Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 18, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | DITECH HOLDING CORPORATION | |
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 | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,626,508 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 216,806 | $ 285,969 |
Restricted cash and cash equivalents | 92,389 | 112,826 |
Residential loans at amortized cost, net | 467,690 | 985,454 |
Residential loans at fair value | 10,959,582 | 10,725,232 |
Receivables, net | 118,045 | 124,344 |
Servicer and protective advances, net | 650,423 | 813,433 |
Servicing rights, net | 734,696 | 773,251 |
Goodwill | 0 | 47,747 |
Intangible assets, net | 41,170 | 8,733 |
Premises and equipment, net | 79,167 | 50,213 |
Deferred tax assets, net | 1,213 | 1,400 |
Other assets | 367,517 | 235,595 |
Total assets | 13,728,698 | 14,164,197 |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||
Payables and accrued liabilities | 950,430 | 994,493 |
Payables and accrued liabilities | 950,430 | 1,020,300 |
Servicer payables | 113,679 | 116,779 |
Servicing advance liabilities | 364,881 | 483,462 |
Warehouse borrowings | 1,389,648 | 1,085,198 |
Corporate debt | 1,263,635 | 1,214,663 |
Mortgage-backed debt | 717,188 | 735,882 |
HMBS related obligations at fair value | 8,798,059 | 9,175,128 |
Deferred tax liabilities, net | 932 | 848 |
Total liabilities not subject to compromise | 13,598,452 | 13,806,453 |
Liabilities subject to compromise | 0 | 806,937 |
Total liabilities | 13,598,452 | 14,613,390 |
Commitments and contingencies | ||
Stockholders' equity (deficit): | ||
Preferred stock | 1 | 0 |
Common stock | 43 | 374 |
Additional paid-in capital | 184,344 | 598,193 |
Accumulated deficit | (54,149) | (1,048,817) |
Accumulated other comprehensive income | 7 | 1,057 |
Total stockholders' equity (deficit) | 130,246 | (449,193) |
Total liabilities and stockholders' equity (deficit) | 13,728,698 | 14,164,197 |
VIE Primary Beneficiary [Member] | ||
ASSETS | ||
Restricted cash and cash equivalents | 30,311 | 44,376 |
Residential loans at amortized cost, net | 0 | 424,420 |
Residential loans at fair value | 585,637 | 301,435 |
Receivables, net | 4,853 | 5,824 |
Servicer and protective advances, net | 345,922 | 446,799 |
Other assets | 165,119 | 39,837 |
Total assets | 1,131,842 | 1,262,691 |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||
Payables and accrued liabilities | 50,827 | 3,086 |
Servicing advance liabilities | 315,325 | 444,563 |
Mortgage-backed debt | 717,188 | 735,882 |
Total liabilities | $ 1,083,340 | $ 1,183,531 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Allowance for loan losses | $ 706 | $ 6,347 |
Receivables at fair value | 3,484 | 5,608 |
Allowance for uncollectible advances | 3,259 | 164,225 |
Servicing rights at fair value | 675,176 | 714,774 |
Other assets at fair value | 30,736 | 29,394 |
Payables and accrued liabilities at fair value | 3,406 | 1,282 |
Mortgage-backed debt at fair value | $ 717,188 | $ 348,682 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 99,931 | 0 |
Preferred stock, shares outstanding | 99,931 | 0 |
Preferred stock, liquidation preference | $ 100,976 | |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 4,260,433 | 37,373,616 |
Common stock, shares outstanding, shares | 4,260,433 | 37,373,616 |
VIE Primary Beneficiary [Member] | ||
Mortgage-backed debt at fair value | $ 717,188 | $ 348,682 |
Convertible Preferred Stock [Member] | ||
Preferred stock, shares authorized | 100,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
REVENUES | |||
Net servicing revenue and fees | $ 128,685 | $ 48,355 | $ 113,187 |
Net gains on sales of loans | 27,963 | 28,518 | 74,356 |
Net fair value gains on reverse loans and related HMBS obligations | 10,576 | 889 | 14,702 |
Interest income on loans | 3,387 | 376 | 10,980 |
Insurance revenue | 0 | 0 | 3,963 |
Other revenues | 16,662 | 13,077 | 28,097 |
Total revenues | 187,273 | 91,215 | 245,285 |
EXPENSES | |||
General and administrative | 50,520 | 54,525 | 131,627 |
Salaries and benefits | 40,408 | 46,782 | 107,957 |
Interest expense | 38,756 | 29,896 | 60,410 |
Goodwill and intangible assets impairment | 0 | 9,960 | 0 |
Depreciation and amortization | 3,810 | 4,694 | 10,932 |
Other expenses, net | 229 | (198) | 2,783 |
Total expenses | 133,723 | 145,659 | 313,709 |
OTHER GAINS (LOSSES) | |||
Reorganization items and fresh start accounting adjustments | 464,563 | (110) | 0 |
Net losses on extinguishment of debt | (864) | 0 | 0 |
Other net fair value gains | 3,740 | 594 | 5,083 |
Gain on sale of business | 0 | 0 | 67,727 |
Total other gains | 467,439 | 484 | 72,810 |
Income (loss) before income taxes | 520,989 | (53,960) | 4,386 |
Income tax expense (benefit) | (18) | 189 | (122) |
Net income (loss) | 521,007 | (54,149) | 4,508 |
Comprehensive income (loss) | $ 521,007 | $ (54,142) | $ 4,491 |
Basic earnings (loss) per common and common equivalent share | $ 13.94 | $ (12.73) | $ 0.12 |
Diluted earnings (loss) per common and common equivalent share | $ 13.92 | $ (12.73) | $ 0.12 |
Weighted-average common and common equivalent shares outstanding — basic | 37,374 | 4,253 | 36,412 |
Weighted-average common and common equivalent shares outstanding — diluted | 37,424 | 4,253 | 36,812 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income |
Stockholders' Equity (Deficit) [Roll Forward] | ||||||
Adoption of ASC 610 | $ (40,670) | $ (40,670) | ||||
Balance at Dec. 31, 2017 | $ (449,193) | $ 0 | $ 374 | $ 598,193 | (1,048,817) | $ 1,057 |
Balance, shares at Dec. 31, 2017 | 0 | 0 | ||||
Balance, shares at Dec. 31, 2017 | 37,373,616 | 37,373,616 | ||||
Stockholders' Equity (Deficit) [Roll Forward] | ||||||
Net income (loss) | $ 521,007 | 521,007 | ||||
Share-based compensation | 538 | 538 | ||||
Fresh start and reorganization adjustments | 152,706 | $ 1 | $ (331) | (414,387) | 568,480 | (1,057) |
Fresh start and reorganization adjustments, shares | 100,000 | (33,121,116) | ||||
Balance at Feb. 09, 2018 | 184,388 | $ 1 | $ 43 | 184,344 | 0 | 0 |
Balance, shares at Feb. 09, 2018 | 100,000 | |||||
Balance, shares at Feb. 09, 2018 | 4,252,500 | |||||
Stockholders' Equity (Deficit) [Roll Forward] | ||||||
Net income (loss) | (54,149) | (54,149) | ||||
Other comprehensive income, net of tax | 7 | 7 | ||||
Conversion of preferred stock to common stock | 0 | |||||
Conversion of preferred stock to common stock, shares | (69) | 7,933 | ||||
Balance at Mar. 31, 2018 | $ 130,246 | $ 1 | $ 43 | $ 184,344 | $ (54,149) | $ 7 |
Balance, shares at Mar. 31, 2018 | 99,931 | 99,931 | ||||
Balance, shares at Mar. 31, 2018 | 4,260,433 | 4,260,433 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities | |||
Net income (loss) | $ 521,007 | $ (54,149) | $ 4,508 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Net fair value gains on reverse loans and related HMBS obligations | (10,576) | (889) | (14,702) |
Amortization of servicing rights | 2,187 | 2,488 | 5,025 |
Change in fair value of servicing rights | (64,663) | 20,343 | 53,516 |
Change in fair value of charged-off loans | (5,746) | (265) | (10,133) |
Other net fair value gains | (3,055) | (1,180) | (3,363) |
Accretion of discounts on residential loans and advances | (325) | (29) | (928) |
Accretion of discounts on debt and amortization of deferred debt issuance costs | 19,831 | 3,468 | 7,740 |
Provision for uncollectible advances | 306 | 2,611 | 9,666 |
Depreciation and amortization of premises and equipment and intangible assets | 3,810 | 4,694 | 10,932 |
Provision (benefit) for deferred income taxes | 24 | 246 | (330) |
Share-based compensation | 538 | 0 | 865 |
Purchases and originations of residential loans held for sale | (1,207,155) | (1,647,001) | (5,187,091) |
Proceeds from sales of and payments on residential loans held for sale | 1,428,953 | 1,332,307 | 5,301,187 |
Net gains on sales of loans | (27,963) | (28,518) | (74,356) |
Gain on sale of business | 0 | 0 | (67,727) |
Goodwill and intangible assets impairment | 0 | 9,960 | 0 |
Non-cash reorganization items | (403,174) | 0 | 0 |
Non-cash fresh start accounting adjustments | (77,229) | 0 | 0 |
Other | 987 | 223 | 2,506 |
Changes in assets and liabilities | |||
Decrease (increase) in receivables | (27,855) | 34,242 | 8,812 |
Decrease in servicer and protective advances | 64,010 | 71,340 | 180,432 |
Decrease (increase) in other assets | (27,485) | 1,123 | (7,418) |
Increase (decrease) in payables and accrued liabilities | 28,780 | (35,883) | (82,751) |
Increase (decrease) in servicer payables | (7,375) | 4,275 | (8,273) |
Cash flows provided by (used in) operating activities | 207,832 | (280,594) | 128,117 |
Investing activities | |||
Purchases and originations of reverse loans held for investment | (39,937) | (30,962) | (130,269) |
Principal payments received on reverse loans held for investment | 144,489 | 155,667 | 277,262 |
Principal payments received on mortgage loans held for investment | 8,880 | 9,864 | 23,981 |
Payments received on charged-off loans held for investment | 1,247 | 2,492 | 5,025 |
Payments received on receivables related to Non-Residual Trusts | 1,727 | 833 | 3,754 |
Proceeds from sales of real estate owned, net | 17,862 | 26,446 | 34,344 |
Purchases of premises and equipment | (268) | (769) | (469) |
Proceeds from sales of servicing rights, net | 94,994 | 11,836 | 29,673 |
Proceeds from sale of business | 0 | 0 | 131,067 |
Other | (1,563) | (497) | 8,611 |
Cash flows provided by investing activities | 227,431 | 174,910 | 382,979 |
Financing activities | |||
Payments on corporate debt | (110,590) | (7,500) | (21,285) |
Proceeds from securitizations of reverse loans | 27,881 | 52,983 | 154,316 |
Payments on HMBS related obligations | (310,000) | (212,521) | (400,693) |
Issuances of servicing advance liabilities | 5,444 | 350,873 | 328,341 |
Payments on servicing advance liabilities | (101,093) | (373,806) | (449,636) |
Net change in warehouse borrowings related to mortgage loans | (190,104) | 320,327 | (116,795) |
Net change in warehouse borrowings related to reverse loans | 112,216 | 62,011 | 8,117 |
Payments on mortgage-backed debt | (8,876) | (13,716) | (28,619) |
Other debt issuance costs paid | (10,472) | (12,236) | (964) |
Other | 0 | 0 | (1,441) |
Cash flows provided by (used in) financing activities | (585,594) | 166,415 | (528,659) |
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | (150,331) | 60,731 | (17,563) |
Cash and cash equivalents and restricted cash and cash equivalents at beginning of the period | 398,795 | 248,464 | 429,061 |
Cash and cash equivalents and restricted cash and cash equivalents at end of the period | 248,464 | 309,195 | 411,498 |
Supplemental Disclosures of Cash Flow Information | |||
Cash paid for interest | 17,734 | 31,657 | 46,903 |
Cash received for taxes | $ (244) | $ (285) | $ (5,591) |
Business and Basis of Presentat
Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation Disclosure | Business and Basis of Presentation Ditech Holding Corporation and its subsidiaries, or the Company (formerly Walter Investment Management Corp.), is an independent servicer and originator of mortgage loans and servicer of reverse mortgage loans. 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 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. The Company also operates two complementary businesses: asset receivables management and real estate owned property management and disposition. As a result of Walter Investment Management Corp.'s emergence from bankruptcy under Chapter 11 of the Bankruptcy Code as discussed further below, on February 9, 2018 the Company changed its name to Ditech Holding Corporation. The terms “Ditech Holding” and the “Company,” as used throughout this report refer to Ditech Holding Corporation (Successor) and/or Walter Investment Management Corp. (Predecessor) and its consolidated subsidiaries. The Company operates throughout the U.S. through three reportable segments, Servicing, Originations, and Reverse Mortgage. Refer to Note 22 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. Fresh Start Accounting The Company met the conditions to qualify under GAAP for fresh start accounting, and accordingly adopted fresh start accounting effective February 10, 2018 . The actual impact of fresh start accounting at emergence on February 9, 2018 is shown in Note 3 . The financial statements as of February 10, 2018 and for subsequent periods report the results of the Successor with no beginning retained earnings. Any presentation of the Successor represents the financial position and results of operations of the Successor and is not comparable to prior periods. Restatement of Previously Issued Consolidated Financial Statements On August 9, 2017, the Company amended its Annual Report on Form 10-K for the year ended December 31, 2016 and separately amended its Quarterly Reports on Form 10-Q for the quarterly periods ended June 30, 2016, September 30, 2016, and March 31, 2017, in each case, to reflect a correction to the net deferred tax assets balance. The restatement of the Company's previously issued consolidated financial statements resulted 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 prior periods, 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 revised its calculation to reflect the removal of the duplicative amounts, and reevaluated all sources of estimated future taxable income on 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 restated balances are reflected in these Consolidated Financial Statements. 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. 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 for the year ended December 31, 2017 . 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 revenues 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. Changes in Presentation Certain prior year amounts have been reclassified to conform to current year presentation. Revenue Recognition 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. This guidance was effective for the Company beginning January 1, 2018. The Company adopted the guidance using the modified retrospective method. The Company has reviewed the scope of the guidance and monitored the determinations of the FASB Transition Resource Group and concluded that 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 remained unchanged. The Company has determined that certain immaterial revenue streams are within the scope of the guidance; however, the guidance did not impact current revenue recognition patterns for these in scope revenue streams and contracts. Accordingly, the adoption of this guidance did not have a significant impact on the consolidated financial statements. Recent Accounting Guidance 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 was effective for the Company beginning January 1, 2018. The adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. 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 continues to evaluate 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. Based on the Company's current methodologies for accounting for financial instruments, the adoption of this guidance is not expected to 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 and composition 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 was effective for the Company beginning January 1, 2018. The adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. 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 was effective for the Company beginning January 1, 2018. The adoption of this guidance did not have a significant impact on the consolidated financial statements. 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 and ending cash amounts. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and cash equivalents in the statement of cash flows. This guidance was effective for the Company beginning January 1, 2018, and was applied retrospectively. The adoption impacted the presentation of the cash flows, but did not otherwise have a material impact on the consolidated results of operations or financial condition. For the three months ended March 31, 2017, cash flows provided by operating activities decreased by $18.6 million , cash flows provided by investing activities increased by $1.9 million , and cash flows used in financing activities increased by $13.4 million . 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 was effective for the Company beginning January 1, 2018. The Company will apply this guidance to its assessment of applicable transactions, such as acquisitions and disposals of assets or businesses, consummated after the adoption date. The adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. 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 has adopted this guidance to impairment tests effective January 1, 2018. 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 was effective for the Company beginning January 1, 2018. The adoption of this guidance resulted in changes to the statement of financial position, including (i) a reduction of $115.0 million in residential loans at amortized cost, net, (ii) an increase of $123.1 million in other assets, (iii) an increase of $40.7 million in accumulated deficit and (iv) an increase of $48.7 million in accrued liabilities under the modified retrospective adoption method. Additionally, the pattern of recognition of certain interest payments will change for properties where the Company finances sales of real estate owned and the Company has determined that collection of substantially all consideration is not yet probable. In May 2017, the FASB issued an accounting standards update that amends the guidance on share-based compensation. The update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This guidance was effective for the Company beginning January 1, 2018. The new guidance was applied prospectively to awards modified on or after the adoption date. The adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. In March 2018, the FASB issued an accounting standards update that provides guidance related to accounting for the income tax effects of the Tax Act. This guidance provides clarification to address situations where a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting under GAAP for certain income tax effects of the Tax Act. To the extent that a registrant's accounting for certain income tax effects of the Tax Act is incomplete, a reasonable estimate may be determined for those effects in the first reporting period in which the registrant was able to determine such reasonable estimate. A measurement period of one year from the enactment date of the Tax Act is provided whereby a registrant may adjust such provisional amounts. If a provisional amount cannot be determined in the initial period of enactment, the registrant may continue to account for taxes in accordance with tax laws that were in effect immediately prior to the Tax Act enactment date until such point in time that a reasonable estimate can be made. The Company's preliminary estimate of the Tax Act and the remeasurement of deferred tax assets and liabilities is subject to the finalization of management’s analysis related to certain matters, such as developing interpretations of the provisions of the Tax Act, changes to certain estimates and the filing of its tax returns. U.S. Treasury regulations, administrative interpretations or court decisions interpreting the Tax Act may require further adjustments and changes in the Company's estimates. The final determination of the Tax Act and the remeasurement of the Company's deferred assets and liabilities will be completed as additional information becomes available, but no later than one year from the enactment of the Tax Act. |
Liquidity
Liquidity | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity Disclosure | Liquidity In the normal course of business, the Company utilizes mortgage loan servicing advance facilities and master repurchase agreements with various counterparties to finance, on a short-term basis, mortgage loan related servicing advances, the repurchase of HECMs out of Ginnie Mae securitization pools, and funding of newly originated mortgage loans. Each of these facilities is typically subject to annual renewal and contain provisions, that in certain circumstances, could prevent the Company from utilizing any unused capacity under such facility and/or that could accelerate the repayment of amounts under such facility. The Company’s ability to fund its operating businesses is a significant factor that affects its liquidity and its ability to operate and grow its businesses. The Company’s subsidiaries are dependent on the ability to secure these types of arrangements on acceptable terms and to renew, replace or resize existing financing facilities as they expire. Continued growth in Ginnie Mae buyout loan activity will require the Company to continue to seek additional Ginnie Mae buyout financing or to otherwise sell or securitize Ginnie Mae buyout assets. Certain of these and other financing arrangements contain restrictions, covenants, and representations and warranties that, among other conditions, require the Company to satisfy specified financial covenants and asset eligibility. In the past, the Company has obtained waivers or amendments from certain lenders in order to maintain compliance with certain covenants and other terms of the financing facilities. If the Company fails to renew or to comply with the terms of a facility that results in an event of default or breach of covenant without obtaining a waiver or amendment, the Company may be subject to cross default provisions with other indebtedness, termination of future funding, enforcement of liens against assets securing the respective facility, acceleration of outstanding obligations, or other adverse actions. The Company intends to renew, replace, or extend its facilities and may seek waivers or amendments in the future, if necessary. The Company has historical experience in renewing, replacing and extending these facilities and obtaining waivers or amendments as needed. There can be no assurance that these or other actions will be successful. Recent Actions The following actions have been completed or are currently in process: • As discussed in Note 3 , the Company emerged from the Chapter 11 Case on February 9, 2018, resulting in approximately $807 million of corporate debt and accrued interest being extinguished. Contemporaneously, the Company issued $250 million aggregate principal amount of Second Lien Notes. • On March 29, 2018, the Company entered into an agreement with the Term Lenders to waive certain covenants through 2019 in exchange for an additional incremental minimum paydown of no less than $30 million from March 29, 2018 to December 31, 2018. • On April 23, 2018, the Company entered into an additional master repurchase agreement that provides up to $212.0 million in committed capacity to fund the repurchase of certain HECMs and real estate owned from Ginnie Mae securitization pools for a period of one year. • The Company is currently working with new lenders to increase and diversify financing capacity for reverse Ginnie Mae buyout loans and new mortgage loan originations in an amount sufficient to provide adequate financing capacity. During the first quarter of 2018, the Company engaged an advisor to help market and sell a pool of defaulted reverse Ginnie Mae buyout loans that are owned by the Company and financed under its existing financing facilities. • In May 2018, Ditech Financial and RMS amended their respective master repurchase agreements, as well as the DAAT Facility and DPATII Facility, to provide for an extension to the deadline to deliver unaudited quarterly and monthly financial statements in respect to Ditech Financial, RMS and Ditech Holding for the quarter ended March 31, 2018 and the month ended April 30, 2018. As a result of such amendments, Ditech Financial and RMS are permitted to deliver the relevant unaudited quarterly financial statements for the quarter ended March 31, 2018 within 73 days (formerly 45 days under the master repurchase agreements and 60 days under the DAAT Facility and DPATII Facility) and the relevant unaudited monthly financial statements for the month ended April 30, 2018 within 60 days (formerly 30 days under the Ditech Financial Exit Master Repurchase Agreement and 45 days under RMS's master repurchase agreements) before triggering a default or event of default or otherwise constituting a breach of any representation, warranty or covenant under its master repurchase agreements or the DAAT Facility and DPATII Facility. Additionally, the profitability covenants included in the DAAT Facility, the DPATII Facility and the Ditech Financial Exit Master Repurchase Agreement were amended to allow for a net loss under such covenants for the quarter ending June 30, 2018, as applicable to the terms of each agreement. Strategic plans designed to continue to improve the Company’s liquidity include the following: • The Company’s leadership team continues the transformation of the operating businesses by evaluating and implementing further cost reductions, operational enhancements and streamlining of the businesses and reduction of leverage. • For the Servicing business, the Company continues to sell servicing rights to third parties on a selective basis while continuing to grow the subservicing business with third-party servicing rights owners. • Disposition of assets that are not necessary to support the Company’s business strategies including the sale or securitization of reverse Ginnie Mae buyout loans. |
Emergence from Reorganization P
Emergence from Reorganization Proceedings | 3 Months Ended |
Mar. 31, 2018 | |
Reorganizations [Abstract] | |
Emergence from Reorganization Proceedings Disclosure | Emergence from Reorganization Proceedings On November 30, 2017, Walter Investment Management Corp. filed a Bankruptcy Petition under the Bankruptcy Code to pursue the Prepackaged Plan announced on November 6, 2017. On January 17, 2018, the Bankruptcy Court approved the amended Prepackaged Plan and on January 18, 2018, entered a confirmation order approving the Prepackaged Plan. On February 9, 2018, the Prepackaged Plan became effective pursuant to its terms and Walter Investment Management Corp. emerged from the Chapter 11 Case. The Company continued to operate throughout the Chapter 11 Case and upon emergence changed its name to Ditech Holding Corporation. From and after effectiveness of the Prepackaged Plan, the Company has continued, in its previous organizational form, to carry out its business. Reorganization Items The Company's reorganization items consists of the following (in thousands): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 Gain on cancellation of corporate debt $ — $ 556,937 Less: issuance of new equity to Convertible and Senior Noteholders — 153,764 Net gain on cancellation of corporate debt — 403,173 Less: Legal and professional fees (1) — 12,461 Other expenses 110 3,378 Total expenses 110 15,839 Total reorganization items (110 ) 387,334 Fresh start accounting adjustments — 77,229 Reorganization items and fresh start accounting adjustments $ (110 ) $ 464,563 __________ (1) Professional fees are directly related to the reorganization. During the period from February 10, 2018 through March 31, 2018 and the period from January 1, 2018 through February 9, 2018 , the Company made cash payments for reorganization items of less than $0.1 million and $5.7 million , respectively. Liabilities Subject to Compromise Liabilities subject to compromise included unsecured or under-secured liabilities incurred prior to the Effective Date. These liabilities represented the amounts expected to be allowed on known or potential claims to be resolved through the Chapter 11 Case and subject to future adjustments based on negotiated settlements with claimants, actions of the Bankruptcy Court, rejection of executory contracts, proofs of claims or other events. Additionally, liabilities subject to compromise also include certain items that may be assumed under a plan of reorganization, and as such, may be subsequently reclassified to liabilities not subject to compromise. Generally, actions to enforce or otherwise effect payment of pre-petition liabilities are subject to the automatic stay or an approved motion of the Bankruptcy Court. Liabilities subject to compromise consists of the following (in thousands): Predecessor December 31, 2017 Senior Notes $ 538,662 Convertible Notes 242,468 Accrued interest (1) 25,807 Total liabilities subject to compromise $ 806,937 __________ (1) Represents accrued interest on the Senior Notes and Convertible Notes as of November 30, 2017, the date the Company filed the Bankruptcy Petition. As interest on the Senior Notes and Convertible Notes subsequent to November 30, 2017 was not expected to be an allowed claim, this amount excludes interest that would have been accrued subsequent to November 30, 2017. For the period from January 1, 2018 through February 9, 2018, interest expense reported on the consolidated statement of comprehensive income (loss) excludes $5.9 million of interest on the Senior Notes and Convertible Notes that otherwise would have been accrued for the period. On the Effective Date, all of the Company's obligations under the previously outstanding Convertible Notes and Senior Notes listed above were extinguished. Previously outstanding debt interests were exchanged for Second Lien Notes, common stock, Mandatorily Convertible Preferred Stock, Series A Warrants and/or Series B Warrants, as applicable. Fresh Start Accounting The Company met the conditions to qualify under GAAP for fresh start accounting, and accordingly, adopted fresh start accounting effective February 10, 2018 . The actual impact at emergence on February 9, 2018 is shown below. The financial statements as of February 10, 2018 and for subsequent periods report the results of the Successor with no beginning retained earnings. Any presentation of the Successor represents the Company's financial position and results of operations post-emergence and is not comparable to prior periods. Upon the application of fresh start accounting, the Company allocated the reorganization value to its individual assets based on their estimated fair values. Reorganization value represents the fair value of the Successor’s assets before considering liabilities, and the excess of reorganization value over the fair value of identified tangible and intangible assets is reported separately on the consolidated balance sheet in the Successor periods as goodwill. The Company, with the assistance of external valuation specialists, estimated the enterprise value of the Company upon emergence from the Chapter 11 Case to be approximately $1.4 billion to $1.5 billion . Enterprise value is defined as the total invested capital, which includes cash and cash equivalents. The estimate is based on the aggregate fair value of total equity of the Company as approved by the Bankruptcy Court and the aggregate fair value of total debt of the Company. The equity of the Company consists of its publicly-traded common stock, Mandatorily Convertible Preferred Stock, Series A Warrants, and Series B Warrants. The debt of the Company consists of a 2018 Credit Agreement and Second Lien Notes Indenture. In determining the value of total equity, the Company relied on the publicly-traded common stock price as of the time of emergence and the following 30 days, which was considered a level one input, and used a Monte-Carlo simulation to solve for the aggregate equity value across all classes of equity. A Monte-Carlo simulation is an analytical method used to estimate value by performing a large number of simulations or trial runs and thereby determining a value based on the possible outcomes from these trial runs. With the Monte-Carlo simulation, the Company was able to consider the rights and features of each of the equity classes and estimate a total equity value, which resulted in a common stock price equivalent to the publicly-traded price as of the time of emergence. The primary assumptions used in the simulation were risk-free rate, volatility, and terms consistent with the rights and features of the various equity classes. In estimating the fair value of total debt, a synthetic credit rating analysis was performed based on the underlying financial metrics of the Company to estimate the nonperformance risk and determine appropriate market spreads for each debt security. With the resulting credit rating, market yields were observed for various indices with similar credit ratings, as well as consideration of similar rated bonds, with similar maturity dates. The range of implied credit spreads considered in the valuations were 6.0% to 8.0% and the range of implied yields considered in the valuations were 13.5% to 15.5% . Pursuant to fresh start accounting, the Company allocated the determined reorganization value to the Successor Company’s assets at emergence as follows (in thousands): Successor February 10, 2018 Enterprise value $ 1,464,795 Plus: fair value of liabilities 12,137,344 Reorganization value 13,602,139 Less: Fair value of tangible assets 13,508,179 Fair value of developed technology 41,000 Fair value of identifiable intangible assets 44,000 Goodwill $ 8,960 Upon the adoption of fresh start accounting, the Successor adopted the majority of the significant accounting policies of the Predecessor. The most significant change in accounting policy relates to the accounting for the Residual Trusts, which were formerly recorded at amortized cost and are now adjusted to fair value on a recurring basis. The adjustments set forth in the following table at February 9, 2018 reflect the effect of the consummation of the transactions contemplated by the Prepackaged Plan (reflected in the column “Reorganization Adjustments”) as well as fair value adjustments as a result of the adoption of fresh start accounting (reflected in the column “Fresh Start Adjustments”) (in thousands). Predecessor Reorganization Adjustments Fresh Start Adjustments Successor ASSETS Cash and cash equivalents $ 182,462 $ (39,039 ) (a) $ — $ 143,423 Restricted cash and cash equivalents 105,041 — — 105,041 Residential loans at amortized cost, net 787,860 — (317,189 ) (c) 470,671 Residential loans at fair value 10,423,633 — 304,051 (c) 10,727,684 Receivables, net 151,892 — (1,740 ) (d) 150,152 Servicer and protective advances, net 748,952 — (24,367 ) (e) 724,585 Servicing rights, net 744,724 — 5,432 (f) 750,156 Goodwill 47,747 — (38,787 ) (g) 8,960 Intangible assets, net 8,532 — 35,468 (h) 44,000 Premises and equipment, net 46,873 — 33,739 (i) 80,612 Deferred tax assets, net 1,273 44 (b) — 1,317 Other assets 392,205 — 3,333 (j) 395,538 Total assets $ 13,641,194 $ (38,995 ) $ (60 ) $ 13,602,139 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Payables and accrued expenses $ 993,805 $ (1,540 ) (a) $ (7,444 ) (k) $ 984,821 Servicer payables 109,404 — — 109,404 Servicing advance liabilities 387,813 — — 387,813 Warehouse borrowings 1,007,310 — — 1,007,310 Corporate debt 1,142,941 212,500 (a)(b) (75,034 ) (l) 1,280,407 Mortgage-backed debt 727,909 — 6,246 (m) 734,155 HMBS related obligations at fair value 8,913,052 — — 8,913,052 Deferred tax liabilities, net 866 (77 ) (b) — 789 Total liabilities not subject to compromise 13,283,100 210,883 (76,232 ) 13,417,751 Liabilities subject to compromise 806,937 (806,937 ) (b) — — Total liabilities 14,090,037 (596,054 ) (76,232 ) 13,417,751 Preferred stock — 1 (b) — 1 Common stock 374 (331 ) (b) — 43 Additional paid-in capital 598,731 (414,387 ) (b) — 184,344 Accumulated deficit (1,049,005 ) 971,776 (b) 77,229 (b) — Accumulated other comprehensive income 1,057 — (1,057 ) (n) — Total stockholders' equity (deficit) (448,843 ) 557,059 76,172 184,388 Total liabilities and stockholders' equity (deficit) $ 13,641,194 $ (38,995 ) $ (60 ) $ 13,602,139 __________ Reorganization Adjustments: (a) Represents Effective Date term loan payment, inclusive of payment of interest accrued. (b) On the Effective Date, all of the Company's obligations under the previously outstanding Convertible Notes and Senior Notes listed above were extinguished. Previously outstanding debt interests were exchanged for Second Lien Notes, common stock, Mandatorily Convertible Preferred Stock, Series A Warrants and/or Series B Warrants. Accordingly: (i) new Second Lien Notes and Warrants are recorded, (ii) Liabilities subject to compromise was eliminated, (iii) Predecessor common stock, additional paid in capital, retained deficit, and accumulated other comprehensive income are set to zero, and (iv) Successor common stock, additional paid in capital, and preferred stock is recorded. The resulting total stockholders' equity balance of the Successor of $184.4 million represents the estimated fair value of total stockholders' equity at the Effective Date as determined with the assistance of an independent valuation specialist. Fresh Start Accounting Adjustments: (c) A successor emerging entity applying fresh start accounting upon emergence from bankruptcy may select new accounting policies upon emergence from bankruptcy protection. Prior to the Effective Date, loans of Residual Trusts were carried at amortized cost. In connection with fresh start reporting, the Company made an election to record loans of the Residual Trusts at fair value on a recurring basis. Accordingly, adjustments to residential loans carried at amortized cost, net and residential loans at fair value represent: (i) reclassification of $317.2 million loans of the Residual Trusts from residential loans carried at amortized cost, net to residential loans at fair value and (ii) a $13.1 million reduction of residential loans at fair value to record such Residual Trusts to fair value. (d) Represents adjustment to decrease the carrying value of holdback receivables carried at amortized cost by $1.7 million to reflect the estimated fair value based on the net present value of expected cash flows. Other remaining receivables, net are short-term in nature and, as a result, carrying value approximates fair value. (e) Represents adjustment to reflect estimated fair value based on the net present value of expected cash flows. (f) Represents adjustment to increase the carrying value of servicing rights carried at amortized cost to reflect estimated fair value. (g) The goodwill of the Predecessor has been eliminated and the fair market value of the assets in excess of the reorganization value has been allocated to assets and liabilities as shown above. (h) Represents adjustment to record intangible assets. The fair value of intangible assets was estimated under the relief-from-royalty and lost profits methods. Resulting intangible assets at the Effective Date are comprised of institutional and customer relationships of $24.0 million and trade names of $20.0 million. Refer to Note 11 for additional information. (i) Represents adjustment to increase the carrying value of premises and equipment, net to estimated fair value, reflecting the implied value of internally developed technology. The fair value of internally developed technology was estimated using the relief-from-royalty approach. (j) Represents adjustment to (i) increase the carrying value of real estate owned, net carried at the lower of cost or net realizable value by $5.6 million to estimated fair value and to (ii) eliminate previously existing unamortized deferred debt issuance costs of $2.3 million associated with servicing advance liabilities with line-of-credit arrangements and the 2013 Revolver. The Company had previously elected and disclosed that deferred debt issuance costs associated with revolving facilities were recorded in other assets on the consolidated balance sheets. (k) Represents adjustment to remove liabilities not intended to cash settle, primarily related to liabilities in connection with lease obligations. (l) Represents adjustment to decrease the carrying value of the 2013 Term Loan from amortized cost, net to estimated fair value. The reduction includes the elimination of previous unamortized issuance discounts and unamortized debt issuance costs prior to recording the 2013 Term Loan at estimated fair value. Additionally, represents adjustment of $60.5 million to decrease the carrying value of the Second Lien Notes issued at par value in connection with the Prepackaged Plan to estimated fair value. (m) Represents adjustment to increase the carrying value of mortgage back debt associated with the Residual Trusts, carried at amortized cost, net of discounts and deferred debt issuance costs to estimated fair value. (n) Represents elimination of other comprehensive income on available for sale investments and other post-retirement benefits at the Effective Date. |
