Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Nationstar Mortgage Holdings Inc. | ||
Entity Central Index Key | 1520566 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 91,600,670 | ||
Entity Public Float | $784,449,062 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $299,002 | $441,902 |
Restricted cash | 285,530 | 592,747 |
Mortgage servicing rights, $2,898,209 and $2,488,283 at fair value, respectively | 2,961,321 | 2,503,162 |
Accounts receivable | 2,546,362 | 5,002,202 |
Reverse mortgage interests | 2,383,647 | 1,528,000 |
Mortgages loans held for sale | 1,277,931 | 2,603,380 |
Mortgage loans held for investment, net of allowance for loan losses of $3,549 and $2,144 respectively | 191,569 | 211,050 |
Property and equipment, net of accumulated depreciation of $100,515 and $74,723 respectively | 129,611 | 119,185 |
Derivative financial instruments | 91,051 | 123,878 |
Other assets | 946,651 | 901,183 |
Total assets | 11,112,675 | 14,026,689 |
Liabilities and equity | ||
Unsecured senior notes | 2,159,231 | 2,444,062 |
Secured Debt | 1,572,622 | 2,433,927 |
Payables and accrued liabilities | 1,322,078 | 1,308,450 |
Mortgage Serving Rights Liability, carried at fair value | 1,080,465 | 1,016,284 |
Mortgage servicing liabilities | 65,382 | 82,521 |
Derivative financial instruments | 18,525 | 8,526 |
Other Non-Recourse Debt | 1,768,311 | 1,192,597 |
Total liabilities | 9,888,397 | 13,036,791 |
Commitments and contingencies | 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 | 587,446 | 566,642 |
Retained earnings | 643,059 | 422,341 |
Treasury shares; 531 shares and 168 shares at cost, respectively | -12,433 | -6,944 |
Accumulated other comprehensive income | 0 | 1,963 |
Total Nationstar stockholders' equity | 1,218,982 | 984,908 |
Noncontrolling interest | 5,296 | 4,990 |
Total equity | 1,224,278 | 989,898 |
Total liabilities and equity | 11,112,675 | 14,026,689 |
Servicing Segment | ||
Assets | ||
Total assets | 8,774,135 | 9,969,390 |
Liabilities and equity | ||
Secured Debt | 1,901,783 | 4,550,424 |
Originations Segment | ||
Assets | ||
Total assets | 1,400,880 | 2,777,928 |
Liabilities and equity | ||
Secured Debt | $1,572,622 | $2,433,927 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 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 | $1,277,931 | $2,585,340 |
Allowance for loan losses of mortgage loans held for investment, subject to nonrecourse debt | 3,531 | 2,144 |
Reverse Mortgage Interest Subject to Non-Recourse Debt | 279,564 | 0 |
Mortgage servicing rights at fair value | -2,949,739 | -2,488,283 |
Accumulated depreciation of property and equipment | $69,721 | $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 | 91,601,000 | 90,330,000 |
Common stock, shares outstanding | 90,999,000 | 90,162,000 |
Treasury Stock, Shares | 602,000 | 168,000 |
Unaudited_Consolidated_Stateme
Unaudited Consolidated Statements of Operations and Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Fees and Commissions, Mortgage Banking and Servicing | $1,375,862 | $1,384,222 | $497,151 |
Gain (Loss) on Sales of Loans, Net | 597,206 | 702,763 | 487,164 |
Total revenues | 1,973,068 | 2,086,985 | 984,315 |
Expenses and impairments: | |||
Salaries, wages and benefits | -642,936 | -679,637 | -358,455 |
General and Administrative Expense | 682,502 | 691,796 | 206,804 |
Occupancy | 32,253 | 30,845 | 16,786 |
Total expenses and impairments | 1,357,691 | 1,402,278 | 582,045 |
Other income (expense): | |||
Interest income | 179,592 | 197,220 | 71,586 |
Interest expense | -516,387 | -538,805 | -197,308 |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 4,898 | 0 | 0 |
Gain (Loss) on Contract Termination | 0 | 0 | 15,600 |
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | 0 | -14,571 |
Gain (Loss) on Derivative Instruments, Net, Pretax | 2,404 | 3,132 | -994 |
Total other income (expense) | -329,493 | -338,453 | -125,687 |
Income before taxes | 285,884 | 346,254 | 276,583 |
Income tax expense | 64,860 | 129,200 | 71,296 |
Net income | 221,024 | 217,054 | 205,287 |
Less: Net gain (loss) attributable to noncontrolling interests | 306 | 0 | 0 |
Net income attributable to Nationstar | 220,718 | 217,054 | 205,287 |
Other comprehensive income, net of tax: | |||
Change in value of designated cash flow hedge | -1,963 | 1,963 | 0 |
Comprehensive income | 218,755 | 219,017 | 205,287 |
Earnings per share: | |||
Basic earnings per share (in dollars per share) | $2.47 | $2.43 | $2.41 |
Diluted earnings per share (in dollars per share) | $2.45 | $2.40 | $2.40 |
Weighted average shares: | |||
Basic (shares) | 89,521 | 89,415 | 85,328 |
Dilutive effect of stock awards (shares) | 499 | 853 | 196 |
Diluted (shares) | 90,020 | 90,268 | 85,524 |
Dividends declared per share (in dollars per share) | $0 | $0 | $0 |
Deferred Tax Liability, Cash Flow Hedge | ($1,183) | $1,183 | $0 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Unit Distribution [Member] | 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, 2011 | $281,309 | $281,309 | |||||||
Deferred Tax Liability, Cash Flow Hedge | 0 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock Issued During Period, Shares, Other | 12,764 | 12,764 | |||||||
LLC conversion of equity to common shares, shares | 70,000 | ||||||||
LLC conversion of equity to common shares | 700 | -294,073 | 293,373 | ||||||
Stock Issued During Period, Shares, New Issues | 19,167 | ||||||||
Common stock issuance | 246,700 | 192 | 246,508 | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 1,293 | ||||||||
Share-based compensation | 13 | -13 | |||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 13,342 | 13,342 | |||||||
Net tax benefit for stock grants issued | 2,846 | 2,846 | |||||||
Tax related share-based settlement of units by members | -4,566 | -4,566 | |||||||
Net income attributable to Nationstar | 205,287 | 205,287 | |||||||
Change in value of designated cash flow hedge | 0 | ||||||||
Contributions from joint venture member to noncontrolling interests | 0 | ||||||||
Less: Net gain (loss) attributable to noncontrolling interests | 0 | ||||||||
Total equity | 757,682 | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 205,287 | ||||||||
Balance at Dec. 31, 2012 | 757,682 | 905 | 0 | 556,056 | 205,287 | 0 | -4,566 | 0 | 0 |
Balance, shares at Dec. 31, 2012 | 90,460 | ||||||||
Deferred Tax Liability, Cash Flow Hedge | 1,183 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 82 | ||||||||
Share-based compensation | 3 | -3 | |||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 10,574 | 10,574 | |||||||
Net tax benefit for stock grants issued | 4,579 | 4,579 | |||||||
Tax related share-based settlement of units by members | 0 | ||||||||
Net income attributable to Nationstar | 217,054 | ||||||||
Change in value of designated cash flow hedge | 1,963 | 1,963 | |||||||
Redemption of shares for stock vesting | -6,944 | -6,944 | |||||||
Treasury Stock, Shares, Retired | -212 | ||||||||
Treasury Stock, Retired, Cost Method, Amount | 0 | -2 | -4,564 | 4,566 | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 4,990 | ||||||||
Contributions from joint venture member to noncontrolling interests | 4,990 | ||||||||
Less: Net gain (loss) attributable to noncontrolling interests | 0 | ||||||||
Total equity | 989,898 | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 217,054 | ||||||||
Balance at Dec. 31, 2013 | 984,908 | 906 | 0 | 566,642 | 422,341 | -6,944 | 0 | 1,963 | 4,990 |
Balance, shares at Dec. 31, 2013 | 90,330 | ||||||||
Deferred Tax Liability, Cash Flow Hedge | -1,183 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 1,271 | ||||||||
Share-based compensation | 4 | -4 | |||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 18,565 | 18,565 | |||||||
Net tax benefit for stock grants issued | 2,243 | 2,243 | |||||||
Tax related share-based settlement of units by members | 0 | ||||||||
Net income attributable to Nationstar | 220,718 | ||||||||
Change in value of designated cash flow hedge | -1,963 | -1,963 | |||||||
Redemption of shares for stock vesting | -5,489 | -5,489 | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 5,296 | ||||||||
Contributions from joint venture member to noncontrolling interests | 0 | ||||||||
Less: Net gain (loss) attributable to noncontrolling interests | 306 | 306 | |||||||
Total equity | 1,224,278 | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 221,024 | ||||||||
Balance at Dec. 31, 2014 | $1,218,982 | $910 | $0 | $587,446 | $643,059 | ($12,433) | $0 | $0 | $5,296 |
Balance, shares at Dec. 31, 2014 | 91,601 |
Unaudited_Consolidated_Stateme1
Unaudited Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net income attributable to Nationstar | $220,718 | $217,054 | $205,287 |
Adjustments to reconcile net income to net cash (used in) / provided by operating activities: | |||
Share-based compensation | 18,565 | 10,574 | 13,342 |
Net tax effect of stock grants | -2,243 | -4,579 | -2,846 |
Loss on foreclosed real estate and other | 10,288 | 13,316 | 5,217 |
Gain on mortgage loans held for sale | -597,206 | -702,763 | -487,164 |
Mortgage loans originated and purchased, net of fees | -20,785,640 | -25,466,754 | -7,904,052 |
Proceeds on sale of and payments of mortgage loans held for sale | -22,290,252 | -25,018,375 | -7,197,722 |
Gain on derivatives including ineffectiveness | -2,404 | -6,080 | 994 |
Cash settlement on derivative financial instruments | 1,352 | -4,544 | 0 |
Depreciation and amortization | 40,166 | 26,615 | 9,620 |
Amortization of premiums/discounts | 13,330 | 52,531 | 9,635 |
Fair value changes in excess spread financing | 57,554 | 73,333 | 10,683 |
Fair value changes and amortization/accretion of mortgage servicing rights | -233,537 | 59,101 | -63,122 |
Fair value change in mortgage servicing rights financing liability | -33,279 | 0 | 0 |
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | 0 | 14,571 |
Changes in assets and liabilities: | |||
Accounts receivable, including servicing advances, net | 322,519 | -465,775 | -558,208 |
Reverse mortgage interests | -952,191 | -734,220 | -636,533 |
Other assets | 243,300 | -449,243 | -198,807 |
Payables and accrued liabilities | -19,983 | 647,320 | 299,301 |
Net cash attributable to operating activities | 1,058,635 | -1,833,941 | -1,958,116 |
Investing activities | |||
Property and equipment additions, net of disposals | -56,405 | -48,859 | -25,356 |
Proceeds from Sale of Buildings | 10,412 | 0 | 0 |
Purchases of reverse mortgage servicing rights and interests | 0 | 19,189 | 37,911 |
Purchase of forward mortgage servicing rights, net of liabilities incurred | -471,249 | -1,527,645 | -2,070,375 |
Loan repurchases from Ginnie Mae | -44,079 | -19,863 | -24,329 |
Proceeds from sales of REO | 65,653 | 52,767 | 679 |
Proceeds on sale of servicer advances | 768,449 | 277,455 | 0 |
Acquisitions, net | -18,000 | -88,200 | 0 |
Net cash attributable to investing activities | 254,781 | -1,373,534 | -2,157,292 |
Financing activities | |||
Transfers (to) / from restricted cash, net | -290,803 | 232,695 | 321,691 |
Issuance of unsecured senior notes, net | 0 | 1,365,244 | 770,699 |
Repayments of Unsecured Debt | -285,000 | 0 | 0 |
Debt financing costs | -13,067 | -53,529 | -23,213 |
Increase (decrease) in notes payable | -1,875,158 | 1,240,750 | 2,728,407 |
Proceeds from Other Debt | 61,680 | 0 | 0 |
Repayments of Other Debt | -9,750 | 0 | 0 |
Issuance of excess spread financing | 171,317 | 753,002 | 272,617 |
Repayment of excess spread financing | -184,246 | -130,355 | -39,865 |
Increase in participating interest financing in reverse mortgage interests | -352,945 | -535,216 | -582,897 |
Proceeds from mortgage servicing rights financing | 52,835 | 29,874 | 0 |
Repayment of nonrecourse debt b Legacy assets | -15,429 | -13,404 | -13,785 |
Contributions from joint venture member to noncontrolling interests | 0 | 4,990 | 0 |
Net tax benefit for stock grants issued | 2,243 | 4,579 | 2,846 |
Redemption of shares for stock vesting | -5,489 | -6,944 | 0 |
Proceeds from Issuance of Common Stock | 0 | 0 | 246,700 |
Net cash attributable to financing activities | -1,456,316 | 3,496,728 | 4,205,612 |
Net increase (decrease) in cash and cash equivalents | -142,900 | 289,253 | 90,204 |
Cash and cash equivalents at beginning of period | 441,902 | 152,649 | 62,445 |
Cash and cash equivalents at end of period | 299,002 | 441,902 | 152,649 |
Supplemental disclosures of non-cash activities | |||
Interest Paid | 515,152 | 441,333 | 154,913 |
Income Taxes Paid, Net | 1,781 | 114,454 | 42,645 |
Supplemental disclosures of non-cash activities | 3,768 | 15,302 | 4,295 |
Transfer of reverse mortgage interest to REO at fair value | 96,544 | 24,282 | 0 |
Mortgage servicing rights resulting from sale or securitization of mortgage loans | 238,292 | 248,381 | 58,607 |
Adjustments Related to Tax Withholding for Share-based Compensation | 0 | 0 | 4,566 |
Change in value of designated cash flow hedge | -1,963 | 1,963 | 0 |
Liabilities incurred from purchase of forward mortgage servicing rights | $43,588 | $6,448 | $48,146 |
Nature_of_Business_and_Basis_o
Nature of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | Description of Business and Basis of Presentation |
Description of Business | |
Nationstar Mortgage Holdings Inc. (Nationstar or the Company), a Delaware corporation, earns fees through the delivery of servicing, origination and transaction based services principally to single-family residences throughout the United States. | |
Basis of Presentation | |
The Company follows generally accepted accounting principles in the United States of America (GAAP). The significant accounting policies described below, together with the other notes that follow, are an integral part of the Consolidated Financial Statements. | |
Basis of Consolidation | |
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. Nationstar applies the equity method of accounting to investments when the entity is not a VIE and Nationstar is able to exercise significant influence, but not control, over the policies and procedures of the entity but owns less than 50% of the voting interests. 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. Nationstar evaluated subsequent events through the date these consolidated financial statements were issued. | |
Use of Estimates | |
The preparation of the financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates due to factors such as adverse changes in the economy, increases in interest rates, changes in prepayment assumptions, declines in home prices or discrete events adversely affecting specific borrowers, and such differences could be material. | |
Reclassifications | |
Certain prior-period amounts have been reclassified to conform to the current-period presentation. | |
The balance sheet reclassification adjustments principally involved transferring amounts included in accounts receivable to advances, reverse mortgage interests and other assets. In addition, the Company has disaggregated notes payable into advance facilities and warehouse facilities. Finally, amounts previously classified as other nonrecourse debt have been separately presented in MSR related liabilities - nonrecourse. The reclassifications performed did not impact the previously disclosed total assets and total liability amounts. | |
The statement of operations and comprehensive income reclassification adjustments principally involved transferring amounts previously included in service fee income and other income into service related revenue. In addition, the Company reclassified gain on mortgage loans held for sale into net gain on mortgage loans held for sale. Finally, amounts previously classified as loss on foreclosed real estate and other were combined into general and administrative expenses. | |
Recent Accounting Guidance Not Yet Adopted | |
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 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. 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. 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. 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. ASU 2014-14 is effective for all interim and annual periods beginning after December 14, 2014. The adoption of ASU 2014-14 is not expected to have a material impact on our financial condition, liquidity or results of operation. | |
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. 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. | |
Accounting Standards Update 2015-01: Income Statement - Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (ASU 2015-01) eliminates the concept of extraordinary items from GAAP. ASU 2015-01 is effective for fiscal years beginning after December 15, 2015. The adoption of ASU 2015-01 is not expected to have a material impact on our financial condition, liquidity or results of operations. |
Recent_Accounting_Developments
Recent Accounting Developments | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Significant Accounting Policies |
The following summarizes the significant accounting policies of Nationstar applied in the preparation of the accompanying consolidated financial statements. | |
Cash and Cash Equivalents | |
Cash and cash equivalents include unrestricted cash on hand and other highly liquid investments having an original maturity of less than three months. | |
Restricted Cash | |
Restricted cash primarily consists of certain custodial accounts related to Nationstar’s portfolio securitizations or to collections on certain mortgage loans and mortgage loan advances that have been pledged to various advance financing facilities under master repurchase agreements. Restricted cash also includes certain fees collected on mortgage loan payments that required remittance to government-sponsored enterprises (GSEs) to settle outstanding guarantee fee requirements. | |
Advances | |
The Company will advance funds when the borrower fails to meet contractual payments (e.g., principal, interest, property taxes, insurance). The Company will also advance funds to maintain, report and market foreclosed real estate properties on behalf of investors. Advances are recovered from borrowers for reinstated and performing loans and from investors for foreclosed loans. Per the servicing agreements, the Company is only obligated to advance funds to extent that such advances are recoverable. | |
Nationstar may also acquire servicer advances in conjunction with the acquisition of Mortgage Servicing Rights (MSRs). Acquired servicer advances are recorded at their relative fair value amounts on the acquisition date, and any recorded discounts are accreted into interest income on a cost recovery method as the related servicer advances are recovered either through repayment from the borrower, liquidation of the underlying mortgage loans, or through a modification and recovery of the outstanding servicer advance balance from the securitization trust. | |
When Nationstar has determined that, based on all available information, it is probable that a loss has been incurred, and that all contractual amounts due will not be recovered, an impairment is recognized through the recording of a valuation allowance. Any changes to the valuation allowance are recorded through general and administrative expenses. | |
Mortgage Loans Held for Sale | |
Nationstar has elected to measure newly originated prime residential mortgage loans held for sale at fair value. Nationstar estimates fair value by evaluating a variety of market indicators, including recent trades and outstanding commitments, calculated on an aggregate basis. In connection with Nationstar’s election to measure newly originated prime residential mortgage loans held for sale at fair value, Nationstar is not permitted to defer the loan originations fees, net of direct loan originations costs associated with these loans. In addition, the Company may at times repurchase loans that were previously transferred to Ginnie Mae if that loan meets certain criteria, including being delinquent greater than 90 days. Nationstar has also elected to measure these repurchased loans at fair value. | |
At times, Nationstar may acquire loans that it services through the exercise of clean-up calls. These loans are carried at the lower of cost or fair value. | |
Mortgage Loans Held for Investment, Net | |
Mortgage loans held for investment primarily consist of nonconforming or subprime mortgage loans securitized which serve as collateral for the issued debt. These loans were transferred in 2009 from mortgage loans held for sale at fair value on the transfer date, as determined by the present value of expected future cash flows, with no valuation allowance recorded. The difference between the undiscounted cash flows expected and the investment in the loan is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at transfer are not recognized as a yield adjustment or as a loss accrual or a valuation allowance. Increases in expected cash flows subsequent to the transfer are recognized prospectively through adjustment of the yield on the loans over the remaining life. Decreases in expected cash flows subsequent to transfer are recognized as a valuation allowance. | |
An allowance for loan losses is established by recording a provision for loan losses in the consolidated statements of operations and comprehensive income when management believes a loss has occurred on a loan held for investment. When management determines that a loan held for investment is partially or fully uncollectible, the estimated 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. | |
Reverse Mortgage Interests | |
Reverse mortgages (known as Home Equity Conversion Mortgages or HECMs) provide seniors (62 and older) with a loan secured by their home. Nationstar records acquired reverse mortgage interests assets and obligations assumed at relative fair value on the acquisition date. Any premium or discount associated with the recording of the funded advances is accreted into interest income as the underlying HECMs are liquidated. | |
Nationstar is obligated in its capacity as servicer to fund future borrower obligations, which include fees paid to taxing authorities for borrowers' unpaid taxes and insurance, mortgage insurance premiums and payments made to borrowers for line of credit draws on reverse mortgages. In addition, Nationstar capitalizes the servicing fees and interest income it earns for servicing the reverse mortgage interests. These payments funded by Nationstar are recorded as reverse mortgage interests on the Company's consolidated balance sheets. Nationstar includes the cash outflow from funding these payments as operating activities as a component of reverse mortgage interests. The securitization cash inflow is reported as a financing activity as a component of the change in interest financing and reverse mortgage interests in the consolidated statements of cash flows. | |
Nationstar receives a monthly servicing fee, which is recorded as either interest income or servicing fee income on the consolidated statements of operations and comprehensive income based upon if the related advance was either funded by or acquired by Nationstar. Interest income is accrued monthly based upon the borrower interest rate applied to the HECM outstanding principal balance of reverse mortgage interests. Interest expense on the participating interest financing is accrued monthly based upon the underlying HMBS rates and is recorded to interest expense in the consolidated statements of operations and comprehensive income. | |
Issuers of HECMs are responsible for repurchasing any loans out of the HMBS pool when the outstanding principal balance of the related HECM loan is equal to or greater than 98% of the lesser of the appraised value of the underlying property at origination or $625 thousand. | |
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 statements of operations and comprehensive income. | |
Mortgage Servicing Rights (MSRs) | |
Nationstar recognizes the rights to service mortgage loans for others, or MSRs, as assets whether purchased or as a result of the sale of loans we originate. We initially record all of our MSRs at fair value. MSRs related to reverse mortgages are subsequently measured at lower of cost or market (LOCOM). | |
For MSRs recorded at fair value, the fair value of the MSRs is based upon the present value of the expected future net cash flows related to servicing these loans. Nationstar receives a base servicing fee ranging from 0.21% 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 revenues and other assumptions (including costs to service) that management believes are consistent with the assumptions other similar market participants use in valuing the MSRs. The nature of the forward loans underlying the MSRs affects the assumptions used in the cash flow models. Nationstar obtains third-party valuations quarterly to assess the reasonableness of the fair value calculated by the cash flow model. | |
Additionally, Nationstar owns servicing rights for reverse mortgage loans. For this class of servicing rights, Nationstar applies the amortization method (or LOCOM) 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 service related revenue. 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. | |
MSR Related Liabilities - nonrecourse | |
Excess Spread Financing | |
In conjunction with Nationstar's acquisition of certain mortgage servicing rights on various pools of residential mortgage loans (the Portfolios), Nationstar has entered into sale and assignment agreements that are accounted for as financings, with the total proceeds being recorded as a component of MSR related liabilities - nonrecourse on the consolidated balance sheets. Nationstar determines the effective interest rate on these liabilities and allocates total payments between interest expense and a portion as a reduction to the total outstanding liability. Under these agreements, Nationstar sold to a third party the right to receive a portion of the excess cash flow generated from the Portfolios after receipt of a fixed basic servicing fee per loan. | |
Nationstar has elected to measure the outstanding financings related to the excess spread financing agreements at fair value with all changes in fair value recorded as a charge or credit to service related revenue in the consolidated statements of operations and comprehensive income. The fair value on excess spread financing is based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. | |
Mortgage Servicing Rights Financing | |
From time to time, Nationstar will enter into certain transactions with third parties to sell certain mortgage servicer rights and servicer advances under specified terms. Nationstar evaluates these transactions to determine if they are sales or structured financing arrangements. When these transfers qualify for sale treatment, Nationstar derecognizes the transferred assets on its consolidated balance sheets. Nationstar has determined that for a portion of these transactions, the related mortgage servicing rights sales are contingent on the receipt of consents from various third parties. Until these required consents are obtained, legal ownership of the mortgage servicing rights continues to reside with the Company. Nationstar continues to account for the mortgage servicing rights on its consolidated balance sheets. In addition, Nationstar records a mortgage servicing rights financing liability associated with this financing transaction. Counterparty payments related to this financing arrangement are recorded as an adjustment to the Company's service related revenues. | |
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 service related revenue in the consolidated statements of operations and comprehensive income. The fair value on mortgage servicing right financings is based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. | |
Participating Interest Financing | |
Nationstar periodically securitizes certain of these funded advances through issuance of Home Equity Conversion Mortgage Backed Securities (HMBS) to third-party security holders which are guaranteed by GNMA. These transfers of funded advances into HMBS are accounted for as secured borrowings with the HMBS presented as participating interest financing included within other liabilities on the Company's consolidated balance sheets. Issue premiums and/or discounts are deferred as a component of the participating interest financing and amortized to interest expense over the life of the HMBS on an effective interest method. | |
Property and Equipment, Net | |
Property and equipment, net is comprised of land, building, furniture, fixtures, leasehold improvements, computer software, and computer hardware. These assets are stated at cost less accumulated depreciation. Repairs and maintenance are expensed as incurred. Depreciation, which includes depreciation and amortization on capital leases, is recorded using the straight-line method over the estimated useful lives of the related assets. Cost and accumulated depreciation applicable to assets retired or sold are eliminated from the accounts, and any resulting gains or losses are recognized at such time through a charge or credit to general and administrative expenses. Costs to internally develop computer software are capitalized during the development stage and include external direct costs of materials and servicer as well as employee costs related to time spent on the project. | |
Nationstar evaluates all leases at inception to determine if they meet the criteria for a capital lease. A capital lease is recorded as an acquisition of property or equipment at an amount equal to the present value of minimum lease payments at the date of inception. Assets acquired under a capital lease are depreciated on a straight-line basis in accordance with the Company's normal depreciation policy over the lease term and are included in property and equipment, net, on the balance sheet. A corresponding liability is recorded representing an obligation to make lease payments which is included in payables and accrued liabilities in the consolidated balance sheet. Lease payments are allocated between interest expense and reduction of obligation. | |
Leases that do not meet capital lease criteria are accounted for as operating leases. Rental expense on operating leases is recognized on a straight-line basis over the lease term. Leasehold improvements are amortized over the shorter of the lease terms of the respective leases or the estimated useful lives of the related assets. | |
Variable Interest Entities | |
In the normal course of business, Nationstar enters into various types of on- and off-balance sheet transactions with special purpose entities (SPEs), which primarily consists of securitization trusts established for a limited purpose. Generally, these SPEs are formed for the purpose of securitization transactions in which Nationstar transfers assets to an SPE, which then issues to investors various forms of interests in those assets. In these securitization transactions, Nationstar typically receives cash and/or other interests in the SPE as proceeds for the transferred assets. Nationstar will typically retain the right to service the transferred receivables and to repurchase the transferred receivables from the SPE if the outstanding balance of the receivables falls to a level where the cost exceeds the benefits of servicing the transferred receivables. | |
The Company evaluates its interests in each SPE for classification as a Variable Interest Entity (VIE). When an SPE meets the definition of a VIE and the Company determines that Nationstar is the primary beneficiary, the Company includes the SPE in its consolidated financial statements. | |
Nationstar has determined that the SPEs created in connection with the Nationstar Mortgage Advance Receivables Trust, the Nationstar Servicer Advance Receivables Trust 2013-BA and the Nationstar agency advance financing facility described in Note 10 - Indebtedness are VIEs of which Nationstar was the primary beneficiary. The Company also determined that it is the primary beneficiary for the mortgage loans securitized in 2009 subject to non-recourse debt. See Note 6, Mortgage Loans Held for Sale and Investment. Consequently, the Company has consolidated the assets and liabilities associated with these VIEs in its consolidated financial statements. | |
In December 2014, Nationstar Mortgage LLC completed the securitization of approximately $343.6 million in Nationstar HECM Loan Trust 2014-1 Mortgage Backed Securities. As part of the securitization, Nationstar retained a portion of the notes which represent subordinated beneficial interests for Nationstar. The transaction was structured as a secured borrowing. The HECM Trust met the definition of a VIE, in which Nationstar was determined to own variable interests and was considered the primary beneficiary of the variable interests. Accordingly, the reverse mortgage loans was included in the consolidated financial statements of Nationstar as a reverse secured borrowing, the related financing was included in other nonrecourse debt and the related retained beneficial interests were eliminated in consolidation. | |
Securitizations and Asset Backed Financing Arrangements. | |
Nationstar or its subsidiaries have been a transferor in connection with a number of securitizations and asset-backed financing arrangements. The Company has continuing involvement with the financial assets of the securitizations and the asset-backed financing arrangements. The Company has aggregated these transactions into two groups: (1) securitizations of residential mortgage loans accounted for as sales and (2) financings of advances on loans serviced for others accounted for as secured borrowings. | |
Securitizations Treated as Sales. | |
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 are held in the unconsolidated securitization trusts have no value and no potential for significant cash flows in the future. In addition, at December 31, 2014, the Company had no other significant assets in its 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. The Company’s exposure to loss as a result of its continuing involvement with the trusts is limited to the carrying values, if any, of our investments in the residual and subordinate securities of the trusts, the MSRs that are related to the trusts and the advances to the trusts. Nationstar considers the probability of loss arising from our advances to be remote because of their position ahead of most of the other liabilities of the trusts. See Note 4, Advances, and Note 3, Mortgage Servicing Rights and Related Liabilities, for additional information regarding advances and MSRs. | |
Financings | |
Advances on loans serviced for others result from our transfers of residential loan servicing advances to SPEs in exchange for cash. Nationstar consolidates these SPEs because the transfers do not qualify for sales accounting treatment or 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 its advance facility agreements. Nationstar classifies the transferred advances on its consolidated balance sheets as accounts receivable and the related liabilities as notes payable. The SPEs use collections of the pledged advances to repay principal and interest and to pay the expenses of the entity. Holders of the debt issued by these entities can look only to the assets of the entities themselves for satisfaction of the debt and have no recourse against Nationstar. | |
Nationstar has issued pools of HMBS to third-party investors collateralized by advances on the related HECM. These transactions are accounted for as secured financings with the reverse mortgage interests and the related financing included in the consolidated financial statements of Nationstar as consolidated VIEs. | |
Occasionally, Nationstar will transfer reverse mortgage interests into private securitization trusts (Reverse Trusts). Nationstar evaluates these Reverse Trusts to determine whether they meet the definition of a Variable Interest Entity, and when the Reverse Trust meets the definition of a VIE and the Company determines that it is the primary beneficiary, Nationstar will include the assets and liabilities of the Reverse Trust in its consolidated financial statements, with the securitized reverse mortgage interests being retained on its balance sheet and recognizing the issued securities in other nonrecourse debt. The reverse mortgage interests are carried at amortized cost, less an allowance for probable loss. | |
