Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 06, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | WALTER INVESTMENT MANAGEMENT CORP | |
Entity Central Index Key | 1,040,719 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 37,373,551 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 276,802 | $ 224,598 |
Restricted cash and cash equivalents | 359,420 | 204,463 |
Residential loans at amortized cost, net | 742,904 | 665,209 |
Residential loans at fair value | 11,377,492 | 12,416,542 |
Receivables, net | 151,398 | 267,962 |
Servicer and protective advances, net | 850,867 | 1,195,380 |
Servicing rights, net | 869,981 | 1,029,719 |
Goodwill | 47,747 | 47,747 |
Intangible assets, net | 9,213 | 11,347 |
Premises and equipment, net | 58,210 | 82,628 |
Assets held for sale | 0 | 71,085 |
Other assets | 235,601 | 242,290 |
Total assets | 14,979,635 | 16,458,970 |
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||
Payables and accrued liabilities | 721,191 | 759,011 |
Servicer payables | 346,753 | 146,332 |
Servicing advance liabilities | 509,363 | 783,229 |
Warehouse borrowings | 1,178,320 | 1,203,355 |
Servicing rights related liabilities at fair value | 1,565 | 1,902 |
Corporate debt | 2,022,639 | 2,129,000 |
Mortgage-backed debt | 832,897 | 943,956 |
HMBS related obligations at fair value | 9,598,234 | 10,509,449 |
Deferred tax liabilities, net | 4,907 | 4,774 |
Liabilities held for sale | 0 | 2,402 |
Total liabilities | 15,215,869 | 16,483,410 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock | 0 | 0 |
Common stock | 366 | 364 |
Additional paid-in capital | 598,129 | 596,067 |
Accumulated deficit | (835,738) | (621,804) |
Accumulated other comprehensive income | 1,009 | 933 |
Total stockholders' deficit | (236,234) | (24,440) |
Total liabilities and stockholders' deficit | 14,979,635 | 16,458,970 |
VIE Primary Beneficiary [Member] | ||
ASSETS | ||
Restricted cash and cash equivalents | 33,813 | 45,843 |
Residential loans at amortized cost, net | 431,459 | 462,877 |
Residential loans at fair value | 381,125 | 492,499 |
Receivables, net | 8,392 | 15,798 |
Servicer and protective advances, net | 478,834 | 734,707 |
Other assets | 31,982 | 19,831 |
Total assets | 1,365,605 | 1,771,555 |
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||
Payables and accrued liabilities | 2,497 | 2,985 |
Servicing advance liabilities | 425,468 | 650,565 |
Mortgage-backed debt | 832,897 | 943,956 |
Total liabilities | $ 1,260,862 | $ 1,597,506 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Allowance for loan losses | $ 6,371 | $ 5,167 |
Receivables at fair value | 7,498 | 15,033 |
Allowance for uncollectible advances | 156,561 | 146,781 |
Servicing rights at fair value | 808,830 | 949,593 |
Other assets at fair value | 36,215 | 87,937 |
Payables and accrued liabilities at fair value | 2,783 | 11,804 |
Mortgage-backed debt at fair value | $ 436,921 | $ 514,025 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 37,373,551 | 36,391,129 |
Common stock, shares outstanding, shares | 37,373,551 | 36,391,129 |
VIE Primary Beneficiary [Member] | ||
Mortgage-backed debt at fair value | $ 436,921 | $ 514,025 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUES | ||||
Net servicing revenue and fees | $ 65,029 | $ 111,629 | $ 269,537 | $ 37,803 |
Net gains on sales of loans | 73,013 | 122,014 | 217,914 | 306,667 |
Net fair value gains on reverse loans and related HMBS obligations | 1,810 | 18,627 | 24,384 | 61,485 |
Interest income on loans | 9,802 | 11,332 | 31,271 | 35,352 |
Insurance revenue | 2,236 | 10,000 | 9,826 | 31,644 |
Other revenues | 24,754 | 23,728 | 77,784 | 78,623 |
Total revenues | 176,644 | 297,330 | 630,716 | 551,574 |
EXPENSES | ||||
General and administrative | 137,614 | 151,792 | 386,785 | 417,174 |
Salaries and benefits | 91,544 | 133,199 | 300,572 | 399,519 |
Interest expense | 61,671 | 65,302 | 182,965 | 193,950 |
Depreciation and amortization | 9,741 | 16,580 | 30,715 | 45,543 |
Goodwill and intangible assets impairment | 0 | 97,716 | 0 | 313,128 |
Other expenses, net | 2,576 | 1,206 | 8,413 | 5,609 |
Total expenses | 303,146 | 465,795 | 909,450 | 1,374,923 |
OTHER GAINS (LOSSES) | ||||
Gain on sale of business | 0 | 0 | 67,734 | 0 |
Other net fair value gains (losses) | 3,783 | (3,302) | 761 | (6,265) |
Net gains (losses) on extinguishment of debt | (959) | 13,734 | (1,668) | 14,662 |
Other | 0 | (150) | 0 | (1,706) |
Total other gains | 2,824 | 10,282 | 66,827 | 6,691 |
Loss before income taxes | (123,678) | (158,183) | (211,907) | (816,658) |
Income tax expense | 455 | 55,084 | 2,027 | 59,274 |
Net loss | (124,133) | (213,267) | (213,934) | (875,932) |
Comprehensive loss | $ (124,035) | $ (213,281) | $ (213,858) | $ (875,905) |
Basic and diluted loss per common and common equivalent share | $ (3.38) | $ (5.90) | $ (5.85) | $ (24.45) |
Weighted-average common and common equivalent shares outstanding — basic and diluted | 36,714 | 36,144 | 36,555 | 35,828 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Deficit - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income |
Balance at Dec. 31, 2016 | $ (24,440) | $ 364 | $ 596,067 | $ (621,804) | $ 933 |
Balance, shares at Dec. 31, 2016 | 36,391,129 | ||||
Stockholders' Deficit [Roll Forward] | |||||
Net loss | $ (213,934) | (213,934) | |||
Other comprehensive income, net of tax | 76 | 76 | |||
Share-based compensation | 2,139 | 2,139 | |||
Share-based compensation issuances, net | $ (75) | 2 | (77) | ||
Share-based compensation issuances, net, shares | 982,422 | ||||
Balance at Sep. 30, 2017 | $ (236,234) | $ 366 | $ 598,129 | $ (835,738) | $ 1,009 |
Balance, shares at Sep. 30, 2017 | 37,373,551 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||
Net loss | $ (213,934) | $ (875,932) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Net fair value gains on reverse loans and related HMBS obligations | (24,384) | (61,485) |
Amortization of servicing rights | 19,969 | 13,058 |
Change in fair value of servicing rights | 203,026 | 600,109 |
Change in fair value of servicing rights related liabilities | 0 | (8,486) |
Change in fair value of charged-off loans | (12,396) | (17,781) |
Other net fair value losses | 3,165 | 11,666 |
Accretion of discounts on residential loans and advances | (2,681) | (2,739) |
Accretion of discounts on debt and amortization of deferred debt issuance costs | 23,962 | 25,615 |
Provision for uncollectible advances | 36,798 | 30,775 |
Depreciation and amortization of premises and equipment and intangible assets | 30,715 | 45,543 |
Provision for deferred income taxes | 1,618 | 49,863 |
Share-based compensation | 2,139 | 7,656 |
Purchases and originations of residential loans held for sale | (13,314,135) | (15,553,394) |
Proceeds from sales of and payments on residential loans held for sale | 13,832,907 | 15,861,355 |
Net gains on sales of loans | (217,914) | (306,667) |
Gain on sale of business | (67,734) | 0 |
Goodwill and intangible assets impairment | 0 | 313,128 |
Other | 8,014 | (5,940) |
Changes in assets and liabilities | ||
Decrease (increase) in receivables | 67,678 | (7,279) |
Decrease in servicer and protective advances | 306,980 | 309,093 |
Increase in other assets | (35,585) | (82,724) |
Increase (decrease) in payables and accrued liabilities | (145,351) | 9,625 |
Increase in servicer payables, net of change in restricted cash | 28,560 | 20,113 |
Cash flows provided by operating activities | 531,417 | 375,172 |
Investing activities | ||
Purchases and originations of reverse loans held for investment | (302,032) | (653,471) |
Principal payments received on reverse loans held for investment | 985,989 | 770,636 |
Principal payments received on mortgage loans held for investment | 71,024 | 69,238 |
Payments received on charged-off loans held for investment | 13,217 | 17,827 |
Payments received on receivables related to Non-Residual Trusts | 10,275 | 6,230 |
Proceeds from sales of real estate owned, net | 106,014 | 81,591 |
Purchases of premises and equipment | (3,622) | (29,128) |
Decrease in restricted cash and cash equivalents | 1,841 | 9,778 |
Payments for acquisitions of businesses, net of cash acquired | (1,019) | (1,947) |
Acquisitions of servicing rights, net | (171) | (7,701) |
Proceeds from sale of servicing rights, net | 79,772 | 35,541 |
Proceeds from sale of business | 131,074 | 0 |
Cash outflow from deconsolidation of variable interest entities | (28,425) | 0 |
Other | 8,486 | (3,665) |
Cash flows provided by investing activities | 1,072,423 | 294,929 |
Financing activities | ||
Payments on corporate debt | (121,285) | (480) |
Extinguishments and settlement of debt | 0 | (31,037) |
Proceeds from securitizations of reverse loans | 375,786 | 684,711 |
Payments on HMBS related obligations | (1,420,881) | (958,720) |
Issuances of servicing advance liabilities | 908,868 | 1,526,733 |
Payments on servicing advance liabilities | (1,184,036) | (1,734,252) |
Net change in warehouse borrowings related to mortgage loans | (394,036) | (147,389) |
Net change in warehouse borrowings related to reverse loans | 369,001 | 169,210 |
Proceeds from financing of servicing rights | 0 | 29,742 |
Payments on servicing rights related liabilities | (1,415) | (16,013) |
Payments on mortgage-backed debt | (84,814) | (80,335) |
Other debt issuance costs paid | (4,855) | (9,260) |
Other | 6,031 | (20,157) |
Cash flows used in financing activities | (1,551,636) | (587,247) |
Net increase in cash and cash equivalents | 52,204 | 82,854 |
Cash and cash equivalents at beginning of the period | 224,598 | 202,828 |
Cash and cash equivalents at end of the period | 276,802 | 285,682 |
Supplemental Disclosures of Cash Flow Information | ||
Cash paid for interest | 166,126 | 190,381 |
Cash received for taxes | $ (70,469) | $ (28,155) |
Business and Basis of Presentat
Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation Disclosure | Business and Basis of Presentation Walter Investment Management Corp. and its subsidiaries, or the Company, is an independent originator and servicer 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. The Company operates throughout the U.S. through three reportable segments, Servicing, Originations, and Reverse Mortgage. Refer to Note 13 for additional information related to segment reporting. Certain acronyms and terms used throughout these notes are defined in the Glossary of Terms in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Sale of Insurance Business On December 30, 2016, the Company executed a stock purchase agreement pursuant to which the Company agreed to sell 100% of the stock of its indirect, wholly-owned subsidiary, GTI Holdings Corp., which was the holding company of the Company's primary licensed insurance agency, Green Tree Insurance Agency, Inc., to a wholly-owned subsidiary of Assurant, for a purchase price of $125.0 million in cash, subject to adjustment as specified in the agreement. Under the agreement, an affiliate of Assurant has also agreed to make potential earnout payments to the Company in an aggregate amount of up to $25.0 million in cash, with the amount of such payments to be based upon the gross written premium of certain voluntary homeowners' insurance written by certain affiliates of Assurant over a specified timeframe. As a result of this transaction, the assets and liabilities related to the insurance business, which were included in the Servicing segment, were reclassified to operations held for sale line items on the consolidated balance sheets at December 31, 2016. This transaction closed on February 1, 2017, at which time the Company received $131.1 million in cash, which included a working capital payment. 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 impact of such correction is reflected in the prior periods presented 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. Operating results for the nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . These unaudited interim Consolidated Financial Statements should be read in conjunction with the Company’s audited Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2016 . Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although management is not currently aware of any factors that would significantly change its estimates and assumptions, actual results may differ from these estimates. Recently Adopted Accounting Guidance In March 2016, the FASB issued an accounting standards update revising certain aspects of share-based accounting guidance, which includes income tax and forfeiture consequences. This guidance was effective for the Company beginning January 1, 2017. Adoption of this update did not have a material impact on the Company's income tax expense. The Company elected to continue with its current methodology of estimating expected forfeitures at the date of grant and adjust throughout the vesting term as needed. Recent Accounting Guidance Not Yet Adopted In May 2014, the FASB issued new revenue recognition guidance that supersedes most industry-specific guidance but does exclude insurance contracts and financial instruments. Under the new revenue recognition guidance, entities are required to identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when the entity satisfies a performance obligation. The Company has reviewed the scope of the guidance and monitored the determinations of the FASB Transition Resource Group and concluded that a number of the Company's most significant revenue streams are not within the scope of the standard because the standard does not apply to revenue on contracts accounted for under the transfers and servicing of financial assets or financial instruments standards. Therefore, revenue recognition for these contracts will remain unchanged. While there may be some impact on ancillary revenue streams, the Company does not expect the adoption of this guidance to have a significant impact on the consolidated financial statements. The Company plans to adopt using a modified retrospective method with a cumulative effect adjustment to retained earnings. In January 2016, the FASB issued an accounting standards update that amends the guidance on the classification and measurement of financial instruments. The new standard revises an entity's accounting related to (i) the classification and measurement of investments in equity securities and (ii) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. At September 30, 2017, the Company did not hold any equity securities measured at fair value, but did have certain financial liabilities measured at fair value. The significance of adoption is dependent upon the nature of those financial liabilities carried at fair value at the time of adoption. In February 2016, the FASB issued an accounting standards update that requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset to not recognize lease assets and lease liabilities. In transition, lessees are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, which includes a number of optional practical expedients that entities may elect to apply. This guidance is effective for fiscal years beginning after December 15, 2018, with early application permitted. While the Company 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 is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The adoption may impact the presentation of cash flows, but will not otherwise have a material impact on the consolidated results of operations or financial condition. In October 2016, the FASB issued an accounting standards update that amends the guidance on the classification of income taxes related to the intra-entity transfer of assets other than inventory. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the effect that this guidance will have on its consolidated financial statements. However, the significance of adoption is dependent on the nature of the transactions and corresponding tax laws in effect at the time of adoption. In November 2016, the FASB issued an accounting standards update that amends the guidance on restricted cash within the statement of cash flows. The update amends the classification of restricted cash and cash equivalents to be included within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts. 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 is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The adoption will impact the presentation of the cash flows, but will not otherwise have a material impact on the consolidated results of operations or financial condition. In January 2017, the FASB issued an accounting standards update that amends the guidance on business combinations. The update clarifies the definition of a business and provides a framework that gives entities a basis for making reasonable judgments about whether a transaction should be accounted for as an acquisition of assets or a business. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company will apply this guidance to its assessment of applicable transactions, such as acquisitions and disposals of assets or business, consummated after the adoption date. In January 2017, the FASB issued an accounting standards update that amends the guidance on goodwill. Under the update, goodwill impairment is measured as the amount by which a reporting unit’s carrying value exceeds its fair value, while not exceeding the carrying value of goodwill. The update eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. This guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently considering the timing of adoption and will apply this guidance to applicable impairment tests after the adoption date. In February 2017, the FASB issued an accounting standards update that amends the guidance on derecognition of nonfinancial assets. This guidance clarifies the scope and accounting of a financial asset that meets the definition of an in substance nonfinancial asset and defines the term in substance nonfinancial asset. It also adds guidance for partial sales of nonfinancial assets. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. Based on the Company's current methodologies for accounting for nonfinancial assets, the adoption of this guidance is not expected to have a material impact on its consolidated financial statements. However, upon adoption, the statement of financial position may reflect changes in presentation related to sales of certain real estate owned. The significance of the adoption of this guidance may change at the time of adoption based on the nature of the Company's nonfinancial assets at that time and the corresponding conclusions reached. The Company plans to adopt using a modified retrospective method. 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 is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The new guidance will be applied prospectively on awards modified on or after the adoption date. In August 2017, the FASB issued an accounting standards update that amends the guidance on derivatives and hedging. The guidance reduces the complexity of and simplifies the application of hedge accounting. The guidance also better aligns disclosures with risk management activities. This guidance is effective for the annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company currently does not designate any derivative financial instruments as formal hedge relationships, and therefore, does not utilize hedge accounting. |
Going Concern
Going Concern | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern Disclosure | Going Concern The Company continues to face certain challenges and uncertainties that could have significant adverse effects on its business, liquidity, and financing activities. On October 20, 2017, the Company entered into the RSAs in which the Consenting Senior Noteholders and Consenting Term Lenders and the Company have agreed to the principal terms of a financial restructuring of the Company which will be implemented through the Prepackaged Plan under Chapter 11 of the Bankruptcy Code and will restructure the indebtedness comprising the Company’s Term Loan Claims, Senior Notes Claims and Convertible Notes Claims, as well as the Company’s outstanding common stock. As of November 6, 2017, the holders of approximately 95% of the Term Loans are parties to the Term Loan RSA and approximately 85% of the Senior Notes are parties to the Senior Noteholder RSA. Pursuant to the Prepackaged Plan, it is intended that only the Parent Company will file for reorganization under the Bankruptcy Code. The Company’s operating entities are expected to remain out of Chapter 11 and continue operations in the normal course through the consummation of the Restructuring, which is expected to occur no later than January 31, 2018. The Company commenced solicitation on the Prepackaged Plan on November 6, 2017, and, pursuant to the RSAs, is required to file for reorganization under the Bankruptcy Code by November 30, 2017. The Company intends to complete the reorganization process on an expedited basis, concluding on the Effective Date, which is contemplated to be no later than January 31, 2018. Refer to Notes 3 and 10 for more information on the Company's Prepackaged Chapter 11 Plan restructuring, including the impact on warehouse borrowings and advance financing facilities. The Company is not currently in compliance with, and may be unable to regain and/or maintain compliance with, certain continued listing standards of the NYSE. If the Company is unable to cure any event of noncompliance with any continued listing standard of the NYSE within the applicable timeframe and other parameters set forth by the NYSE, or if the Company fails to maintain compliance with certain continued listing standards that do not provide for a cure period, it will result in the delisting of the Company’s common stock from the NYSE, which could negatively impact the trading price, trading volume and liquidity of, and have other material adverse effects on, the Company’s common stock. If the Company’s common stock is delisted from the NYSE, this could also have negative implications on the Company’s business relationships under the Company’s material agreements with lenders and other counterparties. The Company has been in contact with the NYSE and is working to regain compliance with NYSE continued listing requirements, including, among other things, by restructuring its corporate debt. The Company is also working with the NYSE to avoid delisting due to the Company’s plan to restructure its indebtedness under Chapter 11 of the Bankruptcy Code. The Company continues to monitor other listing standards. No assurance can be given that the Company’s common stock will not be delisted from the NYSE. The Company’s subsidiaries are parties to seller/servicer agreements with, and/or subject to the guidelines and regulations of (collectively, the seller/servicer obligations), the GSEs and various government agencies, including the CFPB, HUD, FHA, VA and Ginnie Mae. These seller/servicer obligations include financial covenants and other requirements as defined by the applicable agency. To the extent that these seller/servicer obligations are not met, the applicable GSE or government agency may, at its option, take action to implement one or more of a variety of remedies including, without limitation, requiring certain Company subsidiaries to deposit funds as security for one or more of such subsidiaries’ obligations to the GSEs or government agencies, imposing sanctions on one or more of such subsidiaries, which could include monetary fines or penalties, forcing one or more subsidiaries to transfer servicing on all or a portion of the mortgage loans such subsidiary services for the applicable GSE or government agency, and/or suspending or terminating the approved seller/servicer status of one or more subsidiaries, which could prohibit or severely limit the ability of one or more subsidiaries to originate, service and/or securitize mortgage loans for the applicable GSE or agency. To date, none of the GSEs or government agencies with which the Company and its subsidiaries do business has communicated any material sanction, suspension or prohibition that would materially adversely affect the Company’s business; however, the GSEs and certain of such government agencies have required frequent reporting regarding the financial status of the Company, including preliminary financial results and the availability to the Company of financing capacity under its existing borrowing facilities. The GSEs and certain of such government agencies have also requested frequent telephonic updates with senior Company management regarding the status of the Company’s debt restructuring initiative and other matters. The Company’s subservicing agreements also contain requirements regarding servicing practices and other matters, and a failure to comply with these requirements could have an adverse impact on the Company’s business and liquidity. The Company continues to engage in communications with key stakeholders, including the GSEs, Ginnie Mae, HUD, regulators and government agencies in connection with the Restructuring and the uncertainties regarding the Company’s ability to continue as a going concern as identified above. The significant risks and uncertainties related to the Company’s Prepackaged Plan raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities and commitments in the normal course of business. The consolidated financial statements do not include any adjustments that might result from the outcome of the going concern uncertainty. |
Company Restructuring
Company Restructuring | 9 Months Ended |
Sep. 30, 2017 | |
Reorganizations [Abstract] | |
Reorganization Disclosure | Company Restructuring As previously disclosed in the Company’s Current Report on Form 8-K dated November 6, 2017, the Company commenced the solicitation of votes to obtain acceptances for a Prepackaged Plan under the Bankruptcy Code, which provides for the restructuring of the Company’s indebtedness consisting of the Company’s 2013 Term Loan, Senior Notes and Convertible Notes, as well as the Company’s outstanding common stock. The Company intends to commence a prepackaged Chapter 11 Case following the conclusion of the solicitation and on or before November 30, 2017. The Company intends to complete the reorganization process on an expedited basis, contemplated to be no later than January 31, 2018. Reference is made to the exhibits to this Quarterly Report on Form 10-Q for further information as to the Prepackaged Plan and the agreements related thereto. On July 31, 2017, the Company entered into the Term Loan RSA, as amended, with lenders holding, as of July 31, more than 50% of the 2013 Term Loans and/or commitments outstanding under the Company’s 2013 Credit Agreement. Pursuant to the Term Loan RSA, in August 2017, the Company made a principal payment of $100.0 million on the 2013 Term Loan, resulting in a loss on extinguishment of $1.0 million , primarily due to the write-off of deferred financing fees. Additionally, in October 2017, the Company made principal payments on the 2013 Term Loan totaling $65.6 million , which included $37.5 million required under the terms of the Term Loan RSA and related amendments and $28.1 million which represented 80% of the gross proceeds from the sale of certain MSRs as required under the Third Amendment to the Credit Agreement. In addition, the Company will be required to repay $37.5 million upon the Effective Date of the Prepackaged Plan, and $72.7 million by February 15, 2018. On October 20, 2017, the Company entered into (i) the Amended and Restated Term Loan RSA with Consenting Term Lenders, and (ii) the Senior Noteholder RSA with the Consenting Senior Noteholders holding, as of October 20, 2017, more than 50% of the Senior Notes under the Senior Notes Indenture. As of November 6, 2017, the holders of more than 85% of the Senior Notes and more than 95% of the 2013 Term Loans are party to the applicable RSA, which requires them to vote to approve the Prepackaged Plan. It is contemplated that only the Parent Company will file for reorganization under Chapter 11. The Company's operating entities, including Ditech Financial and RMS, are expected to continue their operations in the ordinary course throughout the consummation of the Restructuring, although no assurance can be given that this will be the case. The claims in the following classes are impaired under the Prepackaged Plan and entitled to vote to accept or reject the Prepackaged Plan: Term Lenders, Senior Noteholders and Convertible Noteholders. The Bankruptcy Code defines “acceptance” of a plan by a class of: (i) claims as acceptance by creditors in that class that hold at least two-thirds in dollar amount and more than one-half in number of the claims that cast ballots for acceptance or rejection of the plan; and (ii) interests as acceptance by interest holders in that class that hold at least two-thirds in dollar amount of the interests that cast ballots for acceptance or rejection of the plan. In connection with the Restructuring, on November 6, 2017, the Company entered into the Commitment Letter with certain existing warehouse lenders, which, if approved by the Bankruptcy Court, will provide the Company with the DIP Warehouse Facilities of up to $1.9 billion in available warehouse financing during the Chapter 11 Case and one year following the Effective Date of the Prepackaged Plan. Proceeds of the new DIP Warehouse Facilities are intended to refinance RMS’s and Ditech Financial’s existing warehouse and servicer advance facilities and to fund Ditech Financial's and RMS’ continued business operations. The Parent Company will guarantee Ditech Financial’s and RMS’ obligations under the agreement. The DIP Warehouse Facilities will provide that during the Chapter 11 Case, (i) up to $750.0 million will be available to fund Ditech Financial’s origination business, (ii) up to $800.0 million will be available to RMS, and (iii) up to $550.0 million will be available to finance advances related to Ditech Financial’s servicing activities, provided that this sub-limit may be increased to $600.0 million in the event that certain pre-petition servicing advance facilities are unavailable to Ditech Financial during the Chapter 11 Case. Upon the Effective Date of the Prepackaged Plan, the amount available to fund Ditech Financial's originations business under the exit warehouse facility will increase to up to $1.0 billion . As previously disclosed, it is anticipated that, among other things, on the Effective Date: • the Parent Company will be a guarantor of the DIP Warehouse Facilities; • the Company's 2013 Credit Agreement will be amended and restated consistent with the terms of the draft Amended and Restated Credit Agreement as filed on November 6, 2017 with the Form T-3. The Amended and Restated Credit Agreement would among other things: ◦ Extend the maturity thereunder from December 2020 to June 2022 ◦ Increase the interest rate margin to LIBOR plus 6.00% ◦ Require quarterly payments beginning in March 2018 ◦ Amend and expand financial covenants; • the Company’s existing Revolving Credit Facility will be paid in full and terminated; • The Company will issue to holders of Senior Notes claims: ◦ $250.0 million aggregate principal amount of secured second lien notes with current market terms, covenants and conditions for second lien high yield notes; ◦ $100.0 million face amount of Mandatorily Convertible Preferred Stock, on terms set forth in a term sheet to the RSAs, convertible into 73% of the total number of issued and outstanding shares of New Common Stock as of the Effective Date subject to dilution by shares of New Common Stock issued or issuable pursuant to the Management Incentive Plan and by shares of New Common Stock issued after the Effective Date, including shares of New Common Stock issuable pursuant to the Warrants (if issued); and ◦ if the Convertible Noteholders do not vote to accept the Prepackaged Plan, 100% of the New Common Stock issued, subject to dilution by shares of New Common Stock issuable on conversion of the Mandatorily Convertible Preferred Stock and shares of New Common Stock issued or issuable pursuant to the Management Incentive Plan (described below) and shares of New Common Stock issued after the Effective Date. • Solely if the class of Convertible Notes claims votes to accept the Prepackaged Plan: ◦ each holder of a Convertible Note will receive its pro rata share of (i) New Common Stock representing, in the aggregate, 50% of the New Common Stock issued, subject to dilution by shares of New Common Stock issuable upon conversion of the Mandatorily Convertible Preferred Stock, shares of New Common Stock issued or issuable pursuant to the Management Incentive Plan and shares of New Common Stock issued after the Effective Date, including pursuant to the Warrants, and (ii) 50% of two separate classes of 10 year Warrants, on the terms set forth in a term sheet to the RSAs; and ◦ each holder of the Company’s existing common stock will receive its pro rata share of (i) New Common Stock representing, in the aggregate, 50% of the New Common Stock issued, subject to dilution by shares of New Common Stock issuable upon conversion of the Mandatorily Convertible Preferred Stock, shares of New Common Stock issued or issuable pursuant to the Management Incentive Plan and shares of New Common Stock issued after the Effective Date, including pursuant to the Warrants, and (ii) 50% of each class of Warrants. If the Convertible Noteholders do not vote to accept the Prepackaged Plan, then holders of Convertible Notes and holders of the Company’s existing common stock will not receive or retain any property under the Prepackaged Plan, and 100% of the New Common Stock issued on the Effective Date will be issued to the Senior Noteholders, subject to dilution by shares of New Common Stock issuable upon conversion of the Mandatorily Convertible Preferred Stock, shares of New Common Stock issued or issuable pursuant to the Management Incentive Plan and shares of New Common Stock issued after the Effective Date. Upon the Effective Date, the Company's existing common stock, Senior Notes and Convertible Notes will be canceled. The board of directors of the Reorganized Company will consist of nine members, with six directors designated by the Senior Noteholders, and three directors designated by the Company. The Reorganized Company will enter into a post-Restructuring Management Incentive Plan, under which 10% of the New Common Stock (after taking into account the shares to be issued under the Management Incentive Plan) will be reserved for issuance as awards under the Management Incentive Plan. As required by the RSAs, the Company did not make the $5.5 million interest payment due November 1, 2017 on the Company’s Convertible Notes and, as provided for in the indenture governing the Convertible Notes, has entered into the 30 -day grace period to make such payment. Refer to Note 10 for further information on the DIP warehouse facilities and exit warehouse facilities. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities Disclosure | Variable Interest Entities Consolidated Variable Interest Entities Included in Note 7 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2016 are descriptions of the Company’s Consolidated VIEs. Included in the tables below are summaries of the carrying amounts of the assets and liabilities of consolidated VIEs (in thousands): September 30, 2017 Residual Non-Residual Servicer and Protective Advance Financing Facilities Revolving Credit Facilities-Related VIEs Total Assets Restricted cash and cash equivalents $ 12,100 $ 10,682 $ 11,031 $ — $ 33,813 Residential loans at amortized cost, net 431,459 — — — 431,459 Residential loans at fair value — 381,125 — — 381,125 Receivables, net — 7,498 — 894 8,392 Servicer and protective advances, net — — 478,834 — 478,834 Other assets 10,631 1,116 276 19,959 31,982 Total assets $ 454,190 $ 400,421 $ 490,141 $ 20,853 $ 1,365,605 Liabilities Payables and accrued liabilities $ 1,961 $ — $ 536 $ — $ 2,497 Servicing advance liabilities — — 425,468 — 425,468 Mortgage-backed debt 395,976 436,921 — — 832,897 Total liabilities $ 397,937 $ 436,921 $ 426,004 $ — $ 1,260,862 December 31, 2016 Residual Non-Residual Servicer and Protective Advance Financing Facilities Revolving Credit Facilities-Related VIEs Total Assets Restricted cash and cash equivalents $ 13,321 $ 10,257 $ 22,265 $ — $ 45,843 Residential loans at amortized cost, net 462,877 — — — 462,877 Residential loans at fair value — 450,377 — 42,122 492,499 Receivables, net — 15,033 — 765 15,798 Servicer and protective advances, net — — 734,707 — 734,707 Other assets 10,028 1,028 1,440 7,335 19,831 Total assets $ 486,226 $ 476,695 $ 758,412 $ 50,222 $ 1,771,555 Liabilities Payables and accrued liabilities $ 2,140 $ — $ 845 $ — $ 2,985 Servicing advance liabilities — — 650,565 — 650,565 Mortgage-backed debt 429,931 514,025 — — 943,956 Total liabilities $ 432,071 $ 514,025 $ 651,410 $ — $ 1,597,506 Unconsolidated Variable Interest Entities Included in Note 7 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2016 are descriptions of the Company's variable interests in VIEs that it does not consolidate as it has determined that it is not the primary beneficiary of the VIEs. Additionally, refer to Note 16 for information on the Company's transactions with WCO. |
Transfers of Residential Loans
Transfers of Residential Loans | 9 Months Ended |
