Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 05, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q/A | |
Amendment Flag | true | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | WALTER INVESTMENT MANAGEMENT CORP | |
Entity Central Index Key | 1,040,719 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 36,541,688 | |
Amendment Description | Walter Investment Management Corp. is amending its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017 to reflect a correction to the net deferred tax assets balance as described in further detail in Note 2 to the Consolidated Financial Statements contained within the amended report. |
Consolidated Balance Sheets (As
Consolidated Balance Sheets (As Restated) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 237,174 | $ 224,598 |
Restricted cash and cash equivalents | 174,324 | 204,463 |
Residential loans at amortized cost, net | 678,482 | 665,209 |
Residential loans at fair value | 12,240,962 | 12,416,542 |
Receivables, net | 224,732 | 267,962 |
Servicer and protective advances, net | 1,005,157 | 1,195,380 |
Servicing rights, net | 1,006,428 | 1,029,719 |
Goodwill | 47,747 | 47,747 |
Intangible assets, net | 10,445 | 11,347 |
Premises and equipment, net | 73,999 | 82,628 |
Assets held for sale | 0 | 71,085 |
Other assets | 201,346 | 242,290 |
Total assets | 15,900,796 | 16,458,970 |
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||
Payables and accrued liabilities | 699,741 | 759,011 |
Servicer payables | 138,059 | 146,332 |
Servicing advance liabilities | 662,206 | 783,229 |
Warehouse borrowings | 1,094,677 | 1,203,355 |
Servicing rights related liabilities at fair value | 3,537 | 1,902 |
Corporate debt | 2,112,328 | 2,129,000 |
Mortgage-backed debt | 916,952 | 943,956 |
HMBS related obligations at fair value | 10,289,505 | 10,509,449 |
Deferred tax liabilities, net | 2,901 | 4,774 |
Liabilities held for sale | 0 | 2,402 |
Total liabilities | 15,919,906 | 16,483,410 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock | 0 | 0 |
Common stock | 365 | 364 |
Additional paid-in capital | 596,905 | 596,067 |
Accumulated deficit | (617,296) | (621,804) |
Accumulated other comprehensive income | 916 | 933 |
Total stockholders' deficit | (19,110) | (24,440) |
Total liabilities and stockholders' deficit | 15,900,796 | 16,458,970 |
VIE Primary Beneficiary | ||
ASSETS | ||
Restricted cash and cash equivalents | 44,254 | 45,843 |
Residential loans at amortized cost, net | 453,474 | 462,877 |
Residential loans at fair value | 440,219 | 492,499 |
Receivables, net | 13,848 | 15,798 |
Servicer and protective advances, net | 607,357 | 734,707 |
Other assets | 14,001 | 19,831 |
Total assets | 1,573,153 | 1,771,555 |
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||
Payables and accrued liabilities | 2,777 | 2,985 |
Servicing advance liabilities | 542,528 | 650,565 |
Mortgage-backed debt | 916,952 | 943,956 |
Total liabilities | $ 1,462,257 | $ 1,597,506 |
Consolidated Balance Sheets (A3
Consolidated Balance Sheets (As Restated) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Allowance for loan losses | $ 5,633 | $ 5,167 |
Receivables at fair value | 13,848 | 15,033 |
Allowance for uncollectible advances | 150,305 | 146,781 |
Servicing rights at fair value | 930,333 | 949,593 |
Other assets at fair value | 47,173 | 87,937 |
Payables and accrued liabilities at fair value | 14,271 | 11,804 |
Mortgage-backed debt at fair value | $ 498,768 | $ 514,025 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 36,464,218 | 36,391,129 |
Common stock, shares outstanding, shares | 36,464,218 | 36,391,129 |
VIE Primary Beneficiary | ||
Mortgage-backed debt at fair value | $ 498,768 | $ 514,025 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (As Restated) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
REVENUES | ||
Net servicing revenue and fees | $ 113,187 | $ (105,762) |
Net gains on sales of loans | 74,356 | 84,477 |
Net fair value gains on reverse loans and related HMBS obligations | 14,702 | 35,208 |
Interest income on loans | 10,980 | 12,171 |
Insurance revenue | 4,940 | 10,367 |
Other revenues | 27,120 | 30,310 |
Total revenues | 245,285 | 66,771 |
EXPENSES | ||
General and administrative | 131,627 | 129,606 |
Salaries and benefits | 107,957 | 132,639 |
Interest expense | 60,410 | 64,248 |
Depreciation and amortization | 10,932 | 14,423 |
Other expenses, net | 2,783 | 2,506 |
Total expenses | 313,709 | 343,422 |
OTHER GAINS (LOSSES) | ||
Gain on sale of business | 67,727 | 0 |
Other net fair value gains (losses) | 5,083 | (2,144) |
Gain on extinguishment | 0 | 928 |
Other | 0 | (1,024) |
Total other gains (losses) | 72,810 | (2,240) |
Income (loss) before income taxes | 4,386 | (278,891) |
Income tax benefit | (122) | (106,189) |
Net income (loss) | 4,508 | (172,702) |
Comprehensive income (loss) | $ 4,491 | $ (172,677) |
Basic earnings (loss) per common and common equivalent share | $ 0.12 | $ (4.85) |
Diluted earnings (loss) per common and common equivalent share | $ 0.12 | $ (4.85) |
Weighted-average common and common equivalent shares outstanding — basic | 36,412 | 35,579 |
Weighted-average common and common equivalent shares outstanding — diluted | 36,812 | 35,579 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Deficit (As Restated) - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] |
Balance (As Previously Reported) at Dec. 31, 2016 | $ 280,260 | $ 364 | $ 596,067 | $ (317,104) | $ 933 |
Balance (Restatement Adjustment, Deferred Tax Asset Valuation Allowance Adjustments) | (304,700) | (304,700) | |||
Balance at Dec. 31, 2016 | $ (24,440) | 364 | 596,067 | (621,804) | 933 |
Shares, balance (As Previously Reported) at Dec. 31, 2016 | 36,391,129 | ||||
Shares, balance at Dec. 31, 2016 | 36,391,129 | ||||
Stockholders' Deficit [Roll Forward] | |||||
Net income | As Previously Reported | $ 1,888 | ||||
Net income | Restatement Adjustment | Deferred Tax Asset Valuation Allowance Adjustments | 2,620 | ||||
Net income | 4,508 | 4,508 | |||
Other comprehensive loss, net of tax | (17) | (17) | |||
Share-based compensation | 865 | 865 | |||
Share-based compensation issuances, net | $ (26) | 1 | (27) | ||
Share-based compensation issuances, net, shares | 73,089 | ||||
Balance (As Previously Reported) at Mar. 31, 2017 | $ 282,970 | ||||
Balance (Restatement Adjustment, Deferred Tax Asset Valuation Allowance Adjustments) | (302,080) | ||||
Balance at Mar. 31, 2017 | $ (19,110) | $ 365 | $ 596,905 | $ (617,296) | $ 916 |
Shares, balance at Mar. 31, 2017 | 36,464,218 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (As Restated) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities | ||
Net income (loss) | $ 4,508 | $ (172,702) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Net fair value gains on reverse loans and related HMBS obligations | (14,702) | (35,208) |
Amortization of servicing rights | 5,025 | 4,611 |
Change in fair value of servicing rights | 53,516 | 326,580 |
Change in fair value of servicing rights related liabilities | 0 | (7,191) |
Change in fair value of charged-off loans | (10,133) | (10,939) |
Other net fair value (gains) losses | (3,363) | 4,606 |
Accretion of discounts on residential loans and advances | (928) | (928) |
Accretion of discounts on debt and amortization of deferred debt issuance costs | 7,740 | 7,964 |
Provision for uncollectible advances | 9,666 | 8,558 |
Depreciation and amortization of premises and equipment and intangible assets | 10,932 | 14,423 |
Benefit for deferred income taxes | (330) | (40,819) |
Share-based compensation | 865 | 859 |
Purchases and originations of residential loans held for sale | (5,187,091) | (5,158,411) |
Proceeds from sales of and payments on residential loans held for sale | 5,301,187 | 5,422,461 |
Net gains on sales of loans | (74,356) | (84,477) |
Gain on sale of business | (67,727) | 0 |
Other | 2,506 | 3,622 |
Changes in assets and liabilities | ||
Decrease (increase) in receivables | 8,812 | (25,051) |
Decrease in servicer and protective advances | 180,432 | 6,517 |
Increase in other assets | (4,774) | (9,201) |
Decrease in payables and accrued liabilities | (82,751) | (53,212) |
Increase in servicer payables, net of change in restricted cash | 7,698 | 673 |
Cash flows provided by operating activities | 146,732 | 202,735 |
Investing activities | ||
Purchases and originations of reverse loans held for investment | (130,269) | (181,167) |
Principal payments received on reverse loans held for investment | 277,262 | 197,883 |
Principal payments received on mortgage loans held for investment | 23,981 | 22,325 |
Payments received on charged-off loans held for investment | 5,025 | 7,000 |
Payments received on receivables related to Non-Residual Trusts | 3,754 | 1,957 |
Proceeds from sales of real estate owned, net | 34,344 | 21,409 |
Purchases of premises and equipment | (469) | (11,653) |
Decrease (increase) in restricted cash and cash equivalents | (1,887) | 9,048 |
Payments for acquisitions of businesses, net of cash acquired | (804) | (1,947) |
Acquisitions of servicing rights, net | (109) | (6,571) |
Proceeds from sales of servicing rights, net | 29,673 | 0 |
Proceeds from sale of business | 131,067 | 0 |
Other | 9,524 | (337) |
Cash flows provided by investing activities | 381,092 | 57,947 |
Financing activities | ||
Payments on corporate debt | (21,285) | (210) |
Extinguishments and settlement of debt | 0 | (6,327) |
Proceeds from securitizations of reverse loans | 154,316 | 202,947 |
Payments on HMBS related obligations | (400,693) | (271,013) |
Issuances of servicing advance liabilities | 328,341 | 441,924 |
Payments on servicing advance liabilities | (449,636) | (469,835) |
Net change in warehouse borrowings related to mortgage loans | (116,795) | (214,510) |
Net change in warehouse borrowings related to reverse loans | 8,117 | 75,910 |
Proceeds from sales of servicing rights | 0 | 2,968 |
Payments on servicing rights related liabilities | (1,415) | (4,250) |
Payments on mortgage-backed debt | (28,619) | (25,203) |
Other debt issuance costs paid | (964) | (1,031) |
Other | 13,385 | (462) |
Cash flows used in financing activities | (515,248) | (269,092) |
Net increase (decrease) in cash and cash equivalents | 12,576 | (8,410) |
Cash and cash equivalents at beginning of the period | 224,598 | 202,828 |
Cash and cash equivalents at end of the period | 237,174 | 194,418 |
Supplemental Disclosures of Cash Flow Information | ||
Cash paid for interest | 46,903 | 53,901 |
Cash paid (received) for taxes | $ (5,591) | $ 16 |
Business and Basis of Presentat
Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation Disclosure | Business and Basis of Presentation Walter Investment Management Corp. and its subsidiaries, or the Company, is an independent servicer and originator of mortgage loans and servicer of reverse mortgage loans. The Company services a wide array of loans across the credit spectrum for its own portfolio and for GSEs, government agencies, third-party securitization trusts and other credit owners. Through the consumer, correspondent and wholesale lending channels, the Company originates and purchases residential mortgage loans that are predominantly sold to GSEs and government agencies. The Company also operates two supplementary businesses; asset receivables management and real estate owned property management and disposition. The Company operates throughout the U.S. through three reportable segments, Servicing, Originations, and Reverse Mortgage. Refer to Note 12 for additional information related to segment reporting. Certain acronyms and terms used throughout these notes are defined in the Glossary of Terms in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Sale of Insurance Business On December 30, 2016, the Company executed a stock purchase agreement pursuant to which the Company agreed to sell 100% of the stock of its indirect, wholly-owned subsidiary, GTI Holdings Corp., which was the holding company of the Company's primary licensed insurance agency, Green Tree Insurance Agency, Inc., to a wholly-owned subsidiary of Assurant, for a purchase price of $125.0 million in cash, subject to adjustment as specified in the agreement. Under the agreement, an affiliate of Assurant has also agreed to make potential earnout payments to the Company in an aggregate amount of up to $25.0 million in cash, with the amount of such payments to be based upon the gross written premium of certain voluntary homeowners' insurance written by certain affiliates of Assurant over a specified timeframe. As a result of this transaction, the assets and liabilities related to the insurance business, which were included in the Servicing segment, were reclassified to operations held for sale line items on the consolidated balance sheets at December 31, 2016. This transaction closed on February 1, 2017, at which time the Company received $131.1 million in cash, which included a working capital payment. Interim Financial Reporting The accompanying unaudited interim consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and related notes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2016 . Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although management is not currently aware of any factors that would significantly change its estimates and assumptions, actual results may differ from these estimates. Revision of Previously Issued Financial Statements During the year ended December 31, 2016, the Company made immaterial corrections of errors in its consolidated balance sheet to insurance related receivables and payables. The insurance business was acquired in 2011. The accounting related to insurance premium receivables and carrier payables was maintained consistently with practices prior to the acquisition. As part of the sale transaction that occurred on February 1, 2017, discussed below, certain agreements related to the insurance business were further reviewed and it was determined that the gross up of premiums and related carrier payables was not consistent with the terms of such agreements. Thus, the Company assessed the effect of the overstatement in the aggregate on prior periods’ financial statements in accordance with the SEC’s Staff Accounting Bulletins No. 99 and 108 and, based on an analysis of quantitative and qualitative factors, determined that the overstatement was not material to the Company’s prior interim and annual financial statements. The Company corrected the overstatement in the year ended December 31, 2016 and revised its previously-issued financial statements for the three months ended March 31, 2016 . All financial information contained in the accompanying notes to these financial statements has been revised to reflect the correction of the overstatement. The Company revised the consolidated statements of cash flows for the three months ended March 31, 2016 . All of the revisions were made to the changes in assets and liabilities included in cash flows provided by operating activities. For the three months ended March 31, 2016 , cash flows from the change in receivables decreased by $7.4 million , while cash flows from the change in servicer and protective advances and change in payables and accrued liabilities increased by $4.8 million and $2.6 million , respectively. Recently Adopted Accounting Guidance In March 2016, the FASB issued an accounting standards update revising certain aspects of share-based accounting guidance which includes income tax and forfeiture consequences. This guidance was effective for the Company beginning January 1, 2017. Adoption of this update did not have a material impact on the Company's income tax expense. The Company elected to continue with its current methodology of estimating expected forfeitures at the date of grant and adjust throughout the vesting term as needed. Recent Accounting Guidance Not Yet Adopted In May 2014, the FASB issued new revenue recognition guidance that supersedes most industry-specific guidance but does exclude insurance contracts and financial instruments. Under the new revenue recognition guidance, entities are required to identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when the entity satisfies a performance obligation. In April 2015, the FASB voted for a one-year deferral of the effective date, resulting in this new guidance being effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. Subsequent to the initial issuance, the FASB has continued to issue updates to this guidance to provide additional clarification and implementation instructions to issuers regarding (i) principal versus agent considerations, (ii) identifying performance obligations, (iii) licensing, and (iv) narrow-scope improvements and practical expedients relating to assessing collectability, presentation of sales taxes, non-cash consideration, and completed contracts and contract modifications at transition. The Company has reviewed the scope of the guidance and monitored the determinations of the FASB Transition Resource Group and concluded that a number of the Company's most significant revenue streams are not within the scope of the standard because the standard does not apply to revenue on contracts accounted for under the transfers and servicing of financial assets or financial instruments standards. Therefore, revenue recognition for these contracts will remain unchanged. However, the FASB has issued, and may issue in the future, interpretive guidance that may cause the Company’s evaluation to change. The Company continues to evaluate certain select revenue streams, including subservicing fees, for the effect that this guidance will have on its consolidated financial statements. Based on current guidance available, while there may be some impact on revenue recognition, the Company does not expect the adoption of this guidance to have a significant impact on the consolidated financial statements. The Company has not yet selected a transition method. In January 2016, the FASB issued an accounting standards update that amends the guidance on the classification and measurement of financial instruments. The new standard revises an entity's accounting related to (i) the classification and measurement of investments in equity securities and (ii) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. At March 31, 2017, the Company did not hold any equity securities measured at fair value, but did have certain financial liabilities measured at fair value. The significance of adoption is dependent upon the nature of those financial liabilities carried at fair value at the time of adoption. In February 2016, the FASB issued an accounting standards update that requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset to not recognize lease assets and lease liabilities. In transition, lessees are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, which includes a number of optional practical expedients that entities may elect to apply. This guidance is effective for fiscal years beginning after December 15, 2018, with early application permitted. While the Company is currently evaluating the full effect that this guidance will have on its consolidated financial statements, it will result in the recognition of certain operating leases as right-of-use assets and lease liabilities on the consolidated balance sheets. In June 2016, the FASB issued an accounting standards update that amends the guidance for recognizing credit losses on financial instruments measured at amortized cost. This update replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2019. The Company does not expect, based on the Company's current methodologies for accounting for financial instruments, that the adoption of this guidance will have a material impact on its consolidated financial statements. The significance of the adoption of this guidance may change at the time of adoption based on the nature of the Company's financial instruments at that time and the corresponding conclusions reached. In August 2016, the FASB issued an accounting standards update that amends the guidance on the classification of certain cash receipts and cash payments presented within the statement of cash flows to reduce the existing diversity in practice. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The adoption may impact the presentation of cash flows, but will not otherwise have a material impact on the consolidated results of operations or financial condition. In October 2016, the FASB issued an accounting standards update that amends the guidance on the classification of income taxes related to the intra-entity transfer of assets other than inventory. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the effect that this guidance will have on its consolidated financial statements. However, the significance of adoption is dependent on the nature of the transactions and corresponding tax laws in effect at the time of adoption. In November 2016, the FASB issued an accounting standards update that amends the guidance on restricted cash within the statement of cash flows. The update amends the classification of restricted cash and cash equivalents to be included within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The adoption will impact the presentation of the cash flows, but will not otherwise have a material impact on the consolidated results of operations or financial condition. In January 2017, the FASB issued an accounting standards update that amends the guidance on business combinations. The update clarifies the definition of a business and provides a framework that gives entities a basis for making reasonable judgments about whether a transaction should be accounted for as an acquisition of assets or a business. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company will apply this guidance to its assessment of applicable transactions, such as acquisitions and disposals of assets or business, consummated after the adoption date. In January 2017, the FASB issued an accounting standards update that amends the guidance on goodwill. Under the update, goodwill impairment is measured as the amount by which a reporting unit’s carrying value exceeds its fair value, while not exceeding the carrying value of goodwill. The update eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. This guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently considering the timing of adoption and will apply this guidance to applicable impairment tests after the adoption date. In February 2017, the FASB issued an accounting standards update that amends the guidance on derecognition of nonfinancial assets. This guidance clarifies the scope and accounting of a financial asset that meets the definition of an in substance nonfinancial asset and defines the term in substance nonfinancial asset. It also adds guidance for partial sales of nonfinancial assets. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company does not expect that, based on the Company's current methodologies for accounting for nonfinancial assets, the adoption of this guidance will have a material impact on its consolidated financial statements. The significance of the adoption of this guidance may change at the time of adoption based on the nature of the Company's nonfinancial assets at that time and the corresponding conclusions reached. |
Restatement of Previously Issue
Restatement of Previously Issued Consolidated Financial Statements | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement of Previously Issued Consolidated Financial Statements Disclosure | Restatement of Previously Issued Consolidated Financial Statements The restatement of the Company's audited consolidated financial statements results from an error in the calculation of the valuation allowance on the net deferred tax assets balance. In determining the amount of the valuation allowance in the Original Filing, an error was made that resulted in the double-counting of expected future taxable income associated with the projected reversals of taxable temporary differences (i.e., deferred tax liabilities). Accordingly, the Company has revised its calculation to reflect the removal of the duplicative amounts, and reevaluated all sources of estimated future taxable income used to assess the recoverability of deferred tax assets under GAAP after taking into account both positive and negative evidence through the issuance date of the restated financial statements to consider the effect of the error. The determination of the need for a valuation allowance in deferred tax assets under GAAP is highly judgmental and requires the subjective weighting of both positive and negative evidence relating to expectations about the recoverability of those assets. Management has reevaluated both positive and negative evidence through the issuance date of the restated financial statements regarding the use of all sources of future taxable income on the recoverability of its deferred tax assets after correcting for the duplication error. While judgments and estimates made at the time of the Original Filing, using then-available facts and circumstances, are considered to be reasonable and appropriate, the revised analysis has resulted in management's conclusion as of the restatement issuance date that only reversals of deferred tax liabilities and/or net operating loss carrybacks when available should be used as a source of income to recover its deferred tax assets. Based on the revised calculation and analysis, the Company concluded that the valuation allowance on the deferred tax assets should be increased by $302.5 million , which reduces the net deferred tax assets that are expected to be realized in the future. The impact of the adjustment was to reduce the overall net deferred tax assets balance by increasing the valuation allowance, and reducing the tax benefit recorded in the Company's previously issued consolidated statement of comprehensive loss. The consolidated financial statements included in this Form 10-Q/A have been restated as of and for the three months ended March 31, 2017 to reflect the adjustment described above. The following statements present the effect of the restatement on (i) the consolidated balance sheet as of March 31, 2017 and December 31, 2016, (ii) the consolidated statements of comprehensive loss; stockholders’ equity and cash flows for the three months ended March 31, 2017, and (iii) the notes related thereto. The impact to stockholders' equity is reflected below in the restated consolidated balance sheet. The following table presents the consolidated balance sheet as previously reported, restatement adjustments, and the consolidated balance sheet as restated as of March 31, 2017 (in thousands): March 31, 2017 (unaudited) As Previously Reported Restatement Adjustments As Restated ASSETS Cash and cash equivalents $ 237,174 $ — $ 237,174 Restricted cash and cash equivalents 174,324 — 174,324 Residential loans at amortized cost, net 678,482 — 678,482 Residential loans at fair value 12,240,962 — 12,240,962 Receivables, net 224,282 450 224,732 Servicer and protective advances, net 1,005,157 — 1,005,157 Servicing rights, net 1,006,428 — 1,006,428 Goodwill 47,747 — 47,747 Intangible assets, net 10,445 — 10,445 Premises and equipment, net 73,999 — 73,999 Deferred tax assets, net 299,629 (299,629 ) — Other assets 201,346 — 201,346 Total assets $ 16,199,975 $ (299,179 ) $ 15,900,796 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Payables and accrued liabilities $ 699,741 $ — $ 699,741 Servicer payables 138,059 — 138,059 Servicing advance liabilities 662,206 — 662,206 Warehouse borrowings 1,094,677 — 1,094,677 Servicing rights related liabilities at fair value 3,537 — 3,537 Corporate debt 2,112,328 — 2,112,328 Mortgage-backed debt 916,952 — 916,952 HMBS related obligations at fair value 10,289,505 — 10,289,505 Deferred tax liabilities, net — 2,901 2,901 Total liabilities 15,917,005 2,901 15,919,906 Stockholders' equity (deficit): Preferred stock — — — Common stock 365 — 365 Additional paid-in capital 596,905 — 596,905 Accumulated deficit (315,216 ) (302,080 ) (617,296 ) Accumulated other comprehensive income 916 — 916 Total stockholders' equity (deficit) 282,970 (302,080 ) (19,110 ) Total liabilities and stockholders' equity (deficit) $ 16,199,975 $ (299,179 ) $ 15,900,796 The following table presents the consolidated balance sheet as previously reported, restatement adjustments, and the consolidated balance sheet as restated as of December 31, 2016 (in thousands): December 31, 2016 As Previously Reported Restatement Adjustments As Restated ASSETS Cash and cash equivalents $ 224,598 $ — $ 224,598 Restricted cash and cash equivalents 204,463 — 204,463 Residential loans at amortized cost, net 665,209 — 665,209 Residential loans at fair value 12,416,542 — 12,416,542 Receivables, net 267,962 — 267,962 Servicer and protective advances, net 1,195,380 — 1,195,380 Servicing rights, net 1,029,719 — 1,029,719 Goodwill 47,747 — 47,747 Intangible assets, net 11,347 — 11,347 Premises and equipment, net 82,628 — 82,628 Deferred tax assets, net 299,926 (299,926 ) — Assets held for sale 71,085 — 71,085 Other assets 242,290 — 242,290 Total assets $ 16,758,896 $ (299,926 ) $ 16,458,970 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Payables and accrued liabilities $ 759,011 $ — $ 759,011 Servicer payables 146,332 — 146,332 Servicing advance liabilities 783,229 — 783,229 Warehouse borrowings 1,203,355 — 1,203,355 Servicing rights related liabilities at fair value 1,902 — 1,902 Corporate debt 2,129,000 — 2,129,000 Mortgage-backed debt 943,956 — 943,956 HMBS related obligations at fair value 10,509,449 — 10,509,449 Deferred tax liabilities, net — 4,774 4,774 Liabilities held for sale 2,402 — 2,402 Total liabilities 16,478,636 4,774 16,483,410 Stockholders' equity (deficit): Preferred stock — — — Common stock 364 — 364 Additional paid-in capital 596,067 — 596,067 Accumulated deficit (317,104 ) (304,700 ) (621,804 ) Accumulated other comprehensive income 933 — 933 Total stockholders' equity (deficit) 280,260 (304,700 ) (24,440 ) Total liabilities and stockholders' equity (deficit) $ 16,758,896 $ (299,926 ) $ 16,458,970 The following table presents the consolidated statement of comprehensive loss as previously reported, restatement adjustments, and the consolidated statement of comprehensive loss as restated for the three months ended March 30, 2017 (in thousands, except share and per share data): For the Three Months Ended March 31, 2017 (unaudited) As Previously Reported Restatement Adjustments As Restated REVENUES Net servicing revenue and fees $ 113,187 $ — $ 113,187 Net gains on sales of loans 74,356 — 74,356 Net fair value gains on reverse loans and related HMBS obligations 14,702 — 14,702 Interest income on loans 10,980 — 10,980 Insurance revenue 4,940 — 4,940 Other revenues 27,120 — 27,120 Total revenues 245,285 — 245,285 EXPENSES General and administrative 131,627 — 131,627 Salaries and benefits 107,957 — 107,957 Interest expense 60,410 — 60,410 Depreciation and amortization 10,932 — 10,932 Other expenses, net 2,783 — 2,783 Total expenses 313,709 — 313,709 OTHER GAINS Gain on sale of business 67,727 — 67,727 Other net fair value gains 5,083 — 5,083 Total other gains 72,810 — 72,810 Income before income taxes 4,386 — 4,386 Income tax expense (benefit) 2,498 (2,620 ) (122 ) Net income $ 1,888 $ 2,620 $ 4,508 Comprehensive income $ 1,871 $ 2,620 $ 4,491 Basic earnings per common and common equivalent share $ 0.05 $ 0.07 $ 0.12 Diluted earnings per common and common equivalent share $ 0.05 $ 0.07 $ 0.12 Weighted-average common and common equivalent shares outstanding — basic 36,412 — 36,412 Weighted-average common and common equivalent shares outstanding — diluted 36,812 — 36,812 The following table presents the consolidated statement of cash flows as previously reported, restatement adjustments, and the consolidated statement of cash flows as restated for the three months ended March 31, 2017 (in thousands): For the Three Months Ended March 31, 2017 (unaudited) As Previously Reported Restatement Adjustments As Restated Operating activities Net income $ 1,888 $ 2,620 $ 4,508 Adjustments to reconcile net income to net cash provided by operating activities Net fair value gains on reverse loans and related HMBS obligations (14,702 ) — (14,702 ) Amortization of servicing rights 5,025 — 5,025 Change in fair value of servicing rights 53,516 — 53,516 Change in fair value of charged-off loans (10,133 ) — (10,133 ) Other net fair value gains (3,363 ) — (3,363 ) Accretion of discounts on residential loans and advances (928 ) — (928 ) Accretion of discounts on debt and amortization of deferred debt issuance costs 7,740 — 7,740 Provision for uncollectible advances 9,666 — 9,666 Depreciation and amortization of premises and equipment and intangible assets 10,932 — 10,932 Provision (benefit) for deferred income taxes 1,840 (2,170 ) (330 ) Share-based compensation 865 — 865 Purchases and originations of residential loans held for sale (5,187,091 ) — (5,187,091 ) Proceeds from sales of and payments on residential loans held for sale 5,301,187 — 5,301,187 Net gains on sales of loans (74,356 ) — (74,356 ) Gain on sale of business (67,727 ) — (67,727 ) Other 2,506 — 2,506 Changes in assets and liabilities Decrease in receivables 9,262 (450 ) 8,812 Decrease in servicer and protective advances 180,432 — 180,432 Increase in other assets (4,774 ) — (4,774 ) Decrease in payables and accrued liabilities (82,751 ) — (82,751 ) Increase in servicer payables, net of change in restricted cash 7,698 — 7,698 Cash flows provided by operating activities 146,732 — 146,732 Investing activities Purchases and originations of reverse loans held for investment (130,269 ) — (130,269 ) Principal payments received on reverse loans held for investment 277,262 — 277,262 Principal payments received on mortgage loans held for investment 23,981 — 23,981 Payments received on charged-off loans held for investment 5,025 — 5,025 Payments received on receivables related to Non-Residual Trusts 3,754 — 3,754 Proceeds from sales of real estate owned, net 34,344 — 34,344 Purchases of premises and equipment (469 ) — (469 ) Increase in restricted cash and cash equivalents (1,887 ) — (1,887 ) Payments for acquisitions of businesses, net of cash acquired (804 ) — (804 ) Acquisitions of servicing rights, net (109 ) — (109 ) Proceeds from sales of servicing rights, net 29,673 — 29,673 Proceeds from sale of business 131,067 — 131,067 Other 9,524 — 9,524 Cash flows provided by investing activities 381,092 — 381,092 For the Three Months Ended March 31, 2017 (unaudited) As Previously Reported Restatement Adjustments As Restated Financing activities Payments on corporate debt (21,285 ) — (21,285 ) Proceeds from securitizations of reverse loans 154,316 — 154,316 Payments on HMBS related obligations (400,693 ) — (400,693 ) Issuances of servicing advance liabilities 328,341 — 328,341 Payments on servicing advance liabilities (449,636 ) — (449,636 ) Net change in warehouse borrowings related to mortgage loans (116,795 ) — (116,795 ) Net change in warehouse borrowings related to reverse loans 8,117 — 8,117 Payments on servicing rights related liabilities (1,415 ) — (1,415 ) Payments on mortgage-backed debt (28,619 ) — (28,619 ) Other debt issuance costs paid (964 ) — (964 ) Other 13,385 — 13,385 Cash flows used in financing activities (515,248 ) — (515,248 ) Net increase in cash and cash equivalents 12,576 — 12,576 Cash and cash equivalents at beginning of the period 224,598 — 224,598 Cash and cash equivalents at end of the period $ 237,174 $ — $ 237,174 |
Going Concern
Going Concern | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern Disclosure | Going Concern The Company is facing certain challenges and uncertainties that could have significant adverse effects on its business, liquidity and financing activities. The Company may be adversely impacted by the following factors, among others: failure to maintain sufficient liquidity to operate its servicing and lending businesses due to the inability to renew, replace or extend its advance financing or warehouse facilities on favorable terms, or at all; failure to comply with covenants contained in its debt agreements or obtain any necessary waivers or amendments; failure to resolve its obligation with respect to the remaining mandatory clean-up calls; and failure to successfully restructure its corporate debt. As disclosed in Note 10, the Company uses and relies upon short-term borrowing facilities to fund its servicing, originations and reverse mortgage operating businesses. As a result of continued losses, the need for additional waivers and/or amendments, including those required as a result of or in connection with the restatement discussed in Note 2, and the passage of time since the Company first announced its debt restructuring initiative, certain of the Company’s lenders have effected reductions in its advance rates and/or have required other changes to the terms of such facilities, which has negatively impacted the Company’s available liquidity and capital resources. Each of these facilities is typically subject to renewal each year. Borrowing capacity on the various facilities is dependent upon maintaining compliance with the representations, terms, conditions and covenants of the respective agreements. The Company intends to renew, replace, or expand its facilities consistent with its past practices and may seek waivers or amendments in the future, if necessary. The Company is in negotiations with current and prospective lenders regarding expanded financing capacity for its reverse loan repurchases and/or replacement financing capacity for its originations business in the event the Company experiences a material reduction in the financing capacity available to it under its existing borrowing facilities or otherwise requires additional financing capacity to support its businesses and obligations. No assurance can be given that the Company will be successful in maintaining adequate financing capacity with its current or prospective lenders. The Company continues to focus on its debt restructuring initiative to seek to improve its capital structure through the restructuring of its corporate debt and continues to incur significant expense in connection therewith. On July 31, 2017, the Company entered into a Restructuring Support Agreement with lenders holding, as of July 31, 2017, more than 50% of the loans and/or commitments outstanding under the 2013 Credit Agreement. As set forth in the Restructuring Support Agreement, the parties thereto have agreed to, among other things, the principal terms of a proposed financial restructuring of the Company, which will be implemented through an out-of-court restructuring and, in the absence of sufficient stakeholder support for an out-of-court restructuring, a prepackaged plan of reorganization under Chapter 11 of the Bankruptcy Code. The Restructuring Support Agreement contains a number of conditions and milestones, including reaching an agreement with the holders of at least 66⅔% aggregate principal amount of Senior Notes to a restructuring support agreement consistent with the terms specified in the Restructuring Support Agreement. The Company and its debt restructuring advisors intend to continue to negotiate with the financial and legal advisors to ad hoc groups of holders of the Senior Notes and the lenders under the 2013 Credit Agreement as the Company seeks to obtain sufficient stakeholder support for a comprehensive de-leveraging transaction. Pursuant to the terms of the Restructuring Support Agreement, on the dates specified in the Restructuring Support Agreement, the Company is obligated to purchase at par (or in certain limited circumstances, voluntarily prepay) the term loans of the lenders who become party to the Restructuring Support Agreement in an aggregate principal amount of $100 million . On July 31, 2017, the Company entered into a third amendment to the 2013 Credit Agreement pursuant to which the 2013 Credit Agreement was amended to, among other things, require that upon receipt by the Company or certain of its subsidiaries of the gross proceeds of any disposition of certain Bulk MSR by the Company or such subsidiaries, the Company shall make a prepayment of the term loans in an amount equal to 80% of such gross proceeds; provided that, to the extent as of the earlier of 120 days following the effective date (as defined in the Restructuring Support Agreement) and February 15, 2018 the aggregate principal amount of term loans prepaid as a result of such prepayments is less than $100 million , the Company shall be required to prepay as of such date the term loans in an amount equal to $100 million minus the amount of proceeds of such dispositions of Bulk MSR previously applied to prepay the term loans after the date of the third amendment to the 2013 Credit Agreement pursuant to such mandatory prepayment. The Third Amendment also requires mandatory prepayments of the term loans in an amount equal to (i) 80% of the net sale proceeds of non-ordinary course asset sales and dispositions of certain Bulk MSR and (ii) 100% of the net sale proceeds of certain non-core assets, in each case, received by the Company and certain of its subsidiaries. As discussed previously, the Company is subject to various financial and other covenants under its existing debt agreements, many of which contain cross default provisions such that if a default occurs under any one agreement, the lenders under certain of the Company’s other debt agreements could declare a default. The lenders can waive their contractual rights in the event of a default. In connection with the financial statement restatement discussed in Note 2 and the circumstances impacting the Company's ability to continue as a going concern included in this disclosure, the Company received waivers and/or amendments under its warehouse and