Derivative Financial Instruments | |
Nationstar recognizes all derivatives on its consolidated balance sheets at fair value. On the date the Company enters into a derivative contract, it designates and documents each derivative contract as either a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge) or a derivative instrument not designated as a hedging instrument. To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. Nationstar assesses and documents quarterly the extent to which a derivative has been and is expected to continue to be effective in offsetting the changes in the fair value or the cash flows of the hedged item. To assess effectiveness, Nationstar uses statistical methods, such as regression analysis, as well as nonstatistical methods including dollar-offset analysis. | |
For a fair value hedge, Nationstar records changes in the fair value of the derivative and, to the extent that it is effective, changes in the fair value of the hedged asset or liability attributable to the hedged risk, in the same financial statement category as the hedged item on the face of the statement of operations and comprehensive income (loss). For a cash flow hedge, to the extent that it is effective, Nationstar records changes in the estimated fair value of the derivative in other comprehensive income. Nationstar subsequently reclassifies these changes in estimated fair value to net income in the same period, or periods, that the hedged transaction affects earnings and in the same financial statement category as the hedged item. For a derivative instrument not designated as a hedging instrument, the Company reports changes in the fair values in current period other income (expense), net, on our consolidated statements of operations and comprehensive income. | |
Goodwill and Intangible Assets | |
Goodwill is initially recorded as the excess of purchase price over fair value of net assets acquired in a business combination and subsequently evaluated for impairment. Nationstar tests goodwill for impairment at least annually, as of October 1st and more often if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its net carrying value. Nationstar has the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. Factors that the Company considers in the qualitative assessment include general economic conditions, conditions of the industry and market in which it operates, regulatory developments, cost factors and the Company's overall financial performance. Nationstar may also choose a two-step quantitative test to evaluate goodwill for impairment. Under the two-step impairment test, Nationstar evaluates the recoverability of goodwill by comparing the estimated fair value of each reporting unit with its estimated net carrying value (including goodwill). Nationstar derives the fair value of reporting units based on valuation techniques and assumptions that Nationstar believes market participants would use (discounted cash flow valuation methodology). | |
Nationstar amortizes finite lived intangible assets acquired in a business combination over their estimated useful life. On an annual basis, the Company evaluates whether there has been a change in the estimated useful life or if certain impairment indicators exist. | |
Receivables from Affiliates | |
Nationstar engages in periodic transactions with Nationstar Regular Holdings, Ltd., a subsidiary of FIF HE Holdings LLC. These transactions typically involve the monthly payment of principal and interest advances that are required to be remitted to the securitization trusts as required under various Pooling and Servicing Agreements. These amounts are later repaid to Nationstar when principal and interest advances are recovered from the respective borrowers, upon liquidation of the underlying collateral, or modification of the loan. | |
Real Estate Owned (REO), Net | |
Nationstar holds REO as a result of foreclosures on delinquent mortgage loans. REO is recorded at estimated fair value less costs to sell at the date of foreclosure within Other Assets. Any subsequent declines in fair value are credited to a valuation allowance and charged to general and administrative expenses as incurred. | |
Loans Subject to Repurchase Rights from Ginnie Mae | |
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. | |
Interest Income | |
Interest income is recognized using the interest method. Revenue accruals for individual loans are suspended and accrued amounts reversed when the mortgage loan becomes contractually delinquent for 90 days or more. Delinquency payment status is based on the most recently received payment from the borrower. The accrual is resumed when the individual mortgage loan becomes less than 90 days contractually delinquent. For individual loans that have been modified, a period of six timely payments is required before the loan is returned to an accrual basis. Interest income also includes (1) interest earned on custodial cash deposits associated with the mortgage loans serviced; (2) deferred originations income, net of deferred originations costs and other revenues derived from the origination of mortgage loans, which is deferred and recognized over the life of a mortgage loan held for investment or recognized when the related loan is sold to a third party purchaser; and (3) amounts recognized from accretion of discounts on acquired servicer advances as the related servicer advances are recovered. | |
Service Related Revenues | |
Service related revenues include contractually specified servicing fees, late charges, prepayment penalties and other ancillary revenues. Servicing encompasses, among other activities, the following processes: billing, collection of payments, movement of cash to the payment clearing bank accounts, investor reporting, customer service, recovery of delinquent payments, instituting foreclosure, and liquidation of the underlying collateral. | |
Nationstar recognizes servicing and ancillary revenues as they are earned, which is generally upon collection of the payments from the borrower. In addition, Nationstar also receives various fees in the course of providing servicing on its various portfolios. These fees include modification fees for modifications performed outside of government programs, modification fees for modifications pursuant to various government programs, and incentive fees for servicing performance on specific GSE portfolios. | |
Fees recorded on modifications of mortgage loans held for investment performed outside of government programs are deferred and recognized as an adjustment to the loans held for investment. These fees are accreted into interest income as an adjustment to the loan yield over the life of the loan. Fees recorded on modifications of mortgage loans serviced by Nationstar for others are recognized on collection and are recorded as a component of service related revenues. Fees recorded on modifications pursuant to various government programs are recognized when Nationstar has completed all necessary steps and the loans have performed for the minimum required time frame to establish eligibility for the fee. Revenue earned on modifications pursuant to various government programs is included as a component of service related revenues. Incentive fees for servicing performance on specific GSE portfolios are recognized as various incentive standards are achieved and are recorded as a component of service related revenues. | |
Net Gain on Mortgage Loans Held for Sale | |
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from Nationstar, (ii) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) Nationstar does not maintain effective control over the transferred assets through either (a) an agreement that entitles and obligates Nationstar to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the holder to return specific assets. | |
Loan securitizations structured as sales, as well as whole loan sales and the resulting gains on such sales, net of any accrual for recourse obligations, are reported in operating results during the period in which the securitization closes or the sale occurs. | |
Solutionstar Revenues | |
Nationstar recognizes revenue from the services provided when the revenue is realized or realizable and earned, which is generally when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. Generally, the contract terms for these services are relatively short in duration, and we recognize revenue as the services are performed either on a per unit or a fixed price basis. | |
Share-Based Compensation Expense | |
Share-based compensation is recognized as an expense in the consolidated statements of operations and comprehensive income, based on their fair values. The amount of compensation is measured at the fair value of the awards when granted and this cost is expensed over the required service period, which is normally the vesting period of the award, and is included as a component of salaries, wages and benefits in the consolidated statements of income and comprehensive income. | |
Advertising Costs | |
Advertising costs are expensed as incurred and are included as part of general and administrative expenses. Nationstar incurred advertising costs of $41.6 million, $53.6 million, and $5.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Income Taxes | |
Deferred taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. | |
The Company regularly reviews the carrying amount of its deferred tax assets to determine if the establishment of 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 deferred tax valuation allowance is established. Consideration is given to various positive and negative factors that could affect the realization of the deferred tax assets. | |
In evaluating this available evidence, management considers, among other things, historical financial performance, expectation of future earnings, the ability to carry back losses to recoup taxes previously paid, length of statutory carryforward periods, experience with operating loss and tax credit carryforwards which may expire unused, tax planning strategies and 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. | |
The Company is subject to the income tax laws of the U.S., its states and municipalities. These tax laws are complex and subject to different interpretations by the taxpayer and the relevant governmental taxing authorities. The Company has adopted accounting guidance related to uncertainty in income taxes. The guidance prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under the guidance, tax positions shall initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions shall initially and subsequently be measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. In establishing a provision for income tax expense, the Company must make judgments and interpretations about the application of these inherently complex tax laws within the framework of existing GAAP. The Company recognizes interest and penalties related to uncertain tax positions in general and administrative expenses. | |
Earnings Per Share | |
Basic net income per share is computed based on the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed based on the weighted-average number of common shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares represent outstanding restricted stock. |
Mortgage_Servicing_Rights_MSRs
Mortgage Servicing Rights (MSRs) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Transfers and Servicing [Abstract] | ||||||||||||||||
Mortgage Servicing Rights (MSRs) | Mortgage Servicing Rights and Related Liabilities | |||||||||||||||
MSRs and Related Liabilities | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
MSRs - Fair Value | $ | 2,949,739 | $ | 2,488,283 | ||||||||||||
MSRs - LOCOM | 11,582 | 14,879 | ||||||||||||||
Mortgage Servicing Rights | 2,961,321 | 2,503,162 | ||||||||||||||
Mortgage Servicing Liabilities | 65,382 | 82,521 | ||||||||||||||
Excess spread financing - fair value | 1,031,035 | 986,410 | ||||||||||||||
Mortgage servicing rights financing liability - fair value | 49,430 | 29,874 | ||||||||||||||
MSR Related Liabilities (nonrecourse) | $ | 1,080,465 | $ | 1,016,284 | ||||||||||||
Mortgage Servicing Rights | ||||||||||||||||
Certain of the forward loans underlying the MSRs are prime agency and government conforming residential mortgage loans and as such are more interest rate sensitive whereas the remaining MSRs are more credit sensitive. The nature of the forward loans underlying the MSRs affects the assumptions that management believes other major market participants use in valuing the MSRs. | ||||||||||||||||
The following table provides a breakdown of the total credit and interest sensitive UPBs for Nationstar's owned MSRs. | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
UPB | Fair Value | UPB | Fair Value | |||||||||||||
Credit Sensitive | $ | 241,769,601 | $ | 1,919,290 | $ | 266,757,777 | $ | 1,818,315 | ||||||||
Interest Sensitive | 91,843,044 | 1,030,449 | 56,056,362 | 669,968 | ||||||||||||
$ | 333,612,645 | $ | 2,949,739 | $ | 322,814,139 | $ | 2,488,283 | |||||||||
The activity of MSRs carried at fair value is as follows for the dates indicated: | ||||||||||||||||
For the year ended | ||||||||||||||||
31-Dec-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 | 238,292 | 248,381 | ||||||||||||||
Purchases of servicing assets | 470,543 | 1,545,584 | ||||||||||||||
Changes in fair value: | ||||||||||||||||
Due to changes in valuation inputs or assumptions used in the valuation model | 87,434 | 377,486 | ||||||||||||||
Other changes in fair value | (334,813 | ) | (319,028 | ) | ||||||||||||
Fair value at the end of the period | $ | 2,949,739 | $ | 2,488,283 | ||||||||||||
Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated: | ||||||||||||||||
Credit Sensitive | 31-Dec-14 | 31-Dec-13 | ||||||||||||||
Discount rate | 11.96 | % | 14.17 | % | ||||||||||||
Total prepayment speeds | 18.58 | % | 20.34 | % | ||||||||||||
Expected weighted-average life | 5.39 years | 4.63 years | ||||||||||||||
Interest Sensitive | 31-Dec-14 | 31-Dec-13 | ||||||||||||||
Discount rate | 9.09 | % | 10.5 | % | ||||||||||||
Total prepayment speeds | 11.27 | % | 8.97 | % | ||||||||||||
Expected weighted-average life | 6.49 years | 7.88 years | ||||||||||||||
The following table shows the hypothetical effect on the fair value of the MSRs using certain unfavorable variations of the expected levels of key assumptions used in valuing these assets at December 31, 2014 and 2013: | ||||||||||||||||
Discount Rate | Total Prepayment | |||||||||||||||
Speeds | ||||||||||||||||
100 bps | 200 bps | 10% | 20% | |||||||||||||
Adverse | Adverse | Adverse | Adverse | |||||||||||||
Change | Change | Change | Change | |||||||||||||
31-Dec-14 | ||||||||||||||||
Mortgage servicing rights | $ | (110,900 | ) | $ | (207,295 | ) | $ | (112,603 | ) | $ | (199,078 | ) | ||||
31-Dec-13 | ||||||||||||||||
Mortgage servicing rights | $ | (74,681 | ) | $ | (151,899 | ) | $ | (101,590 | ) | $ | (195,445 | ) | ||||
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, which could impact the above hypothetical effects. | ||||||||||||||||
MSRs - LOCOM | ||||||||||||||||
Nationstar owns the right to service certain reverse mortgage MSRs with an unpaid principal balance of $28.0 billion and $28.9 billion as of December 31, 2014 and December 31, 2013, respectively. 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 December 31, 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 related revenues 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 date indicated: | ||||||||||||||||
For the year ended | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
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 | (3,297 | ) | (17,139 | ) | (74 | ) | (717 | ) | ||||||||
Balance at end of the period | $ | 11,582 | $ | 65,382 | $ | 14,879 | $ | 82,521 | ||||||||
Fair value at end of period | $ | 34,225 | $ | 55,388 | $ | 29,192 | $ | 63,996 | ||||||||
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 revenues associated with servicing the Portfolios and the remaining portion of the excess cash flow after receipt of the 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 range of various assumptions used in Nationstar's valuation of Excess Spread financing were as follows: | ||||||||||||||||
Excess Spread financing | Prepayment Speeds | Average | Discount | Recapture Rate | ||||||||||||
Life (years) | Rate | |||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||
Low | 6.20% | 4.0 years | 8.50% | 6.70% | ||||||||||||
High | 19.40% | 7.1 years | 14.20% | 31.30% | ||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||
Low | 4.00% | 3.4 years | 10.10% | 5.00% | ||||||||||||
High | 17.60% | 5.7 years | 20.00% | 35.80% | ||||||||||||
The following table shows the hypothetical effect on the fair value of excess spread financing using certain unfavorable variations of the expected levels of key assumptions used in valuing these liabilities at the dates indicated: | ||||||||||||||||
Discount Rate | Total Prepayment | |||||||||||||||
Speeds | ||||||||||||||||
100 bps | 200 bps | 10% | 20% | |||||||||||||
Adverse | Adverse | Adverse | Adverse | |||||||||||||
Change | Change | Change | Change | |||||||||||||
December 31, 2014 | ||||||||||||||||
Excess spread financing | $ | 36,632 | $ | 75,964 | $ | 33,618 | $ | 70,379 | ||||||||
31-Dec-13 | ||||||||||||||||
Excess spread financing | $ | 33,156 | $ | 68,636 | $ | 26,492 | $ | 53,753 | ||||||||
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, 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. | ||||||||||||||||
Mortgage Servicing Rights Financing | ||||||||||||||||
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 22, 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 operations and comprehensive income. The weighted average assumptions used in Nationstar's valuation of Mortgage Servicing Rights Financing were as follows: | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
Advance financing rates | 2.79 | % | 2.4 | % | ||||||||||||
Annual advance recovery rates | 27.55 | % | 25.2 | % |
Accounts_Receivable
Accounts Receivable | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Accounts Receivable | Advances | |||||||
31-Dec-14 | December 31, 2013 | |||||||
Advances | $ | 2,546,362 | $ | 5,002,202 | ||||
Nationstar accretes purchase discounts into interest income as the related servicer advances are recovered. During the years ended December 31, 2014, 2013 and 2012 the Company accreted $12.2 million, $31.1 million and $11.3 million, respectively, of the purchase discounts from recovered servicer advances. | ||||||||
In 2014, Nationstar sold approximately $2.5 billion of servicer advances to a joint venture entity capitalized by New Residential and other investors. See Note 22, Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC, for additional information. Consequently the related purchase discounts of $52.9 million was eliminated from Nationstar's balance sheet. See Note 10, Indebtedness, for additional information. | ||||||||
As of December 31, 2014 and December 31, 2013, Nationstar carried an allowance for uncollectible servicer advances of $9.2 million and $8.0 million, respectively, primarily related to acquired interest advances on Ginnie Mae loans originally purchased at a discount. |
Reverse_Mortgage_Interest
Reverse Mortgage Interest | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Reverse Mortgage Interest [Abstract] | ||||||||
Reverse Mortgage Interest Disclosure [Text Block] | Reverse mortgage interests | |||||||
31-Dec-14 | 31-Dec-13 | |||||||
Participating interests | $ | 1,363,225 | $ | 1,039,645 | ||||
Other loans securitized | 279,564 | — | ||||||
Unsecuritized loans | 744,916 | 489,157 | ||||||
Allowance for losses - reverse mortgage interests | (4,058 | ) | (802 | ) | ||||
Total reverse mortgage interests | $ | 2,383,647 | $ | 1,528,000 | ||||
Participating interests consists of Nationstar issued or advanced and purchased HECMs that have been securitized through the issuance of HMBS securities to third party security holders which are guaranteed by GNMA. | ||||||||
Other loans securitized consists of reverse mortgage interests which have been transferred to private securitization trusts. Nationstar evaluated these trusts to determine whether they meet the definition of a VIE and whether Nationstar is the primary beneficiary. | ||||||||
See Note 10, Indebtedness. | ||||||||
Nationstar collectively evaluates all reverse mortgage interest assets for impairment. |
Mortgage_Loans_Held_for_Sale_a
Mortgage Loans Held for Sale and Investment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Mortgage Loans Held for Sale and Investment [Abstract] | ||||||||
Mortgage Loans Held for Sale and Investment | Mortgage Loans Held for Sale and Investment | |||||||
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 for the dates indicated: | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
Mortgage loans held for sale – unpaid principal balance | $ | 1,218,596 | $ | 2,532,881 | ||||
Mark-to-market adjustment, included in Gain on Mortgage Loans Held for Sale | 59,335 | 70,499 | ||||||
Total mortgage loans held for sale | $ | 1,277,931 | $ | 2,603,380 | ||||
Nationstar had $32.0 million and $69.5 million mortgage loans held for sale on nonaccrual status at December 31, 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 December 31, 2014 and December 31, 2013, was approximately $26.0 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 year ended | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
Mortgage loans held for sale – beginning balance | $ | 2,603,380 | $ | 1,480,537 | ||||
Mortgage loans originated and purchased, net of fees | 20,558,305 | 25,620,965 | ||||||
Proceeds on sale of and payments of mortgage loans held for sale | (21,880,403 | ) | (24,501,261 | ) | ||||
Transfer of mortgage loans held for sale to held for investment or other assets | (3,351 | ) | 3,139 | |||||
Mortgage loans held for sale – ending balance | $ | 1,277,931 | $ | 2,603,380 | ||||
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 re-pool into new Ginnie Mae securitizations or to otherwise sell to third-party investors. For the years ended December 31, 2014 and December 31, 2013, Nationstar repurchased $3.7 billion and $1.2 billion of mortgage loans, respectively, out of Ginnie Mae securitization pools. | ||||||||
Mortgage loans held for investment, net | ||||||||
Mortgage loans held for investment, net as of the dates indicated include: | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
Mortgage loans held for investment, net – unpaid principal balance | $ | 276,820 | $ | 305,085 | ||||
Transfer discount: | ||||||||
Accretable | (15,503 | ) | (17,362 | ) | ||||
Non-accretable | (66,217 | ) | (74,529 | ) | ||||
Allowance for loan losses | (3,531 | ) | (2,144 | ) | ||||
Total mortgage loans held for investment, net | $ | 191,569 | $ | 211,050 | ||||
The changes in accretable yield on loans transferred to mortgage loans held for investment, net were as follows: | ||||||||
For the year ended | ||||||||
Accretable Yield | 31-Dec-14 | 31-Dec-13 | ||||||
Balance at the beginning of the period | $ | 17,362 | $ | 19,749 | ||||
Accretion | (2,955 | ) | (3,235 | ) | ||||
Reclassifications from nonaccretable discount | 1,096 | 848 | ||||||
Balance at the end of the period | $ | 15,503 | $ | 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 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 $1.1 million and $0.8 million for the years ended December 31, 2014 and December 31, 2013, respectively. Furthermore, Nationstar considers the decrease in principal, interest, and other cash flows expected to be collected arising from the transferred loans as an impairment. | ||||||||
Loan delinquency 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 loan delinquency status. LTV refers to the ratio of the loan’s unpaid principal balance to the property’s collateral value. Loan delinquencies and unpaid principal balances are updated monthly based upon collection activity. Collateral values are updated from third party providers on a periodic basis. The collateral values used to derive the LTV’s shown below were obtained at various dates, but the majority were within the last twenty-four months. For an event requiring a decision based at least in part on the collateral value, the Company takes its last known value provided by a third party and then adjusts the value based on the applicable home price index. | ||||||||
The following table provides the outstanding unpaid principal balance of Nationstar’s mortgage loans held for investment by credit quality indicators for the dates indicated. Performing loans refer to loans that are less than 90 days delinquent. Non-performing loans refer to loans that are contractually greater than 90 days delinquent. | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
Credit Quality by Delinquency Status | ||||||||
Performing | $ | 196,323 | $ | 218,262 | ||||
Non-Performing | 80,497 | 86,823 | ||||||
Total | $ | 276,820 | $ | 305,085 | ||||
Credit Quality by Loan-to-Value Ratio | ||||||||
Less than 60 | $ | 29,639 | $ | 32,885 | ||||
Less than 70 and more than 60 | 18,078 | 14,633 | ||||||
Less than 80 and more than 70 | 18,931 | 23,075 | ||||||
Less than 90 and more than 80 | 24,088 | 25,536 | ||||||
Less than 100 and more than 90 | 24,135 | 25,686 | ||||||
Greater than 100 | 161,949 | 183,270 | ||||||
Total | $ | 276,820 | $ | 305,085 | ||||
Property_and_Equipment_net_Not
Property and Equipment, net (Notes) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Property, Plant and Equipment Disclosure [Text Block] | Property and Equipment, Net | |||||||||
Property and equipment, net, and the corresponding ranges of estimated useful lives were as follows. | ||||||||||
31-Dec-14 | 31-Dec-13 | Range of Estimated | ||||||||
Useful Life | ||||||||||
Furniture, fixtures and equipment | $ | 39,561 | $ | 65,408 | 3 - 5 years | |||||
Capitalized software costs | 72,673 | 52,582 | 5 years | |||||||
Long-term capital leases - computer equipment | 48,451 | 42,856 | 5 years | |||||||
Building and leasehold improvements | 16,638 | 13,984 | Varies | |||||||
Software in development | 21,174 | 18,243 | ||||||||
198,497 | 193,073 | |||||||||
Less: Accumulated depreciation and amortization | (69,721 | ) | (74,723 | ) | ||||||
Plus: Land | 835 | 835 | ||||||||
Total property and equipment, net | $ | 129,611 | $ | 119,185 | ||||||
Nationstar has entered into various lease agreements for computer equipment which are classified as capital leases. All of the capital leases expire over the next five years. A majority of these lease agreements contain bargain purchase options. | ||||||||||
As of December 31, 2014, future minimum payments for Nationstar's capital leases is presented in table below: | ||||||||||
Future Minimum Lease Payments | ||||||||||
2015 | $ | 18,389 | ||||||||
2016 | 4,747 | |||||||||
2017 | 241 | |||||||||
Thereafter | — | |||||||||
Total future lease payments | 23,377 | |||||||||
Less: Imputed interest | (1,398 | ) | ||||||||
Net capital lease liability | $ | 21,979 | ||||||||
Other_Assets
Other Assets | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||
Other Assets | Other Assets | |||||||||||||
Other assets consisted of the following: | ||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||
Receivables from trusts, agencies and prior servicers | $ | 350,179 | $ | 203,385 | ||||||||||
Accrued revenues | 154,436 | 134,440 | ||||||||||||
Loans subject to repurchase right from Ginnie Mae | 131,592 | 120,736 | ||||||||||||
Real estate owned, net | 107,034 | 45,632 | ||||||||||||
Goodwill | 54,701 | 38,820 | ||||||||||||
Deferred financing costs | 46,986 | 73,030 | ||||||||||||
Intangible assets | 19,622 | 21,737 | ||||||||||||
Prepaid expenses | 9,837 | 21,993 | ||||||||||||
Collateral deposits on derivative instruments | 9,810 | 25,932 | ||||||||||||
Receivables from affiliates | 4,713 | 8,861 | ||||||||||||
Accrued interest | 1,890 | 6,970 | ||||||||||||
Other | 55,851 | 199,647 | ||||||||||||
Total other assets | $ | 946,651 | $ | 901,183 | ||||||||||
Acquisitions | ||||||||||||||
In May 2014, Nationstar acquired Real Estate Digital, LLC (RED), an online exchange portal that provides consumers and real estate professionals with a single source for marketing data, transaction management, and digital media solutions. The total purchase price for the acquisition was $18.0 million. In the preliminary purchase price allocations, Nationstar recorded $15.9 million in goodwill on its consolidated balance sheet in the Solutionstar segment. | ||||||||||||||
Nationstar acquired the loan origination operations and certain assets of Greenlight on May 31, 2013. The aggregate purchase price for these assets was approximately $75.7 million. In a separate transaction, Nationstar acquired approximately $98.0 million in UPB of mortgage loans from Greenlight. Additionally, in October 2013, Nationstar acquired certain MSRs from Greenlight for an additional $2.2 million. The excess of the purchase price over the fair value of assets acquired and liabilities assumed was allocated to goodwill. Goodwill of $35.4 million was recorded in our Originations segment. There was also $1.8 million of acquisition-related costs recognized as an expense in general and administrative and salaries, wages and benefits line items in the consolidated statements of operations and comprehensive income. | ||||||||||||||
In February 2013, Nationstar acquired ESS for a total purchase price of $12.5 million. Nationstar recorded $3.4 million of goodwill and $4.1 million of intangible assets in other assets on its consolidated balance in the Solutionstar segment. | ||||||||||||||
Goodwill and Intangibles | ||||||||||||||
The following table presents changes in the carrying amount of goodwill for the periods indicated: | ||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||
Balance at beginning of period | $ | 38,820 | $ | — | ||||||||||
Goodwill acquired during the period | 15,881 | 38,820 | ||||||||||||
Balance at end of period | $ | 54,701 | $ | 38,820 | ||||||||||
The following tables presents our intangible assets for the periods indicated: | ||||||||||||||
31-Dec-14 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Life | |||||||||||
Trade name | $ | 18,595 | $ | (2,934 | ) | $ | 15,661 | 8.4 | ||||||
Customer relationships | 4,143 | (747 | ) | 3,396 | 8.2 | |||||||||
Licenses | 557 | — | 557 | Indefinite | ||||||||||
Trademark | 8 | — | 8 | Indefinite | ||||||||||
$ | 23,303 | $ | (3,681 | ) | $ | 19,622 | 8.4 | |||||||
31-Dec-13 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Life | |||||||||||
Trade name | $ | 18,530 | $ | (1,081 | ) | $ | 17,449 | 9.4 | ||||||
Customer relationships | 4,070 | (339 | ) | 3,731 | 9.2 | |||||||||
Licenses | 557 | — | 557 | Indefinite | ||||||||||
$ | 23,157 | $ | (1,420 | ) | $ | 21,737 | 9.4 | |||||||
Nationstar recognized $2.3 million and $1.4 million of amortization expense for the years ended December 31, 2014 and December 31, 2013, respectively. The following table presents the estimated aggregate amortization expense for the periods indicated: | ||||||||||||||
Amortization Expense | ||||||||||||||
2015 | $ | 2,277 | ||||||||||||
2016 | 2,277 | |||||||||||||
2017 | 2,277 | |||||||||||||
2018 | 2,277 | |||||||||||||
2019 | 2,277 | |||||||||||||
Thereafter | 7,672 | |||||||||||||
Total future amortization expense | $ | 19,057 | ||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||||||
Dec. 31, 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, Eurodollar futures and interest rate swap agreements. | ||||||||||||||
Nationstar enters into IRLCs with prospective borrowers. These commitments are carried at fair value, with any changes in fair value recorded in earnings as a component of net gain on mortgage loans held for sale. 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. | ||||||||||||||
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 net 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 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 net gain on mortgage loans held for sale. | ||||||||||||||
In addition, Nationstar enters into Eurodollar futures contracts to replicate the economic hedging results achieved with interest rate swaps or offset the changes in value of its forward sales of certain agency securities. The Company has not designated its futures contracts as hedges for accounting purposes. As a result, realized and unrealized changes in fair value are recognized in net gain on mortgage loans held for sale in the period in which the changes occur. | ||||||||||||||
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 dedesignated interest rate derivatives are separately disclosed under operating activities in the consolidated statements of cash flows. | ||||||||||||||
Historically, Nationstar has entered into interest rate swap agreements to hedge the interest payments associated with its outstanding floating rate financing servicer advance facilities. Prior to March 31, 2014, certain of these derivatives were designated as cash flow hedges and were recorded at fair value on Nationstar's balance sheet, with any change in fair value being recorded as an adjustment to other comprehensive income. On March 31, 2014, the Company dedesignated the remainder of the interest rate swap agreements, with any further changes in fair value being recorded as a charge to gain or loss in interest rate swaps and caps in Nationstar's consolidated statement of operations. | ||||||||||||||
Total gain or loss recognized in income on interest rate swaps designated as cash flow hedges was approximately $0.5 million for the year ended December 31, 2013. There was no gain or loss recognized for the years ended December 31, 2014 and 2012. For the year ended December 31, 2013, a gain was recognized for approximately $2.0 million in other comprehensive income. No gain or loss was recognized in other comprehensive income for the years ended December 31, 2014 and 2012. | ||||||||||||||
Associated with the Company's derivatives is $9.8 million and $25.9 million in collateral deposits on derivative instruments recorded in other assets on the Company's balance sheets as of December 31, 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 year ended December 31, 2014 | ||||||||||||||
ASSETS | ||||||||||||||
MORTGAGE LOANS HELD FOR SALE | ||||||||||||||
Loan sale commitments | 2015 | $ | 1,666 | $ | (4 | ) | $ | (11 | ) | |||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||
IRLCs | 2015 | 2,556,169 | 87,902 | 774 | ||||||||||
Forward MBS trades | 2015 | 319,112 | 284 | (31,982 | ) | |||||||||
LPCs | 2015 | 287,089 | 1,999 | 1,206 | ||||||||||
Interest rate swaps and caps | 2018 | 124,650 | 865 | (1,673 | ) | |||||||||
Eurodollar futures | 2015-2017 | 40,000 | 1 | 1 | ||||||||||
LIABILITIES | ||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||
IRLCs | 2015 | 865 | 7 | 2,691 | ||||||||||
Interest rate swaps on ABS debt | 2015-2017 | 105,681 | 103 | 731 | ||||||||||
Forward MBS trades | 2015 | 2,958,700 | 18,360 | (15,055 | ) | |||||||||
LPCs | 2015 | 30,494 | 48 | 1,641 | ||||||||||
Eurodollar futures | 2015-2017 | 80,000 | 7 | (7 | ) | |||||||||
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 | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||
Indebtedness | Indebtedness | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral Pledged | Outstanding | Collateral pledged | |||||||||||||||||||
Advance Facilities | ||||||||||||||||||||||||||
MBS advance financing facility(1) | LIBOR+2.50% to 4.00% | Mar-15 | Servicing advance receivables | $ | 475,000 | $ | 363,014 | $ | 418,126 | $ | 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(2) | LIBOR+1.20% to 3.75% | Oct-15 | Servicing advance receivables | $ | 1,100,000 | 805,706 | 885,115 | 851,957 | 918,574 | |||||||||||||||||
Reverse participations financing facility(3) | LIBOR+4.00% | Jun-14 | Reverse | $ | 150,000 | — | — | 102,031 | 124,536 | |||||||||||||||||
mortgage loans | ||||||||||||||||||||||||||