Sep. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Transfers of Residential Loans Disclosure | Transfers of Residential Loans Sales of Mortgage Loans As part of its originations activities, the Company sells substantially all of its originated or purchased mortgage loans into the secondary market for securitization or to private investors as whole loans. The Company sells conventional-conforming and government-backed mortgage loans through GSE and agency-sponsored securitizations in which mortgage-backed securities are created and sold to third-party investors. The Company also sells non-conforming mortgage loans to private investors. The Company accounts for these transfers as sales. 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 a breach of contractual representations and warranties. Refer to Note 14 for additional information. The following table presents the carrying amounts of the Company’s net assets that relate to its continuing involvement with mortgage loans that have been sold with servicing rights retained and the unpaid principal balance of these sold loans (in thousands): Carrying Value of Net Assets Unpaid Servicing (1) Servicer and Payables and Accrued Liabilities Total September 30, 2017 $ 415,383 $ 17,168 $ (1,565 ) $ 430,986 $ 37,840,960 December 31, 2016 (1) 439,062 21,825 (1,983 ) 458,904 36,116,570 __________ (1) The Company has revised the December 31, 2016 disclosed amount of net servicing rights for which the Company has continuing involvement. The total net servicing rights balance reported in the consolidated balance sheets as of December 31, 2016 was not impacted by this disclosure revision. At September 30, 2017 and December 31, 2016 , 1.7% and 1.3% , respectively, of mortgage loans sold and serviced by the Company were 60 days or more past due. The following table presents a summary of cash flows related to sales of mortgage loans (in thousands): For the Three Months For the Nine Months 2017 2016 2017 2016 Cash proceeds received from sales, net of fees $ 3,985,471 $ 5,643,244 $ 13,789,344 $ 15,933,300 Servicing fees collected (1) 30,668 35,125 91,034 106,304 Repurchases of previously sold loans (2) 36,401 7,974 67,413 24,292 __________ (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 $32.9 million and $1.5 million for the three months ended September 30, 2017 and 2016 , respectively, and $58.2 million and $11.2 million for the nine months ended September 30, 2017 and 2016 , respectively. In connection with these sales, the Company recorded servicing rights using either a fair value model that utilizes Level 3 unobservable inputs or using an agreed upon sales price considered to be Level 2. Refer to Note 8 for information relating to servicing of residential loans. Transfers of Reverse Loans The Company, through RMS, is an approved issuer of Ginnie Mae HMBS. The HMBS are guaranteed by Ginnie Mae and collateralized by participation interests in HECMs insured by the FHA. The Company both originated and purchased HECMs that 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. As of September 30, 2017, the Company did not have any reverse loans remaining in its originations pipeline and had 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 September 30, 2017 , the unpaid principal balance and the carrying value associated with both the reverse loans and the real estate owned pledged as collateral to the securitization pools were $9.1 billion and $9.4 billion , respectively. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Basis for Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A three-tier fair value hierarchy is used to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: Level 1 — Valuation is based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 — Valuation is based on quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 — Valuation is based on inputs that are both significant to the fair value measurement and unobservable. The accounting guidance concerning fair value allows the Company to elect to measure financial instruments at fair value and report the changes in fair value through net income or loss. This election can only be made at certain specified dates and is irrevocable once made. Other than mortgage loans held for sale, which the Company has elected to measure at fair value, the Company does not have a fair value election policy, but rather makes the election on an instrument-by-instrument basis as assets and liabilities are acquired or incurred, other than for those assets and liabilities that are required to be recorded and subsequently measured at fair value. Transfers into and out of the fair value hierarchy levels are assumed to be as of the end of the quarter in which the transfer occurred. During the three and nine months ended September 30, 2017 , the Company transferred $34.8 million in servicing rights carried at fair value from Level 3 to Level 2 as there was direct observable input in a non-active market available to measure these assets. During the three and nine months ended September 30, 2016, the Company transferred $212.6 million in servicing rights carried at fair value from Level 3 to Level 2 as there was direct observable input in a non-active market available to measure these assets. 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. September 30, December 31, Level 2 Assets Mortgage loans held for sale $ 816,381 $ 1,176,280 Servicing rights carried at fair value 42,033 13,170 Freestanding derivative instruments 2,749 34,543 Level 2 assets $ 861,163 $ 1,223,993 Liabilities Freestanding derivative instruments $ 1,916 $ 7,611 Servicing rights related liabilities 1,565 1,902 Level 2 liabilities $ 3,481 $ 9,513 Level 3 Assets Reverse loans $ 10,111,725 $ 10,742,922 Mortgage loans related to Non-Residual Trusts 381,125 450,377 Mortgage loans held for sale 22,119 — Charged-off loans 46,142 46,963 Receivables related to Non-Residual Trusts 7,498 15,033 Servicing rights carried at fair value 766,797 936,423 Freestanding derivative instruments (IRLCs) 33,466 53,394 Level 3 assets $ 11,368,872 $ 12,245,112 Liabilities Freestanding derivative instruments (IRLCs) $ 867 $ 4,193 Mortgage-backed debt related to Non-Residual Trusts 436,921 514,025 HMBS related obligations 9,598,234 10,509,449 Level 3 liabilities $ 10,036,022 $ 11,027,667 The following assets and liabilities are measured on the consolidated balance sheets at fair value on a recurring basis utilizing significant unobservable inputs or Level 3 assumptions in their valuation. The following tables provide a reconciliation of the beginning and ending balances of these assets and liabilities (in thousands): For the Three Months Ended September 30, 2017 Fair Value Total Purchases Sales and Other Originations / Issuances Settlements Transfers Out of Level 3 Fair Value Assets Reverse loans $ 10,440,669 $ 47,398 $ — $ — $ 84,862 $ (461,204 ) $ — $ 10,111,725 Mortgage loans related to Non-Residual Trusts (1) 406,006 13,160 — (16,172 ) — (21,869 ) — 381,125 Mortgage loans held for sale (1) 8,738 (2,201 ) — 16,172 — (590 ) — 22,119 Charged-off loans (2) 49,626 6,157 — — — (9,641 ) — 46,142 Receivables related to Non-Residual Trusts 11,841 (362 ) — — — (3,981 ) — 7,498 Servicing rights carried at fair value 864,108 (81,881 ) 36 1,465 17,916 — (34,847 ) 766,797 Freestanding derivative instruments (IRLCs) 31,687 1,833 — — — (54 ) — 33,466 Total assets $ 11,812,675 $ (15,896 ) $ 36 $ 1,465 $ 102,778 $ (497,339 ) $ (34,847 ) $ 11,368,872 Liabilities Freestanding derivative instruments (IRLCs) $ (2,175 ) $ 1,308 $ — $ — $ — $ — $ — $ (867 ) Mortgage-backed debt related to Non-Residual Trusts (470,600 ) (8,459 ) — — — 42,138 — (436,921 ) HMBS related obligations (9,986,409 ) (45,588 ) — — (97,776 ) 531,539 — (9,598,234 ) Total liabilities $ (10,459,184 ) $ (52,739 ) $ — $ — $ (97,776 ) $ 573,677 $ — $ (10,036,022 ) __________ (1) During the three months ended September 30, 2017 , $16.2 million of loans transferred from mortgage loans related to Non-Residual Trusts to mortgage loans held for sale upon exercising a mandatory call obligation. See Note 14 for additional information on the mandatory call obligations. (2) 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 $0.5 million during the three months ended September 30, 2017 . For the Three Months Ended September 30, 2016 Fair Value Total Purchases and Other Sales Originations / Issuances Settlements Transfers Out of Level 3 Fair Value Assets Reverse loans $ 10,910,237 $ 96,139 $ 157,138 $ — $ 111,645 $ (330,090 ) $ — $ 10,945,069 Mortgage loans related to Non-Residual Trusts 488,179 (1,025 ) — — — (23,534 ) — 463,620 Charged-off loans (1) 51,062 8,880 — — — (10,681 ) — 49,261 Receivables related to Non-Residual Trusts 12,681 4,547 — — — (2,218 ) — 15,010 Servicing rights carried at fair value (2) 1,255,351 (86,036 ) (11,421 ) (12,792 ) 49,912 — (212,630 ) 982,384 Freestanding derivative instruments (IRLCs) 75,477 3,070 — — — (126 ) — 78,421 Total assets $ 12,792,987 $ 25,575 $ 145,717 $ (12,792 ) $ 161,557 $ (366,649 ) $ (212,630 ) $ 12,533,765 Liabilities Freestanding derivative instruments (IRLCs) $ (163 ) $ (352 ) $ — $ — $ — $ — $ — $ (515 ) Servicing rights related liabilities (3) (120,825 ) (9,885 ) — — — 11,443 — (119,267 ) Mortgage-backed debt related to Non-Residual Trusts (548,067 ) (6,182 ) — — — 24,876 — (529,373 ) HMBS related obligations (10,717,148 ) (77,512 ) — — (274,604 ) 369,544 — (10,699,720 ) Total liabilities $ (11,386,203 ) $ (93,931 ) $ — $ — $ (274,604 ) $ 405,863 $ — $ (11,348,875 ) __________ (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 $3.5 million during the three months ended September 30, 2016 . (2) During the three months ended September 30, 2016 , the Company sold mortgage servicing rights with a fair value of $12.8 million and recognized a total net loss on sale of $0.1 million . (3) Included in losses on servicing rights related liabilities are losses from instrument-specific credit risk, which primarily result from changes in assumptions related to discount rates, conditional prepayment rates and conditional default rates, of $4.2 million during the three months ended September 30, 2016 . For the Nine Months Ended September 30, 2017 Fair Value Total Purchases Sales and Other Originations / Issuances Settlements Transfers Out of Level 3 Fair Value Assets Reverse loans $ 10,742,922 $ 162,579 $ 44,769 $ — $ 256,896 $ (1,095,441 ) $ — $ 10,111,725 Mortgage loans related to Non-Residual Trusts (1) 450,377 22,319 — (25,062 ) — (66,509 ) — 381,125 Mortgage loans held for sale (1) — (2,195 ) — 25,062 — (748 ) — 22,119 Charged-off loans (2) 46,963 28,909 — — — (29,730 ) — 46,142 Receivables related to Non-Residual Trusts 15,033 2,740 — — — (10,275 ) — 7,498 Servicing rights carried at fair value 936,423 (200,993 ) 555 5,672 59,987 — (34,847 ) 766,797 Freestanding derivative instruments (IRLCs) 53,394 (19,763 ) — — — (165 ) — 33,466 Total assets $ 12,245,112 $ (6,404 ) $ 45,324 $ 5,672 $ 316,883 $ (1,202,868 ) $ (34,847 ) $ 11,368,872 Liabilities Freestanding derivative instruments (IRLCs) $ (4,193 ) $ 3,326 $ — $ — $ — $ — $ — $ (867 ) Mortgage-backed debt related to Non-Residual Trusts (514,025 ) (22,424 ) — — — 99,528 — (436,921 ) HMBS related obligations (10,509,449 ) (138,195 ) — — (375,786 ) 1,425,196 — (9,598,234 ) Total liabilities $ (11,027,667 ) $ (157,293 ) $ — $ — $ (375,786 ) $ 1,524,724 $ — $ (10,036,022 ) __________ (1) During the nine months ended September 30, 2017 , $25.1 million of loans transferred from mortgage loans related to Non-Residual Trusts to mortgage loans held for sale upon exercising a mandatory call obligation. See Note 14 for additional information on the mandatory call obligations. (2) 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 $12.4 million during the nine months ended September 30, 2017 . For the Nine Months Ended September 30, 2016 Fair Value Total Purchases and Other Sales Originations / Issuances Settlements Transfers Out of Level 3 Fair Value Assets Reverse loans $ 10,763,816 $ 392,348 $ 296,093 $ — $ 357,603 $ (864,791 ) $ — $ 10,945,069 Mortgage loans related to Non-Residual Trusts 526,016 10,556 — — — (72,952 ) — 463,620 Charged-off loans (1) 49,307 32,924 — — — (32,970 ) — 49,261 Receivables related to Non-Residual Trusts 16,542 4,698 — — — (6,230 ) — 15,010 Servicing rights carried at fair value (2) 1,682,016 (600,109 ) 5,685 (41,027 ) 148,449 — (212,630 ) 982,384 Freestanding derivative instruments (IRLCs) 51,519 27,476 — — — (574 ) — 78,421 Total assets $ 13,089,216 $ (132,107 ) $ 301,778 $ (41,027 ) $ 506,052 $ (977,517 ) $ (212,630 ) $ 12,533,765 Liabilities Freestanding derivative instruments (IRLCs) $ (1,070 ) $ 555 $ — $ — $ — $ — $ — $ (515 ) Servicing rights related liabilities (3) (117,000 ) (4,688 ) — — (27,886 ) 30,307 — (119,267 ) Mortgage-backed debt related to Non-Residual Trusts (582,340 ) (21,101 ) — — — 74,068 — (529,373 ) HMBS related obligations (10,647,382 ) (330,863 ) — — (684,711 ) 963,236 — (10,699,720 ) Total liabilities $ (11,347,792 ) $ (356,097 ) $ — $ — $ (712,597 ) $ 1,067,611 $ — $ (11,348,875 ) __________ (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 $17.8 million during the nine months ended September 30, 2016 . (2) During the nine months ended September 30, 2016 , the Company sold mortgage servicing rights with a fair value of $41.0 million and recognized a total net loss on sale of $0.7 million . (3) Included in losses on servicing rights related liabilities are gains from instrument-specific credit risk, which primarily result from changes in assumptions related to discount rates, conditional prepayment rates and conditional default rates, of $9.7 million during the nine months ended September 30, 2016 . All gains and losses on assets and liabilities measured at fair value on a recurring basis and classified as Level 3 within the fair value hierarchy, with the exception of gains and losses on 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 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 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 loss. Total gains and losses included in the financial statement line items disclosed above include interest income and interest expense at the stated rate for interest-bearing assets and liabilities, respectively, accretion and amortization, and the impact of the changes in valuation inputs and assumptions. The Company’s Valuation Committee determines and approves valuation policies and unobservable inputs used to estimate the fair value of items measured at fair value on a recurring basis. The Valuation Committee, consisting of certain members of the senior executive management team, meets on a quarterly basis to review the assets and liabilities that require fair value measurement, including how each asset and liability has actually performed in comparison to the unobservable inputs and the projected performance. The Valuation Committee also reviews related available market data. The following is a description of the methods used to estimate the fair values of the Company’s assets and liabilities measured at fair value on a recurring basis, as well as the basis for classifying these assets and liabilities as Level 2 or 3 within the fair value hierarchy. The Company’s valuations consider assumptions that it believes a market participant would consider in valuing the assets and liabilities, the most significant of which are disclosed below. The Company reassesses and periodically adjusts the underlying inputs and assumptions used in the valuations for recent historical experience, as well as for current and expected relevant market conditions. Residential loans • Reverse loans, mortgage loans related to Non-Residual Trusts and charged-off loans — These loans are not traded in an active, open market with readily observable prices. Accordingly, the Company estimates fair value using Level 3 unobservable market inputs. The estimated fair value is based on the net present value of projected cash flows over the estimated life of the loans. The discount rate assumption for these assets considers, as applicable, collateral and credit risk characteristics of the loans, collection rates, current market interest rates, expected duration, and current market yields. • Mortgage loans held for sale — These loans are 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 7 for additional information on freestanding derivative financial instruments. Servicing rights related liabilities — The fair value of the MSR liabilities related to NRM sales is consistent with the fair value methodology of the related servicing rights. Mortgage-backed debt related to Non-Residual Trusts — This debt is not traded in an active, open market with readily observable prices. Accordingly, the Company estimates fair value using Level 3 unobservable market inputs. The estimated fair value of the debt is based on the net present value of the projected principal and interest payments owed for the estimated remaining life of the securitization trusts. An analysis of the credit assumptions for the underlying collateral in each of the securitization trusts is performed to determine the required payments to bondholders. HMBS related obligations — These obligations are not traded in an active, open market with readily observable prices. Accordingly, the Company estimates fair value using Level 3 unobservable market inputs. The estimated fair value is based on the net present value of projected cash flows over the estimated life of the liabilities. The discount rate assumption for these liabilities is based on an assessment of current market yields for HMBS, expected duration, and current market interest rates. The yield on seasoned HMBS is adjusted based on the duration of each HMBS and assuming a constant spread to LIBOR. The following tables present the significant unobservable inputs used in the fair value measurement of the assets and liabilities described above. The Company utilizes a discounted cash flow model to estimate the fair value of all Level 3 assets and liabilities included on the Consolidated Financial Statements at fair value on a recurring basis, with the exception of IRLCs for which the Company utilizes a market approach. Significant increases or decreases in any of the inputs disclosed below could result in a significantly lower or higher fair value measurement. September 30, 2017 December 31, 2016 Significant (1) (2) Range of Input (3) Weighted (3) Range of Input (3) Weighted (3) Assets Reverse loans Weighted-average remaining life in years (4) 0.5 - 10.5 4.1 0.6 - 10.2 3.8 Conditional repayment rate 12.51% - 71.58% 28.35 % 13.23% - 55.32% 28.48 % Discount rate 2.95% - 4.20% 3.34 % 1.93% - 3.69% 2.93 % Mortgage loans related to Non-Residual Trusts Conditional prepayment rate 2.22% - 2.72% 2.52 % 1.98% - 2.67% 2.27 % Conditional default rate 0.90% - 4.55% 2.31 % 1.02% - 4.25% 2.61 % Loss severity 88.49% - 100.00% 99.24 % 79.98% - 100.00% 96.61 % Discount rate 8.32% 8.32 % 8.00% 8.00 % Mortgage loans held for sale Conditional prepayment rate 4.81% - 5.85% 5.16 % — — Conditional default rate 2.46% - 3.33% 2.76 % — — Loss severity 86.65% - 99.40% 93.96 % — — Discount rate 9.80% 9.80 % — — Charged-off loans Collection rate 2.82% - 4.63% 2.91 % 2.69% - 3.55% 2.74 % Discount rate 28.00% 28.00 % 28.00% 28.00 % Receivables related to Non-Residual Trusts Conditional prepayment rate 2.55% - 3.31% 2.90 % 2.22% - 3.17% 2.65 % Conditional default rate 1.77% - 5.12% 3.05 % 2.32% - 4.66% 3.34 % Loss severity 86.80% - 100.00% 97.93 % 77.88% - 100.00% 94.51 % Discount rate 0.50% 0.50 % 0.50% 0.50 % Servicing rights carried at fair value Weighted-average remaining life in years (4) 2.4 - 7.0 5.7 2.6 - 7.4 6.0 Discount rate 9.91% - 14.81% 11.68 % 10.68% - 14.61% 11.56 % Conditional prepayment rate 6.55% - 24.35% 10.70 % 5.76% - 21.67% 9.09 % Conditional default rate 0.04% - 3.68% 0.90 % 0.04% - 2.97% 0.88 % Cost to service $62 - $1,260 $133 $62 - $1,260 $128 Interest rate lock commitments Loan funding probability 1.00% - 100.00% 60.95 % 16.00% - 100.00% 75.86 % Fair value of initial servicing rights multiple (5) 0.01 - 5.27 2.69 0.01 - 5.98 3.06 September 30, 2017 December 31, 2016 Significant (1) (2) Range of Input (3) Weighted (3) Range of Input (3) Weighted (3) Liabilities Interest rate lock commitments Loan funding probability 37.34% - 100.00% 81.15 % 34.40% - 100.00% 83.36 % Fair value of initial servicing rights multiple (5) 0.12 - 4.92 3.47 0.04 - 6.04 3.69 Mortgage-backed debt related to Non-Residual Trusts Conditional prepayment rate 2.55% - 3.31% 2.90 % 2.22% - 3.17% 2.65 % Conditional default rate 1.77% - 5.12% 3.05 % 2.32% - 4.66% 3.34 % Loss severity 86.80% - 100.00% 97.93 % 77.88% - 100.00% 94.51 % Discount rate 6.00% 6.00 % 6.00% 6.00 % HMBS related obligations Weighted-average remaining life in years (4) 0.4 - 8.0 3.6 0.4 - 7.2 3.2 Conditional repayment rate 12.80% - 86.77% 32.69 % 11.49% - 57.76% 27.74 % Discount rate 2.61% - 4.01% 3.35 % 1.50% - 3.17% 2.56 % __________ (1) Conditional repayment rate includes assumptions for both voluntary and involuntary rates as well as assumptions for the assignment of HECMs to HUD, in accordance with obligations as servicer. (2) Voluntary and involuntary prepayment rates have been presented as conditional prepayment rate and conditional default rate, respectively. (3) With the exception of loss severity, fair value of initial servicing rights embedded in IRLCs and discount rate on charged-off loans, all significant unobservable inputs above are based on the related unpaid principal balance of the underlying collateral, or in the case of HMBS related obligations, the balance outstanding. Loss severity is based on projected liquidations. Fair value of servicing rights embedded in IRLCs represents a multiple of the annual servicing fee. The discount rate on charged-off loans is based on the loan balance at fair value. (4) Represents the remaining weighted-average life of the related unpaid principal balance or balance outstanding of the underlying collateral adjusted for assumptions for conditional repayment rate, conditional prepayment rate and conditional default rate, as applicable. (5) Fair value of servicing rights embedded in IRLCs, which represents a multiple of the annual servicing fee, excludes the impact of certain IRLCs identified as servicing released for which the Company does not ultimately realize the benefits. Fair Value Option With the exception of freestanding derivative instruments, the Company has elected the fair value option for the assets and liabilities described above as measured at fair value on a recurring basis. The fair value option was elected for these assets and liabilities as the Company believes fair value best reflects their expected future economic performance. Presented in the table below is the estimated fair value and unpaid principal balance of loans and debt instruments that have contractual principal amounts and for which the Company has elected the fair value option (in thousands): September 30, 2017 December 31, 2016 Estimated Unpaid Principal Estimated Unpaid Principal Loans at fair value under the fair value option Reverse loans (1) $ 10,111,725 $ 9,754,214 $ 10,742,922 $ 10,218,007 Mortgage loans held for sale (1) 838,500 812,134 1,176,280 1,148,897 Mortgage loans related to Non-Residual Trusts 381,125 431,423 450,377 513,545 Charged-off loans 46,142 2,371,073 46,963 2,439,318 Total $ 11,377,492 $ 13,368,844 $ 12,416,542 $ 14,319,767 Debt instruments at fair value under the fair value option Mortgage-backed debt related to Non-Residual Trusts $ 436,921 $ 439,523 $ 514,025 $ 518,317 HMBS related obligations (2) 9,598,234 9,139,847 10,509,449 9,916,383 Total $ 10,035,155 $ 9,579,370 $ 11,023,474 $ 10,434,700 __________ (1) Includes loans that collateralize master repurchase agreements. Refer to Note 10 for additional information. (2) For HMBS related obligations, the unpaid principal balance represents the balance outstanding. Included in mortgage loans related to Non-Residual Trusts are loans that are 90 days or more past due that have been deemed to have no fair value at September 30, 2017 as a result of severity rates being greater than 100%. The fair value of these loans is $1.6 million at December 31, 2016 . These loans have an unpaid principal balance of $27.5 million and $29.5 million at September 30, 2017 and December 31, 2016 , respectively. Mortgage loans held for sale that are 90 days or more past due were $16.4 million at September 30, 2017 and insignificant at December 31, 2016 . Charged-off loans are predominantly 90 days or more past due. Items Measured at Fair Value on a Non-Recurring Basis The Company held real estate owned, net of $114.2 million and $104.6 million at September 30, 2017 and December 31, 2016 , respectively. In addition, the Company had loans that were in the process of foreclosure of $368.8 million and $418.4 million at September 30, 2017 and December 31, 2016 , respectively, which are included in residential loans at amortized cost, net and residential loans at fair value on the consolidated balance sheets. Real estate owned, net is included on the consolidated balance sheets within other assets and is measured at net realizable value on a non-recurring basis utilizing significant unobservable inputs or Level 3 assumptions in their valuation. The following table presents the significant unobservable input used in the fair value measurement of real estate owned, net: September 30, 2017 December 31, 2016 Significant Range of Input Weighted Range of Input Weighted Real estate owned, net Loss severity (1) 0.00% - 59.80% 7.02 % 0.00% - 61.61% 7.30 % __________ (1) Loss severity is based on the unpaid principal balance of the related loan at the time of foreclosure. The Company held real estate owned, net in the Reverse Mortgage and Servicing segments and Other non-reportable segment of $99.9 million , $13.2 million and $1.1 million at September 30, 2017 , respectively, and $90.7 million , $12.9 million and $1.0 million at December 31, 2016 , respectively. In determining fair value, the Company either obtains appraisals or performs a review of historical severity rates of real estate owned previously sold by the Company. When utilizing historical severity rates, the properties are stratified by collateral type and/or geographical concentration and length of time held by the Company. The severity rates are reviewed for reasonableness by comparison to third-party market trends and fair value is determined by applying severity rates to the stratified population. In the determination of fair value of real estate owned associated with reverse mortgages, the Company considers amounts typically covered by FHA insurance. Management approves valuations that have been determined using the historical severity rate method. Fair Value of Other Financial Instruments The following table presents the carrying amounts and estimated fair values of financial assets and liabilities that are not recorded at fair value on a recurring or non-recurring basis and their respective levels within the fair value hierarchy (in thousands). This table excludes cash and cash equivalents, restricted cash and cash equivalents, servicer payables and warehouse borrowings as these financial instruments are highly liquid or short-term in nature and as a result, their carrying amounts approximate fair value. September 30, 2017 December 31, 2016 Fair Value Carrying Estimated Carrying Estimated Financial assets Residential loans at amortized cost, net (1) Level 3 $ 449,160 $ 451,956 $ 480,920 $ 490,562 Servicer and protective advances, net Level 3 850,867 787,260 1,195,380 1,147,155 Financial liabilities Servicing advance liabilities (2) Level 3 508,991 508,936 781,734 782,570 Corporate debt (3) Level 2 2,020,897 1,539,010 2,126,176 1,967,518 Mortgage-backed debt carried at amortized cost Level 3 395,976 401,944 429,931 435,679 __________ (1) Excludes loans subject to repurchase from Ginnie Mae and the related liability. The December 31, 2016 amounts disclosed above have been revised to reflect this exclusion. (2) The carrying amounts of servicing advance liabilities are net of deferred issuance costs, including those relating to line-of-credit arrangements, which are recorded in other assets. (3) The carrying amounts of corporate debt are net of the 2013 Revolver deferred issuance costs, which are recorded in other assets on the consolidated balance sheets. The following is a description of the methods and significant assumptions used in estimating the fair value of the Company’s financial instruments that are not measured at fair value on a recurring or non-recurring basis. Residential loans at amortized cost, net — The methods and assumptions used to estimate the fair value of residential loans carried at amortized cost are the same as those described above for mortgage loans related to Non-Residual Trusts. Servicer and protective advances, net — The estimated fair value of these advances is based on the net present value of expected cash flows. The determination of expected cash flows includes consideration of recoverability clauses in the Company’s servicing agreements, as well as assumptions related to the underlying collateral and when proceeds may be used to recover these receivables. Servicing advance liabilities — The estimated fair value of the majority of these liabilities approximates carrying value as these liabilities bear interest at a rate that is adjusted regularly based on a market index. Corporate debt — The Company’s 2013 Term Loan, Convertible Notes, and Senior N |
Freestanding Derivative Financi
Freestanding Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Freestanding Derivative Financial Instruments Disclosure | Freestanding Derivative Financial Instruments The following table provides the total notional or contractual amounts and related fair values of derivative assets and liabilities as well as cash margin (in thousands): September 30, 2017 December 31, 2016 Notional/ Fair Value Notional/ Fair Value Derivative Derivative Derivative Derivative Interest rate lock commitments $ 1,850,244 $ 33,466 $ 867 $ 3,046,549 $ 53,394 $ 4,193 Forward sales commitments 2,135,500 2,740 1,635 3,978,000 29,471 7,609 MBS purchase commitments 272,000 9 281 623,500 5,072 2 Total derivative instruments $ 36,215 $ 2,783 $ 87,937 $ 11,804 Cash margin $ 1,043 $ 777 $ — $ 30,941 Derivative positions subject to netting arrangements include all forward sale commitments, MBS purchase commitments, and cash margin, as reflected in the table above, and allow the Company to net settle asset and liability positions, as well as associated cash margin, with the same counterparty. After consideration of these netting arrangements and offsetting positions by counterparty, the total net settlement amount as it relates to these positions were asset positions of $1.5 million and $5.5 million , and liability positions of $0.6 million and $9.0 million , at September 30, 2017 and December 31, 2016 , respectively. A master netting arrangement with one of the Company’s counterparties also allows for offsetting derivative positions and margin against amounts associated with the master repurchase agreement with that same counterparty. At September 30, 2017 , the Company’s net asset position with that counterparty of $3.6 million was comprised of a net derivative asset position of $0.4 million and $4.0 million of over-collateralized positions, partially offset by a cash margin received of $0.8 million . The Company also has a master netting arrangement with another of the Company’s counterparties, which also allows for offsetting derivative positions and margin against amounts associated with the master repurchase agreement with the same counterparty. At September 30, 2017 , the Company’s net derivative liability position with that counterparty was $0.2 million . Under the master netting arrangement, the Company is able to utilize certain over-collateralized positions and excess cash deposited with the counterparty associated with the master repurchase agreement to reduce potential cash margin posting requirements on derivative transactions. At September 30, 2017 , there were $7.9 million of over-collateralized positions and $3.2 million in excess cash deposited with the counterparty related to the master repurchase agreement. The master netting agreement does not obligate the counterparty to transfer cash margin to the Company related to the master repurchase agreement over-collateralization and excess cash positions. Over collateralized positions on master repurchase agreements are not reflected as margin in the table above. Refer to Note 6 for a summary of the gains and losses on freestanding derivative instruments. |
Servicing of Residential Loans
Servicing of Residential Loans | 9 Months Ended |
Sep. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Servicing of Residential Loans Disclosure | Servicing of Residential Loans The Company services residential loans and real estate owned for itself and on behalf of third-party credit owners. The Company’s total servicing portfolio consists of accounts serviced for others for which servicing rights have been capitalized, accounts subserviced for others, and residential loans and real estate owned carried on the consolidated balance sheets, but excludes charged-off loans managed by the Servicing segment. Provided below is a summary of the Company’s total servicing portfolio (dollars in thousands): September 30, 2017 December 31, 2016 Number Unpaid Principal Number Unpaid Principal Third-party credit owners Capitalized servicing rights 925,034 $ 102,525,963 1,032,676 $ 112,936,287 Capitalized subservicing (1) 54,923 3,884,747 130,018 7,426,803 Subservicing 723,280 101,089,228 804,461 113,392,035 Total third-party servicing portfolio 1,703,237 207,499,938 1,967,155 233,755,125 On-balance sheet residential loans and real estate owned 89,249 11,892,038 97,388 12,690,018 Total servicing portfolio 1,792,486 $ 219,391,976 2,064,543 $ 246,445,143 __________ (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 (in thousands): For the Three Months For the Nine Months 2017 2016 2017 2016 Servicing fees (1) (2) $ 119,253 $ 172,780 $ 381,800 $ 527,616 Incentive and performance fees (1) 12,807 17,158 44,756 54,941 Ancillary and other fees (1) (3) 20,783 23,434 66,038 73,101 Servicing revenue and fees 152,843 213,372 492,594 655,658 Amortization of servicing rights (4) (5) (5,018 ) (5,822 ) (19,969 ) (13,058 ) Change in fair value of servicing rights (82,796 ) (86,036 ) (203,026 ) (600,109 ) Change in fair value of servicing rights related liabilities (2) (6) — (9,885 ) (62 ) (4,688 ) Net servicing revenue and fees $ 65,029 $ 111,629 $ 269,537 $ 37,803 __________ (1) Includes subservicing fees and incentive, performance, ancillary and other fees related to servicing assets held by WCO of $1.3 million and $0.2 million , respectively, for the three months ended September 30, 2016 and $3.5 million and $0.5 million , respectively, for the nine months ended September 30, 2016 . (2) Includes a pass-through of $3.5 million and $6.5 million relating to servicing rights sold to WCO for the three and nine months ended September 30, 2016 , respectively. (3) Includes late fees of $14.2 million and $15.2 million for the three months ended September 30, 2017 and 2016 , respectively, and $44.7 million and $48.9 million for the nine months ended September 30, 2017 and 2016 , respectively. (4) Includes amortization of a servicing liability of $1.1 million and $2.4 million for the three months ended September 30, 2017 and 2016 , respectively, and $3.2 million and $6.7 million for the nine months ended September 30, 2017 and 2016 , respectively. (5) Includes impairment of servicing rights and a servicing liability of $3.7 million and $14.8 million for the three and nine months ended September 30, 2017 , respectively. (6) Includes interest expense on servicing rights related liabilities, which represents the accretion of fair value, of $5.0 million and $12.0 million for the three and nine months ended September 30, 2016 , 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): For the Nine Months For the Nine Months Mortgage Loan Reverse Loan Mortgage Loan Reverse Loan Balance at beginning of the period $ 74,621 $ 5,505 $ 99,302 $ 7,258 Sales — — (130 ) — Amortization of servicing rights (1) (7,184 ) (1,147 ) (15,545 ) (1,337 ) Impairment of servicing rights (2) (10,644 ) — (19 ) — Balance at end of the period $ 56,793 $ 4,358 $ 83,608 $ 5,921 __________ (1) Includes amortization of servicing rights for the mortgage loan class and the reverse loan class of $2.0 million and $0.4 million , respectively, for the three months ended September 30, 2017 and $4.9 million and $0.4 million , respectively, for the three months ended September 30, 2016 . (2) Includes impairment of servicing rights related to the mortgage loan class of $1.6 million for the three months ended September 30, 2017 . Servicing rights accounted for at amortized cost are evaluated for impairment by strata based on their estimated fair values. The risk characteristics used to stratify servicing rights for purposes of measuring impairment are the type of loan products, which consist of manufactured housing loans, first lien residential mortgages and second lien residential mortgages for the mortgage loan class, and reverse mortgages for the reverse loan class. The fair value of servicing rights for the mortgage loan class and the reverse loan class was $57.5 million and $5.3 million , respectively at September 30, 2017 , and $79.9 million and $7.3 million , respectively, at December 31, 2016 . Fair value was estimated using the present value of projected cash flows over the estimated period of net servicing income. The estimation of fair value requires significant judgment and uses key economic inputs and assumptions, which are provided in the table below: September 30, 2017 December 31, 2016 Mortgage Loan Reverse Loan Mortgage Loan Reverse Loan Weighted-average remaining life in years (1) 4.4 2.8 5.1 2.6 Weighted-average discount rate 13.00 % 15.00 % 13.00 % 15.00 % Conditional prepayment rate (2) 5.80 % N/A 6.51 % N/A Conditional default rate (2) 2.46 % N/A 2.33 % N/A Conditional repayment rate (3) N/A 35.00 % N/A 32.28 % __________ (1) Represents the remaining weighted-average life of the related unpaid principal balance of the underlying collateral adjusted for assumptions for conditional repayment rate, conditional prepayment rate and conditional default rate, as applicable. (2) Voluntary and involuntary prepayment rates have been presented as conditional prepayment rate and conditional default rate, respectively. (3) Conditional repayment rate includes assumptions for both voluntary and involuntary rates as well as assumptions for the assignment of HECMs to HUD, in accordance with obligations as servicer. The valuation of servicing rights is affected by the underlying assumptions above. Should the actual performance and timing differ materially from the Company’s projected assumptions, the estimate of fair value of the servicing rights could be materially different. Servicing Rights Carried at Fair Value The following table summarizes the activity in servicing rights carried at fair value (in thousands): For the Three Months For the Nine Months 2017 2016 2017 2016 Balance at beginning of the period $ 870,758 $ 1,255,351 $ 949,593 $ 1,682,016 Purchases 36 497 555 22,336 Servicing rights capitalized upon sales of loans (1) 69,266 49,912 122,562 148,449 Sales (1) (48,434 ) (12,792 ) (60,854 ) (41,027 ) Other — (11,918 ) — (16,651 ) Change in fair value due to: Changes in valuation inputs or other assumptions (2) (51,539 ) (25,922 ) (103,820 ) (412,095 ) Other changes in fair value (3) (31,257 ) (60,114 ) (99,206 ) (188,014 ) Total change in fair value (82,796 ) (86,036 ) (203,026 ) (600,109 ) Balance at end of the period (4) $ 808,830 $ 1,195,014 $ 808,830 $ 1,195,014 __________ (1) During the third quarter of 2017, the disclosure above was revised to reflect the capitalization of servicing rights associated with co-issue MSR with NRM in the amount of $49.9 million , which increased the amount of servicing rights capitalized upon sales of loans as well as the offsetting sales of servicing rights lines shown above. The impacts to the first, second and third quarters of 2017 were $16.0 million , $17.8 million and $16.1 million , respectively. The total servicing rights reported in the consolidated balance sheets was not impacted by this disclosure revision. (2) Represents the change in fair value typically resulting from market-driven changes in interest rates and prepayment speeds. (3) Represents the realization of expected cash flows over time. (4) Includes servicing rights that were sold to WCO and accounted for as a financing transaction of $34.0 million at September 30, 2016 . The fair value of servicing rights accounted for at fair value was estimated using the present value of projected cash flows over the estimated period of net servicing income. The estimation of fair value requires significant judgment and uses key economic inputs and assumptions, which are described in Note 6. Should the actual performance and timing differ materially from the Company's projected assumptions, the estimate of fair value of the servicing rights could be materially different. The following table summarizes the hypothetical effect on the fair value of servicing rights carried at fair value using adverse changes of 10% and 20% to the weighted average of the significant assumptions used in valuing these assets (dollars in thousands): September 30, 2017 December 31, 2016 Decline in fair value due to Decline in fair value due to Assumption 10% adverse change 20% adverse change Assumption 10% adverse change 20% adverse change Weighted-average discount rate 11.68 % $ (32,327 ) $ (62,154 ) 11.56 % $ (41,926 ) $ (80,512 ) Weighted-average conditional prepayment rate 10.70 % (37,357 ) (71,866 ) 9.09 % (30,513 ) (59,083 ) Weighted-average conditional default rate 0.90 % (28,308 ) (54,664 ) 0.88 % (28,370 ) (57,854 ) The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of an adverse variation in a particular assumption on the fair value of the servicing rights is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change. Fair Value of Originated Servicing Rights For mortgage loans sold with servicing retained, the Company used the following inputs and assumptions to determine the fair value of servicing rights at the dates of sale. These servicing rights are included in servicing rights capitalized upon sales of loans in the table presented above that summarizes the activity in servicing rights accounted for at fair value. For the Three Months For the Nine Months 2017 (1) 2016 2017 (1) 2016 Weighted-average life in years 6.1 5.8 6.4 6.0 Weighted-average discount rate 14.71% 12.14% 14.20% 12.51% Weighted-average conditional prepayment rate 10.36% 11.32% 9.14% 10.11% Weighted-average conditional default rate 0.42% 0.18% 0.44% 0.31% __________ (1) Excludes inputs and assumptions related to servicing rights capitalized under the Company's co-issue program with NRM, which are classified as Level 2. |