Transactions with NRM
Transactions with NRM | 3 Months Ended |
Mar. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Transactions With NRM Disclosure | Transactions with NRM NRM Flow and Bulk Agreement On August 8, 2016, Ditech Financial and NRM executed the NRM Flow and Bulk Agreement whereby Ditech Financial agreed to sell to NRM all of Ditech Financial’s right, title and interest in mortgage servicing rights with respect to a pool of mortgage loans, with subservicing retained. The NRM Flow and Bulk Agreement provides that, from time to time, Ditech Financial may sell additional MSR to NRM in bulk or as originated or acquired on a flow basis, subject in each case to the parties agreeing on price and certain other terms. On January 17, 2018, the Company agreed to sell to NRM MSR relating to mortgage loans having an aggregate unpaid principal balance of approximately $11.3 billion as of such sale date, with subservicing retained, and received approximately $90.4 million in cash proceeds from NRM as partial consideration for this MSR sale. The Company used 80% of such cash proceeds to repay borrowings under the 2013 Credit Agreement and used the remaining cash proceeds for general corporate purposes. Since entering into the NRM Flow and Bulk Agreement and through March 31, 2018, in various bulk transactions under the NRM Flow and Bulk Agreement, the Company has sold MSR to NRM relating to mortgage loans having an aggregate unpaid principal balance of $71.1 billion as of the applicable closing dates of such transactions, in each case with subservicing retained. As of March 31, 2018, the Company had received $340.4 million in cash proceeds relating to such sales, which proceeds do not include certain holdback amounts relating to such sales that is expected to be paid to the Company over time. For the quarter ended March 31, 2018, the Company received $9.5 million in cash proceeds relating to these holdback amounts and at March 31, 2018 and December 31, 2017 had a servicing rights holdback receivable from NRM of $30.2 million and $31.3 million , respectively, which is recorded in receivables, net on the consolidated balance sheets. The Company also sold MSR relating to mortgage loans with an aggregate unpaid principal balance of $487.4 million and $469.5 million to NRM, which was comprised of all co-issue loans, for the periods from February 10, 2018 through March 31, 2018 and from January 1, 2018 through February 9, 2018 , respectively. For the three months ended March 31, 2017 , the Company sold MSR to NRM relating to mortgage loans with an aggregate unpaid principal balance of $2.2 billion , which included co-issue loans sold with an aggregate unpaid principal balance of $1.4 billion . These transfers generated revenues of $4.5 million , $3.8 million and $19.3 million for the periods February 10, 2018 through March 31, 2018 , January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017 , respectively, which are recorded in net gains on sales of loans on the consolidated statements of comprehensive income (loss). NRM Subservicing Agreement On August 8, 2016, Ditech Financial and NRM entered into the NRM Subservicing Agreement whereby Ditech Financial acts as subservicer for the mortgage loans whose MSR are sold by Ditech Financial to NRM under the NRM Flow and Bulk Agreement and for other mortgage loans as may be agreed upon by Ditech Financial and NRM from time to time, in exchange for a subservicing fee. Under the NRM Subservicing Agreement and a related agreement, Ditech Financial performs all daily servicing obligations on behalf of NRM with respect to the MSR that are serviced by Ditech Financial pursuant to the terms of the NRM Subservicing Agreement, including collecting payments from borrowers and offering refinancing options to borrowers for purposes of minimizing portfolio runoff. On January 17, 2018 Ditech Financial and NRM executed a Side Letter Agreement pursuant to which, among other things, certain provisions of the NRM Subservicing Agreement were amended and/or waived. With respect to Ditech Financial, for mortgage loans that were being subserviced by Ditech Financial under the NRM Subservicing Agreement prior to January 17, 2018, and for any additional mortgage loans that Ditech Financial may subservice under the NRM Subservicing Agreement that are added to such agreement after such date (other than (i) mortgage loans relating to MSR sold to NRM by Ditech Financial in a bulk sale agreed to by the parties on January 17, 2018 and (ii) mortgage loans relating to MSR sold to NRM by Ditech Financial on a flow basis under the NRM Flow and Bulk Agreement after such date), the initial term of the NRM Subservicing Agreement expired on August 8, 2017 and was automatically renewed for a successive one year term, and will further be automatically renewed for successive one -year terms thereafter, unless Ditech Financial elects to terminate the NRM Subservicing Agreement without cause at the end of any subsequent one -year renewal term by providing notice to NRM at least 120 days prior to the end of the applicable term. With respect to Ditech Financial, for mortgage loans relating to MSR sold to NRM by Ditech Financial in a bulk MSR sale agreed to by the parties on January 17, 2018 and mortgage loans relating to MSR sold to NRM by Ditech Financial on a flow basis under the NRM Flow and Bulk Agreement after such date, the initial term of the NRM Subservicing Agreement shall expire on January 17, 2019 (with respect to the aforementioned bulk MSR sale) or, with respect to each flow MSR assignment agreement executed by the parties after such date in connection with any flow MSR sales by Ditech Financial to NRM after such date, if any, the first anniversary of the first day of the calendar quarter following the calendar quarter during which such flow MSR assignment agreement was executed, and in each case will automatically renew for successive one -year terms thereafter, unless the Company elects to terminate the NRM Subservicing Agreement without cause at the end of any such one -year term by providing notice to NRM at least 120 days prior to the end of the applicable term. If Ditech Financial elects to terminate the NRM Subservicing Agreement without cause, Ditech Financial will not be entitled to receive any deconversion fee, will be responsible for certain servicing transfer costs and will owe NRM a transfer fee if such termination occurs within five years from the effective date of the agreement. Ditech Financial may also terminate the NRM Subservicing Agreement immediately for cause upon the occurrence of certain events, including, without limitation, any failure by NRM to remit payments (subject to a cure period), certain bankruptcy or insolvency events of NRM, NRM ceasing to be an approved servicer in good standing with Fannie Mae or Freddie Mac (unless caused by Ditech Financial) and any failure by NRM to perform, in any material respect, its obligations under the agreement (subject to a cure period). Upon any termination of the NRM Subservicing Agreement by Ditech Financial for cause, NRM will owe Ditech Financial a deconversion fee and be responsible for certain servicing transfer costs. With respect to NRM, for mortgage loans that were being subserviced by Ditech Financial under the NRM Subservicing Agreement prior to January 17, 2018, and for any additional mortgage loans that Ditech Financial may subservice under the NRM Subservicing Agreement that are added to such agreement after such date (other than (i) mortgage loans relating to MSR sold to NRM by Ditech Financial in a bulk sale agreed to by the parties on January 17, 2018 and (ii) mortgage loans relating to MSR sold to NRM by Ditech Financial on a flow basis under the NRM Flow and Bulk Agreement after such date), the initial term of the NRM Subservicing Agreement expired on August 8, 2017 and thereafter the agreement automatically terminates with respect to such mortgage loans, unless renewed by NRM on a monthly basis. Since the expiration of the initial term, NRM has renewed the NRM Subservicing Agreement each month thereafter. In the case of mortgage loans relating to MSR sold to NRM by Ditech Financial in a bulk MSR sale agreed to by the parties on January 17, 2018 and mortgage loans relating to MSR sold to NRM by Ditech Financial on a flow basis under the NRM Flow and Bulk Agreement after such date, the initial term of the NRM Subservicing Agreement shall expire on January 17, 2019 (with respect to the aforementioned bulk MSR sale) or, with respect to each flow MSR assignment agreement executed by the parties after such date in connection with any flow MSR sales by Ditech Financial to NRM after such date, if any, the first anniversary of the first day of the calendar quarter following the calendar quarter during which such flow MSR assignment agreement was executed, and following the applicable initial term the agreement automatically terminates with respect to the applicable mortgage loans unless renewed by NRM on a quarterly basis. If NRM fails to renew the agreement, it will owe the Company a deconversion fee. In addition, if NRM elects to terminate the NRM Subservicing Agreement without cause, it will owe the Company a deconversion fee and be responsible for certain servicing transfer costs. NRM may also terminate the NRM Subservicing Agreement immediately for cause upon the occurrence of certain events, including, without limitation, the Company's failure to remit payments (subject to a cure period), its failure to provide reports to NRM (subject to a cure period), a change of control of Ditech Financial or Ditech Holding, its failure to satisfy certain portfolio performance measures relating to delinquency rates or advances, the Company ceasing to be an approved servicer in good standing with Fannie Mae or Freddie Mac, any failure by Ditech Financial or Ditech Holding to satisfy certain financial metrics, certain bankruptcy or insolvency events of Ditech Financial or Ditech Holding and any failure by the Company to perform, in any material respect, its obligations under the agreement (subject to a cure period). Because certain of these events have already occurred, NRM has the ability to terminate the NRM Subservicing Agreement immediately for cause with respect to mortgage loans that were being subserviced by Ditech Financial under the NRM Subservicing Agreement prior to January 17, 2018, and for any additional mortgage loans that Ditech Financial may subservice under the NRM Subservicing Agreement that are added to such agreement after such date (other than (i) mortgage loans relating to MSR sold to NRM by Ditech Financial in a bulk sale agreed to by the parties on January 17, 2018 and (ii) mortgage loans relating to MSR sold to NRM by Ditech Financial on a flow basis under the NRM Flow and Bulk Agreement after such date), but has not terminated such agreement with respect to any such mortgage loans. Pursuant to the January 17, 2018 Side Letter Agreement Ditech Financial entered into with NRM, NRM agreed to, among other things, waive its right to terminate the Subservicing Agreement for cause due to the occurrence of certain of these events with respect to mortgage loans relating to MSR sold to NRM by Ditech Financial in a bulk sale agreed to by the parties on January 17, 2018 and mortgage loans relating to MSR sold to NRM by Ditech Financial on a flow basis under the NRM Flow and Bulk Agreement after such date. Upon any termination of the NRM Subservicing Agreement by NRM for cause, the Company will not be entitled to receive any deconversion fee, will be responsible for certain servicing transfer costs and will owe NRM a transfer fee if such termination occurs within five years from the effective date of the agreement. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities Disclosure | Variable Interest Entities Consolidated Variable Interest Entities Included in Note 6 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 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): Successor March 31, 2018 Residual Non-Residual Servicer and Protective Advance Financing Facilities Revolving Credit Facilities-Related VIEs Total Assets Restricted cash and cash equivalents $ 13,737 $ 8,476 $ 8,098 $ — $ 30,311 Residential loans at fair value (1) 292,626 293,011 — — 585,637 Receivables, net — 3,484 — 1,369 4,853 Servicer and protective advances, net — — 345,922 — 345,922 Other assets 131,045 1,269 2,370 30,435 165,119 Total assets $ 437,408 $ 306,240 $ 356,390 $ 31,804 $ 1,131,842 Liabilities Payables and accrued liabilities $ 50,191 $ — $ 636 $ — $ 50,827 Servicing advance liabilities — — 315,325 — 315,325 Mortgage-backed debt (1) 381,340 335,848 — — 717,188 Total liabilities $ 431,531 $ 335,848 $ 315,961 $ — $ 1,083,340 __________ (1) In connection with the adoption of fresh start accounting effective February 10, 2018 , the Company changed its method of accounting for the residential loans and mortgage-backed debt of the Residual Trusts from amortized cost to fair value. Predecessor December 31, 2017 Residual Non-Residual Servicer and Protective Advance Financing Facilities Revolving Credit Facilities-Related VIEs Total Assets Restricted cash and cash equivalents $ 12,687 $ 8,020 $ 23,669 $ — $ 44,376 Residential loans at amortized cost, net 424,420 — — — 424,420 Residential loans at fair value — 301,435 — — 301,435 Receivables, net — 5,608 — 216 5,824 Servicer and protective advances, net — — 446,799 — 446,799 Other assets 9,924 1,072 1,301 27,540 39,837 Total assets $ 447,031 $ 316,135 $ 471,769 $ 27,756 $ 1,262,691 Liabilities Payables and accrued liabilities $ 2,178 $ — $ 908 $ — $ 3,086 Servicing advance liabilities (1) — — 444,563 — 444,563 Mortgage-backed debt 387,200 348,682 — — 735,882 Total liabilities $ 389,378 $ 348,682 $ 445,471 $ — $ 1,183,531 __________ (1) The notes outstanding under Servicer and Protective Advance Financing Facilities were acquired by a subsidiary during the fourth quarter of 2017, primarily with proceeds from the Securities Master Repurchase Agreement. These notes are therefore eliminated upon consolidation at December 31, 2017. Unconsolidated Variable Interest Entities Included in Note 6 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 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. |
Transfers of Residential Loans
Transfers of Residential Loans | 3 Months Ended |
Mar. 31, 2018 | |
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. If the servicing rights are retained upon sale, the Company receives a 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 material breach of contractual representations and warranties. Refer to Note 23 for further information. The following table presents the carrying amounts of the Company’s assets that relate to its continued 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 Servicer and Payables and Accrued Liabilities Total Successor March 31, 2018 $ 395,075 $ 20,395 $ (6 ) $ 415,464 $ 33,089,157 Predecessor December 31, 2017 $ 385,744 $ 30,762 $ (32 ) $ 416,474 $ 36,274,449 At March 31, 2018 and December 31, 2017 , 2.6% and 2.9% , 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): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Cash proceeds received from sales, net of fees $ 1,307,464 $ 1,415,435 $ 5,252,552 Servicing fees collected (1) 15,432 13,884 30,803 Repurchases of previously sold loans (2) 17,892 14,948 17,503 __________ (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. (2) Includes Ginnie Mae buyout loans of $16.9 million , $14.2 million and $13.5 million for the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively . In connection with these sales, the Company recorded servicing rights using a fair value model that utilizes Level 3 unobservable inputs or using an agreed upon sales price considered to be Level 2 within the fair value hierarchy. Refer to Note 10 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 were pooled and securitized into HMBS that the Company sold into the secondary market with servicing rights retained. Effective January 2017, the Company exited the reverse mortgage originations business. The Company no longer has any reverse loans remaining in its originations pipeline and has finalized the shutdown of the reverse mortgage originations business. The Company will continue to fund undrawn tails 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, 2018 , 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 $8.3 billion and $8.6 billion , respectively. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2018 | |
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. 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. Successor Predecessor March 31, December 31, Level 2 Assets Mortgage loans held for sale $ 715,560 $ 588,485 Freestanding derivative instruments 3,990 2,757 Level 2 assets $ 719,550 $ 591,242 Liabilities Freestanding derivative instruments $ 3,173 $ 981 Servicing rights related liabilities 6 32 Level 2 liabilities $ 3,179 $ 1,013 Level 3 Assets Reverse loans $ 9,603,314 $ 9,789,444 Mortgage loans related to Non-Residual Trusts 293,011 301,435 Mortgage loans related to Residual Trusts and other loans held for investment (1) 299,558 — Mortgage loans held for sale 67 68 Charged-off loans 48,072 45,800 Receivables related to Non-Residual Trusts 3,484 5,608 Servicing rights carried at fair value 675,176 714,774 Freestanding derivative instruments (IRLCs) 26,746 26,637 Level 3 assets $ 10,949,428 $ 10,883,766 Liabilities Freestanding derivative instruments (IRLCs) $ 227 $ 269 Mortgage-backed debt related to Non-Residual Trusts 335,848 348,682 Mortgage-backed debt related to Residual Trusts (1) 381,340 — HMBS related obligations 8,798,059 9,175,128 Level 3 liabilities $ 9,515,474 $ 9,524,079 __________ (1) In connection with the adoption of fresh start accounting effective February 10, 2018 , the Company elected to change its method of accounting for mortgage loans related to Residual Trusts and other loans held for investment as well as mortgage-backed debt related to Residual Trusts from amortized cost to fair value. 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): Successor For the Period From February 10, 2018 Through March 31, 2018 Fair Value Total Gains (Losses) Included in Comprehensive Loss Purchases and Other Sales Originations / Issuances Settlements Fair Value Assets Reverse loans $ 9,702,263 $ 45,857 $ — $ — $ 37,443 $ (182,249 ) $ 9,603,314 Mortgage loans related to Non-Residual Trusts 299,790 2,520 — — — (9,299 ) 293,011 Mortgage loans related to Residual Trusts and other loans held for investment 304,051 (809 ) — — — (3,684 ) 299,558 Mortgage loans held for sale 67 20 — — — (20 ) 67 Charged-off loans 50,299 3,020 — — — (5,247 ) 48,072 Receivables related to Non-Residual Trusts 4,730 (411 ) — — — (835 ) 3,484 Servicing rights carried at fair value 688,466 (20,298 ) (32 ) — 7,040 — 675,176 Freestanding derivative instruments (IRLCs) 24,460 2,296 — — — (10 ) 26,746 Total assets $ 11,074,126 $ 32,195 $ (32 ) $ — $ 44,483 $ (201,344 ) $ 10,949,428 Liabilities Freestanding derivative instruments (IRLCs) $ (3,023 ) $ 2,796 $ — $ — $ — $ — $ (227 ) Mortgage-backed debt related to Non-Residual Trusts (344,002 ) (1,469 ) — — — 9,623 (335,848 ) Mortgage-backed debt related to Residual Trusts (390,152 ) 1,563 — — — 7,249 (381,340 ) HMBS related obligations (8,913,052 ) (44,968 ) — — (52,983 ) 212,944 (8,798,059 ) Total liabilities $ (9,650,229 ) $ (42,078 ) $ — $ — $ (52,983 ) $ 229,816 $ (9,515,474 ) Predecessor For the Period From January 1, 2018 Through February 9, 2018 Fair Value Total Purchases and Other Sales Originations / Issuances Settlements Fresh Start Accounting Fair Value Assets Reverse loans $ 9,789,444 $ 31,476 $ — $ — $ 33,300 $ (151,957 ) $ — $ 9,702,263 Mortgage loans related to Non-Residual Trusts 301,435 5,690 — — — (7,335 ) — 299,790 Mortgage loans related to Residual Trusts and other loans held for investment — — — — — — 304,051 304,051 Mortgage loans held for sale 68 — — — — (1 ) — 67 Charged-off loans (1) 45,800 8,843 — — — (4,344 ) — 50,299 Receivables related to Non-Residual Trusts 5,608 848 — — — (1,726 ) — 4,730 Servicing rights carried at fair value 714,774 64,663 (7 ) (100,399 ) 9,435 — — 688,466 Freestanding derivative instruments (IRLCs) 26,637 (2,171 ) — — — (6 ) — 24,460 Total assets $ 10,883,766 $ 109,349 $ (7 ) $ (100,399 ) $ 42,735 $ (165,369 ) $ 304,051 $ 11,074,126 Liabilities Freestanding derivative instruments (IRLCs) $ (269 ) $ (2,754 ) $ — $ — $ — $ — $ — $ (3,023 ) Mortgage-backed debt related to Non-Residual Trusts (348,682 ) (2,956 ) — — — 7,636 — (344,002 ) Mortgage-backed debt related to Residual Trusts — — — — — — (390,152 ) (390,152 ) HMBS related obligations (9,175,128 ) (20,900 ) — — (27,881 ) 310,857 — (8,913,052 ) Total liabilities $ (9,524,079 ) $ (26,610 ) $ — $ — $ (27,881 ) $ 318,493 $ (390,152 ) $ (9,650,229 ) __________ (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 $5.7 million during the period from January 1, 2018 through February 9, 2018 . Predecessor 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 . 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 mortgage loans held for sale, 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 and mortgage loans held for sale 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 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. Fair value adjustments relating to fresh start accounting are discussed in more detail in Note 3 . 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, mortgage loans related to 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 primarily 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. Loans held for sale also includes loans that 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. 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 8 for additional information on freestanding derivative financial instruments. Mortgage-backed debt related to Non-Residual Trusts and mortgage-backed debt related to 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. Successor Predecessor March 31, 2018 February 9, 2018 December 31, 2017 Significant (1)(2) Range of Input (3) Weighted (3) Range of Input (3) Weighted (3) Range of Input (3) Weighted (3) Assets Reverse loans Weighted-average remaining life in years (4) 0.3 - 10.2 3.5 0.3 - 10.2 3.5 0.3 - 10.2 3.8 Conditional repayment rate 12.61% - 71.68% 34.10 % 12.61% - 71.68% 34.43 % 12.61% - 71.68% 30.23 % Discount rate 2.79% - 4.17% 3.59 % 2.79% - 4.17% 3.59 % 3.05% - 4.17% 3.60 % Mortgage loans related to Non-Residual Trusts Conditional prepayment rate 1.98% - 2.51% 2.29 % 1.99% - 2.51% 2.30 % 2.08% - 2.53% 2.34 % Conditional default rate 0.99% - 4.72% 2.53 % 1.05% - 4.70% 2.55 % 1.01% - 4.97% 2.61 % Loss severity 97.71% - 100.00% 99.86 % 96.30% - 100.00% 99.79 % 90.60% - 100.00% 99.46 % Discount rate 8.32% 8.32 % 8.32% 8.32 % 8.32% 8.32 % Mortgage loans related to Residual Trusts and other loans held for investment Conditional prepayment rate 2.66% - 3.52% 3.06 % 2.66% - 3.57% 3.06 % — — Conditional default rate 4.12% - 5.32% 4.53 % 4.13% - 5.32% 4.53 % — — Loss severity 25.00% - 30.00% 28.26 % 27.00% - 30.00% 28.25 % — — Discount rate 8.25% 8.25 % 8.25% 8.25 % — — Mortgage loans held for sale Conditional prepayment rate 4.81% 4.81 % 4.81% 4.81 % 4.81% 4.81 % Conditional default rate 2.46% 2.46 % 2.46% 2.46 % 2.46% 2.46 % Loss severity 99.40% 99.40 % 99.40% 99.40 % 99.40% 99.40 % Discount rate 9.80% 9.80 % 9.80% 9.80 % 9.80% 9.80 % Charged-off loans Collection rate 3.29% - 5.84% 3.42 % 3.42% - 6.05% 3.55 % 2.84% - 4.47% 2.92 % Discount rate 28.00% 28.00 % 28.00% 28.00 % 28.00% 28.00 % Receivables related to Non-Residual Trusts Conditional prepayment rate 2.41% - 3.29% 3.01 % 2.46% - 3.29% 3.02 % 2.49% - 3.01% 2.79 % Conditional default rate 2.06% - 5.75% 3.70 % 1.99% - 5.32% 3.50 % 1.72% - 6.02% 3.61 % Loss severity 96.48% - 100.00% 98.93 % 94.86% - 100.00% 98.89 % 88.88% - 100.00% 97.71 % Discount rate 0.50% 0.50 % 0.50% 0.50 % 0.50% 0.50 % Servicing rights carried at fair value Weighted-average remaining life in years (4) 2.3 - 7.3 5.8 2.4 - 7.5 5.9 2.4 - 7.1 5.6 Discount rate 9.63% - 14.65% 11.79 % 9.63% - 14.62% 11.70 % 9.91% - 14.97% 11.92 % Conditional prepayment rate 6.21% - 27.13% 10.10 % 6.07% - 27.00% 9.70 % 6.80% - 25.85% 11.10 % Conditional default rate 0.09% - 9.87% 0.87 % 0.09% - 10.22% 0.90 % 0.06% - 3.20% 0.91 % Cost to service $62 - $1,260 $134 $62 - $1,260 $137 $62 - $1,260 $136 Interest rate lock commitments Loan funding probability 1.00% - 100.00% 61.69 % 1.00% - 100.00% 62.49 % 1.00% - 100.00% 62.97 % Fair value of initial servicing rights multiple (5) 0.01 - 7.16 3.03 0.02 - 5.64 2.79 0.01 - 5.24 2.74 Successor Predecessor March 31, 2018 February 9, 2018 December 31, 2017 Significant (1)(2) Range of Input (3) Weighted (3) Range of Input (3) Weighted (3) Range of Input (3) Weighted (3) Liabilities Interest rate lock commitments Loan funding probability 24.57% - 100.00% 83.93 % 14.19% - 100.00% 82.62 % 33.64% - 100.00% 84.76 % Fair value of initial servicing rights multiple (5) 0.05 - 6.39 3.46 0.08 - 5.86 3.39 0.24 - 4.92 3.32 Mortgage-backed debt related to Non-Residual Trusts Conditional prepayment rate 2.41% - 3.29% 3.01 % 2.46% - 3.29% 3.02 % 2.49% - 3.01% 2.79 % Conditional default rate 2.06% - 5.75% 3.70 % 1.99% - 5.32% 3.50 % 1.72% - 6.02% 3.61 % Loss severity 96.48% - 100.00% 98.93 % 94.86% - 100.00% 98.89 % 88.88% - 100.00% 97.71 % Discount rate 6.00% 6.00 % 6.00% 6.00 % 6.00% 6.00 % Mortgage-backed debt related to Residual Trusts Conditional prepayment rate 2.66% - 3.52% 3.06 % 2.66% - 3.57% 3.06 % — — Conditional default rate 4.12% - 5.32% 4.53 % 4.13% - 5.32% 4.53 % — — Loss severity 25.00% - 30.00% 28.26 % 27.00% - 30.00% 28.25 % — — Discount rate 6.00% 6.00 % 6.00% 6.00 % — — HMBS related obligations Weighted-average remaining life in years (4) 0.4 - 7.8 3.5 0.2 - 10.1 3.6 0.4 - 7.8 3.7 Conditional repayment rate 12.90% - 86.87% 36.89 % 12.61% - 71.68% 34.45 % 12.90% - 86.87% 32.07 % Discount rate 2.80% - 3.98% 3.43 % 2.80% - 4.21% 3.60 % 3.02% - 3.98% 3.45 % __________ (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): Successor Predecessor March 31, 2018 December 31, 2017 Estimated Unpaid Principal Estimated Unpaid Principal Loans at fair value under the fair value option Reverse loans (1) $ 9,603,314 $ 9,304,402 $ 9,789,444 $ 9,460,616 Mortgage loans held for sale (1) 715,627 694,242 588,553 567,492 Mortgage loans related to Non-Residual Trusts 293,011 332,216 301,435 344,421 Mortgage loans related to Residual Trusts and other loans held for investment 299,558 338,785 — — Charged-off loans 48,072 2,286,135 45,800 2,333,820 Total $ 10,959,582 $ 12,955,780 $ 10,725,232 $ 12,706,349 Debt instruments at fair value under the fair value option Mortgage-backed debt related to Non-Residual Trusts $ 335,848 $ 341,282 $ 348,682 $ 353,262 Mortgage-backed debt related to Residual Trusts 381,340 380,597 — — HMBS related obligations (2) 8,798,059 8,386,951 9,175,128 8,743,700 Total $ 9,515,247 $ 9,108,830 $ 9,523,810 $ 9,096,962 __________ (1) Includes loans that collateralize master repurchase agreements. Refer to Note 16 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 have been deemed to have no fair value at March 31, 2018 and December 31, 2017 as a result of severity rates being greater than 100% . These loans have an unpaid principal balance of $21.8 million and $22.2 million at March 31, 2018 and December 31, 2017 , respectively. Mortgage loans related to Residual Trusts that are 90 days or more past due had an unpaid principal balance of $30.2 million at March 31, 2018 . Mortgage loans held for sale that are 90 days or more past due had an unpaid principal balance of $8.5 million and $10.1 million at March 31, 2018 and December 31, 2017 , respectively. 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 $233.4 million and $116.6 million at March 31, 2018 and December 31, 2017 , respectively. In addition, the Company had loans that were in the process of foreclosure of $503.1 million and $489.0 million at March 31, 2018 and December 31, 2017 , 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 the valuation. The increase in real estate owned results from the adoption of new accounting guidance relating to sales of nonfinancial assets effective January 1, 2018, which resulted in loans being derecognized and placed back into real estate owned if the loans were originated under real estate owned financing wherein the loan-to-value was greater than 80% . The following table presents the significant unobservable input used in the fair value measurement of real estate owned, net: Successor Predecessor March 31, 2018 February 9, 2018 December 31, 2017 Significant Range of Input Weighted Range of Input Weighted Range of Input Weighted Real estate owned, net Loss severity (1) 0.00% - 73.68% 7.38 % 0.00% - 68.66% 7.54 % 0.00% - 78.76% 6.16 % __________ (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 Servicing and Reverse Mortgage segments and the Corporate and Other non-reportable segment of $134.0 million , $98.1 million and $1.3 million at March 31, 2018 , respectively, and $13.7 million , $101.8 million and $1.1 million at December 31, 2017 , 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. Successor Predecessor March 31, 2018 December 31, 2017 Fair Value Carrying Estimated Carrying Estimated Financial assets Residential loans at amortized cost, net (1) (5) Level 3 $ 7,960 $ 7,718 $ 443,056 $ 432,518 Servicer and protective advances, net Level 3 650,423 649,290 813,433 778,007 Financial liabilities (1) Servicing advance liabilities (2) Level 3 362,598 364,881 478,838 483,462 Corporate debt (3)(4) Level 2 1,263,635 1,295,041 1,994,411 1,553,076 Mortgage-backed debt carried at amortized cost (5) Level 3 — — 387,200 391,539 __________ (1) Excludes loans subject to repurchase from Ginnie Mae and the related liability. (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) At December 31, 2017, the carrying amount of corporate debt is net of the 2013 Revolver deferred issuance costs, which are recorded in other assets on the consolidated balance sheet. (4) Includes liabilities subject to compromise with a carrying value of $781.1 million and an estimated fair value of $358.8 million at December 31, 2017. (5) In connection with the adoption of fresh start accounting effective February 10, 2018 , the Company changed its method of accounting for the residential loans and mortgage-backed debt of the Residual Trusts from amortized cost to fair value. 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, 2018 Term Loan, Convertible Notes, Senior Notes and Second Lien 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 and 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): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Realized gains on sales of loans $ 872 $ 3,582 $ 26,085 Change in unrealized |
Freestanding Derivative Financi
Freestanding Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
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): Successor Predecessor March 31, 2018 December 31, 2017 Notional/ Fair Value Notional/ Fair Value Derivative Derivative Derivative Derivative Interest rate lock commitments $ 1,511,297 $ 26,746 $ 227 $ 1,509,712 $ 26,637 $ 269 Forward sales commitments 2,111,834 3,278 3,103 1,724,500 2,224 903 MBS purchase commitments 440,500 712 70 298,000 533 78 Total derivative instruments $ 30,736 $ 3,400 $ 29,394 $ 1,250 Cash margin $ 40 $ 1,551 $ — $ 1,533 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 counterparties, the total net settlement amount as it relates to these positions were asset positions of $0.7 million and $0.9 million , and liability positions of $1.2 million and $0.6 million , at March 31, 2018 and December 31, 2017 , respectively. During the fourth quarter of 2017, the Company terminated the previously disclosed master netting arrangements with two counterparties and entered into a new master netting arrangement associated with an existing master repurchase agreement amended under the DIP Warehouse Facilities. On February 9, 2018, upon the Effective Date of the Prepackaged Plan the DIP Warehouse Facilities transitioned into the Exit Warehouse Facilities, whereupon the master repurchase agreement amended under the DIP Warehouse Facilities continues to provide financing for the origination business. This new master netting arrangement allows for periodic offsetting of derivative positions and margins of two of the Company's counterparties against amounts associated with the Exit Warehouse Facilities. At March 31, 2018 the Company had an aggregate net derivative liability position with the two counterparties of $0.4 million . At December 31, 2017 , the Company had an aggregate net derivative asset position with the two counterparties of $0.4 million . Refer to Note 16 for additional information regarding the Exit Warehouse Facilities. Refer to Note 7 for a summary of the gains and losses on freestanding derivative instruments. |
Residential Loans at Amortized
Residential Loans at Amortized Cost, Net | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Residential Loans at Amortized Cost, Net Disclosure | Residential Loans at Amortized Cost, Net Residential loans at amortized cost, net consist of mortgage loans held for investment. The majority of these residential loans consist of loans subject to repurchase from Ginnie Mae and, at December 31, 2017, loans held in securitization trusts that have been consolidated. Residential loans at amortized cost, net are comprised of the following components (in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Unpaid principal balance (1) $ 474,154 $ 1,021,172 Unamortized discounts and other cost basis adjustments, net (2) (5,758 ) (29,371 ) Allowance for loan losses (706 ) (6,347 ) Residential loans at amortized cost, net (3) $ 467,690 $ 985,454 __________ (1) Includes loans subject to repurchase from Ginnie Mae of $459.7 million and $542.4 million at March 31, 2018 and December 31, 2017 , respectively. (2) Includes $0.1 million and $4.5 million of accrued interest receivable at March 31, 2018 and December 31, 2017 , respectively. (3) Includes $467.7 million and $561.0 million of mortgage loans that are not related to consolidated VIEs at March 31, 2018 and December 31, 2017 , respectively. In connection with the adoption of fresh start accounting, the Company elected fair value accounting for its mortgage loans related to the Residual Trusts, which resulted in a reduction to residential loans at amortized cost totaling $317.2 million at February 9, 2018 due to the reclassification of these loans from residential loans at amortized cost, net to residential loans at fair value. Refer to Note 3 for additional information regarding fresh start accounting adjustments. |
Servicing of Residential Loans
Servicing of Residential Loans | 3 Months Ended |
Mar. 31, 2018 | |
