Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 03, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Nationstar Mortgage Holdings Inc. | ' |
Entity Central Index Key | '0001520566 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 90,982,859 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $269,735 | $441,902 |
Restricted cash | 294,044 | 592,747 |
Accounts receivable | 3,060,382 | 5,636,482 |
Mortgage loans held for sale, $1,695,502 and $2,585,340 at fair value, respectively | 1,697,041 | 2,603,380 |
Mortgage loans held for investment, net of allowance for loan losses of $3,549 and $2,144 respectively | 195,432 | 211,050 |
Reverse mortgage interests | 1,956,952 | 1,434,506 |
Mortgage servicing rights, $2,898,209 and $2,488,283 at fair value, respectively | 2,910,640 | 2,503,162 |
Property and equipment, net of accumulated depreciation of $100,515 and $74,723 respectively | 121,635 | 119,185 |
Derivative financial instruments | 88,333 | 123,878 |
Other assets | 282,850 | 360,397 |
Total assets | 10,877,044 | 14,026,689 |
Liabilities and equity | ' | ' |
Notes payable | 3,532,743 | 6,984,351 |
Unsecured senior notes | 2,159,651 | 2,444,062 |
Payables and accrued liabilities | 1,344,895 | 1,308,450 |
Derivative financial instruments | 9,621 | 8,526 |
Mortgage servicing liabilities | 78,954 | 82,521 |
Other nonrecourse debt | 2,552,856 | 2,208,881 |
Total liabilities | 9,678,720 | 13,036,791 |
Commitments and contingencies – See Note 15 | 0 | 0 |
Preferred stock at $0.01 par value - 300,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock at $0.01 par value - 1,000,000 shares authorized, 90,975 shares and 90,330 shares issued at September 30, 2014 and December 31, 2013, respectively | 910 | 906 |
Additional paid-in-capital | 586,929 | 566,642 |
Retained earnings | 624,057 | 422,341 |
Treasury shares; 531 shares and 168 shares at cost, respectively | -18,449 | -6,944 |
Accumulated other comprehensive income | 0 | 1,963 |
Total Nationstar stockholders' equity | 1,193,447 | 984,908 |
Noncontrolling interest | 4,877 | 4,990 |
Total equity | 1,198,324 | 989,898 |
Total liabilities and equity | $10,877,044 | $14,026,689 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Mortgage loans held for sale at fair value | $1,695,502 | $2,585,340 |
Allowance for loan losses of mortgage loans held for investment, subject to nonrecourse debt | 3,549 | 2,144 |
Mortgage servicing rights at fair value | -2,898,209 | -2,488,283 |
Accumulated depreciation of property and equipment | $100,515 | $74,723 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 300,000,000 | 300,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | -1,000,000,000 | -1,000,000,000 |
Common stock, shares issued | 91,506,000 | 90,330,000 |
Common stock, shares outstanding | 90,975,000 | 90,330,000 |
Treasury Stock, Shares | 531,000 | 168,000 |
Unaudited_Consolidated_Stateme
Unaudited Consolidated Statements of Operations and Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Servicing fee income | $235,408 | $341,679 | $733,671 | $802,584 |
Other fee income | 126,101 | 84,203 | 346,366 | 186,877 |
Total fee income | 361,509 | 425,882 | 1,080,037 | 989,461 |
Gain on mortgage loans held for sale | 142,815 | 205,956 | 443,667 | 677,104 |
Total revenues | 504,324 | 631,838 | 1,523,704 | 1,666,565 |
Expenses and impairments: | ' | ' | ' | ' |
Salaries, wages and benefits | -160,757 | -193,258 | -471,404 | -499,875 |
General and Administrative Expense | 157,068 | 187,517 | 494,453 | 472,241 |
Loss on foreclosed real estate and other | 2,731 | 9,498 | 5,826 | 13,363 |
Occupancy | 6,668 | 5,581 | 23,385 | 18,797 |
Total expenses and impairments | 327,224 | 395,854 | 995,068 | 1,004,276 |
Other income (expense): | ' | ' | ' | ' |
Interest income | 43,314 | 63,903 | 130,198 | 145,948 |
Interest expense | -116,673 | -168,215 | -412,695 | -378,500 |
Gain (Loss) on Sale of Properties | 4,898 | 0 | 4,898 | 0 |
Gain on interest rate swaps and caps | 940 | 400 | 2,808 | 2,457 |
Total other income (expense) | -67,521 | -103,912 | -274,791 | -230,095 |
Income before taxes | 109,579 | 132,072 | 253,845 | 432,194 |
Income tax expense | -1,700 | 50,187 | 52,242 | 164,233 |
Net income | 111,279 | 81,885 | 201,603 | 267,961 |
Less: Net gain (loss) attributable to noncontrolling interests | 54 | 0 | -113 | 0 |
Net income attributable to Nationstar | 111,225 | 81,885 | 201,716 | 267,961 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Change in value of designated cash flow hedge | 0 | -407 | -1,963 | 1,412 |
Comprehensive income | $111,225 | $81,478 | $199,753 | $269,373 |
Earnings per share: | ' | ' | ' | ' |
Basic earnings per share (in dollars per share) | $1.23 | $0.92 | $2.24 | $3 |
Diluted earnings per share (in dollars per share) | $1.22 | $0.91 | $2.22 | $2.97 |
Weighted average shares: | ' | ' | ' | ' |
Basic (shares) | 90,120 | 89,477 | 89,990 | 89,398 |
Dilutive effect of stock awards (shares) | 1,001 | 921 | 690 | 752 |
Diluted (shares) | 91,121 | 90,398 | 90,680 | 90,150 |
Dividends declared per share (in dollars per share) | $0 | $0 | $0 | $0 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock [Member] | Common Shares Held By Subsidiary | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
In Thousands, unless otherwise specified | ||||||||
Balance at Dec. 31, 2012 | $757,682 | $905 | $556,056 | $205,287 | $0 | ($4,566) | $0 | $0 |
Balance, shares at Dec. 31, 2012 | ' | 90,460 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | ' | 82 | ' | ' | ' | ' | ' | ' |
Share-based compensation | 0 | 3 | -3 | ' | ' | ' | ' | ' |
LLC conversion of equity to common shares | 1,963 | 0 | ' | ' | ' | ' | ' | ' |
LLC conversion of equity to common shares, shares | ' | 0 | ' | ' | ' | ' | ' | ' |
Common stock issuance | 10,574 | 0 | 10,574 | ' | ' | ' | ' | ' |
Change in value of designated cash flow hedge | ' | ' | ' | ' | ' | ' | 1,963 | ' |
Stock Issued During Period, Shares, Treasury Stock Reissued | ' | 0 | ' | ' | ' | ' | ' | ' |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | ' | ' | ' | 0 | ' | ' | ' | ' |
Redemption of shares for stock vesting | -6,944 | ' | 0 | ' | 6,944 | ' | ' | ' |
Treasury shares; 531 shares and 168 shares at cost, respectively | -6,944 | ' | ' | ' | ' | ' | ' | ' |
Tax related share-based settlement of units by members | ' | ' | ' | ' | ' | 0 | ' | ' |
Net tax benefit for stock grants issued | 4,579 | ' | 4,579 | ' | ' | ' | ' | ' |
Treasury Stock, Shares, Acquired | ' | 0 | ' | ' | ' | ' | ' | ' |
Treasury Stock, Shares, Retired | ' | -212 | ' | ' | ' | ' | ' | ' |
Treasury Stock, Retired, Cost Method, Amount | 0 | -2 | -4,564 | ' | ' | 4,566 | ' | ' |
Noncontrolling interest | 4,990 | ' | ' | ' | ' | ' | ' | ' |
Contributions from joint venture member to noncontrolling interests | 4,990 | ' | ' | ' | ' | ' | ' | 4,990 |
Net income attributable to Nationstar | 217,054 | ' | ' | 217,054 | ' | 0 | ' | ' |
Total equity | 989,898 | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | 984,908 | 906 | 566,642 | 422,341 | -6,944 | 0 | 1,963 | 4,990 |
Balance, shares at Dec. 31, 2013 | ' | 90,330 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | ' | 1,176 | ' | ' | ' | ' | ' | ' |
Share-based compensation | 0 | 4 | -4 | 0 | 0 | 0 | 0 | 0 |
Change in value of designated cash flow hedge | -1,963 | 0 | 0 | 0 | 0 | 0 | -1,963 | 0 |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 11,344 | ' | 11,344 | ' | ' | ' | ' | ' |
Redemption of shares for stock vesting | -4,755 | ' | ' | ' | ' | ' | ' | ' |
Treasury shares; 531 shares and 168 shares at cost, respectively | -18,449 | ' | ' | ' | ' | ' | ' | ' |
Excess tax benefit from share-based compensation | 2,197 | ' | ' | ' | ' | ' | ' | ' |
Net tax benefit for stock grants issued | 2,197 | ' | 2,197 | 0 | ' | ' | ' | ' |
Treasury Stock, activity for period | -4,755 | ' | 6,750 | ' | -11,505 | ' | ' | ' |
Noncontrolling interest | 4,877 | ' | ' | ' | ' | ' | ' | ' |
Contributions from joint venture member to noncontrolling interests | 0 | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Nationstar | 201,716 | ' | ' | 201,716 | ' | ' | 0 | ' |
Less: Net gain (loss) attributable to noncontrolling interests | -113 | ' | ' | ' | ' | ' | ' | -113 |
Total equity | 1,198,324 | ' | ' | ' | ' | ' | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 201,603 | ' | ' | ' | ' | ' | ' | ' |
Balance at Sep. 30, 2014 | $1,193,447 | $910 | $586,929 | $624,057 | ($18,449) | $0 | $0 | $4,877 |
Balance, shares at Sep. 30, 2014 | ' | 91,506 | ' | ' | ' | ' | ' | ' |
Unaudited_Consolidated_Stateme1
Unaudited Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Interest Paid | $386 | $282,417,000 |
Income Taxes Paid, Net | -15,847 | 112,392,000 |
Operating activities | ' | ' |
Net income attributable to Nationstar | 201,716 | 267,961 |
Adjustments to reconcile net income to net cash (used in) / provided by operating activities: | ' | ' |
Share-based compensation | 11,344 | 8,140 |
Net tax effect of stock grants | -2,197 | -2,660 |
Loss on foreclosed real estate and other | 5,826 | 13,363 |
Gain on mortgage loans held for sale | -443,667 | -677,104 |
Mortgage loans originated and purchased, net of fees | -16,548,058 | -17,166,460 |
Proceeds on sale of and payments of mortgage loans held for sale | -17,757,055 | -15,376,486 |
Gain on derivatives including ineffectiveness | -2,808 | -2,457 |
Cash settlement on derivative financial instruments | 1,352 | -4,544 |
Depreciation and amortization | 29,963 | 16,686 |
Amortization of premiums/discounts | 16,660 | 39,261 |
Fair value changes in excess spread financing | 61,080 | 33,229 |
Fair value changes and amortization/accretion of mortgage servicing rights | -128,227 | 38,117 |
Fair value change in mortgage servicing rights financing liability | -38,260 | 0 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable, including servicing advances, net | 601,549 | -96,120 |
Reverse mortgage interests | -572,544 | -460,534 |
Other assets | 62,286 | -331,855 |
Payables and accrued liabilities | -25,460 | 503,061 |
Net cash attributable to operating activities | 1,244,064 | -2,521,664 |
Investing activities | ' | ' |
Property and equipment additions, net of disposals | -41,567 | -47,883 |
Proceeds from Sale of Buildings | 10,412 | 0 |
Purchases of reverse mortgage servicing rights and interests | 0 | 15,059 |
Purchase of forward mortgage servicing rights, net of liabilities incurred | -317,247 | -2,331,658 |
Proceeds on sale of servicer advances | 512,527 | 0 |
Loan repurchases from Ginnie Mae | -9,134 | 0 |
Proceeds from sales of REO | 70,480 | 60,389 |
Acquisitions, net | -18,000 | -78,200 |
Net cash attributable to investing activities | 207,471 | -2,412,411 |
Financing activities | ' | ' |
Transfers (to) / from restricted cash, net | -282,289 | 348,499 |
Issuance of unsecured senior notes, net | 0 | 1,365,244 |
Repayments of Unsecured Debt | -285,000 | 0 |
Debt financing costs | -11,461 | -46,784 |
Increase (decrease) in notes payable | -1,942,141 | 3,042,623 |
Issuance of excess spread financing | 150,951 | 707,640 |
Repayment of excess spread financing | -135,897 | -77,505 |
Increase in participating interest financing in reverse mortgage interests | -279,636 | -422,787 |
Proceeds from mortgage servicing rights financing | 52,835 | 0 |
Repayment of nonrecourse debt – Legacy assets | -12,356 | -9,925 |
Due to financial services companies | ' | 0 |
Contributions from joint venture member to noncontrolling interests | 0 | 4,990 |
Net tax benefit for stock grants issued | 2,197 | 2,660 |
Redemption of shares for stock vesting | -4,755 | -6,554 |
Net cash attributable to financing activities | -1,623,702 | 5,056,677 |
Net increase (decrease) in cash and cash equivalents | -172,167 | 122,602 |
Cash and cash equivalents at beginning of period | 441,902 | 152,649 |
Cash and cash equivalents at end of period | 269,735 | 275,251 |
Supplemental disclosures of non-cash activities | ' | ' |
Supplemental disclosures of non-cash activities | 2,901 | 3,238 |
Transfer of reverse mortgage interest to REO at fair value | 50,098 | 12,036 |
Mortgage servicing rights resulting from sale or securitization of mortgage loans | 185,822 | 177,583 |
Tax related share-based settlement of common stock | 4,755 | 6,554 |
Liabilities incurred from purchase of forward mortgage servicing rights | 63,231 | 78,091 |
Change in value of designated cash flow hedge | ($1,963) | $1,412 |
Nature_of_Business_and_Basis_o
Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Nature of Business and Basis of Presentation | ' |
Nature of Business and Basis of Presentation | |
Nature of Business | |
Nationstar Mortgage Holdings Inc. (Nationstar or the Company), a Delaware corporation, earns fees through the delivery of quality servicing, origination and transaction based services related principally to single-family residences. | |
Nationstar presents financial performance utilizing reportable segments aligned with how the operations are managed. The Servicing segment reflects the results of operations attributable to residential mortgage servicing rights (MSRs) acquired from and loans subserviced for third-parties and originated loans. The Solutionstar segment reflects financial performance related to real estate services (e.g., collateral valuation, title, closing services) and real estate exchange, including our HomeSearch.com residential market portal. The Originations segment includes fees associated with loan originations and gains from the sale and securitization of loans. The Corporate and Other segment encompasses certain identified corporate costs as well as the 'Legacy' portfolio which includes primarily all subprime mortgage loans originated in the latter portion of 2006 and 2007 or acquired from Nationstar's predecessor. | |
Basis of Presentation | |
The consolidated financial statements include the accounts of Nationstar, its wholly-owned subsidiaries, and other entities in which the Company has a controlling financial interest, and those variable interest entities (VIEs) where Nationstar's wholly-owned subsidiaries are the primary beneficiaries. Intercompany balances and transactions have been eliminated. Results of operations, assets and liabilities of VIEs are included from the date that Nationstar became the primary beneficiary through the date Nationstar ceases to be the primary beneficiary. | |
The interim consolidated financial statements are unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results of the interim periods have been included. The consolidated interim financial statements of Nationstar have been prepared in accordance with generally accepted accounting principles for interim information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (SEC). Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States (GAAP) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Nationstar's Annual Report on Form 10-K filed on February 27, 2014. The results of operations for the interim periods disclosed are not necessarily indicative of the results that may be expected for the full year or any future period. Certain prior period amounts have been reclassified to conform to the current period presentation. Nationstar evaluated subsequent events through the date these interim consolidated financial statements were issued. |
Recent_Accounting_Developments
Recent Accounting Developments | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Recent Accounting Developments | ' |
Recent Accounting Developments | |
Accounting Standard Update No 2014-04, Receivables: Troubled Debt Restructuring by Creditors Reclassification of | |
Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (ASU 2014-04), was created to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage so that the asset would be derecognized in the receivable and recognized as real estate property. This update specifies that an in substance repossession occurs when either the creditor has obtained the legal title to the property after a foreclosure or the borrower has transferred all interest in the property to the creditor through a deed in lieu of foreclosure or similar legal agreement so that at that time the asset should be reclassified from a loan receivable to real estate property. This update also provides that a disclosure of the amount of foreclosed residential real estate property and the recorded investment in consumer mortgage loans collateralized by residential real estate property that is in the process of foreclosure must be included in both interim and annual financial reports. This amendment update is effective for periods for fiscal years beginning after December 15, 2014. The adoption of ASU 2014-04 is not expected to have a material impact on our financial condition, liquidity or results of operations. | |
Accounting Standards Update No 2014-09, Revenue from Contracts with Customers (ASU 2014-09), was created to standardize revenue recognition process between public and private companies as well as across industries in an effort to more closely align GAAP revenue recognition with international standards to provide a more comparable revenue number for the users of the financial statements. The standard outlines that for all contracts, revenue should be recognized when or as the entity satisfies a performance obligation. Revenue is recognized either over a period or at one point in time in accordance with how the control of the service or good is transferred. This amendment update is for all year-end and interim periods beginning after December 15, 2016 and early application is not permitted. The Company is evaluating the impact of the adoption of ASU 2014-09 on our financial condition, liquidity and results of operations. | |
Accounting Standards Update No 2014-11, Transfers and Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (ASU 2014-11), was created to provide greater disclosure in reference to repurchase agreements and similar transactions. For repurchase agreements, the entity must disclose the carrying amount of the assets derecognized at the derecognition date, the amount of gross proceeds received by the transferor at the time of derecognition, information about the transferor’s ongoing exposure to economic return on the transferred financial assets, amounts that are reported in the balance sheet arising from the transactions, disaggregation of the gross obligation by class of collateral pledged, remaining contractual tenor of the agreement, and a discussion of the potential risks associated with the agreements and the related collateral pledged and how these risks are managed. This amendment update is effective for year-end periods beginning after December 15, 2014 and early application is not permitted. The adoption of ASU 2014-11 is not expected to have a material impact on our financial condition, liquidly or results of operations. | |
ASU No. 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, (ASU 2014-12), requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. The adoption of ASU 2014-12 is not expected to have a material impact on our financial condition, liquidity or results of operation. | |
Accounting Standards Update No. 2014-14, Receivables - Troubled Debt Restructuring by Creditors (Subtopic 310-40), Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure, (ASU 2014-14), streamlines how companies classify government-guaranteed mortgage loans upon foreclosure. This update specifies that the mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure when specific conditions are met. The conditions are that the government guarantee is not separable from the loan prior to foreclosure, at foreclosure, the creditor has the intent and ability to convey property to guarantor and make a claim on the guarantee and the amount recoverable under the guarantee is fixed and determinable. ASU 2014-14 is effective for all interim and annual periods beginning after December 14, 2014. Upon the adoption ASU 2014-14, the Company will appropriately reclassify amounts previously classified as real estate owned into accounts receivable on its consolidated balance sheet. | |
Accounting Standards Update No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, (ASU 2014-15), creates a consistency in the disclosures made by an entity when there is doubt that the entity will continue as a going concern. The updates requires that management must evaluate whether there are conditions that would prevent the entity to continue as a going concern and if there is substantial doubt, they must disclose their plans to alleviate the substantial doubt or mitigate the conditions that create it within a footnote disclosure. ASU 2014-15 also provides the definition of substantial doubt in order to provide consistency as to when an entity should provide a footnote disclosure. ASU 2014-15 is effective for annual periods ending after December 15, 2016. The adoption of ASU 2014-15 is not expected to have a material impact on our financial condition, liquidity or results of operations. |
Variable_Interest_Entities_and
Variable Interest Entities and Securitizations | 9 Months Ended | ||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||
Variable Interest Entities and Securitizations [Abstract] | ' | ||||||||||||||||||||||||||||||
Variable Interest Entities and Securitizations | ' | ||||||||||||||||||||||||||||||
Securitizations and Financings | |||||||||||||||||||||||||||||||
In the normal course of business, Nationstar enters into various types of securitizations and asset-backed financing arrangements secured by assets. For disclosure purposes, Nationstar aggregates these transactions based upon whether the transaction was treated as a sale (securitizations), accounted for as a secured borrowing (financings) or consolidated because the Company is the primary beneficiary of a variable interest entity (VIE). | |||||||||||||||||||||||||||||||
Securitizations Treated as Sales | |||||||||||||||||||||||||||||||
With respect to securitizations of residential mortgage loans, Nationstar’s continuing involvement typically includes acting as servicer for the mortgage loans held by the trust and holding beneficial interests in the trust. Nationstar’s responsibilities as servicer include, among other things, collecting monthly payments, maintaining escrow accounts, providing periodic reports and managing insurance in exchange for a contractually specified servicing fee. The beneficial interests held consist of both | |||||||||||||||||||||||||||||||
subordinate and residual securities that were retained at the time of securitization. These securitizations generally do not result | |||||||||||||||||||||||||||||||
in consolidation of the VIE as the beneficial interests that the Company holds in the securitization trusts have no value and no potential for significant cash flows in the future. In addition, at September 30, 2014 and December 31, 2013, the Company had no other significant assets in our consolidated financial statements related to these trusts. The Company has no obligation to provide financial support to unconsolidated securitization trusts and has provided no such support. The creditors of the trusts can look only to the assets of the trusts themselves for satisfaction of the debt issued by the trusts and have no recourse against the assets of Nationstar. The general creditors of Nationstar have no claim on the assets of the trusts. Nationstar's exposure to loss as a result of its continuing involvement with the trusts is limited to the carrying values, if any, of its investments in the residual and subordinate securities of the trusts, the MSRs that are related to the trusts and the advances to the trusts. The Company considers the probability of loss arising from its advances to the trust to be remote because of its position ahead of most of the other liabilities of the trusts. See Note 4, Accounts Receivable, and Note 6, Mortgage Servicing Rights, for additional information regarding advances and MSRs. | |||||||||||||||||||||||||||||||
Gains and losses on the assets transferred are recognized based on the carrying amount of the financial assets involved in the transfer, allocated between the assets transferred and the retained interests based on their relative fair value at the date of transfer, other than MSRs. Retained MSRs are recorded at their fair value on the transfer date. | |||||||||||||||||||||||||||||||
A summary of the outstanding collateral and certificate balances for securitization trusts for which Nationstar was the transferor, including any retained beneficial interests and MSRs, that were not consolidated by Nationstar for the periods indicated are as follows: | |||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||
Total collateral balances | $ | 3,368,452 | $ | 3,831,473 | |||||||||||||||||||||||||||
Total certificate balances | 3,394,555 | 3,843,694 | |||||||||||||||||||||||||||||
A summary of mortgage loans transferred to unconsolidated securitization trusts that are 60 days or more past due and the credit losses incurred in the unconsolidated securitization trusts are presented below: | |||||||||||||||||||||||||||||||
Principal Amount of Loans 60 Days or More Past Due | 30-Sep-14 | 30-Sep-13 | |||||||||||||||||||||||||||||
Unconsolidated securitization trusts | $ | 887,105 | $ | 1,183,582 | |||||||||||||||||||||||||||
For the three | For the nine | ||||||||||||||||||||||||||||||
months ended September 30, | months ended September 30, | ||||||||||||||||||||||||||||||
Credit Losses | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||
Unconsolidated securitization trusts | $ | 71,757 | $ | 57,879 | $ | 219,189 | $ | 185,612 | |||||||||||||||||||||||
Certain cash flows received from securitization trusts related to the transfers of mortgage loans accounted for as sales for the dates indicated were as follows: | |||||||||||||||||||||||||||||||
For the three | For the nine | ||||||||||||||||||||||||||||||
months ended September 30, | months ended September 30, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Servicing Fees Received | Loan | Servicing Fees Received | Loan | Servicing Fees Received | Loan | Servicing Fees Received | Loan | ||||||||||||||||||||||||
Repurchases | Repurchases | Repurchases | Repurchases | ||||||||||||||||||||||||||||
Unconsolidated securitization trusts | $ | 2,632 | $ | — | $ | 9,515 | $ | — | 20,818 | $ | — | $ | 29,219 | $ | — | ||||||||||||||||
Financings | |||||||||||||||||||||||||||||||
Nationstar maintains various agreements with special purpose entities under which Nationstar transfers mortgage loans in exchange for cash. These entities issue debt supported by collections on the transferred mortgage loans. These transfers do not qualify for sale treatment because Nationstar continues to retain control over the transferred assets. As a result, Nationstar accounts for these transfers as financings and continues to carry the transferred assets and recognizes the related liabilities on Nationstar’s consolidated balance sheets. Collections on the mortgage loans pledged to the entities are used to repay principal and interest and to pay the expenses of the entity. The holders of these beneficial interests issued by these entities do not have recourse to Nationstar and can only look to the assets of the entities themselves for satisfaction of the debt. | |||||||||||||||||||||||||||||||
Nationstar has issued pools of Home Equity Conversion Mortgage Backed Securities to third-party investors collateralized by advances on the related Home Equity Conversion Mortgages. These transfers do not meet the requirement for sale accounting and are accounted for as secured financings with the reverse mortgage interests and the related financing included in the consolidated financial statements of Nationstar. The assets and liabilities are reported in reverse mortgage interest and other nonrecourse debt, respectively, on Nationstar's consolidated balance sheet. | |||||||||||||||||||||||||||||||
VIEs | |||||||||||||||||||||||||||||||
Nationstar also transfers servicing advance receivables to special purpose entities in exchange for cash. We consolidate these entities because Nationstar is the primary beneficiary of the VIE. These VIEs issue debt supported by collections on the transferred advances. Nationstar made these transfers under the terms of the advance facility agreements. The Company classifies the transferred advances on its consolidated balance sheets as accounts receivable and the related liabilities as notes payable. | |||||||||||||||||||||||||||||||
A summary of the assets and liabilities of Nationstar’s transactions with VIEs included in the Company’s consolidated financial statements as of September 30, 2014 and December 31, 2013 is presented in the following tables: | |||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||
Transfer Included in the Consolidated Financial Statements | Reverse Secured Borrowings | Transfer Included in the Consolidated Financial Statements | Reverse Secured Borrowings | ||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||
Restricted cash | $ | 98,115 | $ | — | $ | 272,188 | $ | — | |||||||||||||||||||||||
Reverse mortgage interests | — | 1,296,420 | — | 1,039,645 | |||||||||||||||||||||||||||
Accounts receivable | 1,170,414 | — | 4,031,444 | — | |||||||||||||||||||||||||||
Mortgage loans held for investment, net | 193,429 | — | 208,263 | — | |||||||||||||||||||||||||||
Derivative financial instruments | 1,349 | — | 3,691 | — | |||||||||||||||||||||||||||
Other assets | 1,550 | — | 2,375 | — | |||||||||||||||||||||||||||
Total Assets | $ | 1,464,857 | $ | 1,296,420 | $ | 4,517,961 | $ | 1,039,645 | |||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||||||||
Notes payable | $ | 1,003,200 | $ | — | $ | 3,672,726 | $ | — | |||||||||||||||||||||||
Payables and accrued liabilities | 1,357 | — | 4,242 | — | |||||||||||||||||||||||||||
Nonrecourse debt–Legacy Assets | 78,481 | — | 89,107 | — | |||||||||||||||||||||||||||
Participating interest financing | — | 1,367,382 | — | 1,080,718 | |||||||||||||||||||||||||||
Total Liabilities | $ | 1,083,038 | $ | 1,367,382 | $ | 3,766,075 | $ | 1,080,718 | |||||||||||||||||||||||
Accounts_Receivable
Accounts Receivable | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Accounts Receivable | ' | |||||||
Accounts Receivable | ||||||||
Accounts receivable consists primarily of accrued revenues, including accrued servicing fees and commissions, accrued interest on mortgage loans and securitizations and borrower advances made to securitization trusts, and other third parties as required under various servicing agreements related to delinquent loans, which are ultimately repaid from the securitization trusts or the borrower. | ||||||||
Accounts receivable consist of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Servicer advances, net of purchase discount $8,875 and $62,217, respectively | $ | 2,594,106 | $ | 5,099,670 | ||||
Reverse mortgage servicer advances | 201,541 | 93,494 | ||||||
Accrued revenues | 158,861 | 134,440 | ||||||
Receivables from trusts and agencies | 84,171 | 105,917 | ||||||
Accrued interest | 2,805 | 6,970 | ||||||
Other | 18,898 | 195,991 | ||||||
Total accounts receivable | $ | 3,060,382 | $ | 5,636,482 | ||||
During the three month period ending September 30, 2014, there was no accretion of purchase discounts. However for the nine month period ended September 30, 2014, the Company accreted $8.4 million of the purchase discounts from recovered servicer advances into interest income. During the three and nine month periods ended September 30, 2013, the Company accreted $11.3 million and $22.5 million, respectively, of the purchase discounts from recovered servicer advances. | ||||||||
In 2014, Nationstar sold approximately $2.2 billion of servicer advances to a joint venture entity capitalized by New Residential and other investors. See Note 17, Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC, for additional information. Consequently, the related purchase discount of $52.9 million was eliminated from Nationstar's consolidated balance sheet. See Note 10, Indebtedness, for additional information. | ||||||||
As of September 30, 2014 and December 31, 2013, Nationstar carried an allowance for uncollectible servicer advances of $94.4 million and $40.7 million respectively, primarily related to acquired interest advances on Ginnie Mae loans originally purchased at a discount. |
Mortgage_Loans_Held_for_Sale_a
Mortgage Loans Held for Sale and Investment | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Mortgage Loans Held for Sale and Investment [Abstract] | ' | ||||||||
Mortgage Loans Held for Sale and Investment | ' | ||||||||
Mortgage Loans Held for Sale and Investment, including Reverse Mortgage Interests | |||||||||
Mortgage loans held for sale | |||||||||
Nationstar maintains a strategy of originating mortgage loan products primarily for the purpose of selling to GSEs or other third-party investors in the secondary market. Generally, all newly originated mortgage loans held for sale are delivered to third-party purchasers or securitized shortly after origination. | |||||||||
Mortgage loans held for sale consist of the following: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Mortgage loans held for sale – unpaid principal balance | $ | 1,629,030 | $ | 2,532,881 | |||||
Mark-to-market adjustment, included in Gain on Mortgage Loans Held for Sale | 68,011 | 70,499 | |||||||
Total mortgage loans held for sale | $ | 1,697,041 | $ | 2,603,380 | |||||
Nationstar had $36.6 million and $69.5 million mortgage loans held for sale on nonaccrual status at September 30, 2014 and December 31, 2013, respectively. The majority of loans on nonaccrual status are Ginnie Mae repurchased loans that were repurchased solely to modify the loans. Upon completion of the modification the loans are expected to be subject to sale to a GSE. The fair value of loans held for sale on nonaccrual status at September 30, 2014 and December 31, 2013, was approximately $30.8 million and $63.5 million, respectively. | |||||||||
A reconciliation of the changes in mortgage loans held for sale for the dates indicated is presented in the following table: | |||||||||
For the nine months ended | |||||||||
September 30, 2014 | September 30, 2013 | ||||||||
Mortgage loans held for sale – beginning balance | $ | 2,603,380 | $ | 1,480,537 | |||||
Mortgage loans originated and purchased, net of fees | 16,548,058 | 17,166,460 | |||||||
Proceeds on sale of and payments of mortgage loans held for sale | (17,449,261 | ) | (14,780,987 | ) | |||||
Transfer of mortgage loans held for sale to held for investment or other assets | (5,136 | ) | 2,450 | ||||||
Mortgage loans held for sale – ending balance | $ | 1,697,041 | $ | 3,868,460 | |||||
For certain loans sold to Ginnie Mae, Nationstar, as the servicer has the right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. The majority of Ginnie Mae repurchased loans are repurchased solely with the intent to repool into new Ginnie Mae securitizations or to otherwise sell to third-party investors. For the nine months ended September 30, 2014 and September 30, 2013, Nationstar repurchased $3.1 billion and $0.7 billion of mortgage loans, respectively, out of Ginnie Mae securitization pools. | |||||||||
Mortgage loans held for investment, net | |||||||||
Mortgage loans held for investment, net consist of nonconforming mortgage loans securitized which serve as collateral for the issued nonrecourse debt principally associated with our Legacy Assets. | |||||||||
An allowance for loan losses is established by recording a provision for loan losses in the Consolidated Statement of Income and Comprehensive Income when management believes a loss is probable on a loan held for investment. When management determines that a loan held for investment is partially or fully uncollectible, the loss is charged against the allowance for loan losses. Recoveries on losses previously charged to the allowance are credited to the allowance at the time the recovery is collected. | |||||||||
Mortgage loans held for investment, net as of the dates indicated include: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Mortgage loans held for investment, net – unpaid principal balance | $ | 283,115 | $ | 305,085 | |||||
Transfer discount: | |||||||||
Accretable | (16,025 | ) | (17,362 | ) | |||||
Non-accretable | (68,109 | ) | (74,529 | ) | |||||
Allowance for loan losses | (3,549 | ) | (2,144 | ) | |||||
Total mortgage loans held for investment, net | $ | 195,432 | $ | 211,050 | |||||
The changes in accretable yield on loans transferred to mortgage loans held for investment, net were as follows: | |||||||||
For the nine months ended September 30, 2014 | Year ended December 31, 2013 | ||||||||
Accretable Yield | |||||||||
Balance at the beginning of the period | $ | 17,362 | $ | 19,749 | |||||
Accretion | (2,258 | ) | (3,235 | ) | |||||
Reclassifications from (to) nonaccretable discount | 921 | 848 | |||||||
Balance at the end of the period | $ | 16,025 | $ | 17,362 | |||||
Nationstar may periodically modify the terms of any outstanding mortgage loans held for investment, net for loans that are either in default or in imminent default. Modifications often involve reduced payments by borrowers, modification of the original terms of the mortgage loans, forgiveness of debt and/or modified servicing advances. As a result of the volume of modification agreements entered into, the estimated average outstanding life in this pool of mortgage loans has been extended. Nationstar records interest income on the transferred loans on a level-yield method. To maintain a level-yield on these transferred loans over the estimated extended life, Nationstar reclassified approximately $0.9 million of transfer discount to accretable yield for the nine months ended September 30, 2014 and $0.8 million for the year ended December 31, 2013. Furthermore, Nationstar considers the decrease in principal, interest, and other cash flows expected to be collected arising from the transferred loans as an impairment. | |||||||||
Delinquency status and loan-to-value ratio (LTV) are common credit quality indicators that Nationstar monitors and utilizes in its evaluation of the adequacy of the allowance for loan losses, of which the primary indicator of credit quality is delinquency status. Loan delinquencies and unpaid principal balances are updated based upon collection activity. Collateral values are updated from third-party providers on a periodic basis. The collateral values used to derive the LTVs are obtained at various dates, but the majority are within the last twenty-four months. For an event requiring a decision based at least in part on the collateral value, Nationstar takes its last known value provided by a third party and then adjusts the value based on the applicable home price index. | |||||||||
Reverse mortgage interests | |||||||||
Reverse mortgage interests include advances, recoverable upon the sale of the subject property, and defaulted advances that can be securitized and sold. As of September 30, 2014 and December 31, 2013, Nationstar had $2.0 billion and $1.4 billion, respectively, in outstanding reverse mortgage interests.When Nationstar determines that a loss on the advance balance is probable and that the carrying balance may be partially or fully uncollectible, an allowance for loan loss is established by recording a provision for loan losses in the consolidated statement of income and comprehensive income. | |||||||||