Payables and Accrued Liabilitie
Payables and Accrued Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Payables and Accrued Liabilities Disclosure | Payables and Accrued Liabilities Payables and accrued liabilities consist of the following (in thousands): September 30, December 31, Loans subject to repurchase from Ginnie Mae $ 293,744 $ 184,289 Curtailment liability 122,739 121,305 Accounts payable and accrued liabilities 119,935 155,556 Employee-related liabilities 44,205 91,063 Originations liability 31,237 62,969 Accrued interest payable 22,973 9,414 Servicing rights and related advance purchases payable 15,075 18,187 Uncertain tax positions (1) 7,077 9,414 Derivative instruments 2,783 11,804 Payables to insurance carriers — 5,452 Margin payable on derivative instruments 777 30,941 Other 60,646 58,617 Total payables and accrued liabilities $ 721,191 $ 759,011 __________ (1) Included in the uncertain tax position at December 31, 2016 is $2.5 million related to the sale of the insurance business as described in Note 1. In connection with the closing of the sale on February 1, 2017, the uncertain tax position related to the insurance business was reversed. Costs Associated with Exit Activities During 2015, the Company took distinct actions to improve efficiencies within the organization, which included re-branding its mortgage business by consolidating Ditech Mortgage Corp and Green Tree Servicing into one legal entity with one brand. Additionally, the Company took measures to restructure its mortgage loan servicing operations and improve the profitability of the reverse mortgage business by streamlining its geographic footprint and strengthening its retail originations channel. These actions resulted in costs relating to the closing of offices and the termination of certain employees, as well as other expenses to institute efficiencies. The Company completed these activities in the fourth quarter of 2015. Furthermore, the Company made the decision during the fourth quarter of 2015 to exit the consumer retail channel of the Originations segment. The actions to improve efficiencies, re-brand the mortgage business, restructure the servicing operations and exit from the consumer retail channel are collectively referred to as the 2015 Actions herein. In addition, during 2016, the Company initiated actions in connection with its continued efforts to enhance efficiencies and streamline processes, which included various organizational changes to the scale and proficiency of the Company's leadership team and support functions. Further, effective January 2017, the Company exited the reverse mortgage originations business, while maintaining its reverse mortgage servicing operations. These actions resulted in costs relating to the termination of certain employees and closing of offices. These actions are collectively referred to as the 2016 Actions herein. The Company continues with the transformation of the business during 2017 in an effort to optimize the workforce, processes and functional locations of its businesses as it seeks to achieve sustainable growth. Accordingly, the Company has incurred and will continue to incur costs, including severance and related costs, office closures, and other costs in connection with its transformation efforts during 2017. The actions that have been and will be taken in connection with these efforts are collectively referred to as the 2017 Actions herein. Over the next few years, the Company intends to consolidate its operations into three “core” Ditech sites - Fort Washington, PA ; Jacksonville, FL ; and Tempe, AZ ; and one “core” RMS site - Houston, TX . The Irving, TX location is expected to be closed by the end of 2017 and remaining sites are undergoing strategic review and plans for them are expected to be finalized by early 2018. 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 as such time that each action is approved by management. The costs resulting from the 2015 Actions, 2016 Actions and 2017 Actions are recorded in salaries and benefits and general and administrative expenses on the Company's consolidated statements of comprehensive loss. The following table presents the current period activity in the accrued exit liability resulting from each of the 2015 Actions, 2016 Actions and 2017 Actions described above, which is included in payables and accrued liabilities on the consolidated balance sheets, and the related charges and cash payments and other settlements associated with these actions (in thousands): For the Nine Months Ended September 30, 2017 2015 Actions 2016 Actions 2017 Actions Total Balance at January 1, 2017 $ 988 $ 11,878 $ — $ 12,866 Charges Severance and related costs (1) (57 ) 25 7,734 7,702 Office closures and other costs 47 38 850 935 Total charges (10 ) 63 8,584 8,637 Cash payments or other settlements Severance and related costs (163 ) (11,002 ) (3,486 ) (14,651 ) Office closures and other costs (545 ) (472 ) (242 ) (1,259 ) Total cash payments or other settlements (708 ) (11,474 ) (3,728 ) (15,910 ) Balance at September 30, 2017 $ 270 $ 467 $ 4,856 $ 5,593 Cumulative charges incurred Severance and related costs 7,181 19,793 7,734 34,708 Office closures and other costs 6,582 3,816 850 11,248 Total cumulative charges incurred $ 13,763 $ 23,609 $ 8,584 $ 45,956 Total expected costs to be incurred (2) $ 13,763 $ 23,609 $ 12,117 $ 49,489 __________ (1) Includes adjustments to prior year accruals resulting from changes to previous estimates. (2) Total expected costs for the 2017 Actions are based on actions as set forth in the 2017 operating plan. These expected costs could change based on additional actions as determined by management throughout the year. The following table presents the current period activity for each of the 2015 Actions, 2016 Actions, and 2017 Actions described above by reportable segment (in thousands): For the Nine Months Ended September 30, 2017 Servicing Originations Reverse Other Total Balance at January 1, 2017 2015 Actions $ 453 $ 260 $ 275 $ — $ 988 2016 Actions 4,323 1,023 2,222 4,310 11,878 2017 Actions — — — — — Total balance at January 1, 2017 4,776 1,283 2,497 4,310 12,866 Charges 2015 Actions (1) (57 ) 35 12 — (10 ) 2016 Actions (1) 42 (147 ) 22 146 63 2017 Actions 6,117 1,097 1,370 — 8,584 Total charges 6,102 985 1,404 146 8,637 Cash payments or other settlements 2015 Actions (250 ) (213 ) (245 ) — (708 ) 2016 Actions (4,058 ) (876 ) (2,191 ) (4,349 ) (11,474 ) 2017 Actions (2,239 ) (846 ) (643 ) — (3,728 ) Total cash payments or other settlements (6,547 ) (1,935 ) (3,079 ) (4,349 ) (15,910 ) Balance at September 30, 2017 2015 Actions 146 82 42 — 270 2016 Actions 307 — 53 107 467 2017 Actions 3,878 251 727 — 4,856 Total balance at September 30, 2017 $ 4,331 $ 333 $ 822 $ 107 $ 5,593 Total cumulative charges incurred 2015 Actions $ 6,424 $ 4,625 $ 1,863 $ 851 $ 13,763 2016 Actions 11,644 989 5,248 5,728 23,609 2017 Actions 6,117 1,097 1,370 — 8,584 Total cumulative charges incurred $ 24,185 $ 6,711 $ 8,481 $ 6,579 $ 45,956 Total expected costs to be incurred 2015 Actions $ 6,424 $ 4,625 $ 1,863 $ 851 $ 13,763 2016 Actions 11,644 989 5,248 5,728 23,609 2017 Actions (2) 9,650 1,097 1,370 — 12,117 Total expected costs to be incurred $ 27,718 $ 6,711 $ 8,481 $ 6,579 $ 49,489 __________ (1) Includes adjustments to prior year accruals resulting from changes to previous estimates. (2) Total expected costs for the 2017 Actions are based on actions as set forth in the 2017 operating plan. These expected costs could change based on additional actions as determined by management throughout the year. |
Warehouse Borrowings
Warehouse Borrowings | 9 Months Ended |
Sep. 30, 2017 | |
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. The facilities had an aggregate funding capacity of $2.6 billion at September 30, 2017 and are secured by certain residential loans and real estate owned. At September 30, 2017 , the interest rates on the facilities were primarily based on LIBOR plus between 2.10% and 5.63% , and have various expiration dates through August 2018 . At September 30, 2017 , $672.9 million of the outstanding borrowings were secured by $785.7 million in originated and purchased residential loans and $505.4 million of outstanding borrowings were secured by $578.6 million in repurchased HECMs and real estate owned. On October 2, 2017, a facility used to fund the origination and purchase of residential loans was amended to, among other things, increase the committed capacity and total aggregate capacity by $150.0 million , decrease the advance rate and increase the interest rate spread by 2.50% . On October 18, 2017, a warehouse facility used to fund the origination and purchase of residential loans was amended to, among other things, shift $150.0 million of uncommitted capacity to committed capacity, remove a requirement to maintain an additional warehouse line at least equal to its aggregate capacity and remove certain requirements limiting the percentage of committed borrowings outstanding on the facility. On October, 26 2017, a warehouse facility used to fund the origination and purchase of residential loans, which had a total capacity of $500.0 million , and a committed capacity of $250.0 million was terminated. Borrowings under this facility were fully repaid prior to termination. On October 31, 2017 a warehouse facility used to fund the origination and purchase of residential loans, which had a total capacity of $500.0 million , and a committed capacity of $250.0 million , matured and was not renewed. Borrowings under this facility were fully repaid on or prior to the maturity date. Subsequent to the October 2017 actions discussed previously, the remaining warehouse facilities had an aggregate capacity of $1.7 billion , which includes $550.0 million provided on an uncommitted basis. On November 6, 2017, the Company entered into the Commitment Letter with certain existing warehouse lenders, which, if approved by the Bankruptcy Court, will provide the Company with the DIP Warehouse Facilities of up to $1.9 billion in available warehouse and other financing during the Chapter 11 Case and for one year following the Effective Date of the Prepackaged Plan. The warehouse facilities will provide that, during the Chapter 11 Case, up to $750.0 million will be available to fund the origination and purchase of residential loans, up to $800.0 million will be available to fund the repurchase of certain HECMs and real estate owned from Ginnie Mae securitization pools. Upon the Effective Date of the Prepackaged Plan, the amount available to fund the origination and purchase of residential loans under the exit warehouse facility will increase to up to $1.0 billion . The DIP and exit warehouse facilities also provide that up to $550.0 million will be available to finance advances related to Ditech Financial’s servicing activities, provided that this sub-limit may be increased to $600.0 million in the event that certain pre-petition servicing advance facilities are unavailable to Ditech Financial during the Chapter 11 Case. At September 30, 2017, the Company's servicing advance facilities and the Early Advance Reimbursement Agreement had an aggregate capacity of $925.0 million , which was reduced to $675.0 million on October 4, 2017 upon the renewal of one of the facilities. Borrowings utilized to fund the origination and purchase of residential loans are due upon the earlier of sale or securitization of the loan or within 60 to 90 days of borrowing. On average, the Company sells or securitizes these loans approximately 20 days from the date of borrowing. Borrowings utilized to repurchase HECMs and real estate owned are due upon the earlier of receipt of claim proceeds from HUD or receipt of proceeds from liquidation of the related real estate owned. In any event, borrowings associated with repurchased HECMs are due, depending on the status of the repurchased HECM and the agreement, within 120 to 364 days of borrowing, while certain borrowings relating to repurchased real estate owned are due, depending on the agreement, within 180 days or 364 days . In accordance with the terms of the agreements, the Company may be required to post cash collateral should the fair value of the pledged assets decrease below certain contractual thresholds or upon reaching certain aging limits. The Company is exposed to counterparty credit risk associated with the repurchase agreements in the event of non-performance by the counterparties. The amount at risk during the term of the repurchase agreement is equal to the difference between the amount borrowed by the Company and the fair value of the pledged assets. The Company mitigates this risk through counterparty monitoring procedures, including monitoring of the counterparties' credit ratings and review of their financial statements. All of the Company’s master repurchase agreements contain customary events of default and covenants, the most significant of which are (i) events of default triggered by certain insolvency related events with respect to either of Ditech Financial or the Parent Company, and (ii) financial covenants. Such insolvency related events of default are triggered upon, among other things, commencement of a bankruptcy proceeding with respect to either of Ditech Financial or the Parent Company. The DIP Warehouse Facility is expected to provide replacement funding to the extent that such events of default occur in connection with the Restructuring. Financial covenants most sensitive to the Company’s subsidiaries' operating results and financial position are minimum tangible net worth requirements, indebtedness to tangible net worth ratio requirements, and minimum liquidity and profitability requirements. The Company had received waivers and/or amendments required as a result of the restatement of its consolidated financial statements as of and for the periods ended June 30, 2016, September 30, 2016, December 31, 2016 and March 31, 2017 and for conclusions reached regarding the Company's ability to continue as a going concern. Ditech Financial's master repurchase agreements that contain profitability covenants were also amended to the extent necessary to allow for a net loss under such covenants for the quarters ending September 30, 2017 and December 31, 2017 as applicable to the terms of each respective agreement. In addition, the Company received waivers and/or amendments required to waive any default, event of default, termination event, amortization event or similar event arising from certain actions the Company may take in connection with the Restructuring. As a result of receiving these waivers and/or amendments, the Company was in compliance with all financial covenants relating to master repurchase agreements at September 30, 2017 . The Company's subsidiaries are dependent on the ability to secure warehouse facilities on acceptable terms and to renew, replace or resize existing facilities as they expire. If the Company fails to comply with the terms of an agreement that results in an event of default or breach of covenant without obtaining a waiver or amendment, the Company may be subject to termination of future funding, enforcement of liens against assets securing the respective facility, repurchase of assets pledged in a repurchase agreement, acceleration of outstanding obligations, or other adverse actions. The DIP Warehouse Facility is contemplated to refinance and replace substantially all of the Company’s existing warehouse facilities and enable the Company to avoid such adverse actions while pursing the Restructuring. In connection with implementing the DIP Warehouse Facility, the Company may seek waivers, amendments and/or forbearances from its existing warehouse lenders in order to facilitate the transition of funding from the Company’s existing warehouse facilities to the DIP Warehouse Facility. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Disclosure | Share-Based Compensation Effective May 17, 2017, the Company established the 2017 Plan, which permits the grant of stock options, restricted stock and other awards to the Company’s and the Company’s subsidiaries’ officers, employees, non-employee directors and consultants and advisors. The 2017 Plan reserves for issuance a total of 3,650,000 authorized shares of common stock, which includes shares that were not awarded under the 2011 Plan. No new awards were granted under the 2011 Plan after May 17, 2017; however, prior awards will remain outstanding in accordance with the terms of the 2011 Plan. During the three and nine months ended September 30, 2017, the Company granted 631,946 and 653,398 RSUs, respectively, to the Company's non-employee directors, which vested immediately. The weighted-average grant date fair value of $0.58 for these awards was based on the closing market prices of the Company's stock on their respective dates of grant. The Company's share-based compensation expense is reflected in salaries and benefits expense in the consolidated statements of comprehensive loss. |
Common Stock and Loss Per Share
Common Stock and Loss Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Common Stock and Loss Per Share Disclosure | Common Stock and Loss Per Share Rights Agreement On November 11, 2016, the Company entered into an Amended and Restated Section 382 Rights Agreement with Computershare, which amends and restates the Rights Agreement between the Company and Computershare dated as of June 29, 2015, as previously amended. On November 9, 2017, the Company and Computershare entered into Amendment No. 1 to the Rights Agreement to extend the term of the Rights Agreement by one year, from November 11, 2017 to November 11, 2018. On June 29, 2015 , the Company's Board of Directors had authorized and the Company declared a dividend of one preferred stock purchase right for each outstanding share of the Company's common stock. The dividend was payable on July 9, 2015 to stockholders of record as of the close of business on July 9, 2015 and entitled the registered holder thereof to purchase from the Company one one-thousandth of a fully paid non-assessable share of Junior Participating Preferred Stock, par value $0.01 per share, of the Company at a price of $74.16 , subject to adjustment as provided in the Rights Agreement. Any shares of common stock issued by the Company after such date also receive such a right. The terms of the preferred stock purchase rights are set forth in the Rights Agreement. Subsequent to the initial adoption of the Rights Agreement, it was amended to, among other things, permit certain stockholders to acquire up to 25% of the outstanding shares of the Company's common stock. The Company entered into the November 2016 amendment and restatement of the Rights Agreement to, among other things, lower the ownership thresholds permitted pursuant to the Rights Agreement such that if any person or group of persons, including persons who owned more than the threshold percentage of shares on the amendment date, but excluding certain exempted persons, acquires 4.99% or more of the Company's outstanding common stock or any other interest that would be treated as "stock" for the purposes of Section 382, there would be a triggering event potentially resulting in significant dilution in the voting power and economic ownership of such acquiring person or group. The Rights Agreement, as amended, provides that the rights issued thereunder will expire on November 11, 2018 or upon the earlier occurrence of certain events, subject to the extension of the Rights Agreement by the Company's Board of Directors or the redemption or exchange of the rights by the Company, in each case as described in, and subject to the terms of, the Rights Agreement. The November 2016 amendment to the Rights Agreement was intended to help protect the Company's "built-in tax losses" and certain other tax benefits by acting as a deterrent to any person or group of persons acting in concert from becoming or obtaining the right to become the beneficial owner (including through constructive ownership of securities owned by others) of 4.99% or more of the shares of the Company's common stock, or any other interest that would be treated as "stock" for the purposes of Section 382, then outstanding, without the approval of its Board of Directors, subject to certain exceptions. Loss Per Share The following is a reconciliation of the numerators and denominators of the basic and diluted loss per share computations shown on the consolidated statements of comprehensive loss (in thousands, except per share data): For the Three Months For the Nine Months 2017 2016 2017 2016 Basic and diluted loss per share Net loss available to common stockholders (numerator) $ (124,133 ) $ (213,267 ) $ (213,934 ) $ (875,932 ) Weighted-average common shares outstanding (denominator) 36,714 36,144 36,555 35,828 Basic and diluted loss per common and common equivalent share $ (3.38 ) $ (5.90 ) $ (5.85 ) $ (24.45 ) For periods in which there is income, certain securities would be antidilutive to the diluted earnings per share calculation. The following table summarizes antidilutive securities that would be excluded from the computation of dilutive earnings per share (in thousands): For the Three Months For the Nine Months 2017 2016 2017 2016 Outstanding share-based compensation awards Stock options (1) 3,547 3,962 3,547 3,245 Performance shares (2) — — — — Restricted stock units 327 808 327 564 Assumed conversion of Convertible Notes 4,932 4,932 4,932 4,932 __________ (1) Includes out-of-the-money stock options totaling 3.5 million and 3.0 million at September 30, 2017 and 2016, respectively. (2) Performance shares represent the number of shares expected to be issued based on the performance percentage as of the end of the reporting periods above. The Convertible Notes are antidilutive when calculating earnings per share when the Company's average stock price is less than $58.80 . Upon conversion of the Convertible Notes, the Company may pay or deliver, at its option, cash, shares of the Company’s common stock, or a combination of cash and shares of common stock. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | Segment Reporting Management has organized the Company into three reportable segments based primarily on its services as follows: • Servicing — performs servicing for the Company's mortgage loan portfolio and on behalf of third-party credit owners of mortgage loans for a fee and also performs subservicing for third-party owners of MSR. The Servicing segment also operates complementary businesses including a collections agency that performs collections of post charge-off deficiency balances for third parties and the Company. Commencing February 1, 2017, another insurance agency owned by the Company began to provide insurance marketing services to a third party with respect to voluntary insurance policies, including hazard insurance (refer to Note 1 for additional information). In addition, the Servicing segment holds the assets and mortgage-backed debt of the Residual Trusts. • Originations — originates and purchases mortgage loans that are intended for sales to third parties. • Reverse Mortgage — primarily focuses on the servicing of reverse loans for the Company's own reverse mortgage portfolio and subservicing on behalf of third-party credit owners of reverse loans. The Reverse Mortgage segment also provides complementary services for the reverse mortgage market, such as real estate owned property management and disposition, for a fee. Effective January 2017, the Company exited the reverse mortgage originations business. As of September 30, 2017, the Company did not have any reverse loans remaining in its originations pipeline and had 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 certain corporate expenses that have not been allocated to the business segments, in Other. Intersegment revenues and expenses have been eliminated. For the Three Months Ended September 30, 2017 Servicing Originations Reverse Other Eliminations Total Total revenues (1) (2) (3) $ 90,508 $ 81,268 $ 9,083 $ 181 $ (4,396 ) $ 176,644 Income (loss) before income taxes (69,342 ) 19,868 (24,900 ) (49,304 ) — (123,678 ) For the Three Months Ended September 30, 2016 Servicing Originations Reverse Other Eliminations Total Total revenues (1) (2) (3) $ 148,873 $ 133,440 $ 27,023 $ (194 ) $ (11,812 ) $ 297,330 Income (loss) before income taxes (161,581 ) 51,672 (23,023 ) (25,251 ) — (158,183 ) __________ (1) The Servicing segment recorded intercompany servicing revenue and fees from activity with the Originations segment and the Other non-reportable segment of $2.2 million and $3.0 million for the three months ended September 30, 2017 and 2016 , respectively. Included in these amounts are late fees that were waived as an incentive for borrowers refinancing their loans of $0.6 million and $1.0 million for the three months ended September 30, 2017 and 2016 , 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 $2.7 million and $9.8 million for the three months ended September 30, 2017 and 2016 , respectively. (3) The Originations segment recorded intercompany revenues for fees earned supporting the Servicing segment in administrative functions relating to the acquisition of certain servicing rights of less than $0.1 million for the three months ended September 30, 2017 and 2016 . For the Nine Months Ended September 30, 2017 Servicing Originations Reverse Other Eliminations Total Total revenues (1) (2) (3) $ 355,714 $ 242,596 $ 46,985 $ 891 $ (15,470 ) $ 630,716 Income (loss) before income taxes (80,161 ) 50,710 (46,699 ) (135,757 ) — (211,907 ) For the Nine Months Ended September 30, 2016 Servicing Originations Reverse Other Eliminations Total Total revenues (1) (2) (3) $ 158,431 $ 343,926 $ 87,255 $ (119 ) $ (37,919 ) $ 551,574 Income (loss) before income taxes (773,928 ) 113,688 (44,940 ) (111,478 ) — (816,658 ) __________ (1) The Servicing segment recorded intercompany servicing revenue and fees from activity with the Originations segment and the Other non-reportable segment of $7.5 million and $9.2 million for the nine months ended September 30, 2017 and 2016 , respectively. Included in these amounts are late fees that were waived as an incentive for borrowers refinancing their loans of $2.2 million and $3.0 million for the nine months ended September 30, 2017 and 2016 , 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 $10.1 million and $30.8 million for the nine months ended September 30, 2017 and 2016 , respectively. (3) The Originations segment recorded intercompany revenues for fees earned supporting the Servicing segment in administrative functions relating to the acquisition of certain servicing rights of less than $0.1 million and $1.0 million for the nine months ended September 30, 2017 and 2016 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Commitments and Contingencies Letter of Credit Reimbursement and Mandatory Clean-Up Call Obligations As part of an agreement to service the loans in the original eleven securitization trusts, as of September 30, 2017, the Company had an obligation to reimburse a third party for the final $165.0 million in LOCs, if drawn, issued to the eleven trusts by a third party as credit enhancements to these trusts. The total amount available on the LOCs was $247.7 million at September 30, 2017 . The securitization trusts draw on these LOCs if there are insufficient cash flows from the underlying collateral to pay the bondholders of the securitization trusts. Based on the Company’s estimates of the underlying performance of the collateral in the securitizations, as of September 30, 2017, the Company did not expect that the final $165.0 million would be drawn and, therefore, no liability for the fair value of this obligation has been recorded on the Company’s consolidated balance sheets. As a result of the Clean-up Call Agreement with the third party detailed further below, the Company is obligated to reimburse the third party for amounts drawn on the LOCs in excess of $17.0 million in the aggregate related to certain of the remaining securitization trusts from July 1, 2017 through each individual call date. Historically, the Company was obligated to exercise the mandatory clean-up call obligations assumed as part of an agreement to acquire the rights to service the loans in the Non-Residual Trusts. The Company was required to call these securitizations when the principal amount of each loan pool falls to 10% or below of the original principal amount. The Company made such calls in the second and third quarters of 2017. The Company fulfilled its obligation for those mandatory clean-up call obligations by making payments of $18.6 million and $28.4 million during the three and nine months ended September 30, 2017 , respectively. The total outstanding balance of the residential loans expected to be called at the respective call dates is $389.2 million at September 30, 2017 . On October 10, 2017, the Company entered into a Clean-up Call Agreement with a third party. During September 2017, the Company paid an inducement fee in the amount of $36.5 million to the counterparty, which was recorded as a deposit within other assets on the consolidated balance sheets at September 30, 2017. With the execution of the Clean-Up Call Agreement, the third party 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. Unfunded Commitments Reverse Mortgage Loans At September 30, 2017 , the Company had floating-rate reverse loans in which the borrowers have additional borrowing capacity of $1.1 billion and similar commitments on fixed-rate reverse loans of $0.3 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 September 30, 2017 and $79.3 million in capacity that will become eligible to be drawn by borrowers through the twelve months ending October 1, 2018, assuming the loans remain performing. In addition, the Company has other commitments of $27.3 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 $1.8 billion and commitments to purchase loans totaling $14.3 million at September 30, 2017 . In addition, the Company had commitments to sell $2.1 billion and purchase $0.3 billion in mortgage-backed securities at September 30, 2017 . HMBS Issuer Obligations As an HMBS issuer, the Company assumes certain obligations related to each security issued. The most significant obligation is the requirement to purchase loans out of the Ginnie Mae securitization pools once the outstanding principal balance of the related HECM is equal to or greater than 98% of the maximum claim amount. Performing repurchased loans are conveyed to HUD and payment is received from HUD typically within a short timeframe of repurchase. 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 may increase 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 seek additional, or expansion of existing, master repurchase or similar agreements and/or may seek to access the securitization market to provide financing capacity for future required loan repurchases. The timing and amount of the Company's obligation to repurchase HECMs is uncertain as repurchase is predicated on certain factors such as whether a borrower event of default occurs prior to the HECM reaching the mandatory repurchase threshold under which the Company is obligated to repurchase the loan. During the nine months ended September 30, 2017 and 2016 , the Company repurchased $968.5 million and $428.9 million , respectively, in reverse loans and real estate owned from securitization pools. At September 30, 2017 , the Company had repurchased reverse loans and real estate owned totaling $707.0 million , with a fair value of $675.5 million , and unfunded commitments to repurchase reverse loans and real estate owned of $104.6 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 September 30, 2017 , the Company’s maximum exposure to repurchases due to potential breaches of representations and warranties was $68.8 billion , and was based on the original unpaid principal balance of loans sold from the beginning of 2013 through September 30, 2017 , adjusted for voluntary payments made by the borrower on loans for which the Company performs servicing. A majority of the Company's loan sales were servicing retained. The Company’s obligations vary based upon the nature of the repurchase demand and the current status of the mortgage loan. The Company’s estimate of the liability associated with representations and warranties exposure was $17.1 million at September 30, 2017 and is included in originations liability as part of payables and accrued liabilities on the consolidated balance sheets. Servicing Contingencies The Company’s servicing obligations are set forth in industry regulations established by HUD, the FHA, the VA, and other government agencies and in servicing and subservicing agreements with the applicable counterparties, such as Fannie Mae, Freddie Mac and other credit owners. Both the regulations and the servicing agreements provide that the servicer may be liable for failure to perform its servicing obligations and further provide remedies for certain servicer breaches. Reverse Mortgage Loans FHA regulations provide that servicers meet a series of event-specific timeframes during the default, foreclosure, conveyance, and mortgage insurance claim cycles. Failure to timely meet any processing deadline may stop the accrual of debenture interest otherwise payable in satisfaction of a claim under the FHA mortgage insurance contract and the servicer may be responsible to HUD for debenture interest that is not self-curtailed by the servicer, or for making the credit owner whole for any interest curtailed by FHA due to not meeting the required event-specific timeframes. The Company had a curtailment obligation liability of $98.0 million at September 30, 2017 related to the foregoing, which reflects management’s best estimate of the probable incurred claim. The curtailment liability is recorded in payables and accrued liabilities on the consolidated balance sheets. During the nine months ended September 30, 2017 , the Company recorded a provision, net of expected third-party recoveries, related to the curtailment obligation liability of $3.6 million . The Company has potential estimated maximum financial statement exposure for an additional $150.6 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 $24.7 million at September 30, 2017 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 September 30, 2017 , the Company’s recorded reserves associated with legal and regulatory contingencies for which a loss is probable and can be reasonably estimated were approximately $35 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 $15 million at September 30, 2017 . Given the inherent uncertainties and status of the Company’s outstanding legal and regulatory matters, the range of reasonably possible losses cannot be estimated for all matters; therefore, this estimated range does not represent the Company’s maximum loss exposure. As new information becomes available, the matters for which the Company is able to estimate, as well as the estimates themselves, will be adjusted accordingly. The following is a description of certain litigation and regulatory matters: The Company has received various subpoenas for testimony and documents, motions for examinations pursuant to Federal Rule of Bankruptcy Procedure 2004, and other information requests from certain Offices of the U.S. Trustees, acting through trial counsel in various federal judicial districts, seeking information regarding an array of the Company's policies, procedures and practices in servicing loans to borrowers who are in bankruptcy and the Company's compliance with bankruptcy laws and rules. The Company has provided information in response to these subpoenas and requests and has met with representatives of certain Offices of the U.S. Trustees to discuss various issues that have arisen in the course of these inquiries, including the Company's compliance with bankruptcy laws and rules. The Company cannot predict the outcome of the aforementioned proceedings and investigations, which could result in requests for damages, fines, sanctions, or other remediation. The Company could face further legal proceedings in connection with these matters. The Company may seek to enter into one or more agreements to resolve these matters. Any such agreement may require the Company to pay fines or other amounts for alleged breaches of law and to change or otherwise remediate the Company's business practices. Legal proceedings relating to these matters and the terms of any settlement agreement could have a material adverse effect on the Company's reputation, business, prospects, results of operations, liquidity and financial condition. From time to time, federal and state authorities investigate or examine aspects of the Company's business activities, such as its mortgage origination, servicing, collection and bankruptcy practices, among other things. It is the Company's general policy to cooperate with such investigations, and the Company has been responding to information requests and otherwise cooperating with various ongoing investigations and examinations by such authorities. The Company cannot predict the outcome of any of the ongoing proceedings and cannot provide assurances that investigations and examinations will not have a material adverse effect on the Company. Walter Energy Matters The Company may become liable for U.S. federal income taxes allegedly owed by the Walter Energy consolidated group for the 2009 and prior tax years. Under federal law, each member of a consolidated group for U.S. federal income tax purposes is severally liable for the federal income tax liability of each other member of the consolidated group for any year in which it was a member of the consolidated group at any time during such year. Certain former subsidiaries of the Company (which were subsequently merged or otherwise consolidated with certain current subsidiaries of the Company) were members of the Walter Energy consolidated tax group prior to the Company's spin-off from Walter Energy on April 17, 2009 . As a result, to the extent the Walter Energy consolidated group’s federal income taxes (including penalties and interest) for such tax years are not favorably resolved on the merits or otherwise paid, the Company could be liable for such amounts. Walter Energy Tax Matters. According to Walter Energy’s Form 10-Q, or the Walter Energy Form 10-Q, for the quarter ended September 30, 2015 (filed with the SEC on November 5, 2015) and certain other public filings made by Walter Energy in its bankruptcy proceedings currently pending in Alabama, described below, as of the date of such filing, certain tax matters with respect to certain tax years prior to and including the year of the Company's spin-off from Walter Energy remained unresolved, including certain tax matters relating to: (i) a "proof of claim" for a substantial amount of taxes, interest and penalties with respect to Walter Energy’s fiscal years ended August 31, 1983 through May 31, 1994, which was filed by the IRS in connection with Walter Energy’s bankruptcy filing on December 27, 1989 in the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division; (ii) an IRS audit of Walter Energy’s federal income tax returns for the years ended May 31, 2000 through December 31, 2008; and (iii) an IRS audit of Walter Energy’s federal income tax returns for the 2009 through 2013 tax years. Walter Energy 2015 Bankruptcy Filing. On July 15, 2015, Walter Energy filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Alabama. On August 18, 2015, Walter Energy filed a motion with the Florida bankruptcy court requesting that the court transfer venue of its disputes with the IRS to the Alabama bankruptcy court. In that motion, Walter Energy asserted that it believed the liability for the years at issue "will be materially, if not completely, offset by the [r]efunds" asserted by Walter Energy against the IRS. The Florida bankruptcy court transferred