MBS advance financing facility (2012) | LIBOR+5.00% | Apr-15 | Servicing advance receivables | $ | 50,000 | 42,472 | 50,758 | 179,306 | 220,833 | |||||||||||||||||
Nationstar Mortgage Advance Receivable | LIBOR+1.15% to 5.30% | Jun-18 | Servicing advance receivables | $ | 475,000 | 419,170 | 471,243 | 1,240,940 | 1,347,410 | |||||||||||||||||
Trust (4) | ||||||||||||||||||||||||||
MBS servicer advance facility (2014) | LIBOR+3.50% | Jul-15 | Servicing advance receivables | $ | 80,000 | 79,084 | 138,010 | — | — | |||||||||||||||||
Nationstar servicer advance receivables trust 2014 - BC | LIBOR+1.50% to 3.00% | Nov-15 | Servicing advance receivables | $ | 200,000 | 106,115 | 121,030 | — | — | |||||||||||||||||
Securities repurchase facility (2014) | LIBOR+1.50% to 2.00% | Nov-17 | HECM Security Interest | $ | — | 51,609 | 74,525 | — | — | |||||||||||||||||
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 | |||||||||||||||||
1,901,783 | 2,214,410 | 4,550,424 | 5,083,205 | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral Pledged | Outstanding | Collateral pledged | |||||||||||||||||||
Warehouse Facilities | ||||||||||||||||||||||||||
$1.5 billion warehouse facility | LIBOR+2.00% to 2.875% | Oct-15 | Mortgage loans or MBS | $ | 1,500,000 | 663,167 | 697,257 | 797,281 | 891,648 | |||||||||||||||||
$750 million warehouse facility | LIBOR+1.75% to 2.50% | Apr-15 | Mortgage loans or MBS | $ | 750,000 | 307,294 | 320,285 | 639,378 | 673,599 | |||||||||||||||||
$500 million warehouse facility | LIBOR+1.75% to 2.75% | Sep-15 | Mortgage loans or MBS | $ | 500,000 | 176,194 | 179,994 | 111,980 | 115,629 | |||||||||||||||||
$500 million warehouse facility | LIBOR+0.75% to 3.50% | Jun-15 | Mortgage loans or MBS | $ | 500,000 | — | — | 214,570 | 224,162 | |||||||||||||||||
$500 million warehouse facility | LIBOR+ 1.50% to 2.25% | Jun-15 | Mortgage loans or MBS | $ | 500,000 | 183,290 | 192,990 | 447,926 | 477,980 | |||||||||||||||||
$300 million warehouse facility(6) | LIBOR +2.50% | Sep-14 | Mortgage loans or MBS | $ | 300,000 | — | — | 159,435 | 166,482 | |||||||||||||||||
$200 million warehouse facility(7) | LIBOR+2.75% to 3.25% | Feb-15 | Mortgage loans or MBS | $ | 200,000 | 210,049 | $ | 223,849 | 63,357 | 93,098 | ||||||||||||||||
$75 million warehouse facility (HCM)(8) | LIBOR+ 2.25% to 2.875% | Oct-15 | Mortgage loans or MBS | $ | 125,000 | 23,949 | 29,324 | — | — | |||||||||||||||||
$50 million warehouse facility (HCM) | LIBOR + 2.50% to 2.75% | Nov-15 | Mortgage loans or MBS | $ | 50,000 | 8,679 | 9,044 | — | — | |||||||||||||||||
ASAP+ facility | LIBOR+1.50% | Up to 45 days | GSE mortgage loans or GSE MBS | $ | — | — | — | — | — | |||||||||||||||||
$ | 1,572,622 | $ | 1,652,743 | $ | 2,433,927 | $ | 2,642,598 | |||||||||||||||||||
Mortgage loans held for sale | 1,196,956 | 1,241,043 | 2,297,042 | 2,464.70 | ||||||||||||||||||||||
Reverse mortgage interests | 375,666 | 411,700 | 136,885 | 177.895 | ||||||||||||||||||||||
(1) The capacity of this facility will decrease from $475.0 million to $130.0 million as of January 30, 2015. | ||||||||||||||||||||||||||
(2) This facility has both variable funding notes (VFN) and term notes. Nationstar issued $300.0 million in term notes to institutional investors and plans to redeem $200.0 million of the notes on February 17, 2015. The notes have a weighted average interest rate of 1.46% and a weighted average term of 3.0 years. The capacity limit on this facility will be increased to $1.5 billion as of January 30, 2015. | ||||||||||||||||||||||||||
(3) This facility was partially secured by reverse mortgage loans and partially unsecured. The facility also expired in June 2014 and was not renewed. | ||||||||||||||||||||||||||
(4) 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. The notes scheduled to mature in June 2014 were redeemed in January 2014. The notes scheduled to mature in June 2016 were redeemed in June 2014. | ||||||||||||||||||||||||||
(5) Nationstar terminated this advance receivable facility in May 2014 at which time all outstanding balances had been repaid. | ||||||||||||||||||||||||||
(6) This facility expired in September 2014 and was not renewed. | ||||||||||||||||||||||||||
(7) The capacity for this facility had a temporary increase to $225.0 million as of December 31, 2014. | ||||||||||||||||||||||||||
(8) This facility is a sublimit of the $1.5 billion facility specific to HCM. The $125.0 million capacity was a temporary increase from $75.0 million effective November 14, 2014 through December 31, 2014. | ||||||||||||||||||||||||||
Unsecured Senior Notes | ||||||||||||||||||||||||||
A summary of the balances of unsecured senior notes is presented below: | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
$285 million face value, 10.875% interest rate payable semi-annually, due April 2015 | $ | — | $ | 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 | 378,555 | 379,360 | ||||||||||||||||||||||||
$400 million face value, 7.875% interest rate payable semi-annually, due October 2020 | 400,541 | 400,634 | ||||||||||||||||||||||||
$600 million face value, 6.500% interest rate payable semi-annually, due July 2021 | 605,135 | 605,915 | ||||||||||||||||||||||||
$300 million face value, 6.500% interest rate payable semi-annually, due June 2022 | 300,000 | 300,000 | ||||||||||||||||||||||||
Total | $ | 2,159,231 | $ | 2,444,062 | ||||||||||||||||||||||
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 the 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 a 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 December 31, 2014, the expected maturities of Nationstar's unsecured senior notes based on contractual maturities are as follows: | ||||||||||||||||||||||||||
Year | Amount | |||||||||||||||||||||||||
2015 | $ | — | ||||||||||||||||||||||||
2016 | — | |||||||||||||||||||||||||
2017 | — | |||||||||||||||||||||||||
2018 | 475,000 | |||||||||||||||||||||||||
2019 | 375,000 | |||||||||||||||||||||||||
Thereafter | 1,300,000 | |||||||||||||||||||||||||
Total | $ | 2,150,000 | ||||||||||||||||||||||||
Other Nonrecourse Debt | ||||||||||||||||||||||||||
A summary of the balances of other nonrecourse debt is presented below: | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Participating interest financing | $ | 1,433,145 | $ | 1,103,490 | ||||||||||||||||||||||
2014-1 HECM securitization | 259,328 | — | ||||||||||||||||||||||||
Nonrecourse debt - Legacy Assets | 75,838 | 89,107 | ||||||||||||||||||||||||
Total | $ | 1,768,311 | $ | 1,192,597 | ||||||||||||||||||||||
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 5.45%. The participating interest financing was $1,433.1 million and $1,103.5 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||
2014-1 HECM Securitization | ||||||||||||||||||||||||||
In December 2014, Nationstar Mortgage LLC completed the securitization of approximately $343.6 million in Nationstar HECM Loan Trust 2014-1Mortgage Backed Securities. The trust was created was to provide investors with the ability to invest in a pool of non-performing home equity conversion reverse mortgage loans that are covered by Federal Housing Administration (FHA) insurance and secured by one to four-family residential properties and a pool of REO properties acquired through foreclosure or grant of a deed in lieu of foreclosure in connection with reverse mortgage loans that are covered by FHA insurance. The transaction provides Nationstar with access to liquidity for the acquired non-performing HECM loan portfolio, ongoing servicing fees, and potential residual returns. | ||||||||||||||||||||||||||
The notes were issued under two separate classes, comprised of Class A Notes and Class M Notes. As part of the securitization, Nationstar retained a portion of the offered Class A notes of approximately $70.4 million as well as the Class M Notes with an outstanding note balance of $36.2 million. A portion of the notes retained by Nationstar represent subordinated beneficial interests. | ||||||||||||||||||||||||||
The transaction was structured as a secured borrowing with the reverse mortgage loans included in the consolidated financial statements of Nationstar as a reverse secured borrowing and the related financing included in other nonrecourse debt. The nonrecourse debt totaled approximately $259.3 million at December 31, 2014. | ||||||||||||||||||||||||||
Nonrecourse Debt–Legacy Assets | ||||||||||||||||||||||||||
In November 2009, Nationstar completed the securitization of approximately $222.0 million of ABS, which was structured as a secured borrowing. This structure resulted in Nationstar carrying the securitized loans as mortgages on Nationstar’s consolidated balance sheets and recognizing the asset-backed certificates acquired by third parties as nonrecourse debt, totaling approximately $75.8 million and $89.1 million at December 31, 2014 and 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 $268.2 million and $302.0 million at December 31, 2014 and 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 $88.2 million and $103.6 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||
Financial Covenants | ||||||||||||||||||||||||||
As of December 31, 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 $450.0 million as of each quarter-end related to its outstanding Master Repurchase Agreements on its outstanding repurchase facilities. As of December 31, 2014, Nationstar was in compliance with these minimum tangible net worth requirements. |
Variable_Interest_Entities_and
Variable Interest Entities and Securitizations | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Variable Interest Entities and Securitizations [Abstract] | ||||||||||||||||||||||||
Variable Interest Entities and Securitizations | Securitizations and Financings | |||||||||||||||||||||||
Variable Interest Entities | ||||||||||||||||||||||||
Nationstar evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Company is the primary beneficiary and should consolidate the entity based on the variable interests it held both at inception and when there is a change in circumstances that require a reconsideration. | ||||||||||||||||||||||||
A summary of the assets and liabilities of Nationstar’s transactions with VIEs included in the Company’s consolidated financial statements is presented below for the periods indicated: | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Transfers | Reverse Secured Borrowings | Transfers | Reverse Secured Borrowings | |||||||||||||||||||||
Accounted for as | Accounted for as | |||||||||||||||||||||||
Secured | Secured | |||||||||||||||||||||||
Borrowings | Borrowings | |||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Restricted cash | $ | 90,068 | $ | 15,578 | $ | 272,188 | $ | — | ||||||||||||||||
Reverse mortgage interests | — | 1,642,789 | — | 1,039,645 | ||||||||||||||||||||
Advances | 1,477,388 | — | 4,030,280 | — | ||||||||||||||||||||
Mortgage loans held for investment, net | 189,456 | — | 208,263 | — | ||||||||||||||||||||
Derivative financial instruments | 865 | — | 3,691 | — | ||||||||||||||||||||
Other Assets | 2,678 | 61,703 | 3,539 | — | ||||||||||||||||||||
Total Assets | $ | 1,760,455 | $ | 1,720,070 | $ | 4,517,961 | $ | 1,039,645 | ||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Advance Facilities | $ | 1,330,991 | $ | — | $ | 3,672,726 | $ | — | ||||||||||||||||
Payables and accrued liabilities | 1,596 | 186 | 4,242 | — | ||||||||||||||||||||
Nonrecourse debt–Legacy Assets | 75,838 | — | 89,107 | — | ||||||||||||||||||||
2014-1 HECM Securitization | — | 259,328 | — | — | ||||||||||||||||||||
Participating interest financing | — | 1,433,145 | — | 1,080,718 | ||||||||||||||||||||
Total Liabilities | $ | 1,408,425 | $ | 1,692,659 | $ | 3,766,075 | $ | 1,080,718 | ||||||||||||||||
Securitizations Treated as Sales | ||||||||||||||||||||||||
When Nationstar sells mortgage loans in securitization transactions that are structured as sales, it may retain one or more bond classes and servicing rights in the securitization. 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. | ||||||||||||||||||||||||
Details of the securitization structured as a sale are shown below for the periods indicated: | ||||||||||||||||||||||||
Sale Date | Net Bond Proceeds | Carrying Value of Loans Sold | Gain Recognized | |||||||||||||||||||||
Nationstar Mortgage-Backed Notes, Series 2013-A | 2013 | $ | 164,297 | $ | 158,204 | $ | 6,093 | |||||||||||||||||
For the periods presented, Nationstar only sold mortgage loans in securitization transactions that were structured as sales for the year ended December 31, 2013. The gain on sale of the 2013 securitization was included in originations revenue in the Originations segment. | ||||||||||||||||||||||||
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: | ||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | |||||||||||||||||||||||
Total collateral balances | $ | 3,258,472 | $ | 3,831,473 | ||||||||||||||||||||
Total certificate balances | 3,297,256 | 3,843,694 | ||||||||||||||||||||||
Nationstar has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of December 31, 2014, 2013, or 2012, and therefore does not have a significant maximum exposure to loss related to these unconsolidated VIEs. A summary of mortgage loans transferred by Nationstar 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 | 31-Dec-14 | December 31, 2013 | ||||||||||||||||||||||
Unconsolidated securitization trusts | $ | 861,419 | $ | 1,142,940 | ||||||||||||||||||||
For the year ended December 31, | ||||||||||||||||||||||||
Credit Losses | 2014 | 2013 | 2012 | |||||||||||||||||||||
Unconsolidated securitization trusts | $ | 275,726 | $ | 251,076 | $ | 273,817 | ||||||||||||||||||
Certain cash flows received from securitization trusts related to the transfer of mortgage loans accounted for as sales for the dates indicated were as follows: | ||||||||||||||||||||||||
For the year ended December 31, | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||
Servicing Fees | Loan | Servicing Fees | Loan | Servicing Fees | Loan | |||||||||||||||||||
Received | Repurchases | Received | Repurchases | Received | Repurchases | |||||||||||||||||||
Unconsolidated securitization trusts | $ | 28,284 | $ | — | $ | 29,151 | $ | — | $ | 28,049 | $ | — | ||||||||||||
Accounts_Payable
Accounts Payable | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Payables and Accrued Liabilities | Payables and Accrued Liabilities | |||||||
Payables and accrued liabilities consist of the following: | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Payables to servicing and subservicing investors | $ | 329,306 | $ | 359,214 | ||||
Payable to insurance carriers and insurance cancellation reserves | 163,381 | 164,244 | ||||||
Loans subject to repurchase from Ginnie Mae | 131,592 | 120,736 | ||||||
Taxes | 96,237 | 35,961 | ||||||
Accrued bonus and payroll | 85,366 | 66,755 | ||||||
Accrued interest | 59,708 | 76,303 | ||||||
MSR purchases payable including advances | 45,697 | 135,759 | ||||||
Repurchase reserves | 29,165 | 40,695 | ||||||
Other | 381,626 | 308,783 | ||||||
Total payables and accrued liabilities | $ | 1,322,078 | $ | 1,308,450 | ||||
Payable to servicing and subservicing investors | ||||||||
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. | ||||||||
Payable to insurance carriers and insurance cancellation reserves | ||||||||
Payable to insurance carriers and insurance cancellation reserves consist of insurance premiums received from borrower payments awaiting disbursement to the insurance carrier and/or amounts due to third party investors on liquidated loans. | ||||||||
Repurchase reserves | ||||||||
The activity of the outstanding repurchase reserves were as follows: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Repurchase reserves, beginning of period | $ | 40,695 | $ | 18,511 | ||||
Additions | 12,556 | 33,121 | ||||||
Charge-offs | (2,925 | ) | (10,937 | ) | ||||
Adjustments, including expired indemnifications | (21,161 | ) | — | |||||
Repurchase reserves, end of period | $ | 29,165 | $ | 40,695 | ||||
The provision for repurchases represents estimate of losses to be incurred on the repurchase or indemnification of purchasers of loans. Certain sale contracts and GSE standards require Nationstar to repurchase a loan or indemnify the purchaser or insurer for losses if a borrower fails to make initial loan payments or if the accompanying mortgage loan fails to meet certain customary representations and warranties, such as the manner of origination, the nature and extent of underwriting standards. | ||||||||
In the event of a breach of the representations and warranties, we may be required to either repurchase the loan or indemnify the purchaser for losses it sustains on the loan. In addition, an investor may request that we refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. We record a provision for estimated repurchases, loss indemnification and premium recapture on loans sold, which is charged to gain on mortgage loans held for sale. | ||||||||
In 2012, a selling representation and warranty framework was introduced by the GSEs that helps address concerns of loan sellers with respect to loan repurchase risk. Under the framework, which was enhanced in 2014, the GSEs will not exercise its remedies, including the issuance of repurchase requests, for breaches of certain selling representations and warranties if a mortgage meets certain eligibility requirements. For loans sold to GSEs on or after January 1, 2013, repurchase risk for HARP loans is lowered if the borrower stays current in the loan for 12 months and representation and warranty risks are limited for non-HARP loans that stay current for 36 months. | ||||||||
After evaluating the enhanced framework, the composition of loans originated, quality control standards, historical repurchase requests and the passage of time, Nationstar reduced the repurchase reserve by $21.2 million to reflect loans where the repurchase provision expired and to reflect the best estimate of possible future requests. We believe the analysis used to evaluate future expected repurchase exposure is appropriate and our period-end repurchase reserve balance is adequate. | ||||||||
As of December 31, 2014, the Company believes the analysis used to evaluate future expected repurchase exposure is appropriate and the period-end repurchase reserve balance is adequate. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Income Taxes | Income Taxes | ||||||||||||||||||||
The components of income tax expense (benefit) on continuing operations were as follows (in thousands): | |||||||||||||||||||||
For the year ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Current | |||||||||||||||||||||
Federal | $ | 46,381 | $ | 4,636 | $ | 82,120 | |||||||||||||||
State | 7,608 | (1,059 | ) | 10,126 | |||||||||||||||||
53,989 | 3,577 | 92,246 | |||||||||||||||||||
Deferred | |||||||||||||||||||||
Federal | 6,360 | 114,466 | (18,721 | ) | |||||||||||||||||
State | 4,511 | 11,157 | (2,229 | ) | |||||||||||||||||
10,871 | 125,623 | (20,950 | ) | ||||||||||||||||||
Total | $ | 64,860 | $ | 129,200 | $ | 71,296 | |||||||||||||||
Income tax expense differs from the amounts computed by applying the U.S. Federal corporate tax rate of 35% as follows for the period indicated (dollars in thousands): | |||||||||||||||||||||
For the year ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Tax expense at federal statutory rate | $ | 100,058 | 35 | % | $ | 121,186 | 35 | % | $ | 96,804 | 35 | % | |||||||||
Effect of: | |||||||||||||||||||||
State taxes, net of federal benefit | 8,330 | 2.9 | % | 5,465 | 1.6 | % | 6,129 | 2.2 | % | ||||||||||||
Pre-reorganization earnings | — | — | % | — | — | % | (14,302 | ) | (5.2 | )% | |||||||||||
Increase/(decrease) of valuation allowance | (40,275 | ) | (14.1 | )% | 1,099 | 0.3 | % | (17,767 | ) | (6.4 | )% | ||||||||||
Other, net | (3,253 | ) | (1.1 | )% | 1,450 | 0.4 | % | 432 | 0.2 | % | |||||||||||
Total income tax expense | $ | 64,860 | 22.7 | % | $ | 129,200 | 37.3 | % | $ | 71,296 | 25.8 | % | |||||||||
The Company generated significantly increased revenues in 2012, adding approximately $100 billion in UPB to its mortgage servicing portfolio, more than doubling its mortgage loan originations and recognizing significant pre-tax income. The Company added approximately $192 billion in UPB to its mortgage servicing portfolio in 2013. Because of the increase in the size of the Company, management forecast earnings in each future year significant enough to utilize NOLs in future periods and released approximately $44.2 million of deferred tax valuation allowance. | |||||||||||||||||||||
The primary reason for the significant variation in the expected tax rate and the actual tax rate in 2014 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 36.8% for the year ended December 31, 2014. | |||||||||||||||||||||
Deferred income tax amounts at December 31, 2014 and 2013, reflect the effect of basis differences in assets and liabilities for financial reporting and income tax purposes and tax attribute carryforwards. | |||||||||||||||||||||
Temporary differences and carryforwards that give rise to deferred tax assets and liabilities are comprised of the following (in thousands): | |||||||||||||||||||||
31-Dec | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Deferred Tax Assets | |||||||||||||||||||||
Effect of: | |||||||||||||||||||||
Loss carryforwards (federal, state & capital) | $ | 67,799 | $ | 75,387 | |||||||||||||||||
Loss reserves | 41,467 | 28,808 | |||||||||||||||||||
Reverse mortgage premiums | 26,227 | 23,756 | |||||||||||||||||||
Rent expense | 2,138 | 5,389 | |||||||||||||||||||
Restricted share based compensation | 11,159 | 4,847 | |||||||||||||||||||
Goodwill | 427 | 1,297 | |||||||||||||||||||
Other, net | 9,094 | 6,632 | |||||||||||||||||||
Total Deferred Tax Assets | 158,311 | 146,116 | |||||||||||||||||||
Deferred Tax Liabilities | |||||||||||||||||||||
MSR Amortization and Mark To Mark, net | (228,987 | ) | (185,225 | ) | |||||||||||||||||
Depreciation and amortization, net | (31,997 | ) | (9,745 | ) | |||||||||||||||||
Prepaid assets | (888 | ) | (2,054 | ) | |||||||||||||||||
Cash flow hedges | — | (843 | ) | ||||||||||||||||||
Other, net | 107 | (4,312 | ) | ||||||||||||||||||
Total Deferred Tax Liabilities | (261,765 | ) | (202,179 | ) | |||||||||||||||||
Valuation Allowance | (6,391 | ) | (46,666 | ) | |||||||||||||||||
Net Deferred Tax Liability | $ | (109,845 | ) | $ | (102,729 | ) | |||||||||||||||
The federal net operating loss carryforwards (NOL) amount to approximately $164.6 million and $199.9 million at December 31, 2014 and 2013, respectively. It is expected that these NOLs will begin to expire in 2026, if unused. The Company also has net capital losses carry forwards of approximately $15.9 million that begin to expire in 2014 and state NOL carryforwards of approximately $95.9 million that begin to expire in 2014. | |||||||||||||||||||||
In particular, additional scrutiny must be given to deferred tax assets of an entity that has incurred pre-tax losses during the three most recent years because it is significant negative evidence that is objective and verifiable and therefore difficult to overcome. The Company had significant pre-tax losses for 2009 and 2010, and at the Reorganization date, the Company's management considered this factor in its analysis of deferred tax assets. Considering the Company's 2011 pre-tax income, the Company had a significant three year cumulative pre-tax loss. Additionally, the Company incurred significant losses for the periods 2006 through 2008. | |||||||||||||||||||||
In conjunction with the Company's initial public offering and Reorganization, the Company became a taxable entity, inherited certain tax attributes, including net operating losses, and recorded the effects of the Company's temporary differences. At the Reorganization date, the Company recorded a net deferred tax asset which was primarily caused by the net operating loss carryforward. Simultaneously, the Company recorded a valuation allowance against the net deferred tax asset. The principle reason for the valuation allowance was the cumulative losses for the 2009 - 2011 period and the Company's overall history of losses. Although the Company was profitable in 2011, as of the Reorganization date management concluded it would be inappropriate to rely on future income projections to conclude the net deferred tax asset would be realized. | |||||||||||||||||||||
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. Furthermore, in conjunction with the Reorganization, the Company incurred a change in control within the meaning of Sections 382 and 383 of the Internal Revenue Code. As a result, federal tax law places an annual limitation on the amount of the Company's federal net operating loss carryforward that may be used. | |||||||||||||||||||||
The Company's NOL is limited by Section 382 of the Internal Revenue Code. Because of this limitation, the Company is required to utilize the NOL over an 18 year period. These factors, among others, caused management to release a portion of the valuation allowance at year end 2012. However, because forecasted income generally becomes less reliable over time, a full release of the valuation allowance was not determined to be appropriate at December 31, 2013 and 2012. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||
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, a three-tiered fair value hierarchy has been established 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). | ||||||||||||||||
The following describes the methods and assumptions used by Nationstar in estimating fair values: | ||||||||||||||||
Cash and Cash Equivalents, Restricted Cash (Level 1) – The carrying amount reported in the consolidated balance sheets approximates fair value. | ||||||||||||||||
Mortgage Loans Held for Sale (Level 2) – 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 on a recurring basis 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 observable inputs, 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. | ||||||||||||||||
Mortgage Loans Held for Investment, net (Level 3) – Nationstar determines the fair value of loans held for investment, net, 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 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 internally developed valuation, Nationstar classifies these valuations as Level 3 in the fair value disclosures. | ||||||||||||||||
Mortgage Servicing Rights – Fair Value (Level 3) – Nationstar estimates the fair value of its forward MSRs on a recurring basis 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 revenues 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 fair value of the MSRs. Quarterly, management obtains third party valuations to assess the reasonableness of the fair value calculations provided by the internal 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 (Level 3) – 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 interests are carried at lower of cost or market in the financial statements. Nationstar estimates the fair value using a market approach by utilizing the fair value of securities backed by similar reverse mortgage loans, adjusted for certain factors. As the adjustments to factors require the use of judgment, Nationstar classifies these valuations as Level 3 in the fair value disclosures. | ||||||||||||||||
REO (Level 3) – 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. REO is classified as Level 3 in the fair value disclosures. | ||||||||||||||||
Derivative Financial Instruments (Level 2) – Nationstar enters into a variety of derivative financial instruments as part of its hedging strategy and measures these instruments at fair value on a recurring basis in the balance sheet. 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 underling 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, as the valuations are based on market observable inputs. Nationstar has entered into Eurodollar futures contracts as part of its hedging strategy. The future contracts are measured at fair value on a recurring basis and classified as Level 2 in the fair value disclosures as the valuation is based on market observable data. | ||||||||||||||||
Notes Payable (Level 2) – 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 a rate that is periodically adjusted based on a market index, the carrying amount reported on the consolidated balance sheets approximates fair value. Nationstar previously classified these as Level 3; however, upon further consideration reclassified such amounts as Level 2 in current year principally because interest rates are tied directly to mark indices. | ||||||||||||||||
Unsecured Senior Notes (Level 1) – 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 (Level 3) – 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 (Level 3) – Nationstar estimates fair value based on the present value of future expected discounted cash flows with the discount rate approximating current market value on a recurring basis for similar financial instruments. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds, average life, recapture rates and discount rate. Changes in fair value of the excess spread financing are recorded as a component of service related revenue in Nationstar's consolidated statements of operations 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. | ||||||||||||||||
Mortgage Servicing Rights Financing Liability (Level 3) - Nationstar estimates fair value based on the present value of future expected discounted cash flows with the discount rate approximating current market value on a recurring basis for similar financial instruments. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions being advance financing rates, annual advance recovery rates and working capital. Changes in fair value of the mortgage servicing rights financing liability are recorded as a component of service related revenues in Nationstar’s consolidated statements of operations 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. | ||||||||||||||||
Participating Interest Financing (Level 2) – 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. | ||||||||||||||||
2014-1 HECM Securitization (Level 3) – Nationstar estimates fair value of the non-recourse debt related to the 2014-1 HECM securitization based on the present value of future expected discounted cash flows with the discount rate approximating similar financial instruments. As the prices are derived from both internal models and other observable inputs, Nationstar classifies this as Level 3 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: | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
ASSETS | ||||||||||||||||
Mortgage loans held for sale(1) | $ | 1,277,931 | $ | — | $ | 1,277,931 | $ | — | ||||||||
Mortgage servicing rights(1) | 2,949,739 | — | — | 2,949,739 | ||||||||||||
Derivative financial instruments: | ||||||||||||||||
IRLCs | 87,902 | — | 87,902 | — | ||||||||||||
Forward MBS trades | 284 | — | 284 | — | ||||||||||||
LPCs | 1,999 | — | 1,999 | — | ||||||||||||
Interest rate swaps and caps | 865 | — | 865 | — | ||||||||||||
Eurodollar futures | 1 | — | 1 | — | ||||||||||||
Total assets | $ | 4,318,721 | $ | — | $ | 1,368,982 | $ | 2,949,739 | ||||||||
LIABILITIES | ||||||||||||||||
Derivative financial instruments | ||||||||||||||||
IRLCs | $ | 7 | $ | — | $ | 7 | $ | — | ||||||||
Interest rate swaps on ABS debt | 103 | — | 103 | — | ||||||||||||
Forward MBS trades | 18,360 | — | 18,360 | — | ||||||||||||
LPCs | 48 | — | 48 | — | ||||||||||||
Eurodollar futures | 7 | — | 7 | — | ||||||||||||
Mortgage servicing rights financing | 49,430 | — | — | 49,430 | ||||||||||||
Excess spread financing | 1,031,035 | — | — | 1,031,035 | ||||||||||||
Total liabilities | $ | 1,098,990 | $ | — | $ | 18,525 | $ | 1,080,465 | ||||||||
31-Dec-13 | ||||||||||||||||
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(1) | 2,488,283 | — | — | 2,488,283 | ||||||||||||
Other assets: | ||||||||||||||||
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 | 986,410 | — | — | 986,410 | ||||||||||||
Total liabilities | $ | 1,024,810 | $ | — | $ | 8,526 | $ | 1,016,284 | ||||||||
(1) | Based on the nature and risks of these assets and liabilities, 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 year ended December 31, 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 | (247,379 | ) | 57,554 | (33,279 | ) | |||||||||||
Included in other comprehensive income | — | — | — | |||||||||||||
Purchases, issuances, sales and settlements | ||||||||||||||||
Purchases | 470,543 | — | — | |||||||||||||
Issuances | 238,292 | 171,317 | 52,835 | |||||||||||||
Sales | — | — | — | |||||||||||||
Settlements | — | (184,246 | ) | — | ||||||||||||
Ending balance | $ | 2,949,739 | $ | 1,031,035 | $ | 49,430 | ||||||||||
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. | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
Carrying | Fair Value | |||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 299,002 | $ | 299,002 | $ | — | $ | — | ||||||||
Restricted cash | 285,530 | 285,530 | — | — | ||||||||||||
Mortgage loans held for sale | 1,277,931 | — | 1,277,931 | — | ||||||||||||
Mortgage loans held for investment, net | 191,569 | — | — | 192,865 | ||||||||||||
Reverse mortgage interests | 2,383,647 | — | — | 2,432,735 | ||||||||||||
Derivative instruments | 91,051 | — | 91,051 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Unsecured senior notes | 2,159,231 | 2,057,038 | — | — | ||||||||||||
Advance Facilities | 1,901,783 | — | 1,901,783 | — | ||||||||||||
Warehouse Facilities | 1,572,622 | — | 1,572,622 | — | ||||||||||||
Derivative financial instruments | 18,525 | — | 18,525 | — | ||||||||||||
Excess spread financing | 1,031,035 | — | — | 1,031,035 | ||||||||||||
Mortgage servicing rights financing liability | 49,430 | — | — | 49,430 | ||||||||||||
Nonrecourse debt - Legacy assets | 75,838 | — | — | 86,570 | ||||||||||||
Participating interest financing | 1,433,145 | — | 1,423,291 | — | ||||||||||||
2014-1 HECM Securitization | 259,328 | — | — | 259,328 | ||||||||||||
31-Dec-13 | ||||||||||||||||
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, subject to nonrecourse debt – Legacy assets | 211,050 | — | — | 180,435 | ||||||||||||
Reverse mortgage interests | 1,434,506 | — | — | 1,405,197 | ||||||||||||
Derivative instruments | 123,878 | — | 123,878 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Advance Facilities | 4,550,424 | — | 4,550,424 | |||||||||||||
Warehouse Facilities | 2,433,927 | 2,433,927 | ||||||||||||||
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 | ||||||||||||
Employee_Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Employee Benefits |
Nationstar has a defined contribution plan (401(k) plan) that covers all full-time employees. Nationstar matches 100% of participant contributions, up to 2% and 50% of the next 4% of each participant’s total eligible annual base compensation. Matching contributions totaled approximately $11.5 million, $11.1 million, and $3.7 million for the years ended December 31, 2014, 2013, and 2012, respectively. |
Sharebased_Compensation
Share-based Compensation | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Share-Based Compensation | |||||||
Nationstar has adopted the 2012 Incentive Compensation Plan (2012 Plan), that offers equity-based awards to certain key employees of Nationstar, consultants, and non-employee directors. The following table summarizes information about the awards under the 2012 Plan for the periods indicated: | ||||||||
Shares | Remaining Contractual Term (in years) (1) | |||||||
Grant Date Fair Value, per share | ||||||||
Restricted stock granted in conjunction with the initial public offering in March 2012 | 1,277 | $14.00 | 0.2 | |||||
Grants issued subsequent to public offering | 69 | $29.95 | 0.5 | |||||
Forfeited | -53 | $14.00 | ||||||
Restricted stock outstanding at December 31, 2012 | 1,293 | |||||||
Grants issued in 2013 | 307 | $37.88 | 1.2 | |||||
Forfeited | -56 | $20.46 | ||||||
Vested | -310 | |||||||
Shares surrendered to treasury to pay taxes | -168 | |||||||
Restricted stock outstanding at December 31, 2013 | 1,066 | |||||||
Grants issued in 2014 | 1,042 | $31.65 | 2.4 | |||||