advance financing facilities, the 2013 Credit Agreement and the Senior Notes Indenture to the extent necessary to waive any default, event of default, amortization event, termination event or similar event resulting or arising from the restatement discussed in Note 2 and the going concern matters discussed herein. The Company is not currently in compliance with, and may be unable to regain and/or maintain compliance with, certain continued listing standards of the NYSE. If the Company is unable to cure any event of noncompliance with any continued listing standard of the NYSE within the applicable timeframe and other parameters set forth by the NYSE, or if the Company fails to maintain compliance with certain continued listing standards that do not provide for a cure period, it will result in the delisting of the Company’s common stock from the NYSE, which could negatively impact the trading price, trading volume and liquidity of, and have other material adverse effects on, the Company’s common stock. If the Company’s common stock is delisted from the NYSE, this could also have negative implications on the Company’s business relationships under the Company’s material agreements with lenders and other counterparties. If the Company’s common stock is delisted from the NYSE, it would constitute a fundamental change as that term is defined under the terms of the Convertible Notes, and require, among other things, that the Company take steps to make an offer to repay the Convertible Notes at 100% of the principal amount thereof. The Company currently is not permitted to repurchase the Convertible Notes pursuant to the terms of certain of its debt facilities and agreements. If the Company is de-listed and is not able to satisfy this obligation, it would constitute an event of default under the indenture governing the Convertible Notes. In such event, the trustee or the holders of 25% in aggregate principal amount outstanding of the Convertible Notes will have the right to accelerate such indebtedness. The Company’s subsidiaries are parties to seller/servicer agreements with, and/or subject to the guidelines and regulations of (collectively, the seller/servicer obligations), the GSEs and various government agencies, including HUD, FHA, VA and Ginnie Mae. These seller/servicer obligations include financial covenants and other requirements as defined by the applicable agency. To the extent that these seller/servicer obligations are not met, the applicable GSE or government agency may, at its option, take action to implement one or more of a variety of remedies including, without limitation, requiring certain Company subsidiaries to deposit funds as security for one or more of such subsidiaries’ obligations to the GSEs or government agencies, imposing sanctions on one or more of such subsidiaries, which could include monetary fines or penalties, forcing one or more subsidiaries to transfer servicing on all or a portion of the mortgage loans such subsidiary services for the applicable GSE or government agency, and/or suspending or terminating the approved seller/servicer status of one or more subsidiaries, which could prohibit or severely limit the ability of one or more subsidiaries to originate, service and/or securitize mortgage loans for the applicable GSE or agency. To date, none of the GSEs or government agencies with which the Company and its subsidiaries do business has communicated any material sanction, suspension or prohibition that would materially adversely affect the Company’s business; however, the GSEs and certain of such government agencies have required frequent reporting regarding the financial status of the Company, including preliminary financial results and the availability to the Company of financing capacity under its existing borrowing facilities. The GSEs and certain of such government agencies have also requested frequent telephonic updates with senior Company management regarding the status of the Company’s debt restructuring initiative and other matters. The Company’s subservicing agreements also contain requirements regarding servicing practices and other matters, and a failure to comply with these requirements could have an adverse impact on the Company’s business and liquidity. As disclosed in Note 13, the Company is obligated to exercise the mandatory clean-up call obligations assumed as part of an agreement to acquire the rights to service the loans in the Non-Residual Trusts. Additionally, as part of its Reverse Mortgage segment, the Company is obligated to purchase loans out of Ginnie Mae securitization pools under certain circumstances. To address the challenges and uncertainties set forth above, the Company is proactively engaged with its lenders and other counterparties as follows: • Prior to the issuance of the restated consolidated financial statements discussed in Note 2, the Company entered into amendments and/or obtained waivers from each lender, to the extent necessary, to waive any default, event of default, amortization event, termination event or similar event resulting or arising from the restatement discussed in Note 2 or the substantial doubt as to the Company’s ability to continue as a going concern described in this Note 3, and/or to allow for compliance with profitability covenants at the Ditech level; • As a result of the above waivers and/or amendments, no known events of default exist, and amounts due under the Company's outstanding material debt and financing agreements have not been accelerated; • While the Company believes that the debt facilities it relies on to support ongoing operations remain renewable in the ordinary course of business, the Company is seeking additional, or expansion of existing facilities to provide adequate financing capacity for new loan originations should existing facilities not be renewed at their maturity date. The Company may also consider temporary volume reductions within the business lending channel of the originations business, if necessary; • The Company is seeking additional, or expansion of existing, master repurchase or similar agreements for continued growth of the required reverse loan repurchases. As part of this effort, in August 2017, RMS has entered into an amendment that increases the size of an existing credit facility by $100 million on a committed basis. The facility expires in May 2018 . Additionally, in the future, the Company may seek to access the securitization market, if such market is available to the Company, to provide adequate financing capacity for continued growth in the number and amount of required reverse loan repurchases; • The Company is in the process of negotiating a term sheet with a counterparty to resolve its obligations with respect to the remaining mandatory clean-up calls. The negotiated resolution is expected to cover all mandatory calls starting in the fourth quarter of 2017; • The Company has been in contact with the NYSE and is working to regain compliance with NYSE continued listing requirements, including, among other things, by restructuring its corporate debt. The Company continues to monitor other listing standards. No assurance can be given that the Company’s common stock will not be delisted from the NYSE; and • The Company continues to engage in communications with key stakeholders, including the GSEs, Ginnie Mae, HUD, regulators and government agencies in connection with the restatement discussed in Note 2, the status of the Company’s debt restructuring initiative, and the uncertainties regarding the Company’s ability to continue as a going concern as identified above. To date, none of these key stakeholders have communicated any material sanctions, suspensions or prohibitions. The above factors have been taken into account in assessing the Company’s liquidity and ability to meet its obligations for the next twelve months from the date of issuance of these financial statements. Based on this assessment, management has concluded that while there can be no assurance that the Company’s recent and future actions will be successful in mitigating the above risks and uncertainties, the Company’s current plans provide enough liquidity to meets its obligations over the next twelve months from the date of issuance of these financial statements. However, as set forth in the Restructuring Support Agreement, the parties thereto have agreed to, among other things, the principal terms of a proposed financial restructuring of the Company, which will be implemented through an out-of-court restructuring and, in the absence of sufficient stakeholder support for an out-of-court restructuring, a prepackaged plan of reorganization under Chapter 11 of the Bankruptcy Code. The potential for a prepackaged Chapter 11 filing raises substantial doubt about the Company’s ability to continue as a going concern that has not been alleviated. The Company’s consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company will continue to monitor progress on its initiatives and the impact on its ongoing assessment of going concern in future periods. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities Disclosure | Variable Interest Entities Consolidated Variable Interest Entities Included in Note 7 to the consolidated financial statements in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2016 are descriptions of the Company’s Consolidated VIEs. Included in the tables below are summaries of the carrying amounts of the assets and liabilities of consolidated VIEs (in thousands): March 31, 2017 Residual Non-Residual Servicer and Protective Advance Financing Facilities Revolving Credit Facilities-Related VIEs Total Assets Restricted cash and cash equivalents $ 14,109 $ 11,606 $ 18,539 $ — $ 44,254 Residential loans at amortized cost, net 453,474 — — — 453,474 Residential loans at fair value — 440,219 — — 440,219 Receivables, net — 13,848 — — 13,848 Servicer and protective advances, net — — 607,357 — 607,357 Other assets 8,302 726 1,018 3,955 14,001 Total assets $ 475,885 $ 466,399 $ 626,914 $ 3,955 $ 1,573,153 Liabilities Payables and accrued liabilities $ 2,048 $ — $ 729 $ — $ 2,777 Servicing advance liabilities — — 542,528 — 542,528 Mortgage-backed debt 418,184 498,768 — — 916,952 Total liabilities $ 420,232 $ 498,768 $ 543,257 $ — $ 1,462,257 December 31, 2016 Residual Non-Residual Servicer and Protective Advance Financing Facilities Revolving Credit Facilities-Related VIEs Total Assets Restricted cash and cash equivalents $ 13,321 $ 10,257 $ 22,265 $ — $ 45,843 Residential loans at amortized cost, net 462,877 — — — 462,877 Residential loans at fair value — 450,377 — 42,122 492,499 Receivables, net — 15,033 — 765 15,798 Servicer and protective advances, net — — 734,707 — 734,707 Other assets 10,028 1,028 1,440 7,335 19,831 Total assets $ 486,226 $ 476,695 $ 758,412 $ 50,222 $ 1,771,555 Liabilities Payables and accrued liabilities $ 2,140 $ — $ 845 $ — $ 2,985 Servicing advance liabilities — — 650,565 — 650,565 Mortgage-backed debt 429,931 514,025 — — 943,956 Total liabilities $ 432,071 $ 514,025 $ 651,410 $ — $ 1,597,506 Unconsolidated Variable Interest Entities Included in Note 7 to the consolidated financial statements in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2016 are descriptions of the Company's variable interests in VIEs that it does not consolidate as it has determined that it is not the primary beneficiary of the VIEs. Additionally, refer to Note 15 for information on the Company's transactions with WCO. |
Transfers of Residential Loans
Transfers of Residential Loans | 3 Months Ended |
Mar. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Transfers of Residential Loans Disclosure | Transfers of Residential Loans Sales of Mortgage Loans As part of its originations activities, the Company sells substantially all of its originated or purchased mortgage loans into the secondary market for securitization or to private investors as whole loans. The Company sells conventional-conforming and government-backed mortgage loans through GSE and agency-sponsored securitizations in which mortgage-backed securities are created and sold to third-party investors. The Company also sells non-conforming mortgage loans to private investors. The Company accounts for these transfers as sales. Historically, the Company has generally retained the rights to subservice the MSR on the sold loans. If the servicing rights are retained, the Company receives a servicing fee for servicing the sold loans, which represents continuing involvement. Certain guarantees arise from agreements associated with the sale of the Company's residential loans. Under these agreements, the Company may be obligated to repurchase loans, or otherwise indemnify or reimburse the credit owner or insurer for losses incurred, due to a breach of contractual representations and warranties. Refer to Note 13 for additional information. The following table presents the carrying amounts of the Company’s net assets that relate to its continuing involvement with mortgage loans that have been sold with servicing rights retained and the unpaid principal balance of these sold loans (in thousands): Carrying Value of Net Assets Unpaid Servicing (1) Servicer and Payables and Accrued Liabilities Total March 31, 2017 $ 451,192 $ 18,341 $ (3,537 ) $ 465,996 $ 38,237,665 December 31, 2016 439,062 21,825 (1,983 ) 458,904 36,116,570 __________ (1) During the three months ended March 31, 2017, the Company revised the December 31, 2016 disclosed amount of net servicing rights and payables and accrued liabilities balances for which the Company has continuing involvement. The total net servicing rights and payables and accrued liabilities balances reported in the consolidated balance sheets as of December 31, 2016 was not impacted by this disclosure revision. At March 31, 2017 and December 31, 2016 , 1.2% and 1.3% , respectively, of mortgage loans sold and serviced by the Company were 60 days or more past due. The following table presents a summary of cash flows related to sales of mortgage loans (in thousands): For the Three Months 2017 2016 Cash proceeds received from sales, net of fees $ 5,252,552 $ 5,464,865 Servicing fees collected (1) 30,803 34,772 Repurchases of previously sold loans 17,503 5,932 __________ (1) Represents servicing fees collected on all loans sold whereby the Company has continuing involvement with mortgage loans that have been sold with servicing rights retained. In connection with these sales, the Company recorded servicing rights using either a fair value model that utilizes Level 3 unobservable inputs or using an agreed upon sales price considered level 2. Refer to Note 8 for information relating to servicing of residential loans. Transfers of Reverse Loans The Company, through RMS, is an approved issuer of Ginnie Mae HMBS. The HMBS are guaranteed by Ginnie Mae and collateralized by participation interests in HECMs insured by the FHA. The Company both originated and purchased HECMs that are pooled and securitized into HMBS that the Company sells into the secondary market with servicing rights retained. Effective January 2017, the Company exited the reverse mortgage originations business, although the Company intends to fulfill reverse loans in its originations pipeline consistent with its underwriting practices and to fund undrawn amounts available to borrowers. Based upon the structure of the Ginnie Mae securitization program, the Company has determined that it has not met all of the requirements for sale accounting and accounts for these transfers as secured borrowings. Under this accounting treatment, the reverse loans remain on the consolidated balance sheets as residential loans. The proceeds from the transfer of reverse loans are recorded as HMBS related obligations with no gain or loss recognized on the transfer. Ginnie Mae, as guarantor of the HMBS, is obligated to the holders of the HMBS in an instance of RMS default on its servicing obligations, or when the proceeds realized on HECMs are insufficient to repay all outstanding HMBS related obligations. Ginnie Mae has recourse to RMS to the extent of the participation interests in HECMs serving as collateral to the HMBS, but does not have recourse to the general assets of the Company, except that Ginnie Mae has recourse to RMS in connection with certain claims relating to the performance and obligations of RMS as both an issuer of HMBS and a servicer of HECMs underlying HMBS. At March 31, 2017 , the unpaid principal balance and the carrying value associated with both the reverse loans and the real estate owned pledged as collateral to the securitization pools were $9.7 billion and $10.2 billion , respectively. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Basis for Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A three-tier fair value hierarchy is used to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: Level 1 — Valuation is based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 — Valuation is based on quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 — Valuation is based on inputs that are both significant to the fair value measurement and unobservable. The accounting guidance concerning fair value allows the Company to elect to measure financial instruments at fair value and report the changes in fair value through net income or loss. This election can only be made at certain specified dates and is irrevocable once made. Other than mortgage loans held for sale, which the Company has elected to measure at fair value, the Company does not have a fair value election policy, but rather makes the election on an instrument-by-instrument basis as assets and liabilities are acquired or incurred, other than for those assets and liabilities that are required to be recorded and subsequently measured at fair value. Transfers into and out of the fair value hierarchy levels are assumed to be as of the end of the quarter in which the transfer occurred. There were no transfers between levels during the three months ended March 31, 2017 or 2016. Items Measured at Fair Value on a Recurring Basis The following table summarizes the assets and liabilities in each level of the fair value hierarchy (in thousands). There was an insignificant amount of assets or liabilities measured at fair value on a recurring basis utilizing Level 1 assumptions. March 31, December 31, Level 2 Assets Mortgage loans held for sale $ 1,148,940 $ 1,176,280 Servicing rights carried at fair value 21,063 13,170 Freestanding derivative instruments 1,826 34,543 Level 2 assets $ 1,171,829 $ 1,223,993 Liabilities Freestanding derivative instruments $ 13,557 $ 7,611 Servicing rights related liabilities 3,537 1,902 Level 2 liabilities $ 17,094 $ 9,513 Level 3 Assets Reverse loans $ 10,599,732 $ 10,742,922 Mortgage loans related to Non-Residual Trusts 440,219 450,377 Charged-off loans 52,071 46,963 Receivables related to Non-Residual Trusts 13,848 15,033 Servicing rights carried at fair value 909,270 936,423 Freestanding derivative instruments (IRLCs) 45,347 53,394 Level 3 assets $ 12,060,487 $ 12,245,112 Liabilities Freestanding derivative instruments (IRLCs) $ 714 $ 4,193 Mortgage-backed debt related to Non-Residual Trusts 498,768 514,025 HMBS related obligations 10,289,505 10,509,449 Level 3 liabilities $ 10,788,987 $ 11,027,667 The following assets and liabilities are measured on the consolidated balance sheets at fair value on a recurring basis utilizing significant unobservable inputs or Level 3 assumptions in their valuation. The following tables provide a reconciliation of the beginning and ending balances of these assets and liabilities (in thousands): For the Three Months Ended March 31, 2017 Fair Value Total Purchases Sales and Other Originations / Issuances Settlements Fair Value Assets Reverse loans $ 10,742,922 $ 42,612 $ 43,134 $ — $ 87,062 $ (315,998 ) $ 10,599,732 Mortgage loans related to Non-Residual Trusts 450,377 12,502 — — — (22,660 ) 440,219 Charged-off loans (1) 46,963 14,591 — — — (9,483 ) 52,071 Receivables related to Non-Residual Trusts 15,033 2,569 — — — (3,754 ) 13,848 Servicing rights carried at fair value 936,423 (52,479 ) 446 76 24,804 — 909,270 Freestanding derivative instruments (IRLCs) 53,394 (8,006 ) — — — (41 ) 45,347 Total assets $ 12,245,112 $ 11,789 $ 43,580 $ 76 $ 111,866 $ (351,936 ) $ 12,060,487 Liabilities Freestanding derivative instruments (IRLCs) $ (4,193 ) $ 3,479 $ — $ — $ — $ — $ (714 ) Mortgage-backed debt related to Non-Residual Trusts (514,025 ) (8,559 ) — — — 23,816 (498,768 ) HMBS related obligations (10,509,449 ) (27,910 ) — — (154,315 ) 402,169 (10,289,505 ) Total liabilities $ (11,027,667 ) $ (32,990 ) $ — $ — $ (154,315 ) $ 425,985 $ (10,788,987 ) __________ (1) Included in gains on charged-off loans are gains from instrument-specific credit risk, which primarily result from changes in assumptions related to collection rates and discount rates, of $10.1 million during the three months ended March 31, 2017 . For the Three Months Ended March 31, 2016 Fair Value Total Purchases and Other Originations / Issuances Settlements Fair Value Assets Reverse loans $ 10,763,816 $ 154,834 $ 54,020 $ 127,151 $ (226,930 ) $ 10,872,891 Mortgage loans related to Non-Residual Trusts 526,016 5,163 — — (24,842 ) 506,337 Charged-off loans (1) 49,307 14,376 — — (10,437 ) 53,246 Receivables related to Non-Residual Trusts 16,542 (467 ) — — (1,957 ) 14,118 Servicing rights carried at fair value 1,682,016 (326,580 ) 19,637 52,258 — 1,427,331 Freestanding derivative instruments (IRLCs) 51,519 13,102 — — (214 ) 64,407 Total assets $ 13,089,216 $ (139,572 ) $ 73,657 $ 179,409 $ (264,380 ) $ 12,938,330 Liabilities Freestanding derivative instruments (IRLCs) $ (1,070 ) $ 815 $ — $ — $ — $ (255 ) Servicing rights related liabilities (117,000 ) 3,294 — — 8,147 (105,559 ) Mortgage-backed debt related to Non-Residual Trusts (582,340 ) (6,932 ) — — 24,440 (564,832 ) HMBS related obligations (10,647,382 ) (119,626 ) — (202,947 ) 272,520 (10,697,435 ) Total liabilities $ (11,347,792 ) $ (122,449 ) $ — $ (202,947 ) $ 305,107 $ (11,368,081 ) __________ (1) Included in gains on charged-off loans are gains from instrument-specific credit risk, which primarily result from changes in assumptions related to collection rates and discount rates, of $10.9 million during the three months ended March 31, 2016 . All gains and losses on assets and liabilities measured at fair value on a recurring basis and classified as Level 3 within the fair value hierarchy, with the exception of gains and losses on charged-off loans, IRLCs, servicing rights carried at fair value, and servicing rights related liabilities, are recognized in either other net fair value gains (losses) or net fair value gains on reverse loans and related HMBS obligations on the consolidated statements of comprehensive income (loss). Gains and losses related to charged-off loans are recorded in other revenues, while gains and losses relating to IRLCs are recorded in net gains on sales of loans on the consolidated statements of comprehensive income (loss). The change in fair value of servicing rights carried at fair value and servicing rights related liabilities are recorded in net servicing revenue and fees on the consolidated statements of comprehensive income (loss). Total gains and losses included in the financial statement line items disclosed above include interest income and interest expense at the stated rate for interest-bearing assets and liabilities, respectively, accretion and amortization, and the impact of the changes in valuation inputs and assumptions. The Company’s Valuation Committee determines and approves valuation policies and unobservable inputs used to estimate the fair value of items measured at fair value on a recurring basis. The Valuation Committee, consisting of certain members of the senior executive management team, meets on a quarterly basis to review the assets and liabilities that require fair value measurement, including how each asset and liability has actually performed in comparison to the unobservable inputs and the projected performance. The Valuation Committee also reviews related available market data. The following is a description of the methods used to estimate the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis, as well as the basis for classifying these assets and liabilities as Level 2 or 3 within the fair value hierarchy. The Company’s valuations consider assumptions that it believes a market participant would consider in valuing the assets and liabilities, the most significant of which are disclosed below. The Company reassesses and periodically adjusts the underlying inputs and assumptions used in the valuations for recent historical experience, as well as for current and expected relevant market conditions. Residential loans • Reverse loans, mortgage loans related to Non-Residual Trusts and charged-off loans — These loans are not traded in an active, open market with readily observable prices. Accordingly, the Company estimates fair value using Level 3 unobservable market inputs. The estimated fair value is based on the net present value of projected cash flows over the estimated life of the loans. The discount rate assumption for these assets considers, as applicable, collateral and credit risk characteristics of the loans, collection rates, current market interest rates, expected duration, and current market yields. • Mortgage loans held for sale — These loans are valued using a market approach by utilizing observable quoted market prices, where available, or prices for other whole loans with similar characteristics. The Company classifies these loans as Level 2 within the fair value hierarchy. Receivables related to Non-Residual Trusts — The Company estimates the fair value of these receivables using the net present value of expected cash flows from the LOCs to be used to pay bondholders over the remaining life of the securitization trusts and applies Level 3 unobservable market inputs in its valuation. Receivables related to Non-Residual Trusts are recorded in receivables, net on the consolidated balance sheets. Servicing rights carried at fair value — The Company accounts for servicing rights associated with the risk-managed loan class at fair value. The Company primarily uses a discounted cash flow model to estimate the fair value of these assets, unless there is an agreed upon sales price for a specific portfolio on or prior to the applicable reporting date relating to such reporting period, in which case the assets are valued at the price that the trade will be executed. The assumptions used in the discounted cash flow model vary based on collateral stratifications including product type, remittance type, geography, delinquency, and coupon dispersion of the underlying loan portfolio. The Company classifies servicing rights that are valued at the agreed upon sales price within Level 2 of the fair value hierarchy, and the servicing rights that are valued using a discounted cash flow model are classified within Level 3 of the fair value hierarchy. The Company obtains third-party valuations on a quarterly basis to assess the reasonableness of the fair values calculated by the cash flow model. Freestanding derivative instruments — Fair values of IRLCs are derived using valuation models incorporating market pricing for instruments with similar characteristics and by estimating the fair value of the servicing rights expected to be recorded at sale of the loan. The fair values are then adjusted for anticipated loan funding probability. Both the fair value of servicing rights expected to be recorded at the date of sale of the loan and anticipated loan funding probability are significant unobservable inputs and, as a result, IRLCs are classified as Level 3 within the fair value hierarchy. The loan funding probability ratio represents the aggregate likelihood that loans currently in a lock position will ultimately close, which is largely dependent on the loan processing stage that a loan is currently in and changes in interest rates from the time of the rate lock through the time a loan is closed. IRLCs have positive fair value at inception and change in value as interest rates and loan funding probability change. Rising interest rates have a positive effect on the fair value of the servicing rights component of the IRLC fair value and increase the loan funding probability. An increase in loan funding probability (i.e., higher aggregate likelihood of loans estimated to close) will result in the fair value of the IRLC increasing if in a gain position, or decreasing, to a lower loss, if in a loss position. A significant increase (decrease) to the fair value of servicing rights component in isolation could result in a significantly higher (lower) fair value measurement. The fair value of forward sales commitments and MBS purchase commitments is determined based on observed market pricing for similar instruments; therefore, these contracts are classified as Level 2 within the fair value hierarchy. Counterparty credit risk is taken into account when determining fair value, although the impact is diminished by daily margin posting on all forward sales and purchase commitments. Refer to Note 7 for additional information on freestanding derivative financial instruments. Servicing rights related liabilities — The fair value of the MSR liabilities related to NRM sales is consistent with the fair value methodology of the related servicing rights. Mortgage-backed debt related to Non-Residual Trusts — This debt is not traded in an active, open market with readily observable prices. Accordingly, the Company estimates fair value using Level 3 unobservable market inputs. The estimated fair value of the debt is based on the net present value of the projected principal and interest payments owed for the estimated remaining life of the securitization trusts. An analysis of the credit assumptions for the underlying collateral in each of the securitization trusts is performed to determine the required payments to bondholders. HMBS related obligations — These obligations are not traded in an active, open market with readily observable prices. Accordingly, the Company estimates fair value using Level 3 unobservable market inputs. The estimated fair value is based on the net present value of projected cash flows over the estimated life of the liabilities. The discount rate assumption for these liabilities is based on an assessment of current market yields for HMBS, expected duration, and current market interest rates. The yield on seasoned HMBS is adjusted based on the duration of each HMBS and assuming a constant spread to LIBOR. The following tables present the significant unobservable inputs used in the fair value measurement of the assets and liabilities described above. The Company utilizes a discounted cash flow model to estimate the fair value of all Level 3 assets and liabilities included on the consolidated financial statements at fair value on a recurring basis, with the exception of IRLCs for which the Company utilizes a market approach. Significant increases or decreases in any of the inputs disclosed below could result in a significantly lower or higher fair value measurement. March 31, 2017 December 31, 2016 Significant (1) (2) Range of Input (3) Weighted (3) Range of Input (3) Weighted (3) Assets Reverse loans Weighted-average remaining life in years (4) 0.5 - 9.8 3.7 0.6 - 10.2 3.8 Conditional repayment rate 12.17% - 59.43% 29.58 % 13.23% - 55.32% 28.48 % Discount rate 2.04% - 3.72% 3.00 % 1.93% - 3.69% 2.93 % Mortgage loans related to Non-Residual Trusts Conditional prepayment rate 1.91% - 2.44% 2.19 % 1.98% - 2.67% 2.27 % Conditional default rate 0.99% - 5.10% 2.50 % 1.02% - 4.25% 2.61 % Loss severity 85.33% - 100.00% 97.73 % 79.98% - 100.00% 96.61 % Discount rate 8.00% 8.00 % 8.00% 8.00 % Charged-off loans Collection rate 3.20% - 5.37% 3.31 % 2.69% - 3.55% 2.74 % Discount rate 28.00% 28.00 % 28.00% 28.00 % Receivables related to Non-Residual Trusts Conditional prepayment rate 2.27% - 3.07% 2.73 % 2.22% - 3.17% 2.65 % Conditional default rate 2.56% - 5.84% 3.63 % 2.32% - 4.66% 3.34 % Loss severity 83.45% - 100.00% 95.97 % 77.88% - 100.00% 94.51 % Discount rate 0.50% 0.50 % 0.50% 0.50 % Servicing rights carried at fair value Weighted-average remaining life in years (4) 2.5 - 7.5 6.0 2.6 - 7.4 6.0 Discount rate 10.71% - 15.27% 11.83 % 10.68% - 14.61% 11.56 % Conditional prepayment rate 5.89% - 23.00% 9.24 % 5.76% - 21.67% 9.09 % Conditional default rate 0.04% - 3.02% 0.90 % 0.04% - 2.97% 0.88 % Cost to service $62 - $1,181 $130 $62 - $1,260 $128 Interest rate lock commitments Loan funding probability 2.28% - 100.00% 71.91 % 16.00% - 100.00% 75.86 % Fair value of initial servicing rights multiple (5) 0.01 - 5.82 3.01 0.01 - 5.98 3.06 March 31, 2017 December 31, 2016 Significant (1) (2) Range of Input (3) Weighted (3) Range of Input (3) Weighted (3) Liabilities Interest rate lock commitments Loan funding probability 18.75% - 100.00% 81.13 % 34.40% - 100.00% 83.36 % Fair value of initial servicing rights multiple (5) 0.02 - 5.16 3.52 0.04 - 6.04 3.69 Mortgage-backed debt related to Non-Residual Trusts Conditional prepayment rate 2.27% - 3.07% 2.73 % 2.22% - 3.17% 2.65 % Conditional default rate 2.56% - 5.84% 3.63 % 2.32% - 4.66% 3.34 % Loss severity 83.45% - 100.00% 95.97 % 77.88% - 100.00% 94.51 % Discount rate 6.00% 6.00 % 6.00% 6.00 % HMBS related obligations Weighted-average remaining life in years (4) 0.4 - 7.2 3.1 0.4 - 7.2 3.2 Conditional repayment rate 11.77% - 64.92% 28.84 % 11.49% - 57.76% 27.74 % Discount rate 1.59% - 3.19% 2.63 % 1.50% - 3.17% 2.56 % __________ (1) Conditional repayment rate includes assumptions for both voluntary and involuntary rates as well as assumptions for the assignment of HECMs to HUD, in accordance with obligations as servicer. (2) Voluntary and involuntary prepayment rates have been presented as conditional prepayment rate and conditional default rate, respectively. (3) With the exception of loss severity, fair value of initial servicing rights embedded in IRLCs and discount rate on charged-off loans, all significant unobservable inputs above are based on the related unpaid principal balance of the underlying collateral, or in the case of HMBS related obligations, the balance outstanding. Loss severity is based on projected liquidations. Fair value of servicing rights embedded in IRLCs represents a multiple of the annual servicing fee. The discount rate on charged-off loans is based on the loan balance at fair value. (4) Represents the remaining weighted-average life of the related unpaid principal balance or balance outstanding of the underlying collateral adjusted for assumptions for conditional repayment rate, conditional prepayment rate and conditional default rate, as applicable. (5) Fair value of servicing rights embedded in IRLCs, which represents a multiple of the annual servicing fee, excludes the impact of certain IRLCs identified as servicing released for which the Company does not ultimately realize the benefits. Fair Value Option With the exception of freestanding derivative instruments, the Company has elected the fair value option for the assets and liabilities described above as measured at fair value on a recurring basis. The fair value option was elected for these assets and liabilities as the Company believes fair value best reflects their expected future economic performance. Presented in the table below is the estimated fair value and unpaid principal balance of loans and debt instruments that have contractual principal amounts and for which the Company has elected the fair value option (in thousands): March 31, 2017 December 31, 2016 Estimated Unpaid Principal Estimated Unpaid Principal Loans at fair value under the fair value option Reverse loans (1) $ 10,599,732 $ 10,139,017 $ 10,742,922 $ 10,218,007 Mortgage loans held for sale (1) 1,148,940 1,098,763 1,176,280 1,148,897 Mortgage loans related to Non-Residual Trusts 440,219 495,041 450,377 513,545 Charged-off loans 52,071 2,417,501 46,963 2,439,318 Total $ 12,240,962 $ 14,150,322 $ 12,416,542 $ 14,319,767 Debt instruments at fair value under the fair value option Mortgage-backed debt related to Non-Residual Trusts $ 498,768 $ 501,603 $ 514,025 $ 518,317 HMBS related obligations (2) 10,289,505 9,757,690 10,509,449 9,916,383 Total $ 10,788,273 $ 10,259,293 $ 11,023,474 $ 10,434,700 __________ (1) Includes loans that collateralize master repurchase agreements. Refer to Note 10 for additional information. (2) For HMBS related obligations, the unpaid principal balance represents the balance outstanding. Included in mortgage loans related to Non-Residual Trusts are loans that are 90 days or more past due that had a fair value of $0.4 million and $1.6 million at March 31, 2017 and December 31, 2016 , respectively, and an unpaid principal balance of $31.0 million and $29.5 million at March 31, 2017 and December 31, 2016 , respectively. Mortgage loans held for sale that are 90 days or more past due are insignificant at March 31, 2017 and December 31, 2016 . Charged-off loans are predominantly 90 days or more past due. Items Measured at Fair Value on a Non-Recurring Basis The Company held real estate owned, net of $110.1 million and $104.6 million at March 31, 2017 and December 31, 2016 , respectively. In addition, the Company had loans that were in the process of foreclosure of $198.8 million and $418.4 million at March 31, 2017 and December 31, 2016 , respectively, which are included in residential loans at amortized cost, net and residential loans at fair value on the consolidated balance sheets. Real estate owned, net is included on the consolidated balance sheets within other assets and is measured at net realizable value on a non-recurring basis utilizing significant unobservable inputs or Level 3 assumptions in their valuation. The following table presents the significant unobservable input used in the fair value measurement of real estate owned, net: March 31, 2017 December 31, 2016 Significant Range of Input Weighted Range of Input Weighted Real estate owned, net Loss severity (1) 0.00% - 60.98% 6.89 % 0.00% - 61.61% 7.30 % __________ (1) Loss severity is based on the unpaid principal balance of the related loan at the time of foreclosure. The Company held real estate owned, net in the Reverse Mortgage and Servicing segments and Other non-reportable segment of $97.4 million , $12.0 million and $0.7 million at March 31, 2017 , respectively, and $90.7 million , $12.9 million and $1.0 million at December 31, 2016 , respectively. In determining fair value, the Company either obtains appraisals or performs a review of historical severity rates of real estate owned previously sold by the Company. When utilizing historical severity rates, the properties are stratified by collateral type and/or geographical concentration and length of time held by the Company. The severity rates are reviewed for reasonableness by comparison to third-party market trends and fair value is determined by applying severity rates to the stratified population. In the determination of fair value of real estate owned associated with reverse mortgages, the Company considers amounts typically covered by FHA insurance. Management approves valuations that have been determined using the historical severity rate method. Fair Value of Other Financial Instruments The following table presents the carrying amounts and estimated fair values of financial assets and liabilities that are not recorded at fair value on a recurring or non-recurring basis and their respective levels within the fair value hierarchy (in thousands). This table excludes cash and cash equivalents, restricted cash and cash equivalents, servicer payables and warehouse borrowings as these financial instruments are highly liquid or short-term in nature and as a result, their carrying amounts approximate fair value. March 31, 2017 December 31, 2016 Fair Value Carrying Estimated Carrying Estimated Financial assets Residential loans at amortized cost, net (1) Level 3 $ 678,482 $ 693,028 $ 665,209 $ 674,851 Servicer and protective advances, net Level 3 1,005,157 948,453 1,195,380 1,147,155 Financial liabilities Servicing advance liabilities (2) Level 3 661,057 661,646 781,734 782,570 Corporate debt (3) Level 2 2,109,865 1,612,373 2,126,176 1,967,518 Mortgage-backed debt carried at amortized cost Level 3 418,184 428,272 429,931 435,679 __________ (1) Includes loans subject to repurchase from Ginnie Mae. (2) The carrying amounts of servicing advance liabilities are net of deferred issuance costs, including those relating to line-of-credit arrangements, which are recorded in other assets. (3) The carrying amounts of corporate debt are net of the 2013 Revolver deferred issuance costs, which are recorded in other assets on the consolidated balance sheets. The following is a description of the methods and significant assumptions used in estimating the fair value of the Company’s financial instruments that are not measured at fair value on a recurring or non-recurring basis. Residential loans at amortized cost, net — The methods and assumptions used to estimate the fair value of residential loans carried at amortized cost are the same as those described above for mortgage loans related to Non-Residual Trusts. Servicer and protective advances, net — The estimated fair value of these advances is based on the net present value of expected cash flows. The determination of expected cash flows includes consideration of recoverability clauses in the Company’s servicing agreements, as well as assumptions related to the underlying collateral and when proceeds may be used to recover these receivables. Servicing advance liabilities — The estimated fair value of the majority of these liabilities approximates carrying value as these liabilities bear interest at a rate that is adjusted regularly based on a market index. Corporate debt — The Company’s 2013 Term Loan, Convertible Notes, and Senior Notes are not traded in an active, open market with readily observable prices. The estimated fair value of corporate debt is primarily based on an average of broker quotes. Mortgage-backed debt carried at amortized cost — The methods and assumptions used to estimate the fair value of mortgage-backed debt carried at amortized cost are the same as those described above for mortgage-backed debt related to Non-Residual Trusts. Net Gains on Sales of Loans Provided in the table below is a summary of the components of net gains on sales of loans (in thousands): For the Three Months 2017 2016 Realized gains on sales of loans $ 26,085 $ 80,080 Change in unrealized gains on loans held for sale 19,658 10,291 Gains (losses) on interest rate lock commitments (4,526 ) 13,917 Losses on forward sales commitments (20,548 ) (66,953 ) Gains (losses) on MBS purchase commitments 11,884 (10,796 ) Capitalized servicing rights 32,384 52,258 Provision for repurchases (1,795 ) (4,713 ) Interest income 11,203 10,393 Other 11 — Net gains on sales of loans $ 74,356 $ 84,477 Net Fair Value Gains on Reverse Loans and Related HMBS Obligations Provided in the table below is a summary of the components of net fair value gains on reverse loans and related HMBS obligations (in thousands): For the Three Months 2017 2016 Interest income on reverse loans $ 113,302 $ 110,594 Change in fair value of reverse loans (70,690 ) 44,240 Net fair value gains on reverse loans 42,612 154,834 Interest expense on HMBS related obligations (102,436 ) (103,254 ) Change in fair value of HMBS related obligations 74,526 (16,372 ) Net fair value losses on HMBS related obligations (27,910 ) (119,626 ) Net fair value gains on reverse loans and related HMBS obligations $ 14,702 $ 35,208 |