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): Successor Predecessor March 31, 2018 December 31, 2017 Number Unpaid Principal Number Unpaid Principal Third-party credit owners Capitalized servicing rights 757,398 $ 80,220,588 854,292 $ 93,599,077 Capitalized subservicing (1) 28,311 3,091,623 29,681 3,242,241 Subservicing 767,069 108,156,302 712,040 99,500,678 Total third-party servicing portfolio 1,552,778 191,468,513 1,596,013 196,341,996 On-balance sheet residential loans and real estate owned 80,423 11,383,672 82,480 11,522,817 Total servicing portfolio 1,633,201 $ 202,852,185 1,678,493 $ 207,864,813 __________ (1) Consists of subservicing contracts acquired through business combinations whereby the aggregate benefits from the contract are greater than adequate compensation for performing the servicing. 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 and, beginning in March 2018, the Corporate and Other non-reportable segment (in thousands): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Servicing fees $ 52,175 $ 52,855 $ 133,393 Incentive and performance fees 7,255 6,019 15,154 Ancillary and other fees (1) 11,756 7,335 23,243 Servicing revenue and fees 71,186 66,209 171,790 Change in fair value of servicing rights (20,343 ) 64,663 (53,516 ) Amortization of servicing rights (2) (3) (2,488 ) (2,187 ) (5,025 ) Change in fair value of servicing rights related liabilities — — (62 ) Net servicing revenue and fees $ 48,355 $ 128,685 $ 113,187 _________ (1) Includes late fees of $8.6 million , $5.1 million and $15.6 million for the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively . (2) Includes amortization of a servicing liability of $0.6 million , $0.6 million and $0.8 million for the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively . (3) Includes impairment of servicing rights and a servicing liability of $1.4 million , $1.6 million and $3.1 million for the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively . 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): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Mortgage Loan Reverse Loan Mortgage Loan Reverse Loan Mortgage Loan Reverse Loan Balance at beginning of the period $ 57,148 $ 4,542 $ 54,466 $ 4,011 $ 74,621 $ 5,505 Fresh start accounting adjustment — — 4,221 1,211 — — Amortization (1,472 ) (215 ) (944 ) (148 ) (2,256 ) (399 ) Impairment (293 ) (190 ) (595 ) (532 ) (1,376 ) — Balance at end of the period $ 55,383 $ 4,137 $ 57,148 $ 4,542 $ 70,989 $ 5,106 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 $55.8 million and $4.2 million , respectively at March 31, 2018 , and $59.7 million and $4.8 million , respectively, at December 31, 2017 . 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: Successor Predecessor March 31, 2018 February 9, 2018 December 31, 2017 Mortgage Loan Reverse Loan Mortgage Loan Reverse Loan Mortgage Loan Reverse Loan Weighted-average remaining life in years (1) 4.5 2.7 4.5 2.7 4.5 2.8 Weighted-average discount rate 13.00 % 15.00 % 13.00 % 15.00 % 13.00 % 15.00 % Conditional prepayment rate (2) 5.58 % N/A 5.34 % N/A 5.91 % N/A Conditional default rate (2) 2.37 % N/A 2.48 % N/A 2.45 % N/A Conditional repayment rate (3) N/A 37.18 % N/A 36.68 % N/A 36.01 % __________ (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): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Balance at beginning of the period $ 688,466 $ 714,774 $ 949,593 Purchases 36 — 446 Servicing rights capitalized upon sales of loans 12,978 14,493 33,904 Sales (5,893 ) (105,457 ) (94 ) Other (68 ) (7 ) — Change in fair value due to: Changes in valuation inputs or other assumptions (1) (6,517 ) 78,132 (17,530 ) Other changes in fair value (2) (13,826 ) (13,469 ) (35,986 ) Total change in fair value (20,343 ) 64,663 (53,516 ) Balance at end of the period $ 675,176 $ 688,466 $ 930,333 __________ (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. 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 7 . 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): Successor Predecessor March 31, 2018 December 31, 2017 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 11.79 % $ (28,891 ) $ (55,525 ) 11.92 % $ (29,892 ) $ (57,517 ) Weighted-average conditional prepayment rate 10.10 % (22,100 ) (42,746 ) 11.10 % (27,261 ) (52,551 ) Weighted-average conditional default rate 0.87 % (29,500 ) (59,706 ) 0.91 % (31,610 ) (63,832 ) 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. This table excludes inputs and assumptions related to servicing rights capitalized under the Company's co-issue program with NRM, which are classified as Level 2 within the fair value hierarchy. Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Weighted-average life in years 6.2 6.3 6.6 Weighted-average discount rate 14.74% 14.75% 13.62% Weighted-average conditional prepayment rate 9.30% 8.74% 8.00% Weighted-average conditional default rate 0.98% 0.92% 0.38% |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net Disclosure | Goodwill and Intangible Assets, Net Goodwill and intangible assets of the Predecessor were recorded in connection with various business combinations. Goodwill and intangible assets of the Successor were recorded in connection with fresh start accounting. Refer to Note 3 for further information on fresh start accounting. Goodwill The table below sets forth the activity in goodwill, which relates entirely to the Originations segment (in thousands): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 Balance at beginning of the period (1) $ 8,960 $ 47,747 Fresh start accounting adjustment (2) — (38,787 ) Impairment (8,960 ) — Balance at end of the period (3) $ — $ 8,960 __________ (1) There were accumulated impairment losses of $470.6 million and $138.8 million relating to the Servicing and Reverse Mortgage segments, respectively, at December 31, 2017. These accumulated impairment losses were reset in connection with fresh start accounting. (2) In connection with the adoption of fresh start accounting, the Company revalued goodwill to its estimated fair value at February 9, 2018 . This resulted in a reduction to goodwill totaling $38.8 million at February 9, 2018 as further described in Note 3 . (3) There were accumulated impairment losses of $9.0 million relating to the Originations segment at March 31, 2018. The Company completes its annual impairment testing effective October 1st, or more often if indicators are present that it is more likely than not that the goodwill of a reporting unit is impaired. As a result of lower projected financial performance within the Originations reporting unit subsequent to the Company's emergence from bankruptcy, which was driven by certain market factors including increasing mortgage interest rates driving lower originations volume, a flattening of the interest rate curve resulting in margin compression, aggressive pricing by certain competitors and continued challenges in shifting to a purchase money lender, the Company determined that there were indicators present that would require a an interim impairment analysis as of March 31, 2018. The Company chose to early adopt the accounting guidance that allows the results of the Step 1 test to be applied to the recorded value of goodwill. The Step 1 analysis resulted in the carrying value of the Originations reporting unit exceeding the estimated fair value. Accordingly, the Company recorded a goodwill impairment charge of $9.0 million relating to the Originations reporting unit. As a result of this charge, there is no longer any goodwill for the Company. Intangible Assets, Net Amortization expense associated with intangible assets was $2.5 million , $0.2 million and $1.5 million for the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively . Intangible assets, net consists of the following (in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Gross Carrying Amount (1) Accumulated Amortization Accumulated Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Carrying Amount Institutional and customer relationships $ 24,000 $ (2,480 ) $ — $ 21,520 $ 41,041 $ (30,793 ) $ (6,340 ) $ 3,908 Trademarks and trade names (2) 20,000 — (1,000 ) 19,000 10,000 (4,780 ) (395 ) 4,825 Other 650 — — 650 — — — — Total intangible assets $ 44,650 $ (2,480 ) $ (1,000 ) $ 41,170 $ 51,041 $ (35,573 ) $ (6,735 ) $ 8,733 __________ (1) In connection with the adoption of fresh start accounting, the Company revalued its intangible assets to their estimated fair value at February 9, 2018 . This resulted in an increase to intangible assets totaling $35.5 million , which included $20.2 million for institutional and customer relationships and $15.2 million for trade names. Refer to Note 3 for additional information regarding fresh start accounting adjustments. (2) Trade names recorded in connection with fresh start accounting were determined to have an indefinite life. Institutional and customer relationships and other intangible assets are being amortized over a weighted-average period of 3.2 years and 1.0 year, respectively, subsequent to the adoption of fresh start accounting on February 10, 2018 . Based on the balance of intangible assets, net at March 31, 2018 , the following is an estimate of amortization expense for the remainder of 2018 and for each of the next four years (in thousands): Successor Amortization Expense (1) For the remainder of 2018 $ 11,647 2019 7,600 2020 2,591 2021 320 2022 12 Total $ 22,170 __________ (1) Excludes $19.0 million relating to trade names that were determined to have an indefinite useful life. During the first quarter of 2018, the Company recorded impairment charges of $1.0 million related to trade names of the Servicing reporting unit. The Company tested these intangible assets for recoverability due to changes in facts and circumstances associated with rising mortgage interest rates and lower projected originations business financial performance. Based on the testing results, it was determined that the carrying value of the intangible assets was not fully recoverable and an impairment charge was recorded to the extent that carrying value exceeded estimated fair value. The Company primarily used the income approach to determine the fair value of the intangible assets and calculate the amount of impairment. |
Premises and Equipment, Net
Premises and Equipment, Net | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment, Net Disclosure | Premises and Equipment, Net Premises and equipment, net consists of the following (dollars in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Computer software $ 70,264 $ 246,271 Leasehold improvements and other 6,803 12,699 Assets in development 1,988 2,008 Computer hardware 1,727 33,154 Furniture and fixtures 517 7,812 Total premises and equipment 81,299 301,944 Less: accumulated depreciation and amortization (2,132 ) (251,731 ) Premises and equipment, net $ 79,167 $ 50,213 In connection with the adoption of fresh start accounting on February 9, 2018 , the Company adjusted premises and equipment to fair value, which included an adjustment to increase computer software by $33.7 million to reflect the fair value of internally developed technology. With the exception of computer software, the net carrying value of the assets noted in the table above approximated fair value. Accordingly, the accumulated depreciation for each asset classification was netted against the gross asset amount to arrive at the gross asset balances under fresh start accounting. Refer to Note 3 for additional information regarding fresh start accounting adjustments. The Company recorded depreciation and amortization expense for premises and equipment of $2.2 million , $3.6 million and $9.4 million , which includes amortization expense for computer software of $1.7 million , $3.2 million and $7.8 million for the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively . Unamortized computer software costs were $68.5 million and $38.7 million at March 31, 2018 and December 31, 2017 , respectively. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2018 | |
Other Assets [Abstract] | |
Other Assets Disclosure | Other Assets Other assets consists of the following (in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Real estate owned, net (1) $ 233,359 $ 116,553 Prepaid expenses 34,314 26,834 Derivative instruments 30,736 29,394 Clean-up Call Agreement inducement fee 28,184 29,256 Deposits 21,861 2,432 Deferred debt issuance costs 9,769 21,341 Investment in WCO 7,100 7,816 Other 2,194 1,969 Total other assets $ 367,517 $ 235,595 _________ (1) The adoption of the new accounting guidance relating to sales of nonfinancial assets effective January 1, 2018 resulted in loans being derecognized and placed back into real estate owned if the loans were originated under real estate owned financing wherein the loan-to-value was greater than 80% , thereby resulting in an increase to real estate owned and a real estate owned deposit obligation. In connection with the adoption of fresh start accounting, the Company recorded adjustments resulting in an increase to other assets totaling $3.3 million at February 9, 2018 as further described in Note 3 . |
Payables and Accrued Liabilitie
Payables and Accrued Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Payables and Accrued Liabilities Disclosure | Payables and Accrued Liabilities Payables and accrued liabilities consists of the following (in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Loans subject to repurchase from Ginnie Mae $ 459,730 $ 542,398 Accounts payable and accrued liabilities 139,180 129,731 Curtailment liability 137,574 140,905 Real estate owned deposit obligations (1) 49,544 — Employee-related liabilities 33,607 52,097 Loan repurchase obligation 29,458 31,704 Originations liability 26,142 25,613 Servicing rights and related advance purchases payable 14,469 14,923 Accrued interest payable 10,594 33,322 Uncertain tax positions 5,647 5,601 Other 44,485 44,006 Subtotal 950,430 1,020,300 Less: Liabilities subject to compromise (2) — 25,807 Total payables and accrued liabilities $ 950,430 $ 994,493 __________ (1) The adoption of the new accounting guidance relating to sales of nonfinancial assets effective January 1, 2018 resulted in loans being derecognized and placed back into real estate owned if the loans were originated under real estate owned financing wherein the loan-to-value was greater than 80% , thereby resulting in a higher real estate owned balance and a real estate owned deposit obligation. (2) Liabilities subject to compromise consist of accrued interest related to the Senior Notes and Convertibles Notes. Refer to Note 3 for additional information. In connection with the adoption of fresh start accounting, the Company recorded adjustments resulting in a reduction to payables and accrued liabilities totaling $7.4 million at February 9, 2018 as further described in Note 3 . Costs Associated with Exit Activities The Company made the decision during the fourth quarter of 2015 to exit the consumer retail channel of the Originations segment. Further, following a decision made in December 2016 and 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 and Prior Actions herein. The Company continued 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 incurred costs, including severance and related costs, office closures, which included the Irving, TX location, and other costs in connection with its transformation efforts during 2017. The actions that were taken in connection with these efforts are collectively referred to as the 2017 Actions herein. During 2018, the Company intends to continue to optimize its operations, which includes consideration of further site consolidations, process improvements and workforce rationalization. Accordingly, the Company incurred and will continue to incur costs, including severance and related costs, office closures, and other costs during 2018. The actions that have been and will be taken in connection with these efforts are collectively referred to as the 2018 Actions herein. These strategic reviews could result in additional site closings or other outcomes. The costs associated with such actions will be included in the exit liability at such time that each action is approved by management. The costs resulting from the 2016 and Prior Actions, 2017 Actions and 2018 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 2016 and Prior Actions, 2017 Actions and 2018 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): Successor For the Period From February 10, 2018 Through March 31, 2018 2016 and Prior Actions 2017 Actions 2018 Actions Total Balance at February 10, 2018 $ 472 $ 14,837 $ 616 $ 15,925 Charges Severance and related costs (1) 4 137 1,060 1,201 Office closures and other costs 24 149 — 173 Total charges 28 286 1,060 1,374 Cash payments or other settlements Severance and related costs (79 ) (742 ) (76 ) (897 ) Office closures and other costs (45 ) (713 ) — (758 ) Total cash payments or other settlements (124 ) (1,455 ) (76 ) (1,655 ) Balance at March 31, 2018 $ 376 $ 13,668 $ 1,600 $ 15,644 Cumulative charges incurred Severance and related costs 26,957 9,268 1,687 37,912 Office closures and other costs 10,489 13,582 — 24,071 Total cumulative charges incurred $ 37,446 $ 22,850 $ 1,687 $ 61,983 Total expected costs to be incurred (2) $ 37,446 $ 22,850 $ 2,299 $ 62,595 Predecessor For the Period From January 1, 2018 Through February 9, 2018 2016 and Prior Actions 2017 Actions 2018 Actions Total Balance at January 1, 2018 $ 540 $ 15,955 $ — $ 16,495 Charges Severance and related costs (1) (21 ) 72 627 678 Office closures and other costs 19 234 — 253 Total charges (2 ) 306 627 931 Cash payments or other settlements Severance and related costs — (948 ) (11 ) (959 ) Office closures and other costs (66 ) (476 ) — (542 ) Total cash payments or other settlements (66 ) (1,424 ) (11 ) (1,501 ) Balance at February 9, 2018 $ 472 $ 14,837 $ 616 $ 15,925 __________ (1) Includes adjustments to prior year accruals resulting from changes to previous estimates. (2) Total expected costs for the 2018 Actions 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 2016 and Prior Actions, 2017 Actions, and 2018 Actions described above by reportable segment (in thousands): Successor For the Period From February 10, 2018 Through March 31, 2018 Servicing Originations Reverse Corporate and Other Total Balance at February 10, 2018 2016 and Prior Actions $ 289 $ 68 $ 18 $ 97 $ 472 2017 Actions 13,718 44 387 688 14,837 2018 Actions 527 16 27 46 616 Total balance at February 10, 2018 14,534 128 432 831 15,925 Charges 2016 and Prior Actions (1) 16 8 4 — 28 2017 Actions (1) 260 — (84 ) 110 286 2018 Actions 263 — 338 459 1,060 Total charges 539 8 258 569 1,374 Cash payments or other settlements 2016 and Prior Actions (29 ) (16 ) — (79 ) (124 ) 2017 Actions (879 ) (36 ) (178 ) (362 ) (1,455 ) 2018 Actions (19 ) (16 ) (20 ) (21 ) (76 ) Total cash payments or other settlements (927 ) (68 ) (198 ) (462 ) (1,655 ) Balance at March 31, 2018 2016 and Prior Actions 276 60 22 18 376 2017 Actions 13,099 8 125 436 13,668 2018 Actions 771 — 345 484 1,600 Total balance at March 31, 2018 $ 14,146 $ 68 $ 492 $ 938 $ 15,644 Total cumulative charges incurred 2016 and Prior Actions $ 18,083 $ 5,639 $ 7,145 $ 6,579 $ 37,446 2017 Actions 19,709 1,550 1,482 109 22,850 2018 Actions 790 27 365 505 1,687 Total cumulative charges incurred $ 38,582 $ 7,216 $ 8,992 $ 7,193 $ 61,983 Total expected costs to be incurred 2016 and Prior Actions $ 18,083 $ 5,639 $ 7,145 $ 6,579 $ 37,446 2017 Actions 19,709 1,550 1,482 109 22,850 2018 Actions (2) 1,135 27 579 558 2,299 Total expected costs to be incurred $ 38,927 $ 7,216 $ 9,206 $ 7,246 $ 62,595 Predecessor For the Period From January 1, 2018 Through February 9, 2018 Servicing Originations Reverse Corporate and Other Total Balance at January 1, 2018 2016 and Prior Actions (3) $ 348 $ 77 $ 18 $ 97 $ 540 2017 Actions (3) 14,317 91 483 1,064 15,955 2018 Actions (3) — — — — — Total balance at January 1, 2018 (3) 14,665 168 501 1,161 16,495 Charges 2016 and Prior Actions (1) (5 ) 3 — — (2 ) 2017 Actions (1) 289 16 2 (1 ) 306 2018 Actions 527 27 27 46 627 Total charges 811 46 29 45 931 Cash payments or other settlements 2016 and Prior Actions (54 ) (12 ) — — (66 ) 2017 Actions (888 ) (63 ) (98 ) (375 ) (1,424 ) 2018 Actions — (11 ) — — (11 ) Total cash payments or other settlements (942 ) (86 ) (98 ) (375 ) (1,501 ) Balance at February 9, 2018 2016 and Prior Actions 289 68 18 97 472 2017 Actions 13,718 44 387 688 14,837 2018 Actions 527 16 27 46 616 Total balance at February 9, 2018 $ 14,534 $ 128 $ 432 $ 831 $ 15,925 __________ (1) Includes adjustments to prior year accruals resulting from changes to previous estimates. (2) Total expected costs for the 2018 Actions could change based on additional actions as determined by management throughout the year. (3) Effective January 1, 2018, the Company no longer allocates corporate overhead to its operating segments. These amounts are now included in the Corporate and Other non-reportable segment. Prior year balances have been restated to conform to current year presentation . |
Servicing Advance Liabilities
Servicing Advance Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Short-term Debt [Abstract] | |
Servicing Advance Liabilities Disclosure | Servicing Advance Liabilities Servicing advance liabilities, which are carried at amortized cost, consists of the following (in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Servicing Advance Facilities 315,325 421,165 Early Advance Reimbursement Agreement 49,556 62,297 Total servicing advance liabilities $ 364,881 $ 483,462 At December 31, 2017, the Company's subsidiaries had a Securities Master Repurchase Agreement under the DIP Warehouse Facilities and an Early Advance Reimbursement Agreement with Fannie Mae, which, in each case, was used to fund servicer and protective advances that are the responsibility of the Company under certain servicing agreements. Payments on the amounts due under these agreements are paid from certain proceeds received by the subsidiaries (i) in connection with the liquidation of mortgaged properties, (ii) from repayments received from mortgagors, or (iii) from reimbursements received from the owners of the mortgage loans, such as Fannie Mae, Freddie Mac and private label securitization trusts, or (iv) issuance of new notes or other refinancing transactions. Accordingly, repayment of the servicing advance liabilities is dependent on the proceeds that are received on the underlying advances associated with the agreements. On February 12, 2018, the Securities Master Repurchase Agreement was repaid with proceeds from the issuance of variable funding notes under two new servicing advance facilities, the DAAT Facility and DPATII Facility. The DAAT Facility and DPATII Facility acquired the outstanding advances from the GTAAFT Facility and DPAT Facility, respectively, and the variable funding notes under the GTAAFT Facility and DPAT Facility, which had been pledged as collateral under the Securities Master Repurchase Agreement, were fully redeemed. The DAAT Facility and DPATII Facility have aggregate capacities of $475.0 million and $75.0 million , respectively. In April 2018, the DAAT Facility and DPATII Facility were amended to, among other things, shift $10.0 million in capacity from the DAAT Facility to the DPATII Facility. The interest on the variable funding notes issued under the DAAT Facility and DPATII Facility is based on the lender's applicable index , plus a per annum margin of 2.25% , and have an expected repayment date of February 2019 . These facilities, together with the Ditech Financial Exit Master Repurchase Agreement used to fund originations and the RMS Exit Master Repurchase Agreement used to finance the repurchases of certain HECMs and real estate owned from Ginnie Mae securitization pools, are subject, collectively, to a combined maximum outstanding amount of $1.9 billion under the Exit Warehouse Facilities. In connection with the DAAT Facility and DPATII Facility, Ditech Financial sells and/or contributes the rights to reimbursement for servicer and protective advances to a depositor entity, which then sells and/or contributes such rights to reimbursement to an issuer entity. Each of the issuer and the depositor entities under these facilities is structured as a bankruptcy remote special purpose entity and is the sole owner of its respective assets. Advances made under the DAAT Facility and DPATII Facility are held in two separate trusts: the existing DAAT, used to hold GSE advances, and DPATII, used to hold non-GSE advances. These facilities provide funding for servicer and protective advances made in connection with Ditech Financial's servicing of certain Fannie Mae, Freddie Mac and other mortgage loans, and is non-recourse to the Company. These facilities contain customary events of default and covenants, including financial covenants. Financial covenants most sensitive to the Company's operating results and financial position are the requirements that Ditech Financial maintain minimum tangible net worth, indebtedness to tangible net worth, minimum liquidity and profitability requirements. Ditech Financial was in compliance with the terms of the DAAT Facility and DPATII Facility, including financial covenants, at March 31, 2018. In May 2018, the DAAT Facility and DPATII Facility were amended to provide an extension to the deadline to deliver unaudited quarterly financial statements in respect to Ditech Financial for the quarter ended March 31, 2018. As a result of such amendments, Ditech Financial is permitted to deliver the relevant unaudited quarterly financial statements for the quarter ended March 31, 2018 within 73 days (formerly 60 days ) before triggering a default or event of default or otherwise constituting a breach of any representation, warranty or covenant under the facilities. Additionally, the profitability covenants included in the DAAT Facility and DPATII Facility were amended to allow for a net loss under such covenants for the quarter ending June 30, 2018, as applicable to the terms of each respective agreement. In April 2018, the Company entered into an acknowledgment agreement with Fannie Mae, whereupon the Early Advance Reimbursement Agreement was terminated. The Company fully repaid the outstanding balance on the Early Advance Reimbursement Agreement upon termination, and the advances were pledged as collateral on the DAAT Facility. |
Warehouse Borrowings
Warehouse Borrowings | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Warehouse Borrowings Disclosure | Warehouse Borrowings 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. Effective December 5, 2017, the Company entered an agreement with certain existing warehouse lenders to provide the DIP Warehouse Facilities during the Chapter 11 Case. At December 31, 2017, the DIP Warehouse Facilities, which had a total capacity of $1.9 billion , included a master repurchase agreement that provided up to $750.0 million to finance Ditech Financial's origination business and a master repurchase agreement that provided up to $800.0 million to finance the repurchase of certain HECMs and real estate owned from Ginnie Mae securitization pools. The capacity under these master repurchase agreements was provided on a committed basis. On February 9, 2018, upon the Effective Date of the Prepackaged Plan the DIP Warehouse Facilities transitioned into the Exit Warehouse Facilities whereupon the Ditech Financial Exit Master Repurchase Agreement and RMS Exit Master Repurchase Agreement amended under the DIP Warehouse Facilities will continue to provide financing for Ditech Financial's origination business and will continue to finance the repurchases of certain HECMs and real estate owned from Ginnie Mae securitization pools. Upon the Effective Date, the facilities were amended to, among other things, extend the maturity date to February 2019 , change the interest rate to the lender's applicable index , plus a per annum margin of 2.25% or 3.25% , increase the amount available to finance Ditech Financial's origination business from $750.0 million to $1.0 billion and increase the maximum repayment term for certain repurchased HECMs from 180 days to 365 days . These facilities, together with the DAAT Facility and DPATII Facility used to fund advances, are subject, collectively, to a combined maximum outstanding amount of $1.9 billion under the Exit Warehouse Facilities. At March 31, 2018, $650.6 million of the outstanding borrowings were secured by $690.3 million in originated and purchased residential loans and $739.1 million of outstanding borrowings were secured by $874.1 million in repurchased HECMs and real estate owned. On April 23, 2018 the Company entered into an additional master repurchase agreement which provides up to $212.0 million in committed capacity to fund the repurchase of certain HECMs and real estate owned from Ginnie Mae securitization pools for a period of one year. 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 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 certain repurchased HECMs and real estate owned are due within 180 days to 365 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. 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 financial covenants. Financial covenants that are most sensitive to the operating results of the Company's subsidiaries and resulting financial position are minimum tangible net worth requirements, indebtedness to tangible net worth ratio requirements, and minimum liquidity and profitability requirements. The Company's subsidiaries were in compliance with the terms of these agreements, including financial covenants, at March 31, 2018 . In May 2018, Ditech Financial and RMS amended their respective master repurchase agreements to provide an extension to the deadline to deliver unaudited quarterly and monthly financial statements in respect to Ditech Financial, RMS and Ditech Holding for the quarter ended March 31, 2018 and the month ended April 30, 2018. As a result of such amendments, Ditech Financial and RMS are permitted to deliver the relevant unaudited quarterly financial statements for the quarter ended March 31, 2018 within 73 days (formerly 45 days ) and the relevant unaudited monthly financial statements within 60 days (formerly 30 days under the Ditech Financial Exit Master Repurchase Agreement and 45 days under RMS's master repurchase agreements) before triggering a default or event of default or otherwise constituting a breach of any representation, warranty or covenant under its master repurchase agreements. Additionally, the profitability covenant included in the Ditech Financial Exit Master Repurchase Agreement was amended to allow for a net loss under such covenant for the quarter ending June 30, 2018, as applicable to the terms of the 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. |
Corporate Debt
Corporate Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Corporate Debt Disclosure | Corporate Debt Corporate debt consists of the following (dollars in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Amortized Cost Weighted- Average Stated Interest Rate (1) Amortized Cost Weighted- Average Stated Interest Rate (1) 2018 Term Loan (unpaid principal balance of $1,111,501 at March 31, 2018) $ 1,073,376 7.88 % $ — — % Second Lien Notes (unpaid principal balance of $250,000 at March 31, 2018) 190,259 9.00 % — — % 2013 Term Loan (unpaid principal balance of $1,229,590 at December 31, 2017) — — % 1,214,663 5.31 % Senior Notes (unpaid principal balance of $538,662 at December 31, 2017) — — % 538,662 7.875 % Convertible Notes (unpaid principal balance of $242,468 at December 31, 2017) — — % 242,468 4.50 % Subtotal 1,263,635 1,995,793 Less: Liabilities subject to compromise (2) — 781,130 Total corporate debt $ 1,263,635 $ 1,214,663 __________ (1) Represents the weighted-average stated interest rate, which may be different from the effective rate, which considers the amortization of discounts and issuance costs. (2) Liabilities subject to compromise consist of the Senior Notes and Convertibles Notes at December 31, 2017. Refer to Note 3 for additional information. Pre-Bankruptcy Emergence 2013 Credit Agreement At December 31, 2017, the Company had the 2013 Term Loan in the original principal amount of $1.5 billion and unpaid principal amount of $1.2 billion . The Company also had the 2013 Revolver with a maximum capacity of $20.0 million at December 31, 2017, and with $19.5 million outstanding in issued LOCs reducing the amount available on the 2013 Revolver, the Company had $0.5 million in available capacity. The Company's obligations under the 2013 Secured Credit Facilities were guaranteed by substantially all of its subsidiaries and secured by substantially all of its assets subject to certain exceptions, the most significant of which are the assets of the consolidated Residual and Non-Residual Trusts, the residential loans and real estate owned of the Ginnie Mae securitization pools, and advances of the consolidated financing entities that have been recorded on the consolidated balance sheets. Senior Notes In December 2013, the Company completed the sale of $575.0 million aggregate principal amount of Senior Notes, which paid interest semi-annually at an interest rate of 7.875% and were scheduled to mature on December 15, 2021 . The balance outstanding on the Senior Notes was $538.7 million at December 31, 2017. At December 31, 2017, the outstanding balance of Senior Notes as well as accrued interest on the Senior Notes of $19.4 million was included in liabilities subject to compromise on the consolidated balance sheets. On February 9, 2018, upon the Effective Date of the Prepackaged Plan, the Senior Notes were canceled and each holder of a Senior Notes claim received its pro rata share of (a) Second Lien Notes and (b) Mandatorily Convertible Preferred Stock. See below for additional information on the Second Lien Notes and refer to the Emergence from Reorganization Proceedings section of Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations for additional information regarding the Mandatorily Convertible Preferred Stock. Convertible Notes In October 2012, the Company closed on a registered underwritten public offering of $290.0 million aggregate principal amount of Convertible Notes. The Convertible Notes paid interest semi-annually on May 1 and November 1, commencing on May 1, 2013 , at a rate of 4.50% per annum, and were scheduled to mature on November 1, 2019 . The balance outstanding on the Convertible Notes was $242.5 million at December 31, 2017. At December 31, 2017, the outstanding balance of Convertible Notes as well as accrued interest on the Convertible Notes of $6.4 million were included in liabilities subject to compromise on the consolidated balance sheets. On February 9, 2018, upon the Effective Date of the Prepackaged Plan, the Convertible Notes were canceled and each holder of a Convertible Notes claim received common stock and warrants. Refer to the Emergence from Reorganization Proceedings section of Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations for additional information. Post-Bankruptcy Emergence 2018 Credit Agreement On February 9, 2018, the Company entered into the 2018 Credit Agreement, which includes a $1.2 billion 2018 Term Loan. The 2018 Credit Agreement amends and restates the Company’s 2013 Credit Agreement and was subsequently amended as described below. The 2013 Revolver and issued letters of credit were terminated as part of the 2018 Credit Agreement. The Company's obligations under the 2018 Credit Agreement are guaranteed by substantially all of the Company’s subsidiaries and secured by substantially all of the assets of the Company subject to certain exceptions, the most significant of which are the assets of the consolidated Residual and Non-Residual Trusts, the residential loans and real estate owned of the Ginnie Mae securitization pools, and advances of the consolidated financing entities that have been recorded on the Company's consolidated balance sheets. Refer to the Consolidated Variable Interest Entities section of Note 5 for additional information. The 2018 Term Loan bears interest at a rate equal to, at the Company's option (i) LIBOR plus 6.00% , subject to a LIBOR floor of 1.00% or (ii) an alternate base rate plus 5.00% ( which interest will be payable (a) with respect to any alternate base rate loan, the last business day of each March, June, September and December, and (b) with respect to any LIBOR loan, the last day of the interest period applicable to the borrowing of which such loan is a part ). The 2018 Term Loan matures on June 30, 2022 . The Company made principal payments on the 2013 Term Loan and 2018 Term Loan totaling $7.5 million during the period from February 10, 2018 to March 31, 2018 and $110.6 million during the period from January 1, 2018 to February 9, 2018. The balance outstanding on the 2018 Term Loan was $1.1 billion at March 31, 2018. The Company is required to make quarterly payments on the 2018 Term Loan in the amounts listed below (in thousands): Successor Repayment Date Principal Amount June 2018 $ 17,500 September 2018 17,500 December 2018 17,500 March 2019 10,000 June 2019 26,700 September 2019 36,700 December 2019 36,700 each March, June, September and December thereafter 15,000 In addition to the quarterly installments detailed above, mandatory repayment obligations under the 2018 Credit Agreement include, subject to exceptions, (i) 100% of the net sale proceeds from the sale or other disposition of certain non-core assets of the Company and of certain of the Company’s subsidiaries, (ii) 80% of the net sale proceeds of certain non-ordinary course asset sales and dispositions of certain bulk MSR, (iii) 100% of the net cash proceeds from the issuance of certain indebtedness and (iv) beginning with the fiscal year ending December 31, 2018, 50% of the Company’s excess cash flow as defined in the agreement. The 2018 Credit Agreement allows the Company to prepay, in whole or in part, the Company’s borrowings outstanding thereunder, together with any accrued and unpaid interest, with prior notice and subject to the prepayment premium described below and breakage or redeployment costs. The 2018 Credit Agreement contains affirmative and negative covenants and representations and warranties customary for financings of this type, including restrictions on liens, dispositions of assets, fundamental changes, dividends, the ability to incur additional indebtedness, investments, transactions with affiliates, modifications of certain agreements, certain restrictions on subsidiaries, issuance of certain equity interests, changes in lines of business, creation of additional subsidiaries and prepayments of other indebtedness, in each case subject to customary exceptions. The 2018 Credit Agreement permits the incurrence of an additional incremental letter of credit facility in an aggregate principal amount at any time outstanding not to exceed $30.0 million . The 2018 Credit Agreement also contains financial covenants requiring compliance with certain asset coverage ratios and, commencing in 2020 as described below, an interest expense coverage ratio and a first lien net leverage ratio. On March 29, 2018, the Company entered into an amendment to 2018 Credit Agreement to (i) waive the Company’s compliance with the first lien net leverage ratio covenant and the interest expense coverage ratio covenant until the test period ending March 31, 2020, (ii) require the Company to make additional principal payments from March 29, 2018 to December 31, 2018 in an aggregate amount equal to $30.0 million , which is reflected in the table above, (iii) provide for a one percent prepayment premium in connection with prepayments of the term loans made during the first 18 months after entering into this amendment (for all prepayments of principal other than mandatory amortization payments and the payments described in the foregoing clause (ii)), and (iv) increase the minimum requirement for Asset Coverage Ratio A for all test periods ending on March 31, 2018 through December 31, 2018. Second Lien Notes On February 9, 2018, pursuant to the terms of the Prepackaged Plan, the Company issued $250.0 million aggregate principal amount of Second Lien Notes to each holder of a Senior Notes claim on a pro rata basis. The Second Lien Notes pay interest in arrears semi-annually on June 15 and December 15, commencing on June 15, 2018 , at a rate of 9.00% per year, and mature December 31, 2024 . The Second Lien Notes require payment of interest in cash, except that interest on up to $50.0 million principal amount, at the election of the Company, may be paid by increasing the principal amount of the outstanding notes or by issuing additional notes. The terms of the 2018 Credit Agreement require that the Company exercise such election. The Second Lien Notes are secured on a second-priority basis by substantially all of the Company's assets and are guaranteed by substantially all of the Company's subsidiaries. The Second Lien Notes and the guarantees thereof are subordinated to the prior payment in full of the 2018 Credit Agreement and certain other senior indebtedness (as defined and to the extent set forth in the Second Lien Notes Indenture). |