Reverse mortgage interests as of the dates indicated include: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
UPB of advances previously securitized by Nationstar | $ | 1,296,420 | $ | 1,039,645 | |||||
UPB of advances not securitized | 661,962 | 395,663 | |||||||
Allowance for losses - reverse mortgage interests | (1,430 | ) | (802 | ) | |||||
Total reverse mortgage interests | $ | 1,956,952 | $ | 1,434,506 | |||||
Nationstar collectively evaluates all reverse mortgage interest assets for impairment. |
Mortgage_Servicing_Rights_MSRs
Mortgage Servicing Rights (MSRs) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Transfers and Servicing [Abstract] | ' | ||||||||||||||||||||
Mortgage Servicing Rights (MSRs) | ' | ||||||||||||||||||||
Mortgage Servicing Rights | |||||||||||||||||||||
MSRs at fair value | |||||||||||||||||||||
MSRs arise from contractual agreements between Nationstar and investors in mortgage securities and mortgage loans. Nationstar records MSR assets when it sells loans on a servicing-retained basis, at the time of a securitization that qualifies and meets requirements for sale accounting or through the acquisition or assumption of the right to service a financial asset. Under these contracts, Nationstar performs loan servicing functions in exchange for fees and other remuneration. Nationstar has elected to record these MSRs at fair value. | |||||||||||||||||||||
The fair value of the MSRs is based upon the present value of the expected future cash flows related to servicing these loans. Nationstar receives a base servicing fee ranging from 0.25% to 0.50% annually on the remaining outstanding principal balances of the loans. The servicing fees are collected from investors. Nationstar determines the fair value of the MSRs by the use of a cash flow model that incorporates prepayment speeds, delinquencies, discount rate, ancillary fees and other assumptions (including servicing costs) that management believes are consistent with the assumptions other major market participants use in valuing the MSRs. The nature of the forward loans underlying the MSRs affects the assumptions used in the cash flow model. Nationstar obtains third-party valuation for boarded MSRs to assess the reasonableness of the fair value calculated by the cash flow model. | |||||||||||||||||||||
Most of the forward loans underlying the MSRs carried at fair value that are owned by Nationstar are credit sensitive in nature and the value of these MSRs are more likely to be affected by changes in credit losses than by interest rate movement. The remaining forward loans underlying Nationstar’s MSRs held at fair value are prime agency and government conforming residential mortgage loans for which the value of these MSRs are more likely to be affected by interest rate movement than changes in credit losses. | |||||||||||||||||||||
Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated: | |||||||||||||||||||||
Credit Sensitive MSRs | September 30, 2014 | December 31, 2013 | |||||||||||||||||||
Discount rate | 12.15 | % | 14.17 | % | |||||||||||||||||
Total prepayment speeds | 17.24 | % | 20.34 | % | |||||||||||||||||
Expected weighted-average life | 5.59 years | 4.63 years | |||||||||||||||||||
Credit losses | 7.35 | % | 22.87 | % | |||||||||||||||||
Interest Rate Sensitive MSRs | September 30, 2014 | December 31, 2013 | |||||||||||||||||||
Discount rate | 9.6 | % | 10.5 | % | |||||||||||||||||
Total prepayment speeds | 9.77 | % | 8.97 | % | |||||||||||||||||
Expected weighted-average life | 7.01 years | 7.88 years | |||||||||||||||||||
Credit losses | 2.22 | % | 9.12 | % | |||||||||||||||||
Changes in assumptions used to estimate the fair value of MSRs reflect changes in our view of market conditions affecting MSR values as well as changes based on the performance in the underlying pools of loans. | |||||||||||||||||||||
Discount rates were reduced to reflect increasing market trading multiples. Prepayment speed on interest sensitive loans increased due to a decline in mortgage interest rates over the period. | |||||||||||||||||||||
Reduced prepayment speeds in credit sensitive loans along with improved credit losses in both credit and interest sensitive pools are driven by lower overall actual prepayments as well as a higher proportion of voluntary versus involuntary prepayments. | |||||||||||||||||||||
The activity of MSRs carried at fair value is as follows for the dates indicated: | |||||||||||||||||||||
For the nine months ended | For the year ended | ||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||
Fair value at the beginning of the period | $ | 2,488,283 | $ | 635,860 | |||||||||||||||||
Additions: | |||||||||||||||||||||
Servicing resulting from transfers of financial assets | 185,822 | 248,381 | |||||||||||||||||||
Purchases of servicing assets | 353,450 | 1,545,584 | |||||||||||||||||||
Changes in fair value: | |||||||||||||||||||||
Due to changes in valuation inputs or assumptions used in the valuation model | 49,779 | 355,586 | |||||||||||||||||||
Other changes in fair value | (179,125 | ) | (297,128 | ) | |||||||||||||||||
Fair value at the end of the period | $ | 2,898,209 | $ | 2,488,283 | |||||||||||||||||
UPB of forward loans serviced for others | |||||||||||||||||||||
Credit sensitive loans | $ | 242,991,593 | $ | 266,757,777 | |||||||||||||||||
Interest sensitive loans | 75,980,389 | 56,056,362 | |||||||||||||||||||
Total owned loans | $ | 318,971,982 | $ | 322,814,139 | |||||||||||||||||
The $49.8 million in changes in fair value due to valuation inputs or assumptions for the nine months ended September 30, 2014 includes $64.6 million in scheduled principal payments. | |||||||||||||||||||||
The following table shows the hypothetical effect on the fair value of the MSRs using various unfavorable variations of the expected levels of certain key assumptions used in valuing these assets at September 30, 2014 and December 31, 2013: | |||||||||||||||||||||
Discount Rate | Total Prepayment | Credit Losses | |||||||||||||||||||
Speeds | |||||||||||||||||||||
100 bps | 200 bps | 10% | 20% | 10% | 20% | ||||||||||||||||
Adverse | Adverse | Adverse | Adverse | Adverse | Adverse | ||||||||||||||||
Change | Change | Change | Change | Change | Change | ||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Mortgage servicing rights | $ | (109,213 | ) | $ | (205,224 | ) | $ | (107,917 | ) | $ | (206,835 | ) | $ | (37,922 | ) | $ | (75,760 | ) | |||
31-Dec-13 | |||||||||||||||||||||
Mortgage servicing rights | $ | (74,681 | ) | $ | (151,899 | ) | $ | (101,590 | ) | $ | (195,445 | ) | $ | (89,958 | ) | $ | (178,669 | ) | |||
These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a 10% variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors (i.e., a decrease in total prepayment speeds may result in an increase in credit losses), which could impact the above hypothetical effects. | |||||||||||||||||||||
MSRs at amortized cost | |||||||||||||||||||||
Additionally, Nationstar owns servicing rights for reverse mortgage loans. For this class of servicing rights, Nationstar applies the amortization method (e.g., lower of cost or market) with the capitalized cost of the MSRs amortized in proportion and over the period of the estimated net future servicing income and recognized as an adjustment to servicing fee income. The expected period of the estimated net servicing income is based, in part, on the expected prepayment period of the underlying reverse mortgages. This class of MSRs is periodically evaluated for impairment. For purposes of measuring impairment, MSRs are stratified based on predominant risk characteristics of the underlying serviced loans. These risk characteristics include loan type (fixed or adjustable rate), term and interest rate. Impairment, if any, represents the excess of amortized cost of an individual stratum over its estimated fair value and is recognized through a valuation allowance. | |||||||||||||||||||||
Nationstar owns the right to service certain reverse mortgage MSRs with an unpaid principal balance of $28.4 billion and $28.9 billion as of September 30, 2014 and December 31, 2013. Nationstar utilizes a variety of assumptions in assessing the fair value of its servicing assets or liabilities, with the primary assumptions including discount rates, prepayment speeds, home price index, collateral values and the expected weighted average life. At September 30, 2014 and December 31, 2013, no impairment was identified. Interest and servicing fees collected on reverse mortgage interests are included as a component of either interest or service fee income based on whether Nationstar acquired the related borrower draws from a predecessor servicer or funded borrower draws under its obligation to service the related HECMs subsequent to the acquisition of the rights to service these loans. | |||||||||||||||||||||
The activity of MSRs carried at amortized cost is as follows for the dates indicated: | |||||||||||||||||||||
For the nine months ended | For the year ended | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||
Activity of MSRs at amortized cost | |||||||||||||||||||||
Balance at the beginning of the period | $ | 14,879 | $ | 82,521 | $ | 10,973 | $ | 83,238 | |||||||||||||
Additions: | |||||||||||||||||||||
Purchase /Assumptions of servicing rights/obligations | — | — | 3,980 | — | |||||||||||||||||
Deductions: | |||||||||||||||||||||
Amortization/Accretion | (2,448 | ) | (3,567 | ) | (74 | ) | (717 | ) | |||||||||||||
Balance at end of the period | $ | 12,431 | $ | 78,954 | $ | 14,879 | $ | 82,521 | |||||||||||||
Fair value at end of period | $ | 35,475 | $ | 61,853 | $ | 29,192 | $ | 63,996 | |||||||||||||
Subserviced loans | |||||||||||||||||||||
Nationstar also subservices loans on behalf of owners of MSRs or loans for a fee. Nationstar has no recorded value for its subservicing arrangements. At September 30, 2014 and December 31, 2013, the unpaid balances under subservicing arrangements and rights to service certain foreclosed loans were $20.4 billion and $35.4 billion, respectively. |
Other_Assets
Other Assets | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Other Assets | ' | |||||||
Other Assets | ||||||||
Other assets consisted of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Loans subject to repurchase right from Ginnie Mae | $ | 83,547 | $ | 120,736 | ||||
Goodwill | 54,701 | 38,820 | ||||||
Real estate owned (REO), net | 53,264 | 45,632 | ||||||
Deferred financing costs | 48,949 | 73,030 | ||||||
Intangible assets | 20,187 | 21,737 | ||||||
Prepaid expenses | 9,942 | 21,993 | ||||||
Collateral deposits on derivative instruments | 5,487 | 25,932 | ||||||
Receivables from affiliates | 5,479 | 8,861 | ||||||
Other | 1,294 | 3,656 | ||||||
Total other assets | $ | 282,850 | $ | 360,397 | ||||
For certain loans that Nationstar sold to Ginnie Mae, Nationstar as the issuer has the unilateral right to repurchase, without Ginnie Mae’s prior authorization, any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Once Nationstar has the unilateral right to repurchase a delinquent loan, Nationstar has effectively regained control over the loan, and under GAAP, must re-recognize the loan on its consolidated balance sheets and establish a corresponding repurchase liability regardless of Nationstar’s intention to repurchase the loan. Nationstar’s re-recognized loans included in other assets and the corresponding liability in payables and accrued liabilities was $83.5 million at September 30, 2014 and $120.7 million at December 31, 2013. | ||||||||
In May 2014, Nationstar acquired Real Estate Digital, LLC (RED). In the initial purchase price allocations, Nationstar recorded $15.9 million in goodwill on its consolidated balance sheet. |
Accounts_Payable
Accounts Payable | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Payables and Accrued Liabilities | ' | |||||||
Payables and Accrued Liabilities | ||||||||
Payables and accrued liabilities consist of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Payables to servicing and subservicing investors(1) | $ | 314,864 | $ | 359,214 | ||||
Payables to insurance carriers and insurance cancellation reserves | 159,351 | 164,244 | ||||||
Taxes | 100,190 | 35,961 | ||||||
Loans subject to repurchase from Ginnie Mae | 83,547 | 120,736 | ||||||
MSR purchases payable including advances | 65,374 | 135,759 | ||||||
Accrued interest | 64,559 | 76,303 | ||||||
Accrued bonus and payroll | 62,023 | 66,755 | ||||||
Repurchase reserves | 48,252 | 40,695 | ||||||
Other(2) | 446,735 | 308,783 | ||||||
Total payables and accrued liabilities | $ | 1,344,895 | $ | 1,308,450 | ||||
(1) Payables to servicing and subservicing investors represents amounts due to investors in connection with loans serviced and that are paid from collections of the underlying loans, insurance proceeds or at time of property disposal. | ||||||||
(2) Other payables primarily consist of accrued legal and professional fees, capital lease obligations and amounts payable to | ||||||||
securitization trusts. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||
Derivative Financial Instruments | ' | |||||||||||||
Derivative Financial Instruments | ||||||||||||||
Derivatives instruments utilized by Nationstar primarily include interest rate lock commitments (IRLCs), Loan Purchase Commitments (LPCs), Forward MBS trades and interest rate swap agreements. | ||||||||||||||
Nationstar enters into IRLCs with prospective borrowers. These commitments are carried at fair value in accordance with ASC 815, Derivatives and Hedging. ASC 815 clarifies that the expected net future cash flows related to the associated servicing of a loan should be included in the measurement of all written loan commitments that are accounted for at fair value through earnings. The estimated fair values of IRLCs are based on the fair value of the related mortgage loans which is based on observable market data and is recorded in derivative financial instruments within the consolidated balance sheets. Nationstar adjusts the outstanding IRLCs with prospective borrowers based on an expectation that it will be exercised and the loan will be funded. The initial and subsequent changes in the value of IRLCs are a component of gain on mortgage loans held for sale. | ||||||||||||||
Nationstar actively manages the risk profiles of its IRLCs and mortgage loans held for sale on a daily basis. To manage the price risk associated with IRLCs, Nationstar enters into forward sales of MBS in an amount equal to the portion of the IRLC expected to close, assuming no change in mortgage interest rates. In addition, to manage the interest rate risk associated with mortgage loans held for sale, Nationstar enters into forward sale commitments to deliver mortgage loan inventory to investors. The estimated fair values of forward sales of MBS and forward sale commitments are based on exchange prices or the dealer market price and are recorded as a component of derivative financial instruments and mortgage loans held for sale, respectively, in the consolidated balance sheets. The initial and subsequent changes in value on forward sales of MBS and forward sale commitments are a component of gain on mortgage loans held for sale. | ||||||||||||||
Nationstar may occasionally enter into contracts with other mortgage lenders to purchase residential mortgage loans at a future date, which are referred to as LPCs. LPCs are accounted for as derivatives under ASC 815 and recorded at fair value in derivative financial instruments on Nationstar's consolidated balance sheet. Subsequent changes in LPCs are recorded as a charge or credit to gain on mortgage loans held for sale. | ||||||||||||||
Periodically, Nationstar has entered into interest rate swap agreements to hedge the interest payment on the warehouse debt and securitization of its mortgage loans held for sale. These interest rate swap agreements generally require Nationstar to pay a fixed interest rate and receive a variable interest rate based on LIBOR. Unless designated as an accounting hedge, Nationstar records gains and losses on interest rate swaps as a component of gain/(loss) on interest rate swaps and caps in Nationstar’s consolidated statements of income and comprehensive income. Unrealized losses on undesignated interest rate derivatives are separately disclosed under operating activities in the consolidated statements of cash flows. Interest rate swaps designated as cash flow hedges under ASC 815 are recorded at fair value on the Company’s consolidated balance sheet, with any changes in fair value related to the effective portion of the hedge being recorded as an adjustment to other comprehensive income and subsequently recognized in interest expense in the same period the hedged forecast transaction affects earnings. To qualify as a cash flow hedge, the hedge must be highly effective at reducing the risk associated with the exposure being hedged and must be formally designated at hedge inception. Nationstar considers a hedge to be highly effective if the change in fair value of the derivative hedging instrument is within 80% to 125% of the change in the fair value of the hedged item attributable to the hedged risk. Ineffective portions of the cash flow hedge are reflected in earnings as they occur as a component of interest expense. There are no designated accounting hedges outstanding as of September 30, 2014. | ||||||||||||||
Associated with the Company's derivatives is $5.5 million and $25.9 million in collateral deposits on derivative instruments recorded in other assets on the Company's balance sheets as of September 30, 2014 and December 31, 2013, respectively. The Company does not offset fair value amounts recognized for derivative instruments and the amounts collected and/or deposited on derivative instruments in its consolidated balance sheets. | ||||||||||||||
The following tables provide the outstanding notional balances and fair values of outstanding positions for the dates indicated, and recorded gains/(losses) during the periods indicated: | ||||||||||||||
Expiration | Outstanding | Fair | Recorded | |||||||||||
Dates | Notional | Value | Gains / | |||||||||||
(Losses) | ||||||||||||||
For the nine months ended September 30, 2014 | ||||||||||||||
ASSETS | ||||||||||||||
MORTGAGE LOANS HELD FOR SALE | ||||||||||||||
Loan sale commitments | 2014 | $ | 13,933 | $ | 609 | $ | 602 | |||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||
IRLCs | 2014 | 2,388,232 | 83,446 | (3,682 | ) | |||||||||
Forward MBS trades | 2014 | 1,101,888 | 1,488 | (30,778 | ) | |||||||||
LPCs | 2014 | 274,716 | 2,050 | 1,257 | ||||||||||
Interest rate swaps and caps | 2018 | 147,600 | 1,349 | 2,157 | ||||||||||
LIABILITIES | ||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||
IRLCs | 2014 | 867 | 3 | 2,695 | ||||||||||
Interest rate swaps on ABS debt | 2014 - 2017 | 249,704 | 183 | 651 | ||||||||||
Forward MBS trades | 2014 | 2,424,775 | 8,415 | (5,110 | ) | |||||||||
LPCs | 2014 | 76,385 | 1,020 | 669 | ||||||||||
For the year ended December 31, 2013 | ||||||||||||||
ASSETS | ||||||||||||||
MORTGAGE LOANS HELD FOR SALE | ||||||||||||||
Loan sale commitments | 2014 | $ | 57,965 | $ | 7 | $ | (14 | ) | ||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||
IRLCs | 2014 | 3,083,131 | 87,128 | (69,856 | ) | |||||||||
Forward MBS trades | 2014 | 5,425,663 | 32,266 | 19,084 | ||||||||||
LPCs | 2014 | 197,475 | 793 | (460 | ) | |||||||||
Interest rate swaps and caps | 2018 | 167,000 | 3,691 | 544 | ||||||||||
LIABILITIES | ||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||
IRLCs | 2014 | 260,407 | 2,698 | (1,613 | ) | |||||||||
Interest rate swaps and caps (1) | — | — | 1,576 | |||||||||||
Interest rate swaps on ABS debt | 2014-2017 | 424,269 | 834 | 1,012 | ||||||||||
Forward MBS trades | 2014 | 1,351,870 | 3,305 | 8,713 | ||||||||||
LPCs | 2014 | 204,486 | 1,689 | (1,603 | ) | |||||||||
-1 | In January and June 2013, Nationstar terminated these interest rate swaps. |
Indebtedness
Indebtedness | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Indebtedness | ' | |||||||||||||||||||||||||
Indebtedness | ||||||||||||||||||||||||||
Notes Payable | ||||||||||||||||||||||||||
A summary of the balances of notes payable for the dates indicated is presented below. | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral Pledged | Outstanding | Collateral pledged | |||||||||||||||||||
Servicing Segment Notes Payable | ||||||||||||||||||||||||||
MBS advance financing facility | LIBOR+2.50% to 4.00% | Mar-15 | Servicing advance receivables | $ | 775,000 | $ | 455,629 | $ | 514,841 | $ | 560,814 | $ | 651,953 | |||||||||||||
Securities repurchase facility (2011) | LIBOR +3.50% | 90 day revolving | Nonrecourse debt - Legacy Assets | — | 34,613 | 55,603 | 35,546 | 55,603 | ||||||||||||||||||
Nationstar agency advance financing facility (1) | LIBOR+1.20% to 3.75% | Oct-15 | Servicing advance receivables | 1,100,000 | 603,354 | 718,970 | 851,957 | 918,574 | ||||||||||||||||||
Reverse participations financing facility | LIBOR+4.00% | June 2014(7) | Reverse mortgage loans (2) | 150,000 | — | — | 102,031 | 124,536 | ||||||||||||||||||
MBS advance financing facility (2012) | LIBOR+5.00% | Apr-15 | Servicing advance receivables | 50,000 | 39,654 | 47,467 | 179,306 | 220,833 | ||||||||||||||||||
Nationstar Mortgage Advance Receivable | LIBOR+1.15% to 5.30% | June 2014 (4) June 2016 (6) June 2018 | Servicing advance receivables | 475,000 | 399,846 | 450,345 | 1,240,940 | 1,347,410 | ||||||||||||||||||
Trust (3) | ||||||||||||||||||||||||||
MBS servicer advance facility (2014) | LIBOR + 3.50% | Jul-15 | Servicing advance receivables | 80,000 | 68,123 | 92,165 | — | — | ||||||||||||||||||
Nationstar Servicer Advance Receivables Trust 2013 - BA (5) | LIBOR+2.50% | Jun-14 | Servicing advance receivables | 1,000,000 | — | — | 1,579,830 | 1,764,296 | ||||||||||||||||||
1,601,219 | 1,879,391 | 4,550,424 | 5,083,205 | |||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral Pledged | Outstanding | Collateral pledged | |||||||||||||||||||
Originations Segment Notes Payable | ||||||||||||||||||||||||||
$1.5 billion warehouse facility | LIBOR+2.00% to 2.875% | Oct-15 | Mortgage loans or MBS | $ | 1,500,000 | $ | 698,300 | $ | 793,342 | $ | 797,281 | $ | 891,648 | |||||||||||||
$750 million warehouse facility | LIBOR+1.75% to 2.50% | Apr-15 | Mortgage loans or MBS | 750,000 | 428,970 | 447,121 | 639,378 | 673,599 | ||||||||||||||||||
$500 million warehouse facility | LIBOR+1.75% to 2.75% | Sep-15 | Mortgage loans or MBS | 500,000 | 253,713 | 260,443 | 111,980 | 115,629 | ||||||||||||||||||
$500 million warehouse facility | LIBOR+0.75% to 3.50% | Jun-15 | Mortgage loans or MBS | 500,000 | 197,067 | 209,060 | 214,570 | 224,162 | ||||||||||||||||||
$500 million warehouse facility | LIBOR+ 1.50% to 2.25% | Jun-15 | Mortgage loans or MBS | 500,000 | 226,249 | 231,696 | 447,926 | 477,980 | ||||||||||||||||||
$300 million warehouse facility | LIBOR +2.50% | September 2014(8) | Mortgage loans or MBS | 300,000 | — | — | 159,435 | 166,482 | ||||||||||||||||||
$200 million warehouse facility | LIBOR+2.75% | Feb-15 | Mortgage loans or MBS | 200,000 | 87,145 | 103,804 | 63,357 | 93,098 | ||||||||||||||||||
$75 million warehouse facility (HCM) (9) | LIBOR+ 2.25% to 2.875% | Oct-15 | Mortgage loans or MBS | 75,000 | 40,080 | 41,786 | — | — | ||||||||||||||||||
ASAP+ facility | LIBOR+1.50% | Up to 45 days | GSE mortgage loans or GSE MBS | — | — | — | — | — | ||||||||||||||||||
1,931,524 | 2,087,252 | 2,433,927 | 2,642,598 | |||||||||||||||||||||||
$ | 3,532,743 | $ | 3,966,643 | $ | 6,984,351 | $ | 7,725,803 | |||||||||||||||||||
(1) This facility has both variable funding notes (VFN) and term notes. Nationstar issued $300.0 million in term notes to institutional investors. The notes have a weighted average interest rate of 1.46% and a weighted average term of 3 years. | ||||||||||||||||||||||||||
(2) This facility is partially secured by reverse mortgage loans and partially unsecured. | ||||||||||||||||||||||||||
(3) This facility has both VFNs and term notes. Nationstar issued $1.0 billion of term notes to institutional investors of which $300.0 million remains outstanding. The notes have an average interest rate of 1.51% and mature in June 2018. | ||||||||||||||||||||||||||
(4) The notes that were scheduled to mature in June 2014 were redeemed in January 2014. | ||||||||||||||||||||||||||
(5) Nationstar terminated this advance receivable facility in May 2014 at which time all outstanding balances had been repaid. | ||||||||||||||||||||||||||
(6) The notes that were scheduled to mature in June 2016 were redeemed in June 2014. | ||||||||||||||||||||||||||
(7) This facility expired in June 2014 and was not renewed. | ||||||||||||||||||||||||||
(8) This facility expired in September 2014 and was not renewed. | ||||||||||||||||||||||||||
(9) This facility is a sublimit of the $1.5 billion facility specific to HCM. | ||||||||||||||||||||||||||
Unsecured Senior Notes | ||||||||||||||||||||||||||
A summary of the balances of unsecured senior notes is presented below: | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
$285 million face value, 10.875% interest rate payable semi-annually, due April 2015(1) | $ | — | $ | 283,153 | ||||||||||||||||||||||
$475 million face value, 6.500% interest rate payable semi-annually, due August 2018 | 475,000 | 475,000 | ||||||||||||||||||||||||
$375 million face value, 9.625% interest rate payable semi-annually, due May 2019 | 378,756 | 379,360 | ||||||||||||||||||||||||
$400 million face value, 7.875% interest rate payable semi-annually, due October 2020 | 400,565 | 400,634 | ||||||||||||||||||||||||
$600 million face value, 6.500% interest rate payable semi-annually, due July 2021 | 605,330 | 605,915 | ||||||||||||||||||||||||
$300 million face value, 6.500% interest rate payable semi-annually, due June 2022 | 300,000 | 300,000 | ||||||||||||||||||||||||
Total | $ | 2,159,651 | $ | 2,444,062 | ||||||||||||||||||||||
(1) Nationstar redeemed all of its outstanding 10.875% Senior Notes due 2015 on July 25, 2014 (the Redemption Date) at a redemption price of 100% of the principal amount of the notes, plus accrued and unpaid interest on the notes redeemed to, but not including, the Redemption Date. Deferred debt issuance costs of $3.4 million were written off in connection with this redemption. | ||||||||||||||||||||||||||
The indentures for the unsecured senior notes contain various covenants and restrictions that limit Nationstar's, or certain of its subsidiaries', ability to incur additional indebtedness, pay dividends, make certain investments, create liens, consolidate, merge or sell substantially all of their assets, or enter into certain transactions with affiliates. The indentures contain certain events of default, including (subject, in some cases, to customary cure periods and materiality thresholds) defaults based on (i) the failure to make payments under the indenture when due, (ii) breach of covenants, (iii) cross-defaults to certain other indebtedness, (iv) certain bankruptcy or insolvency events, (v) material judgments and (vi) invalidity of material guarantees. | ||||||||||||||||||||||||||
The indentures for the unsecured senior notes provide that Nationstar may redeem all or a portion of the notes prior to certain fixed dates by paying a make-whole premium plus accrued and unpaid interest and additional interest, if any, to the redemption dates. In addition, Nationstar may redeem all or a portion of the senior notes at any time on or after certain fixed dates at the applicable redemption prices set forth in the indentures plus accrued and unpaid interest and additional interest, if any, to the redemption dates. | ||||||||||||||||||||||||||
Additionally, the indentures provide that on or before certain fixed dates, Nationstar may redeem up to 35% of the aggregate principal amount of the senior notes with the net proceeds of certain equity offerings at fixed redemption prices, plus accrued and unpaid interest and additional interest, if any, to the redemption dates, subject to compliance with certain conditions. | ||||||||||||||||||||||||||
The ratios included in the indentures for the senior notes are incurrence-based compared to the customary ratio covenants that are often found in credit agreements that require a company to maintain a certain ratio. | ||||||||||||||||||||||||||
As of September 30, 2014, the expected maturities of Nationstar's unsecured senior notes based on contractual maturities are as follows: | ||||||||||||||||||||||||||
Year | Amount | |||||||||||||||||||||||||
2014 | $ | — | ||||||||||||||||||||||||
2015 | — | |||||||||||||||||||||||||
2016 | — | |||||||||||||||||||||||||
2017 | — | |||||||||||||||||||||||||
2018 | 475,000 | |||||||||||||||||||||||||
Thereafter | 1,675,000 | |||||||||||||||||||||||||
Total | $ | 2,150,000 | ||||||||||||||||||||||||
Other Nonrecourse Debt | ||||||||||||||||||||||||||
A summary of the balances of other nonrecourse debt is presented below: | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Nonrecourse debt - Legacy Assets | $ | 78,481 | $ | 89,107 | ||||||||||||||||||||||
Excess spread financing - fair value | 1,062,544 | 986,410 | ||||||||||||||||||||||||
Participating interest financing | 1,367,382 | 1,103,490 | ||||||||||||||||||||||||
Mortgage servicing rights financing liabilities | 44,449 | 29,874 | ||||||||||||||||||||||||
Total | $ | 2,552,856 | $ | 2,208,881 | ||||||||||||||||||||||
Nonrecourse Debt–Legacy Assets | ||||||||||||||||||||||||||
In November 2009, Nationstar completed the securitization of approximately $222.0 million of ABS, which was accounted for as a secured borrowing. This structure resulted in Nationstar carrying the securitized loans as mortgages on Nationstar’s consolidated balance sheet and recognizing the asset-backed certificates acquired by third parties as nonrecourse debt, totaling approximately $78.5 million and $89.1 million at September 30, 2014, and December 31, 2013, respectively. The principal and interest on these notes are paid using the cash flows from the underlying mortgage loans, which serve as collateral for the debt. The interest rate paid on the outstanding securities is 7.50%, which is subject to an available funds cap. The total outstanding principal balance on the underlying mortgage loans serving as collateral for the debt was approximately $274.0 million and $302.0 million at September 30, 2014 and December 31, 2013, respectively. Accordingly, the timing of the principal payments on this nonrecourse debt is dependent on the payments received on the underlying mortgage loans. The unpaid principal balance on the outstanding notes was $91.3 million and $103.6 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||
Excess Spread Financing Debt at Fair Value | ||||||||||||||||||||||||||
In conjunction with Nationstar's acquisition of certain MSRs on various pools of residential mortgage loans (the Portfolios), Nationstar has entered into sale and assignment agreements with certain entities formed by New Residential Investment Corp. (New Residential) in which New Residential and/or certain funds managed by Fortress own an interest. Nationstar, in transactions accounted for as financing arrangements, sold to such entities the right to receive a specified percentage of the excess cash flow generated from the Portfolios after receipt of a fixed basic servicing fee per loan. Nationstar has elected fair value accounting for these financing agreements. | ||||||||||||||||||||||||||
Nationstar retains all ancillary income associated with servicing the Portfolios and the remaining portion of the excess cash flow after receipt of a fixed basic servicing fee. Nationstar continues to be the servicer of the Portfolios and provides all servicing and advancing functions. New Residential has no prior or ongoing obligations associated with the Portfolios. | ||||||||||||||||||||||||||
Contemporaneous with the above, Nationstar entered into refinanced loan agreements with New Residential. Should Nationstar refinance any loan in the Portfolios, subject to certain limitations, Nationstar can be required to transfer the new loan or a replacement loan of similar economic characteristics into the Portfolios. The new or replacement loan will be governed by the same terms set forth in the sale and assignment agreement described above. | ||||||||||||||||||||||||||
The following table shows the hypothetical effect on fair value of excess spread financing using various unfavorable variations of the expected levels of certain key assumptions used in valuing these liabilities at the dates indicated: | ||||||||||||||||||||||||||
Discount Rate | Total Prepayment | Credit Losses | ||||||||||||||||||||||||
Speeds | ||||||||||||||||||||||||||
100 bps | 200 bps | 10% | 20% | 10% | 20% | |||||||||||||||||||||
Adverse | Adverse | Adverse | Adverse | Adverse | Adverse | |||||||||||||||||||||
Change | Change | Change | Change | Change | Change | |||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||
Excess spread financing | $ | 38,897 | $ | 79,644 | $ | 34,979 | $ | 73,083 | $ | 3,066 | $ | 7,665 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Excess spread financing | $ | 33,156 | $ | 68,636 | $ | 26,492 | $ | 53,753 | $ | 29,219 | $ | 42,611 | ||||||||||||||
As the fair value on the outstanding excess spread financing is linked to the future economic performance of certain MSRs, any adverse changes in the MSRs would inherently benefit the net carrying amount of the excess spread financing, while any beneficial changes in certain key assumptions used in valuing the MSRs would negatively impact the net carrying amount of the excess spread financing. | ||||||||||||||||||||||||||
These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a 10% variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors (e.g., a decrease in total prepayment speeds may result in an increase in credit losses), which could impact the above hypothetical effects. Also, a positive change in the above assumptions would not necessarily correlate with the corresponding decrease in the net carrying amount of the excess spread financing. | ||||||||||||||||||||||||||
Participating Interest Financing | ||||||||||||||||||||||||||
Participating interest financing represents the issuance of pools of Home Equity Conversion Mortgage Backed Securities (HMBS) to third-party security holders which are guaranteed by certain GSEs. Nationstar has accounted for the transfer of these advances in the related Home Equity Conversion Mortgages (HECM) loans as secured borrowings, retaining the initial reverse mortgage interests on its consolidated balance sheet, and recording the pooled HMBS as participating interest financing liabilities on the Company’s consolidated balance sheet. Monthly cash flows generated from the HECM loans are used to service the HMBS. The interest rate is based on the underlying HMBS rate with a range of 0.14% to 6.98%. The participating interest financing was $1,367.4 million and $1,103.5 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||
Mortgage Servicing Rights Financing Liabilities | ||||||||||||||||||||||||||
Nationstar has entered into agreements to sell the basic fee component of certain MSRs and servicer advances under specified terms. Under the terms of these agreements, the transfer of servicing is contingent on the receipt of consents from various third parties. Until these required consents are obtained Nationstar continues to be the named servicer and, for accounting purposes, ownership of the mortgage servicing rights continues to reside with Nationstar. Nationstar continues to account for the MSRs on its consolidated balance sheets. In addition, Nationstar records a MSRs financing liability associated with this financing transaction. See Note 17 - Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC. | ||||||||||||||||||||||||||
Nationstar has elected to measure the mortgage servicing rights financings at fair value with all changes in fair value recorded as a charge or credit to servicing fee income in the consolidated statements of income and comprehensive income. | ||||||||||||||||||||||||||
Financial Covenants | ||||||||||||||||||||||||||
As of September 30, 2014, management believes Nationstar was in compliance with its financial covenants on its borrowing arrangements and credit facilities. These covenants generally relate to Nationstar's tangible net worth, liquidity reserves and leverage requirements. | ||||||||||||||||||||||||||
Nationstar is required to maintain a minimum tangible net worth of at least $517.3 million as of each quarter-end related to its outstanding Master Repurchase Agreements on its outstanding repurchase facilities. As of September 30, 2014, Nationstar was in compliance with these minimum tangible net worth requirements. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income Taxes | ' | |||||||||||||||
Income Taxes | ||||||||||||||||
Income tax expense was as follows: | ||||||||||||||||
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Tax Expense | $ | (1,700 | ) | $ | 50,187 | $ | 52,242 | $ | 164,233 | |||||||
Effective tax rate | 1.6 | % | 38 | % | 20.6 | % | 38 | % | ||||||||
The primary reason for the significant variation in the expected tax rate and the actual tax rate was the partial release of the deferred tax valuation allowance that was recorded against the Company’s loss carryforwards. Excluding the release of the valuation allowance, the Company’s effective tax rate would have been 38.8% for the three months ended September 30, 2014 and 38.0% for the nine months ended September 30, 2014. | ||||||||||||||||
The Company had a net deferred tax liability of $116.0 million at September 30, 2014 and $102.7 million at December 31, 2013. A valuation allowance of $6.4 million and $46.7 million was recorded against deferred tax assets at September 30, 2014 and December 31, 2013, respectively, as management believes that it is more likely than not that not all of the deferred tax assets will be realized. | ||||||||||||||||
The Company has federal net operating loss carryforwards (NOL) of approximately $199.4 million that will begin to expire in 2027, if unused. The Company also has state NOLs that will begin to expire in 2014 if unused. The amount of the state NOLs varies by state based on whether the NOL is derived from the pre-apportioned Federal NOL or calculated based on the apportioned Federal NOL. The Company also has net capital loss carryforwards of approximately $15.9 million that begin to expire in 2015. The Federal NOL is limited under Sections 382 and 383 of the Internal Revenue Code as a result of a reorganization that occurred in advance of the Company’s initial public offering. The annual limitation is approximately $11 million. | ||||||||||||||||