venue of the matter to the Alabama bankruptcy court, where it remains pending. On November 5, 2015, Walter Energy, together with certain of its subsidiaries, entered into the Walter Energy Asset Purchase Agreement with Coal Acquisition, a Delaware limited liability company formed by members of Walter Energy’s senior lender group, pursuant to which, among other things, Coal Acquisition agreed to acquire substantially all of Walter Energy’s assets and assume certain liabilities, subject to, among other things, a number of closing conditions set forth therein. On January 8, 2016, after conducting a hearing, the Bankruptcy Court entered an order approving the sale of Walter Energy's assets to Coal Acquisition free and clear of all liens, claims, interests and encumbrances of the debtors. The sale of such assets pursuant to the Walter Energy Asset Purchase Agreement was completed on March 31, 2016 and was conducted under the provisions of Sections 105, 363 and 365 of the Bankruptcy Code. Based on developments in the Alabama bankruptcy proceedings following completion of this asset sale, such asset sale appears to have resulted in (i) limited value remaining in Walter Energy’s bankruptcy estate and (ii) to date, limited recovery for certain of Walter Energy’s unsecured creditors, including the IRS. On January 9, 2017, Walter Energy filed with the Alabama Bankruptcy Court a motion to convert its Chapter 11 bankruptcy case to a Chapter 7 liquidation. In that motion, Walter Energy stated that, other than with respect to 1% of the equity of the acquirer of Walter Energy's core assets, no prospect of payment of unsecured claims exists. On January 23, 2017, the IRS filed an objection to Walter Energy's motion to convert, in which the IRS requested that a judgment be entered against Walter Energy in connection with the tax matters described above. The IRS further asserted that entry of a final judgment was necessary so that it could pursue collection of tax liabilities from former members of Walter Energy's consolidated group that are not debtors. On January 30, 2017, the Bankruptcy Court held a hearing at which it denied the IRS's request for entry of a judgment and announced its intent to grant Walter Energy's motion to convert. The Bankruptcy Court entered an order on February 2, 2017 converting Walter Energy's Chapter 11 bankruptcy to a Chapter 7 liquidation. During February 2017, Andre Toffel was appointed Chapter 7 trustee of Walter Energy's bankruptcy estate. The Company cannot predict whether or to what extent it may become liable for federal income taxes of the Walter Energy consolidated tax group during the tax years in which the Company was a part of such group, in part because the Company believes, based on publicly available information, that: (i) the amount of taxes owed by the Walter Energy consolidated tax group for the periods from 1983 through 2009 remains unresolved; and (ii) in light of Walter Energy’s conversion from a Chapter 11 bankruptcy to a Chapter 7 bankruptcy, it is unclear whether the IRS will seek to make a direct claim against the Company for such taxes. Further, because the Company cannot currently estimate its' liability, if any, relating to the federal income tax liability of Walter Energy’s consolidated tax group during the tax years in which it was a part of such group, the Company cannot determine whether such liabilities, if any, could have a material adverse effect on the Company's business, financial condition, liquidity and/or results of operations. Tax Separation Agreement . In connection with the Company's spin-off from Walter Energy, the Company and Walter Energy entered into a Tax Separation Agreement, dated April 17, 2009 . Notwithstanding any several liability the Company may have under federal tax law described above, under the Tax Separation Agreement, Walter Energy agreed to retain full liability for all U.S. federal income or state combined income taxes of the Walter Energy consolidated group for 2009 and prior tax years (including any interest, additional taxes or penalties applicable thereto), subject to limited exceptions. The Company therefore filed proofs of claim in the Alabama bankruptcy proceedings asserting claims for any such amounts to the extent the Company is ultimately held liable for the same. However, the Company expects to receive little or no recovery from Walter Energy for any filed proofs of claim for indemnification. It is unclear whether claims made by the Company under the Tax Separation Agreement would be enforceable against Walter Energy in connection with, or following the conclusion of, the various Walter Energy bankruptcy proceedings described above, or if such claims would be rejected or disallowed under bankruptcy law. It is also unclear whether the Company would be able to recover some or all of any such claims given Walter Energy's limited assets and limited recoveries for unsecured creditors in the Walter Energy bankruptcy proceedings described above. Furthermore, the Tax Separation Agreement provides that Walter Energy has, in its sole discretion, the exclusive right to represent the interests of the consolidated group in any audit, court proceeding or settlement of a claim with the IRS for the tax years in which certain of the Company’s former subsidiaries were members of the Walter Energy consolidated tax group. However, in light of the conversion of Walter Energy’s bankruptcy proceeding from a Chapter 11 proceeding to a Chapter 7 proceeding, the Company may choose to take a direct role in proceedings involving the IRS’s claim for tax years in which the Company was a member of the Walter Energy consolidated tax group. Moreover, the Tax Separation Agreement obligates the Company to take certain tax positions that are consistent with those taken historically by Walter Energy. In the event the Company does not take such positions, it could be liable to Walter Energy to the extent the Company's failure to do so results in an increased tax liability or the reduction of any tax asset of Walter Energy. These arrangements may result in conflicts of interests between the Company and Walter Energy, particularly with regard to the Walter Energy bankruptcy proceedings described above. Lastly, according to its public filings, Walter Energy’s 2009 tax year is currently under audit. Accordingly, if it is determined that certain distribution taxes and other amounts are owed related to the Company's spin-off from Walter Energy in 2009, the Company may be liable under the Tax Separation Agreement for all or a portion of such amounts. The Company is unable to estimate reasonably possible losses for the matter described above. Key Employee Retention Plan In September 2017, the Company entered into retention agreements with certain key officers of the Company. These agreements set forth retention bonuses to be earned by the key officers through dates as defined in each agreement. The total retention bonuses to be paid for key officers that meet the related party definition and meet the qualifications of the agreement is $2.8 million , which is earned over the retention period. |
Separate Financial Information
Separate Financial Information of Subsidiary Guarantors of Indebtedness | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Separate Financial Information of Subsidiary Guarantors of Indebtedness Disclosure | Separate Financial Information of Subsidiary Guarantors of Indebtedness In accordance with the Senior Notes Indenture, certain existing and future 100% owned domestic subsidiaries of the Parent Company have fully and unconditionally guaranteed the Senior Notes on a joint and several basis. These guarantor subsidiaries also guarantee the Parent Company's obligations under the 2013 Secured Credit Facilities. The indenture governing the Senior Notes contains customary exceptions under which a guarantor subsidiary may be released from its guarantee without the consent of the holders of the Senior Notes, including (i) the permitted sale, transfer or other disposition of all or substantially all of a guarantor subsidiary's assets or common stock; (ii) the designation of a restricted guarantor subsidiary as an unrestricted subsidiary; (iii) the release of a guarantor subsidiary from its obligation under the 2013 Secured Credit Facilities and its guarantee of all other indebtedness of the Parent Company and other guarantor subsidiaries; and (iv) the defeasance of the obligations of the guarantor subsidiary by payment of the Senior Notes. Presented below are the condensed consolidating financial information of the Parent Company, the guarantor subsidiaries on a combined basis, and the non-guarantor subsidiaries on a combined basis. Condensed Consolidating Balance Sheet September 30, 2017 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated ASSETS Cash and cash equivalents $ 715 $ 274,087 $ 2,000 $ — $ 276,802 Restricted cash and cash equivalents 1,502 325,220 32,698 — 359,420 Residential loans at amortized cost, net 11,700 299,745 431,459 — 742,904 Residential loans at fair value — 10,996,367 381,125 — 11,377,492 Receivables, net 20,719 122,279 8,400 — 151,398 Servicer and protective advances, net — 390,673 444,118 16,076 850,867 Servicing rights, net — 869,981 — — 869,981 Goodwill — 47,747 — — 47,747 Intangible assets, net — 9,213 — — 9,213 Premises and equipment, net 1,122 57,088 — — 58,210 Deferred tax assets, net 857 — — (857 ) — Other assets 26,027 177,592 31,982 — 235,601 Due from affiliates, net 276,166 — — (276,166 ) — Investments in consolidated subsidiaries and VIEs 1,491,518 68,643 — (1,560,161 ) — Total assets $ 1,830,326 $ 13,638,635 $ 1,331,782 $ (1,821,108 ) $ 14,979,635 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Payables and accrued liabilities $ 43,921 $ 679,677 $ 4,475 $ (6,882 ) $ 721,191 Servicer payables — 346,753 — — 346,753 Servicing advance liabilities — 83,895 425,468 — 509,363 Warehouse borrowings — 1,178,320 — — 1,178,320 Servicing rights related liabilities at fair value — 1,565 — — 1,565 Corporate debt 2,022,639 — — — 2,022,639 Mortgage-backed debt — — 832,897 — 832,897 HMBS related obligations at fair value — 9,598,234 — — 9,598,234 Deferred tax liabilities, net — 5,764 — (857 ) 4,907 Obligation to fund Non-Guarantor VIEs — 48,249 — (48,249 ) — Due to affiliates, net — 272,741 3,425 (276,166 ) — Total liabilities 2,066,560 12,215,198 1,266,265 (332,154 ) 15,215,869 Stockholders' equity (deficit): Total stockholders' equity (deficit) (236,234 ) 1,423,437 65,517 (1,488,954 ) (236,234 ) Total liabilities and stockholders' equity (deficit) $ 1,830,326 $ 13,638,635 $ 1,331,782 $ (1,821,108 ) $ 14,979,635 Condensed Consolidating Balance Sheet December 31, 2016 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated ASSETS Cash and cash equivalents $ 773 $ 221,825 $ 2,000 $ — $ 224,598 Restricted cash and cash equivalents 1,502 158,204 44,757 — 204,463 Residential loans at amortized cost, net 12,891 189,441 462,877 — 665,209 Residential loans at fair value — 11,924,043 492,499 — 12,416,542 Receivables, net 97,424 154,852 15,686 — 267,962 Servicer and protective advances, net — 481,099 688,961 25,320 1,195,380 Servicing rights, net — 1,029,719 — — 1,029,719 Goodwill — 47,747 — — 47,747 Intangible assets, net — 11,347 — — 11,347 Premises and equipment, net 1,181 81,447 — — 82,628 Assets held for sale — 65,045 6,040 — 71,085 Other assets 30,789 191,671 19,830 — 242,290 Due from affiliates, net 392,998 — — (392,998 ) — Investments in consolidated subsidiaries and VIEs 1,620,339 134,612 — (1,754,951 ) — Total assets $ 2,157,897 $ 14,691,052 $ 1,732,650 $ (2,122,629 ) $ 16,458,970 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Payables and accrued liabilities $ 53,337 $ 708,070 $ 5,474 $ (7,870 ) $ 759,011 Servicer payables — 146,332 — — 146,332 Servicing advance liabilities — 132,664 650,565 — 783,229 Warehouse borrowings — 1,203,355 — — 1,203,355 Servicing rights related liabilities at fair value — 1,902 — — 1,902 Corporate debt 2,129,000 — — — 2,129,000 Mortgage-backed debt — — 943,956 — 943,956 HMBS related obligations at fair value — 10,509,449 — — 10,509,449 Deferred tax liabilities, net — 3,204 1,570 — 4,774 Liabilities held for sale — 1,179 1,223 — 2,402 Obligation to fund Non-Guarantor VIEs — 46,417 — (46,417 ) — Due to affiliates, net — 392,812 185 (392,997 ) — Total liabilities 2,182,337 13,145,384 1,602,973 (447,284 ) 16,483,410 Stockholders' equity (deficit): Total stockholders' equity (deficit) (24,440 ) 1,545,668 129,677 (1,675,345 ) (24,440 ) Total liabilities and stockholders' equity (deficit) $ 2,157,897 $ 14,691,052 $ 1,732,650 $ (2,122,629 ) $ 16,458,970 Condensed Consolidating Statement of Comprehensive Income (Loss) For the Three Months Ended September 30, 2017 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated REVENUES Net servicing revenue and fees $ — $ 66,951 $ — $ (1,922 ) $ 65,029 Net gains on sales of loans — 73,013 — — 73,013 Net fair value gains on reverse loans and related HMBS obligations — 1,810 — — 1,810 Interest income on loans 206 537 9,059 — 9,802 Insurance revenue — 2,236 — — 2,236 Other revenues 215 24,540 14,399 (14,400 ) 24,754 Total revenues 421 169,087 23,458 (16,322 ) 176,644 EXPENSES General and administrative 24,439 123,128 2,519 (12,472 ) 137,614 Salaries and benefits 10,770 80,774 — — 91,544 Interest expense 35,640 15,371 10,686 (26 ) 61,671 Depreciation and amortization 171 9,570 — — 9,741 Corporate allocations (19,477 ) 19,477 — — — Other expenses, net 161 1,137 1,278 — 2,576 Total expenses 51,704 249,457 14,483 (12,498 ) 303,146 OTHER GAINS (LOSSES) Other net fair value gains (losses) — (550 ) 4,333 — 3,783 Net losses on extinguishment of debt (959 ) — — — (959 ) Total other gains (losses) (959 ) (550 ) 4,333 — 2,824 Income (loss) before income taxes (52,242 ) (80,920 ) 13,308 (3,824 ) (123,678 ) Income tax expense (benefit) 2,104 (3,345 ) 1,889 (193 ) 455 Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs (54,346 ) (77,575 ) 11,419 (3,631 ) (124,133 ) Equity in earnings (losses) of consolidated subsidiaries and VIEs (69,787 ) 10,530 — 59,257 — Net income (loss) $ (124,133 ) $ (67,045 ) $ 11,419 $ 55,626 $ (124,133 ) Comprehensive income (loss) $ (124,035 ) $ (67,045 ) $ 11,419 $ 55,626 $ (124,035 ) Condensed Consolidating Statement of Comprehensive Income (Loss) For the Three Months Ended September 30, 2016 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated REVENUES Net servicing revenue and fees $ — $ 113,803 $ — $ (2,174 ) $ 111,629 Net gains on sales of loans — 122,014 — — 122,014 Net fair value gains (losses) on reverse loans and related HMBS obligations — 18,687 (60 ) — 18,627 Interest income on loans 248 143 10,941 — 11,332 Insurance revenue — 9,287 871 (158 ) 10,000 Other revenues, net (938 ) 25,017 17,882 (18,233 ) 23,728 Total revenues (690 ) 288,951 29,634 (20,565 ) 297,330 EXPENSES General and administrative 19,859 145,563 3,488 (17,118 ) 151,792 Salaries and benefits 13,505 119,694 — — 133,199 Interest expense 36,986 13,249 15,451 (384 ) 65,302 Depreciation and amortization 234 16,173 173 — 16,580 Goodwill and intangible assets impairment — 97,716 — — 97,716 Corporate allocations (32,203 ) 32,203 — — — Other expenses, net 47 1,150 9 — 1,206 Total expenses 38,428 425,748 19,121 (17,502 ) 465,795 OTHER GAINS (LOSSES) Other net fair value losses — (643 ) (2,659 ) — (3,302 ) Net gains on extinguishment of debt 13,734 — — — 13,734 Other — (150 ) — — (150 ) Total other gains (losses) 13,734 (793 ) (2,659 ) — 10,282 Income (loss) before income taxes (25,384 ) (137,590 ) 7,854 (3,063 ) (158,183 ) Income tax expense 7,505 45,550 2,185 (156 ) 55,084 Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs (32,889 ) (183,140 ) 5,669 (2,907 ) (213,267 ) Equity in earnings (losses) of consolidated subsidiaries and VIEs (180,378 ) 2,267 — 178,111 — Net income (loss) $ (213,267 ) $ (180,873 ) $ 5,669 $ 175,204 $ (213,267 ) Comprehensive income (loss) $ (213,281 ) $ (180,873 ) $ 5,669 $ 175,204 $ (213,281 ) Condensed Consolidating Statement of Comprehensive Income (Loss) For the Nine Months Ended September 30, 2017 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated REVENUES Net servicing revenue and fees $ — $ 275,539 $ — $ (6,002 ) $ 269,537 Net gains on sales of loans — 217,914 — — 217,914 Net fair value gains on reverse loans and related HMBS obligations — 24,342 42 — 24,384 Interest income on loans 680 1,161 29,430 — 31,271 Insurance revenue — 9,574 309 (57 ) 9,826 Other revenues 386 77,372 46,110 (46,084 ) 77,784 Total revenues 1,066 605,902 75,891 (52,143 ) 630,716 EXPENSES General and administrative 53,805 366,976 7,859 (41,855 ) 386,785 Salaries and benefits 32,591 267,981 — — 300,572 Interest expense 105,863 42,624 34,534 (56 ) 182,965 Depreciation and amortization 533 30,129 53 — 30,715 Corporate allocations (60,478 ) 60,478 — — — Other expenses, net 364 4,367 3,682 — 8,413 Total expenses 132,678 772,555 46,128 (41,911 ) 909,450 OTHER GAINS (LOSSES) Gain on sale of business — 67,734 — — 67,734 Other net fair value gains (losses) — (1,756 ) 2,517 — 761 Net losses on extinguishment of debt (959 ) (266 ) (443 ) — (1,668 ) Total other gains (losses) (959 ) 65,712 2,074 — 66,827 Income (loss) before income taxes (132,571 ) (100,941 ) 31,837 (10,232 ) (211,907 ) Income tax expense (benefit) (32,478 ) 29,982 5,051 (528 ) 2,027 Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs (100,093 ) (130,923 ) 26,786 (9,704 ) (213,934 ) Equity in earnings (losses) of consolidated subsidiaries and VIEs (113,841 ) 21,887 — 91,954 — Net income (loss) $ (213,934 ) $ (109,036 ) $ 26,786 $ 82,250 $ (213,934 ) Comprehensive income (loss) $ (213,858 ) $ (109,036 ) $ 26,786 $ 82,250 $ (213,858 ) Condensed Consolidating Statement of Comprehensive Income (Loss) For the Nine Months Ended September 30, 2016 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated REVENUES Net servicing revenue and fees $ — $ 44,507 $ — $ (6,704 ) $ 37,803 Net gains on sales of loans — 306,667 — — 306,667 Net fair value gains (losses) on reverse loans and related HMBS obligations — 61,771 (286 ) — 61,485 Interest income on loans 860 345 34,147 — 35,352 Insurance revenue — 29,215 2,971 (542 ) 31,644 Other revenues, net (1,746 ) 82,259 49,967 (51,857 ) 78,623 Total revenues (886 ) 524,764 86,799 (59,103 ) 551,574 EXPENSES General and administrative 42,448 417,128 9,884 (52,286 ) 417,174 Salaries and benefits 44,598 354,921 — — 399,519 Interest expense 108,802 36,958 50,186 (1,996 ) 193,950 Depreciation and amortization 598 44,419 526 — 45,543 Goodwill and intangible assets impairment — 313,128 — — 313,128 Corporate allocations (83,326 ) 83,326 — — — Other expenses, net 464 3,114 2,031 — 5,609 Total expenses 113,584 1,252,994 62,627 (54,282 ) 1,374,923 OTHER GAINS (LOSSES) Other net fair value losses — (273 ) (5,992 ) — (6,265 ) Net gains on extinguishment of debt 14,662 — — — 14,662 Other — (1,706 ) — — (1,706 ) Total other gains (losses) 14,662 (1,979 ) (5,992 ) — 6,691 Income (loss) before income taxes (99,808 ) (730,209 ) 18,180 (4,821 ) (816,658 ) Income tax expense (benefit) (5,237 ) 58,529 6,282 (300 ) 59,274 Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs (94,571 ) (788,738 ) 11,898 (4,521 ) (875,932 ) Equity in earnings (losses) of consolidated subsidiaries and VIEs (781,361 ) 2,945 — 778,416 — Net income (loss) $ (875,932 ) $ (785,793 ) $ 11,898 $ 773,895 $ (875,932 ) Comprehensive income (loss) $ (875,905 ) $ (785,793 ) $ 11,898 $ 773,895 $ (875,905 ) Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2017 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated Cash flows provided by (used in) operating activities $ (28,855 ) $ 251,036 $ 284,175 $ 25,061 $ 531,417 Investing activities Purchases and originations of reverse loans held for investment — (302,032 ) — — (302,032 ) Principal payments received on reverse loans held for investment — 985,989 — — 985,989 Principal payments received on mortgage loans held for investment 1,261 — 94,824 (25,061 ) 71,024 Payments received on charged-off loans held for investment — 13,217 — — 13,217 Payments received on receivables related to Non-Residual Trusts — — 10,275 — 10,275 Proceeds from sales of real estate owned, net 40 103,118 2,915 (59 ) 106,014 Purchases of premises and equipment (512 ) (3,110 ) — — (3,622 ) Decrease in restricted cash and cash equivalents — 621 1,220 — 1,841 Payments for acquisitions of businesses, net of cash acquired — (1,019 ) — — (1,019 ) Acquisitions of servicing rights, net — (171 ) — — (171 ) Proceeds from sale of servicing rights, net — 79,772 — — 79,772 Proceeds from sale of business — 131,074 — — 131,074 Cash outflow from deconsolidation of variable interest entities — — (28,425 ) — (28,425 ) Capital contributions to subsidiaries and VIEs (100,178 ) (5,419 ) — 105,597 — Returns of capital from subsidiaries and VIEs 220,690 63,305 — (283,995 ) — Change in due from affiliates (49,878 ) (70,932 ) (354 ) 121,164 — Other 11,711 (3,284 ) — 59 8,486 Cash flows provided by investing activities 83,134 991,129 80,455 (82,295 ) 1,072,423 Financing activities Payments on corporate debt (121,285 ) — — — (121,285 ) Proceeds from securitizations of reverse loans — 375,786 — — 375,786 Payments on HMBS related obligations — (1,420,881 ) — — (1,420,881 ) Issuances of servicing advance liabilities — 117,167 791,701 — 908,868 Payments on servicing advance liabilities — (165,937 ) (1,018,099 ) — (1,184,036 ) Net change in warehouse borrowings related to mortgage loans — (394,036 ) — — (394,036 ) Net change in warehouse borrowings related to reverse loans — 369,001 — — 369,001 Payments on servicing rights related liabilities — (1,415 ) — — (1,415 ) Payments on mortgage-backed debt — — (84,814 ) — (84,814 ) Other debt issuance costs paid — (4,709 ) (146 ) — (4,855 ) Capital contributions — 25,178 80,419 (105,597 ) — Capital distributions — (144,341 ) (139,654 ) 283,995 — Change in due to affiliates 67,023 50,455 3,686 (121,164 ) — Other (75 ) 3,829 2,277 — 6,031 Cash flows used in financing activities (54,337 ) (1,189,903 ) (364,630 ) 57,234 (1,551,636 ) Net increase (decrease) in cash and cash equivalents (58 ) 52,262 — — 52,204 Cash and cash equivalents at the beginning of the period 773 221,825 2,000 — 224,598 Cash and cash equivalents at the end of the period $ 715 $ 274,087 $ 2,000 $ — $ 276,802 Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2016 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated Cash flows provided by (used in) operating activities $ (3,013 ) $ 170,573 $ 207,612 $ — $ 375,172 Investing activities Purchases and originations of reverse loans held for investment — (653,471 ) — — (653,471 ) Principal payments received on reverse loans held for investment — 770,636 — — 770,636 Principal payments received on mortgage loans held for investment 705 — 68,533 — 69,238 Payments received on charged-off loans held for investment — 17,827 — — 17,827 Payments received on receivables related to Non-Residual Trusts — — 6,230 — 6,230 Proceeds from sales of real estate owned, net 26 78,616 2,949 — 81,591 Purchases of premises and equipment (468 ) (28,660 ) — — (29,128 ) Decrease (increase) in restricted cash and cash equivalents 9,011 818 (51 ) — 9,778 Payments for acquisitions of businesses, net of cash acquired — (1,947 ) — — (1,947 ) Acquisitions of servicing rights, net — (7,701 ) — — (7,701 ) Proceeds from sale of servicing rights, net — 35,541 — — 35,541 Capital contributions to subsidiaries and VIEs — (11,878 ) — 11,878 — Returns of capital from subsidiaries and VIEs 10,524 18,629 — (29,153 ) — Change in due from affiliates 10,927 58,684 (3,963 ) (65,648 ) — Other 235 (3,900 ) — — (3,665 ) Cash flows provided by investing activities 30,960 273,194 73,698 (82,923 ) 294,929 Financing activities Payments on corporate debt — (480 ) — — (480 ) Extinguishments and settlement of debt (31,037 ) — — — (31,037 ) Proceeds from securitizations of reverse loans — 684,711 — — 684,711 Payments on HMBS related obligations — (958,720 ) — — (958,720 ) Issuances of servicing advance liabilities — 185,444 1,341,289 — 1,526,733 Payments on servicing advance liabilities — (265,083 ) (1,469,169 ) — (1,734,252 ) Net change in warehouse borrowings related to mortgage loans — (147,389 ) — — (147,389 ) Net change in warehouse borrowings related to reverse loans — 169,210 — — 169,210 Proceeds from financing of servicing rights — 29,742 — — 29,742 Payments on servicing rights related liabilities — (16,013 ) — — (16,013 ) Payments on mortgage-backed debt — — (80,335 ) — (80,335 ) Other debt issuance costs paid (528 ) (6,707 ) (2,025 ) — (9,260 ) Capital contributions — — 11,878 (11,878 ) — Capital distributions — (6,125 ) (23,028 ) 29,153 — Change in due to affiliates 1,382 (6,742 ) (60,288 ) 65,648 — Other (781 ) (19,744 ) 368 — (20,157 ) Cash flows used in financing activities (30,964 ) (357,896 ) (281,310 ) 82,923 (587,247 ) Net increase (decrease) in cash and cash equivalents (3,017 ) 85,871 — — 82,854 Cash and cash equivalents at the beginning of the period 4,016 196,812 2,000 — 202,828 Cash and cash equivalents at the end of the period $ 999 $ 282,683 $ 2,000 $ — $ 285,682 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related-Party Transactions WCO was established to invest in mortgage-related assets. In November 2016, WCO entered into a series of agreements whereby it agreed to sell substantially all of its assets, including the sale of substantially all of its MSR portfolio to NRM. In connection with the December 2016 closing of the transactions relating thereto, WCO commenced liquidation activities and the Company does not expect to sell further assets to WCO. Furthermore, during the third quarter of 2017, the Company entered into an interest purchase agreement with WCO to repurchase Marix, formerly a wholly-owned subsidiary of the Company, for $0.7 million . The transfer is anticipated to occur in the first quarter of 2018. The Company's investment in WCO was $8.0 million and $19.4 million at September 30, 2017 and December 31, 2016 , respectively. The Company recorded no income relating to its investment in WCO for the three months ended September 30, 2017 and recorded a loss of $1.0 million for the three months ended September 30, 2016 . For the nine months ended September 30, 2017 and 2016 , the Company recorded income (loss) of less than $0.1 million and $(2.0) million , respectively. Additionally, the Company received dividends of $11.5 million and $1.0 million from WCO during the nine months ended September 30, 2017 and 2016 , respectively. The Company earned fees for providing investment advisory and management services to WCO and administering its business activities and day-to-day operations of less than $0.1 million and $0.4 million for the three months ended September 30, 2017 and 2016 , respectively, and $0.1 million and $1.2 million for the nine months ended September 30, 2017 and 2016 , respectively, which are recorded in other revenues on the consolidated statements of comprehensive loss. The Company had less than $0.1 million and $0.9 million included in receivables, net on the consolidated balance sheets at September 30, 2017 and December 31, 2016 , respectively, relating to fees earned for the aforementioned investment advisory and management services provided to WCO, as well as pass-throughs to WCO related to general and administrative and payroll-related expenses. During the third quarter of 2017, the Company's subsidiary, GTIM, and WCO terminated the previous management agreement, effective January 1, 2017, whereby GTIM earned fees for providing various services to WCO. Subsequently, the Company entered into a separate agreement to provide non-investment advisory services to WCO effective January 1, 2017. WCO lacks sufficient equity at risk to finance its activities without subordinated financial support, and, as such, is a VIE. WCO’s board of directors have decision making authority as it relates to the activities that most significantly impact the economic performance of WCO, including making decisions related to significant investments, servicing, capital and debt financing. As a result, the Company is not deemed to be the primary beneficiary of WCO as it does not have the power to direct the activities that most significantly impact WCO’s economic performance. The following table presents the carrying amounts of the Company’s assets and liabilities that relate to WCO, as well as the size of the unconsolidated VIE (in thousands): Carrying Value of Assets and Liabilities Servicer and Protective Advances, Net Receivables, Net Other (1) Payables and Accrued Liabilities Net Assets Size of VIE (2) September 30, 2017 $ 5,216 $ 15 $ 7,953 $ — $ 13,184 $ 24,866 December 31, 2016 6,980 1,392 19,403 (1,353 ) 26,422 194,556 __________ (1) Other assets at September 30, 2017 and December 31, 2016 are primarily comprised of the Company's investment in WCO. (2) The size of the VIE is deemed to be WCO's net assets. |
Business and Basis of Present23
Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Reporting | Interim Financial Reporting The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and related notes required by GAAP for complete Consolidated Financial Statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . These unaudited interim Consolidated Financial Statements should be read in conjunction with the Company’s audited Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2016 . |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although management is not currently aware of any factors that would significantly change its estimates and assumptions, actual results may differ from these estimates. |
Recent Accounting Guidance | Recently Adopted Accounting Guidance In March 2016, the FASB issued an accounting standards update revising certain aspects of share-based accounting guidance, which includes income tax and forfeiture consequences. This guidance was effective for the Company beginning January 1, 2017. Adoption of this update did not have a material impact on the Company's income tax expense. The Company elected to continue with its current methodology of estimating expected forfeitures at the date of grant and adjust throughout the vesting term as needed. Recent Accounting Guidance Not Yet Adopted In May 2014, the FASB issued new revenue recognition guidance that supersedes most industry-specific guidance but does exclude insurance contracts and financial instruments. Under the new revenue recognition guidance, entities are required to identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when the entity satisfies a performance obligation. The Company has reviewed the scope of the guidance and monitored the determinations of the FASB Transition Resource Group and concluded that a number of the Company's most significant revenue streams are not within the scope of the standard because the standard does not apply to revenue on contracts accounted for under the transfers and servicing of financial assets or financial instruments standards. Therefore, revenue recognition for these contracts will remain unchanged. While there may be some impact on ancillary revenue streams, the Company does not expect the adoption of this guidance to have a significant impact on the consolidated financial statements. The Company plans to adopt using a modified retrospective method with a cumulative effect adjustment to retained earnings. In January 2016, the FASB issued an accounting standards update that amends the guidance on the classification and measurement of financial instruments. The new standard revises an entity's accounting related to (i) the classification and measurement of investments in equity securities and (ii) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. At September 30, 2017, the Company did not hold any equity securities measured at fair value, but did have certain financial liabilities measured at fair value. The significance of adoption is dependent upon the nature of those financial liabilities carried at fair value at the time of adoption. In February 2016, the FASB issued an accounting standards update that requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset to not recognize lease assets and lease liabilities. In transition, lessees are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, which includes a number of optional practical expedients that entities may elect to apply. This guidance is effective for fiscal years beginning after December 15, 2018, with early application permitted. While the Company 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 is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The adoption may impact the presentation of cash flows, but will not otherwise have a material impact on the consolidated results of operations or financial condition. In October 2016, the FASB issued an accounting standards update that amends the guidance on the classification of income taxes related to the intra-entity transfer of assets other than inventory. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the effect that this guidance will have on its consolidated financial statements. However, the significance of adoption is dependent on the nature of the transactions and corresponding tax laws in effect at the time of adoption. In November 2016, the FASB issued an accounting standards update that amends the guidance on restricted cash within the statement of cash flows. The update amends the classification of restricted cash and cash equivalents to be included within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts. 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 is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The adoption will impact the presentation of the cash flows, but will not otherwise have a material impact on the consolidated results of operations or financial condition. In January 2017, the FASB issued an accounting standards update that amends the guidance on business combinations. The update clarifies the definition of a business and provides a framework that gives entities a basis for making reasonable judgments about whether a transaction should be accounted for as an acquisition of assets or a business. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company will apply this guidance to its assessment of applicable transactions, such as acquisitions and disposals of assets or business, consummated after the adoption date. In January 2017, the FASB issued an accounting standards update that amends the guidance on goodwill. Under the update, goodwill impairment is measured as the amount by which a reporting unit’s carrying value exceeds its fair value, while not exceeding the carrying value of goodwill. The update eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. This guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently considering the timing of adoption and will apply this guidance to applicable impairment tests after the adoption date. In February 2017, the FASB issued an accounting standards update that amends the guidance on derecognition of nonfinancial assets. This guidance clarifies the scope and accounting of a financial asset that meets the definition of an in substance nonfinancial asset and defines the term in substance nonfinancial asset. It also adds guidance for partial sales of nonfinancial assets. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. Based on the Company's current methodologies for accounting for nonfinancial assets, the adoption of this guidance is not expected to have a material impact on its consolidated financial statements. However, upon adoption, the statement of financial position may reflect changes in presentation related to sales of certain real estate owned. The significance of the adoption of this guidance may change at the time of adoption based on the nature of the Company's nonfinancial assets at that time and the corresponding conclusions reached. The Company plans to adopt using a modified retrospective method. 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 is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The new guidance will be applied prospectively on awards modified on or after the adoption date. In August 2017, the FASB issued an accounting standards update that amends the guidance on derivatives and hedging. The guidance reduces the complexity of and simplifies the application of hedge accounting. The guidance also better aligns disclosures with risk management activities. This guidance is effective for the annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company currently does not designate any derivative financial instruments as formal hedge relationships, and therefore, does not utilize hedge accounting. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
VIE Primary Beneficiary [Member] | |
Variable Interest Entities [Line Items] | |
Summary of Carrying Amounts of Assets and Liabilities of Consolidated VIEs | Included in the tables below are summaries of the carrying amounts of the assets and liabilities of consolidated VIEs (in thousands): September 30, 2017 Residual Non-Residual Servicer and Protective Advance Financing Facilities Revolving Credit Facilities-Related VIEs Total Assets Restricted cash and cash equivalents $ 12,100 $ 10,682 $ 11,031 $ — $ 33,813 Residential loans at amortized cost, net 431,459 — — — 431,459 Residential loans at fair value — 381,125 — — 381,125 Receivables, net — 7,498 — 894 8,392 Servicer and protective advances, net — — 478,834 — 478,834 Other assets 10,631 1,116 276 19,959 31,982 Total assets $ 454,190 $ 400,421 $ 490,141 $ 20,853 $ 1,365,605 Liabilities Payables and accrued liabilities $ 1,961 $ — $ 536 $ — $ 2,497 Servicing advance liabilities — — 425,468 — 425,468 Mortgage-backed debt 395,976 436,921 — — 832,897 Total liabilities $ 397,937 $ 436,921 $ 426,004 $ — $ 1,260,862 December 31, 2016 Residual Non-Residual Servicer and Protective Advance Financing Facilities Revolving Credit Facilities-Related VIEs Total Assets Restricted cash and cash equivalents $ 13,321 $ 10,257 $ 22,265 $ — $ 45,843 Residential loans at amortized cost, net 462,877 — — — 462,877 Residential loans at fair value — 450,377 — 42,122 492,499 Receivables, net — 15,033 — 765 15,798 Servicer and protective advances, net — — 734,707 — 734,707 Other assets 10,028 1,028 1,440 7,335 19,831 Total assets $ 486,226 $ 476,695 $ 758,412 $ 50,222 $ 1,771,555 Liabilities Payables and accrued liabilities $ 2,140 $ — $ 845 $ — $ 2,985 Servicing advance liabilities — — 650,565 — 650,565 Mortgage-backed debt 429,931 514,025 — — 943,956 Total liabilities $ 432,071 $ 514,025 $ 651,410 $ — $ 1,597,506 |
Transfers of Residential Loans
Transfers of Residential Loans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Schedule of Continuing Involvement with Mortgage Loans Sold with Servicing Rights Retained | The following table presents the carrying amounts of the Company’s net assets that relate to its continuing involvement with mortgage loans that have been sold with servicing rights retained and the unpaid principal balance of these sold loans (in thousands): Carrying Value of Net Assets Unpaid Servicing (1) Servicer and Payables and Accrued Liabilities Total September 30, 2017 $ 415,383 $ 17,168 $ (1,565 ) $ 430,986 $ 37,840,960 December 31, 2016 (1) 439,062 21,825 (1,983 ) 458,904 36,116,570 __________ (1) The Company has revised the December 31, 2016 disclosed amount of net servicing rights for which the Company has continuing involvement. The total net servicing rights balance reported in the consolidated balance sheets as of December 31, 2016 was not impacted by this disclosure revision. |