Mortgage-Backed Debt
Mortgage-Backed Debt | 3 Months Ended |
Mar. 31, 2018 | |
Mortgage Backed Debt [Abstract] | |
Mortgage-Backed Debt Disclosure | Mortgage-Backed Debt Mortgage-backed debt consists of debt issued by the Residual and Non-Residual Trusts that have been consolidated by the Company. The mortgage-backed debt of the Residual Trusts was carried at amortized cost at December 31, 2017. In connection with the adoption of fresh start accounting effective February 9, 2018 , the Company changed its method of accounting for mortgage-backed debt of the Residual Trusts to fair value. The mortgage-backed debt of the Non-Residual Trusts is carried at fair value. Provided in the table below is information regarding the mortgage-backed debt (dollars in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Carrying Value Weighted-Average Stated Interest Rate (1) Carrying Value Weighted-Average Stated Interest Rate (1) Mortgage-backed debt at fair value (unpaid principal balance of $721,879 and $353,262 at March 31, 2018 and December 31, 2017, respectively) $ 717,188 6.17 % $ 348,682 6.26 % Mortgage-backed debt at amortized cost (unpaid principal balance of $391,208 at December 31, 2017) — — % 387,200 6.07 % Total mortgage-backed debt $ 717,188 6.17 % $ 735,882 6.16 % __________ (1) Represents the weighted-average stated interest rate, which may be different from the effective rate, which considers the amortization of discounts and issuance costs. In connection with the adoption of fresh start accounting, the Company recorded adjustments resulting in an increase to mortgage-backed debt totaling $6.2 million at February 9, 2018 as further described in Note 3 . |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Disclosure | Share-Based Compensation On the Effective Date, all outstanding options and non-vested awards at December 31, 2017 were canceled in connection with the Company's emergence from bankruptcy. Accordingly, the Company was required to recognize the entire amount of any previously unrecognized compensation cost, which totaled $0.4 million at February 9, 2018. Subsequent to the quarter ended March 31, 2018, the Company announced the appointment of Thomas F. Marano as Chief Executive Officer and Ritesh Chaturbedi as Chief Operating Officer. In connection with his appointment as Chief Executive Officer, Mr. Marano's agreement included the anticipated grant of performance share awards for 2018 and 2019, subject to the approval of the Compensation Committee of the Board, with the number of shares earned to be determined based upon the average closing price of the Company's stock for the 20 trading days immediately prior to the first anniversary and second anniversary of the effective date per the agreement. The number of shares earned under the performance share award agreement pursuant to fiscal year 2018 and 2019 will be determined in accordance with the stock performance ranges detailed within the agreement up to a maximum number of 500,000 shares. Subject to Mr. Marano's continued service with the Company on each applicable vesting date, the Compensation Committee will determine how many shares have been earned following each applicable anniversary date, and fifty percent of the earned shares will vest immediately while the remaining earned shares will vest one year later. In addition, Mr. Chaturbedi is expected to be granted an amount of RSUs to be determined based on an economic value of $0.5 million , which will vest over the determined service period. It is also anticipated that Mr. Chaturbedi will be granted performance share awards for 2018, with the number of shares earned to be determined based upon the average closing price of the Company's stock for the 20 trading days immediately prior to and including December 31, 2020. The number of shares earned under the performance share award agreement pursuant to fiscal year 2018 will be determined in accordance with the stock performance ranges detailed within the agreement up to a maximum number of 20,000 shares. Subject to Mr. Chaturbedi's continued service with the Company, the Compensation Committee will determine how many shares have been earned subsequent to December 31, 2020, and fifty percent of the earned shares will vest immediately and the remaining shares will vest one year later. Total expected compensation expense for the awards granted to Mr. Marano and Mr. Chaturbedi is expected to be calculated using a Monte Carlo valuation technique, which considers the probability of all of the possible outcomes of the performance target. Furthermore, on May 2, 2018, the Company granted 251,632 immediately vesting RSUs to non-employee directors, which includes 37,746 RSUs being accounted for as liability-classified awards in accordance with GAAP and requires them to be marked-to-market each period. The weighted-average grant date fair value of $5.50 for these awards was based on the closing market price of the Company's stock on the grant date. Share-Based Compensation Expense Share-based compensation expense recognized by the Company is net of actual forfeitures. Share-based compensation expense of $0.5 million for the period from January 1, 2018 through February 9, 2018 is included in salaries and benefits expense on the consolidated statements of comprehensive income (loss). There was no share-based compensation expense for the period from February 10, 2018 through March 31, 2018 as no awards had been granted during that period. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes Disclosure | Income Taxes The Company recorded income tax benefit of $18 thousand for the period from January 1, 2018 through February 9, 2018 , which reflects the tax impact of the Predecessor operations, reorganization adjustments and the impact of fresh start accounting adjustments. The Company calculates income tax expense (benefit) for each interim reporting period based on the estimated annual effective tax rate, which takes into account all expected ordinary activity for the year. For the period from February 10, 2018 through March 31, 2018 , the Company recognized a tax expense of $0.2 million . Deferred tax assets have been reduced by a valuation allowance due to a determination that it is more likely than not that some or all of the deferred tax assets will not be realized based on the weight of all available evidence. The effective tax rate and tax expense continue to be low as a result of the Company not recognizing an income tax benefit associated with net losses. Under the Prepackaged Plan, a substantial amount of the Company’s debt was discharged. Absent an exception, a debtor recognizes cancellation of indebtedness income, or CODI, upon discharge of its outstanding indebtedness for an amount of consideration that is less than its adjusted issue price. The amount of CODI recognized by a taxpayer is the adjusted issue price of any indebtedness discharged less the sum of (i) the amount of cash paid, (ii) the issue price of any new indebtedness issued and (iii) the fair market value of any other consideration, including equity, issued. The Code provides that a debtor whose debt is discharged pursuant to a confirmed chapter 11 plan does not recognize taxable CODI but must reduce certain of its tax attributes by the amount of the CODI excluded from taxable income. The reduction in the Company's tax attributes for excluded CODI will not be effected until after the determination of Company's tax liability for the tax year ending December 31, 2018. As provided by Section 382 of the Code and similar state provisions, utilization of certain tax attributes may be subject to substantial annual limitations due to an ownership change in the Company. Under the rules, statutorily defined ownership changes may limit the amount of tax attributes that can be utilized annually to offset future taxable income and tax, respectively. In general, an ownership change, as defined by Section 382 for federal income tax purposes, results from transactions that increase the ownership of statutorily defined 5% stockholders in the stock of a corporation by more than 50% in the aggregate over a testing period, generally three years . The Company experienced an ownership change in connection with the Company's emergence from the Chapter 11 Case on February 9, 2018. The Company currently expects to apply the rules under Section 382(l)(5) of the Code and the Treasury regulations thereunder that would allow the Company to mitigate the limitations imposed under Section 382 with respect to the Company's remaining tax attributes and the Company’s deferred tax assets and liabilities have been computed on such basis. However, the application of such provision remains subject to examination by the IRS. Taxpayers who qualify for this provision may, at their option, elect not to apply it. If such provision does not apply, the Company's ability to realize the value of its tax attributes would be subject to limitation and the amount of its deferred tax assets and liabilities may differ. Also, an ownership change subsequent to the Company's emergence from bankruptcy could severely limit or effectively eliminate its ability to realize the value of its tax attributes. The Company estimates that a portion of the NOLs disclosed in its Annual Report on Form 10-K for the year ended December 31, 2017 and the entire tax loss generated during the December 31, 2018 tax year will be eliminated as a result of the consummation of the Company's Prepackaged Plan. These estimates are subject to revision through the filing of the tax returns for the Successor period ending December 31, 2018. |
Equity and Earnings (Loss) Per
Equity and Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Equity and Earnings (Loss) Per Share Disclosure | Equity and Earnings (Loss) Per Share On the Effective Date, all shares of the Predecessor common stock were canceled and 4,252,500 shares of the Successor common stock, par value $0.01 per share, were issued to the previous shareholders of common stock and Convertible Noteholders. The Company reserved 3,193,750 shares of common stock for issuance under an equity incentive plan. On the Effective Date, the Company issued 100,000 shares of Mandatorily Convertible Preferred Stock to the Senior Noteholders, which are mandatorily convertible into 11,497,500 shares of common stock (a conversion multiple of 114.9750 ) upon the earliest of (i) February 9, 2023, (ii) at any time following one year after the Effective Date, the time that the volume weighted-average pricing of the common stock exceeds 150% of the conversion price per share of $8.6975 , subject to adjustment as described in the Articles of Amendment and Restatement, for at least 45 trading days in a 60 consecutive trading day period, including each of the last 20 days in such 60 consecutive trading day period, and (iii) a change of control transaction in which the consideration paid or payable per share of common stock is greater than or equal to the conversion price per share, which, subject to adjustment as described in the Articles of Amendment and Restatement, is $8.6975 . In the event of a voluntary or involuntary liquidation, winding-up or dissolution of the Company, each holder of Mandatorily Convertible Preferred Stock will be entitled to receive the greater of (i) a liquidation preference per share of Mandatorily Convertible Preferred Stock, prior to any distribution with respect to any other equity security of the Company, equal to the Liquidation Preference, and (ii) the amount payable per share, participating on an “as converted” basis, upon liquidation to the holders of the Successor common stock. The “Liquidation Preference” equals (i) the face amount of the Mandatorily Convertible Preferred Stock, increased by (ii) the amount of interest that would have accumulated on the face amount of the Mandatorily Convertible Preferred Stock up to (but excluding) the date of any liquidation, winding-up or dissolution of the Company, compounding quarterly at a rate of 7% per annum. Thereafter, holders of Mandatorily Convertible Preferred Stock will have no right or claim to the remaining assets, if any, of the Company. Further, on the Effective Date, the Company issued to the previous shareholders of common stock, as well as the Convertible Noteholders, Series A Warrants to purchase up to an aggregate of 7,245,000 shares of common stock at $20.63 per share and Series B Warrants to purchase up to an aggregate of 5,748,750 shares of common stock at $28.25 per share. All unexercised warrants expire and the rights of the warrant holders to purchase shares of common stock terminate on February 9, 2028, at 5:00 p.m., Eastern Standard Time, which is the 10th anniversary of the Effective Date. The estimated fair values of the Series A and B Warrants, on the Effective Date, were determined to be $1.68 and $0.94 per warrant, respectively, and are classified within additional paid-in capital on the consolidated balance sheets. Rights Agreement The Company had previously adopted the Rights Agreement, dated as of June 29, 2015, and subsequently amended and restated on November 11, 2016 and further amended on November 9, 2017 and February 9, 2018, which provided registered holders of common stock of Walter Investment Management Corp. with one preferred stock purchase right per share of common stock, entitling the holder to purchase from the Company one one-thousandth of a fully paid non-assessable share of their junior participating preferred stock. The Rights Agreement provided that if any person or group of persons, excluding certain exempted persons, acquired 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 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. The Rights Agreement was scheduled to expire on November 11, 2018 or upon the earlier occurrence of certain events, subject to extension by the Board of Directors or exchange of rights by the Company. Termination of Rights Agreement On the Effective Date, the Company and Computershare entered into Amendment No. 2 to the Rights Agreement, which accelerated the scheduled expiration date of the Rights (as defined in the Rights Agreement) to the Effective Date. The Rights issued pursuant to the Rights Agreement, which were also canceled by operation of the Prepackaged Plan, have expired and are no longer outstanding, and the Rights Agreement has terminated. In connection with the adoption of the Rights Agreement, the Company filed articles supplementary with the State Department of Assessments and Taxation of Maryland, setting forth the rights, powers, and preferences of the Company’s junior participating preferred stock issuable upon exercise of the rights. The cancellation of all existing equity interests by operation of the Prepackaged Plan included the cancellation of any rights issued under the Rights Agreement. In addition, on the Effective Date, the Company filed Articles of Amendment with the State Department of Assessments and Taxation of Maryland, which among other things, served to eliminate the Company’s junior participating preferred stock. The Company’s Articles of Amendment and Restatement, adopted on the Effective Date, include transfer restriction provisions intended to protect the tax benefits described above. Registration Rights Agreement On the Effective Date and pursuant to the Prepackaged Plan, the Company entered into a Registration Rights Agreement that provided certain registration rights to certain parties (together with any person or entity that becomes a party to the Registration Rights Agreement pursuant to the terms thereof) that received shares of the Company’s common stock, warrants and Mandatorily Convertible Preferred Stock on the Effective Date as provided in the Prepackaged Plan. The Registration Rights Agreement provides such persons with registration rights for the holders’ registrable securities (as defined in the Registration Rights Agreement). Pursuant to the Registration Rights Agreement, the Company agreed to file, within 60 days of the receipt of a request by holders of at least 40% of the registrable securities, an initial shelf registration statement covering resales of the registrable securities held by the holders. Subject to limited exceptions, the Company is required to maintain the effectiveness of any such registration statement until the earlier of (i) three years following the Effective Date and (ii) the date that all registrable securities covered by the shelf registration statement are no longer registrable securities. In addition, holders with rights under the Registration Rights Agreement beneficially holding 10% or more of the common stock have the right to a Demand Registration to effect the registration of any or all of the registrable securities and/or effectuate the distribution of any or all of their registrable securities by means of an underwritten shelf takedown offering. The Company is not obligated to effect more than three Demand Registrations, and it need not comply with such a request if (i) the aggregate gross proceeds from such a sale will not exceed $25 million , unless the Demand Registration includes all of the then-outstanding registrable securities or (ii) a registration statement shall have previously been declared effective by the SEC within 90 days preceding the date of such request. Holders with rights under the Registration Rights Agreement also have customary piggyback registration rights, subject to the limitations set forth in the Registration Rights Agreement. These registration rights are subject to certain conditions and limitations, including the right of the underwriters to limit the number of shares to be included in a registration statement and the Company’s right to delay or withdraw a registration statement under certain circumstances. The Company will generally pay the registration expenses in connection with its obligations under the Registration Rights Agreement, regardless of whether a registration statement is filed or becomes effective. The registration rights granted in the Registration Rights Agreement are subject to customary indemnification and contribution provisions, as well as customary restrictions such as blackout periods. 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): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Numerator for basic and diluted earnings (loss) per share Net income (loss) available to common stockholders (numerator) $ (54,149 ) $ 521,007 $ 4,508 Denominator Weighted-average common shares outstanding (Basic denominator) 4,253 37,374 36,412 Effect of dilutive securities: RSUs — 50 375 Stock options — — 25 Weighted-average common shares outstanding (Dilutive denominator) 4,253 37,424 36,812 The Company’s Mandatorily Convertible Preferred Stock are considered to be participating securities. During periods of net income, the calculation of earnings per share for common stock is adjusted to exclude the income attributable to the participating securities from the numerator and exclude the dilutive impact of those shares from the denominator. During periods of net loss, as was the case for the period from February 10, 2018 through March 31, 2018 , no effect is given to the participating securities because they do not share in the losses of the Company. For periods in which there is income, certain securities would be antidilutive to the diluted earnings per share calculation. The following table summarizes securities that could potentially dilute earnings per share in the future but have been excluded from the computation of dilutive earnings per share in the periods that the Company has earnings (in thousands): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Outstanding share-based compensation awards Stock options (1) — 3,533 3,412 Performance shares (2) — — 183 Restricted stock units — 327 63 Assumed conversion of Convertible Notes — 4,932 4,932 Assumed conversion of Convertible Preferred Shares 11,490 — — Outstanding Series A and B Warrants 12,994 — — __________ (1) All antidilutive stock options at February 9, 2018 and March 31, 2017 were out-of-the-money. There were no stock options granted during the period from February 10, 2018 through March 31, 2018 . (2) Performance shares represented the number of shares that were expected to be issued based on the performance percentage as of the end of the reporting periods above. The outstanding Series A and B Warrants were antidilutive when calculating earnings per share when the Company's average stock price was less than $20.63 and $28.25 , respectively. Upon exercise of warrants, the Company shall either deliver, against payment of the exercise price, a number of shares of common stock equal to the number of warrants exercised, or, if a cashless exercise is elected, the net share settlement amount of common stock equal to number of shares of common stock calculated by dividing the product of the number of shares of common stock underlying the warrants multiplied by the fair market value less the exercise price, by the fair market value. The Convertible Notes were antidilutive when calculating earnings per share when the Company's average stock price was less than $58.80 . Upon conversion of the Convertible Notes, the Company may have paid or delivered, 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, 2018 | |
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. 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. The Company no longer has any reverse loans remaining in its originations pipeline and has finalized the shutdown of the reverse mortgage originations business. The Company will continue to fund undrawn tails 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 corporate expenses, in Corporate and Other. Intersegment revenues and expenses have been eliminated. Effective January 1, 2018, the Company no longer allocates corporate overhead, including depreciation and amortization, to its operating segments. These amounts are now included in the Corporate and Other non-reportable segment. Prior year balances have been restated to conform to current year presentation . Successor For the Period From February 10, 2018 Through March 31, 2018 Servicing Originations Reverse Corporate and Other Eliminations Total Total revenues (1)(2) $ 56,868 $ 31,441 $ 4,836 $ 171 $ (2,101 ) $ 91,215 Income (loss) before income taxes 2,133 (11,782 ) (11,669 ) (32,642 ) — (53,960 ) March 31, 2018 Total assets $ 2,641,280 $ 992,729 $ 9,892,564 $ 389,536 $ (187,411 ) $ 13,728,698 Predecessor For the Period From January 1, 2018 Through February 9, 2018 Servicing Originations Reverse Corporate and Other Eliminations Total Total revenues (1)(2) $ 145,551 $ 29,885 $ 13,207 $ 89 $ (1,459 ) $ 187,273 Income (loss) before income taxes 69,614 7,977 (1,133 ) 444,531 — 520,989 Predecessor For the Three Months Ended March 31, 2017 Servicing Originations Reverse Corporate and Other Eliminations Total Total revenues (1)(2) $ 147,780 $ 80,808 $ 22,493 $ 510 $ (6,306 ) $ 245,285 Income (loss) before income taxes 48,362 16,328 (2,016 ) (58,288 ) — 4,386 __________ (1) The Servicing segment recorded intercompany servicing revenue and fees from activity with the Originations segment and the Corporate and Other non-reportable segment of $0.9 million , $0.8 million and $2.9 million for the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively . Included in these amounts are late fees that were waived as an incentive for borrowers refinancing their loans of $0.2 million , $0.3 million and $1.0 million for the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively , which reduced net gains on sales 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 $1.4 million , $0.9 million and $4.4 million for the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingencies Mandatory Clean-Up Call and Letter of Credit Reimbursement Obligation Historically, the Company was obligated to exercise the mandatory clean-up call obligations assumed as part of a prior agreement to acquire the rights to service the loans in the Non-Residual Trusts. The Company was required to call these securitizations when the principal amount of each loan pool falls to 10% or below of the original principal amount. On October 10, 2017, the Company entered into a Clean-up Call Agreement with a counterparty. Pursuant to the Clean-up Call Agreement, the Company paid an inducement fee in the amount of $36.5 million to the counterparty, which was deferred and is being amortized as the counterparty executes the clean-up calls per the agreement. With the execution of the Clean-Up Call Agreement, the counterparty assumed the Company’s mandatory obligation to exercise the clean-up calls for the remaining securitization trusts. In connection with the exercise of each clean-up call, the counterparty agreed to reimburse the Company for certain outstanding advances previously made by the Company with respect to the related trusts, up to an aggregate amount of approximately $6.4 million for the eight remaining trusts. The Clean-up Call Agreement inducement fee had a balance of $28.2 million at March 31, 2018 , which was recorded within other assets on the consolidated balance sheets. As part of an agreement to service the loans in the original eleven securitization trusts and as a result of the Clean-up Call Agreement, the Company has an obligation to reimburse a third party for amounts drawn on the LOCs in excess of $17.0 million in the aggregate related to the seven remaining consolidated securitization trusts from July 1, 2017 through each individual call date. The total draws on the LOCs was $11.0 million at March 31, 2018 . Unfunded Commitments Reverse Mortgage Loans At March 31, 2018 , the Company had floating-rate reverse loans in which the borrowers have additional borrowing capacity of $1.0 billion and similar commitments on fixed-rate reverse loans of $0.2 million , primarily in the form of undrawn lines-of-credit. The borrowing capacity includes $1.0 billion that was available to be drawn by borrowers at March 31, 2018 and $0.6 million in capacity that will become eligible to be drawn by borrowers through the twelve months ending March 31, 2019, assuming the loans remain performing. In addition, the Company has other commitments of $25.4 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. Mortgage Loans The Company has short-term commitments to lend $1.5 billion and commitments to purchase loans totaling $25.0 million at March 31, 2018 . In addition, the Company had commitments to sell $2.1 billion and purchase $440.5 million in mortgage-backed securities at March 31, 2018 . 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. HUD reimburses the Company for the outstanding principal balance on the loan up to the maximum claim amount. The Company bears the risk of exposure if the amount of the outstanding principal balance on a loan exceeds the maximum claim amount. Recent regulatory changes introduced by HUD increased the requirements for completing an assignment to HUD. These new requirements have increased the time interval between when a loan is repurchased and when the assignment claim is filed with HUD, and inability to meet such requirements could preclude assignment. During this period, accruals for interest, HUD-required mortgage insurance payments, and borrower draws may cause the unpaid balance on the loan to increase and ultimately exceed the maximum claim amount. 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 Ginnie Mae loans. Given continued growth in the number and amount of reverse loan repurchases, the Company may continue to seek additional, or expansion of existing, master repurchase or similar agreements, may seek to access the securitization market to provide financing capacity for future required loan repurchases, and/or may seek to sell previously repurchased HECMs. 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. The Company repurchased $134.6 million , $257.1 million and $226.1 million in reverse loans and real estate owned from securitization pools during the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively . At March 31, 2018 , the Company had repurchased reverse loans and real estate owned totaling $1.0 billion , with a fair value of $996.8 million , and unfunded commitments to repurchase reverse loans and real estate owned of $141.4 million . 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, 2018 , the Company’s maximum exposure to repurchases due to potential breaches of representations and warranties was $69.3 billion , and was based on the original unpaid principal balance of loans sold from the beginning of 2013 through March 31, 2018 , 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 $16.0 million at March 31, 2018 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 $99.5 million at March 31, 2018 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. The Company recorded (reduced) a provision, net of expected third-party recoveries, related to the curtailment obligation liability of $(3.5) million and $0.4 million during the period from February 10, 2018 through March 31, 2018 and the period from January 1, 2018 through February 9, 2018, respectively . The Company has potential estimated maximum financial statement exposure for an additional $150.4 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 $38.1 million at March 31, 2018 related to sales of servicing rights, advance curtailment exposure and 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, 2018 , the Company’s recorded reserves associated with legal and regulatory contingencies for which a loss is probable and can be reasonably estimated were approximately $33 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 $13 million at March 31, 2018 . 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. A federal securities fraud complaint was filed against the Company, George M. Awad, Denmar J. Dixon, Anthony N. Renzi, and Gary L. Tillett on March 16, 2017. The case, captioned Courtney Elkin, et al. vs. Walter Investment Management Corp., et al. , Case No. 2:17-cv-02025-JCJ, is pending in the Eastern District of Pennsylvania. The court has appointed a lead plaintiff in the action who filed an amended complaint on September 15, 2017. The amended complaint seeks monetary damages and asserts claims under Sections 10(b) and 20(a) of the Exchange Act during a class period alleged to begin on August 9, 2016 and conclude on August 1, 2017. The amended complaint alleges that: (i) defendants made material misstatements about the value of the Company's deferred tax assets; (ii) the material misstatement about the value of the Company's deferred tax assets required the Company to restate certain financials in the Quarterly Reports on Form 10-Q for the periods ended June 30, 2016, September 30, 2016 and March 31, 2017 and the Annual Report on Form 10-K for the year ended December 31, 2016, and caused the Company to violate the financial covenants and obligations in agreements with the Company's lenders and GSEs; and (iii) defendants made material misstatements concerning the Company's initiatives to deleverage the Company's capital structure. On November 3, 2017, the lead plaintiff voluntarily dismissed defendant Denmar J. Dixon from the action. On November 14, 2017, the remaining defendants moved to dismiss the amended complaint. From December 1, 2017 to February 9, 2018, the action was stayed pursuant to section 362 of the Bankruptcy Code. On February 15, 2018, the parties reached an agreement in principle to settle the action for $2.95 million subject to the negotiation of a formal settlement agreement, notice to the alleged class, and court approval. The settlement, if completed, is to be paid in part by the Company and in part by the Company's directors’ and officers’ insurance carrier. A stockholder derivative complaint purporting to assert claims on behalf of the Company was filed against certain current and former members of the Board of Directors on June 22, 2017. The case, captioned Michael E. Vacek, Jr., et al. vs. George M. Awad, et al ., Case No. 2:17-cv-02820-JCJ, is pending in the Eastern District of Pennsylvania. Plaintiff filed an amended complaint in the action on September 13, 2017. The amended complaint seeks monetary damages for the Company and equitable relief and asserts a claim for breach of fiduciary duty arising out of: (i) a material weakness in the Company's internal controls over financial reporting related to operational processes associated with Ditech Financial default servicing activities, including identifying foreclosure tax liens and resolving such liens efficiently, foreclosure related advances, and the processing and oversight of loans in bankruptcy status, which resulted in several adjustments to reserves during the fourth quarter of 2016; (ii) an accounting error that caused an overstatement of the value of the Company's deferred tax assets; and (iii) subpoenas seeking documents relating to RMS’s origination and underwriting of reverse mortgages and loans. The Company and the defendants moved to dismiss the amended complaint on October 5, 2017. From December 1, 2017 to February 9, 2018, the action was stayed pursuant to section 362 of the Bankruptcy Code. On April 26, 2018, the Court denied the motion to dismiss. On May 9, 2018, the Company and the defendants moved for reconsideration or certification of the Court’s denial of the motion to dismiss. 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 Alabama 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 Alabama 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 Alabama 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. |
Business and Basis of Present30
Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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. 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 for the year ended December 31, 2017 . |
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 revenues 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. |
Changes in Presentation | Changes in Presentation Certain prior year amounts have been reclassified to conform to current year presentation. |
Revenue Recognition | Revenue Recognition 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. This guidance was effective for the Company beginning January 1, 2018. The Company adopted the guidance using the modified retrospective method. The Company has reviewed the scope of the guidance and monitored the determinations of the FASB Transition Resource Group and concluded that 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 remained unchanged. The Company has determined that certain immaterial revenue streams are within the scope of the guidance; however, the guidance did not impact current revenue recognition patterns for these in scope revenue streams and contracts. Accordingly, the adoption of this guidance did not have a significant impact on the consolidated financial statements. |
