | (112 | ) | (242 | ) | ||||||||
Total revenues - Servicing | $ | 532 | $ | 236 | $ | 740 | $ | 766 |
Advances and Other Receivables, Net | December 31, 2021 | December 31, 2020 | |||||||||
Servicing advances, net of $19 and $72 purchase discount, respectively | $ | 1,263 | $ | 975 | |||||||
Receivables from agencies, investors and prior servicers, net of $12 and $21 purchase discount, respectively | 132 | 173 | |||||||||
Reserves | (167) | (208) | |||||||||
Total advances and other receivables, net | $ | 1,228 | $ | 940 |
Successor | |||||||
December 31, 2019 | December 31, 2018 | ||||||
Servicing advances, net of $131 and $205 discount, respectively | $ | 970 | $ | 1,000 | |||
Receivables from agencies, investors and prior servicers, net of $21 and $48 discount, respectively | 193 | 241 | |||||
Reserves | (175 | ) | (47 | ) | |||
Total advances and other receivables, net | $ | 988 | $ | 1,194 |
Year Ended December 31, | |||||||||||
Reserves for Advances and Other Receivables | 2021 | 2020 | |||||||||
Balance - beginning of year | $ | 208 | $ | 168 | |||||||
Provision and other additions(1) | 75 | 108 | |||||||||
Write-offs | (116) | (68) | |||||||||
Balance - end of year | $ | 167 | $ | 208 |
Successor | Predecessor | |||||||||||
Reserves for Advances and Other Receivables | Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | |||||||||
Balance - beginning of period | $ | 47 | $ | — | $ | 284 | ||||||
Provision and other additions(1) | 160 | 47 | 69 | |||||||||
Write-offs | (32 | ) | — | (56 | ) | |||||||
Balance - end of period | $ | 175 | $ | 47 | $ | 297 |
Successor | |||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | ||||||||||||||
Purchase Discounts | Servicing Advances | Receivables from Agencies, Investors and Prior Servicers | Servicing Advances | Receivables from Agencies, Investors and Prior Servicers | |||||||||||
Balance - beginning of period | $ | 205 | $ | 48 | $ | 246 | $ | 56 | |||||||
Addition from acquisition | 19 | — | — | — | |||||||||||
Utilization of purchase discounts | (93 | ) | (27 | ) | (41 | ) | (8 | ) | |||||||
Balance - end of period | $ | 131 | $ | 21 | $ | 205 | $ | 48 |
Successor | |||||||
December 31, 2019 | December 31, 2018 | ||||||
Participating interests in HECM mortgage-backed securities, including $10 and $58 purchase premium, respectively | $ | 4,292 | $ | 5,664 | |||
Other interests securitized, net of $56 and $100 purchase discount, respectively | 938 | 1,064 | |||||
Unsecuritized interests, net of $68 and $122 purchase discount, respectively | 1,052 | 1,219 | |||||
Reserves | (3 | ) | (13 | ) | |||
Total reverse mortgage interests, net | $ | 6,279 | $ | 7,934 |
Successor | |||||||
December 31, 2019 | December 31, 2018 | ||||||
Repurchased HECM loans (exceed 98% MCA) | $ | 789 | $ | 949 | |||
HECM related receivables(1) | 250 | 300 | |||||
Funded borrower draws not yet securitized | 67 | 76 | |||||
REO-related receivables | 14 | 16 | |||||
Purchase discount | (68 | ) | (122 | ) | |||
Total unsecuritized interests | $ | 1,052 | $ | 1,219 |
Successor | Predecessor | |||||||||||
Reserves for reverse mortgage interests | Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | |||||||||
Balance - beginning of period | $ | 13 | $ | — | $ | 115 | ||||||
Provisions (release), net | (3 | ) | 13 | 32 | ||||||||
Write-offs | (7 | ) | — | (18 | ) | |||||||
Balance - end of period | $ | 3 | $ | 13 | $ | 129 |
Successor | |||||||||||
Year Ended December 31, 2019 | |||||||||||
Purchase premiums and discounts for reverse mortgage interests | Net Premium for Participating Interests in HMBS(1) | Net Discount for Other Interest Securitized(1) | Net Discount for Unsecuritized Interests(1) | ||||||||
Balance - beginning of period | $ | 58 | $ | (100 | ) | $ | (122 | ) | |||
Adjustments(2) | (16 | ) | (2 | ) | (6 | ) | |||||
Utilization of purchase discounts(3) | — | 33 | 63 | ||||||||
(Amortization)/Accretion | (49 | ) | 23 | 4 | |||||||
Transfers(4) | 17 | (10 | ) | (7 | ) | ||||||
Balance - end of period | $ | 10 | $ | (56 | ) | $ | (68 | ) |
Successor | |||||||||||
Five Months Ended December 31, 2018 | |||||||||||
Purchase premiums and discounts for reverse mortgage interests | Net Premium for Participating Interests in HMBS(1) | Net Discount for Other Interest Securitized(1) | Net Discount for Unsecuritized Interests(1) | ||||||||
Balance - beginning of period | $ | 58 | $ | (117 | ) | $ | (173 | ) | |||
Utilization of purchase discounts(3) | — | — | 43 | ||||||||
Accretion/(Amortization) | — | 17 | 8 | ||||||||
Balance - end of period | $ | 58 | $ | (100 | ) | $ | (122 | ) |
Predecessor | |||
Purchase discounts for reverse mortgage interests | Seven Months Ended July 31, 2018 | ||
Balance - beginning of period | $ | (89 | ) |
Additions | (7 | ) | |
Accretion | 14 | ||
Balance - end of period | $ | (82 | ) |
December 31, 2020 | |||||
Carrying amounts of assets of discontinued operations | |||||
Restricted cash | $ | 83 | |||
Reverse mortgage interests, net | 5,253 | ||||
Other | 11 | ||||
Total assets of discontinued operations | $ | 5,347 | |||
Carrying amounts of liabilities of discontinued operations | |||||
Advances and warehouse facilities, net | $ | 505 | |||
Payables and other liabilities | 233 | ||||
Mortgage servicing liabilities | 41 | ||||
Other nonrecourse debt, net | 4,424 | ||||
Total liabilities of discontinued operations | $ | 5,203 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Revenue - service related, net | $ | 26 | $ | 44 | $ | 80 | |||||||||||
Salaries, wages and benefits expense | (30) | (41) | (64) | ||||||||||||||
General and administrative expense | 21 | (8) | (73) | ||||||||||||||
Interest income | 137 | 176 | 314 | ||||||||||||||
Interest expense | (105) | (174) | (236) | ||||||||||||||
Loss on classification as discontinued operations | (65) | — | — | ||||||||||||||
(Loss) income from discontinued operations before income tax (benefit) expense | (16) | (3) | 21 | ||||||||||||||
Less: Income tax (benefit) expense | (4) | (1) | 5 | ||||||||||||||
Net (loss) income from discontinued operations before income tax (benefit) expense | $ | (12) | $ | (2) | $ | 16 |
MSRs and Related Liabilities | December 31, 2021 | December 31, 2020 | |||||||||
Forward MSRs at fair value | $ | 4,223 | $ | 2,703 | |||||||
Excess spread financing at fair value | $ | 768 | $ | 934 | |||||||
Mortgage servicing rights financing at fair value | 10 | 33 | |||||||||
MSR related liabilities - nonrecourse at fair value | $ | 778 | $ | 967 |
Year Ended December 31, | |||||||||||
Forward MSRs - Fair Value | 2021 | 2020 | |||||||||
Fair value - beginning of year | $ | 2,703 | $ | 3,496 | |||||||
Additions: | |||||||||||
Servicing retained from mortgage loans sold | 1,077 | 687 | |||||||||
Purchases of servicing rights | 948 | 124 | |||||||||
Dispositions: | |||||||||||
Sales of servicing assets | (55) | (9) | |||||||||
Changes in fair value: | |||||||||||
Changes in valuation inputs or assumptions used in the valuation model (MSR MTM) | 502 | (819) | |||||||||
Changes in valuation due to amortization | (1,008) | (848) | |||||||||
Other changes | 56 | 72 | |||||||||
Fair value - end of year | $ | 4,223 | $ | 2,703 |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
Forward MSRs - UPB and Fair Value Breakdown | UPB | Fair Value | UPB | Fair Value | |||||||||||||||||||
Investor Pools | |||||||||||||||||||||||
Agency | $ | 302,851 | $ | 3,859 | $ | 227,136 | $ | 2,305 | |||||||||||||||
Non-agency | 36,357 | 364 | 44,053 | 398 | |||||||||||||||||||
Total | $ | 339,208 | $ | 4,223 | $ | 271,189 | $ | 2,703 |
Discount Rate | Total Prepayment Speeds | Cost to Service per Loan | |||||||||||||||||||||||||||||||||
Forward MSRs - Hypothetical Sensitivities | 100 bps Adverse Change | 200 bps Adverse Change | 10% Adverse Change | 20% Adverse Change | 10% Adverse Change | 20% Adverse Change | |||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Mortgage servicing rights | $ | (141) | $ | (272) | $ | (148) | $ | (286) | $ | (46) | $ | (93) | |||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Mortgage servicing rights | $ | (100) | $ | (192) | $ | (181) | $ | (347) | $ | (45) | $ | (89) |
Discount Rate | Prepayment Speeds | ||||||||||||||||||||||
Excess Spread Financing - Hypothetical Sensitivities | 100 bps Adverse Change | 200 bps Adverse Change | 10% Adverse Change | 20% Adverse Change | |||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Excess spread financing | $ | 26 | $ | 54 | $ | 28 | $ | 58 | |||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Excess spread financing | $ | 30 | $ | 62 | $ | 41 | $ | 84 |
Year Ended December 31, | |||||||||||
Total Revenues - Servicing | 2021 | 2020 | |||||||||
Contractually specified servicing fees(1) | $ | 1,122 | $ | 1,141 | |||||||
Other service-related income(1) | 640 | 290 | |||||||||
Incentive and modification income(1) | 51 | 39 | |||||||||
Late fees(1) | 71 | 83 | |||||||||
Mark-to-market adjustments(2) | 421 | (609) | |||||||||
Amortization, net of accretion(3) | (753) | (510) | |||||||||
Other(4) | (279) | (371) | |||||||||
Total revenues - Servicing | $ | 1,273 | $ | 63 |
Advances and Other Receivables, Net | December 31, 2021 | December 31, 2020 | |||||||||
Servicing advances, net of $19 and $72 purchase discount, respectively | $ | 1,263 | $ | 975 | |||||||
Receivables from agencies, investors and prior servicers, net of $12 and $21 purchase discount, respectively | 132 | 173 | |||||||||
Reserves | (167) | (208) | |||||||||
Total advances and other receivables, net | $ | 1,228 | $ | 940 |
Year Ended December 31, | |||||||||||
Reserves for Advances and Other Receivables | 2021 | 2020 | |||||||||
Balance - beginning of year | $ | 208 | $ | 168 | |||||||
Provision and other additions(1) | 75 | 108 | |||||||||
Write-offs | (116) | (68) | |||||||||
Balance - end of year | $ | 167 | $ | 208 |
December 31, 2020 | |||||
Carrying amounts of assets of discontinued operations | |||||
Restricted cash | $ | 83 | |||
Reverse mortgage interests, net | 5,253 | ||||
Other | 11 | ||||
Total assets of discontinued operations | $ | 5,347 | |||
Carrying amounts of liabilities of discontinued operations | |||||
Advances and warehouse facilities, net | $ | 505 | |||
Payables and other liabilities | 233 | ||||
Mortgage servicing liabilities | 41 | ||||
Other nonrecourse debt, net | 4,424 | ||||
Total liabilities of discontinued operations | $ | 5,203 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Revenue - service related, net | $ | 26 | $ | 44 | $ | 80 | |||||||||||
Salaries, wages and benefits expense | (30) | (41) | (64) | ||||||||||||||
General and administrative expense | 21 | (8) | (73) | ||||||||||||||
Interest income | 137 | 176 | 314 | ||||||||||||||
Interest expense | (105) | (174) | (236) | ||||||||||||||
Loss on classification as discontinued operations | (65) | — | — | ||||||||||||||
(Loss) income from discontinued operations before income tax (benefit) expense | (16) | (3) | 21 | ||||||||||||||
Less: Income tax (benefit) expense | (4) | (1) | 5 | ||||||||||||||
Net (loss) income from discontinued operations before income tax (benefit) expense | $ | (12) | $ | (2) | $ | 16 |
MSRs and Related Liabilities | December 31, 2021 | December 31, 2020 | |||||||||
Forward MSRs at fair value | $ | 4,223 | $ | 2,703 | |||||||
Excess spread financing at fair value | $ | 768 | $ | 934 | |||||||
Mortgage servicing rights financing at fair value | 10 | 33 | |||||||||
MSR related liabilities - nonrecourse at fair value | $ | 778 | $ | 967 |
Year Ended December 31, | |||||||||||
Forward MSRs - Fair Value | 2021 | 2020 | |||||||||
Fair value - beginning of year | $ | 2,703 | $ | 3,496 | |||||||
Additions: | |||||||||||
Servicing retained from mortgage loans sold | 1,077 | 687 | |||||||||
Purchases of servicing rights | 948 | 124 | |||||||||
Dispositions: | |||||||||||
Sales of servicing assets | (55) | (9) | |||||||||
Changes in fair value: | |||||||||||
Changes in valuation inputs or assumptions used in the valuation model (MSR MTM) | 502 | (819) | |||||||||
Changes in valuation due to amortization | (1,008) | (848) | |||||||||
Other changes | 56 | 72 | |||||||||
Fair value - end of year | $ | 4,223 | $ | 2,703 |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
Forward MSRs - UPB and Fair Value Breakdown | UPB | Fair Value | UPB | Fair Value | |||||||||||||||||||
Investor Pools | |||||||||||||||||||||||
Agency | $ | 302,851 | $ | 3,859 | $ | 227,136 | $ | 2,305 | |||||||||||||||
Non-agency | 36,357 | 364 | 44,053 | 398 | |||||||||||||||||||
Total | $ | 339,208 | $ | 4,223 | $ | 271,189 | $ | 2,703 |
Discount Rate | Total Prepayment Speeds | Cost to Service per Loan | |||||||||||||||||||||||||||||||||
Forward MSRs - Hypothetical Sensitivities | 100 bps Adverse Change | 200 bps Adverse Change | 10% Adverse Change | 20% Adverse Change | 10% Adverse Change | 20% Adverse Change | |||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Mortgage servicing rights | $ | (141) | $ | (272) | $ | (148) | $ | (286) | $ | (46) | $ | (93) | |||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Mortgage servicing rights | $ | (100) | $ | (192) | $ | (181) | $ | (347) | $ | (45) | $ | (89) |
Discount Rate | Prepayment Speeds | ||||||||||||||||||||||
Excess Spread Financing - Hypothetical Sensitivities | 100 bps Adverse Change | 200 bps Adverse Change | 10% Adverse Change | 20% Adverse Change | |||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Excess spread financing | $ | 26 | $ | 54 | $ | 28 | $ | 58 | |||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Excess spread financing | $ | 30 | $ | 62 | $ | 41 | $ | 84 |
Year Ended December 31, | |||||||||||
Total Revenues - Servicing | 2021 | 2020 | |||||||||
Contractually specified servicing fees(1) | $ | 1,122 | $ | 1,141 | |||||||
Other service-related income(1) | 640 | 290 | |||||||||
Incentive and modification income(1) | 51 | 39 | |||||||||
Late fees(1) | 71 | 83 | |||||||||
Mark-to-market adjustments(2) | 421 | (609) | |||||||||
Amortization, net of accretion(3) | (753) | (510) | |||||||||
Other(4) | (279) | (371) | |||||||||
Total revenues - Servicing | $ | 1,273 | $ | 63 |
Advances and Other Receivables, Net | December 31, 2021 | December 31, 2020 | |||||||||
Servicing advances, net of $19 and $72 purchase discount, respectively | $ | 1,263 | $ | 975 | |||||||
Receivables from agencies, investors and prior servicers, net of $12 and $21 purchase discount, respectively | 132 | 173 | |||||||||
Reserves | (167) | (208) | |||||||||
Total advances and other receivables, net | $ | 1,228 | $ | 940 |
Year Ended December 31, | |||||||||||
Reserves for Advances and Other Receivables | 2021 | 2020 | |||||||||
Balance - beginning of year | $ | 208 | $ | 168 | |||||||
Provision and other additions(1) | 75 | 108 | |||||||||
Write-offs | (116) | (68) | |||||||||
Balance - end of year | $ | 167 | $ | 208 |
Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||||||||||||||||
Purchase Discount for Advances and Other Receivables | Servicing Advances | Receivables from Agencies, Investors and Prior Servicers | Servicing Advances | Receivables from Agencies, Investors and Prior Servicers | |||||||||||||||||||
Balance - beginning of year | $ | 72 | $ | 21 | $ | 131 | $ | 21 | |||||||||||||||
Utilization of purchase discounts | (53) | (9) | (59) | — | |||||||||||||||||||