Freestanding Derivative Financi
Freestanding Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Freestanding Derivative Financial Instruments Disclosure | Freestanding Derivative Financial Instruments The following table provides the total notional or contractual amounts and related fair values of derivative assets and liabilities as well as cash margin (in thousands): March 31, 2017 December 31, 2016 Notional/ Fair Value Notional/ Fair Value Derivative Derivative Derivative Derivative Interest rate lock commitments $ 2,429,149 $ 45,347 $ 714 $ 3,046,549 $ 53,394 $ 4,193 Forward sales commitments 3,190,680 475 13,557 3,978,000 29,471 7,609 MBS purchase commitments 357,500 1,351 — 623,500 5,072 2 Total derivative instruments $ 47,173 $ 14,271 $ 87,937 $ 11,804 Cash margin $ 6,832 $ 2,239 $ — $ 30,941 Derivative positions subject to netting arrangements include all forward sale commitments, MBS purchase commitments, and cash margin, as reflected in the table above, and allow the Company to net settle asset and liability positions, as well as associated cash margin, with the same counterparty. After consideration of these netting arrangements and offsetting positions by counterparty, the total net settlement amount as it relates to these positions were asset positions of $0.1 million and $5.5 million , and liability positions of $6.9 million and $9.0 million , at March 31, 2017 and December 31, 2016 , respectively. A master netting arrangement with one of the Company’s counterparties also allows for offsetting derivative positions and margin against amounts associated with the master repurchase agreement with that same counterparty. At March 31, 2017 , the Company’s net derivative liability position with that counterparty of $0.4 million was comprised of a cash margin received of $1.5 million and a net derivative liability position of $1.3 million , partially offset by $2.4 million of over-collateralized positions associated with the master repurchase agreement. During the first quarter of 2016, the Company entered into a master netting arrangement with another of the Company’s counterparties, which also allows for offsetting derivative positions and margin against amounts associated with the master repurchase agreement with the same counterparty. At March 31, 2017 , the Company’s net derivative liability position with that counterparty was $1.6 million . Under the master netting arrangement, the Company is able to utilize certain over-collateralized positions and excess cash deposited with the counterparty associated with the master repurchase agreement to reduce potential cash margin posting requirements on derivative transactions. At March 31, 2017 , there were $8.5 million of over-collateralized positions and $96.7 million in excess cash deposited with the counterparty related to the master repurchase agreement. The master netting agreement does not obligate the counterparty to transfer cash margin to the Company related to the master repurchase agreement over-collateralization and excess cash positions. Over collateralized positions on master repurchase agreements are not reflected as margin in the table above. Refer to Note 6 for a summary of the gains and losses on freestanding derivative instruments. |
Servicing of Residential Loans
Servicing of Residential Loans | 3 Months Ended |
Mar. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Servicing of Residential Loans Disclosure | Servicing of Residential Loans The Company services residential loans and real estate owned for itself and on behalf of third-party credit owners. The Company’s total servicing portfolio consists of accounts serviced for others for which servicing rights have been capitalized, accounts subserviced for others, and residential loans and real estate owned carried on the consolidated balance sheets, but excludes charged-off loans managed by the Servicing segment. Provided below is a summary of the Company’s total servicing portfolio (dollars in thousands): March 31, 2017 December 31, 2016 Number Unpaid Principal Number Unpaid Principal Third-party credit owners Capitalized servicing rights 1,002,683 $ 111,044,863 1,032,676 $ 112,936,287 Capitalized subservicing (1) 123,977 7,082,914 130,018 7,426,803 Subservicing (2) 784,338 110,025,797 804,461 113,392,035 Total third-party servicing portfolio 1,910,998 228,153,574 1,967,155 233,755,125 On-balance sheet residential loans and real estate owned 95,807 12,556,539 97,388 12,690,018 Total servicing portfolio 2,006,805 $ 240,710,113 2,064,543 $ 246,445,143 __________ (1) Consists of subservicing contracts acquired through business combinations whereby the benefits from the contract are greater than adequate compensation for performing the servicing. (2) Includes $64.6 billion in unpaid principal balance of subservicing at December 31, 2016 that relates to transactions with NRM that closed in the fourth quarter of 2016, whereby the Company sold servicing rights with respect to pools of mortgage loans with subservicing retained. Net Servicing Revenue and Fees The Company earns servicing income from its third-party servicing portfolio. The following table presents the components of net servicing revenue and fees, which includes revenues earned by the Servicing and Reverse Mortgage segments (in thousands): For the Three Months 2017 2016 Servicing fees (1) (2) $ 133,393 $ 177,754 Incentive and performance fees (1) 15,154 19,772 Ancillary and other fees (1) (3) 23,243 24,609 Servicing revenue and fees 171,790 222,135 Amortization of servicing rights (4) (5,025 ) (4,611 ) Change in fair value of servicing rights (53,516 ) (326,580 ) Change in fair value of servicing rights related liabilities (2) (5) (62 ) 3,294 Net servicing revenue and fees $ 113,187 $ (105,762 ) __________ (1) Includes subservicing fees related to servicing assets held by WCO of $1.0 million and incentive and performance fees, and ancillary and other fees related to servicing assets held by WCO of $0.2 million for the three months ended March 31, 2016 . (2) Includes a pass-through of $1.2 million relating to servicing rights sold to WCO for the three months ended March 31, 2016 . (3) Includes late fees of $15.6 million and $15.8 million for the three months ended March 31, 2017 and 2016 , respectively. (4) Includes amortization of a servicing liability of $0.8 million and $1.2 million for the three months ended March 31, 2017 and 2016 , respectively, and an increase to a servicing liability of $1.8 million for the three months ended March 31, 2017 . (5) Includes interest expense on servicing rights related liabilities, which represents the accretion of fair value, of $3.9 million for the three months ended March 31, 2016 . Servicing Rights Servicing Rights Carried at Amortized Cost The following table summarizes the activity in the carrying value of servicing rights carried at amortized cost by class (in thousands): For the Three Months For the Three Months Mortgage Loan Reverse Loan Mortgage Loan Reverse Loan Balance at beginning of the period $ 74,621 $ 5,505 $ 99,302 $ 7,258 Amortization of servicing rights (1) (3,632 ) (399 ) (5,387 ) (460 ) Balance at end of the period $ 70,989 $ 5,106 $ 93,915 $ 6,798 __________ (1) Includes impairment of servicing rights related to the mortgage loan class of $1.4 million for the three months ended March 31, 2017 . Servicing rights accounted for at amortized cost are evaluated for impairment by strata based on their estimated fair values. The risk characteristics used to stratify servicing rights for purposes of measuring impairment are the type of loan products, which consist of manufactured housing loans, first lien residential mortgages and second lien residential mortgages for the mortgage loan class, and reverse mortgages for the reverse loan class. The fair value of servicing rights for the mortgage loan class and the reverse loan class was $75.8 million and $6.8 million , respectively at March 31, 2017 , and $79.9 million and $7.3 million , respectively, at December 31, 2016 . Fair value was estimated using the present value of projected cash flows over the estimated period of net servicing income. The estimation of fair value requires significant judgment and uses key economic inputs and assumptions, which are provided in the table below: March 31, 2017 December 31, 2016 Mortgage Loan Reverse Loan Mortgage Loan Reverse Loan Weighted-average remaining life in years (1) 4.5 2.6 5.1 2.6 Weighted-average discount rate 13.00 % 15.00 % 13.00 % 15.00 % Conditional prepayment rate (2) 6.59 % N/A 6.51 % N/A Conditional default rate (2) 2.36 % N/A 2.33 % N/A Conditional repayment rate (3) N/A 32.28 % N/A 32.28 % __________ (1) Represents the remaining weighted-average life of the related unpaid principal balance of the underlying collateral adjusted for assumptions for conditional repayment rate, conditional prepayment rate and conditional default rate, as applicable. (2) Voluntary and involuntary prepayment rates have been presented as conditional prepayment rate and conditional default rate, respectively. (3) Conditional repayment rate includes assumptions for both voluntary and involuntary rates as well as assumptions for the assignment of HECMs to HUD, in accordance with obligations as servicer. The valuation of servicing rights is affected by the underlying assumptions above. Should the actual performance and timing differ materially from the Company’s projected assumptions, the estimate of fair value of the servicing rights could be materially different. Servicing Rights Carried at Fair Value The following table summarizes the activity in servicing rights carried at fair value (in thousands): For the Three Months 2017 2016 Balance at beginning of the period $ 949,593 $ 1,682,016 Purchases 446 19,637 Servicing rights capitalized upon sales of loans 33,904 52,258 Sales (94 ) — Change in fair value due to: Changes in valuation inputs or other assumptions (1) (17,530 ) (258,460 ) Other changes in fair value (2) (35,986 ) (68,120 ) Total change in fair value (53,516 ) (326,580 ) Balance at end of the period (3) $ 930,333 $ 1,427,331 __________ (1) Represents the change in fair value typically resulting from market-driven changes in interest rates and prepayment speeds. (2) Represents the realization of expected cash flows over time. (3) Includes servicing rights that were sold to WCO and accounted for as a financing transaction of $13.8 million at March 31, 2016 . The fair value of servicing rights accounted for at fair value was estimated using the present value of projected cash flows over the estimated period of net servicing income. The estimation of fair value requires significant judgment and uses key economic inputs and assumptions, which are described in Note 6. Should the actual performance and timing differ materially from the Company's projected assumptions, the estimate of fair value of the servicing rights could be materially different. The following table summarizes the hypothetical effect on the fair value of servicing rights carried at fair value using adverse changes of 10% and 20% to the weighted average of the significant assumptions used in valuing these assets (dollars in thousands): March 31, 2017 December 31, 2016 Decline in fair value due to Decline in fair value due to Assumption 10% adverse change 20% adverse change Assumption 10% adverse change 20% adverse change Weighted-average discount rate 11.83 % $ (41,094 ) $ (78,859 ) 11.56 % $ (41,926 ) $ (80,512 ) Weighted-average conditional prepayment rate 9.24 % (29,882 ) (57,866 ) 9.09 % (30,513 ) (59,083 ) Weighted-average conditional default rate 0.90 % (28,170 ) (57,602 ) 0.88 % (28,370 ) (57,854 ) The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of an adverse variation in a particular assumption on the fair value of the servicing rights is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change. Fair Value of Originated Servicing Rights For mortgage loans sold with servicing retained, the Company used the following inputs and assumptions to determine the fair value of servicing rights at the dates of sale. These servicing rights are included in servicing rights capitalized upon sales of loans in the table presented above that summarizes the activity in servicing rights accounted for at fair value. For the Three Months 2017 2016 Weighted-average life in years 6.6 6.1 Weighted-average discount rate 13.62% 13.19% Weighted-average conditional prepayment rate 8.00% 9.68% Weighted-average conditional default rate 0.38% 0.32% |
Payables and Accrued Liabilitie
Payables and Accrued Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Payables and Accrued Liabilities Disclosure | Payables and Accrued Liabilities Payables and accrued liabilities consist of the following (in thousands): March 31, December 31, Loans subject to repurchase from Ginnie Mae (1) $ 206,393 $ 184,289 Accounts payable and accrued liabilities 154,712 155,556 Curtailment liability 119,413 121,305 Originations liability 48,843 62,969 Employee-related liabilities 38,444 91,063 Accrued interest payable 22,291 9,414 Servicing rights and related advance purchases payable 16,588 18,187 Derivative instruments 14,271 11,804 Uncertain tax positions (2) 6,960 9,414 Payables to insurance carriers 4,938 5,452 Margin payable on derivative instruments 2,239 30,941 Other 64,649 58,617 Total payables and accrued liabilities $ 699,741 $ 759,011 __________ (1) For certain mortgage loans that the Company has pooled and securitized with Ginnie Mae, the Company as the issuer has the unilateral right to repurchase, without Ginnie Mae’s prior authorization, any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days . As a result of this unilateral right, the Company must recognize the delinquent loan on its consolidated balance sheets when the loan becomes 90 days delinquent and establish a corresponding liability regardless of the Company’s intention to repurchase the loan. (2) Included in the uncertain tax position at December 31, 2016 is $2.5 million related to the sale of insurance business as described in Note 1. In connection with the closing of the sale on February 1, 2017, the uncertain tax position related to the insurance business was reversed. Costs Associated with Exit Activities During 2015, the Company took distinct actions to improve efficiencies within the organization, which included re-branding its mortgage business by consolidating Ditech Mortgage Corp and Green Tree Servicing into one legal entity with one brand. Additionally, the Company took measures to restructure its mortgage loan servicing operations and improve the profitability of the reverse mortgage business by streamlining its geographic footprint and strengthening its retail originations channel. These actions resulted in costs relating to the closing of offices and the termination of certain employees, as well as other expenses to institute efficiencies. The Company completed these activities in the fourth quarter of 2015. Furthermore, the Company made the decision during the fourth quarter of 2015 to exit the consumer retail channel of the Originations segment. The actions to improve efficiencies, re-brand the mortgage business, restructure the servicing operations and exit from the consumer retail channel are collectively referred to as the 2015 Actions herein. In addition, during 2016, the Company initiated actions in connection with its continued efforts to enhance efficiencies and streamline processes, which included various organizational changes to the scale and proficiency of the Company's leadership team and support functions to further align with the Company's business needs. Further, effective January 2017, the Company exited the reverse mortgage originations business, while maintaining its reverse mortgage servicing operations. These actions resulted in costs relating to the termination of certain employees and closing of offices. These actions are collectively referred to as the 2016 Actions herein. The Company continues with the transformation of the business during 2017 in an effort to optimize the workforce, processes and functional locations of its businesses as it seeks to achieve sustainable growth. Accordingly, the Company has incurred and will continue to incur costs, including severance and related costs, office closures, and other costs in connection with its transformation efforts during 2017. The actions that have been and will be taken in connection with these efforts are collectively referred to as the 2017 Actions herein. The costs resulting from the 2015 Actions, 2016 Actions and 2017 Actions are recorded in salaries and benefits and general and administrative expenses on the Company's consolidated statements of comprehensive income (loss). The following table presents the current period activity in the accrued exit liability resulting from each of the 2015 Actions, 2016 Actions and 2017 Actions described above, which is included in payables and accrued liabilities on the consolidated balance sheets, and the related charges and cash payments and other settlements associated with these actions (in thousands): For the Three Months Ended March 31, 2017 2015 Actions 2016 Actions 2017 Actions Total Balance at January 1, 2017 $ 988 $ 11,878 $ — $ 12,866 Charges Severance and related costs (1) (57 ) (344 ) 1,457 1,056 Office closures and other costs 10 5 800 815 Total charges (47 ) (339 ) 2,257 1,871 Cash payments or other settlements Severance and related costs (54 ) (9,191 ) (601 ) (9,846 ) Office closures and other costs (163 ) (177 ) (5 ) (345 ) Total cash payments or other settlements (217 ) (9,368 ) (606 ) (10,191 ) Balance at March 31, 2017 $ 724 $ 2,171 $ 1,651 $ 4,546 Cumulative charges incurred Severance and related costs 7,181 19,424 1,457 28,062 Office closures and other costs 6,545 3,783 800 11,128 Total cumulative charges incurred $ 13,726 $ 23,207 $ 2,257 $ 39,190 Total expected costs to be incurred (2) $ 13,726 $ 23,207 $ 7,378 $ 44,311 __________ (1) Includes adjustments to prior year accruals resulting from changes to previous estimates. (2) Total expected costs for the 2017 Actions are based on actions as set forth in the 2017 operating plan. These expected costs could change based on additional actions as determined by management throughout the year. The following table presents the current period activity for each of the 2015 Actions, 2016 Actions, and 2017 Actions described above by reportable segment (in thousands): For the Three Months Ended March 31, 2017 Servicing Originations Reverse Other Total Balance at January 1, 2017 2015 Actions $ 453 $ 260 $ 275 $ — $ 988 2016 Actions 4,323 1,023 2,222 4,310 11,878 2017 Actions — — — — — Total balance at January 1, 2017 4,776 1,283 2,497 4,310 12,866 Charges 2015 Actions (1) (57 ) 7 3 — (47 ) 2016 Actions (1) (56 ) (80 ) (140 ) (63 ) (339 ) 2017 Actions 936 506 815 — 2,257 Total charges 823 433 678 (63 ) 1,871 Cash payments or other settlements 2015 Actions (66 ) (47 ) (104 ) — (217 ) 2016 Actions (3,046 ) (872 ) (1,796 ) (3,654 ) (9,368 ) 2017 Actions (439 ) (162 ) (5 ) — (606 ) Total cash payments or other settlements (3,551 ) (1,081 ) (1,905 ) (3,654 ) (10,191 ) Balance at March 31, 2017 2015 Actions 330 220 174 — 724 2016 Actions 1,221 71 286 593 2,171 2017 Actions 497 344 810 — 1,651 Total balance at March 31, 2017 $ 2,048 $ 635 $ 1,270 $ 593 $ 4,546 Total cumulative charges incurred 2015 Actions $ 6,424 $ 4,597 $ 1,854 $ 851 $ 13,726 2016 Actions 11,546 1,056 5,086 5,519 23,207 2017 Actions 936 506 815 — 2,257 Total cumulative charges incurred $ 18,906 $ 6,159 $ 7,755 $ 6,370 $ 39,190 Total expected costs to be incurred 2015 Actions $ 6,424 $ 4,597 $ 1,854 $ 851 $ 13,726 2016 Actions 11,546 1,056 5,086 5,519 23,207 2017 Actions (2) 4,168 536 1,798 876 7,378 Total expected costs to be incurred $ 22,138 $ 6,189 $ 8,738 $ 7,246 $ 44,311 __________ (1) Includes adjustments to prior year accruals resulting from changes to previous estimates. (2) Total expected costs for the 2017 Actions are based on actions as set forth in the 2017 operating plan. These expected costs could change based on additional actions as determined by management throughout the year. |
Warehouse Borrowings (As Restat
Warehouse Borrowings (As Restated) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Warehouse Borrowings Disclosure | Warehouse Borrowings (As Restated) The Company's subsidiaries enter into master repurchase agreements with lenders providing warehouse facilities. The warehouse facilities are used to fund the origination and purchase of residential loans, as well as the repurchase of certain HECMs and real estate owned from Ginnie Mae securitization pools. The facilities had an aggregate funding capacity of $2.4 billion at March 31, 2017 and are secured by certain residential loans and real estate owned. At March 31, 2017 , the interest rates on the facilities were primarily based on LIBOR plus between 2.10% and 3.13% , and have various expiration dates through March 2018 . At March 31, 2017 , $1.0 billion of the outstanding borrowings were secured by $1.1 billion in originated and purchased residential loans and $124.5 million of outstanding borrowings were secured by $143.9 million in repurchased HECMs and real estate owned. One of the warehouse facilities, utilized to finance the origination of reverse loans, and which has total and uncommitted capacity of $125.0 million matured on February 11, 2017 . Borrowings under this facility were fully repaid by the maturity date. In April 2017, in order to access uncommitted funds on one of the facilities utilized to repurchase HECMs and real estate owned, the Company entered into an amendment with the lender. This amendment, among other things, reduced our advance rates and shortened the maximum time loans can remain outstanding on the facility. Borrowings utilized to fund the origination and purchase of residential loans are due upon the earlier of sale or securitization of the loan or within 60 to 90 days of borrowing. On average, the Company sells or securitizes these loans approximately 20 days from the date of borrowing. Borrowings utilized to repurchase HECMs and real estate owned are due upon the earlier of receipt of claim proceeds from HUD or receipt of proceeds from liquidation of the related real estate owned. In any event, borrowings associated with repurchased HECMs are due, depending on the status of the repurchased HECM and the agreement, within 120 to 364 days of borrowing, while certain borrowings relating to repurchased real estate owned are due, depending on the agreement, within 180 days or 364 days . In accordance with the terms of the agreements, the Company may be required to post cash collateral should the fair value of the pledged assets decrease below certain contractual thresholds or upon reaching certain aging limits. The Company is exposed to counterparty credit risk associated with the repurchase agreements in the event of non-performance by the counterparties. The amount at risk during the term of the repurchase agreement is equal to the difference between the amount borrowed by the Company and the fair value of the pledged assets. The Company mitigates this risk through counterparty monitoring procedures, including monitoring of the counterparties' credit ratings and review of their financial statements. All of the Company’s master repurchase agreements contain customary events of default and covenants, the most significant of which are financial covenants. Financial covenants most sensitive to the Company’s operating results and financial position are minimum tangible net worth requirements, indebtedness to tangible net worth ratio requirements, and minimum liquidity and profitability requirements. In the Original Filing, the Company disclosed that the three Ditech Financial master repurchase agreements that contain profitability covenants were amended to allow for a net loss under such covenants for the quarters ended December 31, 2016 and March 31, 2017. Without these amendments, Ditech Financial would not have been in compliance with these covenants for the quarter ended March 31, 2017. These amendments, amongst other things, also decrease the Company's advance rate under certain facilities, and require the Company to maintain additional cash in a deposit account for one of the facilities. This cash is included in restricted cash on the consolidated balance sheets. Subsequent to the Original Filing, Ditech Financial received waivers and/or amendments required as a result of the restatement and conclusions reached regarding the Company's ability to continue as a going concern, as described in Notes 2 and 3. The Ditech Financial master repurchase agreements that contain profitability covenants were also amended to allow for a net loss under such covenants for the quarters ending September 30, 2017 and December 31, 2017 as applicable to the terms of each respective agreement. The Company's subsidiaries are dependent on the ability to secure warehouse facilities on acceptable terms and to renew, replace or resize existing facilities as they expire. If the Company fails to comply with the terms of an agreement that results in an event of default or breach of covenant without obtaining a waiver or amendment, the Company may be subject to termination of future funding, enforcement of liens against assets securing the respective facility, repurchase of assets pledged in a repurchase agreement, acceleration of outstanding obligations, or other adverse actions. The Company intends to renew, replace, or expand its facilities and may seek waivers or amendments in the future, if necessary. The Company has plans in place to strengthen its operating results under its new leadership team, including transformation of its originations business as well as cost reduction efforts and efficiency initiatives; however, there can be no assurance that these or others actions will be successful. |
Common Stock and Earnings (Loss
Common Stock and Earnings (Loss) Per Share (As Restated) | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Common Stock and Loss Per Share Disclosure | Common Stock and Earnings (Loss) Per Share (As Restated) Rights Agreement On November 11, 2016, the Company entered into an Amended and Restated Section 382 Rights Agreement with Computershare, which amends and restates the Rights Agreement between the Company and Computershare dated as of June 29, 2015, as previously amended. On June 29, 2015 , the Company's Board of Directors had authorized and the Company declared a dividend of one preferred stock purchase right for each outstanding share of the Company's common stock. The dividend was payable on July 9, 2015 to stockholders of record as of the close of business on July 9, 2015 and entitled the registered holder thereof to purchase from the Company one one-thousandth of a fully paid non-assessable share of Junior Participating Preferred Stock, par value $0.01 per share, of the Company at a price of $74.16 , subject to adjustment as provided in the Rights Agreement. Any shares of common stock issued by the Company after such date also receive such a right. The terms of the preferred stock purchase rights are set forth in the Rights Agreement. Subsequent to the initial adoption of the Rights Agreement, it was amended to, among other things, permit certain stockholders to acquire up to 25% of the outstanding shares of the Company's common stock. The Company entered into the November 2016 amendment and restatement of the Rights Agreement to, among other things, lower the ownership thresholds permitted pursuant to the Rights Agreement such that if any person or group of persons, including persons who owned more than the threshold percentage of shares on the amendment date, but excluding certain exempted persons, acquires 4.99% or more of the Company's outstanding common stock or any other interest that would be treated as "stock" for the purposes of Section 382, there would be a triggering event potentially resulting in significant dilution in the voting power and economic ownership of such acquiring person or group. The Rights Agreement provides that the rights issued thereunder will expire on November 11, 2017 or upon the earlier occurrence of certain events, subject to the extension of the Rights Agreement by the Company's Board of Directors or the redemption or exchange of the rights by the Company, in each case as described in, and subject to the terms of, the Rights Agreement. The November 2016 amendment to the Rights Agreement was intended to help protect the Company's "built-in tax losses" and certain other tax benefits by acting as a deterrent to any person or group of persons acting in concert from becoming or obtaining the right to become the beneficial owner (including through constructive ownership of securities owned by others) of 4.99% or more of the shares of the Company's common stock, or any other interest that would be treated as "stock" for the purposes of Section 382, then outstanding, without the approval of its Board of Directors, subject to certain exceptions. Earnings (Loss) Per Share The following is a reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share computations shown on the consolidated statements of comprehensive income (loss) (in thousands, except per share data): For the Three Months 2017 2016 (Restated) Basic earnings (loss) per share Net income (loss) available to common stockholders (numerator) $ 4,508 $ (172,702 ) Weighted-average common shares outstanding (denominator) 36,412 35,579 Basic earnings (loss) per common and common equivalent share $ 0.12 $ (4.85 ) Diluted earnings (loss) per share Net income (loss) available to common stockholders (numerator) $ 4,508 $ (172,702 ) Diluted weighted-average common shares outstanding (denominator) 36,812 35,579 Diluted earnings (loss) per common and common equivalent share $ 0.12 $ (4.85 ) The following table summarizes antidilutive securities excluded from the computation of dilutive earnings (loss) per share (in thousands): For the Three Months 2017 2016 Outstanding share-based compensation awards Stock options (1) 3,412 2,876 Performance shares (2) 183 — Restricted stock units 63 631 Assumed conversion of Convertible Notes 4,932 4,932 __________ (1) Includes out-of-the-money stock options totaling 2.9 million at March 31, 2016. (2) Performance shares represent the number of shares expected to be issued based on the performance percentage as of the end of the reporting periods above. The Convertible Notes are antidilutive when calculating earnings (loss) per share when the Company's average stock price is less than $58.80 . Upon conversion of the Convertible Notes, the Company may pay or deliver, at its option, cash, shares of the Company’s common stock, or a combination of cash and shares of common stock. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | Segment Reporting Management has organized the Company into three reportable segments based primarily on its services as follows: • Servicing — performs servicing for the Company's mortgage loan portfolio and on behalf of third-party credit owners of mortgage loans for a fee and also performs subservicing for third-party owners of MSR. The Servicing segment also operates complementary businesses including a collections agency that performs collections of post charge-off deficiency balances for third parties and the Company. Commencing February 1, 2017, another insurance agency owned by the Company began to provide insurance marketing services to a third party with respect to voluntary insurance policies, including hazard insurance (refer to Note 1 for additional information). In addition, the Servicing segment holds the assets and mortgage-backed debt of the Residual Trusts. • Originations —originates and purchases mortgage loans that are intended for sales to third parties. • Reverse Mortgage — primarily focuses on the servicing of reverse loans for the Company's own reverse mortgage portfolio and subservicing on behalf of third-party credit owners of reverse loans. The Reverse Mortgage segment also provides complementary services for the reverse mortgage market, such as real estate owned property management and disposition, for a fee. Effective January 2017, the Company exited the reverse mortgage originations business, although the Company intends to fulfill remaining reverse loans in its originations pipeline consistent with its underwriting practices and fund undrawn amounts available to borrowers. The following tables present select financial information for the reportable segments (in thousands). The Company has presented the revenue and expenses of the Non-Residual Trusts and other non-reportable operating segments, as well as certain corporate expenses that have not been allocated to the business segments, in Other. Intersegment revenues and expenses have been eliminated. For the Three Months Ended March 31, 2017 Servicing Originations Reverse Other Eliminations Total Total revenues (1) (2) (3) $ 147,780 $ 80,808 $ 22,493 $ 510 $ (6,306 ) $ 245,285 Income (loss) before income taxes 33,167 10,835 (5,299 ) (34,317 ) — 4,386 For the Three Months Ended March 31, 2016 Servicing Originations Reverse Other Eliminations Total Total revenues (1) (2) (3) $ (63,255 ) $ 100,277 $ 44,095 $ 30 $ (14,376 ) $ 66,771 Income (loss) before income taxes (256,321 ) 16,401 5,027 (43,998 ) — (278,891 ) __________ (1) The Servicing segment recorded intercompany servicing revenue and fees from activity with the Originations segment and the Other non-reportable segment of $2.9 million and $3.2 million for the three months ended March 31, 2017 and 2016 , respectively. Included in these amounts are late fees that were waived as an incentive for borrowers refinancing their loans of $1.0 million in each of the three months ended March 31, 2017 and 2016 , which reduced net gains on sale of loans recognized by the Originations segment. (2) The Servicing segment recorded intercompany revenues for fees earned related to certain loan originations completed by the Originations segment from leads generated through the Servicing segment's servicing portfolio of $4.4 million and $11.5 million for the three months ended March 31, 2017 and 2016 , respectively. (3) The Originations segment recorded intercompany revenues for fees earned supporting the Servicing segment in administrative functions relating to the acquisition of certain servicing rights of less than $0.1 million and $0.7 million for the three months ended March 31, 2017 and 2016 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingencies Letter of Credit Reimbursement Obligation As part of an agreement to service the loans in eleven securitization trusts, the Company has an obligation to reimburse a third party for the final $165.0 million in LOCs, if drawn, issued to the eleven trusts by a third party as credit enhancements to these trusts. The total amount available on these LOCs for these trusts was $252.2 million at March 31, 2017 . The securitization trusts will draw on these LOCs if there are insufficient cash flows from the underlying collateral to pay the bondholders of the securitization trusts. Based on the Company’s estimates of the underlying performance of the collateral in the securitizations, the Company does not expect that the final $165.0 million will be drawn and, therefore, no liability for the fair value of this obligation has been recorded on the Company’s consolidated balance sheets; however, actual performance may differ from this estimate in the future. Mandatory Clean-Up Call Obligation The Company is obligated to exercise the mandatory clean-up call obligations assumed as part of an agreement to acquire the rights to service the loans in the Non-Residual Trusts. The Company is required to call these securitizations when the principal amount of each loan pool falls to 10% or below of the original principal amount and expects to begin to make such calls beginning in 2017 and continuing through 2019 . The total outstanding balance of the residential loans expected to be called at the respective call dates is $418.2 million at March 31, 2017 . The Company estimates call obligations of $101.4 million , $253.8 million and $63.0 million during the years ending December 31, 2017, 2018 and 2019, respectively. Remaining call obligations in 2017 are estimated to be $9.9 million , $18.8 million and $72.7 million in the second, third and fourth quarters, respectively. The Company expects to use available cash to settle the $9.9 million call obligation during the second quarter of 2017 and is reviewing a number of potential alternatives to resolve its obligation with respect to the remaining mandatory clean-up calls. At this time, the Company cannot provide any assurances as to whether any of these potential alternatives may be implemented. Unfunded Commitments Reverse Mortgage Loans At March 31, 2017 , the Company had floating-rate reverse loans in which the borrowers have additional borrowing capacity of $1.2 billion and similar commitments on fixed-rate reverse loans of $0.4 million primarily in the form of undrawn lines-of-credit. The borrowing capacity includes $1.0 billion in capacity that was available to be drawn by borrowers at March 31, 2017 and $200.8 million in capacity that will become eligible to be drawn by borrowers through the twelve months ending April 1, 2018, assuming the loans remain performing. In addition, the Company has other commitments of $28.4 million to fund taxes and insurance on borrowers’ properties to the extent of amounts that were set aside for such purpose upon the origination of the related reverse loan. There is no termination date for these drawings so long as the loan remains performing. The Company also had short-term commitments to lend $1.4 million and commitments to purchase and sell loans totaling $2.3 million and $12.0 million , respectively, at March 31, 2017 . Mortgage Loans The Company has short-term commitments to lend $2.4 billion and commitments to purchase loans totaling $54.4 million at March 31, 2017 . In addition, the Company had commitments to sell $3.2 billion and purchase $0.4 billion in mortgage-backed securities at March 31, 2017 . HMBS Issuer Obligations As an HMBS issuer, the Company assumes certain obligations related to each security issued. The most significant obligation is the requirement to purchase loans out of the Ginnie Mae securitization pools once the outstanding principal balance of the related HECM is equal to or greater than 98% of the maximum claim amount. Performing repurchased loans are conveyed to HUD and payment is received from HUD typically within a short timeframe of repurchase. Nonperforming repurchased loans are generally liquidated through foreclosure and subsequent sale of real estate owned. The Company currently relies upon certain master repurchase agreements and operating cash flows, to the extent necessary, to repurchase these loans. Given continued growth in the number and amount of our reverse loan repurchases, the Company may seek additional, or expansion of existing, master repurchase or similar agreements and/or may seek to access the securitization market to provide financing capacity for future required loan repurchases. The timing and amount of the Company's obligation to repurchase HECMs is uncertain as repurchase is predicated on certain factors such as whether a borrower event of default occurs prior to the HECM reaching the mandatory repurchase threshold under which the Company is obligated to repurchase the loan. During the three months ended March 31, 2017 and 2016 , the Company repurchased $241.3 million and $127.0 million , respectively, in reverse loans and real estate owned from securitization pools. At March 31, 2017 , the Company had $531.4 million in repurchased reverse loans and real estate owned. Repurchases of reverse loans and real estate owned have increased significantly as compared to prior periods and are expected to continue to increase due to the increased flow of HECMs and real estate owned that are reaching 98% of their