The Company regularly reviews the carrying amount of its deferred tax assets to determine if a valuation allowance is necessary. If based on the available evidence, it is more likely than not that all or a portion of the Company's deferred tax assets will not be realized in future periods, a valuation allowance is established. Management considers all available evidence, both positive and negative, in evaluating the need for a valuation allowance. Significant judgment is required in assessing future earnings trends and the timing of reversals of temporary differences. The Company's evaluation is based on current tax laws as well as management's expectations of future performance. At the date of the Company’s initial public offering, the Company was in a three year cumulative loss and the Company concluded it was not more likely than not that the net operating loss would be used. | ||||||||||||||||
The Company has generated significant pretax income over the past three years and has increased the size of its servicing portfolio to $347.3 billion as of September 30, 2014 from $159.2 billion as of December 31, 2012. Management is forecasting sufficient earnings for the coming year and the foreseeable future due to the increased servicing portfolio along with a profitable originations platform and a growing mortgage services business. Accordingly, management believes that, while the Company’s NOL is limited by Section 382 of the Internal Revenue Code, the amount of earnings needed in each year to fully utilize the allowable limitation are more likely than not to occur given the three year earnings history and | ||||||||||||||||
management’s current projections. | ||||||||||||||||
The Company has not released the $5.6 million valuation allowance recorded against the capital loss carryforward because management does not believe it is more likely than not that the Company will generate sufficient capital gains to utilize the loss carryforward prior to expiration. Additionally, the Company has not released the $0.5 million valuation allowance recorded against the portion of the Federal NOL carryforward and the $0.3 million valuation allowance recorded against the State NOL carryforward that are expected to expire unutilized. Accordingly, a valuation allowance of $6.4 million remains as of September 30, 2014. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
ASC 820, Fair Value Measurements and Disclosures (ASC 820), provides a definition of fair value, establishes a framework for measuring fair value, and requires expanded disclosures about fair value measurements. The standard applies when GAAP requires or allows assets or liabilities to be measured at fair value, but does not expand the use of fair value in any new circumstance. | ||||||||||||||||
ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tiered fair value hierarchy based on the level of observable inputs used in the measurement of fair value (e.g., Level 1 representing quoted prices for identical assets or liabilities in an active market; Level 2 representing values using observable inputs other than quoted prices included within Level 1; and Level 3 representing estimated values based on significant unobservable inputs). In addition, ASC 820 requires an entity to consider all aspects of nonperformance risk, including its own credit standing, when measuring the fair value of a liability. Under ASC 820, related disclosures are segregated for assets and liabilities measured at fair value based on the level used within the hierarchy to determine their fair values. | ||||||||||||||||
The following describes the methods and assumptions used by Nationstar in estimating fair values: | ||||||||||||||||
Cash and Cash Equivalents, Restricted Cash – The carrying amount reported in the consolidated balance sheets approximates fair value. Cash, cash equivalents, and restricted cash are classified as Level 1 in the fair value disclosures. | ||||||||||||||||
Mortgage Loans Held for Sale – Nationstar originates mortgage loans in the U.S. that it intends to sell to Fannie Mae, Freddie Mac, and Ginnie Mae (collectively, the Agencies). Additionally, Nationstar holds mortgage loans that it intends to sell into the secondary markets via whole loan sales or securitizations. Nationstar measures newly originated prime residential mortgage loans held for sale at fair value. | ||||||||||||||||
Mortgage loans held for sale are typically pooled together and sold into certain exit markets, depending upon underlying attributes of the loan, such as agency eligibility, product type, interest rate, and credit quality. Mortgage loans held for sale are valued using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. As these prices are derived from market prices, Nationstar classifies these valuations as Level 2 in the fair value disclosures. | ||||||||||||||||
The Company may acquire mortgage loans held for sale from various securitization trusts for which it acts as servicer through the exercise of various clean-up call options as permitted through the respective pooling and servicing agreements. The Company has elected to account for these loans at the lower of cost or market. Nationstar classifies these valuations as Level 2 in the fair value disclosures. | ||||||||||||||||
Nationstar may also purchase loans out of a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. These purchased loans are accounted for at fair value, and Nationstar classifies these valuations as Level 2 in the fair value disclosures. | ||||||||||||||||
Mortgage Loans Held for Investment, net – Nationstar determines the fair value of loans held for investment using internally developed valuation models. These valuation models estimate the exit price Nationstar expects to receive in the loan’s principal market. Although Nationstar utilizes and gives priority to observable market inputs such as interest rates and market spreads within these models, Nationstar typically is required to utilize internal inputs, such as prepayment speeds, credit losses, and discount rates. These internal inputs require the use of judgment by Nationstar and can have a significant impact on the determination of the loan’s fair value. As these prices are derived from a combination of internally developed valuation models and quoted market prices, Nationstar classifies these valuations as Level 3 in the fair value disclosures. | ||||||||||||||||
Mortgage Servicing Rights – Fair Value – Nationstar estimates the fair value of its forward MSRs using a process that combines the use of a discounted cash flow model and analysis of current market data to arrive at an estimate of fair value. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds, discount rates, ancillary fees, credit losses and costs to service. These assumptions are generated and applied based on collateral stratifications including product type, remittance type, geography, delinquency and coupon dispersion. These assumptions require the use of judgment by Nationstar and can have a significant impact on the determination of the MSR’s fair value. Periodically, management obtains third party valuations on the portfolio to assess the reasonableness of the fair value calculations provided by the cash flow model. Because of the nature of the valuation inputs, Nationstar classifies these valuations as Level 3 in the fair value disclosures. | ||||||||||||||||
Reverse Mortgage Interests – Nationstar’s reverse mortgage interests consist of fees paid to taxing authorities for borrowers' unpaid taxes and insurance, and payments made to borrowers for line of credit draws on reverse mortgages. These advances include due and payable advances, which are recovered upon the foreclosure and sale of the subject property, and defaulted advances that can be securitized. These interests are carried at amortized cost less an allowance for loan loss in the consolidated financial statements. Nationstar estimates the fair value using a market approach by utilizing the fair value of securities backed by similar advances on reverse mortgage loans, adjusted for certain factors. Nationstar classifies these valuations as Level 3 in the fair value disclosures. | ||||||||||||||||
REO – Nationstar carries REO at fair value and determines the fair value of REO properties through the use of third-party appraisals and broker price opinions, adjusted for estimated selling costs. Such estimated selling costs include realtor fees and other anticipated closing costs. These values are adjusted to take into account factors that could cause the actual liquidation value of foreclosed properties to be different than the appraised values. This valuation adjustment is based upon Nationstar’s historical experience with REO. REO is classified as Level 3 in the fair value disclosures. | ||||||||||||||||
Derivative Financial Instruments – Nationstar enters into a variety of derivative financial instruments as part of its hedging strategy. The majority of these derivatives are exchange-traded or traded within highly active dealer markets. In order to determine the fair value of these instruments, Nationstar utilizes the exchange price or dealer market price for the particular derivative contract; therefore, these contracts are classified as Level 2. In addition, Nationstar enters into IRLCs and LPCs with prospective borrowers and other loan originators. These commitments are carried at fair value based on the fair value of related mortgage loans which are based on observable market data. Nationstar adjusts the outstanding IRLCs with prospective borrowers based on an expectation that it will be exercised and the loan will be funded. IRLCs and LPCs are recorded in derivative financial instruments in the consolidated balance sheets. These commitments are classified as Level 2 in the fair value disclosures. | ||||||||||||||||
Notes Payable – Notes payable consists of outstanding borrowings on Nationstar's warehouse and advance financing facilities. As the underlying warehouse and advance finance facilities bear interest at rates that are periodically adjusted based on a market index, the carrying amount reported on the consolidated balance sheet approximates fair value. Nationstar classifies these valuations as Level 3 in the fair value disclosures. | ||||||||||||||||
Unsecured Senior Notes – The fair value of unsecured senior notes, which are carried at amortized cost, is based on quoted market prices and is considered Level 1 from the market observable inputs used to determine fair value. | ||||||||||||||||
Nonrecourse Debt – Legacy Assets – Nationstar estimates fair value based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. These prices are derived from a combination of internally developed valuation models and quoted market prices, and are classified as Level 3. | ||||||||||||||||
Excess Spread Financing – Nationstar estimates fair value based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions at September 30, 2014 being mortgage prepayment speeds of 12.8%, average life of 5.7 years, recapture rates of 6.6% to 31.9%, and discount rate of 11.8%. Key assumptions at December 31, 2013, were mortgage prepayment speeds of 9.6%, average life of 4.7 years, recapture rates of 5.0% to 35.8%, and discount rate of 13.9%. Changes in fair value of the excess spread financing are recorded as a component of service fee income in Nationstar's consolidated statement of income and comprehensive income. As these prices are derived from a combination of internally developed valuation models and quoted market prices based on the value of the underlying MSRs, Nationstar classifies these valuations as Level 3 in the fair value disclosures. | ||||||||||||||||
The range of various assumptions used in Nationstar's valuation of excess spread financing were as follows: | ||||||||||||||||
Excess Spread financing | Prepayment Speeds | Average Life (years) | Discount Rate | Recapture Rate | ||||||||||||
30-Sep-14 | ||||||||||||||||
Low | 5.50% | 3.9 years | 9.00% | 6.60% | ||||||||||||
High | 19.30% | 7.4 years | 14.20% | 31.90% | ||||||||||||
31-Dec-13 | ||||||||||||||||
Low | 4.00% | 3.4 years | 10.10% | 5.00% | ||||||||||||
High | 17.60% | 5.7 years | 20.00% | 35.80% | ||||||||||||
A positive change in the above assumptions would not necessarily correlate with the corresponding decrease in the net carrying amount of the excess spread financing. | ||||||||||||||||
Mortgage Servicing Rights Financing - Nationstar estimates fair value based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions at September 30, 2014 being advance financing rates of 2.72%, annual advance recovery rates of 24.60%, and working capital. Changes in fair value of the mortgage servicing rights financing liability are recorded as a component of service fee income in Nationstar’s consolidated statements of income and comprehensive income. As these prices are derived from a combination of internally developed valuation models and quoted market prices based on the value of the underlying MSRs, Nationstar classifies these valuations as Level 3 in the fair value disclosures. | ||||||||||||||||
Participating Interest Financing – Nationstar estimates the fair value using a market approach by utilizing the fair value of securities backed by similar participating interests in reverse mortgage loans. Nationstar classifies these valuations as Level 2 in the fair value disclosures. | ||||||||||||||||
The estimated carrying amount and fair value of Nationstar’s financial instruments and other assets and liabilities measured at fair value on a recurring basis is as follows for the dates indicated: | ||||||||||||||||
September 30, 2014 | ||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
ASSETS | ||||||||||||||||
Mortgage loans held for sale(1) | $ | 1,695,502 | $ | — | $ | 1,695,502 | $ | — | ||||||||
Mortgage servicing rights | 2,898,209 | — | — | 2,898,209 | ||||||||||||
Other assets: | ||||||||||||||||
IRLCs | 83,446 | — | 83,446 | — | ||||||||||||
Forward MBS trades | 1,488 | — | 1,488 | — | ||||||||||||
LPCs | 2,050 | — | 2,050 | — | ||||||||||||
Interest rate swaps and caps | 1,349 | — | 1,349 | — | ||||||||||||
Total assets | $ | 4,682,044 | $ | — | $ | 1,783,835 | $ | 2,898,209 | ||||||||
LIABILITIES | ||||||||||||||||
Derivative financial instruments | ||||||||||||||||
IRLCs | $ | 3 | $ | — | $ | 3 | $ | — | ||||||||
Interest rate swaps on ABS debt | 183 | — | 183 | — | ||||||||||||
Forward MBS trades | 8,415 | — | 8,415 | — | ||||||||||||
LPCs | 1,020 | — | 1,020 | — | ||||||||||||
Mortgage servicing rights financing | 44,449 | — | — | 44,449 | ||||||||||||
Excess spread financing (at fair value) | 1,062,544 | — | — | 1,062,544 | ||||||||||||
Total liabilities | $ | 1,116,614 | $ | — | $ | 9,621 | $ | 1,106,993 | ||||||||
December 31, 2013 | ||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
ASSETS | ||||||||||||||||
Mortgage loans held for sale(1) | $ | 2,585,340 | $ | — | $ | 2,585,340 | $ | — | ||||||||
Mortgage servicing rights | 2,488,283 | — | — | 2,488,283 | ||||||||||||
Derivative financial instruments: | ||||||||||||||||
IRLCs | 87,128 | — | 87,128 | — | ||||||||||||
Forward MBS trades | 32,266 | — | 32,266 | — | ||||||||||||
LPCs | 793 | — | 793 | — | ||||||||||||
Interest rate swaps and caps | 3,691 | — | 3,691 | — | ||||||||||||
Total assets | $ | 5,197,501 | $ | — | $ | 2,709,218 | $ | 2,488,283 | ||||||||
LIABILITIES | ||||||||||||||||
Derivative financial instruments | ||||||||||||||||
IRLCs | $ | 2,698 | $ | — | $ | 2,698 | $ | — | ||||||||
Interest rate swaps on ABS debt | 834 | — | 834 | — | ||||||||||||
Forward MBS trades | 3,305 | — | 3,305 | — | ||||||||||||
LPCs | 1,689 | — | 1,689 | — | ||||||||||||
Mortgage servicing rights financing | 29,874 | — | — | 29,874 | ||||||||||||
Excess spread financing (at fair value) | 986,410 | — | — | 986,410 | ||||||||||||
Total liabilities | $ | 1,024,810 | $ | — | $ | 8,526 | $ | 1,016,284 | ||||||||
(1) | Based on the nature and risks of these assets, the Company has determined that presenting them as a single class is appropriate. | |||||||||||||||
The table below presents a reconciliation for all of Nationstar’s Level 3 assets and liabilities measured at fair value on a recurring basis for the dates indicated: | ||||||||||||||||
ASSETS | LIABILITIES | |||||||||||||||
For the three months ended September 30, 2014 | Mortgage | Excess spread | Mortgage Servicing Rights Financing | |||||||||||||
servicing rights | financing | |||||||||||||||
Beginning balance | $ | 2,678,134 | $ | 1,036,038 | $ | 33,452 | ||||||||||
Transfers into Level 3 | — | — | — | |||||||||||||
Transfers out of Level 3 | — | — | — | |||||||||||||
Total gains or losses | ||||||||||||||||
Included in earnings | (5,308 | ) | 37,313 | 10,997 | ||||||||||||
Included in other comprehensive income | — | — | — | |||||||||||||
Purchases, issuances, sales and settlements | ||||||||||||||||
Purchases | 159,773 | — | — | |||||||||||||
Issuances | 65,610 | 39,833 | — | |||||||||||||
Sales | — | — | — | |||||||||||||
Settlements | — | (50,640 | ) | — | ||||||||||||
Ending balance | $ | 2,898,209 | $ | 1,062,544 | $ | 44,449 | ||||||||||
ASSETS | LIABILITIES | |||||||||||||||
For the nine months ended September 30, 2014 | Mortgage | Excess spread | Mortgage Servicing Rights Financing | |||||||||||||
servicing rights | financing | |||||||||||||||
Beginning balance | $ | 2,488,283 | $ | 986,410 | $ | 29,874 | ||||||||||
Transfers into Level 3 | — | — | — | |||||||||||||
Transfers out of Level 3 | — | — | — | |||||||||||||
Total gains or losses | ||||||||||||||||
Included in earnings | (129,346 | ) | 61,080 | (38,260 | ) | |||||||||||
Included in other comprehensive income | — | — | — | |||||||||||||
Purchases, issuances, sales and settlements | ||||||||||||||||
Purchases | 353,450 | — | — | |||||||||||||
Issuances | 185,822 | 150,951 | 52,835 | |||||||||||||
Sales | — | — | — | |||||||||||||
Settlements | — | (135,897 | ) | — | ||||||||||||
Ending balance | $ | 2,898,209 | $ | 1,062,544 | $ | 44,449 | ||||||||||
ASSETS | LIABILITIES | |||||||||||||||
For the year ended December 31, 2013 | Mortgage | Excess spread | Mortgage Servicing Rights Financing | |||||||||||||
servicing rights | financing | |||||||||||||||
Beginning balance | $ | 635,860 | $ | 288,089 | $ | — | ||||||||||
Transfers into Level 3 | — | — | — | |||||||||||||
Transfers out of Level 3 | — | — | — | |||||||||||||
Total gains or losses | ||||||||||||||||
Included in earnings | 58,458 | 73,333 | — | |||||||||||||
Included in other comprehensive income | — | — | — | |||||||||||||
Purchases, issuances, sales and settlements | ||||||||||||||||
Purchases | 1,545,584 | — | — | |||||||||||||
Issuances | 248,381 | 755,344 | 29,874 | |||||||||||||
Sales | — | — | — | |||||||||||||
Settlements | — | (130,356 | ) | — | ||||||||||||
Ending balance | $ | 2,488,283 | $ | 986,410 | $ | 29,874 | ||||||||||
The table below presents a summary of the estimated carrying amount and fair value of Nationstar’s financial instruments. | ||||||||||||||||
September 30, 2014 | ||||||||||||||||
Carrying | Fair Value | |||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 269,735 | $ | 269,735 | $ | — | $ | — | ||||||||
Restricted cash | 294,044 | 294,044 | — | — | ||||||||||||
Mortgage loans held for sale | 1,697,041 | — | 1,696,657 | — | ||||||||||||
Mortgage loans held for investment, net | 195,432 | — | — | 168,959 | ||||||||||||
Reverse mortgage interests | 1,956,952 | — | — | 1,937,199 | ||||||||||||
Derivative financial instruments | 88,333 | — | 88,333 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Notes payable | 3,532,743 | — | — | 3,532,743 | ||||||||||||
Unsecured senior notes | 2,159,651 | 2,150,702 | — | — | ||||||||||||
Derivative financial instruments | 9,621 | — | 9,621 | — | ||||||||||||
Nonrecourse debt - Legacy assets | 78,481 | — | — | 89,018 | ||||||||||||
Excess spread financing | 1,062,544 | — | — | 1,062,544 | ||||||||||||
Participating interest financing | 1,367,382 | — | 1,336,722 | — | ||||||||||||
Mortgage servicing rights financing liability | 44,449 | — | — | 44,449 | ||||||||||||
December 31, 2013 | ||||||||||||||||
Carrying | Fair Value | |||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 441,902 | $ | 441,902 | $ | — | $ | — | ||||||||
Restricted cash | 592,747 | 592,747 | — | — | ||||||||||||
Mortgage loans held for sale | 2,603,380 | — | 2,601,520 | — | ||||||||||||
Mortgage loans held for investment, net | 211,050 | — | — | 180,435 | ||||||||||||
Reverse mortgage interests | 1,434,506 | — | — | 1,405,197 | ||||||||||||
Derivative financial instruments | 123,878 | — | 123,878 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Notes payable | 6,984,351 | — | — | 6,984,351 | ||||||||||||
Unsecured senior notes | 2,444,062 | 2,489,886 | — | — | ||||||||||||
Derivative financial instruments | 8,526 | — | 8,526 | — | ||||||||||||
Nonrecourse debt - Legacy assets | 89,107 | — | — | 95,345 | ||||||||||||
Excess spread financing | 986,410 | — | — | 986,410 | ||||||||||||
Participating interest financing | 1,103,490 | — | 1,093,747 | — | ||||||||||||
Mortgage servicing rights financing liability | 29,874 | — | — | 29,874 | ||||||||||||
Capital_Requirements
Capital Requirements | 9 Months Ended |
Sep. 30, 2014 | |
Mortgage Banking [Abstract] | ' |
Capital Requirements | ' |
Capital Requirements | |
Certain of Nationstar's secondary market investors require minimum net worth (capital) requirements, as specified in the respective selling and servicing agreements. In addition, these investors may require capital ratios in excess of the stated requirements to approve large servicing transfers. To the extent that these requirements are not met, Nationstar's secondary market investors may utilize a range of remedies ranging from sanctions, suspension or ultimately termination of Nationstar's selling and servicing agreements, which would prohibit Nationstar from further originating or securitizing these specific types of mortgage loans or being an approved servicer. | |
Among Nationstar's various capital requirements related to its outstanding selling and servicing agreements, the most restrictive of these requires Nationstar to maintain a minimum adjusted net worth balance of $653.5 million. As of September 30, 2014, Nationstar was in compliance with its selling and servicing capital requirements. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Litigation and Regulatory Matters | |
Nationstar and its affiliates are routinely and currently involved in a significant number of legal proceedings concerning matters that arise in the ordinary course of business, including putative class actions and other litigation. These actions and proceedings are generally based on alleged violations of consumer protection, securities, employment, contract and other laws, including, without limitation, the Equal Credit Opportunity Act, Fair Debt Collection Practices Act, Fair Credit Reporting Act, Real Estate Settlement Procedures Act, Servicemember's Civil Relief Act, Telephone Consumer Protection Act, Truth in Lending Act, Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and False Claims Act. Additionally, along with others in our industry, the Company is subject to repurchase and indemnification claims and may continue to receive claims in the future, relating to the sale of mortgage loans and/or the servicing of mortgage loans and securitizations. The Company is also subject to legal actions or proceedings related to loss sharing and indemnification provisions of our various acquisitions. Certain of the actual legal actions and proceedings include claims for substantial compensatory, punitive and/or statutory damages or claims for an indeterminate amount of damages. The outcome of such proceedings is difficult to predict or estimate until late in the proceedings, which may last several years. In particular, ongoing and other legal proceedings brought under federal or state consumer protection laws may result in a separate fine for each violation of the laws, which, particularly in the case of class action lawsuits, could result in damages substantially in excess of the amount earned from the underlying activities and that could have a material adverse effect on the Company's liquidity and financial position. The certification of any putative class action could substantially increase the Company's exposure to damages. | |
Further, in the ordinary course of business the Company and its subsidiaries can be or are involved in governmental and regulatory examinations, information gathering requests, investigations and proceedings (both formal and informal), regarding the Company’s business, certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. Such inquiries may include those into servicer foreclosure processes and procedures, lender-placed insurance and originations. | |
The Company seeks to resolve all litigation and regulatory matters in the manner management believes is in the best interest of the Company and contests liability, allegations of wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal and regulatory proceedings utilizing the latest information available. Where available information indicates that it is probable a liability has been incurred and the Company can reasonably estimate the amount of that loss an accrued liability is established. The actual costs of resolving these proceedings may be substantially higher or lower than the amounts accrued. | |
When a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. As a litigation or regulatory matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is both probable and estimable. If, at the time of evaluation, the loss contingency is not both probable and estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and estimable. Once the matter is deemed to be both probable and estimable, the Company will establish an accrued liability and record a corresponding amount to litigation related expense. The Company will continue to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. Litigation related expense, which includes the fees paid to external legal service providers, of $3.6 million and $18.8 million were included in general and administrative expense on the consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2014, respectively, and $6.2 million and $14.2 million for the three and nine months ended September 30, 2013, respectively, were included in general and administrative expenses on the consolidated statements of income and comprehensive income. | |
For a number of matters for which a loss is probable or reasonably possible in future periods, whether in excess of a related accrued liability or where there is no accrued liability, the Company may be able to estimate a range of possible loss. In determining whether it is possible to provide an estimate of loss or range of possible loss, the Company reviews and evaluates its material litigation and regulatory matters on an ongoing basis, in conjunction with any outside counsel handling the matter. For those matters for which an estimate is possible, management currently believes the aggregate range of reasonably possible loss is $2.6 million to $6.9 million in excess of the accrued liability (if any) related to those matters as of September 30, 2014. This estimated range of possible loss is based upon currently available information and is subject to significant judgment, numerous assumptions and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary substantially from the current estimate. Those matters for which an estimate is not possible are not included within the estimated range. Therefore, this estimated range of possible loss represents what management believes to be an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company's maximum loss exposure. | |
Based on current knowledge, and after consultation with counsel, management believes that the current legal accrued liability is appropriate, and the amount of any incremental liability arising from these matters is not expected to have a material adverse effect on the consolidated financial condition of the Company, although the outcome of such proceedings could be material to the Company’s operating results and cash flows for a particular period depending, on among other things, the level of the Company’s revenues or income for such period. However, in the event of significant developments on existing cases, it is possible that the ultimate resolution, if unfavorable, may be material to the Company’s consolidated financial statements. | |
Loan and Other Commitments | |
Nationstar enters into IRLCs with prospective borrowers whereby the Company commits to lend a certain loan amount under specific terms and interest rates to the borrower. Nationstar also enters into LPCs with prospective sellers. These loan commitments are treated as derivatives and are carried at fair value (See Note 9 - Derivative Financial Instruments). | |
Nationstar has certain MSRs related to approximately $28.4 billion of unpaid principal balance in reverse mortgage loans. As servicer for these reverse mortgage loans, among other things, the Company is obligated to make advances to the loan customers as required. At September 30, 2014, the Company’s maximum unfunded advance obligation related to these MSRs was approximately $4.2 billion. Upon funding any portion of these advances, the Company expects to securitize and sell the advances in transactions that will be accounted for as a financing arrangement. |
Business_Segment_Reporting
Business Segment Reporting | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Business Segment Reporting | ' | ||||||||||||||||||||||||||||
Business Segment Reporting | |||||||||||||||||||||||||||||
As of the second quarter of 2014, the Company realigned its business segment reporting structure as a result of the change in the Chief Operating Decision Maker. While this financial data reflects the change in the Company's reportable segments described below, including the historical data presented for comparison purposes, the Company has not revised or restated its historical financial statements for any period. The realignment principally involved the separation of the former ‘Servicing’ segment into two segments and the reclassification of previously allocated corporate costs, including interest costs related to Nationstar’s unsecured senior debt, into the Corporate and Other segment. Corporate costs included within the Corporate and Other segment include expenses related to certain executive salaries and other corporate functions that are not directly attributable to our operating segments. | |||||||||||||||||||||||||||||
Nationstar’s segments are based upon Nationstar’s organizational structure which focuses primarily on the services offered. The accounting policies of each reportable segment are the same as those of Nationstar except for 1) expenses for consolidated back-office operations and general overhead-type expenses such as executive administration and accounting, and 2) revenues generated on inter-segment services performed. Expenses are allocated to individual segments based on the estimated value of services performed, including estimated utilization of square footage and corporate personnel as well as the equity invested in each segment. Revenues generated or inter-segment services performed are valued based on similar services provided to external parties. | |||||||||||||||||||||||||||||
To reconcile to Nationstar’s consolidated results, certain inter-segment revenues and expenses are eliminated in the “Eliminations” column in the following tables. | |||||||||||||||||||||||||||||
The following tables are a presentation of financial information by segment for the periods indicated: | |||||||||||||||||||||||||||||
Three months ended September 30, 2014 | |||||||||||||||||||||||||||||
Servicing | Originations | Solutionstar | Total Operating | Corporate and Other | Eliminations | Consolidated | |||||||||||||||||||||||
Segments | |||||||||||||||||||||||||||||
REVENUES: | |||||||||||||||||||||||||||||
Servicing fee income | $ | 253,434 | $ | 105 | $ | 4 | $ | 253,543 | $ | (1,002 | ) | $ | (17,133 | ) | $ | 235,408 | |||||||||||||
Other fee income | 28,113 | 10,334 | 85,519 | 123,966 | 2,135 | — | 126,101 | ||||||||||||||||||||||
Total fee income | 281,547 | 10,439 | 85,523 | 377,509 | 1,133 | (17,133 | ) | 361,509 | |||||||||||||||||||||
Gain/(loss) on mortgage loans held for sale | (1,147 | ) | 128,355 | — | 127,208 | (1,172 | ) | 16,779 | 142,815 | ||||||||||||||||||||
Total revenues | 280,400 | 138,794 | 85,523 | 504,717 | (39 | ) | (354 | ) | 504,324 | ||||||||||||||||||||
Total expenses and impairments | 160,975 | 89,369 | 50,006 | 300,350 | 26,874 | — | 327,224 | ||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||
Interest income | 18,369 | 18,903 | — | 37,272 | 5,688 | 354 | 43,314 | ||||||||||||||||||||||
Interest expense | (48,651 | ) | (17,085 | ) | (352 | ) | (66,088 | ) | (50,585 | ) | — | (116,673 | ) | ||||||||||||||||
Gain on sale of property | — | — | — | — | 4,898 | — | 4,898 | ||||||||||||||||||||||
Gain (loss) on interest rate swaps and caps | 795 | — | — | 795 | 145 | — | 940 | ||||||||||||||||||||||
Total other income (expense) | (29,487 | ) | 1,818 | (352 | ) | (28,021 | ) | (39,854 | ) | 354 | (67,521 | ) | |||||||||||||||||
Income (loss) before taxes | $ | 89,938 | $ | 51,243 | $ | 35,165 | $ | 176,346 | $ | (66,767 | ) | $ | — | $ | 109,579 | ||||||||||||||
Depreciation and amortization | $ | 2,886 | $ | 1,049 | $ | 922 | $ | 4,857 | $ | 4,705 | $ | — | $ | 9,562 | |||||||||||||||
Total assets | 8,370,695 | 1,929,239 | 319,910 | 10,619,844 | 257,200 | — | 10,877,044 | ||||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||||||||||
Servicing | Originations | Solutionstar | Total Operating | Corporate and Other | Eliminations | Consolidated | |||||||||||||||||||||||
Segments | |||||||||||||||||||||||||||||
REVENUES: | |||||||||||||||||||||||||||||
Servicing fee income | $ | 357,262 | $ | (1 | ) | $ | 13 | $ | 357,274 | $ | 551 | $ | (16,146 | ) | $ | 341,679 | |||||||||||||
Other fee income | 19,782 | 23,117 | 41,254 | 84,153 | 50 | — | 84,203 | ||||||||||||||||||||||
Total fee income | 377,044 | 23,116 | 41,267 | 441,427 | 601 | (16,146 | ) | 425,882 | |||||||||||||||||||||
Gain/(loss) on mortgage loans held for sale | 124 | 190,186 | — | 190,310 | (101 | ) | 15,747 | 205,956 | |||||||||||||||||||||
Total revenues | 377,168 | 213,302 | 41,267 | 631,737 | 500 | (399 | ) | 631,838 | |||||||||||||||||||||
Total expenses and impairments | 158,247 | 176,600 | 31,964 | 366,811 | 29,043 | — | 395,854 | ||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||
Interest income | 31,913 | 28,273 | — | 60,186 | 3,318 | 399 | 63,903 | ||||||||||||||||||||||
Interest expense | (85,653 | ) | (32,879 | ) | (103 | ) | (118,635 | ) | (49,580 | ) | — | (168,215 | ) | ||||||||||||||||
Gain (loss) on interest rate swaps and caps | 94 | — | — | 94 | 306 | — | 400 | ||||||||||||||||||||||
Total other income (expense) | (53,646 | ) | (4,606 | ) | (103 | ) | (58,355 | ) | (45,956 | ) | 399 | (103,912 | ) | ||||||||||||||||
Income (loss) before taxes | $ | 165,275 | $ | 32,096 | $ | 9,200 | $ | 206,571 | $ | (74,499 | ) | $ | — | $ | 132,072 | ||||||||||||||
Depreciation and amortization | $ | 3,659 | $ | 1,914 | $ | 409 | $ | 5,982 | $ | 1,013 | $ | — | $ | 6,995 | |||||||||||||||
Total assets | 10,067,020 | 4,256,216 | 38,977 | 14,362,213 | 2,705,859 | — | 17,068,072 | ||||||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||||||||||
Servicing | Originations | Solutionstar | Total Operating | Corporate and Other | Eliminations | Consolidated | |||||||||||||||||||||||
Segments | |||||||||||||||||||||||||||||
REVENUES: | |||||||||||||||||||||||||||||
Servicing fee income | $ | 787,972 | $ | 317 | $ | 17 | $ | 788,306 | $ | (429 | ) | $ | (54,206 | ) | $ | 733,671 | |||||||||||||
Other fee income | 71,722 | 38,071 | 233,869 | 343,662 | 2,704 | — | 346,366 | ||||||||||||||||||||||
Total fee income | 859,694 | 38,388 | 233,886 | 1,131,968 | 2,275 | (54,206 | ) | 1,080,037 | |||||||||||||||||||||
Gain/(loss) on mortgage loans held for sale | (2,972 | ) | 395,756 | — | 392,784 | (2,223 | ) | 53,106 | 443,667 | ||||||||||||||||||||
Total revenues | 856,722 | 434,144 | 233,886 | 1,524,752 | 52 | (1,100 | ) | 1,523,704 | |||||||||||||||||||||
Total expenses and impairments | 511,998 | 291,503 | 134,725 | 938,226 | 56,842 | — | 995,068 | ||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||
Interest income | 59,191 | 57,751 | — | 116,942 | 12,156 | 1,100 | 130,198 | ||||||||||||||||||||||
Interest expense | (199,464 | ) | (56,333 | ) | (496 | ) | (256,293 | ) | (156,402 | ) | — | (412,695 | ) | ||||||||||||||||
Gain on sale of property | — | — | — | — | 4,898 | — | 4,898 | ||||||||||||||||||||||
Gain (loss) on interest rate swaps and caps | 2,156 | — | — | 2,156 | 652 | — | 2,808 | ||||||||||||||||||||||
Total other income (expense) | (138,117 | ) | 1,418 | (496 | ) | (137,195 | ) | (138,696 | ) | 1,100 | (274,791 | ) | |||||||||||||||||
Income (loss) before taxes | $ | 206,607 | $ | 144,059 | $ | 98,665 | $ | 449,331 | $ | (195,486 | ) | $ | — | $ | 253,845 | ||||||||||||||
Depreciation and amortization | $ | 11,453 | $ | 7,754 | $ | 2,764 | $ | 21,971 | $ | 7,992 | $ | — | $ | 29,963 | |||||||||||||||
Total assets | 8,370,695 | 1,929,239 | 319,910 | 10,619,844 | 257,200 | — | 10,877,044 | ||||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||||||||||
Servicing | Originations | Solutionstar | Total Operating | Corporate and Other | Eliminations | Consolidated | |||||||||||||||||||||||
Segments | |||||||||||||||||||||||||||||
REVENUES: | |||||||||||||||||||||||||||||
Servicing fee income | $ | 848,324 | $ | 95 | $ | 41 | $ | 848,460 | $ | 1,322 | $ | (47,198 | ) | $ | 802,584 | ||||||||||||||
Other fee income | 58,795 | 36,479 | 91,694 | 186,968 | (91 | ) | — | 186,877 | |||||||||||||||||||||
Total fee income | 907,119 | 36,574 | 91,735 | 1,035,428 | 1,231 | (47,198 | ) | 989,461 | |||||||||||||||||||||
Gain/(loss) on mortgage loans held for sale | (61 | ) | 631,212 | — | 631,151 | — | 45,953 | 677,104 | |||||||||||||||||||||
Total revenues | 907,058 | 667,786 | 91,735 | 1,666,579 | 1,231 | (1,245 | ) | 1,666,565 | |||||||||||||||||||||
Total expenses and impairments | 432,219 | 424,368 | 75,906 | 932,493 | 71,783 | — | 1,004,276 | ||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||
Interest income | 66,961 | 65,936 | — | 132,897 | 11,806 | 1,245 | 145,948 | ||||||||||||||||||||||
Interest expense | (195,089 | ) | (56,732 | ) | (195 | ) | (252,016 | ) | (126,484 | ) | — | (378,500 | ) | ||||||||||||||||
Gain (loss) on interest rate swaps and caps | 1,466 | — | — | 1,466 | 991 | — | 2,457 | ||||||||||||||||||||||
Total other income (expense) | (126,662 | ) | 9,204 | (195 | ) | (117,653 | ) | (113,687 | ) | 1,245 | (230,095 | ) | |||||||||||||||||
Income (loss) before taxes | $ | 348,177 | $ | 252,622 | $ | 15,634 | $ | 616,433 | $ | (184,239 | ) | $ | — | $ | 432,194 | ||||||||||||||
Depreciation and amortization | $ | 9,315 | $ | 4,149 | 712 | $ | 14,176 | $ | 2,510 | $ | — | $ | 16,686 | ||||||||||||||||