Balance - end of year | $ | 19 | $ | 12 | $ | 72 | $ | 21 |
Year Ended December 31, | |||||||||||
Mortgage Loans Held for Sale | 2021 | 2020 | |||||||||
Mortgage loans held for sale - UPB | $ | 4,257 | $ | 5,438 | |||||||
Mark-to-market adjustment(1) | 124 | 282 | |||||||||
Total mortgage loans held for sale | $ | 4,381 | $ | 5,720 |
Successor | |||||||
December 31, 2019 | December 31, 2018 | ||||||
Mortgage loans held for sale - UPB | $ | 3,949 | $ | 1,568 | |||
Mark-to-market adjustment(1) | 128 | 63 | |||||
Total mortgage loans held for sale | $ | 4,077 | $ | 1,631 |
(1)The mark-to-market adjustment includes net change in unrealized gain/loss, premium on correspondent loans and fees on direct-to-consumer loans. The mark-to-market adjustment is recorded in net gain on mortgage loans held for sale |
Successor | |||||||||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||
Mortgage loans held for sale - UPB | UPB | Fair Value | UPB | Fair Value | |||||||||||
Non-accrual(1) | $ | 29 | $ | 22 | $ | 45 | $ | 42 |
Year Ended December 31, | |||||||||||
Mortgage Loans Held for Sale | 2021 | 2020 | |||||||||
Balance - beginning of year | $ | 5,720 | $ | 4,077 | |||||||
Loans sold | (96,077) | (66,545) | |||||||||
Mortgage loans originated and purchased, net of fees | 84,684 | 63,233 | |||||||||
Repurchase of loans out of Ginnie Mae securitizations(1) | 10,156 | 4,822 | |||||||||
Net change in unrealized gain on retained loans held for sale | (107) | 123 | |||||||||
Net transfers of mortgage loans held for sale(2) | 5 | 10 | |||||||||
Balance - end of year | $ | 4,381 | $ | 5,720 |
Successor | Predecessor | |||||||||||
Mortgage loans held for sale | Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | |||||||||
Balance - beginning of period | $ | 1,631 | $ | 1,514 | $ | 1,891 | ||||||
Loans sold | (41,289 | ) | (9,304 | ) | (13,255 | ) | ||||||
Mortgage loans originated and purchased, net of fees(1) | 40,772 | 8,890 | 12,319 | |||||||||
Repurchase of loans out of Ginnie Mae securitizations | 2,895 | 527 | 544 | |||||||||
Net transfers of mortgage loans held for sale to/from REO in other assets and transfer from mortgage loans held for investment(2)(3) | 34 | 5 | 14 | |||||||||
Changes in fair value | 29 | 6 | (1 | ) | ||||||||
Other purchase-related activities(4) | 21 | (2 | ) | 9 | ||||||||
Transfer of mortgage loans held for sale to advances and other receivables, net related to claims(5) | (16 | ) | (5 | ) | (7 | ) | ||||||
Balance - end of period | $ | 4,077 | $ | 1,631 | $ | 1,514 |
Successor | |||||||
Mortgage loans held for investment at fair value | Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | |||||
Balance - beginning of period | $ | 119 | $ | 125 | |||
Sale of mortgage loans | (94 | ) | — | ||||
Transfers to mortgage loans held for sale | (12 | ) | — | ||||
Payments received from borrowers | (11 | ) | (5 | ) | |||
Transfers to real estate owned | (5 | ) | — | ||||
Changes in fair value | 3 | 2 | |||||
Charge-offs | — | (3 | ) | ||||
Balance - end of period | $ | — | $ | 119 |
Successor | ||||
December 31, 2018 | ||||
Mortgage loans held for investment – UPB | $ | 156 | ||
Fair value adjustments | (37 | ) | ||
Total mortgage loans held for investment at fair value | $ | 119 |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
Mortgage Loans Held for Sale | UPB | Fair Value | UPB | Fair Value | |||||||||||||||||||
Non-accrual(1) | $ | 104 | $ | 94 | $ | 64 | $ | 54 |
Successor | |||||||
December 31, 2018 | |||||||
Mortgage loans held for investment - UPB | UPB | Fair Value | |||||
Non-accrual | $ | 27 | $ | 13 |
Property and Equipment, Net | December 31, 2021 | December 31, 2020 | Estimated Useful Life | ||||||||||||||
Furniture, fixtures, and equipment | $ | 57 | $ | 55 | 3 - 5 years | ||||||||||||
Capitalized software costs | 98 | 80 | 3 - 5 years | ||||||||||||||
Software in development and other | 26 | 29 | |||||||||||||||
Leasehold improvements | 31 | 33 | 3 - 5 years | ||||||||||||||
Long-term finance leases - computer equipment | 8 | 8 | 5 years | ||||||||||||||
Property and equipment | 220 | 205 | |||||||||||||||
Less: Accumulated depreciation | (122) | (92) | |||||||||||||||
Property and equipment, net | $ | 98 | $ | 113 |
Successor | |||||||||
December 31, 2019 | December 31, 2018 | Estimated Useful Life | |||||||
Furniture, fixtures, and equipment | $ | 50 | $ | 32 | 3 - 5 years | ||||
Capitalized software costs | 54 | 24 | 3 - 5 years | ||||||
Software in development and other | 31 | 24 | |||||||
Leasehold improvements | 24 | 22 | 3 - 5 years | ||||||
Long-term finance leases - computer equipment | 8 | 10 | 5 years | ||||||
Property and equipment | 167 | 112 | |||||||
Less: Accumulated depreciation | (55 | ) | (16 | ) | |||||
Total property and equipment, net | $ | 112 | $ | 96 |
Year Ended December 31, | |||||||||||
Net Lease Cost | 2021 | 2020 | |||||||||
Operating lease cost | $ | 31 | $ | 37 | |||||||
Sublease income | (4) | (6) | |||||||||
Total net lease cost | $ | 27 | $ | 31 |
Successor | |||
Year Ended December 31, 2019 | |||
Operating lease cost | $ | 40 | |
Short-term lease cost | 1 | ||
Sublease income | (3 | ) | |
Net lease cost | $ | 38 |
Year Ended December 31, | |||||||||||
Operating Leases - Other Information | 2021 | 2020 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | 27 | $ | 35 | |||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | 46 | $ | 14 | |||||||
Weighted average remaining lease term - operating leases, in years | 6.3 | 5.3 | |||||||||
Weighted average discount rate - operating leases | 3.8 | % | 4.9 | % |
Successor | |||
Year Ended December 31, 2019 | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ | 30 | |
Leased assets obtained in exchange for new operating lease liabilities | $ | 154 | |
Weighted average remaining lease term - operating leases, in years | 5.5 | ||
Weighted average discount rate - operating leases | 5.0 | % |
Year Ending December 31, | Operating Leases | |||||||
2022 | $ | 24 | ||||||
2023 | 24 | |||||||
2024 | 20 | |||||||
2025 | 16 | |||||||
2026 | 15 | |||||||
Thereafter | 36 | |||||||
Total future minimum lease payments | 135 | |||||||
Less: imputed interest | 13 | |||||||
Total operating lease liabilities | $ | 122 |
Year Ending December 31, | Operating Leases | |||
2020 | $ | 40 | ||
2021 | 32 | |||
2022 | 23 | |||
2023 | 17 | |||
2024 | 12 | |||
2025 and thereafter | 32 | |||
Total future minimum lease payments | 156 | |||
Less: imputed interest | 21 | |||
Total operating lease liabilities | $ | 135 |
Successor | |||||||
December 31, 2019 | December 31, 2018 | ||||||
Loans subject to repurchase right from Ginnie Mae | $ | 560 | $ | 266 | |||
Derivative financial instruments | 153 | 49 | |||||
Trade receivables and accrued revenues | 126 | 145 | |||||
Right-of-use assets | 121 | — | |||||
Goodwill | 120 | 23 | |||||
Intangible assets | 74 | 117 | |||||
Other | 236 | 195 | |||||
Total other assets | $ | 1,390 | $ | 795 |
Successor | Predecessor | |||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | ||||||||||
Balance - beginning of period | $ | 23 | $ | 10 | $ | 72 | ||||||
Addition from acquisitions(1) | 42 | 13 | — | |||||||||
Measurement period adjustment related to Merger(2) | 55 | — | — | |||||||||
Balance - end of period | $ | 120 | $ | 23 | $ | 72 |
December 31, 2021 | |||||||||||||||||||||||
Intangible Assets | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Life in Years | |||||||||||||||||||
Customer relationships | $ | 74 | $ | (62) | $ | 12 | 5.6 | ||||||||||||||||
Technology(1) | 25 | (25) | — | 2.1 | |||||||||||||||||||
Trade name | 7 | (5) | 2 | 1.6 | |||||||||||||||||||
Total intangible assets | $ | 106 | $ | (92) | $ | 14 | 4.9 |
December 31, 2020 | ||||||||||||||||||||||||||||||||||||
Successor | ||||||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Life in Years | |||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Life in Years | |||||||||||||||||||||||||||||||
Customer relationships | $ | 90 | $ | (45 | ) | $ | 45 | 5.9 | Customer relationships | $ | 86 | $ | (65) | $ | 21 | 5.5 | ||||||||||||||||||||
Technology | 46 | (23 | ) | 23 | 2.9 | Technology | 33 | (27) | 6 | 1.4 | ||||||||||||||||||||||||||
Trade name | 8 | (2 | ) | 6 | 3.6 | Trade name | 8 | (4) | 4 | 2.6 | ||||||||||||||||||||||||||
Other | 1 | (1 | ) | — | 2.8 | |||||||||||||||||||||||||||||||
Total intangible assets | $ | 145 | $ | (71 | ) | $ | 74 | 4.7 | Total intangible assets | $ | 127 | $ | (96) | $ | 31 | 4.4 |
Successor | |||||||||||||
December 31, 2018 | |||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Life in Years | ||||||||||
Customer relationships | $ | 77 | $ | (14 | ) | $ | 63 | 5.6 | |||||
Technology | 52 | (8 | ) | 44 | 3.6 | ||||||||
Trade name | 8 | (1 | ) | 7 | 4.6 | ||||||||
Other(1) | 3 | — | 3 | 4.8 | |||||||||
Total intangible assets | $ | 140 | $ | (23 | ) | $ | 117 | 4.7 |
Year Ending December 31, | Amount | |||
2020 | $ | 32 | ||
2021 | 17 | |||
2022 | 13 | |||
2023 | 8 | |||
2024 | 1 | |||
Thereafter | 3 | |||
Total future amortization expense | $ | 74 |
December 31, 2021 | Year Ended December 31, 2021 | ||||||||||||||||||||||
Derivative Financial Instruments | Expiration Dates | Outstanding Notional | Fair Value | Gains/(Losses) | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Mortgage loans held for sale | |||||||||||||||||||||||
Loan sale commitments | 2022 | $ | 1,051 | $ | 25 | $ | (77) | ||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
IRLCs | 2022 | 5,237 | 134 | (280) | |||||||||||||||||||
LPCs | 2022 | 487 | 3 | (35) | |||||||||||||||||||
Forward MBS trades | 2022 | 3,569 | 7 | (23) | |||||||||||||||||||
Total derivative financial instruments - assets | $ | 9,293 | $ | 144 | $ | (338) | |||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
IRLCs | 2022 | $ | 10 | $ | — | $ | — | ||||||||||||||||
LPCs | 2022 | 646 | 2 | 1 | |||||||||||||||||||
Forward MBS trades | 2022 | 4,091 | 8 | (94) | |||||||||||||||||||
Swap futures | 2022 | 923 | 6 | 6 | |||||||||||||||||||
Total derivative financial instruments - liabilities | $ | 5,670 | $ | 16 | $ | (87) |
December 31, 2020 | Year Ended December 31, 2020 | ||||||||||||||||||||||
Derivative Financial Instruments | Expiration Dates | Outstanding Notional | Fair Value | Gains/(Losses) | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Mortgage loans held for sale | |||||||||||||||||||||||
Loan sale commitments | 2021 | $ | 2,710 | $ | 102 | $ | 70 | ||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
IRLCs | 2021 | 10,179 | 414 | 279 | |||||||||||||||||||
LPCs | 2021 | 5,406 | 38 | 26 | |||||||||||||||||||
Forward MBS trades | 2021 | 5,853 | 37 | 31 | |||||||||||||||||||
Total derivative financial instruments - assets | $ | 21,438 | $ | 489 | $ | 336 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
IRLCs | 2021 | $ | 2 | $ | — | $ | — | ||||||||||||||||
LPCs | 2021 | 280 | 1 | (2) | |||||||||||||||||||
Forward MBS trades | 2021 | 25,156 | 156 | 144 | |||||||||||||||||||
Swap futures | 2021 | 60 | — | — | |||||||||||||||||||
Total derivative financial instruments - liabilities | $ | 25,498 | $ | 157 | $ | 142 |
Successor | |||||||||||||
December 31, 2019 | Year Ended December 31, 2019 | ||||||||||||
Expiration Dates | Outstanding Notional | Fair Value | Recorded Gains/(Losses) | ||||||||||
Assets | |||||||||||||
Mortgage loans held for sale | |||||||||||||
Loan sale commitments | 2020 | $ | 1,202 | $ | 32.3 | $ | 6.5 | ||||||
Derivative financial instruments | |||||||||||||
IRLCs | 2020 | 4,838 | 134.7 | 75.0 | |||||||||
LPCs | 2020 | 1,094 | 12.2 | 10.5 | |||||||||
Forward sales of MBS | 2020 | 3,120 | 6.5 | 4.6 | |||||||||
Eurodollar futures(1) | 2020-2021 | 6 | — | — | |||||||||
Total derivative financial instruments - assets | $ | 9,058 | $ | 153.4 | $ | 90.1 | |||||||
Liabilities | |||||||||||||
Derivative financial instruments | |||||||||||||
IRLCs(1) | 2020 | $ | 12 | $ | — | $ | — | ||||||
LPCs | 2020 | 540 | 2.6 | 2.1 | |||||||||
Forward sales of MBS | 2020 | 6,036 | 12.3 | (11.6 | ) | ||||||||
Eurodollar futures(1) | 2020-2021 | 7 | — | — | |||||||||
Total derivative financial instruments - liabilities | $ | 6,595 | $ | 14.9 | $ | (9.5 | ) |
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral Pledged | Outstanding | Collateral pledged | |||||||||||||||||||||||||||||||||||||||||||
Advance Facilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
$940 advance facility(1) | LIBOR+3.5% | August 2023 | Servicing advance receivables | $ | 940 | $ | 234 | $ | 318 | $ | 235 | $ | 305 | |||||||||||||||||||||||||||||||||||||
$350 advance facility(2) | LIBOR+1.1% to 6.5% | October 2022 | Servicing advance receivables | 350 | 160 | 197 | 192 | 246 | ||||||||||||||||||||||||||||||||||||||||||
$350 advance facility(3) | CP+1.5% to 6.5% | January 2023 | Servicing advance receivables | 350 | 162 | 190 | 168 | 195 | ||||||||||||||||||||||||||||||||||||||||||
$75 advance facility(4) | LIBOR+2.0% | December 2022 | Servicing advance receivables | 75 | 58 | 89 | 74 | 98 | ||||||||||||||||||||||||||||||||||||||||||
Advance facilities principal amount | 614 | 794 | 669 | 844 | ||||||||||||||||||||||||||||||||||||||||||||||
Warehouse Facilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
$4,000 warehouse facility(5) | LIBOR+1.6% to 2.2% | February 2023 | Mortgage loans or MBS | 4,000 | 1,224 | 1,341 | 339 | 392 | ||||||||||||||||||||||||||||||||||||||||||
$2,500 warehouse facility(6) | LIBOR+1.5% to 1.9% | October 2022 | Mortgage loans or MBS | 2,500 | 991 | 1,024 | 1,003 | 1,037 | ||||||||||||||||||||||||||||||||||||||||||
$1,600 warehouse facility(7) | LIBOR+1.5% to 3.0% | September 2023 | Mortgage loans or MBS | 1,600 | 409 | 425 | 1,067 | 1,128 | ||||||||||||||||||||||||||||||||||||||||||
$1,500 warehouse facility | LIBOR+1.5% | June 2022 | Mortgage loans or MBS | 1,500 | 356 | 345 | 1,081 | 1,028 | ||||||||||||||||||||||||||||||||||||||||||
$750 warehouse facility(8) | LIBOR+1.5% to 3.0% | October 2022 | Mortgage loans or MBS | 750 | 256 | 270 | 787 | 839 | ||||||||||||||||||||||||||||||||||||||||||
$600 warehouse facility | LIBOR+2.5% | March 2022 | Mortgage loans or MBS | 600 | 5 | 6 | 187 | 222 | ||||||||||||||||||||||||||||||||||||||||||
$550 warehouse facility(9) | LIBOR+1.5% | August 2022 | Mortgage loans or MBS | 550 | 87 | 89 | 477 | 492 | ||||||||||||||||||||||||||||||||||||||||||
$500 warehouse facility | LIBOR+1.6% to 3.0% | June 2023 | Mortgage loans or MBS | 500 | 188 | 194 | — | — | ||||||||||||||||||||||||||||||||||||||||||
$500 warehouse facility(10) | LIBOR+1.5% to 1.8% | September 2022 | Mortgage loans or MBS | 500 | 419 | 430 | 562 | 574 | ||||||||||||||||||||||||||||||||||||||||||
$500 warehouse facility | LIBOR+1.5% to 4.0% | June 2022 | Mortgage loans or MBS | 500 | 39 | 39 | — | — | ||||||||||||||||||||||||||||||||||||||||||
$500 warehouse facility | LIBOR+1.7% | August 2023 | Mortgage loans or MBS | 500 | 38 | 39 | — | — | ||||||||||||||||||||||||||||||||||||||||||
$325 warehouse facility | LIBOR+1.5% | December 2022 | Mortgage loans or MBS | 325 | 67 | 67 | 163 | 164 | ||||||||||||||||||||||||||||||||||||||||||
$200 warehouse facility(11) | LIBOR+1.8% | October 2021 | Mortgage loans or MBS | 200 | — | — | 131 | 134 | ||||||||||||||||||||||||||||||||||||||||||
$200 warehouse facility(12) | LIBOR+1.6% to 4.9% | April 2022 | Mortgage loans or MBS | 200 | 46 | 58 | 37 | 42 | ||||||||||||||||||||||||||||||||||||||||||