maximum claim amount. Mortgage Origination Contingencies The Company sells substantially all of its originated or purchased mortgage loans into the secondary market for securitization or to private investors as whole loans. The Company sells conventional-conforming and government-backed mortgage loans through GSE and agency-sponsored securitizations in which mortgage-backed securities are created and sold to third-party investors. The Company also sells non-conforming mortgage loans to private investors. In doing so, representations and warranties regarding certain attributes of the loans are made to the third-party investor. Subsequent to the sale, if it is determined that a loan sold is in breach of these representations or warranties, the Company generally has an obligation to cure the breach. In general, if the Company is unable to cure such breach, the purchaser of the loan may require the Company to repurchase such loan for the unpaid principal balance, accrued interest, and related advances, and in any event, the Company must indemnify such purchaser for certain losses and expenses incurred by such purchaser in connection with such breach. The Company’s credit loss may be reduced by any recourse it has to correspondent lenders that, in turn, have sold such residential loans to the Company and breached similar or other representations and warranties. The Company's representations and warranties are generally not subject to stated limits of exposure, with the exception of certain loans originated under HARP, which limits exposure based on payment history of the loan. At March 31, 2017 , the Company’s maximum exposure to repurchases due to potential breaches of representations and warranties was $65.1 billion , and was based on the original unpaid principal balance of loans sold from the beginning of 2013 through March 31, 2017 adjusted for voluntary payments made by the borrower on loans for which the Company performs servicing. A majority of the Company's loan sales were servicing retained. The Company’s obligations vary based upon the nature of the repurchase demand and the current status of the mortgage loan. The Company’s estimate of the liability associated with representations and warranties exposure was $21.6 million at March 31, 2017 and is included in originations liability as part of payables and accrued liabilities on the consolidated balance sheets. Servicing Contingencies The Company’s servicing obligations are set forth in industry regulations established by HUD, the FHA, the VA, and other government agencies and in servicing and subservicing agreements with the applicable counterparties, such as Fannie Mae, Freddie Mac and other credit owners. Both the regulations and the servicing agreements provide that the servicer may be liable for failure to perform its servicing obligations and further provide remedies for certain servicer breaches. Reverse Mortgage Loans FHA regulations provide that servicers meet a series of event-specific timeframes during the default, foreclosure, conveyance, and mortgage insurance claim cycles. Failure to timely meet any processing deadline may stop the accrual of debenture interest otherwise payable in satisfaction of a claim under the FHA mortgage insurance contract and the servicer may be responsible to HUD for debenture interest that is not self-curtailed by the servicer, or for making the credit owner whole for any interest curtailed by FHA due to not meeting the required event-specific timeframes. The Company had a curtailment obligation liability of $100.9 million at March 31, 2017 related to the foregoing, which reflects management’s best estimate of the probable incurred claim. The curtailment liability is recorded in payables and accrued liabilities on the consolidated balance sheets. During the three months ended March 31, 2017 , the Company determined that certain previously estimated losses are no longer expected to occur and has updated its analysis for its curtailment obligation liability, resulting in a release of reserves to earnings related to the curtailment liability of $0.4 million . The Company has potential estimated maximum financial statement exposure for an additional $148.3 million related to similar claims, which are reasonably possible, but which the Company believes are the responsibility of third parties (e.g., prior servicers and/or credit owners). Mortgage Loans The Company had a curtailment obligation liability of $18.5 million at March 31, 2017 related to mortgage loan servicing that it primarily assumed through an acquisition of servicing rights. The Company is obligated to service the related mortgage loans in accordance with Ginnie Mae requirements, including repayment to credit owners for corporate advances and interest curtailment. The curtailment liability is recorded in payables and accrued liabilities on the consolidated balance sheets. Litigation and Regulatory Matters In the ordinary course of business, the Parent Company and its subsidiaries are defendants in, or parties to, pending and threatened legal actions and proceedings, including actions brought on behalf of various classes of claimants. Many of these actions and proceedings are based on alleged violations of consumer protection laws governing the Company's servicing and origination activities. In some of these actions and proceedings, claims for substantial monetary damages are asserted against the Company. The Company, in the ordinary course of business, is also subject to regulatory and governmental examinations, information requests and subpoenas, inquiries, investigations and threatened legal actions and proceedings. In connection with formal and informal inquiries, the Company receives numerous requests, subpoenas and orders for documents, testimony and information in connection with various aspects of the Company’s activities. In view of the inherent difficulty of predicting outcomes of such litigation, regulatory and governmental matters, particularly where the claimants seek very large or indeterminate restitution, penalties or damages, or where the matters present novel legal theories or involve a large number of parties, the Company generally cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties related to each pending matter may be. Reserves are established for pending or threatened litigation, regulatory and governmental matters when it is probable that a loss has been incurred and the amount of such loss can be reasonably estimated. In light of the inherent uncertainties involved in litigation and other legal proceedings, it is not always possible to determine a reasonable estimate of the amount of a probable loss, and the Company may estimate a range of possible loss for consideration in its estimated accruals. The estimates are based upon currently available information, including advice of counsel, and involve significant judgment taking into account the varying stages and inherent uncertainties of such matters. Accordingly, the Company’s estimates may change from time to time and such changes may be material to the consolidated financial results. At March 31, 2017 , the Company’s recorded reserves associated with legal and regulatory contingencies for which a loss is probable and can be reasonably estimated were approximately $41 million . There can be no assurance that the ultimate resolution of the Company’s pending or threatened litigation, claims or assessments will not result in losses in excess of the Company’s recorded reserves. As a result, the ultimate resolution of any particular legal matter, or matters, could be material to the Company’s results of operations or cash flows for the period in which such matter is resolved. For matters involving a probable loss where the Company can estimate the range but not a specific loss amount, the aggregate estimated amount of reasonably possible losses in excess of the recorded liability was $0 to approximately $14 million at March 31, 2017 . Given the inherent uncertainties and status of the Company’s outstanding legal and regulatory matters, the range of reasonably possible losses cannot be estimated for all matters; therefore, this estimated range does not represent the Company’s maximum loss exposure. As new information becomes available, the matters for which the Company is able to estimate, as well as the estimates themselves, will be adjusted accordingly. The following is a description of certain litigation and regulatory matters: The Company has received various subpoenas for testimony and documents, motions for examinations pursuant to Federal Rule of Bankruptcy Procedure 2004, and other information requests from certain Offices of the U.S. Trustees, acting through trial counsel in various federal judicial districts, seeking information regarding an array of the Company's policies, procedures and practices in servicing loans to borrowers who are in bankruptcy and the Company's compliance with bankruptcy laws and rules. The Company has provided information in response to these subpoenas and requests and has met with representatives of certain Offices of the U.S. Trustees to discuss various issues that have arisen in the course of these inquiries, including the Company's compliance with bankruptcy laws and rules. The Company cannot predict the outcome of the aforementioned proceedings and investigations, which could result in requests for damages, fines, sanctions, or other remediation. The Company could face further legal proceedings in connection with these matters. The Company may seek to enter into one or more agreements to resolve these matters. Any such agreement may require the Company to pay fines or other amounts for alleged breaches of law and to change or otherwise remediate the Company's business practices. Legal proceedings relating to these matters and the terms of any settlement agreement could have a material adverse effect on the Company's reputation, business, prospects, results of operations, liquidity and financial condition. From time to time, federal and state authorities investigate or examine aspects of the Company's business activities, such as its mortgage origination, servicing, collection and bankruptcy practices, among other things. It is the Company's general policy to cooperate with such investigations, and the Company has been responding to information requests and otherwise cooperating with various ongoing investigations and examinations by such authorities. The Company cannot predict the outcome of any of the ongoing proceedings and cannot provide assurances that investigations and examinations will not have a material adverse effect on the Company. Walter Energy Matters The Company may become liable for U.S. federal income taxes allegedly owed by the Walter Energy consolidated group for the 2009 and prior tax years . Under federal law, each member of a consolidated group for U.S. federal income tax purposes is severally liable for the federal income tax liability of each other member of the consolidated group for any year in which it was a member of the consolidated group at any time during such year. Certain former subsidiaries of the Company (which were subsequently merged or otherwise consolidated with certain current subsidiaries of the Company) were members of the Walter Energy consolidated tax group prior to the Company's spin-off from Walter Energy on April 17, 2009 . As a result, to the extent the Walter Energy consolidated group’s federal income taxes (including penalties and interest) for such tax years are not favorably resolved on the merits or otherwise paid, the Company could be liable for such amounts. Walter Energy Tax Matters. According to Walter Energy’s Form 10-Q, or the Walter Energy Form 10-Q, for the quarter ended September 30, 2015 (filed with the SEC on November 5, 2015) and certain other public filings made by Walter Energy in its bankruptcy proceedings currently pending in Alabama, described below, as of the date of such filing, certain tax matters with respect to certain tax years prior to and including the year of the Company's spin-off from Walter Energy remained unresolved, including certain tax matters relating to: (i) a "proof of claim" for a substantial amount of taxes, interest and penalties with respect to Walter Energy’s fiscal years ended August 31, 1983 through May 31, 1994 , which was filed by the IRS in connection with Walter Energy’s bankruptcy filing on December 27, 1989 in the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division; (ii) an IRS audit of Walter Energy’s federal income tax returns for the years ended May 31, 2000 through December 31, 2008 ; and (iii) an IRS audit of Walter Energy’s federal income tax returns for the 2009 through 2013 tax years . Walter Energy 2015 Bankruptcy Filing. On July 15, 2015, Walter Energy filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Alabama. On August 18, 2015, Walter Energy filed a motion with the Florida bankruptcy court requesting that the court transfer venue of its disputes with the IRS to the Alabama bankruptcy court. In that motion, Walter Energy asserted that it believed the liability for the years at issue "will be materially, if not completely, offset by the [r]efunds" asserted by Walter Energy against the IRS. The Florida bankruptcy court transferred venue of the matter to the Alabama bankruptcy court, where it remains pending. On November 5, 2015, Walter Energy, together with certain of its subsidiaries, entered into the Walter Energy Asset Purchase Agreement with Coal Acquisition, a Delaware limited liability company formed by members of Walter Energy’s senior lender group, pursuant to which, among other things, Coal Acquisition agreed to acquire substantially all of Walter Energy’s assets and assume certain liabilities, subject to, among other things, a number of closing conditions set forth therein. On January 8, 2016, after conducting a hearing, the Bankruptcy Court entered an order approving the sale of Walter Energy's assets to Coal Acquisition free and clear of all liens, claims, interests and encumbrances of the debtors. The sale of such assets pursuant to the Walter Energy Asset Purchase Agreement was completed on March 31, 2016 and was conducted under the provisions of Sections 105, 363 and 365 of the Bankruptcy Code. Based on developments in the Alabama bankruptcy proceedings following completion of this asset sale, such asset sale appears to have resulted in (i) limited value remaining in Walter Energy’s bankruptcy estate and (ii) to date, limited recovery for certain of Walter Energy’s unsecured creditors, including the IRS. On January 9, 2017, Walter Energy filed with the Alabama Bankruptcy Court a motion to convert its Chapter 11 bankruptcy case to a Chapter 7 liquidation. In that motion, Walter Energy stated that, other than with respect to 1% of the equity of the acquirer of Walter Energy's core assets, no prospect of payment of unsecured claims exists. On January 23, 2017, the IRS filed an objection to Walter Energy's motion to convert, in which the IRS requested that a judgment be entered against Walter Energy in connection with the tax matters described above. The IRS further asserted that entry of a final judgment was necessary so that it could pursue collection of tax liabilities from former members of Walter Energy's consolidated group that are not debtors. On January 30, 2017, the Bankruptcy Court held a hearing at which it denied the IRS's request for entry of a judgment and announced its intent to grant Walter Energy's motion to convert. The Bankruptcy Court entered an order on February 2, 2017 converting Walter Energy's Chapter 11 bankruptcy to a Chapter 7 liquidation. During February 2017, Andre Toffel was appointed Chapter 7 trustee of Walter Energy's bankruptcy estate. The Company cannot predict whether or to what extent it may become liable for federal income taxes of the Walter Energy consolidated tax group during the tax years in which the Company was a part of such group, in part because the Company believes, based on publicly available information, that: (i) the amount of taxes owed by the Walter Energy consolidated tax group for the periods from 1983 through 2009 remains unresolved; and (ii) in light of Walter Energy’s conversion from a Chapter 11 bankruptcy to a Chapter 7 bankruptcy, it is unclear whether the IRS will seek to make a direct claim against the Company for such taxes. Further, because the Company cannot currently estimate its' liability, if any, relating to the federal income tax liability of Walter Energy’s consolidated tax group during the tax years in which it was a part of such group, the Company cannot determine whether such liabilities, if any, could have a material adverse effect on the Company's business, financial condition, liquidity and/or results of operations. Tax Separation Agreement . In connection with the Company's spin-off from Walter Energy, the Company and Walter Energy entered into a Tax Separation Agreement, dated April 17, 2009 . Notwithstanding any several liability the Company may have under federal tax law described above, under the Tax Separation Agreement, Walter Energy agreed to retain full liability for all U.S. federal income or state combined income taxes of the Walter Energy consolidated group for 2009 and prior tax years (including any interest, additional taxes or penalties applicable thereto), subject to limited exceptions. The Company therefore filed proofs of claim in the Alabama bankruptcy proceedings asserting claims for any such amounts to the extent the Company is ultimately held liable for the same. However, the Company expects to receive little or no recovery from Walter Energy for any filed proofs of claim for indemnification. It is unclear whether claims made by the Company under the Tax Separation Agreement would be enforceable against Walter Energy in connection with, or following the conclusion of, the various Walter Energy bankruptcy proceedings described above, or if such claims would be rejected or disallowed under bankruptcy law. It is also unclear whether the Company would be able to recover some or all of any such claims given Walter Energy's limited assets and limited recoveries for unsecured creditors in the Walter Energy bankruptcy proceedings described above. Furthermore, the Tax Separation Agreement provides that Walter Energy has, in its sole discretion, the exclusive right to represent the interests of the consolidated group in any audit, court proceeding or settlement of a claim with the IRS for the tax years in which certain of the Company’s former subsidiaries were members of the Walter Energy consolidated tax group. However, in light of the conversion of Walter Energy’s bankruptcy proceeding from a Chapter 11 proceeding to a Chapter 7 proceeding, the Company may choose to take a direct role in proceedings involving the IRS’s claim for tax years in which the Company was a member of the Walter Energy consolidated tax group. Moreover, the Tax Separation Agreement obligates the Company to take certain tax positions that are consistent with those taken historically by Walter Energy. In the event the Company does not take such positions, it could be liable to Walter Energy to the extent the Company's failure to do so results in an increased tax liability or the reduction of any tax asset of Walter Energy. These arrangements may result in conflicts of interests between the Company and Walter Energy, particularly with regard to the Walter Energy bankruptcy proceedings described above. Lastly, according to its public filings, Walter Energy’s 2009 tax year is currently under audit. Accordingly, if it is determined that certain distribution taxes and other amounts are owed related to the Company's spin-off from Walter Energy in 2009, the Company may be liable under the Tax Separation Agreement for all or a portion of such amounts. The Company is unable to estimate reasonably possible losses for the matter described above. |
Separate Financial Information
Separate Financial Information of Subsidiary Guarantors of Indebtedness (As Restated) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Separate Financial Information of Subsidiary Guarantors of Indebtedness Disclosure | Separate Financial Information of Subsidiary Guarantors of Indebtedness (As Restated) In accordance with the Senior Notes Indenture, certain existing and future 100% owned domestic subsidiaries of the Parent Company have fully and unconditionally guaranteed the Senior Notes on a joint and several basis. These guarantor subsidiaries also guarantee the Parent Company's obligations under the 2013 Secured Credit Facilities. The indenture governing the Senior Notes contains customary exceptions under which a guarantor subsidiary may be released from its guarantee without the consent of the holders of the Senior Notes, including (i) the permitted sale, transfer or other disposition of all or substantially all of a guarantor subsidiary's assets or common stock; (ii) the designation of a restricted guarantor subsidiary as an unrestricted subsidiary; (iii) the release of a guarantor subsidiary from its obligation under the 2013 Secured Credit Facilities and its guarantee of all other indebtedness of the Parent Company and other guarantor subsidiaries; and (iv) the defeasance of the obligations of the guarantor subsidiary by payment of the Senior Notes. Presented below are the condensed consolidating financial information of the Parent Company, the guarantor subsidiaries on a combined basis, and the non-guarantor subsidiaries on a combined basis. Condensed Consolidating Balance Sheet (As Restated, See Note 2) March 31, 2017 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated ASSETS Cash and cash equivalents $ 1,057 $ 234,117 $ 2,000 $ — $ 237,174 Restricted cash and cash equivalents 1,502 129,462 43,360 — 174,324 Residential loans at amortized cost, net 12,510 212,498 453,474 — 678,482 Residential loans at fair value — 11,800,743 440,219 — 12,240,962 Receivables, net 87,047 123,841 13,844 — 224,732 Servicer and protective advances, net — 417,330 566,314 21,513 1,005,157 Servicing rights, net — 1,006,428 — — 1,006,428 Goodwill — 47,747 — — 47,747 Intangible assets, net — 10,445 — — 10,445 Premises and equipment, net 1,115 72,884 — — 73,999 Other assets 18,104 169,241 14,001 — 201,346 Due from affiliates, net 497,175 — — (497,175 ) — Investments in consolidated subsidiaries and VIEs 1,532,365 67,216 — (1,599,581 ) — Total assets $ 2,150,875 $ 14,291,952 $ 1,533,212 $ (2,075,243 ) $ 15,900,796 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Payables and accrued liabilities $ 57,657 $ 644,503 $ 4,424 $ (6,843 ) $ 699,741 Servicer payables — 138,059 — — 138,059 Servicing advance liabilities — 119,678 542,528 — 662,206 Warehouse borrowings — 1,094,677 — — 1,094,677 Servicing rights related liabilities at fair value — 3,537 — — 3,537 Corporate debt 2,112,328 — — — 2,112,328 Mortgage-backed debt — — 916,952 — 916,952 HMBS related obligations at fair value — 10,289,505 — — 10,289,505 Deferred tax liabilities, net — 2,901 — — 2,901 Obligation to fund Non-Guarantor VIEs — 41,619 — (41,619 ) — Due to affiliates, net — 496,625 550 (497,175 ) — Total liabilities 2,169,985 12,831,104 1,464,454 (545,637 ) 15,919,906 Stockholders' equity (deficit): Total stockholders' equity (deficit) (19,110 ) 1,460,848 68,758 (1,529,606 ) (19,110 ) Total liabilities and stockholders' equity (deficit) $ 2,150,875 $ 14,291,952 $ 1,533,212 $ (2,075,243 ) $ 15,900,796 Condensed Consolidating Balance Sheet (As Restated, See Note 2) December 31, 2016 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated ASSETS Cash and cash equivalents $ 773 $ 221,825 $ 2,000 $ — $ 224,598 Restricted cash and cash equivalents 1,502 158,204 44,757 — 204,463 Residential loans at amortized cost, net 12,891 189,441 462,877 — 665,209 Residential loans at fair value — 11,924,043 492,499 — 12,416,542 Receivables, net 97,424 154,852 15,686 — 267,962 Servicer and protective advances, net — 481,099 688,961 25,320 1,195,380 Servicing rights, net — 1,029,719 — — 1,029,719 Goodwill — 47,747 — — 47,747 Intangible assets, net — 11,347 — — 11,347 Premises and equipment, net 1,181 81,447 — — 82,628 Assets held for sale — 65,045 6,040 — 71,085 Other assets 30,789 191,671 19,830 — 242,290 Due from affiliates, net 392,998 — — (392,998 ) — Investments in consolidated subsidiaries and VIEs 1,620,339 134,612 — (1,754,951 ) — Total assets $ 2,157,897 $ 14,691,052 $ 1,732,650 $ (2,122,629 ) $ 16,458,970 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Payables and accrued liabilities $ 53,337 $ 708,070 $ 5,474 $ (7,870 ) $ 759,011 Servicer payables — 146,332 — — 146,332 Servicing advance liabilities — 132,664 650,565 — 783,229 Warehouse borrowings — 1,203,355 — — 1,203,355 Servicing rights related liabilities at fair value — 1,902 — — 1,902 Corporate debt 2,129,000 — — — 2,129,000 Mortgage-backed debt — — 943,956 — 943,956 HMBS related obligations at fair value — 10,509,449 — — 10,509,449 Liabilities held for sale — 1,179 1,223 — 2,402 Deferred tax liabilities, net — 3,204 1,570 — 4,774 Obligation to fund Non-Guarantor VIEs — 46,417 — (46,417 ) — Due to affiliates, net — 392,812 185 (392,997 ) — Total liabilities 2,182,337 13,145,384 1,602,973 (447,284 ) 16,483,410 Stockholders' equity (deficit): Total stockholders' equity (deficit) (24,440 ) 1,545,668 129,677 (1,675,345 ) (24,440 ) Total liabilities and stockholders' equity (deficit) $ 2,157,897 $ 14,691,052 $ 1,732,650 $ (2,122,629 ) $ 16,458,970 Condensed Consolidating Statement of Comprehensive Income (As Restated, See Note 2) For the Three Months Ended March 31, 2017 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated REVENUES Net servicing revenue and fees $ — $ 115,265 $ — $ (2,078 ) $ 113,187 Net gains on sales of loans — 74,356 — — 74,356 Net fair value gains on reverse loans and related HMBS obligations — 14,660 42 — 14,702 Interest income on loans 239 280 10,461 — 10,980 Insurance revenue — 4,688 309 (57 ) 4,940 Other revenues 144 26,963 17,029 (17,016 ) 27,120 Total revenues 383 236,212 27,841 (19,151 ) 245,285 EXPENSES General and administrative 15,706 127,594 2,628 (14,301 ) 131,627 Salaries and benefits 11,502 96,455 — — 107,957 Interest expense 35,086 13,078 12,261 (15 ) 60,410 Depreciation and amortization 180 10,699 53 — 10,932 Corporate allocations (24,111 ) 24,111 — — — Other expenses, net 141 1,139 1,503 — 2,783 Total expenses 38,504 273,076 16,445 (14,316 ) 313,709 OTHER GAINS (LOSSES) Gain on sale of business — 67,727 — — 67,727 Other net fair value gains (losses) — (1,347 ) 6,430 — 5,083 Total other gains — 66,380 6,430 — 72,810 Income (loss) before income taxes (38,121 ) 29,516 17,826 (4,835 ) 4,386 Income tax expense (benefit) (23,531 ) 22,698 966 (255 ) (122 ) Income (loss) before equity in earnings of consolidated subsidiaries and VIEs (14,590 ) 6,818 16,860 (4,580 ) 4,508 Equity in earnings of consolidated subsidiaries and VIEs 19,098 14,826 — (33,924 ) — Net income $ 4,508 $ 21,644 $ 16,860 $ (38,504 ) $ 4,508 Comprehensive income $ 4,491 $ 21,644 $ 16,860 $ (38,504 ) $ 4,491 Condensed Consolidating Statement of Comprehensive Income (Loss) For the Three Months Ended March 31, 2016 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated REVENUES Net servicing revenue and fees $ — $ (103,475 ) $ — $ (2,287 ) $ (105,762 ) Net gains on sales of loans — 84,477 — — 84,477 Net fair value gains on reverse loans and related HMBS obligations — 35,208 — — 35,208 Interest income on loans 317 104 11,750 — 12,171 Insurance revenue — 9,495 1,068 (196 ) 10,367 Other revenues, net (406 ) 31,514 15,616 (16,414 ) 30,310 Total revenues (89 ) 57,323 28,434 (18,897 ) 66,771 EXPENSES General and administrative 11,241 133,817 3,135 (18,587 ) 129,606 Salaries and benefits 12,510 120,129 — — 132,639 Interest expense 35,896 11,573 17,616 (837 ) 64,248 Depreciation and amortization 189 14,055 179 — 14,423 Corporate allocations (21,868 ) 21,868 — — — Other expenses, net 271 1,239 996 — 2,506 Total expenses 38,239 302,681 21,926 (19,424 ) 343,422 OTHER GAINS (LOSSES) Other net fair value gains (losses) — 216 (2,360 ) — (2,144 ) Gain on extinguishment 928 — — — 928 Other — (1,024 ) — — (1,024 ) Total other gains (losses) 928 (808 ) (2,360 ) — (2,240 ) Income (loss) before income taxes (37,400 ) (246,166 ) 4,148 527 (278,891 ) Income tax expense (benefit) 2,534 (109,872 ) 948 201 (106,189 ) Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs (39,934 ) (136,294 ) 3,200 326 (172,702 ) Equity in earnings (losses) of consolidated subsidiaries and VIEs (132,768 ) 373 — 132,395 — Net income (loss) $ (172,702 ) $ (135,921 ) $ 3,200 $ 132,721 $ (172,702 ) Comprehensive income (loss) $ (172,677 ) $ (135,921 ) $ 3,200 $ 132,721 $ (172,677 ) Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 2017 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated Cash flows provided by operating activities $ 1,254 $ 9,175 $ 136,303 $ — $ 146,732 Investing activities Purchases and originations of reverse loans held for investment — (130,269 ) — — (130,269 ) Principal payments received on reverse loans held for investment — 277,262 — — 277,262 Principal payments received on mortgage loans held for investment 326 — 23,655 — 23,981 Payments received on charged-off loans held for investment — 5,025 — — 5,025 Payments received on receivables related to Non-Residual Trusts — — 3,754 — 3,754 Proceeds from sales of real estate owned, net 2 33,227 1,115 — 34,344 Purchases of premises and equipment (114 ) (355 ) — — (469 ) Increase in restricted cash and cash equivalents — (1,099 ) (788 ) — (1,887 ) Payments for acquisitions of businesses, net of cash acquired — (804 ) — — (804 ) Acquisitions of servicing rights, net — (109 ) — — (109 ) Proceeds from sales of servicing rights, net — 29,673 — — 29,673 Proceeds from sale of business — 131,067 — — 131,067 Capital contributions to subsidiaries and VIEs (20,503 ) (2,122 ) — 22,625 — Returns of capital from subsidiaries and VIEs 142,993 30,252 — (173,245 ) — Change in due from affiliates (32,639 ) 80,802 (4,366 ) (43,797 ) — Other 11,501 (1,977 ) — — 9,524 Cash flows provided by investing activities 101,566 450,573 23,370 (194,417 ) 381,092 Financing activities Payments on corporate debt (21,285 ) — — — (21,285 ) Proceeds from securitizations of reverse loans — 154,316 — — 154,316 Payments on HMBS related obligations — (400,693 ) — — (400,693 ) Issuances of servicing advance liabilities — 43,657 284,684 — 328,341 Payments on servicing advance liabilities — (56,644 ) (392,992 ) — (449,636 ) Net change in warehouse borrowings related to mortgage loans — (116,795 ) — — (116,795 ) Net change in warehouse borrowings related to reverse loans — 8,117 — — 8,117 Payments on servicing rights related liabilities — (1,415 ) — — (1,415 ) Payments on mortgage-backed debt — — (28,619 ) — (28,619 ) Other debt issuance costs paid — (890 ) (74 ) — (964 ) Capital contributions — 22,243 382 (22,625 ) — Capital distributions — (144,341 ) (28,904 ) 173,245 — Change in due to affiliates (81,225 ) 32,660 4,768 43,797 — Other (26 ) 12,329 1,082 — 13,385 Cash flows used in financing activities (102,536 ) (447,456 ) (159,673 ) 194,417 (515,248 ) Net increase in cash and cash equivalents 284 12,292 — — 12,576 Cash and cash equivalents at the beginning of the period 773 221,825 2,000 — 224,598 Cash and cash equivalents at the end of the period $ 1,057 $ 234,117 $ 2,000 $ — $ 237,174 Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 2016 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated Cash flows provided by (used in) operating activities $ (38,544 ) $ 215,307 $ 25,972 $ — $ 202,735 Investing activities Purchases and originations of reverse loans held for investment — (181,167 ) — — (181,167 ) Principal payments received on reverse loans held for investment — 197,883 — — 197,883 Principal payments received on mortgage loans held for investment 266 — 22,059 — 22,325 Payments received on charged-off loans held for investment — 7,000 — — 7,000 Payments received on receivables related to Non-Residual Trusts — — 1,957 — 1,957 Proceeds from sales of real estate owned, net (38 ) 20,510 937 — 21,409 Purchases of premises and equipment (411 ) (11,242 ) — — (11,653 ) Decrease (increase) in restricted cash and cash equivalents 9,011 207 (170 ) — 9,048 Payments for acquisitions of businesses, net of cash acquired — (1,947 ) — — (1,947 ) Acquisitions of servicing rights, net — (6,571 ) — — (6,571 ) Capital contributions to subsidiaries and VIEs — (651 ) — 651 — Returns of capital from subsidiaries and VIEs 2,114 670 — (2,784 ) — Change in due from affiliates 33,543 (1,176 ) (3,196 ) (29,171 ) — Other 82 (419 ) — — (337 ) Cash flows provided by investing activities 44,567 23,097 21,587 (31,304 ) 57,947 Financing activities Payments on corporate debt — (210 ) — — (210 ) Extinguishments and settlement of debt (6,327 ) — — — (6,327 ) Proceeds from securitizations of reverse loans — 202,947 — — 202,947 Payments on HMBS related obligations — (271,013 ) — — (271,013 ) Issuances of servicing advance liabilities — 68,035 373,889 — 441,924 Payments on servicing advance liabilities — (76,024 ) (393,811 ) — (469,835 ) Net change in warehouse borrowings related to mortgage loans — (214,510 ) — — (214,510 ) Net change in warehouse borrowings related to reverse loans — 75,910 — — 75,910 Proceeds from sales of servicing rights — 2,968 — — 2,968 Payments on servicing rights related liabilities — (4,250 ) — — (4,250 ) Payments on mortgage-backed debt — — (25,203 ) — (25,203 ) Other debt issuance costs paid — (1,000 ) (31 ) — (1,031 ) Capital contributions — — 651 (651 ) — Capital distributions — (69 ) (2,715 ) 2,784 — Change in due to affiliates 641 (29,643 ) (169 ) 29,171 — Other (165 ) (127 ) (170 ) — (462 ) Cash flows used in financing activities (5,851 ) (246,986 ) (47,559 ) 31,304 (269,092 ) Net increase (decrease) in cash and cash equivalents 172 (8,582 ) — — (8,410 ) Cash and cash equivalents at the beginning of the period 4,016 196,812 2,000 — 202,828 Cash and cash equivalents at the end of the period $ 4,188 $ 188,230 $ 2,000 $ — $ 194,418 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related-Party Transactions WCO was established to invest in mortgage-related assets. In November 2016, WCO entered into a series of agreements whereby it agreed to sell substantially all of its assets, including the sale of substantially all of its MSR portfolio to NRM. In connection with the December 2016 closing of the transactions relating thereto, WCO commenced liquidation activities and the Company does not expect to sell further assets to WCO. The Company's investment in WCO was $8.0 million and $19.4 million at March 31, 2017 and December 31, 2016 , respectively. The Company recorded income (losses) relating to its investment in WCO of $0.1 million and $(0.5) million for the three months ended March 31, 2017 and 2016 , respectively. Additionally, the Company received dividends of $11.5 million and $1.0 million from WCO during the three months ended March 31, 2017 and 2016 , respectively. The Company’s subsidiary, GTIM, earned fees for providing investment advisory and management services to WCO and administering its business activities and day-to-day operations of $0.1 million and $0.4 million for the three months ended March 31, 2017 and 2016 , respectively, which are recorded in other revenues on the consolidated statements of comprehensive income (loss). The Company had $1.5 million and $0.9 million included in receivables, net on the consolidated balance sheets at March 31, 2017 and December 31, 2016 , respectively, relating to fees earned for the aforementioned investment advisory and management services provided to WCO, as well as pass-throughs to WCO related to general and administrative and payroll-related expenses. WCO lacks sufficient equity at risk to finance its activities without subordinated financial support and as such is a VIE. WCO’s board of directors have decision making authority as it relates to the activities that most significantly impact the economic performance of WCO, including making decisions related to significant investments, servicing, capital and debt financing. As a result, the Company is not deemed to be the primary beneficiary of WCO as it does not have the power to direct the activities that most significantly impact WCO’s economic performance. The following table presents the carrying amounts of the Company’s assets and liabilities that relate to WCO, as well as the size of the unconsolidated VIE (in thousands): Carrying Value of Assets and Liabilities Servicer and Protective Advances, Net Receivables, Net Other (1) Payables and Accrued Liabilities Net Assets Size of VIE (2) March 31, 2017 $ 5,114 $ 1,570 $ 7,998 $ — $ 14,682 $ 24,441 December 31, 2016 6,980 1,392 19,403 (1,353 ) 26,422 194,556 __________ (1) Other assets at March 31, 2017 and December 31, 2016 are primarily comprised of the Company's investment in WCO. (2) The size of the VIE is deemed to be WCO's net assets. |
Business and Basis of Present22
Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Reporting | Interim Financial Reporting The accompanying unaudited interim consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and related notes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2016 . |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although management is not currently aware of any factors that would significantly change its estimates and assumptions, actual results may differ from these estimates. |
Recent Accounting Guidance | Recently Adopted Accounting Guidance In March 2016, the FASB issued an accounting standards update revising certain aspects of share-based accounting guidance which includes income tax and forfeiture consequences. This guidance was effective for the Company beginning January 1, 2017. Adoption of this update did not have a material impact on the Company's income tax expense. The Company elected to continue with its current methodology of estimating expected forfeitures at the date of grant and adjust throughout the vesting term as needed. Recent Accounting Guidance Not Yet Adopted In May 2014, the FASB issued new revenue recognition guidance that supersedes most industry-specific guidance but does exclude insurance contracts and financial instruments. Under the new revenue recognition guidance, entities are required to identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when the entity satisfies a performance obligation. In April 2015, the FASB voted for a one-year deferral of the effective date, resulting in this new guidance being effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. Subsequent to the initial issuance, the FASB has continued to issue updates to this guidance to provide additional clarification and implementation instructions to issuers regarding (i) principal versus agent considerations, (ii) identifying performance obligations, (iii) licensing, and (iv) narrow-scope improvements and practical expedients relating to assessing collectability, presentation of sales taxes, non-cash consideration, and completed contracts and contract modifications at transition. The Company has reviewed the scope of the guidance and monitored the determinations of the FASB Transition Resource Group and concluded that a number of the Company's most significant revenue streams are not within the scope of the standard because the standard does not apply to revenue on contracts accounted for under the transfers and servicing of financial assets or financial instruments standards. Therefore, revenue recognition for these contracts will remain unchanged. However, the FASB has issued, and may issue in the future, interpretive guidance that may cause the Company’s evaluation to change. The Company continues to evaluate certain select revenue streams, including subservicing fees, for the effect that this guidance will have on its consolidated financial statements. Based on current guidance available, while there may be some impact on revenue recognition, the Company does not expect the adoption of this guidance to have a significant impact on the consolidated financial statements. The Company has not yet selected a transition method. In January 2016, the FASB issued an accounting standards update that amends the guidance on the classification and measurement of financial instruments. The new standard revises an entity's accounting related to (i) the classification and measurement of investments in equity securities and (ii) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. At March 31, 2017, the Company did not hold any equity securities measured at fair value, but did have certain financial liabilities measured at fair value. The significance of adoption is dependent upon the nature of those financial liabilities carried at fair value at the time of adoption. In February 2016, the FASB issued an accounting standards update that requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset to not recognize lease assets and lease liabilities. In transition, lessees are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, which includes a number of optional practical expedients that entities may elect to apply. This guidance is effective for fiscal years beginning after December 15, 2018, with early application permitted. While the Company is currently evaluating the full effect that this guidance will have on its consolidated financial statements, it will result in the recognition of certain operating leases as right-of-use assets and lease liabilities on the consolidated balance sheets. In June 2016, the FASB issued an accounting standards update that amends the guidance for recognizing credit losses on financial instruments measured at amortized cost. This update replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2019. The Company does not expect, based on the Company's current methodologies for accounting for financial instruments, that the adoption of this guidance will have a material impact on its consolidated financial statements. The significance of the adoption of this guidance may change at the time of adoption based on the nature of the Company's financial instruments at that time and the corresponding conclusions reached. In August 2016, the FASB issued an accounting standards update that amends the guidance on the classification of certain cash receipts and cash payments presented within the statement of cash flows to reduce the existing diversity in practice. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The adoption may impact the presentation of cash flows, but will not otherwise have a material impact on the consolidated results of operations or financial condition. In October 2016, the FASB issued an accounting standards update that amends the guidance on the classification of income taxes related to the intra-entity transfer of assets other than inventory. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the effect that this guidance will have on its consolidated financial statements. However, the significance of adoption is dependent on the nature of the transactions and corresponding tax laws in effect at the time of adoption. In November 2016, the FASB issued an accounting standards update that amends the guidance on restricted cash within the statement of cash flows. The update amends the classification of restricted cash and cash equivalents to be included within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The adoption will impact the presentation of the cash flows, but will not otherwise have a material impact on the consolidated results of operations or financial condition. In January 2017, the FASB issued an accounting standards update that amends the guidance on business combinations. The update clarifies the definition of a business and provides a framework that gives entities a basis for making reasonable judgments about whether a transaction should be accounted for as an acquisition of assets or a business. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company will apply this guidance to its assessment of applicable transactions, such as acquisitions and disposals of assets or business, consummated after the adoption date. In January 2017, the FASB issued an accounting standards update that amends the guidance on goodwill. Under the update, goodwill impairment is measured as the amount by which a reporting unit’s carrying value exceeds its fair value, while not exceeding the carrying value of goodwill. The update eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. This guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently considering the timing of adoption and will apply this guidance to applicable impairment tests after the adoption date. In February 2017, the FASB issued an accounting standards update that amends the guidance on derecognition of nonfinancial assets. This guidance clarifies the scope and accounting of a financial asset that meets the definition of an in substance nonfinancial asset and defines the term in substance nonfinancial asset. It also adds guidance for partial sales of nonfinancial assets. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company does not expect that, based on the Company's current methodologies for accounting for nonfinancial assets, the adoption of this guidance will have a material impact on its consolidated financial statements. The significance of the adoption of this guidance may change at the time of adoption based on the nature of the Company's nonfinancial assets at that time and the corresponding conclusions reached. |