Total assets | 10,067,020 | 4,256,216 | 38,977 | 14,362,213 | 2,705,859 | — | 17,068,072 | ||||||||||||||||||||||
Guarantor_Financial_Statement_
Guarantor Financial Statement Information | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Guarantor Financial Statement Information | ' | ||||||||||||||||||||||||
. Guarantor Financial Statement Information | |||||||||||||||||||||||||
As of September 30, 2014, Nationstar Mortgage LLC and Nationstar Capital Corporation(1) (collectively, the Issuer), both wholly owned subsidiaries of Nationstar, have issued $2.2 billion aggregate principal amount of unsecured senior notes which mature on various dates through June 1, 2022. The unsecured senior notes are unconditionally guaranteed, jointly and severally, by all of Nationstar Mortgage LLC’s existing and future domestic subsidiaries other than its securitization and certain finance subsidiaries, certain other restricted subsidiaries, excluded restricted subsidiaries and subsidiaries that in the future Nationstar Mortgage LLC designates as unrestricted subsidiaries. All guarantor subsidiaries are 100% owned by Nationstar Mortgage LLC. Nationstar and its two direct wholly-owned subsidiaries are guarantors of the unsecured senior notes as well. Presented below are the condensed consolidating financial statements of Nationstar, Nationstar Mortgage LLC and the guarantor subsidiaries for the periods indicated. | |||||||||||||||||||||||||
In the condensed consolidating financial statements presented below, Nationstar allocates income tax expense to Nationstar Mortgage LLC as if it were a separate tax payer entity pursuant to ASC 740, Income Taxes. | |||||||||||||||||||||||||
(1)Nationstar Capital Corporation has no assets, operations or liabilities other than being a co-obliger of the unsecured senior notes. | |||||||||||||||||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. | |||||||||||||||||||||||||
CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
Assets | Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 256,513 | $ | 691 | $ | 12,531 | $ | — | $ | 269,735 | |||||||||||||
Restricted cash | — | 195,522 | — | 98,522 | — | 294,044 | |||||||||||||||||||
Accounts receivable | — | 2,989,520 | 2,115 | 68,747 | — | 3,060,382 | |||||||||||||||||||
Mortgage loans held for sale | — | 1,655,677 | — | 41,364 | — | 1,697,041 | |||||||||||||||||||
Mortgage loans held for investment, net | — | 1,549 | — | 193,883 | — | 195,432 | |||||||||||||||||||
Reverse mortgage interests | — | 1,956,952 | — | — | — | 1,956,952 | |||||||||||||||||||
Mortgage servicing rights | — | 2,910,640 | — | — | — | 2,910,640 | |||||||||||||||||||
Investment in subsidiaries | 1,181,205 | 305,193 | — | — | (1,486,398 | ) | — | ||||||||||||||||||
Property and equipment, net | — | 108,980 | 835 | 11,820 | — | 121,635 | |||||||||||||||||||
Derivative financial instruments | — | 83,627 | — | 4,706 | — | 88,333 | |||||||||||||||||||
Other assets | 17,118 | 523,979 | 268,420 | 1,036,860 | (1,563,527 | ) | 282,850 | ||||||||||||||||||
Total assets | $ | 1,198,323 | $ | 10,988,152 | $ | 272,061 | $ | 1,468,433 | $ | (3,049,925 | ) | $ | 10,877,044 | ||||||||||||
Liabilities and stockholders’ equity | |||||||||||||||||||||||||
Notes payable | $ | — | $ | 2,489,464 | $ | — | $ | 1,043,279 | $ | — | $ | 3,532,743 | |||||||||||||
Unsecured senior notes | — | 2,159,651 | — | — | — | 2,159,651 | |||||||||||||||||||
Payables and accrued liabilities | — | 1,343,809 | — | 32,619 | (31,533 | ) | 1,344,895 | ||||||||||||||||||
Payables to affiliates | — | 1,251,073 | 116,349 | 164,572 | (1,531,994 | ) | — | ||||||||||||||||||
Derivative financial instruments | — | 9,621 | — | — | — | 9,621 | |||||||||||||||||||
Mortgage servicing liabilities | — | 78,954 | — | — | — | 78,954 | |||||||||||||||||||
Other nonrecourse debt | — | 2,474,375 | — | 78,481 | — | 2,552,856 | |||||||||||||||||||
Total liabilities | — | 9,806,947 | 116,349 | 1,318,951 | (1,563,527 | ) | 9,678,720 | ||||||||||||||||||
Total equity | 1,198,323 | 1,181,205 | 155,712 | 149,482 | (1,486,398 | ) | 1,198,324 | ||||||||||||||||||
Total liabilities and equity | $ | 1,198,323 | $ | 10,988,152 | $ | 272,061 | $ | 1,468,433 | $ | (3,049,925 | ) | $ | 10,877,044 | ||||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. | |||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 (IN THOUSANDS) | |||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Servicing fee income | $ | — | $ | 252,537 | $ | 4 | $ | — | $ | (17,133 | ) | $ | 235,408 | ||||||||||||
Other fee income | — | 58,284 | (12,973 | ) | 80,790 | — | 126,101 | ||||||||||||||||||
Total fee income | — | 310,821 | (12,969 | ) | 80,790 | (17,133 | ) | 361,509 | |||||||||||||||||
Gain on mortgage loans held for sale | — | 121,912 | — | 4,124 | 16,779 | 142,815 | |||||||||||||||||||
Total revenues | — | 432,733 | (12,969 | ) | 84,914 | (354 | ) | 504,324 | |||||||||||||||||
Expenses and impairments: | |||||||||||||||||||||||||
Salaries, wages and benefits | — | 135,686 | 750 | 24,321 | — | 160,757 | |||||||||||||||||||
General and administrative | — | 130,356 | (3,002 | ) | 29,714 | — | 157,068 | ||||||||||||||||||
Loss on foreclosed real estate and other | — | 1,230 | — | 1,501 | — | 2,731 | |||||||||||||||||||
Occupancy | — | 5,606 | 44 | 1,018 | — | 6,668 | |||||||||||||||||||
Total expenses and impairments | — | 272,878 | (2,208 | ) | 56,554 | — | 327,224 | ||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||
Interest income | — | 38,403 | — | 4,557 | 354 | 43,314 | |||||||||||||||||||
Interest expense | — | (106,771 | ) | — | (9,902 | ) | — | (116,673 | ) | ||||||||||||||||
Gain on disposal of property | — | 4,898 | — | — | — | 4,898 | |||||||||||||||||||
Gain/(Loss) on interest rate swaps and caps | — | 145 | — | 795 | — | 940 | |||||||||||||||||||
Gain/(loss) from subsidiaries | 111,225 | 13,049 | — | — | (124,274 | ) | — | ||||||||||||||||||
Total other income (expense) | 111,225 | (50,276 | ) | — | (4,550 | ) | (123,920 | ) | (67,521 | ) | |||||||||||||||
Income before taxes | 111,225 | 109,579 | (10,761 | ) | 23,810 | (124,274 | ) | 109,579 | |||||||||||||||||
Income tax expense/(benefit) | — | (1,700 | ) | — | — | — | (1,700 | ) | |||||||||||||||||
Net income/(loss) | 111,225 | 111,279 | (10,761 | ) | 23,810 | (124,274 | ) | 111,279 | |||||||||||||||||
Less: Net loss attributable to noncontrolling interests | — | 54 | — | — | — | 54 | |||||||||||||||||||
Net income/(loss) excluding noncontrolling interests | $ | 111,225 | $ | 111,225 | $ | (10,761 | ) | $ | 23,810 | $ | (124,274 | ) | $ | 111,225 | |||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. | |||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Servicing fee income | $ | — | $ | 787,860 | $ | 17 | $ | — | $ | (54,206 | ) | $ | 733,671 | ||||||||||||
Other fee income | — | 90,309 | 45,569 | 210,488 | — | 346,366 | |||||||||||||||||||
Total fee income | — | 878,169 | 45,586 | 210,488 | (54,206 | ) | 1,080,037 | ||||||||||||||||||
Gain on mortgage loans held for sale | — | 386,461 | — | 4,100 | 53,106 | 443,667 | |||||||||||||||||||
Total revenues | — | 1,264,630 | 45,586 | 214,588 | (1,100 | ) | 1,523,704 | ||||||||||||||||||
Expenses and impairments: | |||||||||||||||||||||||||
Salaries, wages and benefits | — | 418,190 | 4,257 | 48,957 | — | 471,404 | |||||||||||||||||||
General and administrative | — | 407,220 | 1,461 | 85,772 | — | 494,453 | |||||||||||||||||||
Loss on foreclosed real estate and other | — | (160 | ) | — | 5,986 | — | 5,826 | ||||||||||||||||||
Occupancy | — | 20,609 | 277 | 2,499 | — | 23,385 | |||||||||||||||||||
Total expenses and impairments | — | 845,859 | 5,995 | 143,214 | — | 995,068 | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||
Interest income | — | 116,258 | — | 12,840 | 1,100 | 130,198 | |||||||||||||||||||
Interest expense | — | (367,784 | ) | — | (44,911 | ) | — | (412,695 | ) | ||||||||||||||||
Gain on disposal of property | — | 4,898 | — | — | — | 4,898 | |||||||||||||||||||
Gain/(Loss) on interest rate swaps and caps | — | 652 | — | 2,156 | — | 2,808 | |||||||||||||||||||
Gain/(loss) from subsidiaries | 201,716 | 81,050 | — | — | (282,766 | ) | — | ||||||||||||||||||
Total other income (expense) | 201,716 | (164,926 | ) | — | (29,915 | ) | (281,666 | ) | (274,791 | ) | |||||||||||||||
Income before taxes | 201,716 | 253,845 | 39,591 | 41,459 | (282,766 | ) | 253,845 | ||||||||||||||||||
Income tax expense/(benefit) | — | 52,242 | — | — | — | 52,242 | |||||||||||||||||||
Net income/(loss) | 201,716 | 201,603 | 39,591 | 41,459 | (282,766 | ) | 201,603 | ||||||||||||||||||
Less: Net loss attributable to noncontrolling interests | — | (113 | ) | — | — | — | (113 | ) | |||||||||||||||||
Net income/(loss) excluding noncontrolling interests | $ | 201,716 | $ | 201,716 | $ | 39,591 | $ | 41,459 | $ | (282,766 | ) | $ | 201,716 | ||||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. | |||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Operating activities: | |||||||||||||||||||||||||
Net income/(loss) | $ | 201,716 | $ | 201,716 | $ | 39,591 | $ | 41,459 | $ | (282,766 | ) | $ | 201,716 | ||||||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||||||||||||||||||||||
(Gain)/loss from subsidiaries | (201,716 | ) | (81,050 | ) | — | — | 282,766 | — | |||||||||||||||||
Share-based compensation | — | 11,344 | — | — | — | 11,344 | |||||||||||||||||||
Net tax effect of stock grants | — | (2,197 | ) | — | — | — | (2,197 | ) | |||||||||||||||||
Loss on foreclosed real estate and other | — | (160 | ) | — | 5,986 | — | 5,826 | ||||||||||||||||||
Gain on mortgage loans held for sale | — | (386,461 | ) | — | (4,100 | ) | (53,106 | ) | (443,667 | ) | |||||||||||||||
Mortgage loans originated and purchased, net of fees | — | (16,548,058 | ) | — | — | — | (16,548,058 | ) | |||||||||||||||||
Proceeds on sale of and payments of mortgage loans held for sale | — | 17,729,442 | — | (25,493 | ) | 53,106 | 17,757,055 | ||||||||||||||||||
(Gain)/loss on derivatives including ineffectiveness | — | (652 | ) | — | (2,156 | ) | — | (2,808 | ) | ||||||||||||||||
Cash settlement on derivative financial instruments | — | — | — | 1,352 | — | 1,352 | |||||||||||||||||||
Depreciation and amortization | — | 27,148 | 89 | 2,726 | — | 29,963 | |||||||||||||||||||
Amortization (accretion) of premiums/discounts | — | 18,578 | — | (1,918 | ) | — | 16,660 | ||||||||||||||||||
Fair value changes in excess spread financing | — | 61,080 | — | — | — | 61,080 | |||||||||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights | — | 128,227 | — | — | — | 128,227 | |||||||||||||||||||
Fair value change in mortgage servicing rights liability | — | (38,260 | ) | — | — | — | (38,260 | ) | |||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||||
Accounts receivable, including servicing advances, net | — | (3,395,051 | ) | 467 | 3,996,133 | — | 601,549 | ||||||||||||||||||
Reverse mortgage funded advances | — | (572,544 | ) | — | — | — | (572,544 | ) | |||||||||||||||||
Other assets | 4,755 | 1,659,322 | (37,347 | ) | (1,564,513 | ) | 69 | 62,286 | |||||||||||||||||
Payables and accrued liabilities | — | (38,452 | ) | (5,950 | ) | 19,011 | (69 | ) | (25,460 | ) | |||||||||||||||
Net cash attributable to operating activities | 4,755 | (1,226,028 | ) | (3,150 | ) | 2,468,487 | — | 1,244,064 | |||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Investing activities: | |||||||||||||||||||||||||
Property and equipment additions, net of disposals | — | (29,517 | ) | (69 | ) | (11,981 | ) | — | (41,567 | ) | |||||||||||||||
Gain on disposal of building | — | 10,412 | — | — | — | 10,412 | |||||||||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | — | (317,247 | ) | — | — | — | (317,247 | ) | |||||||||||||||||
Proceeds from sale of servicer advances | — | 512,527 | — | — | — | 512,527 | |||||||||||||||||||
Loan repurchases from Ginnie Mae | — | (9,134 | ) | — | — | — | (9,134 | ) | |||||||||||||||||
Proceeds from sales of REO | — | 70,480 | — | — | — | 70,480 | |||||||||||||||||||
Acquisitions, net | — | (18,000 | ) | — | — | — | (18,000 | ) | |||||||||||||||||
Net cash attributable to investing activities | — | 219,521 | (69 | ) | (11,981 | ) | — | 207,471 | |||||||||||||||||
Financing activities: | |||||||||||||||||||||||||
Transfers (to)/from restricted cash, net | — | 100,185 | 3 | 182,101 | — | 282,289 | |||||||||||||||||||
Repayment of unsecured senior notes | — | (285,000 | ) | — | — | — | (285,000 | ) | |||||||||||||||||
Debt financing costs | — | (11,461 | ) | — | — | — | (11,461 | ) | |||||||||||||||||
Increase/(decrease) in notes payable | — | 687,306 | — | (2,629,447 | ) | — | (1,942,141 | ) | |||||||||||||||||
Issuance of excess spread financing | — | 150,951 | — | — | — | 150,951 | |||||||||||||||||||
Repayment of excess spread financing | — | (135,897 | ) | — | — | — | (135,897 | ) | |||||||||||||||||
Increase in participating interest financing in reverse mortgage interests | — | 279,636 | — | — | — | 279,636 | |||||||||||||||||||
Proceeds from mortgage servicing rights financing | — | 52,835 | — | — | — | 52,835 | |||||||||||||||||||
Repayment of nonrecourse debt–Legacy assets | — | — | — | (12,356 | ) | — | (12,356 | ) | |||||||||||||||||
Net tax benefit for stock grants issued | — | 2,197 | — | — | — | 2,197 | |||||||||||||||||||
Redemption of shares for stock vesting | (4,755 | ) | — | — | — | — | (4,755 | ) | |||||||||||||||||
Net cash attributable to financing activities | (4,755 | ) | 840,752 | 3 | (2,459,702 | ) | — | (1,623,702 | ) | ||||||||||||||||
Net increase in cash and cash equivalents | — | (165,755 | ) | (3,216 | ) | (3,196 | ) | — | (172,167 | ) | |||||||||||||||
Cash and cash equivalents at beginning of period | — | 422,268 | 3,907 | 15,727 | — | 441,902 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 256,513 | $ | 691 | $ | 12,531 | $ | — | $ | 269,735 | |||||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. | |||||||||||||||||||||||||
CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 422,268 | $ | 3,907 | $ | 15,727 | $ | — | $ | 441,902 | |||||||||||||
Restricted cash | — | 312,120 | 3 | 280,624 | — | 592,747 | |||||||||||||||||||
Accounts receivable | — | 1,569,021 | 2,582 | 4,064,879 | — | 5,636,482 | |||||||||||||||||||
Mortgage loans held for sale | — | 2,603,380 | — | — | — | 2,603,380 | |||||||||||||||||||
Mortgage loans held for investment, net | — | 2,786 | — | 208,264 | — | 211,050 | |||||||||||||||||||
Reverse mortgage interests | — | 1,434,506 | — | — | — | 1,434,506 | |||||||||||||||||||
Mortgage servicing rights | — | 2,503,162 | — | — | — | 2,503,162 | |||||||||||||||||||
Investment in subsidiaries | 968,027 | 181,545 | — | — | (1,149,572 | ) | — | ||||||||||||||||||
Property and equipment, net | — | 115,765 | 855 | 2,565 | — | 119,185 | |||||||||||||||||||
Derivative financial instruments | — | 120,187 | — | 3,691 | — | 123,878 | |||||||||||||||||||
Other assets | 21,872 | 4,683,749 | 323,346 | 3,373,048 | (8,041,618 | ) | 360,397 | ||||||||||||||||||
Total assets | $ | 989,899 | $ | 13,948,489 | $ | 330,693 | $ | 7,948,798 | $ | (9,191,190 | ) | $ | 14,026,689 | ||||||||||||
Liabilities and members’ equity | |||||||||||||||||||||||||
Notes payable | $ | — | $ | 3,311,625 | $ | — | $ | 3,672,726 | $ | — | $ | 6,984,351 | |||||||||||||
Unsecured senior notes | — | 2,444,062 | — | — | — | 2,444,062 | |||||||||||||||||||
Payables and accrued liabilities | — | 1,319,172 | 5,950 | 14,791 | (31,463 | ) | 1,308,450 | ||||||||||||||||||
Payables to affiliates | — | 3,694,782 | 116,349 | 4,199,023 | (8,010,154 | ) | — | ||||||||||||||||||
Derivative financial instruments | — | 8,526 | — | — | — | 8,526 | |||||||||||||||||||
Mortgage servicing liabilities | — | 82,521 | — | — | — | 82,521 | |||||||||||||||||||
Other nonrecourse debt | — | 2,119,774 | — | 89,107 | — | 2,208,881 | |||||||||||||||||||
Total liabilities | — | 12,980,462 | 122,299 | 7,975,647 | (8,041,617 | ) | 13,036,791 | ||||||||||||||||||
Total equity | 989,899 | 968,027 | 208,394 | (26,849 | ) | (1,149,573 | ) | 989,898 | |||||||||||||||||
Total liabilities and equity | $ | 989,899 | $ | 13,948,489 | $ | 330,693 | $ | 7,948,798 | $ | (9,191,190 | ) | $ | 14,026,689 | ||||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Servicing fee income | $ | — | $ | 357,832 | $ | — | $ | — | $ | (16,153 | ) | $ | 341,679 | ||||||||||||
Other fee income | — | 23,404 | 58,780 | 2,019 | — | 84,203 | |||||||||||||||||||
Total fee income | — | 381,236 | 58,780 | 2,019 | (16,153 | ) | 425,882 | ||||||||||||||||||
Gain on mortgage loans held for sale | — | 190,202 | — | — | 15,754 | 205,956 | |||||||||||||||||||
Total revenues | — | 571,438 | 58,780 | 2,019 | (399 | ) | 631,838 | ||||||||||||||||||
Expenses and impairments: | |||||||||||||||||||||||||
Salaries, wages and benefits | — | 181,366 | 11,799 | 93 | — | 193,258 | |||||||||||||||||||
General and administrative | — | 167,409 | 19,566 | 542 | — | 187,517 | |||||||||||||||||||
Loss on foreclosed real estate and other | — | 5,221 | — | 4,277 | — | 9,498 | |||||||||||||||||||
Occupancy | — | 5,237 | 344 | — | — | 5,581 | |||||||||||||||||||
Total expenses and impairments | — | 359,233 | 31,709 | 4,912 | — | 395,854 | |||||||||||||||||||
Other income / (expense): | |||||||||||||||||||||||||
Interest income | — | 60,150 | — | 3,354 | 399 | 63,903 | |||||||||||||||||||
Interest expense | — | (132,701 | ) | — | (35,514 | ) | — | (168,215 | ) | ||||||||||||||||
Gain on interest rate swaps and caps | — | 306 | — | 94 | — | 400 | |||||||||||||||||||
Gain /(loss) from subsidiaries | 81,885 | (7,888 | ) | — | — | (73,997 | ) | — | |||||||||||||||||
Total other income /(expense) | 81,885 | (80,133 | ) | — | (32,066 | ) | (73,598 | ) | (103,912 | ) | |||||||||||||||
Income before taxes | 81,885 | 132,072 | 27,071 | (34,959 | ) | (73,997 | ) | 132,072 | |||||||||||||||||
Income tax expense | — | 50,187 | — | — | — | 50,187 | |||||||||||||||||||
Net income (loss) | $ | 81,885 | $ | 81,885 | $ | 27,071 | $ | (34,959 | ) | $ | (73,997 | ) | $ | 81,885 | |||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Servicing fee income | $ | — | $ | 849,789 | $ | — | $ | — | $ | (47,205 | ) | $ | 802,584 | ||||||||||||
Other fee income | — | 37,800 | 146,791 | 2,286 | — | 186,877 | |||||||||||||||||||
Total fee income | — | 887,589 | 146,791 | 2,286 | (47,205 | ) | 989,461 | ||||||||||||||||||
Gain on mortgage loans held for sale | — | 631,144 | — | — | 45,960 | 677,104 | |||||||||||||||||||
Total revenues | — | 1,518,733 | 146,791 | 2,286 | (1,245 | ) | 1,666,565 | ||||||||||||||||||
Expenses and impairments: | |||||||||||||||||||||||||
Salaries, wages and benefits | — | 470,020 | 29,762 | 93 | — | 499,875 | |||||||||||||||||||
General and administrative | — | 425,268 | 46,378 | 595 | — | 472,241 | |||||||||||||||||||
Loss on foreclosed real estate and other | — | 9,288 | — | 4,075 | — | 13,363 | |||||||||||||||||||
Occupancy | — | 18,038 | 759 | — | — | 18,797 | |||||||||||||||||||
Total expenses and impairments | — | 922,614 | 76,899 | 4,763 | — | 1,004,276 | |||||||||||||||||||
Other income / (expense): | |||||||||||||||||||||||||
Interest income | — | 133,834 | — | 10,869 | 1,245 | 145,948 | |||||||||||||||||||
Interest expense | — | (299,225 | ) | — | (79,275 | ) | — | (378,500 | ) | ||||||||||||||||
Gain on interest rate swaps and caps | — | 726 | — | 1,731 | — | 2,457 | |||||||||||||||||||
Gain /(loss) from subsidiaries | 267,961 | 740 | — | — | (268,701 | ) | — | ||||||||||||||||||
Total other income /(expense) | 267,961 | (163,925 | ) | — | (66,675 | ) | (267,456 | ) | (230,095 | ) | |||||||||||||||
Income before taxes | 267,961 | 432,194 | 69,892 | (69,152 | ) | (268,701 | ) | 432,194 | |||||||||||||||||
Income tax expense | — | 164,233 | — | — | — | 164,233 | |||||||||||||||||||
Net income (loss) | $ | 267,961 | $ | 267,961 | $ | 69,892 | $ | (69,152 | ) | $ | (268,701 | ) | $ | 267,961 | |||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. | |||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Operating activities: | |||||||||||||||||||||||||
Net income/(loss) | $ | 267,961 | $ | 267,961 | $ | 69,892 | $ | (69,152 | ) | $ | (268,701 | ) | $ | 267,961 | |||||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||||||||||||||||||||||
(Gain)/loss from subsidiaries | (267,961 | ) | (740 | ) | — | — | 268,701 | — | |||||||||||||||||
Share-based compensation | — | 8,140 | — | — | — | 8,140 | |||||||||||||||||||
Net tax effect of stock grants | — | (2,660 | ) | — | — | — | (2,660 | ) | |||||||||||||||||
Loss on foreclosed real estate and other | — | 9,288 | — | 4,075 | — | 13,363 | |||||||||||||||||||
Gain on mortgage loans held for sale | — | (631,144 | ) | — | — | (45,960 | ) | (677,104 | ) | ||||||||||||||||
Mortgage loans originated and purchased, net of fees | — | (17,166,460 | ) | — | — | — | (17,166,460 | ) | |||||||||||||||||
Proceeds on sale of and payments of mortgage loans held for sale | — | 15,314,755 | — | 15,771 | 45,960 | 15,376,486 | |||||||||||||||||||
(Gain) / loss on derivatives including ineffectiveness | — | (726 | ) | — | (1,731 | ) | — | (2,457 | ) | ||||||||||||||||
Cash settlement on derivatives financial instruments | — | — | — | (4,544 | ) | — | (4,544 | ) | |||||||||||||||||
Depreciation and amortization | — | 15,987 | 651 | 48 | — | 16,686 | |||||||||||||||||||
Amortization (accretion) of premiums/discounts | — | 40,937 | — | (1,676 | ) | — | 39,261 | ||||||||||||||||||
Fair value changes in excess spread financing | — | 33,229 | — | — | — | 33,229 | |||||||||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights | — | (38,117 | ) | — | — | — | (38,117 | ) | |||||||||||||||||
Fair value change in mortgage servicing rights financing liability | — | — | — | — | — | — | |||||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||||
Accounts receivable, including servicing' advances, net | — | (68,473 | ) | (27,589 | ) | (58 | ) | — | (96,120 | ) | |||||||||||||||
Reverse mortgage funded advances | — | (460,534 | ) | — | — | — | (460,534 | ) | |||||||||||||||||
Other assets | 3,894 | 3,076,784 | (50,016 | ) | (3,379,816 | ) | 17,299 | (331,855 | ) | ||||||||||||||||
Payable and accrued liabilities | — | 507,301 | 10,954 | 2,105 | (17,299 | ) | 503,061 | ||||||||||||||||||
Net cash attributable to operating activities | 3,894 | 905,528 | 3,892 | (3,434,978 | ) | — | (2,521,664 | ) | |||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Investing activities: | |||||||||||||||||||||||||
Property and equipment additions, net of disposals | — | (45,767 | ) | (1,064 | ) | (1,052 | ) | — | (47,883 | ) | |||||||||||||||
Purchase of reverse mortgage servicing rights and interests | — | (15,059 | ) | — | — | — | (15,059 | ) | |||||||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | — | (2,331,658 | ) | — | — | — | (2,331,658 | ) | |||||||||||||||||
Proceeds on sale of servicer advances | — | — | — | — | — | — | |||||||||||||||||||
Loan repurchases from Ginnie Mae | — | — | — | — | — | ||||||||||||||||||||
Proceeds from sales of REO | — | 60,389 | — | — | — | 60,389 | |||||||||||||||||||
Acquisitions, net | — | (78,200 | ) | — | — | — | (78,200 | ) | |||||||||||||||||
Net cash attributable to investing activities | — | (2,410,295 | ) | (1,064 | ) | (1,052 | ) | — | (2,412,411 | ) | |||||||||||||||
Financing activities: | |||||||||||||||||||||||||
Transfers (to)/from restricted cash, net | — | (274,085 | ) | (2,454 | ) | (71,960 | ) | — | (348,499 | ) | |||||||||||||||
Issuance of unsecured senior notes, net | — | 1,365,244 | — | — | — | 1,365,244 | |||||||||||||||||||
Debt financing costs | — | (46,784 | ) | — | — | — | (46,784 | ) | |||||||||||||||||
Increase/(decrease) in notes payable | — | (487,360 | ) | — | 3,529,983 | — | 3,042,623 | ||||||||||||||||||
Issuance of excess spread financing | — | 707,640 | — | — | — | 707,640 | |||||||||||||||||||
Repayment of excess servicing spread financing | — | (77,505 | ) | — | — | — | (77,505 | ) | |||||||||||||||||
Increase in participating interest financing in reverse mortgage interests | — | 422,787 | — | — | — | 422,787 | |||||||||||||||||||
Proceeds from mortgage servicing rights financing | — | — | — | — | — | — | |||||||||||||||||||
Repayment of nonrecourse debt–Legacy assets | — | — | — | (9,925 | ) | — | (9,925 | ) | |||||||||||||||||
Due to financial services company | — | — | — | — | — | ||||||||||||||||||||
Contributions from joint venture member to noncontrolling interest | — | 4,990 | — | — | — | 4,990 | |||||||||||||||||||
Net tax benefit for stock grants issued | 2,660 | — | — | — | — | 2,660 | |||||||||||||||||||
Redemption of shares for stock vesting | (6,554 | ) | — | — | — | — | (6,554 | ) | |||||||||||||||||
Net cash attributable to financing activities | (3,894 | ) | 1,614,927 | (2,454 | ) | 3,448,098 | — | 5,056,677 | |||||||||||||||||
Net increase in cash and cash equivalents | — | 110,160 | 374 | 12,068 | — | 122,602 | |||||||||||||||||||
Cash and cash equivalents at beginning of period | — | 152,248 | 401 | — | — | 152,649 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 262,408 | $ | 775 | $ | 12,068 | $ | — | $ | 275,251 | |||||||||||||
Affiliates_of_Fortress_Investm
Affiliates of Fortress Investment Group | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Affiliates of Fortress Investment Group | ' |
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC | |
Nationstar has several agreements to act as the loan subservicer for Springleaf Home Equity, Inc., Springleaf General Financial Services of Arkansas, Inc. and MorEquity, Inc. (collectively, Springleaf) totaling $2.2 billion for which Nationstar receives a monthly per loan subservicing fee and other performance incentive fees subject to the agreements with Springleaf. For the three months ended September 30, 2014 and 2013 Nationstar recognized revenue of $1.1 million and $2.1 million, respectively in additional servicing and other performance incentive fees related to these portfolios. For the nine months ended September 30, 2014 and 2013, Nationstar recognized revenue of $4.7 million and $6.1 million, respectively in additional servicing and other performance incentive fees related to these portfolios. At September 30, 2014 and December 31, 2013, Nationstar had an outstanding receivable from Springleaf of $0.5 million and $0.6 million, respectively, which was included as a component of accounts receivable. | |
In August 2014, Nationstar entered into a Mortgage Servicing Rights Purchase and Sale Agreement with Springleaf Finance Corporation and MorEquity, Inc., whereby Nationstar agreed to purchase certain servicing rights related to loans previously subserviced for Springleaf. Under the terms of this Mortgage Servicing Rights Purchase and Sale Agreement, Nationstar purchased the servicing rights related to a pool of loans with an aggregate UPB of approximately $4.8 billion. The purchase price related to this Mortgage Servicing Rights Purchase and Sale Agreement was approximately $38.8 million. | |
Nationstar is the loan servicer for several securitized loan portfolios managed by Newcastle Investment Corp. (Newcastle), which is managed by an affiliate of Fortress Investment Group LLC, for which Nationstar receives a monthly net servicing fee equal to 0.50% per annum on the unpaid principal balance of the portfolios, which was $0.8 billion and $0.9 billion, as of September 30, 2014 and 2013, respectively. For the three months ended September 30, 2014 and 2013, Nationstar received servicing fees and other performance incentive fees of $1.0 million and $1.1 million, respectively. For the nine months ended September 30, 2014 and 2013, Nationstar received servicing fees and other performance incentive fees of $3.1 million and $3.5 million, respectively. | |
Additionally, Nationstar has entered into several agreements with certain entities formed by New Residential, in which New Residential and/or certain funds managed by Fortress own an interest (each a "New Residential Entity"), where Nationstar sold to the related New Residential Entity the right to receive a portion of the excess cash flow generated from certain acquired MSRs after receipt of a fixed basic servicing fee per loan. Nationstar retains all ancillary income associated with servicing such MSRs and the remaining portion of the excess cash flow after receipt of the fixed basic servicing fee. Nationstar is the servicer of the loans and provides all servicing and advancing functions for the portfolio. The related New Residential Entity does not have prior or ongoing obligations associated with these MSR portfolios. Furthermore, should Nationstar refinance any loan in such portfolios, subject to certain limitations, Nationstar will be required to transfer the new loan or a replacement loan of similar economic characteristics into the portfolios. The new or replacement loan will be governed by the same terms set forth in the agreements described above. | |
In addition, Nationstar has paid $20.2 million to New Residential for delinquent service fees in advance of the contractual due date. This amount will be ultimately netted against future remittances. This amount is recorded as an offset to outstanding excess spread financing in our consolidated financial statements. | |
The fair value of the outstanding liability related to these agreements was $1,062.5 million and $986.4 million at September 30, 2014 and December 31, 2013, respectively. | |
In February 2013, Nationstar acquired certain fixed and adjustable rate reverse mortgage loans with an unpaid principal balance totaling $83.1 million for a purchase price of $50.2 million. In conjunction with this acquisition, Nationstar entered into an agreement with NIC Reverse Loan LLC, a subsidiary of Newcastle, to sell a participating interest amounting to 70% of the acquired reverse mortgage loans. Both Nationstar and NIC Reverse Loan LLC are entitled to the related percentage interest of all amounts received with respect to the reverse mortgage loans, net of payments of servicing fees and the reimbursement to Nationstar of servicing advances. Nationstar receives a fixed payment per loan for servicing these reverse mortgage loans. Nationstar records these reverse mortgage loans as reverse mortgage interests on the Company's consolidated balance sheet. | |
In December 2013, Nationstar launched a new servicing acquisition structure. Under this structure, Nationstar agreed to sell to a joint venture entity capitalized by New Residential and other investors (collectively, the Purchaser), approximately $2.7 billion of servicer advances currently outstanding on three pools of residential, non-agency mortgage loans, with the potential for up to $6.3 billion. Nationstar also agreed to the sale of the basic fee component of related mortgage servicing rights of approximately $44.3 billion of UPB with potential for up to $130.1 billion of UPB. Nationstar will continue to act as named servicer under each servicing agreement until servicing is transferred to the Purchaser. After the transfer of servicing under any servicing agreement to the Purchaser, Nationstar will subservice the applicable residential mortgage loans. | |
While the transfer of the mortgage servicing rights to New Residential is intended to achieve the economic result of a sale of | |
mortgage servicing rights, Nationstar will account for the transactions as financings until the required third party consents are obtained and ownership, for accounting purposes, of the MSRs transfer to New Residential. | |
Special purpose subsidiaries of Nationstar previously issued approximately $2.1 billion of nonrecourse variable funding notes | |
(the Notes) to finance the advances funded or acquired by Nationstar. The Notes were issued through two wholly-owned special purpose entities (the Issuers) pursuant to two servicer advance facilities. Pursuant to the Sale Agreement, New Residential purchased the outstanding equity of the wholly-owned special purpose entities of Nationstar that own the Issuers (the Depositors). On the sale date, New Residential and Nationstar amended and restated the transaction documents for each facility. Under these amended and restated transaction documents for each facility, Nationstar will continue to sell future service advances to New Residential, and New Residential will sell the new servicer advances to the Depositors. | |
Nationstar received approximately $307.3 million in cash proceeds from the Sale Agreement. The fair value of the outstanding | |
liability related to the Sale Agreement was $44.4 million at September 30, 2014. | |
In January 2014, Nationstar entered into one Sale Supplements (together with the Master Servicing Rights Purchase Agreement, collectively the “January Sale Agreement”) with the Purchaser. Under the January Sale Agreement, Nationstar sold to the Purchaser the right to repayment on approximately $253.5 million of servicer advances related to non-agency mortgage loans. In addition, Nationstar also sold the right to receive the basic fee component of the related mortgage servicing rights of approximately $8.3 billion of UPB, in exchange for the Purchaser remitting a portion of the basic fee to Nationstar continuing to service the mortgage loans. Nationstar received approximately $253.5 million in cash proceeds from the January Sale Agreement. | |
In February 2014, Nationstar entered into a Sale Supplement (together with the Master Servicing Rights Purchase Agreement, collectively the February Sale Agreement) with the Purchaser. Under the February Sale Agreement, Nationstar sold to the Purchaser the right to repayment on approximately $756.2 million of servicer advances related to non-agency mortgage loans. In addition, Nationstar also sold the right to receive the basic fee component of the related mortgage servicing rights of approximately $9.4 billion of UPB, in exchange for the Purchaser remitting a portion of the basic fee to Nationstar continuing to service the mortgage loans. Nationstar received approximately $91.4 million in cash proceeds from the February Sale Agreement. | |
In March 2014, Nationstar entered into a Sale Supplement (together with the Master Servicing Rights Purchase Agreement, collectively the March Sale Agreement) with the Purchaser. Under the March Sale Agreement, Nationstar sold to the Purchaser the right to repayment on approximately $299.1 million of servicer advances related to non-agency mortgage loans. In addition, Nationstar also sold the right to receive the basic fee component of the related mortgage servicing rights of approximately $10.5 billion of UPB, in exchange for the Purchaser remitting a portion of the basic fee to Nationstar continuing to service the mortgage loans. Nationstar received approximately $41.4 million in cash proceeds from the March Sale Agreement. | |
In May 2014, Nationstar entered into Sale Supplements (together with the Master Servicing Rights Purchase Agreement, collectively the May Sale Agreement) with the Purchaser. Under the May Sale Agreement, Nationstar sold to the Purchaser the right to repayment on approximately $617.5 million of servicer advances related to non-agency mortgage loans. In addition, Nationstar also sold the right to receive the basic fee component of the related mortgage servicing rights of approximately $12.0 billion of UPB, in exchange for the Purchaser remitting a portion of the basic fee to Nationstar for continuing to service the mortgage loans. Nationstar received approximately $75.2 million in cash proceeds from the May Sale Agreement. | |
In June 2014, Nationstar entered into Sale Supplements (together with the Master Servicing Rights Purchase Agreement, collectively the June Sale Agreement) with the Purchaser. Under the June Sale Agreement, Nationstar sold to the Purchaser the right to repayment on approximately $303.8 million of servicer advances related to non-agency mortgage loans. In addition, Nationstar also sold the right to receive the basic fee component of the related mortgage servicing rights of approximately $14.0 billion of UPB, in exchange for the Purchaser remitting a portion of the basic fee to Nationstar for continuing to service the mortgage loans. Nationstar received approximately $51.0 million in cash proceeds from the June Sale Agreement. | |
In May 2014, Nationstar entered into a servicing arrangement with New Residential whereby Nationstar will service residential mortgage loans that New Residential and/or its various affiliates and trust entities acquire. The terms and fees of this servicing arrangement generally conform with industry standards for stand-alone residential mortgage loan servicing. For the three and nine months ended September 30, 2014, Nationstar recognized revenue of $1.6 million related to these servicing arrangements. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
. Subsequent Events | |
In October 2014, Nationstar amended its $1.1 billion outstanding agency advance financing facility with a financial institution. Under the terms of the amended agreement, the maturity dates related to the outstanding variable funding notes was extended to October 2015. | |
In October 2014, Nationstar amended its $200 million outstanding master repurchase agreement with a financial institution. Under the terms of the amended agreement, the maturity date related to this facility was extended to October 2015. |
Nature_of_Business_and_Basis_o1
Nature of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Consolidation, Policy | ' |
The consolidated financial statements include the accounts of Nationstar, its wholly-owned subsidiaries, and other entities in which the Company has a controlling financial interest, and those variable interest entities (VIEs) where Nationstar's wholly-owned subsidiaries are the primary beneficiaries. Intercompany balances and transactions have been eliminated. Results of operations, assets and liabilities of VIEs are included from the date that Nationstar became the primary beneficiary through the date Nationstar ceases to be the primary beneficiary. | |
Basis of Accounting, Policy | ' |
The interim consolidated financial statements are unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results of the interim periods have been included. The consolidated interim financial statements of Nationstar have been prepared in accordance with generally accepted accounting principles for interim information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (SEC). Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States (GAAP) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Nationstar's Annual Report on Form 10-K filed on February 27, 2014. |
Variable_Interest_Entities_and1
Variable Interest Entities and Securitizations (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Variable Interest Entities and Securitizations [Abstract] | ' | |||||||||||||||
Schedule of Assets and Liabilities of VIEs Included in Financial Statements | ' | |||||||||||||||
A summary of the assets and liabilities of Nationstar’s transactions with VIEs included in the Company’s consolidated financial statements as of September 30, 2014 and December 31, 2013 is presented in the following tables: | ||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