$30 warehouse facility(13) | LIBOR+3.3% | January 2022 | Mortgage loans or MBS | 30 | — | — | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||
Warehouse facilities principal amount | 4,125 | 4,327 | 5,835 | 6,053 | ||||||||||||||||||||||||||||||||||||||||||||||
MSR Facilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
$400 warehouse facility(14) | LIBOR+3.0% | August 2022 | MSR | 400 | — | 838 | — | 247 | ||||||||||||||||||||||||||||||||||||||||||
$400 warehouse facility(7) | LIBOR+3.0% | September 2023 | MSR | 400 | — | 745 | — | 228 | ||||||||||||||||||||||||||||||||||||||||||
$260 warehouse facility(1) | LIBOR+3.5% | August 2023 | MSR | 260 | 260 | 1,107 | 260 | 668 | ||||||||||||||||||||||||||||||||||||||||||
$50 warehouse facility | LIBOR+2.8% | November 2023 | MSR | 50 | 10 | 124 | 10 | 74 | ||||||||||||||||||||||||||||||||||||||||||
MSR facilities principal amount | 270 | 2,814 | 270 | 1,217 | ||||||||||||||||||||||||||||||||||||||||||||||
Advance, warehouse and MSR facilities principal amount | 5,009 | $ | 7,935 | 6,774 | $ | 8,114 | ||||||||||||||||||||||||||||||||||||||||||||
Unamortized debt issuance costs | (12) | (11) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total advance and warehouse facilities, net(15) | $ | 4,997 | $ | 6,763 |
Successor | Predecessor | |||||||||||||||||
December 31, 2018 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | ||||||||||||||||
Expiration Dates | Outstanding Notional | Fair Value | Recorded Gains/(Losses) | Recorded Gains/(Losses) | ||||||||||||||
Assets | ||||||||||||||||||
Mortgage loans held for sale | ||||||||||||||||||
Loan sale commitments | 2019 | $ | 319 | $ | 13.5 | $ | 2.8 | $ | 10.5 | |||||||||
Derivative financial instruments | ||||||||||||||||||
IRLCs | 2019 | 1,301 | 47.6 | (12.1 | ) | 0.4 | ||||||||||||
LPCs | 2019 | 215 | 1.7 | 0.4 | 0.3 | |||||||||||||
Forward sales of MBS | 2019 | 485 | 0.1 | (3.1 | ) | 0.9 | ||||||||||||
Treasury futures(1) | 2018 | — | — | (0.1 | ) | (1.8 | ) | |||||||||||
Eurodollar futures(1) | 2019-2021 | 19 | — | — | — | |||||||||||||
Total derivative financial instruments - assets | $ | 2,020 | $ | 49.4 | $ | (14.9 | ) | $ | (0.2 | ) | ||||||||
Liabilities | ||||||||||||||||||
Derivative financial instruments | ||||||||||||||||||
IRLCs(1) | 2019 | $ | — | $ | — | $ | — | $ | — | |||||||||
LPCs | 2019 | 90 | 0.4 | (0.2 | ) | 0.1 | ||||||||||||
Forward sales of MBS | 2019 | 2,639 | 19.3 | 17.4 | (1.0 | ) | ||||||||||||
Treasury futures(1) | 2018 | — | — | (0.1 | ) | (1.3 | ) | |||||||||||
Eurodollar futures(1) | 2019-2021 | 6 | — | — | — | |||||||||||||
Total derivative financial instruments - liabilities | $ | 2,735 | $ | 19.7 | $ | 17.1 | $ | (2.2 | ) |
Successor | ||||||||||||||||||||||||||
December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||
Advance Facilities | Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral Pledged | Outstanding | Collateral pledged | ||||||||||||||||||
$325 advance facility | LIBOR+1.5% to 6.5% | August 2021 | Servicing advance receivables | $ | 325 | $ | 224 | $ | 285 | $ | 209 | $ | 284 | |||||||||||||
$250 advance facility | LIBOR+1.5% to 2.6% | December 2020 | Servicing advance receivables | 250 | 98 | 167 | 218 | 255 | ||||||||||||||||||
$200 advance facility | LIBOR+2.5% | January 2021 | Servicing advance receivables | 200 | 63 | 125 | 90 | 149 | ||||||||||||||||||
$125 advance facility | CP +1.5% to 7.4% | July 2020 | Servicing advance receivables | 125 | 37 | 88 | 78 | 89 | ||||||||||||||||||
Advance facilities principal amount | 422 | $ | 665 | 595 | $ | 777 | ||||||||||||||||||||
Unamortized debt issuance costs | — | — | ||||||||||||||||||||||||
Advance facilities, net | $ | 422 | $ | 595 |
Successor | ||||||||||||||||||||||||||
December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||
Warehouse Facilities | Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral Pledged | Outstanding | Collateral pledged | ||||||||||||||||||
$1,500 warehouse facility | LIBOR+1.0% | June 2020 | Mortgage loans or MBS | $ | 1,500 | $ | 759 | $ | 733 | $ | — | $ | — | |||||||||||||
$1,200 warehouse facility | LIBOR+1.5% to 3.0% | November 2020 | Mortgage loans or MBS | 1,200 | 683 | 724 | 560 | 622 | ||||||||||||||||||
$1,000 warehouse facility | LIBOR+1.4% to 2.3% | September 2020 | Mortgage loans or MBS | 1,000 | 762 | 783 | 137 | 140 | ||||||||||||||||||
$800 warehouse facility(1) | LIBOR+1.5% to 2.9% | April 2020 | Mortgage loans or MBS | 800 | 589 | 656 | 464 | 514 | ||||||||||||||||||
$750 warehouse facility | LIBOR+1.4% to 2.8% | September 2020 | Mortgage loans or MBS | 750 | 411 | 425 | 119 | 122 | ||||||||||||||||||
$700 warehouse facility | LIBOR+1.3% to 2.2% | November 2020 | Mortgage loans or MBS | 700 | 469 | 488 | 220 | 248 | ||||||||||||||||||
$600 warehouse facility | LIBOR+2.3% | February 2021 | Mortgage loans or MBS | 600 | 174 | 202 | 151 | 168 | ||||||||||||||||||
$500 warehouse facility | LIBOR+1.5% to 3.0% | April 2020 | Mortgage loans or MBS | 500 | 336 | 349 | 187 | 200 | ||||||||||||||||||
$500 warehouse facility(2) | LIBOR+2.0% to 2.3% | September 2020 | Mortgage loans or MBS | 500 | — | — | 290 | 299 | ||||||||||||||||||
$200 warehouse facility | LIBOR+1.4% | January 2021 | Mortgage loans or MBS | 200 | 136 | 136 | — | — | ||||||||||||||||||
$200 warehouse facility | LIBOR+1.2% | April 2021 | Mortgage loans or MBS | 200 | 27 | 27 | 18 | 19 | ||||||||||||||||||
$200 warehouse facility | LIBOR+2.0% | May 2020 | Mortgage loans or MBS | 200 | 54 | 78 | 103 | 132 | ||||||||||||||||||
$200 warehouse facility | LIBOR+1.3% | October 2020 | Mortgage loans or MBS | 200 | — | — | — | — | ||||||||||||||||||
$50 warehouse facility | LIBOR+2.0% to 6.0% | April 2020 | Mortgage loans or MBS | 50 | 11 | 15 | — | — | ||||||||||||||||||
$40 warehouse facility | LIBOR+3.3% | September 2020 | Mortgage loans or MBS | 40 | 5 | 6 | — | — | ||||||||||||||||||
$40 warehouse facility(2) | LIBOR+3.0% | November 2019 | Mortgage loans or MBS | 40 | — | — | 1 | 2 | ||||||||||||||||||
Warehouse facilities principal amount | 4,416 | 4,622 | 2,250 | 2,466 | ||||||||||||||||||||||
MSR Facilities | ||||||||||||||||||||||||||
$400 warehouse facility | LIBOR+3.5% to 6.1% | June 2021 | Mortgage loans or MBS | 400 | 150 | 945 | 100 | 928 | ||||||||||||||||||
$400 warehouse facility | LIBOR+2.3% | December 2020 | Mortgage loans or MBS | 400 | — | 200 | — | 226 | ||||||||||||||||||
$150 warehouse facility(1) | LIBOR+2.8% | April 2020 | Mortgage loans or MBS | 150 | — | 130 | — | 430 | ||||||||||||||||||
$50 warehouse facility | LIBOR+4.5% | August 2020 | Mortgage loans or MBS | 50 | 10 | 84 | — | 102 | ||||||||||||||||||
MSR facilities principal amount | 160 | 1,359 | 100 | 1,686 | ||||||||||||||||||||||
Warehouse and MSR facilities principal amount | 4,576 | $ | 5,981 | 2,350 | $ | 4,152 | ||||||||||||||||||||
Unamortized debt issuance costs | (1 | ) | (1 | ) | ||||||||||||||||||||||
Warehouse facilities, net | $ | 4,575 | $ | 2,349 | ||||||||||||||||||||||
Pledged Collateral: | ||||||||||||||||||||||||||
Mortgage loans held for sale and mortgage loans held for investment | $ | 3,826 | $ | 3,931 | $ | 1,528 | $ | 1,628 | ||||||||||||||||||
Reverse mortgage interests | 590 | 691 | 722 | 838 | ||||||||||||||||||||||
MSR | 160 | 1,359 | 100 | 1,686 |
Unsecured Senior Notes | December 31, 2021 | December 31, 2020 | |||||||||
$850 face value, 5.500% interest rate payable semi-annually, due August 2028 | $ | 850 | $ | 850 | |||||||
$650 face value, 5.125% interest rate payable semi-annually, due December 2030 | 650 | 650 | |||||||||
$600 face value, 6.000% interest rate payable semi-annually, due January 2027 | 600 | 600 | |||||||||
$600 face value, 5.750% interest rate payable semi-annually, due November 2031 | 600 | — | |||||||||
Unsecured senior notes principal amount | 2,700 | 2,100 | |||||||||
Unamortized debt issuance costs and discount, net of premium | (30) | (26) | |||||||||
Unsecured senior notes, net | $ | 2,670 | $ | 2,074 |
Successor | |||||||
December 31, 2019 | December 31, 2018 | ||||||
$950 face value, 8.125% interest rate payable semi-annually, due July 2023 | $ | 950 | $ | 950 | |||
$750 face value, 9.125% interest rate payable semi-annually, due July 2026 | 750 | 750 | |||||
$600 face value, 6.500% interest rate payable semi-annually, due July 2021(1) | 492 | 592 | |||||
$300 face value, 6.500% interest rate payable semi-annually, due June 2022(1) | 206 | 206 | |||||
Unsecured senior notes principal amount | 2,398 | 2,498 | |||||
Unamortized debt issuance costs, premium and discount | (32 | ) | (39 | ) | |||
Unsecured senior notes, net | $ | 2,366 | $ | 2,459 |
Year Ending December 31, | Amount | |||
2020 | $ | — | ||
2021(1) | 492 | |||
2022(1) | 206 | |||
2023 | 950 | |||
2024 | — | |||
Thereafter | 750 | |||
Total unsecured senior notes principal amount | $ | 2,398 |
Amount |
Successor | ||||||||||||||||||
December 31, 2019 | December 31, 2018 | |||||||||||||||||
Issue Date | Maturity Date | Class of Note | Collateral Amount | Outstanding | Outstanding | |||||||||||||
Participating interest financing(1) | — | — | — | $ | — | $ | 4,284 | $ | 5,607 | |||||||||
Securitization of nonperforming HECM loans | ||||||||||||||||||
Trust 2019-2 | November 2019 | November 2029 | A, M1, M2, M3, M4, M5 | 337 | 333 | — | ||||||||||||
Trust 2019-1 | June 2019 | June 2029 | A, M1, M2, M3, M4, M5 | 315 | 302 | — | ||||||||||||
Trust 2018-3 | November 2018 | November 2028 | A, M1, M2, M3, M4, M5 | 226 | 209 | 326 | ||||||||||||
Trust 2018-2 | August 2018 | August 2028 | A, M1, M2, M3, M4, M5 | 168 | 148 | 250 | ||||||||||||
Trust 2018-1(2) | March 2018 | March 2028 | A, M1, M2, M3, M4, M5 | — | — | 284 | ||||||||||||
Trust 2017-2(2) | September 2017 | September 2027 | A, M1, M2 | — | — | 231 | ||||||||||||
Nonrecourse Debt - Legacy(3) | November 2009 | October 2039 | A | — | — | 29 | ||||||||||||
Other nonrecourse debt principal amount | 5,276 | 6,727 | ||||||||||||||||
Unamortized debt issuance costs, premium and discount | 10 | 68 | ||||||||||||||||
Other nonrecourse debt, net | $ | 5,286 | $ | 6,795 |
2022 through 2026 | $ | — | ||||||
2,700 | |||||
$ | 2,700 | |
Successor | |||||||
December 31, 2019 | December 31, 2018 | ||||||
Loans subject to repurchase from Ginnie Mae | $ | 560 | $ | 266 | |||
Payables to servicing and subservicing investors | 423 | 494 | |||||
Payable to GSEs and securitized trusts | 182 | 105 | |||||
Operating lease liability | 135 | — | |||||
MSR purchases payable including advances | 20 | 182 | |||||
Other liabilities | 696 | 496 | |||||
Total payables and other liabilities | $ | 2,016 | $ | 1,543 |
Successor | Predecessor | |||||||||||
Repurchase Reserves | For the year ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | |||||||||
Balance - beginning of period | $ | 8 | $ | 9 | $ | 9 | ||||||
Provisions(1) | 25 | 3 | 3 | |||||||||
Releases | (8 | ) | (4 | ) | (3 | ) | ||||||
Balance - end of period | $ | 25 | $ | 8 | $ | 9 |
December 31, 2021 | December 31, 2020 | ||||||||||
Consolidated Transactions with VIEs | Transfers Accounted for as Secured Borrowings | Transfers Accounted for as Secured Borrowings | |||||||||
Assets | |||||||||||
Restricted cash | $ | 50 | $ | 47 | |||||||
Advances and other receivables, net | 387 | 441 | |||||||||
Total assets | $ | 437 | $ | 488 | |||||||
Liabilities | |||||||||||
Advance facilities(1) | $ | 322 | $ | 358 | |||||||
Payables and other liabilities | 1 | 1 | |||||||||
Total liabilities | $ | 323 | $ | 359 |
Successor | |||||||||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||
Transfers Accounted for as Secured Borrowings | Reverse Secured Borrowings | Transfers Accounted for as Secured Borrowings | Reverse Secured Borrowings | ||||||||||||
Assets | |||||||||||||||
Restricted cash | $ | 66 | $ | 42 | $ | 70 | $ | 63 | |||||||
Reverse mortgage interests, net(1) | — | 5,230 | — | 6,728 | |||||||||||
Advances and other receivables, net | 540 | — | 628 | — | |||||||||||
Mortgage loans held for investment, net(2) | — | — | 118 | — | |||||||||||
Other assets | — | — | — | — | |||||||||||
Total assets | $ | 606 | $ | 5,272 | $ | 816 | $ | 6,791 | |||||||
Liabilities | |||||||||||||||
Advance facilities(3) | $ | 359 | $ | — | $ | 505 | $ | — | |||||||
Payables and other liabilities | 1 | 1 | 1 | 1 | |||||||||||
Participating interest financing | — | 4,284 | — | 5,607 | |||||||||||
HECM Securitizations (HMBS) | |||||||||||||||
Trust 2019-2 | — | 333 | — | — | |||||||||||
Trust 2019-1 | — | 302 | — | — | |||||||||||
Trust 2018-3 | — | 209 | — | 326 | |||||||||||
Trust 2018-2 | — | 148 | — | 250 | |||||||||||
Trust 2018-1 | — | — | — | 284 | |||||||||||
Trust 2017-2 | — | — | — | 231 | |||||||||||
Nonrecourse debt–legacy assets(2) | — | — | 29 | — | |||||||||||
Total liabilities | $ | 360 | $ | 5,277 | $ | 535 | $ | 6,699 |
Unconsolidated Securitization Trusts | December 31, 2021 | December 31, 2020 | |||||||||
Total collateral balances - UPB | $ | 1,122 | $ | 1,326 | |||||||
Total certificate balances | $ | 1,112 | $ | 1,329 |
Successor | |||||||
December 31, 2019 | December 31, 2018 | ||||||
Total collateral balances - UPB | $ | 1,503 | $ | 1,873 | |||
Total certificate balances | $ | 1,512 | $ | 1,817 |
Principal Amount of Transferred Loans 60 Days or More Past Due | December 31, 2021 | December 31, 2020 | |||||||||
Unconsolidated securitization trusts | $ | 138 | $ | 154 |
Successor | |||||||
Principal Amount of Loans 60 Days or More Past Due | December 31, 2019 | December 31, 2018 | |||||
Unconsolidated securitization trusts | $ | 193 | $ | 285 |
Share-based Awards | Shares (or Units) (in thousands) | Weighted-Average Grant Date Fair Value, per Share (or Unit) | |||||||||
Share-based awards outstanding as of December 31, 2020 | 4,829 | $ | 12.74 | ||||||||
Granted | 1,154 | 31.00 | |||||||||
Vested | (1,872) | 12.40 | |||||||||
Forfeited | (826) | 17.72 | |||||||||
Share-based awards outstanding as of December 31, 2021 | 3,285 | 18.11 |
Successor | ||||||
Shares (or Units) (in thousands) | Weighted-Average Grant Date Fair Value, per Share (or Unit) | |||||
Equity awards outstanding as of December 31, 2018 | 3,473 | $ | 15.53 | |||
Granted | 2,525 | 12.44 | ||||
Vested | (436 | ) | 16.73 | |||
Forfeited | (327 | ) | 14.61 | |||
Equity awards outstanding as of December 31, 2019 | 5,235 | 14.00 |
Year Ended December 31, | |||||||||||||||||
Computation of Earnings Per Share | 2021 | 2020 | 2019 | ||||||||||||||
Net income from continuing operations | $ | 1,466 | $ | 309 | $ | 254 | |||||||||||
Less: Net income (loss) attributable to non-controlling interests | — | 2 | (4) | ||||||||||||||
Less: Undistributed earnings from continuing operations attributable to participating stockholders | 8 | 3 | 2 | ||||||||||||||
Less: Premium on retirement of preferred stock | 28 | — | — | ||||||||||||||
Net income from continuing operations attributable to Mr. Cooper common stockholders | $ | 1,430 | $ | 304 | $ | 256 | |||||||||||
Net (loss) income from discontinued operations | $ | (12) | $ | (2) | $ | 16 | |||||||||||
Less: Undistributed earnings from discontinued operations attributable to participating stockholders | — | — | — | ||||||||||||||
Net (loss) income from discontinued operations attributable to Mr. Cooper common stockholders | $ | (12) | $ | (2) | $ | 16 | |||||||||||