Summary of Cash Flows Related to Sales of Mortgage Loans | The following table presents a summary of cash flows related to sales of mortgage loans (in thousands): For the Three Months For the Nine Months 2017 2016 2017 2016 Cash proceeds received from sales, net of fees $ 3,985,471 $ 5,643,244 $ 13,789,344 $ 15,933,300 Servicing fees collected (1) 30,668 35,125 91,034 106,304 Repurchases of previously sold loans (2) 36,401 7,974 67,413 24,292 __________ (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 $32.9 million and $1.5 million for the three months ended September 30, 2017 and 2016 , respectively, and $58.2 million and $11.2 million for the nine months ended September 30, 2017 and 2016 , respectively. |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities in Each Level of Fair Value Hierarchy | The following table summarizes the assets and liabilities in each level of the fair value hierarchy (in thousands). There was an insignificant amount of assets or liabilities measured at fair value on a recurring basis utilizing Level 1 assumptions. September 30, December 31, Level 2 Assets Mortgage loans held for sale $ 816,381 $ 1,176,280 Servicing rights carried at fair value 42,033 13,170 Freestanding derivative instruments 2,749 34,543 Level 2 assets $ 861,163 $ 1,223,993 Liabilities Freestanding derivative instruments $ 1,916 $ 7,611 Servicing rights related liabilities 1,565 1,902 Level 2 liabilities $ 3,481 $ 9,513 Level 3 Assets Reverse loans $ 10,111,725 $ 10,742,922 Mortgage loans related to Non-Residual Trusts 381,125 450,377 Mortgage loans held for sale 22,119 — Charged-off loans 46,142 46,963 Receivables related to Non-Residual Trusts 7,498 15,033 Servicing rights carried at fair value 766,797 936,423 Freestanding derivative instruments (IRLCs) 33,466 53,394 Level 3 assets $ 11,368,872 $ 12,245,112 Liabilities Freestanding derivative instruments (IRLCs) $ 867 $ 4,193 Mortgage-backed debt related to Non-Residual Trusts 436,921 514,025 HMBS related obligations 9,598,234 10,509,449 Level 3 liabilities $ 10,036,022 $ 11,027,667 |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis Utilizing Significant Unobservable Inputs Reconciliation | The following assets and liabilities are measured on the consolidated balance sheets at fair value on a recurring basis utilizing significant unobservable inputs or Level 3 assumptions in their valuation. The following tables provide a reconciliation of the beginning and ending balances of these assets and liabilities (in thousands): For the Three Months Ended September 30, 2017 Fair Value Total Purchases Sales and Other Originations / Issuances Settlements Transfers Out of Level 3 Fair Value Assets Reverse loans $ 10,440,669 $ 47,398 $ — $ — $ 84,862 $ (461,204 ) $ — $ 10,111,725 Mortgage loans related to Non-Residual Trusts (1) 406,006 13,160 — (16,172 ) — (21,869 ) — 381,125 Mortgage loans held for sale (1) 8,738 (2,201 ) — 16,172 — (590 ) — 22,119 Charged-off loans (2) 49,626 6,157 — — — (9,641 ) — 46,142 Receivables related to Non-Residual Trusts 11,841 (362 ) — — — (3,981 ) — 7,498 Servicing rights carried at fair value 864,108 (81,881 ) 36 1,465 17,916 — (34,847 ) 766,797 Freestanding derivative instruments (IRLCs) 31,687 1,833 — — — (54 ) — 33,466 Total assets $ 11,812,675 $ (15,896 ) $ 36 $ 1,465 $ 102,778 $ (497,339 ) $ (34,847 ) $ 11,368,872 Liabilities Freestanding derivative instruments (IRLCs) $ (2,175 ) $ 1,308 $ — $ — $ — $ — $ — $ (867 ) Mortgage-backed debt related to Non-Residual Trusts (470,600 ) (8,459 ) — — — 42,138 — (436,921 ) HMBS related obligations (9,986,409 ) (45,588 ) — — (97,776 ) 531,539 — (9,598,234 ) Total liabilities $ (10,459,184 ) $ (52,739 ) $ — $ — $ (97,776 ) $ 573,677 $ — $ (10,036,022 ) __________ (1) During the three months ended September 30, 2017 , $16.2 million of loans transferred from mortgage loans related to Non-Residual Trusts to mortgage loans held for sale upon exercising a mandatory call obligation. See Note 14 for additional information on the mandatory call obligations. (2) 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 $0.5 million during the three months ended September 30, 2017 . For the Three Months Ended September 30, 2016 Fair Value Total Purchases and Other Sales Originations / Issuances Settlements Transfers Out of Level 3 Fair Value Assets Reverse loans $ 10,910,237 $ 96,139 $ 157,138 $ — $ 111,645 $ (330,090 ) $ — $ 10,945,069 Mortgage loans related to Non-Residual Trusts 488,179 (1,025 ) — — — (23,534 ) — 463,620 Charged-off loans (1) 51,062 8,880 — — — (10,681 ) — 49,261 Receivables related to Non-Residual Trusts 12,681 4,547 — — — (2,218 ) — 15,010 Servicing rights carried at fair value (2) 1,255,351 (86,036 ) (11,421 ) (12,792 ) 49,912 — (212,630 ) 982,384 Freestanding derivative instruments (IRLCs) 75,477 3,070 — — — (126 ) — 78,421 Total assets $ 12,792,987 $ 25,575 $ 145,717 $ (12,792 ) $ 161,557 $ (366,649 ) $ (212,630 ) $ 12,533,765 Liabilities Freestanding derivative instruments (IRLCs) $ (163 ) $ (352 ) $ — $ — $ — $ — $ — $ (515 ) Servicing rights related liabilities (3) (120,825 ) (9,885 ) — — — 11,443 — (119,267 ) Mortgage-backed debt related to Non-Residual Trusts (548,067 ) (6,182 ) — — — 24,876 — (529,373 ) HMBS related obligations (10,717,148 ) (77,512 ) — — (274,604 ) 369,544 — (10,699,720 ) Total liabilities $ (11,386,203 ) $ (93,931 ) $ — $ — $ (274,604 ) $ 405,863 $ — $ (11,348,875 ) __________ (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 $3.5 million during the three months ended September 30, 2016 . (2) During the three months ended September 30, 2016 , the Company sold mortgage servicing rights with a fair value of $12.8 million and recognized a total net loss on sale of $0.1 million . (3) Included in losses on servicing rights related liabilities are losses from instrument-specific credit risk, which primarily result from changes in assumptions related to discount rates, conditional prepayment rates and conditional default rates, of $4.2 million during the three months ended September 30, 2016 . For the Nine Months Ended September 30, 2017 Fair Value Total Purchases Sales and Other Originations / Issuances Settlements Transfers Out of Level 3 Fair Value Assets Reverse loans $ 10,742,922 $ 162,579 $ 44,769 $ — $ 256,896 $ (1,095,441 ) $ — $ 10,111,725 Mortgage loans related to Non-Residual Trusts (1) 450,377 22,319 — (25,062 ) — (66,509 ) — 381,125 Mortgage loans held for sale (1) — (2,195 ) — 25,062 — (748 ) — 22,119 Charged-off loans (2) 46,963 28,909 — — — (29,730 ) — 46,142 Receivables related to Non-Residual Trusts 15,033 2,740 — — — (10,275 ) — 7,498 Servicing rights carried at fair value 936,423 (200,993 ) 555 5,672 59,987 — (34,847 ) 766,797 Freestanding derivative instruments (IRLCs) 53,394 (19,763 ) — — — (165 ) — 33,466 Total assets $ 12,245,112 $ (6,404 ) $ 45,324 $ 5,672 $ 316,883 $ (1,202,868 ) $ (34,847 ) $ 11,368,872 Liabilities Freestanding derivative instruments (IRLCs) $ (4,193 ) $ 3,326 $ — $ — $ — $ — $ — $ (867 ) Mortgage-backed debt related to Non-Residual Trusts (514,025 ) (22,424 ) — — — 99,528 — (436,921 ) HMBS related obligations (10,509,449 ) (138,195 ) — — (375,786 ) 1,425,196 — (9,598,234 ) Total liabilities $ (11,027,667 ) $ (157,293 ) $ — $ — $ (375,786 ) $ 1,524,724 $ — $ (10,036,022 ) __________ (1) During the nine months ended September 30, 2017 , $25.1 million of loans transferred from mortgage loans related to Non-Residual Trusts to mortgage loans held for sale upon exercising a mandatory call obligation. See Note 14 for additional information on the mandatory call obligations. (2) 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 $12.4 million during the nine months ended September 30, 2017 . For the Nine Months Ended September 30, 2016 Fair Value Total Purchases and Other Sales Originations / Issuances Settlements Transfers Out of Level 3 Fair Value Assets Reverse loans $ 10,763,816 $ 392,348 $ 296,093 $ — $ 357,603 $ (864,791 ) $ — $ 10,945,069 Mortgage loans related to Non-Residual Trusts 526,016 10,556 — — — (72,952 ) — 463,620 Charged-off loans (1) 49,307 32,924 — — — (32,970 ) — 49,261 Receivables related to Non-Residual Trusts 16,542 4,698 — — — (6,230 ) — 15,010 Servicing rights carried at fair value (2) 1,682,016 (600,109 ) 5,685 (41,027 ) 148,449 — (212,630 ) 982,384 Freestanding derivative instruments (IRLCs) 51,519 27,476 — — — (574 ) — 78,421 Total assets $ 13,089,216 $ (132,107 ) $ 301,778 $ (41,027 ) $ 506,052 $ (977,517 ) $ (212,630 ) $ 12,533,765 Liabilities Freestanding derivative instruments (IRLCs) $ (1,070 ) $ 555 $ — $ — $ — $ — $ — $ (515 ) Servicing rights related liabilities (3) (117,000 ) (4,688 ) — — (27,886 ) 30,307 — (119,267 ) Mortgage-backed debt related to Non-Residual Trusts (582,340 ) (21,101 ) — — — 74,068 — (529,373 ) HMBS related obligations (10,647,382 ) (330,863 ) — — (684,711 ) 963,236 — (10,699,720 ) Total liabilities $ (11,347,792 ) $ (356,097 ) $ — $ — $ (712,597 ) $ 1,067,611 $ — $ (11,348,875 ) __________ (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 $17.8 million during the nine months ended September 30, 2016 . (2) During the nine months ended September 30, 2016 , the Company sold mortgage servicing rights with a fair value of $41.0 million and recognized a total net loss on sale of $0.7 million . (3) Included in losses on servicing rights related liabilities are gains from instrument-specific credit risk, which primarily result from changes in assumptions related to discount rates, conditional prepayment rates and conditional default rates, of $9.7 million during the nine months ended September 30, 2016 . |
Schedule of Significant Unobservable Inputs Used in Fair Value Measurement of Assets and Liabilities on Recurring Basis | The following tables present the significant unobservable inputs used in the fair value measurement of the assets and liabilities described above. The Company utilizes a discounted cash flow model to estimate the fair value of all Level 3 assets and liabilities included on the Consolidated Financial Statements at fair value on a recurring basis, with the exception of IRLCs for which the Company utilizes a market approach. Significant increases or decreases in any of the inputs disclosed below could result in a significantly lower or higher fair value measurement. September 30, 2017 December 31, 2016 Significant (1) (2) Range of Input (3) Weighted (3) Range of Input (3) Weighted (3) Assets Reverse loans Weighted-average remaining life in years (4) 0.5 - 10.5 4.1 0.6 - 10.2 3.8 Conditional repayment rate 12.51% - 71.58% 28.35 % 13.23% - 55.32% 28.48 % Discount rate 2.95% - 4.20% 3.34 % 1.93% - 3.69% 2.93 % Mortgage loans related to Non-Residual Trusts Conditional prepayment rate 2.22% - 2.72% 2.52 % 1.98% - 2.67% 2.27 % Conditional default rate 0.90% - 4.55% 2.31 % 1.02% - 4.25% 2.61 % Loss severity 88.49% - 100.00% 99.24 % 79.98% - 100.00% 96.61 % Discount rate 8.32% 8.32 % 8.00% 8.00 % Mortgage loans held for sale Conditional prepayment rate 4.81% - 5.85% 5.16 % — — Conditional default rate 2.46% - 3.33% 2.76 % — — Loss severity 86.65% - 99.40% 93.96 % — — Discount rate 9.80% 9.80 % — — Charged-off loans Collection rate 2.82% - 4.63% 2.91 % 2.69% - 3.55% 2.74 % Discount rate 28.00% 28.00 % 28.00% 28.00 % Receivables related to Non-Residual Trusts Conditional prepayment rate 2.55% - 3.31% 2.90 % 2.22% - 3.17% 2.65 % Conditional default rate 1.77% - 5.12% 3.05 % 2.32% - 4.66% 3.34 % Loss severity 86.80% - 100.00% 97.93 % 77.88% - 100.00% 94.51 % Discount rate 0.50% 0.50 % 0.50% 0.50 % Servicing rights carried at fair value Weighted-average remaining life in years (4) 2.4 - 7.0 5.7 2.6 - 7.4 6.0 Discount rate 9.91% - 14.81% 11.68 % 10.68% - 14.61% 11.56 % Conditional prepayment rate 6.55% - 24.35% 10.70 % 5.76% - 21.67% 9.09 % Conditional default rate 0.04% - 3.68% 0.90 % 0.04% - 2.97% 0.88 % Cost to service $62 - $1,260 $133 $62 - $1,260 $128 Interest rate lock commitments Loan funding probability 1.00% - 100.00% 60.95 % 16.00% - 100.00% 75.86 % Fair value of initial servicing rights multiple (5) 0.01 - 5.27 2.69 0.01 - 5.98 3.06 September 30, 2017 December 31, 2016 Significant (1) (2) Range of Input (3) Weighted (3) Range of Input (3) Weighted (3) Liabilities Interest rate lock commitments Loan funding probability 37.34% - 100.00% 81.15 % 34.40% - 100.00% 83.36 % Fair value of initial servicing rights multiple (5) 0.12 - 4.92 3.47 0.04 - 6.04 3.69 Mortgage-backed debt related to Non-Residual Trusts Conditional prepayment rate 2.55% - 3.31% 2.90 % 2.22% - 3.17% 2.65 % Conditional default rate 1.77% - 5.12% 3.05 % 2.32% - 4.66% 3.34 % Loss severity 86.80% - 100.00% 97.93 % 77.88% - 100.00% 94.51 % Discount rate 6.00% 6.00 % 6.00% 6.00 % HMBS related obligations Weighted-average remaining life in years (4) 0.4 - 8.0 3.6 0.4 - 7.2 3.2 Conditional repayment rate 12.80% - 86.77% 32.69 % 11.49% - 57.76% 27.74 % Discount rate 2.61% - 4.01% 3.35 % 1.50% - 3.17% 2.56 % __________ (1) Conditional repayment rate includes assumptions for both voluntary and involuntary rates as well as assumptions for the assignment of HECMs to HUD, in accordance with obligations as servicer. (2) Voluntary and involuntary prepayment rates have been presented as conditional prepayment rate and conditional default rate, respectively. (3) With the exception of loss severity, fair value of initial servicing rights embedded in IRLCs and discount rate on charged-off loans, all significant unobservable inputs above are based on the related unpaid principal balance of the underlying collateral, or in the case of HMBS related obligations, the balance outstanding. Loss severity is based on projected liquidations. Fair value of servicing rights embedded in IRLCs represents a multiple of the annual servicing fee. The discount rate on charged-off loans is based on the loan balance at fair value. (4) Represents the remaining weighted-average life of the related unpaid principal balance or balance outstanding of the underlying collateral adjusted for assumptions for conditional repayment rate, conditional prepayment rate and conditional default rate, as applicable. (5) Fair value of servicing rights embedded in IRLCs, which represents a multiple of the annual servicing fee, excludes the impact of certain IRLCs identified as servicing released for which the Company does not ultimately realize the benefits. |
Schedule of Estimated Fair Value and Unpaid Principal Balance, Fair Value Option | Presented in the table below is the estimated fair value and unpaid principal balance of loans and debt instruments that have contractual principal amounts and for which the Company has elected the fair value option (in thousands): September 30, 2017 December 31, 2016 Estimated Unpaid Principal Estimated Unpaid Principal Loans at fair value under the fair value option Reverse loans (1) $ 10,111,725 $ 9,754,214 $ 10,742,922 $ 10,218,007 Mortgage loans held for sale (1) 838,500 812,134 1,176,280 1,148,897 Mortgage loans related to Non-Residual Trusts 381,125 431,423 450,377 513,545 Charged-off loans 46,142 2,371,073 46,963 2,439,318 Total $ 11,377,492 $ 13,368,844 $ 12,416,542 $ 14,319,767 Debt instruments at fair value under the fair value option Mortgage-backed debt related to Non-Residual Trusts $ 436,921 $ 439,523 $ 514,025 $ 518,317 HMBS related obligations (2) 9,598,234 9,139,847 10,509,449 9,916,383 Total $ 10,035,155 $ 9,579,370 $ 11,023,474 $ 10,434,700 __________ (1) Includes loans that collateralize master repurchase agreements. Refer to Note 10 for additional information. (2) For HMBS related obligations, the unpaid principal balance represents the balance outstanding. |
Schedule of Significant Unobservable Inputs Used in Fair Value Measurement of Real Estate Owned | The following table presents the significant unobservable input used in the fair value measurement of real estate owned, net: September 30, 2017 December 31, 2016 Significant Range of Input Weighted Range of Input Weighted Real estate owned, net Loss severity (1) 0.00% - 59.80% 7.02 % 0.00% - 61.61% 7.30 % __________ (1) Loss severity is based on the unpaid principal balance of the related loan at the time of foreclosure. |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Assets and Liabilities Not Recorded at Fair Value | The following table presents the carrying amounts and estimated fair values of financial assets and liabilities that are not recorded at fair value on a recurring or non-recurring basis and their respective levels within the fair value hierarchy (in thousands). This table excludes cash and cash equivalents, restricted cash and cash equivalents, servicer payables and warehouse borrowings as these financial instruments are highly liquid or short-term in nature and as a result, their carrying amounts approximate fair value. September 30, 2017 December 31, 2016 Fair Value Carrying Estimated Carrying Estimated Financial assets Residential loans at amortized cost, net (1) Level 3 $ 449,160 $ 451,956 $ 480,920 $ 490,562 Servicer and protective advances, net Level 3 850,867 787,260 1,195,380 1,147,155 Financial liabilities Servicing advance liabilities (2) Level 3 508,991 508,936 781,734 782,570 Corporate debt (3) Level 2 2,020,897 1,539,010 2,126,176 1,967,518 Mortgage-backed debt carried at amortized cost Level 3 395,976 401,944 429,931 435,679 __________ (1) Excludes loans subject to repurchase from Ginnie Mae and the related liability. The December 31, 2016 amounts disclosed above have been revised to reflect this exclusion. (2) The carrying amounts of servicing advance liabilities are net of deferred issuance costs, including those relating to line-of-credit arrangements, which are recorded in other assets. (3) The carrying amounts of corporate debt are net of the 2013 Revolver deferred issuance costs, which are recorded in other assets on the consolidated balance sheets. |
Schedule of Net Gains on Sales of Loans | Provided in the table below is a summary of the components of net gains on sales of loans (in thousands): For the Three Months For the Nine Months 2017 2016 2017 2016 Realized gains on sales of loans (1) $ 19,186 $ 90,736 $ 127,954 $ 250,815 Change in unrealized gains on loans held for sale (828 ) (4,261 ) 12,784 8,578 Gains (losses) on interest rate lock commitments 3,140 2,719 (16,438 ) 28,031 Losses on forward sales commitments (9,544 ) (6,082 ) (32,950 ) (116,419 ) Losses on MBS purchase commitments (4,034 ) (18,301 ) (6,252 ) (31,574 ) Capitalized servicing rights (1) 58,814 49,912 110,204 148,449 Provision for repurchases (1,846 ) (3,221 ) (5,644 ) (11,658 ) Interest income 8,156 10,545 28,581 30,478 Other (31 ) (33 ) (325 ) (33 ) Net gains on sales of loans $ 73,013 $ 122,014 $ 217,914 $ 306,667 __________ (1) Includes reclassification of the capitalization of servicing rights associated with co-issue MSR sales with NRM from realized gains on sale of loans to capitalized servicing rights of $33.8 million for the first two quarters of 2017. The co-issue MSR sales for the first, second and third quarters of 2017 were $16.0 million , $17.8 million and $16.1 million , respectively. |
Schedule of Net Fair Value Gains on Reverse Loans and Related HMBS Obligations | Provided in the table below is a summary of the components of net fair value gains on reverse loans and related HMBS obligations (in thousands): For the Three Months For the Nine Months 2017 2016 2017 2016 Interest income on reverse loans $ 113,519 $ 112,838 $ 340,465 $ 337,063 Change in fair value of reverse loans (66,121 ) (16,699 ) (177,886 ) 55,285 Net fair value gains on reverse loans 47,398 96,139 162,579 392,348 Interest expense on HMBS related obligations (99,153 ) (102,879 ) (302,879 ) (309,501 ) Change in fair value of HMBS related obligations 53,565 25,367 164,684 (21,362 ) Net fair value losses on HMBS related obligations (45,588 ) (77,512 ) (138,195 ) (330,863 ) Net fair value gains on reverse loans and related HMBS obligations $ 1,810 $ 18,627 $ 24,384 $ 61,485 |
Freestanding Derivative Finan27
Freestanding Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional or Contractual Amounts and Fair Values of Derivative Instruments | The following table provides the total notional or contractual amounts and related fair values of derivative assets and liabilities as well as cash margin (in thousands): September 30, 2017 December 31, 2016 Notional/ Fair Value Notional/ Fair Value Derivative Derivative Derivative Derivative Interest rate lock commitments $ 1,850,244 $ 33,466 $ 867 $ 3,046,549 $ 53,394 $ 4,193 Forward sales commitments 2,135,500 2,740 1,635 3,978,000 29,471 7,609 MBS purchase commitments 272,000 9 281 623,500 5,072 2 Total derivative instruments $ 36,215 $ 2,783 $ 87,937 $ 11,804 Cash margin $ 1,043 $ 777 $ — $ 30,941 |
Servicing of Residential Loans
Servicing of Residential Loans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Schedule of Total Servicing Portfolio | Provided below is a summary of the Company’s total servicing portfolio (dollars in thousands): September 30, 2017 December 31, 2016 Number Unpaid Principal Number Unpaid Principal Third-party credit owners Capitalized servicing rights 925,034 $ 102,525,963 1,032,676 $ 112,936,287 Capitalized subservicing (1) 54,923 3,884,747 130,018 7,426,803 Subservicing 723,280 101,089,228 804,461 113,392,035 Total third-party servicing portfolio 1,703,237 207,499,938 1,967,155 233,755,125 On-balance sheet residential loans and real estate owned 89,249 11,892,038 97,388 12,690,018 Total servicing portfolio 1,792,486 $ 219,391,976 2,064,543 $ 246,445,143 __________ (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 (in thousands): For the Three Months For the Nine Months 2017 2016 2017 2016 Servicing fees (1) (2) $ 119,253 $ 172,780 $ 381,800 $ 527,616 Incentive and performance fees (1) 12,807 17,158 44,756 54,941 Ancillary and other fees (1) (3) 20,783 23,434 66,038 73,101 Servicing revenue and fees 152,843 213,372 492,594 655,658 Amortization of servicing rights (4) (5) (5,018 ) (5,822 ) (19,969 ) (13,058 ) Change in fair value of servicing rights (82,796 ) (86,036 ) (203,026 ) (600,109 ) Change in fair value of servicing rights related liabilities (2) (6) — (9,885 ) (62 ) (4,688 ) Net servicing revenue and fees $ 65,029 $ 111,629 $ 269,537 $ 37,803 __________ (1) Includes subservicing fees and incentive, performance, ancillary and other fees related to servicing assets held by WCO of $1.3 million and $0.2 million , respectively, for the three months ended September 30, 2016 and $3.5 million and $0.5 million , respectively, for the nine months ended September 30, 2016 . (2) Includes a pass-through of $3.5 million and $6.5 million relating to servicing rights sold to WCO for the three and nine months ended September 30, 2016 , respectively. (3) Includes late fees of $14.2 million and $15.2 million for the three months ended September 30, 2017 and 2016 , respectively, and $44.7 million and $48.9 million for the nine months ended September 30, 2017 and 2016 , respectively. (4) Includes amortization of a servicing liability of $1.1 million and $2.4 million for the three months ended September 30, 2017 and 2016 , respectively, and $3.2 million and $6.7 million for the nine months ended September 30, 2017 and 2016 , respectively. (5) Includes impairment of servicing rights and a servicing liability of $3.7 million and $14.8 million for the three and nine months ended September 30, 2017 , respectively. (6) Includes interest expense on servicing rights related liabilities, which represents the accretion of fair value, of $5.0 million and $12.0 million for the three and nine months ended September 30, 2016 , 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): For the Nine Months For the Nine Months Mortgage Loan Reverse Loan Mortgage Loan Reverse Loan Balance at beginning of the period $ 74,621 $ 5,505 $ 99,302 $ 7,258 Sales — — (130 ) — Amortization of servicing rights (1) (7,184 ) (1,147 ) (15,545 ) (1,337 ) Impairment of servicing rights (2) (10,644 ) — (19 ) — Balance at end of the period $ 56,793 $ 4,358 $ 83,608 $ 5,921 __________ (1) Includes amortization of servicing rights for the mortgage loan class and the reverse loan class of $2.0 million and $0.4 million , respectively, for the three months ended September 30, 2017 and $4.9 million and $0.4 million , respectively, for the three months ended September 30, 2016 . (2) Includes impairment of servicing rights related to the mortgage loan class of $1.6 million for the three months ended September 30, 2017 . |
Schedule of Fair Value Assumptions, Servicing Rights Carried at Amortized Cost | The estimation of fair value requires significant judgment and uses key economic inputs and assumptions, which are provided in the table below: September 30, 2017 December 31, 2016 Mortgage Loan Reverse Loan Mortgage Loan Reverse Loan Weighted-average remaining life in years (1) 4.4 2.8 5.1 2.6 Weighted-average discount rate 13.00 % 15.00 % 13.00 % 15.00 % Conditional prepayment rate (2) 5.80 % N/A 6.51 % N/A Conditional default rate (2) 2.46 % N/A 2.33 % N/A Conditional repayment rate (3) N/A 35.00 % N/A 32.28 % __________ (1) Represents the remaining weighted-average life of the related unpaid principal balance of the underlying collateral adjusted for assumptions for conditional repayment rate, conditional prepayment rate and conditional default rate, as applicable. (2) Voluntary and involuntary prepayment rates have been presented as conditional prepayment rate and conditional default rate, respectively. (3) Conditional repayment rate includes assumptions for both voluntary and involuntary rates as well as assumptions for the assignment of HECMs to HUD, in accordance with obligations as servicer. |
Schedule of Servicing Rights Carried at Fair Value | The following table summarizes the activity in servicing rights carried at fair value (in thousands): For the Three Months For the Nine Months 2017 2016 2017 2016 Balance at beginning of the period $ 870,758 $ 1,255,351 $ 949,593 $ 1,682,016 Purchases 36 497 555 22,336 Servicing rights capitalized upon sales of loans (1) 69,266 49,912 122,562 148,449 Sales (1) (48,434 ) (12,792 ) (60,854 ) (41,027 ) Other — (11,918 ) — (16,651 ) Change in fair value due to: Changes in valuation inputs or other assumptions (2) (51,539 ) (25,922 ) (103,820 ) (412,095 ) Other changes in fair value (3) (31,257 ) (60,114 ) (99,206 ) (188,014 ) Total change in fair value (82,796 ) (86,036 ) (203,026 ) (600,109 ) Balance at end of the period (4) $ 808,830 $ 1,195,014 $ 808,830 $ 1,195,014 __________ (1) During the third quarter of 2017, the disclosure above was revised to reflect the capitalization of servicing rights associated with co-issue MSR with NRM in the amount of $49.9 million , which increased the amount of servicing rights capitalized upon sales of loans as well as the offsetting sales of servicing rights lines shown above. The impacts to the first, second and third quarters of 2017 were $16.0 million , $17.8 million and $16.1 million , respectively. The total servicing rights reported in the consolidated balance sheets was not impacted by this disclosure revision. (2) Represents the change in fair value typically resulting from market-driven changes in interest rates and prepayment speeds. (3) Represents the realization of expected cash flows over time. (4) Includes servicing rights that were sold to WCO and accounted for as a financing transaction of $34.0 million at September 30, 2016 . |
Schedule of Sensitivity Analysis of Fair Value, Servicing Rights Carried at Fair Value | The following table summarizes the hypothetical effect on the fair value of servicing rights carried at fair value using adverse changes of 10% and 20% to the weighted average of the significant assumptions used in valuing these assets (dollars in thousands): September 30, 2017 December 31, 2016 Decline in fair value due to Decline in fair value due to Assumption 10% adverse change 20% adverse change Assumption 10% adverse change 20% adverse change Weighted-average discount rate 11.68 % $ (32,327 ) $ (62,154 ) 11.56 % $ (41,926 ) $ (80,512 ) Weighted-average conditional prepayment rate 10.70 % (37,357 ) (71,866 ) 9.09 % (30,513 ) (59,083 ) Weighted-average conditional default rate 0.90 % (28,308 ) (54,664 ) 0.88 % (28,370 ) (57,854 ) |
Schedule of Fair Value Assumptions, Fair Value of Servicing Rights on Date of Sale | For mortgage loans sold with servicing retained, the Company used the following inputs and assumptions to determine the fair value of servicing rights at the dates of sale. These servicing rights are included in servicing rights capitalized upon sales of loans in the table presented above that summarizes the activity in servicing rights accounted for at fair value. For the Three Months For the Nine Months 2017 (1) 2016 2017 (1) 2016 Weighted-average life in years 6.1 5.8 6.4 6.0 Weighted-average discount rate 14.71% 12.14% 14.20% 12.51% Weighted-average conditional prepayment rate 10.36% 11.32% 9.14% 10.11% Weighted-average conditional default rate 0.42% 0.18% 0.44% 0.31% __________ (1) Excludes inputs and assumptions related to servicing rights capitalized under the Company's co-issue program with NRM, which are classified as Level 2. |
Payables and Accrued Liabilit29
Payables and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Payables and Accrued Liabilities | Payables and accrued liabilities consist of the following (in thousands): September 30, December 31, Loans subject to repurchase from Ginnie Mae $ 293,744 $ 184,289 Curtailment liability 122,739 121,305 Accounts payable and accrued liabilities 119,935 155,556 Employee-related liabilities 44,205 91,063 Originations liability 31,237 62,969 Accrued interest payable 22,973 9,414 Servicing rights and related advance purchases payable 15,075 18,187 Uncertain tax positions (1) 7,077 9,414 Derivative instruments 2,783 11,804 Payables to insurance carriers — 5,452 Margin payable on derivative instruments 777 30,941 Other 60,646 58,617 Total payables and accrued liabilities $ 721,191 $ 759,011 __________ (1) Included in the uncertain tax position at December 31, 2016 is $2.5 million related to the sale of the insurance business as described in Note 1. In connection with the closing of the sale on February 1, 2017, the uncertain tax position related to the insurance business was reversed. |
Schedule of Accrued Exit Liability by Action | The following table presents the current period activity in the accrued exit liability resulting from each of the 2015 Actions, 2016 Actions and 2017 Actions described above, which is included in payables and accrued liabilities on the consolidated balance sheets, and the related charges and cash payments and other settlements associated with these actions (in thousands): For the Nine Months Ended September 30, 2017 2015 Actions 2016 Actions 2017 Actions Total Balance at January 1, 2017 $ 988 $ 11,878 $ — $ 12,866 Charges Severance and related costs (1) (57 ) 25 7,734 7,702 Office closures and other costs 47 38 850 935 Total charges (10 ) 63 8,584 8,637 Cash payments or other settlements Severance and related costs (163 ) (11,002 ) (3,486 ) (14,651 ) Office closures and other costs (545 ) (472 ) (242 ) (1,259 ) Total cash payments or other settlements (708 ) (11,474 ) (3,728 ) (15,910 ) Balance at September 30, 2017 $ 270 $ 467 $ 4,856 $ 5,593 Cumulative charges incurred Severance and related costs 7,181 19,793 7,734 34,708 Office closures and other costs 6,582 3,816 850 11,248 Total cumulative charges incurred $ 13,763 $ 23,609 $ 8,584 $ 45,956 Total expected costs to be incurred (2) $ 13,763 $ 23,609 $ 12,117 $ 49,489 __________ (1) Includes adjustments to prior year accruals resulting from changes to previous estimates. (2) Total expected costs for the 2017 Actions are based on actions as set forth in the 2017 operating plan. These expected costs could change based on additional actions as determined by management throughout the year. |
Schedule of Accrued Exit Liability by Reportable Segment | The following table presents the current period activity for each of the 2015 Actions, 2016 Actions, and 2017 Actions described above by reportable segment (in thousands): For the Nine Months Ended September 30, 2017 Servicing Originations Reverse Other Total Balance at January 1, 2017 2015 Actions $ 453 $ 260 $ 275 $ — $ 988 2016 Actions 4,323 1,023 2,222 4,310 11,878 2017 Actions — — — — — Total balance at January 1, 2017 4,776 1,283 2,497 4,310 12,866 Charges 2015 Actions (1) (57 ) 35 12 — (10 ) 2016 Actions (1) 42 (147 ) 22 146 63 2017 Actions 6,117 1,097 1,370 — 8,584 Total charges 6,102 985 1,404 146 8,637 Cash payments or other settlements 2015 Actions (250 ) (213 ) (245 ) — (708 ) 2016 Actions (4,058 ) (876 ) (2,191 ) (4,349 ) (11,474 ) 2017 Actions (2,239 ) (846 ) (643 ) — (3,728 ) Total cash payments or other settlements (6,547 ) (1,935 ) (3,079 ) (4,349 ) (15,910 ) Balance at September 30, 2017 2015 Actions 146 82 42 — 270 2016 Actions 307 — 53 107 467 2017 Actions 3,878 251 727 — 4,856 Total balance at September 30, 2017 $ 4,331 $ 333 $ 822 $ 107 $ 5,593 Total cumulative charges incurred 2015 Actions $ 6,424 $ 4,625 $ 1,863 $ 851 $ 13,763 2016 Actions 11,644 989 5,248 5,728 23,609 2017 Actions 6,117 1,097 1,370 — 8,584 Total cumulative charges incurred $ 24,185 $ 6,711 $ 8,481 $ 6,579 $ 45,956 Total expected costs to be incurred 2015 Actions $ 6,424 $ 4,625 $ 1,863 $ 851 $ 13,763 2016 Actions 11,644 989 5,248 5,728 23,609 2017 Actions (2) 9,650 1,097 1,370 — 12,117 Total expected costs to be incurred $ 27,718 $ 6,711 $ 8,481 $ 6,579 $ 49,489 __________ (1) Includes adjustments to prior year accruals resulting from changes to previous estimates. (2) Total expected costs for the 2017 Actions are based on actions as set forth in the 2017 operating plan. These expected costs could change based on additional actions as determined by management throughout the year. |
Common Stock and Loss Per Sha30
Common Stock and Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 loss per share computations shown on the consolidated statements of comprehensive loss (in thousands, except per share data): For the Three Months For the Nine Months 2017 2016 2017 2016 Basic and diluted loss per share Net loss available to common stockholders (numerator) $ (124,133 ) $ (213,267 ) $ (213,934 ) $ (875,932 ) Weighted-average common shares outstanding (denominator) 36,714 36,144 36,555 35,828 Basic and diluted loss per common and common equivalent share $ (3.38 ) $ (5.90 ) $ (5.85 ) $ (24.45 ) |
Schedule of Antidilutive Securities Excluded from Computation of Dilutive Earnings Per Share | The following table summarizes antidilutive securities that would be excluded from the computation of dilutive earnings per share (in thousands): For the Three Months For the Nine Months 2017 2016 2017 2016 Outstanding share-based compensation awards Stock options (1) 3,547 3,962 3,547 3,245 Performance shares (2) — — — — Restricted stock units 327 808 327 564 Assumed conversion of Convertible Notes 4,932 4,932 4,932 4,932 __________ (1) Includes out-of-the-money stock options totaling 3.5 million and 3.0 million at September 30, 2017 and 2016, respectively. (2) Performance shares represent the number of shares expected to be issued based on the performance percentage as of the end of the reporting periods above. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Select Financial Information of Reportable Segments | The following tables present select financial information for the reportable segments (in thousands). The Company has presented the revenue and expenses of the Non-Residual Trusts and other non-reportable operating segments, as well as certain corporate expenses that have not been allocated to the business segments, in Other. Intersegment revenues and expenses have been eliminated. For the Three Months Ended September 30, 2017 Servicing Originations Reverse Other Eliminations Total Total revenues (1) (2) (3) $ 90,508 $ 81,268 $ 9,083 $ 181 $ (4,396 ) $ 176,644 Income (loss) before income taxes (69,342 ) 19,868 (24,900 ) (49,304 ) — (123,678 ) For the Three Months Ended September 30, 2016 Servicing Originations Reverse Other Eliminations Total Total revenues (1) (2) (3) $ 148,873 $ 133,440 $ 27,023 $ (194 ) $ (11,812 ) $ 297,330 Income (loss) before income taxes (161,581 ) 51,672 (23,023 ) (25,251 ) — (158,183 ) __________ (1) The Servicing segment recorded intercompany servicing revenue and fees from activity with the Originations segment and the Other non-reportable segment of $2.2 million and $3.0 million for the three months ended September 30, 2017 and 2016 , respectively. Included in these amounts are late fees that were waived as an incentive for borrowers refinancing their loans of $0.6 million and $1.0 million for the three months ended September 30, 2017 and 2016 , 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 $2.7 million and $9.8 million for the three months ended September 30, 2017 and 2016 , respectively. (3) The Originations segment recorded intercompany revenues for fees earned supporting the Servicing segment in administrative functions relating to the acquisition of certain servicing rights of less than $0.1 million for the three months ended September 30, 2017 and 2016 . For the Nine Months Ended September 30, 2017 Servicing Originations Reverse Other Eliminations Total Total revenues (1) (2) (3) $ 355,714 $ 242,596 $ 46,985 $ 891 $ (15,470 ) $ 630,716 Income (loss) before income taxes (80,161 ) 50,710 (46,699 ) (135,757 ) — (211,907 ) For the Nine Months Ended September 30, 2016 Servicing Originations Reverse Other Eliminations Total Total revenues (1) (2) (3) $ 158,431 $ 343,926 $ 87,255 $ (119 ) $ (37,919 ) $ 551,574 Income (loss) before income taxes (773,928 ) 113,688 (44,940 ) (111,478 ) — (816,658 ) __________ (1) The Servicing segment recorded intercompany servicing revenue and fees from activity with the Originations segment and the Other non-reportable segment of $7.5 million and $9.2 million for the nine months ended September 30, 2017 and 2016 , respectively. Included in these amounts are late fees that were waived as an incentive for borrowers refinancing their loans of $2.2 million and $3.0 million for the nine months ended September 30, 2017 and 2016 , 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 $10.1 million and $30.8 million for the nine months ended September 30, 2017 and 2016 , respectively. (3) The Originations segment recorded intercompany revenues for fees earned supporting the Servicing segment in administrative functions relating to the acquisition of certain servicing rights of less than $0.1 million and $1.0 million for the nine months ended September 30, 2017 and 2016 , respectively. |
Separate Financial Informatio32
Separate Financial Information of Subsidiary Guarantors of Indebtedness (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheets | Presented below are the condensed consolidating financial information of the Parent Company, the guarantor subsidiaries on a combined basis, and the non-guarantor subsidiaries on a combined basis. Condensed Consolidating Balance Sheet September 30, 2017 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated ASSETS Cash and cash equivalents $ 715 $ 274,087 $ 2,000 $ — $ 276,802 Restricted cash and cash equivalents 1,502 325,220 32,698 — 359,420 Residential loans at amortized cost, net 11,700 299,745 431,459 — 742,904 Residential loans at fair value — 10,996,367 381,125 — 11,377,492 Receivables, net 20,719 122,279 8,400 — 151,398 Servicer and protective advances, net — 390,673 444,118 16,076 850,867 Servicing rights, net — 869,981 — — 869,981 Goodwill — 47,747 — — 47,747 Intangible assets, net — 9,213 — — 9,213 Premises and equipment, net 1,122 57,088 — — 58,210 Deferred tax assets, net 857 — — (857 ) — Other assets 26,027 177,592 31,982 — 235,601 Due from affiliates, net 276,166 — — (276,166 ) — Investments in consolidated subsidiaries and VIEs 1,491,518 68,643 — (1,560,161 ) — Total assets $ 1,830,326 $ 13,638,635 $ 1,331,782 $ (1,821,108 ) $ 14,979,635 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Payables and accrued liabilities $ 43,921 $ 679,677 $ 4,475 $ (6,882 ) $ 721,191 Servicer payables — 346,753 — — 346,753 Servicing advance liabilities — 83,895 425,468 — 509,363 Warehouse borrowings — 1,178,320 — — 1,178,320 Servicing rights related liabilities at fair value — 1,565 — — 1,565 Corporate debt 2,022,639 — — — 2,022,639 Mortgage-backed debt — — 832,897 — 832,897 HMBS related obligations at fair value — 9,598,234 — — 9,598,234 Deferred tax liabilities, net — 5,764 — (857 ) 4,907 Obligation to fund Non-Guarantor VIEs — 48,249 — (48,249 ) — Due to affiliates, net — 272,741 3,425 (276,166 ) — Total liabilities 2,066,560 12,215,198 1,266,265 (332,154 ) 15,215,869 Stockholders' equity (deficit): Total stockholders' equity (deficit) (236,234 ) 1,423,437 65,517 (1,488,954 ) (236,234 ) Total liabilities and stockholders' equity (deficit) $ 1,830,326 $ 13,638,635 $ 1,331,782 $ (1,821,108 ) $ 14,979,635 Condensed Consolidating Balance Sheet December 31, 2016 (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated ASSETS Cash and cash equivalents $ 773 $ 221,825 $ 2,000 $ — $ 224,598 Restricted cash and cash equivalents 1,502 158,204 44,757 — 204,463 Residential loans at amortized cost, net 12,891 189,441 462,877 — 665,209 Residential loans at fair value — 11,924,043 492,499 — 12,416,542 Receivables, net 97,424 154,852 15,686 — 267,962 Servicer and protective advances, net — 481,099 688,961 25,320 1,195,380 Servicing rights, net — 1,029,719 — — 1,029,719 Goodwill — 47,747 — — 47,747 Intangible assets, net — 11,347 — — 11,347 Premises and equipment, net 1,181 81,447 — — 82,628 Assets held for sale — 65,045 6,040 — 71,085 Other assets 30,789 191,671 19,830 — 242,290 Due from affiliates, net 392,998 — — (392,998 ) — Investments in consolidated subsidiaries and VIEs 1,620,339 134,612 — (1,754,951 ) — Total assets $ 2,157,897 $ 14,691,052 $ 1,732,650 $ (2,122,629 ) $ 16,458,970 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Payables and accrued liabilities $ 53,337 $ 708,070 $ 5,474 $ (7,870 ) $ 759,011 Servicer payables — 146,332 — — 146,332 Servicing advance liabilities — 132,664 650,565 — 783,229 Warehouse borrowings — 1,203,355 — — 1,203,355 Servicing rights related liabilities at fair value — 1,902 — — 1,902 Corporate debt 2,129,000 — — — 2,129,000 Mortgage-backed debt — — 943,956 — 943,956 HMBS related obligations at fair value — 10,509,449 — — 10,509,449 Deferred tax liabilities, net — 3,204 1,570 — 4,774 Liabilities held for sale — 1,179 1,223 — 2,402 Obligation to fund Non-Guarantor VIEs — 46,417 — (46,417 ) — Due to affiliates, net — 392,812 185 (392,997 ) — Total liabilities 2,182,337 13,145,384 1,602,973 (447,284 ) 16,483,410 Stockholders' equity (deficit): Total stockholders' equity (deficit) (24,440 ) 1,545,668 129,677 (1,675,345 ) (24,440 ) Total liabilities and stockholders' equity (deficit) $ 2,157,897 $ 14,691,052 $ 1,732,650 $ (2,122,629 ) $ 16,458,970 |