Forfeited | -151 | $28.01 | ||||||
Vested | -354 | |||||||
Shares surrendered to treasury to pay taxes | -174 | |||||||
Restricted stock outstanding at December 31, 2014 | 1,429 | |||||||
Restricted stock unvested and expected to vest | 1,313 | |||||||
Restricted stock vested and payable at December 31, 2014 | — | |||||||
(1) Remaining contractual term is as of December 31, 2014. | ||||||||
The following table summarizes the vesting schedule of the restricted stock grants: | ||||||||
2015 | 2016 | 2017 | 2018 | |||||
Restricted Stock expected to vest | 662 | 328 | 254 | 69 | ||||
Total share-based compensation expense, net of forfeitures, for both the 2012 Plan and the predecessor plan recognized for the years ended December 31, 2014, 2013, and 2012 was $18.6 million, $10.6 million, and $13.3 million, respectively. Nationstar expects to recognize $12.5 million of compensation expense in 2015, $4.7 million in 2016, and $1.4 million in 2017, and $0.3 million in 2018 related to the 2012 Plan. |
Capital_Requirements
Capital Requirements | 12 Months Ended |
Dec. 31, 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. 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 terminate 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 agreements, the most restrictive of these requires Nationstar to maintain a minimum adjusted net worth balance of $665.7 million. As of December 31, 2014, Nationstar was in compliance with its selling and servicing capital requirements. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 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, Servicemembers' 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 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 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 the loss, an accrued liability is established. The actual costs of resolving these proceedings may be substantially higher or lower than the amounts accrued. | ||||
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 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 $29.2 million, $20.4 million, and $15.0 million for the years ended December 31, 2014, 2013, and 2012, respectively, were included in general and administrative expense on the consolidated statements of operations 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 $5.3 million to $12.4 million in excess of the accrued liability (if any) related to those matters as of December 31, 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. | ||||
Operating Lease Commitments | ||||
In 2014, Nationstar entered into a lease agreement for its corporate office located at Coppell, Texas. The lease term is for seven and a half years, with an early termination option available after the completion of five years. The lease agreement also provides a tenant improvement allowance as a lease incentive to apply against tenant improvement costs. | ||||
Nationstar leases various office facilities under non-cancelable lease agreements with primary terms extending through 2022. These lease agreements generally provide for market-rate renewal options, and may provide for escalations in minimum rentals over the lease term. See Note 19, Restructuring Charges. Minimum annual rental commitments for office leases with unrelated parties and with initial or remaining terms of one year or more, net of sublease payments, are presented below. | ||||
Year | Amount | |||
2015 | $ | 23,302 | ||
2016 | 22,302 | |||
2017 | 18,345 | |||
2018 | 17,034 | |||
Thereafter | 38,850 | |||
Total | $ | 119,833 | ||
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 $28.0 billion of UPB 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 December 31, 2014, the Company’s maximum unfunded advance obligation related to these MSRs was approximately $3.9 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. |
Restructuring_Charges
Restructuring Charges | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Charges | |||||||||||||||
To respond to the decreased demand in the changes in the mortgage loan originations market and other market conditions, Nationstar periodically initiates programs to reduce costs and improve operating effectiveness. These programs include the closing of offices and the termination of portions of Nationstar’s workforce. As part of these plans, Nationstar incurs lease and other contract termination costs. | ||||||||||||||||
Nationstar recorded restructuring charges related to canceled lease expenses totaling $(0.6) million, $4.1 million, and $0.5 million for the years ended December 31, 2014, 2013, and 2012, respectively, that are reflected in general and administrative expenses. | ||||||||||||||||
Due to increased productivity per employee and economies of scale in the Servicing Segment, Nationstar began consolidating certain locations in November 2013. The Company recorded $8.8 million in restructuring charges for the year ended December 31, 2013 related to employee severance that is reflected in salaries, wages and benefits. No employee severance was recorded related to restructuring charges for December 31, 2014 or December 31, 2012. The following table summarizes, by category, the Company’s restructuring charges activity for the periods indicated below. | ||||||||||||||||
Liability | Restructuring | Restructuring | Liability | |||||||||||||
Balance at January 1 | Adjustments | Settlements | Balance at December 31 | |||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||
Restructuring charges: | ||||||||||||||||
Employee Severance and Other | $ | 4,650 | $ | — | $ | (4,650 | ) | $ | — | |||||||
Lease terminations | 8,636 | (581 | ) | (4,076 | ) | 3,979 | ||||||||||
Total | $ | 13,286 | $ | (581 | ) | $ | (8,726 | ) | $ | 3,979 | ||||||
For the year ended December 31, 2013 | ||||||||||||||||
Restructuring charges: | ||||||||||||||||
Employee Severance and Other | $ | — | $ | 8,765 | $ | (4,115 | ) | $ | 4,650 | |||||||
Lease terminations | 7,186 | 4,108 | (2,658 | ) | 8,636 | |||||||||||
Total | $ | 7,186 | $ | 12,873 | $ | (6,773 | ) | $ | 13,286 | |||||||
For the year ended December 31, 2012 | ||||||||||||||||
Restructuring charges: | ||||||||||||||||
Employee Severance and Other | $ | — | $ | — | $ | — | $ | — | ||||||||
Lease terminations | 8,460 | 500 | (1,774 | ) | 7,186 | |||||||||||
Total | $ | 8,460 | $ | 500 | $ | (1,774 | ) | $ | 7,186 | |||||||
Business_Segment_Reporting
Business Segment Reporting | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 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: | ||||||||||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||||||||||
Servicing | Originations | Solutionstar | Total Operating | Corporate and Other | Eliminations | Consolidated | ||||||||||||||||||||||
Segments | ||||||||||||||||||||||||||||
REVENUES: | ||||||||||||||||||||||||||||
Service related | $ | 1,006,837 | $ | 43,954 | $ | 321,801 | $ | 1,372,592 | $ | 4,713 | $ | (1,443 | ) | $ | 1,375,862 | |||||||||||||
Net gain on mortgage loans held for sale | 64,506 | 535,273 | — | 599,779 | (2,573 | ) | — | 597,206 | ||||||||||||||||||||
Total revenues | 1,071,343 | 579,227 | 321,801 | 1,972,371 | 2,140 | (1,443 | ) | 1,973,068 | ||||||||||||||||||||
Total expenses and impairments | 697,878 | 390,497 | 188,866 | 1,277,241 | 80,450 | — | 1,357,691 | |||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest income | 91,713 | 72,031 | — | 163,744 | 14,405 | 1,443 | 179,592 | |||||||||||||||||||||
Interest expense | (246,099 | ) | (70,237 | ) | (360 | ) | (316,696 | ) | (199,691 | ) | — | (516,387 | ) | |||||||||||||||
Gain on sale of property | — | — | — | — | 4,898 | — | 4,898 | |||||||||||||||||||||
Gain (loss) on interest rate swaps and caps | 1,672 | — | — | 1,672 | 732 | — | 2,404 | |||||||||||||||||||||
Total other income (expense) | (152,714 | ) | 1,794 | (360 | ) | (151,280 | ) | (179,656 | ) | 1,443 | (329,493 | ) | ||||||||||||||||
Income (loss) before taxes | $ | 220,751 | $ | 190,524 | $ | 132,575 | $ | 543,850 | $ | (257,966 | ) | $ | — | $ | 285,884 | |||||||||||||
Depreciation and amortization | $ | 13,997 | $ | 9,642 | $ | 3,730 | $ | 27,369 | $ | 12,797 | $ | — | $ | 40,166 | ||||||||||||||
Total assets | 8,774,135 | 1,400,880 | 218,446 | 10,393,461 | 719,214 | — | 11,112,675 | |||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||||||||||
Servicing | Originations | Solutionstar | Total Operating | Corporate and Other | Eliminations | Consolidated | ||||||||||||||||||||||
Segments | ||||||||||||||||||||||||||||
REVENUES: | ||||||||||||||||||||||||||||
Service related | $ | 1,175,487 | $ | 62,011 | $ | 146,608 | $ | 1,384,106 | $ | 1,750 | $ | (1,634 | ) | $ | 1,384,222 | |||||||||||||
Net gain on mortgage loans held for sale | 61,624 | 650,357 | — | 711,981 | (9,218 | ) | — | 702,763 | ||||||||||||||||||||
Total revenues | 1,237,111 | 712,368 | 146,608 | 2,096,087 | (7,468 | ) | (1,634 | ) | 2,086,985 | |||||||||||||||||||
Total expenses and impairments | 608,978 | 589,986 | 112,739 | 1,311,703 | 90,575 | — | 1,402,278 | |||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest income | 90,913 | 87,713 | — | 178,626 | 16,960 | 1,634 | 197,220 | |||||||||||||||||||||
Interest expense | (279,501 | ) | (79,106 | ) | (264 | ) | (358,871 | ) | (179,934 | ) | — | (538,805 | ) | |||||||||||||||
Gain (loss) on interest rate swaps and caps | 1,856 | — | — | 1,856 | 1,276 | — | 3,132 | |||||||||||||||||||||
Total other income (expense) | (186,732 | ) | 8,607 | (264 | ) | (178,389 | ) | (161,698 | ) | 1,634 | (338,453 | ) | ||||||||||||||||
Income (loss) before taxes | $ | 441,401 | $ | 130,989 | $ | 33,605 | $ | 605,995 | $ | (259,741 | ) | $ | — | $ | 346,254 | |||||||||||||
Depreciation and amortization | $ | 14,955 | $ | 6,569 | $ | 1,161 | $ | 22,685 | $ | 3,930 | $ | — | $ | 26,615 | ||||||||||||||
Total assets | 9,969,390 | 2,777,928 | 41,499 | 12,788,817 | 1,237,872 | — | 14,026,689 | |||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||||||||||
Servicing | Originations | Solutionstar | Total Operating | Corporate and Other | Eliminations | Consolidated | ||||||||||||||||||||||
Segments | ||||||||||||||||||||||||||||
REVENUES: | ||||||||||||||||||||||||||||
Service related | $ | 488,768 | $ | (291 | ) | $ | 8,366 | $ | 496,843 | $ | 2,101 | $ | (1,793 | ) | $ | 497,151 | ||||||||||||
Net gain on mortgage loans held for sale | — | 487,142 | — | 487,142 | — | 22 | 487,164 | |||||||||||||||||||||
Total revenues | 488,768 | 486,851 | 8,366 | 983,985 | 2,101 | (1,771 | ) | 984,315 | ||||||||||||||||||||
Total expenses and impairments | 315,101 | 195,480 | 4,463 | 515,044 | 67,001 | — | 582,045 | |||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest income | 30,936 | 20,426 | — | 51,362 | 18,431 | 1,793 | 71,586 | |||||||||||||||||||||
Interest expense | (102,570 | ) | (18,478 | ) | — | (121,048 | ) | (76,238 | ) | (22 | ) | (197,308 | ) | |||||||||||||||
Contract termination fees | 15,600 | — | — | 15,600 | — | — | 15,600 | |||||||||||||||||||||
Loss on equity method investments | (14,571 | ) | — | — | (14,571 | ) | — | — | (14,571 | ) | ||||||||||||||||||
Gain (loss) on interest rate swaps and caps | 1,237 | — | — | 1,237 | (2,231 | ) | — | (994 | ) | |||||||||||||||||||
Total other income (expense) | (69,368 | ) | 1,948 | — | (67,420 | ) | (60,038 | ) | 1,771 | (125,687 | ) | |||||||||||||||||
Income (loss) before taxes | $ | 104,299 | $ | 293,319 | $ | 3,903 | $ | 401,521 | $ | (124,938 | ) | $ | — | $ | 276,583 | |||||||||||||
Depreciation and amortization | $ | 6,126 | $ | 2,754 | $ | — | $ | 8,880 | $ | 740 | $ | — | $ | 9,620 | ||||||||||||||
Total assets | 4,981,987 | 1,721,541 | — | 6,703,528 | 422,615 | — | 7,126,143 | |||||||||||||||||||||
Guarantor_Financial_Statement_
Guarantor Financial Statement Information | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||||||
Guarantor Financial Statement Information | Guarantor Financial Statement Information | |||||||||||||||||||||||
As of December 31, 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 | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Assets | Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 279,770 | $ | 288 | $ | 18,944 | $ | — | $ | 299,002 | ||||||||||||
Restricted cash | — | 177,090 | — | 108,440 | — | 285,530 | ||||||||||||||||||
Mortgage servicing rights | — | 2,961,321 | — | — | — | 2,961,321 | ||||||||||||||||||
Advances | — | 2,544,065 | — | 2,297 | — | 2,546,362 | ||||||||||||||||||
Reverse mortgage interests | — | 2,104,082 | — | 279,565 | — | 2,383,647 | ||||||||||||||||||
Mortgage loans held for sale | — | 1,243,700 | — | 34,231 | — | 1,277,931 | ||||||||||||||||||
Mortgage loans held for investment, net | — | 1,945 | — | 189,624 | — | 191,569 | ||||||||||||||||||
Property and equipment, net | — | 114,903 | 835 | 13,873 | — | 129,611 | ||||||||||||||||||
Derivative financial instruments | — | 87,911 | — | 3,140 | — | 91,051 | ||||||||||||||||||
Other assets | 16,383 | 1,076,780 | 272,654 | 1,389,781 | (1,808,947 | ) | 946,651 | |||||||||||||||||
Investment in subsidiaries | 1,207,895 | 450,363 | — | — | (1,658,258 | ) | — | |||||||||||||||||
Total assets | $ | 1,224,278 | $ | 11,041,930 | $ | 273,777 | $ | 2,039,895 | $ | (3,467,205 | ) | $ | 11,112,675 | |||||||||||
Liabilities and stockholders’ equity | ||||||||||||||||||||||||
Unsecured senior notes | $ | — | $ | 2,159,231 | $ | — | $ | — | $ | — | 2,159,231 | |||||||||||||
Advance facilities | — | 570,792 | — | 1,330,991 | — | 1,901,783 | ||||||||||||||||||
Warehouse facilities | — | 1,539,994 | — | 32,628 | — | 1,572,622 | ||||||||||||||||||
Payables and accrued liabilities | — | 1,282,895 | 25 | 39,158 | — | 1,322,078 | ||||||||||||||||||
MSR related liabilities - nonrecourse | — | 1,080,465 | — | — | — | 1,080,465 | ||||||||||||||||||
Mortgage servicing liabilities | — | 65,382 | — | — | — | 65,382 | ||||||||||||||||||
Derivative financial instruments | — | 18,525 | — | — | — | 18,525 | ||||||||||||||||||
Other nonrecourse debt | — | 1,433,145 | — | 335,166 | — | 1,768,311 | ||||||||||||||||||
Payables to affiliates | — | 1,683,606 | 894 | 124,447 | (1,808,947 | ) | — | |||||||||||||||||
Total liabilities | — | 9,834,035 | 919 | 1,862,390 | (1,808,947 | ) | 9,888,397 | |||||||||||||||||
Total equity | 1,224,278 | 1,207,895 | 272,858 | 177,505 | (1,658,258 | ) | 1,224,278 | |||||||||||||||||
Total liabilities and equity | $ | 1,224,278 | $ | 11,041,930 | $ | 273,777 | $ | 2,039,895 | $ | (3,467,205 | ) | $ | 11,112,675 | |||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. | ||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2014 | ||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Service related | $ | — | $ | 1,030,214 | $ | 47,588 | $ | 297,869 | $ | 191 | $ | 1,375,862 | ||||||||||||
Net gain on mortgage loans held for sale | — | 583,790 | — | 13,416 | — | 597,206 | ||||||||||||||||||
Total Revenues | — | 1,614,004 | 47,588 | 311,285 | 191 | 1,973,068 | ||||||||||||||||||
Expenses and Impairments: | ||||||||||||||||||||||||
Salaries, wages and benefits | — | 556,047 | 4,404 | 82,485 | — | 642,936 | ||||||||||||||||||
General and administrative | — | 559,150 | 1,586 | 121,766 | — | 682,502 | ||||||||||||||||||
Occupancy | — | 28,177 | 286 | 3,790 | — | 32,253 | ||||||||||||||||||
Total expenses and impairments | — | 1,143,374 | 6,276 | 208,041 | — | 1,357,691 | ||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest income | — | 158,508 | — | 21,275 | (191 | ) | 179,592 | |||||||||||||||||
Interest expense | — | (460,781 | ) | — | (55,606 | ) | — | (516,387 | ) | |||||||||||||||
Gain on disposal of property | — | 4,898 | — | — | — | 4,898 | ||||||||||||||||||
Gain on interest rate swaps and caps | — | 732 | — | 1,672 | — | 2,404 | ||||||||||||||||||
Gain/(loss) from subsidiaries | 220,718 | 111,897 | — | — | (332,615 | ) | — | |||||||||||||||||
Total other income (expense) | 220,718 | (184,746 | ) | — | (32,659 | ) | (332,806 | ) | (329,493 | ) | ||||||||||||||
Income/(loss) before taxes | 220,718 | 285,884 | 41,312 | 70,585 | (332,615 | ) | 285,884 | |||||||||||||||||
Income tax expense | — | 64,860 | — | — | — | 64,860 | ||||||||||||||||||
Net income/(loss) | 220,718 | 221,024 | 41,312 | 70,585 | (332,615 | ) | 221,024 | |||||||||||||||||
Less: Net gain attributable to noncontrolling interests | — | 306 | — | — | — | 306 | ||||||||||||||||||
Net income/(loss) excluding noncontrolling interests | $ | 220,718 | $ | 220,718 | $ | 41,312 | $ | 70,585 | $ | (332,615 | ) | $ | 220,718 | |||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. | ||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2014 | ||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
(Parent) | (Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||
Net income/(loss) | $ | 220,718 | $ | 220,718 | $ | 41,312 | $ | 70,585 | $ | (332,615 | ) | $ | 220,718 | |||||||||||
Reconciliation of net income to net cash attributable to operating activities: | ||||||||||||||||||||||||
(Gain)/loss from subsidiaries | (220,718 | ) | (111,897 | ) | — | — | 332,615 | — | ||||||||||||||||
Share-based compensation | — | 18,565 | — | — | — | 18,565 | ||||||||||||||||||
Net tax effect of stock grants | — | (2,243 | ) | — | — | — | (2,243 | ) | ||||||||||||||||
Loss on foreclosed real estate and other | — | 3,099 | — | 7,189 | — | 10,288 | ||||||||||||||||||
Gain on mortgage loans held for sale | — | (583,790 | ) | — | (13,416 | ) | — | (597,206 | ) | |||||||||||||||
Mortgage loans originated and purchased, net of fees | — | (20,785,640 | ) | — | — | — | (20,785,640 | ) | ||||||||||||||||
Proceeds on sale of and payments of mortgage loans held for sale | — | 22,295,866 | — | (5,614 | ) | — | 22,290,252 | |||||||||||||||||
(Gain)/loss on derivatives including ineffectiveness | — | (732 | ) | — | (1,672 | ) | — | (2,404 | ) | |||||||||||||||
Cash settlement on derivative financial instruments | — | — | — | 1,352 | — | 1,352 | ||||||||||||||||||
Depreciation and amortization | — | 36,381 | 88 | 3,697 | — | 40,166 | ||||||||||||||||||
Amortization/(accretion) of premiums/(discounts) | — | 15,520 | — | (2,190 | ) | — | 13,330 | |||||||||||||||||
Fair value changes in excess spread financing | — | 57,554 | — | — | — | 57,554 | ||||||||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights | — | 233,537 | — | — | — | 233,537 | ||||||||||||||||||
Fair value change in mortgage servicing rights financing liability | — | (33,279 | ) | — | — | — | (33,279 | ) | ||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||
Advances | — | 325,807 | — | (3,288 | ) | — | 322,519 | |||||||||||||||||
Reverse mortgage interests | — | (576,083 | ) | — | (376,108 | ) | — | (952,191 | ) | |||||||||||||||
Other assets | 5,489 | (1,898,643 | ) | (39,029 | ) | 2,206,946 | (31,463 | ) | 243,300 | |||||||||||||||
Payables and accrued liabilities | — | (71,071 | ) | (5,925 | ) | 25,550 | 31,463 | (19,983 | ) | |||||||||||||||
Net cash attributable to operating activities | 5,489 | (856,331 | ) | (3,554 | ) | 1,913,031 | — | 1,058,635 | ||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
(Parent) | (Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||
Property and equipment additions, net of disposals | — | (41,739 | ) | (68 | ) | (14,598 | ) | — | (56,405 | ) | ||||||||||||||
Proceeds from sale of building | — | 10,412 | — | — | — | 10,412 | ||||||||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | — | (471,249 | ) | — | — | — | (471,249 | ) | ||||||||||||||||
Loan repurchases from Ginnie Mae | — | (44,079 | ) | — | — | — | (44,079 | ) | ||||||||||||||||
Proceeds from sales of REO | — | 65,653 | — | — | — | 65,653 | ||||||||||||||||||
Proceeds from sale of servicer advances | — | 768,449 | — | — | — | 768,449 | ||||||||||||||||||
Acquisitions, net | — | (15,854 | ) | — | (2,146 | ) | — | (18,000 | ) | |||||||||||||||
Net cash attributable to investing activities | — | 271,593 | (68 | ) | (16,744 | ) | — | 254,781 | ||||||||||||||||
Financing activities: | ||||||||||||||||||||||||
Transfers to/from restricted cash, net | — | 118,617 | 3 | 172,183 | — | 290,803 | ||||||||||||||||||
Repayment of unsecured senior notes | — | (285,000 | ) | — | — | — | (285,000 | ) | ||||||||||||||||
Debt financing costs | — | (13,067 | ) | — | — | — | (13,067 | ) | ||||||||||||||||
Increase/(decrease) in notes payable, net | — | 226,596 | — | (2,101,754 | ) | — | (1,875,158 | ) | ||||||||||||||||
Proceeds from 2014-1 HECM Securitization | — | — | — | 61,680 | — | 61,680 | ||||||||||||||||||
Repayment of 2014-1 HECM Securitization | — | — | — | (9,750 | ) | — | (9,750 | ) | ||||||||||||||||
Issuance of excess spread financing | — | 171,317 | — | — | — | 171,317 | ||||||||||||||||||
Repayment of excess spread financing | — | (184,246 | ) | — | — | — | (184,246 | ) | ||||||||||||||||
Increase in participating interest financing in reverse mortgage interests | — | 352,945 | — | — | — | 352,945 | ||||||||||||||||||
Proceeds from mortgage service rights financing | — | 52,835 | — | — | — | 52,835 | ||||||||||||||||||
Repayment of nonrecourse debt–Legacy assets | — | — | — | (15,429 | ) | — | (15,429 | ) | ||||||||||||||||
Net tax benefit for stock grants issued | — | 2,243 | — | — | — | 2,243 | ||||||||||||||||||
Redemption of shares for stock vesting | (5,489 | ) | — | — | — | — | (5,489 | ) | ||||||||||||||||
Net cash attributable to financing activities | (5,489 | ) | 442,240 | 3 | (1,893,070 | ) | — | (1,456,316 | ) | |||||||||||||||
Net increase/(decrease) in cash | — | (142,498 | ) | (3,619 | ) | 3,217 | — | (142,900 | ) | |||||||||||||||
Cash and cash equivalents at beginning of period | — | 422,268 | 3,907 | 15,727 | — | 441,902 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 279,770 | $ | 288 | $ | 18,944 | $ | — | $ | 299,002 | ||||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC | ||||||||||||||||||||||||
CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
(Parent) | (Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 422,268 | $ | 3,907 | $ | 15,727 | $ | — | $ | 441,902 | ||||||||||||
Restricted cash | — | 312,120 | 3 | 280,624 | — | 592,747 | ||||||||||||||||||
Mortgage servicing rights | — | 2,503,162 | — | — | — | 2,503,162 | ||||||||||||||||||
Advances | — | 5,003,193 | — | (991 | ) | — | 5,002,202 | |||||||||||||||||
Reverse mortgage interests | — | 1,528,000 | — | — | — | 1,528,000 | ||||||||||||||||||
Mortgage loans held for sale | — | 2,603,380 | — | — | — | 2,603,380 | ||||||||||||||||||
Mortgage loans held for investment, net | — | 2,786 | — | 208,264 | — | 211,050 | ||||||||||||||||||
Property and equipment, net | — | 115,765 | 855 | 2,565 | — | 119,185 | ||||||||||||||||||
Derivative financial instruments | — | 120,187 | — | 3,691 | — | 123,878 | ||||||||||||||||||
Other assets | 21,872 | 1,306,997 | 325,928 | 7,440,111 | (8,193,725 | ) | 901,183 | |||||||||||||||||
Investment in subsidiaries | 968,026 | 181,545 | — | — | (1,149,571 | ) | — | |||||||||||||||||
Total Assets | $ | 989,898 | $ | 14,099,403 | $ | 330,693 | $ | 7,949,991 | $ | (9,343,296 | ) | $ | 14,026,689 | |||||||||||
Liabilities and members’ equity | ||||||||||||||||||||||||
Unsecured senior notes | $ | — | $ | 2,444,062 | $ | — | $ | — | $ | — | $ | 2,444,062 | ||||||||||||
Advance facilities | — | 877,698 | — | 3,672,726 | — | 4,550,424 | ||||||||||||||||||
Warehouse facilities | — | 2,433,927 | — | — | — | 2,433,927 | ||||||||||||||||||
Payables and accrued liabilities | — | 1,319,172 | 5,950 | 14,791 | (31,463 | ) | 1,308,450 | |||||||||||||||||
MSR related liabilities - nonrecourse | — | 1,016,284 | — | — | — | 1,016,284 | ||||||||||||||||||
Mortgage servicing liabilities | — | 82,521 | — | — | — | 82,521 | ||||||||||||||||||
Derivative financial instruments | — | 8,526 | — | — | — | 8,526 | ||||||||||||||||||
Other nonrecourse debt | — | 1,103,490 | — | 89,107 | — | 1,192,597 | ||||||||||||||||||
Payables to affiliates | — | 3,845,697 | 116,349 | 4,200,216 | (8,162,262 | ) | — | |||||||||||||||||
Total liabilities | — | 13,131,377 | 122,299 | 7,976,840 | (8,193,725 | ) | 13,036,791 | |||||||||||||||||
Total equity | 989,898 | 968,026 | 208,394 | (26,849 | ) | (1,149,571 | ) | 989,898 | ||||||||||||||||
Total liabilities and equity | $ | 989,898 | $ | 14,099,403 | $ | 330,693 | $ | 7,949,991 | $ | (9,343,296 | ) | $ | 14,026,689 | |||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. | ||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2013 | ||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
(Parent) | (Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Service related | $ | — | $ | 1,211,717 | $ | 129,689 | $ | 101,704 | $ | (58,888 | ) | $ | 1,384,222 | |||||||||||
Net gain on mortgage loans held for sale | — | 645,509 | — | — | 57,254 | 702,763 | ||||||||||||||||||
Total Revenues | — | 1,857,226 | 129,689 | 101,704 | (1,634 | ) | 2,086,985 | |||||||||||||||||
Expenses and impairments: | ||||||||||||||||||||||||
Salaries, wages and benefits | — | 637,794 | 12,534 | 29,309 | — | 679,637 | ||||||||||||||||||
General and administrative | — | 612,307 | 3,630 | 75,859 | — | 691,796 | ||||||||||||||||||
Occupancy | — | 29,121 | 431 | 1,293 | — | 30,845 | ||||||||||||||||||
Total expenses and impairments | — | 1,279,222 | 16,595 | 106,461 | — | 1,402,278 | ||||||||||||||||||
Other income / (expense): | ||||||||||||||||||||||||
Interest income | — | 179,445 | — | 16,141 | 1,634 | 197,220 | ||||||||||||||||||
Interest expense | — | (420,214 | ) | — | (118,591 | ) | — | (538,805 | ) | |||||||||||||||
Gain/(loss) on interest rate swaps and caps | — | 1,012 | — | 2,120 | — | 3,132 | ||||||||||||||||||
Gain / (loss) from subsidiaries | 217,054 | 8,007 | — | — | (225,061 | ) | — | |||||||||||||||||
Total other income / (expense) | 217,054 | (231,750 | ) | — | (100,330 | ) | (223,427 | ) | (338,453 | ) | ||||||||||||||
Income before taxes | 217,054 | 346,254 | 113,094 | (105,087 | ) | (225,061 | ) | 346,254 | ||||||||||||||||
Income tax expense/(benefit) | — | 129,200 | — | — | — | 129,200 | ||||||||||||||||||
Net Income | $ | 217,054 | $ | 217,054 | $ | 113,094 | $ | (105,087 | ) | $ | (225,061 | ) | $ | 217,054 | ||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC | ||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2013 | ||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
(Parent) | (Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||
Net income/(loss) | $ | 217,054 | $ | 217,054 | $ | 113,094 | $ | (105,087 | ) | $ | (225,061 | ) | $ | 217,054 | ||||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||||||||||||||||||||||
(Gain)/loss from subsidiaries | (217,054 | ) | (8,007 | ) | — | — | 225,061 | — | ||||||||||||||||
Share-based compensation | — | 10,574 | — | — | — | 10,574 | ||||||||||||||||||
Net tax effect of stock grants | — | (4,579 | ) | — | — | (4,579 | ) | |||||||||||||||||
Loss on foreclosed real estate and other | — | 7,317 | — | 5,999 | — | 13,316 | ||||||||||||||||||
(Gain) on mortgage loans held for sale | — | (645,509 | ) | — | — | (57,254 | ) | (702,763 | ) | |||||||||||||||
Mortgage loans originated and purchased, net of fees | — | (25,466,754 | ) | — | — | — | (25,466,754 | ) | ||||||||||||||||
Proceeds on sale of and payments of mortgage loans held for sale | — | 24,947,796 | — | 13,325 | 57,254 | 25,018,375 | ||||||||||||||||||
Loss on derivatives including ineffectiveness | — | (3,415 | ) | — | (2,665 | ) | — | (6,080 | ) | |||||||||||||||
Cash settlement on derivative financial instruments | — | — | — | (4,544 | ) | — | (4,544 | ) | ||||||||||||||||
Depreciation and amortization | — | 25,479 | 979 | 157 | — | 26,615 | ||||||||||||||||||
Amortization/accretion of premiums/discounts | — | 56,348 | — | (3,817 | ) | — | 52,531 | |||||||||||||||||
Fair value changes in excess spread financing | — | 73,333 | — | — | — | 73,333 | ||||||||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights | — | (59,101 | ) | — | — | — | (59,101 | ) | ||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||
Advances | — | (4,497,046 | ) | — | 4,031,271 | — | (465,775 | ) | ||||||||||||||||
Reverse mortgage interests | — | (734,220 | ) | — | — | — | (734,220 | ) | ||||||||||||||||
Other assets | 2,365 | 4,902,381 | (113,703 | ) | (5,257,613 | ) | 17,327 | (449,243 | ) | |||||||||||||||
Payables and accrued liabilities | — | 650,287 | 4,135 | 10,225 | (17,327 | ) | 647,320 | |||||||||||||||||
Net cash attributable to operating activities | 2,365 | (528,062 | ) | 4,505 | (1,312,749 | ) | — | (1,833,941 | ) | |||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
(Parent) | (Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||
Property and equipment additions, net of disposals | — | (45,138 | ) | (999 | ) | (2,722 | ) | — | (48,859 | ) | ||||||||||||||
Purchase of reverse mortgage rights and interests | — | (19,189 | ) | — | — | — | (19,189 | ) | ||||||||||||||||
Purchase of forward mortgage servicing rights | — | (1,527,645 | ) | — | — | — | (1,527,645 | ) | ||||||||||||||||
Loan repurchases from Ginnie Mae | — | (19,863 | ) | — | — | — | (19,863 | ) | ||||||||||||||||
Proceeds from sales of REO | — | 52,767 | — | — | — | 52,767 | ||||||||||||||||||
Proceeds from sale of servicer advances | — | 277,455 | — | — | — | 277,455 | ||||||||||||||||||
Acquisitions, net | — | (88,200 | ) | — | — | — | (88,200 | ) | ||||||||||||||||
Net cash attributable to investing activities | — | (1,369,813 | ) | (999 | ) | (2,722 | ) | — | (1,373,534 | ) | ||||||||||||||
Financing activities: | ||||||||||||||||||||||||
Transfers (to)/from restricted cash | — | (199,600 | ) | — | (33,095 | ) | — | (232,695 | ) | |||||||||||||||
Issuance of unsecured senior notes, net | — | 1,365,244 | — | — | — | 1,365,244 | ||||||||||||||||||
Debt financing costs | — | (53,529 | ) | — | — | — | (53,529 | ) | ||||||||||||||||
Increase (decrease) in notes payable | — | (136,947 | ) | — | 1,377,697 | — | 1,240,750 | |||||||||||||||||
Issuance of excess spread financing | — | 753,002 | — | — | 753,002 | |||||||||||||||||||
Repayment of excess servicing spread financing | — | (130,355 | ) | — | — | — | (130,355 | ) | ||||||||||||||||
Increase in participating interest financing in reverse mortgage interests | — | 535,216 | — | — | — | 535,216 | ||||||||||||||||||
Proceeds from mortgage servicing rights financing | — | 29,874 | — | — | — | 29,874 | ||||||||||||||||||
Repayment of nonrecourse debt–Legacy assets | — | — | — | (13,404 | ) | — | (13,404 | ) | ||||||||||||||||
Contributions from joint venture member to noncontrolling interest | — | 4,990 | — | — | — | 4,990 | ||||||||||||||||||
Net tax benefit for stock grants issued | 4,579 | — | — | — | — | 4,579 | ||||||||||||||||||
Redemption of shares for stock vesting | (6,944 | ) | — | — | — | — | (6,944 | ) | ||||||||||||||||
Net cash attributable to financing activities | (2,365 | ) | 2,167,895 | — | 1,331,198 | — | 3,496,728 | |||||||||||||||||
Net increase in cash and cash equivalents | — | 270,020 | 3,506 | 15,727 | — | 289,253 | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | 152,248 | 401 | — | — | 152,649 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 422,268 | $ | 3,907 | $ | 15,727 | $ | — | $ | 441,902 | ||||||||||||
NATIONSTAR MORTGAGE LLC | ||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2012 | ||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor (Subsidiaries) | Eliminations | Consolidated | |||||||||||||||||||
(Subsidiaries) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Service related | $ | — | $ | 462,585 | $ | 35,891 | $ | 468 | $ | (1,793 | ) | $ | 497,151 | |||||||||||
Net gain on mortgage loans held for sale | — | 487,164 | — | — | — | 487,164 | ||||||||||||||||||
Total Revenues | — | 949,749 | 35,891 | 468 | (1,793 | ) | 984,315 | |||||||||||||||||
Expenses and impairments: | ||||||||||||||||||||||||
Salaries, wages and benefits | — | 349,012 | 9,443 | — | — | 358,455 | ||||||||||||||||||
General and administrative | — | 197,914 | 2,625 | 6,265 | — | 206,804 | ||||||||||||||||||
Occupancy | — | 16,734 | 52 | — | — | 16,786 | ||||||||||||||||||
Total expenses and impairments | — | 563,660 | 12,120 | 6,265 | — | 582,045 | ||||||||||||||||||
Other income / (expense): | ||||||||||||||||||||||||
Interest income | — | 51,307 | — | 18,486 | 1,793 | 71,586 | ||||||||||||||||||
Interest expense | — | (137,638 | ) | — | (59,670 | ) | — | (197,308 | ) | |||||||||||||||
Contract termination fees, net | — | 15,600 | — | — | — | 15,600 | ||||||||||||||||||
Loss on equity method investments | — | (14,571 | ) | — | — | — | (14,571 | ) | ||||||||||||||||
Gain/(loss) on interest rate swaps and caps | — | (1,415 | ) | — | 421 | — | (994 | ) | ||||||||||||||||
Gain / (loss) from subsidiaries | 179,359 | (22,789 | ) | — | — | (156,570 | ) | — | ||||||||||||||||
Total other income / (expense) | 179,359 | (109,506 | ) | — | (40,763 | ) | (154,777 | ) | (125,687 | ) | ||||||||||||||
Income before taxes | 179,359 | 276,583 | 23,771 | (46,560 | ) | (156,570 | ) | 276,583 | ||||||||||||||||
Income tax expense/(benefit) | (25,928 | ) | 97,224 | — | — | — | 71,296 | |||||||||||||||||
Net income/(loss) | $ | 205,287 | $ | 179,359 | $ | 23,771 | $ | (46,560 | ) | $ | (156,570 | ) | $ | 205,287 | ||||||||||
NATIONSTAR MORTGAGE LLC | ||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2012 | ||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
(Subsidiaries) | Guarantor | |||||||||||||||||||||||
(Subsidiaries) | ||||||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||
Net income/(loss) | $ | 205,287 | $ | 179,359 | $ | 23,771 | $ | (46,560 | ) | $ | (156,570 | ) | $ | 205,287 | ||||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||||||||||||||||||||||
Gain/(loss) from subsidiaries | (179,359 | ) | 22,789 | — | — | 156,570 | — | |||||||||||||||||
Share-based compensation | — | 13,342 | — | — | — | 13,342 | ||||||||||||||||||
Net tax effect of stock grants | — | (2,846 | ) | — | — | — | (2,846 | ) | ||||||||||||||||
Loss on foreclosed real estate and other | — | (1,034 | ) | — | 6,251 | — | 5,217 | |||||||||||||||||
Gain on mortgage loans held for sale | — | (487,164 | ) | — | — | — | (487,164 | ) | ||||||||||||||||
Mortgage loans originated and purchased, net of fees | — | (7,904,052 | ) | — | — | — | (7,904,052 | ) | ||||||||||||||||
Proceeds on sale of and payments of mortgage loans held for sale | — | 7,185,335 | — | 12,387 | — | 7,197,722 | ||||||||||||||||||
(Gain)/loss on derivatives including ineffectiveness | — | 1,415 | — | (421 | ) | — | 994 | |||||||||||||||||
Loss on equity method investments | — | 14,571 | — | — | — | 14,571 | ||||||||||||||||||
Depreciation and amortization | — | 9,620 | — | — | — | 9,620 | ||||||||||||||||||
Amortization/accretion of premiums/(discounts) | — | 13,003 | — | (3,368 | ) | — | 9,635 | |||||||||||||||||
Fair value changes in excess spread financing | — | 10,683 | — | — | — | 10,683 | ||||||||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights | — | 63,122 | — | — | — | 63,122 | ||||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||
Advances | — | (558,207 | ) | — | (1 | ) | — | (558,208 | ) | |||||||||||||||
Reverse mortgage interests | — | (636,533 | ) | — | — | — | (636,533 | ) | ||||||||||||||||
Other assets | (28,774 | ) | 1,622,707 | (25,429 | ) | (1,781,447 | ) | 14,136 | (198,807 | ) | ||||||||||||||
Payables and accrued liabilities | 2,846 | 308,636 | 1,815 | 140 | (14,136 | ) | 299,301 | |||||||||||||||||
Net cash attributable to operating activities | — | (145,254 | ) | 157 | (1,813,019 | ) | — | (1,958,116 | ) | |||||||||||||||
Nationstar | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
(Subsidiaries) | Guarantor | |||||||||||||||||||||||
(Subsidiaries) | ||||||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||
Property and equipment additions, net of disposals | — | (25,356 | ) | — | — | — | (25,356 | ) | ||||||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | — | (2,070,375 | ) | — | — | — | (2,070,375 | ) | ||||||||||||||||
Purchase of reverse mortgage rights and interests | — | (37,911 | ) | — | — | — | (37,911 | ) | ||||||||||||||||
Loan repurchases from Ginnie Mae | — | (24,329 | ) | — | — | — | (24,329 | ) | ||||||||||||||||
Proceeds from sales of REO | — | (884 | ) | — | 1,563 | — | 679 | |||||||||||||||||
Net cash attributable to investing activities | — | (2,158,855 | ) | — | 1,563 | — | (2,157,292 | ) | ||||||||||||||||