Net income | $ | 1,454 | $ | 307 | $ | 270 | |||||||||||
Less: Net income (loss) attributable to non-controlling interests | — | 2 | (4) | ||||||||||||||
Net income attributable to Mr. Cooper | $ | 1,454 | $ | 305 | $ | 274 | |||||||||||
Less: Undistributed earnings attributable to participating stockholders | 8 | 3 | 2 | ||||||||||||||
Less: Premium on retirement of preferred stock | 28 | — | — | ||||||||||||||
Net income attributable to common stockholders | $ | 1,418 | $ | 302 | $ | 272 | |||||||||||
Earnings from continuing operations per common share attributable to Mr. Cooper: | |||||||||||||||||
Basic | $ | 17.39 | $ | 3.33 | $ | 2.81 | |||||||||||
Diluted | $ | 16.67 | $ | 3.22 | $ | 2.78 | |||||||||||
Earnings from discontinued operations per common share attributable to Mr. Cooper: | |||||||||||||||||
Basic | $ | (0.15) | $ | (0.02) | $ | 0.18 | |||||||||||
Diluted | $ | (0.14) | $ | (0.02) | $ | 0.17 | |||||||||||
Earnings per common share attributable to Mr. Cooper: | |||||||||||||||||
Basic | $ | 17.24 | $ | 3.31 | $ | 2.99 | |||||||||||
Diluted | $ | 16.53 | $ | 3.20 | $ | 2.95 | |||||||||||
Weighted average shares of common stock outstanding (in thousands): | |||||||||||||||||
Basic | 82,247 | 91,312 | 91,035 | ||||||||||||||
Dilutive effect of stock awards | 3,067 | 2,343 | 270 | ||||||||||||||
Dilutive effect of participating securities | 492 | 839 | 839 | ||||||||||||||
Diluted | 85,806 | 94,494 | 92,144 |
Successor | Predecessor | |||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Year Ended December 31, 2017 | |||||||||||||
Net income attributable to Successor/Predecessor | $ | 274 | $ | 884 | $ | 154 | $ | 30 | ||||||||
Less: Undistributed earnings attributable to participating stockholders | 2 | 8 | — | — | ||||||||||||
Net income attributable to common stockholders | $ | 272 | $ | 876 | $ | 154 | $ | 30 | ||||||||
Net income per common share attributable to Successor/Predecessor common stockholders: | ||||||||||||||||
Basic | $ | 2.99 | $ | 9.65 | $ | 1.57 | $ | 0.31 | ||||||||
Diluted | $ | 2.95 | $ | 9.54 | $ | 1.55 | $ | 0.30 | ||||||||
Weighted average shares of common stock outstanding (in thousands): | ||||||||||||||||
Basic | 91,035 | 90,813 | 98,046 | 97,696 | ||||||||||||
Dilutive effect of stock awards | 270 | 178 | 1,091 | 1,107 | ||||||||||||
Dilutive effect of participating securities | 839 | 839 | — | — | ||||||||||||
Diluted | 92,144 | 91,830 | 99,137 | 98,803 |
Year Ended December 31, | |||||||||||||||||
Total Income Tax Expense (Benefit) on continuing operations | 2021 | 2020 | 2019 | ||||||||||||||
Current Income Taxes | |||||||||||||||||
Federal | $ | 7 | $ | (3) | $ | 19 | |||||||||||
State | 113 | 92 | 74 | ||||||||||||||
Total current income taxes | 120 | 89 | 93 | ||||||||||||||
Deferred Income Taxes | |||||||||||||||||
Federal | 376 | 87 | (303) | ||||||||||||||
State | (25) | (83) | (68) | ||||||||||||||
Total deferred income taxes | 351 | 4 | (371) | ||||||||||||||
Total income tax expense (benefit) | $ | 471 | $ | 93 | $ | (278) |
Successor | Predecessor | |||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Year Ended December 31, 2017 | |||||||||||||
Current Income Taxes | ||||||||||||||||
Federal | $ | 19 | $ | — | $ | (14 | ) | $ | 52 | |||||||
State | 74 | — | (1 | ) | 7 | |||||||||||
Total current income taxes | 93 | — | (15 | ) | 59 | |||||||||||
Deferred Income Taxes | ||||||||||||||||
Federal | (298 | ) | (1,015 | ) | 54 | (43 | ) | |||||||||
State | (68 | ) | (6 | ) | 9 | (3 | ) | |||||||||
Total deferred income taxes | (366 | ) | (1,021 | ) | 63 | (46 | ) | |||||||||
Total provision for income taxes | $ | (273 | ) | $ | (1,021 | ) | $ | 48 | $ | 13 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
Reconciliation of the Income Tax Provision | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Tax Expense (Benefit) at Federal Statutory Rate | $ | 407 | 21.0 | % | $ | 84 | 21.0 | % | $ | (5) | 21.0 | % | |||||||||||||||||||||||
Effect of: | |||||||||||||||||||||||||||||||||||
State taxes, net of federal benefit | 70 | 3.6 | % | 8 | 1.7 | % | 3 | (17.5) | % | ||||||||||||||||||||||||||
Non-controlling interests | — | — | % | — | — | % | 1 | (3.1) | % | ||||||||||||||||||||||||||
Change in valuation allowance | — | — | % | — | — | % | (285) | 1,172.8 | % | ||||||||||||||||||||||||||
Deferred adjustments | (6) | (0.3) | % | (5) | (1.1) | % | 2 | (9.3) | % | ||||||||||||||||||||||||||
Nondeductible items | 2 | 0.1 | % | 7 | 1.7 | % | 5 | (19.9) | % | ||||||||||||||||||||||||||
Other, net | (2) | (0.1) | % | (1) | (0.3) | % | 1 | (0.8) | % | ||||||||||||||||||||||||||
Total income tax expense (benefit) | $ | 471 | 24.3 | % | $ | 93 | 23.0 | % | $ | (278) | 1,143.2 | % |
Successor | Predecessor | |||||||||||||||||||||||||||
Year Ended December 31, 2019 | Five Months Ended December 31, 2018 | Seven Months Ended July 31, 2018 | Year Ended December 31, 2017 | |||||||||||||||||||||||||
Tax (Benefit) Expense at Federal Statutory Rate | $ | (1 | ) | 21.0 | % | $ | (29 | ) | 21.0 | % | $ | 42 | 21.0 | % | $ | 15 | 35.0 | % | ||||||||||
Effect of: | ||||||||||||||||||||||||||||
State taxes, net of federal benefit | 5 | (141.2 | )% | (6 | ) | 4.2 | % | 8 | 3.8 | % | 1 | 1.9 | % | |||||||||||||||
Non-controlling interests | 1 | (21.1 | )% | — | — | % | — | — | % | — | (0.3 | )% | ||||||||||||||||
Change in valuation allowance | (285 | ) | 8066.4 | % | (990 | ) | 720.0 | % | — | — | % | (1 | ) | (1.2 | )% | |||||||||||||
Deferred adjustments | 2 | (64.1 | )% | 3 | (1.8 | )% | (1 | ) | (0.5 | )% | — | — | % | |||||||||||||||
Nondeductible items | 4 | (136.5 | )% | 1 | (1.0 | )% | 7 | 3.3 | % | 1 | 3.2 | % | ||||||||||||||||
Federal tax reform impact | — | — | % | — | — | % | — | — | % | (5 | ) | (12.6 | )% | |||||||||||||||
Current payable adjustments | — | — | % | — | — | % | (1 | ) | (0.5 | )% | — | — | % | |||||||||||||||
Adjustments related to uncertain tax positions | — | — | % | — | — | % | — | — | % | 1 | 2.4 | % | ||||||||||||||||
Other, net | 1 | (5.7 | )% | — | — | % | (7 | ) | (3.3 | )% | 1 | 0.5 | % | |||||||||||||||
Total income tax (benefit) expense | $ | (273 | ) | 7718.8 | % | $ | (1,021 | ) | 742.4 | % | $ | 48 | 23.8 | % | $ | 13 | 28.9 | % |
Deferred Tax Assets and Liabilities | December 31, 2021 | December 31, 2020 | |||||||||
Deferred Tax Assets | |||||||||||
Effect of: | |||||||||||
Goodwill and intangible assets | $ | 998 | $ | 728 | |||||||
Loss carryforwards (federal, state & capital) | 134 | 558 | |||||||||
Loss reserves | 104 | 115 | |||||||||
Lease liability | 30 | 26 | |||||||||
Accruals | 16 | 24 | |||||||||
Other, net | 20 | 52 | |||||||||
Total deferred tax assets | 1,302 | 1,503 | |||||||||
Deferred Tax Liabilities | |||||||||||
MSR amortization and mark-to-market, net | (240) | (117) | |||||||||
Right-of-use assets | (27) | (23) | |||||||||
Depreciation and amortization, net | (19) | (13) | |||||||||
Prepaid assets | (2) | (2) | |||||||||
Other, net | (14) | — | |||||||||
Total deferred tax liabilities | (302) | (155) | |||||||||
Valuation allowance | (9) | (9) | |||||||||
Deferred tax assets, net | $ | 991 | $ | 1,339 |
Successor | |||||||
December 31, 2019 | December 31, 2018 | ||||||
Deferred Tax Assets | |||||||
Effect of: | |||||||
Loss carryforwards (federal, state & capital) | $ | 998 | $ | 1,334 | |||
Goodwill and intangible assets | 364 | 4 | |||||
Loss reserves | 108 | 69 | |||||
Reverse mortgage interests | 44 | 70 | |||||
Lease liability | 32 | 1 | |||||
Accruals | 16 | 14 | |||||
Restricted share-based compensation | 3 | 1 | |||||
Partnership interests | 1 | 7 | |||||
Excess interest expense | — | 10 | |||||
Other, net | 12 | 5 | |||||
Total deferred tax assets | 1,578 | 1,515 | |||||
Deferred Tax Liabilities | |||||||
MSR amortization and mark-to-market, net | (181 | ) | (243 | ) | |||
Right-of-use assets | (29 | ) | — | ||||
Depreciation and amortization, net | (12 | ) | (12 | ) | |||
Prepaid assets | (2 | ) | (1 | ) | |||
Total deferred tax liabilities | (224 | ) | (256 | ) | |||
Valuation allowance | (9 | ) | (295 | ) | |||
Net deferred tax assets | $ | 1,345 | $ | 964 |
Predecessor | |||||||
Unrecognized Tax Benefits | Seven Months Ended July 31, 2018 | Year Ended December 31, 2017 | |||||
Balance - beginning of period | $ | 17 | $ | — | |||
Increases in tax positions of current year | — | 1 | |||||
(Decreases)/Increases in tax positions of prior years | (17 | ) | 20 | ||||
Settlements | — | (4 | ) | ||||
Balance - end of period | $ | — | $ | 17 |
December 31, 2021 | |||||||||||||||||||||||
Total Fair Value | Recurring Fair Value Measurements | ||||||||||||||||||||||
Fair Value - Recurring Basis | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Mortgage loans held for sale | $ | 4,381 | $ | — | $ | 4,381 | $ | — | |||||||||||||||
Forward mortgage servicing rights | 4,223 | — | — | 4,223 | |||||||||||||||||||
Equity securities | 63 | 9 | — | 54 | |||||||||||||||||||
Derivative financial instruments: | |||||||||||||||||||||||
IRLCs | 134 | — | — | 134 | |||||||||||||||||||
Forward MBS trades | 7 | — | 7 | — | |||||||||||||||||||
LPCs | 3 | — | — | 3 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative financial instruments: | |||||||||||||||||||||||
Forward MBS trades | 8 | — | 8 | — | |||||||||||||||||||
LPCs | 2 | — | — | 2 | |||||||||||||||||||
Swap futures | 6 | — | 6 | — | |||||||||||||||||||
Mortgage servicing rights financing | 10 | — | — | 10 | |||||||||||||||||||
Excess spread financing | 768 | — | — | 768 |
Successor | |||||||||||||||
December 31, 2019 | |||||||||||||||
Total Fair Value | Recurring Fair Value Measurements | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | |||||||||||||||
Mortgage loans held for sale | $ | 4,077.0 | $ | — | $ | 4,077.0 | $ | — | |||||||
Mortgage loans held for investment | — | — | — | — | |||||||||||
Forward mortgage servicing rights | 3,496.4 | — | — | 3,496.4 | |||||||||||
Derivative financial instruments: | |||||||||||||||
IRLCs | 134.7 | — | 134.7 | — | |||||||||||
Forward MBS trades | 6.5 | — | 6.5 | — | |||||||||||
LPCs | 12.2 | — | 12.2 | — | |||||||||||
Eurodollar futures(1) | — | — | — | — | |||||||||||
Total assets | $ | 7,726.8 | $ | — | $ | 4,230.4 | $ | 3,496.4 | |||||||
Liabilities | |||||||||||||||
Derivative financial instruments: | |||||||||||||||
IRLCs(1) | $ | — | $ | — | $ | — | $ | — | |||||||
Forward MBS trades | 12.3 | — | 12.3 | — | |||||||||||
LPCs | 2.6 | — | 2.6 | — | |||||||||||
Eurodollar futures(1) | — | — | — | — | |||||||||||
Mortgage servicing rights financing | 37.4 | — | — | 37.4 | |||||||||||
Excess spread financing | 1,310.8 | — | — | 1,310.8 | |||||||||||
Total liabilities | $ | 1,363.1 | $ | — | $ | 14.9 | $ | 1,348.2 |
December 31, 2020 | |||||||||||||||||||||||
Total Fair Value | Recurring Fair Value Measurements | ||||||||||||||||||||||
Fair Value - Recurring Basis | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Mortgage loans held for sale | $ | 5,720 | $ | — | $ | 5,720 | $ | — | |||||||||||||||
Forward mortgage servicing rights | 2,703 | — | — | 2,703 | |||||||||||||||||||
Derivative financial instruments: | |||||||||||||||||||||||
IRLCs | 414 | — | — | 414 | |||||||||||||||||||
Forward MBS trades | 37 | — | 37 | — | |||||||||||||||||||
LPCs | 38 | — | — | 38 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative financial instruments: | |||||||||||||||||||||||
Forward MBS trades | 156 | — | 156 | — | |||||||||||||||||||
LPCs | 1 | — | — | 1 | |||||||||||||||||||
Mortgage servicing rights financing | 33 | — | — | 33 | |||||||||||||||||||
Excess spread financing | 934 | — | — | 934 |
Successor | |||||||||||||||
December 31, 2018 | |||||||||||||||
Total Fair Value | Recurring Fair Value Measurements | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | |||||||||||||||
Mortgage loans held for sale | $ | 1,630.8 | $ | — | $ | 1,630.8 | $ | — | |||||||
Mortgage loans held for investment | 119.1 | — | — | 119.1 | |||||||||||
Forward mortgage servicing rights | 3,665.4 | — | — | 3,665.4 | |||||||||||
Derivative financial instruments: | |||||||||||||||
IRLCs | 47.6 | — | 47.6 | — | |||||||||||
Forward MBS trades | 0.1 | — | 0.1 | — | |||||||||||
LPCs | 1.7 | — | 1.7 | — | |||||||||||
Eurodollar futures(1) | — | — | — | — | |||||||||||
Total assets | $ | 5,464.7 | $ | — | $ | 1,680.2 | $ | 3,784.5 | |||||||
Liabilities | |||||||||||||||
Derivative financial instruments: | |||||||||||||||
Forward MBS trades | $ | 19.3 | $ | — | $ | 19.3 | $ | — | |||||||
LPCs | 0.4 | — | 0.4 | — | |||||||||||
Eurodollar futures(1) | — | — | — | — | |||||||||||
Mortgage servicing rights financing | 31.7 | — | — | 31.7 | |||||||||||
Excess spread financing | 1,184.4 | — | — | 1,184.4 | |||||||||||
Total liabilities | $ | 1,235.8 | $ | — | $ | 19.7 | $ | 1,216.1 |
Year Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||||||||||||||
Fair Value - Level 3 Assets and Liabilities | Forward Mortgage Servicing Rights | Equity Securities | IRLCs | LPCs | Excess Spread Financing | Mortgage Servicing Rights Financing | |||||||||||||||||||||||||||||
Balance - beginning of year | $ | 2,703 | $ | — | $ | 414 | $ | 38 | $ | 934 | $ | 33 | |||||||||||||||||||||||
Changes in fair value included in earnings | (506) | (1) | (280) | (35) | (10) | (23) | |||||||||||||||||||||||||||||
Purchases | 948 | — | — | — | — | — | |||||||||||||||||||||||||||||
Equity consideration received | — | 55 | — | — | — | — | |||||||||||||||||||||||||||||
Issuances | 1,077 | — | — | — | — | — | |||||||||||||||||||||||||||||
Sales | (55) | — | — | — | — | — | |||||||||||||||||||||||||||||
Settlements and repayments | — | — | — | — | (156) | — | |||||||||||||||||||||||||||||
Other changes | 56 | — | — | — | — | — | |||||||||||||||||||||||||||||
Balance - end of year | $ | 4,223 | $ | 54 | $ | 134 | $ | 3 | $ | 768 | $ | 10 |
Successor | |||||||||||||||
Assets | Liabilities | ||||||||||||||
Year Ended December 31, 2019 | Mortgage servicing rights | Mortgage loans held for investment | Excess spread financing | Mortgage servicing rights financing | |||||||||||
Balance - beginning of period | $ | 3,665 | $ | 119 | $ | 1,184 | $ | 32 | |||||||
Total gains or losses included in earnings | (1,053 | ) | 3 | (169 | ) | 5 | |||||||||
Payments received from borrowers | — | (11 | ) | — | — | ||||||||||
Purchases, issuances, sales, repayments and settlements | |||||||||||||||
Purchases | 858 | — | — | — | |||||||||||
Issuances | 434 | — | 542 | — | |||||||||||
Sales | (408 | ) | (94 | ) | — | — | |||||||||
Repayments | — | — | (27 | ) | — | ||||||||||
Settlements | — | — | (219 | ) | — | ||||||||||
Transfers to mortgage loans held for sale | — | (12 | ) | — | — | ||||||||||
Transfers to real estate owned | — | (5 | ) | — | — | ||||||||||
Balance - end of period | $ | 3,496 | $ | — | $ | 1,311 | $ | 37 |
Year Ended December 31, 2020 | |||||||||||||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||||||||||||
Fair Value - Level 3 Assets and Liabilities | Forward Mortgage Servicing Rights | IRLCs | LPCs | Excess Spread Financing | Mortgage Servicing Rights Financing | ||||||||||||||||||||||||
Balance - beginning of year | $ | 3,496 | $ | 135 | $ | 12 | $ | 1,311 | $ | 37 | |||||||||||||||||||
Changes in fair value included in earnings | (1,667) | 279 | 26 | (194) | (4) | ||||||||||||||||||||||||
Purchases | 124 | — | — | — | — | ||||||||||||||||||||||||