Condensed Consolidating Statements of Comprehensive Income (Loss) | Condensed Consolidating Statement of Comprehensive Income (Loss) For the Three Months Ended September 30, 2017 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated REVENUES Net servicing revenue and fees $ — $ 66,951 $ — $ (1,922 ) $ 65,029 Net gains on sales of loans — 73,013 — — 73,013 Net fair value gains on reverse loans and related HMBS obligations — 1,810 — — 1,810 Interest income on loans 206 537 9,059 — 9,802 Insurance revenue — 2,236 — — 2,236 Other revenues 215 24,540 14,399 (14,400 ) 24,754 Total revenues 421 169,087 23,458 (16,322 ) 176,644 EXPENSES General and administrative 24,439 123,128 2,519 (12,472 ) 137,614 Salaries and benefits 10,770 80,774 — — 91,544 Interest expense 35,640 15,371 10,686 (26 ) 61,671 Depreciation and amortization 171 9,570 — — 9,741 Corporate allocations (19,477 ) 19,477 — — — Other expenses, net 161 1,137 1,278 — 2,576 Total expenses 51,704 249,457 14,483 (12,498 ) 303,146 OTHER GAINS (LOSSES) Other net fair value gains (losses) — (550 ) 4,333 — 3,783 Net losses on extinguishment of debt (959 ) — — — (959 ) Total other gains (losses) (959 ) (550 ) 4,333 — 2,824 Income (loss) before income taxes (52,242 ) (80,920 ) 13,308 (3,824 ) (123,678 ) Income tax expense (benefit) 2,104 (3,345 ) 1,889 (193 ) 455 Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs (54,346 ) (77,575 ) 11,419 (3,631 ) (124,133 ) Equity in earnings (losses) of consolidated subsidiaries and VIEs (69,787 ) 10,530 — 59,257 — Net income (loss) $ (124,133 ) $ (67,045 ) $ 11,419 $ 55,626 $ (124,133 ) Comprehensive income (loss) $ (124,035 ) $ (67,045 ) $ 11,419 $ 55,626 $ (124,035 ) Condensed Consolidating Statement of Comprehensive Income (Loss) For the Three Months Ended September 30, 2016 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated REVENUES Net servicing revenue and fees $ — $ 113,803 $ — $ (2,174 ) $ 111,629 Net gains on sales of loans — 122,014 — — 122,014 Net fair value gains (losses) on reverse loans and related HMBS obligations — 18,687 (60 ) — 18,627 Interest income on loans 248 143 10,941 — 11,332 Insurance revenue — 9,287 871 (158 ) 10,000 Other revenues, net (938 ) 25,017 17,882 (18,233 ) 23,728 Total revenues (690 ) 288,951 29,634 (20,565 ) 297,330 EXPENSES General and administrative 19,859 145,563 3,488 (17,118 ) 151,792 Salaries and benefits 13,505 119,694 — — 133,199 Interest expense 36,986 13,249 15,451 (384 ) 65,302 Depreciation and amortization 234 16,173 173 — 16,580 Goodwill and intangible assets impairment — 97,716 — — 97,716 Corporate allocations (32,203 ) 32,203 — — — Other expenses, net 47 1,150 9 — 1,206 Total expenses 38,428 425,748 19,121 (17,502 ) 465,795 OTHER GAINS (LOSSES) Other net fair value losses — (643 ) (2,659 ) — (3,302 ) Net gains on extinguishment of debt 13,734 — — — 13,734 Other — (150 ) — — (150 ) Total other gains (losses) 13,734 (793 ) (2,659 ) — 10,282 Income (loss) before income taxes (25,384 ) (137,590 ) 7,854 (3,063 ) (158,183 ) Income tax expense 7,505 45,550 2,185 (156 ) 55,084 Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs (32,889 ) (183,140 ) 5,669 (2,907 ) (213,267 ) Equity in earnings (losses) of consolidated subsidiaries and VIEs (180,378 ) 2,267 — 178,111 — Net income (loss) $ (213,267 ) $ (180,873 ) $ 5,669 $ 175,204 $ (213,267 ) Comprehensive income (loss) $ (213,281 ) $ (180,873 ) $ 5,669 $ 175,204 $ (213,281 ) Condensed Consolidating Statement of Comprehensive Income (Loss) For the Nine Months Ended September 30, 2017 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated REVENUES Net servicing revenue and fees $ — $ 275,539 $ — $ (6,002 ) $ 269,537 Net gains on sales of loans — 217,914 — — 217,914 Net fair value gains on reverse loans and related HMBS obligations — 24,342 42 — 24,384 Interest income on loans 680 1,161 29,430 — 31,271 Insurance revenue — 9,574 309 (57 ) 9,826 Other revenues 386 77,372 46,110 (46,084 ) 77,784 Total revenues 1,066 605,902 75,891 (52,143 ) 630,716 EXPENSES General and administrative 53,805 366,976 7,859 (41,855 ) 386,785 Salaries and benefits 32,591 267,981 — — 300,572 Interest expense 105,863 42,624 34,534 (56 ) 182,965 Depreciation and amortization 533 30,129 53 — 30,715 Corporate allocations (60,478 ) 60,478 — — — Other expenses, net 364 4,367 3,682 — 8,413 Total expenses 132,678 772,555 46,128 (41,911 ) 909,450 OTHER GAINS (LOSSES) Gain on sale of business — 67,734 — — 67,734 Other net fair value gains (losses) — (1,756 ) 2,517 — 761 Net losses on extinguishment of debt (959 ) (266 ) (443 ) — (1,668 ) Total other gains (losses) (959 ) 65,712 2,074 — 66,827 Income (loss) before income taxes (132,571 ) (100,941 ) 31,837 (10,232 ) (211,907 ) Income tax expense (benefit) (32,478 ) 29,982 5,051 (528 ) 2,027 Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs (100,093 ) (130,923 ) 26,786 (9,704 ) (213,934 ) Equity in earnings (losses) of consolidated subsidiaries and VIEs (113,841 ) 21,887 — 91,954 — Net income (loss) $ (213,934 ) $ (109,036 ) $ 26,786 $ 82,250 $ (213,934 ) Comprehensive income (loss) $ (213,858 ) $ (109,036 ) $ 26,786 $ 82,250 $ (213,858 ) Condensed Consolidating Statement of Comprehensive Income (Loss) For the Nine Months Ended September 30, 2016 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated REVENUES Net servicing revenue and fees $ — $ 44,507 $ — $ (6,704 ) $ 37,803 Net gains on sales of loans — 306,667 — — 306,667 Net fair value gains (losses) on reverse loans and related HMBS obligations — 61,771 (286 ) — 61,485 Interest income on loans 860 345 34,147 — 35,352 Insurance revenue — 29,215 2,971 (542 ) 31,644 Other revenues, net (1,746 ) 82,259 49,967 (51,857 ) 78,623 Total revenues (886 ) 524,764 86,799 (59,103 ) 551,574 EXPENSES General and administrative 42,448 417,128 9,884 (52,286 ) 417,174 Salaries and benefits 44,598 354,921 — — 399,519 Interest expense 108,802 36,958 50,186 (1,996 ) 193,950 Depreciation and amortization 598 44,419 526 — 45,543 Goodwill and intangible assets impairment — 313,128 — — 313,128 Corporate allocations (83,326 ) 83,326 — — — Other expenses, net 464 3,114 2,031 — 5,609 Total expenses 113,584 1,252,994 62,627 (54,282 ) 1,374,923 OTHER GAINS (LOSSES) Other net fair value losses — (273 ) (5,992 ) — (6,265 ) Net gains on extinguishment of debt 14,662 — — — 14,662 Other — (1,706 ) — — (1,706 ) Total other gains (losses) 14,662 (1,979 ) (5,992 ) — 6,691 Income (loss) before income taxes (99,808 ) (730,209 ) 18,180 (4,821 ) (816,658 ) Income tax expense (benefit) (5,237 ) 58,529 6,282 (300 ) 59,274 Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs (94,571 ) (788,738 ) 11,898 (4,521 ) (875,932 ) Equity in earnings (losses) of consolidated subsidiaries and VIEs (781,361 ) 2,945 — 778,416 — Net income (loss) $ (875,932 ) $ (785,793 ) $ 11,898 $ 773,895 $ (875,932 ) Comprehensive income (loss) $ (875,905 ) $ (785,793 ) $ 11,898 $ 773,895 $ (875,905 ) |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2017 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated Cash flows provided by (used in) operating activities $ (28,855 ) $ 251,036 $ 284,175 $ 25,061 $ 531,417 Investing activities Purchases and originations of reverse loans held for investment — (302,032 ) — — (302,032 ) Principal payments received on reverse loans held for investment — 985,989 — — 985,989 Principal payments received on mortgage loans held for investment 1,261 — 94,824 (25,061 ) 71,024 Payments received on charged-off loans held for investment — 13,217 — — 13,217 Payments received on receivables related to Non-Residual Trusts — — 10,275 — 10,275 Proceeds from sales of real estate owned, net 40 103,118 2,915 (59 ) 106,014 Purchases of premises and equipment (512 ) (3,110 ) — — (3,622 ) Decrease in restricted cash and cash equivalents — 621 1,220 — 1,841 Payments for acquisitions of businesses, net of cash acquired — (1,019 ) — — (1,019 ) Acquisitions of servicing rights, net — (171 ) — — (171 ) Proceeds from sale of servicing rights, net — 79,772 — — 79,772 Proceeds from sale of business — 131,074 — — 131,074 Cash outflow from deconsolidation of variable interest entities — — (28,425 ) — (28,425 ) Capital contributions to subsidiaries and VIEs (100,178 ) (5,419 ) — 105,597 — Returns of capital from subsidiaries and VIEs 220,690 63,305 — (283,995 ) — Change in due from affiliates (49,878 ) (70,932 ) (354 ) 121,164 — Other 11,711 (3,284 ) — 59 8,486 Cash flows provided by investing activities 83,134 991,129 80,455 (82,295 ) 1,072,423 Financing activities Payments on corporate debt (121,285 ) — — — (121,285 ) Proceeds from securitizations of reverse loans — 375,786 — — 375,786 Payments on HMBS related obligations — (1,420,881 ) — — (1,420,881 ) Issuances of servicing advance liabilities — 117,167 791,701 — 908,868 Payments on servicing advance liabilities — (165,937 ) (1,018,099 ) — (1,184,036 ) Net change in warehouse borrowings related to mortgage loans — (394,036 ) — — (394,036 ) Net change in warehouse borrowings related to reverse loans — 369,001 — — 369,001 Payments on servicing rights related liabilities — (1,415 ) — — (1,415 ) Payments on mortgage-backed debt — — (84,814 ) — (84,814 ) Other debt issuance costs paid — (4,709 ) (146 ) — (4,855 ) Capital contributions — 25,178 80,419 (105,597 ) — Capital distributions — (144,341 ) (139,654 ) 283,995 — Change in due to affiliates 67,023 50,455 3,686 (121,164 ) — Other (75 ) 3,829 2,277 — 6,031 Cash flows used in financing activities (54,337 ) (1,189,903 ) (364,630 ) 57,234 (1,551,636 ) Net increase (decrease) in cash and cash equivalents (58 ) 52,262 — — 52,204 Cash and cash equivalents at the beginning of the period 773 221,825 2,000 — 224,598 Cash and cash equivalents at the end of the period $ 715 $ 274,087 $ 2,000 $ — $ 276,802 Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2016 Unaudited (in thousands) Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiaries and VIEs Eliminations Consolidated Cash flows provided by (used in) operating activities $ (3,013 ) $ 170,573 $ 207,612 $ — $ 375,172 Investing activities Purchases and originations of reverse loans held for investment — (653,471 ) — — (653,471 ) Principal payments received on reverse loans held for investment — 770,636 — — 770,636 Principal payments received on mortgage loans held for investment 705 — 68,533 — 69,238 Payments received on charged-off loans held for investment — 17,827 — — 17,827 Payments received on receivables related to Non-Residual Trusts — — 6,230 — 6,230 Proceeds from sales of real estate owned, net 26 78,616 2,949 — 81,591 Purchases of premises and equipment (468 ) (28,660 ) — — (29,128 ) Decrease (increase) in restricted cash and cash equivalents 9,011 818 (51 ) — 9,778 Payments for acquisitions of businesses, net of cash acquired — (1,947 ) — — (1,947 ) Acquisitions of servicing rights, net — (7,701 ) — — (7,701 ) Proceeds from sale of servicing rights, net — 35,541 — — 35,541 Capital contributions to subsidiaries and VIEs — (11,878 ) — 11,878 — Returns of capital from subsidiaries and VIEs 10,524 18,629 — (29,153 ) — Change in due from affiliates 10,927 58,684 (3,963 ) (65,648 ) — Other 235 (3,900 ) — — (3,665 ) Cash flows provided by investing activities 30,960 273,194 73,698 (82,923 ) 294,929 Financing activities Payments on corporate debt — (480 ) — — (480 ) Extinguishments and settlement of debt (31,037 ) — — — (31,037 ) Proceeds from securitizations of reverse loans — 684,711 — — 684,711 Payments on HMBS related obligations — (958,720 ) — — (958,720 ) Issuances of servicing advance liabilities — 185,444 1,341,289 — 1,526,733 Payments on servicing advance liabilities — (265,083 ) (1,469,169 ) — (1,734,252 ) Net change in warehouse borrowings related to mortgage loans — (147,389 ) — — (147,389 ) Net change in warehouse borrowings related to reverse loans — 169,210 — — 169,210 Proceeds from financing of servicing rights — 29,742 — — 29,742 Payments on servicing rights related liabilities — (16,013 ) — — (16,013 ) Payments on mortgage-backed debt — — (80,335 ) — (80,335 ) Other debt issuance costs paid (528 ) (6,707 ) (2,025 ) — (9,260 ) Capital contributions — — 11,878 (11,878 ) — Capital distributions — (6,125 ) (23,028 ) 29,153 — Change in due to affiliates 1,382 (6,742 ) (60,288 ) 65,648 — Other (781 ) (19,744 ) 368 — (20,157 ) Cash flows used in financing activities (30,964 ) (357,896 ) (281,310 ) 82,923 (587,247 ) Net increase (decrease) in cash and cash equivalents (3,017 ) 85,871 — — 82,854 Cash and cash equivalents at the beginning of the period 4,016 196,812 2,000 — 202,828 Cash and cash equivalents at the end of the period $ 999 $ 282,683 $ 2,000 $ — $ 285,682 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | |
Related Party Transaction [Line Items] | |
Summary of Assets and Liabilities that Relate to WCO | The following table presents the carrying amounts of the Company’s assets and liabilities that relate to WCO, as well as the size of the unconsolidated VIE (in thousands): Carrying Value of Assets and Liabilities Servicer and Protective Advances, Net Receivables, Net Other (1) Payables and Accrued Liabilities Net Assets Size of VIE (2) September 30, 2017 $ 5,216 $ 15 $ 7,953 $ — $ 13,184 $ 24,866 December 31, 2016 6,980 1,392 19,403 (1,353 ) 26,422 194,556 __________ (1) Other assets at September 30, 2017 and December 31, 2016 are primarily comprised of the Company's investment in WCO. (2) The size of the VIE is deemed to be WCO's net assets. |
Business and Basis of Present34
Business and Basis of Presentation - Additional Information (Detail) $ in Millions | Dec. 30, 2016USD ($) | Sep. 30, 2017Segment | Feb. 01, 2017USD ($) |
Business Acquisition [Line Items] | |||
Number of reportable segments | Segment | 3 | ||
GTI Holdings Corp. | |||
Business Acquisition [Line Items] | |||
Percentage of Equity Sold | 100.00% | ||
Purchase Price | $ 125 | ||
Potential Earnout Payments | $ 25 | ||
Consideration received | $ 131.1 |
Going Concern - Additional Info
Going Concern - Additional Information (Details) - Subsequent Event [Member] | Nov. 06, 2017 |
Subsequent Event [Line Items] | |
Percentage of Term Loans party to RSA | 95.00% |
Percentage of Senior Notes party to RSA | 85.00% |
Company Restructuring - Additio
Company Restructuring - Additional Information (Details) - USD ($) | Feb. 15, 2018 | Jan. 31, 2018 | Nov. 06, 2017 | Nov. 01, 2017 | Oct. 20, 2017 | Jul. 31, 2017 | Oct. 31, 2017 | Aug. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||||||||||
Repayments of Long-term Debt | $ 121,285,000 | $ 480,000 | |||||||||||
Gain (Loss) on Extinguishment of Debt | $ 959,000 | $ (13,734,000) | 1,668,000 | $ (14,662,000) | |||||||||
Face amount | 0 | $ 0 | $ 0 | ||||||||||
Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Percentage of Senior Notes party to RSA | 85.00% | ||||||||||||
Percentage of Term Loans party to RSA | 95.00% | ||||||||||||
Subsequent Event [Member] | Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Percentage Of Lenders Holding Loans Or Commitments Under Credit Agreement Threshold | 50.00% | ||||||||||||
Subsequent Event [Member] | Convertible Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Periodic interest payment | $ 5,500,000 | ||||||||||||
Grace Period | 30 days | ||||||||||||
2013 Term Loans [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Percentage Of Lenders Holding Loans Or Commitments Under Credit Agreement Threshold | 50.00% | ||||||||||||
Repayments of Long-term Debt | $ 100,000,000 | ||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 1,000,000 | ||||||||||||
Maturity date | Dec. 31, 2020 | ||||||||||||
2013 Term Loans [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of Long-term Debt | $ 65,600,000 | ||||||||||||
Periodic payment required by Restructuring Support Agreement | 37,500,000 | ||||||||||||
Periodic payment representing proceeds from sale of mortgage servicing rights | $ 28,100,000 | ||||||||||||
Percentage of gross proceeds from disposition of bulk mortgage servicing rights required as prepayment on Term Loans | 80.00% | ||||||||||||
Required debt payment | $ 72,700,000 | $ 37,500,000 | |||||||||||
Amended And Restated Term Loans [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maturity date | Jun. 30, 2022 | ||||||||||||
Interest rate basis | LIBOR | ||||||||||||
Interest rate spread | 6.00% | ||||||||||||
Required quarterly payments beginning | Mar. 31, 2018 | ||||||||||||
Scenario, Forecast [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Number of Board members Post-Reorganization | 9 | ||||||||||||
Number of Board members Post-Reorganization, nominated by Preferred Stockholders | 6 | ||||||||||||
Number of Board members Post-Reorganization, nominated by Company | 3 | ||||||||||||
Scenario, Forecast [Member] | New Second Lien Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount of debt | $ 250,000,000 | ||||||||||||
Mandatorily Convertible Preferred Stock [Member] | Scenario, Forecast [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face amount | $ 100,000,000 | ||||||||||||
Percentage of shares of New Common Stock into which Preferred Stock is convertible | 73.00% | ||||||||||||
New Common Stock [Member] | Scenario, Forecast [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Percentage of equity issued to be awarded to Senior Noteholders if Convertible Noteholders do not accept Prepackaged Plan | 100.00% | ||||||||||||
Percentage of equity issued to be awarded to Convertible Noteholders | 50.00% | ||||||||||||
Percentage of equity issued to be awarded to Existing Equity Interest | 50.00% | ||||||||||||
Percentage of equity issued reserved for Management incentive Plan | 10.00% | ||||||||||||
Ten Year Warrants [Member] | Scenario, Forecast [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Percentage of equity issued to be awarded to Convertible Noteholders | 50.00% | ||||||||||||
Number of tranches | 2 | ||||||||||||
Term | 10 years | ||||||||||||
Percentage of equity issued to be awarded to Existing Equity Interest | 50.00% | ||||||||||||
Warehouse Agreement Borrowings [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate funding capacity | $ 2,600,000,000 | $ 2,600,000,000 | |||||||||||
Maturity date | Aug. 25, 2018 | ||||||||||||
Interest rate basis | LIBOR | ||||||||||||
Warehouse Agreement Borrowings [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate funding capacity | $ 1,700,000,000 | ||||||||||||
Warehouse Agreement Borrowings [Member] | Debtor-in-Possession Warehouse Facility [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate funding capacity | $ 1,900,000,000 | ||||||||||||
Residential Mortgage [Member] | Warehouse Agreement Borrowings [Member] | Debtor-in-Possession Warehouse Facility [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate funding capacity | 750,000,000 | ||||||||||||
Residential Mortgage [Member] | Warehouse Agreement Borrowings [Member] | Exit Warehouse Facility [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate funding capacity | 1,000,000,000 | ||||||||||||
Servicer And Protective Advances [Member] | Warehouse Agreement Borrowings [Member] | Debtor-in-Possession Warehouse Facility [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate funding capacity | 550,000,000 | ||||||||||||
Servicer And Protective Advances [Member] | Warehouse Agreement Borrowings [Member] | Debtor-in-Possession Warehouse Facility Addendum [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate funding capacity | $ 600,000,000 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Assets and Liabilities of Consolidated VIEs (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Restricted cash and cash equivalents | $ 359,420 | $ 204,463 |
Residential loans at amortized cost, net | 742,904 | 665,209 |
Residential loans at fair value | 11,377,492 | 12,416,542 |
Receivables, net | 151,398 | 267,962 |
Servicer and protective advances, net | 850,867 | 1,195,380 |
Other assets | 235,601 | 242,290 |
Total assets | 14,979,635 | 16,458,970 |
Liabilities | ||
Payables and accrued liabilities | 721,191 | 759,011 |
Servicing advance liabilities | 509,363 | 783,229 |
Mortgage-backed debt | 832,897 | 943,956 |
Total liabilities | 15,215,869 | 16,483,410 |
VIE Primary Beneficiary [Member] | ||
Assets | ||
Restricted cash and cash equivalents | 33,813 | 45,843 |
Residential loans at amortized cost, net | 431,459 | 462,877 |
Residential loans at fair value | 381,125 | 492,499 |
Receivables, net | 8,392 | 15,798 |
Servicer and protective advances, net | 478,834 | 734,707 |
Other assets | 31,982 | 19,831 |
Total assets | 1,365,605 | 1,771,555 |
Liabilities | ||
Payables and accrued liabilities | 2,497 | 2,985 |
Servicing advance liabilities | 425,468 | 650,565 |
Mortgage-backed debt | 832,897 | 943,956 |
Total liabilities | 1,260,862 | 1,597,506 |
VIE Primary Beneficiary [Member] | Residual Trusts [Member] | ||
Assets | ||
Restricted cash and cash equivalents | 12,100 | 13,321 |
Residential loans at amortized cost, net | 431,459 | 462,877 |
Residential loans at fair value | 0 | 0 |
Receivables, net | 0 | 0 |
Servicer and protective advances, net | 0 | 0 |
Other assets | 10,631 | 10,028 |
Total assets | 454,190 | 486,226 |
Liabilities | ||
Payables and accrued liabilities | 1,961 | 2,140 |
Servicing advance liabilities | 0 | 0 |
Mortgage-backed debt | 395,976 | 429,931 |
Total liabilities | 397,937 | 432,071 |
VIE Primary Beneficiary [Member] | Non-Residual Trusts [Member] | ||
Assets | ||
Restricted cash and cash equivalents | 10,682 | 10,257 |
Residential loans at amortized cost, net | 0 | 0 |
Residential loans at fair value | 381,125 | 450,377 |
Receivables, net | 7,498 | 15,033 |
Servicer and protective advances, net | 0 | 0 |
Other assets | 1,116 | 1,028 |
Total assets | 400,421 | 476,695 |
Liabilities | ||
Payables and accrued liabilities | 0 | 0 |
Servicing advance liabilities | 0 | 0 |
Mortgage-backed debt | 436,921 | 514,025 |
Total liabilities | 436,921 | 514,025 |
VIE Primary Beneficiary [Member] | Servicer and Protective Advance Financing Facilities [Member] | ||
Assets | ||
Restricted cash and cash equivalents | 11,031 | 22,265 |
Residential loans at amortized cost, net | 0 | 0 |
Residential loans at fair value | 0 | 0 |
Receivables, net | 0 | 0 |
Servicer and protective advances, net | 478,834 | 734,707 |
Other assets | 276 | 1,440 |
Total assets | 490,141 | 758,412 |
Liabilities | ||
Payables and accrued liabilities | 536 | 845 |
Servicing advance liabilities | 425,468 | 650,565 |
Mortgage-backed debt | 0 | 0 |
Total liabilities | 426,004 | 651,410 |
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 | 0 |
Residential loans at fair value | 0 | 42,122 |
Receivables, net | 894 | 765 |
Servicer and protective advances, net | 0 | 0 |
Other assets | 19,959 | 7,335 |
Total assets | 20,853 | 50,222 |
Liabilities | ||
Payables and accrued liabilities | 0 | 0 |
Servicing advance liabilities | 0 | 0 |
Mortgage-backed debt | 0 | 0 |
Total liabilities | $ 0 | $ 0 |
Transfers of Residential Loan38
Transfers of Residential Loans - Schedule of Continuing Involvement with Mortgage Loans Sold with Servicing Rights Retained (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Net Assets Recorded on the Consolidated Balance Sheets | $ 430,986 | $ 458,904 |
Unpaid Principal Balance of Sold Loans | 37,840,960 | 36,116,570 |
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 | 415,383 | 439,062 |
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 | 17,168 | 21,825 |
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 | $ (1,565) | $ (1,983) |
Transfers of Residential Loan39
Transfers of Residential Loans - Additional Information (Detail) - USD ($) $ in Billions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Transfers of Residential Loans [Line Items] | ||
Mortgage loans sold and serviced, 60 days or more past due, percent | 1.70% | 1.30% |
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 | $ 9.1 | |
Carrying value of assets pledged as collateral to securitization pools | $ 9.4 |
Transfers of Residential Loan40
Transfers of Residential Loans - Summary of Cash Flows Related to Sales of Mortgage Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Transfers and Servicing [Abstract] | ||||
Cash proceeds received from sales, net of fees | $ 3,985,471 | $ 5,643,244 | $ 13,789,344 | $ 15,933,300 |
Servicing fees collected | 30,668 | 35,125 | 91,034 | 106,304 |
Repurchases of previously sold loans (2) | 36,401 | 7,974 | 67,413 | 24,292 |
Repurchases of Ginnie Mae buyout loans | $ 32,900 | $ 1,500 | $ 58,200 | $ 11,200 |
Fair Value - Summary of Assets
Fair Value - Summary of Assets and Liabilities in Each Level of Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||||||
Residential loans at fair value | $ 11,377,492 | $ 12,416,542 | ||||
Receivables related to Non-Residual Trusts | 7,498 | 15,033 | ||||
Servicing rights carried at fair value | 808,830 | $ 870,758 | 949,593 | $ 1,195,014 | $ 1,255,351 | $ 1,682,016 |
Derivative instruments | 36,215 | 87,937 | ||||
Liabilities | ||||||
Derivative instruments | 2,783 | 11,804 | ||||
Servicing rights related liabilities | 1,565 | 1,902 | ||||
Mortgage-backed debt related to Non-Residual Trusts | 436,921 | 514,025 | ||||
HMBS related obligations | 9,598,234 | 10,509,449 | ||||
Reverse Loans [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 10,111,725 | 10,742,922 | ||||
Mortgage Loans Related to Non-Residual Trusts [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 381,125 | 450,377 | ||||
Mortgage Loans Held For Sale [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 838,500 | 1,176,280 | ||||
Charged-Off Loans [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 46,142 | 46,963 | ||||
Recurring Measurement Basis [Member] | Level 2 [Member] | ||||||
Assets | ||||||
Servicing rights carried at fair value | 42,033 | 13,170 | ||||
Derivative instruments | 2,749 | 34,543 | ||||
Assets | 861,163 | 1,223,993 | ||||
Liabilities | ||||||
Derivative instruments | 1,916 | 7,611 | ||||
Servicing rights related liabilities | 1,565 | 1,902 | ||||
Liabilities | 3,481 | 9,513 | ||||
Recurring Measurement Basis [Member] | Level 2 [Member] | Mortgage Loans Held For Sale [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 816,381 | 1,176,280 | ||||
Recurring Measurement Basis [Member] | Level 3 [Member] | ||||||
Assets | ||||||
Receivables related to Non-Residual Trusts | 7,498 | 15,033 | ||||
Servicing rights carried at fair value | 766,797 | 936,423 | ||||
Assets | 11,368,872 | 12,245,112 | ||||
Liabilities | ||||||
Mortgage-backed debt related to Non-Residual Trusts | 436,921 | 514,025 | ||||
HMBS related obligations | 9,598,234 | 10,509,449 | ||||
Liabilities | 10,036,022 | 11,027,667 | ||||
Recurring Measurement Basis [Member] | Level 3 [Member] | Reverse Loans [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 10,111,725 | 10,742,922 | ||||
Recurring Measurement Basis [Member] | Level 3 [Member] | Mortgage Loans Related to Non-Residual Trusts [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 381,125 | 450,377 | ||||
Recurring Measurement Basis [Member] | Level 3 [Member] | Mortgage Loans Held For Sale [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 22,119 | 0 | ||||
Recurring Measurement Basis [Member] | Level 3 [Member] | Charged-Off Loans [Member] | ||||||
Assets | ||||||
Residential loans at fair value | 46,142 | 46,963 | ||||
Interest Rate Lock Commitments [Member] | ||||||
Assets | ||||||
Derivative instruments | 33,466 | 53,394 | ||||
Liabilities | ||||||
Derivative instruments | 867 | 4,193 | ||||
Interest Rate Lock Commitments [Member] | Recurring Measurement Basis [Member] | Level 3 [Member] | ||||||
Assets | ||||||
Derivative instruments | 33,466 | 53,394 | ||||
Liabilities | ||||||
Derivative instruments | $ 867 | $ 4,193 |
Fair Value - Schedule of Assets
Fair Value - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis Utilizing Significant Unobservable Inputs Reconciliation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Assets | ||||
Fair Value, Beginning Balance | $ 11,812,675 | $ 12,792,987 | $ 12,245,112 | $ 13,089,216 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | (15,896) | 25,575 | (6,404) | (132,107) |
Purchases and Other | 36 | 145,717 | 45,324 | 301,778 |
Sales and Other | 1,465 | (12,792) | 5,672 | (41,027) |
Originations/ Issuances | 102,778 | 161,557 | 316,883 | 506,052 |
Settlements | (497,339) | (366,649) | (1,202,868) | (977,517) |
Transfers Out of Level 3 | (34,847) | (212,630) | (34,847) | (212,630) |
Fair Value, Ending Balance | 11,368,872 | 12,533,765 | 11,368,872 | 12,533,765 |
Liabilities | ||||
Fair Value, Beginning Balance | (10,459,184) | (11,386,203) | (11,027,667) | (11,347,792) |
Total Gains (Losses) Included in Comprehensive Income (Loss) | (52,739) | (93,931) | (157,293) | (356,097) |
Purchases and Other | 0 | 0 | 0 | 0 |
Sales and Other | 0 | 0 | 0 | 0 |
Originations/ Issuances | (97,776) | (274,604) | (375,786) | (712,597) |
Settlements | 573,677 | 405,863 | 1,524,724 | 1,067,611 |
Transfers Out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, Ending Balance | (10,036,022) | (11,348,875) | (10,036,022) | (11,348,875) |
Reverse Loans [Member] | ||||
Assets | ||||
Fair Value, Beginning Balance | 10,440,669 | 10,910,237 | 10,742,922 | 10,763,816 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 47,398 | 96,139 | 162,579 | 392,348 |
Purchases and Other | 0 | 157,138 | 44,769 | 296,093 |
Sales and Other | 0 | 0 | 0 | 0 |
Originations/ Issuances | 84,862 | 111,645 | 256,896 | 357,603 |
Settlements | (461,204) | (330,090) | (1,095,441) | (864,791) |
Transfers Out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, Ending Balance | 10,111,725 | 10,945,069 | 10,111,725 | 10,945,069 |
Mortgage Loans Related to Non-Residual Trusts [Member] | ||||
Assets | ||||
Fair Value, Beginning Balance | 406,006 | 488,179 | 450,377 | 526,016 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 13,160 | (1,025) | 22,319 | 10,556 |
Purchases and Other | 0 | 0 | 0 | 0 |
Sales and Other | (16,172) | 0 | (25,062) | 0 |
Originations/ Issuances | 0 | 0 | 0 | 0 |
Settlements | (21,869) | (23,534) | (66,509) | (72,952) |
Transfers Out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, Ending Balance | 381,125 | 463,620 | 381,125 | 463,620 |
Mortgage Loans Held For Sale [Member] | ||||
Assets | ||||
Fair Value, Beginning Balance | 8,738 | 0 | ||
Total Gains (Losses) Included in Comprehensive Income (Loss) | (2,201) | (2,195) | ||
Purchases and Other | 0 | 0 | ||
Sales and Other | 16,172 | 25,062 | ||
Originations/ Issuances | 0 | 0 | ||
Settlements | (590) | (748) | ||
Transfers Out of Level 3 | 0 | 0 | ||
Fair Value, Ending Balance | 22,119 | 22,119 | ||
Charged-Off Loans [Member] | ||||
Assets | ||||
Fair Value, Beginning Balance | 49,626 | 51,062 | 46,963 | 49,307 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 6,157 | 8,880 | 28,909 | 32,924 |
Purchases and Other | 0 | 0 | 0 | 0 |
Sales and Other | 0 | 0 | 0 | 0 |
Originations/ Issuances | 0 | 0 | 0 | 0 |
Settlements | (9,641) | (10,681) | (29,730) | (32,970) |
Transfers Out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, Ending Balance | 46,142 | 49,261 | 46,142 | 49,261 |
Receivables Related to Non-Residual Trusts [Member] | ||||
Assets | ||||
Fair Value, Beginning Balance | 11,841 | 12,681 | 15,033 | 16,542 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | (362) | 4,547 | 2,740 | 4,698 |
Purchases and Other | 0 | 0 | 0 | 0 |
Sales and Other | 0 | 0 | 0 | 0 |
Originations/ Issuances | 0 | 0 | 0 | 0 |
Settlements | (3,981) | (2,218) | (10,275) | (6,230) |
Transfers Out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, Ending Balance | 7,498 | 15,010 | 7,498 | 15,010 |
Servicing Rights Carried at Fair Value [Member] | ||||
Assets | ||||
Fair Value, Beginning Balance | 864,108 | 1,255,351 | 936,423 | 1,682,016 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | (81,881) | (86,036) | (200,993) | (600,109) |
Purchases and Other | 36 | (11,421) | 555 | 5,685 |
Sales and Other | 1,465 | (12,792) | 5,672 | (41,027) |
Originations/ Issuances | 17,916 | 49,912 | 59,987 | 148,449 |
Settlements | 0 | 0 | 0 | 0 |
Transfers Out of Level 3 | (34,847) | (212,630) | (34,847) | (212,630) |
Fair Value, Ending Balance | 766,797 | 982,384 | 766,797 | 982,384 |
Freestanding Derivative Instruments [Member] | Interest Rate Lock Commitments [Member] | ||||
Assets | ||||
Fair Value, Beginning Balance | 31,687 | 75,477 | 53,394 | 51,519 |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 1,833 | 3,070 | (19,763) | 27,476 |
Purchases and Other | 0 | 0 | 0 | 0 |
Sales and Other | 0 | 0 | 0 | 0 |
Originations/ Issuances | 0 | 0 | 0 | 0 |
Settlements | (54) | (126) | (165) | (574) |
Transfers Out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, Ending Balance | 33,466 | 78,421 | 33,466 | 78,421 |
Freestanding Derivative Instruments [Member] | Interest Rate Lock Commitments [Member] | ||||
Liabilities | ||||
Fair Value, Beginning Balance | (2,175) | (163) | (4,193) | (1,070) |
Total Gains (Losses) Included in Comprehensive Income (Loss) | 1,308 | (352) | 3,326 | 555 |
Purchases and Other | 0 | 0 | 0 | 0 |
Sales and Other | 0 | 0 | 0 | 0 |
Originations/ Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers Out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, Ending Balance | (867) | (515) | (867) | (515) |
Servicing Rights Related Liabilities [Member] | ||||
Liabilities | ||||
Fair Value, Beginning Balance | (120,825) | (117,000) | ||
Total Gains (Losses) Included in Comprehensive Income (Loss) | (9,885) | (4,688) | ||
Purchases and Other | 0 | 0 | ||
Sales and Other | 0 | 0 | ||
Originations/ Issuances | 0 | (27,886) | ||
Settlements | 11,443 | 30,307 | ||
Transfers Out of Level 3 | 0 | 0 | ||
Fair Value, Ending Balance | (119,267) | (119,267) | ||
Mortgage-Backed Debt Related to Non-Residual Trusts [Member] | ||||
Liabilities | ||||
Fair Value, Beginning Balance | (470,600) | (548,067) | (514,025) | (582,340) |
Total Gains (Losses) Included in Comprehensive Income (Loss) | (8,459) | (6,182) | (22,424) | (21,101) |
Purchases and Other | 0 | 0 | 0 | 0 |
Sales and Other | 0 | 0 | 0 | 0 |
Originations/ Issuances | 0 | 0 | 0 | 0 |
Settlements | 42,138 | 24,876 | 99,528 | 74,068 |
Transfers Out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, Ending Balance | (436,921) | (529,373) | (436,921) | (529,373) |
HMBS Related Obligations [Member] | ||||
Liabilities | ||||
Fair Value, Beginning Balance | (9,986,409) | (10,717,148) | (10,509,449) | (10,647,382) |
Total Gains (Losses) Included in Comprehensive Income (Loss) | (45,588) | (77,512) | (138,195) | (330,863) |
Purchases and Other | 0 | 0 | 0 | 0 |
Sales and Other | 0 | 0 | 0 | 0 |
Originations/ Issuances | (97,776) | (274,604) | (375,786) | (684,711) |
Settlements | 531,539 | 369,544 | 1,425,196 | 963,236 |
Transfers Out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, Ending Balance | $ (9,598,234) | $ (10,699,720) | $ (9,598,234) | $ (10,699,720) |
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 Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Loans transferred from mortgage loans related to Non-Residual Trusts to mortgage loans held for sale | $ 16,200 | $ 25,100 | ||
Fair value of mortgage servicing rights sold | 48,434 | $ 12,792 | 60,854 | $ 41,027 |
Loss on sale of mortgage servicing rights | (100) | (700) | ||
Servicing Rights Related Liabilities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Losses from instrument-specific credit risk | 4,200 | 9,700 | ||
Charged-Off Loans [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Gains from instrument-specific credit risk | $ 500 | $ 3,500 | $ 12,400 | $ 17,800 |
Fair Value - Schedule of Signif
Fair Value - Schedule of Significant Unobservable Inputs Used in Fair Value Measurement of Assets and Liabilities on Recurring Basis (Detail) - Recurring Measurement Basis [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Reverse Loans [Member] | Minimum [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Weighted-average remaining life in years | 6 months | 7 months 6 days |
Conditional repayment rate | 12.51% | 13.23% |
Discount rate | 2.95% | 1.93% |
Reverse Loans [Member] | Maximum [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Weighted-average remaining life in years | 10 years 6 months | 10 years 2 months 12 days |
Conditional repayment rate | 71.58% | 55.32% |
Discount rate | 4.20% | 3.69% |
Reverse Loans [Member] | Weighted Average [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Weighted-average remaining life in years | 4 years 1 month 6 days | 3 years 9 months 18 days |
Conditional repayment rate | 28.35% | 28.48% |
Discount rate | 3.34% | 2.93% |
Mortgage Loans Related to Non-Residual Trusts [Member] | Minimum [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 8.32% | 8.00% |
Conditional prepayment rate | 2.22% | 1.98% |
Conditional default rate | 0.90% | 1.02% |
Loss severity | 88.49% | 79.98% |
Mortgage Loans Related to Non-Residual Trusts [Member] | Maximum [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 8.32% | 8.00% |
Conditional prepayment rate | 2.72% | 2.67% |
Conditional default rate | 4.55% | 4.25% |
Loss severity | 100.00% | 100.00% |
Mortgage Loans Related to Non-Residual Trusts [Member] | Weighted Average [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 8.32% | 8.00% |
Conditional prepayment rate | 2.52% | 2.27% |
Conditional default rate | 2.31% | 2.61% |
Loss severity | 99.24% | 96.61% |
Mortgage Loans Held For Sale [Member] | Minimum [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 9.80% | |
Conditional prepayment rate | 4.81% | |
Conditional default rate | 2.46% | |
Loss severity | 86.65% | |
Mortgage Loans Held For Sale [Member] | Maximum [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 9.80% | |
Conditional prepayment rate | 5.85% | |
Conditional default rate | 3.33% | |
Loss severity | 99.40% | |
Mortgage Loans Held For Sale [Member] | Weighted Average [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 9.80% | |
Conditional prepayment rate | 5.16% | |
Conditional default rate | 2.76% | |
Loss severity | 93.96% | |
Charged-Off Loans [Member] | Minimum [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 28.00% | 28.00% |
Collection rate | 2.82% | 2.69% |