Transfer Included in the Consolidated Financial Statements | Reverse Secured Borrowings | Transfer Included in the Consolidated Financial Statements | Reverse Secured Borrowings | |||||||||||||
ASSETS | ||||||||||||||||
Restricted cash | $ | 98,115 | $ | — | $ | 272,188 | $ | — | ||||||||
Reverse mortgage interests | — | 1,296,420 | — | 1,039,645 | ||||||||||||
Accounts receivable | 1,170,414 | — | 4,031,444 | — | ||||||||||||
Mortgage loans held for investment, net | 193,429 | — | 208,263 | — | ||||||||||||
Derivative financial instruments | 1,349 | — | 3,691 | — | ||||||||||||
Other assets | 1,550 | — | 2,375 | — | ||||||||||||
Total Assets | $ | 1,464,857 | $ | 1,296,420 | $ | 4,517,961 | $ | 1,039,645 | ||||||||
LIABILITIES | ||||||||||||||||
Notes payable | $ | 1,003,200 | $ | — | $ | 3,672,726 | $ | — | ||||||||
Payables and accrued liabilities | 1,357 | — | 4,242 | — | ||||||||||||
Nonrecourse debt–Legacy Assets | 78,481 | — | 89,107 | — | ||||||||||||
Participating interest financing | — | 1,367,382 | — | 1,080,718 | ||||||||||||
Total Liabilities | $ | 1,083,038 | $ | 1,367,382 | $ | 3,766,075 | $ | 1,080,718 | ||||||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule of Accounts Receivable | ' | |||||||
Accounts receivable consist of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Servicer advances, net of purchase discount $8,875 and $62,217, respectively | $ | 2,594,106 | $ | 5,099,670 | ||||
Reverse mortgage servicer advances | 201,541 | 93,494 | ||||||
Accrued revenues | 158,861 | 134,440 | ||||||
Receivables from trusts and agencies | 84,171 | 105,917 | ||||||
Accrued interest | 2,805 | 6,970 | ||||||
Other | 18,898 | 195,991 | ||||||
Total accounts receivable | $ | 3,060,382 | $ | 5,636,482 | ||||
Mortgage_Loans_Held_for_Sale_a1
Mortgage Loans Held for Sale and Investment (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Mortgage Loans Held for Sale and Investment [Abstract] | ' | ||||||||
Schedule of Mortgage Loans Held-for-Sale | ' | ||||||||
Mortgage loans held for sale consist of the following: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Mortgage loans held for sale – unpaid principal balance | $ | 1,629,030 | $ | 2,532,881 | |||||
Mark-to-market adjustment, included in Gain on Mortgage Loans Held for Sale | 68,011 | 70,499 | |||||||
Total mortgage loans held for sale | $ | 1,697,041 | $ | 2,603,380 | |||||
Reconciliation of Mortgage Loans Held-for-Sale to Cash Flow | ' | ||||||||
A reconciliation of the changes in mortgage loans held for sale for the dates indicated is presented in the following table: | |||||||||
For the nine months ended | |||||||||
September 30, 2014 | September 30, 2013 | ||||||||
Mortgage loans held for sale – beginning balance | $ | 2,603,380 | $ | 1,480,537 | |||||
Mortgage loans originated and purchased, net of fees | 16,548,058 | 17,166,460 | |||||||
Proceeds on sale of and payments of mortgage loans held for sale | (17,449,261 | ) | (14,780,987 | ) | |||||
Transfer of mortgage loans held for sale to held for investment or other assets | (5,136 | ) | 2,450 | ||||||
Mortgage loans held for sale – ending balance | $ | 1,697,041 | $ | 3,868,460 | |||||
Schedule of Loans Held for Investment | ' | ||||||||
Mortgage loans held for investment, net as of the dates indicated include: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
Mortgage loans held for investment, net – unpaid principal balance | $ | 283,115 | $ | 305,085 | |||||
Transfer discount: | |||||||||
Accretable | (16,025 | ) | (17,362 | ) | |||||
Non-accretable | (68,109 | ) | (74,529 | ) | |||||
Allowance for loan losses | (3,549 | ) | (2,144 | ) | |||||
Total mortgage loans held for investment, net | $ | 195,432 | $ | 211,050 | |||||
Changes in Accretable Yield on Mortgage Loans Held for Investment | ' | ||||||||
The changes in accretable yield on loans transferred to mortgage loans held for investment, net were as follows: | |||||||||
For the nine months ended September 30, 2014 | Year ended December 31, 2013 | ||||||||
Accretable Yield | |||||||||
Balance at the beginning of the period | $ | 17,362 | $ | 19,749 | |||||
Accretion | (2,258 | ) | (3,235 | ) | |||||
Reclassifications from (to) nonaccretable discount | 921 | 848 | |||||||
Balance at the end of the period | $ | 16,025 | $ | 17,362 | |||||
Allowance for Loan Losses | ' | ||||||||
Mortgage Loans by Credit Quality Indicator | ' |
Mortgage_Servicing_Rights_Tabl
Mortgage Servicing Rights (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Transfers and Servicing [Abstract] | ' | ||||||||||||||||||||
Schedule of Assumptions for Fair Value of Mortgage Service Rights | ' | ||||||||||||||||||||
Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated: | |||||||||||||||||||||
Credit Sensitive MSRs | September 30, 2014 | December 31, 2013 | |||||||||||||||||||
Discount rate | 12.15 | % | 14.17 | % | |||||||||||||||||
Total prepayment speeds | 17.24 | % | 20.34 | % | |||||||||||||||||
Expected weighted-average life | 5.59 years | 4.63 years | |||||||||||||||||||
Credit losses | 7.35 | % | 22.87 | % | |||||||||||||||||
Interest Rate Sensitive MSRs | September 30, 2014 | December 31, 2013 | |||||||||||||||||||
Discount rate | 9.6 | % | 10.5 | % | |||||||||||||||||
Total prepayment speeds | 9.77 | % | 8.97 | % | |||||||||||||||||
Expected weighted-average life | 7.01 years | 7.88 years | |||||||||||||||||||
Credit losses | 2.22 | % | 9.12 | % | |||||||||||||||||
Schedule of Servicing Assets at Fair Value | ' | ||||||||||||||||||||
The activity of MSRs carried at fair value is as follows for the dates indicated: | |||||||||||||||||||||
For the nine months ended | For the year ended | ||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||
Fair value at the beginning of the period | $ | 2,488,283 | $ | 635,860 | |||||||||||||||||
Additions: | |||||||||||||||||||||
Servicing resulting from transfers of financial assets | 185,822 | 248,381 | |||||||||||||||||||
Purchases of servicing assets | 353,450 | 1,545,584 | |||||||||||||||||||
Changes in fair value: | |||||||||||||||||||||
Due to changes in valuation inputs or assumptions used in the valuation model | 49,779 | 355,586 | |||||||||||||||||||
Other changes in fair value | (179,125 | ) | (297,128 | ) | |||||||||||||||||
Fair value at the end of the period | $ | 2,898,209 | $ | 2,488,283 | |||||||||||||||||
UPB of forward loans serviced for others | |||||||||||||||||||||
Credit sensitive loans | $ | 242,991,593 | $ | 266,757,777 | |||||||||||||||||
Interest sensitive loans | 75,980,389 | 56,056,362 | |||||||||||||||||||
Total owned loans | $ | 318,971,982 | $ | 322,814,139 | |||||||||||||||||
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block] | ' | ||||||||||||||||||||
The following table shows the hypothetical effect on the fair value of the MSRs using various unfavorable variations of the expected levels of certain key assumptions used in valuing these assets at September 30, 2014 and December 31, 2013: | |||||||||||||||||||||
Discount Rate | Total Prepayment | Credit Losses | |||||||||||||||||||
Speeds | |||||||||||||||||||||
100 bps | 200 bps | 10% | 20% | 10% | 20% | ||||||||||||||||
Adverse | Adverse | Adverse | Adverse | Adverse | Adverse | ||||||||||||||||
Change | Change | Change | Change | Change | Change | ||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Mortgage servicing rights | $ | (109,213 | ) | $ | (205,224 | ) | $ | (107,917 | ) | $ | (206,835 | ) | $ | (37,922 | ) | $ | (75,760 | ) | |||
31-Dec-13 | |||||||||||||||||||||
Mortgage servicing rights | $ | (74,681 | ) | $ | (151,899 | ) | $ | (101,590 | ) | $ | (195,445 | ) | $ | (89,958 | ) | $ | (178,669 | ) | |||
Activity of MSRs at Amortized Cost | ' | ||||||||||||||||||||
The activity of MSRs carried at amortized cost is as follows for the dates indicated: | |||||||||||||||||||||
For the nine months ended | For the year ended | ||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||
Activity of MSRs at amortized cost | |||||||||||||||||||||
Balance at the beginning of the period | $ | 14,879 | $ | 82,521 | $ | 10,973 | $ | 83,238 | |||||||||||||
Additions: | |||||||||||||||||||||
Purchase /Assumptions of servicing rights/obligations | — | — | 3,980 | — | |||||||||||||||||
Deductions: | |||||||||||||||||||||
Amortization/Accretion | (2,448 | ) | (3,567 | ) | (74 | ) | (717 | ) | |||||||||||||
Balance at end of the period | $ | 12,431 | $ | 78,954 | $ | 14,879 | $ | 82,521 | |||||||||||||
Fair value at end of period | $ | 35,475 | $ | 61,853 | $ | 29,192 | $ | 63,996 | |||||||||||||
Other_Assets_Tables
Other Assets (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Schedule of Other Assets | ' | |||||||
Other assets consisted of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Loans subject to repurchase right from Ginnie Mae | $ | 83,547 | $ | 120,736 | ||||
Goodwill | 54,701 | 38,820 | ||||||
Real estate owned (REO), net | 53,264 | 45,632 | ||||||
Deferred financing costs | 48,949 | 73,030 | ||||||
Intangible assets | 20,187 | 21,737 | ||||||
Prepaid expenses | 9,942 | 21,993 | ||||||
Collateral deposits on derivative instruments | 5,487 | 25,932 | ||||||
Receivables from affiliates | 5,479 | 8,861 | ||||||
Other | 1,294 | 3,656 | ||||||
Total other assets | $ | 282,850 | $ | 360,397 | ||||
Accounts_Payable_Tables
Accounts Payable (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of Payables and Accrued Liabilities | ' | |||||||
Payables and accrued liabilities consist of the following: | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Payables to servicing and subservicing investors(1) | $ | 314,864 | $ | 359,214 | ||||
Payables to insurance carriers and insurance cancellation reserves | 159,351 | 164,244 | ||||||
Taxes | 100,190 | 35,961 | ||||||
Loans subject to repurchase from Ginnie Mae | 83,547 | 120,736 | ||||||
MSR purchases payable including advances | 65,374 | 135,759 | ||||||
Accrued interest | 64,559 | 76,303 | ||||||
Accrued bonus and payroll | 62,023 | 66,755 | ||||||
Repurchase reserves | 48,252 | 40,695 | ||||||
Other(2) | 446,735 | 308,783 | ||||||
Total payables and accrued liabilities | $ | 1,344,895 | $ | 1,308,450 | ||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||
Schedule of Derivative Instruments | ' | |||||||||||||
The following tables provide the outstanding notional balances and fair values of outstanding positions for the dates indicated, and recorded gains/(losses) during the periods indicated: | ||||||||||||||
Expiration | Outstanding | Fair | Recorded | |||||||||||
Dates | Notional | Value | Gains / | |||||||||||
(Losses) | ||||||||||||||
For the nine months ended September 30, 2014 | ||||||||||||||
ASSETS | ||||||||||||||
MORTGAGE LOANS HELD FOR SALE | ||||||||||||||
Loan sale commitments | 2014 | $ | 13,933 | $ | 609 | $ | 602 | |||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||
IRLCs | 2014 | 2,388,232 | 83,446 | (3,682 | ) | |||||||||
Forward MBS trades | 2014 | 1,101,888 | 1,488 | (30,778 | ) | |||||||||
LPCs | 2014 | 274,716 | 2,050 | 1,257 | ||||||||||
Interest rate swaps and caps | 2018 | 147,600 | 1,349 | 2,157 | ||||||||||
LIABILITIES | ||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||
IRLCs | 2014 | 867 | 3 | 2,695 | ||||||||||
Interest rate swaps on ABS debt | 2014 - 2017 | 249,704 | 183 | 651 | ||||||||||
Forward MBS trades | 2014 | 2,424,775 | 8,415 | (5,110 | ) | |||||||||
LPCs | 2014 | 76,385 | 1,020 | 669 | ||||||||||
For the year ended December 31, 2013 | ||||||||||||||
ASSETS | ||||||||||||||
MORTGAGE LOANS HELD FOR SALE | ||||||||||||||
Loan sale commitments | 2014 | $ | 57,965 | $ | 7 | $ | (14 | ) | ||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||
IRLCs | 2014 | 3,083,131 | 87,128 | (69,856 | ) | |||||||||
Forward MBS trades | 2014 | 5,425,663 | 32,266 | 19,084 | ||||||||||
LPCs | 2014 | 197,475 | 793 | (460 | ) | |||||||||
Interest rate swaps and caps | 2018 | 167,000 | 3,691 | 544 | ||||||||||
LIABILITIES | ||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||
IRLCs | 2014 | 260,407 | 2,698 | (1,613 | ) | |||||||||
Interest rate swaps and caps (1) | — | — | 1,576 | |||||||||||
Interest rate swaps on ABS debt | 2014-2017 | 424,269 | 834 | 1,012 | ||||||||||
Forward MBS trades | 2014 | 1,351,870 | 3,305 | 8,713 | ||||||||||
LPCs | 2014 | 204,486 | 1,689 | (1,603 | ) | |||||||||
-1 | In January and June 2013, Nationstar terminated these interest rate swaps. |
Indebtedness_Tables
Indebtedness (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Schedule of Unsecured Senior Notes [Table Text Block] | ' | |||||||||||||||||||||||||
A summary of the balances of unsecured senior notes is presented below: | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
$285 million face value, 10.875% interest rate payable semi-annually, due April 2015(1) | $ | — | $ | 283,153 | ||||||||||||||||||||||
$475 million face value, 6.500% interest rate payable semi-annually, due August 2018 | 475,000 | 475,000 | ||||||||||||||||||||||||
$375 million face value, 9.625% interest rate payable semi-annually, due May 2019 | 378,756 | 379,360 | ||||||||||||||||||||||||
$400 million face value, 7.875% interest rate payable semi-annually, due October 2020 | 400,565 | 400,634 | ||||||||||||||||||||||||
$600 million face value, 6.500% interest rate payable semi-annually, due July 2021 | 605,330 | 605,915 | ||||||||||||||||||||||||
$300 million face value, 6.500% interest rate payable semi-annually, due June 2022 | 300,000 | 300,000 | ||||||||||||||||||||||||
Total | $ | 2,159,651 | $ | 2,444,062 | ||||||||||||||||||||||
Schedule of Notes Payable | ' | |||||||||||||||||||||||||
A summary of the balances of notes payable for the dates indicated is presented below. | ||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral Pledged | Outstanding | Collateral pledged | |||||||||||||||||||
Servicing Segment Notes Payable | ||||||||||||||||||||||||||
MBS advance financing facility | LIBOR+2.50% to 4.00% | Mar-15 | Servicing advance receivables | $ | 775,000 | $ | 455,629 | $ | 514,841 | $ | 560,814 | $ | 651,953 | |||||||||||||
Securities repurchase facility (2011) | LIBOR +3.50% | 90 day revolving | Nonrecourse debt - Legacy Assets | — | 34,613 | 55,603 | 35,546 | 55,603 | ||||||||||||||||||
Nationstar agency advance financing facility (1) | LIBOR+1.20% to 3.75% | Oct-15 | Servicing advance receivables | 1,100,000 | 603,354 | 718,970 | 851,957 | 918,574 | ||||||||||||||||||
Reverse participations financing facility | LIBOR+4.00% | June 2014(7) | Reverse mortgage loans (2) | 150,000 | — | — | 102,031 | 124,536 | ||||||||||||||||||
MBS advance financing facility (2012) | LIBOR+5.00% | Apr-15 | Servicing advance receivables | 50,000 | 39,654 | 47,467 | 179,306 | 220,833 | ||||||||||||||||||
Nationstar Mortgage Advance Receivable | LIBOR+1.15% to 5.30% | June 2014 (4) June 2016 (6) June 2018 | Servicing advance receivables | 475,000 | 399,846 | 450,345 | 1,240,940 | 1,347,410 | ||||||||||||||||||
Trust (3) | ||||||||||||||||||||||||||
MBS servicer advance facility (2014) | LIBOR + 3.50% | Jul-15 | Servicing advance receivables | 80,000 | 68,123 | 92,165 | — | — | ||||||||||||||||||
Nationstar Servicer Advance Receivables Trust 2013 - BA (5) | LIBOR+2.50% | Jun-14 | Servicing advance receivables | 1,000,000 | — | — | 1,579,830 | 1,764,296 | ||||||||||||||||||
1,601,219 | 1,879,391 | 4,550,424 | 5,083,205 | |||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral Pledged | Outstanding | Collateral pledged | |||||||||||||||||||
Originations Segment Notes Payable | ||||||||||||||||||||||||||
$1.5 billion warehouse facility | LIBOR+2.00% to 2.875% | Oct-15 | Mortgage loans or MBS | $ | 1,500,000 | $ | 698,300 | $ | 793,342 | $ | 797,281 | $ | 891,648 | |||||||||||||
$750 million warehouse facility | LIBOR+1.75% to 2.50% | Apr-15 | Mortgage loans or MBS | 750,000 | 428,970 | 447,121 | 639,378 | 673,599 | ||||||||||||||||||
$500 million warehouse facility | LIBOR+1.75% to 2.75% | Sep-15 | Mortgage loans or MBS | 500,000 | 253,713 | 260,443 | 111,980 | 115,629 | ||||||||||||||||||
$500 million warehouse facility | LIBOR+0.75% to 3.50% | Jun-15 | Mortgage loans or MBS | 500,000 | 197,067 | 209,060 | 214,570 | 224,162 | ||||||||||||||||||
$500 million warehouse facility | LIBOR+ 1.50% to 2.25% | Jun-15 | Mortgage loans or MBS | 500,000 | 226,249 | 231,696 | 447,926 | 477,980 | ||||||||||||||||||
$300 million warehouse facility | LIBOR +2.50% | September 2014(8) | Mortgage loans or MBS | 300,000 | — | — | 159,435 | 166,482 | ||||||||||||||||||
$200 million warehouse facility | LIBOR+2.75% | Feb-15 | Mortgage loans or MBS | 200,000 | 87,145 | 103,804 | 63,357 | 93,098 | ||||||||||||||||||
$75 million warehouse facility (HCM) (9) | LIBOR+ 2.25% to 2.875% | Oct-15 | Mortgage loans or MBS | 75,000 | 40,080 | 41,786 | — | — | ||||||||||||||||||
ASAP+ facility | LIBOR+1.50% | Up to 45 days | GSE mortgage loans or GSE MBS | — | — | — | — | — | ||||||||||||||||||
1,931,524 | 2,087,252 | 2,433,927 | 2,642,598 | |||||||||||||||||||||||
$ | 3,532,743 | $ | 3,966,643 | $ | 6,984,351 | $ | 7,725,803 | |||||||||||||||||||
Schedule of Maturities of Long-term Debt | ' | |||||||||||||||||||||||||
expected maturities of Nationstar's unsecured senior notes based on contractual maturities are as follows: | ||||||||||||||||||||||||||
Year | Amount | |||||||||||||||||||||||||
2014 | $ | — | ||||||||||||||||||||||||
2015 | — | |||||||||||||||||||||||||
2016 | — | |||||||||||||||||||||||||
2017 | — | |||||||||||||||||||||||||
2018 | 475,000 | |||||||||||||||||||||||||
Thereafter | 1,675,000 | |||||||||||||||||||||||||
Total | $ | 2,150,000 | ||||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||||
The estimated carrying amount and fair value of Nationstar’s financial instruments and other assets and liabilities measured at fair value on a recurring basis is as follows for the dates indicated: | ||||||||||||||||
September 30, 2014 | ||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
ASSETS | ||||||||||||||||
Mortgage loans held for sale(1) | $ | 1,695,502 | $ | — | $ | 1,695,502 | $ | — | ||||||||
Mortgage servicing rights | 2,898,209 | — | — | 2,898,209 | ||||||||||||
Other assets: | ||||||||||||||||
IRLCs | 83,446 | — | 83,446 | — | ||||||||||||
Forward MBS trades | 1,488 | — | 1,488 | — | ||||||||||||
LPCs | 2,050 | — | 2,050 | — | ||||||||||||
Interest rate swaps and caps | 1,349 | — | 1,349 | — | ||||||||||||
Total assets | $ | 4,682,044 | $ | — | $ | 1,783,835 | $ | 2,898,209 | ||||||||
LIABILITIES | ||||||||||||||||
Derivative financial instruments | ||||||||||||||||
IRLCs | $ | 3 | $ | — | $ | 3 | $ | — | ||||||||
Interest rate swaps on ABS debt | 183 | — | 183 | — | ||||||||||||
Forward MBS trades | 8,415 | — | 8,415 | — | ||||||||||||
LPCs | 1,020 | — | 1,020 | — | ||||||||||||
Mortgage servicing rights financing | 44,449 | — | — | 44,449 | ||||||||||||
Excess spread financing (at fair value) | 1,062,544 | — | — | 1,062,544 | ||||||||||||
Total liabilities | $ | 1,116,614 | $ | — | $ | 9,621 | $ | 1,106,993 | ||||||||
December 31, 2013 | ||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
ASSETS | ||||||||||||||||
Mortgage loans held for sale(1) | $ | 2,585,340 | $ | — | $ | 2,585,340 | $ | — | ||||||||
Mortgage servicing rights | 2,488,283 | — | — | 2,488,283 | ||||||||||||
Derivative financial instruments: | ||||||||||||||||
IRLCs | 87,128 | — | 87,128 | — | ||||||||||||
Forward MBS trades | 32,266 | — | 32,266 | — | ||||||||||||
LPCs | 793 | — | 793 | — | ||||||||||||
Interest rate swaps and caps | 3,691 | — | 3,691 | — | ||||||||||||
Total assets | $ | 5,197,501 | $ | — | $ | 2,709,218 | $ | 2,488,283 | ||||||||
LIABILITIES | ||||||||||||||||
Derivative financial instruments | ||||||||||||||||
IRLCs | $ | 2,698 | $ | — | $ | 2,698 | $ | — | ||||||||
Interest rate swaps on ABS debt | 834 | — | 834 | — | ||||||||||||
Forward MBS trades | 3,305 | — | 3,305 | — | ||||||||||||
LPCs | 1,689 | — | 1,689 | — | ||||||||||||
Mortgage servicing rights financing | 29,874 | — | — | 29,874 | ||||||||||||
Excess spread financing (at fair value) | 986,410 | — | — | 986,410 | ||||||||||||
Total liabilities | $ | 1,024,810 | $ | — | $ | 8,526 | $ | 1,016,284 | ||||||||
(1) | Based on the nature and risks of these assets, the Company has determined that presenting them as a single class is appropriate. | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | |||||||||||||||
The table below presents a reconciliation for all of Nationstar’s Level 3 assets and liabilities measured at fair value on a recurring basis for the dates indicated: | ||||||||||||||||
ASSETS | LIABILITIES | |||||||||||||||
For the three months ended September 30, 2014 | Mortgage | Excess spread | Mortgage Servicing Rights Financing | |||||||||||||
servicing rights | financing | |||||||||||||||
Beginning balance | $ | 2,678,134 | $ | 1,036,038 | $ | 33,452 | ||||||||||
Transfers into Level 3 | — | — | — | |||||||||||||
Transfers out of Level 3 | — | — | — | |||||||||||||
Total gains or losses | ||||||||||||||||
Included in earnings | (5,308 | ) | 37,313 | 10,997 | ||||||||||||
Included in other comprehensive income | — | — | — | |||||||||||||
Purchases, issuances, sales and settlements | ||||||||||||||||
Purchases | 159,773 | — | — | |||||||||||||
Issuances | 65,610 | 39,833 | — | |||||||||||||
Sales | — | — | — | |||||||||||||
Settlements | — | (50,640 | ) | — | ||||||||||||
Ending balance | $ | 2,898,209 | $ | 1,062,544 | $ | 44,449 | ||||||||||
ASSETS | LIABILITIES | |||||||||||||||
For the nine months ended September 30, 2014 | Mortgage | Excess spread | Mortgage Servicing Rights Financing | |||||||||||||
servicing rights | financing | |||||||||||||||
Beginning balance | $ | 2,488,283 | $ | 986,410 | $ | 29,874 | ||||||||||
Transfers into Level 3 | — | — | — | |||||||||||||
Transfers out of Level 3 | — | — | — | |||||||||||||
Total gains or losses | ||||||||||||||||
Included in earnings | (129,346 | ) | 61,080 | (38,260 | ) | |||||||||||
Included in other comprehensive income | — | — | — | |||||||||||||
Purchases, issuances, sales and settlements | ||||||||||||||||
Purchases | 353,450 | — | — | |||||||||||||
Issuances | 185,822 | 150,951 | 52,835 | |||||||||||||
Sales | — | — | — | |||||||||||||
Settlements | — | (135,897 | ) | — | ||||||||||||
Ending balance | $ | 2,898,209 | $ | 1,062,544 | $ | 44,449 | ||||||||||
ASSETS | LIABILITIES | |||||||||||||||
For the year ended December 31, 2013 | Mortgage | Excess spread | Mortgage Servicing Rights Financing | |||||||||||||
servicing rights | financing | |||||||||||||||
Beginning balance | $ | 635,860 | $ | 288,089 | $ | — | ||||||||||
Transfers into Level 3 | — | — | — | |||||||||||||
Transfers out of Level 3 | — | — | — | |||||||||||||
Total gains or losses | ||||||||||||||||
Included in earnings | 58,458 | 73,333 | — | |||||||||||||
Included in other comprehensive income | — | — | — | |||||||||||||
Purchases, issuances, sales and settlements | ||||||||||||||||
Purchases | 1,545,584 | — | — | |||||||||||||
Issuances | 248,381 | 755,344 | 29,874 | |||||||||||||
Sales | — | — | — | |||||||||||||
Settlements | — | (130,356 | ) | — | ||||||||||||
Ending balance | $ | 2,488,283 | $ | 986,410 | $ | 29,874 | ||||||||||
Fair Value, by Balance Sheet Grouping | ' | |||||||||||||||
The table below presents a summary of the estimated carrying amount and fair value of Nationstar’s financial instruments. | ||||||||||||||||
September 30, 2014 | ||||||||||||||||
Carrying | Fair Value | |||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 269,735 | $ | 269,735 | $ | — | $ | — | ||||||||
Restricted cash | 294,044 | 294,044 | — | — | ||||||||||||
Mortgage loans held for sale | 1,697,041 | — | 1,696,657 | — | ||||||||||||
Mortgage loans held for investment, net | 195,432 | — | — | 168,959 | ||||||||||||
Reverse mortgage interests | 1,956,952 | — | — | 1,937,199 | ||||||||||||
Derivative financial instruments | 88,333 | — | 88,333 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Notes payable | 3,532,743 | — | — | 3,532,743 | ||||||||||||
Unsecured senior notes | 2,159,651 | 2,150,702 | — | — | ||||||||||||
Derivative financial instruments | 9,621 | — | 9,621 | — | ||||||||||||
Nonrecourse debt - Legacy assets | 78,481 | — | — | 89,018 | ||||||||||||
Excess spread financing | 1,062,544 | — | — | 1,062,544 | ||||||||||||
Participating interest financing | 1,367,382 | — | 1,336,722 | — | ||||||||||||
Mortgage servicing rights financing liability | 44,449 | — | — | 44,449 | ||||||||||||
December 31, 2013 | ||||||||||||||||
Carrying | Fair Value | |||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 441,902 | $ | 441,902 | $ | — | $ | — | ||||||||
Restricted cash | 592,747 | 592,747 | — | — | ||||||||||||
Mortgage loans held for sale | 2,603,380 | — | 2,601,520 | — | ||||||||||||
Mortgage loans held for investment, net | 211,050 | — | — | 180,435 | ||||||||||||
Reverse mortgage interests | 1,434,506 | — | — | 1,405,197 | ||||||||||||
Derivative financial instruments | 123,878 | — | 123,878 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Notes payable | 6,984,351 | — | — | 6,984,351 | ||||||||||||
Unsecured senior notes | 2,444,062 | 2,489,886 | — | — | ||||||||||||
Derivative financial instruments | 8,526 | — | 8,526 | — | ||||||||||||
Nonrecourse debt - Legacy assets | 89,107 | — | — | 95,345 | ||||||||||||
Excess spread financing | 986,410 | — | — | 986,410 | ||||||||||||
Participating interest financing | 1,103,490 | — | 1,093,747 | — | ||||||||||||
Mortgage servicing rights financing liability | 29,874 | — | — | 29,874 | ||||||||||||
Business_Segment_Reporting_Tab
Business Segment Reporting (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | ' | ||||||||||||||||||||||||||||
The following tables are a presentation of financial information by segment for the periods indicated: | |||||||||||||||||||||||||||||
Three months ended September 30, 2014 | |||||||||||||||||||||||||||||
Servicing | Originations | Solutionstar | Total Operating | Corporate and Other | Eliminations | Consolidated | |||||||||||||||||||||||
Segments | |||||||||||||||||||||||||||||
REVENUES: | |||||||||||||||||||||||||||||
Servicing fee income | $ | 253,434 | $ | 105 | $ | 4 | $ | 253,543 | $ | (1,002 | ) | $ | (17,133 | ) | $ | 235,408 | |||||||||||||
Other fee income | 28,113 | 10,334 | 85,519 | 123,966 | 2,135 | — | 126,101 | ||||||||||||||||||||||
Total fee income | 281,547 | 10,439 | 85,523 | 377,509 | 1,133 | (17,133 | ) | 361,509 | |||||||||||||||||||||
Gain/(loss) on mortgage loans held for sale | (1,147 | ) | 128,355 | — | 127,208 | (1,172 | ) | 16,779 | 142,815 | ||||||||||||||||||||
Total revenues | 280,400 | 138,794 | 85,523 | 504,717 | (39 | ) | (354 | ) | 504,324 | ||||||||||||||||||||
Total expenses and impairments | 160,975 | 89,369 | 50,006 | 300,350 | 26,874 | — | 327,224 | ||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||
Interest income | 18,369 | 18,903 | — | 37,272 | 5,688 | 354 | 43,314 | ||||||||||||||||||||||
Interest expense | (48,651 | ) | (17,085 | ) | (352 | ) | (66,088 | ) | (50,585 | ) | — | (116,673 | ) | ||||||||||||||||
Gain on sale of property | — | — | — | — | 4,898 | — | 4,898 | ||||||||||||||||||||||
Gain (loss) on interest rate swaps and caps | 795 | — | — | 795 | 145 | — | 940 | ||||||||||||||||||||||
Total other income (expense) | (29,487 | ) | 1,818 | (352 | ) | (28,021 | ) | (39,854 | ) | 354 | (67,521 | ) | |||||||||||||||||
Income (loss) before taxes | $ | 89,938 | $ | 51,243 | $ | 35,165 | $ | 176,346 | $ | (66,767 | ) | $ | — | $ | 109,579 | ||||||||||||||
Depreciation and amortization | $ | 2,886 | $ | 1,049 | $ | 922 | $ | 4,857 | $ | 4,705 | $ | — | $ | 9,562 | |||||||||||||||
Total assets | 8,370,695 | 1,929,239 | 319,910 | 10,619,844 | 257,200 | — | 10,877,044 | ||||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||||||||||
Servicing | Originations | Solutionstar | Total Operating | Corporate and Other | Eliminations | Consolidated | |||||||||||||||||||||||
Segments | |||||||||||||||||||||||||||||
REVENUES: | |||||||||||||||||||||||||||||
Servicing fee income | $ | 357,262 | $ | (1 | ) | $ | 13 | $ | 357,274 | $ | 551 | $ | (16,146 | ) | $ | 341,679 | |||||||||||||
Other fee income | 19,782 | 23,117 | 41,254 | 84,153 | 50 | — | 84,203 | ||||||||||||||||||||||
Total fee income | 377,044 | 23,116 | 41,267 | 441,427 | 601 | (16,146 | ) | 425,882 | |||||||||||||||||||||
Gain/(loss) on mortgage loans held for sale | 124 | 190,186 | — | 190,310 | (101 | ) | 15,747 | 205,956 | |||||||||||||||||||||
Total revenues | 377,168 | 213,302 | 41,267 | 631,737 | 500 | (399 | ) | 631,838 | |||||||||||||||||||||
Total expenses and impairments | 158,247 | 176,600 | 31,964 | 366,811 | 29,043 | — | 395,854 | ||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||
Interest income | 31,913 | 28,273 | — | 60,186 | 3,318 | 399 | 63,903 | ||||||||||||||||||||||
Interest expense | (85,653 | ) | (32,879 | ) | (103 | ) | (118,635 | ) | (49,580 | ) | — | (168,215 | ) | ||||||||||||||||
Gain (loss) on interest rate swaps and caps | 94 | — | — | 94 | 306 | — | 400 | ||||||||||||||||||||||
Total other income (expense) | (53,646 | ) | (4,606 | ) | (103 | ) | (58,355 | ) | (45,956 | ) | 399 | (103,912 | ) | ||||||||||||||||
Income (loss) before taxes | $ | 165,275 | $ | 32,096 | $ | 9,200 | $ | 206,571 | $ | (74,499 | ) | $ | — | $ | 132,072 | ||||||||||||||
Depreciation and amortization | $ | 3,659 | $ | 1,914 | $ | 409 | $ | 5,982 | $ | 1,013 | $ | — | $ | 6,995 | |||||||||||||||
Total assets | 10,067,020 | 4,256,216 | 38,977 | 14,362,213 | 2,705,859 | — | 17,068,072 | ||||||||||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||||||||||||||||
Servicing | Originations | Solutionstar | Total Operating | Corporate and Other | Eliminations | Consolidated | |||||||||||||||||||||||
Segments | |||||||||||||||||||||||||||||
REVENUES: | |||||||||||||||||||||||||||||
Servicing fee income | $ | 787,972 | $ | 317 | $ | 17 | $ | 788,306 | $ | (429 | ) | $ | (54,206 | ) | $ | 733,671 | |||||||||||||
Other fee income | 71,722 | 38,071 | 233,869 | 343,662 | 2,704 | — | 346,366 | ||||||||||||||||||||||
Total fee income | 859,694 | 38,388 | 233,886 | 1,131,968 | 2,275 | (54,206 | ) | 1,080,037 | |||||||||||||||||||||
Gain/(loss) on mortgage loans held for sale | (2,972 | ) | 395,756 | — | 392,784 | (2,223 | ) | 53,106 | 443,667 | ||||||||||||||||||||
Total revenues | 856,722 | 434,144 | 233,886 | 1,524,752 | 52 | (1,100 | ) | 1,523,704 | |||||||||||||||||||||
Total expenses and impairments | 511,998 | 291,503 | 134,725 | 938,226 | 56,842 | — | 995,068 | ||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||
Interest income | 59,191 | 57,751 | — | 116,942 | 12,156 | 1,100 | 130,198 | ||||||||||||||||||||||
Interest expense | (199,464 | ) | (56,333 | ) | (496 | ) | (256,293 | ) | (156,402 | ) | — | (412,695 | ) | ||||||||||||||||
Gain on sale of property | — | — | — | — | 4,898 | — | 4,898 | ||||||||||||||||||||||
Gain (loss) on interest rate swaps and caps | 2,156 | — | — | 2,156 | 652 | — | 2,808 | ||||||||||||||||||||||
Total other income (expense) | (138,117 | ) | 1,418 | (496 | ) | (137,195 | ) | (138,696 | ) | 1,100 | (274,791 | ) | |||||||||||||||||
Income (loss) before taxes | $ | 206,607 | $ | 144,059 | $ | 98,665 | $ | 449,331 | $ | (195,486 | ) | $ | — | $ | 253,845 | ||||||||||||||
Depreciation and amortization | $ | 11,453 | $ | 7,754 | $ | 2,764 | $ | 21,971 | $ | 7,992 | $ | — | $ | 29,963 | |||||||||||||||
Total assets | 8,370,695 | 1,929,239 | 319,910 | 10,619,844 | 257,200 | — | 10,877,044 | ||||||||||||||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||||||||||||
Servicing | Originations | Solutionstar | Total Operating | Corporate and Other | Eliminations | Consolidated | |||||||||||||||||||||||
Segments | |||||||||||||||||||||||||||||
REVENUES: | |||||||||||||||||||||||||||||
Servicing fee income | $ | 848,324 | $ | 95 | $ | 41 | $ | 848,460 | $ | 1,322 | $ | (47,198 | ) | $ | 802,584 | ||||||||||||||
Other fee income | 58,795 | 36,479 | 91,694 | 186,968 | (91 | ) | — | 186,877 | |||||||||||||||||||||
Total fee income | 907,119 | 36,574 | 91,735 | 1,035,428 | 1,231 | (47,198 | ) | 989,461 | |||||||||||||||||||||
Gain/(loss) on mortgage loans held for sale | (61 | ) | 631,212 | — | 631,151 | — | 45,953 | 677,104 | |||||||||||||||||||||
Total revenues | 907,058 | 667,786 | 91,735 | 1,666,579 | 1,231 | (1,245 | ) | 1,666,565 | |||||||||||||||||||||
Total expenses and impairments | 432,219 | 424,368 | 75,906 | 932,493 | 71,783 | — | 1,004,276 | ||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||
Interest income | 66,961 | 65,936 | — | 132,897 | 11,806 | 1,245 | 145,948 | ||||||||||||||||||||||
Interest expense | (195,089 | ) | (56,732 | ) | (195 | ) | (252,016 | ) | (126,484 | ) | — | (378,500 | ) | ||||||||||||||||
Gain (loss) on interest rate swaps and caps | 1,466 | — | — | 1,466 | 991 | — | 2,457 | ||||||||||||||||||||||
Total other income (expense) | (126,662 | ) | 9,204 | (195 | ) | (117,653 | ) | (113,687 | ) | 1,245 | (230,095 | ) | |||||||||||||||||
Income (loss) before taxes | $ | 348,177 | $ | 252,622 | $ | 15,634 | $ | 616,433 | $ | (184,239 | ) | $ | — | $ | 432,194 | ||||||||||||||
Depreciation and amortization | $ | 9,315 | $ | 4,149 | 712 | $ | 14,176 | $ | 2,510 | $ | — | $ | 16,686 | ||||||||||||||||
Total assets | 10,067,020 | 4,256,216 | 38,977 | 14,362,213 | 2,705,859 | — | 17,068,072 | ||||||||||||||||||||||
Guarantor_Financial_Statement_1
Guarantor Financial Statement Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Consolidating Balance Sheets | ' | ||||||||||||||||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. | |||||||||||||||||||||||||
CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 422,268 | $ | 3,907 | $ | 15,727 | $ | — | $ | 441,902 | |||||||||||||
Restricted cash | — | 312,120 | 3 | 280,624 | — | 592,747 | |||||||||||||||||||
Accounts receivable | — | 1,569,021 | 2,582 | 4,064,879 | — | 5,636,482 | |||||||||||||||||||
Mortgage loans held for sale | — | 2,603,380 | — | — | — | 2,603,380 | |||||||||||||||||||
Mortgage loans held for investment, net | — | 2,786 | — | 208,264 | — | 211,050 | |||||||||||||||||||
Reverse mortgage interests | — | 1,434,506 | — | — | — | 1,434,506 | |||||||||||||||||||
Mortgage servicing rights | — | 2,503,162 | — | — | — | 2,503,162 | |||||||||||||||||||
Investment in subsidiaries | 968,027 | 181,545 | — | — | (1,149,572 | ) | — | ||||||||||||||||||
Property and equipment, net | — | 115,765 | 855 | 2,565 | — | 119,185 | |||||||||||||||||||
Derivative financial instruments | — | 120,187 | — | 3,691 | — | 123,878 | |||||||||||||||||||
Other assets | 21,872 | 4,683,749 | 323,346 | 3,373,048 | (8,041,618 | ) | 360,397 | ||||||||||||||||||
Total assets | $ | 989,899 | $ | 13,948,489 | $ | 330,693 | $ | 7,948,798 | $ | (9,191,190 | ) | $ | 14,026,689 | ||||||||||||
Liabilities and members’ equity | |||||||||||||||||||||||||
Notes payable | $ | — | $ | 3,311,625 | $ | — | $ | 3,672,726 | $ | — | $ | 6,984,351 | |||||||||||||
Unsecured senior notes | — | 2,444,062 | — | — | — | 2,444,062 | |||||||||||||||||||
Payables and accrued liabilities | — | 1,319,172 | 5,950 | 14,791 | (31,463 | ) | 1,308,450 | ||||||||||||||||||
Payables to affiliates | — | 3,694,782 | 116,349 | 4,199,023 | (8,010,154 | ) | — | ||||||||||||||||||
Derivative financial instruments | — | 8,526 | — | — | — | 8,526 | |||||||||||||||||||
Mortgage servicing liabilities | — | 82,521 | — | — | — | 82,521 | |||||||||||||||||||
Other nonrecourse debt | — | 2,119,774 | — | 89,107 | — | 2,208,881 | |||||||||||||||||||
Total liabilities | — | 12,980,462 | 122,299 | 7,975,647 | (8,041,617 | ) | 13,036,791 | ||||||||||||||||||
Total equity | 989,899 | 968,027 | 208,394 | (26,849 | ) | (1,149,573 | ) | 989,898 | |||||||||||||||||
Total liabilities and equity | $ | 989,899 | $ | 13,948,489 | $ | 330,693 | $ | 7,948,798 | $ | (9,191,190 | ) | $ | 14,026,689 | ||||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. | |||||||||||||||||||||||||
CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
Assets | Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 256,513 | $ | 691 | $ | 12,531 | $ | — | $ | 269,735 | |||||||||||||
Restricted cash | — | 195,522 | — | 98,522 | — | 294,044 | |||||||||||||||||||
Accounts receivable | — | 2,989,520 | 2,115 | 68,747 | — | 3,060,382 | |||||||||||||||||||
Mortgage loans held for sale | — | 1,655,677 | — | 41,364 | — | 1,697,041 | |||||||||||||||||||
Mortgage loans held for investment, net | — | 1,549 | — | 193,883 | — | 195,432 | |||||||||||||||||||
Reverse mortgage interests | — | 1,956,952 | — | — | — | 1,956,952 | |||||||||||||||||||
Mortgage servicing rights | — | 2,910,640 | — | — | — | 2,910,640 | |||||||||||||||||||
Investment in subsidiaries | 1,181,205 | 305,193 | — | — | (1,486,398 | ) | — | ||||||||||||||||||
Property and equipment, net | — | 108,980 | 835 | 11,820 | — | 121,635 | |||||||||||||||||||
Derivative financial instruments | — | 83,627 | — | 4,706 | — | 88,333 | |||||||||||||||||||
Other assets | 17,118 | 523,979 | 268,420 | 1,036,860 | (1,563,527 | ) | 282,850 | ||||||||||||||||||
Total assets | $ | 1,198,323 | $ | 10,988,152 | $ | 272,061 | $ | 1,468,433 | $ | (3,049,925 | ) | $ | 10,877,044 | ||||||||||||
Liabilities and stockholders’ equity | |||||||||||||||||||||||||
Notes payable | $ | — | $ | 2,489,464 | $ | — | $ | 1,043,279 | $ | — | $ | 3,532,743 | |||||||||||||
Unsecured senior notes | — | 2,159,651 | — | — | — | 2,159,651 | |||||||||||||||||||
Payables and accrued liabilities | — | 1,343,809 | — | 32,619 | (31,533 | ) | 1,344,895 | ||||||||||||||||||
Payables to affiliates | — | 1,251,073 | 116,349 | 164,572 | (1,531,994 | ) | — | ||||||||||||||||||
Derivative financial instruments | — | 9,621 | — | — | — | 9,621 | |||||||||||||||||||
Mortgage servicing liabilities | — | 78,954 | — | — | — | 78,954 | |||||||||||||||||||
Other nonrecourse debt | — | 2,474,375 | — | 78,481 | — | 2,552,856 | |||||||||||||||||||
Total liabilities | — | 9,806,947 | 116,349 | 1,318,951 | (1,563,527 | ) | 9,678,720 | ||||||||||||||||||
Total equity | 1,198,323 | 1,181,205 | 155,712 | 149,482 | (1,486,398 | ) | 1,198,324 | ||||||||||||||||||
Total liabilities and equity | $ | 1,198,323 | $ | 10,988,152 | $ | 272,061 | $ | 1,468,433 | $ | (3,049,925 | ) | $ | 10,877,044 | ||||||||||||
Consolidating Statements of Operations | ' | ||||||||||||||||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. | |||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 (IN THOUSANDS) | |||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Servicing fee income | $ | — | $ | 252,537 | $ | 4 | $ | — | $ | (17,133 | ) | $ | 235,408 | ||||||||||||
Other fee income | — | 58,284 | (12,973 | ) | 80,790 | — | 126,101 | ||||||||||||||||||
Total fee income | — | 310,821 | (12,969 | ) | 80,790 | (17,133 | ) | 361,509 | |||||||||||||||||
Gain on mortgage loans held for sale | — | 121,912 | — | 4,124 | 16,779 | 142,815 | |||||||||||||||||||
Total revenues | — | 432,733 | (12,969 | ) | 84,914 | (354 | ) | 504,324 | |||||||||||||||||
Expenses and impairments: | |||||||||||||||||||||||||
Salaries, wages and benefits | — | 135,686 | 750 | 24,321 | — | 160,757 | |||||||||||||||||||
General and administrative | — | 130,356 | (3,002 | ) | 29,714 | — | 157,068 | ||||||||||||||||||
Loss on foreclosed real estate and other | — | 1,230 | — | 1,501 | — | 2,731 | |||||||||||||||||||