Issuances | 687 | — | — | 24 | — | ||||||||||||||||||||||||
Sales | (9) | — | — | — | — | ||||||||||||||||||||||||
Settlements and repayments | — | — | — | (207) | — | ||||||||||||||||||||||||
Other changes | 72 | — | — | — | — | ||||||||||||||||||||||||
Balance - end of year | $ | 2,703 | $ | 414 | $ | 38 | $ | 934 | $ | 33 |
Successor | |||||||||||||||
Assets | Liabilities | ||||||||||||||
Five Months Ended December 31, 2018 | Mortgage servicing rights | Mortgage loans held for investment | Excess spread financing | Mortgage servicing rights financing | |||||||||||
Balance - beginning of period | $ | 3,413 | $ | 125 | $ | 1,039 | $ | 26 | |||||||
Total gains or losses included in earnings | (236 | ) | (1 | ) | 5 | 6 | |||||||||
Payments received from borrowers | — | (5 | ) | — | — | ||||||||||
Purchases, issuances, sales, repayments and settlements | |||||||||||||||
Purchases | 479 | — | — | — | |||||||||||
Issuances | 120 | — | 255 | — | |||||||||||
Sales | (111 | ) | — | — | — | ||||||||||
Repayments | — | — | (38 | ) | — | ||||||||||
Settlements | — | — | (77 | ) | — | ||||||||||
Balance - end of period | $ | 3,665 | $ | 119 | $ | 1,184 | $ | 32 |
Predecessor | |||||||||||
Assets | Liabilities | ||||||||||
Seven Months Ended July 31, 2018 | Mortgage servicing rights | Excess spread financing | Mortgage servicing rights financing | ||||||||
Balance - beginning of period | $ | 2,937 | $ | 996 | $ | 10 | |||||
Total gains or losses included in earnings | 166 | 81 | 16 | ||||||||
Purchases, issuances, sales, repayments and settlements | |||||||||||
Purchases | 144 | — | — | ||||||||
Issuances | 162 | 70 | — | ||||||||
Sales | 4 | — | — | ||||||||
Repayments | — | (3 | ) | — | |||||||
Settlements | — | (105 | ) | — | |||||||
Balance - end of period | $ | 3,413 | $ | 1,039 | $ | 26 |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||||||||||||
Level 3 Inputs | Min | Max | Min | Max | |||||||||||||||||||||||||||||||
Forward MSR | |||||||||||||||||||||||||||||||||||
Discount rate | 9.5 | % | 13.7 | % | 10.9 | % | 8.2 | % | 12.0 | % | 9.4 | % | |||||||||||||||||||||||
Prepayment speed | 11.7 | % | 16.4 | % | 13.0 | % | 14.2 | % | 21.3 | % | 15.4 | % | |||||||||||||||||||||||
Cost to service per loan(1) | $ | 59 | $ | 168 | $ | 77 | $ | 66 | $ | 257 | $ | 98 | |||||||||||||||||||||||
Average life(2) | 5.8 years | 5.0 years | |||||||||||||||||||||||||||||||||
IRLCs | |||||||||||||||||||||||||||||||||||
Value of servicing (basis points per loan) | (0.7) | 2.4 | 1.4 | (1.0) | 2.2 | 1.2 | |||||||||||||||||||||||||||||
Excess spread financing | |||||||||||||||||||||||||||||||||||
Discount rate | 9.5 | % | 13.8 | % | 11.2 | % | 9.9 | % | 15.7 | % | 12.2 | % | |||||||||||||||||||||||
Prepayment speed | 12.8 | % | 15.2 | % | 13.4 | % | 13.9 | % | 15.0 | % | 14.4 | % | |||||||||||||||||||||||
Average life(2) | 5.4 years | 5.1 years | |||||||||||||||||||||||||||||||||
Mortgage servicing rights financing | |||||||||||||||||||||||||||||||||||
Advance financing and counterparty fee rates | 4.5 | % | 7.9 | % | 6.5 | % | 4.6 | % | 8.5 | % | 7.5 | % | |||||||||||||||||||||||
Annual advance recovery rates | 19.2 | % | 23.0 | % | 21.3 | % | 18.3 | % | 22.0 | % | 19.9 | % |
December 31, 2021 | |||||||||||||||||||||||
Carrying Amount | Fair Value | ||||||||||||||||||||||
Financial Instruments | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Financial assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 895 | $ | 895 | $ | — | $ | — | |||||||||||||||
Restricted cash | 146 | 146 | — | — | |||||||||||||||||||
Advances and other receivables, net | 1,228 | — | — | 1,228 | |||||||||||||||||||
Loans subject to repurchase from Ginnie Mae | 1,496 | — | 1,496 | — | |||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||
Unsecured senior notes, net | 2,670 | 2,737 | — | — | |||||||||||||||||||
Advance and warehouse facilities, net | 4,997 | — | 5,009 | — | |||||||||||||||||||
Liability for loans subject to repurchase from Ginnie Mae | 1,496 | — | 1,496 | — |
Successor | |||||||||||||||
December 31, 2019 | |||||||||||||||
Carrying Amount | Fair Value | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets | |||||||||||||||
Cash and cash equivalents | $ | 329 | $ | 329 | $ | — | $ | — | |||||||
Restricted cash | 283 | 283 | — | — | |||||||||||
Advances and other receivables, net | 988 | — | — | 988 | |||||||||||
Reverse mortgage interests, net | 6,279 | — | — | 6,318 | |||||||||||
Mortgage loans held for sale | 4,077 | — | 4,077 | — | |||||||||||
Mortgage loans held for investment | — | — | — | — | |||||||||||
Derivative financial instruments | 153 | — | 153 | — | |||||||||||
Financial liabilities | |||||||||||||||
Unsecured senior notes(1) | 2,366 | 2,505 | — | — | |||||||||||
Advance facilities | 422 | — | 422 | — | |||||||||||
Warehouse facilities(1) | 4,575 | — | 4,575 | — | |||||||||||
Mortgage servicing rights financing liability | 37 | — | — | 37 | |||||||||||
Excess spread financing | 1,311 | — | — | 1,311 | |||||||||||
Derivative financial instruments | 15 | — | 15 | — | |||||||||||
Participating interest financing(1) | 4,299 | — | — | 4,299 | |||||||||||
HECM Securitization (HMBS)(1) | |||||||||||||||
Trust 2019-2 | 331 | — | — | 331 | |||||||||||
Trust 2019-1 | 300 | — | — | 300 | |||||||||||
Trust 2018-3 | 208 | — | — | 208 | |||||||||||
Trust 2018-2 | 148 | — | — | 148 |
December 31, 2020 | |||||||||||||||||||||||
Carrying Amount | Fair Value | ||||||||||||||||||||||
Financial Instruments | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Financial assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 695 | $ | 695 | $ | — | $ | — | |||||||||||||||
Restricted cash | 135 | 135 | — | — | |||||||||||||||||||
Advances and other receivables, net | 940 | — | — | 940 | |||||||||||||||||||
Loans subject to repurchase from Ginnie Mae | 6,159 | — | 6,159 | — | |||||||||||||||||||
Financial liabilities | |||||||||||||||||||||||
Unsecured senior notes, net | 2,074 | 2,208 | — | — | |||||||||||||||||||
Advance and warehouse facilities, net | 6,258 | — | 6,269 | — | |||||||||||||||||||
Liability for loans subject to repurchase from Ginnie Mae | 6,159 | — | 6,159 | — |
Successor | |||||||||||||||
December 31, 2018 | |||||||||||||||
Carrying Amount | Fair Value | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets | |||||||||||||||
Cash and cash equivalents | $ | 242 | $ | 242 | $ | — | $ | — | |||||||
Restricted cash | 319 | 319 | — | — | |||||||||||
Advances and other receivables, net | 1,194 | — | — | 1,194 | |||||||||||
Reverse mortgage interests, net | 7,934 | — | — | 7,942 | |||||||||||
Mortgage loans held for sale | 1,631 | — | 1,631 | — | |||||||||||
Mortgage loans held for investment | 119 | — | — | 119 | |||||||||||
Derivative financial instruments | 49 | — | 49 | — | |||||||||||
Financial liabilities | |||||||||||||||
Unsecured senior notes(1) | 2,459 | 2,451 | — | — | |||||||||||
Advance facilities(1) | 595 | — | 595 | — | |||||||||||
Warehouse facilities(1) | 2,349 | — | 2,349 | — | |||||||||||
Mortgage servicing rights financing liability | 32 | — | — | 32 | |||||||||||
Excess spread financing | 1,184 | — | — | 1,184 | |||||||||||
Derivative financial instruments | 20 | — | 20 | — | |||||||||||
Participating interest financing(1) | 5,675 | — | — | 5,672 | |||||||||||
HECM Securitization (HMBS)(1) | |||||||||||||||
Trust 2018-3 | 326 | — | — | 326 | |||||||||||
Trust 2018-2 | 250 | — | — | 249 | |||||||||||
Trust 2018-1 | 284 | — | — | 284 | |||||||||||
Trust 2017-2 | 231 | — | — | 230 | |||||||||||
Nonrecourse debt - legacy assets | 29 | — | — | 28 |
Year Ended December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Successor | ||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing | Originations | Xome | Elimination | Total Operating Segments | Corporate/ Other | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||
Financial Information by Segment | Financial Information by Segment | Servicing | Originations | Corporate/ Other | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||
Service related, net | $ | 408 | $ | 80 | $ | 422 | $ | (3 | ) | $ | 907 | $ | 2 | $ | 909 | Service related, net | $ | 705 | $ | 176 | $ | 186 | $ | 1,067 | ||||||||||||||||||||||||||
Net gain on mortgage loans held for sale | 124 | 963 | — | — | 1,087 | 11 | 1,098 | Net gain on mortgage loans held for sale | 568 | 1,683 | — | 2,251 | ||||||||||||||||||||||||||||||||||||||
Total revenues | 532 | 1,043 | 422 | (3 | ) | 1,994 | 13 | 2,007 | Total revenues | 1,273 | 1,859 | 186 | 3,318 | |||||||||||||||||||||||||||||||||||||
Total expenses | 690 | 568 | 398 | (3 | ) | 1,653 | 198 | 1,851 | Total expenses | 502 | 852 | 308 | 1,662 | |||||||||||||||||||||||||||||||||||||
Other income (expenses), net: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | 500 | 98 | — | — | 598 | 7 | 605 | Interest income | 129 | 102 | — | 231 | ||||||||||||||||||||||||||||||||||||||
Interest expense | (469 | ) | (98 | ) | — | — | (567 | ) | (212 | ) | (779 | ) | Interest expense | (262) | (88) | (128) | (478) | |||||||||||||||||||||||||||||||||
Other income (expenses), net | 4 | 4 | 14 | — | 22 | (7 | ) | 15 | Other income (expenses), net | — | — | 528 | 528 | |||||||||||||||||||||||||||||||||||||
Total other income (expenses), net | 35 | 4 | 14 | — | 53 | (212 | ) | (159 | ) | |||||||||||||||||||||||||||||||||||||||||
(Loss) income before income tax (benefit) expense | $ | (123 | ) | $ | 479 | $ | 38 | $ | — | $ | 394 | $ | (397 | ) | $ | (3 | ) | |||||||||||||||||||||||||||||||||
Depreciation and amortization for property and equipment and intangible assets | $ | 19 | $ | 18 | $ | 14 | $ | — | $ | 51 | $ | 40 | $ | 91 | ||||||||||||||||||||||||||||||||||||
Total other (expenses) income, net | Total other (expenses) income, net | (133) | 14 | 400 | 281 | |||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations before income tax expense | Income from continuing operations before income tax expense | $ | 638 | $ | 1,021 | $ | 278 | $ | 1,937 | |||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization for property and equipment and intangible assets from continuing operations | Depreciation and amortization for property and equipment and intangible assets from continuing operations | $ | 32 | $ | 24 | $ | 1 | $ | 57 | |||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 11,044 | $ | 9,257 | $ | 526 | $ | (4,826 | ) | $ | 16,001 | $ | 2,304 | $ | 18,305 | Total assets | $ | 8,733 | $ | 3,143 | $ | 2,328 | $ | 14,204 |
Successor | |||||||||||||||||||||||||||
Five Months Ended December 31, 2018 | |||||||||||||||||||||||||||
Servicing | Originations | Xome | Elimination | Total Operating Segments | Corporate/ Other | Consolidated | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Service related, net | $ | 217 | $ | 24 | $ | 177 | $ | — | $ | 418 | $ | — | $ | 418 | |||||||||||||
Net gain on mortgage loans held for sale | 19 | 157 | — | — | 176 | — | 176 | ||||||||||||||||||||
Total revenues | 236 | 181 | 177 | — | 594 | — | 594 | ||||||||||||||||||||
Total expenses | 303 | 155 | 178 | — | 636 | 71 | 707 | ||||||||||||||||||||
Other income (expenses), net: | |||||||||||||||||||||||||||
Interest income | 222 | 27 | — | — | 249 | 7 | 256 | ||||||||||||||||||||
Interest expense | (173 | ) | (26 | ) | (1 | ) | — | (200 | ) | (93 | ) | (293 | ) | ||||||||||||||
Other income, net | 6 | 5 | 1 | — | 12 | 1 | 13 | ||||||||||||||||||||
Total other income (expenses), net | 55 | 6 | — | — | 61 | (85 | ) | (24 | ) | ||||||||||||||||||
(Loss) income before income tax (benefit) expense | $ | (12 | ) | $ | 32 | $ | (1 | ) | $ | — | $ | 19 | $ | (156 | ) | $ | (137 | ) | |||||||||
Depreciation and amortization for property and equipment and intangible assets | $ | 9 | $ | 5 | $ | 5 | $ | — | $ | 19 | $ | 20 | $ | 39 | |||||||||||||
Total assets | $ | 13,485 | $ | 4,866 | $ | 493 | $ | (3,772 | ) | $ | 15,072 | $ | 1,901 | $ | 16,973 |
Year Ended December 31, 2020 | |||||||||||||||||||||||
Financial Information by Segment | Servicing | Originations | Corporate/ Other | Consolidated | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
Service related, net | $ | (159) | $ | 105 | $ | 433 | $ | 379 | |||||||||||||||
Net gain on mortgage loans held for sale | 222 | 2,088 | — | 2,310 | |||||||||||||||||||
Total revenues | 63 | 2,193 | 433 | 2,689 | |||||||||||||||||||
Total expenses | 491 | 746 | 545 | 1,782 | |||||||||||||||||||
Interest income | 61 | 95 | 2 | 158 | |||||||||||||||||||
Interest expense | (268) | (78) | (182) | (528) | |||||||||||||||||||
Other (expenses) income, net | — | — | (135) | (135) | |||||||||||||||||||
Total other (expenses) income, net | (207) | 17 | (315) | (505) | |||||||||||||||||||
(Loss) income from continuing operations before income tax (benefit) expense | $ | (635) | $ | 1,464 | $ | (427) | $ | 402 | |||||||||||||||
Depreciation and amortization for property and equipment and intangible assets from continuing operations | $ | 20 | $ | 18 | $ | 35 | $ | 73 | |||||||||||||||
Total assets | $ | 16,173 | $ | 5,447 | $ | 2,545 | $ | 24,165 |
Year Ended December 31, 2019 | |||||||||||||||||||||||
Financial Information by Segment | Servicing | Originations | Corporate/ Other | Consolidated | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
Service related, net | $ | 328 | $ | 80 | $ | 421 | $ | 829 | |||||||||||||||
Net gain on mortgage loans held for sale | 124 | 963 | 11 | 1,098 | |||||||||||||||||||
Total revenues | 452 | 1,043 | 432 | 1,927 | |||||||||||||||||||
Total expenses | 554 | 568 | 592 | 1,714 | |||||||||||||||||||
Interest income | 186 | 98 | 7 | 291 | |||||||||||||||||||
Interest expense | (233) | (98) | (212) | (543) | |||||||||||||||||||
Other income, net | 4 | 4 | 7 | 15 | |||||||||||||||||||
Total other (expenses) income, net | (43) | 4 | (198) | (237) | |||||||||||||||||||
(Loss) income from continuing operations before income tax (benefit) expense | $ | (145) | $ | 479 | $ | (358) | $ | (24) | |||||||||||||||
Depreciation and amortization for property and equipment and intangible assets from continuing operations | $ | 19 | $ | 18 | $ | 53 | $ | 90 | |||||||||||||||
Total assets | $ | 11,743 | $ | 4,313 | $ | 2,249 | $ | 18,305 |
Predecessor | |||||||||||||||||||||||||||
Seven Months Ended July 31, 2018 | |||||||||||||||||||||||||||
Servicing | Originations | Xome | Elimination/ Reclassification(1) | Total Operating Segments | Corporate/ Other | Consolidated | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Service related, net | $ | 740 | $ | 36 | $ | 149 | $ | (25 | ) | $ | 900 | $ | 1 | $ | 901 | ||||||||||||
Net gain on mortgage loans held for sale | — | 270 | — | 25 | 295 | — | 295 | ||||||||||||||||||||
Total revenues | 740 | 306 | 149 | — | 1,195 | 1 | 1,196 | ||||||||||||||||||||
Total expenses | 474 | 245 | 123 | — | 842 | 103 | 945 | ||||||||||||||||||||
Other income (expenses), net: | |||||||||||||||||||||||||||
Interest income | 288 | 38 | — | — | 326 | 7 | 333 | ||||||||||||||||||||
Interest expense | (268 | ) | (37 | ) | — | — | (305 | ) | (83 | ) | (388 | ) | |||||||||||||||
Other (expenses) income, net | (1 | ) | — | 9 | — | 8 | (2 | ) | 6 | ||||||||||||||||||
Total other income (expenses), net | 19 | 1 | 9 | — | 29 | (78 | ) | (49 | ) | ||||||||||||||||||
Income (loss) before income tax expense (benefit) | $ | 285 | $ | 62 | $ | 35 | $ | — | $ | 382 | $ | (180 | ) | $ | 202 | ||||||||||||