Charged-Off Loans [Member] | Maximum [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 28.00% | 28.00% |
Collection rate | 4.63% | 3.55% |
Charged-Off Loans [Member] | Weighted Average [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 28.00% | 28.00% |
Collection rate | 2.91% | 2.74% |
Receivables Related to Non-Residual Trusts [Member] | Minimum [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 0.50% | 0.50% |
Conditional prepayment rate | 2.55% | 2.22% |
Conditional default rate | 1.77% | 2.32% |
Loss severity | 86.80% | 77.88% |
Receivables Related to Non-Residual Trusts [Member] | Maximum [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 0.50% | 0.50% |
Conditional prepayment rate | 3.31% | 3.17% |
Conditional default rate | 5.12% | 4.66% |
Loss severity | 100.00% | 100.00% |
Receivables Related to Non-Residual Trusts [Member] | Weighted Average [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 0.50% | 0.50% |
Conditional prepayment rate | 2.90% | 2.65% |
Conditional default rate | 3.05% | 3.34% |
Loss severity | 97.93% | 94.51% |
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 4 months 24 days | 2 years 7 months 6 days |
Discount rate | 9.91% | 10.68% |
Conditional prepayment rate | 6.55% | 5.76% |
Conditional default rate | 0.04% | 0.04% |
Cost to service | $ 62 | $ 62 |
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 | 7 years 4 months 24 days |
Discount rate | 14.81% | 14.61% |
Conditional prepayment rate | 24.35% | 21.67% |
Conditional default rate | 3.68% | 2.97% |
Cost to service | $ 1,260 | $ 1,260 |
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 8 months 12 days | 6 years |
Discount rate | 11.68% | 11.56% |
Conditional prepayment rate | 10.70% | 9.09% |
Conditional default rate | 0.90% | 0.88% |
Cost to service | $ 133 | $ 128 |
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% | 16.00% |
Fair value of initial servicing rights multiple | 0.01 | 0.01 |
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% |
Fair value of initial servicing rights multiple | 5.27 | 5.98 |
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 | 60.95% | 75.86% |
Fair value of initial servicing rights multiple | 2.69 | 3.06 |
Freestanding Derivative Instruments [Member] | Interest Rate Lock Commitments [Member] | Minimum [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Loan funding probability | 37.34% | 34.40% |
Fair value of initial servicing rights multiple | 0.12 | 0.04 |
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% |
Fair value of initial servicing rights multiple | 4.92 | 6.04 |
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 | 81.15% | 83.36% |
Fair value of initial servicing rights multiple | 3.47 | 3.69 |
Mortgage-Backed Debt Related to Non-Residual Trusts [Member] | Minimum [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 6.00% | 6.00% |
Conditional prepayment rate | 2.55% | 2.22% |
Conditional default rate | 1.77% | 2.32% |
Loss severity | 86.80% | 77.88% |
Mortgage-Backed Debt Related to Non-Residual Trusts [Member] | Maximum [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 6.00% | 6.00% |
Conditional prepayment rate | 3.31% | 3.17% |
Conditional default rate | 5.12% | 4.66% |
Loss severity | 100.00% | 100.00% |
Mortgage-Backed Debt Related to Non-Residual Trusts [Member] | Weighted Average [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Discount rate | 6.00% | 6.00% |
Conditional prepayment rate | 2.90% | 2.65% |
Conditional default rate | 3.05% | 3.34% |
Loss severity | 97.93% | 94.51% |
HMBS Related Obligations [Member] | Minimum [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Weighted-average remaining life in years | 4 months 24 days | 4 months 24 days |
Conditional repayment rate | 12.80% | 11.49% |
Discount rate | 2.61% | 1.50% |
HMBS Related Obligations [Member] | Maximum [Member] | ||
Significant Unobservable Inputs Used In Fair Value Measurement [Line Items] | ||
Weighted-average remaining life in years | 8 years | 7 years 2 months 12 days |
Conditional repayment rate | 86.77% | 57.76% |
Discount rate | 4.01% | 3.17% |
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 6 days | 3 years 2 months |
Conditional repayment rate | 32.69% | 27.74% |
Discount rate | 3.35% | 2.56% |
Fair Value - Schedule of Estima
Fair Value - Schedule of Estimated Fair Value and Unpaid Principal Balance, Fair Value Option (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Loans At Fair Value Under The Fair Value Option [Abstract] | ||
Residential loans at fair value | $ 11,377,492 | $ 12,416,542 |
Total loans at fair value under the fair value option | 11,377,492 | 12,416,542 |
Total loans at fair value under the fair value option, unpaid principal balance | 13,368,844 | 14,319,767 |
Debt Instruments At Fair Value Under The Fair Value Option [Abstract] | ||
Mortgage-backed debt at fair value | 436,921 | 514,025 |
Mortgage-backed debt at fair value, unpaid principal balance | 439,523 | 518,317 |
HMBS related obligations at fair value | 9,598,234 | 10,509,449 |
HMBS related obligations at fair value, unpaid principal balance | 9,139,847 | 9,916,383 |
Total debt instruments at fair value under the fair value option | 10,035,155 | 11,023,474 |
Total debt instruments at fair value under the fair value option, unpaid principal balance | 9,579,370 | 10,434,700 |
Reverse Loans [Member] | ||
Loans At Fair Value Under The Fair Value Option [Abstract] | ||
Residential loans at fair value | 10,111,725 | 10,742,922 |
Residential loans at fair value, unpaid principal balance | 9,754,214 | 10,218,007 |
Mortgage Loans Held For Sale [Member] | ||
Loans At Fair Value Under The Fair Value Option [Abstract] | ||
Residential loans at fair value | 838,500 | 1,176,280 |
Residential loans at fair value, unpaid principal balance | 812,134 | 1,148,897 |
Mortgage Loans Related to Non-Residual Trusts [Member] | ||
Loans At Fair Value Under The Fair Value Option [Abstract] | ||
Residential loans at fair value | 381,125 | 450,377 |
Residential loans at fair value, unpaid principal balance | 431,423 | 513,545 |
Charged-Off Loans [Member] | ||
Loans At Fair Value Under The Fair Value Option [Abstract] | ||
Residential loans at fair value | 46,142 | 46,963 |
Residential loans at fair value, unpaid principal balance | $ 2,371,073 | $ 2,439,318 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfer from Level 3 to Level 2 | $ 34,847 | $ 212,630 | $ 34,847 | $ 212,630 | |
Real estate owned, net | 114,200 | 114,200 | $ 104,600 | ||
Loans in process of foreclosure | 368,800 | 368,800 | 418,400 | ||
Servicing Rights Carried at Fair Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfer from Level 3 to Level 2 | 34,847 | 212,630 | 34,847 | 212,630 | |
Mortgage Loans Related to Non-Residual Trusts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfer from Level 3 to Level 2 | 0 | 0 | $ 0 | 0 | |
Number of days delinquent | 90 days | ||||
Loans 90 days or more past due, fair value | 0 | $ 0 | 1,600 | ||
Loans 90 days or more past due, unpaid principal balance | 27,500 | 27,500 | 29,500 | ||
Mortgage Loans Held For Sale [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfer from Level 3 to Level 2 | 0 | $ 0 | |||
Number of days delinquent | 90 days | ||||
Loans 90 days or more past due, unpaid principal balance | 16,400 | $ 16,400 | |||
Charged-Off Loans [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfer from Level 3 to Level 2 | 0 | $ 0 | $ 0 | $ 0 | |
Number of days delinquent | 90 days | ||||
Reverse Mortgage [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Real estate owned, net | 99,900 | $ 99,900 | 90,700 | ||
Servicing [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Real estate owned, net | 13,200 | 13,200 | 12,900 | ||
Other Non-Reportable Segment [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Real estate owned, net | $ 1,100 | $ 1,100 | $ 1,000 |
Fair Value - Schedule of Sign47
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] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity | 0.00% | 0.00% |
Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity | 59.80% | 61.61% |
Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Loss severity | 7.02% | 7.30% |
Fair Value - Schedule of Carryi
Fair Value - Schedule of Carrying Amounts and Estimated Fair Values of Financial Assets and Liabilities Not Recorded at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financial assets | ||
Residential loans at amortized cost, net | $ 742,904 | $ 665,209 |
Servicer and protective advances, net | 850,867 | 1,195,380 |
Financial liabilities | ||
Mortgage-backed debt carried at amortized cost | 832,897 | 943,956 |
Level 3 [Member] | Carrying Amount [Member] | ||
Financial assets | ||
Residential loans at amortized cost, net | 449,160 | 480,920 |
Servicer and protective advances, net | 850,867 | 1,195,380 |
Financial liabilities | ||
Servicing advance liabilities | 508,991 | 781,734 |
Mortgage-backed debt carried at amortized cost | 395,976 | 429,931 |
Level 3 [Member] | Estimated Fair Value [Member] | ||
Financial assets | ||
Residential loans at amortized cost, net | 451,956 | 490,562 |
Servicer and protective advances, net | 787,260 | 1,147,155 |
Financial liabilities | ||
Servicing advance liabilities | 508,936 | 782,570 |
Mortgage-backed debt carried at amortized cost | 401,944 | 435,679 |
Level 2 [Member] | Carrying Amount [Member] | ||
Financial liabilities | ||
Corporate debt | 2,020,897 | 2,126,176 |
Level 2 [Member] | Estimated Fair Value [Member] | ||
Financial liabilities | ||
Corporate debt | $ 1,539,010 | $ 1,967,518 |
Fair Value - Schedule of Net Ga
Fair Value - Schedule of Net Gains on Sales of Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Components of Net Gains on Sales of Loans [Line Items] | |||||||
Realized gains on sales of loans (1) | $ 19,186 | $ 90,736 | $ 127,954 | $ 250,815 | |||
Change in unrealized gains on loans held for sale | (828) | (4,261) | 12,784 | 8,578 | |||
Capitalized servicing rights | 58,814 | 49,912 | 110,204 | 148,449 | |||
Provision for repurchases | (1,846) | (3,221) | (5,644) | (11,658) | |||
Interest income | 8,156 | 10,545 | 28,581 | 30,478 | |||
Other | (31) | (33) | (325) | (33) | |||
Net gains on sales of loans | 73,013 | 122,014 | 217,914 | 306,667 | |||
Interest Rate Lock Commitments [Member] | |||||||
Components of Net Gains on Sales of Loans [Line Items] | |||||||
Gains (losses) on derivative instruments | 3,140 | 2,719 | (16,438) | 28,031 | |||
Forward Sales Commitments [Member] | |||||||
Components of Net Gains on Sales of Loans [Line Items] | |||||||
Gains (losses) on derivative instruments | (9,544) | (6,082) | (32,950) | (116,419) | |||
MBS Purchase Commitments [Member] | |||||||
Components of Net Gains on Sales of Loans [Line Items] | |||||||
Gains (losses) on derivative instruments | (4,034) | $ (18,301) | $ (6,252) | $ (31,574) | |||
Reclass Capitalization Of Servicing Rights Associated With Co-Issue Mortgage Servicing Rights [Member] | |||||||
Components of Net Gains on Sales of Loans [Line Items] | |||||||
Capitalized servicing rights | $ 16,100 | $ 17,800 | $ 16,000 | $ 33,800 |
Fair Value - Schedule of Net Fa
Fair Value - Schedule of Net Fair Value Gains on Reverse Loans and Related HMBS Obligations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | ||||
Interest income on reverse loans | $ 113,519 | $ 112,838 | $ 340,465 | $ 337,063 |
Change in fair value of reverse loans | (66,121) | (16,699) | (177,886) | 55,285 |
Net fair value gains on reverse loans | 47,398 | 96,139 | 162,579 | 392,348 |
Interest expense on HMBS related obligations | (99,153) | (102,879) | (302,879) | (309,501) |
Change in fair value of HMBS related obligations | 53,565 | 25,367 | 164,684 | (21,362) |
Net fair value losses on HMBS related obligations | (45,588) | (77,512) | (138,195) | (330,863) |
Net fair value gains on reverse loans and related HMBS obligations | $ 1,810 | $ 18,627 | $ 24,384 | $ 61,485 |
Freestanding Derivative Finan51
Freestanding Derivative Financial Instruments - Schedule of Notional or Contractual Amounts and Fair Values of Derivative Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Derivative Assets | $ 36,215 | $ 87,937 |
Derivative Liabilities | 2,783 | 11,804 |
Cash margin paid | 1,043 | 0 |
Cash margin received | 777 | 30,941 |
Interest Rate Lock Commitments [Member] | ||
Derivative [Line Items] | ||
Notional/ Contractual Amount | 1,850,244 | 3,046,549 |
Derivative Assets | 33,466 | 53,394 |
Derivative Liabilities | 867 | 4,193 |
Forward Sales Commitments [Member] | ||
Derivative [Line Items] | ||
Notional/ Contractual Amount | 2,135,500 | 3,978,000 |
Derivative Assets | 2,740 | 29,471 |
Derivative Liabilities | 1,635 | 7,609 |
MBS Purchase Commitments [Member] | ||
Derivative [Line Items] | ||
Notional/ Contractual Amount | 272,000 | 623,500 |
Derivative Assets | 9 | 5,072 |
Derivative Liabilities | $ 281 | $ 2 |
Freestanding Derivative Finan52
Freestanding Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Total net settlement amount - asset positions | $ 1,500 | $ 5,500 |
Total net settlement amount - liability positions | 600 | 9,000 |
Cash margin received | 777 | 30,941 |
Excess cash deposited | 1,043 | $ 0 |
Counterparty A [Member] | ||
Derivative [Line Items] | ||
Net derivative asset position with counterparty | 3,600 | |
Net derivative asset position | 400 | |
Over-collateralized positions | 4,000 | |
Cash margin received | 800 | |
Counterparty B [Member] | ||
Derivative [Line Items] | ||
Over-collateralized positions | 7,900 | |
Net derivative liability position with counterparty | 200 | |
Excess cash deposited | $ 3,200 |
Servicing of Residential Loan53
Servicing of Residential Loans - Schedule of Total Servicing Portfolio (Detail) $ in Thousands | Sep. 30, 2017USD ($)Accounts | Dec. 31, 2016USD ($)Accounts |
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 1,792,486 | 2,064,543 |
Unpaid Principal Balance | $ | $ 219,391,976 | $ 246,445,143 |
Third-party Credit Owners [Member] | ||
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 1,703,237 | 1,967,155 |
Unpaid Principal Balance | $ | $ 207,499,938 | $ 233,755,125 |
Third-party Credit Owners [Member] | Capitalized Servicing Rights [Member] | ||
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 925,034 | 1,032,676 |
Unpaid Principal Balance | $ | $ 102,525,963 | $ 112,936,287 |
Third-party Credit Owners [Member] | Capitalized Subservicing [Member] | ||
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 54,923 | 130,018 |
Unpaid Principal Balance | $ | $ 3,884,747 | $ 7,426,803 |
Third-party Credit Owners [Member] | Subservicing [Member] | ||
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 723,280 | 804,461 |
Unpaid Principal Balance | $ | $ 101,089,228 | $ 113,392,035 |
On-balance Sheet [Member] | Reverse Loans and Real Estate Owned [Member] | ||
Servicing Portfolio [Line Items] | ||
Number of Accounts | Accounts | 89,249 | 97,388 |
Unpaid Principal Balance | $ | $ 11,892,038 | $ 12,690,018 |
Servicing of Residential Loan54
Servicing of Residential Loans - Schedule of Net Servicing Revenue and Fees (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fees Earned in Exchange for Servicing Financial Assets [Line Items] | ||||
Servicing fees | $ 119,253 | $ 172,780 | $ 381,800 | $ 527,616 |
Incentive and performance fees | 12,807 | 17,158 | 44,756 | 54,941 |
Ancillary and other fees | 20,783 | 23,434 | 66,038 | 73,101 |
Servicing revenue and fees | 152,843 | 213,372 | 492,594 | 655,658 |
Amortization of servicing rights | (5,018) | (5,822) | (19,969) | (13,058) |
Change in fair value of servicing rights | (82,796) | (86,036) | (203,026) | (600,109) |
Change in fair value of servicing rights related liabilities | 0 | (9,885) | (62) | (4,688) |
Net servicing revenue and fees | 65,029 | 111,629 | 269,537 | 37,803 |
Late fees | 14,200 | 15,200 | 44,700 | 48,900 |
Amortization of a servicing liability | 1,100 | 2,400 | 3,200 | 6,700 |
Impairment of servicing rights and a servicing liability | 3,700 | 14,800 | ||
Interest expense | $ 61,671 | 65,302 | $ 182,965 | 193,950 |
Corporate Joint Venture [Member] | Sub-servicing Performed For WCO [Member] | ||||
Fees Earned in Exchange for Servicing Financial Assets [Line Items] | ||||
Sub-servicing fees related to servicing assets held by WCO | 1,300 | 3,500 | ||
Incentive, performance, ancillary and other fees related to servicing assets held by WCO | 200 | 500 | ||
Corporate Joint Venture [Member] | Sale Of Servicing Rights To WCO [Member] | ||||
Fees Earned in Exchange for Servicing Financial Assets [Line Items] | ||||
Servicing fees | 3,500 | 6,500 | ||
Servicing Rights Related Liabilities [Member] | ||||
Fees Earned in Exchange for Servicing Financial Assets [Line Items] | ||||
Interest expense | $ 5,000 | $ 12,000 |
Servicing of Residential Loan55
Servicing of Residential Loans - Schedule of Servicing Rights Carried at Amortized Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Amortization of servicing rights | $ (5,018) | $ (5,822) | $ (19,969) | $ (13,058) |
Mortgage Loan [Member] | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Balance at beginning of the period | 74,621 | 99,302 | ||
Sales | 0 | (130) | ||
Amortization of servicing rights | (2,000) | (4,900) | (7,184) | (15,545) |
Impairment of servicing rights | (1,600) | (10,644) | (19) | |
Balance at end of the period | 56,793 | 83,608 | 56,793 | 83,608 |
Reverse Loan [Member] | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Balance at beginning of the period | 5,505 | 7,258 | ||
Sales | 0 | 0 | ||
Amortization of servicing rights | (400) | (400) | (1,147) | (1,337) |
Impairment of servicing rights | 0 | 0 | ||
Balance at end of the period | $ 4,358 | $ 5,921 | $ 4,358 | $ 5,921 |
Servicing of Residential Loan56
Servicing of Residential Loans - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Mortgage Loan [Member] | ||
Servicing Asset at Amortized Cost [Line Items] | ||
Fair value of servicing rights | $ 57.5 | $ 79.9 |
Reverse Loan [Member] | ||
Servicing Asset at Amortized Cost [Line Items] | ||
Fair value of servicing rights | $ 5.3 | $ 7.3 |
Servicing of Residential Loan57
Servicing of Residential Loans - Schedule of Fair Value Assumptions, Servicing Rights at Amortized Cost (Detail) - Servicing Rights Carried at Amortized Cost [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
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 4 months 24 days | 5 years 1 month 6 days |
Weighted-average discount rate | 13.00% | 13.00% |
Conditional prepayment rate | 5.80% | 6.51% |
Conditional default rate | 2.46% | 2.33% |
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 31 days | 2 years 7 months 6 days |
Weighted-average discount rate | 15.00% | 15.00% |
Conditional repayment rate | 35.00% | 32.28% |
Servicing of Residential Loan58
Servicing of Residential Loans - Schedule of Servicing Rights Carried at Fair Value (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||||
Balance at beginning of period | $ 870,758 | $ 949,593 | $ 1,255,351 | $ 949,593 | $ 1,682,016 | |
Sales | (48,434) | (12,792) | (60,854) | (41,027) | ||
Other | 0 | (11,918) | 0 | (16,651) | ||
Change in fair value due to: | ||||||
Changes in valuation inputs or other assumptions | (51,539) | (25,922) | (103,820) | (412,095) | ||
Other changes in fair value | (31,257) | (60,114) | (99,206) | (188,014) | ||
Total change in fair value | (82,796) | (86,036) | (203,026) | (600,109) | ||
Balance at end of the period | 808,830 | $ 870,758 | 1,195,014 | 808,830 | 1,195,014 | |
Purchases [Member] | ||||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||||
Additions | 36 | 497 | 555 | 22,336 | ||
Servicing Rights Capitalized Upon Sales of Loans [Member] | ||||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||||
Additions | 69,266 | 49,912 | 122,562 | 148,449 | ||
Corporate Joint Venture [Member] | Sale Of Servicing Rights To WCO [Member] | ||||||
Change in fair value due to: | ||||||
Servicing Rights Sold, Accounted For As Financing [Member] | $ 34,000 | $ 34,000 | ||||
Gross Up Co-Issue Of Servicing Rights [Member] | ||||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||||
Sales | $ (16,100) | $ (17,800) | $ (16,000) | $ (49,900) |
Servicing of Residential Loan59
Servicing of Residential Loans - Schedule of Sensitivity Analysis of Fair Value, Servicing Rights Carried at Fair Value (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
10% adverse change in weighted-average discount rate | $ (32,327) | $ (41,926) |
10% adverse change in weighted-average conditional prepayment rate | (37,357) | (30,513) |
10% adverse change in weighted-average conditional default rate | (28,308) | (28,370) |
20% adverse change in weighted-average discount rate | (62,154) | (80,512) |
20% adverse change in weighted-average conditional prepayment rate | (71,866) | (59,083) |
20% adverse change in weighted-average conditional default rate | $ (54,664) | $ (57,854) |
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% | |
Fair Value, Measurements, Recurring [Member] | Servicing Rights Carried at Fair Value [Member] | 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] | ||
Weighted-average discount rate | 9.91% | 10.68% |
Weighted-average conditional prepayment rate | 6.55% | 5.76% |
Weighted-average conditional default rate | 0.04% | 0.04% |
Fair Value, Measurements, Recurring [Member] | Servicing Rights Carried at Fair Value [Member] | 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] | ||
Weighted-average discount rate | 14.81% | 14.61% |
Weighted-average conditional prepayment rate | 24.35% | 21.67% |
Weighted-average conditional default rate | 3.68% | 2.97% |
Fair Value, Measurements, Recurring [Member] | Servicing Rights Carried at Fair Value [Member] | Weighted Average [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] | ||
Weighted-average discount rate | 11.68% | 11.56% |
Weighted-average conditional prepayment rate | 10.70% | 9.09% |
Weighted-average conditional default rate | 0.90% | 0.88% |
Servicing of Residential Loan60
Servicing of Residential Loans - Schedule of Fair Value Assumptions, Fair Value of Servicing Rights on Date of Sale (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Transfers and Servicing [Abstract] | ||||
Weighted-average life in years | 6 years 1 month 6 days | 5 years 9 months 18 days | 6 years 4 months 24 days | 6 years |
Weighted-average discount rate | 14.71% | 12.14% | 14.20% | 12.51% |
Weighted-average conditional prepayment rate | 10.36% | 11.32% | 9.14% | 10.11% |
Weighted-average conditional default rate | 0.42% | 0.18% | 0.44% | 0.31% |
Payables and Accrued Liabilit61
Payables and Accrued Liabilities - Schedule of Payables and Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Loans subject to repurchase from Ginnie Mae | $ 293,744 | $ 184,289 |
Curtailment liability | 122,739 | 121,305 |
Accounts payable and accrued liabilities | 119,935 | 155,556 |
Employee-related liabilities | 44,205 | 91,063 |
Originations liability | 31,237 | 62,969 |
Accrued interest payable | 22,973 | 9,414 |
Servicing rights and related advance purchases payable | 15,075 | 18,187 |
Uncertain tax positions | 7,077 | 9,414 |
Derivative instruments | 2,783 | 11,804 |
Payables to insurance carriers | 0 | 5,452 |
Margin payable on derivative instruments | 777 | 30,941 |
Other | 60,646 | 58,617 |
Total payables and accrued liabilities | $ 721,191 | 759,011 |
Uncertain tax position related to insurance business sale | $ 2,500 |
Payables and Accrued Liabilit62
Payables and Accrued Liabilities - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2017Site | |
Accounts Payable And Accrued Liabilities [Line Items] | |
Number Of Future Core Operation Sites | 3 |
Number Of Future Core Reverse Mortgage Operation Sites | 1 |
Fort Washington, PA [Member] | |
Accounts Payable And Accrued Liabilities [Line Items] | |
Future Core Operation Site | Fort Washington, PA |
Jacksonville, FL [Member] | |
Accounts Payable And Accrued Liabilities [Line Items] | |
Future Core Operation Site | Jacksonville, FL |
Tempe, AZ [Member] | |
Accounts Payable And Accrued Liabilities [Line Items] | |
Future Core Operation Site | Tempe, AZ |
Houston, TX [Member] | |
Accounts Payable And Accrued Liabilities [Line Items] | |
Future Core Reverse Mortgage Operation Site | Houston, TX |
Irving, TX [Member] | |
Accounts Payable And Accrued Liabilities [Line Items] | |
Future Closed Operation Site | Irving, TX |
Payables and Accrued Liabilit63
Payables and Accrued Liabilities - Schedule of Accrued Exit Liability By Action (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | $ 12,866 |
Charges | 8,637 |
Cash payments or other settlements | (15,910) |
Balance at September 30, 2017 | 5,593 |
Total cumulative charges incurred | 45,956 |
Total expected costs to be incurred (2) | 49,489 |
Severance and related costs [Member] | |
Exit Liability [Roll Forward] | |
Charges | 7,702 |
Cash payments or other settlements | (14,651) |
Total cumulative charges incurred | 34,708 |
Office closures and other costs [Member] | |
Exit Liability [Roll Forward] | |
Charges | 935 |
Cash payments or other settlements | (1,259) |
Total cumulative charges incurred | 11,248 |
2015 Actions [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 988 |
Charges | (10) |
Cash payments or other settlements | (708) |
Balance at September 30, 2017 | 270 |
Total cumulative charges incurred | 13,763 |
Total expected costs to be incurred (2) | 13,763 |
2015 Actions [Member] | Severance and related costs [Member] | |
Exit Liability [Roll Forward] | |
Charges | (57) |
Cash payments or other settlements | (163) |
Total cumulative charges incurred | 7,181 |
2015 Actions [Member] | Office closures and other costs [Member] | |
Exit Liability [Roll Forward] | |
Charges | 47 |
Cash payments or other settlements | (545) |
Total cumulative charges incurred | 6,582 |
2016 Actions [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 11,878 |
Charges | 63 |
Cash payments or other settlements | (11,474) |
Balance at September 30, 2017 | 467 |
Total cumulative charges incurred | 23,609 |
Total expected costs to be incurred (2) | 23,609 |
2016 Actions [Member] | Severance and related costs [Member] | |
Exit Liability [Roll Forward] | |
Charges | 25 |
Cash payments or other settlements | (11,002) |
Total cumulative charges incurred | 19,793 |
2016 Actions [Member] | Office closures and other costs [Member] | |
Exit Liability [Roll Forward] | |
Charges | 38 |
Cash payments or other settlements | (472) |
Total cumulative charges incurred | 3,816 |
2017 Actions [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 0 |
Charges | 8,584 |
Cash payments or other settlements | (3,728) |
Balance at September 30, 2017 | 4,856 |
Total cumulative charges incurred | 8,584 |
Total expected costs to be incurred (2) | 12,117 |
2017 Actions [Member] | Severance and related costs [Member] | |
Exit Liability [Roll Forward] | |
Charges | 7,734 |
Cash payments or other settlements | (3,486) |
Total cumulative charges incurred | 7,734 |
2017 Actions [Member] | Office closures and other costs [Member] | |
Exit Liability [Roll Forward] | |
Charges | 850 |
Cash payments or other settlements | (242) |
Total cumulative charges incurred | $ 850 |
Payables and Accrued Liabilit64
Payables and Accrued Liabilities - Schedule of Accrued Exit Liability by Reportable Segment (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | $ 12,866 |
Charges | 8,637 |
Cash payments or other settlements | (15,910) |
Balance at September 30, 2017 | 5,593 |
Total cumulative charges incurred | 45,956 |
Total expected costs to be incurred (2) | 49,489 |
Servicing [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 4,776 |
Charges | 6,102 |
Cash payments or other settlements | (6,547) |
Balance at September 30, 2017 | 4,331 |
Total cumulative charges incurred | 24,185 |
Total expected costs to be incurred (2) | 27,718 |
Originations [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 1,283 |
Charges | 985 |
Cash payments or other settlements | (1,935) |
Balance at September 30, 2017 | 333 |
Total cumulative charges incurred | 6,711 |
Total expected costs to be incurred (2) | 6,711 |
Reverse Mortgage [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 2,497 |
Charges | 1,404 |
Cash payments or other settlements | (3,079) |
Balance at September 30, 2017 | 822 |
Total cumulative charges incurred | 8,481 |
Total expected costs to be incurred (2) | 8,481 |
Other [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 4,310 |
Charges | 146 |
Cash payments or other settlements | (4,349) |
Balance at September 30, 2017 | 107 |
Total cumulative charges incurred | 6,579 |
Total expected costs to be incurred (2) | 6,579 |
2015 Actions [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 988 |
Charges | (10) |
Cash payments or other settlements | (708) |
Balance at September 30, 2017 | 270 |
Total cumulative charges incurred | 13,763 |
Total expected costs to be incurred (2) | 13,763 |
2015 Actions [Member] | Servicing [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 453 |
Charges | (57) |
Cash payments or other settlements | (250) |
Balance at September 30, 2017 | 146 |
Total cumulative charges incurred | 6,424 |
Total expected costs to be incurred (2) | 6,424 |
2015 Actions [Member] | Originations [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 260 |
Charges | 35 |
Cash payments or other settlements | (213) |
Balance at September 30, 2017 | 82 |
Total cumulative charges incurred | 4,625 |
Total expected costs to be incurred (2) | 4,625 |
2015 Actions [Member] | Reverse Mortgage [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 275 |
Charges | 12 |
Cash payments or other settlements | (245) |
Balance at September 30, 2017 | 42 |
Total cumulative charges incurred | 1,863 |
Total expected costs to be incurred (2) | 1,863 |
2015 Actions [Member] | Other [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 0 |
Charges | 0 |
Cash payments or other settlements | 0 |
Balance at September 30, 2017 | 0 |
Total cumulative charges incurred | 851 |
Total expected costs to be incurred (2) | 851 |
2016 Actions [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 11,878 |
Charges | 63 |
Cash payments or other settlements | (11,474) |
Balance at September 30, 2017 | 467 |
Total cumulative charges incurred | 23,609 |
Total expected costs to be incurred (2) | 23,609 |
2016 Actions [Member] | Servicing [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 4,323 |
Charges | 42 |
Cash payments or other settlements | (4,058) |
Balance at September 30, 2017 | 307 |
Total cumulative charges incurred | 11,644 |
Total expected costs to be incurred (2) | 11,644 |
2016 Actions [Member] | Originations [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 1,023 |
Charges | (147) |
Cash payments or other settlements | (876) |
Balance at September 30, 2017 | 0 |
Total cumulative charges incurred | 989 |
Total expected costs to be incurred (2) | 989 |
2016 Actions [Member] | Reverse Mortgage [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 2,222 |
Charges | 22 |
Cash payments or other settlements | (2,191) |
Balance at September 30, 2017 | 53 |
Total cumulative charges incurred | 5,248 |
Total expected costs to be incurred (2) | 5,248 |
2016 Actions [Member] | Other [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 4,310 |
Charges | 146 |
Cash payments or other settlements | (4,349) |
Balance at September 30, 2017 | 107 |
Total cumulative charges incurred | 5,728 |
Total expected costs to be incurred (2) | 5,728 |
2017 Actions [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 0 |
Charges | 8,584 |
Cash payments or other settlements | (3,728) |
Balance at September 30, 2017 | 4,856 |
Total cumulative charges incurred | 8,584 |
Total expected costs to be incurred (2) | 12,117 |
2017 Actions [Member] | Servicing [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 0 |
Charges | 6,117 |
Cash payments or other settlements | (2,239) |
Balance at September 30, 2017 | 3,878 |
Total cumulative charges incurred | 6,117 |
Total expected costs to be incurred (2) | 9,650 |
2017 Actions [Member] | Originations [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 0 |
Charges | 1,097 |
Cash payments or other settlements | (846) |
Balance at September 30, 2017 | 251 |
Total cumulative charges incurred | 1,097 |
Total expected costs to be incurred (2) | 1,097 |
2017 Actions [Member] | Reverse Mortgage [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 0 |
Charges | 1,370 |
Cash payments or other settlements | (643) |
Balance at September 30, 2017 | 727 |
Total cumulative charges incurred | 1,370 |
Total expected costs to be incurred (2) | 1,370 |
2017 Actions [Member] | Other [Member] | |
Exit Liability [Roll Forward] | |
Balance at January 1, 2017 | 0 |
Charges | 0 |
Cash payments or other settlements | 0 |
Balance at September 30, 2017 | 0 |
Total cumulative charges incurred | 0 |
Total expected costs to be incurred (2) | $ 0 |
Warehouse Borrowings - Addition
Warehouse Borrowings - Additional Information (Details) - USD ($) | Oct. 02, 2017 | Sep. 30, 2017 | Nov. 06, 2017 | Oct. 31, 2017 | Oct. 26, 2017 | Oct. 18, 2017 | Oct. 04, 2017 |
Warehouse Agreement Borrowings [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Aggregate funding capacity | $ 2,600,000,000 | ||||||
Variable interest rate basis | LIBOR | ||||||
Expiration dates through | Aug. 25, 2018 | ||||||
Warehouse Agreement Borrowings [Member] | Minimum [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Basis spread on variable interest rate | 2.10% | ||||||
Warehouse Agreement Borrowings [Member] | Maximum [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Basis spread on variable interest rate | 5.63% | ||||||
Warehouse Agreement Borrowings [Member] | Residential Mortgage [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Outstanding borrowings, secured | $ 672,900,000 | ||||||
Pledged as collateral | 785,700,000 | ||||||
Warehouse Agreement Borrowings [Member] | Repurchased HECMs And Real Estate Owned [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Outstanding borrowings, secured | 505,400,000 | ||||||
Pledged as collateral | $ 578,600,000 | ||||||
Warehouse Agreement Borrowings [Member] | Borrowings to fund purchase or origination of residential loans [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Days to Transfer Loans | 20 days | ||||||
Warehouse Agreement Borrowings [Member] | Borrowings to fund purchase or origination of residential loans [Member] | Minimum [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Repayment Terms | 60 days | ||||||
Warehouse Agreement Borrowings [Member] | Borrowings to fund purchase or origination of residential loans [Member] | Maximum [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Repayment Terms | 90 days | ||||||
Warehouse Agreement Borrowings [Member] | Borrowings to fund repurchase of HECMs [Member] | Minimum [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Repayment Terms | 120 days | ||||||
Warehouse Agreement Borrowings [Member] | Borrowings to fund repurchase of HECMs [Member] | Maximum [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Repayment Terms | 364 days | ||||||
Warehouse Agreement Borrowings [Member] | Borrowings to fund repurchase of real estate owned [Member] | Minimum [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Repayment Terms | 180 days | ||||||
Warehouse Agreement Borrowings [Member] | Borrowings to fund repurchase of real estate owned [Member] | Maximum [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Repayment Terms | 364 days | ||||||
Servicer Advance Facilities [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Aggregate funding capacity | $ 925,000,000 | ||||||
Subsequent Event [Member] | Warehouse Agreement Borrowings [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Aggregate funding capacity | $ 1,700,000,000 | ||||||
Uncommitted capacity | 550,000,000 | ||||||
Subsequent Event [Member] | Warehouse Agreement Borrowings [Member] | Warehouse Facility 1 [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Increase in aggregate capacity | $ 150,000,000 | ||||||
Increase in interest rate spread | 2.50% | ||||||
Subsequent Event [Member] | Warehouse Agreement Borrowings [Member] | Warehouse Facility 2 [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Shift from uncommitted to committed capacity | $ 150,000,000 | ||||||
Subsequent Event [Member] | Warehouse Agreement Borrowings [Member] | Warehouse Facility 3 [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Aggregate funding capacity | $ 500,000,000 | ||||||
Committed capacity | $ 250,000,000 | ||||||
Subsequent Event [Member] | Warehouse Agreement Borrowings [Member] | Warehouse Facility 4 [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Aggregate funding capacity | 500,000,000 | ||||||
Committed capacity | $ 250,000,000 | ||||||
Subsequent Event [Member] | Warehouse Agreement Borrowings [Member] | Debtor-in-Possession Warehouse Facility [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Aggregate funding capacity | $ 1,900,000,000 | ||||||
Subsequent Event [Member] | Warehouse Agreement Borrowings [Member] | Debtor-in-Possession Warehouse Facility [Member] | Residential Mortgage [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Aggregate funding capacity | 750,000,000 | ||||||
Subsequent Event [Member] | Warehouse Agreement Borrowings [Member] | Debtor-in-Possession Warehouse Facility [Member] | Repurchased HECMs And Real Estate Owned [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Aggregate funding capacity | 800,000,000 | ||||||
Subsequent Event [Member] | Warehouse Agreement Borrowings [Member] | Debtor-in-Possession Warehouse Facility [Member] | Servicer And Protective Advances [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Aggregate funding capacity | 550,000,000 | ||||||
Subsequent Event [Member] | Warehouse Agreement Borrowings [Member] | Debtor-in-Possession Warehouse Facility Addendum [Member] | Servicer And Protective Advances [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Aggregate funding capacity | 600,000,000 | ||||||
Subsequent Event [Member] | Warehouse Agreement Borrowings [Member] | Exit Warehouse Facility [Member] | Residential Mortgage [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Aggregate funding capacity | $ 1,000,000,000 | ||||||
Subsequent Event [Member] | Servicer Advance Facilities [Member] | |||||||
Short-term Debt [Line Items] | |||||||
Aggregate funding capacity | $ 675,000,000 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - 2017 Plan [Member] - $ / shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | May 17, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock authorized for issuance | 3,650,000 | ||
Non-employee Directors [Member] | RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs granted | 631,946 | 653,398 | |
RSUs vested | 631,946 | 653,398 | |
Weighted-average grant date fair value of RSUs granted | $ 0.58 | $ 0.58 |
Common Stock and Loss Per Sha67
Common Stock and Loss Per Share - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017$ / shares | Dec. 31, 2015 | Dec. 31, 2016$ / shares | Nov. 11, 2016 | Jun. 29, 2015$ / sharesshares | |
Class of Stock [Line Items] | |||||
Dividend declared date | Jun. 29, 2015 | ||||
Dividend payable date | Jul. 9, 2015 | ||||
Dividend payable to stockholders of record date | Jul. 9, 2015 | ||||
Par value per share | $ 0.01 | $ 0.01 | |||
Preferred Share Purchase Rights Trigger Percentage | 4.99% | ||||
Junior Participating Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Number of preferred stock purchase rights declared for each outstanding share of common stock | 1 | ||||
Amount of fully paid non-assessable share the registered holder is entitled to purchase | shares | 0.001 | ||||
Par value per share | $ 0.01 | ||||
Preferred Stock Redemption Price per One Onethousandth share | $ 74.16 | ||||
Beneficial Owner [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred Share Purchase Rights Trigger Percentage | 25.00% | ||||
Convertible Notes [Member] | |||||
Class of Stock [Line Items] | |||||
Convertible Stock Price Trigger | $ 58.80 |
Common Stock and Loss Per Sha68
Common Stock and Loss Per Share - Reconciliation of Numerators and Denominators of Basic and Diluted Loss Per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Basic and Diluted Loss Per Share [Abstract] | ||||