Occupancy | — | 5,606 | 44 | 1,018 | — | 6,668 | |||||||||||||||||||
Total expenses and impairments | — | 272,878 | (2,208 | ) | 56,554 | — | 327,224 | ||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||
Interest income | — | 38,403 | — | 4,557 | 354 | 43,314 | |||||||||||||||||||
Interest expense | — | (106,771 | ) | — | (9,902 | ) | — | (116,673 | ) | ||||||||||||||||
Gain on disposal of property | — | 4,898 | — | — | — | 4,898 | |||||||||||||||||||
Gain/(Loss) on interest rate swaps and caps | — | 145 | — | 795 | — | 940 | |||||||||||||||||||
Gain/(loss) from subsidiaries | 111,225 | 13,049 | — | — | (124,274 | ) | — | ||||||||||||||||||
Total other income (expense) | 111,225 | (50,276 | ) | — | (4,550 | ) | (123,920 | ) | (67,521 | ) | |||||||||||||||
Income before taxes | 111,225 | 109,579 | (10,761 | ) | 23,810 | (124,274 | ) | 109,579 | |||||||||||||||||
Income tax expense/(benefit) | — | (1,700 | ) | — | — | — | (1,700 | ) | |||||||||||||||||
Net income/(loss) | 111,225 | 111,279 | (10,761 | ) | 23,810 | (124,274 | ) | 111,279 | |||||||||||||||||
Less: Net loss attributable to noncontrolling interests | — | 54 | — | — | — | 54 | |||||||||||||||||||
Net income/(loss) excluding noncontrolling interests | $ | 111,225 | $ | 111,225 | $ | (10,761 | ) | $ | 23,810 | $ | (124,274 | ) | $ | 111,225 | |||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS | |||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||
Servicing fee income | $ | — | $ | 357,832 | $ | — | $ | — | $ | (16,153 | ) | $ | 341,679 | ||||||||||||
Other fee income | — | 23,404 | 58,780 | 2,019 | — | 84,203 | |||||||||||||||||||
Total fee income | — | 381,236 | 58,780 | 2,019 | (16,153 | ) | 425,882 | ||||||||||||||||||
Gain on mortgage loans held for sale | — | 190,202 | — | — | 15,754 | 205,956 | |||||||||||||||||||
Total revenues | — | 571,438 | 58,780 | 2,019 | (399 | ) | 631,838 | ||||||||||||||||||
Expenses and impairments: | |||||||||||||||||||||||||
Salaries, wages and benefits | — | 181,366 | 11,799 | 93 | — | 193,258 | |||||||||||||||||||
General and administrative | — | 167,409 | 19,566 | 542 | — | 187,517 | |||||||||||||||||||
Loss on foreclosed real estate and other | — | 5,221 | — | 4,277 | — | 9,498 | |||||||||||||||||||
Occupancy | — | 5,237 | 344 | — | — | 5,581 | |||||||||||||||||||
Total expenses and impairments | — | 359,233 | 31,709 | 4,912 | — | 395,854 | |||||||||||||||||||
Other income / (expense): | |||||||||||||||||||||||||
Interest income | — | 60,150 | — | 3,354 | 399 | 63,903 | |||||||||||||||||||
Interest expense | — | (132,701 | ) | — | (35,514 | ) | — | (168,215 | ) | ||||||||||||||||
Gain on interest rate swaps and caps | — | 306 | — | 94 | — | 400 | |||||||||||||||||||
Gain /(loss) from subsidiaries | 81,885 | (7,888 | ) | — | — | (73,997 | ) | — | |||||||||||||||||
Total other income /(expense) | 81,885 | (80,133 | ) | — | (32,066 | ) | (73,598 | ) | (103,912 | ) | |||||||||||||||
Income before taxes | 81,885 | 132,072 | 27,071 | (34,959 | ) | (73,997 | ) | 132,072 | |||||||||||||||||
Income tax expense | — | 50,187 | — | — | — | 50,187 | |||||||||||||||||||
Net income (loss) | $ | 81,885 | $ | 81,885 | $ | 27,071 | $ | (34,959 | ) | $ | (73,997 | ) | $ | 81,885 | |||||||||||
Consolidating Statements of Cash Flows | ' | ||||||||||||||||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. | |||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Operating activities: | |||||||||||||||||||||||||
Net income/(loss) | $ | 267,961 | $ | 267,961 | $ | 69,892 | $ | (69,152 | ) | $ | (268,701 | ) | $ | 267,961 | |||||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||||||||||||||||||||||
(Gain)/loss from subsidiaries | (267,961 | ) | (740 | ) | — | — | 268,701 | — | |||||||||||||||||
Share-based compensation | — | 8,140 | — | — | — | 8,140 | |||||||||||||||||||
Net tax effect of stock grants | — | (2,660 | ) | — | — | — | (2,660 | ) | |||||||||||||||||
Loss on foreclosed real estate and other | — | 9,288 | — | 4,075 | — | 13,363 | |||||||||||||||||||
Gain on mortgage loans held for sale | — | (631,144 | ) | — | — | (45,960 | ) | (677,104 | ) | ||||||||||||||||
Mortgage loans originated and purchased, net of fees | — | (17,166,460 | ) | — | — | — | (17,166,460 | ) | |||||||||||||||||
Proceeds on sale of and payments of mortgage loans held for sale | — | 15,314,755 | — | 15,771 | 45,960 | 15,376,486 | |||||||||||||||||||
(Gain) / loss on derivatives including ineffectiveness | — | (726 | ) | — | (1,731 | ) | — | (2,457 | ) | ||||||||||||||||
Cash settlement on derivatives financial instruments | — | — | — | (4,544 | ) | — | (4,544 | ) | |||||||||||||||||
Depreciation and amortization | — | 15,987 | 651 | 48 | — | 16,686 | |||||||||||||||||||
Amortization (accretion) of premiums/discounts | — | 40,937 | — | (1,676 | ) | — | 39,261 | ||||||||||||||||||
Fair value changes in excess spread financing | — | 33,229 | — | — | — | 33,229 | |||||||||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights | — | (38,117 | ) | — | — | — | (38,117 | ) | |||||||||||||||||
Fair value change in mortgage servicing rights financing liability | — | — | — | — | — | — | |||||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||||
Accounts receivable, including servicing' advances, net | — | (68,473 | ) | (27,589 | ) | (58 | ) | — | (96,120 | ) | |||||||||||||||
Reverse mortgage funded advances | — | (460,534 | ) | — | — | — | (460,534 | ) | |||||||||||||||||
Other assets | 3,894 | 3,076,784 | (50,016 | ) | (3,379,816 | ) | 17,299 | (331,855 | ) | ||||||||||||||||
Payable and accrued liabilities | — | 507,301 | 10,954 | 2,105 | (17,299 | ) | 503,061 | ||||||||||||||||||
Net cash attributable to operating activities | 3,894 | 905,528 | 3,892 | (3,434,978 | ) | — | (2,521,664 | ) | |||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Investing activities: | |||||||||||||||||||||||||
Property and equipment additions, net of disposals | — | (45,767 | ) | (1,064 | ) | (1,052 | ) | — | (47,883 | ) | |||||||||||||||
Purchase of reverse mortgage servicing rights and interests | — | (15,059 | ) | — | — | — | (15,059 | ) | |||||||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | — | (2,331,658 | ) | — | — | — | (2,331,658 | ) | |||||||||||||||||
Proceeds on sale of servicer advances | — | — | — | — | — | — | |||||||||||||||||||
Loan repurchases from Ginnie Mae | — | — | — | — | — | ||||||||||||||||||||
Proceeds from sales of REO | — | 60,389 | — | — | — | 60,389 | |||||||||||||||||||
Acquisitions, net | — | (78,200 | ) | — | — | — | (78,200 | ) | |||||||||||||||||
Net cash attributable to investing activities | — | (2,410,295 | ) | (1,064 | ) | (1,052 | ) | — | (2,412,411 | ) | |||||||||||||||
Financing activities: | |||||||||||||||||||||||||
Transfers (to)/from restricted cash, net | — | (274,085 | ) | (2,454 | ) | (71,960 | ) | — | (348,499 | ) | |||||||||||||||
Issuance of unsecured senior notes, net | — | 1,365,244 | — | — | — | 1,365,244 | |||||||||||||||||||
Debt financing costs | — | (46,784 | ) | — | — | — | (46,784 | ) | |||||||||||||||||
Increase/(decrease) in notes payable | — | (487,360 | ) | — | 3,529,983 | — | 3,042,623 | ||||||||||||||||||
Issuance of excess spread financing | — | 707,640 | — | — | — | 707,640 | |||||||||||||||||||
Repayment of excess servicing spread financing | — | (77,505 | ) | — | — | — | (77,505 | ) | |||||||||||||||||
Increase in participating interest financing in reverse mortgage interests | — | 422,787 | — | — | — | 422,787 | |||||||||||||||||||
Proceeds from mortgage servicing rights financing | — | — | — | — | — | — | |||||||||||||||||||
Repayment of nonrecourse debt–Legacy assets | — | — | — | (9,925 | ) | — | (9,925 | ) | |||||||||||||||||
Due to financial services company | — | — | — | — | — | ||||||||||||||||||||
Contributions from joint venture member to noncontrolling interest | — | 4,990 | — | — | — | 4,990 | |||||||||||||||||||
Net tax benefit for stock grants issued | 2,660 | — | — | — | — | 2,660 | |||||||||||||||||||
Redemption of shares for stock vesting | (6,554 | ) | — | — | — | — | (6,554 | ) | |||||||||||||||||
Net cash attributable to financing activities | (3,894 | ) | 1,614,927 | (2,454 | ) | 3,448,098 | — | 5,056,677 | |||||||||||||||||
Net increase in cash and cash equivalents | — | 110,160 | 374 | 12,068 | — | 122,602 | |||||||||||||||||||
Cash and cash equivalents at beginning of period | — | 152,248 | 401 | — | — | 152,649 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 262,408 | $ | 775 | $ | 12,068 | $ | — | $ | 275,251 | |||||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. | |||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Operating activities: | |||||||||||||||||||||||||
Net income/(loss) | $ | 201,716 | $ | 201,716 | $ | 39,591 | $ | 41,459 | $ | (282,766 | ) | $ | 201,716 | ||||||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||||||||||||||||||||||
(Gain)/loss from subsidiaries | (201,716 | ) | (81,050 | ) | — | — | 282,766 | — | |||||||||||||||||
Share-based compensation | — | 11,344 | — | — | — | 11,344 | |||||||||||||||||||
Net tax effect of stock grants | — | (2,197 | ) | — | — | — | (2,197 | ) | |||||||||||||||||
Loss on foreclosed real estate and other | — | (160 | ) | — | 5,986 | — | 5,826 | ||||||||||||||||||
Gain on mortgage loans held for sale | — | (386,461 | ) | — | (4,100 | ) | (53,106 | ) | (443,667 | ) | |||||||||||||||
Mortgage loans originated and purchased, net of fees | — | (16,548,058 | ) | — | — | — | (16,548,058 | ) | |||||||||||||||||
Proceeds on sale of and payments of mortgage loans held for sale | — | 17,729,442 | — | (25,493 | ) | 53,106 | 17,757,055 | ||||||||||||||||||
(Gain)/loss on derivatives including ineffectiveness | — | (652 | ) | — | (2,156 | ) | — | (2,808 | ) | ||||||||||||||||
Cash settlement on derivative financial instruments | — | — | — | 1,352 | — | 1,352 | |||||||||||||||||||
Depreciation and amortization | — | 27,148 | 89 | 2,726 | — | 29,963 | |||||||||||||||||||
Amortization (accretion) of premiums/discounts | — | 18,578 | — | (1,918 | ) | — | 16,660 | ||||||||||||||||||
Fair value changes in excess spread financing | — | 61,080 | — | — | — | 61,080 | |||||||||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights | — | 128,227 | — | — | — | 128,227 | |||||||||||||||||||
Fair value change in mortgage servicing rights liability | — | (38,260 | ) | — | — | — | (38,260 | ) | |||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||||
Accounts receivable, including servicing advances, net | — | (3,395,051 | ) | 467 | 3,996,133 | — | 601,549 | ||||||||||||||||||
Reverse mortgage funded advances | — | (572,544 | ) | — | — | — | (572,544 | ) | |||||||||||||||||
Other assets | 4,755 | 1,659,322 | (37,347 | ) | (1,564,513 | ) | 69 | 62,286 | |||||||||||||||||
Payables and accrued liabilities | — | (38,452 | ) | (5,950 | ) | 19,011 | (69 | ) | (25,460 | ) | |||||||||||||||
Net cash attributable to operating activities | 4,755 | (1,226,028 | ) | (3,150 | ) | 2,468,487 | — | 1,244,064 | |||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||||
Investing activities: | |||||||||||||||||||||||||
Property and equipment additions, net of disposals | — | (29,517 | ) | (69 | ) | (11,981 | ) | — | (41,567 | ) | |||||||||||||||
Gain on disposal of building | — | 10,412 | — | — | — | 10,412 | |||||||||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | — | (317,247 | ) | — | — | — | (317,247 | ) | |||||||||||||||||
Proceeds from sale of servicer advances | — | 512,527 | — | — | — | 512,527 | |||||||||||||||||||
Loan repurchases from Ginnie Mae | — | (9,134 | ) | — | — | — | (9,134 | ) | |||||||||||||||||
Proceeds from sales of REO | — | 70,480 | — | — | — | 70,480 | |||||||||||||||||||
Acquisitions, net | — | (18,000 | ) | — | — | — | (18,000 | ) | |||||||||||||||||
Net cash attributable to investing activities | — | 219,521 | (69 | ) | (11,981 | ) | — | 207,471 | |||||||||||||||||
Financing activities: | |||||||||||||||||||||||||
Transfers (to)/from restricted cash, net | — | 100,185 | 3 | 182,101 | — | 282,289 | |||||||||||||||||||
Repayment of unsecured senior notes | — | (285,000 | ) | — | — | — | (285,000 | ) | |||||||||||||||||
Debt financing costs | — | (11,461 | ) | — | — | — | (11,461 | ) | |||||||||||||||||
Increase/(decrease) in notes payable | — | 687,306 | — | (2,629,447 | ) | — | (1,942,141 | ) | |||||||||||||||||
Issuance of excess spread financing | — | 150,951 | — | — | — | 150,951 | |||||||||||||||||||
Repayment of excess spread financing | — | (135,897 | ) | — | — | — | (135,897 | ) | |||||||||||||||||
Increase in participating interest financing in reverse mortgage interests | — | 279,636 | — | — | — | 279,636 | |||||||||||||||||||
Proceeds from mortgage servicing rights financing | — | 52,835 | — | — | — | 52,835 | |||||||||||||||||||
Repayment of nonrecourse debt–Legacy assets | — | — | — | (12,356 | ) | — | (12,356 | ) | |||||||||||||||||
Net tax benefit for stock grants issued | — | 2,197 | — | — | — | 2,197 | |||||||||||||||||||
Redemption of shares for stock vesting | (4,755 | ) | — | — | — | — | (4,755 | ) | |||||||||||||||||
Net cash attributable to financing activities | (4,755 | ) | 840,752 | 3 | (2,459,702 | ) | — | (1,623,702 | ) | ||||||||||||||||
Net increase in cash and cash equivalents | — | (165,755 | ) | (3,216 | ) | (3,196 | ) | — | (172,167 | ) | |||||||||||||||
Cash and cash equivalents at beginning of period | — | 422,268 | 3,907 | 15,727 | — | 441,902 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 256,513 | $ | 691 | $ | 12,531 | $ | — | $ | 269,735 | |||||||||||||
Variable_Interest_Entities_and2
Variable Interest Entities and Securitizations - Assets and Liabilities of Consolidated VIEs (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ' | ' |
Reverse Mortgage Interest, Unpaid Principal Balance, Securitized | $1,296,420 | $1,039,645 |
Participating interest financing | 1,367,382 | 1,080,718 |
Residential Mortgage | ' | ' |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ' | ' |
Assets | 1,464,857 | 4,517,961 |
Liabilities | 1,083,038 | 3,766,075 |
Residential Mortgage | Restricted Cash | ' | ' |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ' | ' |
Assets | 98,115 | 272,188 |
Residential Mortgage | Reverse Mortgages | ' | ' |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ' | ' |
Assets | 0 | 0 |
Residential Mortgage | Accounts Receivable | ' | ' |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ' | ' |
Assets | 1,170,414 | 4,031,444 |
Residential Mortgage | Mortgage Loans Held for Investment | ' | ' |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ' | ' |
Assets | 193,429 | 208,263 |
Residential Mortgage | Derivative Financial Instruments, Assets | ' | ' |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ' | ' |
Assets | 1,349 | 3,691 |
Residential Mortgage | Real Estate Owned | ' | ' |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ' | ' |
Assets | 1,550 | 2,375 |
Residential Mortgage | Notes Payable | ' | ' |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ' | ' |
Liabilities | 1,003,200 | 3,672,726 |
Residential Mortgage | Payables and Accrued Liabilities | ' | ' |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ' | ' |
Liabilities | 1,357 | 4,242 |
Residential Mortgage | Nonrecourse Debt-Legacy Assets | ' | ' |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ' | ' |
Liabilities | 78,481 | 89,107 |
Residential Mortgage | Participating Mortgages | ' | ' |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ' | ' |
Liabilities | $0 | $0 |
Variable_Interest_Entities_and3
Variable Interest Entities and Securitizations - Securitization Trusts (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ' | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due | $887,105 | $1,183,582 | $887,105 | $1,183,582 | ' |
Total collateral balances | 3,394,555 | ' | 3,394,555 | ' | 3,843,694 |
Total certificate balances | 3,368,452 | ' | 3,368,452 | ' | 3,831,473 |
Total mortgage servicing rights at fair value | 2,898,209 | ' | 2,898,209 | ' | 2,488,283 |
Credit Losses | $71,757 | $57,879 | $219,189 | $185,612 | ' |
Variable_Interest_Entities_and4
Variable Interest Entities and Securitizations - Cash Flows from Securitization Trust (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Variable Interest Entities and Securitizations [Abstract] | ' | ' | ' | ' |
Servicing Fees Received | $2,632 | $9,515 | $20,818 | $29,219 |
Loan Repurchases | $0 | $0 | $0 | $0 |
Accounts_Receivable_Schedule_o
Accounts Receivable - Schedule of Accounts Receivable (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Servicer advances, net of purchase discount | $2,594,106 | $5,099,670 |
Reverse mortgage - other | 201,541 | 93,494 |
Receivables from trusts | 158,861 | 134,440 |
Accrued servicing fees | 84,171 | 105,917 |
Accrued interest | 2,805 | 6,970 |
Other | 18,898 | 195,991 |
Total accounts receivable | $3,060,382 | $5,636,482 |
Accounts_Receivable_Narrative_
Accounts Receivable - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 23, 2014 | Apr. 30, 2014 | Mar. 07, 2014 | Feb. 28, 2014 | Jan. 30, 2014 | Dec. 31, 2013 |
Receivables [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of Service Advances Discount | $11.30 | $8.40 | $22.50 | ' | ' | ' | ' | ' | ' |
Servicer Advances sold to unaffiliated third party | ' | 2,200 | ' | 303.8 | 617.5 | 299.1 | 756.2 | 253.5 | 2,700 |
Eliminated Servicer Advance, Discount due to advance sale | ' | 52.9 | ' | ' | ' | ' | ' | ' | ' |
Allowance for Doubtful Accounts Receivable | ' | $94.40 | ' | ' | ' | ' | ' | ' | $40.70 |
Mortgage_Loans_Held_for_Sale_a2
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Sale (Details) (USD $) | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Loans repurchased from securitization pool, during the period | $3,100,000,000 | $700,000,000 | ' | ' |
Loans Receivable Held-for-sale, Reconciliation to Cash Flow, Deductions from Held-for-sale | -17,449,261,000 | -14,780,987,000 | ' | ' |
Loans Receivable Held-for-Sale, Reconciliation to Cash Flow, Transfer from Held-for-sale to Held-for-investment due to Bankruptcy and Foreclosures | 5,136,000 | -2,450,000 | ' | ' |
Mortgage loans held for sale - unpaid principal balance | 1,629,030,000 | ' | 2,532,881,000 | ' |
Mark-to-market adjustment | 68,011,000 | ' | 70,499,000 | ' |
Total mortgage loans held for sale | 1,697,041,000 | 3,868,460,000 | 2,603,380,000 | 1,480,537,000 |
Mortgage Loans Held for Sale nonaccrual basis | 36,600,000 | ' | 69,500,000 | ' |
Fair Value, Mortgage Loans Held for Sale non-accrual status | $30,800,000 | ' | $63,500,000 | ' |
Mortgage_Loans_Held_for_Sale_a3
Mortgage Loans Held for Sale and Investment - Reconciliation to Cash Flow (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Mortgage Servicing Right [Member] | Mortgage Servicing Right [Member] | |||
Servicing Asset at Fair Value, Additions, Servicing Resulting From Transfers of Financial Assets | ' | ' | $185,822 | $248,381 |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ' | ' | ' | ' |
Mortgage loans held for sale - beginning balance | 2,603,380 | 1,480,537 | ' | ' |
Mortgage loans originated and purchased, net of fees | 16,548,058 | 17,166,460 | ' | ' |
Loans Receivable Held-for-Sale, Reconciliation to Cash Flow, Transfer from Held-for-sale to Held-for-investment due to Bankruptcy and Foreclosures | 5,136 | -2,450 | ' | ' |
Mortgage loans held for sale - ending balance | $1,697,041 | $3,868,460 | ' | ' |
Mortgage_Loans_Held_for_Sale_a4
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Investment (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Total mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net | $195,432 | $211,050 | ' |
Mortgage Loans Held for Investment | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications from Nonaccretable Difference | -921 | -848 | ' |
Mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net - unpaid principal balance | 283,115 | 305,085 | ' |
Transfer discount - accretable | -16,025 | -17,362 | -19,749 |
Transfer discount - non-accretable | -68,109 | -74,529 | ' |
Allowance for loan losses | -3,549 | -2,144 | ' |
Total mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net | $195,432 | $211,050 | ' |
Mortgage_Loans_Held_for_Sale_a5
Mortgage Loans Held for Sale and Investment - Accretable Yield (Details) (Mortgage Loans Held for Investment, USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Mortgage Loans Held for Investment | ' | ' |
Accretable Yield Movement Schedule [Roll Forward] | ' | ' |
Balance at the beginning of the period | $17,362 | $19,749 |
Accretion | -2,258 | -3,235 |
Reclassifications from (to) nonaccretable discount | 921 | 848 |
Balance at the end of the period | $16,025 | $17,362 |
Mortgage_Loans_Held_for_Sale_a6
Mortgage Loans Held for Sale and Investment - Allowance (Details) (Mortgage Loans Held for Investment, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Mortgage Loans Held for Investment | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' |
Balance at the beginning of the period | $3,549 | $2,144 |
Balance at the end of the period | $3,549 | $2,144 |
Mortgage_Loans_Held_for_Sale_a7
Mortgage Loans Held for Sale and Investment - Credit Quality (Details) (Mortgage Loans Held for Investment, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Mortgage Loans Held for Investment | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Unpaid principal balance | $283,115 | $305,085 |
Mortgage_Loans_Held_for_Sale_a8
Mortgage Loans Held for Sale and Investment - Reverse Mortgage Interests (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | Feb. 28, 2013 | |
Servicing Assets at Fair Value [Line Items] | ' | ' | ' |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | $2,200,000,000 | ' | ' |
Purchase price paid reverse mortgage | ' | ' | 50,200,000 |
Reverse Mortgage Interest, Unpaid Principal Balance, Securitized | 1,296,420,000 | 1,039,645,000 | ' |
Reverse Mortgage Interest, Unpaid Principal Balance, Unsecuritized | 661,962,000 | 395,663,000 | ' |
Provision for Loan Losses, Reverse Mortgage Interest | 600,000 | 300,000 | ' |
Reverse mortgage interests | 1,956,952,000 | 1,434,506,000 | ' |
Reverse Mortgage Interest, Valuation Allowance | -1,430,000 | -802,000 | ' |
Reverse Mortgages | ' | ' | ' |
Servicing Assets at Fair Value [Line Items] | ' | ' | ' |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | $28,400,000,000 | $28,900,000,000 | $100,000,000 |
Mortgage_Loans_Held_for_Sale_a9
Mortgage Loans Held for Sale and Investment Oo-Investor Percent Participation in Acquired Reverse Loans (Details) | Feb. 28, 2013 |
Acquired Reverse Mortgages [Abstract] | ' |
Percentage of aquired reverse loans, sold to co-investor | 70.00% |
Mortgage_Servicing_Rights_Fair
Mortgage Servicing Rights - Fair Value Assumptions (Details) (Mortgage Servicing Rights) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Credit Sensitive | ' | ' |
Assumption for Fair Value of Mortgage Servicing Rights | ' | ' |
Discount rate | 12.15% | 14.17% |
Total prepayment speeds | 17.24% | 20.34% |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected weighted-average life | '5 years 7 months 3 days | '4 years 7 months 18 days |
Credit losses | 7.35% | 22.87% |
Interest Rate Sensitive | ' | ' |
Assumption for Fair Value of Mortgage Servicing Rights | ' | ' |
Discount rate | 9.60% | 10.50% |
Total prepayment speeds | 9.77% | 8.97% |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected weighted-average life | '7 years 0 months 3 days | '7 years 10 months 17 days |
Credit losses | 2.22% | 9.12% |
Mortgage_Servicing_Rights_MSRs1
Mortgage Servicing Rights - MSR's at Fair Value (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Servicing Asset at Fair Value, Amount [Roll Forward] | ' | ' |
Fair value at the end of the period | $2,898,209 | $2,488,283 |
Principal Amount Outstanding of Loans Held-in-portfolio [Abstract] | ' | ' |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 2,200,000 | ' |
Mortgage Servicing Rights | ' | ' |
Servicing Asset at Fair Value, Amount [Roll Forward] | ' | ' |
Fair value at the beginning of the period | 2,488,283 | 635,860 |
Servicing resulting from transfers of financial assets | 185,822 | 248,381 |
Purchases of servicing assets | 353,450 | 1,545,584 |
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model | 49,779 | 355,586 |
Other changes in fair value | -179,125 | -297,128 |
Fair value at the end of the period | 2,898,209 | 2,488,283 |
Principal Amount Outstanding of Loans Held-in-portfolio [Abstract] | ' | ' |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 318,971,982 | 322,814,139 |
Mortgage Servicing Rights | Credit Sensitive | ' | ' |
Principal Amount Outstanding of Loans Held-in-portfolio [Abstract] | ' | ' |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 242,991,593 | 266,757,777 |
Mortgage Servicing Rights | Interest Rate Sensitive | ' | ' |
Principal Amount Outstanding of Loans Held-in-portfolio [Abstract] | ' | ' |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | $75,980,389 | $56,056,362 |
Mortgage_Servicing_Rights_Fair1
Mortgage Servicing Rights - Fair Value Sensitivity Analysis (Details) (Mortgage Servicing Rights, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
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] | ' | ' |
Total Prepayment Speeds, 10% Adverse Change | $107,917 | $101,590 |
Total Prepayment Speeds, 20% Adverse Change | 206,835 | 195,445 |
Credit Losses, 10% Adverse Change | 37,922 | 89,958 |
Credit Losses, 20% Adverse Change | 75,760 | 178,669 |
100 Basis Points | ' | ' |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ' | ' |
Discount Rate, Adverse Change | 109,213 | 74,681 |
Two Hundred Basis Points [Member] | ' | ' |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ' | ' |
Discount Rate, Adverse Change | $205,224 | $151,899 |
Mortgage_Servicing_Rights_MSRs2
Mortgage Servicing Rights - MSR's at Amortized Cost (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | Mortgage Servicing Rights | Mortgage Servicing Rights | Reverse Mortgages | Reverse Mortgages | Reverse Mortgages | ||
Servicing Assets at Amortized Value | ' | ' | ' | ' | ' | ' | ' |
Fair Value of Servicing Asset, Amortized Cost | $35,475 | $29,192 | ' | ' | ' | ' | ' |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 2,200,000 | ' | 318,971,982 | 322,814,139 | 28,400,000 | 28,900,000 | 100,000 |
Servicing Asset at Amortized Value, Balance [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 14,879 | 10,973 | ' | ' | ' |
Purchase/Assumptions of servicing rights/obligations | ' | ' | 0 | 3,980 | ' | ' | ' |
Amortization/Accretion | ' | ' | 2,448 | 74 | ' | ' | ' |
Balance at the end of the period | ' | ' | 12,431 | 14,879 | ' | ' | ' |
Servicing Liability at Amortized Value [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | 78,954 | 82,521 | 82,521 | 83,238 | ' | ' | ' |
Purchase/Assumptions of servicing rights/obligations | ' | ' | 0 | 0 | ' | ' | ' |
Amortization/Accretion | ' | ' | 3,567 | 717 | ' | ' | ' |
Balance at the end of the period | 78,954 | 82,521 | 78,954 | 82,521 | ' | ' | ' |
Fair Value of Servicing Liability, Amortized Cost | $61,853 | $63,996 | ' | ' | ' | ' | ' |
Mortgage_Servicing_Rights_Subs
Mortgage Servicing Rights - Subserviced Loans (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Subserviced Loans [Line Items] | ' | ' |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | $2,200,000 | ' |
Loan Subservicing Agreement | ' | ' |
Subserviced Loans [Line Items] | ' | ' |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | $20,400,000 | $35,400,000 |
Other_Assets_Others_Assets_Det
Other Assets - Others Assets (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Other Assets | ' | ' |
Derivative financial instruments | $88,333,000 | $123,878,000 |
Loans subject to repurchase right from Ginnie Mae | 83,547,000 | 120,736,000 |
Deferred financing costs | 48,949,000 | 73,030,000 |
Goodwill | 54,701,000 | 38,820,000 |
Real estate owned (REO), net | 53,264,000 | 45,632,000 |
Intangible Assets, Net (Excluding Goodwill) | 20,187,000 | 21,737,000 |
Due from Affiliates | 5,479,000 | 8,861,000 |
Prepaid expenses | 9,942,000 | 21,993,000 |
Margin call deposits | 5,487,000 | 25,932,000 |
Other | 1,294,000 | 3,656,000 |
Total other assets | 282,850,000 | 360,397,000 |
Goodwill, Acquired During Period | $15,900,000 | ' |
Other_Assets_Mortgage_Servicin
Other Assets - Mortgage Servicing Rights (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Mortgaging Servicing Rights | ' | ' | ' |
Loans subject to repurchase right from Ginnie Mae | $83,547 | ' | $120,736 |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 2,200,000 | ' | ' |
Payments to Acquire Mortgage Servicing Rights (MSR) | 317,247 | 2,331,658 | ' |
Mortgage Servicing Rights | ' | ' | ' |
Mortgaging Servicing Rights | ' | ' | ' |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | $318,971,982 | ' | $322,814,139 |
Accounts_Payable_Details
Accounts Payable (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Payables and Accruals [Abstract] | ' | ' | ||
Financial Services Liabilities | $314,864 | [1] | $359,214 | [1] |
MSR purchases payable | 65,374 | 135,759 | ||
Mortgage insurance premiums and reserves | 159,351 | 164,244 | ||
Assets Sold under Agreements to Repurchase, Repurchase Liability | 83,547 | 120,736 | ||
Accrued interest | 64,559 | 76,303 | ||
Accrued bonus and payroll | 62,023 | 66,755 | ||
Taxes | 100,190 | 35,961 | ||
Repurchase reserves | 48,252 | 40,695 | ||
Other | 446,735 | [2] | 308,783 | [2] |
Total payables and accrued liabilities | $1,344,895 | $1,308,450 | ||
[1] | Payables to servicing and subservicing investors represents amounts due to investors in connection with loans serviced and that are paid from collections of the underlying loans, insurance proceeds or at time of property disposal. | |||
[2] | Other payables primarily consist of accrued legal and professional fees, capital lease obligations and amounts payable tosecuritization trusts. |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Statement of Operations Effect (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Change in value of designated cash flow hedge | $0 | ($407) | ($1,963) | $1,412 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Derivative Instruments (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | |
Derivatives, Fair Value [Line Items] | ' | ' | |
Margin Deposit Assets | $5,487 | $25,932 | |
Other Assets | ' | ' | |
Derivatives, Fair Value [Line Items] | ' | ' | |
Margin Deposit Assets | ' | 25,900 | |
Forward Contracts | Designated as Hedging Instrument | Loans Held-for-sale, Mortgages [Member] | ' | ' | |
Derivatives, Fair Value [Line Items] | ' | ' | |
Outstanding Notional - Asset | 13,933 | 57,965 | |
Fair Value - Asset | 609 | 7 | |
Recorded Gains / (Losses) | 602 | -14 | |
Forward Contracts | Designated as Hedging Instrument | Derivative Financial Instruments | ' | ' | |
Derivatives, Fair Value [Line Items] | ' | ' | |
Outstanding Notional - Liability | 2,424,775 | 1,351,870 | |
Fair Value - Liability | 8,415 | 3,305 | |
Recorded Gains / (Losses) | -5,110 | 8,713 | |
Loan Purchase Commitments [Member] | Designated as Hedging Instrument | Derivative Financial Instruments, Assets | ' | ' | |
Derivatives, Fair Value [Line Items] | ' | ' | |
Outstanding Notional - Asset | 274,716 | 197,475 | |
Fair Value - Asset | 2,050 | 793 | |
Recorded Gains / (Losses) | 1,257 | -460 | |
Loan Purchase Commitments [Member] | Designated as Hedging Instrument | Derivative Financial Instruments | ' | ' | |
Derivatives, Fair Value [Line Items] | ' | ' | |
Outstanding Notional - Liability | 76,385 | 204,486 | |
Fair Value - Liability | 1,020 | 1,689 | |
Recorded Gains / (Losses) | 669 | -1,603 | |
Interest Rate Lock Commitments | Designated as Hedging Instrument | Derivative Financial Instruments, Assets | ' | ' | |
Derivatives, Fair Value [Line Items] | ' | ' | |
Outstanding Notional - Asset | 2,388,232 | 3,083,131 | |
Fair Value - Asset | 83,446 | 87,128 | |
Recorded Gains / (Losses) | -3,682 | -69,856 | |
Interest Rate Lock Commitments | Designated as Hedging Instrument | Derivative Financial Instruments | ' | ' | |
Derivatives, Fair Value [Line Items] | ' | ' | |
Outstanding Notional - Liability | 867 | 260,407 | |
Fair Value - Liability | 3 | 2,698 | |
Recorded Gains / (Losses) | 2,695 | -1,613 | |
Forward Mortgage-Backed Securities Trades [Member] | Designated as Hedging Instrument | Derivative Financial Instruments, Assets | ' | ' | |
Derivatives, Fair Value [Line Items] | ' | ' | |
Outstanding Notional - Asset | 1,101,888 | 5,425,663 | |
Fair Value - Asset | 1,488 | 32,266 | |
Recorded Gains / (Losses) | -30,778 | 19,084 | |
Interest Rate Swaps and Caps | Designated as Hedging Instrument | Derivative Financial Instruments | ' | ' | |
Derivatives, Fair Value [Line Items] | ' | ' | |
Outstanding Notional - Liability | ' | 0 | [1] |
Fair Value - Liability | ' | 0 | [1] |
Recorded Gains / (Losses) | ' | 1,576 | [1] |
Interest Rate Swap | Designated as Hedging Instrument | Derivative Financial Instruments, Assets | ' | ' | |
Derivatives, Fair Value [Line Items] | ' | ' | |
Outstanding Notional - Asset | 147,600 | 167,000 | |
Fair Value - Asset | 1,349 | 3,691 | |
Recorded Gains / (Losses) | 2,157 | 544 | |
Asset Backed Securities | Interest Rate Swap | Designated as Hedging Instrument | Derivative Financial Instruments | ' | ' | |
Derivatives, Fair Value [Line Items] | ' | ' | |
Outstanding Notional - Liability | 249,704 | 424,269 | |
Fair Value - Liability | 183 | 834 | |
Recorded Gains / (Losses) | $651 | $1,012 | |
[1] | In January and June 2013, Nationstar terminated these interest rate swaps. |
Indebtedness_Notes_Payable_Sum
Indebtedness - Notes Payable Summary (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Debt Instrument | ' | ' |
Outstanding | $3,532,743,000 | $6,984,351,000 |
Debt Instrument, Collateral Amount | 3,966,643,000 | 7,725,803,000 |
Servicing Segment | ' | ' |
Debt Instrument | ' | ' |
Outstanding | 1,601,219,000 | 4,550,424,000 |
Debt Instrument, Collateral Amount | 1,879,391,000 | 5,083,205,000 |
Servicing Segment | Notes Payable, Other | MBS Advance Financing Facility | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 775,000,000 | ' |
Outstanding | 455,629,000 | 560,814,000 |
Debt Instrument, Collateral Amount | 514,841,000 | 651,953,000 |
Servicing Segment | Notes Payable, Other | Securities Repurchase Facility (2011) | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 0 | ' |
Outstanding | 34,613,000 | 35,546,000 |
Debt Instrument, Collateral Amount | 55,603,000 | 55,603,000 |
Servicing Segment | Notes Payable, Other | MBS Advance Financing Facility 2012 [Member] | ' | ' |
Debt Instrument | ' | ' |
Outstanding | 39,654,000 | 179,306,000 |
Debt Instrument, Collateral Amount | 47,467,000 | 220,833,000 |
Servicing Segment | Notes Payable, Other | NSM Advance Receivable Trust (2013) [Member] | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 475,000,000 | ' |
Outstanding | 399,846,000 | 1,240,940,000 |
Debt Instrument, Collateral Amount | 450,345,000 | 1,347,410,000 |
Servicing Segment | Notes Payable, Other | MBS Servicer Advance Facility (2014) [Domain] | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 80,000,000 | ' |
Outstanding | 68,123,000 | 0 |
Debt Instrument, Collateral Amount | 92,165,000 | 0 |
Servicing Segment | Notes Payable, Other | NSM Servicer Advance Receivable Trust 2013-BA [Member] | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000,000 | ' |
Outstanding | 0 | 1,579,830,000 |
Debt Instrument, Collateral Amount | 0 | 1,764,296,000 |
Servicing Segment | Notes Payable to Banks | Agency Advance Financing Facility (2011-1) | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 1,100,000,000 | ' |
Outstanding | 603,354,000 | 851,957,000 |
Debt Instrument, Collateral Amount | 718,970,000 | 918,574,000 |
Debt Instrument, Basis Spread on Variable Rate | 3.75% | ' |
Servicing Segment | Notes Payable to Banks | Reverse Participations Financing Facility | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 150,000,000 | ' |
Outstanding | 0 | 102,031,000 |
Debt Instrument, Collateral Amount | 0 | 124,536,000 |
Originations Segment | ' | ' |
Debt Instrument | ' | ' |
Outstanding | 1,931,524,000 | 2,433,927,000 |
Debt Instrument, Collateral Amount | 2,087,252,000 | 2,642,598,000 |
Originations Segment | Notes Payable, Other | Warehouse Facility $700 Million [Member] | ' | ' |
Debt Instrument | ' | ' |
Outstanding | 253,713,000 | 111,980,000 |
Debt Instrument, Collateral Amount | 260,443,000 | 115,629,000 |
Originations Segment | Notes Payable, Other | Warehouse Facility $500 Million [Member] | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 500,000,000 | ' |
Outstanding | 197,067,000 | 214,570,000 |
Debt Instrument, Collateral Amount | 209,060,000 | 224,162,000 |
Originations Segment | Notes Payable to Banks | Warehouse Facility $1.5 Billion [Member] | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 1,500,000,000 | ' |
Outstanding | 698,300,000 | 797,281,000 |
Debt Instrument, Collateral Amount | 793,342,000 | 891,648,000 |
Originations Segment | Notes Payable to Banks | Warehouse Facility $750 Million [Member] | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 750,000,000 | ' |
Outstanding | 428,970,000 | 639,378,000 |
Debt Instrument, Collateral Amount | 447,121,000 | 673,599,000 |
Originations Segment | Notes Payable to Banks | Warehouse Facility $700 Million [Member] | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 500,000,000 | ' |
Originations Segment | Notes Payable to Banks | Warehouse Facility $500 Million (2013) [Member] [Member] | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 500,000,000 | ' |
Outstanding | 226,249,000 | 447,926,000 |
Debt Instrument, Collateral Amount | 231,696,000 | 477,980,000 |
Originations Segment | Notes Payable to Banks | Warehouse Facility $300 Million (2009) | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 300,000,000 | ' |
Outstanding | 0 | 159,435,000 |
Debt Instrument, Collateral Amount | 0 | 166,482,000 |
Originations Segment | Notes Payable to Banks | Warehouse Facility $200 Million [Member] | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 200,000,000 | ' |
Outstanding | 87,145,000 | 63,357,000 |
Debt Instrument, Collateral Amount | 103,804,000 | 93,098,000 |
Originations Segment | Notes Payable to Banks | Warehouse Facility $75 Million [Member] [Member] | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 75,000,000 | ' |
Outstanding | 40,080,000 | 0 |
Debt Instrument, Collateral Amount | 41,786,000 | 0 |
Originations Segment | Notes Payable to Banks | Revolving facility - ASAP [Member] | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 0 | ' |
Borrowing Capacity in Period Two [Member] | Servicing Segment | Notes Payable, Other | MBS Advance Financing Facility 2012 [Member] | ' | ' |
Debt Instrument | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $50,000,000 | ' |
Indebtedness_Servicing_Segment
Indebtedness - Servicing Segment Notes Payable (Details) (Servicing Segment, USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Notes Payable, Other | MBS Advance Financing Facility | ' |
Debt Instrument | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $775,000,000 |