Depreciation and amortization for property and equipment and intangible assets | $ | 15 | $ | 7 | $ | 7 | $ | — | $ | 29 | $ | 4 | $ | 33 | |||||||||||||
Total assets | $ | 14,578 | $ | 4,701 | $ | 425 | $ | (3,591 | ) | $ | 16,113 | $ | 913 | $ | 17,026 |
Predecessor | |||||||||||||||||||||||||||
Year Ended December 31, 2017 | |||||||||||||||||||||||||||
Servicing(1) | Originations | Xome | Elimination/ Reclassification(1) | Total Operating Segments | Corporate/ Other | Consolidated | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Service related, net | $ | 766 | $ | 63 | $ | 291 | $ | (79 | ) | $ | 1,041 | $ | 2 | $ | 1,043 | ||||||||||||
Net gain on mortgage loans held for sale | — | 528 | — | 79 | 607 | — | 607 | ||||||||||||||||||||
Total revenues | 766 | 591 | 291 | — | 1,648 | 2 | 1,650 | ||||||||||||||||||||
Total expenses | 691 | 439 | 247 | — | 1,377 | 98 | 1,475 | ||||||||||||||||||||
Other income (expenses), net: | |||||||||||||||||||||||||||
Interest income | 527 | 55 | — | — | 582 | 15 | 597 | ||||||||||||||||||||
Interest expense | (523 | ) | (54 | ) | — | — | (577 | ) | (154 | ) | (731 | ) | |||||||||||||||
Other (expenses) income, net | (3 | ) | — | 9 | — | 6 | (3 | ) | 3 | ||||||||||||||||||
Total other income (expenses), net | 1 | 1 | 9 | — | 11 | (142 | ) | (131 | ) | ||||||||||||||||||
Income (loss) before income tax expense (benefit) | $ | 76 | $ | 153 | $ | 53 | $ | — | $ | 282 | $ | (238 | ) | $ | 44 | ||||||||||||
Depreciation and amortization for property and equipment and intangible assets | $ | 23 | $ | 10 | $ | 14 | $ | — | $ | 47 | $ | 12 | $ | 59 | |||||||||||||
Total assets | $ | 15,006 | $ | 4,935 | $ | 393 | $ | (3,117 | ) | $ | 17,217 | $ | 819 | $ | 18,036 |
MR. COOPER GROUP INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2019 | |||||||||||||||||||||||
Successor | |||||||||||||||||||||||
Mr. Cooper | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 287 | $ | 1 | $ | 41 | $ | — | $ | 329 | |||||||||||
Restricted cash | — | 175 | — | 108 | — | 283 | |||||||||||||||||
Mortgage servicing rights | — | 3,478 | — | 24 | — | 3,502 | |||||||||||||||||
Advances and other receivables, net | — | 988 | — | — | — | 988 | |||||||||||||||||
Reverse mortgage interests, net | — | 5,312 | — | 967 | — | 6,279 | |||||||||||||||||
Mortgage loans held for sale at fair value | — | 4,077 | — | — | — | 4,077 | |||||||||||||||||
Property and equipment, net | — | 92 | — | 20 | — | 112 | |||||||||||||||||
Deferred tax assets, net | 1,273 | 70 | — | 2 | — | 1,345 | |||||||||||||||||
Other assets | — | 1,279 | 215 | 751 | (855 | ) | 1,390 | ||||||||||||||||
Investment in subsidiaries | 2,828 | 698 | — | — | (3,526 | ) | — | ||||||||||||||||
Total assets | $ | 4,101 | $ | 16,456 | $ | 216 | $ | 1,913 | $ | (4,381 | ) | $ | 18,305 | ||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||||
Unsecured senior notes, net | $ | 1,667 | $ | 699 | $ | — | $ | — | $ | — | $ | 2,366 | |||||||||||
Advance facilities, net | — | 63 | — | 359 | — | 422 | |||||||||||||||||
Warehouse facilities, net | — | 4,575 | — | — | — | 4,575 | |||||||||||||||||
Payables and other liabilities | 63 | 1,882 | 1 | 70 | — | 2,016 | |||||||||||||||||
MSR related liabilities - nonrecourse at fair value | — | 1,334 | — | 14 | — | 1,348 | |||||||||||||||||
Mortgage servicing liabilities | — | 61 | — | — | — | 61 | |||||||||||||||||
Other nonrecourse debt, net | — | 4,299 | — | 987 | — | 5,286 | |||||||||||||||||
Payables to affiliates | 140 | 715 | — | — | (855 | ) | — | ||||||||||||||||
Total liabilities | 1,870 | 13,628 | 1 | 1,430 | (855 | ) | 16,074 | ||||||||||||||||
Total stockholders’ equity | 2,231 | 2,828 | 215 | 483 | (3,526 | ) | 2,231 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 4,101 | $ | 16,456 | $ | 216 | $ | 1,913 | $ | (4,381 | ) | $ | 18,305 |
MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2019 | |||||||||||||||||||||||
Successor | |||||||||||||||||||||||
Mr. Cooper | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Service related, net | $ | — | $ | 451 | $ | 22 | $ | 436 | $ | — | $ | 909 | |||||||||||
Net gain on mortgage loans held for sale | — | 1,087 | — | 11 | — | 1,098 | |||||||||||||||||
Total revenues | — | 1,538 | 22 | 447 | — | 2,007 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Salaries, wages benefits | — | 794 | 5 | 158 | — | 957 | |||||||||||||||||
General and administrative | — | 651 | 2 | 241 | — | 894 | |||||||||||||||||
Total expenses | — | 1,445 | 7 | 399 | — | 1,851 | |||||||||||||||||
Other income (expenses), net: | |||||||||||||||||||||||
Interest income | — | 525 | — | 80 | — | 605 | |||||||||||||||||
Interest expense | (153 | ) | (566 | ) | — | (60 | ) | — | (779 | ) | |||||||||||||
Other income (expenses), net | — | 1 | (15 | ) | 29 | — | 15 | ||||||||||||||||
Gain (loss) from subsidiaries | 142 | 98 | — | — | (240 | ) | — | ||||||||||||||||
Total other income (expenses), net | (11 | ) | 58 | (15 | ) | 49 | (240 | ) | (159 | ) | |||||||||||||
(Loss) income before income tax expense | (11 | ) | 151 | — | 97 | (240 | ) | (3 | ) | ||||||||||||||
Less: Income tax (benefit) expense | (285 | ) | 13 | — | (1 | ) | — | (273 | ) | ||||||||||||||
Net income (loss) | 274 | 138 | — | 98 | (240 | ) | 270 | ||||||||||||||||
Less: Net loss attributable to non-controlling interests | — | (4 | ) | — | — | — | (4 | ) | |||||||||||||||
Net income (loss) attributable to Mr. Cooper | $ | 274 | $ | 142 | $ | — | $ | 98 | $ | (240 | ) | $ | 274 |
MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2019 | |||||||||||||||||||||||
Successor | |||||||||||||||||||||||
Mr. Cooper | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Operating Activities | |||||||||||||||||||||||
Net income (loss) | $ | 274 | $ | 138 | $ | — | $ | 98 | $ | (240 | ) | $ | 270 | ||||||||||
Adjustment to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||||||||||||
Deferred tax benefit | (286 | ) | (77 | ) | — | (3 | ) | — | (366 | ) | |||||||||||||
(Gain) loss from subsidiaries | (142 | ) | (98 | ) | — | — | 240 | — | |||||||||||||||
Net gain on mortgage loans held for sale | — | (1,087 | ) | — | (11 | ) | — | (1,098 | ) | ||||||||||||||
Interest income on reverse mortgage loans | — | (264 | ) | — | (43 | ) | — | (307 | ) | ||||||||||||||
Loss on sale of assets | — | 2 | — | — | — | 2 | |||||||||||||||||
Provision for servicing reserves | — | 66 | — | — | — | 66 | |||||||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | — | 997 | — | 8 | — | 1,005 | |||||||||||||||||
Fair value changes in excess spread financing | — | (164 | ) | — | (5 | ) | — | (169 | ) | ||||||||||||||
Fair value changes in mortgage servicing rights financing liability | — | 5 | — | — | — | 5 | |||||||||||||||||
Fair value changes in mortgage loans held for investment | — | — | — | (3 | ) | — | (3 | ) | |||||||||||||||
Amortization of premiums, net of discount accretion | 7 | (18 | ) | — | (21 | ) | — | (32 | ) | ||||||||||||||
Depreciation and amortization for property and equipment and intangible assets | — | 75 | — | 16 | — | 91 | |||||||||||||||||
Share-based compensation | — | 16 | — | 2 | — | 18 | |||||||||||||||||
Other loss | — | 3 | — | 8 | — | 11 | |||||||||||||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations | — | (2,895 | ) | — | — | — | (2,895 | ) | |||||||||||||||
Mortgage loans originated and purchased for sale, net of fees | — | (40,269 | ) | — | 12 | — | (40,257 | ) | |||||||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | — | 41,809 | — | 139 | — | 41,948 | |||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||
Advances and other receivables | — | 228 | — | — | — | 228 | |||||||||||||||||
Reverse mortgage interests | — | 2,035 | — | 157 | — | 2,192 | |||||||||||||||||
Other assets | 147 | 11 | — | (80 | ) | — | 78 | ||||||||||||||||
Payables and other liabilities | — | (70 | ) | — | (15 | ) | — | (85 | ) | ||||||||||||||
Net cash attributable to operating activities | — | 443 | — | 259 | — | 702 |
MR COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2019 (Continued) | |||||||||||||||||||||||
Successor | |||||||||||||||||||||||
Mr. Cooper | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Investing Activities | |||||||||||||||||||||||
Acquisition, net of cash acquired | — | (85 | ) | — | — | — | (85 | ) | |||||||||||||||
Property and equipment additions, net of disposals | — | (34 | ) | — | (15 | ) | — | (49 | ) | ||||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | — | (547 | ) | — | — | — | (547 | ) | |||||||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | — | 343 | — | — | — | 343 | |||||||||||||||||
Net cash attributable to investing activities | — | (323 | ) | — | (15 | ) | — | (338 | ) | ||||||||||||||
Financing Activities | |||||||||||||||||||||||
Increase in warehouse facilities | — | 1,704 | — | — | — | 1,704 | |||||||||||||||||
Decrease in advance facilities | — | (40 | ) | — | (146 | ) | — | (186 | ) | ||||||||||||||
Repayment of notes payable | — | (294 | ) | — | — | — | (294 | ) | |||||||||||||||
Proceeds from issuance of HECM securitizations | — | — | — | 751 | — | 751 | |||||||||||||||||
Proceeds from sale of HECM securitizations | — | — | — | 20 | — | 20 | |||||||||||||||||
Repayment of HECM securitizations | — | — | — | (870 | ) | — | (870 | ) | |||||||||||||||
Proceeds from issuance of participating interest financing | — | 277 | — | — | — | 277 | |||||||||||||||||
Repayment of participating interest financing | — | (1,868 | ) | — | — | — | (1,868 | ) | |||||||||||||||
Proceeds from issuance of excess spread financing | — | 542 | — | — | — | 542 | |||||||||||||||||
Repayment of excess spread financing | — | (27 | ) | — | — | — | (27 | ) | |||||||||||||||
Settlement of excess spread financing | — | (219 | ) | — | — | — | (219 | ) | |||||||||||||||
Repayment of nonrecourse debt - legacy assets | — | — | — | (29 | ) | — | (29 | ) | |||||||||||||||
Redemption and repayment of unsecured senior notes | — | (100 | ) | — | — | — | (100 | ) | |||||||||||||||
Repayment of finance lease liability | — | (4 | ) | — | — | — | (4 | ) | |||||||||||||||
Surrender of shares relating to stock vesting | — | (2 | ) | — | — | — | (2 | ) | |||||||||||||||
Debt financing costs | — | (6 | ) | — | (2 | ) | — | (8 | ) | ||||||||||||||
Net cash attributable to financing activities | — | (37 | ) | — | (276 | ) | — | (313 | ) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | — | 83 | — | (32 | ) | — | 51 | ||||||||||||||||
Cash and cash equivalents - beginning of period | — | 379 | 1 | 181 | — | 561 | |||||||||||||||||
Cash and cash equivalents - end of period | $ | — | $ | 462 | $ | 1 | $ | 149 | $ | — | $ | 612 |
MR. COOPER GROUP INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2018 | |||||||||||||||||||||||
Successor | |||||||||||||||||||||||
Mr. Cooper | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 193 | $ | 1 | $ | 48 | $ | — | $ | 242 | |||||||||||
Restricted cash | — | 186 | — | 133 | — | 319 | |||||||||||||||||
Mortgage servicing rights | — | 3,644 | — | 32 | — | 3,676 | |||||||||||||||||
Advances and other receivables, net | — | 1,194 | — | — | — | 1,194 | |||||||||||||||||
Reverse mortgage interests, net | — | 6,770 | — | 1,164 | — | 7,934 | |||||||||||||||||
Mortgage loans held for sale at fair value | — | 1,631 | — | — | — | 1,631 | |||||||||||||||||
Mortgage loans held for investment, net | — | 1 | — | 118 | — | 119 | |||||||||||||||||
Property and equipment, net | — | 84 | — | 12 | — | 96 | |||||||||||||||||
Deferred tax assets, net | 973 | — | — | (6 | ) | — | 967 | ||||||||||||||||
Other assets | — | 660 | 202 | 621 | (688 | ) | 795 | ||||||||||||||||
Investment in subsidiaries | 2,820 | 601 | — | — | (3,421 | ) | — | ||||||||||||||||
Total assets | $ | 3,793 | $ | 14,964 | $ | 203 | $ | 2,122 | $ | (4,109 | ) | $ | 16,973 | ||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||||
Unsecured senior notes, net | $ | 1,660 | $ | 799 | $ | — | $ | — | $ | — | $ | 2,459 | |||||||||||
Advance facilities, net | — | 90 | — | 505 | — | 595 | |||||||||||||||||
Warehouse facilities, net | — | 2,349 | — | — | — | 2,349 | |||||||||||||||||
Payables and other liabilities | 49 | 1,413 | 1 | 80 | — | 1,543 | |||||||||||||||||
MSR related liabilities - nonrecourse at fair value | — | 1,197 | — | 19 | — | 1,216 | |||||||||||||||||
Mortgage servicing liabilities | — | 71 | — | — | — | 71 | |||||||||||||||||
Other nonrecourse debt, net | — | 5,676 | — | 1,119 | — | 6,795 | |||||||||||||||||
Payables to affiliates | 139 | 549 | — | — | (688 | ) | — | ||||||||||||||||
Total liabilities | 1,848 | 12,144 | 1 | 1,723 | (688 | ) | 15,028 | ||||||||||||||||
Total stockholders’ equity | 1,945 | 2,820 | 202 | 399 | (3,421 | ) | 1,945 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,793 | $ | 14,964 | $ | 203 | $ | 2,122 | $ | (4,109 | ) | $ | 16,973 |
MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS FIVE MONTHS ENDED DECEMBER 31, 2018 | |||||||||||||||||||||||
Successor | |||||||||||||||||||||||
Mr. Cooper | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Service related, net | $ | — | $ | 233 | $ | 9 | $ | 176 | $ | — | $ | 418 | |||||||||||
Net gain on mortgage loans held for sale | — | 175 | — | 1 | — | 176 | |||||||||||||||||
Total revenues | — | 408 | 9 | 177 | — | 594 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Salaries, wages and benefits | 1 | 258 | 2 | 76 | — | 337 | |||||||||||||||||
General and administrative | — | 262 | 1 | 107 | — | 370 | |||||||||||||||||
Total expenses | 1 | 520 | 3 | 183 | — | 707 | |||||||||||||||||
Other income (expenses), net: | |||||||||||||||||||||||
Interest income | — | 237 | — | 19 | — | 256 | |||||||||||||||||
Interest expense | (64 | ) | (211 | ) | — | (18 | ) | — | (293 | ) | |||||||||||||
Other income, net | 1 | 11 | — | 1 | — | 13 | |||||||||||||||||
(Loss) gain from subsidiaries | (44 | ) | 2 | — | — | 42 | — | ||||||||||||||||
Total other income (expenses), net | (107 | ) | 39 | — | 2 | 42 | (24 | ) | |||||||||||||||
(Loss) income before income tax benefit | (108 | ) | (73 | ) | 6 | (4 | ) | 42 | (137 | ) | |||||||||||||
Less: Income tax benefit | (992 | ) | (29 | ) | — | — | — | (1,021 | ) | ||||||||||||||
Net income (loss) | 884 | (44 | ) | 6 | (4 | ) | 42 | 884 | |||||||||||||||
Less: Net loss attributable to non-controlling interests | — | — | — | — | — | — | |||||||||||||||||
Net income (loss) attributable to Mr. Cooper | $ | 884 | $ | (44 | ) | $ | 6 | $ | (4 | ) | $ | 42 | $ | 884 |
MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS SEVEN MONTHS ENDED JULY 31, 2018 | |||||||||||||||||||||||
Predecessor | |||||||||||||||||||||||
Nationstar | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Service related, net | $ | — | $ | 732 | $ | 16 | $ | 153 | $ | — | $ | 901 | |||||||||||
Net gain on mortgage loans held for sale | — | 295 | — | — | — | 295 | |||||||||||||||||
Total revenues | — | 1,027 | 16 | 153 | — | 1,196 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Salaries, wages benefits | — | 359 | 3 | 64 | — | 426 | |||||||||||||||||
General and administrative | 27 | 427 | 1 | 64 | — | 519 | |||||||||||||||||
Total expenses | 27 | 786 | 4 | 128 | — | 945 | |||||||||||||||||
Other income (expenses), net: | |||||||||||||||||||||||
Interest income | — | 299 | — | 34 | — | 333 | |||||||||||||||||