Recent Accounting Guidance | Recent Accounting Guidance 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 was effective for the Company beginning January 1, 2018. The adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. 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 continues to evaluate 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. Based on the Company's current methodologies for accounting for financial instruments, the adoption of this guidance is not expected to 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 and composition 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 was effective for the Company beginning January 1, 2018. The adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. 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 was effective for the Company beginning January 1, 2018. The adoption of this guidance did not have a significant impact on the consolidated financial statements. 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 and ending cash amounts. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and cash equivalents in the statement of cash flows. This guidance was effective for the Company beginning January 1, 2018, and was applied retrospectively. The adoption impacted the presentation of the cash flows, but did not otherwise have a material impact on the consolidated results of operations or financial condition. For the three months ended March 31, 2017, cash flows provided by operating activities decreased by $18.6 million , cash flows provided by investing activities increased by $1.9 million , and cash flows used in financing activities increased by $13.4 million . 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 was effective for the Company beginning January 1, 2018. The Company will apply this guidance to its assessment of applicable transactions, such as acquisitions and disposals of assets or businesses, consummated after the adoption date. The adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. 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 has adopted this guidance to impairment tests effective January 1, 2018. 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 was effective for the Company beginning January 1, 2018. The adoption of this guidance resulted in changes to the statement of financial position, including (i) a reduction of $115.0 million in residential loans at amortized cost, net, (ii) an increase of $123.1 million in other assets, (iii) an increase of $40.7 million in accumulated deficit and (iv) an increase of $48.7 million in accrued liabilities under the modified retrospective adoption method. Additionally, the pattern of recognition of certain interest payments will change for properties where the Company finances sales of real estate owned and the Company has determined that collection of substantially all consideration is not yet probable. In May 2017, the FASB issued an accounting standards update that amends the guidance on share-based compensation. The update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. This guidance was effective for the Company beginning January 1, 2018. The new guidance was applied prospectively to awards modified on or after the adoption date. The adoption of this guidance did not have a significant impact on the Company’s consolidated financial statements. In March 2018, the FASB issued an accounting standards update that provides guidance related to accounting for the income tax effects of the Tax Act. This guidance provides clarification to address situations where a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting under GAAP for certain income tax effects of the Tax Act. To the extent that a registrant's accounting for certain income tax effects of the Tax Act is incomplete, a reasonable estimate may be determined for those effects in the first reporting period in which the registrant was able to determine such reasonable estimate. A measurement period of one year from the enactment date of the Tax Act is provided whereby a registrant may adjust such provisional amounts. If a provisional amount cannot be determined in the initial period of enactment, the registrant may continue to account for taxes in accordance with tax laws that were in effect immediately prior to the Tax Act enactment date until such point in time that a reasonable estimate can be made. The Company's preliminary estimate of the Tax Act and the remeasurement of deferred tax assets and liabilities is subject to the finalization of management’s analysis related to certain matters, such as developing interpretations of the provisions of the Tax Act, changes to certain estimates and the filing of its tax returns. U.S. Treasury regulations, administrative interpretations or court decisions interpreting the Tax Act may require further adjustments and changes in the Company's estimates. The final determination of the Tax Act and the remeasurement of the Company's deferred assets and liabilities will be completed as additional information becomes available, but no later than one year from the enactment of the Tax Act. |
Emergence from Reorganization31
Emergence from Reorganization Proceedings (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Reorganizations [Abstract] | |
Schedule Of Reorganization Items | The Company's reorganization items consists of the following (in thousands): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 Gain on cancellation of corporate debt $ — $ 556,937 Less: issuance of new equity to Convertible and Senior Noteholders — 153,764 Net gain on cancellation of corporate debt — 403,173 Less: Legal and professional fees (1) — 12,461 Other expenses 110 3,378 Total expenses 110 15,839 Total reorganization items (110 ) 387,334 Fresh start accounting adjustments — 77,229 Reorganization items and fresh start accounting adjustments $ (110 ) $ 464,563 __________ (1) Professional fees are directly related to the reorganization. |
Schedule Of Liabilities Subject To Compromise | Liabilities subject to compromise consists of the following (in thousands): Predecessor December 31, 2017 Senior Notes $ 538,662 Convertible Notes 242,468 Accrued interest (1) 25,807 Total liabilities subject to compromise $ 806,937 __________ (1) Represents accrued interest on the Senior Notes and Convertible Notes as of November 30, 2017, the date the Company filed the Bankruptcy Petition. As interest on the Senior Notes and Convertible Notes subsequent to November 30, 2017 was not expected to be an allowed claim, this amount excludes interest that would have been accrued subsequent to November 30, 2017. For the period from January 1, 2018 through February 9, 2018, interest expense reported on the consolidated statement of comprehensive income (loss) excludes $5.9 million of interest on the Senior Notes and Convertible Notes that otherwise would have been accrued for the period. |
Schedule of Fresh-Start Adjustments | The adjustments set forth in the following table at February 9, 2018 reflect the effect of the consummation of the transactions contemplated by the Prepackaged Plan (reflected in the column “Reorganization Adjustments”) as well as fair value adjustments as a result of the adoption of fresh start accounting (reflected in the column “Fresh Start Adjustments”) (in thousands). Predecessor Reorganization Adjustments Fresh Start Adjustments Successor ASSETS Cash and cash equivalents $ 182,462 $ (39,039 ) (a) $ — $ 143,423 Restricted cash and cash equivalents 105,041 — — 105,041 Residential loans at amortized cost, net 787,860 — (317,189 ) (c) 470,671 Residential loans at fair value 10,423,633 — 304,051 (c) 10,727,684 Receivables, net 151,892 — (1,740 ) (d) 150,152 Servicer and protective advances, net 748,952 — (24,367 ) (e) 724,585 Servicing rights, net 744,724 — 5,432 (f) 750,156 Goodwill 47,747 — (38,787 ) (g) 8,960 Intangible assets, net 8,532 — 35,468 (h) 44,000 Premises and equipment, net 46,873 — 33,739 (i) 80,612 Deferred tax assets, net 1,273 44 (b) — 1,317 Other assets 392,205 — 3,333 (j) 395,538 Total assets $ 13,641,194 $ (38,995 ) $ (60 ) $ 13,602,139 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Payables and accrued expenses $ 993,805 $ (1,540 ) (a) $ (7,444 ) (k) $ 984,821 Servicer payables 109,404 — — 109,404 Servicing advance liabilities 387,813 — — 387,813 Warehouse borrowings 1,007,310 — — 1,007,310 Corporate debt 1,142,941 212,500 (a)(b) (75,034 ) (l) 1,280,407 Mortgage-backed debt 727,909 — 6,246 (m) 734,155 HMBS related obligations at fair value 8,913,052 — — 8,913,052 Deferred tax liabilities, net 866 (77 ) (b) — 789 Total liabilities not subject to compromise 13,283,100 210,883 (76,232 ) 13,417,751 Liabilities subject to compromise 806,937 (806,937 ) (b) — — Total liabilities 14,090,037 (596,054 ) (76,232 ) 13,417,751 Preferred stock — 1 (b) — 1 Common stock 374 (331 ) (b) — 43 Additional paid-in capital 598,731 (414,387 ) (b) — 184,344 Accumulated deficit (1,049,005 ) 971,776 (b) 77,229 (b) — Accumulated other comprehensive income 1,057 — (1,057 ) (n) — Total stockholders' equity (deficit) (448,843 ) 557,059 76,172 184,388 Total liabilities and stockholders' equity (deficit) $ 13,641,194 $ (38,995 ) $ (60 ) $ 13,602,139 __________ Reorganization Adjustments: (a) Represents Effective Date term loan payment, inclusive of payment of interest accrued. (b) On the Effective Date, all of the Company's obligations under the previously outstanding Convertible Notes and Senior Notes listed above were extinguished. Previously outstanding debt interests were exchanged for Second Lien Notes, common stock, Mandatorily Convertible Preferred Stock, Series A Warrants and/or Series B Warrants. Accordingly: (i) new Second Lien Notes and Warrants are recorded, (ii) Liabilities subject to compromise was eliminated, (iii) Predecessor common stock, additional paid in capital, retained deficit, and accumulated other comprehensive income are set to zero, and (iv) Successor common stock, additional paid in capital, and preferred stock is recorded. The resulting total stockholders' equity balance of the Successor of $184.4 million represents the estimated fair value of total stockholders' equity at the Effective Date as determined with the assistance of an independent valuation specialist. Fresh Start Accounting Adjustments: (c) A successor emerging entity applying fresh start accounting upon emergence from bankruptcy may select new accounting policies upon emergence from bankruptcy protection. Prior to the Effective Date, loans of Residual Trusts were carried at amortized cost. In connection with fresh start reporting, the Company made an election to record loans of the Residual Trusts at fair value on a recurring basis. Accordingly, adjustments to residential loans carried at amortized cost, net and residential loans at fair value represent: (i) reclassification of $317.2 million loans of the Residual Trusts from residential loans carried at amortized cost, net to residential loans at fair value and (ii) a $13.1 million reduction of residential loans at fair value to record such Residual Trusts to fair value. (d) Represents adjustment to decrease the carrying value of holdback receivables carried at amortized cost by $1.7 million to reflect the estimated fair value based on the net present value of expected cash flows. Other remaining receivables, net are short-term in nature and, as a result, carrying value approximates fair value. (e) Represents adjustment to reflect estimated fair value based on the net present value of expected cash flows. (f) Represents adjustment to increase the carrying value of servicing rights carried at amortized cost to reflect estimated fair value. (g) The goodwill of the Predecessor has been eliminated and the fair market value of the assets in excess of the reorganization value has been allocated to assets and liabilities as shown above. (h) Represents adjustment to record intangible assets. The fair value of intangible assets was estimated under the relief-from-royalty and lost profits methods. Resulting intangible assets at the Effective Date are comprised of institutional and customer relationships of $24.0 million and trade names of $20.0 million. Refer to Note 11 for additional information. (i) Represents adjustment to increase the carrying value of premises and equipment, net to estimated fair value, reflecting the implied value of internally developed technology. The fair value of internally developed technology was estimated using the relief-from-royalty approach. (j) Represents adjustment to (i) increase the carrying value of real estate owned, net carried at the lower of cost or net realizable value by $5.6 million to estimated fair value and to (ii) eliminate previously existing unamortized deferred debt issuance costs of $2.3 million associated with servicing advance liabilities with line-of-credit arrangements and the 2013 Revolver. The Company had previously elected and disclosed that deferred debt issuance costs associated with revolving facilities were recorded in other assets on the consolidated balance sheets. (k) Represents adjustment to remove liabilities not intended to cash settle, primarily related to liabilities in connection with lease obligations. (l) Represents adjustment to decrease the carrying value of the 2013 Term Loan from amortized cost, net to estimated fair value. The reduction includes the elimination of previous unamortized issuance discounts and unamortized debt issuance costs prior to recording the 2013 Term Loan at estimated fair value. Additionally, represents adjustment of $60.5 million to decrease the carrying value of the Second Lien Notes issued at par value in connection with the Prepackaged Plan to estimated fair value. (m) Represents adjustment to increase the carrying value of mortgage back debt associated with the Residual Trusts, carried at amortized cost, net of discounts and deferred debt issuance costs to estimated fair value. (n) Represents elimination of other comprehensive income on available for sale investments and other post-retirement benefits at the Effective Date. Pursuant to fresh start accounting, the Company allocated the determined reorganization value to the Successor Company’s assets at emergence as follows (in thousands): Successor February 10, 2018 Enterprise value $ 1,464,795 Plus: fair value of liabilities 12,137,344 Reorganization value 13,602,139 Less: Fair value of tangible assets 13,508,179 Fair value of developed technology 41,000 Fair value of identifiable intangible assets 44,000 Goodwill $ 8,960 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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): Successor March 31, 2018 Residual Non-Residual Servicer and Protective Advance Financing Facilities Revolving Credit Facilities-Related VIEs Total Assets Restricted cash and cash equivalents $ 13,737 $ 8,476 $ 8,098 $ — $ 30,311 Residential loans at fair value (1) 292,626 293,011 — — 585,637 Receivables, net — 3,484 — 1,369 4,853 Servicer and protective advances, net — — 345,922 — 345,922 Other assets 131,045 1,269 2,370 30,435 165,119 Total assets $ 437,408 $ 306,240 $ 356,390 $ 31,804 $ 1,131,842 Liabilities Payables and accrued liabilities $ 50,191 $ — $ 636 $ — $ 50,827 Servicing advance liabilities — — 315,325 — 315,325 Mortgage-backed debt (1) 381,340 335,848 — — 717,188 Total liabilities $ 431,531 $ 335,848 $ 315,961 $ — $ 1,083,340 __________ (1) In connection with the adoption of fresh start accounting effective February 10, 2018 , the Company changed its method of accounting for the residential loans and mortgage-backed debt of the Residual Trusts from amortized cost to fair value. Predecessor December 31, 2017 Residual Non-Residual Servicer and Protective Advance Financing Facilities Revolving Credit Facilities-Related VIEs Total Assets Restricted cash and cash equivalents $ 12,687 $ 8,020 $ 23,669 $ — $ 44,376 Residential loans at amortized cost, net 424,420 — — — 424,420 Residential loans at fair value — 301,435 — — 301,435 Receivables, net — 5,608 — 216 5,824 Servicer and protective advances, net — — 446,799 — 446,799 Other assets 9,924 1,072 1,301 27,540 39,837 Total assets $ 447,031 $ 316,135 $ 471,769 $ 27,756 $ 1,262,691 Liabilities Payables and accrued liabilities $ 2,178 $ — $ 908 $ — $ 3,086 Servicing advance liabilities (1) — — 444,563 — 444,563 Mortgage-backed debt 387,200 348,682 — — 735,882 Total liabilities $ 389,378 $ 348,682 $ 445,471 $ — $ 1,183,531 __________ (1) The notes outstanding under Servicer and Protective Advance Financing Facilities were acquired by a subsidiary during the fourth quarter of 2017, primarily with proceeds from the Securities Master Repurchase Agreement. These notes are therefore eliminated upon consolidation at December 31, 2017. |
Transfers of Residential Loans
Transfers of Residential Loans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 assets that relate to its continued 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 Servicer and Payables and Accrued Liabilities Total Successor March 31, 2018 $ 395,075 $ 20,395 $ (6 ) $ 415,464 $ 33,089,157 Predecessor December 31, 2017 $ 385,744 $ 30,762 $ (32 ) $ 416,474 $ 36,274,449 |
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): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Cash proceeds received from sales, net of fees $ 1,307,464 $ 1,415,435 $ 5,252,552 Servicing fees collected (1) 15,432 13,884 30,803 Repurchases of previously sold loans (2) 17,892 14,948 17,503 __________ (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. (2) Includes Ginnie Mae buyout loans of $16.9 million , $14.2 million and $13.5 million for the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively . |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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. Successor Predecessor March 31, December 31, Level 2 Assets Mortgage loans held for sale $ 715,560 $ 588,485 Freestanding derivative instruments 3,990 2,757 Level 2 assets $ 719,550 $ 591,242 Liabilities Freestanding derivative instruments $ 3,173 $ 981 Servicing rights related liabilities 6 32 Level 2 liabilities $ 3,179 $ 1,013 Level 3 Assets Reverse loans $ 9,603,314 $ 9,789,444 Mortgage loans related to Non-Residual Trusts 293,011 301,435 Mortgage loans related to Residual Trusts and other loans held for investment (1) 299,558 — Mortgage loans held for sale 67 68 Charged-off loans 48,072 45,800 Receivables related to Non-Residual Trusts 3,484 5,608 Servicing rights carried at fair value 675,176 714,774 Freestanding derivative instruments (IRLCs) 26,746 26,637 Level 3 assets $ 10,949,428 $ 10,883,766 Liabilities Freestanding derivative instruments (IRLCs) $ 227 $ 269 Mortgage-backed debt related to Non-Residual Trusts 335,848 348,682 Mortgage-backed debt related to Residual Trusts (1) 381,340 — HMBS related obligations 8,798,059 9,175,128 Level 3 liabilities $ 9,515,474 $ 9,524,079 __________ (1) In connection with the adoption of fresh start accounting effective February 10, 2018 , the Company elected to change its method of accounting for mortgage loans related to Residual Trusts and other loans held for investment as well as mortgage-backed debt related to Residual Trusts from amortized cost to fair value. |
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): Successor For the Period From February 10, 2018 Through March 31, 2018 Fair Value Total Gains (Losses) Included in Comprehensive Loss Purchases and Other Sales Originations / Issuances Settlements Fair Value Assets Reverse loans $ 9,702,263 $ 45,857 $ — $ — $ 37,443 $ (182,249 ) $ 9,603,314 Mortgage loans related to Non-Residual Trusts 299,790 2,520 — — — (9,299 ) 293,011 Mortgage loans related to Residual Trusts and other loans held for investment 304,051 (809 ) — — — (3,684 ) 299,558 Mortgage loans held for sale 67 20 — — — (20 ) 67 Charged-off loans 50,299 3,020 — — — (5,247 ) 48,072 Receivables related to Non-Residual Trusts 4,730 (411 ) — — — (835 ) 3,484 Servicing rights carried at fair value 688,466 (20,298 ) (32 ) — 7,040 — 675,176 Freestanding derivative instruments (IRLCs) 24,460 2,296 — — — (10 ) 26,746 Total assets $ 11,074,126 $ 32,195 $ (32 ) $ — $ 44,483 $ (201,344 ) $ 10,949,428 Liabilities Freestanding derivative instruments (IRLCs) $ (3,023 ) $ 2,796 $ — $ — $ — $ — $ (227 ) Mortgage-backed debt related to Non-Residual Trusts (344,002 ) (1,469 ) — — — 9,623 (335,848 ) Mortgage-backed debt related to Residual Trusts (390,152 ) 1,563 — — — 7,249 (381,340 ) HMBS related obligations (8,913,052 ) (44,968 ) — — (52,983 ) 212,944 (8,798,059 ) Total liabilities $ (9,650,229 ) $ (42,078 ) $ — $ — $ (52,983 ) $ 229,816 $ (9,515,474 ) Predecessor For the Period From January 1, 2018 Through February 9, 2018 Fair Value Total Purchases and Other Sales Originations / Issuances Settlements Fresh Start Accounting Fair Value Assets Reverse loans $ 9,789,444 $ 31,476 $ — $ — $ 33,300 $ (151,957 ) $ — $ 9,702,263 Mortgage loans related to Non-Residual Trusts 301,435 5,690 — — — (7,335 ) — 299,790 Mortgage loans related to Residual Trusts and other loans held for investment — — — — — — 304,051 304,051 Mortgage loans held for sale 68 — — — — (1 ) — 67 Charged-off loans (1) 45,800 8,843 — — — (4,344 ) — 50,299 Receivables related to Non-Residual Trusts 5,608 848 — — — (1,726 ) — 4,730 Servicing rights carried at fair value 714,774 64,663 (7 ) (100,399 ) 9,435 — — 688,466 Freestanding derivative instruments (IRLCs) 26,637 (2,171 ) — — — (6 ) — 24,460 Total assets $ 10,883,766 $ 109,349 $ (7 ) $ (100,399 ) $ 42,735 $ (165,369 ) $ 304,051 $ 11,074,126 Liabilities Freestanding derivative instruments (IRLCs) $ (269 ) $ (2,754 ) $ — $ — $ — $ — $ — $ (3,023 ) Mortgage-backed debt related to Non-Residual Trusts (348,682 ) (2,956 ) — — — 7,636 — (344,002 ) Mortgage-backed debt related to Residual Trusts — — — — — — (390,152 ) (390,152 ) HMBS related obligations (9,175,128 ) (20,900 ) — — (27,881 ) 310,857 — (8,913,052 ) Total liabilities $ (9,524,079 ) $ (26,610 ) $ — $ — $ (27,881 ) $ 318,493 $ (390,152 ) $ (9,650,229 ) __________ (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 $5.7 million during the period from January 1, 2018 through February 9, 2018 . Predecessor 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 . |
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. Successor Predecessor March 31, 2018 February 9, 2018 December 31, 2017 Significant (1)(2) Range of Input (3) Weighted (3) Range of Input (3) Weighted (3) Range of Input (3) Weighted (3) Assets Reverse loans Weighted-average remaining life in years (4) 0.3 - 10.2 3.5 0.3 - 10.2 3.5 0.3 - 10.2 3.8 Conditional repayment rate 12.61% - 71.68% 34.10 % 12.61% - 71.68% 34.43 % 12.61% - 71.68% 30.23 % Discount rate 2.79% - 4.17% 3.59 % 2.79% - 4.17% 3.59 % 3.05% - 4.17% 3.60 % Mortgage loans related to Non-Residual Trusts Conditional prepayment rate 1.98% - 2.51% 2.29 % 1.99% - 2.51% 2.30 % 2.08% - 2.53% 2.34 % Conditional default rate 0.99% - 4.72% 2.53 % 1.05% - 4.70% 2.55 % 1.01% - 4.97% 2.61 % Loss severity 97.71% - 100.00% 99.86 % 96.30% - 100.00% 99.79 % 90.60% - 100.00% 99.46 % Discount rate 8.32% 8.32 % 8.32% 8.32 % 8.32% 8.32 % Mortgage loans related to Residual Trusts and other loans held for investment Conditional prepayment rate 2.66% - 3.52% 3.06 % 2.66% - 3.57% 3.06 % — — Conditional default rate 4.12% - 5.32% 4.53 % 4.13% - 5.32% 4.53 % — — Loss severity 25.00% - 30.00% 28.26 % 27.00% - 30.00% 28.25 % — — Discount rate 8.25% 8.25 % 8.25% 8.25 % — — Mortgage loans held for sale Conditional prepayment rate 4.81% 4.81 % 4.81% 4.81 % 4.81% 4.81 % Conditional default rate 2.46% 2.46 % 2.46% 2.46 % 2.46% 2.46 % Loss severity 99.40% 99.40 % 99.40% 99.40 % 99.40% 99.40 % Discount rate 9.80% 9.80 % 9.80% 9.80 % 9.80% 9.80 % Charged-off loans Collection rate 3.29% - 5.84% 3.42 % 3.42% - 6.05% 3.55 % 2.84% - 4.47% 2.92 % Discount rate 28.00% 28.00 % 28.00% 28.00 % 28.00% 28.00 % Receivables related to Non-Residual Trusts Conditional prepayment rate 2.41% - 3.29% 3.01 % 2.46% - 3.29% 3.02 % 2.49% - 3.01% 2.79 % Conditional default rate 2.06% - 5.75% 3.70 % 1.99% - 5.32% 3.50 % 1.72% - 6.02% 3.61 % Loss severity 96.48% - 100.00% 98.93 % 94.86% - 100.00% 98.89 % 88.88% - 100.00% 97.71 % Discount rate 0.50% 0.50 % 0.50% 0.50 % 0.50% 0.50 % Servicing rights carried at fair value Weighted-average remaining life in years (4) 2.3 - 7.3 5.8 2.4 - 7.5 5.9 2.4 - 7.1 5.6 Discount rate 9.63% - 14.65% 11.79 % 9.63% - 14.62% 11.70 % 9.91% - 14.97% 11.92 % Conditional prepayment rate 6.21% - 27.13% 10.10 % 6.07% - 27.00% 9.70 % 6.80% - 25.85% 11.10 % Conditional default rate 0.09% - 9.87% 0.87 % 0.09% - 10.22% 0.90 % 0.06% - 3.20% 0.91 % Cost to service $62 - $1,260 $134 $62 - $1,260 $137 $62 - $1,260 $136 Interest rate lock commitments Loan funding probability 1.00% - 100.00% 61.69 % 1.00% - 100.00% 62.49 % 1.00% - 100.00% 62.97 % Fair value of initial servicing rights multiple (5) 0.01 - 7.16 3.03 0.02 - 5.64 2.79 0.01 - 5.24 2.74 Successor Predecessor March 31, 2018 February 9, 2018 December 31, 2017 Significant (1)(2) Range of Input (3) Weighted (3) Range of Input (3) Weighted (3) Range of Input (3) Weighted (3) Liabilities Interest rate lock commitments Loan funding probability 24.57% - 100.00% 83.93 % 14.19% - 100.00% 82.62 % 33.64% - 100.00% 84.76 % Fair value of initial servicing rights multiple (5) 0.05 - 6.39 3.46 0.08 - 5.86 3.39 0.24 - 4.92 3.32 Mortgage-backed debt related to Non-Residual Trusts Conditional prepayment rate 2.41% - 3.29% 3.01 % 2.46% - 3.29% 3.02 % 2.49% - 3.01% 2.79 % Conditional default rate 2.06% - 5.75% 3.70 % 1.99% - 5.32% 3.50 % 1.72% - 6.02% 3.61 % Loss severity 96.48% - 100.00% 98.93 % 94.86% - 100.00% 98.89 % 88.88% - 100.00% 97.71 % Discount rate 6.00% 6.00 % 6.00% 6.00 % 6.00% 6.00 % Mortgage-backed debt related to Residual Trusts Conditional prepayment rate 2.66% - 3.52% 3.06 % 2.66% - 3.57% 3.06 % — — Conditional default rate 4.12% - 5.32% 4.53 % 4.13% - 5.32% 4.53 % — — Loss severity 25.00% - 30.00% 28.26 % 27.00% - 30.00% 28.25 % — — Discount rate 6.00% 6.00 % 6.00% 6.00 % — — HMBS related obligations Weighted-average remaining life in years (4) 0.4 - 7.8 3.5 0.2 - 10.1 3.6 0.4 - 7.8 3.7 Conditional repayment rate 12.90% - 86.87% 36.89 % 12.61% - 71.68% 34.45 % 12.90% - 86.87% 32.07 % Discount rate 2.80% - 3.98% 3.43 % 2.80% - 4.21% 3.60 % 3.02% - 3.98% 3.45 % __________ (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): Successor Predecessor March 31, 2018 December 31, 2017 Estimated Unpaid Principal Estimated Unpaid Principal Loans at fair value under the fair value option Reverse loans (1) $ 9,603,314 $ 9,304,402 $ 9,789,444 $ 9,460,616 Mortgage loans held for sale (1) 715,627 694,242 588,553 567,492 Mortgage loans related to Non-Residual Trusts 293,011 332,216 301,435 344,421 Mortgage loans related to Residual Trusts and other loans held for investment 299,558 338,785 — — Charged-off loans 48,072 2,286,135 45,800 2,333,820 Total $ 10,959,582 $ 12,955,780 $ 10,725,232 $ 12,706,349 Debt instruments at fair value under the fair value option Mortgage-backed debt related to Non-Residual Trusts $ 335,848 $ 341,282 $ 348,682 $ 353,262 Mortgage-backed debt related to Residual Trusts 381,340 380,597 — — HMBS related obligations (2) 8,798,059 8,386,951 9,175,128 8,743,700 Total $ 9,515,247 $ 9,108,830 $ 9,523,810 $ 9,096,962 __________ (1) Includes loans that collateralize master repurchase agreements. Refer to Note 16 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: Successor Predecessor March 31, 2018 February 9, 2018 December 31, 2017 Significant Range of Input Weighted Range of Input Weighted Range of Input Weighted Real estate owned, net Loss severity (1) 0.00% - 73.68% 7.38 % 0.00% - 68.66% 7.54 % 0.00% - 78.76% 6.16 % __________ (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. Successor Predecessor March 31, 2018 December 31, 2017 Fair Value Carrying Estimated Carrying Estimated Financial assets Residential loans at amortized cost, net (1) (5) Level 3 $ 7,960 $ 7,718 $ 443,056 $ 432,518 Servicer and protective advances, net Level 3 650,423 649,290 813,433 778,007 Financial liabilities (1) Servicing advance liabilities (2) Level 3 362,598 364,881 478,838 483,462 Corporate debt (3)(4) Level 2 1,263,635 1,295,041 1,994,411 1,553,076 Mortgage-backed debt carried at amortized cost (5) Level 3 — — 387,200 391,539 __________ (1) Excludes loans subject to repurchase from Ginnie Mae and the related liability. (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) At December 31, 2017, the carrying amount of corporate debt is net of the 2013 Revolver deferred issuance costs, which are recorded in other assets on the consolidated balance sheet. (4) Includes liabilities subject to compromise with a carrying value of $781.1 million and an estimated fair value of $358.8 million at December 31, 2017. (5) In connection with the adoption of fresh start accounting effective February 10, 2018 , the Company changed its method of accounting for the residential loans and mortgage-backed debt of the Residual Trusts from amortized cost to fair value. |
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): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Realized gains on sales of loans $ 872 $ 3,582 $ 26,085 Change in unrealized gains on loans held for sale 8,712 (9,343 ) 19,658 Gains (losses) on interest rate lock commitments 5,092 (4,926 ) (4,526 ) Gains (losses) on forward sales commitments (12,713 ) 24,570 (20,548 ) Gains (losses) on MBS purchase commitments 12,705 (872 ) 11,884 Capitalized servicing rights 11,557 13,227 32,384 Provision for repurchases (822 ) (729 ) (1,795 ) Interest income 3,085 2,298 11,203 Other 30 156 11 Net gains on sales of loans $ 28,518 $ 27,963 $ 74,356 |
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): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Interest income on reverse loans $ 61,942 $ 47,116 $ 113,302 Change in fair value of reverse loans (16,085 ) (15,640 ) (70,690 ) Net fair value gains on reverse loans 45,857 31,476 42,612 Interest expense on HMBS related obligations (1) (52,079 ) (40,427 ) (102,436 ) Change in fair value of HMBS related obligations 7,111 19,527 74,526 Net fair value losses on HMBS related obligations (44,968 ) (20,900 ) (27,910 ) Net fair value gains on reverse loans and related HMBS obligations $ 889 $ 10,576 $ 14,702 __________ (1) Excludes interest expense related to the warehouse facilities used to fund Ginnie Mae buyouts. |
Freestanding Derivative Finan35
Freestanding Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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): Successor Predecessor March 31, 2018 December 31, 2017 Notional/ Fair Value Notional/ Fair Value Derivative Derivative Derivative Derivative Interest rate lock commitments $ 1,511,297 $ 26,746 $ 227 $ 1,509,712 $ 26,637 $ 269 Forward sales commitments 2,111,834 3,278 3,103 1,724,500 2,224 903 MBS purchase commitments 440,500 712 70 298,000 533 78 Total derivative instruments $ 30,736 $ 3,400 $ 29,394 $ 1,250 Cash margin $ 40 $ 1,551 $ — $ 1,533 |
Residential Loans at Amortize36
Residential Loans at Amortized Cost, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Residential Loans at Amortized Cost, Net | Residential loans at amortized cost, net are comprised of the following components (in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Unpaid principal balance (1) $ 474,154 $ 1,021,172 Unamortized discounts and other cost basis adjustments, net (2) (5,758 ) (29,371 ) Allowance for loan losses (706 ) (6,347 ) Residential loans at amortized cost, net (3) $ 467,690 $ 985,454 __________ (1) Includes loans subject to repurchase from Ginnie Mae of $459.7 million and $542.4 million at March 31, 2018 and December 31, 2017 , respectively. (2) Includes $0.1 million and $4.5 million of accrued interest receivable at March 31, 2018 and December 31, 2017 , respectively. (3) Includes $467.7 million and $561.0 million of mortgage loans that are not related to consolidated VIEs at March 31, 2018 and December 31, 2017 , respectively. |
Servicing of Residential Loans
Servicing of Residential Loans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Schedule of Total Servicing Portfolio | Provided below is a summary of the Company’s total servicing portfolio (dollars in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Number Unpaid Principal Number Unpaid Principal Third-party credit owners Capitalized servicing rights 757,398 $ 80,220,588 854,292 $ 93,599,077 Capitalized subservicing (1) 28,311 3,091,623 29,681 3,242,241 Subservicing 767,069 108,156,302 712,040 99,500,678 Total third-party servicing portfolio 1,552,778 191,468,513 1,596,013 196,341,996 On-balance sheet residential loans and real estate owned 80,423 11,383,672 82,480 11,522,817 Total servicing portfolio 1,633,201 $ 202,852,185 1,678,493 $ 207,864,813 __________ (1) Consists of subservicing contracts acquired through business combinations whereby the aggregate benefits from the contract are greater than adequate compensation for performing the servicing. |
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 and, beginning in March 2018, the Corporate and Other non-reportable segment (in thousands): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Servicing fees $ 52,175 $ 52,855 $ 133,393 Incentive and performance fees 7,255 6,019 15,154 Ancillary and other fees (1) 11,756 7,335 23,243 Servicing revenue and fees 71,186 66,209 171,790 Change in fair value of servicing rights (20,343 ) 64,663 (53,516 ) Amortization of servicing rights (2) (3) (2,488 ) (2,187 ) (5,025 ) Change in fair value of servicing rights related liabilities — — (62 ) Net servicing revenue and fees $ 48,355 $ 128,685 $ 113,187 _________ (1) Includes late fees of $8.6 million , $5.1 million and $15.6 million for the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively . (2) Includes amortization of a servicing liability of $0.6 million , $0.6 million and $0.8 million for the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively . (3) Includes impairment of servicing rights and a servicing liability of $1.4 million , $1.6 million and $3.1 million for the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively . |
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): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Mortgage Loan Reverse Loan Mortgage Loan Reverse Loan Mortgage Loan Reverse Loan Balance at beginning of the period $ 57,148 $ 4,542 $ 54,466 $ 4,011 $ 74,621 $ 5,505 Fresh start accounting adjustment — — 4,221 1,211 — — Amortization (1,472 ) (215 ) (944 ) (148 ) (2,256 ) (399 ) Impairment (293 ) (190 ) (595 ) (532 ) (1,376 ) — Balance at end of the period $ 55,383 $ 4,137 $ 57,148 $ 4,542 $ 70,989 $ 5,106 |
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: Successor Predecessor March 31, 2018 February 9, 2018 December 31, 2017 Mortgage Loan Reverse Loan Mortgage Loan Reverse Loan Mortgage Loan Reverse Loan Weighted-average remaining life in years (1) 4.5 2.7 4.5 2.7 4.5 2.8 Weighted-average discount rate 13.00 % 15.00 % 13.00 % 15.00 % 13.00 % 15.00 % Conditional prepayment rate (2) 5.58 % N/A 5.34 % N/A 5.91 % N/A Conditional default rate (2) 2.37 % N/A 2.48 % N/A 2.45 % N/A Conditional repayment rate (3) N/A 37.18 % N/A 36.68 % N/A 36.01 % __________ (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): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Balance at beginning of the period $ 688,466 $ 714,774 $ 949,593 Purchases 36 — 446 Servicing rights capitalized upon sales of loans 12,978 14,493 33,904 Sales (5,893 ) (105,457 ) (94 ) Other (68 ) (7 ) — Change in fair value due to: Changes in valuation inputs or other assumptions (1) (6,517 ) 78,132 (17,530 ) Other changes in fair value (2) (13,826 ) (13,469 ) (35,986 ) Total change in fair value (20,343 ) 64,663 (53,516 ) Balance at end of the period $ 675,176 $ 688,466 $ 930,333 __________ (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. |
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): Successor Predecessor March 31, 2018 December 31, 2017 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 11.79 % $ (28,891 ) $ (55,525 ) 11.92 % $ (29,892 ) $ (57,517 ) Weighted-average conditional prepayment rate 10.10 % (22,100 ) (42,746 ) 11.10 % (27,261 ) (52,551 ) Weighted-average conditional default rate 0.87 % (29,500 ) (59,706 ) 0.91 % (31,610 ) (63,832 ) |
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. This table excludes inputs and assumptions related to servicing rights capitalized under the Company's co-issue program with NRM, which are classified as Level 2 within the fair value hierarchy. Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Weighted-average life in years 6.2 6.3 6.6 Weighted-average discount rate 14.74% 14.75% 13.62% Weighted-average conditional prepayment rate 9.30% 8.74% 8.00% Weighted-average conditional default rate 0.98% 0.92% 0.38% |
Goodwill and Intangible Asset38
Goodwill and Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The table below sets forth the activity in goodwill, which relates entirely to the Originations segment (in thousands): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 Balance at beginning of the period (1) $ 8,960 $ 47,747 Fresh start accounting adjustment (2) — (38,787 ) Impairment (8,960 ) — Balance at end of the period (3) $ — $ 8,960 __________ (1) There were accumulated impairment losses of $470.6 million and $138.8 million relating to the Servicing and Reverse Mortgage segments, respectively, at December 31, 2017. These accumulated impairment losses were reset in connection with fresh start accounting. (2) In connection with the adoption of fresh start accounting, the Company revalued goodwill to its estimated fair value at February 9, 2018 . This resulted in a reduction to goodwill totaling $38.8 million at February 9, 2018 as further described in Note 3 . (3) There were accumulated impairment losses of $9.0 million relating to the Originations segment at March 31, 2018. |
Schedule of Intangible Assets | Intangible assets, net consists of the following (in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Gross Carrying Amount (1) Accumulated Amortization Accumulated Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Carrying Amount Institutional and customer relationships $ 24,000 $ (2,480 ) $ — $ 21,520 $ 41,041 $ (30,793 ) $ (6,340 ) $ 3,908 Trademarks and trade names (2) 20,000 — (1,000 ) 19,000 10,000 (4,780 ) (395 ) 4,825 Other 650 — — 650 — — — — Total intangible assets $ 44,650 $ (2,480 ) $ (1,000 ) $ 41,170 $ 51,041 $ (35,573 ) $ (6,735 ) $ 8,733 __________ (1) In connection with the adoption of fresh start accounting, the Company revalued its intangible assets to their estimated fair value at February 9, 2018 . This resulted in an increase to intangible assets totaling $35.5 million , which included $20.2 million for institutional and customer relationships and $15.2 million for trade names. Refer to Note 3 for additional information regarding fresh start accounting adjustments. (2) Trade names recorded in connection with fresh start accounting were determined to have an indefinite life. |
Schedule of Future Amortization of Intangible Assets | Based on the balance of intangible assets, net at March 31, 2018 , the following is an estimate of amortization expense for the remainder of 2018 and for each of the next four years (in thousands): Successor Amortization Expense (1) For the remainder of 2018 $ 11,647 2019 7,600 2020 2,591 2021 320 2022 12 Total $ 22,170 __________ (1) Excludes $19.0 million relating to trade names that were determined to have an indefinite useful life. |
Premises and Equipment, Net (Ta