Net loss available to common stockholders (numerator) | $ (124,133) | $ (213,267) | $ (213,934) | $ (875,932) |
Weighted-average common shares outstanding (denominator) | 36,714 | 36,144 | 36,555 | 35,828 |
Basic and diluted loss per common and common equivalent share | $ (3.38) | $ (5.90) | $ (5.85) | $ (24.45) |
Common Stock and Loss Per Sha69
Common Stock and Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Dilutive Earnings Per Share (Details) - shares shares in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
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 | 3,547 | 3,962 | 3,547 | 3,245 | ||
Out-of-the-money stock options | 3,500 | 3,000 | ||||
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 | 0 | 0 | ||
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 | 808 | 327 | 564 | ||
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 | 4,932 | 4,932 | 4,932 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Select Financial Information of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 176,644 | $ 297,330 | $ 630,716 | $ 551,574 |
Income (loss) before income taxes | (123,678) | (158,183) | (211,907) | (816,658) |
Intercompany servicing revenue and fees | 65,029 | 111,629 | 269,537 | 37,803 |
Late fees waived as an incentive for borrowers refinancing loans | 14,200 | 15,200 | 44,700 | 48,900 |
Intercompany revenues | 24,754 | 23,728 | 77,784 | 78,623 |
Operating Segments [Member] | Servicing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 90,508 | 148,873 | 355,714 | 158,431 |
Income (loss) before income taxes | (69,342) | (161,581) | (80,161) | (773,928) |
Operating Segments [Member] | Originations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 81,268 | 133,440 | 242,596 | 343,926 |
Income (loss) before income taxes | 19,868 | 51,672 | 50,710 | 113,688 |
Operating Segments [Member] | Reverse Mortgage [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 9,083 | 27,023 | 46,985 | 87,255 |
Income (loss) before income taxes | (24,900) | (23,023) | (46,699) | (44,940) |
Operating Segments [Member] | Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 181 | (194) | 891 | (119) |
Income (loss) before income taxes | (49,304) | (25,251) | (135,757) | (111,478) |
Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (4,396) | (11,812) | (15,470) | (37,919) |
Income (loss) before income taxes | 0 | 0 | 0 | 0 |
Intercompany [Member] | Operating Segments [Member] | Servicing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intercompany servicing revenue and fees | 2,200 | 3,000 | 7,500 | 9,200 |
Late fees waived as an incentive for borrowers refinancing loans | 600 | 1,000 | 2,200 | 3,000 |
Intercompany revenues | 2,700 | 9,800 | 10,100 | 30,800 |
Intercompany [Member] | Operating Segments [Member] | Originations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intercompany revenues | $ 100 | $ 100 | $ 100 | $ 1,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Oct. 10, 2017USD ($)Trust | Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($)Trust | Sep. 30, 2016USD ($) | Jan. 09, 2017 | Dec. 31, 2016USD ($) |
Loss Contingencies [Line Items] | ||||||
Payment made for mandatory clean-up call obligations | $ 84,814,000 | $ 80,335,000 | ||||
Reimbursement for advances previously made | $ 1,184,036,000 | 1,734,252,000 | ||||
Percentage of maximum claim amount, repurchase threshold | 98.00% | 98.00% | ||||
Reverse loans and real estate owned repurchased from securitization pools | $ 968,500,000 | $ 428,900,000 | ||||
Repurchased reverse loans and real estate owned held, fair value | $ 11,377,492,000 | $ 11,377,492,000 | $ 12,416,542,000 | |||
Tax separation agreement date | Apr. 17, 2009 | |||||
Percentage Of Equity Of Acquirer Of Walter Energy Core Assets Prospect Of Payment Exists | 1.00% | |||||
VIE [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of securitization trusts with reimbursement obligations | Trust | 11 | |||||
Reimbursement obligation on LOC, if drawn | 165,000,000 | $ 165,000,000 | ||||
Amount available on LOCs for securitization trusts | 247,700,000 | 247,700,000 | ||||
VIE Primary Beneficiary [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Repurchased reverse loans and real estate owned held, fair value | 381,125,000 | 381,125,000 | 492,499,000 | |||
Non-Residual Trusts [Member] | VIE Primary Beneficiary [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Repurchased reverse loans and real estate owned held, fair value | $ 381,125,000 | $ 381,125,000 | $ 450,377,000 | |||
Mandatory Clean-up Call For Residential Loans [Member] | Non-Residual Trusts [Member] | VIE Primary Beneficiary [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Mandatory clean-up calls required when loan pool falls to percent of original pincipal balance | 10.00% | 10.00% | ||||
Payment made for mandatory clean-up call obligations | $ 18,600,000 | $ 28,400,000 | ||||
Total residential loans expected to be called | 389,200,000 | 389,200,000 | ||||
Additional Borrowing Capacity Floating Rate Reverse Loans [Member] | Reverse Mortgage [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments | 1,100,000,000 | 1,100,000,000 | ||||
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 | 79,300,000 | 79,300,000 | ||||
Additional Borrowing Capacity Fixed Rate Reverse Loans [Member] | Reverse Mortgage [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments | 300,000 | 300,000 | ||||
Commitment To Fund Taxes and Insurance [Member] | Reverse Mortgage [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments | 27,300,000 | 27,300,000 | ||||
Short Term Commitment To Lend [Member] | Originations [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments | 1,800,000,000 | 1,800,000,000 | ||||
Commitment to Purchase Loans [Member] | Originations [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments to purchase loans | 14,300,000 | 14,300,000 | ||||
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 | 300,000,000 | 300,000,000 | ||||
Repurchased Reverse Loans And Real Estate Owned [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Repurchased reverse loans and real estate owned held, outstanding loan balance | 707,000,000 | 707,000,000 | ||||
Repurchased reverse loans and real estate owned held, fair value | 675,500,000 | 675,500,000 | ||||
Repurchased Reverse Loans And Real Estate Owned [Member] | Commitment to Purchase Loans [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments to purchase loans | 104,600,000 | 104,600,000 | ||||
Representations And Warranties [Member] | Commitment to Purchase Loans [Member] | Originations [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency accrual | 17,100,000 | 17,100,000 | ||||
Representations And Warranties [Member] | Maximum [Member] | Commitment to Purchase Loans [Member] | Originations [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Commitments | 68,800,000,000 | 68,800,000,000 | ||||
Curtailment Obligation Liability [Member] | Reverse Mortgage [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency accrual | 98,000,000 | 98,000,000 | ||||
Loss contingency recorded in current period | 3,600,000 | |||||
Aggregate estimated amount of reasonably possible losses in excess of recorded liability | 150,600,000 | 150,600,000 | ||||
Curtailment Obligation Liability [Member] | Originations [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency accrual | 24,700,000 | 24,700,000 | ||||
Pending Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency accrual | 35,000,000 | 35,000,000 | ||||
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 | 15,000,000 | 15,000,000 | ||||
Subsequent Event [Member] | VIE [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Number of securitization trusts with reimbursement obligations | Trust | 8 | |||||
Subsequent Event [Member] | Mandatory Clean-up Call For Residential Loans [Member] | Non-Residual Trusts [Member] | VIE Primary Beneficiary [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Obligation To Reimburse Losses In Excess Of Threshold | $ 17,000,000 | |||||
Payment of inducement fee | 36,500,000 | |||||
Reimbursement for advances previously made | $ 6,400,000 | |||||
Key Officers [Member] | Retention Bonus [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Total retention bonus | $ 2,800,000 | $ 2,800,000 |
Separate Financial Informatio73
Separate Financial Information of Subsidiary Guarantors of Indebtedness - Additional Information (Details) | Sep. 30, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Guarantor subsidiary, ownership percentage | 100.00% |
Separate Financial Informatio74
Separate Financial Information of Subsidiary Guarantors of Indebtedness - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and cash equivalents | $ 276,802 | $ 224,598 | $ 285,682 | $ 202,828 |
Restricted cash and cash equivalents | 359,420 | 204,463 | ||
Residential loans at amortized cost, net | 742,904 | 665,209 | ||
Residential loans at fair value | 11,377,492 | 12,416,542 | ||
Receivables, net | 151,398 | 267,962 | ||
Servicer and protective advances, net | 850,867 | 1,195,380 | ||
Servicing rights, net | 869,981 | 1,029,719 | ||
Goodwill | 47,747 | 47,747 | ||
Intangible assets, net | 9,213 | 11,347 | ||
Premises and equipment, net | 58,210 | 82,628 | ||
Deferred tax assets, net | 0 | |||
Assets held for sale | 0 | 71,085 | ||
Other assets | 235,601 | 242,290 | ||
Due from affiliates, net | 0 | 0 | ||
Investments in consolidated subsidiaries and VIEs | 0 | 0 | ||
Total assets | 14,979,635 | 16,458,970 | ||
LIABILITIES AND STOCKHOLDERS' EQUTIY (DEFICIT) | ||||
Payables and accrued liabilities | 721,191 | 759,011 | ||
Servicer payables | 346,753 | 146,332 | ||
Servicing advance liabilities | 509,363 | 783,229 | ||
Warehouse borrowings | 1,178,320 | 1,203,355 | ||
Servicing rights related liabilities at fair value | 1,565 | 1,902 | ||
Corporate debt | 2,022,639 | 2,129,000 | ||
Mortgage-backed debt | 832,897 | 943,956 | ||
HMBS related obligations at fair value | 9,598,234 | 10,509,449 | ||
Deferred tax liabilities, net | 4,907 | 4,774 | ||
Liabilities held for sale | 0 | 2,402 | ||
Obligation to fund Non-Guarantor VIEs | 0 | 0 | ||
Due to affiliates, net | 0 | 0 | ||
Total liabilities | 15,215,869 | 16,483,410 | ||
Stockholders' equity (deficit): | ||||
Total stockholders' equity (deficit) | (236,234) | (24,440) | ||
Total liabilities and stockholders' equity | 14,979,635 | 16,458,970 | ||
Reportable Legal Entities [Member] | Parent Company [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 715 | 773 | 999 | 4,016 |
Restricted cash and cash equivalents | 1,502 | 1,502 | ||
Residential loans at amortized cost, net | 11,700 | 12,891 | ||
Residential loans at fair value | 0 | 0 | ||
Receivables, net | 20,719 | 97,424 | ||
Servicer and protective advances, net | 0 | 0 | ||
Servicing rights, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Premises and equipment, net | 1,122 | 1,181 | ||
Deferred tax assets, net | 857 | |||
Assets held for sale | 0 | |||
Other assets | 26,027 | 30,789 | ||
Due from affiliates, net | 276,166 | 392,998 | ||
Investments in consolidated subsidiaries and VIEs | 1,491,518 | 1,620,339 | ||
Total assets | 1,830,326 | 2,157,897 | ||
LIABILITIES AND STOCKHOLDERS' EQUTIY (DEFICIT) | ||||
Payables and accrued liabilities | 43,921 | 53,337 | ||
Servicer payables | 0 | 0 | ||
Servicing advance liabilities | 0 | 0 | ||
Warehouse borrowings | 0 | 0 | ||
Servicing rights related liabilities at fair value | 0 | 0 | ||
Corporate debt | 2,022,639 | 2,129,000 | ||
Mortgage-backed debt | 0 | 0 | ||
HMBS related obligations at fair value | 0 | 0 | ||
Deferred tax liabilities, net | 0 | 0 | ||
Liabilities held for sale | 0 | |||
Obligation to fund Non-Guarantor VIEs | 0 | 0 | ||
Due to affiliates, net | 0 | 0 | ||
Total liabilities | 2,066,560 | 2,182,337 | ||
Stockholders' equity (deficit): | ||||
Total stockholders' equity (deficit) | (236,234) | (24,440) | ||
Total liabilities and stockholders' equity | 1,830,326 | 2,157,897 | ||
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 274,087 | 221,825 | 282,683 | 196,812 |
Restricted cash and cash equivalents | 325,220 | 158,204 | ||
Residential loans at amortized cost, net | 299,745 | 189,441 | ||
Residential loans at fair value | 10,996,367 | 11,924,043 | ||
Receivables, net | 122,279 | 154,852 | ||
Servicer and protective advances, net | 390,673 | 481,099 | ||
Servicing rights, net | 869,981 | 1,029,719 | ||
Goodwill | 47,747 | 47,747 | ||
Intangible assets, net | 9,213 | 11,347 | ||
Premises and equipment, net | 57,088 | 81,447 | ||
Deferred tax assets, net | 0 | |||
Assets held for sale | 65,045 | |||
Other assets | 177,592 | 191,671 | ||
Due from affiliates, net | 0 | 0 | ||
Investments in consolidated subsidiaries and VIEs | 68,643 | 134,612 | ||
Total assets | 13,638,635 | 14,691,052 | ||
LIABILITIES AND STOCKHOLDERS' EQUTIY (DEFICIT) | ||||
Payables and accrued liabilities | 679,677 | 708,070 | ||
Servicer payables | 346,753 | 146,332 | ||
Servicing advance liabilities | 83,895 | 132,664 | ||
Warehouse borrowings | 1,178,320 | 1,203,355 | ||
Servicing rights related liabilities at fair value | 1,565 | 1,902 | ||
Corporate debt | 0 | 0 | ||
Mortgage-backed debt | 0 | 0 | ||
HMBS related obligations at fair value | 9,598,234 | 10,509,449 | ||
Deferred tax liabilities, net | 5,764 | 3,204 | ||
Liabilities held for sale | 1,179 | |||
Obligation to fund Non-Guarantor VIEs | 48,249 | 46,417 | ||
Due to affiliates, net | 272,741 | 392,812 | ||
Total liabilities | 12,215,198 | 13,145,384 | ||
Stockholders' equity (deficit): | ||||
Total stockholders' equity (deficit) | 1,423,437 | 1,545,668 | ||
Total liabilities and stockholders' equity | 13,638,635 | 14,691,052 | ||
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries and VIEs [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 2,000 | 2,000 | 2,000 | 2,000 |
Restricted cash and cash equivalents | 32,698 | 44,757 | ||
Residential loans at amortized cost, net | 431,459 | 462,877 | ||
Residential loans at fair value | 381,125 | 492,499 | ||
Receivables, net | 8,400 | 15,686 | ||
Servicer and protective advances, net | 444,118 | 688,961 | ||
Servicing rights, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Premises and equipment, net | 0 | 0 | ||
Deferred tax assets, net | 0 | |||
Assets held for sale | 6,040 | |||
Other assets | 31,982 | 19,830 | ||
Due from affiliates, net | 0 | 0 | ||
Investments in consolidated subsidiaries and VIEs | 0 | 0 | ||
Total assets | 1,331,782 | 1,732,650 | ||
LIABILITIES AND STOCKHOLDERS' EQUTIY (DEFICIT) | ||||
Payables and accrued liabilities | 4,475 | 5,474 | ||
Servicer payables | 0 | 0 | ||
Servicing advance liabilities | 425,468 | 650,565 | ||
Warehouse borrowings | 0 | 0 | ||
Servicing rights related liabilities at fair value | 0 | 0 | ||
Corporate debt | 0 | 0 | ||
Mortgage-backed debt | 832,897 | 943,956 | ||
HMBS related obligations at fair value | 0 | 0 | ||
Deferred tax liabilities, net | 0 | 1,570 | ||
Liabilities held for sale | 1,223 | |||
Obligation to fund Non-Guarantor VIEs | 0 | 0 | ||
Due to affiliates, net | 3,425 | 185 | ||
Total liabilities | 1,266,265 | 1,602,973 | ||
Stockholders' equity (deficit): | ||||
Total stockholders' equity (deficit) | 65,517 | 129,677 | ||
Total liabilities and stockholders' equity | 1,331,782 | 1,732,650 | ||
Eliminations and Reclassifications [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Restricted cash and cash equivalents | 0 | 0 | ||
Residential loans at amortized cost, net | 0 | 0 | ||
Residential loans at fair value | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Servicer and protective advances, net | 16,076 | 25,320 | ||
Servicing rights, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Premises and equipment, net | 0 | 0 | ||
Deferred tax assets, net | (857) | |||
Assets held for sale | 0 | |||
Other assets | 0 | 0 | ||
Due from affiliates, net | (276,166) | (392,998) | ||
Investments in consolidated subsidiaries and VIEs | (1,560,161) | (1,754,951) | ||
Total assets | (1,821,108) | (2,122,629) | ||
LIABILITIES AND STOCKHOLDERS' EQUTIY (DEFICIT) | ||||
Payables and accrued liabilities | (6,882) | (7,870) | ||
Servicer payables | 0 | 0 | ||
Servicing advance liabilities | 0 | 0 | ||
Warehouse borrowings | 0 | 0 | ||
Servicing rights related liabilities at fair value | 0 | 0 | ||
Corporate debt | 0 | 0 | ||
Mortgage-backed debt | 0 | 0 | ||
HMBS related obligations at fair value | 0 | 0 | ||
Deferred tax liabilities, net | (857) | 0 | ||
Liabilities held for sale | 0 | |||
Obligation to fund Non-Guarantor VIEs | (48,249) | (46,417) | ||
Due to affiliates, net | (276,166) | (392,997) | ||
Total liabilities | (332,154) | (447,284) | ||
Stockholders' equity (deficit): | ||||
Total stockholders' equity (deficit) | (1,488,954) | (1,675,345) | ||
Total liabilities and stockholders' equity | $ (1,821,108) | $ (2,122,629) |
Separate Financial Informatio75
Separate Financial Information of Subsidiary Guarantors of Indebtedness - Condensed Consolidating Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUES | ||||
Net servicing revenue and fees | $ 65,029 | $ 111,629 | $ 269,537 | $ 37,803 |
Net gains on sales of loans | 73,013 | 122,014 | 217,914 | 306,667 |
Net fair value gains on reverse loans and related HMBS obligations | 1,810 | 18,627 | 24,384 | 61,485 |
Interest income on loans | 9,802 | 11,332 | 31,271 | 35,352 |
Insurance revenue | 2,236 | 10,000 | 9,826 | 31,644 |
Other revenues, net | 24,754 | 23,728 | 77,784 | 78,623 |
Total revenues | 176,644 | 297,330 | 630,716 | 551,574 |
EXPENSES | ||||
General and administrative | 137,614 | 151,792 | 386,785 | 417,174 |
Salaries and benefits | 91,544 | 133,199 | 300,572 | 399,519 |
Interest expense | 61,671 | 65,302 | 182,965 | 193,950 |
Depreciation and amortization | 9,741 | 16,580 | 30,715 | 45,543 |
Goodwill and intangible assets impairment | 0 | 97,716 | 0 | 313,128 |
Corporate allocations | 0 | 0 | 0 | 0 |
Other expenses, net | 2,576 | 1,206 | 8,413 | 5,609 |
Total expenses | 303,146 | 465,795 | 909,450 | 1,374,923 |
OTHER GAINS (LOSSES) | ||||
Gain on sale of business | 0 | 0 | 67,734 | 0 |
Other net fair value gains (losses) | 3,783 | (3,302) | 761 | (6,265) |
Net gains (losses) on extinguishment of debt | (959) | 13,734 | (1,668) | 14,662 |
Other | 0 | (150) | 0 | (1,706) |
Total other gains (losses) | 2,824 | 10,282 | 66,827 | 6,691 |
Income (loss) before income taxes | (123,678) | (158,183) | (211,907) | (816,658) |
Income tax expense (benefit) | 455 | 55,084 | 2,027 | 59,274 |
Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs | (124,133) | (213,267) | (213,934) | (875,932) |
Equity in earnings (losses) of consolidated subsidiaries and VIEs | 0 | 0 | 0 | 0 |
Net income (loss) | (124,133) | (213,267) | (213,934) | (875,932) |
Comprehensive income (loss) | (124,035) | (213,281) | (213,858) | (875,905) |
Reportable Legal Entities [Member] | Parent Company [Member] | ||||
REVENUES | ||||
Net servicing revenue and fees | 0 | 0 | 0 | 0 |
Net gains on sales of loans | 0 | 0 | 0 | 0 |
Net fair value gains on reverse loans and related HMBS obligations | 0 | 0 | 0 | 0 |
Interest income on loans | 206 | 248 | 680 | 860 |
Insurance revenue | 0 | 0 | 0 | 0 |
Other revenues, net | 215 | (938) | 386 | (1,746) |
Total revenues | 421 | (690) | 1,066 | (886) |
EXPENSES | ||||
General and administrative | 24,439 | 19,859 | 53,805 | 42,448 |
Salaries and benefits | 10,770 | 13,505 | 32,591 | 44,598 |
Interest expense | 35,640 | 36,986 | 105,863 | 108,802 |
Depreciation and amortization | 171 | 234 | 533 | 598 |
Goodwill and intangible assets impairment | 0 | 0 | ||
Corporate allocations | (19,477) | (32,203) | (60,478) | (83,326) |
Other expenses, net | 161 | 47 | 364 | 464 |
Total expenses | 51,704 | 38,428 | 132,678 | 113,584 |
OTHER GAINS (LOSSES) | ||||
Gain on sale of business | 0 | |||
Other net fair value gains (losses) | 0 | 0 | 0 | 0 |
Net gains (losses) on extinguishment of debt | (959) | 13,734 | (959) | 14,662 |
Other | 0 | 0 | ||
Total other gains (losses) | (959) | 13,734 | (959) | 14,662 |
Income (loss) before income taxes | (52,242) | (25,384) | (132,571) | (99,808) |
Income tax expense (benefit) | 2,104 | 7,505 | (32,478) | (5,237) |
Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs | (54,346) | (32,889) | (100,093) | (94,571) |
Equity in earnings (losses) of consolidated subsidiaries and VIEs | (69,787) | (180,378) | (113,841) | (781,361) |
Net income (loss) | (124,133) | (213,267) | (213,934) | (875,932) |
Comprehensive income (loss) | (124,035) | (213,281) | (213,858) | (875,905) |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||||
REVENUES | ||||
Net servicing revenue and fees | 66,951 | 113,803 | 275,539 | 44,507 |
Net gains on sales of loans | 73,013 | 122,014 | 217,914 | 306,667 |
Net fair value gains on reverse loans and related HMBS obligations | 1,810 | 18,687 | 24,342 | 61,771 |
Interest income on loans | 537 | 143 | 1,161 | 345 |
Insurance revenue | 2,236 | 9,287 | 9,574 | 29,215 |
Other revenues, net | 24,540 | 25,017 | 77,372 | 82,259 |
Total revenues | 169,087 | 288,951 | 605,902 | 524,764 |
EXPENSES | ||||
General and administrative | 123,128 | 145,563 | 366,976 | 417,128 |
Salaries and benefits | 80,774 | 119,694 | 267,981 | 354,921 |
Interest expense | 15,371 | 13,249 | 42,624 | 36,958 |
Depreciation and amortization | 9,570 | 16,173 | 30,129 | 44,419 |
Goodwill and intangible assets impairment | 97,716 | 313,128 | ||
Corporate allocations | 19,477 | 32,203 | 60,478 | 83,326 |
Other expenses, net | 1,137 | 1,150 | 4,367 | 3,114 |
Total expenses | 249,457 | 425,748 | 772,555 | 1,252,994 |
OTHER GAINS (LOSSES) | ||||
Gain on sale of business | 67,734 | |||
Other net fair value gains (losses) | (550) | (643) | (1,756) | (273) |
Net gains (losses) on extinguishment of debt | 0 | 0 | (266) | 0 |
Other | (150) | (1,706) | ||
Total other gains (losses) | (550) | (793) | 65,712 | (1,979) |
Income (loss) before income taxes | (80,920) | (137,590) | (100,941) | (730,209) |
Income tax expense (benefit) | (3,345) | 45,550 | 29,982 | 58,529 |
Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs | (77,575) | (183,140) | (130,923) | (788,738) |
Equity in earnings (losses) of consolidated subsidiaries and VIEs | 10,530 | 2,267 | 21,887 | 2,945 |
Net income (loss) | (67,045) | (180,873) | (109,036) | (785,793) |
Comprehensive income (loss) | (67,045) | (180,873) | (109,036) | (785,793) |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries and VIEs [Member] | ||||
REVENUES | ||||
Net servicing revenue and fees | 0 | 0 | 0 | 0 |
Net gains on sales of loans | 0 | 0 | 0 | 0 |
Net fair value gains on reverse loans and related HMBS obligations | 0 | (60) | 42 | (286) |
Interest income on loans | 9,059 | 10,941 | 29,430 | 34,147 |
Insurance revenue | 0 | 871 | 309 | 2,971 |
Other revenues, net | 14,399 | 17,882 | 46,110 | 49,967 |
Total revenues | 23,458 | 29,634 | 75,891 | 86,799 |
EXPENSES | ||||
General and administrative | 2,519 | 3,488 | 7,859 | 9,884 |
Salaries and benefits | 0 | 0 | 0 | 0 |
Interest expense | 10,686 | 15,451 | 34,534 | 50,186 |
Depreciation and amortization | 0 | 173 | 53 | 526 |
Goodwill and intangible assets impairment | 0 | 0 | ||
Corporate allocations | 0 | 0 | 0 | 0 |
Other expenses, net | 1,278 | 9 | 3,682 | 2,031 |
Total expenses | 14,483 | 19,121 | 46,128 | 62,627 |
OTHER GAINS (LOSSES) | ||||
Gain on sale of business | 0 | |||
Other net fair value gains (losses) | 4,333 | (2,659) | 2,517 | (5,992) |
Net gains (losses) on extinguishment of debt | 0 | 0 | (443) | 0 |
Other | 0 | 0 | ||
Total other gains (losses) | 4,333 | (2,659) | 2,074 | (5,992) |
Income (loss) before income taxes | 13,308 | 7,854 | 31,837 | 18,180 |
Income tax expense (benefit) | 1,889 | 2,185 | 5,051 | 6,282 |
Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs | 11,419 | 5,669 | 26,786 | 11,898 |
Equity in earnings (losses) of consolidated subsidiaries and VIEs | 0 | 0 | 0 | 0 |
Net income (loss) | 11,419 | 5,669 | 26,786 | 11,898 |
Comprehensive income (loss) | 11,419 | 5,669 | 26,786 | 11,898 |
Eliminations and Reclassifications [Member] | ||||
REVENUES | ||||
Net servicing revenue and fees | (1,922) | (2,174) | (6,002) | (6,704) |
Net gains on sales of loans | 0 | 0 | 0 | 0 |
Net fair value gains on reverse loans and related HMBS obligations | 0 | 0 | 0 | 0 |
Interest income on loans | 0 | 0 | 0 | 0 |
Insurance revenue | 0 | (158) | (57) | (542) |
Other revenues, net | (14,400) | (18,233) | (46,084) | (51,857) |
Total revenues | (16,322) | (20,565) | (52,143) | (59,103) |
EXPENSES | ||||
General and administrative | (12,472) | (17,118) | (41,855) | (52,286) |
Salaries and benefits | 0 | 0 | 0 | 0 |
Interest expense | (26) | (384) | (56) | (1,996) |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Goodwill and intangible assets impairment | 0 | 0 | ||
Corporate allocations | 0 | 0 | 0 | 0 |
Other expenses, net | 0 | 0 | 0 | 0 |
Total expenses | (12,498) | (17,502) | (41,911) | (54,282) |
OTHER GAINS (LOSSES) | ||||
Gain on sale of business | 0 | |||
Other net fair value gains (losses) | 0 | 0 | 0 | 0 |
Net gains (losses) on extinguishment of debt | 0 | 0 | 0 | 0 |
Other | 0 | 0 | ||
Total other gains (losses) | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | (3,824) | (3,063) | (10,232) | (4,821) |
Income tax expense (benefit) | (193) | (156) | (528) | (300) |
Income (loss) before equity in earnings (losses) of consolidated subsidiaries and VIEs | (3,631) | (2,907) | (9,704) | (4,521) |
Equity in earnings (losses) of consolidated subsidiaries and VIEs | 59,257 | 178,111 | 91,954 | 778,416 |
Net income (loss) | 55,626 | 175,204 | 82,250 | 773,895 |
Comprehensive income (loss) | $ 55,626 | $ 175,204 | $ 82,250 | $ 773,895 |
Separate Financial Informatio76
Separate Financial Information of Subsidiary Guarantors of Indebtedness - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||
Cash flows provided by (used in) operating activities | $ 531,417 | $ 375,172 |
Investing activities | ||
Purchases and originations of reverse loans held for investment | (302,032) | (653,471) |
Principal payments received on reverse loans held for investment | 985,989 | 770,636 |
Principal payments received on mortgage loans held for investment | 71,024 | 69,238 |
Payments received on charged-off loans held for investment | 13,217 | 17,827 |
Payments received on receivables related to Non-Residual Trusts | 10,275 | 6,230 |
Proceeds from sales of real estate owned, net | 106,014 | 81,591 |
Purchases of premises and equipment | (3,622) | (29,128) |
Decrease (increase) in restricted cash and cash equivalents | 1,841 | 9,778 |
Payments for acquisitions of businesses, net of cash acquired | (1,019) | (1,947) |
Acquisitions of servicing rights, net | (171) | (7,701) |
Proceeds from sale of servicing rights, net | 79,772 | 35,541 |
Proceeds from sale of business | 131,074 | 0 |
Cash outflow from deconsolidation of variable interest entities | (28,425) | 0 |
Capital contributions to subsidiaries and VIEs | 0 | 0 |
Returns of capital from subsidiaries and VIEs | 0 | 0 |
Change in due from affiliates | 0 | 0 |
Other | 8,486 | (3,665) |
Cash flows provided by investing activities | 1,072,423 | 294,929 |
Financing activities | ||
Payments on corporate debt | (121,285) | (480) |
Extinguishments and settlement of debt | 0 | (31,037) |
Proceeds from securitizations of reverse loans | 375,786 | 684,711 |
Payments on HMBS related obligations | (1,420,881) | (958,720) |
Issuances of servicing advance liabilities | 908,868 | 1,526,733 |
Payments on servicing advance liabilities | (1,184,036) | (1,734,252) |
Net change in warehouse borrowings related to mortgage loans | (394,036) | (147,389) |
Net change in warehouse borrowings related to reverse loans | 369,001 | 169,210 |
Proceeds from financing of servicing rights | 0 | 29,742 |
Payments on servicing rights related liabilities | (1,415) | (16,013) |
Payments on mortgage-backed debt | (84,814) | (80,335) |
Other debt issuance costs paid | (4,855) | (9,260) |
Capital contributions | 0 | 0 |
Capital distributions | 0 | 0 |
Change in due to affiliates | 0 | 0 |
Other | 6,031 | (20,157) |
Cash flows used in financing activities | (1,551,636) | (587,247) |
Net increase (decrease) in cash and cash equivalents | 52,204 | 82,854 |
Cash and cash equivalents at beginning of the period | 224,598 | 202,828 |
Cash and cash equivalents at end of the period | 276,802 | 285,682 |
Reportable Legal Entities [Member] | Parent Company [Member] | ||
Operating activities | ||
Cash flows provided by (used in) operating activities | (28,855) | (3,013) |
Investing activities | ||
Purchases and originations of reverse loans held for investment | 0 | 0 |
Principal payments received on reverse loans held for investment | 0 | 0 |
Principal payments received on mortgage loans held for investment | 1,261 | 705 |
Payments received on charged-off loans held for investment | 0 | 0 |
Payments received on receivables related to Non-Residual Trusts | 0 | 0 |
Proceeds from sales of real estate owned, net | 40 | 26 |
Purchases of premises and equipment | (512) | (468) |
Decrease (increase) in restricted cash and cash equivalents | 0 | 9,011 |
Payments for acquisitions of businesses, net of cash acquired | 0 | 0 |
Acquisitions of servicing rights, net | 0 | 0 |
Proceeds from sale of servicing rights, net | 0 | 0 |
Proceeds from sale of business | 0 | |
Cash outflow from deconsolidation of variable interest entities | 0 | |
Capital contributions to subsidiaries and VIEs | (100,178) | 0 |
Returns of capital from subsidiaries and VIEs | 220,690 | 10,524 |
Change in due from affiliates | (49,878) | 10,927 |
Other | 11,711 | 235 |
Cash flows provided by investing activities | 83,134 | 30,960 |
Financing activities | ||
Payments on corporate debt | (121,285) | 0 |
Extinguishments and settlement of debt | (31,037) | |
Proceeds from securitizations of reverse loans | 0 | 0 |
Payments on HMBS related obligations | 0 | 0 |
Issuances of servicing advance liabilities | 0 | 0 |
Payments on servicing advance liabilities | 0 | 0 |
Net change in warehouse borrowings related to mortgage loans | 0 | 0 |
Net change in warehouse borrowings related to reverse loans | 0 | 0 |
Proceeds from financing of servicing rights | 0 | |
Payments on servicing rights related liabilities | 0 | 0 |
Payments on mortgage-backed debt | 0 | 0 |
Other debt issuance costs paid | 0 | (528) |
Capital contributions | 0 | 0 |
Capital distributions | 0 | 0 |
Change in due to affiliates | 67,023 | 1,382 |
Other | (75) | (781) |
Cash flows used in financing activities | (54,337) | (30,964) |
Net increase (decrease) in cash and cash equivalents | (58) | (3,017) |
Cash and cash equivalents at beginning of the period | 773 | 4,016 |
Cash and cash equivalents at end of the period | 715 | 999 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ||
Operating activities | ||
Cash flows provided by (used in) operating activities | 251,036 | 170,573 |
Investing activities | ||
Purchases and originations of reverse loans held for investment | (302,032) | (653,471) |
Principal payments received on reverse loans held for investment | 985,989 | 770,636 |
Principal payments received on mortgage loans held for investment | 0 | 0 |
Payments received on charged-off loans held for investment | 13,217 | 17,827 |
Payments received on receivables related to Non-Residual Trusts | 0 | 0 |
Proceeds from sales of real estate owned, net | 103,118 | 78,616 |
Purchases of premises and equipment | (3,110) | (28,660) |
Decrease (increase) in restricted cash and cash equivalents | 621 | 818 |
Payments for acquisitions of businesses, net of cash acquired | (1,019) | (1,947) |
Acquisitions of servicing rights, net | (171) | (7,701) |
Proceeds from sale of servicing rights, net | 79,772 | 35,541 |
Proceeds from sale of business | 131,074 | |
Cash outflow from deconsolidation of variable interest entities | 0 | |
Capital contributions to subsidiaries and VIEs | (5,419) | (11,878) |
Returns of capital from subsidiaries and VIEs | 63,305 | 18,629 |
Change in due from affiliates | (70,932) | 58,684 |
Other | (3,284) | (3,900) |
Cash flows provided by investing activities | 991,129 | 273,194 |
Financing activities | ||
Payments on corporate debt | 0 | (480) |
Extinguishments and settlement of debt | 0 | |
Proceeds from securitizations of reverse loans | 375,786 | 684,711 |
Payments on HMBS related obligations | (1,420,881) | (958,720) |
Issuances of servicing advance liabilities | 117,167 | 185,444 |
Payments on servicing advance liabilities | (165,937) | (265,083) |
Net change in warehouse borrowings related to mortgage loans | (394,036) | (147,389) |
Net change in warehouse borrowings related to reverse loans | 369,001 | 169,210 |
Proceeds from financing of servicing rights | 29,742 | |
Payments on servicing rights related liabilities | (1,415) | (16,013) |
Payments on mortgage-backed debt | 0 | 0 |
Other debt issuance costs paid | (4,709) | (6,707) |
Capital contributions | 25,178 | 0 |
Capital distributions | (144,341) | (6,125) |
Change in due to affiliates | 50,455 | (6,742) |
Other | 3,829 | (19,744) |
Cash flows used in financing activities | (1,189,903) | (357,896) |
Net increase (decrease) in cash and cash equivalents | 52,262 | 85,871 |
Cash and cash equivalents at beginning of the period | 221,825 | 196,812 |
Cash and cash equivalents at end of the period | 274,087 | 282,683 |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries and VIEs [Member] | ||
Operating activities | ||
Cash flows provided by (used in) operating activities | 284,175 | 207,612 |
Investing activities | ||
Purchases and originations of reverse loans held for investment | 0 | 0 |
Principal payments received on reverse loans held for investment | 0 | 0 |
Principal payments received on mortgage loans held for investment | 94,824 | 68,533 |
Payments received on charged-off loans held for investment | 0 | 0 |
Payments received on receivables related to Non-Residual Trusts | 10,275 | 6,230 |
Proceeds from sales of real estate owned, net | 2,915 | 2,949 |
Purchases of premises and equipment | 0 | 0 |
Decrease (increase) in restricted cash and cash equivalents | 1,220 | (51) |
Payments for acquisitions of businesses, net of cash acquired | 0 | 0 |
Acquisitions of servicing rights, net | 0 | 0 |
Proceeds from sale of servicing rights, net | 0 | 0 |
Proceeds from sale of business | 0 | |
Cash outflow from deconsolidation of variable interest entities | (28,425) | |
Capital contributions to subsidiaries and VIEs | 0 | 0 |
Returns of capital from subsidiaries and VIEs | 0 | 0 |
Change in due from affiliates | (354) | (3,963) |
Other | 0 | 0 |
Cash flows provided by investing activities | 80,455 | 73,698 |
Financing activities | ||
Payments on corporate debt | 0 | 0 |
Extinguishments and settlement of debt | 0 | |
Proceeds from securitizations of reverse loans | 0 | 0 |
Payments on HMBS related obligations | 0 | 0 |
Issuances of servicing advance liabilities | 791,701 | 1,341,289 |
Payments on servicing advance liabilities | (1,018,099) | (1,469,169) |
Net change in warehouse borrowings related to mortgage loans | 0 | 0 |
Net change in warehouse borrowings related to reverse loans | 0 | 0 |
Proceeds from financing of servicing rights | 0 | |
Payments on servicing rights related liabilities | 0 | 0 |
Payments on mortgage-backed debt | (84,814) | (80,335) |
Other debt issuance costs paid | (146) | (2,025) |
Capital contributions | 80,419 | 11,878 |
Capital distributions | (139,654) | (23,028) |
Change in due to affiliates | 3,686 | (60,288) |
Other | 2,277 | 368 |
Cash flows used in financing activities | (364,630) | (281,310) |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of the period | 2,000 | 2,000 |
Cash and cash equivalents at end of the period | 2,000 | 2,000 |
Eliminations and Reclassifications [Member] | ||
Operating activities | ||
Cash flows provided by (used in) operating activities | 25,061 | 0 |
Investing activities | ||
Purchases and originations of reverse loans held for investment | 0 | 0 |
Principal payments received on reverse loans held for investment | 0 | 0 |
Principal payments received on mortgage loans held for investment | (25,061) | 0 |
Payments received on charged-off loans held for investment | 0 | 0 |
Payments received on receivables related to Non-Residual Trusts | 0 | 0 |
Proceeds from sales of real estate owned, net | (59) | 0 |
Purchases of premises and equipment | 0 | 0 |
Decrease (increase) in restricted cash and cash equivalents | 0 | 0 |
Payments for acquisitions of businesses, net of cash acquired | 0 | 0 |
Acquisitions of servicing rights, net | 0 | 0 |
Proceeds from sale of servicing rights, net | 0 | 0 |
Proceeds from sale of business | 0 | |
Cash outflow from deconsolidation of variable interest entities | 0 | |
Capital contributions to subsidiaries and VIEs | 105,597 | 11,878 |
Returns of capital from subsidiaries and VIEs | (283,995) | (29,153) |
Change in due from affiliates | 121,164 | (65,648) |
Other | 59 | 0 |
Cash flows provided by investing activities | (82,295) | (82,923) |
Financing activities | ||
Payments on corporate debt | 0 | 0 |
Extinguishments and settlement of debt | 0 | |
Proceeds from securitizations of reverse loans | 0 | 0 |
Payments on HMBS related obligations | 0 | 0 |
Issuances of servicing advance liabilities | 0 | 0 |
Payments on servicing advance liabilities | 0 | 0 |
Net change in warehouse borrowings related to mortgage loans | 0 | 0 |
Net change in warehouse borrowings related to reverse loans | 0 | 0 |
Proceeds from financing of servicing rights | 0 | |
Payments on servicing rights related liabilities | 0 | 0 |
Payments on mortgage-backed debt | 0 | 0 |
Other debt issuance costs paid | 0 | 0 |
Capital contributions | (105,597) | (11,878) |
Capital distributions | 283,995 | 29,153 |
Change in due to affiliates | (121,164) | 65,648 |
Other | 0 | 0 |
Cash flows used in financing activities | 57,234 | 82,923 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of the period | 0 | 0 |
Cash and cash equivalents at end of the period | $ 0 | $ 0 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Marix [Member] | |||||
Related Party Transaction [Line Items] | |||||
Estimated purchase price | $ 0.7 | $ 0.7 | |||
Walter Capital Opportunity Corp. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Investment in WCO | 8 | 8 | $ 19.4 | ||
Income (loss) relating to investment in WCO | 0 | $ (1) | 0.1 | $ (2) | |
Dividend received | 11.5 | 1 | |||
Corporate Joint Venture [Member] | Investment Advisory And Management Services Provided To WCO [Member] | |||||
Related Party Transaction [Line Items] | |||||
Fees earned for services provided | 0.1 | $ 0.4 | 0.1 | $ 1.2 | |
Receivable related to fees earned | $ 0.1 | $ 0.1 | $ 0.9 |
Related Party Transactions - Su
Related Party Transactions - Summary of Assets and Liabilities that Relate to WCO (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Corporate Joint Venture [Member] | Transactions With Walter Capital Opportunity Corp [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Net Assets | $ 13,184 | $ 26,422 |
Corporate Joint Venture [Member] | Transactions With Walter Capital Opportunity Corp [Member] | Servicer And Protective Advances, Net [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Assets Recorded on the Consolidated Balance Sheets | 5,216 | 6,980 |
Corporate Joint Venture [Member] | Transactions With Walter Capital Opportunity Corp [Member] | Receivables, Net [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Assets Recorded on the Consolidated Balance Sheets | 15 | 1,392 |
Corporate Joint Venture [Member] | Transactions With Walter Capital Opportunity Corp [Member] | Other Assets [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Assets Recorded on the Consolidated Balance Sheets | 7,953 | 19,403 |
Corporate Joint Venture [Member] | Transactions With Walter Capital Opportunity Corp [Member] | Payables and Accrued Liabilities [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying Value of Liabilities Recorded on the Consolidated Balance Sheets | 0 | (1,353) |
Walter Capital Opportunity Corp. [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Size of VIE | $ 24,866 | $ 194,556 |
Size of VIE defined | The size of the VIE is deemed to be WCO's net assets. |