Restatement of Previously Iss23
Restatement of Previously Issued Consolidated Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Restatements to Balance Sheets | The following table presents the consolidated balance sheet as previously reported, restatement adjustments, and the consolidated balance sheet as restated as of March 31, 2017 (in thousands): March 31, 2017 (unaudited) As Previously Reported Restatement Adjustments As Restated ASSETS Cash and cash equivalents $ 237,174 $ — $ 237,174 Restricted cash and cash equivalents 174,324 — 174,324 Residential loans at amortized cost, net 678,482 — 678,482 Residential loans at fair value 12,240,962 — 12,240,962 Receivables, net 224,282 450 224,732 Servicer and protective advances, net 1,005,157 — 1,005,157 Servicing rights, net 1,006,428 — 1,006,428 Goodwill 47,747 — 47,747 Intangible assets, net 10,445 — 10,445 Premises and equipment, net 73,999 — 73,999 Deferred tax assets, net 299,629 (299,629 ) — Other assets 201,346 — 201,346 Total assets $ 16,199,975 $ (299,179 ) $ 15,900,796 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Payables and accrued liabilities $ 699,741 $ — $ 699,741 Servicer payables 138,059 — 138,059 Servicing advance liabilities 662,206 — 662,206 Warehouse borrowings 1,094,677 — 1,094,677 Servicing rights related liabilities at fair value 3,537 — 3,537 Corporate debt 2,112,328 — 2,112,328 Mortgage-backed debt 916,952 — 916,952 HMBS related obligations at fair value 10,289,505 — 10,289,505 Deferred tax liabilities, net — 2,901 2,901 Total liabilities 15,917,005 2,901 15,919,906 Stockholders' equity (deficit): Preferred stock — — — Common stock 365 — 365 Additional paid-in capital 596,905 — 596,905 Accumulated deficit (315,216 ) (302,080 ) (617,296 ) Accumulated other comprehensive income 916 — 916 Total stockholders' equity (deficit) 282,970 (302,080 ) (19,110 ) Total liabilities and stockholders' equity (deficit) $ 16,199,975 $ (299,179 ) $ 15,900,796 The following table presents the consolidated balance sheet as previously reported, restatement adjustments, and the consolidated balance sheet as restated as of December 31, 2016 (in thousands): December 31, 2016 As Previously Reported Restatement Adjustments As Restated ASSETS Cash and cash equivalents $ 224,598 $ — $ 224,598 Restricted cash and cash equivalents 204,463 — 204,463 Residential loans at amortized cost, net 665,209 — 665,209 Residential loans at fair value 12,416,542 — 12,416,542 Receivables, net 267,962 — 267,962 Servicer and protective advances, net 1,195,380 — 1,195,380 Servicing rights, net 1,029,719 — 1,029,719 Goodwill 47,747 — 47,747 Intangible assets, net 11,347 — 11,347 Premises and equipment, net 82,628 — 82,628 Deferred tax assets, net 299,926 (299,926 ) — Assets held for sale 71,085 — 71,085 Other assets 242,290 — 242,290 Total assets $ 16,758,896 $ (299,926 ) $ 16,458,970 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Payables and accrued liabilities $ 759,011 $ — $ 759,011 Servicer payables 146,332 — 146,332 Servicing advance liabilities 783,229 — 783,229 Warehouse borrowings 1,203,355 — 1,203,355 Servicing rights related liabilities at fair value 1,902 — 1,902 Corporate debt 2,129,000 — 2,129,000 Mortgage-backed debt 943,956 — 943,956 HMBS related obligations at fair value 10,509,449 — 10,509,449 Deferred tax liabilities, net — 4,774 4,774 Liabilities held for sale 2,402 — 2,402 Total liabilities 16,478,636 4,774 16,483,410 Stockholders' equity (deficit): Preferred stock — — — Common stock 364 — 364 Additional paid-in capital 596,067 — 596,067 Accumulated deficit (317,104 ) (304,700 ) (621,804 ) Accumulated other comprehensive income 933 — 933 Total stockholders' equity (deficit) 280,260 (304,700 ) (24,440 ) Total liabilities and stockholders' equity (deficit) $ 16,758,896 $ (299,926 ) $ 16,458,970 |
Schedule of Restatements to Comprehensive Income (Loss) | The following table presents the consolidated statement of comprehensive loss as previously reported, restatement adjustments, and the consolidated statement of comprehensive loss as restated for the three months ended March 30, 2017 (in thousands, except share and per share data): For the Three Months Ended March 31, 2017 (unaudited) As Previously Reported Restatement Adjustments As Restated REVENUES Net servicing revenue and fees $ 113,187 $ — $ 113,187 Net gains on sales of loans 74,356 — 74,356 Net fair value gains on reverse loans and related HMBS obligations 14,702 — 14,702 Interest income on loans 10,980 — 10,980 Insurance revenue 4,940 — 4,940 Other revenues 27,120 — 27,120 Total revenues 245,285 — 245,285 EXPENSES General and administrative 131,627 — 131,627 Salaries and benefits 107,957 — 107,957 Interest expense 60,410 — 60,410 Depreciation and amortization 10,932 — 10,932 Other expenses, net 2,783 — 2,783 Total expenses 313,709 — 313,709 OTHER GAINS Gain on sale of business 67,727 — 67,727 Other net fair value gains 5,083 — 5,083 Total other gains 72,810 — 72,810 Income before income taxes 4,386 — 4,386 Income tax expense (benefit) 2,498 (2,620 ) (122 ) Net income $ 1,888 $ 2,620 $ 4,508 Comprehensive income $ 1,871 $ 2,620 $ 4,491 Basic earnings per common and common equivalent share $ 0.05 $ 0.07 $ 0.12 Diluted earnings per common and common equivalent share $ 0.05 $ 0.07 $ 0.12 Weighted-average common and common equivalent shares outstanding — basic 36,412 — 36,412 Weighted-average common and common equivalent shares outstanding — diluted 36,812 — 36,812 |
Schedule of Restatements to Cash Flows | The following table presents the consolidated statement of cash flows as previously reported, restatement adjustments, and the consolidated statement of cash flows as restated for the three months ended March 31, 2017 (in thousands): For the Three Months Ended March 31, 2017 (unaudited) As Previously Reported Restatement Adjustments As Restated Operating activities Net income $ 1,888 $ 2,620 $ 4,508 Adjustments to reconcile net income to net cash provided by operating activities Net fair value gains on reverse loans and related HMBS obligations (14,702 ) — (14,702 ) Amortization of servicing rights 5,025 — 5,025 Change in fair value of servicing rights 53,516 — 53,516 Change in fair value of charged-off loans (10,133 ) — (10,133 ) Other net fair value gains (3,363 ) — (3,363 ) Accretion of discounts on residential loans and advances (928 ) — (928 ) Accretion of discounts on debt and amortization of deferred debt issuance costs 7,740 — 7,740 Provision for uncollectible advances 9,666 — 9,666 Depreciation and amortization of premises and equipment and intangible assets 10,932 — 10,932 Provision (benefit) for deferred income taxes 1,840 (2,170 ) (330 ) Share-based compensation 865 — 865 Purchases and originations of residential loans held for sale (5,187,091 ) — (5,187,091 ) Proceeds from sales of and payments on residential loans held for sale 5,301,187 — 5,301,187 Net gains on sales of loans (74,356 ) — (74,356 ) Gain on sale of business (67,727 ) — (67,727 ) Other 2,506 — 2,506 Changes in assets and liabilities Decrease in receivables 9,262 (450 ) 8,812 Decrease in servicer and protective advances 180,432 — 180,432 Increase in other assets (4,774 ) — (4,774 ) Decrease in payables and accrued liabilities (82,751 ) — (82,751 ) Increase in servicer payables, net of change in restricted cash 7,698 — 7,698 Cash flows provided by operating activities 146,732 — 146,732 Investing activities Purchases and originations of reverse loans held for investment (130,269 ) — (130,269 ) Principal payments received on reverse loans held for investment 277,262 — 277,262 Principal payments received on mortgage loans held for investment 23,981 — 23,981 Payments received on charged-off loans held for investment 5,025 — 5,025 Payments received on receivables related to Non-Residual Trusts 3,754 — 3,754 Proceeds from sales of real estate owned, net 34,344 — 34,344 Purchases of premises and equipment (469 ) — (469 ) Increase in restricted cash and cash equivalents (1,887 ) — (1,887 ) Payments for acquisitions of businesses, net of cash acquired (804 ) — (804 ) Acquisitions of servicing rights, net (109 ) — (109 ) Proceeds from sales of servicing rights, net 29,673 — 29,673 Proceeds from sale of business 131,067 — 131,067 Other 9,524 — 9,524 Cash flows provided by investing activities 381,092 — 381,092 For the Three Months Ended March 31, 2017 (unaudited) As Previously Reported Restatement Adjustments As Restated Financing activities Payments on corporate debt (21,285 ) — (21,285 ) Proceeds from securitizations of reverse loans 154,316 — 154,316 Payments on HMBS related obligations (400,693 ) — (400,693 ) Issuances of servicing advance liabilities 328,341 — 328,341 Payments on servicing advance liabilities (449,636 ) — (449,636 ) Net change in warehouse borrowings related to mortgage loans (116,795 ) — (116,795 ) Net change in warehouse borrowings related to reverse loans 8,117 — 8,117 Payments on servicing rights related liabilities (1,415 ) — (1,415 ) Payments on mortgage-backed debt (28,619 ) — (28,619 ) Other debt issuance costs paid (964 ) — (964 ) Other 13,385 — 13,385 Cash flows used in financing activities (515,248 ) — (515,248 ) Net increase in cash and cash equivalents 12,576 — 12,576 Cash and cash equivalents at beginning of the period 224,598 — 224,598 Cash and cash equivalents at end of the period $ 237,174 $ — $ 237,174 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
VIE Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Summary of Carrying Amounts of Assets and Liabilities of Consolidated VIEs | Included in the tables below are summaries of the carrying amounts of the assets and liabilities of consolidated VIEs (in thousands): March 31, 2017 Residual Non-Residual Servicer and Protective Advance Financing Facilities Revolving Credit Facilities-Related VIEs Total Assets Restricted cash and cash equivalents $ 14,109 $ 11,606 $ 18,539 $ — $ 44,254 Residential loans at amortized cost, net 453,474 — — — 453,474 Residential loans at fair value — 440,219 — — 440,219 Receivables, net — 13,848 — — 13,848 Servicer and protective advances, net — — 607,357 — 607,357 Other assets 8,302 726 1,018 3,955 14,001 Total assets $ 475,885 $ 466,399 $ 626,914 $ 3,955 $ 1,573,153 Liabilities Payables and accrued liabilities $ 2,048 $ — $ 729 $ — $ 2,777 Servicing advance liabilities — — 542,528 — 542,528 Mortgage-backed debt 418,184 498,768 — — 916,952 Total liabilities $ 420,232 $ 498,768 $ 543,257 $ — $ 1,462,257 December 31, 2016 Residual Non-Residual Servicer and Protective Advance Financing Facilities Revolving Credit Facilities-Related VIEs Total Assets Restricted cash and cash equivalents $ 13,321 $ 10,257 $ 22,265 $ — $ 45,843 Residential loans at amortized cost, net 462,877 — — — 462,877 Residential loans at fair value — 450,377 — 42,122 492,499 Receivables, net — 15,033 — 765 15,798 Servicer and protective advances, net — — 734,707 — 734,707 Other assets 10,028 1,028 1,440 7,335 19,831 Total assets $ 486,226 $ 476,695 $ 758,412 $ 50,222 $ 1,771,555 Liabilities Payables and accrued liabilities $ 2,140 $ — $ 845 $ — $ 2,985 Servicing advance liabilities — — 650,565 — 650,565 Mortgage-backed debt 429,931 514,025 — — 943,956 Total liabilities $ 432,071 $ 514,025 $ 651,410 $ — $ 1,597,506 |
Transfers of Residential Loans
Transfers of Residential Loans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Schedule of Continuing Involvement with Mortgage Loans Sold with Servicing Rights Retained | The following table presents the carrying amounts of the Company’s net assets that relate to its continuing involvement with mortgage loans that have been sold with servicing rights retained and the unpaid principal balance of these sold loans (in thousands): Carrying Value of Net Assets Unpaid Servicing (1) Servicer and Payables and Accrued Liabilities Total March 31, 2017 $ 451,192 $ 18,341 $ (3,537 ) $ 465,996 $ 38,237,665 December 31, 2016 439,062 21,825 (1,983 ) 458,904 36,116,570 __________ (1) During the three months ended March 31, 2017, the Company revised the December 31, 2016 disclosed amount of net servicing rights and payables and accrued liabilities balances for which the Company has continuing involvement. The total net servicing rights and payables and accrued liabilities balances reported in the consolidated balance sheets as of December 31, 2016 was not impacted by this disclosure revision. |
Summary of Cash Flows Related to Sales of Mortgage Loans | The following table presents a summary of cash flows related to sales of mortgage loans (in thousands): For the Three Months 2017 2016 Cash proceeds received from sales, net of fees $ 5,252,552 $ 5,464,865 Servicing fees collected (1) 30,803 34,772 Repurchases of previously sold loans 17,503 5,932 __________ (1) Represents servicing fees collected on all loans sold whereby the Company has continuing involvement with mortgage loans that have been sold with servicing rights retained. |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities in Each Level of Fair Value Hierarchy | The following table summarizes the assets and liabilities in each level of the fair value hierarchy (in thousands). There was an insignificant amount of assets or liabilities measured at fair value on a recurring basis utilizing Level 1 assumptions. March 31, December 31, Level 2 Assets Mortgage loans held for sale $ 1,148,940 $ 1,176,280 Servicing rights carried at fair value 21,063 13,170 Freestanding derivative instruments 1,826 34,543 Level 2 assets $ 1,171,829 $ 1,223,993 Liabilities Freestanding derivative instruments $ 13,557 $ 7,611 Servicing rights related liabilities 3,537 1,902 Level 2 liabilities $ 17,094 $ 9,513 Level 3 Assets Reverse loans $ 10,599,732 $ 10,742,922 Mortgage loans related to Non-Residual Trusts 440,219 450,377 Charged-off loans 52,071 46,963 Receivables related to Non-Residual Trusts 13,848 15,033 Servicing rights carried at fair value 909,270 936,423 Freestanding derivative instruments (IRLCs) 45,347 53,394 Level 3 assets $ 12,060,487 $ 12,245,112 Liabilities Freestanding derivative instruments (IRLCs) $ 714 $ 4,193 Mortgage-backed debt related to Non-Residual Trusts 498,768 514,025 HMBS related obligations 10,289,505 10,509,449 Level 3 liabilities $ 10,788,987 $ 11,027,667 |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis Utilizing Significant Unobservable Inputs Reconciliation | The following assets and liabilities are measured on the consolidated balance sheets at fair value on a recurring basis utilizing significant unobservable inputs or Level 3 assumptions in their valuation. The following tables provide a reconciliation of the beginning and ending balances of these assets and liabilities (in thousands): For the Three Months Ended March 31, 2017 Fair Value Total Purchases Sales and Other Originations / Issuances Settlements Fair Value Assets Reverse loans $ 10,742,922 $ 42,612 $ 43,134 $ — $ 87,062 $ (315,998 ) $ 10,599,732 Mortgage loans related to Non-Residual Trusts 450,377 12,502 — — — (22,660 ) 440,219 Charged-off loans (1) 46,963 14,591 — — — (9,483 ) 52,071 Receivables related to Non-Residual Trusts 15,033 2,569 — — — (3,754 ) 13,848 Servicing rights carried at fair value 936,423 (52,479 ) 446 76 24,804 — 909,270 Freestanding derivative instruments (IRLCs) 53,394 (8,006 ) — — — (41 ) 45,347 Total assets $ 12,245,112 $ 11,789 $ 43,580 $ 76 $ 111,866 $ (351,936 ) $ 12,060,487 Liabilities Freestanding derivative instruments (IRLCs) $ (4,193 ) $ 3,479 $ — $ — $ — $ — $ (714 ) Mortgage-backed debt related to Non-Residual Trusts (514,025 ) (8,559 ) — — — 23,816 (498,768 ) HMBS related obligations (10,509,449 ) (27,910 ) — — (154,315 ) 402,169 (10,289,505 ) Total liabilities $ (11,027,667 ) $ (32,990 ) $ — $ — $ (154,315 ) $ 425,985 $ (10,788,987 ) __________ (1) Included in gains on charged-off loans are gains from instrument-specific credit risk, which primarily result from changes in assumptions related to collection rates and discount rates, of $10.1 million during the three months ended March 31, 2017 . For the Three Months Ended March 31, 2016 Fair Value Total Purchases and Other Originations / Issuances Settlements Fair Value Assets Reverse loans $ 10,763,816 $ 154,834 $ 54,020 $ 127,151 $ (226,930 ) $ 10,872,891 Mortgage loans related to Non-Residual Trusts 526,016 5,163 — — (24,842 ) 506,337 Charged-off loans (1) 49,307 14,376 — — (10,437 ) 53,246 Receivables related to Non-Residual Trusts 16,542 (467 ) — — (1,957 ) 14,118 Servicing rights carried at fair value 1,682,016 (326,580 ) 19,637 52,258 — 1,427,331 Freestanding derivative instruments (IRLCs) 51,519 13,102 — — (214 ) 64,407 Total assets $ 13,089,216 $ (139,572 ) $ 73,657 $ 179,409 $ (264,380 ) $ 12,938,330 Liabilities Freestanding derivative instruments (IRLCs) $ (1,070 ) $ 815 $ — $ — $ — $ (255 ) Servicing rights related liabilities (117,000 ) 3,294 — — 8,147 (105,559 ) Mortgage-backed debt related to Non-Residual Trusts (582,340 ) (6,932 ) — — 24,440 (564,832 ) HMBS related obligations (10,647,382 ) (119,626 ) — (202,947 ) 272,520 (10,697,435 ) Total liabilities $ (11,347,792 ) $ (122,449 ) $ — $ (202,947 ) $ 305,107 $ (11,368,081 ) __________ (1) Included in gains on charged-off loans are gains from instrument-specific credit risk, which primarily result from changes in assumptions related to collection rates and discount rates, of $10.9 million during the three months ended March 31, 2016 . |
Schedule of Significant Unobservable Inputs Used in Fair Value Measurement of Assets and Liabilities on Recurring Basis | The following tables present the significant unobservable inputs used in the fair value measurement of the assets and liabilities described above. The Company utilizes a discounted cash flow model to estimate the fair value of all Level 3 assets and liabilities included on the consolidated financial statements at fair value on a recurring basis, with the exception of IRLCs for which the Company utilizes a market approach. Significant increases or decreases in any of the inputs disclosed below could result in a significantly lower or higher fair value measurement. March 31, 2017 December 31, 2016 Significant (1) (2) Range of Input (3) Weighted (3) Range of Input (3) Weighted (3) Assets Reverse loans Weighted-average remaining life in years (4) 0.5 - 9.8 3.7 0.6 - 10.2 3.8 Conditional repayment rate 12.17% - 59.43% 29.58 % 13.23% - 55.32% 28.48 % Discount rate 2.04% - 3.72% 3.00 % 1.93% - 3.69% 2.93 % Mortgage loans related to Non-Residual Trusts Conditional prepayment rate 1.91% - 2.44% 2.19 % 1.98% - 2.67% 2.27 % Conditional default rate 0.99% - 5.10% 2.50 % 1.02% - 4.25% 2.61 % Loss severity 85.33% - 100.00% 97.73 % 79.98% - 100.00% 96.61 % Discount rate 8.00% 8.00 % 8.00% 8.00 % Charged-off loans Collection rate 3.20% - 5.37% 3.31 % 2.69% - 3.55% 2.74 % Discount rate 28.00% 28.00 % 28.00% 28.00 % Receivables related to Non-Residual Trusts Conditional prepayment rate 2.27% - 3.07% 2.73 % 2.22% - 3.17% 2.65 % Conditional default rate 2.56% - 5.84% 3.63 % 2.32% - 4.66% 3.34 % Loss severity 83.45% - 100.00% 95.97 % 77.88% - 100.00% 94.51 % Discount rate 0.50% 0.50 % 0.50% 0.50 % Servicing rights carried at fair value Weighted-average remaining life in years (4) 2.5 - 7.5 6.0 2.6 - 7.4 6.0 Discount rate 10.71% - 15.27% 11.83 % 10.68% - 14.61% 11.56 % Conditional prepayment rate 5.89% - 23.00% 9.24 % 5.76% - 21.67% 9.09 % Conditional default rate 0.04% - 3.02% 0.90 % 0.04% - 2.97% 0.88 % Cost to service $62 - $1,181 $130 $62 - $1,260 $128 Interest rate lock commitments Loan funding probability 2.28% - 100.00% 71.91 % 16.00% - 100.00% 75.86 % Fair value of initial servicing rights multiple (5) 0.01 - 5.82 3.01 0.01 - 5.98 3.06 March 31, 2017 December 31, 2016 Significant (1) (2) Range of Input (3) Weighted (3) Range of Input (3) Weighted (3) Liabilities Interest rate lock commitments Loan funding probability 18.75% - 100.00% 81.13 % 34.40% - 100.00% 83.36 % Fair value of initial servicing rights multiple (5) 0.02 - 5.16 3.52 0.04 - 6.04 3.69 Mortgage-backed debt related to Non-Residual Trusts Conditional prepayment rate 2.27% - 3.07% 2.73 % 2.22% - 3.17% 2.65 % Conditional default rate 2.56% - 5.84% 3.63 % 2.32% - 4.66% 3.34 % Loss severity 83.45% - 100.00% 95.97 % 77.88% - 100.00% 94.51 % Discount rate 6.00% 6.00 % 6.00% 6.00 % HMBS related obligations Weighted-average remaining life in years (4) 0.4 - 7.2 3.1 0.4 - 7.2 3.2 Conditional repayment rate 11.77% - 64.92% 28.84 % 11.49% - 57.76% 27.74 % Discount rate 1.59% - 3.19% 2.63 % 1.50% - 3.17% 2.56 % __________ (1) Conditional repayment rate includes assumptions for both voluntary and involuntary rates as well as assumptions for the assignment of HECMs to HUD, in accordance with obligations as servicer. (2) Voluntary and involuntary prepayment rates have been presented as conditional prepayment rate and conditional default rate, respectively. (3) With the exception of loss severity, fair value of initial servicing rights embedded in IRLCs and discount rate on charged-off loans, all significant unobservable inputs above are based on the related unpaid principal balance of the underlying collateral, or in the case of HMBS related obligations, the balance outstanding. Loss severity is based on projected liquidations. Fair value of servicing rights embedded in IRLCs represents a multiple of the annual servicing fee. The discount rate on charged-off loans is based on the loan balance at fair value. (4) Represents the remaining weighted-average life of the related unpaid principal balance or balance outstanding of the underlying collateral adjusted for assumptions for conditional repayment rate, conditional prepayment rate and conditional default rate, as applicable. (5) Fair value of servicing rights embedded in IRLCs, which represents a multiple of the annual servicing fee, excludes the impact of certain IRLCs identified as servicing released for which the Company does not ultimately realize the benefits. |
Schedule of Estimated Fair Value and Unpaid Principal Balance, Fair Value Option | Presented in the table below is the estimated fair value and unpaid principal balance of loans and debt instruments that have contractual principal amounts and for which the Company has elected the fair value option (in thousands): March 31, 2017 December 31, 2016 Estimated Unpaid Principal Estimated Unpaid Principal Loans at fair value under the fair value option Reverse loans (1) $ 10,599,732 $ 10,139,017 $ 10,742,922 $ 10,218,007 Mortgage loans held for sale (1) 1,148,940 1,098,763 1,176,280 1,148,897 Mortgage loans related to Non-Residual Trusts 440,219 495,041 450,377 513,545 Charged-off loans 52,071 2,417,501 46,963 2,439,318 Total $ 12,240,962 $ 14,150,322 $ 12,416,542 $ 14,319,767 Debt instruments at fair value under the fair value option Mortgage-backed debt related to Non-Residual Trusts $ 498,768 $ 501,603 $ 514,025 $ 518,317 HMBS related obligations (2) 10,289,505 9,757,690 10,509,449 9,916,383 Total $ 10,788,273 $ 10,259,293 $ 11,023,474 $ 10,434,700 __________ (1) Includes loans that collateralize master repurchase agreements. Refer to Note 10 for additional information. (2) For HMBS related obligations, the unpaid principal balance represents the balance outstanding. |
Schedule of Significant Unobservable Inputs Used in Fair Value Measurement of Real Estate Owned | The following table presents the significant unobservable input used in the fair value measurement of real estate owned, net: March 31, 2017 December 31, 2016 Significant Range of Input Weighted Range of Input Weighted Real estate owned, net Loss severity (1) 0.00% - 60.98% 6.89 % 0.00% - 61.61% 7.30 % __________ (1) Loss severity is based on the unpaid principal balance of the related loan at the time of foreclosure. |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Assets and Liabilities Not Recorded at Fair Value | The following table presents the carrying amounts and estimated fair values of financial assets and liabilities that are not recorded at fair value on a recurring or non-recurring basis and their respective levels within the fair value hierarchy (in thousands). This table excludes cash and cash equivalents, restricted cash and cash equivalents, servicer payables and warehouse borrowings as these financial instruments are highly liquid or short-term in nature and as a result, their carrying amounts approximate fair value. March 31, 2017 December 31, 2016 Fair Value Carrying Estimated Carrying Estimated Financial assets Residential loans at amortized cost, net (1) Level 3 $ 678,482 $ 693,028 $ 665,209 $ 674,851 Servicer and protective advances, net Level 3 1,005,157 948,453 1,195,380 1,147,155 Financial liabilities Servicing advance liabilities (2) Level 3 661,057 661,646 781,734 782,570 Corporate debt (3) Level 2 2,109,865 1,612,373 2,126,176 1,967,518 Mortgage-backed debt carried at amortized cost Level 3 418,184 428,272 429,931 435,679 __________ (1) Includes loans subject to repurchase from Ginnie Mae. (2) The carrying amounts of servicing advance liabilities are net of deferred issuance costs, including those relating to line-of-credit arrangements, which are recorded in other assets. (3) The carrying amounts of corporate debt are net of the 2013 Revolver deferred issuance costs, which are recorded in other assets on the consolidated balance sheets. |
Schedule of Net Gains on Sales of Loans | Provided in the table below is a summary of the components of net gains on sales of loans (in thousands): For the Three Months 2017 2016 Realized gains on sales of loans $ 26,085 $ 80,080 Change in unrealized gains on loans held for sale 19,658 10,291 Gains (losses) on interest rate lock commitments (4,526 ) 13,917 Losses on forward sales commitments (20,548 ) (66,953 ) Gains (losses) on MBS purchase commitments 11,884 (10,796 ) Capitalized servicing rights 32,384 52,258 Provision for repurchases (1,795 ) (4,713 ) Interest income 11,203 10,393 Other 11 — Net gains on sales of loans $ 74,356 $ 84,477 |
Schedule of Net Fair Value Gains on Reverse Loans and Related HMBS Obligations | Provided in the table below is a summary of the components of net fair value gains on reverse loans and related HMBS obligations (in thousands): For the Three Months 2017 2016 Interest income on reverse loans $ 113,302 $ 110,594 Change in fair value of reverse loans (70,690 ) 44,240 Net fair value gains on reverse loans 42,612 154,834 Interest expense on HMBS related obligations (102,436 ) (103,254 ) Change in fair value of HMBS related obligations 74,526 (16,372 ) Net fair value losses on HMBS related obligations (27,910 ) (119,626 ) Net fair value gains on reverse loans and related HMBS obligations $ 14,702 $ 35,208 |
Freestanding Derivative Finan27
Freestanding Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional or Contractual Amounts and Fair Values of Derivative Instruments | The following table provides the total notional or contractual amounts and related fair values of derivative assets and liabilities as well as cash margin (in thousands): March 31, 2017 December 31, 2016 Notional/ Fair Value Notional/ Fair Value Derivative Derivative Derivative Derivative Interest rate lock commitments $ 2,429,149 $ 45,347 $ 714 $ 3,046,549 $ 53,394 $ 4,193 Forward sales commitments 3,190,680 475 13,557 3,978,000 29,471 7,609 MBS purchase commitments 357,500 1,351 — 623,500 5,072 2 Total derivative instruments $ 47,173 $ 14,271 $ 87,937 $ 11,804 Cash margin $ 6,832 $ 2,239 $ — $ 30,941 |
Servicing of Residential Loans
Servicing of Residential Loans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Schedule of Total Servicing Portfolio | Provided below is a summary of the Company’s total servicing portfolio (dollars in thousands): March 31, 2017 December 31, 2016 Number Unpaid Principal Number Unpaid Principal Third-party credit owners Capitalized servicing rights 1,002,683 $ 111,044,863 1,032,676 $ 112,936,287 Capitalized subservicing (1) 123,977 7,082,914 130,018 7,426,803 Subservicing (2) 784,338 110,025,797 804,461 113,392,035 Total third-party servicing portfolio 1,910,998 228,153,574 1,967,155 233,755,125 On-balance sheet residential loans and real estate owned 95,807 12,556,539 97,388 12,690,018 Total servicing portfolio 2,006,805 $ 240,710,113 2,064,543 $ 246,445,143 __________ (1) Consists of subservicing contracts acquired through business combinations whereby the benefits from the contract are greater than adequate compensation for performing the servicing. (2) Includes $64.6 billion in unpaid principal balance of subservicing at December 31, 2016 that relates to transactions with NRM that closed in the fourth quarter of 2016, whereby the Company sold servicing rights with respect to pools of mortgage loans with subservicing retained. |
Schedule of Net Servicing Revenue and Fees | The following table presents the components of net servicing revenue and fees, which includes revenues earned by the Servicing and Reverse Mortgage segments (in thousands): For the Three Months 2017 2016 Servicing fees (1) (2) $ 133,393 $ 177,754 Incentive and performance fees (1) 15,154 19,772 Ancillary and other fees (1) (3) 23,243 24,609 Servicing revenue and fees 171,790 222,135 Amortization of servicing rights (4) (5,025 ) (4,611 ) Change in fair value of servicing rights (53,516 ) (326,580 ) Change in fair value of servicing rights related liabilities (2) (5) (62 ) 3,294 Net servicing revenue and fees $ 113,187 $ (105,762 ) __________ (1) Includes subservicing fees related to servicing assets held by WCO of $1.0 million and incentive and performance fees, and ancillary and other fees related to servicing assets held by WCO of $0.2 million for the three months ended March 31, 2016 . (2) Includes a pass-through of $1.2 million relating to servicing rights sold to WCO for the three months ended March 31, 2016 . (3) Includes late fees of $15.6 million and $15.8 million for the three months ended March 31, 2017 and 2016 , respectively. (4) Includes amortization of a servicing liability of $0.8 million and $1.2 million for the three months ended March 31, 2017 and 2016 , respectively, and an increase to a servicing liability of $1.8 million for the three months ended March 31, 2017 . (5) Includes interest expense on servicing rights related liabilities, which represents the accretion of fair value, of $3.9 million for the three months ended March 31, 2016 . |
Schedule of Servicing Rights Carried at Amortized Cost | The following table summarizes the activity in the carrying value of servicing rights carried at amortized cost by class (in thousands): For the Three Months For the Three Months Mortgage Loan Reverse Loan Mortgage Loan Reverse Loan Balance at beginning of the period $ 74,621 $ 5,505 $ 99,302 $ 7,258 Amortization of servicing rights (1) (3,632 ) (399 ) (5,387 ) (460 ) Balance at end of the period $ 70,989 $ 5,106 $ 93,915 $ 6,798 __________ (1) Includes impairment of servicing rights related to the mortgage loan class of $1.4 million for the three months ended March 31, 2017 . |
Schedule of Fair Value Assumptions, Servicing Rights Carried at Amortized Cost | The estimation of fair value requires significant judgment and uses key economic inputs and assumptions, which are provided in the table below: March 31, 2017 December 31, 2016 Mortgage Loan Reverse Loan Mortgage Loan Reverse Loan Weighted-average remaining life in years (1) 4.5 2.6 5.1 2.6 Weighted-average discount rate 13.00 % 15.00 % 13.00 % 15.00 % Conditional prepayment rate (2) 6.59 % N/A 6.51 % N/A Conditional default rate (2) 2.36 % N/A 2.33 % N/A Conditional repayment rate (3) N/A 32.28 % N/A 32.28 % __________ (1) Represents the remaining weighted-average life of the related unpaid principal balance of the underlying collateral adjusted for assumptions for conditional repayment rate, conditional prepayment rate and conditional default rate, as applicable. (2) Voluntary and involuntary prepayment rates have been presented as conditional prepayment rate and conditional default rate, respectively. (3) Conditional repayment rate includes assumptions for both voluntary and involuntary rates as well as assumptions for the assignment of HECMs to HUD, in accordance with obligations as servicer. |
Schedule of Servicing Rights Carried at Fair Value | The following table summarizes the activity in servicing rights carried at fair value (in thousands): For the Three Months 2017 2016 Balance at beginning of the period $ 949,593 $ 1,682,016 Purchases 446 19,637 Servicing rights capitalized upon sales of loans 33,904 52,258 Sales (94 ) — Change in fair value due to: Changes in valuation inputs or other assumptions (1) (17,530 ) (258,460 ) Other changes in fair value (2) (35,986 ) (68,120 ) Total change in fair value (53,516 ) (326,580 ) Balance at end of the period (3) $ 930,333 $ 1,427,331 __________ (1) Represents the change in fair value typically resulting from market-driven changes in interest rates and prepayment speeds. (2) Represents the realization of expected cash flows over time. (3) Includes servicing rights that were sold to WCO and accounted for as a financing transaction of $13.8 million at March 31, 2016 . |
Schedule of Sensitivity Analysis of Fair Value, Servicing Rights Carried at Fair Value | The following table summarizes the hypothetical effect on the fair value of servicing rights carried at fair value using adverse changes of 10% and 20% to the weighted average of the significant assumptions used in valuing these assets (dollars in thousands): March 31, 2017 December 31, 2016 Decline in fair value due to Decline in fair value due to Assumption 10% adverse change 20% adverse change Assumption 10% adverse change 20% adverse change Weighted-average discount rate 11.83 % $ (41,094 ) $ (78,859 ) 11.56 % $ (41,926 ) $ (80,512 ) Weighted-average conditional prepayment rate 9.24 % (29,882 ) (57,866 ) 9.09 % (30,513 ) (59,083 ) Weighted-average conditional default rate 0.90 % (28,170 ) (57,602 ) 0.88 % (28,370 ) (57,854 ) |
Schedule of Fair Value Assumptions, Fair Value of Servicing Rights on Date of Sale | For mortgage loans sold with servicing retained, the Company used the following inputs and assumptions to determine the fair value of servicing rights at the dates of sale. These servicing rights are included in servicing rights capitalized upon sales of loans in the table presented above that summarizes the activity in servicing rights accounted for at fair value. For the Three Months 2017 2016 Weighted-average life in years 6.6 6.1 Weighted-average discount rate 13.62% 13.19% Weighted-average conditional prepayment rate 8.00% 9.68% Weighted-average conditional default rate 0.38% 0.32% |
Payables and Accrued Liabilit29
Payables and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Payables and Accrued Liabilities | Payables and accrued liabilities consist of the following (in thousands): March 31, December 31, Loans subject to repurchase from Ginnie Mae (1) $ 206,393 $ 184,289 Accounts payable and accrued liabilities 154,712 155,556 Curtailment liability 119,413 121,305 Originations liability 48,843 62,969 Employee-related liabilities 38,444 91,063 Accrued interest payable 22,291 9,414 Servicing rights and related advance purchases payable 16,588 18,187 Derivative instruments 14,271 11,804 Uncertain tax positions (2) 6,960 9,414 Payables to insurance carriers 4,938 5,452 Margin payable on derivative instruments 2,239 30,941 Other 64,649 58,617 Total payables and accrued liabilities $ 699,741 $ 759,011 __________ (1) For certain mortgage loans that the Company has pooled and securitized with Ginnie Mae, the Company as the issuer has the unilateral right to repurchase, without Ginnie Mae’s prior authorization, any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days . As a result of this unilateral right, the Company must recognize the delinquent loan on its consolidated balance sheets when the loan becomes 90 days delinquent and establish a corresponding liability regardless of the Company’s intention to repurchase the loan. (2) Included in the uncertain tax position at December 31, 2016 is $2.5 million related to the sale of insurance business as described in Note 1. In connection with the closing of the sale on February 1, 2017, the uncertain tax position related to the insurance business was reversed. |
Schedule of Exit Liability by Type of Cost | The following table presents the current period activity in the accrued exit liability resulting from each of the 2015 Actions, 2016 Actions and 2017 Actions described above, which is included in payables and accrued liabilities on the consolidated balance sheets, and the related charges and cash payments and other settlements associated with these actions (in thousands): For the Three Months Ended March 31, 2017 2015 Actions 2016 Actions 2017 Actions Total Balance at January 1, 2017 $ 988 $ 11,878 $ — $ 12,866 Charges Severance and related costs (1) (57 ) (344 ) 1,457 1,056 Office closures and other costs 10 5 800 815 Total charges (47 ) (339 ) 2,257 1,871 Cash payments or other settlements Severance and related costs (54 ) (9,191 ) (601 ) (9,846 ) Office closures and other costs (163 ) (177 ) (5 ) (345 ) Total cash payments or other settlements (217 ) (9,368 ) (606 ) (10,191 ) Balance at March 31, 2017 $ 724 $ 2,171 $ 1,651 $ 4,546 Cumulative charges incurred Severance and related costs 7,181 19,424 1,457 28,062 Office closures and other costs 6,545 3,783 800 11,128 Total cumulative charges incurred $ 13,726 $ 23,207 $ 2,257 $ 39,190 Total expected costs to be incurred (2) $ 13,726 $ 23,207 $ 7,378 $ 44,311 __________ (1) Includes adjustments to prior year accruals resulting from changes to previous estimates. (2) Total expected costs for the 2017 Actions are based on actions as set forth in the 2017 operating plan. These expected costs could change based on additional actions as determined by management throughout the year. |