Notes Payable, Other | Securities Repurchase Facility (2011) | ' |
Debt Instrument | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 0 |
Notes Payable, Other | NSM Advance Receivable Trust (2013) [Member] | ' |
Debt Instrument | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 475,000,000 |
Notes Payable, Other | NSM Advance Receivable Trust Institutional Investors (2013) [Member] | ' |
Debt Instrument | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000,000 |
Line of Credit Facility, Remaining Borrowing Capacity | 300,000,000 |
Long-term Debt, Weighted Average Interest Rate | 1.51% |
Notes Payable, Other | NSM Servicer Advance Receivable Trust 2013-BA [Member] | ' |
Debt Instrument | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000,000 |
Notes Payable to Banks | Agency Advance Financing Facility (2011) [Member] | ' |
Debt Instrument | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 1,100,000,000 |
Debt Instrument, Basis Spread on Variable Rate | 3.75% |
Notes Payable to Banks | Reverse Participations Financing Facility | ' |
Debt Instrument | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 150,000,000 |
Minimum | Notes Payable to Banks | Agency Advance Financing Facility (2011) [Member] | ' |
Debt Instrument | ' |
Debt Instrument, Basis Spread on Variable Rate | 1.20% |
Borrowing Capacity in Period Two [Member] | Notes Payable, Other | MBS Advance Financing Facility 2012 [Member] | ' |
Debt Instrument | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 50,000,000 |
Secured Debt | Notes Payable to Banks | Agency Advance Financing Facility (2011) [Member] | ' |
Debt Instrument | ' |
Term of agreement | '3 years |
Debt Instrument, Face Amount | $300,000,000 |
Long-term Debt, Weighted Average Interest Rate | 1.46% |
Indebtedness_Originations_Segm
Indebtedness - Originations Segment Notes Payable (Details) (Originations Segment, Notes Payable to Banks, USD $) | Sep. 30, 2014 |
Warehouse Facility $1.5 Billion [Member] | ' |
Debt Instrument | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $1,500,000,000 |
Warehouse Facility $750 Million | ' |
Debt Instrument | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 750,000,000 |
Warehouse Facility $700 Million [Member] | ' |
Debt Instrument | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 500,000,000 |
Warehouse Facility $300 Million (2009) | ' |
Debt Instrument | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $300,000,000 |
Indebtedness_Unsecured_Senior_
Indebtedness - Unsecured Senior Notes (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Debt Instrument | ' | ' |
Minimum Tangible Net Worth Required for Compliance | $517,300,000 | ' |
Maximum Percentage Redeemable of Aggregate Principal on Unsecured Debt | 35.00% | ' |
Unsecured Debt | 2,159,651,000 | 2,444,062,000 |
Write off of Deferred Debt Issuance Cost | 3,400,000 | ' |
Unsecured Senior Notes | ' | ' |
Debt Instrument | ' | ' |
Debt Instrument, Face Amount | 2,150,000,000 | ' |
Unsecured Senior Notes | Unsecured Senior Notes 10.875% Due April 2015 | ' | ' |
Debt Instrument | ' | ' |
Unsecured Debt | 0 | 283,153,000 |
Debt Instrument, Face Amount | 285,000,000 | ' |
Interest rate | 10.88% | ' |
Unsecured Senior Notes | Unsecured Senior Notes 9.625% Due May 2019 | ' | ' |
Debt Instrument | ' | ' |
Unsecured Debt | 378,756,000 | 379,360,000 |
Debt Instrument, Face Amount | 375,000,000 | ' |
Interest rate | 9.63% | ' |
Unsecured Senior Notes | Unsecured Senior Notes Seven Point Eight Seven Five Percent Due Oct 202 [Member] | ' | ' |
Debt Instrument | ' | ' |
Unsecured Debt | 400,565,000 | 400,634,000 |
Debt Instrument, Face Amount | 400,000,000 | ' |
Interest rate | 7.88% | ' |
Unsecured Senior Notes | Unsecured Senior Notes Six Point Five Percent Due July 2021 [Member] | ' | ' |
Debt Instrument | ' | ' |
Unsecured Debt | 605,330,000 | 605,915,000 |
Debt Instrument, Face Amount | 600,000,000 | ' |
Interest rate | 6.50% | ' |
Unsecured Senior Notes | Unsecured Senior Notes Six Point Five Percent Due July 2022 [Member] | ' | ' |
Debt Instrument | ' | ' |
Unsecured Debt | 300,000,000 | 300,000,000 |
Debt Instrument, Face Amount | 300,000,000 | ' |
Interest rate | 6.50% | ' |
Unsecured Senior Notes | Unsecured Senior Notes Six Point Five Percent Due August 2018 [Member] | ' | ' |
Debt Instrument | ' | ' |
Unsecured Debt | 475,000,000 | 475,000,000 |
Debt Instrument, Face Amount | $475,000,000 | ' |
Interest rate | 6.50% | ' |
Indebtedness_Unsecured_Notes_M
Indebtedness - Unsecured Notes Maturity Schedule (Details) (Unsecured Senior Notes, USD $) | Sep. 30, 2014 |
Unsecured Senior Notes | ' |
Expected maturities of long-term debt | ' |
2013 | $0 |
2014 | 0 |
2015 | 0 |
2016 | 0 |
2017 | 475,000,000 |
Thereafter | 1,675,000,000 |
Debt Instrument, Face Amount | $2,150,000,000 |
Indebtedness_Legacy_Assets_Det
Indebtedness - Legacy Assets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Nov. 30, 2009 |
Debt Instrument | ' | ' | ' |
Nonrecourse Debt Legacy Assets | $2,552,856,000 | $2,208,881,000 | ' |
Unpaid principal balance on outstanding notes | ' | ' | 222,000,000 |
Legacy Asset [Member] | ' | ' | ' |
Debt Instrument | ' | ' | ' |
Nonrecourse Debt Legacy Assets | 78,481,000 | 89,107,000 | ' |
Nonrecourse Debt-Legacy Assets | ' | ' | ' |
Debt Instrument | ' | ' | ' |
Debt Instrument, Principal Amount Outstanding | 91,300,000 | 103,600,000 | ' |
Secured Debt | Nonrecourse Debt-Legacy Assets | ' | ' | ' |
Debt Instrument | ' | ' | ' |
Interest rate | 7.50% | ' | ' |
Securities Pledged as Collateral [Member] | ' | ' | ' |
Debt Instrument | ' | ' | ' |
Unpaid principal balance on outstanding notes | $274,000,000 | $302,000,000 | ' |
Indebtedness_Excess_Spread_Fin
Indebtedness - Excess Spread Financing Debt (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument | ' | ' |
Excess spread financing - fair value | $1,062,544 | $986,410 |
Indebtedness_Participating_Int
Indebtedness - Participating Interest Financing (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | Participating Interest Financing | ||
Debt Instrument | ' | ' | ' |
Interest rate, minimum | ' | ' | 0.14% |
Interest rate, maximum | ' | ' | 6.98% |
Participating Interest Financing | $1,367,382 | $1,103,490 | ' |
Participating interest financing | $1,367,382 | $1,080,718 | ' |
Indebtedness_Indebtedness_Fair
Indebtedness Indebtedness - Fair Value Sensitivity Analysis (Details) (USD $) | 9 Months Ended | ||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||||
Excess Spread Financing | Excess Spread Financing | 100 Basis Points | 100 Basis Points | Two Hundred Basis Points [Member] | Two Hundred Basis Points [Member] | ||||||||||||||||||||||
Excess Spread Financing | Excess Spread Financing | Excess Spread Financing | Excess Spread Financing | ||||||||||||||||||||||||
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] | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block] | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||
The following table shows the hypothetical effect on the fair value of the MSRs using various unfavorable variations of the expected levels of certain key assumptions used in valuing these assets at September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||
Discount Rate | Total Prepayment | Credit Losses | |||||||||||||||||||||||||
Speeds | |||||||||||||||||||||||||||
100 bps | 200 bps | 10% | 20% | 10% | 20% | ||||||||||||||||||||||
Adverse | Adverse | Adverse | Adverse | Adverse | Adverse | ||||||||||||||||||||||
Change | Change | Change | Change | Change | Change | ||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||||
Mortgage servicing rights | $ | (109,213 | ) | $ | (205,224 | ) | $ | (107,917 | ) | $ | (206,835 | ) | $ | (37,922 | ) | $ | (75,760 | ) | |||||||||
31-Dec-13 | |||||||||||||||||||||||||||
Mortgage servicing rights | $ | (74,681 | ) | $ | (151,899 | ) | $ | (101,590 | ) | $ | (195,445 | ) | $ | (89,958 | ) | $ | (178,669 | ) | |||||||||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of Other than 10 or 20 Percent Adverse Change in Discount Rate | ' | ' | ' | $38,897 | $33,156 | $79,644 | $68,636 | ||||||||||||||||||||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 10 Percent Adverse Change in Prepayment Speed | ' | 34,979 | 26,492 | ' | ' | ' | ' | ||||||||||||||||||||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 20 Percent Adverse Change in Prepayment Speed | ' | 73,083 | 53,753 | ' | ' | ' | ' | ||||||||||||||||||||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 10 Percent Adverse Change in Expected Credit Losses | ' | 3,066 | 29,219 | ' | ' | ' | ' | ||||||||||||||||||||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 20 Percent Adverse Change in Expected Credit Losses | ' | $7,665 | $42,611 | ' | ' | ' | ' |
Indebtedness_Mortgage_Servicin
Indebtedness Mortgage Servicing Rights Financing (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Short-term Debt [Line Items] | ' | ' | ' |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | $44,449 | $33,452 | $29,874 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Effective Income Tax Rate Unadjusted for change in allowance | 38.80% | ' | 38.00% | ' | ' |
Principal Amount Outstanding on Mortgage Loans Serviced | $347,300,000,000 | ' | $347,300,000,000 | ' | $159,200,000,000 |
Income tax expense | -1,700,000 | 50,187,000 | 52,242,000 | 164,233,000 | ' |
Effective tax rate | 1.60% | 38.00% | 20.60% | 38.00% | ' |
Net deferred tax liability | 116,000,000 | ' | 116,000,000 | ' | 102,700,000 |
Valuation allowance on deferred tax asset | $6,400,000 | ' | $6,400,000 | ' | $46,700,000 |
Income_Taxes_Income_Tax_Expens
Income Taxes Income Tax Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income Tax Expense (Benefit) | $1,700 | ($50,187) | ($52,242) | ($164,233) |
Effective Income Tax Rate Reconciliation, Percent | 1.60% | 38.00% | 20.60% | 38.00% |
Income_Taxes_Income_Tax_Expens1
Income Taxes Income Tax Expense Paragraph (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Effective Income Tax Rate Unadjusted for change in allowance | 38.80% | 38.00% | ' |
Deferred Tax Assets, Valuation Allowance | $6.40 | $6.40 | $46.70 |
Deferred Tax Liabilities, Net | 116 | 116 | 102.7 |
Operating Loss Carryforwards | 199.4 | 199.4 | ' |
Deferred Tax Assets, Capital Loss Carryforwards | 15.9 | 15.9 | ' |
Operating Loss Carryforwards, Limitations on Use | ' | '11 | ' |
Capital Loss Carryforward [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Deferred Tax Assets, Valuation Allowance | 5.6 | 5.6 | ' |
Internal Revenue Service (IRS) [Member] | Valuation Allowance, Operating Loss Carryforwards [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Deferred Tax Assets, Valuation Allowance | 0.5 | 0.5 | ' |
State and Local Jurisdiction [Member] | Valuation Allowance, Operating Loss Carryforwards [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Deferred Tax Assets, Valuation Allowance | $0.30 | $0.30 | ' |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value Assumptions (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Excess Spread Financing | ' | ' |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement | ' | ' |
Mortgage prepayment speeds | 12.80% | 9.60% |
Average life | '5 years 8 months 30 days | '4 years 8 months |
Discount rate | 11.80% | 13.90% |
Minimum [Member] | Excess Spread Financing | ' | ' |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement | ' | ' |
Mortgage prepayment speeds | 5.52% | 4.00% |
Average life | '3 years 10 months 11 days | '3 years 5 months |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Other Key Assumption Rate or Value | '0.0657 | '0.05 |
Discount rate | 9.02% | 10.10% |
Maximum [Member] | Excess Spread Financing | ' | ' |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement | ' | ' |
Mortgage prepayment speeds | 19.32% | 17.60% |
Average life | '7 years 5 months | '5 years 8 months 12 days |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Other Key Assumption Rate or Value | '0.3185 | '0.358 |
Discount rate | 14.22% | 20.00% |
Advance financing rates [Domain] | Mortgage Servicing Right [Member] | ' | ' |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement | ' | ' |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Other Key Assumption Rate or Value | '2.72% | ' |
Advance recovery rates [Domain] | Mortgage Servicing Right [Member] | ' | ' |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement | ' | ' |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Other Key Assumption Rate or Value | '24.60% | ' |
Fair_Value_Measurements_Measur
Fair Value Measurements - Measured on a Recurring Basis (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | ' |
Mortgage servicing rights | $2,898,209 | ' | $2,488,283 |
Derivative instruments | 88,333 | ' | 123,878 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | 9,621 | ' | 8,526 |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | 44,449 | 33,452 | 29,874 |
Level 1 | ' | ' | ' |
ASSETS | ' | ' | ' |
Mortgages loans held for sale | ' | 0 | 0 |
Derivative instruments | ' | 0 | 0 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | ' | 0 | 0 |
Level 2 | ' | ' | ' |
ASSETS | ' | ' | ' |
Mortgages loans held for sale | ' | 1,696,657 | 2,601,520 |
Derivative instruments | ' | 88,333 | 123,878 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | ' | 9,621 | 8,526 |
Level 3 | ' | ' | ' |
ASSETS | ' | ' | ' |
Mortgages loans held for sale | ' | 0 | 0 |
Derivative instruments | ' | 0 | 0 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | ' | 0 | 0 |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | ' | 44,449 | 29,874 |
Fair Value, Measurements, Recurring | Total Fair Value | ' | ' | ' |
ASSETS | ' | ' | ' |
Mortgages loans held for sale | 1,695,502 | ' | 2,585,340 |
Mortgage servicing rights | 2,898,209 | ' | 2,488,283 |
Total assets | 4,682,044 | ' | 5,197,501 |
LIABILITIES | ' | ' | ' |
Excess spread financing (at fair value) | 1,062,544 | ' | 986,410 |
Total liabilities | 1,116,614 | ' | 1,024,810 |
Fair Value, Measurements, Recurring | Level 1 | ' | ' | ' |
ASSETS | ' | ' | ' |
Mortgages loans held for sale | 0 | ' | 0 |
Mortgage servicing rights | 0 | ' | 0 |
Total assets | 0 | ' | 0 |
LIABILITIES | ' | ' | ' |
Excess spread financing (at fair value) | 0 | ' | 0 |
Total liabilities | 0 | ' | 0 |
Fair Value, Measurements, Recurring | Level 2 | ' | ' | ' |
ASSETS | ' | ' | ' |
Mortgages loans held for sale | 1,695,502 | ' | 2,585,340 |
Mortgage servicing rights | 0 | ' | 0 |
Total assets | 1,783,835 | ' | 2,709,218 |
LIABILITIES | ' | ' | ' |
Excess spread financing (at fair value) | 0 | ' | 0 |
Total liabilities | 9,621 | ' | 8,526 |
Fair Value, Measurements, Recurring | Level 3 | ' | ' | ' |
ASSETS | ' | ' | ' |
Mortgages loans held for sale | 0 | ' | 0 |
Mortgage servicing rights | 2,898,209 | ' | 2,488,283 |
Total assets | 2,898,209 | ' | 2,488,283 |
LIABILITIES | ' | ' | ' |
Excess spread financing (at fair value) | 1,062,544 | ' | 986,410 |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | 44,449 | ' | 29,874 |
Total liabilities | 1,106,993 | ' | 1,016,284 |
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | Total Fair Value | ' | ' | ' |
ASSETS | ' | ' | ' |
Derivative instruments | 83,446 | ' | 87,128 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | 3 | ' | ' |
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | Level 1 | ' | ' | ' |
ASSETS | ' | ' | ' |
Derivative instruments | 0 | ' | 0 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | 0 | ' | ' |
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | Level 2 | ' | ' | ' |
ASSETS | ' | ' | ' |
Derivative instruments | 83,446 | ' | 87,128 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | 3 | ' | ' |
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | Level 3 | ' | ' | ' |
ASSETS | ' | ' | ' |
Derivative instruments | 0 | ' | 0 |
Interest Rate Swaps and Caps | Fair Value, Measurements, Recurring | Total Fair Value | ' | ' | ' |
ASSETS | ' | ' | ' |
Derivative instruments | 1,349 | ' | 3,691 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | ' | ' | 2,698 |
Interest Rate Swaps and Caps | Fair Value, Measurements, Recurring | Level 1 | ' | ' | ' |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | ' | ' | 0 |
Interest Rate Swaps and Caps | Fair Value, Measurements, Recurring | Level 2 | ' | ' | ' |
ASSETS | ' | ' | ' |
Derivative instruments | 1,349 | ' | 3,691 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | ' | ' | 2,698 |
Interest Rate Swaps and Caps | Fair Value, Measurements, Recurring | Level 3 | ' | ' | ' |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | ' | ' | 0 |
Interest Rate Swap | Fair Value, Measurements, Recurring | Total Fair Value | ' | ' | ' |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | 183 | ' | 834 |
Interest Rate Swap | Fair Value, Measurements, Recurring | Level 1 | ' | ' | ' |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | 0 | ' | 0 |
Interest Rate Swap | Fair Value, Measurements, Recurring | Level 2 | ' | ' | ' |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | 183 | ' | 834 |
Interest Rate Swap | Fair Value, Measurements, Recurring | Level 3 | ' | ' | ' |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | 0 | ' | 0 |
Forward Contracts | Fair Value, Measurements, Recurring | Total Fair Value | ' | ' | ' |
ASSETS | ' | ' | ' |
Derivative instruments | 1,488 | ' | 32,266 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | 8,415 | ' | 3,305 |
Forward Contracts | Fair Value, Measurements, Recurring | Level 1 | ' | ' | ' |
ASSETS | ' | ' | ' |
Derivative instruments | 0 | ' | 0 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | 0 | ' | 0 |
Forward Contracts | Fair Value, Measurements, Recurring | Level 2 | ' | ' | ' |
ASSETS | ' | ' | ' |
Derivative instruments | 1,488 | ' | 32,266 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | 8,415 | ' | 3,305 |
Forward Contracts | Fair Value, Measurements, Recurring | Level 3 | ' | ' | ' |
ASSETS | ' | ' | ' |
Derivative instruments | 0 | ' | 0 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | 0 | ' | 0 |
Loan Purchase Commitments [Member] | Fair Value, Measurements, Recurring | Total Fair Value | ' | ' | ' |
ASSETS | ' | ' | ' |
Derivative instruments | 2,050 | ' | 793 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | 1,020 | ' | 1,689 |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | 44,449 | ' | ' |
Loan Purchase Commitments [Member] | Fair Value, Measurements, Recurring | Level 1 | ' | ' | ' |
ASSETS | ' | ' | ' |
Derivative instruments | 0 | ' | 0 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | 0 | ' | 0 |
Loan Purchase Commitments [Member] | Fair Value, Measurements, Recurring | Level 2 | ' | ' | ' |
ASSETS | ' | ' | ' |
Derivative instruments | 2,050 | ' | 793 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | 1,020 | ' | 1,689 |
Loan Purchase Commitments [Member] | Fair Value, Measurements, Recurring | Level 3 | ' | ' | ' |
ASSETS | ' | ' | ' |
Derivative instruments | 0 | ' | 0 |
LIABILITIES | ' | ' | ' |
Derivative financial instruments | $0 | ' | $0 |
Fair_Value_Measurements_Level_
Fair Value Measurements - Level 3 Reconciliation (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Excess Spread Financing | Excess Spread Financing | Excess Spread Financing | Mortgage Servicing Right Liability [Member] | Mortgage Servicing Right Liability [Member] | Mortgage Servicing Right Liability [Member] | Mortgage Servicing Rights | Mortgage Servicing Rights | Mortgage Servicing Rights | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | $44,449 | $33,452 | $29,874 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,678,134 | 2,488,283 | 635,860 |
Transfers into Level 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Transfers out of Level 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Total gains or losses included in earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5,308 | -129,346 | 58,458 |
Total gains or losses included in other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Purchases, issuance, sales and settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | 159,773 | 353,450 | 1,545,584 |
Issuances | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,610 | -185,822 | 248,381 |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Ending balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,898,209 | 2,898,209 | 2,488,283 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | 1,036,038 | 986,410 | 288,089 | ' | ' | ' | ' | ' | ' |
Transfers into Level 3 | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' |
Transfers out of Level 3 | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' |
Total gains or losses included in earnings | ' | ' | ' | 37,313 | 61,080 | 73,333 | 10,997 | -38,260 | ' | ' | ' | ' |
Total gains or losses included in other comprehensive income | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' |
Purchases, issuances, sales and settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' |
Issuances | ' | ' | ' | 39,833 | 150,951 | 755,344 | 0 | 52,835 | 29,874 | ' | ' | ' |
Sales | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' |
Settlements | ' | ' | ' | -50,640 | -135,897 | -130,356 | 0 | 0 | ' | ' | ' | ' |
Ending balance | ' | ' | ' | $1,062,544 | $1,062,544 | $986,410 | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Financial assets: | ' | ' | ' |
Derivative instruments | $88,333 | ' | $123,878 |
Financial liabilities: | ' | ' | ' |
Derivative financial instruments | 9,621 | ' | 8,526 |
Excess spread financing - fair value | 1,062,544 | ' | 986,410 |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | 44,449 | 33,452 | 29,874 |
Level 1 | ' | ' | ' |
Financial assets: | ' | ' | ' |
Cash and cash equivalents | ' | 269,735 | 441,902 |
Restricted cash | ' | 294,044 | 592,747 |
Mortgages loans held for sale | ' | 0 | 0 |
Mortgage loans held for investment, subject to nonrecourse debt - Legacy assets | ' | 0 | 0 |
Reverse mortgage interests | ' | 0 | 0 |
Derivative instruments | ' | 0 | 0 |
Financial liabilities: | ' | ' | ' |
Notes payable | ' | 0 | 0 |
Unsecured senior notes | ' | 2,150,702 | 2,489,886 |
Derivative financial instruments | ' | 0 | 0 |
Nonrecourse debt - Legacy assets | ' | 0 | 0 |
Excess spread financing - fair value | ' | 0 | 0 |
Participating interest financing | ' | 0 | 0 |
Level 2 | ' | ' | ' |
Financial assets: | ' | ' | ' |
Cash and cash equivalents | ' | 0 | 0 |
Restricted cash | ' | 0 | 0 |
Mortgages loans held for sale | ' | 1,696,657 | 2,601,520 |
Mortgage loans held for investment, subject to nonrecourse debt - Legacy assets | ' | 0 | 0 |
Reverse mortgage interests | ' | 0 | 0 |
Derivative instruments | ' | 88,333 | 123,878 |
Financial liabilities: | ' | ' | ' |
Notes payable | ' | 0 | 0 |
Unsecured senior notes | ' | 0 | 0 |
Derivative financial instruments | ' | 9,621 | 8,526 |
Nonrecourse debt - Legacy assets | ' | 0 | 0 |
Excess spread financing - fair value | ' | 0 | 0 |
Participating interest financing | ' | 1,336,722 | 1,093,747 |
Level 3 | ' | ' | ' |
Financial assets: | ' | ' | ' |
Cash and cash equivalents | ' | 0 | 0 |
Restricted cash | ' | 0 | 0 |
Mortgages loans held for sale | ' | 0 | 0 |
Mortgage loans held for investment, subject to nonrecourse debt - Legacy assets | ' | 168,959 | 180,435 |
Reverse mortgage interests | ' | 1,937,199 | 1,405,197 |
Derivative instruments | ' | 0 | 0 |
Financial liabilities: | ' | ' | ' |
Notes payable | ' | 3,532,743 | 6,984,351 |
Unsecured senior notes | ' | 0 | 0 |
Derivative financial instruments | ' | 0 | 0 |
Nonrecourse debt - Legacy assets | ' | 89,018 | 95,345 |
Excess spread financing - fair value | ' | 1,062,544 | 986,410 |
Participating interest financing | ' | 0 | 0 |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | ' | 44,449 | 29,874 |
Carrying Amount | ' | ' | ' |
Financial assets: | ' | ' | ' |
Cash and cash equivalents | ' | 269,735 | 441,902 |
Restricted cash | ' | 294,044 | 592,747 |
Mortgages loans held for sale | ' | 1,697,041 | 2,603,380 |
Mortgage loans held for investment, subject to nonrecourse debt - Legacy assets | ' | 195,432 | 211,050 |
Reverse mortgage interests | ' | 1,956,952 | 1,434,506 |
Derivative instruments | ' | 88,333 | 123,878 |
Financial liabilities: | ' | ' | ' |
Notes payable | ' | 3,532,743 | 6,984,351 |
Unsecured senior notes | ' | 2,159,651 | 2,444,062 |
Derivative financial instruments | ' | 9,621 | 8,526 |
Nonrecourse debt - Legacy assets | ' | 78,481 | 89,107 |
Excess spread financing - fair value | ' | 1,062,544 | 986,410 |
Participating interest financing | ' | 1,367,382 | 1,103,490 |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | ' | 44,449 | 29,874 |
Fair Value, Measurements, Recurring | Level 1 | ' | ' | ' |
Financial assets: | ' | ' | ' |
Mortgages loans held for sale | 0 | ' | 0 |
Fair Value, Measurements, Recurring | Level 2 | ' | ' | ' |
Financial assets: | ' | ' | ' |
Mortgages loans held for sale | 1,695,502 | ' | 2,585,340 |
Fair Value, Measurements, Recurring | Level 3 | ' | ' | ' |
Financial assets: | ' | ' | ' |
Mortgages loans held for sale | 0 | ' | 0 |
Financial liabilities: | ' | ' | ' |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | 44,449 | ' | 29,874 |
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ' |
Financial assets: | ' | ' | ' |
Mortgages loans held for sale | 1,695,502 | ' | 2,585,340 |
Fair Value, Measurements, Recurring | Forward Contracts | Level 1 | ' | ' | ' |
Financial assets: | ' | ' | ' |
Derivative instruments | 0 | ' | 0 |
Financial liabilities: | ' | ' | ' |
Derivative financial instruments | 0 | ' | 0 |
Fair Value, Measurements, Recurring | Forward Contracts | Level 2 | ' | ' | ' |
Financial assets: | ' | ' | ' |
Derivative instruments | 1,488 | ' | 32,266 |
Financial liabilities: | ' | ' | ' |
Derivative financial instruments | 8,415 | ' | 3,305 |
Fair Value, Measurements, Recurring | Forward Contracts | Level 3 | ' | ' | ' |
Financial assets: | ' | ' | ' |
Derivative instruments | 0 | ' | 0 |
Financial liabilities: | ' | ' | ' |
Derivative financial instruments | 0 | ' | 0 |
Fair Value, Measurements, Recurring | Forward Contracts | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ' |
Financial assets: | ' | ' | ' |
Derivative instruments | 1,488 | ' | 32,266 |
Financial liabilities: | ' | ' | ' |
Derivative financial instruments | 8,415 | ' | 3,305 |
Fair Value, Measurements, Recurring | Loan Purchase Commitments [Member] | Level 1 | ' | ' | ' |
Financial assets: | ' | ' | ' |
Derivative instruments | 0 | ' | 0 |
Financial liabilities: | ' | ' | ' |
Derivative financial instruments | 0 | ' | 0 |
Fair Value, Measurements, Recurring | Loan Purchase Commitments [Member] | Level 2 | ' | ' | ' |
Financial assets: | ' | ' | ' |
Derivative instruments | 2,050 | ' | 793 |
Financial liabilities: | ' | ' | ' |
Derivative financial instruments | 1,020 | ' | 1,689 |
Fair Value, Measurements, Recurring | Loan Purchase Commitments [Member] | Level 3 | ' | ' | ' |
Financial assets: | ' | ' | ' |
Derivative instruments | 0 | ' | 0 |
Financial liabilities: | ' | ' | ' |
Derivative financial instruments | 0 | ' | 0 |
Fair Value, Measurements, Recurring | Loan Purchase Commitments [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ' |
Financial assets: | ' | ' | ' |
Derivative instruments | 2,050 | ' | 793 |
Financial liabilities: | ' | ' | ' |
Derivative financial instruments | 1,020 | ' | 1,689 |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | $44,449 | ' | ' |
Fair_Value_Measurements_Fair_V2
Fair Value Measurements Fair Value Measurement - Fair Value Assumption (Details) (Excess Spread Financing) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement | ' | ' |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Prepayment Speed | 12.80% | 9.60% |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Weighted Average Life | '5 years 8 months 30 days | '4 years 8 months |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate | 11.80% | 13.90% |
Minimum | ' | ' |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement | ' | ' |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Prepayment Speed | 5.52% | 4.00% |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Weighted Average Life | '3 years 10 months 11 days | '3 years 5 months |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate | 9.02% | 10.10% |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Other Key Assumption Rate or Value | '0.0657 | '0.05 |
Maximum | ' | ' |
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement | ' | ' |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Prepayment Speed | 19.32% | 17.60% |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Weighted Average Life | '7 years 5 months | '5 years 8 months 12 days |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate | 14.22% | 20.00% |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Other Key Assumption Rate or Value | '0.3185 | '0.358 |
Sharebased_Compensation_Detail
Share-based Compensation (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Redemption of shares for stock vesting | ($4,755) | ($6,554) | ($6,944) |
Capital_Requirements_Capital_R
Capital Requirements Capital Requirements (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Mortgage Banking [Abstract] | ' |
Minimum Net Worth Required for Compliance | $653.50 |
Minimum Tangible Net Worth Required for Compliance | $517.30 |
Commitments_and_Contingencies_
Commitments and Contingencies - Litigation and Regulatory Matters (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Legal Fees | $3.60 | $6.20 | $18.80 | $14.20 |
Litigation and Regulatory Matters [Member] | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Loss Contingency, Range of Possible Loss, Minimum | 2.6 | ' | 2.6 | ' |
Loss Contingency, Range of Possible Loss, Maximum | $6.90 | ' | $6.90 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Loan and Other Commitments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Feb. 28, 2013 |
Mortgage Servicing Rights [Line Items] | ' | ' | ' |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | $2,200,000,000 | ' | ' |
Reverse Mortgages | ' | ' | ' |
Mortgage Servicing Rights [Line Items] | ' | ' | ' |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 28,400,000,000 | 28,900,000,000 | 100,000,000 |
Unfunded advance obligations | $4,200,000,000 | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Other Contingencies (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | |||
Mortgage Servicing Rights [Line Items] | ' | ' | ' |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | $2,200,000 | ' | ' |
Loan Subservicing Agreement | ' | ' | ' |
Mortgage Servicing Rights [Line Items] | ' | ' | ' |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 20,400,000 | 35,400,000 | ' |
Reverse Mortgages | ' | ' | ' |
Mortgage Servicing Rights [Line Items] | ' | ' | ' |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | $28,400,000 | $28,900,000 | $100,000 |
Business_Segment_Reporting_Fin
Business Segment Reporting - Financial Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Loss on foreclosed real estate and other | $2,731 | $9,498 | $5,826 | $13,363 | ' |
Revenues: | ' | ' | ' | ' | ' |
Servicing fee income | 235,408 | 341,679 | 733,671 | 802,584 | ' |
Other fee income | 126,101 | 84,203 | 346,366 | 186,877 | ' |
Total fee income | 361,509 | 425,882 | 1,080,037 | 989,461 | ' |
Gain/(loss) on mortgage loans held for sale | 142,815 | 205,956 | 443,667 | 677,104 | ' |
Total revenues | 504,324 | 631,838 | 1,523,704 | 1,666,565 | ' |
Total expenses and impairments | 327,224 | 395,854 | 995,068 | 1,004,276 | ' |
Interest income | 43,314 | 63,903 | 130,198 | 145,948 | ' |
Other income (expense): | ' | ' | ' | ' | ' |
Interest expense | -116,673 | -168,215 | -412,695 | -378,500 | ' |
Gain (Loss) on Sale of Properties | 4,898 | 0 | 4,898 | 0 | ' |
Gain/(Loss) on interest rate swaps and caps | 940 | 400 | 2,808 | 2,457 | ' |
Total other income (expense) | -67,521 | -103,912 | -274,791 | -230,095 | ' |
Income before taxes | 109,579 | 132,072 | 253,845 | 432,194 | ' |
Depreciation and amortization | 9,562 | 6,995 | 29,963 | 16,686 | ' |
Assets | 10,877,044 | 17,068,072 | 10,877,044 | 17,068,072 | 14,026,689 |
Operating Segments | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Servicing fee income | 253,543 | 357,274 | 788,306 | 848,460 | ' |
Other fee income | 123,966 | 84,153 | 343,662 | 186,968 | ' |
Total fee income | 377,509 | 441,427 | 1,131,968 | 1,035,428 | ' |
Gain/(loss) on mortgage loans held for sale | 127,208 | 190,310 | 392,784 | 631,151 | ' |
Total revenues | 504,717 | 631,737 | 1,524,752 | 1,666,579 | ' |
Total expenses and impairments | 300,350 | 366,811 | 938,226 | 932,493 | ' |
Interest income | 37,272 | 60,186 | 116,942 | 132,897 | ' |
Other income (expense): | ' | ' | ' | ' | ' |
Interest expense | -66,088 | -118,635 | -256,293 | -252,016 | ' |
Gain (Loss) on Sale of Properties | 0 | ' | 0 | ' | ' |
Gain/(Loss) on interest rate swaps and caps | 795 | 94 | 2,156 | 1,466 | ' |
Total other income (expense) | -28,021 | -58,355 | -137,195 | -117,653 | ' |
Income before taxes | 176,346 | 206,571 | 449,331 | 616,433 | ' |
Depreciation and amortization | 4,857 | 5,982 | 21,971 | 14,176 | ' |
Assets | 10,619,844 | 14,362,213 | 10,619,844 | 14,362,213 | ' |
Servicing Segment | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Servicing fee income | 253,434 | 357,262 | 787,972 | 848,324 | ' |
Other fee income | 28,113 | 19,782 | 71,722 | 58,795 | ' |
Total fee income | 281,547 | 377,044 | 859,694 | 907,119 | ' |
Gain/(loss) on mortgage loans held for sale | -1,147 | 124 | -2,972 | -61 | ' |
Total revenues | 280,400 | 377,168 | 856,722 | 907,058 | ' |
Total expenses and impairments | 160,975 | 158,247 | 511,998 | 432,219 | ' |
Interest income | 18,369 | 31,913 | 59,191 | 66,961 | ' |
Other income (expense): | ' | ' | ' | ' | ' |
Interest expense | -48,651 | -85,653 | -199,464 | -195,089 | ' |
Gain (Loss) on Sale of Properties | 0 | ' | 0 | ' | ' |
Gain/(Loss) on interest rate swaps and caps | 795 | 94 | 2,156 | 1,466 | ' |
Total other income (expense) | -29,487 | -53,646 | -138,117 | -126,662 | ' |
Income before taxes | 89,938 | 165,275 | 206,607 | 348,177 | ' |
Depreciation and amortization | 2,886 | 3,659 | 11,453 | 9,315 | ' |
Assets | 8,370,695 | 10,067,020 | 8,370,695 | 10,067,020 | ' |
Originations Segment | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Servicing fee income | 105 | -1 | 317 | 95 | ' |
Other fee income | 10,334 | 23,117 | 38,071 | 36,479 | ' |
Total fee income | 10,439 | 23,116 | 38,388 | 36,574 | ' |
Gain/(loss) on mortgage loans held for sale | 128,355 | 190,186 | 395,756 | 631,212 | ' |
Total revenues | 138,794 | 213,302 | 434,144 | 667,786 | ' |
Total expenses and impairments | 89,369 | 176,600 | 291,503 | 424,368 | ' |
Interest income | 18,903 | 28,273 | 57,751 | 65,936 | ' |
Other income (expense): | ' | ' | ' | ' | ' |
Interest expense | -17,085 | -32,879 | -56,333 | -56,732 | ' |
Gain (Loss) on Sale of Properties | 0 | ' | 0 | ' | ' |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | ' |
Total other income (expense) | 1,818 | -4,606 | 1,418 | 9,204 | ' |
Income before taxes | 51,243 | 32,096 | 144,059 | 252,622 | ' |
Depreciation and amortization | 1,049 | 1,914 | 7,754 | 4,149 | ' |
Assets | 1,929,239 | 4,256,216 | 1,929,239 | 4,256,216 | ' |
Solutionstar Segment [Member] | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Servicing fee income | 4 | 13 | 17 | 41 | ' |
Other fee income | 85,519 | 41,254 | 233,869 | 91,694 | ' |
Total fee income | 85,523 | 41,267 | 233,886 | 91,735 | ' |
Gain/(loss) on mortgage loans held for sale | 0 | 0 | 0 | 0 | ' |
Total revenues | 85,523 | 41,267 | 233,886 | 91,735 | ' |
Total expenses and impairments | 50,006 | 31,964 | 134,725 | 75,906 | ' |
Interest income | 0 | 0 | 0 | 0 | ' |
Other income (expense): | ' | ' | ' | ' | ' |
Interest expense | -352 | -103 | -496 | -195 | ' |
Gain (Loss) on Sale of Properties | 0 | ' | 0 | ' | ' |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | ' |
Total other income (expense) | -352 | -103 | -496 | -195 | ' |
Income before taxes | 35,165 | 9,200 | 98,665 | 15,634 | ' |
Depreciation and amortization | 922 | 409 | 2,764 | 712 | ' |
Assets | 319,910 | 38,977 | 319,910 | 38,977 | ' |
Legacy Portfolio and Other | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Servicing fee income | -1,002 | 551 | -429 | 1,322 | ' |
Other fee income | 2,135 | 50 | 2,704 | -91 | ' |
Total fee income | 1,133 | 601 | 2,275 | 1,231 | ' |
Gain/(loss) on mortgage loans held for sale | -1,172 | -101 | -2,223 | 0 | ' |
Total revenues | -39 | 500 | 52 | 1,231 | ' |
Total expenses and impairments | 26,874 | 29,043 | 56,842 | 71,783 | ' |
Interest income | 5,688 | 3,318 | 12,156 | 11,806 | ' |
Other income (expense): | ' | ' | ' | ' | ' |
Interest expense | -50,585 | -49,580 | -156,402 | -126,484 | ' |
Gain (Loss) on Sale of Properties | 4,898 | ' | 4,898 | ' | ' |
Gain/(Loss) on interest rate swaps and caps | 145 | 306 | 652 | 991 | ' |
Total other income (expense) | -39,854 | -45,956 | -138,696 | -113,687 | ' |
Income before taxes | -66,767 | -74,499 | -195,486 | -184,239 | ' |
Depreciation and amortization | 4,705 | 1,013 | 7,992 | 2,510 | ' |
Assets | 257,200 | 2,705,859 | 257,200 | 2,705,859 | ' |
Eliminations | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Servicing fee income | -17,133 | -16,146 | -54,206 | -47,198 | ' |
Other fee income | 0 | 0 | 0 | 0 | ' |
Total fee income | -17,133 | -16,146 | -54,206 | -47,198 | ' |
Gain/(loss) on mortgage loans held for sale | 16,779 | 15,747 | 53,106 | 45,953 | ' |
Total revenues | -354 | -399 | -1,100 | -1,245 | ' |
Total expenses and impairments | 0 | 0 | 0 | 0 | ' |
Interest income | 354 | 399 | 1,100 | 1,245 | ' |
Other income (expense): | ' | ' | ' | ' | ' |
Interest expense | 0 | 0 | 0 | 0 | ' |
Gain (Loss) on Sale of Properties | 0 | ' | 0 | ' | ' |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | ' |
Total other income (expense) | 354 | 399 | 1,100 | 1,245 | ' |
Income before taxes | 0 | 0 | 0 | 0 | ' |
Depreciation and amortization | 0 | 0 | 0 | 0 | ' |
Assets | $0 | $0 | $0 | $0 | ' |
Guarantor_Financial_Statement_2
Guarantor Financial Statement Information - Narrative (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | subsidiary | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ' |
Unsecured Debt | $2,159,651 | $2,444,062 |
Guarantor Subsidiary, Ownership Percentage | 100.00% | ' |
Number of Subsidiaries as Guarantors of Unsecured Debt | 2 | ' |
Guarantor_Financial_Statement_3
Guarantor Financial Statement Information - Consolidating Balance Sheets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $269,735 | $441,902 | $275,251 | $152,649 |
Restricted cash | 294,044 | 592,747 | ' | ' |
Accounts receivable | 3,060,382 | 5,636,482 | ' | ' |
Mortgage loans held for sale | 1,697,041 | 2,603,380 | 3,868,460 | 1,480,537 |
Mortgage loans held for investment, net | 195,432 | 211,050 | ' | ' |
Reverse mortgage interests | 1,956,952 | 1,434,506 | ' | ' |
Servicing Asset | 2,910,640 | 2,503,162 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Property and equipment, net | 121,635 | 119,185 | ' | ' |
Derivative financial instruments | 88,333 | 123,878 | ' | ' |