Financing activities: | ||||||||||||||||||||||||
Transfers to/from restricted cash | — | (96,477 | ) | — | (225,214 | ) | — | (321,691 | ) | |||||||||||||||
Debt financing costs | — | (23,213 | ) | — | — | — | (23,213 | ) | ||||||||||||||||
Issuance of unsecured notes, net | — | 770,699 | — | — | — | 770,699 | ||||||||||||||||||
Increase in notes payable, net | — | 677,952 | — | 2,050,455 | — | 2,728,407 | ||||||||||||||||||
Issuance of excess spread financing | — | 272,617 | — | — | — | 272,617 | ||||||||||||||||||
Repayment of excess spread financing | — | (39,865 | ) | — | — | — | (39,865 | ) | ||||||||||||||||
Issuance of participating interest financing in reverse mortgage interests | — | 582,897 | — | — | — | 582,897 | ||||||||||||||||||
Repayment of nonrecourse debt–Legacy assets | — | — | — | (13,785 | ) | — | (13,785 | ) | ||||||||||||||||
Net tax benefit for stock grants issued | — | 2,846 | — | — | — | 2,846 | ||||||||||||||||||
Issuance of common stock, net of IPO issuance costs | 246,700 | — | — | — | — | 246,700 | ||||||||||||||||||
Distributions to subsidiaries | (246,700 | ) | — | — | — | 246,700 | — | |||||||||||||||||
Contributions of parent | — | 246,700 | — | — | (246,700 | ) | — | |||||||||||||||||
Net cash attributable to financing activities | — | 2,394,156 | — | 1,811,456 | — | 4,205,612 | ||||||||||||||||||
Net increase/(decrease) in cash | — | 90,047 | 157 | — | — | 90,204 | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | 62,201 | 244 | — | — | 62,445 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 152,248 | $ | 401 | $ | — | $ | — | $ | 152,649 | ||||||||||||
Disclosures_Related_to_Transac
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Related Party Transactions [Abstract] | |||||||||||||
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC | Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC | ||||||||||||
Springleaf Home Equity, Inc. | |||||||||||||
Nationstar has several agreements to act as the loan subservicer for Springleaf Home Equity, Inc., formerly known as American General Home Equity, Inc., Springleaf General Financial Services of Arkansas, Inc., formerly known as American General Financial Services of Arkansas, Inc. and MorEquity, Inc. (collectively, Springleaf) totaling $2.0 billion for which Nationstar receives a monthly per loan subservicing fee and other performance incentive fees subject to the agreements with Springleaf. For the years ended December 31, 2014, 2013, and 2012, Nationstar recognized revenue of $5.3 million, $8.1 million, and $9.8 million, respectively, in additional servicing and other performance incentive fees related to these portfolios. At December 31, 2014 and 2013, Nationstar had an outstanding receivable from Springleaf of $0.2 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. | |||||||||||||
Newcastle Investment Corp. | |||||||||||||
Nationstar is the loan servicer for several securitized loan portfolios managed by Newcastle, which is managed by an affiliate of Fortress, 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, $0.9 billion and $1.0 billion, as of December 31, 2014, 2013, and 2012, respectively. For the years ended 2014, 2013 and 2012, Nationstar received servicing fees and other performance incentive fees of $4.1 million, $4.6 million and $5.2 million, respectively. | |||||||||||||
New Residential Investment Corp. | |||||||||||||
Excess Spread Financing | |||||||||||||
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 revenues 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 $24.4 million to New Residential for delinquent service fees in advance of the contractual due date. This amount will be ultimately netted against future remittances as related to service fee amounts. This amount is recorded as an offset to outstanding excess spread financing in our financial statements. | |||||||||||||
The fair value on the outstanding liability related to these agreements was $1,031.0 million and $986.4 million at December 31, 2014 and 2013, respectively. | |||||||||||||
Mortgage Servicing Rights Financing Liability | |||||||||||||
In December 2013, we launched a new servicing acquisition structure. Under this structure, we 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 outstanding as of December 2012, on three pools of residential, non-agency mortgage loans, with the potential for up to $6.3 billion. We also agreed to the sale of the related mortgage servicing rights of approximately $44.3 billion of UPB with potential for up to $130.1 billion of UPB, along with the right to receive the basic fee component on the transferred mortgage servicing rights. We 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, we 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, we will account for the transactions as financings until the required third party consents are obtained and legal ownership of the MSRs transfer to New residential. | |||||||||||||
In December 2013, Nationstar entered into a Master Servicing Rights Purchase Agreement and three related Sale Supplements (collectively, the Sale Agreement) with a joint venture entity (Purchaser) capitalized by New Residential in which New Residential and/or certain funds managed by Fortress own an interest. Under the Sale Agreement, Nationstar sold to the Purchaser the right to repayment on certain outstanding servicer advances outstanding on non-Agency mortgage loans. In addition, Nationstar also sold the right to receive the basic fee component on the related mortgage servicing rights, in exchange for the Purchaser remitting a portion of the basic fee to Nationstar in exchange for Nationstar continuing to service the mortgage loans. Once the servicing is transferred under any servicing agreement to the Purchaser, Nationstar will subservice the applicable mortgage loans. | |||||||||||||
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. | |||||||||||||
In December 2013, 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 $49.4 million at December 31, 2014. | |||||||||||||
Nationstar entered into several supplemental agreements with the Purchaser throughout 2014. The table below summarizes the supplemental agreements entered into during 2014 (UPB in billions). | |||||||||||||
Agreement | MSR | Servicer | Sale | ||||||||||
Date | UPB | Advances | Proceeds | ||||||||||
Jan-14 | $ | 8.3 | $ | 253,472 | $ | 253,472 | |||||||
Feb-14 | $ | 9.4 | $ | 756,185 | $ | 91,391 | |||||||
Mar-14 | $ | 10.5 | $ | 299,125 | $ | 41,536 | |||||||
May-14 | $ | 12 | $ | 617,502 | $ | 75,161 | |||||||
Jun-14 | $ | 14 | $ | 303,795 | $ | 50,967 | |||||||
Other | |||||||||||||
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 year ended December 31, 2014, Nationstar recognized revenue of $3.3 million related to these servicing arrangements. | |||||||||||||
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 New Residential, 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 sheets. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Quarterly Financial Information [Text Block] | Quarterly Financial Data (Unaudited) | |||||||||||||||
The following is a summary of the quarterly consolidated results of operations for the period indicated: | ||||||||||||||||
2014 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Service related | $ | 327,663 | $ | 362,916 | $ | 351,070 | $ | 334,213 | ||||||||
Net gain on mortgage loans held for sale | 141,984 | 186,817 | 153,254 | 115,151 | ||||||||||||
Total revenues | 469,647 | 549,733 | 504,324 | 449,364 | ||||||||||||
Total expenses and impairments | 321,133 | 346,711 | 327,224 | 362,623 | ||||||||||||
Total other income/(expense) | (109,836 | ) | (97,434 | ) | (67,521 | ) | (54,702 | ) | ||||||||
Income before taxes | 38,678 | 105,588 | 109,579 | 32,039 | ||||||||||||
Income taxes | 15,001 | 38,941 | (1,700 | ) | 12,618 | |||||||||||
Net income | $ | 23,677 | $ | 66,647 | $ | 111,279 | $ | 19,421 | ||||||||
Earnings per share: | ||||||||||||||||
Basic earnings per share | $ | 0.27 | $ | 0.74 | $ | 1.23 | $ | 0.22 | ||||||||
Diluted earnings per share | $ | 0.27 | $ | 0.74 | $ | 1.22 | $ | 0.21 | ||||||||
2013 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Service related | $ | 242,475 | $ | 321,104 | $ | 425,882 | $ | 394,761 | ||||||||
Net gain on mortgage loans held for sale | 188,587 | 282,561 | 205,956 | 25,659 | ||||||||||||
Total revenues | 431,062 | 603,665 | 631,838 | 420,420 | ||||||||||||
Total expenses and impairments | 268,571 | 339,851 | 395,854 | 398,002 | ||||||||||||
Total other income/(expense) | (61,498 | ) | (64,685 | ) | (103,912 | ) | (108,358 | ) | ||||||||
Income (loss) before taxes | 100,993 | 199,129 | 132,072 | (85,940 | ) | |||||||||||
Income tax expense (benefit) | 38,377 | 75,669 | 50,187 | (35,033 | ) | |||||||||||
Net income (loss) | $ | 62,616 | $ | 123,460 | $ | 81,885 | $ | (50,907 | ) | |||||||
Earnings (loss) per share: | ||||||||||||||||
Basic earnings (loss) per share | $ | 0.7 | $ | 1.38 | $ | 0.92 | $ | (0.57 | ) | |||||||
Diluted earnings (loss) per share | $ | 0.7 | $ | 1.37 | $ | 0.91 | $ | (0.56 | ) | |||||||
2012 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Service related | $ | 93,560 | $ | 100,414 | $ | 145,611 | $ | 157,566 | ||||||||
Net gain on mortgage loans held for sale | 70,512 | 102,345 | 139,259 | 175,048 | ||||||||||||
Total revenues | 164,072 | 202,759 | 284,870 | 332,614 | ||||||||||||
Total expenses and impairments | 96,577 | 130,372 | 154,828 | 200,268 | ||||||||||||
Total other income/(expense) | (14,164 | ) | (23,332 | ) | (50,261 | ) | (37,930 | ) | ||||||||
Income before taxes | 53,331 | 49,055 | 79,781 | 94,416 | ||||||||||||
Income taxes | 3,145 | 12,780 | 24,714 | 30,657 | ||||||||||||
Net income | $ | 50,186 | $ | 36,275 | $ | 55,067 | $ | 63,759 | ||||||||
Earnings per share: | ||||||||||||||||
Basic earnings per share | $ | 0.67 | $ | 0.41 | $ | 0.62 | $ | 0.72 | ||||||||
Diluted earnings per share | $ | 0.67 | $ | 0.41 | $ | 0.61 | $ | 0.71 | ||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Nationstar evaluated subsequent events through the date these consolidated financial statements were issued. | |
In January 2015, Nationstar amended its MBS advance financing facility with a GSE. Under the terms of the amended agreement, the maximum borrowing capacity was reduced to $130 million from $475 million. | |
In January 2015, Nationstar amended its $1.1 billion Nationstar agency advance financing facility with a financial institution. Under the terms of the amended agreement, Nationstar increased the maximum borrowing capacity available attributable to the outstanding variable funding notes to $1.2 billion and increasing the maximum borrowing capacity available attributable to the outstanding term funding notes to $0.3 billion. | |
In January 2015, certain key employees of Solutionstar were granted stock appreciation rights (SARs) which can be settled in cash or units of Solutionstar Holdings LLC (Solutionstar) at the election of Solutionstar. The SARs vest ratably over three years and have a ten year term. The SARs become exercisable upon a upon a liquidity event at Solutionstar which includes a change in control or an initial public offering of Solutionstar. |
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Cash and cash equivalents include unrestricted cash on hand and other highly liquid investments having an original maturity of less than three months. | |
Restricted Cash | Restricted Cash |
Restricted cash primarily consists of certain custodial accounts related to Nationstar’s portfolio securitizations or to collections on certain mortgage loans and mortgage loan advances that have been pledged to various advance financing facilities under master repurchase agreements. Restricted cash also includes certain fees collected on mortgage loan payments that required remittance to government-sponsored enterprises (GSEs) to settle outstanding guarantee fee requirements. | |
Advance Funding | Advances |
The Company will advance funds when the borrower fails to meet contractual payments (e.g., principal, interest, property taxes, insurance). The Company will also advance funds to maintain, report and market foreclosed real estate properties on behalf of investors. Advances are recovered from borrowers for reinstated and performing loans and from investors for foreclosed loans. Per the servicing agreements, the Company is only obligated to advance funds to extent that such advances are recoverable. | |
Nationstar may also acquire servicer advances in conjunction with the acquisition of Mortgage Servicing Rights (MSRs). Acquired servicer advances are recorded at their relative fair value amounts on the acquisition date, and any recorded discounts are accreted into interest income on a cost recovery method as the related servicer advances are recovered either through repayment from the borrower, liquidation of the underlying mortgage loans, or through a modification and recovery of the outstanding servicer advance balance from the securitization trust. | |
When Nationstar has determined that, based on all available information, it is probable that a loss has been incurred, and that all contractual amounts due will not be recovered, an impairment is recognized through the recording of a valuation allowance. Any changes to the valuation allowance are recorded through general and administrative expenses. | |
Loan Held-for-sale | Mortgage Loans Held for Sale |
Nationstar has elected to measure newly originated prime residential mortgage loans held for sale at fair value. Nationstar estimates fair value by evaluating a variety of market indicators, including recent trades and outstanding commitments, calculated on an aggregate basis. In connection with Nationstar’s election to measure newly originated prime residential mortgage loans held for sale at fair value, Nationstar is not permitted to defer the loan originations fees, net of direct loan originations costs associated with these loans. In addition, the Company may at times repurchase loans that were previously transferred to Ginnie Mae if that loan meets certain criteria, including being delinquent greater than 90 days. Nationstar has also elected to measure these repurchased loans at fair value. | |
At times, Nationstar may acquire loans that it services through the exercise of clean-up calls. These loans are carried at the lower of cost or fair value. | |
Net Gain on Mortgage Loans Held for Sale | |
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from Nationstar, (ii) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) Nationstar does not maintain effective control over the transferred assets through either (a) an agreement that entitles and obligates Nationstar to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the holder to return specific assets. | |
Loan securitizations structured as sales, as well as whole loan sales and the resulting gains on such sales, net of any accrual for recourse obligations, are reported in operating results during the period in which the securitization closes or the sale occurs. | |
Loan Held-for-investment | Mortgage Loans Held for Investment, Net |
Mortgage loans held for investment primarily consist of nonconforming or subprime mortgage loans securitized which serve as collateral for the issued debt. These loans were transferred in 2009 from mortgage loans held for sale at fair value on the transfer date, as determined by the present value of expected future cash flows, with no valuation allowance recorded. The difference between the undiscounted cash flows expected and the investment in the loan is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at transfer are not recognized as a yield adjustment or as a loss accrual or a valuation allowance. Increases in expected cash flows subsequent to the transfer are recognized prospectively through adjustment of the yield on the loans over the remaining life. Decreases in expected cash flows subsequent to transfer are recognized as a valuation allowance. | |
An allowance for loan losses is established by recording a provision for loan losses in the consolidated statements of operations and comprehensive income when management believes a loss has occurred on a loan held for investment. When management determines that a loan held for investment is partially or fully uncollectible, the estimated 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. | |
Reverse Mortgage Interests | Reverse Mortgage Interests |
Reverse mortgages (known as Home Equity Conversion Mortgages or HECMs) provide seniors (62 and older) with a loan secured by their home. Nationstar records acquired reverse mortgage interests assets and obligations assumed at relative fair value on the acquisition date. Any premium or discount associated with the recording of the funded advances is accreted into interest income as the underlying HECMs are liquidated. | |
Nationstar is obligated in its capacity as servicer to fund future borrower obligations, which include fees paid to taxing authorities for borrowers' unpaid taxes and insurance, mortgage insurance premiums and payments made to borrowers for line of credit draws on reverse mortgages. In addition, Nationstar capitalizes the servicing fees and interest income it earns for servicing the reverse mortgage interests. These payments funded by Nationstar are recorded as reverse mortgage interests on the Company's consolidated balance sheets. Nationstar includes the cash outflow from funding these payments as operating activities as a component of reverse mortgage interests. The securitization cash inflow is reported as a financing activity as a component of the change in interest financing and reverse mortgage interests in the consolidated statements of cash flows. | |
Nationstar receives a monthly servicing fee, which is recorded as either interest income or servicing fee income on the consolidated statements of operations and comprehensive income based upon if the related advance was either funded by or acquired by Nationstar. Interest income is accrued monthly based upon the borrower interest rate applied to the HECM outstanding principal balance of reverse mortgage interests. Interest expense on the participating interest financing is accrued monthly based upon the underlying HMBS rates and is recorded to interest expense in the consolidated statements of operations and comprehensive income. | |
Issuers of HECMs are responsible for repurchasing any loans out of the HMBS pool when the outstanding principal balance of the related HECM loan is equal to or greater than 98% of the lesser of the appraised value of the underlying property at origination or $625 thousand. | |
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 statements of operations and comprehensive income. | |
Mortgage Banking Activities | Mortgage Servicing Rights (MSRs) |
Nationstar recognizes the rights to service mortgage loans for others, or MSRs, as assets whether purchased or as a result of the sale of loans we originate. We initially record all of our MSRs at fair value. MSRs related to reverse mortgages are subsequently measured at lower of cost or market (LOCOM). | |
For MSRs recorded at fair value, the fair value of the MSRs is based upon the present value of the expected future net cash flows related to servicing these loans. Nationstar receives a base servicing fee ranging from 0.21% 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 revenues and other assumptions (including costs to service) that management believes are consistent with the assumptions other similar market participants use in valuing the MSRs. The nature of the forward loans underlying the MSRs affects the assumptions used in the cash flow models. Nationstar obtains third-party valuations quarterly to assess the reasonableness of the fair value calculated by the cash flow model. | |
Additionally, Nationstar owns servicing rights for reverse mortgage loans. For this class of servicing rights, Nationstar applies the amortization method (or LOCOM) 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 service related revenue. 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. | |
Mortgage Servicing Rights Related Liabilities | MSR Related Liabilities - nonrecourse |
Excess Spread Financing | |
In conjunction with Nationstar's acquisition of certain mortgage servicing rights on various pools of residential mortgage loans (the Portfolios), Nationstar has entered into sale and assignment agreements that are accounted for as financings, with the total proceeds being recorded as a component of MSR related liabilities - nonrecourse on the consolidated balance sheets. Nationstar determines the effective interest rate on these liabilities and allocates total payments between interest expense and a portion as a reduction to the total outstanding liability. Under these agreements, Nationstar sold to a third party the right to receive a portion of the excess cash flow generated from the Portfolios after receipt of a fixed basic servicing fee per loan. | |
Nationstar has elected to measure the outstanding financings related to the excess spread financing agreements at fair value with all changes in fair value recorded as a charge or credit to service related revenue in the consolidated statements of operations and comprehensive income. The fair value on excess spread financing is based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. | |
Mortgage Servicing Rights Financing | |
From time to time, Nationstar will enter into certain transactions with third parties to sell certain mortgage servicer rights and servicer advances under specified terms. Nationstar evaluates these transactions to determine if they are sales or structured financing arrangements. When these transfers qualify for sale treatment, Nationstar derecognizes the transferred assets on its consolidated balance sheets. Nationstar has determined that for a portion of these transactions, the related mortgage servicing rights sales are contingent on the receipt of consents from various third parties. Until these required consents are obtained, legal ownership of the mortgage servicing rights continues to reside with the Company. Nationstar continues to account for the mortgage servicing rights on its consolidated balance sheets. In addition, Nationstar records a mortgage servicing rights financing liability associated with this financing transaction. Counterparty payments related to this financing arrangement are recorded as an adjustment to the Company's service related revenues. | |
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 service related revenue in the consolidated statements of operations and comprehensive income. The fair value on mortgage servicing right financings is based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. | |
Participating Interests Financing | Participating Interest Financing |
Nationstar periodically securitizes certain of these funded advances through issuance of Home Equity Conversion Mortgage Backed Securities (HMBS) to third-party security holders which are guaranteed by GNMA. These transfers of funded advances into HMBS are accounted for as secured borrowings with the HMBS presented as participating interest financing included within other liabilities on the Company's consolidated balance sheets. Issue premiums and/or discounts are deferred as a component of the participating interest financing and amortized to interest expense over the life of the HMBS on an effective interest method. | |
Property, Plant and Equipment | Property and Equipment, Net |
Property and equipment, net is comprised of land, building, furniture, fixtures, leasehold improvements, computer software, and computer hardware. These assets are stated at cost less accumulated depreciation. Repairs and maintenance are expensed as incurred. Depreciation, which includes depreciation and amortization on capital leases, is recorded using the straight-line method over the estimated useful lives of the related assets. Cost and accumulated depreciation applicable to assets retired or sold are eliminated from the accounts, and any resulting gains or losses are recognized at such time through a charge or credit to general and administrative expenses. Costs to internally develop computer software are capitalized during the development stage and include external direct costs of materials and servicer as well as employee costs related to time spent on the project. | |
Nationstar evaluates all leases at inception to determine if they meet the criteria for a capital lease. A capital lease is recorded as an acquisition of property or equipment at an amount equal to the present value of minimum lease payments at the date of inception. Assets acquired under a capital lease are depreciated on a straight-line basis in accordance with the Company's normal depreciation policy over the lease term and are included in property and equipment, net, on the balance sheet. A corresponding liability is recorded representing an obligation to make lease payments which is included in payables and accrued liabilities in the consolidated balance sheet. Lease payments are allocated between interest expense and reduction of obligation. | |
Leases that do not meet capital lease criteria are accounted for as operating leases. Rental expense on operating leases is recognized on a straight-line basis over the lease term. Leasehold improvements are amortized over the shorter of the lease terms of the respective leases or the estimated useful lives of the related assets. | |
Variable Interest Entity | Variable Interest Entities |
In the normal course of business, Nationstar enters into various types of on- and off-balance sheet transactions with special purpose entities (SPEs), which primarily consists of securitization trusts established for a limited purpose. Generally, these SPEs are formed for the purpose of securitization transactions in which Nationstar transfers assets to an SPE, which then issues to investors various forms of interests in those assets. In these securitization transactions, Nationstar typically receives cash and/or other interests in the SPE as proceeds for the transferred assets. Nationstar will typically retain the right to service the transferred receivables and to repurchase the transferred receivables from the SPE if the outstanding balance of the receivables falls to a level where the cost exceeds the benefits of servicing the transferred receivables. | |
The Company evaluates its interests in each SPE for classification as a Variable Interest Entity (VIE). When an SPE meets the definition of a VIE and the Company determines that Nationstar is the primary beneficiary, the Company includes the SPE in its consolidated financial statements. | |
Nationstar has determined that the SPEs created in connection with the Nationstar Mortgage Advance Receivables Trust, the Nationstar Servicer Advance Receivables Trust 2013-BA and the Nationstar agency advance financing facility described in Note 10 - Indebtedness are VIEs of which Nationstar was the primary beneficiary. The Company also determined that it is the primary beneficiary for the mortgage loans securitized in 2009 subject to non-recourse debt. See Note 6, Mortgage Loans Held for Sale and Investment. Consequently, the Company has consolidated the assets and liabilities associated with these VIEs in its consolidated financial statements. | |
In December 2014, Nationstar Mortgage LLC completed the securitization of approximately $343.6 million in Nationstar HECM Loan Trust 2014-1 Mortgage Backed Securities. As part of the securitization, Nationstar retained a portion of the notes which represent subordinated beneficial interests for Nationstar. The transaction was structured as a secured borrowing. The HECM Trust met the definition of a VIE, in which Nationstar was determined to own variable interests and was considered the primary beneficiary of the variable interests. Accordingly, the reverse mortgage loans was included in the consolidated financial statements of Nationstar as a reverse secured borrowing, the related financing was included in other nonrecourse debt and the related retained beneficial interests were eliminated in consolidation. | |
Securitizations and Asset Backed Financing Arrangements. | |
Nationstar or its subsidiaries have been a transferor in connection with a number of securitizations and asset-backed financing arrangements. The Company has continuing involvement with the financial assets of the securitizations and the asset-backed financing arrangements. The Company has aggregated these transactions into two groups: (1) securitizations of residential mortgage loans accounted for as sales and (2) financings of advances on loans serviced for others accounted for as secured borrowings. | |
Securitizations Treated as Sales. | |
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 are held in the unconsolidated securitization trusts have no value and no potential for significant cash flows in the future. In addition, at December 31, 2014, the Company had no other significant assets in its 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. The Company’s exposure to loss as a result of its continuing involvement with the trusts is limited to the carrying values, if any, of our investments in the residual and subordinate securities of the trusts, the MSRs that are related to the trusts and the advances to the trusts. Nationstar considers the probability of loss arising from our advances to be remote because of their position ahead of most of the other liabilities of the trusts. See Note 4, Advances, and Note 3, Mortgage Servicing Rights and Related Liabilities, for additional information regarding advances and MSRs. | |
Financings | |
Advances on loans serviced for others result from our transfers of residential loan servicing advances to SPEs in exchange for cash. Nationstar consolidates these SPEs because the transfers do not qualify for sales accounting treatment or 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 its advance facility agreements. Nationstar classifies the transferred advances on its consolidated balance sheets as accounts receivable and the related liabilities as notes payable. The SPEs use collections of the pledged advances to repay principal and interest and to pay the expenses of the entity. Holders of the debt issued by these entities can look only to the assets of the entities themselves for satisfaction of the debt and have no recourse against Nationstar. | |
Nationstar has issued pools of HMBS to third-party investors collateralized by advances on the related HECM. These transactions are accounted for as secured financings with the reverse mortgage interests and the related financing included in the consolidated financial statements of Nationstar as consolidated VIEs. | |
Occasionally, Nationstar will transfer reverse mortgage interests into private securitization trusts (Reverse Trusts). Nationstar evaluates these Reverse Trusts to determine whether they meet the definition of a Variable Interest Entity, and when the Reverse Trust meets the definition of a VIE and the Company determines that it is the primary beneficiary, Nationstar will include the assets and liabilities of the Reverse Trust in its consolidated financial statements, with the securitized reverse mortgage interests being retained on its balance sheet and recognizing the issued securities in other nonrecourse debt. The reverse mortgage interests are carried at amortized cost, less an allowance for probable loss. | |
Derivatives | Derivative Financial Instruments |
Nationstar recognizes all derivatives on its consolidated balance sheets at fair value. On the date the Company enters into a derivative contract, it designates and documents each derivative contract as either a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge) or a derivative instrument not designated as a hedging instrument. To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. Nationstar assesses and documents quarterly the extent to which a derivative has been and is expected to continue to be effective in offsetting the changes in the fair value or the cash flows of the hedged item. To assess effectiveness, Nationstar uses statistical methods, such as regression analysis, as well as nonstatistical methods including dollar-offset analysis. | |
For a fair value hedge, Nationstar records changes in the fair value of the derivative and, to the extent that it is effective, changes in the fair value of the hedged asset or liability attributable to the hedged risk, in the same financial statement category as the hedged item on the face of the statement of operations and comprehensive income (loss). For a cash flow hedge, to the extent that it is effective, Nationstar records changes in the estimated fair value of the derivative in other comprehensive income. Nationstar subsequently reclassifies these changes in estimated fair value to net income in the same period, or periods, that the hedged transaction affects earnings and in the same financial statement category as the hedged item. For a derivative instrument not designated as a hedging instrument, the Company reports changes in the fair values in current period other income (expense), net, on our consolidated statements of operations and comprehensive income. | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets |
Goodwill is initially recorded as the excess of purchase price over fair value of net assets acquired in a business combination and subsequently evaluated for impairment. Nationstar tests goodwill for impairment at least annually, as of October 1st and more often if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its net carrying value. Nationstar has the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. Factors that the Company considers in the qualitative assessment include general economic conditions, conditions of the industry and market in which it operates, regulatory developments, cost factors and the Company's overall financial performance. Nationstar may also choose a two-step quantitative test to evaluate goodwill for impairment. Under the two-step impairment test, Nationstar evaluates the recoverability of goodwill by comparing the estimated fair value of each reporting unit with its estimated net carrying value (including goodwill). Nationstar derives the fair value of reporting units based on valuation techniques and assumptions that Nationstar believes market participants would use (discounted cash flow valuation methodology). | |
Nationstar amortizes finite lived intangible assets acquired in a business combination over their estimated useful life. On an annual basis, the Company evaluates whether there has been a change in the estimated useful life or if certain impairment indicators exist. | |
Receivables from Affiliates | Receivables from Affiliates |
Nationstar engages in periodic transactions with Nationstar Regular Holdings, Ltd., a subsidiary of FIF HE Holdings LLC. These transactions typically involve the monthly payment of principal and interest advances that are required to be remitted to the securitization trusts as required under various Pooling and Servicing Agreements. These amounts are later repaid to Nationstar when principal and interest advances are recovered from the respective borrowers, upon liquidation of the underlying collateral, or modification of the loan. | |
Real Estate Owned | Real Estate Owned (REO), Net |
Nationstar holds REO as a result of foreclosures on delinquent mortgage loans. REO is recorded at estimated fair value less costs to sell at the date of foreclosure within Other Assets. Any subsequent declines in fair value are credited to a valuation allowance and charged to general and administrative expenses as incurred. | |
Loans Subject to Repurchase Rights | Loans Subject to Repurchase Rights from Ginnie Mae |
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. | |
Interest Revenue | Interest Income |