Interest expense | — | (364 | ) | — | (24 | ) | — | (388 | ) | ||||||||||||||
Other (expenses) income, net | — | (3 | ) | — | 9 | — | 6 | ||||||||||||||||
Gain (loss) from subsidiaries | 181 | 56 | — | — | (237 | ) | — | ||||||||||||||||
Total other income (expenses), net | 181 | (12 | ) | — | 19 | (237 | ) | (49 | ) | ||||||||||||||
Income (loss) before income tax expense | 154 | 229 | 12 | 44 | (237 | ) | 202 | ||||||||||||||||
Less: Income tax expense | — | 48 | — | — | — | 48 | |||||||||||||||||
Net income (loss) | 154 | 181 | 12 | 44 | (237 | ) | 154 | ||||||||||||||||
Less: Net income attributable to non-controlling interests | — | — | — | — | — | — | |||||||||||||||||
Net income (loss) attributable to Nationstar | $ | 154 | $ | 181 | $ | 12 | $ | 44 | $ | (237 | ) | $ | 154 |
MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FIVE MONTHS ENDED DECEMBER 31, 2018 | |||||||||||||||||||||||
Successor | |||||||||||||||||||||||
Mr. Cooper | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Operating Activities | |||||||||||||||||||||||
Net income (loss) | $ | 884 | $ | (44 | ) | $ | 6 | $ | (4 | ) | $ | 42 | $ | 884 | |||||||||
Adjustments to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||||||||||||
Deferred tax benefit | (971 | ) | (49 | ) | — | (1 | ) | — | (1,021 | ) | |||||||||||||
Loss (gain) from subsidiaries | 44 | (2 | ) | — | — | (42 | ) | — | |||||||||||||||
Net gain on mortgage loans held for sale | — | (175 | ) | — | (1 | ) | — | (176 | ) | ||||||||||||||
Interest income on reverse mortgage loans | — | (206 | ) | — | — | — | (206 | ) | |||||||||||||||
Provision for servicing reserves | — | 38 | — | — | — | 38 | |||||||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | — | 225 | — | — | — | 225 | |||||||||||||||||
Fair value changes in excess spread financing | — | 6 | — | (1 | ) | — | 5 | ||||||||||||||||
Fair value changes in mortgage servicing rights financing liability | — | 6 | — | — | — | 6 | |||||||||||||||||
Fair value changes in mortgage loans held for investment | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||||
Amortization of premiums, net of discount accretion | 3 | 7 | — | (1 | ) | — | 9 | ||||||||||||||||
Depreciation and amortization for property and equipment and intangible assets | — | 33 | — | 6 | — | 39 | |||||||||||||||||
Share-based compensation | — | 1 | — | 1 | — | 2 | |||||||||||||||||
Other loss (gain) | — | 1 | — | (1 | ) | — | — | ||||||||||||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations | — | (527 | ) | — | — | — | (527 | ) | |||||||||||||||
Mortgage loans originated and purchased for sale, net of fees | — | (8,888 | ) | — | — | — | (8,888 | ) | |||||||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | — | 9,389 | — | 16 | — | 9,405 | |||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||
Advances and other receivables | — | 43 | — | — | — | 43 | |||||||||||||||||
Reverse mortgage interests | — | 1,569 | — | (25 | ) | — | 1,544 | ||||||||||||||||
Other assets | 1 | (18 | ) | (6 | ) | (38 | ) | — | (61 | ) | |||||||||||||
Payables and other liabilities | 28 | (130 | ) | — | 34 | — | (68 | ) | |||||||||||||||
Net cash attributable to operating activities | (11 | ) | 1,279 | — | (17 | ) | — | 1,251 |
MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FIVE MONTHS ENDED DECEMBER 31, 2018 (Continued) | |||||||||||||||||||||||
Successor | |||||||||||||||||||||||
Mr. Cooper | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Investing Activities | |||||||||||||||||||||||
Acquisition, net of cash acquired | — | — | — | (33 | ) | — | (33 | ) | |||||||||||||||
Property and equipment additions, net of disposals | — | (18 | ) | — | 3 | — | (15 | ) | |||||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | — | (313 | ) | — | 6 | — | (307 | ) | |||||||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | — | 105 | — | — | — | 105 | |||||||||||||||||
Net cash attributable to investing activities | — | (226 | ) | — | (24 | ) | — | (250 | ) | ||||||||||||||
Financing Activities | |||||||||||||||||||||||
Decrease in warehouse facilities | — | (351 | ) | — | — | — | (351 | ) | |||||||||||||||
Increase in advance facilities | — | 40 | — | 5 | — | 45 | |||||||||||||||||
Proceeds from issuance of HECM securitizations | — | — | — | 343 | — | 343 | |||||||||||||||||
Repayment of HECM securitizations | — | — | — | (374 | ) | — | (374 | ) | |||||||||||||||
Proceeds from issuance of participating interest financing | — | 112 | — | — | — | 112 | |||||||||||||||||
Repayment of participating interest financing | — | (943 | ) | — | — | — | (943 | ) | |||||||||||||||
Proceeds from issuance of excess spread financing | — | 255 | — | — | — | 255 | |||||||||||||||||
Repayment of excess spread financing | — | (38 | ) | — | — | — | (38 | ) | |||||||||||||||
Settlement of excess spread financing | — | (77 | ) | — | — | — | (77 | ) | |||||||||||||||
Repayment of nonrecourse debt - legacy assets | — | — | — | (6 | ) | — | (6 | ) | |||||||||||||||
Redemption and repayment of unsecured senior notes | — | (1,030 | ) | — | — | — | (1,030 | ) | |||||||||||||||
Proceeds from non-controlling interests | — | 3 | — | — | — | 3 | |||||||||||||||||
Debt financing costs | — | (3 | ) | — | 1 | — | (2 | ) | |||||||||||||||
Net cash attributable to financing activities | — | (2,032 | ) | — | (31 | ) | — | (2,063 | ) | ||||||||||||||
Net decrease in cash and cash equivalents | (11 | ) | (979 | ) | — | (72 | ) | — | (1,062 | ) | |||||||||||||
Cash and cash equivalents - beginning of period | 11 | 1,358 | 1 | 253 | — | 1,623 | |||||||||||||||||
Cash and cash equivalents - end of period | $ | — | $ | 379 | $ | 1 | $ | 181 | $ | — | $ | 561 |
MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS SEVEN MONTHS ENDED JULY 31, 2018 | |||||||||||||||||||||||
Predecessor | |||||||||||||||||||||||
Nationstar | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Operating Activities | |||||||||||||||||||||||
Net income (loss) | $ | 154 | $ | 181 | $ | 12 | $ | 44 | $ | (237 | ) | $ | 154 | ||||||||||
Adjustment to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||||||||||||
Deferred tax expense | — | 63 | — | — | — | 63 | |||||||||||||||||
(Gain) loss from subsidiaries | (181 | ) | (56 | ) | — | — | 237 | — | |||||||||||||||
Net gain on mortgage loans held for sale | — | (295 | ) | — | — | — | (295 | ) | |||||||||||||||
Interest income on reverse mortgage loans | — | (274 | ) | — | — | — | (274 | ) | |||||||||||||||
Gain on sale of assets | — | — | — | (9 | ) | — | (9 | ) | |||||||||||||||
MSL related increased obligation | — | �� | 59 | — | — | — | 59 | ||||||||||||||||
Provision for servicing reserves | — | 70 | — | — | — | 70 | |||||||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | — | (178 | ) | — | 1 | — | (177 | ) | |||||||||||||||
Fair value changes in excess spread financing | — | 81 | — | — | — | 81 | |||||||||||||||||
Fair value changes in mortgage servicing rights financing liability | — | 16 | — | — | — | 16 | |||||||||||||||||
Amortization of premiums, net of discount accretion | — | 11 | — | (3 | ) | — | 8 | ||||||||||||||||
Depreciation and amortization for property and equipment and intangible assets | — | 26 | — | 7 | — | 33 | |||||||||||||||||
Share-based compensation | — | 16 | — | 1 | — | 17 | |||||||||||||||||
Other loss | — | 3 | — | — | — | 3 | |||||||||||||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations | — | (544 | ) | — | — | — | (544 | ) | |||||||||||||||
Mortgage loans originated and purchased for sale, net of fees | — | (12,328 | ) | — | — | — | (12,328 | ) | |||||||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | — | 13,381 | — | 11 | — | 13,392 | |||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||
Advances and other receivables | — | 377 | — | — | — | 377 | |||||||||||||||||
Reverse mortgage interests | — | 1,866 | — | (265 | ) | — | 1,601 | ||||||||||||||||
Other assets | 9 | (294 | ) | (12 | ) | 256 | — | (41 | ) | ||||||||||||||
Payables and other liabilities | 27 | 65 | — | (4 | ) | — | 88 | ||||||||||||||||
Net cash attributable to operating activities | 9 | 2,246 | — | 39 | — | 2,294 |
MR COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS SEVEN MONTHS ENDED JULY 31, 2018 (Continued) | |||||||||||||||||||||||
Predecessor | |||||||||||||||||||||||
Nationstar | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Investing Activities | |||||||||||||||||||||||
Property and equipment additions, net of disposals | — | (35 | ) | — | (5 | ) | — | (40 | ) | ||||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | — | (127 | ) | — | (7 | ) | — | (134 | ) | ||||||||||||||
Net payment related to acquisition of HECM related receivables | — | (1 | ) | — | — | — | (1 | ) | |||||||||||||||
Proceeds on sale of assets | — | — | — | 13 | — | 13 | |||||||||||||||||
Net cash attributable to investing activities | — | (163 | ) | — | 1 | — | (162 | ) | |||||||||||||||
Financing Activities | |||||||||||||||||||||||
Decrease in warehouse facilities | — | (585 | ) | — | — | — | (585 | ) | |||||||||||||||
Decrease in advance facilities | — | (55 | ) | — | (250 | ) | — | (305 | ) | ||||||||||||||
Proceeds from issuance of HECM securitizations | — | — | — | 759 | — | 759 | |||||||||||||||||
Repayment of HECM securitizations | — | — | — | (448 | ) | — | (448 | ) | |||||||||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | — | 208 | — | — | — | 208 | |||||||||||||||||
Repayment of participating interest financing in reverse mortgage interests | — | (1,599 | ) | — | — | — | (1,599 | ) | |||||||||||||||
Proceeds from issuance of excess spread financing | — | 70 | — | — | — | 70 | |||||||||||||||||
Repayment of excess spread financing | — | (3 | ) | — | — | — | (3 | ) | |||||||||||||||
Settlement of excess spread financing | — | (105 | ) | — | — | — | (105 | ) | |||||||||||||||
Repayment of nonrecourse debt - legacy assets | — | — | — | (7 | ) | — | (7 | ) | |||||||||||||||
Repurchase of unsecured senior notes | — | (62 | ) | — | — | — | (62 | ) | |||||||||||||||
Repurchase of common stock | — | — | — | — | — | — | |||||||||||||||||
Surrender of shares relating to stock vesting | (9 | ) | — | — | — | — | (9 | ) | |||||||||||||||
Debt financing costs | — | (24 | ) | — | — | — | (24 | ) | |||||||||||||||
Dividends to non-controlling interests | — | (1 | ) | — | — | — | (1 | ) | |||||||||||||||
Net cash attributable to financing activities | (9 | ) | (2,156 | ) | — | 54 | — | (2,111 | ) | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (73 | ) | — | 94 | — | 21 | ||||||||||||||||
Cash and cash equivalents - beginning of period | — | 423 | 1 | 151 | — | 575 | |||||||||||||||||
Cash and cash equivalents - end of period | $ | — | $ | 350 | $ | 1 | $ | 245 | $ | — | $ | 596 |
MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2017 | |||||||||||||||||||||||
Predecessor | |||||||||||||||||||||||
Nationstar | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non-Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Service related, net | $ | — | $ | 717 | $ | 28 | $ | 298 | $ | — | $ | 1,043 | |||||||||||
Net gain on mortgage loans held for sale | — | 606 | — | 1 | — | 607 | |||||||||||||||||
Total revenues | — | 1,323 | 28 | 299 | — | 1,650 | |||||||||||||||||
Expenses: | |||||||||||||||||||||||
Salaries wages and benefits | — | 605 | 5 | 132 | — | 742 | |||||||||||||||||
General and administrative | — | 590 | 11 | 132 | — | 733 | |||||||||||||||||
Total expenses | — | 1,195 | 16 | 264 | — | 1,475 | |||||||||||||||||
Other income (expenses), net: | |||||||||||||||||||||||
Interest income | — | 544 | — | 53 | — | 597 | |||||||||||||||||
Interest expense | — | (675 | ) | — | (56 | ) | — | (731 | ) | ||||||||||||||
Other (expenses) income, net | — | (6 | ) | — | 9 | — | 3 | ||||||||||||||||
Gain (loss) from subsidiaries | 30 | 53 | — | — | (83 | ) | — | ||||||||||||||||
Total other income (expenses), net | 30 | (84 | ) | — | 6 | (83 | ) | (131 | ) | ||||||||||||||
Income (loss) before income tax expense | 30 | 44 | 12 | 41 | (83 | ) | 44 | ||||||||||||||||
Less: Income tax expense | — | 13 | — | — | — | 13 | |||||||||||||||||
Net income (loss) | 30 | 31 | 12 | 41 | (83 | ) | 31 | ||||||||||||||||
Less: Net income attributable to non-controlling interests | — | 1 | — | — | — | 1 | |||||||||||||||||
Net income (loss) attributable to Nationstar | $ | 30 | $ | 30 | $ | 12 | $ | 41 | $ | (83 | ) | $ | 30 |
MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2017 | |||||||||||||||||||||||
Predecessor | |||||||||||||||||||||||
Nationstar | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non- Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Operating Activities | |||||||||||||||||||||||
Net income (loss) | $ | 30 | $ | 31 | $ | 12 | $ | 41 | $ | (83 | ) | $ | 31 | ||||||||||
Adjustments to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||||||||||||
Deferred tax benefit | — | (46 | ) | — | — | — | (46 | ) | |||||||||||||||
(Gain) loss from subsidiaries | (30 | ) | (53 | ) | — | — | 83 | — | |||||||||||||||
Net gain on mortgage loans held for sale | — | (606 | ) | — | (1 | ) | — | (607 | ) | ||||||||||||||
Interest income on reverse mortgage loans | — | (490 | ) | — | — | — | (490 | ) | |||||||||||||||
Loss (gain) on sale of assets | — | 1 | — | (9 | ) | — | (8 | ) | |||||||||||||||
Provision for servicing reserves | — | 148 | — | — | — | 148 | |||||||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | — | 430 | — | — | — | 430 | |||||||||||||||||
Fair value changes in excess spread financing | — | 15 | — | (3 | ) | — | 12 | ||||||||||||||||
Fair value changes in mortgage servicing rights financing liability | — | (17 | ) | — | — | — | (17 | ) | |||||||||||||||
Amortization of premiums, net of discount accretion | — | 73 | — | 9 | — | 82 | |||||||||||||||||
Depreciation and amortization for property and equipment and intangible assets | — | 45 | — | 14 | — | 59 | |||||||||||||||||
Share-based compensation | — | 12 | — | 5 | — | 17 | |||||||||||||||||
Other loss | — | 6 | — | — | — | 6 | |||||||||||||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations | — | (1,249 | ) | — | — | — | (1,249 | ) | |||||||||||||||
Mortgage loans originated and purchased for sale, net of fees | — | (19,159 | ) | — | — | — | (19,159 | ) | |||||||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | — | 20,760 | — | 16 | — | 20,776 | |||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||
Advances and other receivables | — | (30 | ) | — | — | — | (30 | ) | |||||||||||||||
Reverse mortgage interests | — | 1,829 | — | (157 | ) | — | 1,672 | ||||||||||||||||
Other assets | 4 | (103 | ) | (12 | ) | 36 | — | (75 | ) | ||||||||||||||
Payables and other liabilities | — | (180 | ) | (1 | ) | (12 | ) | — | (193 | ) | |||||||||||||
Net cash attributable to operating activities | 4 | 1,417 | (1 | ) | (61 | ) | — | 1,359 |
MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2017 (Continued) | |||||||||||||||||||||||
Predecessor | |||||||||||||||||||||||
Nationstar | Issuer(1) | Guarantor (Subsidiaries of Issuer) | Non- Guarantor (Subsidiaries of Issuer) | Eliminations | Consolidated | ||||||||||||||||||
Investing Activities | |||||||||||||||||||||||