Schedule of Exit Liability by Segment | The following table presents the current period activity for each of the 2015 Actions, 2016 Actions, and 2017 Actions described above by reportable segment (in thousands): For the Three Months Ended March 31, 2017 Servicing Originations Reverse Other Total Balance at January 1, 2017 2015 Actions $ 453 $ 260 $ 275 $ — $ 988 2016 Actions 4,323 1,023 2,222 4,310 11,878 2017 Actions — — — — — Total balance at January 1, 2017 4,776 1,283 2,497 4,310 12,866 Charges 2015 Actions (1) (57 ) 7 3 — (47 ) 2016 Actions (1) (56 ) (80 ) (140 ) (63 ) (339 ) 2017 Actions 936 506 815 — 2,257 Total charges 823 433 678 (63 ) 1,871 Cash payments or other settlements 2015 Actions (66 ) (47 ) (104 ) — (217 ) 2016 Actions (3,046 ) (872 ) (1,796 ) (3,654 ) (9,368 ) 2017 Actions (439 ) (162 ) (5 ) — (606 ) Total cash payments or other settlements (3,551 ) (1,081 ) (1,905 ) (3,654 ) (10,191 ) Balance at March 31, 2017 2015 Actions 330 220 174 — 724 2016 Actions 1,221 71 286 593 2,171 2017 Actions 497 344 810 — 1,651 Total balance at March 31, 2017 $ 2,048 $ 635 $ 1,270 $ 593 $ 4,546 Total cumulative charges incurred 2015 Actions $ 6,424 $ 4,597 $ 1,854 $ 851 $ 13,726 2016 Actions 11,546 1,056 5,086 5,519 23,207 2017 Actions 936 506 815 — 2,257 Total cumulative charges incurred $ 18,906 $ 6,159 $ 7,755 $ 6,370 $ 39,190 Total expected costs to be incurred 2015 Actions $ 6,424 $ 4,597 $ 1,854 $ 851 $ 13,726 2016 Actions 11,546 1,056 5,086 5,519 23,207 2017 Actions (2) 4,168 536 1,798 876 7,378 Total expected costs to be incurred $ 22,138 $ 6,189 $ 8,738 $ 7,246 $ 44,311 __________ (1) Includes adjustments to prior year accruals resulting from changes to previous estimates. (2) Total expected costs for the 2017 Actions are based on actions as set forth in the 2017 operating plan. These expected costs could change based on additional actions as determined by management throughout the year. |
Common Stock and Earnings (Lo30
Common Stock and Earnings (Loss) Per Share (As Restated) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings (Loss) Per Share Computations | The following is a reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share computations shown on the consolidated statements of comprehensive income (loss) (in thousands, except per share data): For the Three Months 2017 2016 (Restated) Basic earnings (loss) per share Net income (loss) available to common stockholders (numerator) $ 4,508 $ (172,702 ) Weighted-average common shares outstanding (denominator) 36,412 35,579 Basic earnings (loss) per common and common equivalent share $ 0.12 $ (4.85 ) Diluted earnings (loss) per share Net income (loss) available to common stockholders (numerator) $ 4,508 $ (172,702 ) Diluted weighted-average common shares outstanding (denominator) 36,812 35,579 Diluted earnings (loss) per common and common equivalent share $ 0.12 $ (4.85 ) |
Schedule of Antidilutive Securities Excluded from Computation of Dilutive Earnings (Loss) Per Share | The following table summarizes antidilutive securities excluded from the computation of dilutive earnings (loss) per share (in thousands): For the Three Months 2017 2016 Outstanding share-based compensation awards Stock options (1) 3,412 2,876 Performance shares (2) 183 — Restricted stock units 63 631 Assumed conversion of Convertible Notes 4,932 4,932 __________ (1) Includes out-of-the-money stock options totaling 2.9 million at March 31, 2016. (2) Performance shares represent the number of shares expected to be issued based on the performance percentage as of the end of the reporting periods above. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Select Financial Information of Reportable Segments | The following tables present select financial information for the reportable segments (in thousands). The Company has presented the revenue and expenses of the Non-Residual Trusts and other non-reportable operating segments, as well as certain corporate expenses that have not been allocated to the business segments, in Other. Intersegment revenues and expenses have been eliminated. For the Three Months Ended March 31, 2017 Servicing Originations Reverse Other Eliminations Total Total revenues (1) (2) (3) $ 147,780 $ 80,808 $ 22,493 $ 510 $ (6,306 ) $ 245,285 Income (loss) before income taxes 33,167 10,835 (5,299 ) (34,317 ) — 4,386 For the Three Months Ended March 31, 2016 Servicing Originations Reverse Other Eliminations Total Total revenues (1) (2) (3) $ (63,255 ) $ 100,277 $ 44,095 $ 30 $ (14,376 ) $ 66,771 Income (loss) before income taxes (256,321 ) 16,401 5,027 (43,998 ) — (278,891 ) __________ (1) The Servicing segment recorded intercompany servicing revenue and fees from activity with the Originations segment and the Other non-reportable segment of $2.9 million and $3.2 million for the three months ended March 31, 2017 and 2016 , respectively. Included in these amounts are late fees that were waived as an incentive for borrowers refinancing their loans of $1.0 million in each of the three months ended March 31, 2017 and 2016 , which reduced net gains on sale of loans recognized by the Originations segment. (2) The Servicing segment recorded intercompany revenues for fees earned related to certain loan originations completed by the Originations segment from leads generated through the Servicing segment's servicing portfolio of $4.4 million and $11.5 million for the three months ended March 31, 2017 and 2016 , respectively. (3) The Originations segment recorded intercompany revenues for fees earned supporting the Servicing segment in administrative functions relating to the acquisition of certain servicing rights of less than $0.1 million and $0.7 million for the three months ended March 31, 2017 and 2016 , respectively. |
Separate Financial Informatio32
Separate Financial Information of Subsidiary Guarantors of Indebtedness (As Restated) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheets | Presented below are the condensed consolidating financial information of the Parent Company, the guarantor subsidiaries on a combined basis, and the non-guarantor subsidiaries on a combined basis. Condensed Consolidating Balance Sheet (As Restated, See Note 2) March 31, 2017 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated ASSETS Cash and cash equivalents $ 1,057 $ 234,117 $ 2,000 $ — $ 237,174 Restricted cash and cash equivalents 1,502 129,462 43,360 — 174,324 Residential loans at amortized cost, net 12,510 212,498 453,474 — 678,482 Residential loans at fair value — 11,800,743 440,219 — 12,240,962 Receivables, net 87,047 123,841 13,844 — 224,732 Servicer and protective advances, net — 417,330 566,314 21,513 1,005,157 Servicing rights, net — 1,006,428 — — 1,006,428 Goodwill — 47,747 — — 47,747 Intangible assets, net — 10,445 — — 10,445 Premises and equipment, net 1,115 72,884 — — 73,999 Other assets 18,104 169,241 14,001 — 201,346 Due from affiliates, net 497,175 — — (497,175 ) — Investments in consolidated subsidiaries and VIEs 1,532,365 67,216 — (1,599,581 ) — Total assets $ 2,150,875 $ 14,291,952 $ 1,533,212 $ (2,075,243 ) $ 15,900,796 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Payables and accrued liabilities $ 57,657 $ 644,503 $ 4,424 $ (6,843 ) $ 699,741 Servicer payables — 138,059 — — 138,059 Servicing advance liabilities — 119,678 542,528 — 662,206 Warehouse borrowings — 1,094,677 — — 1,094,677 Servicing rights related liabilities at fair value — 3,537 — — 3,537 Corporate debt 2,112,328 — — — 2,112,328 Mortgage-backed debt — — 916,952 — 916,952 HMBS related obligations at fair value — 10,289,505 — — 10,289,505 Deferred tax liabilities, net — 2,901 — — 2,901 Obligation to fund Non-Guarantor VIEs — 41,619 — (41,619 ) — Due to affiliates, net — 496,625 550 (497,175 ) — Total liabilities 2,169,985 12,831,104 1,464,454 (545,637 ) 15,919,906 Stockholders' equity (deficit): Total stockholders' equity (deficit) (19,110 ) 1,460,848 68,758 (1,529,606 ) (19,110 ) Total liabilities and stockholders' equity (deficit) $ 2,150,875 $ 14,291,952 $ 1,533,212 $ (2,075,243 ) $ 15,900,796 Condensed Consolidating Balance Sheet (As Restated, See Note 2) December 31, 2016 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated ASSETS Cash and cash equivalents $ 773 $ 221,825 $ 2,000 $ — $ 224,598 Restricted cash and cash equivalents 1,502 158,204 44,757 — 204,463 Residential loans at amortized cost, net 12,891 189,441 462,877 — 665,209 Residential loans at fair value — 11,924,043 492,499 — 12,416,542 Receivables, net 97,424 154,852 15,686 — 267,962 Servicer and protective advances, net — 481,099 688,961 25,320 1,195,380 Servicing rights, net — 1,029,719 — — 1,029,719 Goodwill — 47,747 — — 47,747 Intangible assets, net — 11,347 — — 11,347 Premises and equipment, net 1,181 81,447 — — 82,628 Assets held for sale — 65,045 6,040 — 71,085 Other assets 30,789 191,671 19,830 — 242,290 Due from affiliates, net 392,998 — — (392,998 ) — Investments in consolidated subsidiaries and VIEs 1,620,339 134,612 — (1,754,951 ) — Total assets $ 2,157,897 $ 14,691,052 $ 1,732,650 $ (2,122,629 ) $ 16,458,970 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Payables and accrued liabilities $ 53,337 $ 708,070 $ 5,474 $ (7,870 ) $ 759,011 Servicer payables — 146,332 — — 146,332 Servicing advance liabilities — 132,664 650,565 — 783,229 Warehouse borrowings — 1,203,355 — — 1,203,355 Servicing rights related liabilities at fair value — 1,902 — — 1,902 Corporate debt 2,129,000 — — — 2,129,000 Mortgage-backed debt — — 943,956 — 943,956 HMBS related obligations at fair value — 10,509,449 — — 10,509,449 Liabilities held for sale — 1,179 1,223 — 2,402 Deferred tax liabilities, net — 3,204 1,570 — 4,774 Obligation to fund Non-Guarantor VIEs — 46,417 — (46,417 ) — Due to affiliates, net — 392,812 185 (392,997 ) — Total liabilities 2,182,337 13,145,384 1,602,973 (447,284 ) 16,483,410 Stockholders' equity (deficit): Total stockholders' equity (deficit) (24,440 ) 1,545,668 129,677 (1,675,345 ) (24,440 ) Total liabilities and stockholders' equity (deficit) $ 2,157,897 $ 14,691,052 $ 1,732,650 $ (2,122,629 ) $ 16,458,970 |
Condensed Consolidating Statements of Comprehensive Income (Loss) | Condensed Consolidating Statement of Comprehensive Income (As Restated, See Note 2) For the Three Months Ended March 31, 2017 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated REVENUES Net servicing revenue and fees $ — $ 115,265 $ — $ (2,078 ) $ 113,187 Net gains on sales of loans — 74,356 — — 74,356 Net fair value gains on reverse loans and related HMBS obligations — 14,660 42 — 14,702 Interest income on loans 239 280 10,461 — 10,980 Insurance revenue — 4,688 309 (57 ) 4,940 Other revenues 144 26,963 17,029 (17,016 ) 27,120 Total revenues 383 236,212 27,841 (19,151 ) 245,285 EXPENSES General and administrative 15,706 127,594 2,628 (14,301 ) 131,627 Salaries and benefits 11,502 96,455 — — 107,957 Interest expense 35,086 13,078 12,261 (15 ) 60,410 Depreciation and amortization 180 10,699 53 — 10,932 Corporate allocations (24,111 ) 24,111 — — — Other expenses, net 141 1,139 1,503 — 2,783 Total expenses 38,504 273,076 16,445 (14,316 ) 313,709 OTHER GAINS (LOSSES) Gain on sale of business — 67,727 — — 67,727 Other net fair value gains (losses) — (1,347 ) 6,430 — 5,083 Total other gains — 66,380 6,430 — 72,810 Income (loss) before income taxes (38,121 ) 29,516 17,826 (4,835 ) 4,386 Income tax expense (benefit) (23,531 ) 22,698 966 (255 ) (122 ) Income (loss) before equity in earnings of consolidated subsidiaries and VIEs (14,590 ) 6,818 16,860 (4,580 ) 4,508 Equity in earnings of consolidated subsidiaries and VIEs 19,098 14,826 — (33,924 ) — Net income $ 4,508 $ 21,644 $ 16,860 $ (38,504 ) $ 4,508 Comprehensive income $ 4,491 $ 21,644 $ 16,860 $ (38,504 ) $ 4,491 Condensed Consolidating Statement of Comprehensive Income (Loss) For the Three Months Ended March 31, 2016 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated REVENUES Net servicing revenue and fees $ — $ (103,475 ) $ — $ (2,287 ) $ (105,762 ) Net gains on sales of loans — 84,477 — — 84,477 Net fair value gains on reverse loans and related HMBS obligations — 35,208 — — 35,208 Interest income on loans 317 104 11,750 — 12,171 Insurance revenue — 9,495 1,068 (196 ) 10,367 Other revenues, net (406 ) 31,514 15,616 (16,414 ) 30,310 Total revenues (89 ) 57,323 28,434 (18,897 ) 66,771 EXPENSES General and administrative 11,241 133,817 3,135 (18,587 ) 129,606 Salaries and benefits 12,510 120,129 — — 132,639 Interest expense 35,896 11,573 17,616 (837 ) 64,248 Depreciation and amortization 189 14,055 179 — 14,423 Corporate allocations (21,868 ) 21,868 — — — Other expenses, net 271 1,239 996 — 2,506 Total expenses 38,239 302,681 21,926 (19,424 ) 343,422 OTHER GAINS (LOSSES) Other net fair value gains (losses) — 216 (2,360 ) — (2,144 ) Gain on extinguishment 928 — — — 928 Other — (1,024 ) — — (1,024 ) Total other gains (losses) 928 (808 ) (2,360 ) — (2,240 ) Income (loss) before income taxes (37,400 ) (246,166 ) 4,148 527 (278,891 ) Income tax expense (benefit) 2,534 (109,872 ) 948 201 (106,189 ) Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs (39,934 ) (136,294 ) 3,200 326 (172,702 ) Equity in earnings (losses) of consolidated subsidiaries and VIEs (132,768 ) 373 — 132,395 — Net income (loss) $ (172,702 ) $ (135,921 ) $ 3,200 $ 132,721 $ (172,702 ) Comprehensive income (loss) $ (172,677 ) $ (135,921 ) $ 3,200 $ 132,721 $ (172,677 ) |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 2017 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated Cash flows provided by operating activities $ 1,254 $ 9,175 $ 136,303 $ — $ 146,732 Investing activities Purchases and originations of reverse loans held for investment — (130,269 ) — — (130,269 ) Principal payments received on reverse loans held for investment — 277,262 — — 277,262 Principal payments received on mortgage loans held for investment 326 — 23,655 — 23,981 Payments received on charged-off loans held for investment — 5,025 — — 5,025 Payments received on receivables related to Non-Residual Trusts — — 3,754 — 3,754 Proceeds from sales of real estate owned, net 2 33,227 1,115 — 34,344 Purchases of premises and equipment (114 ) (355 ) — — (469 ) Increase in restricted cash and cash equivalents — (1,099 ) (788 ) — (1,887 ) Payments for acquisitions of businesses, net of cash acquired — (804 ) — — (804 ) Acquisitions of servicing rights, net — (109 ) — — (109 ) Proceeds from sales of servicing rights, net — 29,673 — — 29,673 Proceeds from sale of business — 131,067 — — 131,067 Capital contributions to subsidiaries and VIEs (20,503 ) (2,122 ) — 22,625 — Returns of capital from subsidiaries and VIEs 142,993 30,252 — (173,245 ) — Change in due from affiliates (32,639 ) 80,802 (4,366 ) (43,797 ) — Other 11,501 (1,977 ) — — 9,524 Cash flows provided by investing activities 101,566 450,573 23,370 (194,417 ) 381,092 Financing activities Payments on corporate debt (21,285 ) — — — (21,285 ) Proceeds from securitizations of reverse loans — 154,316 — — 154,316 Payments on HMBS related obligations — (400,693 ) — — (400,693 ) Issuances of servicing advance liabilities — 43,657 284,684 — 328,341 Payments on servicing advance liabilities — (56,644 ) (392,992 ) — (449,636 ) Net change in warehouse borrowings related to mortgage loans — (116,795 ) — — (116,795 ) Net change in warehouse borrowings related to reverse loans — 8,117 — — 8,117 Payments on servicing rights related liabilities — (1,415 ) — — (1,415 ) Payments on mortgage-backed debt — — (28,619 ) — (28,619 ) Other debt issuance costs paid — (890 ) (74 ) — (964 ) Capital contributions — 22,243 382 (22,625 ) — Capital distributions — (144,341 ) (28,904 ) 173,245 — Change in due to affiliates (81,225 ) 32,660 4,768 43,797 — Other (26 ) 12,329 1,082 — 13,385 Cash flows used in financing activities (102,536 ) (447,456 ) (159,673 ) 194,417 (515,248 ) Net increase in cash and cash equivalents 284 12,292 — — 12,576 Cash and cash equivalents at the beginning of the period 773 221,825 2,000 — 224,598 Cash and cash equivalents at the end of the period $ 1,057 $ 234,117 $ 2,000 $ — $ 237,174 Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 2016 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated Cash flows provided by (used in) operating activities $ (38,544 ) $ 215,307 $ 25,972 $ — $ 202,735 Investing activities Purchases and originations of reverse loans held for investment — (181,167 ) — — (181,167 ) Principal payments received on reverse loans held for investment — 197,883 — — 197,883 Principal payments received on mortgage loans held for investment 266 — 22,059 — 22,325 Payments received on charged-off loans held for investment — 7,000 — — 7,000 Payments received on receivables related to Non-Residual Trusts — — 1,957 — 1,957 Proceeds from sales of real estate owned, net (38 ) 20,510 937 — 21,409 Purchases of premises and equipment (411 ) (11,242 ) — — (11,653 ) Decrease (increase) in restricted cash and cash equivalents 9,011 207 (170 ) — 9,048 Payments for acquisitions of businesses, net of cash acquired — (1,947 ) — — (1,947 ) Acquisitions of servicing rights, net — (6,571 ) — — (6,571 ) Capital contributions to subsidiaries and VIEs — (651 ) — 651 — Returns of capital from subsidiaries and VIEs 2,114 670 — (2,784 ) — Change in due from affiliates 33,543 (1,176 ) (3,196 ) (29,171 ) — Other 82 (419 ) — — (337 ) Cash flows provided by investing activities 44,567 23,097 21,587 (31,304 ) 57,947 Financing activities Payments on corporate debt — (210 ) — — (210 ) Extinguishments and settlement of debt (6,327 ) — — — (6,327 ) Proceeds from securitizations of reverse loans — 202,947 — — 202,947 Payments on HMBS related obligations — (271,013 ) — — (271,013 ) Issuances of servicing advance liabilities — 68,035 373,889 — 441,924 Payments on servicing advance liabilities — (76,024 ) (393,811 ) — (469,835 ) Net change in warehouse borrowings related to mortgage loans — (214,510 ) — — (214,510 ) Net change in warehouse borrowings related to reverse loans — 75,910 — — 75,910 Proceeds from sales of servicing rights — 2,968 — — 2,968 Payments on servicing rights related liabilities — (4,250 ) — — (4,250 ) Payments on mortgage-backed debt — — (25,203 ) — (25,203 ) Other debt issuance costs paid — (1,000 ) (31 ) — (1,031 ) Capital contributions — — 651 (651 ) — Capital distributions — (69 ) (2,715 ) 2,784 — Change in due to affiliates 641 (29,643 ) (169 ) 29,171 — Other (165 ) (127 ) (170 ) — (462 ) Cash flows used in financing activities (5,851 ) (246,986 ) (47,559 ) 31,304 (269,092 ) Net increase (decrease) in cash and cash equivalents 172 (8,582 ) — — (8,410 ) Cash and cash equivalents at the beginning of the period 4,016 196,812 2,000 — 202,828 Cash and cash equivalents at the end of the period $ 4,188 $ 188,230 $ 2,000 $ — $ 194,418 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Variable Interest Entity, Not Primary Beneficiary | |
Related Party Transaction [Line Items] | |
Summary of Assets and Liabilities that Relate to WCO | The following table presents the carrying amounts of the Company’s assets and liabilities that relate to WCO, as well as the size of the unconsolidated VIE (in thousands): Carrying Value of Assets and Liabilities Servicer and Protective Advances, Net Receivables, Net Other (1) Payables and Accrued Liabilities Net Assets Size of VIE (2) March 31, 2017 $ 5,114 $ 1,570 $ 7,998 $ — $ 14,682 $ 24,441 December 31, 2016 6,980 1,392 19,403 (1,353 ) 26,422 194,556 __________ (1) Other assets at March 31, 2017 and December 31, 2016 are primarily comprised of the Company's investment in WCO. (2) The size of the VIE is deemed to be WCO's net assets. |
Business and Basis of Present34
Business and Basis of Presentation - Additional Information (Detail) $ in Thousands | Dec. 30, 2016USD ($) | Mar. 31, 2017USD ($)Segment | Mar. 31, 2016USD ($) | Feb. 01, 2017USD ($) |
Business Acquisition [Line Items] | ||||
Number of reportable segments | Segment | 3 | |||
Cash flows from change in receivables decreased | $ 8,812 | $ (25,051) | ||
Cash flows from change in servicer and protective advances increased | (180,432) | (6,517) | ||
Cash flows from change in payables and accrued liabilities increased | $ (82,751) | (53,212) | ||
GTI Holdings Corp. | ||||
Business Acquisition [Line Items] | ||||
Percentage of Equity Sold | 100.00% | |||
Purchase Price | $ 125,000 | |||
Potential Earnout Payments | $ 25,000 | |||
Consideration received | $ 131,100 | |||
Restatement Adjustments | Insurance Adjustments | ||||
Business Acquisition [Line Items] | ||||
Cash flows from change in receivables decreased | (7,400) | |||
Cash flows from change in servicer and protective advances increased | 4,800 | |||
Cash flows from change in payables and accrued liabilities increased | $ 2,600 |
Restatement of Previously Iss35
Restatement of Previously Issued Consolidated Financial Statements - Additional Information (Details) $ in Millions | Mar. 31, 2017USD ($) |
Restatement Adjustments | Deferred Tax Asset Valuation Allowance Adjustments | |
Restatement of Previously Issued Consolidated Financial Statements [Line Items] | |
Valuation allowance | $ (302.5) |
Restatement of Previously Iss36
Restatement of Previously Issued Consolidated Financial Statements - Schedule of Restatements to Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and cash equivalents | $ 237,174 | $ 224,598 | $ 194,418 | $ 202,828 |
Restricted cash and cash equivalents | 174,324 | 204,463 | ||
Residential loans at amortized cost, net | 678,482 | 665,209 | ||
Residential loans at fair value | 12,240,962 | 12,416,542 | ||
Receivables, net | 224,732 | 267,962 | ||
Servicer and protective advances, net | 1,005,157 | 1,195,380 | ||
Servicing rights, net | 1,006,428 | 1,029,719 | ||
Goodwill | 47,747 | 47,747 | ||
Intangible assets, net | 10,445 | 11,347 | ||
Premises and equipment, net | 73,999 | 82,628 | ||
Deferred tax assets, net | 0 | 0 | ||
Assets held for sale | 0 | 71,085 | ||
Other assets | 201,346 | 242,290 | ||
Total assets | 15,900,796 | 16,458,970 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
Payables and accrued liabilities | 699,741 | 759,011 | ||
Servicer payables | 138,059 | 146,332 | ||
Servicing advance liabilities | 662,206 | 783,229 | ||
Warehouse borrowings | 1,094,677 | 1,203,355 | ||
Servicing rights related liabilities at fair value | 3,537 | 1,902 | ||
Corporate debt | 2,112,328 | 2,129,000 | ||
Mortgage-backed debt | 916,952 | 943,956 | ||
HMBS related obligations at fair value | 10,289,505 | 10,509,449 | ||
Deferred tax liabilities, net | 2,901 | 4,774 | ||
Liabilities held for sale | 0 | 2,402 | ||
Total liabilities | 15,919,906 | 16,483,410 | ||
Stockholders' equity (deficit): | ||||
Preferred stock | 0 | 0 | ||
Common stock | 365 | 364 | ||
Additional paid-in capital | 596,905 | 596,067 | ||
Accumulated deficit | (617,296) | (621,804) | ||
Accumulated other comprehensive income | 916 | 933 | ||
Total stockholders' equity (deficit) | (19,110) | (24,440) | ||
Total liabilities and stockholders' equity (deficit) | 15,900,796 | 16,458,970 | ||
As Previously Reported | ||||
ASSETS | ||||
Cash and cash equivalents | 237,174 | 224,598 | ||
Restricted cash and cash equivalents | 174,324 | 204,463 | ||
Residential loans at amortized cost, net | 678,482 | 665,209 | ||
Residential loans at fair value | 12,240,962 | 12,416,542 | ||
Receivables, net | 224,282 | 267,962 | ||
Servicer and protective advances, net | 1,005,157 | 1,195,380 | ||
Servicing rights, net | 1,006,428 | 1,029,719 | ||
Goodwill | 47,747 | 47,747 | ||
Intangible assets, net | 10,445 | 11,347 | ||
Premises and equipment, net | 73,999 | 82,628 | ||
Deferred tax assets, net | 299,629 | 299,926 | ||
Assets held for sale | 71,085 | |||
Other assets | 201,346 | 242,290 | ||
Total assets | 16,199,975 | 16,758,896 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
Payables and accrued liabilities | 699,741 | 759,011 | ||
Servicer payables | 138,059 | 146,332 | ||
Servicing advance liabilities | 662,206 | 783,229 | ||
Warehouse borrowings | 1,094,677 | 1,203,355 | ||
Servicing rights related liabilities at fair value | 3,537 | 1,902 | ||
Corporate debt | 2,112,328 | 2,129,000 | ||
Mortgage-backed debt | 916,952 | 943,956 | ||
HMBS related obligations at fair value | 10,289,505 | 10,509,449 | ||
Deferred tax liabilities, net | 0 | 0 | ||
Liabilities held for sale | 2,402 | |||
Total liabilities | 15,917,005 | 16,478,636 | ||
Stockholders' equity (deficit): | ||||
Preferred stock | 0 | 0 | ||
Common stock | 365 | 364 | ||
Additional paid-in capital | 596,905 | 596,067 | ||
Accumulated deficit | (315,216) | (317,104) | ||
Accumulated other comprehensive income | 916 | 933 | ||
Total stockholders' equity (deficit) | 282,970 | 280,260 | ||
Total liabilities and stockholders' equity (deficit) | 16,199,975 | 16,758,896 | ||
Restatement Adjustments | Deferred Tax Asset Valuation Allowance Adjustments | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash and cash equivalents | 0 | 0 | ||
Residential loans at amortized cost, net | 0 | 0 | ||
Residential loans at fair value | 0 | 0 | ||
Receivables, net | 450 | 0 | ||
Servicer and protective advances, net | 0 | 0 | ||
Servicing rights, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Premises and equipment, net | 0 | 0 | ||
Deferred tax assets, net | (299,629) | (299,926) | ||
Assets held for sale | 0 | |||
Other assets | 0 | 0 | ||
Total assets | (299,179) | (299,926) | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
Payables and accrued liabilities | 0 | 0 | ||
Servicer payables | 0 | 0 | ||
Servicing advance liabilities | 0 | 0 | ||
Warehouse borrowings | 0 | 0 | ||
Servicing rights related liabilities at fair value | 0 | 0 | ||
Corporate debt | 0 | 0 | ||
Mortgage-backed debt | 0 | 0 | ||
HMBS related obligations at fair value | 0 | 0 | ||
Deferred tax liabilities, net | 2,901 | 4,774 | ||
Liabilities held for sale | 0 | |||
Total liabilities | 2,901 | 4,774 | ||
Stockholders' equity (deficit): | ||||
Preferred stock | 0 | 0 | ||
Common stock | 0 | 0 | ||
Additional paid-in capital | 0 | 0 | ||
Accumulated deficit | (302,080) | (304,700) | ||
Accumulated other comprehensive income | 0 | 0 | ||
Total stockholders' equity (deficit) | (302,080) | (304,700) | ||
Total liabilities and stockholders' equity (deficit) | $ (299,179) | $ (299,926) |
Restatement of Previously Iss37
Restatement of Previously Issued Consolidated Financial Statements - Schedule of Restatements to Comprehensive Loss (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
REVENUES | ||
Net servicing revenue and fees | $ 113,187 | $ (105,762) |
Net gains on sales of loans | 74,356 | 84,477 |
Net fair value gains on reverse loans and related HMBS obligations | 14,702 | 35,208 |
Interest income on loans | 10,980 | 12,171 |
Insurance revenue | 4,940 | 10,367 |
Other revenues | 27,120 | 30,310 |
Total revenues | 245,285 | 66,771 |
EXPENSES | ||
General and administrative | 131,627 | 129,606 |
Salaries and benefits | 107,957 | 132,639 |
Interest expense | 60,410 | 64,248 |
Depreciation and amortization | 10,932 | 14,423 |
Other expenses, net | 2,783 | 2,506 |
Total expenses | 313,709 | 343,422 |
OTHER GAINS (LOSSES) | ||
Gain on sale of business | 67,727 | 0 |
Other net fair value gains | 5,083 | (2,144) |
Total other gains | 72,810 | (2,240) |
Income before income taxes | 4,386 | (278,891) |
Income tax expense (benefit) | (122) | (106,189) |
Net income | 4,508 | (172,702) |
Comprehensive income | $ 4,491 | $ (172,677) |
Basic earnings per common and common equivalent share | $ 0.12 | $ (4.85) |
Diluted earnings per common and common equivalent share | $ 0.12 | $ (4.85) |
Weighted-average common and common equivalent shares outstanding — basic | 36,412 | 35,579 |
Weighted-average common and common equivalent shares outstanding — diluted | 36,812 | 35,579 |
As Previously Reported | ||
REVENUES | ||
Net servicing revenue and fees | $ 113,187 | |
Net gains on sales of loans | 74,356 | |
Net fair value gains on reverse loans and related HMBS obligations | 14,702 | |
Interest income on loans | 10,980 | |
Insurance revenue | 4,940 | |
Other revenues | 27,120 | |
Total revenues | 245,285 | |
EXPENSES | ||
General and administrative | 131,627 | |
Salaries and benefits | 107,957 | |
Interest expense | 60,410 | |
Depreciation and amortization | 10,932 | |
Other expenses, net | 2,783 | |
Total expenses | 313,709 | |
OTHER GAINS (LOSSES) | ||
Gain on sale of business | 67,727 | |
Other net fair value gains | 5,083 | |
Total other gains | 72,810 | |
Income before income taxes | 4,386 | |
Income tax expense (benefit) | 2,498 | |
Net income | 1,888 | |
Comprehensive income | $ 1,871 | |
Basic earnings per common and common equivalent share | $ 0.05 | |
Diluted earnings per common and common equivalent share | $ 0.05 | |
Weighted-average common and common equivalent shares outstanding — basic | 36,412 | |
Weighted-average common and common equivalent shares outstanding — diluted | 36,812 | |
Restatement Adjustments | Deferred Tax Asset Valuation Allowance Adjustments | ||
REVENUES | ||
Net servicing revenue and fees | $ 0 | |
Net gains on sales of loans | 0 | |
Net fair value gains on reverse loans and related HMBS obligations | 0 | |
Interest income on loans | 0 | |
Insurance revenue | 0 | |
Other revenues | 0 | |
Total revenues | 0 | |
EXPENSES | ||
General and administrative | 0 | |
Salaries and benefits | 0 | |
Interest expense | 0 | |
Depreciation and amortization | 0 | |
Other expenses, net | 0 | |
Total expenses | 0 | |
OTHER GAINS (LOSSES) | ||
Gain on sale of business | 0 | |
Other net fair value gains | 0 | |
Total other gains | 0 | |
Income before income taxes | 0 | |
Income tax expense (benefit) | (2,620) | |
Net income | 2,620 | |
Comprehensive income | $ 2,620 | |
Basic earnings per common and common equivalent share | $ 0.07 | |
Diluted earnings per common and common equivalent share | $ 0.07 | |
Weighted-average common and common equivalent shares outstanding — basic | 0 | |
Weighted-average common and common equivalent shares outstanding — diluted | 0 |
Restatement of Previously Iss38
Restatement of Previously Issued Consolidated Financial Statements Restatement of Previously Issued Consolidated Financial Statements - Schedule of Restatements to Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities | ||
Net income | $ 4,508 | $ (172,702) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Net fair value gains on reverse loans and related HMBS obligations | 14,702 | 35,208 |
Amortization of servicing rights | 5,025 | 4,611 |
Change in fair value of servicing rights | 53,516 | 326,580 |
Change in fair value of charged-off loans | (10,133) | (10,939) |
Other net fair value (gains) losses | (3,363) | 4,606 |
Accretion of discounts on residential loans and advances | (928) | (928) |
Accretion of discounts on debt and amortization of deferred debt issuance costs | 7,740 | 7,964 |
Provision for uncollectible advances | 9,666 | 8,558 |
Depreciation and amortization of premises and equipment and intangible assets | 10,932 | 14,423 |
Provision (benefit) for deferred income taxes | (330) | (40,819) |
Share-based compensation | 865 | 859 |
Purchases and originations of residential loans held for sale | (5,187,091) | (5,158,411) |
Proceeds from sales of and payments on residential loans held for sale | 5,301,187 | 5,422,461 |
Net gains on sales of loans | (74,356) | (84,477) |
Gain on sale of business | (67,727) | 0 |
Other | 2,506 | 3,622 |
Changes in assets and liabilities | ||
Decrease (increase) in receivables | 8,812 | (25,051) |
Decrease in servicer and protective advances | 180,432 | 6,517 |
Increase in other assets | (4,774) | (9,201) |
Decrease in payables and accrued liabilities | (82,751) | (53,212) |
Increase in servicer payables, net of change in restricted cash | 7,698 | 673 |
Cash flows provided by operating activities | 146,732 | 202,735 |
Investing activities | ||
Purchases and originations of reverse loans held for investment | (130,269) | (181,167) |
Principal payments received on reverse loans held for investment | 277,262 | 197,883 |
Principal payments received on mortgage loans held for investment | 23,981 | 22,325 |
Payments received on charged-off loans held for investment | 5,025 | 7,000 |
Payments received on receivables related to Non-Residual Trusts | 3,754 | 1,957 |
Proceeds from sales of real estate owned, net | 34,344 | 21,409 |
Purchases of premises and equipment | (469) | (11,653) |
Increase in restricted cash and cash equivalents | (1,887) | 9,048 |
Payments for acquisitions of businesses, net of cash acquired | (804) | (1,947) |
Acquisitions of servicing rights, net | (109) | (6,571) |
Proceeds from sales of servicing rights, net | 29,673 | 0 |
Proceeds from sale of business | 131,067 | 0 |
Other | 9,524 | (337) |
Cash flows provided by investing activities | 381,092 | 57,947 |
Financing activities | ||
Payments on corporate debt | (21,285) | (210) |
Proceeds from securitizations of reverse loans | 154,316 | 202,947 |
Payments on HMBS related obligations | (400,693) | (271,013) |
Issuances of servicing advance liabilities | 328,341 | 441,924 |
Payments on servicing advance liabilities | (449,636) | (469,835) |
Net change in warehouse borrowings related to mortgage loans | (116,795) | (214,510) |
Net change in warehouse borrowings related to reverse loans | 8,117 | 75,910 |
Payments on servicing rights related liabilities | (1,415) | (4,250) |
Payments on mortgage-backed debt | (28,619) | (25,203) |
Other debt issuance costs paid | (964) | (1,031) |
Other | 13,385 | (462) |
Cash flows used in financing activities | (515,248) | (269,092) |
Net increase in cash and cash equivalents | 12,576 | (8,410) |
Cash and cash equivalents at beginning of the period | 224,598 | 202,828 |
Cash and cash equivalents at end of the period | 237,174 | $ 194,418 |
As Previously Reported | ||
Operating activities | ||
Net income | 1,888 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Net fair value gains on reverse loans and related HMBS obligations | 14,702 | |
Amortization of servicing rights | 5,025 | |
Change in fair value of servicing rights | 53,516 | |
Change in fair value of charged-off loans | (10,133) | |
Other net fair value (gains) losses | (3,363) | |
Accretion of discounts on residential loans and advances | (928) | |
Accretion of discounts on debt and amortization of deferred debt issuance costs | 7,740 | |
Provision for uncollectible advances | 9,666 | |
Depreciation and amortization of premises and equipment and intangible assets | 10,932 | |
Provision (benefit) for deferred income taxes | 1,840 | |
Share-based compensation | 865 | |
Purchases and originations of residential loans held for sale | (5,187,091) | |
Proceeds from sales of and payments on residential loans held for sale | 5,301,187 | |
Net gains on sales of loans | (74,356) | |
Gain on sale of business | (67,727) | |
Other | 2,506 | |
Changes in assets and liabilities | ||
Decrease (increase) in receivables | 9,262 | |
Decrease in servicer and protective advances | 180,432 | |
Increase in other assets | (4,774) | |
Decrease in payables and accrued liabilities | (82,751) | |
Increase in servicer payables, net of change in restricted cash | 7,698 | |
Cash flows provided by operating activities | 146,732 | |
Investing activities | ||
Purchases and originations of reverse loans held for investment | (130,269) | |
Principal payments received on reverse loans held for investment | 277,262 | |
Principal payments received on mortgage loans held for investment | 23,981 | |
Payments received on charged-off loans held for investment | 5,025 | |
Payments received on receivables related to Non-Residual Trusts | 3,754 | |
Proceeds from sales of real estate owned, net | 34,344 | |
Purchases of premises and equipment | (469) | |
Increase in restricted cash and cash equivalents | (1,887) | |
Payments for acquisitions of businesses, net of cash acquired | (804) | |
Acquisitions of servicing rights, net | (109) | |
Proceeds from sales of servicing rights, net | 29,673 | |
Proceeds from sale of business | 131,067 | |
Other | 9,524 | |
Cash flows provided by investing activities | 381,092 | |
Financing activities | ||
Payments on corporate debt | (21,285) | |
Proceeds from securitizations of reverse loans | 154,316 | |
Payments on HMBS related obligations | (400,693) | |
Issuances of servicing advance liabilities | 328,341 | |
Payments on servicing advance liabilities | (449,636) | |
Net change in warehouse borrowings related to mortgage loans | (116,795) | |
Net change in warehouse borrowings related to reverse loans | 8,117 | |
Payments on servicing rights related liabilities | (1,415) | |
Payments on mortgage-backed debt | (28,619) | |
Other debt issuance costs paid | (964) | |
Other | 13,385 | |
Cash flows used in financing activities | (515,248) | |
Net increase in cash and cash equivalents | 12,576 | |
Cash and cash equivalents at beginning of the period | 224,598 | |
Cash and cash equivalents at end of the period | 237,174 | |
Restatement Adjustments | Deferred Tax Asset Valuation Allowance Adjustments | ||
Operating activities | ||
Net income | 2,620 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||
Net fair value gains on reverse loans and related HMBS obligations | 0 | |
Amortization of servicing rights | 0 | |
Change in fair value of servicing rights | 0 | |
Change in fair value of charged-off loans | 0 | |
Other net fair value (gains) losses | 0 | |
Accretion of discounts on residential loans and advances | 0 | |
Accretion of discounts on debt and amortization of deferred debt issuance costs | 0 | |
Provision for uncollectible advances | 0 | |
Depreciation and amortization of premises and equipment and intangible assets | 0 | |
Provision (benefit) for deferred income taxes | (2,170) | |
Share-based compensation | 0 | |
Purchases and originations of residential loans held for sale | 0 | |
Proceeds from sales of and payments on residential loans held for sale | 0 | |
Net gains on sales of loans | 0 | |
Gain on sale of business | 0 | |
Other | 0 | |
Changes in assets and liabilities | ||
Decrease (increase) in receivables | (450) | |
Decrease in servicer and protective advances | 0 | |
Increase in other assets | 0 | |
Decrease in payables and accrued liabilities | 0 | |
Increase in servicer payables, net of change in restricted cash | 0 | |
Cash flows provided by operating activities | 0 | |
Investing activities | ||
Purchases and originations of reverse loans held for investment | 0 | |
Principal payments received on reverse loans held for investment | 0 | |
Principal payments received on mortgage loans held for investment | 0 | |
Payments received on charged-off loans held for investment | 0 | |
Payments received on receivables related to Non-Residual Trusts | 0 | |
Proceeds from sales of real estate owned, net | 0 | |
Purchases of premises and equipment | 0 | |
Increase in restricted cash and cash equivalents | 0 | |
Payments for acquisitions of businesses, net of cash acquired | 0 | |
Acquisitions of servicing rights, net | 0 | |
Proceeds from sales of servicing rights, net | 0 | |
Proceeds from sale of business | 0 | |
Other | 0 | |
Cash flows provided by investing activities | 0 | |
Financing activities | ||
Payments on corporate debt | 0 | |
Proceeds from securitizations of reverse loans | 0 | |
Payments on HMBS related obligations | 0 | |
Issuances of servicing advance liabilities | 0 | |
Payments on servicing advance liabilities | 0 | |
Net change in warehouse borrowings related to mortgage loans | 0 | |
Net change in warehouse borrowings related to reverse loans | 0 | |
Payments on servicing rights related liabilities | 0 | |
Payments on mortgage-backed debt | 0 | |
Other debt issuance costs paid | 0 | |
Other | 0 | |
Cash flows used in financing activities | 0 | |
Net increase in cash and cash equivalents | 0 | |
Cash and cash equivalents at beginning of the period | 0 | |
Cash and cash equivalents at end of the period | $ 0 |
Going Concern - Additional Info
Going Concern - Additional Information (Details) - USD ($) | Aug. 04, 2017 | Jul. 31, 2017 | Mar. 31, 2017 |
Subsequent Event [Line Items] | |||
Percentage Of Convertible Notes Required For Offer to Repay If Company Delisted | 100.00% | ||
Percentage Of Trustee Or Holders Of Convertible Notes Necessary to Accelerate Indebtedness Threshold | 25.00% | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Percentage Of Lenders Holding Loans Or Commitments Under Credit Agreement Threshold | 50.00% | ||
Percentage Of Aggregate Principal Amount Of Senior Notes For Restructuring Support Agreement Threshold | 66.67% | ||
Percentage Of Gross Proceeds From Disposition Of Bulk Mortgage Servicing Rights Required As Prepayment On Term Loans | 80.00% | ||
Forecast | |||
Subsequent Event [Line Items] | |||
Aggregate Principal Amount Of Term loans Of Lenders Party To Restructuring Support Agreement Obligated To Repurchase At Par | $ 100,000,000 | ||
Period Following Earlier Of Effective Date And Date Stipulated In Credit Agreement Measurement Date | 120 days | ||
Aggregate Principal Amount of Term Loans Prepaid From Bulk Mortgage Servicing Rights Dispositions Threshold For Mandatory Prepayment | $ 100,000,000 | ||
Prepayment Of Term Loans Required, Less Proceeds From Bulk Mortgage Servicing Rights Acquisitions Dispositions Previously Applied, On Effective Date Of Credit Agreement | $ 100,000,000 | ||
Warehouse Agreement Borrowings | One Credit Facility Used to Repurchase HECMs | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Increase in aggregate capacity | $ 100,000,000 | ||
Expiration date | May 31, 2018 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Assets and Liabilities of Consolidated VIEs (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Restricted cash and cash equivalents | $ 174,324 | $ 204,463 |
Residential loans at amortized cost, net | 678,482 | 665,209 |
Residential loans at fair value | 12,240,962 | 12,416,542 |
Receivables, net | 224,732 | 267,962 |
Servicer and protective advances, net | 1,005,157 | 1,195,380 |
Other assets | 201,346 | 242,290 |
Total assets | 15,900,796 | 16,458,970 |
Liabilities | ||
Payables and accrued liabilities | 699,741 | 759,011 |
Servicing advance liabilities | 662,206 | 783,229 |
Mortgage-backed debt | 916,952 | 943,956 |
Total liabilities | 15,919,906 | 16,483,410 |
VIE Primary Beneficiary | ||
Assets | ||
Restricted cash and cash equivalents | 44,254 | 45,843 |