Interest income is recognized using the interest method. Revenue accruals for individual loans are suspended and accrued amounts reversed when the mortgage loan becomes contractually delinquent for 90 days or more. Delinquency payment status is based on the most recently received payment from the borrower. The accrual is resumed when the individual mortgage loan becomes less than 90 days contractually delinquent. For individual loans that have been modified, a period of six timely payments is required before the loan is returned to an accrual basis. Interest income also includes (1) interest earned on custodial cash deposits associated with the mortgage loans serviced; (2) deferred originations income, net of deferred originations costs and other revenues derived from the origination of mortgage loans, which is deferred and recognized over the life of a mortgage loan held for investment or recognized when the related loan is sold to a third party purchaser; and (3) amounts recognized from accretion of discounts on acquired servicer advances as the related servicer advances are recovered. | |
Service Related Revenues | Service Related Revenues |
Service related revenues include contractually specified servicing fees, late charges, prepayment penalties and other ancillary revenues. Servicing encompasses, among other activities, the following processes: billing, collection of payments, movement of cash to the payment clearing bank accounts, investor reporting, customer service, recovery of delinquent payments, instituting foreclosure, and liquidation of the underlying collateral. | |
Nationstar recognizes servicing and ancillary revenues as they are earned, which is generally upon collection of the payments from the borrower. In addition, Nationstar also receives various fees in the course of providing servicing on its various portfolios. These fees include modification fees for modifications performed outside of government programs, modification fees for modifications pursuant to various government programs, and incentive fees for servicing performance on specific GSE portfolios. | |
Fees recorded on modifications of mortgage loans held for investment performed outside of government programs are deferred and recognized as an adjustment to the loans held for investment. These fees are accreted into interest income as an adjustment to the loan yield over the life of the loan. Fees recorded on modifications of mortgage loans serviced by Nationstar for others are recognized on collection and are recorded as a component of service related revenues. Fees recorded on modifications pursuant to various government programs are recognized when Nationstar has completed all necessary steps and the loans have performed for the minimum required time frame to establish eligibility for the fee. Revenue earned on modifications pursuant to various government programs is included as a component of service related revenues. Incentive fees for servicing performance on specific GSE portfolios are recognized as various incentive standards are achieved and are recorded as a component of service related revenues. | |
Option and Incentive Plans | Share-Based Compensation Expense |
Share-based compensation is recognized as an expense in the consolidated statements of operations and comprehensive income, based on their fair values. The amount of compensation is measured at the fair value of the awards when granted and this cost is expensed over the required service period, which is normally the vesting period of the award, and is included as a component of salaries, wages and benefits in the consolidated statements of income and comprehensive income. | |
Advertising Costs | Advertising Costs |
Advertising costs are expensed as incurred and are included as part of general and administrative expenses. Nationstar incurred advertising costs of $41.6 million, $53.6 million, and $5.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Income Tax | Income Taxes |
Deferred taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. | |
The Company regularly reviews the carrying amount of its deferred tax assets to determine if the establishment of 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 deferred tax valuation allowance is established. Consideration is given to various positive and negative factors that could affect the realization of the deferred tax assets. | |
In evaluating this available evidence, management considers, among other things, historical financial performance, expectation of future earnings, the ability to carry back losses to recoup taxes previously paid, length of statutory carryforward periods, experience with operating loss and tax credit carryforwards which may expire unused, tax planning strategies and 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. | |
The Company is subject to the income tax laws of the U.S., its states and municipalities. These tax laws are complex and subject to different interpretations by the taxpayer and the relevant governmental taxing authorities. The Company has adopted accounting guidance related to uncertainty in income taxes. The guidance prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under the guidance, tax positions shall initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions shall initially and subsequently be measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. In establishing a provision for income tax expense, the Company must make judgments and interpretations about the application of these inherently complex tax laws within the framework of existing GAAP. The Company recognizes interest and penalties related to uncertain tax positions in general and administrative expenses. | |
Earnings Per Share | Earnings Per Share |
Basic net income per share is computed based on the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed based on the weighted-average number of common shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares represent outstanding restricted stock. | |
Basis of Accounting | Basis of Presentation |
The Company follows generally accepted accounting principles in the United States of America (GAAP). The significant accounting policies described below, together with the other notes that follow, are an integral part of the Consolidated Financial Statements. | |
Consolidation | Basis of Consolidation |
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. Nationstar applies the equity method of accounting to investments when the entity is not a VIE and Nationstar is able to exercise significant influence, but not control, over the policies and procedures of the entity but owns less than 50% of the voting interests. 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. Nationstar evaluated subsequent events through the date these consolidated financial statements were issued. | |
Use of Estimates | Use of Estimates |
The preparation of the financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates due to factors such as adverse changes in the economy, increases in interest rates, changes in prepayment assumptions, declines in home prices or discrete events adversely affecting specific borrowers, and such differences could be material. |
Mortgage_Servicing_Rights_Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Transfers and Servicing [Abstract] | ||||||||||||||||
Schedule of Servicing Assets at Fair Value | ||||||||||||||||
MSRs and Related Liabilities | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
MSRs - Fair Value | $ | 2,949,739 | $ | 2,488,283 | ||||||||||||
MSRs - LOCOM | 11,582 | 14,879 | ||||||||||||||
Mortgage Servicing Rights | 2,961,321 | 2,503,162 | ||||||||||||||
Mortgage Servicing Liabilities | 65,382 | 82,521 | ||||||||||||||
Excess spread financing - fair value | 1,031,035 | 986,410 | ||||||||||||||
Mortgage servicing rights financing liability - fair value | 49,430 | 29,874 | ||||||||||||||
MSR Related Liabilities (nonrecourse) | $ | 1,080,465 | $ | 1,016,284 | ||||||||||||
The following table provides a breakdown of the total credit and interest sensitive UPBs for Nationstar's owned MSRs. | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
UPB | Fair Value | UPB | Fair Value | |||||||||||||
Credit Sensitive | $ | 241,769,601 | $ | 1,919,290 | $ | 266,757,777 | $ | 1,818,315 | ||||||||
Interest Sensitive | 91,843,044 | 1,030,449 | 56,056,362 | 669,968 | ||||||||||||
$ | 333,612,645 | $ | 2,949,739 | $ | 322,814,139 | $ | 2,488,283 | |||||||||
The activity of MSRs carried at fair value is as follows for the dates indicated: | ||||||||||||||||
For the year ended | ||||||||||||||||
31-Dec-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 | 238,292 | 248,381 | ||||||||||||||
Purchases of servicing assets | 470,543 | 1,545,584 | ||||||||||||||
Changes in fair value: | ||||||||||||||||
Due to changes in valuation inputs or assumptions used in the valuation model | 87,434 | 377,486 | ||||||||||||||
Other changes in fair value | (334,813 | ) | (319,028 | ) | ||||||||||||
Fair value at the end of the period | $ | 2,949,739 | $ | 2,488,283 | ||||||||||||
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 | 31-Dec-14 | 31-Dec-13 | ||||||||||||||
Discount rate | 11.96 | % | 14.17 | % | ||||||||||||
Total prepayment speeds | 18.58 | % | 20.34 | % | ||||||||||||
Expected weighted-average life | 5.39 years | 4.63 years | ||||||||||||||
Interest Sensitive | 31-Dec-14 | 31-Dec-13 | ||||||||||||||
Discount rate | 9.09 | % | 10.5 | % | ||||||||||||
Total prepayment speeds | 11.27 | % | 8.97 | % | ||||||||||||
Expected weighted-average life | 6.49 years | 7.88 years | ||||||||||||||
The range of various assumptions used in Nationstar's valuation of Excess Spread financing were as follows: | ||||||||||||||||
Excess Spread financing | Prepayment Speeds | Average | Discount | Recapture Rate | ||||||||||||
Life (years) | Rate | |||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||
Low | 6.20% | 4.0 years | 8.50% | 6.70% | ||||||||||||
High | 19.40% | 7.1 years | 14.20% | 31.30% | ||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||
Low | 4.00% | 3.4 years | 10.10% | 5.00% | ||||||||||||
High | 17.60% | 5.7 years | 20.00% | 35.80% | ||||||||||||
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 certain unfavorable variations of the expected levels of key assumptions used in valuing these assets at December 31, 2014 and 2013: | |||||||||||||||
Discount Rate | Total Prepayment | |||||||||||||||
Speeds | ||||||||||||||||
100 bps | 200 bps | 10% | 20% | |||||||||||||
Adverse | Adverse | Adverse | Adverse | |||||||||||||
Change | Change | Change | Change | |||||||||||||
31-Dec-14 | ||||||||||||||||
Mortgage servicing rights | $ | (110,900 | ) | $ | (207,295 | ) | $ | (112,603 | ) | $ | (199,078 | ) | ||||
31-Dec-13 | ||||||||||||||||
Mortgage servicing rights | $ | (74,681 | ) | $ | (151,899 | ) | $ | (101,590 | ) | $ | (195,445 | ) | ||||
The following table shows the hypothetical effect on the fair value of excess spread financing using certain unfavorable variations of the expected levels of key assumptions used in valuing these liabilities at the dates indicated: | ||||||||||||||||
Discount Rate | Total Prepayment | |||||||||||||||
Speeds | ||||||||||||||||
100 bps | 200 bps | 10% | 20% | |||||||||||||
Adverse | Adverse | Adverse | Adverse | |||||||||||||
Change | Change | Change | Change | |||||||||||||
December 31, 2014 | ||||||||||||||||
Excess spread financing | $ | 36,632 | $ | 75,964 | $ | 33,618 | $ | 70,379 | ||||||||
31-Dec-13 | ||||||||||||||||
Excess spread financing | $ | 33,156 | $ | 68,636 | $ | 26,492 | $ | 53,753 | ||||||||
Activity of MSRs at Amortized Cost | The activity of MSRs carried at amortized cost is as follows for the date indicated: | |||||||||||||||
For the year ended | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
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 | (3,297 | ) | (17,139 | ) | (74 | ) | (717 | ) | ||||||||
Balance at end of the period | $ | 11,582 | $ | 65,382 | $ | 14,879 | $ | 82,521 | ||||||||
Fair value at end of period | $ | 34,225 | $ | 55,388 | $ | 29,192 | $ | 63,996 | ||||||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Schedule of Accounts Receivable | ||||||||
31-Dec-14 | December 31, 2013 | |||||||
Advances | $ | 2,546,362 | $ | 5,002,202 | ||||
Reverse_Mortgage_Interest_Tabl
Reverse Mortgage Interest (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Reverse Mortgage Interest [Abstract] | ||||||||
Reverse Mortgage Interest [Table Text Block] | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
Participating interests | $ | 1,363,225 | $ | 1,039,645 | ||||
Other loans securitized | 279,564 | — | ||||||
Unsecuritized loans | 744,916 | 489,157 | ||||||
Allowance for losses - reverse mortgage interests | (4,058 | ) | (802 | ) | ||||
Total reverse mortgage interests | $ | 2,383,647 | $ | 1,528,000 | ||||
Mortgage_Loans_Held_for_Sale_a1
Mortgage Loans Held for Sale and Investment (Tables) | 12 Months Ended | |||||||
Dec. 31, 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 for the dates indicated: | |||||||
31-Dec-14 | 31-Dec-13 | |||||||
Mortgage loans held for sale – unpaid principal balance | $ | 1,218,596 | $ | 2,532,881 | ||||
Mark-to-market adjustment, included in Gain on Mortgage Loans Held for Sale | 59,335 | 70,499 | ||||||
Total mortgage loans held for sale | $ | 1,277,931 | $ | 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 year ended | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
Mortgage loans held for sale – beginning balance | $ | 2,603,380 | $ | 1,480,537 | ||||
Mortgage loans originated and purchased, net of fees | 20,558,305 | 25,620,965 | ||||||
Proceeds on sale of and payments of mortgage loans held for sale | (21,880,403 | ) | (24,501,261 | ) | ||||
Transfer of mortgage loans held for sale to held for investment or other assets | (3,351 | ) | 3,139 | |||||
Mortgage loans held for sale – ending balance | $ | 1,277,931 | $ | 2,603,380 | ||||
Schedule of Loans Held for Investment | Mortgage loans held for investment, net as of the dates indicated include: | |||||||
31-Dec-14 | 31-Dec-13 | |||||||
Mortgage loans held for investment, net – unpaid principal balance | $ | 276,820 | $ | 305,085 | ||||
Transfer discount: | ||||||||
Accretable | (15,503 | ) | (17,362 | ) | ||||
Non-accretable | (66,217 | ) | (74,529 | ) | ||||
Allowance for loan losses | (3,531 | ) | (2,144 | ) | ||||
Total mortgage loans held for investment, net | $ | 191,569 | $ | 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 year ended | ||||||||
Accretable Yield | 31-Dec-14 | 31-Dec-13 | ||||||
Balance at the beginning of the period | $ | 17,362 | $ | 19,749 | ||||
Accretion | (2,955 | ) | (3,235 | ) | ||||
Reclassifications from nonaccretable discount | 1,096 | 848 | ||||||
Balance at the end of the period | $ | 15,503 | $ | 17,362 | ||||
Mortgage Loans by Credit Quality Indicator | The following table provides the outstanding unpaid principal balance of Nationstar’s mortgage loans held for investment by credit quality indicators for the dates indicated. Performing loans refer to loans that are less than 90 days delinquent. Non-performing loans refer to loans that are contractually greater than 90 days delinquent. | |||||||
31-Dec-14 | 31-Dec-13 | |||||||
Credit Quality by Delinquency Status | ||||||||
Performing | $ | 196,323 | $ | 218,262 | ||||
Non-Performing | 80,497 | 86,823 | ||||||
Total | $ | 276,820 | $ | 305,085 | ||||
Credit Quality by Loan-to-Value Ratio | ||||||||
Less than 60 | $ | 29,639 | $ | 32,885 | ||||
Less than 70 and more than 60 | 18,078 | 14,633 | ||||||
Less than 80 and more than 70 | 18,931 | 23,075 | ||||||
Less than 90 and more than 80 | 24,088 | 25,536 | ||||||
Less than 100 and more than 90 | 24,135 | 25,686 | ||||||
Greater than 100 | 161,949 | 183,270 | ||||||
Total | $ | 276,820 | $ | 305,085 | ||||
Property_and_Equipment_net_Tab
Property and Equipment, net (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Property, Plant and Equipment [Table Text Block] | Property and equipment, net, and the corresponding ranges of estimated useful lives were as follows. | |||||||||
31-Dec-14 | 31-Dec-13 | Range of Estimated | ||||||||
Useful Life | ||||||||||
Furniture, fixtures and equipment | $ | 39,561 | $ | 65,408 | 3 - 5 years | |||||
Capitalized software costs | 72,673 | 52,582 | 5 years | |||||||
Long-term capital leases - computer equipment | 48,451 | 42,856 | 5 years | |||||||
Building and leasehold improvements | 16,638 | 13,984 | Varies | |||||||
Software in development | 21,174 | 18,243 | ||||||||
198,497 | 193,073 | |||||||||
Less: Accumulated depreciation and amortization | (69,721 | ) | (74,723 | ) | ||||||
Plus: Land | 835 | 835 | ||||||||
Total property and equipment, net | $ | 129,611 | $ | 119,185 | ||||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | As of December 31, 2014, future minimum payments for Nationstar's capital leases is presented in table below: | |||||||||
Future Minimum Lease Payments | ||||||||||
2015 | $ | 18,389 | ||||||||
2016 | 4,747 | |||||||||
2017 | 241 | |||||||||
Thereafter | — | |||||||||
Total future lease payments | 23,377 | |||||||||
Less: Imputed interest | (1,398 | ) | ||||||||
Net capital lease liability | $ | 21,979 | ||||||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||
Schedule of Other Assets | Other assets consisted of the following: | |||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||
Receivables from trusts, agencies and prior servicers | $ | 350,179 | $ | 203,385 | ||||||||||
Accrued revenues | 154,436 | 134,440 | ||||||||||||
Loans subject to repurchase right from Ginnie Mae | 131,592 | 120,736 | ||||||||||||
Real estate owned, net | 107,034 | 45,632 | ||||||||||||
Goodwill | 54,701 | 38,820 | ||||||||||||
Deferred financing costs | 46,986 | 73,030 | ||||||||||||
Intangible assets | 19,622 | 21,737 | ||||||||||||
Prepaid expenses | 9,837 | 21,993 | ||||||||||||
Collateral deposits on derivative instruments | 9,810 | 25,932 | ||||||||||||
Receivables from affiliates | 4,713 | 8,861 | ||||||||||||
Accrued interest | 1,890 | 6,970 | ||||||||||||
Other | 55,851 | 199,647 | ||||||||||||
Total other assets | $ | 946,651 | $ | 901,183 | ||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following table presents changes in the carrying amount of goodwill for the periods indicated: | |||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||
Balance at beginning of period | $ | 38,820 | $ | — | ||||||||||
Goodwill acquired during the period | 15,881 | 38,820 | ||||||||||||
Balance at end of period | $ | 54,701 | $ | 38,820 | ||||||||||
The following tables presents our intangible assets for the periods indicated: | ||||||||||||||
31-Dec-14 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Life | |||||||||||
Trade name | $ | 18,595 | $ | (2,934 | ) | $ | 15,661 | 8.4 | ||||||
Customer relationships | 4,143 | (747 | ) | 3,396 | 8.2 | |||||||||
Licenses | 557 | — | 557 | Indefinite | ||||||||||
Trademark | 8 | — | 8 | Indefinite | ||||||||||
$ | 23,303 | $ | (3,681 | ) | $ | 19,622 | 8.4 | |||||||
31-Dec-13 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Life | |||||||||||
Trade name | $ | 18,530 | $ | (1,081 | ) | $ | 17,449 | 9.4 | ||||||
Customer relationships | 4,070 | (339 | ) | 3,731 | 9.2 | |||||||||
Licenses | 557 | — | 557 | Indefinite | ||||||||||
$ | 23,157 | $ | (1,420 | ) | $ | 21,737 | 9.4 | |||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The following table presents the estimated aggregate amortization expense for the periods indicated: | |||||||||||||
Amortization Expense | ||||||||||||||
2015 | $ | 2,277 | ||||||||||||
2016 | 2,277 | |||||||||||||
2017 | 2,277 | |||||||||||||
2018 | 2,277 | |||||||||||||
2019 | 2,277 | |||||||||||||
Thereafter | 7,672 | |||||||||||||
Total future amortization expense | $ | 19,057 | ||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 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 year ended December 31, 2014 | ||||||||||||||
ASSETS | ||||||||||||||
MORTGAGE LOANS HELD FOR SALE | ||||||||||||||
Loan sale commitments | 2015 | $ | 1,666 | $ | (4 | ) | $ | (11 | ) | |||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||
IRLCs | 2015 | 2,556,169 | 87,902 | 774 | ||||||||||
Forward MBS trades | 2015 | 319,112 | 284 | (31,982 | ) | |||||||||
LPCs | 2015 | 287,089 | 1,999 | 1,206 | ||||||||||
Interest rate swaps and caps | 2018 | 124,650 | 865 | (1,673 | ) | |||||||||
Eurodollar futures | 2015-2017 | 40,000 | 1 | 1 | ||||||||||
LIABILITIES | ||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||
IRLCs | 2015 | 865 | 7 | 2,691 | ||||||||||
Interest rate swaps on ABS debt | 2015-2017 | 105,681 | 103 | 731 | ||||||||||
Forward MBS trades | 2015 | 2,958,700 | 18,360 | (15,055 | ) | |||||||||
LPCs | 2015 | 30,494 | 48 | 1,641 | ||||||||||
Eurodollar futures | 2015-2017 | 80,000 | 7 | (7 | ) | |||||||||
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) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral Pledged | Outstanding | Collateral pledged | |||||||||||||||||||
Advance Facilities | ||||||||||||||||||||||||||
MBS advance financing facility(1) | LIBOR+2.50% to 4.00% | Mar-15 | Servicing advance receivables | $ | 475,000 | $ | 363,014 | $ | 418,126 | $ | 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(2) | LIBOR+1.20% to 3.75% | Oct-15 | Servicing advance receivables | $ | 1,100,000 | 805,706 | 885,115 | 851,957 | 918,574 | |||||||||||||||||
Reverse participations financing facility(3) | LIBOR+4.00% | Jun-14 | Reverse | $ | 150,000 | — | — | 102,031 | 124,536 | |||||||||||||||||
mortgage loans | ||||||||||||||||||||||||||
MBS advance financing facility (2012) | LIBOR+5.00% | Apr-15 | Servicing advance receivables | $ | 50,000 | 42,472 | 50,758 | 179,306 | 220,833 | |||||||||||||||||
Nationstar Mortgage Advance Receivable | LIBOR+1.15% to 5.30% | Jun-18 | Servicing advance receivables | $ | 475,000 | 419,170 | 471,243 | 1,240,940 | 1,347,410 | |||||||||||||||||
Trust (4) | ||||||||||||||||||||||||||
MBS servicer advance facility (2014) | LIBOR+3.50% | Jul-15 | Servicing advance receivables | $ | 80,000 | 79,084 | 138,010 | — | — | |||||||||||||||||
Nationstar servicer advance receivables trust 2014 - BC | LIBOR+1.50% to 3.00% | Nov-15 | Servicing advance receivables | $ | 200,000 | 106,115 | 121,030 | — | — | |||||||||||||||||
Securities repurchase facility (2014) | LIBOR+1.50% to 2.00% | Nov-17 | HECM Security Interest | $ | — | 51,609 | 74,525 | — | — | |||||||||||||||||
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 | |||||||||||||||||
1,901,783 | 2,214,410 | 4,550,424 | 5,083,205 | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Interest Rate | Maturity Date | Collateral | Capacity Amount | Outstanding | Collateral Pledged | Outstanding | Collateral pledged | |||||||||||||||||||
Warehouse Facilities | ||||||||||||||||||||||||||
$1.5 billion warehouse facility | LIBOR+2.00% to 2.875% | Oct-15 | Mortgage loans or MBS | $ | 1,500,000 | 663,167 | 697,257 | 797,281 | 891,648 | |||||||||||||||||
$750 million warehouse facility | LIBOR+1.75% to 2.50% | Apr-15 | Mortgage loans or MBS | $ | 750,000 | 307,294 | 320,285 | 639,378 | 673,599 | |||||||||||||||||
$500 million warehouse facility | LIBOR+1.75% to 2.75% | Sep-15 | Mortgage loans or MBS | $ | 500,000 | 176,194 | 179,994 | 111,980 | 115,629 | |||||||||||||||||
$500 million warehouse facility | LIBOR+0.75% to 3.50% | Jun-15 | Mortgage loans or MBS | $ | 500,000 | — | — | 214,570 | 224,162 | |||||||||||||||||
$500 million warehouse facility | LIBOR+ 1.50% to 2.25% | Jun-15 | Mortgage loans or MBS | $ | 500,000 | 183,290 | 192,990 | 447,926 | 477,980 | |||||||||||||||||
$300 million warehouse facility(6) | LIBOR +2.50% | Sep-14 | Mortgage loans or MBS | $ | 300,000 | — | — | 159,435 | 166,482 | |||||||||||||||||
$200 million warehouse facility(7) | LIBOR+2.75% to 3.25% | Feb-15 | Mortgage loans or MBS | $ | 200,000 | 210,049 | $ | 223,849 | 63,357 | 93,098 | ||||||||||||||||
$75 million warehouse facility (HCM)(8) | LIBOR+ 2.25% to 2.875% | Oct-15 | Mortgage loans or MBS | $ | 125,000 | 23,949 | 29,324 | — | — | |||||||||||||||||
$50 million warehouse facility (HCM) | LIBOR + 2.50% to 2.75% | Nov-15 | Mortgage loans or MBS | $ | 50,000 | 8,679 | 9,044 | — | — | |||||||||||||||||
ASAP+ facility | LIBOR+1.50% | Up to 45 days | GSE mortgage loans or GSE MBS | $ | — | — | — | — | — | |||||||||||||||||
$ | 1,572,622 | $ | 1,652,743 | $ | 2,433,927 | $ | 2,642,598 | |||||||||||||||||||
Mortgage loans held for sale | 1,196,956 | 1,241,043 | 2,297,042 | 2,464.70 | ||||||||||||||||||||||
Reverse mortgage interests | 375,666 | 411,700 | 136,885 | 177.895 | ||||||||||||||||||||||
(1) The capacity of this facility will decrease from $475.0 million to $130.0 million as of January 30, 2015. | ||||||||||||||||||||||||||
(2) This facility has both variable funding notes (VFN) and term notes. Nationstar issued $300.0 million in term notes to institutional investors and plans to redeem $200.0 million of the notes on February 17, 2015. The notes have a weighted average interest rate of 1.46% and a weighted average term of 3.0 years. The capacity limit on this facility will be increased to $1.5 billion as of January 30, 2015. | ||||||||||||||||||||||||||
(3) This facility was partially secured by reverse mortgage loans and partially unsecured. The facility also expired in June 2014 and was not renewed. | ||||||||||||||||||||||||||
(4) 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. The notes scheduled to mature in June 2014 were redeemed in January 2014. The notes scheduled to mature in June 2016 were redeemed in June 2014. | ||||||||||||||||||||||||||
(5) Nationstar terminated this advance receivable facility in May 2014 at which time all outstanding balances had been repaid. | ||||||||||||||||||||||||||
(6) This facility expired in September 2014 and was not renewed. | ||||||||||||||||||||||||||
(7) The capacity for this facility had a temporary increase to $225.0 million as of December 31, 2014. | ||||||||||||||||||||||||||
(8) This facility is a sublimit of the $1.5 billion facility specific to HCM. The $125.0 million capacity was a temporary increase from $75.0 million effective November 14, 2014 through December 31, 2014. | ||||||||||||||||||||||||||
A summary of the balances of unsecured senior notes is presented below: | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
$285 million face value, 10.875% interest rate payable semi-annually, due April 2015 | $ | — | $ | 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 | 378,555 | 379,360 | ||||||||||||||||||||||||
$400 million face value, 7.875% interest rate payable semi-annually, due October 2020 | 400,541 | 400,634 | ||||||||||||||||||||||||
$600 million face value, 6.500% interest rate payable semi-annually, due July 2021 | 605,135 | 605,915 | ||||||||||||||||||||||||
$300 million face value, 6.500% interest rate payable semi-annually, due June 2022 | 300,000 | 300,000 | ||||||||||||||||||||||||
Total | $ | 2,159,231 | $ | 2,444,062 | ||||||||||||||||||||||
A summary of the balances of other nonrecourse debt is presented below: | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Participating interest financing | $ | 1,433,145 | $ | 1,103,490 | ||||||||||||||||||||||
2014-1 HECM securitization | 259,328 | — | ||||||||||||||||||||||||
Nonrecourse debt - Legacy Assets | 75,838 | 89,107 | ||||||||||||||||||||||||
Total | $ | 1,768,311 | $ | 1,192,597 | ||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | As of December 31, 2014, the expected maturities of Nationstar's unsecured senior notes based on contractual maturities are as follows: | |||||||||||||||||||||||||
Year | Amount | |||||||||||||||||||||||||
2015 | $ | — | ||||||||||||||||||||||||
2016 | — | |||||||||||||||||||||||||
2017 | — | |||||||||||||||||||||||||
2018 | 475,000 | |||||||||||||||||||||||||
2019 | 375,000 | |||||||||||||||||||||||||
Thereafter | 1,300,000 | |||||||||||||||||||||||||
Total | $ | 2,150,000 | ||||||||||||||||||||||||
Variable_Interest_Entities_and1
Variable Interest Entities and Securitizations (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Variable Interest Entities and Securitizations [Abstract] | ||||||||||||||||||||||||
Schedule of Assets and Liabilities of VIEs Included in Financial Statements | A summary of mortgage loans transferred by Nationstar 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 | 31-Dec-14 | December 31, 2013 | ||||||||||||||||||||||
Unconsolidated securitization trusts | $ | 861,419 | $ | 1,142,940 | ||||||||||||||||||||
For the year ended December 31, | ||||||||||||||||||||||||
Credit Losses | 2014 | 2013 | 2012 | |||||||||||||||||||||
Unconsolidated securitization trusts | $ | 275,726 | $ | 251,076 | $ | 273,817 | ||||||||||||||||||
Certain cash flows received from securitization trusts related to the transfer of mortgage loans accounted for as sales for the dates indicated were as follows: | ||||||||||||||||||||||||
For the year ended December 31, | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||
Servicing Fees | Loan | Servicing Fees | Loan | Servicing Fees | Loan | |||||||||||||||||||
Received | Repurchases | Received | Repurchases | Received | Repurchases | |||||||||||||||||||
Unconsolidated securitization trusts | $ | 28,284 | $ | — | $ | 29,151 | $ | — | $ | 28,049 | $ | — | ||||||||||||
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: | ||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | |||||||||||||||||||||||
Total collateral balances | $ | 3,258,472 | $ | 3,831,473 | ||||||||||||||||||||
Total certificate balances | 3,297,256 | 3,843,694 | ||||||||||||||||||||||
A summary of the assets and liabilities of Nationstar’s transactions with VIEs included in the Company’s consolidated financial statements is presented below for the periods indicated: | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Transfers | Reverse Secured Borrowings | Transfers | Reverse Secured Borrowings | |||||||||||||||||||||
Accounted for as | Accounted for as | |||||||||||||||||||||||
Secured | Secured | |||||||||||||||||||||||
Borrowings | Borrowings | |||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Restricted cash | $ | 90,068 | $ | 15,578 | $ | 272,188 | $ | — | ||||||||||||||||
Reverse mortgage interests | — | 1,642,789 | — | 1,039,645 | ||||||||||||||||||||
Advances | 1,477,388 | — | 4,030,280 | — | ||||||||||||||||||||
Mortgage loans held for investment, net | 189,456 | — | 208,263 | — | ||||||||||||||||||||
Derivative financial instruments | 865 | — | 3,691 | — | ||||||||||||||||||||
Other Assets | 2,678 | 61,703 | 3,539 | — | ||||||||||||||||||||
Total Assets | $ | 1,760,455 | $ | 1,720,070 | $ | 4,517,961 | $ | 1,039,645 | ||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Advance Facilities | $ | 1,330,991 | $ | — | $ | 3,672,726 | $ | — | ||||||||||||||||
Payables and accrued liabilities | 1,596 | 186 | 4,242 | — | ||||||||||||||||||||
Nonrecourse debt–Legacy Assets | 75,838 | — | 89,107 | — | ||||||||||||||||||||
2014-1 HECM Securitization | — | 259,328 | — | — | ||||||||||||||||||||
Participating interest financing | — | 1,433,145 | — | 1,080,718 | ||||||||||||||||||||
Total Liabilities | $ | 1,408,425 | $ | 1,692,659 | $ | 3,766,075 | $ | 1,080,718 | ||||||||||||||||
Details of the securitization structured as a sale are shown below for the periods indicated: | ||||||||||||||||||||||||
Sale Date | Net Bond Proceeds | Carrying Value of Loans Sold | Gain Recognized | |||||||||||||||||||||
Nationstar Mortgage-Backed Notes, Series 2013-A | 2013 | $ | 164,297 | $ | 158,204 | $ | 6,093 | |||||||||||||||||
Accounts_Payable_Tables
Accounts Payable (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Schedule of Payables and Accrued Liabilities | Payables and accrued liabilities consist of the following: | |||||||
December 31, 2014 | December 31, 2013 | |||||||
Payables to servicing and subservicing investors | $ | 329,306 | $ | 359,214 | ||||
Payable to insurance carriers and insurance cancellation reserves | 163,381 | 164,244 | ||||||
Loans subject to repurchase from Ginnie Mae | 131,592 | 120,736 | ||||||
Taxes | 96,237 | 35,961 | ||||||
Accrued bonus and payroll | 85,366 | 66,755 | ||||||
Accrued interest | 59,708 | 76,303 | ||||||
MSR purchases payable including advances | 45,697 | 135,759 | ||||||
Repurchase reserves | 29,165 | 40,695 | ||||||
Other | 381,626 | 308,783 | ||||||
Total payables and accrued liabilities | $ | 1,322,078 | $ | 1,308,450 | ||||
Schedule of Loans Subject to Repurchase Reserve [Table Text Block] | The activity of the outstanding repurchase reserves were as follows: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Repurchase reserves, beginning of period | $ | 40,695 | $ | 18,511 | ||||
Additions | 12,556 | 33,121 | ||||||
Charge-offs | (2,925 | ) | (10,937 | ) | ||||
Adjustments, including expired indemnifications | (21,161 | ) | — | |||||
Repurchase reserves, end of period | $ | 29,165 | $ | 40,695 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of income tax expense (benefit) on continuing operations were as follows (in thousands): | ||||||||||||||||||||
For the year ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Current | |||||||||||||||||||||
Federal | $ | 46,381 | $ | 4,636 | $ | 82,120 | |||||||||||||||
State | 7,608 | (1,059 | ) | 10,126 | |||||||||||||||||
53,989 | 3,577 | 92,246 | |||||||||||||||||||
Deferred | |||||||||||||||||||||
Federal | 6,360 | 114,466 | (18,721 | ) | |||||||||||||||||
State | 4,511 | 11,157 | (2,229 | ) | |||||||||||||||||
10,871 | 125,623 | (20,950 | ) | ||||||||||||||||||
Total | $ | 64,860 | $ | 129,200 | $ | 71,296 | |||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Income tax expense differs from the amounts computed by applying the U.S. Federal corporate tax rate of 35% as follows for the period indicated (dollars in thousands): | ||||||||||||||||||||
For the year ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Tax expense at federal statutory rate | $ | 100,058 | 35 | % | $ | 121,186 | 35 | % | $ | 96,804 | 35 | % | |||||||||
Effect of: | |||||||||||||||||||||
State taxes, net of federal benefit | 8,330 | 2.9 | % | 5,465 | 1.6 | % | 6,129 | 2.2 | % | ||||||||||||
Pre-reorganization earnings | — | — | % | — | — | % | (14,302 | ) | (5.2 | )% | |||||||||||
Increase/(decrease) of valuation allowance | (40,275 | ) | (14.1 | )% | 1,099 | 0.3 | % | (17,767 | ) | (6.4 | )% | ||||||||||
Other, net | (3,253 | ) | (1.1 | )% | 1,450 | 0.4 | % | 432 | 0.2 | % | |||||||||||
Total income tax expense | $ | 64,860 | 22.7 | % | $ | 129,200 | 37.3 | % | $ | 71,296 | 25.8 | % | |||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Temporary differences and carryforwards that give rise to deferred tax assets and liabilities are comprised of the following (in thousands): | ||||||||||||||||||||
31-Dec | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Deferred Tax Assets | |||||||||||||||||||||
Effect of: | |||||||||||||||||||||
Loss carryforwards (federal, state & capital) | $ | 67,799 | $ | 75,387 | |||||||||||||||||
Loss reserves | 41,467 | 28,808 | |||||||||||||||||||
Reverse mortgage premiums | 26,227 | 23,756 | |||||||||||||||||||
Rent expense | 2,138 | 5,389 | |||||||||||||||||||
Restricted share based compensation | 11,159 | 4,847 | |||||||||||||||||||
Goodwill | 427 | 1,297 | |||||||||||||||||||
Other, net | 9,094 | 6,632 | |||||||||||||||||||
Total Deferred Tax Assets | 158,311 | 146,116 | |||||||||||||||||||
Deferred Tax Liabilities | |||||||||||||||||||||
MSR Amortization and Mark To Mark, net | (228,987 | ) | (185,225 | ) | |||||||||||||||||
Depreciation and amortization, net | (31,997 | ) | (9,745 | ) | |||||||||||||||||
Prepaid assets | (888 | ) | (2,054 | ) | |||||||||||||||||
Cash flow hedges | — | (843 | ) | ||||||||||||||||||
Other, net | 107 | (4,312 | ) | ||||||||||||||||||
Total Deferred Tax Liabilities | (261,765 | ) | (202,179 | ) | |||||||||||||||||
Valuation Allowance | (6,391 | ) | (46,666 | ) | |||||||||||||||||
Net Deferred Tax Liability | $ | (109,845 | ) | $ | (102,729 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 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: | |||||||||||||||
31-Dec-14 | ||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
ASSETS | ||||||||||||||||
Mortgage loans held for sale(1) | $ | 1,277,931 | $ | — | $ | 1,277,931 | $ | — | ||||||||
Mortgage servicing rights(1) | 2,949,739 | — | — | 2,949,739 | ||||||||||||
Derivative financial instruments: | ||||||||||||||||
IRLCs | 87,902 | — | 87,902 | — | ||||||||||||
Forward MBS trades | 284 | — | 284 | — | ||||||||||||