Premises and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment, Net | Premises and equipment, net consists of the following (dollars in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Computer software $ 70,264 $ 246,271 Leasehold improvements and other 6,803 12,699 Assets in development 1,988 2,008 Computer hardware 1,727 33,154 Furniture and fixtures 517 7,812 Total premises and equipment 81,299 301,944 Less: accumulated depreciation and amortization (2,132 ) (251,731 ) Premises and equipment, net $ 79,167 $ 50,213 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Assets [Abstract] | |
Schedule of Other Assets | Other assets consists of the following (in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Real estate owned, net (1) $ 233,359 $ 116,553 Prepaid expenses 34,314 26,834 Derivative instruments 30,736 29,394 Clean-up Call Agreement inducement fee 28,184 29,256 Deposits 21,861 2,432 Deferred debt issuance costs 9,769 21,341 Investment in WCO 7,100 7,816 Other 2,194 1,969 Total other assets $ 367,517 $ 235,595 _________ (1) The adoption of the new accounting guidance relating to sales of nonfinancial assets effective January 1, 2018 resulted in loans being derecognized and placed back into real estate owned if the loans were originated under real estate owned financing wherein the loan-to-value was greater than 80% , thereby resulting in an increase to real estate owned and a real estate owned deposit obligation. |
Payables and Accrued Liabilit41
Payables and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Payables and Accrued Liabilities | Payables and accrued liabilities consists of the following (in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Loans subject to repurchase from Ginnie Mae $ 459,730 $ 542,398 Accounts payable and accrued liabilities 139,180 129,731 Curtailment liability 137,574 140,905 Real estate owned deposit obligations (1) 49,544 — Employee-related liabilities 33,607 52,097 Loan repurchase obligation 29,458 31,704 Originations liability 26,142 25,613 Servicing rights and related advance purchases payable 14,469 14,923 Accrued interest payable 10,594 33,322 Uncertain tax positions 5,647 5,601 Other 44,485 44,006 Subtotal 950,430 1,020,300 Less: Liabilities subject to compromise (2) — 25,807 Total payables and accrued liabilities $ 950,430 $ 994,493 __________ (1) The adoption of the new accounting guidance relating to sales of nonfinancial assets effective January 1, 2018 resulted in loans being derecognized and placed back into real estate owned if the loans were originated under real estate owned financing wherein the loan-to-value was greater than 80% , thereby resulting in a higher real estate owned balance and a real estate owned deposit obligation. (2) Liabilities subject to compromise consist of accrued interest related to the Senior Notes and Convertibles Notes. Refer to Note 3 for additional information. |
Schedule of Accrued Exit Liability by Action | The following table presents the current period activity in the accrued exit liability resulting from each of the 2016 and Prior Actions, 2017 Actions and 2018 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): Successor For the Period From February 10, 2018 Through March 31, 2018 2016 and Prior Actions 2017 Actions 2018 Actions Total Balance at February 10, 2018 $ 472 $ 14,837 $ 616 $ 15,925 Charges Severance and related costs (1) 4 137 1,060 1,201 Office closures and other costs 24 149 — 173 Total charges 28 286 1,060 1,374 Cash payments or other settlements Severance and related costs (79 ) (742 ) (76 ) (897 ) Office closures and other costs (45 ) (713 ) — (758 ) Total cash payments or other settlements (124 ) (1,455 ) (76 ) (1,655 ) Balance at March 31, 2018 $ 376 $ 13,668 $ 1,600 $ 15,644 Cumulative charges incurred Severance and related costs 26,957 9,268 1,687 37,912 Office closures and other costs 10,489 13,582 — 24,071 Total cumulative charges incurred $ 37,446 $ 22,850 $ 1,687 $ 61,983 Total expected costs to be incurred (2) $ 37,446 $ 22,850 $ 2,299 $ 62,595 Predecessor For the Period From January 1, 2018 Through February 9, 2018 2016 and Prior Actions 2017 Actions 2018 Actions Total Balance at January 1, 2018 $ 540 $ 15,955 $ — $ 16,495 Charges Severance and related costs (1) (21 ) 72 627 678 Office closures and other costs 19 234 — 253 Total charges (2 ) 306 627 931 Cash payments or other settlements Severance and related costs — (948 ) (11 ) (959 ) Office closures and other costs (66 ) (476 ) — (542 ) Total cash payments or other settlements (66 ) (1,424 ) (11 ) (1,501 ) Balance at February 9, 2018 $ 472 $ 14,837 $ 616 $ 15,925 __________ (1) Includes adjustments to prior year accruals resulting from changes to previous estimates. (2) Total expected costs for the 2018 Actions could change based on additional actions as determined by management throughout the year. |
Schedule of Accrued Exit Liability by Reportable Segment | The following table presents the current period activity for each of the 2016 and Prior Actions, 2017 Actions, and 2018 Actions described above by reportable segment (in thousands): Successor For the Period From February 10, 2018 Through March 31, 2018 Servicing Originations Reverse Corporate and Other Total Balance at February 10, 2018 2016 and Prior Actions $ 289 $ 68 $ 18 $ 97 $ 472 2017 Actions 13,718 44 387 688 14,837 2018 Actions 527 16 27 46 616 Total balance at February 10, 2018 14,534 128 432 831 15,925 Charges 2016 and Prior Actions (1) 16 8 4 — 28 2017 Actions (1) 260 — (84 ) 110 286 2018 Actions 263 — 338 459 1,060 Total charges 539 8 258 569 1,374 Cash payments or other settlements 2016 and Prior Actions (29 ) (16 ) — (79 ) (124 ) 2017 Actions (879 ) (36 ) (178 ) (362 ) (1,455 ) 2018 Actions (19 ) (16 ) (20 ) (21 ) (76 ) Total cash payments or other settlements (927 ) (68 ) (198 ) (462 ) (1,655 ) Balance at March 31, 2018 2016 and Prior Actions 276 60 22 18 376 2017 Actions 13,099 8 125 436 13,668 2018 Actions 771 — 345 484 1,600 Total balance at March 31, 2018 $ 14,146 $ 68 $ 492 $ 938 $ 15,644 Total cumulative charges incurred 2016 and Prior Actions $ 18,083 $ 5,639 $ 7,145 $ 6,579 $ 37,446 2017 Actions 19,709 1,550 1,482 109 22,850 2018 Actions 790 27 365 505 1,687 Total cumulative charges incurred $ 38,582 $ 7,216 $ 8,992 $ 7,193 $ 61,983 Total expected costs to be incurred 2016 and Prior Actions $ 18,083 $ 5,639 $ 7,145 $ 6,579 $ 37,446 2017 Actions 19,709 1,550 1,482 109 22,850 2018 Actions (2) 1,135 27 579 558 2,299 Total expected costs to be incurred $ 38,927 $ 7,216 $ 9,206 $ 7,246 $ 62,595 Predecessor For the Period From January 1, 2018 Through February 9, 2018 Servicing Originations Reverse Corporate and Other Total Balance at January 1, 2018 2016 and Prior Actions (3) $ 348 $ 77 $ 18 $ 97 $ 540 2017 Actions (3) 14,317 91 483 1,064 15,955 2018 Actions (3) — — — — — Total balance at January 1, 2018 (3) 14,665 168 501 1,161 16,495 Charges 2016 and Prior Actions (1) (5 ) 3 — — (2 ) 2017 Actions (1) 289 16 2 (1 ) 306 2018 Actions 527 27 27 46 627 Total charges 811 46 29 45 931 Cash payments or other settlements 2016 and Prior Actions (54 ) (12 ) — — (66 ) 2017 Actions (888 ) (63 ) (98 ) (375 ) (1,424 ) 2018 Actions — (11 ) — — (11 ) Total cash payments or other settlements (942 ) (86 ) (98 ) (375 ) (1,501 ) Balance at February 9, 2018 2016 and Prior Actions 289 68 18 97 472 2017 Actions 13,718 44 387 688 14,837 2018 Actions 527 16 27 46 616 Total balance at February 9, 2018 $ 14,534 $ 128 $ 432 $ 831 $ 15,925 __________ (1) Includes adjustments to prior year accruals resulting from changes to previous estimates. (2) Total expected costs for the 2018 Actions could change based on additional actions as determined by management throughout the year. (3) Effective January 1, 2018, the Company no longer allocates corporate overhead to its operating segments. These amounts are now included in the Corporate and Other non-reportable segment. Prior year balances have been restated to conform to current year presentation . |
Servicing Advance Liabilities (
Servicing Advance Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Short-term Debt [Abstract] | |
Summary of Servicing Advance Liabilities | Servicing advance liabilities, which are carried at amortized cost, consists of the following (in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Servicing Advance Facilities 315,325 421,165 Early Advance Reimbursement Agreement 49,556 62,297 Total servicing advance liabilities $ 364,881 $ 483,462 |
Corporate Debt Corporate Debt (
Corporate Debt Corporate Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Corporate Debt | Corporate debt consists of the following (dollars in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Amortized Cost Weighted- Average Stated Interest Rate (1) Amortized Cost Weighted- Average Stated Interest Rate (1) 2018 Term Loan (unpaid principal balance of $1,111,501 at March 31, 2018) $ 1,073,376 7.88 % $ — — % Second Lien Notes (unpaid principal balance of $250,000 at March 31, 2018) 190,259 9.00 % — — % 2013 Term Loan (unpaid principal balance of $1,229,590 at December 31, 2017) — — % 1,214,663 5.31 % Senior Notes (unpaid principal balance of $538,662 at December 31, 2017) — — % 538,662 7.875 % Convertible Notes (unpaid principal balance of $242,468 at December 31, 2017) — — % 242,468 4.50 % Subtotal 1,263,635 1,995,793 Less: Liabilities subject to compromise (2) — 781,130 Total corporate debt $ 1,263,635 $ 1,214,663 __________ (1) Represents the weighted-average stated interest rate, which may be different from the effective rate, which considers the amortization of discounts and issuance costs. (2) Liabilities subject to compromise consist of the Senior Notes and Convertibles Notes at December 31, 2017. Refer to Note 3 for additional information. |
Schedule of Maturities of Long-Term Debt | The Company is required to make quarterly payments on the 2018 Term Loan in the amounts listed below (in thousands): Successor Repayment Date Principal Amount June 2018 $ 17,500 September 2018 17,500 December 2018 17,500 March 2019 10,000 June 2019 26,700 September 2019 36,700 December 2019 36,700 each March, June, September and December thereafter 15,000 |
Mortgage-Backed Debt (Tables)
Mortgage-Backed Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Mortgage Backed Debt [Abstract] | |
Schedule of Mortgage-Backed Debt | Provided in the table below is information regarding the mortgage-backed debt (dollars in thousands): Successor Predecessor March 31, 2018 December 31, 2017 Carrying Value Weighted-Average Stated Interest Rate (1) Carrying Value Weighted-Average Stated Interest Rate (1) Mortgage-backed debt at fair value (unpaid principal balance of $721,879 and $353,262 at March 31, 2018 and December 31, 2017, respectively) $ 717,188 6.17 % $ 348,682 6.26 % Mortgage-backed debt at amortized cost (unpaid principal balance of $391,208 at December 31, 2017) — — % 387,200 6.07 % Total mortgage-backed debt $ 717,188 6.17 % $ 735,882 6.16 % __________ (1) Represents the weighted-average stated interest rate, which may be different from the effective rate, which considers the amortization of discounts and issuance costs. |
Equity and Earnings (Loss) Pe45
Equity and Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Reconciliation of Numerators and Denominators of Basic and Diluted 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): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Numerator for basic and diluted earnings (loss) per share Net income (loss) available to common stockholders (numerator) $ (54,149 ) $ 521,007 $ 4,508 Denominator Weighted-average common shares outstanding (Basic denominator) 4,253 37,374 36,412 Effect of dilutive securities: RSUs — 50 375 Stock options — — 25 Weighted-average common shares outstanding (Dilutive denominator) 4,253 37,424 36,812 |
Schedule of Antidilutive Securities Excluded from Computation of Dilutive Earnings Per Share | The following table summarizes securities that could potentially dilute earnings per share in the future but have been excluded from the computation of dilutive earnings per share in the periods that the Company has earnings (in thousands): Successor Predecessor For the Period From February 10, 2018 Through March 31, 2018 For the Period From January 1, 2018 Through February 9, 2018 For the Three Months Ended March 31, 2017 Outstanding share-based compensation awards Stock options (1) — 3,533 3,412 Performance shares (2) — — 183 Restricted stock units — 327 63 Assumed conversion of Convertible Notes — 4,932 4,932 Assumed conversion of Convertible Preferred Shares 11,490 — — Outstanding Series A and B Warrants 12,994 — — __________ (1) All antidilutive stock options at February 9, 2018 and March 31, 2017 were out-of-the-money. There were no stock options granted during the period from February 10, 2018 through March 31, 2018 . (2) Performance shares represented the number of shares that were 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, 2018 | |
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 corporate expenses, in Corporate and Other. Intersegment revenues and expenses have been eliminated. Effective January 1, 2018, the Company no longer allocates corporate overhead, including depreciation and amortization, to its operating segments. These amounts are now included in the Corporate and Other non-reportable segment. Prior year balances have been restated to conform to current year presentation . Successor For the Period From February 10, 2018 Through March 31, 2018 Servicing Originations Reverse Corporate and Other Eliminations Total Total revenues (1)(2) $ 56,868 $ 31,441 $ 4,836 $ 171 $ (2,101 ) $ 91,215 Income (loss) before income taxes 2,133 (11,782 ) (11,669 ) (32,642 ) — (53,960 ) March 31, 2018 Total assets $ 2,641,280 $ 992,729 $ 9,892,564 $ 389,536 $ (187,411 ) $ 13,728,698 Predecessor For the Period From January 1, 2018 Through February 9, 2018 Servicing Originations Reverse Corporate and Other Eliminations Total Total revenues (1)(2) $ 145,551 $ 29,885 $ 13,207 $ 89 $ (1,459 ) $ 187,273 Income (loss) before income taxes 69,614 7,977 (1,133 ) 444,531 — 520,989 Predecessor For the Three Months Ended March 31, 2017 Servicing Originations Reverse Corporate and Other Eliminations Total Total revenues (1)(2) $ 147,780 $ 80,808 $ 22,493 $ 510 $ (6,306 ) $ 245,285 Income (loss) before income taxes 48,362 16,328 (2,016 ) (58,288 ) — 4,386 __________ (1) The Servicing segment recorded intercompany servicing revenue and fees from activity with the Originations segment and the Corporate and Other non-reportable segment of $0.9 million , $0.8 million and $2.9 million for the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively . Included in these amounts are late fees that were waived as an incentive for borrowers refinancing their loans of $0.2 million , $0.3 million and $1.0 million for the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively , which reduced net gains on sales 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 $1.4 million , $0.9 million and $4.4 million for the period from February 10, 2018 through March 31, 2018, the period from January 1, 2018 through February 9, 2018 and the three months ended March 31, 2017, respectively . |
Business and Basis of Present47
Business and Basis of Presentation - Additional Information (Detail) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | |||
Feb. 09, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2018USD ($)Segmentbusiness | Mar. 31, 2017USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | |
Business Acquisition [Line Items] | ||||||
Number of complementary businesses operated | business | 2 | |||||
Number of reportable segments | Segment | 3 | |||||
Decrease in cash flows provided by operating activities | $ (207,832) | $ 280,594 | $ (128,117) | |||
Increase in cash flows provided by investing activities | 227,431 | 174,910 | 382,979 | |||
Increase in cash flows used in financing activities | $ (585,594) | 166,415 | (528,659) | |||
Reduction in residential loans at amortized cost, net | (467,690) | $ (467,690) | $ (985,454) | |||
Increase in other assets | 367,517 | 367,517 | 235,595 | |||
Increase in accumulated deficit | 54,149 | 54,149 | 1,048,817 | |||
Increase in accrued liabilities | $ 950,430 | $ 950,430 | $ 1,020,300 | |||
Adjustments for New Accounting Pronouncement [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Decrease in cash flows provided by operating activities | 18,600 | |||||
Increase in cash flows provided by investing activities | 1,900 | |||||
Increase in cash flows used in financing activities | $ 13,400 | |||||
Reduction in residential loans at amortized cost, net | $ 115,000 | |||||
Increase in other assets | 123,100 | |||||
Increase in accumulated deficit | 40,700 | |||||
Increase in accrued liabilities | $ 48,700 |
Liquidity - Additional Informat
Liquidity - Additional Information (Details) - USD ($) | May 30, 2018 | Feb. 09, 2018 | Mar. 31, 2018 | Apr. 23, 2018 |
Discharge of Debt [Member] | ||||
Subsequent Event [Line Items] | ||||
Reorganization item, extinguishment of debt | $ 807,000,000 | |||
Second Lien Notes [Member] | ||||
Subsequent Event [Line Items] | ||||
Face amount of debt | 250,000,000 | |||
2018 Term Loan [Member] | Term Loan [Member] | ||||
Subsequent Event [Line Items] | ||||
Face amount of debt | $ 1,200,000,000 | |||
Covenant waiver, additional payment | $ 30,000,000 | |||
Subsequent Event [Member] | Repurchase Agreements [Member] | ||||
Subsequent Event [Line Items] | ||||
Face amount of debt | $ 212,000,000 | |||
Warehouse Agreement Borrowings [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt Instrument, Financial Statements Delivery Period | 45 days | |||
Warehouse Agreement Borrowings [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt Instrument, Financial Statements Delivery Period | 73 days | |||
Servicing Advance Liabilities [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt Instrument, Financial Statements Delivery Period | 73 days | |||
Servicer Advance Financing Facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt Instrument, Financial Statements Delivery Period | 60 days |
Emergence from Reorganization49
Emergence from Reorganization Proceedings - Schedule of Reorganization Items (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Reorganization Items [Abstract] | |||
Gain on cancellation of corporate debt | $ 556,937 | $ 0 | |
Issuance of new equity to Convertible and Senior Noteholders | 153,764 | 0 | |
Net gain on cancellation of corporate debt | (403,173) | 0 | |
Legal and professional fees | 12,461 | 0 | |
Other expenses | 3,378 | 110 | |
Total expenses | 15,839 | 110 | |
Total reorganization items | 387,334 | (110) | |
Fresh start accounting adjustments | 77,229 | 0 | |
Reorganization items and fresh start accounting adjustments | $ 464,563 | $ (110) | $ 0 |
Emergence from Reorganization50
Emergence from Reorganization Proceedings - Additional Information (Details) - USD ($) $ in Thousands | Feb. 09, 2018 | Feb. 09, 2018 | Mar. 31, 2018 | Feb. 10, 2018 |
Fresh-Start Adjustment [Line Items] | ||||
Cash payments made for reorganization items | $ 5,700 | $ 100 | ||
Enterprise value | $ 1,464,795 | |||
Minimum [Member] | ||||
Fresh-Start Adjustment [Line Items] | ||||
Enterprise value | $ 1,400,000 | 1,400,000 | ||
Implied Credit Spread | 6.00% | |||
Implied Yield | 13.50% | |||
Maximum [Member] | ||||
Fresh-Start Adjustment [Line Items] | ||||
Enterprise value | $ 1,500,000 | $ 1,500,000 | ||
Implied Credit Spread | 8.00% | |||
Implied Yield | 15.50% |
Emergence from Reorganization51
Emergence from Reorganization Proceedings - Schedule of Liabilities Subject to Compromise (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Feb. 09, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Reorganizations [Abstract] | |||
Senior Notes | $ 538,662 | ||
Convertible Notes | 242,468 | ||
Accrued interest (1) | $ 0 | 25,807 | |
Total liabilities subject to compromise | $ 0 | $ 806,937 | |
Interest Expense Not Accrued | $ 5,900 |
Emergence from Reorganization52
Emergence from Reorganization Proceedings - Schedule of Reorganization Value of Assets (Details) - USD ($) $ in Thousands | Feb. 10, 2018 | Feb. 09, 2018 |
Reorganizations [Abstract] | ||
Enterprise value | $ 1,464,795 | |
Plus: fair value of liabilities | 12,137,344 | |
Reorganization value | 13,602,139 | |
Less: | ||
Fair value of tangible assets | 13,508,179 | |
Fair value of developed technology | 41,000 | |
Fair value of identifiable intangible assets | 44,000 | |
Goodwill | $ 8,960 | $ 8,960 |
Emergence from Reorganization53
Emergence from Reorganization Proceedings - Schedule of Fresh-Start Balance Sheet (Details) - USD ($) $ in Thousands | Feb. 10, 2018 | Feb. 09, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 182,462 | |
Restricted cash and cash equivalents | 105,041 | |
Residential loans at amortized cost, net | 787,860 | |
Residential loans at fair value | 10,423,633 | |
Receivables, net | 151,892 | |
Servicer and protective advances, net | 748,952 | |
Servicing rights, net | 744,724 | |
Goodwill | 47,747 | |
Intangible assets, net | 8,532 | |
Premises and equipment, net | 46,873 | |
Deferred tax assets, net | 1,273 | |
Other assets | 392,205 | |
Total assets | 13,641,194 | |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||
Payables and accrued expenses | 993,805 | |
Servicer payables | 109,404 | |
Servicing advance liabilities | 387,813 | |
Warehouse borrowings | 1,007,310 | |
Corporate debt | 1,142,941 | |
Mortgage-backed debt | 727,909 | |
HMBS related obligations at fair value | 8,913,052 | |
Deferred tax liabilities, net | 866 | |
Total liabilities not subject to compromise | 13,283,100 | |
Liabilities subject to compromise | 806,937 | |
Total liabilities | 14,090,037 | |
Preferred stock | 0 | |
Common stock | 374 | |
Additional paid-in capital | 598,731 | |
Accumulated deficit | (1,049,005) | |
Accumulated other comprehensive income | 1,057 | |
Total stockholders' equity (deficit) | (448,843) | |
Total liabilities and stockholders' equity (deficit) | 13,641,194 | |
ASSETS | ||
Cash and cash equivalents | 143,423 | |
Restricted cash and cash equivalents | 105,041 | |
Residential loans at amortized cost, net | 470,671 | |
Residential loans at fair value | 10,727,684 | |
Receivables, net | 150,152 | |
Servicer and protective advances, net | 724,585 | |
Servicing rights, net | 750,156 | |
Goodwill | $ 8,960 | 8,960 |
Intangible assets, net | 44,000 | |
Premises and equipment, net | 80,612 | |
Deferred tax assets, net | 1,317 | |
Other assets | 395,538 | |
Total assets | 13,602,139 | |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||
Payables and accrued expenses | 984,821 | |
Servicer payables | 109,404 | |
Servicing advance liabilities | 387,813 | |
Warehouse borrowings | 1,007,310 | |
Corporate debt | 1,280,407 | |
Mortgage-backed debt | 734,155 | |
HMBS related obligations at fair value | 8,913,052 | |
Deferred tax liabilities, net | 789 | |
Total liabilities not subject to compromise | 13,417,751 | |
Liabilities subject to compromise | 0 | |
Total liabilities | 13,417,751 | |
Preferred stock | 1 | |
Common stock | 43 | |
Additional paid-in capital | 184,344 | |
Accumulated deficit | 0 | |
Accumulated other comprehensive income | 0 | |
Total stockholders' equity (deficit) | 184,388 | |
Total liabilities and stockholders' equity (deficit) | 13,602,139 | |
Reorganization Adjustments [Member] | ||
ASSETS | ||
Cash and cash equivalents | (39,039) | |
Restricted cash and cash equivalents | 0 | |
Residential loans at amortized cost, net | 0 | |
Residential loans at fair value | 0 | |
Receivables, net | 0 | |
Servicer and protective advances, net | 0 | |
Servicing rights, net | 0 | |
Goodwill | 0 | |
Intangible assets, net | 0 | |
Premises and equipment, net | 0 | |
Deferred tax assets, net | 44 | |
Other assets | 0 | |
Total assets | (38,995) | |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||
Payables and accrued expenses | (1,540) | |
Servicer payables | 0 | |
Servicing advance liabilities | 0 | |
Warehouse borrowings | 0 | |
Corporate debt | 212,500 | |
Mortgage-backed debt | 0 | |
HMBS related obligations at fair value | 0 | |
Deferred tax liabilities, net | (77) | |
Total liabilities not subject to compromise | 210,883 | |
Liabilities subject to compromise | (806,937) | |
Total liabilities | (596,054) | |
Preferred stock | 1 | |
Common stock | (331) | |
Additional paid-in capital | (414,387) | |
Accumulated deficit | 971,776 | |
Accumulated other comprehensive income | 0 | |
Total stockholders' equity (deficit) | 557,059 | |
Total liabilities and stockholders' equity (deficit) | (38,995) | |
Fresh Start Adjustments [Member] | ||
ASSETS | ||
Cash and cash equivalents | 0 | |
Restricted cash and cash equivalents | 0 | |
Residential loans at amortized cost, net | (317,189) | |
Residential loans at fair value | 304,051 | |
Receivables, net | (1,740) | |
Servicer and protective advances, net | (24,367) | |
Servicing rights, net | 5,432 | |
Goodwill | (38,787) | |
Intangible assets, net | 35,468 | |
Premises and equipment, net | 33,739 | |
Deferred tax assets, net | 0 | |
Other assets | 3,333 | |
Total assets | (60) | |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||
Payables and accrued expenses | (7,444) | |
Servicer payables | 0 | |
Servicing advance liabilities | 0 | |
Warehouse borrowings | 0 | |
Corporate debt | (75,034) | |
Mortgage-backed debt | 6,246 | |
HMBS related obligations at fair value | 0 | |
Deferred tax liabilities, net | 0 | |
Total liabilities not subject to compromise | (76,232) | |
Liabilities subject to compromise | 0 | |
Total liabilities | (76,232) | |
Preferred stock | 0 | |
Common stock | 0 | |
Additional paid-in capital | 0 | |
Accumulated deficit | 77,229 | |
Accumulated other comprehensive income | (1,057) | |
Total stockholders' equity (deficit) | 76,172 | |
Total liabilities and stockholders' equity (deficit) | $ (60) |
Emergence from Reorganization54
Emergence from Reorganization Proceedings - Reorganization Adjustments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Feb. 09, 2018 | Dec. 31, 2017 |
Fresh-Start Adjustment [Line Items] | |||
Equity balance of Successor | $ 184,388 | ||
Reduction to residential loans at fair value | $ (10,959,582) | $ (10,725,232) | |
Resulting intangible assets | 44,000 | ||
Increase to real estate owned, net | 233,359 | 116,553 | |
Eliminate deferred debt issuance costs | (9,769) | (21,341) | |
Decrease to carrying value | (1,263,635) | (1,995,793) | |
Fresh Start Adjustments [Member] | |||
Fresh-Start Adjustment [Line Items] | |||
Reduction to residential loans at amortized cost | 317,189 | ||
Reduction to residential loans at fair value | 13,100 | ||
Decrease to holdback receivables | 1,700 | ||
Increase to real estate owned, net | 5,600 | ||
Eliminate deferred debt issuance costs | 2,300 | ||
Institutional and Customer Relationships [Member] | |||
Fresh-Start Adjustment [Line Items] | |||
Resulting intangible assets | 24,000 | ||
Trade Names [Member] | |||
Fresh-Start Adjustment [Line Items] | |||
Resulting intangible assets | 20,000 | ||
Second Lien Notes [Member] | |||
Fresh-Start Adjustment [Line Items] | |||
Decrease to carrying value | $ (190,259) | $ 0 | |
Second Lien Notes [Member] | Fresh Start Adjustments [Member] | |||
Fresh-Start Adjustment [Line Items] | |||
Decrease to carrying value | $ 60,500 |
Transactions with NRM - Additio
Transactions with NRM - Additional Information (Details) - USD ($) $ in Thousands | Jan. 17, 2018 | Aug. 08, 2017 | Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Jan. 17, 2018 | Dec. 31, 2017 |
Transactions with NRM [Line Items] | ||||||||
Proceeds from sale of servicing rights | $ 94,994 | $ 11,836 | $ 29,673 | |||||
Net gains on sales of loans | 27,963 | 28,518 | 74,356 | |||||
New Residential Investment Corp. [Member] | ||||||||
Transactions with NRM [Line Items] | ||||||||
Proceeds from servicing rights holdback receivable | $ 9,500 | |||||||
Servicing rights holdback receivable | 30,200 | $ 30,200 | $ 31,300 | |||||
Principal amount of loans related to mortgage servicing rights sold | 2,200,000 | |||||||
Net gains on sales of loans | 3,800 | 4,500 | 19,300 | |||||
Bulk Sales [Member] | New Residential Investment Corp. [Member] | ||||||||
Transactions with NRM [Line Items] | ||||||||
Proceeds from sale of servicing rights | $ 90,400 | $ 340,400 | ||||||
Percentage of net sale proceeds of certain non-ordinary course asset sales and dispositions | 80.00% | |||||||
Principal amount of loans related to mortgage servicing rights sold | $ 11,300,000 | $ 71,100,000 | ||||||
Co-Issue Sales Transaction [Member] | New Residential Investment Corp. [Member] | ||||||||
Transactions with NRM [Line Items] | ||||||||
Principal amount of loans related to mortgage servicing rights sold | $ 469,500 | $ 487,400 | $ 1,400,000 | |||||
Subservicing Agreement [Member] | New Residential Investment Corp. [Member] | ||||||||
Transactions with NRM [Line Items] | ||||||||
Renewal term | 1 year | 1 year | ||||||
Automatic subsequent renewal term | 1 year | |||||||
Notice required to terminate contract | 120 days | |||||||
Minimum term to avoid transfer fee | 5 years |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Assets and Liabilities of Consolidated VIEs (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Restricted cash and cash equivalents | $ 92,389 | $ 112,826 |
Residential loans at amortized cost, net | 467,690 | 985,454 |
Residential loans at fair value | 10,959,582 | 10,725,232 |
Receivables, net | 118,045 | 124,344 |
Servicer and protective advances, net | 650,423 | 813,433 |
Other assets | 367,517 | 235,595 |
Total assets | 13,728,698 | 14,164,197 |
Liabilities | ||
Payables and accrued liabilities | 950,430 | 1,020,300 |
Servicing advance liabilities | 364,881 | 483,462 |
Mortgage-backed debt | 717,188 | 735,882 |
Total liabilities | 13,598,452 | 14,613,390 |
VIE Primary Beneficiary [Member] | ||
Assets | ||
Restricted cash and cash equivalents | 30,311 | 44,376 |
Residential loans at amortized cost, net | 0 | 424,420 |
Residential loans at fair value | 585,637 | 301,435 |
Receivables, net | 4,853 | 5,824 |
Servicer and protective advances, net | 345,922 | 446,799 |
Other assets | 165,119 | 39,837 |
Total assets | 1,131,842 | 1,262,691 |
Liabilities | ||
Payables and accrued liabilities | 50,827 | 3,086 |
Servicing advance liabilities | 315,325 | 444,563 |
Mortgage-backed debt | 717,188 | 735,882 |
Total liabilities | 1,083,340 | 1,183,531 |
VIE Primary Beneficiary [Member] | Residual Trusts [Member] | ||
Assets | ||
Restricted cash and cash equivalents | 13,737 | 12,687 |
Residential loans at amortized cost, net | 424,420 | |
Residential loans at fair value | 292,626 | 0 |
Receivables, net | 0 | 0 |
Servicer and protective advances, net | 0 | 0 |
Other assets | 131,045 | 9,924 |
Total assets | 437,408 | 447,031 |
Liabilities | ||
Payables and accrued liabilities | 50,191 | 2,178 |
Servicing advance liabilities | 0 | 0 |
Mortgage-backed debt | 381,340 | 387,200 |
Total liabilities | 431,531 | 389,378 |
VIE Primary Beneficiary [Member] | Non-Residual Trusts [Member] | ||
Assets | ||
Restricted cash and cash equivalents | 8,476 | 8,020 |
Residential loans at amortized cost, net | 0 | |
Residential loans at fair value | 293,011 | 301,435 |
Receivables, net | 3,484 | 5,608 |
Servicer and protective advances, net | 0 | 0 |
Other assets | 1,269 | 1,072 |
Total assets | 306,240 | 316,135 |
Liabilities | ||
Payables and accrued liabilities | 0 | 0 |
Servicing advance liabilities | 0 | 0 |
Mortgage-backed debt | 335,848 | 348,682 |
Total liabilities | 335,848 | 348,682 |
VIE Primary Beneficiary [Member] | Servicer and Protective Advance Financing Facilities [Member] | ||
Assets | ||
Restricted cash and cash equivalents | 8,098 | 23,669 |
Residential loans at amortized cost, net | 0 | |
Residential loans at fair value | 0 | 0 |
Receivables, net | 0 | 0 |
Servicer and protective advances, net | 345,922 | 446,799 |
Other assets | 2,370 | 1,301 |
Total assets | 356,390 | 471,769 |
Liabilities | ||
Payables and accrued liabilities | 636 | 908 |
Servicing advance liabilities | 315,325 | 444,563 |
Mortgage-backed debt | 0 | 0 |
Total liabilities | 315,961 | 445,471 |
VIE Primary Beneficiary [Member] | Revolving Credit Facilities Related VIEs [Member] | ||
Assets | ||
Restricted cash and cash equivalents | 0 | 0 |
Residential loans at amortized cost, net | 0 | |
Residential loans at fair value | 0 | 0 |
Receivables, net | 1,369 | 216 |
Servicer and protective advances, net | 0 | 0 |
Other assets | 30,435 | 27,540 |
Total assets | 31,804 | 27,756 |
Liabilities | ||
Payables and accrued liabilities | 0 | 0 |
Servicing advance liabilities | 0 | 0 |
Mortgage-backed debt | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Transfers of Residential Loan57
Transfers of Residential Loans - Schedule of Continuing Involvement with Mortgage Loans Sold with Servicing Rights Retained (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Net Assets Recorded on the Consolidated Balance Sheets | $ 415,464 | $ 416,474 |
Unpaid Principal Balance of Sold Loans | 33,089,157 | 36,274,449 |
Servicing Rights, Net [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Net Assets Recorded on the Consolidated Balance Sheets | 395,075 | 385,744 |
Servicer And Protective Advances, Net [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Net Assets Recorded on the Consolidated Balance Sheets | 20,395 | 30,762 |
Payables and Accrued Liabilities [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Net Assets Recorded on the Consolidated Balance Sheets | $ (6) | $ (32) |
Transfers of Residential Loan58
Transfers of Residential Loans - Additional Information (Detail) - USD ($) $ in Billions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Transfers of Residential Loans [Line Items] | ||
Mortgage loans sold and serviced, 60 days or more past due, percent | 2.60% | 2.90% |
Mortgage loans sold and serviced, number of days past due threshold | 60 days or more | |
Reverse Loans and Real Estate Owned [Member] | ||
Transfers of Residential Loans [Line Items] | ||
Unpaid principal balance of assets pledged as collateral to securitization pools | $ 8.3 | |
Carrying value of assets pledged as collateral to securitization pools | $ 8.6 |
Transfers of Residential Loan59
Transfers of Residential Loans - Summary of Cash Flows Related to Sales of Mortgage Loans (Detail) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Transfers and Servicing [Abstract] | |||
Cash proceeds received from sales, net of fees | $ 1,415,435 | $ 1,307,464 | $ 5,252,552 |
Servicing fees collected | 13,884 | 15,432 | 30,803 |
Repurchases of previously sold loans (2) | 14,948 | 17,892 | 17,503 |
Repurchases of Ginnie Mae buyout loans | $ 14,200 | $ 16,900 | $ 13,500 |
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, 2018 | Feb. 10, 2018 | Feb. 09, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||||||
Residential loans at fair value | $ 10,959,582 | $ 10,725,232 | ||||
Receivables related to Non-Residual Trusts | 3,484 | 5,608 | ||||
Servicing rights carried at fair value | 675,176 | $ 688,466 | $ 688,466 | 714,774 | $ 930,333 | $ 949,593 |
Derivative instruments | 30,736 | 29,394 | ||||
Liabilities | ||||||
Derivative instruments | 3,400 | 1,250 | ||||
Mortgage-backed debt related to Non-Residual Trusts | 717,188 | 348,682 | ||||
Mortgage-backed debt related to Residual Trusts | 381,340 | 0 | ||||
HMBS related obligations | 8,798,059 | 9,175,128 | ||||
Reverse Loans [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 9,603,314 | 9,789,444 | ||||
Mortgage Loans Related to Non-Residual Trusts [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 293,011 | 301,435 | ||||
Mortgage Loans Related To Residual Trusts [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 299,558 | 0 | ||||
Mortgage Loans Held For Sale [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 715,627 | 588,553 | ||||
Charged-Off Loans [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 48,072 | 45,800 | ||||
Recurring Measurement Basis [Member] | Level 2 [Member] | ||||||
Assets | ||||||
Derivative instruments | 3,990 | 2,757 | ||||
Assets | 719,550 | 591,242 | ||||
Liabilities | ||||||
Derivative instruments | 3,173 | 981 | ||||
Servicing rights related liabilities | 6 | 32 | ||||
Liabilities | 3,179 | 1,013 | ||||
Recurring Measurement Basis [Member] | Level 2 [Member] | Mortgage Loans Held For Sale [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 715,560 | 588,485 | ||||
Recurring Measurement Basis [Member] | Level 3 [Member] | ||||||
Assets | ||||||
Receivables related to Non-Residual Trusts | 3,484 | 5,608 | ||||
Servicing rights carried at fair value | 675,176 | 714,774 | ||||
Assets | 10,949,428 | 10,883,766 | ||||
Liabilities | ||||||
Mortgage-backed debt related to Non-Residual Trusts | 335,848 | 348,682 | ||||
Mortgage-backed debt related to Residual Trusts | 381,340 | 0 | ||||
HMBS related obligations | 8,798,059 | 9,175,128 | ||||
Liabilities | 9,515,474 | 9,524,079 | ||||
Recurring Measurement Basis [Member] | Level 3 [Member] | Reverse Loans [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 9,603,314 | 9,789,444 | ||||
Recurring Measurement Basis [Member] | Level 3 [Member] | Mortgage Loans Related to Non-Residual Trusts [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 293,011 | 301,435 | ||||
Recurring Measurement Basis [Member] | Level 3 [Member] | Mortgage Loans Related To Residual Trusts [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 299,558 | 0 | ||||
Recurring Measurement Basis [Member] | Level 3 [Member] | Mortgage Loans Held For Sale [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 67 | 68 | ||||
Recurring Measurement Basis [Member] | Level 3 [Member] | Charged-Off Loans [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 48,072 | 45,800 | ||||
Interest Rate Lock Commitments [Member] | ||||||
Assets | ||||||
Derivative instruments | 26,746 | 26,637 | ||||
Liabilities | ||||||
Derivative instruments | 227 | 269 | ||||
Interest Rate Lock Commitments [Member] | Recurring Measurement Basis [Member] | Level 3 [Member] | ||||||
Assets | ||||||
Derivative instruments | 26,746 | 26,637 | ||||
Liabilities | ||||||
Derivative instruments | $ 227 | $ 269 |
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 | 1 Months Ended | 2 Months Ended | 3 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Assets | |||
Fair Value, Beginning Balance | $ 10,883,766 | $ 11,074,126 | $ 12,245,112 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 109,349 | 32,195 | 11,789 |
Purchases and Other | (7) | (32) | 43,580 |
Sales and Other | (100,399) | 0 | 76 |