Other assets | 282,850 | 360,397 | ' | ' |
Total assets | 10,877,044 | 14,026,689 | 17,068,072 | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Notes payable | 3,532,743 | 6,984,351 | ' | ' |
Unsecured senior notes | 2,159,651 | 2,444,062 | ' | ' |
Payables and accrued liabilities | 1,344,895 | 1,308,450 | ' | ' |
Payables to affiliates | 0 | 0 | ' | ' |
Derivative financial instruments | 9,621 | 8,526 | ' | ' |
Mortgage servicing liabilities | 78,954 | 82,521 | ' | ' |
Other nonrecourse debt | 2,552,856 | 2,208,881 | ' | ' |
Total liabilities | 9,678,720 | 13,036,791 | ' | ' |
Total equity | 1,198,324 | 989,898 | ' | ' |
Total liabilities and equity | 10,877,044 | 14,026,689 | ' | ' |
Parent Company | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ' | ' |
Accounts receivable | 0 | 0 | ' | ' |
Mortgage loans held for sale | 0 | 0 | ' | ' |
Mortgage loans held for investment, net | 0 | 0 | ' | ' |
Reverse mortgage interests | 0 | 0 | ' | ' |
Servicing Asset | 0 | 0 | ' | ' |
Investment in subsidiaries | 1,181,205 | 968,027 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Derivative financial instruments | 0 | 0 | ' | ' |
Other assets | 17,118 | 21,872 | ' | ' |
Total assets | 1,198,323 | 989,899 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Notes payable | 0 | 0 | ' | ' |
Unsecured senior notes | 0 | 0 | ' | ' |
Payables and accrued liabilities | 0 | 0 | ' | ' |
Payables to affiliates | 0 | 0 | ' | ' |
Derivative financial instruments | 0 | 0 | ' | ' |
Mortgage servicing liabilities | 0 | 0 | ' | ' |
Other nonrecourse debt | 0 | 0 | ' | ' |
Total liabilities | 0 | 0 | ' | ' |
Total equity | 1,198,323 | 989,899 | ' | ' |
Total liabilities and equity | 1,198,323 | 989,899 | ' | ' |
Issuer | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 256,513 | 422,268 | 262,408 | 152,248 |
Restricted cash | 195,522 | 312,120 | ' | ' |
Accounts receivable | 2,989,520 | 1,569,021 | ' | ' |
Mortgage loans held for sale | 1,655,677 | 2,603,380 | ' | ' |
Mortgage loans held for investment, net | 1,549 | 2,786 | ' | ' |
Reverse mortgage interests | 1,956,952 | 1,434,506 | ' | ' |
Servicing Asset | 2,910,640 | 2,503,162 | ' | ' |
Investment in subsidiaries | 305,193 | 181,545 | ' | ' |
Property and equipment, net | 108,980 | 115,765 | ' | ' |
Derivative financial instruments | 83,627 | 120,187 | ' | ' |
Other assets | 523,979 | 4,683,749 | ' | ' |
Total assets | 10,988,152 | 13,948,489 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Notes payable | 2,489,464 | 3,311,625 | ' | ' |
Unsecured senior notes | 2,159,651 | 2,444,062 | ' | ' |
Payables and accrued liabilities | 1,343,809 | 1,319,172 | ' | ' |
Payables to affiliates | 1,251,073 | 3,694,782 | ' | ' |
Derivative financial instruments | 9,621 | 8,526 | ' | ' |
Mortgage servicing liabilities | 78,954 | 82,521 | ' | ' |
Other nonrecourse debt | 2,474,375 | 2,119,774 | ' | ' |
Total liabilities | 9,806,947 | 12,980,462 | ' | ' |
Total equity | 1,181,205 | 968,027 | ' | ' |
Total liabilities and equity | 10,988,152 | 13,948,489 | ' | ' |
Guarantor (Subsidiaries) | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 691 | 3,907 | 775 | 401 |
Restricted cash | 0 | 3 | ' | ' |
Accounts receivable | 2,115 | 2,582 | ' | ' |
Mortgage loans held for sale | 0 | 0 | ' | ' |
Mortgage loans held for investment, net | 0 | 0 | ' | ' |
Reverse mortgage interests | 0 | 0 | ' | ' |
Servicing Asset | 0 | 0 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Property and equipment, net | 835 | 855 | ' | ' |
Derivative financial instruments | 0 | 0 | ' | ' |
Other assets | 268,420 | 323,346 | ' | ' |
Total assets | 272,061 | 330,693 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Notes payable | 0 | 0 | ' | ' |
Unsecured senior notes | 0 | 0 | ' | ' |
Payables and accrued liabilities | 0 | 5,950 | ' | ' |
Payables to affiliates | 116,349 | 116,349 | ' | ' |
Derivative financial instruments | 0 | 0 | ' | ' |
Mortgage servicing liabilities | 0 | 0 | ' | ' |
Other nonrecourse debt | 0 | 0 | ' | ' |
Total liabilities | 116,349 | 122,299 | ' | ' |
Total equity | 155,712 | 208,394 | ' | ' |
Total liabilities and equity | 272,061 | 330,693 | ' | ' |
Non-Guarantor (Subsidiaries) | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 12,531 | 15,727 | 12,068 | 0 |
Restricted cash | 98,522 | 280,624 | ' | ' |
Accounts receivable | 68,747 | 4,064,879 | ' | ' |
Mortgage loans held for sale | 41,364 | 0 | ' | ' |
Mortgage loans held for investment, net | 193,883 | 208,264 | ' | ' |
Reverse mortgage interests | 0 | 0 | ' | ' |
Servicing Asset | 0 | 0 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Property and equipment, net | 11,820 | 2,565 | ' | ' |
Derivative financial instruments | 4,706 | 3,691 | ' | ' |
Other assets | 1,036,860 | 3,373,048 | ' | ' |
Total assets | 1,468,433 | 7,948,798 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Notes payable | 1,043,279 | 3,672,726 | ' | ' |
Unsecured senior notes | 0 | 0 | ' | ' |
Payables and accrued liabilities | 32,619 | 14,791 | ' | ' |
Payables to affiliates | 164,572 | 4,199,023 | ' | ' |
Derivative financial instruments | 0 | 0 | ' | ' |
Mortgage servicing liabilities | 0 | 0 | ' | ' |
Other nonrecourse debt | 78,481 | 89,107 | ' | ' |
Total liabilities | 1,318,951 | 7,975,647 | ' | ' |
Total equity | 149,482 | -26,849 | ' | ' |
Total liabilities and equity | 1,468,433 | 7,948,798 | ' | ' |
Eliminations | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ' | ' |
Accounts receivable | 0 | 0 | ' | ' |
Mortgage loans held for sale | 0 | 0 | ' | ' |
Mortgage loans held for investment, net | 0 | 0 | ' | ' |
Reverse mortgage interests | 0 | 0 | ' | ' |
Servicing Asset | 0 | 0 | ' | ' |
Investment in subsidiaries | -1,486,398 | -1,149,572 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Derivative financial instruments | 0 | 0 | ' | ' |
Other assets | -1,563,527 | -8,041,618 | ' | ' |
Total assets | -3,049,925 | -9,191,190 | ' | ' |
Liabilities and shareholders' equity | ' | ' | ' | ' |
Notes payable | 0 | 0 | ' | ' |
Unsecured senior notes | 0 | 0 | ' | ' |
Payables and accrued liabilities | -31,533 | -31,463 | ' | ' |
Payables to affiliates | -1,531,994 | -8,010,154 | ' | ' |
Derivative financial instruments | 0 | 0 | ' | ' |
Mortgage servicing liabilities | 0 | 0 | ' | ' |
Other nonrecourse debt | 0 | 0 | ' | ' |
Total liabilities | -1,563,527 | -8,041,617 | ' | ' |
Total equity | -1,486,398 | -1,149,573 | ' | ' |
Total liabilities and equity | ($3,049,925) | ($9,191,190) | ' | ' |
Guarantor_Financial_Statement_4
Guarantor Financial Statement Information - Consolidating Statements of Operations and Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Revenues: | ' | ' | ' | ' | ' |
Servicing fee income | $235,408 | $341,679 | $733,671 | $802,584 | ' |
Other fee income | 126,101 | 84,203 | 346,366 | 186,877 | ' |
Total fee income | 361,509 | 425,882 | 1,080,037 | 989,461 | ' |
Gain on mortgage loans held for sale | 142,815 | 205,956 | 443,667 | 677,104 | ' |
Total revenues | 504,324 | 631,838 | 1,523,704 | 1,666,565 | ' |
Expenses and impairments: | ' | ' | ' | ' | ' |
Salaries, wages and benefits | 160,757 | 193,258 | 471,404 | 499,875 | ' |
General and administrative | 157,068 | 187,517 | 494,453 | 472,241 | ' |
Loss on foreclosed real estate and other | 2,731 | 9,498 | 5,826 | 13,363 | ' |
Occupancy | 6,668 | 5,581 | 23,385 | 18,797 | ' |
Total expenses and impairments | 327,224 | 395,854 | 995,068 | 1,004,276 | ' |
Other income (expense): | ' | ' | ' | ' | ' |
Interest income | 43,314 | 63,903 | 130,198 | 145,948 | ' |
Interest expense | -116,673 | -168,215 | -412,695 | -378,500 | ' |
Gain (Loss) on Sale of Properties | 4,898 | 0 | 4,898 | 0 | ' |
Gain/(Loss) on interest rate swaps and caps | 940 | 400 | 2,808 | 2,457 | ' |
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | 0 | 0 | ' |
Total other income (expense) | -67,521 | -103,912 | -274,791 | -230,095 | ' |
Income before taxes | 109,579 | 132,072 | 253,845 | 432,194 | ' |
Income tax expense/(benefit) | -1,700 | 50,187 | 52,242 | 164,233 | ' |
Net income | 111,279 | 81,885 | 201,603 | 267,961 | ' |
Less: Net gain (loss) attributable to noncontrolling interests | 54 | 0 | -113 | 0 | ' |
Net income attributable to Nationstar | 111,225 | 81,885 | 201,716 | 267,961 | 217,054 |
Parent Company | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Servicing fee income | 0 | 0 | 0 | 0 | ' |
Other fee income | 0 | 0 | 0 | 0 | ' |
Total fee income | 0 | 0 | 0 | 0 | ' |
Gain on mortgage loans held for sale | 0 | 0 | 0 | 0 | ' |
Total revenues | 0 | 0 | 0 | 0 | ' |
Expenses and impairments: | ' | ' | ' | ' | ' |
Salaries, wages and benefits | 0 | 0 | 0 | 0 | ' |
General and administrative | 0 | 0 | 0 | 0 | ' |
Loss on foreclosed real estate and other | 0 | 0 | 0 | 0 | ' |
Occupancy | 0 | 0 | 0 | 0 | ' |
Total expenses and impairments | 0 | 0 | 0 | 0 | ' |
Other income (expense): | ' | ' | ' | ' | ' |
Interest income | 0 | 0 | 0 | 0 | ' |
Interest expense | 0 | 0 | 0 | 0 | ' |
Gain (Loss) on Sale of Properties | 0 | ' | 0 | ' | ' |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | ' |
Income (Loss) from Subsidiaries, Net of Tax | 111,225 | 81,885 | 201,716 | 267,961 | ' |
Total other income (expense) | 111,225 | 81,885 | 201,716 | 267,961 | ' |
Income before taxes | 111,225 | 81,885 | 201,716 | 267,961 | ' |
Income tax expense/(benefit) | 0 | 0 | 0 | 0 | ' |
Net income | 111,225 | ' | 201,716 | ' | ' |
Less: Net gain (loss) attributable to noncontrolling interests | 0 | ' | 0 | ' | ' |
Net income attributable to Nationstar | 111,225 | 81,885 | 201,716 | 267,961 | ' |
Issuer | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Servicing fee income | 252,537 | 357,832 | 787,860 | 849,789 | ' |
Other fee income | 58,284 | 23,404 | 90,309 | 37,800 | ' |
Total fee income | 310,821 | 381,236 | 878,169 | 887,589 | ' |
Gain on mortgage loans held for sale | 121,912 | 190,202 | 386,461 | 631,144 | ' |
Total revenues | 432,733 | 571,438 | 1,264,630 | 1,518,733 | ' |
Expenses and impairments: | ' | ' | ' | ' | ' |
Salaries, wages and benefits | 135,686 | 181,366 | 418,190 | 470,020 | ' |
General and administrative | 130,356 | 167,409 | 407,220 | 425,268 | ' |
Loss on foreclosed real estate and other | 1,230 | 5,221 | -160 | 9,288 | ' |
Occupancy | 5,606 | 5,237 | 20,609 | 18,038 | ' |
Total expenses and impairments | 272,878 | 359,233 | 845,859 | 922,614 | ' |
Other income (expense): | ' | ' | ' | ' | ' |
Interest income | 38,403 | 60,150 | 116,258 | 133,834 | ' |
Interest expense | -106,771 | -132,701 | -367,784 | -299,225 | ' |
Gain (Loss) on Sale of Properties | 4,898 | ' | 4,898 | ' | ' |
Gain/(Loss) on interest rate swaps and caps | 145 | 306 | 652 | 726 | ' |
Income (Loss) from Subsidiaries, Net of Tax | 13,049 | -7,888 | 81,050 | 740 | ' |
Total other income (expense) | -50,276 | -80,133 | -164,926 | -163,925 | ' |
Income before taxes | 109,579 | 132,072 | 253,845 | 432,194 | ' |
Income tax expense/(benefit) | -1,700 | 50,187 | 52,242 | 164,233 | ' |
Net income | 111,279 | ' | 201,603 | ' | ' |
Less: Net gain (loss) attributable to noncontrolling interests | 54 | ' | -113 | ' | ' |
Net income attributable to Nationstar | 111,225 | 81,885 | 201,716 | 267,961 | ' |
Guarantor (Subsidiaries) | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Servicing fee income | 4 | 0 | 17 | 0 | ' |
Other fee income | -12,973 | 58,780 | 45,569 | 146,791 | ' |
Total fee income | -12,969 | 58,780 | 45,586 | 146,791 | ' |
Gain on mortgage loans held for sale | 0 | 0 | 0 | 0 | ' |
Total revenues | -12,969 | 58,780 | 45,586 | 146,791 | ' |
Expenses and impairments: | ' | ' | ' | ' | ' |
Salaries, wages and benefits | 750 | 11,799 | 4,257 | 29,762 | ' |
General and administrative | -3,002 | 19,566 | 1,461 | 46,378 | ' |
Loss on foreclosed real estate and other | 0 | 0 | 0 | 0 | ' |
Occupancy | 44 | 344 | 277 | 759 | ' |
Total expenses and impairments | -2,208 | 31,709 | 5,995 | 76,899 | ' |
Other income (expense): | ' | ' | ' | ' | ' |
Interest income | 0 | 0 | 0 | 0 | ' |
Interest expense | 0 | 0 | 0 | 0 | ' |
Gain (Loss) on Sale of Properties | 0 | ' | 0 | ' | ' |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | ' |
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | 0 | 0 | ' |
Total other income (expense) | 0 | 0 | 0 | 0 | ' |
Income before taxes | -10,761 | 27,071 | 39,591 | 69,892 | ' |
Income tax expense/(benefit) | 0 | 0 | 0 | 0 | ' |
Net income | -10,761 | ' | 39,591 | ' | ' |
Less: Net gain (loss) attributable to noncontrolling interests | 0 | ' | 0 | ' | ' |
Net income attributable to Nationstar | -10,761 | 27,071 | 39,591 | 69,892 | ' |
Non-Guarantor (Subsidiaries) | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Servicing fee income | 0 | 0 | 0 | 0 | ' |
Other fee income | 80,790 | 2,019 | 210,488 | 2,286 | ' |
Total fee income | 80,790 | 2,019 | 210,488 | 2,286 | ' |
Gain on mortgage loans held for sale | 4,124 | 0 | 4,100 | 0 | ' |
Total revenues | 84,914 | 2,019 | 214,588 | 2,286 | ' |
Expenses and impairments: | ' | ' | ' | ' | ' |
Salaries, wages and benefits | 24,321 | 93 | 48,957 | 93 | ' |
General and administrative | 29,714 | 542 | 85,772 | 595 | ' |
Loss on foreclosed real estate and other | 1,501 | 4,277 | 5,986 | 4,075 | ' |
Occupancy | 1,018 | 0 | 2,499 | 0 | ' |
Total expenses and impairments | 56,554 | 4,912 | 143,214 | 4,763 | ' |
Other income (expense): | ' | ' | ' | ' | ' |
Interest income | 4,557 | 3,354 | 12,840 | 10,869 | ' |
Interest expense | -9,902 | -35,514 | -44,911 | -79,275 | ' |
Gain (Loss) on Sale of Properties | 0 | ' | 0 | ' | ' |
Gain/(Loss) on interest rate swaps and caps | 795 | 94 | 2,156 | 1,731 | ' |
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | 0 | 0 | ' |
Total other income (expense) | -4,550 | -32,066 | -29,915 | -66,675 | ' |
Income before taxes | 23,810 | -34,959 | 41,459 | -69,152 | ' |
Income tax expense/(benefit) | 0 | 0 | 0 | 0 | ' |
Net income | 23,810 | ' | 41,459 | ' | ' |
Less: Net gain (loss) attributable to noncontrolling interests | 0 | ' | 0 | ' | ' |
Net income attributable to Nationstar | 23,810 | -34,959 | 41,459 | -69,152 | ' |
Eliminations | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Servicing fee income | -17,133 | -16,153 | -54,206 | -47,205 | ' |
Other fee income | 0 | 0 | 0 | 0 | ' |
Total fee income | -17,133 | -16,153 | -54,206 | -47,205 | ' |
Gain on mortgage loans held for sale | 16,779 | 15,754 | 53,106 | 45,960 | ' |
Total revenues | -354 | -399 | -1,100 | -1,245 | ' |
Expenses and impairments: | ' | ' | ' | ' | ' |
Salaries, wages and benefits | 0 | 0 | 0 | 0 | ' |
General and administrative | 0 | 0 | 0 | 0 | ' |
Loss on foreclosed real estate and other | 0 | 0 | 0 | 0 | ' |
Occupancy | 0 | 0 | 0 | 0 | ' |
Total expenses and impairments | 0 | 0 | 0 | 0 | ' |
Other income (expense): | ' | ' | ' | ' | ' |
Interest income | 354 | 399 | 1,100 | 1,245 | ' |
Interest expense | 0 | 0 | 0 | 0 | ' |
Gain (Loss) on Sale of Properties | 0 | ' | 0 | ' | ' |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | ' |
Income (Loss) from Subsidiaries, Net of Tax | -124,274 | -73,997 | -282,766 | -268,701 | ' |
Total other income (expense) | -123,920 | -73,598 | -281,666 | -267,456 | ' |
Income before taxes | -124,274 | -73,997 | -282,766 | -268,701 | ' |
Income tax expense/(benefit) | 0 | 0 | 0 | 0 | ' |
Net income | -124,274 | ' | -282,766 | ' | ' |
Less: Net gain (loss) attributable to noncontrolling interests | 0 | ' | 0 | ' | ' |
Net income attributable to Nationstar | ($124,274) | ($73,997) | ($282,766) | ($268,701) | ' |
Guarantor_Financial_Statement_5
Guarantor Financial Statement Information - Consolidating Statements of Cash Flow (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Operating activities | ' | ' | ' |
Net income attributable to Nationstar | $201,716,000 | $267,961,000 | $217,054,000 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ' | ' | ' |
Intercompany Gains (Losses) | 0 | 0 | ' |
Share-based Compensation | 11,344,000 | 8,140,000 | ' |
Net tax effect of stock grants | -2,197,000 | -2,660,000 | ' |
Loss on foreclosed real estate and other | 5,826,000 | 13,363,000 | ' |
Gain on mortgage loans held for sale | -443,667,000 | -677,104,000 | ' |
Payments for Origination and Purchases of Loans Held-for-sale | -16,548,058,000 | -17,166,460,000 | ' |
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees | 17,757,055,000 | 15,376,486,000 | ' |
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps | -2,808,000 | -2,457,000 | ' |
Cash settlement on derivative financial instruments | 1,352,000 | -4,544,000 | ' |
Depreciation and amortization | 29,963,000 | 16,686,000 | ' |
Amortization of Debt Discount (Premium) | 16,660,000 | 39,261,000 | ' |
Fair value changes in excess spread financing | 61,080,000 | 33,229,000 | ' |
Change in fair value on mortgage servicing rights | 128,227,000 | -38,117,000 | ' |
Fair value change in mortgage servicing rights financing liability | -38,260,000 | 0 | ' |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | 601,549,000 | -96,120,000 | ' |
Reverse funded advances due to securitization | -572,544,000 | -460,534,000 | ' |
Other assets | 62,286,000 | -331,855,000 | ' |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | -25,460,000 | 503,061,000 | ' |
Net cash attributable to operating activities | 1,244,064,000 | -2,521,664,000 | ' |
Investing activities | ' | ' | ' |
Payments for (Proceeds from) Productive Assets | -41,567,000 | -47,883,000 | ' |
Proceeds from Sale of Buildings | 10,412,000 | 0 | ' |
Cash Proceeds from assumption of reverse mortgage servicing obligations, net | 0 | -15,059,000 | ' |
Payments to Acquire Mortgage Servicing Rights (MSR) | -317,247,000 | -2,331,658,000 | ' |
Proceeds on sale of servicer advances | 512,527,000 | 0 | ' |
Repurchases of REO from Ginnie Mae | -9,134,000 | 0 | ' |
Acquisitions, net | -18,000,000 | -78,200,000 | ' |
Proceeds from Sale of Real Estate Owned | 70,480,000 | 60,389,000 | ' |
Net cash attributable to investing activities | 207,471,000 | -2,412,411,000 | ' |
Financing activities | ' | ' | ' |
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 282,289,000 | -348,499,000 | ' |
Issuance of Senior Unsecured Notes | 0 | 1,365,244,000 | ' |
Repayments of Unsecured Debt | -285,000,000 | 0 | ' |
Payments of Financing Costs | -11,461,000 | -46,784,000 | ' |
Proceeds from (Repayments of) Secured Debt | -1,942,141,000 | 3,042,623,000 | ' |
Issuance of excess spread financing | 150,951,000 | 707,640,000 | ' |
Repayment of excess spread financing | -135,897,000 | -77,505,000 | ' |
Proceeds from Mortgage Backed Securities Notes Payable | 279,636,000 | 422,787,000 | ' |
Proceeds from mortgage servicing rights financing | 52,835,000 | 0 | ' |
Repayment of Nonrecourse Debt Legacy Assets | -12,356,000 | -9,925,000 | ' |
Due to financial services companies | ' | 0 | ' |
Contributions from joint venture member to noncontrolling interests | 0 | 4,990,000 | 4,990,000 |
Net tax benefit for stock grants issued | 2,197,000 | 2,660,000 | 4,579,000 |
Redemption of shares for stock vesting | -4,755,000 | -6,554,000 | -6,944,000 |
Net cash attributable to financing activities | -1,623,702,000 | 5,056,677,000 | ' |
Net increase (decrease) in cash and cash equivalents | -172,167,000 | 122,602,000 | ' |
Cash and cash equivalents at beginning of period | 441,902,000 | 152,649,000 | 152,649,000 |
Cash and cash equivalents at end of period | 269,735,000 | 275,251,000 | 441,902,000 |
Parent Company | ' | ' | ' |
Operating activities | ' | ' | ' |
Net income attributable to Nationstar | 201,716,000 | 267,961,000 | ' |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ' | ' | ' |
Intercompany Gains (Losses) | -201,716,000 | -267,961,000 | ' |
Share-based Compensation | 0 | 0 | ' |
Net tax effect of stock grants | 0 | 0 | ' |
Loss on foreclosed real estate and other | 0 | 0 | ' |
Gain on mortgage loans held for sale | 0 | 0 | ' |
Payments for Origination and Purchases of Loans Held-for-sale | 0 | 0 | ' |
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees | 0 | 0 | ' |
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps | 0 | 0 | ' |
Cash settlement on derivative financial instruments | 0 | 0 | ' |
Depreciation and amortization | 0 | 0 | ' |
Amortization of Debt Discount (Premium) | 0 | 0 | ' |
Fair value changes in excess spread financing | 0 | 0 | ' |
Change in fair value on mortgage servicing rights | 0 | 0 | ' |
Fair value change in mortgage servicing rights financing liability | 0 | 0 | ' |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | 0 | 0 | ' |
Reverse funded advances due to securitization | 0 | 0 | ' |
Other assets | 4,755,000 | 3,894,000 | ' |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | 0 | 0 | ' |
Net cash attributable to operating activities | 4,755,000 | 3,894,000 | ' |
Investing activities | ' | ' | ' |
Payments for (Proceeds from) Productive Assets | 0 | 0 | ' |
Proceeds from Sale of Buildings | 0 | ' | ' |
Cash Proceeds from assumption of reverse mortgage servicing obligations, net | 0 | 0 | ' |
Payments to Acquire Mortgage Servicing Rights (MSR) | 0 | 0 | ' |
Proceeds on sale of servicer advances | 0 | 0 | ' |
Repurchases of REO from Ginnie Mae | 0 | 0 | ' |
Acquisitions, net | 0 | 0 | ' |
Proceeds from Sale of Real Estate Owned | 0 | 0 | ' |
Net cash attributable to investing activities | 0 | 0 | ' |
Financing activities | ' | ' | ' |
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | 0 | ' |
Issuance of Senior Unsecured Notes | 0 | 0 | ' |
Repayments of Unsecured Debt | 0 | ' | ' |
Payments of Financing Costs | 0 | 0 | ' |
Proceeds from (Repayments of) Secured Debt | 0 | 0 | ' |
Issuance of excess spread financing | 0 | 0 | ' |
Repayment of excess spread financing | 0 | 0 | ' |
Proceeds from Mortgage Backed Securities Notes Payable | 0 | 0 | ' |
Proceeds from mortgage servicing rights financing | 0 | 0 | ' |
Repayment of Nonrecourse Debt Legacy Assets | 0 | 0 | ' |
Due to financial services companies | ' | 0 | ' |
Contributions from joint venture member to noncontrolling interests | 0 | 0 | ' |
Net tax benefit for stock grants issued | 0 | 2,660,000 | ' |
Redemption of shares for stock vesting | -4,755,000 | -6,554,000 | ' |
Net cash attributable to financing activities | -4,755,000 | -3,894,000 | ' |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | ' |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | ' |
Issuer | ' | ' | ' |
Operating activities | ' | ' | ' |
Net income attributable to Nationstar | 201,716,000 | 267,961,000 | ' |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ' | ' | ' |
Intercompany Gains (Losses) | -81,050,000 | -740,000 | ' |
Share-based Compensation | 11,344,000 | 8,140,000 | ' |
Net tax effect of stock grants | -2,197,000 | -2,660,000 | ' |
Loss on foreclosed real estate and other | -160,000 | 9,288,000 | ' |
Gain on mortgage loans held for sale | -386,461,000 | -631,144,000 | ' |
Payments for Origination and Purchases of Loans Held-for-sale | -16,548,058,000 | -17,166,460,000 | ' |
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees | 17,729,442,000 | 15,314,755,000 | ' |
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps | -652,000 | -726,000 | ' |
Cash settlement on derivative financial instruments | 0 | 0 | ' |
Depreciation and amortization | 27,148,000 | 15,987,000 | ' |
Amortization of Debt Discount (Premium) | 18,578,000 | 40,937,000 | ' |
Fair value changes in excess spread financing | 61,080,000 | 33,229,000 | ' |
Change in fair value on mortgage servicing rights | 128,227,000 | -38,117,000 | ' |
Fair value change in mortgage servicing rights financing liability | -38,260,000 | 0 | ' |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | -3,395,051,000 | -68,473,000 | ' |
Reverse funded advances due to securitization | -572,544,000 | -460,534,000 | ' |
Other assets | 1,659,322,000 | 3,076,784,000 | ' |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | -38,452,000 | 507,301,000 | ' |
Net cash attributable to operating activities | -1,226,028,000 | 905,528,000 | ' |
Investing activities | ' | ' | ' |
Payments for (Proceeds from) Productive Assets | -29,517,000 | -45,767,000 | ' |
Proceeds from Sale of Buildings | 10,412,000 | ' | ' |
Cash Proceeds from assumption of reverse mortgage servicing obligations, net | 0 | -15,059,000 | ' |
Payments to Acquire Mortgage Servicing Rights (MSR) | -317,247,000 | -2,331,658,000 | ' |
Proceeds on sale of servicer advances | 512,527,000 | 0 | ' |
Repurchases of REO from Ginnie Mae | -9,134,000 | ' | ' |
Acquisitions, net | -18,000,000 | -78,200,000 | ' |
Proceeds from Sale of Real Estate Owned | 70,480,000 | 60,389,000 | ' |
Net cash attributable to investing activities | 219,521,000 | -2,410,295,000 | ' |
Financing activities | ' | ' | ' |
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 100,185,000 | -274,085,000 | ' |
Issuance of Senior Unsecured Notes | 0 | 1,365,244,000 | ' |
Repayments of Unsecured Debt | -285,000,000 | ' | ' |
Payments of Financing Costs | -11,461,000 | -46,784,000 | ' |
Proceeds from (Repayments of) Secured Debt | 687,306,000 | -487,360,000 | ' |
Issuance of excess spread financing | 150,951,000 | 707,640,000 | ' |
Repayment of excess spread financing | -135,897,000 | -77,505,000 | ' |
Proceeds from Mortgage Backed Securities Notes Payable | 279,636,000 | 422,787,000 | ' |
Proceeds from mortgage servicing rights financing | 52,835,000 | 0 | ' |
Repayment of Nonrecourse Debt Legacy Assets | 0 | 0 | ' |
Due to financial services companies | ' | ' | ' |
Contributions from joint venture member to noncontrolling interests | 0 | 4,990,000 | ' |
Net tax benefit for stock grants issued | 2,197,000 | 0 | ' |
Redemption of shares for stock vesting | 0 | 0 | ' |
Net cash attributable to financing activities | 840,752,000 | 1,614,927,000 | ' |
Net increase (decrease) in cash and cash equivalents | -165,755,000 | 110,160,000 | ' |
Cash and cash equivalents at beginning of period | 422,268,000 | 152,248,000 | 152,248,000 |
Cash and cash equivalents at end of period | 256,513,000 | 262,408,000 | ' |
Guarantor (Subsidiaries) | ' | ' | ' |
Operating activities | ' | ' | ' |
Net income attributable to Nationstar | 39,591,000 | 69,892,000 | ' |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ' | ' | ' |
Intercompany Gains (Losses) | 0 | 0 | ' |
Share-based Compensation | 0 | 0 | ' |
Net tax effect of stock grants | 0 | 0 | ' |
Loss on foreclosed real estate and other | 0 | 0 | ' |
Gain on mortgage loans held for sale | 0 | 0 | ' |
Payments for Origination and Purchases of Loans Held-for-sale | 0 | 0 | ' |
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees | 0 | 0 | ' |
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps | 0 | 0 | ' |
Cash settlement on derivative financial instruments | 0 | 0 | ' |
Depreciation and amortization | 89,000 | 651,000 | ' |
Amortization of Debt Discount (Premium) | 0 | 0 | ' |
Fair value changes in excess spread financing | 0 | 0 | ' |
Change in fair value on mortgage servicing rights | 0 | 0 | ' |
Fair value change in mortgage servicing rights financing liability | 0 | 0 | ' |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | 467,000 | -27,589,000 | ' |
Reverse funded advances due to securitization | 0 | 0 | ' |
Other assets | -37,347,000 | -50,016,000 | ' |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | -5,950,000 | 10,954,000 | ' |
Net cash attributable to operating activities | -3,150,000 | 3,892,000 | ' |
Investing activities | ' | ' | ' |
Payments for (Proceeds from) Productive Assets | -69,000 | -1,064,000 | ' |
Proceeds from Sale of Buildings | 0 | ' | ' |
Cash Proceeds from assumption of reverse mortgage servicing obligations, net | 0 | 0 | ' |
Payments to Acquire Mortgage Servicing Rights (MSR) | 0 | 0 | ' |
Proceeds on sale of servicer advances | 0 | 0 | ' |
Repurchases of REO from Ginnie Mae | 0 | 0 | ' |
Acquisitions, net | 0 | 0 | ' |
Proceeds from Sale of Real Estate Owned | 0 | 0 | ' |
Net cash attributable to investing activities | -69,000 | -1,064,000 | ' |
Financing activities | ' | ' | ' |
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 3,000 | -2,454,000 | ' |
Issuance of Senior Unsecured Notes | 0 | 0 | ' |
Repayments of Unsecured Debt | 0 | ' | ' |
Payments of Financing Costs | 0 | 0 | ' |
Proceeds from (Repayments of) Secured Debt | 0 | 0 | ' |
Issuance of excess spread financing | 0 | 0 | ' |
Repayment of excess spread financing | 0 | 0 | ' |
Proceeds from Mortgage Backed Securities Notes Payable | 0 | 0 | ' |
Proceeds from mortgage servicing rights financing | 0 | 0 | ' |
Repayment of Nonrecourse Debt Legacy Assets | 0 | 0 | ' |
Due to financial services companies | ' | 0 | ' |
Contributions from joint venture member to noncontrolling interests | 0 | 0 | ' |
Net tax benefit for stock grants issued | 0 | 0 | ' |
Redemption of shares for stock vesting | 0 | 0 | ' |
Net cash attributable to financing activities | 3,000 | -2,454,000 | ' |
Net increase (decrease) in cash and cash equivalents | -3,216,000 | 374,000 | ' |
Cash and cash equivalents at beginning of period | 3,907,000 | 401,000 | 401,000 |
Cash and cash equivalents at end of period | 691,000 | 775,000 | ' |
Non-Guarantor (Subsidiaries) | ' | ' | ' |
Operating activities | ' | ' | ' |
Net income attributable to Nationstar | 41,459,000 | -69,152,000 | ' |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ' | ' | ' |
Intercompany Gains (Losses) | 0 | 0 | ' |
Share-based Compensation | 0 | 0 | ' |
Net tax effect of stock grants | 0 | 0 | ' |
Loss on foreclosed real estate and other | 5,986,000 | 4,075,000 | ' |
Gain on mortgage loans held for sale | -4,100,000 | 0 | ' |
Payments for Origination and Purchases of Loans Held-for-sale | 0 | 0 | ' |
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees | -25,493,000 | 15,771,000 | ' |
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps | -2,156,000 | -1,731,000 | ' |
Cash settlement on derivative financial instruments | 1,352,000 | -4,544,000 | ' |
Depreciation and amortization | 2,726,000 | 48,000 | ' |
Amortization of Debt Discount (Premium) | -1,918,000 | -1,676,000 | ' |
Fair value changes in excess spread financing | 0 | 0 | ' |
Change in fair value on mortgage servicing rights | 0 | 0 | ' |
Fair value change in mortgage servicing rights financing liability | 0 | 0 | ' |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | 3,996,133,000 | -58,000 | ' |
Reverse funded advances due to securitization | 0 | 0 | ' |
Other assets | -1,564,513,000 | -3,379,816,000 | ' |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | 19,011,000 | 2,105,000 | ' |
Net cash attributable to operating activities | 2,468,487,000 | -3,434,978,000 | ' |
Investing activities | ' | ' | ' |
Payments for (Proceeds from) Productive Assets | -11,981,000 | -1,052,000 | ' |
Proceeds from Sale of Buildings | 0 | ' | ' |
Cash Proceeds from assumption of reverse mortgage servicing obligations, net | 0 | 0 | ' |
Payments to Acquire Mortgage Servicing Rights (MSR) | 0 | 0 | ' |
Proceeds on sale of servicer advances | 0 | 0 | ' |
Repurchases of REO from Ginnie Mae | 0 | 0 | ' |
Acquisitions, net | 0 | 0 | ' |
Proceeds from Sale of Real Estate Owned | 0 | 0 | ' |
Net cash attributable to investing activities | -11,981,000 | -1,052,000 | ' |
Financing activities | ' | ' | ' |
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 182,101,000 | -71,960,000 | ' |
Issuance of Senior Unsecured Notes | 0 | 0 | ' |
Repayments of Unsecured Debt | 0 | ' | ' |
Payments of Financing Costs | 0 | 0 | ' |
Proceeds from (Repayments of) Secured Debt | -2,629,447,000 | 3,529,983,000 | ' |
Issuance of excess spread financing | 0 | 0 | ' |
Repayment of excess spread financing | 0 | 0 | ' |
Proceeds from Mortgage Backed Securities Notes Payable | 0 | 0 | ' |
Proceeds from mortgage servicing rights financing | 0 | 0 | ' |
Repayment of Nonrecourse Debt Legacy Assets | -12,356,000 | -9,925,000 | ' |
Due to financial services companies | ' | 0 | ' |
Contributions from joint venture member to noncontrolling interests | 0 | 0 | ' |
Net tax benefit for stock grants issued | 0 | 0 | ' |
Redemption of shares for stock vesting | 0 | 0 | ' |
Net cash attributable to financing activities | -2,459,702,000 | 3,448,098,000 | ' |
Net increase (decrease) in cash and cash equivalents | -3,196,000 | 12,068,000 | ' |
Cash and cash equivalents at beginning of period | 15,727,000 | 0 | 0 |
Cash and cash equivalents at end of period | 12,531,000 | 12,068,000 | ' |
Eliminations | ' | ' | ' |
Operating activities | ' | ' | ' |
Net income attributable to Nationstar | -282,766,000 | -268,701,000 | ' |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ' | ' | ' |
Intercompany Gains (Losses) | 282,766,000 | 268,701,000 | ' |
Share-based Compensation | 0 | 0 | ' |
Net tax effect of stock grants | 0 | 0 | ' |
Loss on foreclosed real estate and other | 0 | 0 | ' |
Gain on mortgage loans held for sale | -53,106,000 | -45,960,000 | ' |
Payments for Origination and Purchases of Loans Held-for-sale | 0 | 0 | ' |
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees | 53,106,000 | 45,960,000 | ' |
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps | 0 | 0 | ' |
Cash settlement on derivative financial instruments | 0 | 0 | ' |
Depreciation and amortization | 0 | 0 | ' |
Amortization of Debt Discount (Premium) | 0 | 0 | ' |
Fair value changes in excess spread financing | 0 | 0 | ' |
Change in fair value on mortgage servicing rights | 0 | 0 | ' |
Fair value change in mortgage servicing rights financing liability | 0 | 0 | ' |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable | 0 | 0 | ' |
Reverse funded advances due to securitization | 0 | 0 | ' |
Other assets | 69,000 | 17,299,000 | ' |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | -69,000 | -17,299,000 | ' |
Net cash attributable to operating activities | 0 | 0 | ' |
Investing activities | ' | ' | ' |
Payments for (Proceeds from) Productive Assets | 0 | 0 | ' |
Proceeds from Sale of Buildings | 0 | ' | ' |
Cash Proceeds from assumption of reverse mortgage servicing obligations, net | 0 | 0 | ' |
Payments to Acquire Mortgage Servicing Rights (MSR) | 0 | 0 | ' |
Proceeds on sale of servicer advances | 0 | 0 | ' |
Repurchases of REO from Ginnie Mae | 0 | 0 | ' |
Acquisitions, net | 0 | 0 | ' |
Proceeds from Sale of Real Estate Owned | 0 | 0 | ' |
Net cash attributable to investing activities | 0 | 0 | ' |
Financing activities | ' | ' | ' |
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | 0 | ' |
Issuance of Senior Unsecured Notes | 0 | 0 | ' |
Repayments of Unsecured Debt | 0 | ' | ' |
Payments of Financing Costs | 0 | 0 | ' |
Proceeds from (Repayments of) Secured Debt | 0 | 0 | ' |
Issuance of excess spread financing | 0 | 0 | ' |
Repayment of excess spread financing | 0 | 0 | ' |
Proceeds from Mortgage Backed Securities Notes Payable | 0 | 0 | ' |
Proceeds from mortgage servicing rights financing | 0 | 0 | ' |
Repayment of Nonrecourse Debt Legacy Assets | 0 | 0 | ' |
Due to financial services companies | ' | 0 | ' |
Contributions from joint venture member to noncontrolling interests | 0 | 0 | ' |
Net tax benefit for stock grants issued | 0 | 0 | ' |
Redemption of shares for stock vesting | 0 | 0 | ' |
Net cash attributable to financing activities | 0 | 0 | ' |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | ' |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | $0 | $0 | ' |
Affiliates_of_Fortress_Investm1
Affiliates of Fortress Investment Group - Narrative (Details) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | Apr. 30, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Jan. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jun. 23, 2014 | Mar. 07, 2014 | Jan. 30, 2014 | Feb. 28, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Aug. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Feb. 28, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |
Springleaf [Member] | Springleaf [Member] | Springleaf [Member] | Springleaf [Member] | Springleaf [Member] | Springleaf [Member] | Newcastle | Newcastle | Newcastle | Newcastle | Newcastle | New Residential [Member] | Reverse Mortgages | Reverse Mortgages | Reverse Mortgages | Maximum [Member] | Maximum [Member] | |||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | ' | ' | ' | ' | ' | $2,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,800,000,000 | ' | $800,000,000 | ' | $800,000,000 | ' | $900,000,000 | ' | $28,400,000,000 | $28,900,000,000 | $100,000,000 | ' | ' |
Payments to Acquire Mortgage Servicing Rights (MSR) | ' | ' | ' | ' | ' | 317,247,000 | 2,331,658,000 | ' | ' | ' | ' | ' | ' | ' | 38,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | 2,100,000 | 4,700,000 | 6,100,000 | ' | ' | 1,000,000 | 1,100,000 | 3,100,000 | 3,500,000 | ' | 1,600,000 | ' | ' | ' | ' | ' |
Due from Affiliates | ' | ' | ' | ' | ' | 5,479,000 | ' | 8,861,000 | ' | ' | ' | ' | 500,000 | ' | 500,000 | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Servicing fee, percentage of unpaid principal balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of Servicing Fees in Excess of Contractually Specified Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Excess spread financing - fair value | ' | ' | ' | ' | ' | 1,062,544,000 | ' | 986,410,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price paid reverse mortgage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of aquired reverse loans, sold to co-investor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Servicer Advances sold to unaffiliated third party | ' | 617,500,000 | ' | 756,200,000 | ' | 2,200,000,000 | ' | 2,700,000,000 | 303,800,000 | 299,100,000 | 253,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,300,000,000 | ' |
UPB related to sold servicing asset | ' | ' | ' | ' | ' | ' | ' | 44,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130,100,000,000 |
Nonrecourse Variable Funding Notes issued by Special Purpose Subsidiaries of NSM | ' | ' | ' | ' | ' | ' | ' | 2,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Sales Agreement with New Residential | ' | ' | ' | ' | ' | ' | ' | 307,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | 33,452,000 | ' | ' | ' | ' | 44,449,000 | ' | 29,874,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sold MSR Basic Fee Component | 14,000,000,000 | 12,000,000,000 | 10,500,000,000 | 9,400,000,000 | 8,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds on sale of servicer advances | $51,000,000 | $75,200,000 | $41,400,000 | $91,400,000 | $253,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Events_Narrative_De
Subsequent Events - Narrative (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 31, 2014 |
Unsecured Senior Notes 10.875% Due April 2015 | Servicing Segment | Servicing Segment | Originations Segment | Originations Segment | Originations Segment | |
Unsecured Senior Notes | Agency Advance Financing Facility (2011) [Member] | Agency Advance Financing Facility (2011) [Member] | Warehouse Facility $700 Million [Member] | Warehouse Facility $200 Million [Member] | Warehouse Facility $200 Million [Member] | |
Notes Payable to Banks | Notes Payable to Banks | Notes Payable to Banks | Notes Payable to Banks | Notes Payable to Banks | ||
Subsequent Event [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | $1,100,000,000 | $1,100,000,000 | $500,000,000 | $200,000,000 | $200,000,000 |
Interest rate | 10.88% | ' | ' | ' | ' | ' |