LPCs | 1,999 | — | 1,999 | — | ||||||||||||
Interest rate swaps and caps | 865 | — | 865 | — | ||||||||||||
Eurodollar futures | 1 | — | 1 | — | ||||||||||||
Total assets | $ | 4,318,721 | $ | — | $ | 1,368,982 | $ | 2,949,739 | ||||||||
LIABILITIES | ||||||||||||||||
Derivative financial instruments | ||||||||||||||||
IRLCs | $ | 7 | $ | — | $ | 7 | $ | — | ||||||||
Interest rate swaps on ABS debt | 103 | — | 103 | — | ||||||||||||
Forward MBS trades | 18,360 | — | 18,360 | — | ||||||||||||
LPCs | 48 | — | 48 | — | ||||||||||||
Eurodollar futures | 7 | — | 7 | — | ||||||||||||
Mortgage servicing rights financing | 49,430 | — | — | 49,430 | ||||||||||||
Excess spread financing | 1,031,035 | — | — | 1,031,035 | ||||||||||||
Total liabilities | $ | 1,098,990 | $ | — | $ | 18,525 | $ | 1,080,465 | ||||||||
31-Dec-13 | ||||||||||||||||
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(1) | 2,488,283 | — | — | 2,488,283 | ||||||||||||
Other assets: | ||||||||||||||||
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 | 986,410 | — | — | 986,410 | ||||||||||||
Total liabilities | $ | 1,024,810 | $ | — | $ | 8,526 | $ | 1,016,284 | ||||||||
(1) | Based on the nature and risks of these assets and liabilities, 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 year ended December 31, 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 | (247,379 | ) | 57,554 | (33,279 | ) | |||||||||||
Included in other comprehensive income | — | — | — | |||||||||||||
Purchases, issuances, sales and settlements | ||||||||||||||||
Purchases | 470,543 | — | — | |||||||||||||
Issuances | 238,292 | 171,317 | 52,835 | |||||||||||||
Sales | — | — | — | |||||||||||||
Settlements | — | (184,246 | ) | — | ||||||||||||
Ending balance | $ | 2,949,739 | $ | 1,031,035 | $ | 49,430 | ||||||||||
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. | |||||||||||||||
31-Dec-14 | ||||||||||||||||
Carrying | Fair Value | |||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and cash equivalents | $ | 299,002 | $ | 299,002 | $ | — | $ | — | ||||||||
Restricted cash | 285,530 | 285,530 | — | — | ||||||||||||
Mortgage loans held for sale | 1,277,931 | — | 1,277,931 | — | ||||||||||||
Mortgage loans held for investment, net | 191,569 | — | — | 192,865 | ||||||||||||
Reverse mortgage interests | 2,383,647 | — | — | 2,432,735 | ||||||||||||
Derivative instruments | 91,051 | — | 91,051 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Unsecured senior notes | 2,159,231 | 2,057,038 | — | — | ||||||||||||
Advance Facilities | 1,901,783 | — | 1,901,783 | — | ||||||||||||
Warehouse Facilities | 1,572,622 | — | 1,572,622 | — | ||||||||||||
Derivative financial instruments | 18,525 | — | 18,525 | — | ||||||||||||
Excess spread financing | 1,031,035 | — | — | 1,031,035 | ||||||||||||
Mortgage servicing rights financing liability | 49,430 | — | — | 49,430 | ||||||||||||
Nonrecourse debt - Legacy assets | 75,838 | — | — | 86,570 | ||||||||||||
Participating interest financing | 1,433,145 | — | 1,423,291 | — | ||||||||||||
2014-1 HECM Securitization | 259,328 | — | — | 259,328 | ||||||||||||
31-Dec-13 | ||||||||||||||||
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, subject to nonrecourse debt – Legacy assets | 211,050 | — | — | 180,435 | ||||||||||||
Reverse mortgage interests | 1,434,506 | — | — | 1,405,197 | ||||||||||||
Derivative instruments | 123,878 | — | 123,878 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Advance Facilities | 4,550,424 | — | 4,550,424 | |||||||||||||
Warehouse Facilities | 2,433,927 | 2,433,927 | ||||||||||||||
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 | ||||||||||||
Sharebased_Compensation_Tables
Share-based Compensation (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following table summarizes information about the awards under the 2012 Plan for the periods indicated: | |||||||
Shares | Remaining Contractual Term (in years) (1) | |||||||
Grant Date Fair Value, per share | ||||||||
Restricted stock granted in conjunction with the initial public offering in March 2012 | 1,277 | $14.00 | 0.2 | |||||
Grants issued subsequent to public offering | 69 | $29.95 | 0.5 | |||||
Forfeited | -53 | $14.00 | ||||||
Restricted stock outstanding at December 31, 2012 | 1,293 | |||||||
Grants issued in 2013 | 307 | $37.88 | 1.2 | |||||
Forfeited | -56 | $20.46 | ||||||
Vested | -310 | |||||||
Shares surrendered to treasury to pay taxes | -168 | |||||||
Restricted stock outstanding at December 31, 2013 | 1,066 | |||||||
Grants issued in 2014 | 1,042 | $31.65 | 2.4 | |||||
Forfeited | -151 | $28.01 | ||||||
Vested | -354 | |||||||
Shares surrendered to treasury to pay taxes | -174 | |||||||
Restricted stock outstanding at December 31, 2014 | 1,429 | |||||||
Restricted stock unvested and expected to vest | 1,313 | |||||||
Restricted stock vested and payable at December 31, 2014 | — | |||||||
(1) Remaining contractual term is as of December 31, 2014. | ||||||||
The following table summarizes the vesting schedule of the restricted stock grants: | ||||||||
2015 | 2016 | 2017 | 2018 | |||||
Restricted Stock expected to vest | 662 | 328 | 254 | 69 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | Minimum annual rental commitments for office leases with unrelated parties and with initial or remaining terms of one year or more, net of sublease payments, are presented below. | |||
Year | Amount | |||
2015 | $ | 23,302 | ||
2016 | 22,302 | |||
2017 | 18,345 | |||
2018 | 17,034 | |||
Thereafter | 38,850 | |||
Total | $ | 119,833 | ||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Restructuring and Related Costs [Table Text Block] | The following table summarizes, by category, the Company’s restructuring charges activity for the periods indicated below. | |||||||||||||||
Liability | Restructuring | Restructuring | Liability | |||||||||||||
Balance at January 1 | Adjustments | Settlements | Balance at December 31 | |||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||
Restructuring charges: | ||||||||||||||||
Employee Severance and Other | $ | 4,650 | $ | — | $ | (4,650 | ) | $ | — | |||||||
Lease terminations | 8,636 | (581 | ) | (4,076 | ) | 3,979 | ||||||||||
Total | $ | 13,286 | $ | (581 | ) | $ | (8,726 | ) | $ | 3,979 | ||||||
For the year ended December 31, 2013 | ||||||||||||||||
Restructuring charges: | ||||||||||||||||
Employee Severance and Other | $ | — | $ | 8,765 | $ | (4,115 | ) | $ | 4,650 | |||||||
Lease terminations | 7,186 | 4,108 | (2,658 | ) | 8,636 | |||||||||||
Total | $ | 7,186 | $ | 12,873 | $ | (6,773 | ) | $ | 13,286 | |||||||
For the year ended December 31, 2012 | ||||||||||||||||
Restructuring charges: | ||||||||||||||||
Employee Severance and Other | $ | — | $ | — | $ | — | $ | — | ||||||||
Lease terminations | 8,460 | 500 | (1,774 | ) | 7,186 | |||||||||||
Total | $ | 8,460 | $ | 500 | $ | (1,774 | ) | $ | 7,186 | |||||||
Business_Segment_Reporting_Tab
Business Segment Reporting (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | The following tables are a presentation of financial information by segment for the periods indicated: | |||||||||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||||||||||
Servicing | Originations | Solutionstar | Total Operating | Corporate and Other | Eliminations | Consolidated | ||||||||||||||||||||||
Segments | ||||||||||||||||||||||||||||
REVENUES: | ||||||||||||||||||||||||||||
Service related | $ | 1,006,837 | $ | 43,954 | $ | 321,801 | $ | 1,372,592 | $ | 4,713 | $ | (1,443 | ) | $ | 1,375,862 | |||||||||||||
Net gain on mortgage loans held for sale | 64,506 | 535,273 | — | 599,779 | (2,573 | ) | — | 597,206 | ||||||||||||||||||||
Total revenues | 1,071,343 | 579,227 | 321,801 | 1,972,371 | 2,140 | (1,443 | ) | 1,973,068 | ||||||||||||||||||||
Total expenses and impairments | 697,878 | 390,497 | 188,866 | 1,277,241 | 80,450 | — | 1,357,691 | |||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest income | 91,713 | 72,031 | — | 163,744 | 14,405 | 1,443 | 179,592 | |||||||||||||||||||||
Interest expense | (246,099 | ) | (70,237 | ) | (360 | ) | (316,696 | ) | (199,691 | ) | — | (516,387 | ) | |||||||||||||||
Gain on sale of property | — | — | — | — | 4,898 | — | 4,898 | |||||||||||||||||||||
Gain (loss) on interest rate swaps and caps | 1,672 | — | — | 1,672 | 732 | — | 2,404 | |||||||||||||||||||||
Total other income (expense) | (152,714 | ) | 1,794 | (360 | ) | (151,280 | ) | (179,656 | ) | 1,443 | (329,493 | ) | ||||||||||||||||
Income (loss) before taxes | $ | 220,751 | $ | 190,524 | $ | 132,575 | $ | 543,850 | $ | (257,966 | ) | $ | — | $ | 285,884 | |||||||||||||
Depreciation and amortization | $ | 13,997 | $ | 9,642 | $ | 3,730 | $ | 27,369 | $ | 12,797 | $ | — | $ | 40,166 | ||||||||||||||
Total assets | 8,774,135 | 1,400,880 | 218,446 | 10,393,461 | 719,214 | — | 11,112,675 | |||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||||||||||
Servicing | Originations | Solutionstar | Total Operating | Corporate and Other | Eliminations | Consolidated | ||||||||||||||||||||||
Segments | ||||||||||||||||||||||||||||
REVENUES: | ||||||||||||||||||||||||||||
Service related | $ | 1,175,487 | $ | 62,011 | $ | 146,608 | $ | 1,384,106 | $ | 1,750 | $ | (1,634 | ) | $ | 1,384,222 | |||||||||||||
Net gain on mortgage loans held for sale | 61,624 | 650,357 | — | 711,981 | (9,218 | ) | — | 702,763 | ||||||||||||||||||||
Total revenues | 1,237,111 | 712,368 | 146,608 | 2,096,087 | (7,468 | ) | (1,634 | ) | 2,086,985 | |||||||||||||||||||
Total expenses and impairments | 608,978 | 589,986 | 112,739 | 1,311,703 | 90,575 | — | 1,402,278 | |||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest income | 90,913 | 87,713 | — | 178,626 | 16,960 | 1,634 | 197,220 | |||||||||||||||||||||
Interest expense | (279,501 | ) | (79,106 | ) | (264 | ) | (358,871 | ) | (179,934 | ) | — | (538,805 | ) | |||||||||||||||
Gain (loss) on interest rate swaps and caps | 1,856 | — | — | 1,856 | 1,276 | — | 3,132 | |||||||||||||||||||||
Total other income (expense) | (186,732 | ) | 8,607 | (264 | ) | (178,389 | ) | (161,698 | ) | 1,634 | (338,453 | ) | ||||||||||||||||
Income (loss) before taxes | $ | 441,401 | $ | 130,989 | $ | 33,605 | $ | 605,995 | $ | (259,741 | ) | $ | — | $ | 346,254 | |||||||||||||
Depreciation and amortization | $ | 14,955 | $ | 6,569 | $ | 1,161 | $ | 22,685 | $ | 3,930 | $ | — | $ | 26,615 | ||||||||||||||
Total assets | 9,969,390 | 2,777,928 | 41,499 | 12,788,817 | 1,237,872 | — | 14,026,689 | |||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||||||||||
Servicing | Originations | Solutionstar | Total Operating | Corporate and Other | Eliminations | Consolidated | ||||||||||||||||||||||
Segments | ||||||||||||||||||||||||||||
REVENUES: | ||||||||||||||||||||||||||||
Service related | $ | 488,768 | $ | (291 | ) | $ | 8,366 | $ | 496,843 | $ | 2,101 | $ | (1,793 | ) | $ | 497,151 | ||||||||||||
Net gain on mortgage loans held for sale | — | 487,142 | — | 487,142 | — | 22 | 487,164 | |||||||||||||||||||||
Total revenues | 488,768 | 486,851 | 8,366 | 983,985 | 2,101 | (1,771 | ) | 984,315 | ||||||||||||||||||||
Total expenses and impairments | 315,101 | 195,480 | 4,463 | 515,044 | 67,001 | — | 582,045 | |||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest income | 30,936 | 20,426 | — | 51,362 | 18,431 | 1,793 | 71,586 | |||||||||||||||||||||
Interest expense | (102,570 | ) | (18,478 | ) | — | (121,048 | ) | (76,238 | ) | (22 | ) | (197,308 | ) | |||||||||||||||
Contract termination fees | 15,600 | — | — | 15,600 | — | — | 15,600 | |||||||||||||||||||||
Loss on equity method investments | (14,571 | ) | — | — | (14,571 | ) | — | — | (14,571 | ) | ||||||||||||||||||
Gain (loss) on interest rate swaps and caps | 1,237 | — | — | 1,237 | (2,231 | ) | — | (994 | ) | |||||||||||||||||||
Total other income (expense) | (69,368 | ) | 1,948 | — | (67,420 | ) | (60,038 | ) | 1,771 | (125,687 | ) | |||||||||||||||||
Income (loss) before taxes | $ | 104,299 | $ | 293,319 | $ | 3,903 | $ | 401,521 | $ | (124,938 | ) | $ | — | $ | 276,583 | |||||||||||||
Depreciation and amortization | $ | 6,126 | $ | 2,754 | $ | — | $ | 8,880 | $ | 740 | $ | — | $ | 9,620 | ||||||||||||||
Total assets | 4,981,987 | 1,721,541 | — | 6,703,528 | 422,615 | — | 7,126,143 | |||||||||||||||||||||
Guarantor_Financial_Statement_1
Guarantor Financial Statement Information (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||||||
Consolidating Balance Sheets | NATIONSTAR MORTGAGE HOLDINGS INC | |||||||||||||||||||||||
CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
(Parent) | (Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 422,268 | $ | 3,907 | $ | 15,727 | $ | — | $ | 441,902 | ||||||||||||
Restricted cash | — | 312,120 | 3 | 280,624 | — | 592,747 | ||||||||||||||||||
Mortgage servicing rights | — | 2,503,162 | — | — | — | 2,503,162 | ||||||||||||||||||
Advances | — | 5,003,193 | — | (991 | ) | — | 5,002,202 | |||||||||||||||||
Reverse mortgage interests | — | 1,528,000 | — | — | — | 1,528,000 | ||||||||||||||||||
Mortgage loans held for sale | — | 2,603,380 | — | — | — | 2,603,380 | ||||||||||||||||||
Mortgage loans held for investment, net | — | 2,786 | — | 208,264 | — | 211,050 | ||||||||||||||||||
Property and equipment, net | — | 115,765 | 855 | 2,565 | — | 119,185 | ||||||||||||||||||
Derivative financial instruments | — | 120,187 | — | 3,691 | — | 123,878 | ||||||||||||||||||
Other assets | 21,872 | 1,306,997 | 325,928 | 7,440,111 | (8,193,725 | ) | 901,183 | |||||||||||||||||
Investment in subsidiaries | 968,026 | 181,545 | — | — | (1,149,571 | ) | — | |||||||||||||||||
Total Assets | $ | 989,898 | $ | 14,099,403 | $ | 330,693 | $ | 7,949,991 | $ | (9,343,296 | ) | $ | 14,026,689 | |||||||||||
Liabilities and members’ equity | ||||||||||||||||||||||||
Unsecured senior notes | $ | — | $ | 2,444,062 | $ | — | $ | — | $ | — | $ | 2,444,062 | ||||||||||||
Advance facilities | — | 877,698 | — | 3,672,726 | — | 4,550,424 | ||||||||||||||||||
Warehouse facilities | — | 2,433,927 | — | — | — | 2,433,927 | ||||||||||||||||||
Payables and accrued liabilities | — | 1,319,172 | 5,950 | 14,791 | (31,463 | ) | 1,308,450 | |||||||||||||||||
MSR related liabilities - nonrecourse | — | 1,016,284 | — | — | — | 1,016,284 | ||||||||||||||||||
Mortgage servicing liabilities | — | 82,521 | — | — | — | 82,521 | ||||||||||||||||||
Derivative financial instruments | — | 8,526 | — | — | — | 8,526 | ||||||||||||||||||
Other nonrecourse debt | — | 1,103,490 | — | 89,107 | — | 1,192,597 | ||||||||||||||||||
Payables to affiliates | — | 3,845,697 | 116,349 | 4,200,216 | (8,162,262 | ) | — | |||||||||||||||||
Total liabilities | — | 13,131,377 | 122,299 | 7,976,840 | (8,193,725 | ) | 13,036,791 | |||||||||||||||||
Total equity | 989,898 | 968,026 | 208,394 | (26,849 | ) | (1,149,571 | ) | 989,898 | ||||||||||||||||
Total liabilities and equity | $ | 989,898 | $ | 14,099,403 | $ | 330,693 | $ | 7,949,991 | $ | (9,343,296 | ) | $ | 14,026,689 | |||||||||||
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 | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
Assets | Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | |||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 279,770 | $ | 288 | $ | 18,944 | $ | — | $ | 299,002 | ||||||||||||
Restricted cash | — | 177,090 | — | 108,440 | — | 285,530 | ||||||||||||||||||
Mortgage servicing rights | — | 2,961,321 | — | — | — | 2,961,321 | ||||||||||||||||||
Advances | — | 2,544,065 | — | 2,297 | — | 2,546,362 | ||||||||||||||||||
Reverse mortgage interests | — | 2,104,082 | — | 279,565 | — | 2,383,647 | ||||||||||||||||||
Mortgage loans held for sale | — | 1,243,700 | — | 34,231 | — | 1,277,931 | ||||||||||||||||||
Mortgage loans held for investment, net | — | 1,945 | — | 189,624 | — | 191,569 | ||||||||||||||||||
Property and equipment, net | — | 114,903 | 835 | 13,873 | — | 129,611 | ||||||||||||||||||
Derivative financial instruments | — | 87,911 | — | 3,140 | — | 91,051 | ||||||||||||||||||
Other assets | 16,383 | 1,076,780 | 272,654 | 1,389,781 | (1,808,947 | ) | 946,651 | |||||||||||||||||
Investment in subsidiaries | 1,207,895 | 450,363 | — | — | (1,658,258 | ) | — | |||||||||||||||||
Total assets | $ | 1,224,278 | $ | 11,041,930 | $ | 273,777 | $ | 2,039,895 | $ | (3,467,205 | ) | $ | 11,112,675 | |||||||||||
Liabilities and stockholders’ equity | ||||||||||||||||||||||||
Unsecured senior notes | $ | — | $ | 2,159,231 | $ | — | $ | — | $ | — | 2,159,231 | |||||||||||||
Advance facilities | — | 570,792 | — | 1,330,991 | — | 1,901,783 | ||||||||||||||||||
Warehouse facilities | — | 1,539,994 | — | 32,628 | — | 1,572,622 | ||||||||||||||||||
Payables and accrued liabilities | — | 1,282,895 | 25 | 39,158 | — | 1,322,078 | ||||||||||||||||||
MSR related liabilities - nonrecourse | — | 1,080,465 | — | — | — | 1,080,465 | ||||||||||||||||||
Mortgage servicing liabilities | — | 65,382 | — | — | — | 65,382 | ||||||||||||||||||
Derivative financial instruments | — | 18,525 | — | — | — | 18,525 | ||||||||||||||||||
Other nonrecourse debt | — | 1,433,145 | — | 335,166 | — | 1,768,311 | ||||||||||||||||||
Payables to affiliates | — | 1,683,606 | 894 | 124,447 | (1,808,947 | ) | — | |||||||||||||||||
Total liabilities | — | 9,834,035 | 919 | 1,862,390 | (1,808,947 | ) | 9,888,397 | |||||||||||||||||
Total equity | 1,224,278 | 1,207,895 | 272,858 | 177,505 | (1,658,258 | ) | 1,224,278 | |||||||||||||||||
Total liabilities and equity | $ | 1,224,278 | $ | 11,041,930 | $ | 273,777 | $ | 2,039,895 | $ | (3,467,205 | ) | $ | 11,112,675 | |||||||||||
Consolidating Statements of Operations | ||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
(Parent) | (Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Service related | $ | — | $ | 1,211,717 | $ | 129,689 | $ | 101,704 | $ | (58,888 | ) | $ | 1,384,222 | |||||||||||
Net gain on mortgage loans held for sale | — | 645,509 | — | — | 57,254 | 702,763 | ||||||||||||||||||
Total Revenues | — | 1,857,226 | 129,689 | 101,704 | (1,634 | ) | 2,086,985 | |||||||||||||||||
Expenses and impairments: | ||||||||||||||||||||||||
Salaries, wages and benefits | — | 637,794 | 12,534 | 29,309 | — | 679,637 | ||||||||||||||||||
General and administrative | — | 612,307 | 3,630 | 75,859 | — | 691,796 | ||||||||||||||||||
Occupancy | — | 29,121 | 431 | 1,293 | — | 30,845 | ||||||||||||||||||
Total expenses and impairments | — | 1,279,222 | 16,595 | 106,461 | — | 1,402,278 | ||||||||||||||||||
Other income / (expense): | ||||||||||||||||||||||||
Interest income | — | 179,445 | — | 16,141 | 1,634 | 197,220 | ||||||||||||||||||
Interest expense | — | (420,214 | ) | — | (118,591 | ) | — | (538,805 | ) | |||||||||||||||
Gain/(loss) on interest rate swaps and caps | — | 1,012 | — | 2,120 | — | 3,132 | ||||||||||||||||||
Gain / (loss) from subsidiaries | 217,054 | 8,007 | — | — | (225,061 | ) | — | |||||||||||||||||
Total other income / (expense) | 217,054 | (231,750 | ) | — | (100,330 | ) | (223,427 | ) | (338,453 | ) | ||||||||||||||
Income before taxes | 217,054 | 346,254 | 113,094 | (105,087 | ) | (225,061 | ) | 346,254 | ||||||||||||||||
Income tax expense/(benefit) | — | 129,200 | — | — | — | 129,200 | ||||||||||||||||||
Net Income | $ | 217,054 | $ | 217,054 | $ | 113,094 | $ | (105,087 | ) | $ | (225,061 | ) | $ | 217,054 | ||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. | ||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2014 | ||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
(Subsidiaries) | (Subsidiaries) | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Service related | $ | — | $ | 1,030,214 | $ | 47,588 | $ | 297,869 | $ | 191 | $ | 1,375,862 | ||||||||||||
Net gain on mortgage loans held for sale | — | 583,790 | — | 13,416 | — | 597,206 | ||||||||||||||||||
Total Revenues | — | 1,614,004 | 47,588 | 311,285 | 191 | 1,973,068 | ||||||||||||||||||
Expenses and Impairments: | ||||||||||||||||||||||||
Salaries, wages and benefits | — | 556,047 | 4,404 | 82,485 | — | 642,936 | ||||||||||||||||||
General and administrative | — | 559,150 | 1,586 | 121,766 | — | 682,502 | ||||||||||||||||||
Occupancy | — | 28,177 | 286 | 3,790 | — | 32,253 | ||||||||||||||||||
Total expenses and impairments | — | 1,143,374 | 6,276 | 208,041 | — | 1,357,691 | ||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest income | — | 158,508 | — | 21,275 | (191 | ) | 179,592 | |||||||||||||||||
Interest expense | — | (460,781 | ) | — | (55,606 | ) | — | (516,387 | ) | |||||||||||||||
Gain on disposal of property | — | 4,898 | — | — | — | 4,898 | ||||||||||||||||||
Gain on interest rate swaps and caps | — | 732 | — | 1,672 | — | 2,404 | ||||||||||||||||||
Gain/(loss) from subsidiaries | 220,718 | 111,897 | — | — | (332,615 | ) | — | |||||||||||||||||
Total other income (expense) | 220,718 | (184,746 | ) | — | (32,659 | ) | (332,806 | ) | (329,493 | ) | ||||||||||||||
Income/(loss) before taxes | 220,718 | 285,884 | 41,312 | 70,585 | (332,615 | ) | 285,884 | |||||||||||||||||
Income tax expense | — | 64,860 | — | — | — | 64,860 | ||||||||||||||||||
Net income/(loss) | 220,718 | 221,024 | 41,312 | 70,585 | (332,615 | ) | 221,024 | |||||||||||||||||
Less: Net gain attributable to noncontrolling interests | — | 306 | — | — | — | 306 | ||||||||||||||||||
Net income/(loss) excluding noncontrolling interests | $ | 220,718 | $ | 220,718 | $ | 41,312 | $ | 70,585 | $ | (332,615 | ) | $ | 220,718 | |||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor (Subsidiaries) | Eliminations | Consolidated | |||||||||||||||||||
(Subsidiaries) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Service related | $ | — | $ | 462,585 | $ | 35,891 | $ | 468 | $ | (1,793 | ) | $ | 497,151 | |||||||||||
Net gain on mortgage loans held for sale | — | 487,164 | — | — | — | 487,164 | ||||||||||||||||||
Total Revenues | — | 949,749 | 35,891 | 468 | (1,793 | ) | 984,315 | |||||||||||||||||
Expenses and impairments: | ||||||||||||||||||||||||
Salaries, wages and benefits | — | 349,012 | 9,443 | — | — | 358,455 | ||||||||||||||||||
General and administrative | — | 197,914 | 2,625 | 6,265 | — | 206,804 | ||||||||||||||||||
Occupancy | — | 16,734 | 52 | — | — | 16,786 | ||||||||||||||||||
Total expenses and impairments | — | 563,660 | 12,120 | 6,265 | — | 582,045 | ||||||||||||||||||
Other income / (expense): | ||||||||||||||||||||||||
Interest income | — | 51,307 | — | 18,486 | 1,793 | 71,586 | ||||||||||||||||||
Interest expense | — | (137,638 | ) | — | (59,670 | ) | — | (197,308 | ) | |||||||||||||||
Contract termination fees, net | — | 15,600 | — | — | — | 15,600 | ||||||||||||||||||
Loss on equity method investments | — | (14,571 | ) | — | — | — | (14,571 | ) | ||||||||||||||||
Gain/(loss) on interest rate swaps and caps | — | (1,415 | ) | — | 421 | — | (994 | ) | ||||||||||||||||
Gain / (loss) from subsidiaries | 179,359 | (22,789 | ) | — | — | (156,570 | ) | — | ||||||||||||||||
Total other income / (expense) | 179,359 | (109,506 | ) | — | (40,763 | ) | (154,777 | ) | (125,687 | ) | ||||||||||||||
Income before taxes | 179,359 | 276,583 | 23,771 | (46,560 | ) | (156,570 | ) | 276,583 | ||||||||||||||||
Income tax expense/(benefit) | (25,928 | ) | 97,224 | — | — | — | 71,296 | |||||||||||||||||
Net income/(loss) | $ | 205,287 | $ | 179,359 | $ | 23,771 | $ | (46,560 | ) | $ | (156,570 | ) | $ | 205,287 | ||||||||||
Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
(Parent) | (Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||
Net income/(loss) | $ | 217,054 | $ | 217,054 | $ | 113,094 | $ | (105,087 | ) | $ | (225,061 | ) | $ | 217,054 | ||||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||||||||||||||||||||||
(Gain)/loss from subsidiaries | (217,054 | ) | (8,007 | ) | — | — | 225,061 | — | ||||||||||||||||
Share-based compensation | — | 10,574 | — | — | — | 10,574 | ||||||||||||||||||
Net tax effect of stock grants | — | (4,579 | ) | — | — | (4,579 | ) | |||||||||||||||||
Loss on foreclosed real estate and other | — | 7,317 | — | 5,999 | — | 13,316 | ||||||||||||||||||
(Gain) on mortgage loans held for sale | — | (645,509 | ) | — | — | (57,254 | ) | (702,763 | ) | |||||||||||||||
Mortgage loans originated and purchased, net of fees | — | (25,466,754 | ) | — | — | — | (25,466,754 | ) | ||||||||||||||||
Proceeds on sale of and payments of mortgage loans held for sale | — | 24,947,796 | — | 13,325 | 57,254 | 25,018,375 | ||||||||||||||||||
Loss on derivatives including ineffectiveness | — | (3,415 | ) | — | (2,665 | ) | — | (6,080 | ) | |||||||||||||||
Cash settlement on derivative financial instruments | — | — | — | (4,544 | ) | — | (4,544 | ) | ||||||||||||||||
Depreciation and amortization | — | 25,479 | 979 | 157 | — | 26,615 | ||||||||||||||||||
Amortization/accretion of premiums/discounts | — | 56,348 | — | (3,817 | ) | — | 52,531 | |||||||||||||||||
Fair value changes in excess spread financing | — | 73,333 | — | — | — | 73,333 | ||||||||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights | — | (59,101 | ) | — | — | — | (59,101 | ) | ||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||
Advances | — | (4,497,046 | ) | — | 4,031,271 | — | (465,775 | ) | ||||||||||||||||
Reverse mortgage interests | — | (734,220 | ) | — | — | — | (734,220 | ) | ||||||||||||||||
Other assets | 2,365 | 4,902,381 | (113,703 | ) | (5,257,613 | ) | 17,327 | (449,243 | ) | |||||||||||||||
Payables and accrued liabilities | — | 650,287 | 4,135 | 10,225 | (17,327 | ) | 647,320 | |||||||||||||||||
Net cash attributable to operating activities | 2,365 | (528,062 | ) | 4,505 | (1,312,749 | ) | — | (1,833,941 | ) | |||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
(Parent) | (Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||
Property and equipment additions, net of disposals | — | (45,138 | ) | (999 | ) | (2,722 | ) | — | (48,859 | ) | ||||||||||||||
Purchase of reverse mortgage rights and interests | — | (19,189 | ) | — | — | — | (19,189 | ) | ||||||||||||||||
Purchase of forward mortgage servicing rights | — | (1,527,645 | ) | — | — | — | (1,527,645 | ) | ||||||||||||||||
Loan repurchases from Ginnie Mae | — | (19,863 | ) | — | — | — | (19,863 | ) | ||||||||||||||||
Proceeds from sales of REO | — | 52,767 | — | — | — | 52,767 | ||||||||||||||||||
Proceeds from sale of servicer advances | — | 277,455 | — | — | — | 277,455 | ||||||||||||||||||
Acquisitions, net | — | (88,200 | ) | — | — | — | (88,200 | ) | ||||||||||||||||
Net cash attributable to investing activities | — | (1,369,813 | ) | (999 | ) | (2,722 | ) | — | (1,373,534 | ) | ||||||||||||||
Financing activities: | ||||||||||||||||||||||||
Transfers (to)/from restricted cash | — | (199,600 | ) | — | (33,095 | ) | — | (232,695 | ) | |||||||||||||||
Issuance of unsecured senior notes, net | — | 1,365,244 | — | — | — | 1,365,244 | ||||||||||||||||||
Debt financing costs | — | (53,529 | ) | — | — | — | (53,529 | ) | ||||||||||||||||
Increase (decrease) in notes payable | — | (136,947 | ) | — | 1,377,697 | — | 1,240,750 | |||||||||||||||||
Issuance of excess spread financing | — | 753,002 | — | — | 753,002 | |||||||||||||||||||
Repayment of excess servicing spread financing | — | (130,355 | ) | — | — | — | (130,355 | ) | ||||||||||||||||
Increase in participating interest financing in reverse mortgage interests | — | 535,216 | — | — | — | 535,216 | ||||||||||||||||||
Proceeds from mortgage servicing rights financing | — | 29,874 | — | — | — | 29,874 | ||||||||||||||||||
Repayment of nonrecourse debt–Legacy assets | — | — | — | (13,404 | ) | — | (13,404 | ) | ||||||||||||||||
Contributions from joint venture member to noncontrolling interest | — | 4,990 | — | — | — | 4,990 | ||||||||||||||||||
Net tax benefit for stock grants issued | 4,579 | — | — | — | — | 4,579 | ||||||||||||||||||
Redemption of shares for stock vesting | (6,944 | ) | — | — | — | — | (6,944 | ) | ||||||||||||||||
Net cash attributable to financing activities | (2,365 | ) | 2,167,895 | — | 1,331,198 | — | 3,496,728 | |||||||||||||||||
Net increase in cash and cash equivalents | — | 270,020 | 3,506 | 15,727 | — | 289,253 | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | 152,248 | 401 | — | — | 152,649 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 422,268 | $ | 3,907 | $ | 15,727 | $ | — | $ | 441,902 | ||||||||||||
NATIONSTAR MORTGAGE HOLDINGS INC. | ||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2014 | ||||||||||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
(Parent) | (Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||
Net income/(loss) | $ | 220,718 | $ | 220,718 | $ | 41,312 | $ | 70,585 | $ | (332,615 | ) | $ | 220,718 | |||||||||||
Reconciliation of net income to net cash attributable to operating activities: | ||||||||||||||||||||||||
(Gain)/loss from subsidiaries | (220,718 | ) | (111,897 | ) | — | — | 332,615 | — | ||||||||||||||||
Share-based compensation | — | 18,565 | — | — | — | 18,565 | ||||||||||||||||||
Net tax effect of stock grants | — | (2,243 | ) | — | — | — | (2,243 | ) | ||||||||||||||||
Loss on foreclosed real estate and other | — | 3,099 | — | 7,189 | — | 10,288 | ||||||||||||||||||
Gain on mortgage loans held for sale | — | (583,790 | ) | — | (13,416 | ) | — | (597,206 | ) | |||||||||||||||
Mortgage loans originated and purchased, net of fees | — | (20,785,640 | ) | — | — | — | (20,785,640 | ) | ||||||||||||||||
Proceeds on sale of and payments of mortgage loans held for sale | — | 22,295,866 | — | (5,614 | ) | — | 22,290,252 | |||||||||||||||||
(Gain)/loss on derivatives including ineffectiveness | — | (732 | ) | — | (1,672 | ) | — | (2,404 | ) | |||||||||||||||
Cash settlement on derivative financial instruments | — | — | — | 1,352 | — | 1,352 | ||||||||||||||||||
Depreciation and amortization | — | 36,381 | 88 | 3,697 | — | 40,166 | ||||||||||||||||||
Amortization/(accretion) of premiums/(discounts) | — | 15,520 | — | (2,190 | ) | — | 13,330 | |||||||||||||||||
Fair value changes in excess spread financing | — | 57,554 | — | — | — | 57,554 | ||||||||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights | — | 233,537 | — | — | — | 233,537 | ||||||||||||||||||
Fair value change in mortgage servicing rights financing liability | — | (33,279 | ) | — | — | — | (33,279 | ) | ||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||
Advances | — | 325,807 | — | (3,288 | ) | — | 322,519 | |||||||||||||||||
Reverse mortgage interests | — | (576,083 | ) | — | (376,108 | ) | — | (952,191 | ) | |||||||||||||||
Other assets | 5,489 | (1,898,643 | ) | (39,029 | ) | 2,206,946 | (31,463 | ) | 243,300 | |||||||||||||||
Payables and accrued liabilities | — | (71,071 | ) | (5,925 | ) | 25,550 | 31,463 | (19,983 | ) | |||||||||||||||
Net cash attributable to operating activities | 5,489 | (856,331 | ) | (3,554 | ) | 1,913,031 | — | 1,058,635 | ||||||||||||||||
Nationstar | Issuer | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
(Parent) | (Subsidiaries) | (Subsidiaries) | ||||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||
Property and equipment additions, net of disposals | — | (41,739 | ) | (68 | ) | (14,598 | ) | — | (56,405 | ) | ||||||||||||||
Proceeds from sale of building | — | 10,412 | — | — | — | 10,412 | ||||||||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | — | (471,249 | ) | — | — | — | (471,249 | ) | ||||||||||||||||
Loan repurchases from Ginnie Mae | — | (44,079 | ) | — | — | — | (44,079 | ) | ||||||||||||||||
Proceeds from sales of REO | — | 65,653 | — | — | — | 65,653 | ||||||||||||||||||
Proceeds from sale of servicer advances | — | 768,449 | — | — | — | 768,449 | ||||||||||||||||||
Acquisitions, net | — | (15,854 | ) | — | (2,146 | ) | — | (18,000 | ) | |||||||||||||||
Net cash attributable to investing activities | — | 271,593 | (68 | ) | (16,744 | ) | — | 254,781 | ||||||||||||||||
Financing activities: | ||||||||||||||||||||||||
Transfers to/from restricted cash, net | — | 118,617 | 3 | 172,183 | — | 290,803 | ||||||||||||||||||
Repayment of unsecured senior notes | — | (285,000 | ) | — | — | — | (285,000 | ) | ||||||||||||||||
Debt financing costs | — | (13,067 | ) | — | — | — | (13,067 | ) | ||||||||||||||||
Increase/(decrease) in notes payable, net | — | 226,596 | — | (2,101,754 | ) | — | (1,875,158 | ) | ||||||||||||||||
Proceeds from 2014-1 HECM Securitization | — | — | — | 61,680 | — | 61,680 | ||||||||||||||||||
Repayment of 2014-1 HECM Securitization | — | — | — | (9,750 | ) | — | (9,750 | ) | ||||||||||||||||
Issuance of excess spread financing | — | 171,317 | — | — | — | 171,317 | ||||||||||||||||||
Repayment of excess spread financing | — | (184,246 | ) | — | — | — | (184,246 | ) | ||||||||||||||||
Increase in participating interest financing in reverse mortgage interests | — | 352,945 | — | — | — | 352,945 | ||||||||||||||||||
Proceeds from mortgage service rights financing | — | 52,835 | — | — | — | 52,835 | ||||||||||||||||||
Repayment of nonrecourse debt–Legacy assets | — | — | — | (15,429 | ) | — | (15,429 | ) | ||||||||||||||||
Net tax benefit for stock grants issued | — | 2,243 | — | — | — | 2,243 | ||||||||||||||||||
Redemption of shares for stock vesting | (5,489 | ) | — | — | — | — | (5,489 | ) | ||||||||||||||||
Net cash attributable to financing activities | (5,489 | ) | 442,240 | 3 | (1,893,070 | ) | — | (1,456,316 | ) | |||||||||||||||
Net increase/(decrease) in cash | — | (142,498 | ) | (3,619 | ) | 3,217 | — | (142,900 | ) | |||||||||||||||
Cash and cash equivalents at beginning of period | — | 422,268 | 3,907 | 15,727 | — | 441,902 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 279,770 | $ | 288 | $ | 18,944 | $ | — | $ | 299,002 | ||||||||||||
Nationstar | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
(Subsidiaries) | Guarantor | |||||||||||||||||||||||
(Subsidiaries) | ||||||||||||||||||||||||
Operating activities: | ||||||||||||||||||||||||
Net income/(loss) | $ | 205,287 | $ | 179,359 | $ | 23,771 | $ | (46,560 | ) | $ | (156,570 | ) | $ | 205,287 | ||||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||||||||||||||||||||||
Gain/(loss) from subsidiaries | (179,359 | ) | 22,789 | — | — | 156,570 | — | |||||||||||||||||
Share-based compensation | — | 13,342 | — | — | — | 13,342 | ||||||||||||||||||
Net tax effect of stock grants | — | (2,846 | ) | — | — | — | (2,846 | ) | ||||||||||||||||
Loss on foreclosed real estate and other | — | (1,034 | ) | — | 6,251 | — | 5,217 | |||||||||||||||||
Gain on mortgage loans held for sale | — | (487,164 | ) | — | — | — | (487,164 | ) | ||||||||||||||||
Mortgage loans originated and purchased, net of fees | — | (7,904,052 | ) | — | — | — | (7,904,052 | ) | ||||||||||||||||
Proceeds on sale of and payments of mortgage loans held for sale | — | 7,185,335 | — | 12,387 | — | 7,197,722 | ||||||||||||||||||
(Gain)/loss on derivatives including ineffectiveness | — | 1,415 | — | (421 | ) | — | 994 | |||||||||||||||||
Loss on equity method investments | — | 14,571 | — | — | — | 14,571 | ||||||||||||||||||
Depreciation and amortization | — | 9,620 | — | — | — | 9,620 | ||||||||||||||||||
Amortization/accretion of premiums/(discounts) | — | 13,003 | — | (3,368 | ) | — | 9,635 | |||||||||||||||||
Fair value changes in excess spread financing | — | 10,683 | — | — | — | 10,683 | ||||||||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights | — | 63,122 | — | — | — | 63,122 | ||||||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||||
Advances | — | (558,207 | ) | — | (1 | ) | — | (558,208 | ) | |||||||||||||||
Reverse mortgage interests | — | (636,533 | ) | — | — | — | (636,533 | ) | ||||||||||||||||
Other assets | (28,774 | ) | 1,622,707 | (25,429 | ) | (1,781,447 | ) | 14,136 | (198,807 | ) | ||||||||||||||
Payables and accrued liabilities | 2,846 | 308,636 | 1,815 | 140 | (14,136 | ) | 299,301 | |||||||||||||||||
Net cash attributable to operating activities | — | (145,254 | ) | 157 | (1,813,019 | ) | — | (1,958,116 | ) | |||||||||||||||
Nationstar | Issuer | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||
(Subsidiaries) | Guarantor | |||||||||||||||||||||||
(Subsidiaries) | ||||||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||
Property and equipment additions, net of disposals | — | (25,356 | ) | — | — | — | (25,356 | ) | ||||||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | — | (2,070,375 | ) | — | — | — | (2,070,375 | ) | ||||||||||||||||
Purchase of reverse mortgage rights and interests | — | (37,911 | ) | — | — | — | (37,911 | ) | ||||||||||||||||