Originations/ Issuances | 42,735 | 44,483 | 111,866 |
Settlements | (165,369) | (201,344) | (351,936) |
Fresh Start Accounting | 304,051 | ||
Fair Value, Ending Balance | 11,074,126 | 10,949,428 | 12,060,487 |
Liabilities | |||
Fair Value, Beginning Balance | (9,524,079) | (9,650,229) | (11,027,667) |
Total Gains (Losses) Included in Comprehensive Income (Loss) | (26,610) | (42,078) | (32,990) |
Purchases and Other | 0 | 0 | 0 |
Sales and Other | 0 | 0 | 0 |
Originations/ Issuances | (27,881) | (52,983) | (154,315) |
Settlements | 318,493 | 229,816 | 425,985 |
Fresh Start Accounting | (390,152) | ||
Fair Value, Ending Balance | (9,650,229) | (9,515,474) | (10,788,987) |
Reverse Loans [Member] | |||
Assets | |||
Fair Value, Beginning Balance | 9,789,444 | 9,702,263 | 10,742,922 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 31,476 | 45,857 | 42,612 |
Purchases and Other | 0 | 0 | 43,134 |
Sales and Other | 0 | 0 | 0 |
Originations/ Issuances | 33,300 | 37,443 | 87,062 |
Settlements | (151,957) | (182,249) | (315,998) |
Fresh Start Accounting | 0 | ||
Fair Value, Ending Balance | 9,702,263 | 9,603,314 | 10,599,732 |
Mortgage Loans Related to Non-Residual Trusts [Member] | |||
Assets | |||
Fair Value, Beginning Balance | 301,435 | 299,790 | 450,377 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 5,690 | 2,520 | 12,502 |
Purchases and Other | 0 | 0 | 0 |
Sales and Other | 0 | 0 | 0 |
Originations/ Issuances | 0 | 0 | 0 |
Settlements | (7,335) | (9,299) | (22,660) |
Fresh Start Accounting | 0 | ||
Fair Value, Ending Balance | 299,790 | 293,011 | 440,219 |
Mortgage Loans Related To Residual Trusts [Member] | |||
Assets | |||
Fair Value, Beginning Balance | 0 | 304,051 | |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 0 | (809) | |
Purchases and Other | 0 | 0 | |
Sales and Other | 0 | 0 | |
Originations/ Issuances | 0 | 0 | |
Settlements | 0 | (3,684) | |
Fresh Start Accounting | 304,051 | ||
Fair Value, Ending Balance | 304,051 | 299,558 | |
Mortgage Loans Held For Sale [Member] | |||
Assets | |||
Fair Value, Beginning Balance | 68 | 67 | |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 0 | 20 | |
Purchases and Other | 0 | 0 | |
Sales and Other | 0 | 0 | |
Originations/ Issuances | 0 | 0 | |
Settlements | (1) | (20) | |
Fresh Start Accounting | 0 | ||
Fair Value, Ending Balance | 67 | 67 | |
Charged-Off Loans [Member] | |||
Assets | |||
Fair Value, Beginning Balance | 45,800 | 50,299 | 46,963 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 8,843 | 3,020 | 14,591 |
Purchases and Other | 0 | 0 | 0 |
Sales and Other | 0 | 0 | 0 |
Originations/ Issuances | 0 | 0 | 0 |
Settlements | (4,344) | (5,247) | (9,483) |
Fresh Start Accounting | 0 | ||
Fair Value, Ending Balance | 50,299 | 48,072 | 52,071 |
Receivables Related to Non-Residual Trusts [Member] | |||
Assets | |||
Fair Value, Beginning Balance | 5,608 | 4,730 | 15,033 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 848 | (411) | 2,569 |
Purchases and Other | 0 | 0 | 0 |
Sales and Other | 0 | 0 | 0 |
Originations/ Issuances | 0 | 0 | 0 |
Settlements | (1,726) | (835) | (3,754) |
Fresh Start Accounting | 0 | ||
Fair Value, Ending Balance | 4,730 | 3,484 | 13,848 |
Servicing Rights Carried at Fair Value [Member] | |||
Assets | |||
Fair Value, Beginning Balance | 714,774 | 688,466 | 936,423 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 64,663 | (20,298) | (52,479) |
Purchases and Other | (7) | (32) | 446 |
Sales and Other | (100,399) | 0 | 76 |
Originations/ Issuances | 9,435 | 7,040 | 24,804 |
Settlements | 0 | 0 | 0 |
Fresh Start Accounting | 0 | ||
Fair Value, Ending Balance | 688,466 | 675,176 | 909,270 |
Freestanding Derivative Instruments [Member] | Interest Rate Lock Commitments [Member] | |||
Assets | |||
Fair Value, Beginning Balance | 26,637 | 24,460 | 53,394 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | (2,171) | 2,296 | (8,006) |
Purchases and Other | 0 | 0 | 0 |
Sales and Other | 0 | 0 | 0 |
Originations/ Issuances | 0 | 0 | 0 |
Settlements | (6) | (10) | (41) |
Fresh Start Accounting | 0 | ||
Fair Value, Ending Balance | 24,460 | 26,746 | 45,347 |
Freestanding Derivative Instruments [Member] | Interest Rate Lock Commitments [Member] | |||
Liabilities | |||
Fair Value, Beginning Balance | (269) | (3,023) | (4,193) |
Total Gains (Losses) Included in Comprehensive Income (Loss) | (2,754) | 2,796 | 3,479 |
Purchases and Other | 0 | 0 | 0 |
Sales and Other | 0 | 0 | 0 |
Originations/ Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Fresh Start Accounting | 0 | ||
Fair Value, Ending Balance | (3,023) | (227) | (714) |
Mortgage-Backed Debt Related to Non-Residual Trusts [Member] | |||
Liabilities | |||
Fair Value, Beginning Balance | (348,682) | (344,002) | (514,025) |
Total Gains (Losses) Included in Comprehensive Income (Loss) | (2,956) | (1,469) | (8,559) |
Purchases and Other | 0 | 0 | 0 |
Sales and Other | 0 | 0 | 0 |
Originations/ Issuances | 0 | 0 | 0 |
Settlements | 7,636 | 9,623 | 23,816 |
Fresh Start Accounting | 0 | ||
Fair Value, Ending Balance | (344,002) | (335,848) | (498,768) |
Mortgage Backed Debt Related To Residual Trusts [Member] | |||
Liabilities | |||
Fair Value, Beginning Balance | 0 | (390,152) | |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 0 | 1,563 | |
Purchases and Other | 0 | 0 | |
Sales and Other | 0 | 0 | |
Originations/ Issuances | 0 | 0 | |
Settlements | 0 | 7,249 | |
Fresh Start Accounting | (390,152) | ||
Fair Value, Ending Balance | (390,152) | (381,340) | |
HMBS Related Obligations [Member] | |||
Liabilities | |||
Fair Value, Beginning Balance | (9,175,128) | (8,913,052) | (10,509,449) |
Total Gains (Losses) Included in Comprehensive Income (Loss) | (20,900) | (44,968) | (27,910) |
Purchases and Other | 0 | 0 | 0 |
Sales and Other | 0 | 0 | 0 |
Originations/ Issuances | (27,881) | (52,983) | (154,315) |
Settlements | 310,857 | 212,944 | 402,169 |
Fresh Start Accounting | 0 | ||
Fair Value, Ending Balance | $ (8,913,052) | $ (8,798,059) | $ (10,289,505) |
Fair Value Fair Value - Schedul
Fair Value Fair Value - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis Utilizing Significant Unobservable Inputs Reconciliation - Footnotes (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Feb. 09, 2018 | Mar. 31, 2017 | |
Charged-Off Loans [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Gains from instrument-specific credit risk | $ 5.7 | $ 10.1 |
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) - USD ($) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Mortgage Loans Related to Non-Residual Trusts [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Loss severity | 100.00% | |||
Servicing Rights Carried at Fair Value [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 10.10% | 11.10% | ||
Conditional default rate | 0.87% | 0.91% | ||
Discount rate | 11.79% | 11.92% | ||
Recurring Measurement Basis [Member] | Reverse Loans [Member] | Minimum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Weighted-average remaining life in years | 3 months | 4 months | 3 months 18 days | |
Conditional repayment rate | 12.61% | 12.61% | 12.61% | |
Discount rate | 2.79% | 2.79% | 3.05% | |
Recurring Measurement Basis [Member] | Reverse Loans [Member] | Maximum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Weighted-average remaining life in years | 10 years 2 months | 10 years 2 months | 10 years 2 months 12 days | |
Conditional repayment rate | 71.68% | 71.68% | 71.68% | |
Discount rate | 4.17% | 4.17% | 4.17% | |
Recurring Measurement Basis [Member] | Reverse Loans [Member] | Weighted Average [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Weighted-average remaining life in years | 3 years 6 months | 3 years 6 months | 3 years 9 months 18 days | |
Conditional repayment rate | 34.43% | 34.10% | 30.23% | |
Discount rate | 3.59% | 3.59% | 3.60% | |
Recurring Measurement Basis [Member] | Mortgage Loans Related to Non-Residual Trusts [Member] | Minimum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 1.99% | 1.98% | 2.08% | |
Conditional default rate | 1.05% | 0.99% | 1.01% | |
Loss severity | 96.30% | 97.71% | 90.60% | |
Discount rate | 8.32% | 8.32% | 8.32% | |
Recurring Measurement Basis [Member] | Mortgage Loans Related to Non-Residual Trusts [Member] | Maximum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 2.51% | 2.51% | 2.53% | |
Conditional default rate | 4.70% | 4.72% | 4.97% | |
Loss severity | 100.00% | 100.00% | 100.00% | |
Discount rate | 8.32% | 8.32% | 8.32% | |
Recurring Measurement Basis [Member] | Mortgage Loans Related to Non-Residual Trusts [Member] | Weighted Average [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 2.30% | 2.29% | 2.34% | |
Conditional default rate | 2.55% | 2.53% | 2.61% | |
Loss severity | 99.79% | 99.86% | 99.46% | |
Discount rate | 8.32% | 8.32% | 8.32% | |
Recurring Measurement Basis [Member] | Mortgage Loans Related To Residual Trusts [Member] | Minimum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 2.66% | 2.66% | ||
Conditional default rate | 4.13% | 4.12% | ||
Loss severity | 27.00% | 25.00% | ||
Discount rate | 8.25% | 8.25% | ||
Recurring Measurement Basis [Member] | Mortgage Loans Related To Residual Trusts [Member] | Maximum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 3.57% | 3.52% | ||
Conditional default rate | 5.32% | 5.32% | ||
Loss severity | 30.00% | 30.00% | ||
Discount rate | 8.25% | 8.25% | ||
Recurring Measurement Basis [Member] | Mortgage Loans Related To Residual Trusts [Member] | Weighted Average [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 3.06% | 3.06% | ||
Conditional default rate | 4.53% | 4.53% | ||
Loss severity | 28.25% | 28.26% | ||
Discount rate | 8.25% | 8.25% | ||
Recurring Measurement Basis [Member] | Mortgage Loans Held For Sale [Member] | Minimum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 4.81% | 4.81% | 4.81% | |
Conditional default rate | 2.46% | 2.46% | 2.46% | |
Loss severity | 99.40% | 99.40% | 99.40% | |
Discount rate | 9.80% | 9.80% | 9.80% | |
Recurring Measurement Basis [Member] | Mortgage Loans Held For Sale [Member] | Maximum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 4.81% | 4.81% | 4.81% | |
Conditional default rate | 2.46% | 2.46% | 2.46% | |
Loss severity | 99.40% | 99.40% | 99.40% | |
Discount rate | 9.80% | 9.80% | 9.80% | |
Recurring Measurement Basis [Member] | Mortgage Loans Held For Sale [Member] | Weighted Average [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 4.81% | 4.81% | 4.81% | |
Conditional default rate | 2.46% | 2.46% | 2.46% | |
Loss severity | 99.40% | 99.40% | 99.40% | |
Discount rate | 9.80% | 9.80% | 9.80% | |
Recurring Measurement Basis [Member] | Charged-Off Loans [Member] | Minimum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Collection rate | 3.42% | 3.29% | 2.84% | |
Discount rate | 28.00% | 28.00% | 28.00% | |
Recurring Measurement Basis [Member] | Charged-Off Loans [Member] | Maximum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Collection rate | 6.05% | 5.84% | 4.47% | |
Discount rate | 28.00% | 28.00% | 28.00% | |
Recurring Measurement Basis [Member] | Charged-Off Loans [Member] | Weighted Average [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Collection rate | 3.55% | 3.42% | 2.92% | |
Discount rate | 28.00% | 28.00% | 28.00% | |
Recurring Measurement Basis [Member] | Receivables Related to Non-Residual Trusts [Member] | Minimum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 2.46% | 2.41% | 2.49% | |
Conditional default rate | 1.99% | 2.06% | 1.72% | |
Loss severity | 94.86% | 96.48% | 88.88% | |
Discount rate | 0.50% | 0.50% | 0.50% | |
Recurring Measurement Basis [Member] | Receivables Related to Non-Residual Trusts [Member] | Maximum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 3.29% | 3.29% | 3.01% | |
Conditional default rate | 5.32% | 5.75% | 6.02% | |
Loss severity | 100.00% | 100.00% | 100.00% | |
Discount rate | 0.50% | 0.50% | 0.50% | |
Recurring Measurement Basis [Member] | Receivables Related to Non-Residual Trusts [Member] | Weighted Average [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 3.02% | 3.01% | 2.79% | |
Conditional default rate | 3.50% | 3.70% | 3.61% | |
Loss severity | 98.89% | 98.93% | 97.71% | |
Discount rate | 0.50% | 0.50% | 0.50% | |
Recurring Measurement Basis [Member] | Servicing Rights Carried at Fair Value [Member] | Minimum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Weighted-average remaining life in years | 2 years 5 months | 2 years 4 months | 2 years 4 months 24 days | |
Conditional prepayment rate | 6.07% | 6.21% | 6.80% | |
Conditional default rate | 0.09% | 0.09% | 0.06% | |
Cost to service | $ 62 | $ 62 | $ 62 | |
Discount rate | 9.63% | 9.63% | 9.91% | |
Recurring Measurement Basis [Member] | Servicing Rights Carried at Fair Value [Member] | Maximum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Weighted-average remaining life in years | 7 years 6 months | 7 years 4 months | 7 years 1 month 6 days | |
Conditional prepayment rate | 27.00% | 27.13% | 25.85% | |
Conditional default rate | 10.22% | 9.87% | 3.20% | |
Cost to service | $ 1,260 | $ 1,260 | $ 1,260 | |
Discount rate | 14.62% | 14.65% | 14.97% | |
Recurring Measurement Basis [Member] | Servicing Rights Carried at Fair Value [Member] | Weighted Average [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Weighted-average remaining life in years | 5 years 11 months | 5 years 9 months 1 day | 5 years 7 months 6 days | |
Conditional prepayment rate | 9.70% | 10.10% | 11.10% | |
Conditional default rate | 0.90% | 0.87% | 0.91% | |
Cost to service | $ 137 | $ 134 | $ 136 | |
Discount rate | 11.70% | 11.79% | 11.92% | |
Recurring Measurement Basis [Member] | Interest Rate Lock Commitments [Member] | Freestanding Derivative Instruments [Member] | Minimum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Loan funding probability | 1.00% | 1.00% | 1.00% | |
Fair value of initial servicing rights multiple | 0.02 | 0.01 | 0.01 | |
Recurring Measurement Basis [Member] | Interest Rate Lock Commitments [Member] | Freestanding Derivative Instruments [Member] | Maximum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Loan funding probability | 100.00% | 100.00% | 100.00% | |
Fair value of initial servicing rights multiple | 5.64 | 7.16 | 5.24 | |
Recurring Measurement Basis [Member] | Interest Rate Lock Commitments [Member] | Freestanding Derivative Instruments [Member] | Weighted Average [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Loan funding probability | 62.49% | 61.69% | 62.97% | |
Fair value of initial servicing rights multiple | 2.79 | 3.03 | 2.74 | |
Recurring Measurement Basis [Member] | Freestanding Derivative Instruments [Member] | Interest Rate Lock Commitments [Member] | Minimum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Loan funding probability | 14.19% | 24.57% | 33.64% | |
Fair value of initial servicing rights multiple | 0.08 | 0.05 | 0.24 | |
Recurring Measurement Basis [Member] | Freestanding Derivative Instruments [Member] | Interest Rate Lock Commitments [Member] | Maximum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Loan funding probability | 100.00% | 100.00% | 100.00% | |
Fair value of initial servicing rights multiple | 5.86 | 6.39 | 4.92 | |
Recurring Measurement Basis [Member] | Freestanding Derivative Instruments [Member] | Interest Rate Lock Commitments [Member] | Weighted Average [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Loan funding probability | 82.62% | 83.93% | 84.76% | |
Fair value of initial servicing rights multiple | 3.39 | 3.46 | 3.32 | |
Recurring Measurement Basis [Member] | Mortgage-Backed Debt Related to Non-Residual Trusts [Member] | Minimum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 2.46% | 2.41% | 2.49% | |
Conditional default rate | 1.99% | 2.06% | 1.72% | |
Loss severity | 94.86% | 96.48% | 88.88% | |
Discount rate | 6.00% | 6.00% | 6.00% | |
Recurring Measurement Basis [Member] | Mortgage-Backed Debt Related to Non-Residual Trusts [Member] | Maximum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 3.29% | 3.29% | 3.01% | |
Conditional default rate | 5.32% | 5.75% | 6.02% | |
Loss severity | 100.00% | 100.00% | 100.00% | |
Discount rate | 6.00% | 6.00% | 6.00% | |
Recurring Measurement Basis [Member] | Mortgage-Backed Debt Related to Non-Residual Trusts [Member] | Weighted Average [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 3.02% | 3.01% | 2.79% | |
Conditional default rate | 3.50% | 3.70% | 3.61% | |
Loss severity | 98.89% | 98.93% | 97.71% | |
Discount rate | 6.00% | 6.00% | 6.00% | |
Recurring Measurement Basis [Member] | Mortgage Backed Debt Related To Residual Trusts [Member] | Minimum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 2.66% | 2.66% | ||
Conditional default rate | 4.13% | 4.12% | ||
Loss severity | 27.00% | 25.00% | ||
Discount rate | 6.00% | 6.00% | ||
Recurring Measurement Basis [Member] | Mortgage Backed Debt Related To Residual Trusts [Member] | Maximum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 3.57% | 3.52% | ||
Conditional default rate | 5.32% | 5.32% | ||
Loss severity | 30.00% | 30.00% | ||
Discount rate | 6.00% | 6.00% | ||
Recurring Measurement Basis [Member] | Mortgage Backed Debt Related To Residual Trusts [Member] | Weighted Average [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Conditional prepayment rate | 3.06% | 3.06% | ||
Conditional default rate | 4.53% | 4.53% | ||
Loss severity | 28.25% | 28.26% | ||
Discount rate | 6.00% | 6.00% | ||
Recurring Measurement Basis [Member] | HMBS Related Obligations [Member] | Minimum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Weighted-average remaining life in years | 2 months | 5 months | 4 months 24 days | |
Conditional repayment rate | 12.61% | 12.90% | 12.90% | |
Discount rate | 2.80% | 2.80% | 3.02% | |
Recurring Measurement Basis [Member] | HMBS Related Obligations [Member] | Maximum [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Weighted-average remaining life in years | 10 years 1 month | 7 years 10 months | 7 years 9 months 18 days | |
Conditional repayment rate | 71.68% | 86.87% | 86.87% | |
Discount rate | 4.21% | 3.98% | 3.98% | |
Recurring Measurement Basis [Member] | HMBS Related Obligations [Member] | Weighted Average [Member] | ||||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||||
Weighted-average remaining life in years | 3 years 7 months | 3 years 6 months | 3 years 8 months 12 days | |
Conditional repayment rate | 34.45% | 36.89% | 32.07% | |
Discount rate | 3.60% | 3.43% | 3.45% |
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, 2018 | Dec. 31, 2017 |
Loans At Fair Value Under The Fair Value Option [Abstract] | ||
Residential loans at fair value | $ 10,959,582 | $ 10,725,232 |
Total loans at fair value under the fair value option | 10,959,582 | 10,725,232 |
Total loans at fair value under the fair value option, unpaid principal balance | 12,955,780 | 12,706,349 |
Debt Instruments At Fair Value Under The Fair Value Option [Abstract] | ||
Mortgage-backed debt related to Non-Residual Trusts | 335,848 | 348,682 |
Mortgage-backed debt related to Non-Residual Trusts at fair value, unpaid principal balance | 341,282 | 353,262 |
Mortgage-backed debt related to Residual Trusts | 381,340 | 0 |
Mortgage-backed debt related to Residual Trusts at fair value, unpaid principal balance | 380,597 | 0 |
HMBS related obligations at fair value | 8,798,059 | 9,175,128 |
HMBS related obligations at fair value, unpaid principal balance | 8,386,951 | 8,743,700 |
Total debt instruments at fair value under the fair value option | 9,515,247 | 9,523,810 |
Total debt instruments at fair value under the fair value option, unpaid principal balance | 9,108,830 | 9,096,962 |
Reverse Loans [Member] | ||
Loans At Fair Value Under The Fair Value Option [Abstract] | ||
Residential loans at fair value | 9,603,314 | 9,789,444 |
Residential loans at fair value, unpaid principal balance | 9,304,402 | 9,460,616 |
Mortgage Loans Held For Sale [Member] | ||
Loans At Fair Value Under The Fair Value Option [Abstract] | ||
Residential loans at fair value | 715,627 | 588,553 |
Residential loans at fair value, unpaid principal balance | 694,242 | 567,492 |
Mortgage Loans Related to Non-Residual Trusts [Member] | ||
Loans At Fair Value Under The Fair Value Option [Abstract] | ||
Residential loans at fair value | 293,011 | 301,435 |
Residential loans at fair value, unpaid principal balance | 332,216 | 344,421 |
Mortgage Loans Related To Residual Trusts [Member] | ||
Loans At Fair Value Under The Fair Value Option [Abstract] | ||
Residential loans at fair value | 299,558 | 0 |
Residential loans at fair value, unpaid principal balance | 338,785 | 0 |
Charged-Off Loans [Member] | ||
Loans At Fair Value Under The Fair Value Option [Abstract] | ||
Residential loans at fair value | 48,072 | 45,800 |
Residential loans at fair value, unpaid principal balance | $ 2,286,135 | $ 2,333,820 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned, net | $ 233,359 | $ 116,553 |
Loans in process of foreclosure | $ 503,100 | 489,000 |
Loan-to-value ratio | 80.00% | |
Mortgage Loans Related to Non-Residual Trusts [Member] | ||
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 | |
Loss severity | 100.00% | |
Loans 90 days or more past due, unpaid principal balance | $ 21,800 | 22,200 |
Mortgage Loans Related To Residual Trusts [Member] | ||
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, unpaid principal balance | $ 30,200 | |
Mortgage Loans Held For Sale [Member] | ||
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, unpaid principal balance | $ 8,500 | 10,100 |
Charged-Off Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of days delinquent | 90 days | |
Servicing [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned, net | $ 134,000 | 13,700 |
Reverse Mortgage [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned, net | 98,100 | 101,800 |
Corporate and Other Non-Reportable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned, net | $ 1,300 | $ 1,100 |
Fair Value - Schedule of Sign66
Fair Value - Schedule of Significant Unobservable Inputs Used in Fair Value Measurement of Real Estate Owned (Detail) - Non-Recurring Measurement Basis [Member] - Real Estate Owned, Net [Member] | 1 Months Ended | 2 Months Ended | 12 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Loss severity | 0.00% | 0.00% | 0.00% |
Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Loss severity | 68.66% | 73.68% | 78.76% |
Weighted Average [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Loss severity | 7.54% | 7.38% | 6.16% |
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, 2018 | Dec. 31, 2017 |
Financial assets | ||
Residential loans at amortized cost, net | $ 467,690 | $ 985,454 |
Servicer and protective advances, net | 650,423 | 813,433 |
Financial liabilities | ||
Corporate debt | 1,263,635 | 1,995,793 |
Mortgage-backed debt carried at amortized cost | 717,188 | 735,882 |
Liabilities subject to compromise | 0 | 781,130 |
Level 3 [Member] | Carrying Amount [Member] | ||
Financial assets | ||
Residential loans at amortized cost, net | 7,960 | 443,056 |
Servicer and protective advances, net | 650,423 | 813,433 |
Financial liabilities | ||
Servicing advance liabilities | 362,598 | 478,838 |
Mortgage-backed debt carried at amortized cost | 0 | 387,200 |
Level 3 [Member] | Estimated Fair Value [Member] | ||
Financial assets | ||
Residential loans at amortized cost, net | 7,718 | 432,518 |
Servicer and protective advances, net | 649,290 | 778,007 |
Financial liabilities | ||
Servicing advance liabilities | 364,881 | 483,462 |
Mortgage-backed debt carried at amortized cost | 0 | 391,539 |
Level 2 [Member] | Carrying Amount [Member] | ||
Financial liabilities | ||
Corporate debt | 1,263,635 | 1,994,411 |
Liabilities subject to compromise | 781,100 | |
Level 2 [Member] | Estimated Fair Value [Member] | ||
Financial liabilities | ||
Corporate debt | $ 1,295,041 | 1,553,076 |
Liabilities subject to compromise | $ 358,800 |
Fair Value - Schedule of Net Ga
Fair Value - Schedule of Net Gains on Sales of Loans (Detail) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Components of Net Gains on Sales of Loans [Line Items] | |||
Realized gains on sales of loans | $ 3,582 | $ 872 | $ 26,085 |
Change in unrealized gains on loans held for sale | (9,343) | 8,712 | 19,658 |
Capitalized servicing rights | 13,227 | 11,557 | 32,384 |
Provision for repurchases | (729) | (822) | (1,795) |
Interest income | 2,298 | 3,085 | 11,203 |
Other | 156 | 30 | 11 |
Net gains on sales of loans | 27,963 | 28,518 | 74,356 |
Interest Rate Lock Commitments [Member] | |||
Components of Net Gains on Sales of Loans [Line Items] | |||
Gains (losses) on derivative instruments | (4,926) | 5,092 | (4,526) |
Forward Sales Commitments [Member] | |||
Components of Net Gains on Sales of Loans [Line Items] | |||
Gains (losses) on derivative instruments | 24,570 | (12,713) | (20,548) |
MBS Purchase Commitments [Member] | |||
Components of Net Gains on Sales of Loans [Line Items] | |||
Gains (losses) on derivative instruments | $ (872) | $ 12,705 | $ 11,884 |
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 | 1 Months Ended | 2 Months Ended | 3 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |||
Interest income on reverse loans | $ 47,116 | $ 61,942 | $ 113,302 |
Change in fair value of reverse loans | (15,640) | (16,085) | (70,690) |
Net fair value gains on reverse loans | 31,476 | 45,857 | 42,612 |
Interest expense on HMBS related obligations (1) | (40,427) | (52,079) | (102,436) |
Change in fair value of HMBS related obligations | 19,527 | 7,111 | 74,526 |
Net fair value losses on HMBS related obligations | (20,900) | (44,968) | (27,910) |
Net fair value gains on reverse loans and related HMBS obligations | $ 10,576 | $ 889 | $ 14,702 |
Freestanding Derivative Finan70
Freestanding Derivative Financial Instruments - Schedule of Notional or Contractual Amounts and Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Derivative Assets | $ 30,736 | $ 29,394 |
Derivative Liabilities | 3,400 | 1,250 |
Cash margin paid | 40 | 0 |
Cash margin received | 1,551 | 1,533 |
Interest Rate Lock Commitments [Member] | ||
Derivative [Line Items] | ||
Notional/ Contractual Amount | 1,511,297 | 1,509,712 |
Derivative Assets | 26,746 | 26,637 |
Derivative Liabilities | 227 | 269 |
Forward Sales Commitments [Member] | ||
Derivative [Line Items] | ||
Notional/ Contractual Amount | 2,111,834 | 1,724,500 |
Derivative Assets | 3,278 | 2,224 |
Derivative Liabilities | 3,103 | 903 |
MBS Purchase Commitments [Member] | ||
Derivative [Line Items] | ||
Notional/ Contractual Amount | 440,500 | 298,000 |
Derivative Assets | 712 | 533 |
Derivative Liabilities | $ 70 | $ 78 |
Freestanding Derivative Finan71
Freestanding Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Net derivative liability position | $ 1.2 | $ 0.6 |
Net derivative asset position | 0.7 | 0.9 |
Counterparties A and B [Member] | ||
Derivative [Line Items] | ||
Net derivative liability position | $ 0.4 | |
Net derivative asset position | $ 0.4 |
Residential Loans at Amortize72
Residential Loans at Amortized Cost, Net - Summary of Residential Loans, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | $ 474,154 | $ 1,021,172 |
Unamortized discounts and other cost basis adjustments, net | (5,758) | (29,371) |
Allowance for loan losses | (706) | (6,347) |
Residential loans at amortized cost, net | 467,690 | 985,454 |
Loans subject to repurchase from Ginnie Mae | 459,700 | 542,400 |
Residential Loans At Amortized Cost Net [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | 100 | 4,500 |
Mortgage Loans Not Related to Consolidated VIEs [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential loans at amortized cost, net | $ 467,700 | $ 561,000 |
Residential Loans at Amortize73
Residential Loans at Amortized Cost, Net - Additional Information (Details) $ in Thousands | Feb. 09, 2018USD ($) |
Fresh Start Adjustments [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Fresh start adjustment, reduction to residential loans at amortized cost | $ 317,189 |
Servicing of Residential Loan74
Servicing of Residential Loans - Schedule of Total Servicing Portfolio (Detail) $ in Thousands | Mar. 31, 2018USD ($)Accounts | Dec. 31, 2017USD ($)Accounts |
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 1,633,201 | 1,678,493 |
Unpaid Principal Balance | $ | $ 202,852,185 | $ 207,864,813 |
Third-party Credit Owners [Member] | ||
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 1,552,778 | 1,596,013 |
Unpaid Principal Balance | $ | $ 191,468,513 | $ 196,341,996 |
Third-party Credit Owners [Member] | Capitalized Servicing Rights [Member] | ||
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 757,398 | 854,292 |
Unpaid Principal Balance | $ | $ 80,220,588 | $ 93,599,077 |
Third-party Credit Owners [Member] | Capitalized Subservicing [Member] | ||
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 28,311 | 29,681 |
Unpaid Principal Balance | $ | $ 3,091,623 | $ 3,242,241 |
Third-party Credit Owners [Member] | Subservicing [Member] | ||
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 767,069 | 712,040 |
Unpaid Principal Balance | $ | $ 108,156,302 | $ 99,500,678 |
On-balance Sheet [Member] | Reverse Loans and Real Estate Owned [Member] | ||
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 80,423 | 82,480 |
Unpaid Principal Balance | $ | $ 11,383,672 | $ 11,522,817 |
Servicing of Residential Loan75
Servicing of Residential Loans - Schedule of Net Servicing Revenue and Fees (Detail) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Transfers and Servicing [Abstract] | |||
Servicing fees | $ 52,855 | $ 52,175 | $ 133,393 |
Incentive and performance fees | 6,019 | 7,255 | 15,154 |
Ancillary and other fees | 7,335 | 11,756 | 23,243 |
Servicing revenue and fees | 66,209 | 71,186 | 171,790 |
Change in fair value of servicing rights | 64,663 | (20,343) | (53,516) |
Amortization of servicing rights | (2,187) | (2,488) | (5,025) |
Change in fair value of servicing rights related liabilities | 0 | 0 | (62) |
Net servicing revenue and fees | 128,685 | 48,355 | 113,187 |
Late fees | 5,100 | 8,600 | 15,600 |
Amortization of a servicing liability | 600 | 600 | 800 |
Impairment of servicing rights and a servicing liability | $ 1,600 | $ 1,400 | $ 3,100 |
Servicing of Residential Loan76
Servicing of Residential Loans - Schedule of Servicing Rights Carried at Amortized Cost (Detail) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | |||
Amortization | $ (2,187) | $ (2,488) | $ (5,025) |
Mortgage Loan [Member] | |||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | |||
Balance at beginning of the period | 54,466 | 57,148 | 74,621 |
Fresh start accounting adjustment | 4,221 | 0 | 0 |
Amortization | (944) | (1,472) | (2,256) |
Impairment | (595) | (293) | (1,376) |
Balance at end of the period | 57,148 | 55,383 | 70,989 |
Reverse Loan [Member] | |||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | |||
Balance at beginning of the period | 4,011 | 4,542 | 5,505 |
Fresh start accounting adjustment | 1,211 | 0 | 0 |
Amortization | (148) | (215) | (399) |
Impairment | (532) | (190) | 0 |
Balance at end of the period | $ 4,542 | $ 4,137 | $ 5,106 |
Servicing of Residential Loan77
Servicing of Residential Loans - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Mortgage Loan [Member] | ||
Servicing Asset at Amortized Cost [Line Items] | ||
Fair value of servicing rights | $ 55.8 | $ 59.7 |
Reverse Loan [Member] | ||
Servicing Asset at Amortized Cost [Line Items] | ||
Fair value of servicing rights | $ 4.2 | $ 4.8 |
Servicing of Residential Loan78
Servicing of Residential Loans - Schedule of Fair Value Assumptions, Servicing Rights at Amortized Cost (Detail) - Servicing Rights Carried at Amortized Cost [Member] | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Mortgage Loan [Member] | |||
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 | 4 years 6 months | 4 years 6 months |
Weighted-average discount rate | 13.00% | 13.00% | 13.00% |
Conditional prepayment rate | 5.34% | 5.58% | 5.91% |
Conditional default rate | 2.48% | 2.37% | 2.45% |
Reverse Loan [Member] | |||
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 8 months | 2 years 8 months | 2 years 9 months |
Weighted-average discount rate | 15.00% | 15.00% | 15.00% |
Conditional repayment rate | 36.68% | 37.18% | 36.01% |
Servicing of Residential Loan79
Servicing of Residential Loans - Schedule of Servicing Rights Carried at Fair Value (Detail) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Balance at beginning of period | $ 714,774 | $ 688,466 | $ 949,593 |
Sales | (105,457) | (5,893) | (94) |
Other | (7) | (68) | 0 |
Change in fair value due to: | |||
Changes in valuation inputs or other assumptions | 78,132 | (6,517) | (17,530) |
Other changes in fair value | (13,469) | (13,826) | (35,986) |
Total change in fair value | 64,663 | (20,343) | (53,516) |
Balance at end of the period | 688,466 | 675,176 | 930,333 |
Purchases [Member] | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Additions | 0 | 36 | 446 |
Servicing Rights Capitalized Upon Sales of Loans [Member] | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Additions | $ 14,493 | $ 12,978 | $ 33,904 |
Servicing of Residential Loan80
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, 2018 | Dec. 31, 2017 | |
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 | $ (28,891) | $ (29,892) |
10% adverse change in weighted-average conditional prepayment rate | (22,100) | (27,261) |
10% adverse change in weighted-average conditional default rate | (29,500) | (31,610) |
20% adverse change in weighted-average discount rate | (55,525) | (57,517) |
20% adverse change in weighted-average conditional prepayment rate | (42,746) | (52,551) |
20% adverse change in weighted-average conditional default rate | $ (59,706) | $ (63,832) |
Minimum [Member] | ||
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 [Member] | ||
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% | |
Servicing Rights Carried at Fair Value [Member] | ||
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] | ||
Discount rate | 11.79% | 11.92% |
Conditional prepayment rate | 10.10% | 11.10% |
Conditional default rate | 0.87% | 0.91% |
Servicing of Residential Loan81
Servicing of Residential Loans - Schedule of Fair Value Assumptions, Fair Value of Servicing Rights on Date of Sale (Detail) | 1 Months Ended | 2 Months Ended | 3 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Transfers and Servicing [Abstract] | |||
Weighted-average life in years | 6 years 3 months | 6 years 2 months | 6 years 7 months |
Weighted-average discount rate | 14.75% | 14.74% | 13.62% |
Weighted-average conditional prepayment rate | 8.74% | 9.30% | 8.00% |
Weighted-average conditional default rate | 0.92% | 0.98% | 0.38% |
Goodwill and Intangible Asset82
Goodwill and Intangible Assets, Net - Schedule of Goodwill by Reportable Segment (Detail) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | |
Feb. 09, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | |||
Balance at beginning of period | $ 47,747 | $ 8,960 | |
Impairment | 0 | (8,960) | |
Balance at end of period | 8,960 | 0 | |
Servicing [Member] | |||
Goodwill [Roll Forward] | |||
Accumulated impairment losses | $ 470,600 | ||
Reverse Mortgage [Member] | |||
Goodwill [Roll Forward] | |||
Accumulated impairment losses | $ 138,800 | ||
Originations [Member] | |||
Goodwill [Roll Forward] | |||
Accumulated impairment losses | $ 9,000 | ||
Fresh Start Adjustments [Member] | |||
Goodwill [Roll Forward] | |||
Fresh start accounting adjustment | $ (38,787) |
Goodwill and Intangible Asset83
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill [Line Items] | ||||
Goodwill impairment | $ 0 | $ 8,960 | ||
Amortization expense | $ 200 | 2,500 | $ 1,500 | |
Originations [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill impairment | $ 8,960 | |||
Servicing [Member] | ||||
Goodwill [Line Items] | ||||
Intangible assets impairment | $ 1,000 | |||
Institutional and Customer Relationships [Member] | ||||
Goodwill [Line Items] | ||||
Weighted average useful life | 3 years 2 months | |||
Other Intangible Assets [Member] | ||||
Goodwill [Line Items] | ||||
Weighted average useful life | 1 year |
Goodwill and Intangible Asset84
Goodwill and Intangible Assets, Net - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Feb. 09, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 44,650 | $ 51,041 | |
Accumulated Amortization | (2,480) | (35,573) | |
Accumulated Impairment | (6,735) | ||
Accumulated Impairment | (1,000) | ||
Net Carrying Amount | 22,170 | ||
Net Carrying Amount | 41,170 | 8,733 | |
Institutional and Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 24,000 | 41,041 | |
Accumulated Amortization | (2,480) | (30,793) | |
Accumulated Impairment | 0 | (6,340) | |
Net Carrying Amount | 21,520 | 3,908 | |
Trademarks and Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 10,000 | ||
Gross Carrying Amount | 20,000 | ||
Accumulated Amortization | (4,780) | ||
Accumulated Impairment | (395) | ||
Accumulated Impairment | (1,000) | ||
Net Carrying Amount | 4,825 | ||
Net Carrying Amount | 19,000 | ||
Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 650 | 0 | |
Accumulated Amortization | 0 | 0 | |
Accumulated Impairment | 0 | 0 | |
Net Carrying Amount | $ 650 | $ 0 | |
Fresh Start Adjustments [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Fresh start accounting, Increase to intangible assets | $ 35,468 | ||
Fresh Start Adjustments [Member] | Institutional and Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Fresh start accounting, Increase to intangible assets | 20,200 | ||
Fresh Start Adjustments [Member] | Trademarks and Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Fresh start accounting, Increase to intangible assets | $ 15,200 |
Goodwill and Intangible Asset85
Goodwill and Intangible Assets, Net - Schedule of Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
For the remainder of 2018 | $ 11,647 | |
2,019 | 7,600 | |
2,020 | 2,591 | |
2,021 | 320 | |
2,022 | 12 | |
Net Carrying Amount | 22,170 | |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 4,825 | |
Intangible assets excluded from table | $ 19,000 |
Premises and Equipment, Net - S
Premises and Equipment, Net - Schedule of Premises and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 81,299 | $ 301,944 |
Less: accumulated depreciation and amortization | (2,132) | (251,731) |