Residential loans at amortized cost, net | 453,474 | 462,877 |
Residential loans at fair value | 440,219 | 492,499 |
Receivables, net | 13,848 | 15,798 |
Servicer and protective advances, net | 607,357 | 734,707 |
Other assets | 14,001 | 19,831 |
Total assets | 1,573,153 | 1,771,555 |
Liabilities | ||
Payables and accrued liabilities | 2,777 | 2,985 |
Servicing advance liabilities | 542,528 | 650,565 |
Mortgage-backed debt | 916,952 | 943,956 |
Total liabilities | 1,462,257 | 1,597,506 |
VIE Primary Beneficiary | Residual Trusts | ||
Assets | ||
Restricted cash and cash equivalents | 14,109 | 13,321 |
Residential loans at amortized cost, net | 453,474 | 462,877 |
Residential loans at fair value | 0 | 0 |
Receivables, net | 0 | 0 |
Servicer and protective advances, net | 0 | 0 |
Other assets | 8,302 | 10,028 |
Total assets | 475,885 | 486,226 |
Liabilities | ||
Payables and accrued liabilities | 2,048 | 2,140 |
Servicing advance liabilities | 0 | 0 |
Mortgage-backed debt | 418,184 | 429,931 |
Total liabilities | 420,232 | 432,071 |
VIE Primary Beneficiary | Non-Residual Trusts | ||
Assets | ||
Restricted cash and cash equivalents | 11,606 | 10,257 |
Residential loans at amortized cost, net | 0 | 0 |
Residential loans at fair value | 440,219 | 450,377 |
Receivables, net | 13,848 | 15,033 |
Servicer and protective advances, net | 0 | 0 |
Other assets | 726 | 1,028 |
Total assets | 466,399 | 476,695 |
Liabilities | ||
Payables and accrued liabilities | 0 | 0 |
Servicing advance liabilities | 0 | 0 |
Mortgage-backed debt | 498,768 | 514,025 |
Total liabilities | 498,768 | 514,025 |
VIE Primary Beneficiary | Servicer and Protective Advance Financing Facilities | ||
Assets | ||
Restricted cash and cash equivalents | 18,539 | 22,265 |
Residential loans at amortized cost, net | 0 | 0 |
Residential loans at fair value | 0 | 0 |
Receivables, net | 0 | 0 |
Servicer and protective advances, net | 607,357 | 734,707 |
Other assets | 1,018 | 1,440 |
Total assets | 626,914 | 758,412 |
Liabilities | ||
Payables and accrued liabilities | 729 | 845 |
Servicing advance liabilities | 542,528 | 650,565 |
Mortgage-backed debt | 0 | 0 |
Total liabilities | 543,257 | 651,410 |
VIE Primary Beneficiary | Revolving Credit Facilities Related VIEs | ||
Assets | ||
Restricted cash and cash equivalents | 0 | 0 |
Residential loans at amortized cost, net | 0 | 0 |
Residential loans at fair value | 0 | 42,122 |
Receivables, net | 0 | 765 |
Servicer and protective advances, net | 0 | 0 |
Other assets | 3,955 | 7,335 |
Total assets | 3,955 | 50,222 |
Liabilities | ||
Payables and accrued liabilities | 0 | 0 |
Servicing advance liabilities | 0 | 0 |
Mortgage-backed debt | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Transfers of Residential Loan41
Transfers of Residential Loans - Schedule of Continuing Involvement with Mortgage Loans Sold with Servicing Rights Retained (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Net Assets Recorded on the Consolidated Balance Sheets | $ 465,996 | $ 458,904 |
Unpaid Principal Balance of Sold Loans | 38,237,665 | 36,116,570 |
Servicing Rights, Net | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Net Assets Recorded on the Consolidated Balance Sheets | 451,192 | 439,062 |
Servicer And Protective Advances, Net | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Net Assets Recorded on the Consolidated Balance Sheets | 18,341 | 21,825 |
Payables and Accrued Liabilities | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Net Assets Recorded on the Consolidated Balance Sheets | $ (3,537) | $ (1,983) |
Transfers of Residential Loan42
Transfers of Residential Loans - Additional Information (Detail) - USD ($) $ in Billions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Transfers of Residential Loans [Line Items] | ||
Mortgage loans sold and serviced, 60 days or more past due, percent | 1.20% | 1.30% |
Mortgage loans sold and serviced, number of days past due threshold | 60 days or more | |
Reverse Loans and Real Estate Owned | ||
Transfers of Residential Loans [Line Items] | ||
Unpaid principal balance of assets pledged as collateral to securitization pools | $ 9.7 | |
Carrying value of assets pledged as collateral to securitization pools | $ 10.2 |
Transfers of Residential Loan43
Transfers of Residential Loans - Summary of Cash Flows Related to Sales of Mortgage Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Transfers and Servicing [Abstract] | ||
Cash proceeds received from sales, net of fees | $ 5,252,552 | $ 5,464,865 |
Servicing fees collected | 30,803 | 34,772 |
Repurchases of previously sold loans | $ 17,503 | $ 5,932 |
Fair Value - Summary of Assets
Fair Value - Summary of Assets and Liabilities in Each Level of Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Residential loans at fair value | $ 12,240,962 | $ 12,416,542 | ||
Receivables related to Non-Residual Trusts | 13,848 | 15,033 | ||
Servicing rights carried at fair value | 930,333 | 949,593 | $ 1,427,331 | $ 1,682,016 |
Derivative instruments | 47,173 | 87,937 | ||
Liabilities | ||||
Derivative instruments | 14,271 | 11,804 | ||
Servicing rights related liabilities | 3,537 | 1,902 | ||
Mortgage-backed debt related to Non-Residual Trusts | 498,768 | 514,025 | ||
HMBS related obligations | 10,289,505 | 10,509,449 | ||
Mortgage Loans Held For Sale | ||||
Assets | ||||
Residential loans at fair value | 1,148,940 | 1,176,280 | ||
Reverse Loans | ||||
Assets | ||||
Residential loans at fair value | 10,599,732 | 10,742,922 | ||
Mortgage Loans Related to Non-Residual Trusts | ||||
Assets | ||||
Residential loans at fair value | 440,219 | 450,377 | ||
Charged-Off Loans | ||||
Assets | ||||
Residential loans at fair value | 52,071 | 46,963 | ||
Level 2 | ||||
Assets | ||||
Servicing rights carried at fair value | 21,063 | 13,170 | ||
Derivative instruments | 1,826 | 34,543 | ||
Assets | 1,171,829 | 1,223,993 | ||
Liabilities | ||||
Derivative instruments | 13,557 | 7,611 | ||
Servicing rights related liabilities | 3,537 | 1,902 | ||
Liabilities | 17,094 | 9,513 | ||
Level 2 | Mortgage Loans Held For Sale | ||||
Assets | ||||
Residential loans at fair value | 1,148,940 | 1,176,280 | ||
Level 3 | ||||
Assets | ||||
Receivables related to Non-Residual Trusts | 13,848 | 15,033 | ||
Servicing rights carried at fair value | 909,270 | 936,423 | ||
Derivative instruments | 45,347 | 53,394 | ||
Assets | 12,060,487 | 12,245,112 | ||
Liabilities | ||||
Derivative instruments | 714 | 4,193 | ||
Mortgage-backed debt related to Non-Residual Trusts | 498,768 | 514,025 | ||
HMBS related obligations | 10,289,505 | 10,509,449 | ||
Liabilities | 10,788,987 | 11,027,667 | ||
Level 3 | Reverse Loans | ||||
Assets | ||||
Residential loans at fair value | 10,599,732 | 10,742,922 | ||
Level 3 | Mortgage Loans Related to Non-Residual Trusts | ||||
Assets | ||||
Residential loans at fair value | 440,219 | 450,377 | ||
Level 3 | Charged-Off Loans | ||||
Assets | ||||
Residential loans at fair value | $ 52,071 | $ 46,963 |
Fair Value - Schedule of Assets
Fair Value - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis Utilizing Significant Unobservable Inputs Reconciliation (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Assets | ||
Fair Value, Beginning Balance | $ 12,245,112 | $ 13,089,216 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 11,789 | (139,572) |
Purchases and Other | 43,580 | 73,657 |
Sales and Other | 76 | |
Originations/ Issuances | 111,866 | 179,409 |
Settlements | (351,936) | (264,380) |
Fair Value, Ending Balance | 12,060,487 | 12,938,330 |
Liabilities | ||
Fair Value, Beginning Balance | (11,027,667) | (11,347,792) |
Total Gains (Losses) Included in Comprehensive Income (Loss) | (32,990) | (122,449) |
Purchases and Other | 0 | 0 |
Sales and Other | 0 | |
Originations/ Issuances | (154,315) | (202,947) |
Settlements | 425,985 | 305,107 |
Fair Value, Ending Balance | (10,788,987) | (11,368,081) |
Freestanding Derivative Instruments | Interest Rate Lock Commitments | ||
Liabilities | ||
Fair Value, Beginning Balance | (4,193) | (1,070) |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 3,479 | 815 |
Purchases and Other | 0 | 0 |
Sales and Other | 0 | |
Originations/ Issuances | 0 | 0 |
Settlements | 0 | 0 |
Fair Value, Ending Balance | (714) | (255) |
Servicing Rights Related Liabilities | ||
Liabilities | ||
Fair Value, Beginning Balance | (117,000) | |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 3,294 | |
Purchases and Other | 0 | |
Originations/ Issuances | 0 | |
Settlements | 8,147 | |
Fair Value, Ending Balance | (105,559) | |
Mortgage-Backed Debt Related to Non-Residual Trusts | ||
Liabilities | ||
Fair Value, Beginning Balance | (514,025) | (582,340) |
Total Gains (Losses) Included in Comprehensive Income (Loss) | (8,559) | (6,932) |
Purchases and Other | 0 | 0 |
Sales and Other | 0 | |
Originations/ Issuances | 0 | 0 |
Settlements | 23,816 | 24,440 |
Fair Value, Ending Balance | (498,768) | (564,832) |
HMBS Related Obligations | ||
Liabilities | ||
Fair Value, Beginning Balance | (10,509,449) | (10,647,382) |
Total Gains (Losses) Included in Comprehensive Income (Loss) | (27,910) | (119,626) |
Purchases and Other | 0 | 0 |
Sales and Other | 0 | |
Originations/ Issuances | (154,315) | (202,947) |
Settlements | 402,169 | 272,520 |
Fair Value, Ending Balance | (10,289,505) | (10,697,435) |
Reverse Loans | ||
Assets | ||
Fair Value, Beginning Balance | 10,742,922 | 10,763,816 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 42,612 | 154,834 |
Purchases and Other | 43,134 | 54,020 |
Sales and Other | 0 | |
Originations/ Issuances | 87,062 | 127,151 |
Settlements | (315,998) | (226,930) |
Fair Value, Ending Balance | 10,599,732 | 10,872,891 |
Mortgage Loans Related to Non-Residual Trusts | ||
Assets | ||
Fair Value, Beginning Balance | 450,377 | 526,016 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 12,502 | 5,163 |
Purchases and Other | 0 | 0 |
Sales and Other | 0 | |
Originations/ Issuances | 0 | 0 |
Settlements | (22,660) | (24,842) |
Fair Value, Ending Balance | 440,219 | 506,337 |
Charged-Off Loans | ||
Assets | ||
Fair Value, Beginning Balance | 46,963 | 49,307 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 14,591 | 14,376 |
Purchases and Other | 0 | 0 |
Sales and Other | 0 | |
Originations/ Issuances | 0 | 0 |
Settlements | (9,483) | (10,437) |
Fair Value, Ending Balance | 52,071 | 53,246 |
Liabilities | ||
Gains from instrument-specific credit risk | 10,100 | 10,900 |
Receivables Related to Non-Residual Trusts | ||
Assets | ||
Fair Value, Beginning Balance | 15,033 | 16,542 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 2,569 | (467) |
Purchases and Other | 0 | 0 |
Sales and Other | 0 | |
Originations/ Issuances | 0 | 0 |
Settlements | (3,754) | (1,957) |
Fair Value, Ending Balance | 13,848 | 14,118 |
Servicing Rights Carried at Fair Value | ||
Assets | ||
Fair Value, Beginning Balance | 936,423 | 1,682,016 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | (52,479) | (326,580) |
Purchases and Other | 446 | 19,637 |
Sales and Other | 76 | |
Originations/ Issuances | 24,804 | 52,258 |
Settlements | 0 | 0 |
Fair Value, Ending Balance | 909,270 | 1,427,331 |
Freestanding Derivative Instruments | Interest Rate Lock Commitments | ||
Assets | ||
Fair Value, Beginning Balance | 53,394 | 51,519 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | (8,006) | 13,102 |
Purchases and Other | 0 | 0 |
Sales and Other | 0 | |
Originations/ Issuances | 0 | 0 |
Settlements | (41) | (214) |
Fair Value, Ending Balance | $ 45,347 | $ 64,407 |
Fair Value - Schedule of Signif
Fair Value - Schedule of Significant Unobservable Inputs Used in Fair Value Measurement of Assets and Liabilities on Recurring Basis (Detail) - Recurring Measurement Basis - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Freestanding Derivative Instruments | Interest Rate Lock Commitments | Minimum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Loan funding probability | 18.75% | 34.40% |
Fair value of initial servicing rights multiple | 0.02 | 0.04 |
Freestanding Derivative Instruments | Interest Rate Lock Commitments | Maximum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Loan funding probability | 100.00% | 100.00% |
Fair value of initial servicing rights multiple | 5.16 | 6.04 |
Freestanding Derivative Instruments | Interest Rate Lock Commitments | Weighted Average | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Loan funding probability | 81.13% | 83.36% |
Fair value of initial servicing rights multiple | 3.52 | 3.69 |
Mortgage-Backed Debt Related to Non-Residual Trusts | Minimum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 6.00% | 6.00% |
Conditional prepayment rate | 2.27% | 2.22% |
Conditional default rate | 2.56% | 2.32% |
Loss severity | 83.45% | 77.88% |
Mortgage-Backed Debt Related to Non-Residual Trusts | Maximum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 6.00% | 6.00% |
Conditional prepayment rate | 3.07% | 3.17% |
Conditional default rate | 5.84% | 4.66% |
Loss severity | 100.00% | 100.00% |
Mortgage-Backed Debt Related to Non-Residual Trusts | Weighted Average | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 6.00% | 6.00% |
Conditional prepayment rate | 2.73% | 2.65% |
Conditional default rate | 3.63% | 3.34% |
Loss severity | 95.97% | 94.51% |
HMBS Related Obligations | Minimum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Weighted-average remaining life in years | 5 months | 4 months 24 days |
Conditional repayment rate | 11.77% | 11.49% |
Discount rate | 1.59% | 1.50% |
HMBS Related Obligations | Maximum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Weighted-average remaining life in years | 7 years 2 months | 7 years 2 months 12 days |
Conditional repayment rate | 64.92% | 57.76% |
Discount rate | 3.19% | 3.17% |
HMBS Related Obligations | Weighted Average | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Weighted-average remaining life in years | 3 years 1 month | 3 years 2 months |
Conditional repayment rate | 28.84% | 27.74% |
Discount rate | 2.63% | 2.56% |
Reverse Loans | Minimum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Weighted-average remaining life in years | 6 months | 7 months 6 days |
Conditional repayment rate | 12.17% | 13.23% |
Discount rate | 2.04% | 1.93% |
Reverse Loans | Maximum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Weighted-average remaining life in years | 9 years 9 months | 10 years 2 months 12 days |
Conditional repayment rate | 59.43% | 55.32% |
Discount rate | 3.72% | 3.69% |
Reverse Loans | Weighted Average | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Weighted-average remaining life in years | 3 years 8 months | 3 years 9 months 18 days |
Conditional repayment rate | 29.58% | 28.48% |
Discount rate | 3.00% | 2.93% |
Mortgage Loans Related to Non-Residual Trusts | Minimum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 8.00% | 8.00% |
Conditional prepayment rate | 1.91% | 1.98% |
Conditional default rate | 0.99% | 1.02% |
Loss severity | 85.33% | 79.98% |
Mortgage Loans Related to Non-Residual Trusts | Maximum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 8.00% | 8.00% |
Conditional prepayment rate | 2.44% | 2.67% |
Conditional default rate | 5.10% | 4.25% |
Loss severity | 100.00% | 100.00% |
Mortgage Loans Related to Non-Residual Trusts | Weighted Average | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 8.00% | 8.00% |
Conditional prepayment rate | 2.19% | 2.27% |
Conditional default rate | 2.50% | 2.61% |
Loss severity | 97.73% | 96.61% |
Charged-Off Loans | Minimum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 28.00% | 28.00% |
Collection rate | 3.20% | 2.69% |
Charged-Off Loans | Maximum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 28.00% | 28.00% |
Collection rate | 5.37% | 3.55% |
Charged-Off Loans | Weighted Average | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 28.00% | 28.00% |
Collection rate | 3.31% | 2.74% |
Receivables Related to Non-Residual Trusts | Minimum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 0.50% | 0.50% |
Conditional prepayment rate | 2.27% | 2.22% |
Conditional default rate | 2.56% | 2.32% |
Loss severity | 83.45% | 77.88% |
Receivables Related to Non-Residual Trusts | Maximum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 0.50% | 0.50% |
Conditional prepayment rate | 3.07% | 3.17% |
Conditional default rate | 5.84% | 4.66% |
Loss severity | 100.00% | 100.00% |
Receivables Related to Non-Residual Trusts | Weighted Average | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 0.50% | 0.50% |
Conditional prepayment rate | 2.73% | 2.65% |
Conditional default rate | 3.63% | 3.34% |
Loss severity | 95.97% | 94.51% |
Servicing Rights Carried at Fair Value | Minimum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Weighted-average remaining life in years | 2 years 6 months | 2 years 7 months 6 days |
Discount rate | 10.71% | 10.68% |
Conditional prepayment rate | 5.89% | 5.76% |
Conditional default rate | 0.04% | 0.04% |
Cost to service | $ 62 | $ 62 |
Servicing Rights Carried at Fair Value | Maximum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Weighted-average remaining life in years | 7 years 6 months | 7 years 4 months 24 days |
Discount rate | 15.27% | 14.61% |
Conditional prepayment rate | 23.00% | 21.67% |
Conditional default rate | 3.02% | 2.97% |
Cost to service | $ 1,181 | $ 1,260 |
Servicing Rights Carried at Fair Value | Weighted Average | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Weighted-average remaining life in years | 6 years | 6 years |
Discount rate | 11.83% | 11.56% |
Conditional prepayment rate | 9.24% | 9.09% |
Conditional default rate | 0.90% | 0.88% |
Cost to service | $ 130 | $ 128 |
Freestanding Derivative Instruments | Interest Rate Lock Commitments | Minimum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Loan funding probability | 2.28% | 16.00% |
Fair value of initial servicing rights multiple | 0.01 | 0.01 |
Freestanding Derivative Instruments | Interest Rate Lock Commitments | Maximum | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Loan funding probability | 100.00% | 100.00% |
Fair value of initial servicing rights multiple | 5.82 | 5.98 |
Freestanding Derivative Instruments | Interest Rate Lock Commitments | Weighted Average | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Loan funding probability | 71.91% | 75.86% |
Fair value of initial servicing rights multiple | 3.01 | 3.06 |
Fair Value - Schedule of Estima
Fair Value - Schedule of Estimated Fair Value and Unpaid Principal Balance, Fair Value Option (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Loans At Fair Value Under The Fair Value Option [Abstract] | ||
Residential loans at fair value | $ 12,240,962 | $ 12,416,542 |
Total loans at fair value under the fair value option | 12,240,962 | 12,416,542 |
Total loans at fair value under the fair value option, unpaid principal balance | 14,150,322 | 14,319,767 |
Debt Instruments At Fair Value Under The Fair Value Option [Abstract] | ||
Mortgage-backed debt at fair value | 498,768 | 514,025 |
Mortgage-backed debt at fair value, unpaid principal balance | 501,603 | 518,317 |
HMBS related obligations at fair value | 10,289,505 | 10,509,449 |
HMBS related obligations at fair value, unpaid principal balance | 9,757,690 | 9,916,383 |
Total debt instruments at fair value under the fair value option | 10,788,273 | 11,023,474 |
Total debt instruments at fair value under the fair value option, unpaid principal balance | 10,259,293 | 10,434,700 |
Reverse Loans | ||
Loans At Fair Value Under The Fair Value Option [Abstract] | ||
Residential loans at fair value | 10,599,732 | 10,742,922 |
Residential loans at fair value, unpaid principal balance | 10,139,017 | 10,218,007 |
Mortgage Loans Held For Sale | ||
Loans At Fair Value Under The Fair Value Option [Abstract] | ||
Residential loans at fair value | 1,148,940 | 1,176,280 |
Residential loans at fair value, unpaid principal balance | 1,098,763 | 1,148,897 |
Mortgage Loans Related to Non-Residual Trusts | ||
Loans At Fair Value Under The Fair Value Option [Abstract] | ||
Residential loans at fair value | 440,219 | 450,377 |
Residential loans at fair value, unpaid principal balance | 495,041 | 513,545 |
Charged-Off Loans | ||
Loans At Fair Value Under The Fair Value Option [Abstract] | ||
Residential loans at fair value | 52,071 | 46,963 |
Residential loans at fair value, unpaid principal balance | $ 2,417,501 | $ 2,439,318 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned, net | $ 110.1 | $ 104.6 |
Loans in process of foreclosure | 198.8 | 418.4 |
Reverse Mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned, net | 97.4 | 90.7 |
Servicing | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned, net | 12 | 12.9 |
Other Non-Reportable Segment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned, net | $ 0.7 | 1 |
Mortgage Loans Related to Non-Residual Trusts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of days delinquent | 90 days | |
Loans 90 days or more past due, fair value | $ 0.4 | 1.6 |
Loans 90 days or more past due, unpaid principal balance | $ 31 | $ 29.5 |
Mortgage Loans Held For Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of days delinquent | 90 days | |
Charged-Off Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of days delinquent | 90 days |
Fair Value - Schedule of Sign49
Fair Value - Schedule of Significant Unobservable Inputs Used in Fair Value Measurement of Real Estate Owned (Detail) - Non-Recurring Measurement Basis - Real Estate Owned, Net | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity | 0.00% | 0.00% |
Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity | 60.98% | 61.61% |
Weighted Average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity | 6.89% | 7.30% |
Fair Value - Schedule of Carryi
Fair Value - Schedule of Carrying Amounts and Estimated Fair Values of Financial Assets and Liabilities Not Recorded at Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financial assets | ||
Residential loans at amortized cost, net | $ 678,482 | $ 665,209 |
Servicer and protective advances, net | 1,005,157 | 1,195,380 |
Financial liabilities | ||
Mortgage-backed debt carried at amortized cost | 916,952 | 943,956 |
Level 3 | Carrying Amount Measurement | ||
Financial assets | ||
Residential loans at amortized cost, net | 678,482 | 665,209 |
Servicer and protective advances, net | 1,005,157 | 1,195,380 |
Financial liabilities | ||
Servicing advance liabilities | 661,057 | 781,734 |
Mortgage-backed debt carried at amortized cost | 418,184 | 429,931 |
Level 3 | Estimated Fair Value Measurement | ||
Financial assets | ||
Residential loans at amortized cost, net | 693,028 | 674,851 |
Servicer and protective advances, net | 948,453 | 1,147,155 |
Financial liabilities | ||
Servicing advance liabilities | 661,646 | 782,570 |
Mortgage-backed debt carried at amortized cost | 428,272 | 435,679 |
Level 2 | Carrying Amount Measurement | ||
Financial liabilities | ||
Corporate debt | 2,109,865 | 2,126,176 |
Level 2 | Estimated Fair Value Measurement | ||
Financial liabilities | ||
Corporate debt | $ 1,612,373 | $ 1,967,518 |
Fair Value - Schedule of Net Ga
Fair Value - Schedule of Net Gains on Sales of Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Components of Net Gains on Sales of Loans [Line Items] | ||
Realized gains on sales of loans | $ 26,085 | $ 80,080 |
Change in unrealized gains on loans held for sale | 19,658 | 10,291 |
Capitalized servicing rights | 32,384 | 52,258 |
Provision for repurchases | (1,795) | (4,713) |
Interest income | 11,203 | 10,393 |
Other | 11 | 0 |
Net gains on sales of loans | 74,356 | 84,477 |
Interest Rate Lock Commitments | ||
Components of Net Gains on Sales of Loans [Line Items] | ||
Gains (losses) on derivative instruments | (4,526) | 13,917 |
Forward Sales Commitments | ||
Components of Net Gains on Sales of Loans [Line Items] | ||
Gains (losses) on derivative instruments | (20,548) | (66,953) |
MBS Purchase Commitments | ||
Components of Net Gains on Sales of Loans [Line Items] | ||
Gains (losses) on derivative instruments | $ 11,884 | $ (10,796) |
Fair Value - Schedule of Net Fa
Fair Value - Schedule of Net Fair Value Gains on Reverse Loans and Related HMBS Obligations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | ||
Interest income on reverse loans | $ 113,302 | $ 110,594 |
Change in fair value of reverse loans | (70,690) | 44,240 |
Net fair value gains on reverse loans | 42,612 | 154,834 |
Interest expense on HMBS related obligations | (102,436) | (103,254) |
Change in fair value of HMBS related obligations | 74,526 | (16,372) |
Net fair value losses on HMBS related obligations | (27,910) | (119,626) |
Net fair value gains on reverse loans and related HMBS obligations | $ 14,702 | $ 35,208 |
Freestanding Derivative Finan53
Freestanding Derivative Financial Instruments - Schedule of Notional or Contractual Amounts and Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Derivative Assets | $ 47,173 | $ 87,937 |
Derivative Liabilities | 14,271 | 11,804 |
Cash Margin, Paid | 6,832 | 0 |
Cash Margin, Received | 2,239 | 30,941 |
Interest Rate Lock Commitments | ||
Derivative [Line Items] | ||
Notional/ Contractual Amount | 2,429,149 | 3,046,549 |
Derivative Assets | 45,347 | 53,394 |
Derivative Liabilities | 714 | 4,193 |
Forward Sales Commitments | ||
Derivative [Line Items] | ||
Notional/ Contractual Amount | 3,190,680 | 3,978,000 |
Derivative Assets | 475 | 29,471 |
Derivative Liabilities | 13,557 | 7,609 |
MBS Purchase Commitments | ||
Derivative [Line Items] | ||
Notional/ Contractual Amount | 357,500 | 623,500 |
Derivative Assets | 1,351 | 5,072 |
Derivative Liabilities | $ 0 | $ 2 |
Freestanding Derivative Finan54
Freestanding Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Total net settlement amount - asset positions | $ 100 | $ 5,500 |
Total net settlement amount - liability positions | 6,900 | 9,000 |
Cash Margin, Received | 2,239 | 30,941 |
Excess cash deposited | 6,832 | $ 0 |
Counterparty A | ||
Derivative [Line Items] | ||
Net derivative liability position with counterparty | 400 | |
Cash Margin, Received | 1,500 | |
Net derivative liability position | 1,300 | |
Over-collateralized positions | 2,400 | |
Counterparty B | ||
Derivative [Line Items] | ||
Net derivative liability position with counterparty | 1,600 | |
Over-collateralized positions | 8,500 | |
Excess cash deposited | $ 96,700 |
Servicing of Residential Loan55
Servicing of Residential Loans - Schedule of Total Servicing Portfolio (Detail) $ in Thousands | Mar. 31, 2017USD ($)Accounts | Dec. 31, 2016USD ($)Accounts |
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 2,006,805 | 2,064,543 |
Unpaid Principal Balance | $ 240,710,113 | $ 246,445,143 |
Third Party Investors | Subservicing | New Residential Investment Corp. | ||
Servicing Portfolio [Line Items] | ||
Unpaid Principal Balance | $ 64,600,000 | |
Third-party Credit Owners | ||
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 1,910,998 | 1,967,155 |
Unpaid Principal Balance | $ 228,153,574 | $ 233,755,125 |
Third-party Credit Owners | Capitalized Servicing Rights | ||
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 1,002,683 | 1,032,676 |
Unpaid Principal Balance | $ 111,044,863 | $ 112,936,287 |
Third-party Credit Owners | Capitalized Subservicing | ||
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 123,977 | 130,018 |
Unpaid Principal Balance | $ 7,082,914 | $ 7,426,803 |
Third-party Credit Owners | Subservicing | ||
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 784,338 | 804,461 |
Unpaid Principal Balance | $ 110,025,797 | $ 113,392,035 |
On-balance Sheet | Residential Loans and Real Estate Owned | ||
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 95,807 | 97,388 |
Unpaid Principal Balance | $ 12,556,539 | $ 12,690,018 |
Servicing of Residential Loan56
Servicing of Residential Loans - Schedule of Net Servicing Revenue and Fees (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fees Earned in Exchange for Servicing Financial Assets [Line Items] | ||
Servicing fees | $ 133,393 | $ 177,754 |
Incentive and performance fees | 15,154 | 19,772 |
Ancillary and other fees | 23,243 | 24,609 |
Servicing revenue and fees | 171,790 | 222,135 |
Amortization of servicing rights | (5,025) | (4,611) |
Change in fair value of servicing rights | (53,516) | (326,580) |
Change in fair value of servicing rights related liabilities | (62) | 3,294 |
Net servicing revenue and fees | 113,187 | (105,762) |
Late fees | 15,600 | 15,800 |
Amortization of a servicing liability | 800 | 1,200 |
Impairment of a servicing liability | 1,800 | |
Interest expense | $ 60,410 | 64,248 |
Servicing Rights Related Liabilities | ||
Fees Earned in Exchange for Servicing Financial Assets [Line Items] | ||
Interest expense | 3,900 | |
Corporate Joint Venture | Sub-servicing Performed For WCO | ||
Fees Earned in Exchange for Servicing Financial Assets [Line Items] | ||
Sub-servicing fees related to servicing assets held by WCO | 1,000 | |
Incentive, performance, ancillary and other fees related to servicing assets held by WCO | 200 | |
Corporate Joint Venture | Sale Of Servicing Rights To WCO | ||
Fees Earned in Exchange for Servicing Financial Assets [Line Items] | ||
Servicing fees | $ 1,200 |
Servicing of Residential Loan57
Servicing of Residential Loans - Schedule of Servicing Rights Carried at Amortized Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Amortization of servicing rights | $ (5,025) | $ (4,611) |
Mortgage Loan | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance at beginning of the period | 74,621 | 99,302 |
Amortization of servicing rights | (3,632) | (5,387) |
Balance at end of the period | 70,989 | 93,915 |
Impairment of servicing rights | 1,400 | |
Reverse Loan | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance at beginning of the period | 5,505 | 7,258 |
Amortization of servicing rights | (399) | (460) |
Balance at end of the period | $ 5,106 | $ 6,798 |
Servicing of Residential Loan58
Servicing of Residential Loans - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Mortgage Loan | ||
Servicing Asset at Amortized Cost [Line Items] | ||
Fair value of servicing rights | $ 75.8 | $ 79.9 |
Reverse Loan | ||
Servicing Asset at Amortized Cost [Line Items] | ||
Fair value of servicing rights | $ 6.8 | $ 7.3 |
Servicing of Residential Loan59
Servicing of Residential Loans - Schedule of Fair Value Assumptions, Servicing Rights at Amortized Cost (Detail) - Servicing Rights Carried at Amortized Cost [Member] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Mortgage Loan | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Weighted-average remaining life in years | 4 years 6 months | 5 years 1 month 6 days |
Weighted-average discount rate | 13.00% | 13.00% |
Conditional prepayment rate | 6.59% | 6.51% |
Conditional default rate | 2.36% | 2.33% |
Reverse Loan | ||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||
Weighted-average remaining life in years | 2 years 7 months 6 days | 2 years 7 months 6 days |
Weighted-average discount rate | 15.00% | 15.00% |
Conditional repayment rate | 32.28% | 32.28% |
Servicing of Residential Loan60
Servicing of Residential Loans - Schedule of Servicing Rights Carried at Fair Value (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance at beginning of period | $ 949,593 | $ 1,682,016 |
Sales | (94) | 0 |
Change in fair value due to: | ||
Changes in valuation inputs or other assumptions | (17,530) | (258,460) |
Other changes in fair value | (35,986) | (68,120) |
Total change in fair value | (53,516) | (326,580) |
Balance at end of the period | 930,333 | 1,427,331 |
Corporate Joint Venture | Sale Of Servicing Rights To WCO | ||
Change in fair value due to: | ||
Servicing Rights Sold, Accounted For As Financing | 13,800 | |
Purchases | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Additions | 446 | 19,637 |
Servicing Rights Capitalized Upon Sales of Loans | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Additions | $ 33,904 | $ 52,258 |
Servicing of Residential Loan61
Servicing of Residential Loans - Schedule of Sensitivity Analysis of Fair Value, Servicing Rights Carried at Fair Value (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
10% adverse change in weighted-average discount rate | $ (41,094) | $ (41,926) |
10% adverse change in weighted-average conditional prepayment rate | (29,882) | (30,513) |
10% adverse change in weighted-average conditional default rate | (28,170) | (28,370) |
20% adverse change in weighted-average discount rate | (78,859) | (80,512) |
20% adverse change in weighted-average conditional prepayment rate | (57,866) | (59,083) |
20% adverse change in weighted-average conditional default rate | $ (57,602) | $ (57,854) |
Minimum | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Adverse Change In Assumptions, Percent | 10.00% | |
Maximum | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Adverse Change In Assumptions, Percent | 20.00% | |
Fair Value, Measurements, Recurring | Servicing Rights Carried at Fair Value | Minimum | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Weighted-average discount rate | 10.71% | 10.68% |
Weighted-average conditional prepayment rate | 5.89% | 5.76% |
Weighted-average conditional default rate | 0.04% | 0.04% |
Fair Value, Measurements, Recurring | Servicing Rights Carried at Fair Value | Maximum | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Weighted-average discount rate | 15.27% | 14.61% |
Weighted-average conditional prepayment rate | 23.00% | 21.67% |
Weighted-average conditional default rate | 3.02% | 2.97% |
Fair Value, Measurements, Recurring | Servicing Rights Carried at Fair Value | Weighted Average | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Weighted-average discount rate | 11.83% | 11.56% |
Weighted-average conditional prepayment rate | 9.24% | 9.09% |
Weighted-average conditional default rate | 0.90% | 0.88% |
Servicing of Residential Loan62
Servicing of Residential Loans - Schedule of Fair Value Assumptions, Fair Value of Servicing Rights on Date of Sale (Detail) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Transfers and Servicing [Abstract] | ||
Weighted-average life in years | 6 years 7 months | 6 years 1 month 6 days |
Weighted-average discount rate | 13.62% | 13.19% |
Weighted-average conditional prepayment rate | 8.00% | 9.68% |
Weighted-average conditional default rate | 0.38% | 0.32% |
Payables and Accrued Liabilit63
Payables and Accrued Liabilities - Schedule of Payables and Accrued Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Payables and Accruals [Abstract] | ||
Loans subject to repurchase from Ginnie Mae | $ 206,393 | $ 184,289 |
Accounts payable and accrued liabilities | 154,712 | 155,556 |
Curtailment liability | 119,413 | 121,305 |
Originations liability | 48,843 | 62,969 |
Employee-related liabilities | 38,444 | 91,063 |
Accrued interest payable | 22,291 | 9,414 |
Servicing rights and related advance purchases payable | 16,588 | 18,187 |
Derivative instruments | 14,271 | 11,804 |
Uncertain tax positions | 6,960 | 9,414 |
Payables to insurance carriers | 4,938 | 5,452 |
Margin payable on derivative instruments | 2,239 | 30,941 |
Other | 64,649 | 58,617 |
Total payables and accrued liabilities | $ 699,741 | 759,011 |
Delinquency threshold | 90 days | |
Uncertain tax position related to insurance business sale | $ 2,500 |
Payables and Accrued Liabilit64
Payables and Accrued Liabilities - Schedule of Exit Liability By Type of Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | $ 12,866 |
Charges | 1,871 |
Cash payments or other settlements | (10,191) |
Balance at March 31, 2017 | 4,546 |
Total cumulative charges incurred | 39,190 |
Total expected costs to be incurred (2) | 44,311 |
Severance and related costs | |
Exit Liability [Roll Forward] | |
Charges | 1,056 |
Cash payments or other settlements | (9,846) |
Total cumulative charges incurred | 28,062 |
Office closures and other costs | |
Exit Liability [Roll Forward] | |
Charges | 815 |
Cash payments or other settlements | (345) |
Total cumulative charges incurred | 11,128 |
2015 Actions | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 988 |
Charges | (47) |
Cash payments or other settlements | (217) |
Balance at March 31, 2017 | 724 |
Total cumulative charges incurred | 13,726 |
Total expected costs to be incurred (2) | 13,726 |
2015 Actions | Severance and related costs | |
Exit Liability [Roll Forward] | |
Charges | (57) |
Cash payments or other settlements | (54) |
Total cumulative charges incurred | 7,181 |
2015 Actions | Office closures and other costs | |
Exit Liability [Roll Forward] | |
Charges | 10 |
Cash payments or other settlements | (163) |
Total cumulative charges incurred | 6,545 |
2016 Actions | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 11,878 |
Charges | (339) |
Cash payments or other settlements | (9,368) |
Balance at March 31, 2017 | 2,171 |
Total cumulative charges incurred | 23,207 |
Total expected costs to be incurred (2) | 23,207 |
2016 Actions | Severance and related costs | |
Exit Liability [Roll Forward] | |
Charges | (344) |
Cash payments or other settlements | (9,191) |
Total cumulative charges incurred | 19,424 |
2016 Actions | Office closures and other costs | |
Exit Liability [Roll Forward] | |
Charges | 5 |
Cash payments or other settlements | (177) |
Total cumulative charges incurred | 3,783 |
2017 Actions | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 0 |
Charges | 2,257 |
Cash payments or other settlements | (606) |
Balance at March 31, 2017 | 1,651 |
Total cumulative charges incurred | 2,257 |
Total expected costs to be incurred (2) | 7,378 |
2017 Actions | Severance and related costs | |
Exit Liability [Roll Forward] | |
Charges | 1,457 |
Cash payments or other settlements | (601) |
Total cumulative charges incurred | 1,457 |
2017 Actions | Office closures and other costs | |
Exit Liability [Roll Forward] | |
Charges | 800 |
Cash payments or other settlements | (5) |
Total cumulative charges incurred | $ 800 |
Payables and Accrued Liabilit65
Payables and Accrued Liabilities - Schedule of Exit Liability by Segment (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | $ 12,866 |
Charges | 1,871 |
Cash payments or other settlements | (10,191) |
Balance at March 31, 2017 | 4,546 |
Total cumulative charges incurred | 39,190 |
Total expected costs to be incurred (2) | 44,311 |
Servicing | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 4,776 |
Charges | 823 |
Cash payments or other settlements | (3,551) |
Balance at March 31, 2017 | 2,048 |
Total cumulative charges incurred | 18,906 |
Total expected costs to be incurred (2) | 22,138 |
Originations | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 1,283 |
Charges | 433 |
Cash payments or other settlements | (1,081) |
Balance at March 31, 2017 | 635 |
Total cumulative charges incurred | 6,159 |
Total expected costs to be incurred (2) | 6,189 |
Reverse Mortgage | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 2,497 |
Charges | 678 |
Cash payments or other settlements | (1,905) |
Balance at March 31, 2017 | 1,270 |
Total cumulative charges incurred | 7,755 |
Total expected costs to be incurred (2) | 8,738 |
Other | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 4,310 |
Charges | (63) |
Cash payments or other settlements | (3,654) |
Balance at March 31, 2017 | 593 |
Total cumulative charges incurred | 6,370 |
Total expected costs to be incurred (2) | 7,246 |
2015 Actions | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 988 |
Charges | (47) |
Cash payments or other settlements | (217) |
Balance at March 31, 2017 | 724 |
Total cumulative charges incurred | 13,726 |
Total expected costs to be incurred (2) | 13,726 |
2015 Actions | Servicing | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 453 |
Charges | (57) |
Cash payments or other settlements | (66) |
Balance at March 31, 2017 | 330 |
Total cumulative charges incurred | 6,424 |
Total expected costs to be incurred (2) | 6,424 |
2015 Actions | Originations | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 260 |
Charges | 7 |
Cash payments or other settlements | (47) |
Balance at March 31, 2017 | 220 |
Total cumulative charges incurred | 4,597 |
Total expected costs to be incurred (2) | 4,597 |
2015 Actions | Reverse Mortgage | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 275 |
Charges | 3 |
Cash payments or other settlements | (104) |
Balance at March 31, 2017 | 174 |
Total cumulative charges incurred | 1,854 |
Total expected costs to be incurred (2) | 1,854 |
2015 Actions | Other | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 0 |
Charges | 0 |
Cash payments or other settlements | 0 |
Balance at March 31, 2017 | 0 |
Total cumulative charges incurred | 851 |
Total expected costs to be incurred (2) | 851 |
2016 Actions | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 11,878 |
Charges | (339) |
Cash payments or other settlements | (9,368) |
Balance at March 31, 2017 | 2,171 |
Total cumulative charges incurred | 23,207 |
Total expected costs to be incurred (2) | 23,207 |
2016 Actions | Servicing | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 4,323 |
Charges | (56) |
Cash payments or other settlements | (3,046) |
Balance at March 31, 2017 | 1,221 |
Total cumulative charges incurred | 11,546 |
Total expected costs to be incurred (2) | 11,546 |
2016 Actions | Originations | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 1,023 |
Charges | (80) |
Cash payments or other settlements | (872) |
Balance at March 31, 2017 | 71 |
Total cumulative charges incurred | 1,056 |
Total expected costs to be incurred (2) | 1,056 |
2016 Actions | Reverse Mortgage | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 2,222 |
Charges | (140) |
Cash payments or other settlements | (1,796) |
Balance at March 31, 2017 | 286 |
Total cumulative charges incurred | 5,086 |
Total expected costs to be incurred (2) | 5,086 |