Property and equipment additions, net of disposals | — | (37 | ) | — | (5 | ) | — | (42 | ) | ||||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | — | (56 | ) | — | (7 | ) | — | (63 | ) | ||||||||||||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM-related receivables | — | 16 | — | — | — | 16 | |||||||||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | — | 71 | — | — | — | 71 | |||||||||||||||||
Proceeds on sale of assets | — | 16 | — | — | — | 16 | |||||||||||||||||
Purchase of cost-method investment | — | (4 | ) | — | — | — | (4 | ) | |||||||||||||||
Net cash attributable to investing activities | — | 6 | — | (12 | ) | — | (6 | ) | |||||||||||||||
Financing Activities | |||||||||||||||||||||||
Increase in warehouse facilities | — | 863 | — | — | — | 863 | |||||||||||||||||
Decrease in advance facilities | — | (81 | ) | — | (160 | ) | — | (241 | ) | ||||||||||||||
Proceeds from issuance of HECM securitizations | — | — | — | 707 | — | 707 | |||||||||||||||||
Repayment of HECM securitizations | — | (1 | ) | — | (571 | ) | — | (572 | ) | ||||||||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | — | 575 | — | — | — | 575 | |||||||||||||||||
Repayment of participating interest financing in reverse mortgage interests | — | (2,597 | ) | — | — | — | (2,597 | ) | |||||||||||||||
Repayment of excess spread financing | — | (23 | ) | — | — | — | (23 | ) | |||||||||||||||
Settlement of excess spread financing | — | (207 | ) | — | — | — | (207 | ) | |||||||||||||||
Repayment of nonrecourse debt - legacy assets | — | — | — | (15 | ) | — | (15 | ) | |||||||||||||||
Redemption and repayment of unsecured senior notes | — | (123 | ) | — | — | — | (123 | ) | |||||||||||||||
Surrender of shares relating to stock vesting | (4 | ) | — | — | — | — | (4 | ) | |||||||||||||||
Debt financing costs | — | (13 | ) | — | — | — | (13 | ) | |||||||||||||||
Dividends to non-controlling interests | — | (5 | ) | — | — | — | (5 | ) | |||||||||||||||
Net cash attributable to financing activities | (4 | ) | (1,612 | ) | — | (39 | ) | — | (1,655 | ) | |||||||||||||
Net decrease in cash and cash equivalents | — | (189 | ) | (1 | ) | (112 | ) | — | (302 | ) | |||||||||||||
Cash and cash equivalents - beginning of period | — | 612 | 2 | 263 | — | 877 | |||||||||||||||||
Cash and cash equivalents - end of period | $ | — | $ | 423 | $ | 1 | $ | 151 | $ | — | $ | 575 |
Successor | |||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Service related revenue, net | $ | 84 | $ | 137 | $ | 258 | $ | 430 | |||||||
Net gain on mortgage loans held for sale | 166 | 262 | 360 | 310 | |||||||||||
Total revenues | 250 | 399 | 618 | 740 | |||||||||||
Total expenses | 443 | 492 | 478 | 438 | |||||||||||
Total other income (expenses), net | (40 | ) | (24 | ) | (33 | ) | (62 | ) | |||||||
(Loss) income before income tax (benefit) expense | (233 | ) | (117 | ) | 107 | 240 | |||||||||
Less: Income tax (benefit) expense | (47 | ) | (29 | ) | 24 | (221 | ) | ||||||||
Net (loss) income | (186 | ) | (88 | ) | 83 | 461 | |||||||||
Less: Net loss attributable to non-controlling interests | — | (1 | ) | (1 | ) | (2 | ) | ||||||||
Net (loss) income attributable to Mr. Cooper | $ | (186 | ) | $ | (87 | ) | $ | 84 | $ | 463 | |||||
Less: Undistributed earnings attributable to participating stockholders(1) | — | — | 1 | 4 | |||||||||||
Net (loss) income attributable to common stockholders | $ | (186 | ) | $ | (87 | ) | $ | 83 | $ | 459 | |||||
Net (loss) income per common share attributable to Mr. Cooper common stockholders: | |||||||||||||||
Basic | $ | (2.05 | ) | $ | (0.96 | ) | $ | 0.91 | $ | 5.03 | |||||
Diluted | $ | (2.05 | ) | $ | (0.96 | ) | $ | 0.90 | $ | 4.95 |
Predecessor | Successor | |||||||||||||||||||
Quarter Ended March 31, 2018 | Quarter Ended June 30, 2018 | One Month Ended July 31, 2018 | Two Months Ended September 30, 2018 | Quarter Ended December 31, 2018 | ||||||||||||||||
Service related revenue, net | $ | 464 | $ | 317 | $ | 120 | $ | 259 | $ | 159 | ||||||||||
Net gain on mortgage loans held for sale | 124 | 127 | 44 | 83 | 93 | |||||||||||||||
Total revenues | 588 | 444 | 164 | 342 | 252 | |||||||||||||||
Total expenses | 364 | 339 | 242 | 275 | 432 | |||||||||||||||
Total other income (expenses), net | (18 | ) | (26 | ) | (5 | ) | (26 | ) | 2 | |||||||||||
Income (loss) before income tax expense (benefit) | 206 | 79 | (83 | ) | 41 | (178 | ) | |||||||||||||
Less: Income tax expense (benefit) | 46 | 21 | (19 | ) | (979 | ) | (42 | ) | ||||||||||||
Net income (loss) | 160 | 58 | (64 | ) | 1,020 | (136 | ) | |||||||||||||
Less: Net income attributable to non-controlling interests | — | — | — | — | — | |||||||||||||||
Net income (loss) attributable to Predecessor/Successor | 160 | 58 | (64 | ) | 1,020 | (136 | ) | |||||||||||||
Less: Undistributed earnings attributable to participating stockholders(1) | — | — | — | 9 | — | |||||||||||||||
Net income (loss) attributable to common stockholders | $ | 160 | $ | 58 | $ | (64 | ) | $ | 1,011 | $ | (136 | ) | ||||||||
Net income (loss) per common share attributable to Predecessor/Successor common stockholders: | ||||||||||||||||||||
Basic | $ | 1.63 | $ | 0.59 | $ | (0.65 | ) | $ | 11.13 | $ | (1.50 | ) | ||||||||
Diluted | $ | 1.61 | $ | 0.59 | $ | (0.65 | ) | $ | 10.99 | $ | (1.50 | ) |
Incorporated by Reference | Filed or Furnished Herewith | |||||||||||||||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |||||||||||||||
2.1+ | 8-K | 001-14667 | 2.1 | 02/14/2018 | ||||||||||||||||
2.2+ | 8-K | 001-14667 | 2.1 | 03/15/2021 | ||||||||||||||||
2.3+ | 8-K | 001-14667 | 2.1 | 02/11/2022 | ||||||||||||||||
3.1 | 8-K | 001-14667 | 3.1 | 10/10/2018 | ||||||||||||||||
3.2 | 10-Q | 001-14667 | 3.2 | 11/09/2018 | ||||||||||||||||
4.1 | 10-Q | 001-14667 | 4.1 | 11/01/2019 | ||||||||||||||||
4.2 | X | |||||||||||||||||||
4.3 | 10-K | 001-14667 | 4.14 | 02/28/2020 | ||||||||||||||||
4.4 | 8-K | 001-14667 | 4.1 | 08/06/2020 | ||||||||||||||||
4.5 | 8-K | 001-14667 | 4.1 | 12/04/2020 | ||||||||||||||||
4.6 | 8-K | 001-14667 | 4.1 | 11/04/2021 | ||||||||||||||||
4.7 | 8-K | 001-35449 | 10.1 | 02/06/2013 | ||||||||||||||||
Incorporated by Reference | Filed or Furnished Herewith | |||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |
2.1+ | 8-K | 001-14667 | 2.1 | 02/14/2018 | ||
3.1 | 8-K | 001-14667 | 3.1 | 10/10/2018 | ||
3.2 | 10-Q | 001-14667 | 3.2 | 11/09/2018 | ||
4.1 | 10-Q | 001-14667 | 4.1 | 11/01/2019 | ||
4.2 | 8-K | 001-14667 | 4.6 | 01/31/2014 | ||
4.3 | X | |||||
4.4 | 8-K | 001-4667 | 4.2 | 01/31/2014 | ||
4.5 | 8-K | 001-35449 | 4.1 | 02/07/2013 | ||
4.6 | 8-K | 001-35449 | 4.2 | 03/26/2013 | ||
4.7 | 8-K | 001-35449 | 4.1 | 06/22/2018 | ||
4.8 | 8-K | 001-1667 | 4.1 | 08/01/2018 | ||
4.9 | 8-K | 001-35449 | 4.1 | 05/31/2013 | ||
4.10 | 8-K | 00135449 | 4.2 | 06/22/2018 | ||
Incorporated by Reference | Filed or Furnished Herewith | |||||||||||||||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |||||||||||||||
4.8 | 10-Q | 001-35449 | 4.4 | 05/09/2014 | ||||||||||||||||
4.9 | 10-Q | 001-35449 | 4.1 | 08/03/2015 | ||||||||||||||||
4.10 | 10-Q | 001-35449 | 4.2 | 08/03/2015 | ||||||||||||||||
4.11 | 10-K | 001-35449 | 4.17 | 03/01/2016 | ||||||||||||||||
10.1 | 8-K | 001-35449 | 10.5 | 02/06/2013 | ||||||||||||||||
10.2 | 8-K | 001-35449 | 10.6 | 02/06/2013 | ||||||||||||||||
10.3 | 10-K | 001-35449 | 10.18 | 03/15/2013 | ||||||||||||||||
10.4 | 10-K | 001-35449 | 10.19 | 03/15/2013 | ||||||||||||||||
10.5 | 10-K | 001-35449 | 10.20 | 03/15/2013 | ||||||||||||||||
Incorporated by Reference | Filed or Furnished Herewith | |||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |
4.11 | 8-K | 001-14667 | 4.2 | 08/01/2018 | ||
4.12 | 8-K | 001-14667 | 4.1 | 07/13/2018 | ||
4.13 | 8-K | 001-14667 | 4.3 | 08/01/2018 | ||
4.14 | X | |||||
4.15 | 8-K | 001-35449 | 10.1 | 02/06/2013 | ||
4.16 | 10-Q | 001-35449 | 4.4 | 05/09/2014 | ||
4.17 | 10-Q | 001-35449 | 4.1 | 08/03/2015 | ||
4.18 | 10-Q | 001-35449 | 4.2 | 08/03/2015 | ||
Incorporated by Reference | Filed or Furnished Herewith | |||||||||||||||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |||||||||||||||
10.6 | 10-K | 001-35449 | 10.21 | 03/15/2013 | ||||||||||||||||
10.7 | 10-Q | 001-35449 | 10.11 | 11/14/2013 | ||||||||||||||||
10.8 | 10-Q | 001-35449 | 10.12 | 11/14/2013 | ||||||||||||||||
10.9 | 10-Q | 001-35449 | 10.13 | 11/14/2013 | ||||||||||||||||
10.10 | 10-Q | 001-35449 | 10.3 | 11/07/2014 | ||||||||||||||||
10.11 | 10-Q | 001-35449 | 10.4 | 11/07/2014 | ||||||||||||||||
10.12 | 10-K | 001-35449 | 10.28 | 03/01/2016 | ||||||||||||||||
10.13 | 10-K | 001-35449 | 10.17 | 03/09/2017 | ||||||||||||||||
10.14 | 10-K | 001-35449 | 10.18 | 03/09/2017 | ||||||||||||||||
10.15 | 10-K | 001-35449 | 10.18 | 03/02/2018 | ||||||||||||||||
10.16 | 10-Q | 001-35449 | 10.1 | 05/10/2018 | ||||||||||||||||
Incorporated by Reference | Filed or Furnished Herewith | |||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |
4.19 | 10-K | 001-35449 | 4.17 | 03/01/2016 | ||
10.1 | 8-K | 001-35449 | 10.5 | 02/06/2013 | ||
10.2 | 8-K | 001-35449 | 10.6 | 02/06/2013 | ||
10.3 | 10-K | 001-35449 | 10.18 | 03/15/2013 | ||
10.4 | 10-K | 001-35449 | 10.19 | 03/15/2013 | ||
10.5 | 10-K | 001-35449 | 10.20 | 03/15/2013 | ||
10.6 | 10-K | 001-35449 | 10.21 | 03/15/2013 | ||
10.7 | 10-Q | 001-35449 | 10.11 | 11/14/2013 | ||
10.8 | 10-Q | 001-35449 | 10.12 | 11/14/2013 | ||
10.9 | 10-Q | 001-35449 | 10.13 | 11/14/2013 | ||
Incorporated by Reference | Filed or Furnished Herewith | |||||||||||||||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |||||||||||||||
10.17 | 10-K | 001-14667 | 10.17 | 03/11/2019 | ||||||||||||||||
10.18 | 10-K | 001-14667 | 10.18 | 03/11/2019 | ||||||||||||||||
10.19 | 10-Q | 001-14667 | 10.1 | 05/08/2019 | ||||||||||||||||
10.20 | 10-Q | 001-14667 | 10.2 | 05/08/2019 | ||||||||||||||||
10.21 | 10-Q | 001-14667 | 10.1 | 08/02/2019 | ||||||||||||||||
10.22 | 10-K | 001-14667 | 10.22 | 02/23/2021 | ||||||||||||||||
10.23 | 10-Q | 001-14667 | 10.2 | 10/29/2020 | ||||||||||||||||
10.24 | 10-K | 001-14667 | 10.24 | 02/23/2021 | ||||||||||||||||
10.25 | 10-Q | 001-35449 | 10.1 | 05/05/2016 | ||||||||||||||||
10.26 | 10-Q | 001-35449 | 10.2 | 08/09/2016 | ||||||||||||||||
Incorporated by Reference | Filed or Furnished Herewith | |||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |
10.10 | 10-Q | 001-35449 | 10.3 | 11/07/2014 | ||
10.11 | 10-Q | 001-35449 | 10.4 | 11/07/2014 | ||
10.12 | 10-K | 001-35449 | 10.28 | 03/01/2016 | ||
10.13 | 10-K | 001-35449 | 10.17 | 03/09/2017 | ||
10.14 | 10-K | 001-35449 | 10.18 | 03/09/2017 | ||
10.15 | 10-K | 001-35449 | 10.18 | 03/02/2018 | ||
10.16 | 10-Q | 001-35449 | 10.1 | 05/10/2018 | ||
10.17 | 10-K | 001-14667 | 10.17 | 03/11/2019 | ||
10.18 | 10-K | 001-14667 | 10.18 | 03/11/2019 | ||
10.19 | 10-Q | 001-14667 | 10.1 | 05/08/2019 | ||
Incorporated by Reference | Filed or Furnished Herewith | |||||||||||||||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |||||||||||||||
10.27 | 10-K | 001-35449 | 10.21 | 03/09/2017 | ||||||||||||||||
10.28 | 10-K | 001-35449 | 10.22 | 03/09/2017 | ||||||||||||||||
10.29 | 10-K | 001-35449 | 10.23 | 03/02/2018 | ||||||||||||||||
10.30 | 10-Q | 001-35449 | 10.2 | 05/10/2018 | ||||||||||||||||
10.31 | 10-Q | 001-35449 | 10.1 | 08/03/2018 | ||||||||||||||||
10.32 | 10-K | 001-14667 | 10.26 | 03/11/2019 | ||||||||||||||||
10.33 | 10-K | 001-14667 | 10.27 | 03/11/2019 | ||||||||||||||||
10.34 | 10-Q | 001-14667 | 10.3 | 05/08/2019 | ||||||||||||||||
10.35 | 10-Q | 001-14667 | 10.4 | 05/08/2019 | ||||||||||||||||
Incorporated by Reference | Filed or Furnished Herewith | |||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |
10.20 | 10-Q | 001-14667 | 10.2 | 05/08/2019 | ||
10.21 | 10-Q | 001-14667 | 10.1 | 08/02/2019 | ||
10.22 | 10-Q | 001-35449 | 10.1 | 05/05/2016 | ||
10.23 | 10-Q | 001-35449 | 10.2 | 08/09/2016 | ||
10.24 | 10-K | 001-35449 | 10.21 | 03/09/2017 | ||
10.25 | 10-K | 001-35449 | 10.22 | 03/09/2017 | ||
10.26 | 10-K | 001-35449 | 10.23 | 03/02/2018 | ||
10.27 | 10-Q | 001-35449 | 10.2 | 05/10/2018 | ||
Incorporated by Reference | Filed or Furnished Herewith | |||||||||||||||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |||||||||||||||
10.36 | 10-Q | 001-14667 | 10.2 | 08/02/2019 | ||||||||||||||||
10.37 | 10-K | 001-14667 | 10.34 | 02/28/2020 | ||||||||||||||||
10.38 | 10-Q | 001-14667 | 10.3 | 04/30/2020 | ||||||||||||||||
10.39 | 10-Q | 001-14667 | 10.1 | 10/29/2020 | ||||||||||||||||
10.40 | 10-K | 001-14667 | 10.40 | 02/23/2021 | ||||||||||||||||
10.41 | 10-K | 001-14667 | 10.41 | 02/23/2021 | ||||||||||||||||
10.42 | 10-Q | 001-14667 | 10.1 | 10/28/2021 | ||||||||||||||||
10.43 | 10-Q | 001-14667 | 10.2 | 10/28/2021 | ||||||||||||||||
10.44** | 8-K | 001-14667 | 10.1 | 12/12/2018 | ||||||||||||||||
10.45** | 10-Q | 001-14667 | 10.3 | 10/29/2020 | ||||||||||||||||
Incorporated by Reference | Filed or Furnished Herewith | |||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |
10.28 | 10-Q | 001-35449 | 10.1 | 08/03/2018 | ||
10.29 | 10-K | 001-14667 | 10.26 | 03/11/2019 | ||
10.30 | 10-K | 001-14667 | 10.27 | 03/11/2019 | ||
10.31 | 10-Q | 001-14667 | 10.3 | 05/08/2019 | ||
10.32 | 10-Q | 001-14667 | 10.4 | 05/08/2019 | ||
10.33 | 10-Q | 001-14667 | 10.2 | 08/02/2019 | ||
10.34 | X | |||||
10.35** | 10-K | 001-35449 | 10.45 | 03/01/2016 | ||
10.36** | 10-K | 001-35449 | 10.46 | 03/01/2016 | ||
10.37** | 8-K | 001-14667 | 10.1 | 12/12/2018 | ||
10.38** | 10-K | 001-14667 | 10.17 | 03/15/2013 | ||
10.39** | 8-K | 001-14667 | 99.1 | 02/03/2014 | ||
Incorporated by Reference | Filed or Furnished Herewith | |||||||||||||||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |||||||||||||||
10.46** | 10-Q | 001-14667 | 10.4 | 10/29/2020 | ||||||||||||||||
10.47** | 10.1 | 07/29/2021 | ||||||||||||||||||
8-K | 001-35449 | 10.1 | 05/12/2016 | |||||||||||||||||
8-K | 001-14667 | 10.2 | 08/01/2018 | |||||||||||||||||
10-Q | 001-35449 | 10.5 | 05/07/2015 | |||||||||||||||||
S-8 | 333-231552 | 99.1 | 05/16/2019 | |||||||||||||||||
8-K | 001-14667 | 10.2 | 05/17/2019 | |||||||||||||||||
8-K | 001-14667 | 10.3 | 05/17/2019 | |||||||||||||||||
10.1 | 04/ | |||||||||||||||||||
10-Q | 001-14667 | 10.2 | 04/29/2021 | |||||||||||||||||
10.56** | 8-K | 001-14667 | 10.1 | 05/13/2015 | ||||||||||||||||
21.1 | X | |||||||||||||||||||
23.1 | X | |||||||||||||||||||
31.1 | X | |||||||||||||||||||
31.2 | X | |||||||||||||||||||
32.1 | X | |||||||||||||||||||
32.2 | X | |||||||||||||||||||
Incorporated by Reference | Filed or Furnished Herewith | |||||||||||||||||||
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | |||||||||||||||
101.INS | ||||||||||||||||||||
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | X | |||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | X | ||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibits 101.) | X |
/s/ Jay Bray | February | ||||
Jay Bray, | |||||
/s/ Christopher G. Marshall | February | ||||
Christopher G. Marshall, Vice Chairman, President and Chief Financial Officer (Principal Financial and Accounting Officer) | |||||
/s/ Elizabeth Burr | February | ||||
Elizabeth Burr, Director | |||||
/s/ Roy A. Guthrie | February | ||||
Roy A. Guthrie, Director | |||||
/s/ Michael D. Malone | February | ||||
Michael D. Malone, Director | |||||
/s/ Shveta Mujumdar | February 17, 2022 | ||||
Shveta Mujumdar, Director | |||||
/s/ Tagar C. Olson | February | ||||
Tagar C. Olson, Director | |||||
/s/ Steven D. Scheiwe | February | ||||
Steven D. Scheiwe, Director | |||||