Premises and equipment, net | 79,167 | 50,213 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 70,264 | 246,271 |
Leasehold improvements and other | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 6,803 | 12,699 |
Assets in development | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 1,988 | 2,008 |
Computer hardware | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 1,727 | 33,154 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 517 | $ 7,812 |
Premises and Equipment, Net - A
Premises and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | $ 3,600 | $ 2,200 | $ 9,400 | |
Amortization of computer software | 3,200 | 1,700 | $ 7,800 | |
Unamortized computer software | $ 68,500 | $ 38,700 | ||
Fresh Start Adjustments [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Fresh start accounting, adjustment to computer software | $ 33,739 |
Other Assets - Components of Ot
Other Assets - Components of Other Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Other Assets [Abstract] | ||
Real estate owned, net | $ 233,359 | $ 116,553 |
Prepaid expenses | 34,314 | 26,834 |
Derivative instruments | 30,736 | 29,394 |
Clean-up Call Agreement inducement fee | 28,184 | 29,256 |
Deposits | 21,861 | 2,432 |
Deferred debt issuance costs | 9,769 | 21,341 |
Investment in WCO | 7,100 | 7,816 |
Other | 2,194 | 1,969 |
Total other assets | $ 367,517 | $ 235,595 |
Loan-to-value ratio | 80.00% |
Other Assets - Additional Infor
Other Assets - Additional Information (Details) $ in Thousands | Feb. 09, 2018USD ($) |
Fresh Start Adjustments [Member] | |
Other Assets [Line Items] | |
Fresh start accounting, increase to other assets | $ 3,333 |
Payables and Accrued Liabilit90
Payables and Accrued Liabilities - Schedule of Payables and Accrued Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Payables and Accruals [Abstract] | ||
Loans subject to repurchase from Ginnie Mae | $ 459,730 | $ 542,398 |
Accounts payable and accrued liabilities | 139,180 | 129,731 |
Curtailment liability | 137,574 | 140,905 |
Real estate owned deposit obligations (1) | 49,544 | 0 |
Employee-related liabilities | 33,607 | 52,097 |
Loan repurchase obligation | 29,458 | 31,704 |
Originations liability | 26,142 | 25,613 |
Servicing rights and related advance purchases payable | 14,469 | 14,923 |
Accrued interest payable | 10,594 | 33,322 |
Uncertain tax positions | 5,647 | 5,601 |
Other | 44,485 | 44,006 |
Subtotal | 950,430 | 1,020,300 |
Less: Liabilities subject to compromise | 0 | 25,807 |
Total payables and accrued liabilities | $ 950,430 | $ 994,493 |
Loan-to-value ratio | 80.00% |
Payables and Accrued Liabilit91
Payables and Accrued Liabilities - Additional Information (Details) $ in Thousands | Feb. 09, 2018USD ($) |
Fresh Start Adjustments [Member] | |
Accounts Payable And Accrued Liabilities [Line Items] | |
Fresh start accounting, reduction to payables and accrued liabilities | $ 7,444 |
Payables and Accrued Liabilit92
Payables and Accrued Liabilities - Schedule of Accrued Exit Liability By Action (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | |
Exit Liability [Roll Forward] | ||
Beginning balance | $ 16,495 | $ 15,925 |
Charges | 931 | 1,374 |
Cash payments or other settlements | (1,501) | (1,655) |
Ending balance | 15,925 | 15,644 |
Total cumulative charges incurred | 61,983 | |
Total expected costs to be incurred | 62,595 | |
Severance and related costs [Member] | ||
Exit Liability [Roll Forward] | ||
Charges | 678 | 1,201 |
Cash payments or other settlements | (959) | (897) |
Total cumulative charges incurred | 37,912 | |
Office closures and other costs [Member] | ||
Exit Liability [Roll Forward] | ||
Charges | 253 | 173 |
Cash payments or other settlements | (542) | (758) |
Total cumulative charges incurred | 24,071 | |
2016 and Prior Actions [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 540 | 472 |
Charges | (2) | 28 |
Cash payments or other settlements | (66) | (124) |
Ending balance | 472 | 376 |
Total cumulative charges incurred | 37,446 | |
Total expected costs to be incurred | 37,446 | |
2016 and Prior Actions [Member] | Severance and related costs [Member] | ||
Exit Liability [Roll Forward] | ||
Charges | (21) | 4 |
Cash payments or other settlements | 0 | (79) |
Total cumulative charges incurred | 26,957 | |
2016 and Prior Actions [Member] | Office closures and other costs [Member] | ||
Exit Liability [Roll Forward] | ||
Charges | 19 | 24 |
Cash payments or other settlements | (66) | (45) |
Total cumulative charges incurred | 10,489 | |
2017 Actions [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 15,955 | 14,837 |
Charges | 306 | 286 |
Cash payments or other settlements | (1,424) | (1,455) |
Ending balance | 14,837 | 13,668 |
Total cumulative charges incurred | 22,850 | |
Total expected costs to be incurred | 22,850 | |
2017 Actions [Member] | Severance and related costs [Member] | ||
Exit Liability [Roll Forward] | ||
Charges | 72 | 137 |
Cash payments or other settlements | (948) | (742) |
Total cumulative charges incurred | 9,268 | |
2017 Actions [Member] | Office closures and other costs [Member] | ||
Exit Liability [Roll Forward] | ||
Charges | 234 | 149 |
Cash payments or other settlements | (476) | (713) |
Total cumulative charges incurred | 13,582 | |
2018 Actions [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 0 | 616 |
Charges | 627 | 1,060 |
Cash payments or other settlements | (11) | (76) |
Ending balance | 616 | 1,600 |
Total cumulative charges incurred | 1,687 | |
Total expected costs to be incurred | 2,299 | |
2018 Actions [Member] | Severance and related costs [Member] | ||
Exit Liability [Roll Forward] | ||
Charges | 627 | 1,060 |
Cash payments or other settlements | (11) | (76) |
Total cumulative charges incurred | 1,687 | |
2018 Actions [Member] | Office closures and other costs [Member] | ||
Exit Liability [Roll Forward] | ||
Charges | 0 | 0 |
Cash payments or other settlements | $ 0 | 0 |
Total cumulative charges incurred | $ 0 |
Payables and Accrued Liabilit93
Payables and Accrued Liabilities - Schedule of Accrued Exit Liability by Reportable Segment (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | |
Exit Liability [Roll Forward] | ||
Beginning balance | $ 16,495 | $ 15,925 |
Charges | 931 | 1,374 |
Cash payments or other settlements | (1,501) | (1,655) |
Ending balance | 15,925 | 15,644 |
Total cumulative charges incurred | 61,983 | |
Total expected costs to be incurred | 62,595 | |
Servicing [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 14,665 | 14,534 |
Charges | 811 | 539 |
Cash payments or other settlements | (942) | (927) |
Ending balance | 14,534 | 14,146 |
Total cumulative charges incurred | 38,582 | |
Total expected costs to be incurred | 38,927 | |
Originations [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 168 | 128 |
Charges | 46 | 8 |
Cash payments or other settlements | (86) | (68) |
Ending balance | 128 | 68 |
Total cumulative charges incurred | 7,216 | |
Total expected costs to be incurred | 7,216 | |
Reverse Mortgage [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 501 | 432 |
Charges | 29 | 258 |
Cash payments or other settlements | (98) | (198) |
Ending balance | 432 | 492 |
Total cumulative charges incurred | 8,992 | |
Total expected costs to be incurred | 9,206 | |
Corporate and Other [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 1,161 | 831 |
Charges | 45 | 569 |
Cash payments or other settlements | (375) | (462) |
Ending balance | 831 | 938 |
Total cumulative charges incurred | 7,193 | |
Total expected costs to be incurred | 7,246 | |
2016 and Prior Actions [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 540 | 472 |
Charges | (2) | 28 |
Cash payments or other settlements | (66) | (124) |
Ending balance | 472 | 376 |
Total cumulative charges incurred | 37,446 | |
Total expected costs to be incurred | 37,446 | |
2016 and Prior Actions [Member] | Servicing [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 348 | 289 |
Charges | (5) | 16 |
Cash payments or other settlements | (54) | (29) |
Ending balance | 289 | 276 |
Total cumulative charges incurred | 18,083 | |
Total expected costs to be incurred | 18,083 | |
2016 and Prior Actions [Member] | Originations [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 77 | 68 |
Charges | 3 | 8 |
Cash payments or other settlements | (12) | (16) |
Ending balance | 68 | 60 |
Total cumulative charges incurred | 5,639 | |
Total expected costs to be incurred | 5,639 | |
2016 and Prior Actions [Member] | Reverse Mortgage [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 18 | 18 |
Charges | 0 | 4 |
Cash payments or other settlements | 0 | 0 |
Ending balance | 18 | 22 |
Total cumulative charges incurred | 7,145 | |
Total expected costs to be incurred | 7,145 | |
2016 and Prior Actions [Member] | Corporate and Other [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 97 | 97 |
Charges | 0 | 0 |
Cash payments or other settlements | 0 | (79) |
Ending balance | 97 | 18 |
Total cumulative charges incurred | 6,579 | |
Total expected costs to be incurred | 6,579 | |
2017 Actions [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 15,955 | 14,837 |
Charges | 306 | 286 |
Cash payments or other settlements | (1,424) | (1,455) |
Ending balance | 14,837 | 13,668 |
Total cumulative charges incurred | 22,850 | |
Total expected costs to be incurred | 22,850 | |
2017 Actions [Member] | Servicing [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 14,317 | 13,718 |
Charges | 289 | 260 |
Cash payments or other settlements | (888) | (879) |
Ending balance | 13,718 | 13,099 |
Total cumulative charges incurred | 19,709 | |
Total expected costs to be incurred | 19,709 | |
2017 Actions [Member] | Originations [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 91 | 44 |
Charges | 16 | 0 |
Cash payments or other settlements | (63) | (36) |
Ending balance | 44 | 8 |
Total cumulative charges incurred | 1,550 | |
Total expected costs to be incurred | 1,550 | |
2017 Actions [Member] | Reverse Mortgage [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 483 | 387 |
Charges | 2 | (84) |
Cash payments or other settlements | (98) | (178) |
Ending balance | 387 | 125 |
Total cumulative charges incurred | 1,482 | |
Total expected costs to be incurred | 1,482 | |
2017 Actions [Member] | Corporate and Other [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 1,064 | 688 |
Charges | (1) | 110 |
Cash payments or other settlements | (375) | (362) |
Ending balance | 688 | 436 |
Total cumulative charges incurred | 109 | |
Total expected costs to be incurred | 109 | |
2018 Actions [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 0 | 616 |
Charges | 627 | 1,060 |
Cash payments or other settlements | (11) | (76) |
Ending balance | 616 | 1,600 |
Total cumulative charges incurred | 1,687 | |
Total expected costs to be incurred | 2,299 | |
2018 Actions [Member] | Servicing [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 0 | 527 |
Charges | 527 | 263 |
Cash payments or other settlements | 0 | (19) |
Ending balance | 527 | 771 |
Total cumulative charges incurred | 790 | |
Total expected costs to be incurred | 1,135 | |
2018 Actions [Member] | Originations [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 0 | 16 |
Charges | 27 | 0 |
Cash payments or other settlements | (11) | (16) |
Ending balance | 16 | 0 |
Total cumulative charges incurred | 27 | |
Total expected costs to be incurred | 27 | |
2018 Actions [Member] | Reverse Mortgage [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 0 | 27 |
Charges | 27 | 338 |
Cash payments or other settlements | 0 | (20) |
Ending balance | 27 | 345 |
Total cumulative charges incurred | 365 | |
Total expected costs to be incurred | 579 | |
2018 Actions [Member] | Corporate and Other [Member] | ||
Exit Liability [Roll Forward] | ||
Beginning balance | 0 | 46 |
Charges | 46 | 459 |
Cash payments or other settlements | 0 | (21) |
Ending balance | $ 46 | 484 |
Total cumulative charges incurred | 505 | |
Total expected costs to be incurred | $ 558 |
Servicing Advance Liabilities -
Servicing Advance Liabilities - Schedule of Servicing Advance Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||
Servicing advance liabilities | $ 364,881 | $ 483,462 |
Servicer Advance Financing Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Servicing advance liabilities | 315,325 | 421,165 |
Early Advance Reimbursement Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Servicing advance liabilities | $ 49,556 | $ 62,297 |
Servicing Advance Liabilities95
Servicing Advance Liabilities - Additional Information (Detail) $ in Millions | May 30, 2018 | Feb. 12, 2018USD ($)Credit_Facility | Feb. 09, 2018USD ($) | Mar. 31, 2018 | Apr. 30, 2018USD ($) |
Secured Debt [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Number of servicing advance facilities | Credit_Facility | 2 | ||||
Ditech Agency Advance Trust Financing Facility [Member] | Secured Debt [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Aggregate borrowing capacity | $ 475 | ||||
Variable interest rate basis | lender's applicable index | ||||
Basis spread on variable interest rate | 2.25% | ||||
Expected repayment date | Feb. 9, 2019 | ||||
Ditech PLS Advance Trust Financing Facility [Member] | Secured Debt [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Aggregate borrowing capacity | $ 75 | ||||
Warehouse Agreement Borrowings [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Financial Statements Delivery Period | 45 days | ||||
Warehouse Agreement Borrowings [Member] | Exit Warehouse Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Aggregate borrowing capacity | $ 1,900 | $ 1,900 | |||
Variable interest rate basis | lender's applicable index | ||||
Servicer Advance Financing Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Financial Statements Delivery Period | 60 days | ||||
Subsequent Event [Member] | Secured Debt [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Shift of capacity from DAAT Facility to DPAT II Facility | $ 10 | ||||
Subsequent Event [Member] | Warehouse Agreement Borrowings [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Financial Statements Delivery Period | 73 days | ||||
Subsequent Event [Member] | Servicing Advance Liabilities [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Financial Statements Delivery Period | 73 days |
Warehouse Borrowings - Addition
Warehouse Borrowings - Additional Information (Details) - Warehouse Agreement Borrowings [Member] - USD ($) | May 30, 2018 | Feb. 09, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Apr. 23, 2018 | Feb. 12, 2018 |
Short-term Debt [Line Items] | ||||||
Debt Instrument, Financial Statements Delivery Period | 45 days | |||||
Residential Mortgage [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Security Owned and Pledged as Collateral, Fair Value | $ 690,300,000 | |||||
Security Owned and Pledged as Collateral, Associated Liabilities, Fair Value | 650,600,000 | |||||
Repurchased HECMs And Real Estate Owned [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Security Owned and Pledged as Collateral, Fair Value | 874,100,000 | |||||
Security Owned and Pledged as Collateral, Associated Liabilities, Fair Value | $ 739,100,000 | |||||
Exit Warehouse Facility [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Aggregate funding capacity | $ 1,900,000,000 | $ 1,900,000,000 | ||||
Expiration dates through | Feb. 9, 2019 | |||||
Variable interest rate basis | lender's applicable index | |||||
Repayment Terms | 365 days | |||||
Exit Warehouse Facility [Member] | Minimum [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Basis spread on variable interest rate | 2.25% | |||||
Exit Warehouse Facility [Member] | Maximum [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Basis spread on variable interest rate | 3.25% | |||||
Debtor-in-Possession Warehouse Facility [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Aggregate funding capacity | $ 1,900,000,000 | |||||
Repayment Terms | 180 days | |||||
Borrowings To Fund Purchase Or Origination Of Residential Loans [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Aggregate funding capacity | $ 1,000,000,000 | $ 750,000,000 | ||||
Days to Transfer Loans | 20 days | |||||
Borrowings To Fund Purchase Or Origination Of Residential Loans [Member] | Maximum [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Repayment Terms | 90 days | |||||
Borrowings to fund repurchase performing HECMs [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Aggregate funding capacity | $ 800,000,000 | |||||
Borrowings to fund repurchase performing HECMs [Member] | Minimum [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Repayment Terms | 180 days | |||||
Borrowings to fund repurchase performing HECMs [Member] | Maximum [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Repayment Terms | 365 days | |||||
Subsequent Event [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Debt Instrument, Financial Statements Delivery Period | 73 days | |||||
Subsequent Event [Member] | Repurchased HECMs And Real Estate Owned [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Security Owned and Pledged as Collateral, Fair Value | $ 212,000,000 |
Corporate Debt Corporate Debt -
Corporate Debt Corporate Debt - Schedule of Corporate Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Amortized cost | $ 1,263,635 | $ 1,995,793 |
Less: Liabilities subject to compromise | 0 | 781,130 |
Total corporate debt | 1,263,635 | 1,214,663 |
Term Loan [Member] | 2018 Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid principal balance | 1,111,501 | |
Amortized cost | $ 1,073,376 | $ 0 |
Weighted- Average Stated Interest Rate | 7.88% | 0.00% |
Term Loan [Member] | 2013 Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid principal balance | $ 1,229,590 | |
Amortized cost | $ 0 | $ 1,214,663 |
Weighted- Average Stated Interest Rate | 0.00% | 5.31% |
Second Lien Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid principal balance | $ 250,000 | |
Amortized cost | $ 190,259 | $ 0 |
Weighted- Average Stated Interest Rate | 9.00% | 0.00% |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid principal balance | $ 538,662 | |
Amortized cost | $ 0 | $ 538,662 |
Weighted- Average Stated Interest Rate | 0.00% | 7.875% |
Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid principal balance | $ 242,468 | |
Amortized cost | $ 0 | $ 242,468 |
Weighted- Average Stated Interest Rate | 0.00% | 4.50% |
Corporate Debt - Additional Inf
Corporate Debt - Additional Information (Details) - USD ($) | Feb. 09, 2018 | Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2013 | Oct. 31, 2012 |
Debt Instrument [Line Items] | |||||||||
Balance outstanding | $ 1,263,635,000 | $ 1,263,635,000 | $ 1,995,793,000 | ||||||
Accrued interest (1) | 0 | 0 | 25,807,000 | ||||||
Principal repayments | $ 110,590,000 | 7,500,000 | $ 21,285,000 | ||||||
Term Loan [Member] | 2013 Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | 1,500,000,000 | ||||||||
Unpaid principal balance | 1,229,590,000 | ||||||||
Balance outstanding | 0 | 0 | 1,214,663,000 | ||||||
Term Loan [Member] | 2018 Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 1,200,000,000 | $ 1,200,000,000 | |||||||
Unpaid principal balance | 1,111,501,000 | 1,111,501,000 | |||||||
Balance outstanding | 1,073,376,000 | $ 1,073,376,000 | 0 | ||||||
Maturity date | Jun. 30, 2022 | ||||||||
Percentage of net sale proceeds from the sale of certain non-core assets | 100.00% | ||||||||
Percentage of net sale proceeds of certain non-ordinary course asset sales and dispositions | 80.00% | ||||||||
Percentageof net cash proceeds from issuance of certain indebtedness | 100.00% | ||||||||
Percentage of excess cash flow | 50.00% | ||||||||
Prepayment premium | 1.00% | ||||||||
Term after entering amendment subject to prepayment premium | 18 months | ||||||||
Payment terms | which interest will be payable (a) with respect to any alternate base rate loan, the last business day of each March, June, September and December, and (b) with respect to any LIBOR loan, the last day of the interest period applicable to the borrowing of which such loan is a part | ||||||||
Term Loan [Member] | 2018 Term Loan [Member] | LIBOR [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest rate basis | LIBOR | ||||||||
LIBOR floor | 1.00% | 1.00% | |||||||
Basis spread on variable interest rate | 6.00% | ||||||||
Term Loan [Member] | 2018 Term Loan [Member] | Base Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest rate basis | alternate base rate | ||||||||
Basis spread on variable interest rate | 5.00% | ||||||||
Term Loan [Member] | 2018 Term Loan And 2013 Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal repayments | $ 110,600,000 | 7,500,000 | |||||||
Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 575,000,000 | ||||||||
Unpaid principal balance | 538,662,000 | ||||||||
Balance outstanding | 0 | $ 0 | 538,662,000 | ||||||
Fixed interest rate | 7.875% | ||||||||
Accrued interest (1) | $ 19,400,000 | ||||||||
Maturity date | Dec. 15, 2021 | ||||||||
Convertible Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 290,000,000 | ||||||||
Unpaid principal balance | $ 242,468,000 | ||||||||
Balance outstanding | 0 | 0 | 242,468,000 | ||||||
Fixed interest rate | 4.50% | ||||||||
Accrued interest (1) | $ 6,400,000 | ||||||||
Maturity date | Nov. 1, 2019 | ||||||||
Payment terms | The Convertible Notes paid interest semi-annually on May 1 and November 1, commencing on May 1, 2013 | ||||||||
Second Lien Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 250,000,000 | $ 250,000,000 | |||||||
Unpaid principal balance | 250,000,000 | 250,000,000 | |||||||
Balance outstanding | $ 190,259,000 | $ 190,259,000 | $ 0 | ||||||
Fixed interest rate | 9.00% | 9.00% | |||||||
Maturity date | Dec. 31, 2024 | ||||||||
Payment terms | The Second Lien Notes pay interest in arrears semi-annually on June 15 and December 15, commencing on June 15, 2018 | ||||||||
Principal amount for which interest may be paid in-kind | $ 50,000,000 | $ 50,000,000 | |||||||
Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 20,000,000 | ||||||||
Amount outstanding in issued LOCs | 19,500,000 | ||||||||
Available capacity | $ 500,000 | ||||||||
Letter of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate borrowing capacity | $ 30,000,000 | $ 30,000,000 | |||||||
Scenario, Forecast [Member] | Term Loan [Member] | 2018 Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal repayments | $ 30,000,000 |
Corporate Debt - Schedule of Ma
Corporate Debt - Schedule of Maturities of Long Term Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||||||||||||||||||||
Principal repayments | $ 110,590 | $ 7,500 | $ 21,285 | ||||||||||||||||||
Scenario, Forecast [Member] | Term Loan [Member] | 2018 Term Loan [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Principal repayments | $ 30,000 | ||||||||||||||||||||
Scenario, Forecast [Member] | Subsequent Event [Member] | Term Loan [Member] | 2018 Term Loan [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Principal amount | $ 15,000 | $ 15,000 | $ 15,000 | $ 15,000 | $ 15,000 | $ 15,000 | $ 15,000 | $ 15,000 | $ 15,000 | $ 15,000 | $ 36,700 | $ 36,700 | $ 26,700 | $ 10,000 | $ 17,500 | $ 17,500 | $ 17,500 |
Mortgage-Backed Debt - Schedule
Mortgage-Backed Debt - Schedule of Mortgage-Backed Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Mortgage-backed debt at fair value | $ 717,188 | $ 348,682 |
Mortgage-backed debt at amortized cost | 0 | 387,200 |
Total mortgage-backed debt | 717,188 | 735,882 |
Mortgage Backed Debt At Fair Value [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid principal balance | $ 721,879 | $ 353,262 |
Weighted-average interest rate | 6.17% | 6.26% |
Mortgage Backed Debt At Amortized Cost [Member] | ||
Debt Instrument [Line Items] | ||
Unpaid principal balance | $ 391,208 | |
Weighted-average interest rate | 0.00% | 6.07% |
Mortgage-Backed Debt [Member] | ||
Debt Instrument [Line Items] | ||
Weighted-average interest rate | 6.17% | 6.16% |
Mortgage-Backed Debt Mortgage-B
Mortgage-Backed Debt Mortgage-Backed Debt - Additional Information (Details) $ in Thousands | Feb. 09, 2018USD ($) |
Fresh Start Adjustments [Member] | |
Debt Instrument [Line Items] | |
Fresh start accounting, increase to mortgage-backed debt | $ 6,246 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | May 02, 2018 | Feb. 09, 2018 | Mar. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 0.4 | ||
Share-based compensation expense | $ 0.5 | ||
Chief Operating Officer [Member] | RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Economic value | $ 0.5 | ||
Non-Employee Directors [Member] | Subsequent Event [Member] | RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs granted (in shares) | 251,632 | ||
Share-based liabilities, (in shares) | 37,746 | ||
Weighted-average grant date fair value (in dollars per share) | $ 5.50 | ||
Maximum [Member] | Chief Operating Officer [Member] | RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available to be earned | 20,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (18) | $ 189 | $ (122) | |
Statutorily defined stockholders, individual ownership percentage | 5.00% | |||
Increase in stock of a corporation percentage threshold | 50.00% | |||
Aggregate testing period | 3 years |
Equity and Earnings (Loss) P104
Equity and Earnings (Loss) Per Share - Additional Information (Detail) $ / shares in Units, $ in Millions | Feb. 09, 2018USD ($)$ / sharesshares | Mar. 31, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares | Jun. 29, 2015shares |
Class of Stock [Line Items] | ||||
Common stock, shares issued | 4,260,433 | 37,373,616 | ||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | ||
Preferred stock, shares issued | 99,931 | 0 | ||
Preferred Share Purchase Rights Trigger Percentage | 4.99% | |||
Period allowed to file shelf registration | 60 days | |||
Percentage of registrable securities required to call for Shelf Registration | 40.00% | |||
Period following Effective Date during which Shelf Registration shall remain effective | 3 years | |||
Percentage of Beneficial Holders of common stock required for Demand Registration | 10.00% | |||
Aggregrate gross proceeds from sale threshold | $ | $ 25 | |||
Period preceding request that Registration Statement shall have been declared effective | 90 days | |||
Common Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Shares of convertible stock | 11,497,500 | |||
Junior Participating Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Unissued warrants | 0.001 | |||
Preferred Stock Dividend Stock Rights | 1 | |||
Convertible Notes [Member] | ||||
Class of Stock [Line Items] | ||||
Convertible Stock Price Trigger | $ / shares | $ 58.80 | |||
Successor [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, shares issued | 4,252,500 | |||
Common stock, par value | $ / shares | $ 0.01 | |||
Preferred stock, shares issued | 100,000 | |||
Conversion multiple | 114.9750 | |||
Period before conversion | 1 year | |||
Redemption price percent | 150.00% | |||
Conversion price per share | $ / shares | $ 8.6975 | |||
Threshold trading days | 45 days | |||
Threshold consecutive trading days | 60 days | |||
Change in conversion price per share | $ / shares | $ 8.6975 | |||
Threshold last trading days | 20 days | |||
Convertible Preferred Stock, Interest Rate For Liquidation Preference | 7.00% | |||
Management Incentive Plan [Member] | Successor [Member] | ||||
Class of Stock [Line Items] | ||||
Shares available for future issuance | 3,193,750 | |||
Series A Warrants [Member] | ||||
Class of Stock [Line Items] | ||||
Convertible Stock Price Trigger | $ / shares | 20.63 | |||
Class Of Warrant Or Right, Fair Value | $ / shares | 1.68 | |||
Series A Warrants [Member] | Common Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 7,245,000 | |||
Series B Warrants [Member] | ||||
Class of Stock [Line Items] | ||||
Convertible Stock Price Trigger | $ / shares | 28.25 | |||
Class Of Warrant Or Right, Fair Value | $ / shares | $ 0.94 | |||
Series B Warrants [Member] | Common Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 5,748,750 |
Equity and Earnings (Loss) P105
Equity and Earnings (Loss) Per Share - Reconciliation of Numerators and Denominators of Basic and Diluted Loss Per Share Computations (Detail) - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Basic Earnings (Loss) Per Share [Abstract] | |||
Net income (loss) available to common stockholders (numerator) | $ 521,007 | $ (54,149) | $ 4,508 |
Weighted-average common shares outstanding (Basic denominator) | 37,374 | 4,253 | 36,412 |
Diluted Earnings (Loss) Per Share [Abstract] | |||
Weighted-average common shares outstanding (Dilutive denominator) | 37,424 | 4,253 | 36,812 |
RSUs [Member] | |||
Diluted Earnings (Loss) Per Share [Abstract] | |||
Effect of dilutive securities | 50 | 0 | 375 |
Stock Options [Member] | |||
Diluted Earnings (Loss) Per Share [Abstract] | |||
Effect of dilutive securities | 0 | 0 | 25 |
Equity and Earnings (Loss) P106
Equity and Earnings (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Dilutive Earnings Per Share (Details) - shares shares in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Dilutive Earnings (Loss) Per Share [Line Items] | |||
Antidilutive securities excluded from computation of dilutive earnings per share | 3,533 | 0 | 3,412 |
Performance Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Dilutive Earnings (Loss) Per Share [Line Items] | |||
Antidilutive securities excluded from computation of dilutive earnings per share | 0 | 0 | 183 |
Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded from Computation of Dilutive Earnings (Loss) Per Share [Line Items] | |||
Antidilutive securities excluded from computation of dilutive earnings per share | 327 | 0 | 63 |
Convertible Notes [Member] | |||
Antidilutive Securities Excluded from Computation of Dilutive Earnings (Loss) Per Share [Line Items] | |||
Antidilutive securities excluded from computation of dilutive earnings per share | 4,932 | 0 | 4,932 |
Convertible Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Dilutive Earnings (Loss) Per Share [Line Items] | |||
Antidilutive securities excluded from computation of dilutive earnings per share | 0 | 11,490 | 0 |
Outstanding Series A and Series B Warrants [Member] | |||
Antidilutive Securities Excluded from Computation of Dilutive Earnings (Loss) Per Share [Line Items] | |||
Antidilutive securities excluded from computation of dilutive earnings per share | 0 | 12,994 | 0 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018Segment | |
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 | 1 Months Ended | 2 Months Ended | 3 Months Ended | |
Feb. 09, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 187,273 | $ 91,215 | $ 245,285 | |
Income (loss) before income taxes | 520,989 | (53,960) | 4,386 | |
Total assets | 13,728,698 | $ 14,164,197 | ||
Intercompany servicing revenue and fees | 128,685 | 48,355 | 113,187 | |
Late fees waived as an incentive for borrowers refinancing loans | 5,100 | 8,600 | 15,600 | |
Intercompany revenues | 16,662 | 13,077 | 28,097 | |
Operating Segments [Member] | Servicing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 145,551 | 56,868 | 147,780 | |
Income (loss) before income taxes | 69,614 | 2,133 | 48,362 | |
Total assets | 2,641,280 | |||
Operating Segments [Member] | Originations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 29,885 | 31,441 | 80,808 | |
Income (loss) before income taxes | 7,977 | (11,782) | 16,328 | |
Total assets | 992,729 | |||
Operating Segments [Member] | Reverse Mortgage [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 13,207 | 4,836 | 22,493 | |
Income (loss) before income taxes | (1,133) | (11,669) | (2,016) | |
Total assets | 9,892,564 | |||
Operating Segments [Member] | Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 89 | 171 | 510 | |
Income (loss) before income taxes | 444,531 | (32,642) | (58,288) | |
Total assets | 389,536 | |||
Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (1,459) | (2,101) | (6,306) | |
Income (loss) before income taxes | 0 | 0 | 0 | |
Total assets | (187,411) | |||
Intercompany [Member] | Operating Segments [Member] | Servicing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intercompany servicing revenue and fees | 800 | 900 | 2,900 | |
Late fees waived as an incentive for borrowers refinancing loans | 300 | 200 | 1,000 | |
Intercompany revenues | $ 900 | $ 1,400 | $ 4,400 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Feb. 15, 2018USD ($) | Oct. 10, 2017USD ($) | Feb. 09, 2018USD ($) | Mar. 31, 2018USD ($)Trust | Mar. 31, 2018USD ($)Trust | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Jan. 09, 2017 |
Loss Contingencies [Line Items] | ||||||||
Inducement fee balance | $ 28,184,000 | $ 28,184,000 | $ 29,256,000 | |||||
Percentage of maximum claim amount, repurchase threshold | 98.00% | 98.00% | ||||||
Reverse loans and real estate owned repurchased from securitization pools | $ 257,100,000 | $ 134,600,000 | $ 226,100,000 | |||||
Repurchased reverse loans and real estate owned held, fair value | 10,959,582,000 | $ 10,959,582,000 | 10,725,232,000 | |||||
Litigation Settlement, Amount Awarded to Other Party | $ 2,950,000 | |||||||
Tax separation agreement date | Apr. 17, 2009 | |||||||
Percentage of equity of the acquirer | 1.00% | |||||||
VIE Primary Beneficiary [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Repurchased reverse loans and real estate owned held, fair value | 585,637,000 | $ 585,637,000 | 301,435,000 | |||||
Non-Residual Trusts [Member] | VIE Primary Beneficiary [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of remaining consolidated securitization trusts | Trust | 7 | |||||||
Repurchased reverse loans and real estate owned held, fair value | $ 293,011,000 | $ 293,011,000 | $ 301,435,000 | |||||
Mandatory Clean-up Call For Residential Loans [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Mandatory clean-up calls required when loan pool falls to percent of original pincipal balance | 10.00% | 10.00% | ||||||
Mandatory Clean-up Call For Residential Loans [Member] | Non-Residual Trusts [Member] | VIE Primary Beneficiary [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Payment of inducement fee | $ 36,500,000 | |||||||
Obligation To Reimburse Third Party As Credit Enhancement To Trusts [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of securitization trusts with reimbursement obligations | Trust | 11 | |||||||
Obligation to reimburse a third party for amounts drawn on LOCs | $ 17,000,000 | $ 17,000,000 | ||||||
Total draws on the LOCs | 11,000,000 | 11,000,000 | ||||||
Additional Borrowing Capacity Floating Rate Reverse Loans [Member] | Reverse Mortgage [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Commitments | 1,000,000,000 | 1,000,000,000 | ||||||
Commitment, capacity available to be drawn at September 30, 2017 | 1,000,000,000 | 1,000,000,000 | ||||||
Commitment, capacity eligible to be drawn through October 1, 2018 | 600,000 | 600,000 | ||||||
Additional Borrowing Capacity Fixed Rate Reverse Loans [Member] | Reverse Mortgage [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Commitments | 200,000 | 200,000 | ||||||
Commitment To Fund Taxes and Insurance [Member] | Reverse Mortgage [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Commitments | 25,400,000 | 25,400,000 | ||||||
Short Term Commitment To Lend [Member] | Originations [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Commitments | 1,500,000,000 | 1,500,000,000 | ||||||
Commitment to Purchase Loans [Member] | Originations [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Commitments to purchase loans | 25,000,000 | 25,000,000 | ||||||
Commitment To Sell Mortgage-backed Securities [Member] | Originations [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Commitments | 2,100,000,000 | 2,100,000,000 | ||||||
Commitment to Purchase Mortgage-backed Securities [Member] | Originations [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Commitments to purchase loans | 440,500,000 | 440,500,000 | ||||||
Repurchased Reverse Loans And Real Estate Owned [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Repurchased reverse loans and real estate owned held, outstanding loan balance | 1,000,000,000 | 1,000,000,000 | ||||||
Repurchased reverse loans and real estate owned held, fair value | 996,800,000 | 996,800,000 | ||||||
Repurchased Reverse Loans And Real Estate Owned [Member] | Commitment to Purchase Loans [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Commitments to purchase loans | 141,400,000 | 141,400,000 | ||||||
Representations And Warranties [Member] | Commitment to Purchase Loans [Member] | Originations [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency accrual | 16,000,000 | 16,000,000 | ||||||
Representations And Warranties [Member] | Maximum [Member] | Commitment to Purchase Loans [Member] | Originations [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Commitments | 69,300,000,000 | 69,300,000,000 | ||||||
Curtailment Obligation Liability [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency recorded in current period | $ 400,000 | (3,500,000) | ||||||
Curtailment Obligation Liability [Member] | Reverse Mortgage [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency accrual | 99,500,000 | 99,500,000 | ||||||
Aggregate estimated amount of reasonably possible losses in excess of recorded liability | 150,400,000 | 150,400,000 | ||||||
Curtailment Obligation Liability [Member] | Originations [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency accrual | 38,100,000 | 38,100,000 | ||||||
Pending Litigation [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency accrual | 33,000,000 | 33,000,000 | ||||||
Pending Litigation [Member] | Minimum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Aggregate estimated amount of reasonably possible losses in excess of recorded liability | 0 | 0 | ||||||
Pending Litigation [Member] | Maximum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Aggregate estimated amount of reasonably possible losses in excess of recorded liability | $ 13,000,000 | $ 13,000,000 | ||||||
Clean-Up Call Agreement [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of remaining trusts | Trust | 8 | 8 | ||||||
Clean-Up Call Agreement [Member] | Maximum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Maximum aggregate amount | $ 6,400,000 | $ 6,400,000 |