2016 Actions | Other | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 4,310 |
Charges | (63) |
Cash payments or other settlements | (3,654) |
Balance at March 31, 2017 | 593 |
Total cumulative charges incurred | 5,519 |
Total expected costs to be incurred (2) | 5,519 |
2017 Actions | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 0 |
Charges | 2,257 |
Cash payments or other settlements | (606) |
Balance at March 31, 2017 | 1,651 |
Total cumulative charges incurred | 2,257 |
Total expected costs to be incurred (2) | 7,378 |
2017 Actions | Servicing | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 0 |
Charges | 936 |
Cash payments or other settlements | (439) |
Balance at March 31, 2017 | 497 |
Total cumulative charges incurred | 936 |
Total expected costs to be incurred (2) | 4,168 |
2017 Actions | Originations | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 0 |
Charges | 506 |
Cash payments or other settlements | (162) |
Balance at March 31, 2017 | 344 |
Total cumulative charges incurred | 506 |
Total expected costs to be incurred (2) | 536 |
2017 Actions | Reverse Mortgage | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 0 |
Charges | 815 |
Cash payments or other settlements | (5) |
Balance at March 31, 2017 | 810 |
Total cumulative charges incurred | 815 |
Total expected costs to be incurred (2) | 1,798 |
2017 Actions | Other | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 0 |
Charges | 0 |
Cash payments or other settlements | 0 |
Balance at March 31, 2017 | 0 |
Total cumulative charges incurred | 0 |
Total expected costs to be incurred (2) | $ 876 |
Warehouse Borrowings (As Rest66
Warehouse Borrowings (As Restated) - Additional Information (Details) - Warehouse Agreement Borrowings $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Short-term Debt [Line Items] | |
Aggregate funding capacity | $ 2,400 |
Variable interest rate basis | LIBOR |
Expiration dates through | Mar. 31, 2018 |
Minimum | |
Short-term Debt [Line Items] | |
Basis spread on variable interest rate | 2.10% |
Maximum | |
Short-term Debt [Line Items] | |
Basis spread on variable interest rate | 3.13% |
Borrowings under warehouse facility one to fund purchase or origination of residential loans | |
Short-term Debt [Line Items] | |
Aggregate funding capacity | $ 125 |
Expiration dates through | Feb. 11, 2017 |
Borrowings to fund purchase or origination of residential loans | |
Short-term Debt [Line Items] | |
Days to Transfer Loans | 20 days |
Borrowings to fund purchase or origination of residential loans | Minimum | |
Short-term Debt [Line Items] | |
Repayment Terms | 60 days |
Borrowings to fund purchase or origination of residential loans | Maximum | |
Short-term Debt [Line Items] | |
Repayment Terms | 90 days |
Borrowings to fund repurchase of HECMs | Minimum | |
Short-term Debt [Line Items] | |
Repayment Terms | 120 days |
Borrowings to fund repurchase of HECMs | Maximum | |
Short-term Debt [Line Items] | |
Repayment Terms | 364 days |
Borrowings to fund repurchase of real estate owned | Minimum | |
Short-term Debt [Line Items] | |
Repayment Terms | 180 days |
Borrowings to fund repurchase of real estate owned | Maximum | |
Short-term Debt [Line Items] | |
Repayment Terms | 364 days |
Residential Mortgage | |
Short-term Debt [Line Items] | |
Outstanding borrowings, secured | $ 1,000 |
Pledged as collateral | 1,100 |
Repurchased HECMs And Real Estate Owned | |
Short-term Debt [Line Items] | |
Outstanding borrowings, secured | 124.5 |
Pledged as collateral | $ 143.9 |
Common Stock and Earnings (Lo67
Common Stock and Earnings (Loss) Per Share (As Restated) - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017$ / shares | Dec. 31, 2015 | Dec. 31, 2016$ / shares | Nov. 11, 2016 | Jun. 29, 2015$ / sharesshares | |
Class of Stock [Line Items] | |||||
Dividend declared date | Jun. 29, 2015 | ||||
Dividend payable date | Jul. 9, 2015 | ||||
Dividend payable to stockholders of record date | Jul. 9, 2015 | ||||
Par value per share | $ 0.01 | $ 0.01 | |||
Preferred Share Purchase Rights Trigger Percentage | 4.99% | ||||
Convertible Notes | |||||
Class of Stock [Line Items] | |||||
Convertible Stock Price Trigger | $ 58.80 | ||||
Junior Participating Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Number of preferred stock purchase rights declared for each outstanding share of common stock | 1 | ||||
Amount of fully paid non-assessable share the registered holder is entitled to purchase | shares | 0.001 | ||||
Par value per share | $ 0.01 | ||||
Preferred Stock Redemption Price per One Onethousandth share | $ 74.16 | ||||
Beneficial Owner | |||||
Class of Stock [Line Items] | |||||
Preferred Share Purchase Rights Trigger Percentage | 25.00% |
Common Stock and Earnings (Lo68
Common Stock and Earnings (Loss) Per Share (As Restated) - Reconciliation of Numerators and Denominators of Basic and Diluted Earnings (Loss) Per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Basic earnings (loss) per share | ||
Net income (loss) available to common stockholders (numerator) | $ 4,508 | $ (172,702) |
Weighted-average common shares outstanding (denominator) | 36,412 | 35,579 |
Basic earnings (loss) per common and common equivalent share | $ 0.12 | $ (4.85) |
Diluted earnings (loss) per share | ||
Net income (loss) available to common stockholders (numerator) | $ 4,508 | $ (172,702) |
Diluted weighted-average common shares outstanding (denominator) | 36,812 | 35,579 |
Diluted earnings (loss) per common and common equivalent share | $ 0.12 | $ (4.85) |
Common Stock and Earnings (Lo69
Common Stock and Earnings (Loss) Per Share (As Restated) - Schedule of Antidilutive Securities Excluded from Computation of Dilutive Earnings (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Dilutive Earnings (Loss) Per Share [Line Items] | ||
Antidilutive securities excluded from computation of dilutive earnings (loss) per share | 3,412 | 2,876 |
Out-of-the-money stock options | 2,900 | |
Performance Shares | ||
Antidilutive Securities Excluded from Computation of Dilutive Earnings (Loss) Per Share [Line Items] | ||
Antidilutive securities excluded from computation of dilutive earnings (loss) per share | 183 | 0 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Dilutive Earnings (Loss) Per Share [Line Items] | ||
Antidilutive securities excluded from computation of dilutive earnings (loss) per share | 63 | 631 |
Convertible Notes | ||
Antidilutive Securities Excluded from Computation of Dilutive Earnings (Loss) Per Share [Line Items] | ||
Antidilutive securities excluded from computation of dilutive earnings (loss) per share | 4,932 | 4,932 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Select Financial Information of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 245,285 | $ 66,771 |
Income (loss) before income taxes | 4,386 | (278,891) |
Intercompany servicing revenue and fees | 113,187 | (105,762) |
Late fees waived as an incentive for borrowers refinancing loans | 15,600 | 15,800 |
Intercompany revenues | 27,120 | 30,310 |
Operating Segments | Servicing | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 147,780 | (63,255) |
Income (loss) before income taxes | 33,167 | (256,321) |
Operating Segments | Servicing | Intercompany | ||
Segment Reporting Information [Line Items] | ||
Intercompany servicing revenue and fees | 2,900 | 3,200 |
Late fees waived as an incentive for borrowers refinancing loans | 1,000 | 1,000 |
Intercompany revenues | 4,400 | 11,500 |
Operating Segments | Originations | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 80,808 | 100,277 |
Income (loss) before income taxes | 10,835 | 16,401 |
Operating Segments | Originations | Intercompany | ||
Segment Reporting Information [Line Items] | ||
Intercompany revenues | 100 | 700 |
Operating Segments | Reverse Mortgage | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 22,493 | 44,095 |
Income (loss) before income taxes | (5,299) | 5,027 |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 510 | 30 |
Income (loss) before income taxes | (34,317) | (43,998) |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Total revenues | (6,306) | (14,376) |
Income (loss) before income taxes | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | |||
Mar. 31, 2017USD ($)Trust | Mar. 31, 2016USD ($) | Jan. 09, 2017 | Dec. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | ||||
Percentage of maximum claim amount, repurchase threshold | 98.00% | |||
Reverse loans and real estate owned repurchased from securitization pools | $ 241,300,000 | $ 127,000,000 | ||
Repurchased reverse loans and real estate owned held | $ 12,240,962,000 | $ 12,416,542,000 | ||
Period Of Walter Energy Consolidated Group Tax Liability | 2009 and prior tax years | |||
Tax separation agreement date | Apr. 17, 2009 | |||
Period Of Walter Energy Proof Of Claim | August 31, 1983 through May 31, 1994 | |||
Walter Energy Federal Income Tax Years Under Audit | years ended May 31, 2000 through December 31, 2008 | |||
Walter Energy Additional Federal Income Tax Years under Audit | 2009 through 2013 tax years | |||
Percentage Of Equity Of Acquirer Of Walter Energy Core Assets Prospect Of Payment Exists | 1.00% | |||
Walter Energy Tax Year Under Audit | 2,009 | |||
Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency accrual | $ 41,000,000 | |||
Pending Litigation | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Aggregate estimated amount of reasonably possible losses in excess of recorded liability | 14,000,000 | |||
Pending Litigation | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Aggregate estimated amount of reasonably possible losses in excess of recorded liability | 0 | |||
Repurchased Reverse Loans And Real Estate Owned | ||||
Loss Contingencies [Line Items] | ||||
Repurchased reverse loans and real estate owned held | 531,400,000 | |||
Reverse Mortgage | Curtailment Obligation Liability | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency accrual | 100,900,000 | |||
Loss contingency recorded in current period | 400,000 | |||
Aggregate estimated amount of reasonably possible losses in excess of recorded liability | 148,300,000 | |||
Reverse Mortgage | Additional Borrowing Capacity Floating Rate Reverse Loans | ||||
Loss Contingencies [Line Items] | ||||
Commitments | 1,200,000,000 | |||
Commitment, capacity available to be drawn at March 31, 2017 | 1,000,000,000 | |||
Commitment, capacity eligible to be drawn through April 1, 2018 | 200,800,000 | |||
Reverse Mortgage | Additional Borrowing Capacity Fixed Rate Reverse Loans | ||||
Loss Contingencies [Line Items] | ||||
Commitments | 400,000 | |||
Reverse Mortgage | Commitment To Fund Taxes and Insurance | ||||
Loss Contingencies [Line Items] | ||||
Commitments | 28,400,000 | |||
Reverse Mortgage | Short Term Commitment To Lend | ||||
Loss Contingencies [Line Items] | ||||
Commitments | 1,400,000 | |||
Reverse Mortgage | Commitment to Purchase Loans | ||||
Loss Contingencies [Line Items] | ||||
Commitments to purchase loans | 2,300,000 | |||
Reverse Mortgage | Commitment to Sell Loans | ||||
Loss Contingencies [Line Items] | ||||
Commitments | 12,000,000 | |||
Originations | Curtailment Obligation Liability | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency accrual | 18,500,000 | |||
Originations | Commitment to Purchase Loans | ||||
Loss Contingencies [Line Items] | ||||
Commitments to purchase loans | 54,400,000 | |||
Originations | Commitment to Purchase Loans | Representations And Warranties | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency accrual | 21,600,000 | |||
Originations | Commitment to Purchase Loans | Representations And Warranties | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Commitments | 65,100,000,000 | |||
Originations | Commitment to Lend | ||||
Loss Contingencies [Line Items] | ||||
Commitments | 2,400,000,000 | |||
Originations | Commitment To Sell Securities | ||||
Loss Contingencies [Line Items] | ||||
Commitments | 3,200,000,000 | |||
Originations | Commitment to Purchase Mortgage Backed Securities | ||||
Loss Contingencies [Line Items] | ||||
Commitments to purchase loans | $ 400,000,000 | |||
VIE | ||||
Loss Contingencies [Line Items] | ||||
Number of securitization trusts with reimbursement obligations | Trust | 11 | |||
Reimbursement obligation on LOC, if drawn | $ 165,000,000 | |||
Amount available on LOCs for securitization trusts | 252,200,000 | |||
VIE Primary Beneficiary | ||||
Loss Contingencies [Line Items] | ||||
Repurchased reverse loans and real estate owned held | 440,219,000 | 492,499,000 | ||
VIE Primary Beneficiary | Non-Residual Trusts | ||||
Loss Contingencies [Line Items] | ||||
Repurchased reverse loans and real estate owned held | $ 440,219,000 | $ 450,377,000 | ||
VIE Primary Beneficiary | Non-Residual Trusts | Mandatory Clean-up Call For Residential Loans | ||||
Loss Contingencies [Line Items] | ||||
Mandatory clean-up calls required when loan pool falls to percent of original pincipal balance | 10.00% | |||
Expected period to exercise mandatory clean-up call obligation | 2017 and continuing through 2019 | |||
Total residential loans expected to be called | $ 418,200,000 | |||
Estimated call obligations in 2017 | 101,400,000 | |||
Estimated call obligations in 2018 | 253,800,000 | |||
Estimated call obligations in 2019 | 63,000,000 | |||
Estimated call obligations in second quarter of 2017 | 9,900,000 | |||
Estimated call obligations in third quarter of 2017 | 18,800,000 | |||
Estimated call obligations in fourth quarter of 2017 | $ 72,700,000 |
Separate Financial Informatio73
Separate Financial Information of Subsidiary Guarantors of Indebtedness (As Restated) - Additional Information (Details) | Mar. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Guarantor subsidiary, ownership percentage | 100.00% |
Separate Financial Informatio74
Separate Financial Information of Subsidiary Guarantors of Indebtedness (As Restated) - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and cash equivalents | $ 237,174 | $ 224,598 | $ 194,418 | $ 202,828 |
Restricted cash and cash equivalents | 174,324 | 204,463 | ||
Residential loans at amortized cost, net | 678,482 | 665,209 | ||
Residential loans at fair value | 12,240,962 | 12,416,542 | ||
Receivables, net | 224,732 | 267,962 | ||
Servicer and protective advances, net | 1,005,157 | 1,195,380 | ||
Servicing rights, net | 1,006,428 | 1,029,719 | ||
Goodwill | 47,747 | 47,747 | ||
Intangible assets, net | 10,445 | 11,347 | ||
Premises and equipment, net | 73,999 | 82,628 | ||
Assets held for sale | 0 | 71,085 | ||
Other assets | 201,346 | 242,290 | ||
Due from affiliates, net | 0 | 0 | ||
Investments in consolidated subsidiaries and VIEs | 0 | 0 | ||
Total assets | 15,900,796 | 16,458,970 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
Payables and accrued liabilities | 699,741 | 759,011 | ||
Servicer payables | 138,059 | 146,332 | ||
Servicing advance liabilities | 662,206 | 783,229 | ||
Warehouse borrowings | 1,094,677 | 1,203,355 | ||
Servicing rights related liabilities at fair value | 3,537 | 1,902 | ||
Corporate debt | 2,112,328 | 2,129,000 | ||
Mortgage-backed debt | 916,952 | 943,956 | ||
HMBS related obligations at fair value | 10,289,505 | 10,509,449 | ||
Liabilities held for sale | 0 | 2,402 | ||
Deferred tax liabilities, net | 2,901 | 4,774 | ||
Obligation to fund Non-Guarantor VIEs | 0 | 0 | ||
Due to affiliates, net | 0 | 0 | ||
Total liabilities | 15,919,906 | 16,483,410 | ||
Stockholders' equity (deficit): | ||||
Total stockholders' equity (deficit) | (19,110) | (24,440) | ||
Total liabilities and stockholders' equity (deficit) | 15,900,796 | 16,458,970 | ||
Reportable Legal Entities | Parent Company | ||||
ASSETS | ||||
Cash and cash equivalents | 1,057 | 773 | 4,188 | 4,016 |
Restricted cash and cash equivalents | 1,502 | 1,502 | ||
Residential loans at amortized cost, net | 12,510 | 12,891 | ||
Residential loans at fair value | 0 | 0 | ||
Receivables, net | 87,047 | 97,424 | ||
Servicer and protective advances, net | 0 | 0 | ||
Servicing rights, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Premises and equipment, net | 1,115 | 1,181 | ||
Assets held for sale | 0 | |||
Other assets | 18,104 | 30,789 | ||
Due from affiliates, net | 497,175 | 392,998 | ||
Investments in consolidated subsidiaries and VIEs | 1,532,365 | 1,620,339 | ||
Total assets | 2,150,875 | 2,157,897 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
Payables and accrued liabilities | 57,657 | 53,337 | ||
Servicer payables | 0 | 0 | ||
Servicing advance liabilities | 0 | 0 | ||
Warehouse borrowings | 0 | 0 | ||
Servicing rights related liabilities at fair value | 0 | 0 | ||
Corporate debt | 2,112,328 | 2,129,000 | ||
Mortgage-backed debt | 0 | 0 | ||
HMBS related obligations at fair value | 0 | 0 | ||
Liabilities held for sale | 0 | |||
Deferred tax liabilities, net | 0 | 0 | ||
Obligation to fund Non-Guarantor VIEs | 0 | 0 | ||
Due to affiliates, net | 0 | 0 | ||
Total liabilities | 2,169,985 | 2,182,337 | ||
Stockholders' equity (deficit): | ||||
Total stockholders' equity (deficit) | (19,110) | (24,440) | ||
Total liabilities and stockholders' equity (deficit) | 2,150,875 | 2,157,897 | ||
Reportable Legal Entities | Guarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 234,117 | 221,825 | 188,230 | 196,812 |
Restricted cash and cash equivalents | 129,462 | 158,204 | ||
Residential loans at amortized cost, net | 212,498 | 189,441 | ||
Residential loans at fair value | 11,800,743 | 11,924,043 | ||
Receivables, net | 123,841 | 154,852 | ||
Servicer and protective advances, net | 417,330 | 481,099 | ||
Servicing rights, net | 1,006,428 | 1,029,719 | ||
Goodwill | 47,747 | 47,747 | ||
Intangible assets, net | 10,445 | 11,347 | ||
Premises and equipment, net | 72,884 | 81,447 | ||
Assets held for sale | 65,045 | |||
Other assets | 169,241 | 191,671 | ||
Due from affiliates, net | 0 | 0 | ||
Investments in consolidated subsidiaries and VIEs | 67,216 | 134,612 | ||
Total assets | 14,291,952 | 14,691,052 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
Payables and accrued liabilities | 644,503 | 708,070 | ||
Servicer payables | 138,059 | 146,332 | ||
Servicing advance liabilities | 119,678 | 132,664 | ||
Warehouse borrowings | 1,094,677 | 1,203,355 | ||
Servicing rights related liabilities at fair value | 3,537 | 1,902 | ||
Corporate debt | 0 | 0 | ||
Mortgage-backed debt | 0 | 0 | ||
HMBS related obligations at fair value | 10,289,505 | 10,509,449 | ||
Liabilities held for sale | 1,179 | |||
Deferred tax liabilities, net | 2,901 | 3,204 | ||
Obligation to fund Non-Guarantor VIEs | 41,619 | 46,417 | ||
Due to affiliates, net | 496,625 | 392,812 | ||
Total liabilities | 12,831,104 | 13,145,384 | ||
Stockholders' equity (deficit): | ||||
Total stockholders' equity (deficit) | 1,460,848 | 1,545,668 | ||
Total liabilities and stockholders' equity (deficit) | 14,291,952 | 14,691,052 | ||
Reportable Legal Entities | Non-Guarantor Subsidiaries and VIEs | ||||
ASSETS | ||||
Cash and cash equivalents | 2,000 | 2,000 | 2,000 | 2,000 |
Restricted cash and cash equivalents | 43,360 | 44,757 | ||
Residential loans at amortized cost, net | 453,474 | 462,877 | ||
Residential loans at fair value | 440,219 | 492,499 | ||
Receivables, net | 13,844 | 15,686 | ||
Servicer and protective advances, net | 566,314 | 688,961 | ||
Servicing rights, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Premises and equipment, net | 0 | 0 | ||
Assets held for sale | 6,040 | |||
Other assets | 14,001 | 19,830 | ||
Due from affiliates, net | 0 | 0 | ||
Investments in consolidated subsidiaries and VIEs | 0 | 0 | ||
Total assets | 1,533,212 | 1,732,650 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
Payables and accrued liabilities | 4,424 | 5,474 | ||
Servicer payables | 0 | 0 | ||
Servicing advance liabilities | 542,528 | 650,565 | ||
Warehouse borrowings | 0 | 0 | ||
Servicing rights related liabilities at fair value | 0 | 0 | ||
Corporate debt | 0 | 0 | ||
Mortgage-backed debt | 916,952 | 943,956 | ||
HMBS related obligations at fair value | 0 | 0 | ||
Liabilities held for sale | 1,223 | |||
Deferred tax liabilities, net | 0 | 1,570 | ||
Obligation to fund Non-Guarantor VIEs | 0 | 0 | ||
Due to affiliates, net | 550 | 185 | ||
Total liabilities | 1,464,454 | 1,602,973 | ||
Stockholders' equity (deficit): | ||||
Total stockholders' equity (deficit) | 68,758 | 129,677 | ||
Total liabilities and stockholders' equity (deficit) | 1,533,212 | 1,732,650 | ||
Eliminations and Reclassifications | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Restricted cash and cash equivalents | 0 | 0 | ||
Residential loans at amortized cost, net | 0 | 0 | ||
Residential loans at fair value | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Servicer and protective advances, net | 21,513 | 25,320 | ||
Servicing rights, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Premises and equipment, net | 0 | 0 | ||
Assets held for sale | 0 | |||
Other assets | 0 | 0 | ||
Due from affiliates, net | (497,175) | (392,998) | ||
Investments in consolidated subsidiaries and VIEs | (1,599,581) | (1,754,951) | ||
Total assets | (2,075,243) | (2,122,629) | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
Payables and accrued liabilities | (6,843) | (7,870) | ||
Servicer payables | 0 | 0 | ||
Servicing advance liabilities | 0 | 0 | ||
Warehouse borrowings | 0 | 0 | ||
Servicing rights related liabilities at fair value | 0 | 0 | ||
Corporate debt | 0 | 0 | ||
Mortgage-backed debt | 0 | 0 | ||
HMBS related obligations at fair value | 0 | 0 | ||
Liabilities held for sale | 0 | |||
Deferred tax liabilities, net | 0 | 0 | ||
Obligation to fund Non-Guarantor VIEs | (41,619) | (46,417) | ||
Due to affiliates, net | (497,175) | (392,997) | ||
Total liabilities | (545,637) | (447,284) | ||
Stockholders' equity (deficit): | ||||
Total stockholders' equity (deficit) | (1,529,606) | (1,675,345) | ||
Total liabilities and stockholders' equity (deficit) | $ (2,075,243) | $ (2,122,629) |
Separate Financial Informatio75
Separate Financial Information of Subsidiary Guarantors of Indebtedness (As Restated) - Condensed Consolidating Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
REVENUES | ||
Net servicing revenue and fees | $ 113,187 | $ (105,762) |
Net gains on sales of loans | 74,356 | 84,477 |
Net fair value gains on reverse loans and related HMBS obligations | 14,702 | 35,208 |
Interest income on loans | 10,980 | 12,171 |
Insurance revenue | 4,940 | 10,367 |
Other revenues | 27,120 | 30,310 |
Total revenues | 245,285 | 66,771 |
EXPENSES | ||
General and administrative | 131,627 | 129,606 |
Salaries and benefits | 107,957 | 132,639 |
Interest expense | 60,410 | 64,248 |
Depreciation and amortization | 10,932 | 14,423 |
Corporate allocations | 0 | 0 |
Other expenses, net | 2,783 | 2,506 |
Total expenses | 313,709 | 343,422 |
OTHER GAINS (LOSSES) | ||
Gain on sale of business | 67,727 | 0 |
Other net fair value gains (losses) | 5,083 | (2,144) |
Gain on extinguishment | 0 | 928 |
Other | 0 | (1,024) |
Total other gains (losses) | 72,810 | (2,240) |
Income (loss) before income taxes | 4,386 | (278,891) |
Income tax expense (benefit) | (122) | (106,189) |
Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs | 4,508 | (172,702) |
Equity in earnings (losses) of consolidated subsidiaries and VIEs | 0 | 0 |
Net income (loss) | 4,508 | (172,702) |
Comprehensive income (loss) | 4,491 | (172,677) |
Reportable Legal Entities | Parent Company | ||
REVENUES | ||
Net servicing revenue and fees | 0 | 0 |
Net gains on sales of loans | 0 | 0 |
Net fair value gains on reverse loans and related HMBS obligations | 0 | 0 |
Interest income on loans | 239 | 317 |
Insurance revenue | 0 | 0 |
Other revenues | 144 | (406) |
Total revenues | 383 | (89) |
EXPENSES | ||
General and administrative | 15,706 | 11,241 |
Salaries and benefits | 11,502 | 12,510 |
Interest expense | 35,086 | 35,896 |
Depreciation and amortization | 180 | 189 |
Corporate allocations | (24,111) | (21,868) |
Other expenses, net | 141 | 271 |
Total expenses | 38,504 | 38,239 |
OTHER GAINS (LOSSES) | ||
Gain on sale of business | 0 | |
Other net fair value gains (losses) | 0 | 0 |
Gain on extinguishment | 928 | |
Other | 0 | |
Total other gains (losses) | 0 | 928 |
Income (loss) before income taxes | (38,121) | (37,400) |
Income tax expense (benefit) | (23,531) | 2,534 |
Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs | (14,590) | (39,934) |
Equity in earnings (losses) of consolidated subsidiaries and VIEs | 19,098 | (132,768) |
Net income (loss) | 4,508 | (172,702) |
Comprehensive income (loss) | 4,491 | (172,677) |
Reportable Legal Entities | Guarantor Subsidiaries | ||
REVENUES | ||
Net servicing revenue and fees | 115,265 | (103,475) |
Net gains on sales of loans | 74,356 | 84,477 |
Net fair value gains on reverse loans and related HMBS obligations | 14,660 | 35,208 |
Interest income on loans | 280 | 104 |
Insurance revenue | 4,688 | 9,495 |
Other revenues | 26,963 | 31,514 |
Total revenues | 236,212 | 57,323 |
EXPENSES | ||
General and administrative | 127,594 | 133,817 |
Salaries and benefits | 96,455 | 120,129 |
Interest expense | 13,078 | 11,573 |
Depreciation and amortization | 10,699 | 14,055 |
Corporate allocations | 24,111 | 21,868 |
Other expenses, net | 1,139 | 1,239 |
Total expenses | 273,076 | 302,681 |
OTHER GAINS (LOSSES) | ||
Gain on sale of business | 67,727 | |
Other net fair value gains (losses) | (1,347) | 216 |
Gain on extinguishment | 0 | |
Other | (1,024) | |
Total other gains (losses) | 66,380 | (808) |
Income (loss) before income taxes | 29,516 | (246,166) |
Income tax expense (benefit) | 22,698 | (109,872) |
Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs | 6,818 | (136,294) |
Equity in earnings (losses) of consolidated subsidiaries and VIEs | 14,826 | 373 |
Net income (loss) | 21,644 | (135,921) |
Comprehensive income (loss) | 21,644 | (135,921) |
Reportable Legal Entities | Non-Guarantor Subsidiaries and VIEs | ||
REVENUES | ||
Net servicing revenue and fees | 0 | 0 |
Net gains on sales of loans | 0 | 0 |
Net fair value gains on reverse loans and related HMBS obligations | 42 | 0 |
Interest income on loans | 10,461 | 11,750 |
Insurance revenue | 309 | 1,068 |
Other revenues | 17,029 | 15,616 |
Total revenues | 27,841 | 28,434 |
EXPENSES | ||
General and administrative | 2,628 | 3,135 |
Salaries and benefits | 0 | 0 |
Interest expense | 12,261 | 17,616 |
Depreciation and amortization | 53 | 179 |
Corporate allocations | 0 | 0 |
Other expenses, net | 1,503 | 996 |
Total expenses | 16,445 | 21,926 |
OTHER GAINS (LOSSES) | ||
Gain on sale of business | 0 | |
Other net fair value gains (losses) | 6,430 | (2,360) |
Gain on extinguishment | 0 | |
Other | 0 | |
Total other gains (losses) | 6,430 | (2,360) |
Income (loss) before income taxes | 17,826 | 4,148 |
Income tax expense (benefit) | 966 | 948 |
Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs | 16,860 | 3,200 |
Equity in earnings (losses) of consolidated subsidiaries and VIEs | 0 | 0 |
Net income (loss) | 16,860 | 3,200 |
Comprehensive income (loss) | 16,860 | 3,200 |
Eliminations and Reclassifications | ||
REVENUES | ||
Net servicing revenue and fees | (2,078) | (2,287) |
Net gains on sales of loans | 0 | 0 |
Net fair value gains on reverse loans and related HMBS obligations | 0 | 0 |
Interest income on loans | 0 | 0 |
Insurance revenue | (57) | (196) |
Other revenues | (17,016) | (16,414) |
Total revenues | (19,151) | (18,897) |
EXPENSES | ||
General and administrative | (14,301) | (18,587) |
Salaries and benefits | 0 | 0 |
Interest expense | (15) | (837) |
Depreciation and amortization | 0 | 0 |
Corporate allocations | 0 | 0 |
Other expenses, net | 0 | 0 |
Total expenses | (14,316) | (19,424) |
OTHER GAINS (LOSSES) | ||
Gain on sale of business | 0 | |
Other net fair value gains (losses) | 0 | 0 |
Gain on extinguishment | 0 | |
Other | 0 | |
Total other gains (losses) | 0 | 0 |
Income (loss) before income taxes | (4,835) | 527 |
Income tax expense (benefit) | (255) | 201 |
Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs | (4,580) | 326 |
Equity in earnings (losses) of consolidated subsidiaries and VIEs | (33,924) | 132,395 |
Net income (loss) | (38,504) | 132,721 |
Comprehensive income (loss) | $ (38,504) | $ 132,721 |
Separate Financial Informatio76
Separate Financial Information of Subsidiary Guarantors of Indebtedness (As Restated) - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities | ||
Cash flows provided by (used in) operating activities | $ 146,732 | $ 202,735 |
Investing activities | ||
Purchases and originations of reverse loans held for investment | (130,269) | (181,167) |
Principal payments received on reverse loans held for investment | 277,262 | 197,883 |
Principal payments received on mortgage loans held for investment | 23,981 | 22,325 |
Payments received on charged-off loans held for investment | 5,025 | 7,000 |
Payments received on receivables related to Non-Residual Trusts | 3,754 | 1,957 |
Proceeds from sales of real estate owned, net | 34,344 | 21,409 |
Purchases of premises and equipment | (469) | (11,653) |
Increase in restricted cash and cash equivalents | (1,887) | 9,048 |
Payments for acquisitions of businesses, net of cash acquired | (804) | (1,947) |
Acquisitions of servicing rights, net | (109) | (6,571) |
Proceeds from sales of servicing rights, net | 29,673 | 0 |
Proceeds from sale of business | 131,067 | 0 |
Capital contributions to subsidiaries and VIEs | 0 | 0 |
Returns of capital from subsidiaries and VIEs | 0 | 0 |
Change in due from affiliates | 0 | 0 |
Other | 9,524 | (337) |
Cash flows provided by investing activities | 381,092 | 57,947 |
Financing activities | ||
Payments on corporate debt | (21,285) | (210) |
Extinguishments and settlement of debt | 0 | (6,327) |
Proceeds from securitizations of reverse loans | 154,316 | 202,947 |
Payments on HMBS related obligations | (400,693) | (271,013) |
Issuances of servicing advance liabilities | 328,341 | 441,924 |
Payments on servicing advance liabilities | (449,636) | (469,835) |
Net change in warehouse borrowings related to mortgage loans | (116,795) | (214,510) |
Net change in warehouse borrowings related to reverse loans | 8,117 | 75,910 |
Proceeds from sales of servicing rights | 0 | 2,968 |
Payments on servicing rights related liabilities | (1,415) | (4,250) |
Payments on mortgage-backed debt | (28,619) | (25,203) |
Other debt issuance costs paid | (964) | (1,031) |
Capital contributions | 0 | 0 |
Capital distributions | 0 | 0 |
Change in due to affiliates | 0 | 0 |
Other | 13,385 | (462) |
Cash flows used in financing activities | (515,248) | (269,092) |
Net increase (decrease) in cash and cash equivalents | 12,576 | (8,410) |
Cash and cash equivalents at beginning of the period | 224,598 | 202,828 |
Cash and cash equivalents at end of the period | 237,174 | 194,418 |
Reportable Legal Entities | Parent Company | ||
Operating activities | ||
Cash flows provided by (used in) operating activities | 1,254 | (38,544) |
Investing activities | ||
Purchases and originations of reverse loans held for investment | 0 | 0 |
Principal payments received on reverse loans held for investment | 0 | 0 |
Principal payments received on mortgage loans held for investment | 326 | 266 |
Payments received on charged-off loans held for investment | 0 | 0 |
Payments received on receivables related to Non-Residual Trusts | 0 | 0 |
Proceeds from sales of real estate owned, net | 2 | (38) |
Purchases of premises and equipment | (114) | (411) |
Increase in restricted cash and cash equivalents | 0 | 9,011 |
Payments for acquisitions of businesses, net of cash acquired | 0 | 0 |
Acquisitions of servicing rights, net | 0 | 0 |
Proceeds from sales of servicing rights, net | 0 | |
Proceeds from sale of business | 0 | |
Capital contributions to subsidiaries and VIEs | (20,503) | 0 |
Returns of capital from subsidiaries and VIEs | 142,993 | 2,114 |
Change in due from affiliates | (32,639) | 33,543 |
Other | 11,501 | 82 |
Cash flows provided by investing activities | 101,566 | 44,567 |
Financing activities | ||
Payments on corporate debt | (21,285) | 0 |
Extinguishments and settlement of debt | (6,327) | |
Proceeds from securitizations of reverse loans | 0 | 0 |
Payments on HMBS related obligations | 0 | 0 |
Issuances of servicing advance liabilities | 0 | 0 |
Payments on servicing advance liabilities | 0 | 0 |
Net change in warehouse borrowings related to mortgage loans | 0 | 0 |
Net change in warehouse borrowings related to reverse loans | 0 | 0 |
Proceeds from sales of servicing rights | 0 | |
Payments on servicing rights related liabilities | 0 | 0 |
Payments on mortgage-backed debt | 0 | 0 |
Other debt issuance costs paid | 0 | 0 |
Capital contributions | 0 | 0 |
Capital distributions | 0 | 0 |
Change in due to affiliates | (81,225) | 641 |
Other | (26) | (165) |
Cash flows used in financing activities | (102,536) | (5,851) |
Net increase (decrease) in cash and cash equivalents | 284 | 172 |
Cash and cash equivalents at beginning of the period | 773 | 4,016 |
Cash and cash equivalents at end of the period | 1,057 | 4,188 |
Reportable Legal Entities | Guarantor Subsidiaries | ||
Operating activities | ||
Cash flows provided by (used in) operating activities | 9,175 | 215,307 |
Investing activities | ||
Purchases and originations of reverse loans held for investment | (130,269) | (181,167) |
Principal payments received on reverse loans held for investment | 277,262 | 197,883 |
Principal payments received on mortgage loans held for investment | 0 | 0 |
Payments received on charged-off loans held for investment | 5,025 | 7,000 |
Payments received on receivables related to Non-Residual Trusts | 0 | 0 |
Proceeds from sales of real estate owned, net | 33,227 | 20,510 |
Purchases of premises and equipment | (355) | (11,242) |
Increase in restricted cash and cash equivalents | (1,099) | 207 |
Payments for acquisitions of businesses, net of cash acquired | (804) | (1,947) |
Acquisitions of servicing rights, net | (109) | (6,571) |
Proceeds from sales of servicing rights, net | 29,673 | |
Proceeds from sale of business | 131,067 | |
Capital contributions to subsidiaries and VIEs | (2,122) | (651) |
Returns of capital from subsidiaries and VIEs | 30,252 | 670 |
Change in due from affiliates | 80,802 | (1,176) |
Other | (1,977) | (419) |
Cash flows provided by investing activities | 450,573 | 23,097 |
Financing activities | ||
Payments on corporate debt | 0 | (210) |
Extinguishments and settlement of debt | 0 | |
Proceeds from securitizations of reverse loans | 154,316 | 202,947 |
Payments on HMBS related obligations | (400,693) | (271,013) |
Issuances of servicing advance liabilities | 43,657 | 68,035 |
Payments on servicing advance liabilities | (56,644) | (76,024) |
Net change in warehouse borrowings related to mortgage loans | (116,795) | (214,510) |
Net change in warehouse borrowings related to reverse loans | 8,117 | 75,910 |
Proceeds from sales of servicing rights | 2,968 | |
Payments on servicing rights related liabilities | (1,415) | (4,250) |
Payments on mortgage-backed debt | 0 | 0 |
Other debt issuance costs paid | (890) | (1,000) |
Capital contributions | 22,243 | 0 |
Capital distributions | (144,341) | (69) |
Change in due to affiliates | 32,660 | (29,643) |
Other | 12,329 | (127) |
Cash flows used in financing activities | (447,456) | (246,986) |
Net increase (decrease) in cash and cash equivalents | 12,292 | (8,582) |
Cash and cash equivalents at beginning of the period | 221,825 | 196,812 |
Cash and cash equivalents at end of the period | 234,117 | 188,230 |
Reportable Legal Entities | Non-Guarantor Subsidiaries and VIEs | ||
Operating activities | ||
Cash flows provided by (used in) operating activities | 136,303 | 25,972 |
Investing activities | ||
Purchases and originations of reverse loans held for investment | 0 | 0 |
Principal payments received on reverse loans held for investment | 0 | 0 |
Principal payments received on mortgage loans held for investment | 23,655 | 22,059 |
Payments received on charged-off loans held for investment | 0 | 0 |
Payments received on receivables related to Non-Residual Trusts | 3,754 | 1,957 |
Proceeds from sales of real estate owned, net | 1,115 | 937 |
Purchases of premises and equipment | 0 | 0 |
Increase in restricted cash and cash equivalents | (788) | (170) |
Payments for acquisitions of businesses, net of cash acquired | 0 | 0 |
Acquisitions of servicing rights, net | 0 | 0 |
Proceeds from sales of servicing rights, net | 0 | |
Proceeds from sale of business | 0 | |
Capital contributions to subsidiaries and VIEs | 0 | 0 |
Returns of capital from subsidiaries and VIEs | 0 | 0 |
Change in due from affiliates | (4,366) | (3,196) |
Other | 0 | 0 |
Cash flows provided by investing activities | 23,370 | 21,587 |
Financing activities | ||
Payments on corporate debt | 0 | 0 |
Extinguishments and settlement of debt | 0 | |
Proceeds from securitizations of reverse loans | 0 | 0 |
Payments on HMBS related obligations | 0 | 0 |
Issuances of servicing advance liabilities | 284,684 | 373,889 |
Payments on servicing advance liabilities | (392,992) | (393,811) |
Net change in warehouse borrowings related to mortgage loans | 0 | 0 |
Net change in warehouse borrowings related to reverse loans | 0 | 0 |
Proceeds from sales of servicing rights | 0 | |
Payments on servicing rights related liabilities | 0 | 0 |
Payments on mortgage-backed debt | (28,619) | (25,203) |
Other debt issuance costs paid | (74) | (31) |
Capital contributions | 382 | 651 |
Capital distributions | (28,904) | (2,715) |
Change in due to affiliates | 4,768 | (169) |
Other | 1,082 | (170) |
Cash flows used in financing activities | (159,673) | (47,559) |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of the period | 2,000 | 2,000 |
Cash and cash equivalents at end of the period | 2,000 | 2,000 |
Eliminations and Reclassifications | ||
Operating activities | ||
Cash flows provided by (used in) operating activities | 0 | 0 |
Investing activities | ||
Purchases and originations of reverse loans held for investment | 0 | 0 |
Principal payments received on reverse loans held for investment | 0 | 0 |
Principal payments received on mortgage loans held for investment | 0 | 0 |
Payments received on charged-off loans held for investment | 0 | 0 |
Payments received on receivables related to Non-Residual Trusts | 0 | 0 |
Proceeds from sales of real estate owned, net | 0 | 0 |
Purchases of premises and equipment | 0 | 0 |
Increase in restricted cash and cash equivalents | 0 | 0 |
Payments for acquisitions of businesses, net of cash acquired | 0 | 0 |
Acquisitions of servicing rights, net | 0 | 0 |
Proceeds from sales of servicing rights, net | 0 | |
Proceeds from sale of business | 0 | |
Capital contributions to subsidiaries and VIEs | 22,625 | 651 |
Returns of capital from subsidiaries and VIEs | (173,245) | (2,784) |
Change in due from affiliates | (43,797) | (29,171) |
Other | 0 | 0 |
Cash flows provided by investing activities | (194,417) | (31,304) |
Financing activities | ||
Payments on corporate debt | 0 | 0 |
Extinguishments and settlement of debt | 0 | |
Proceeds from securitizations of reverse loans | 0 | 0 |
Payments on HMBS related obligations | 0 | 0 |
Issuances of servicing advance liabilities | 0 | 0 |
Payments on servicing advance liabilities | 0 | 0 |
Net change in warehouse borrowings related to mortgage loans | 0 | 0 |
Net change in warehouse borrowings related to reverse loans | 0 | 0 |
Proceeds from sales of servicing rights | 0 | |
Payments on servicing rights related liabilities | 0 | 0 |
Payments on mortgage-backed debt | 0 | 0 |
Other debt issuance costs paid | 0 | 0 |
Capital contributions | (22,625) | (651) |
Capital distributions | 173,245 | 2,784 |
Change in due to affiliates | 43,797 | 29,171 |
Other | 0 | 0 |
Cash flows used in financing activities | 194,417 | 31,304 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of the period | 0 | 0 |
Cash and cash equivalents at end of the period | $ 0 | $ 0 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Corporate Joint Venture | Investment Advisory And Management Services Provided To WCO | |||
Related Party Transaction [Line Items] | |||
Fees earned for services provided | $ 0.1 | $ 0.4 | |
Receivable related to fees earned | 1.5 | $ 0.9 | |
Walter Capital Opportunity Corp. | |||
Related Party Transaction [Line Items] | |||
Investment in WCO | 8 | $ 19.4 | |
Income (losses) relating to investment in WCO | 0.1 | (0.5) | |
Dividend received | $ 11.5 | $ 1 |
Related Party Transactions - Su
Related Party Transactions - Summary of Assets and Liabilities that Relate to WCO (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity, Not Primary Beneficiary | Walter Capital Opportunity Corp. | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Size of VIE | $ 24,441 | $ 194,556 |
Size of VIE defined | The size of the VIE is deemed to be WCO's net assets. | |
Corporate Joint Venture | Transactions With Walter Capital Opportunity Corp | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Net Liabilities | $ 14,682 | 26,422 |
Corporate Joint Venture | Transactions With Walter Capital Opportunity Corp | Servicer And Protective Advances, Net | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Assets Recorded on the Consolidated Balance Sheets | 5,114 | 6,980 |
Corporate Joint Venture | Transactions With Walter Capital Opportunity Corp | Receivables, Net | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Assets Recorded on the Consolidated Balance Sheets | 1,570 | 1,392 |
Corporate Joint Venture | Transactions With Walter Capital Opportunity Corp | Other Assets | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Assets Recorded on the Consolidated Balance Sheets | 7,998 | 19,403 |
Corporate Joint Venture | Transactions With Walter Capital Opportunity Corp | Payables and Accrued Liabilities | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Liabilities Recorded on the Consolidated Balance Sheets | $ 0 | $ (1,353) |