Loan repurchases from Ginnie Mae | — | (24,329 | ) | — | — | — | (24,329 | ) | ||||||||||||||||
Proceeds from sales of REO | — | (884 | ) | — | 1,563 | — | 679 | |||||||||||||||||
Net cash attributable to investing activities | — | (2,158,855 | ) | — | 1,563 | — | (2,157,292 | ) | ||||||||||||||||
Financing activities: | ||||||||||||||||||||||||
Transfers to/from restricted cash | — | (96,477 | ) | — | (225,214 | ) | — | (321,691 | ) | |||||||||||||||
Debt financing costs | — | (23,213 | ) | — | — | — | (23,213 | ) | ||||||||||||||||
Issuance of unsecured notes, net | — | 770,699 | — | — | — | 770,699 | ||||||||||||||||||
Increase in notes payable, net | — | 677,952 | — | 2,050,455 | — | 2,728,407 | ||||||||||||||||||
Issuance of excess spread financing | — | 272,617 | — | — | — | 272,617 | ||||||||||||||||||
Repayment of excess spread financing | — | (39,865 | ) | — | — | — | (39,865 | ) | ||||||||||||||||
Issuance of participating interest financing in reverse mortgage interests | — | 582,897 | — | — | — | 582,897 | ||||||||||||||||||
Repayment of nonrecourse debt–Legacy assets | — | — | — | (13,785 | ) | — | (13,785 | ) | ||||||||||||||||
Net tax benefit for stock grants issued | — | 2,846 | — | — | — | 2,846 | ||||||||||||||||||
Issuance of common stock, net of IPO issuance costs | 246,700 | — | — | — | — | 246,700 | ||||||||||||||||||
Distributions to subsidiaries | (246,700 | ) | — | — | — | 246,700 | — | |||||||||||||||||
Contributions of parent | — | 246,700 | — | — | (246,700 | ) | — | |||||||||||||||||
Net cash attributable to financing activities | — | 2,394,156 | — | 1,811,456 | — | 4,205,612 | ||||||||||||||||||
Net increase/(decrease) in cash | — | 90,047 | 157 | — | — | 90,204 | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | 62,201 | 244 | — | — | 62,445 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 152,248 | $ | 401 | $ | — | $ | — | $ | 152,649 | ||||||||||||
Disclosures_Related_to_Transac1
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Related Party Transactions [Abstract] | |||||||||||||
Schedule of Related Party Transactions [Table Text Block] | Nationstar entered into several supplemental agreements with the Purchaser throughout 2014. The table below summarizes the supplemental agreements entered into during 2014 (UPB in billions). | ||||||||||||
Agreement | MSR | Servicer | Sale | ||||||||||
Date | UPB | Advances | Proceeds | ||||||||||
Jan-14 | $ | 8.3 | $ | 253,472 | $ | 253,472 | |||||||
Feb-14 | $ | 9.4 | $ | 756,185 | $ | 91,391 | |||||||
Mar-14 | $ | 10.5 | $ | 299,125 | $ | 41,536 | |||||||
May-14 | $ | 12 | $ | 617,502 | $ | 75,161 | |||||||
Jun-14 | $ | 14 | $ | 303,795 | $ | 50,967 | |||||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | The following is a summary of the quarterly consolidated results of operations for the period indicated: | |||||||||||||||
2014 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Service related | $ | 327,663 | $ | 362,916 | $ | 351,070 | $ | 334,213 | ||||||||
Net gain on mortgage loans held for sale | 141,984 | 186,817 | 153,254 | 115,151 | ||||||||||||
Total revenues | 469,647 | 549,733 | 504,324 | 449,364 | ||||||||||||
Total expenses and impairments | 321,133 | 346,711 | 327,224 | 362,623 | ||||||||||||
Total other income/(expense) | (109,836 | ) | (97,434 | ) | (67,521 | ) | (54,702 | ) | ||||||||
Income before taxes | 38,678 | 105,588 | 109,579 | 32,039 | ||||||||||||
Income taxes | 15,001 | 38,941 | (1,700 | ) | 12,618 | |||||||||||
Net income | $ | 23,677 | $ | 66,647 | $ | 111,279 | $ | 19,421 | ||||||||
Earnings per share: | ||||||||||||||||
Basic earnings per share | $ | 0.27 | $ | 0.74 | $ | 1.23 | $ | 0.22 | ||||||||
Diluted earnings per share | $ | 0.27 | $ | 0.74 | $ | 1.22 | $ | 0.21 | ||||||||
2013 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Service related | $ | 242,475 | $ | 321,104 | $ | 425,882 | $ | 394,761 | ||||||||
Net gain on mortgage loans held for sale | 188,587 | 282,561 | 205,956 | 25,659 | ||||||||||||
Total revenues | 431,062 | 603,665 | 631,838 | 420,420 | ||||||||||||
Total expenses and impairments | 268,571 | 339,851 | 395,854 | 398,002 | ||||||||||||
Total other income/(expense) | (61,498 | ) | (64,685 | ) | (103,912 | ) | (108,358 | ) | ||||||||
Income (loss) before taxes | 100,993 | 199,129 | 132,072 | (85,940 | ) | |||||||||||
Income tax expense (benefit) | 38,377 | 75,669 | 50,187 | (35,033 | ) | |||||||||||
Net income (loss) | $ | 62,616 | $ | 123,460 | $ | 81,885 | $ | (50,907 | ) | |||||||
Earnings (loss) per share: | ||||||||||||||||
Basic earnings (loss) per share | $ | 0.7 | $ | 1.38 | $ | 0.92 | $ | (0.57 | ) | |||||||
Diluted earnings (loss) per share | $ | 0.7 | $ | 1.37 | $ | 0.91 | $ | (0.56 | ) | |||||||
2012 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||
Service related | $ | 93,560 | $ | 100,414 | $ | 145,611 | $ | 157,566 | ||||||||
Net gain on mortgage loans held for sale | 70,512 | 102,345 | 139,259 | 175,048 | ||||||||||||
Total revenues | 164,072 | 202,759 | 284,870 | 332,614 | ||||||||||||
Total expenses and impairments | 96,577 | 130,372 | 154,828 | 200,268 | ||||||||||||
Total other income/(expense) | (14,164 | ) | (23,332 | ) | (50,261 | ) | (37,930 | ) | ||||||||
Income before taxes | 53,331 | 49,055 | 79,781 | 94,416 | ||||||||||||
Income taxes | 3,145 | 12,780 | 24,714 | 30,657 | ||||||||||||
Net income | $ | 50,186 | $ | 36,275 | $ | 55,067 | $ | 63,759 | ||||||||
Earnings per share: | ||||||||||||||||
Basic earnings per share | $ | 0.67 | $ | 0.41 | $ | 0.62 | $ | 0.72 | ||||||||
Diluted earnings per share | $ | 0.67 | $ | 0.41 | $ | 0.61 | $ | 0.71 | ||||||||
Significant_Accounting_Policie1
Significant Accounting Policies Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting Policies [Abstract] | |||
Factor in repurchasing loans out of HMBS pools | $625,000 | ||
Marketing and Advertising Expense | $41,600,000 | $53,600,000 | $5,300,000 |
Mortgage_Servicing_Rights_MSRs1
Mortgage Servicing Rights - MSR's at Fair Value (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Fair value at the end of the period | $2,949,739 | $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 | 2,000,000 | |
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 | 238,292 | 248,381 |
Purchases of servicing assets | 470,543 | 1,545,584 |
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model | 87,434 | 377,486 |
Other changes in fair value | -334,813 | -319,028 |
Fair value at the end of the period | 2,949,739 | 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 | 333,612,645 | 322,814,139 |
Credit Sensitive | Mortgage Servicing Rights | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Fair value at the end of the period | 1,919,290 | 1,818,315 |
Principal Amount Outstanding of Loans Held-in-portfolio [Abstract] | ||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 241,769,601 | 266,757,777 |
Interest Rate Sensitive | Mortgage Servicing Rights | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Fair value at the end of the period | 1,030,449 | 669,968 |
Principal Amount Outstanding of Loans Held-in-portfolio [Abstract] | ||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | $91,843,044 | $56,056,362 |
Mortgage_Servicing_Rights_Fair
Mortgage Servicing Rights - Fair Value Assumptions (Details) (Mortgage Servicing Rights) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Credit Sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate | 11.96% | 14.17% |
Total prepayment speeds | 18.58% | 20.34% |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected weighted-average life | 5 years 4 months 21 days | 4 years 7 months 18 days |
Interest Rate Sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate | 9.09% | 10.50% |
Total prepayment speeds | 11.27% | 8.97% |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected weighted-average life | 6 years 5 months 25 days | 7 years 10 months 18 days |
Mortgage_Servicing_Rights_Fair1
Mortgage Servicing Rights - Fair Value Sensitivity Analysis (Details) (Mortgage Servicing Rights, USD $) | Dec. 31, 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 | $112,603 | $101,590 |
Total Prepayment Speeds, 20% Adverse Change | 199,078 | 195,445 |
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 | 110,900 | 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 | $207,295 | $151,899 |
Mortgage_Servicing_Rights_MSRs2
Mortgage Servicing Rights - MSR's at Amortized Cost (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Feb. 28, 2013 |
Servicing Assets at Amortized Value | ||||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | $2,000,000 | |||
Servicing Liability at Amortized Value [Roll Forward] | ||||
Balance at the end of the period | 65,382 | 82,521 | ||
Fair Value of Servicing Asset, Amortized Cost | 34,225 | 29,192 | ||
Fair Value of Servicing Liability, Amortized Cost | 55,388 | 63,996 | ||
Mortgage Servicing Rights | ||||
Servicing Assets at Amortized Value | ||||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 333,612,645 | 322,814,139 | ||
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 | -3,297 | -74 | ||
Balance at the end of the period | 11,582 | 14,879 | ||
Servicing Liability at Amortized Value [Roll Forward] | ||||
Balance at the beginning of the period | 82,521 | 83,238 | ||
Purchase/Assumptions of servicing rights/obligations | 0 | 0 | ||
Amortization/Accretion | -17,139 | -717 | ||
Balance at the end of the period | 65,382 | 82,521 | ||
Reverse Mortgages | ||||
Servicing Assets at Amortized Value | ||||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | $28,000,000 | $28,900,000 | $100,000 |
Mortgage_Servicing_Rights_Exce
Mortgage Servicing Rights Excess Spread - Fair Value Assumptions (Details) (Excess Spread Financing) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Minimum [Member] | ||
Mortgage Servicing Rights [Line Items] | ||
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Prepayment Speed | 6.19% | 4.00% |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Weighted Average Life | 4 years 0 months 0 days | 3 years 5 months 0 days |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate | 8.52% | 10.10% |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Other Key Assumption Rate or Value | 6.70% | 5.00% |
Maximum [Member] | ||
Mortgage Servicing Rights [Line Items] | ||
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Prepayment Speed | 19.38% | 17.60% |
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Weighted Average Life | 7 years 1 month 0 days | 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 | 31.30% | 35.80% |
Mortgage_Servicing_Rights_Exce1
Mortgage Servicing Rights Excess Spread - Fair Value Sensitivity Analysis (Details) (Excess Spread Financing, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Mortgage Servicing Rights [Line Items] | ||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 10 Percent Adverse Change in Prepayment Speed | $33,618 | $26,492 |
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 20 Percent Adverse Change in Prepayment Speed | 70,379 | 53,753 |
100 Basis Points | ||
Mortgage Servicing Rights [Line Items] | ||
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 | 36,632 | 33,156 |
Two Hundred Basis Points [Member] | ||
Mortgage Servicing Rights [Line Items] | ||
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 | $75,964 | $68,636 |
Schedule_of_Accounts_Receivabl
Schedule of Accounts Receivable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Accounts Receivable, Net | $2,546,362 | $5,002,202 |
Narrative_Details
Narrative (Details) (USD $) | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 23, 2014 | Apr. 30, 2014 | Mar. 07, 2014 | Feb. 28, 2014 | Jan. 30, 2014 |
Receivables [Abstract] | ||||||||
Accretion of Service Advances Discount | $12.20 | $31.10 | $11.30 | |||||
Servicer Advances sold to unaffiliated third party | 2,500 | 2,700 | 303.8 | 617.5 | 299.1 | 756.2 | 253.5 | |
Eliminated Servicer Advance, Discount due to advance sale | 52.9 | |||||||
Allowance for Doubtful Accounts Receivable | $9.20 | $8 |
Reverse_Mortgage_Interest_Deta
Reverse Mortgage Interest (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Mortgage Servicing Rights [Line Items] | ||
Other Non-Recourse Debt | $1,768,311 | $1,192,597 |
Reverse Mortgage Interest Subject to Non-Recourse Debt | 279,564 | 0 |
Reverse Mortgage Interest, Unpaid Principal Balance, Unsecuritized | 744,916 | 489,157 |
Reverse Mortgage Interest, Valuation Allowance | 4,058 | 802 |
Reverse mortgage interests | 2,383,647 | 1,528,000 |
HMBS Securities | ||
Mortgage Servicing Rights [Line Items] | ||
Other Non-Recourse Debt | 1,363,225 | 1,039,645 |
2014-1 HECM securitization | ||
Mortgage Servicing Rights [Line Items] | ||
Other Non-Recourse Debt | 259,328 | 0 |
Reverse Mortgage Interest Subject to Non-Recourse Debt | $279,564 | $0 |
Mortgage_Loans_Held_for_Sale_D
Mortgage Loans Held for Sale (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Mortgage Loans Held for Sale and Investment [Abstract] | |||
Mortgage loans held for sale b unpaid principal balance | $1,218,596 | $2,532,881 | |
Mark-to-market adjustment, included in Gain on Mortgage Loans Held for Sale | 59,335 | 70,499 | |
Total mortgage loans held for sale | $1,277,931 | $2,603,380 | $1,480,537 |
Reconciliation_to_Cash_Flow_De
Reconciliation to Cash Flow (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Mortgage loans held for sale b beginning balance | $2,603,380 | $1,480,537 |
Mortgage loans originated and purchased, net of fees | 20,558,305 | 25,620,965 |
Proceeds on sale of and payments of mortgage loans held for sale | 21,880,403 | 24,501,261 |
Transfer of mortgage loans held for sale to held for investment or other assets | -3,351 | 3,139 |
Mortgage loans held for sale b ending balance | $1,277,931 | $2,603,380 |
Mortgage_Loans_Held_for_Invest
Mortgage Loans Held for Investment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage loans held for investment, net | $191,569 | $211,050 | |
Mortgage Loans Held for Investment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net - unpaid principal balance | 276,820 | 305,085 | |
Transfer discount - accretable | -15,503 | -17,362 | -19,749 |
Transfer discount - non-accretable | -66,217 | -74,529 | |
Allowance for loan losses | -3,531 | -2,144 | |
Total mortgage loans held for investment, net | $191,569 | $211,050 |
Accretable_Yield_Details
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, 2014 | Dec. 31, 2013 |
Mortgage Loans Held for Investment | |||
Accretable Yield Movement Schedule [Roll Forward] | |||
Balance at the beginning of the period | ($17,362) | ($17,362) | ($19,749) |
Accretion | -2,955 | -3,235 | |
Reclassifications from (to) nonaccretable discount | -1,096 | -848 | |
Balance at the end of the period | ($15,503) | ($17,362) |
Credit_Quality_Details
Credit Quality (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Mortgage Loans Held for Investment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Unpaid principal balance | $276,820 | $305,085 |
Performing Financing Receivable [Member] | Mortgage Loans Held for Investment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Unpaid principal balance | 196,323 | 218,262 |
Nonperforming Financing Receivable [Member] | Mortgage Loans Held for Investment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Unpaid principal balance | 80,497 | 86,823 |
Loan-to-Value Ratio, Range One [Member] | Mortgage Loans Held for Investment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Unpaid principal balance | 29,639 | 32,885 |
Loan-to-Value Ratio, Range Two [Member] | Mortgage Loans Held for Investment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Unpaid principal balance | 18,078 | 14,633 |
Loan-to-Value Ratio, Range Three [Member] | Mortgage Loans Held for Investment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Unpaid principal balance | 18,931 | 23,075 |
Loan-to-Value Ratio, Range Four [Member] | Mortgage Loans Held for Investment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Unpaid principal balance | 24,088 | 25,536 |
Loan-to-Value Ratio, Range Five [Member] | Mortgage Loans Held for Investment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Unpaid principal balance | 24,135 | 25,686 |
Loan-to-Value Ratio, Range Six [Member] | Mortgage Loans Held for Investment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Unpaid principal balance | $161,949 | $183,270 |
Maximum [Member] | Loan-to-Value Ratio, Range One [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Certain Loans Acquired in Transfer, Loan to Value Ratio | 60.00% | |
Maximum [Member] | Loan-to-Value Ratio, Range Two [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Certain Loans Acquired in Transfer, Loan to Value Ratio | 70.00% | |
Maximum [Member] | Loan-to-Value Ratio, Range Three [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Certain Loans Acquired in Transfer, Loan to Value Ratio | 80.00% | |
Maximum [Member] | Loan-to-Value Ratio, Range Four [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Certain Loans Acquired in Transfer, Loan to Value Ratio | 90.00% | |
Maximum [Member] | Loan-to-Value Ratio, Range Five [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Certain Loans Acquired in Transfer, Loan to Value Ratio | 100.00% | |
Minimum [Member] | Loan-to-Value Ratio, Range Two [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Certain Loans Acquired in Transfer, Loan to Value Ratio | 60.00% | |
Minimum [Member] | Loan-to-Value Ratio, Range Three [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Certain Loans Acquired in Transfer, Loan to Value Ratio | 70.00% | |
Minimum [Member] | Loan-to-Value Ratio, Range Four [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Certain Loans Acquired in Transfer, Loan to Value Ratio | 80.00% | |
Minimum [Member] | Loan-to-Value Ratio, Range Five [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Certain Loans Acquired in Transfer, Loan to Value Ratio | 90.00% | |
Minimum [Member] | Loan-to-Value Ratio, Range Six [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Certain Loans Acquired in Transfer, Loan to Value Ratio | 100.00% |
Mortgage_Loans_Held_for_Sale_a2
Mortgage Loans Held for Sale and Investment Narrative (Details) (USD $) | 12 Months Ended | 9 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | |
Servicing Assets at Fair Value [Line Items] | |||
Loans repurchased from securitization pool, during the period | $3,700,000,000 | $1,200,000,000 | |
Mortgage Loans Held for Sale nonaccrual basis | 32,000,000 | 69,500,000 | |
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 2,000,000,000 | ||
Fair Value, Mortgage Loans Held for Sale non-accrual status | 26,000,000 | 63,500,000 | |
Mortgage Loans Held for Investment | |||
Servicing Assets at Fair Value [Line Items] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications from Nonaccretable Difference | $848,000 | $1,096,000 |
Property_and_Equipment_net_Pro
Property and Equipment, net Property and Equipment, net (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $198,497 | $193,073 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -69,721 | -74,723 |
Land | 835 | 835 |
Property, Plant and Equipment, Net | 129,611 | 119,185 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 39,561 | 65,408 |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Software and Software Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Property, Plant and Equipment, Gross | 72,673 | 52,582 |
Assets Held under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Property, Plant and Equipment, Gross | 48,451 | 42,856 |
Building and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 16,638 | 13,984 |
Software Development and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $21,174 | $18,243 |
Property_and_Equipment_net_Fut
Property and Equipment, net Future Minimum Lease Payments for Capital Leases (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Future Minimum Lease Payments for Capital Leases [Abstract] | |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | $18,389 |
Capital Leases, Future Minimum Payments Due in Two Years | 4,747 |
Capital Leases, Future Minimum Payments Due in Three Years | 241 |
Capital Leases, Future Minimum Payments Due Thereafter | 0 |
Capital Leases, Future Minimum Payments Due | 23,377 |
Capital Leases, Future Minimum Payments, Interest Included in Payments | -1,398 |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | $21,979 |
Others_Assets_Details
Others Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Servicing Fees Receivable | $154,436 | $134,440 | |
Resell Agreement, Loans and Leases Receivable | 131,592 | 120,736 | |
Deferred financing costs | 46,986 | 73,030 | |
Accounts Receivable from Securitization | 350,179 | 203,385 | |
Goodwill | 54,701 | 38,820 | 0 |
Real estate owned (REO), net | 107,034 | 45,632 | |
Intangible Assets, Net (Excluding Goodwill) | 19,622 | 21,737 | |
Due from Affiliates | 4,713 | 8,861 | |
Interest Receivable | 1,890 | 6,970 | |
Prepaid expenses | 9,837 | 21,993 | |
Margin call deposits | 9,810 | 25,932 | |
Other | 55,851 | 199,647 | |
Total other assets | $946,651 | $901,183 |
Other_Assets_Changes_in_the_ca
Other Assets Changes in the carrying amount of Goodwill (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $38,820 | $0 |
Goodwill acquired during the period | 15,881 | 38,820 |
Balance at end of period | $54,701 | $38,820 |
Other_Assets_Goodwill_and_Inta
Other Assets Goodwill and Intangible Assets - Schedule of Finite - Lived Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | ($3,681) | ($1,420) |
Projected amortization of intangible assets | 19,057 | |
Finite-Lived Intangible Asset, Useful Life | 8 years 5 months 1 day | 9 years 5 months 1 day |
Finite-Lived and Indefinite-Lived Intangible Assets, Gross | 23,303 | 23,157 |
Finite-Lived and Indefinite-Lived Intangible Assets, Net | 19,622 | 21,737 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 18,595 | 18,530 |
Finite-Lived Intangible Assets, Accumulated Amortization | -2,934 | -1,081 |
Projected amortization of intangible assets | 15,661 | 17,449 |
Finite-Lived Intangible Asset, Useful Life | 8 years 5 months 1 day | 9 years 5 months 1 day |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 4,143 | 4,070 |
Finite-Lived Intangible Assets, Accumulated Amortization | -747 | -339 |
Projected amortization of intangible assets | 3,396 | 3,731 |
Finite-Lived Intangible Asset, Useful Life | 8 years 2 months 0 days | 9 years 2 months 1 day |
Licensing Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 557 | 557 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $8 |
Other_Assets_Finite_Lived_Live
Other Assets Finite Lived Lived Intangible Assets - Future Amortization (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Amortization of Intangible Assets | $2,300,000 | $1,400,000 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 2,277,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 2,277,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2,277,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2,277,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 2,277,000 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 7,672,000 | |
Projected amortization of intangible assets | $19,057,000 |
Other_Assets_Narrative_Details
Other Assets Narrative (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | 2-May-14 | Oct. 31, 2013 | 31-May-13 | Feb. 28, 2013 | |
Other Assets [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | $18,000,000 | $12,500,000 | |||
Goodwill acquired | 3,400,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 75,700,000 | ||||
Mortgage loans held for sale, acquistion | 98,000,000 | ||||
Deposits to Acquire Mortgage Servicing Rights | 2,200,000 | ||||
Business Combination, Acquisition Related Costs | 1,800,000 | ||||
Goodwill [Member] | |||||
Other Assets [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 35,400,000 | ||||
Other Intangible Assets [Member] | |||||
Other Assets [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $4,100,000 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments Derivative Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $0 | $500,000 | $0 |
Change in value of designated cash flow hedge | -1,963,000 | 1,963,000 | 0 |
Margin Deposit Assets | $9,810,000 | $25,932,000 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Derivative Instruments (Details) (Designated as Hedging Instrument, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loan Sale Commitment [Member] | Loans Held-for-sale, Mortgages [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | $1,666 | $57,965 |
Fair Value - Asset | -4 | 7 |
Recorded Gains / (Losses) | -11 | -14 |
Interest Rate Lock Commitments | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 2,556,169 | 3,083,131 |
Fair Value - Asset | 87,128 | |
Recorded Gains / (Losses) | 774 | -69,856 |
Interest Rate Lock Commitments | Derivative Financial Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 865 | 260,407 |
Fair Value - Liability | 2,698 | |
Recorded Gains / (Losses) | 2,691 | -1,613 |
Forward Mortgage-Backed Securities Trades [Member] | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 319,112 | 5,425,663 |
Fair Value - Asset | 32,266 | |
Recorded Gains / (Losses) | -31,982 | 19,084 |
Forward Mortgage-Backed Securities Trades [Member] | Derivative Financial Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 2,958,700 | 1,351,870 |
Fair Value - Liability | 3,305 | |
Recorded Gains / (Losses) | -15,055 | 8,713 |
Loan Purchase Commitments [Member] | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 287,089 | 197,475 |
Fair Value - Asset | 793 | |
Recorded Gains / (Losses) | 1,206 | -460 |
Loan Purchase Commitments [Member] | Derivative Financial Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 30,494 | 204,486 |
Fair Value - Liability | 1,689 | |
Recorded Gains / (Losses) | 1,641 | -1,603 |
Interest Rate Swap | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 124,650 | 167,000 |
Fair Value - Asset | 3,691 | |
Recorded Gains / (Losses) | -1,673 | 544 |
Future [Member] | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 40,000 | |
Recorded Gains / (Losses) | 1 | |
Future [Member] | Derivative Financial Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 80,000 | |
Recorded Gains / (Losses) | -7 | |
Interest Rate Swaps and Caps | Derivative Financial Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 0 | |
Fair Value - Liability | 0 | |
Recorded Gains / (Losses) | 1,576 | |
Asset Backed Securities | Interest Rate Swap | Derivative Financial Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 105,681 | 424,269 |
Fair Value - Liability | 834 | |
Recorded Gains / (Losses) | $731 | $1,012 |
Notes_Payable_Details
Notes Payable (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Jan. 01, 2015 | Feb. 17, 2015 | Jan. 31, 2015 | Jan. 30, 2015 | |
Debt Instrument [Line Items] | ||||||
Secured Debt | $1,572,622,000 | $2,433,927,000 | ||||
Servicing Segment | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | 1,901,783,000 | 4,550,424,000 | ||||
Debt Instrument, Collateral Amount | 2,214,410,000 | 5,083,205,000 | ||||
Servicing Segment | Reverse Participations Financing Facility [Member] | Notes Payable to Banks | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 150,000,000 | |||||
Secured Debt | 0 | 102,031,000 | ||||
Debt Instrument, Collateral Amount | 0 | 124,536,000 | ||||
Servicing Segment | MBS Advance Financing Facility 2012 [Member] | Notes Payable, Other | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | 42,472,000 | 179,306,000 | ||||
Debt Instrument, Collateral Amount | 50,758,000 | 220,833,000 | ||||
Servicing Segment | NSM Advance Receivable Trust (2013) [Member] | Notes Payable, Other | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 475,000,000 | |||||
Secured Debt | 419,170,000 | 1,240,940,000 | ||||
Debt Instrument, Collateral Amount | 471,243,000 | 1,347,410,000 | ||||
Servicing Segment | MBS Servicer Advance Facility (2014) [Domain] | Notes Payable, Other | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 80,000,000 | |||||
Secured Debt | 79,084,000 | |||||
Debt Instrument, Collateral Amount | 138,010,000 | |||||
Servicing Segment | NSM Advance Receivable Trust (2014-BC) [Domain] | Notes Payable, Other | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000,000 | |||||
Secured Debt | 106,115,000 | |||||
Debt Instrument, Collateral Amount | 121,030,000 | |||||
Servicing Segment | Securities Repurchase Facility (2014) [Domain] | Notes Payable, Other | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | 51,609,000 | |||||
Debt Instrument, Collateral Amount | 74,525,000 | |||||
Servicing Segment | NSM Servicer Advance Receivable Trust 2013-BA [Member] | Notes Payable, Other | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000,000 | |||||
Secured Debt | 0 | 1,579,830,000 | ||||
Debt Instrument, Collateral Amount | 0 | 1,764,296,000 | ||||
Servicing Segment | MBS Advance Financing Facility [Member] | Notes Payable, Other | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 475,000,000 | |||||
Secured Debt | 363,014,000 | 560,814,000 | ||||
Debt Instrument, Collateral Amount | 418,126,000 | 651,953,000 | ||||
Servicing Segment | Securities Repurchase Facility (2011) [Member] | Notes Payable, Other | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | 34,613,000 | 35,546,000 | ||||
Debt Instrument, Collateral Amount | 55,603,000 | 55,603,000 | ||||
Servicing Segment | Agency Advance Financing Facility (2011) [Member] | Notes Payable to Banks | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,100,000,000 | |||||
Secured Debt | 805,706,000 | 851,957,000 | ||||
Debt Instrument, Collateral Amount | 885,115,000 | 918,574,000 | ||||
Servicing Segment | NSM Advance Receivable Trust Institutional Investors (2013) [Member] | Notes Payable, Other | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000,000 | |||||
Long-term Line of Credit | 300,000,000 | |||||
Long-term Debt, Weighted Average Interest Rate | 1.51% | |||||
Originations Segment | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | 1,572,622,000 | 2,433,927,000 | ||||
Debt Instrument, Collateral Amount | 1,652,743,000 | 2,642,598,000 | ||||
Originations Segment | Warehouse Facility $750 Million [Member] | Notes Payable to Banks | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 750,000,000 | |||||
Secured Debt | 307,294,000 | 639,378,000 | ||||
Debt Instrument, Collateral Amount | 320,285,000 | 673,599,000 | ||||
Originations Segment | Warehouse Facility $700 Million [Member] | Notes Payable, Other | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | 176,194,000 | 111,980,000 | ||||
Debt Instrument, Collateral Amount | 179,994,000 | 115,629,000 | ||||
Originations Segment | Warehouse Facility $700 Million [Member] | Notes Payable to Banks | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 500,000,000 | |||||
Originations Segment | Warehouse Facility $500 Million [Member] | Notes Payable, Other | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 500,000,000 | |||||
Secured Debt | 0 | 214,570,000 | ||||
Debt Instrument, Collateral Amount | 0 | 224,162,000 | ||||
Originations Segment | Warehouse Facility $500 Million (2013) [Member] | Notes Payable to Banks | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 500,000,000 | |||||
Secured Debt | 183,290,000 | 447,926,000 | ||||
Debt Instrument, Collateral Amount | 192,990,000 | 477,980,000 | ||||
Originations Segment | Warehouse Facility $50 Million (HCM) [Domain] | Notes Payable to Banks | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000,000 | |||||
Secured Debt | 8,679,000 | |||||
Debt Instrument, Collateral Amount | 9,044,000 | |||||
Originations Segment | Revolving facility - ASAP [Member] | Notes Payable to Banks | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 0 | 0 | ||||
Originations Segment | Warehouse Facility $300 Million (2009) [Member] | Notes Payable to Banks | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 300,000,000 | |||||
Secured Debt | 0 | 159,435,000 | ||||
Debt Instrument, Collateral Amount | 0 | 166,482,000 | ||||
Originations Segment | Warehouse Facility $200 Million [Member] | Notes Payable to Banks | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000,000 | |||||
Line of Credit Facility, Temporary Maximum Borrowing Capacity | 225,000,000 | |||||
Secured Debt | 210,049,000 | 63,357,000 | ||||
Debt Instrument, Collateral Amount | 223,849,000 | 93,098,000 | ||||
Originations Segment | Warehouse Facility $1.5 Billion [Member] | Notes Payable to Banks | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,500,000,000 | |||||
Secured Debt | 663,167,000 | 797,281,000 | ||||
Debt Instrument, Collateral Amount | 697,257,000 | 891,648,000 | ||||
Originations Segment | Warehouse Facility $75 Million [Member] [Member] | Notes Payable to Banks | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 125,000,000 | 75,000,000 | ||||
Secured Debt | 23,949,000 | |||||
Debt Instrument, Collateral Amount | 29,324,000 | 0 | ||||
Secured Debt [Member] | Servicing Segment | Agency Advance Financing Facility (2011) [Member] | Notes Payable to Banks | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | 300,000,000 | |||||
Long-term Debt, Weighted Average Interest Rate | 1.46% | |||||
Debt Instrument, Term | 3 years 0 months 0 days | |||||
Borrowing Capacity in Period Two [Member] | Servicing Segment | MBS Advance Financing Facility 2012 [Member] | Notes Payable, Other | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000,000 | |||||
Loans Held-for-sale, Mortgages [Member] | Originations Segment | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | 1,196,956,000 | 2,297,042,000 | ||||
Debt Instrument, Collateral Amount | 1,241,043,000 | 2,465,000 | ||||
Reverse Mortgages | Originations Segment | ||||||
Debt Instrument [Line Items] | ||||||
Secured Debt | 375,666,000 | 136,885,000 | ||||
Debt Instrument, Collateral Amount | 411,700,000 | 178,000 | ||||
Scenario, Forecast | Secured Debt [Member] | Servicing Segment | Agency Advance Financing Facility (2011) [Member] | Notes Payable to Banks | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | 200,000,000 | |||||
Subsequent Event | Servicing Segment | MBS Advance Financing Facility [Member] | Notes Payable, Other | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 130,000,000 | 130,000,000 | ||||
Subsequent Event | Servicing Segment | Agency Advance Financing Facility (2011) [Member] | Notes Payable to Banks | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $1,200,000,000 | $1,500,000,000 |
Unsecured_Senior_Notes_Details
Unsecured Senior Notes (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Unsecured Debt | $2,159,231,000 | $2,444,062,000 |
Unsecured Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | 2,150,000,000 | |
Unsecured Senior Notes | Unsecured Senior Notes 10.875% Due April 2015 | ||
Debt Instrument [Line Items] | ||
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 [Line Items] | ||
Unsecured Debt | 475,000,000 | 475,000,000 |
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 [Line Items] | ||
Unsecured Debt | 378,555,000 | 379,360,000 |
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 [Line Items] | ||
Unsecured Debt | 400,541,000 | 400,634,000 |
Debt Instrument, Face Amount | 475,000,000 | |
Interest rate | 6.50% | |
Unsecured Senior Notes | Unsecured Senior Notes Six Point Five Percent Due July 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Debt | 605,135,000 | 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 August 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Debt | 300,000,000 | 300,000,000 |
Debt Instrument, Face Amount | $300,000,000 | |
Interest rate | 6.50% |
Unsecured_Notes_Maturity_Sched
Unsecured Notes Maturity Schedule (Details) (Unsecured Senior Notes, USD $) | Dec. 31, 2014 |
Unsecured Senior Notes | |
Expected maturities of long-term debt | |
2013 | $0 |
2014 | 0 |
2015 | 0 |
2016 | 475,000,000 |
2017 | 375,000,000 |
Thereafter | 1,300,000,000 |
Debt Instrument, Face Amount | $2,150,000,000 |
Indebtedness_NonRecourse_Debt_
Indebtedness Non-Recourse Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Other Non-Recourse Debt | $1,768,311 | $1,192,597 |
Participating Interest Financing [Member] | ||
Debt Instrument [Line Items] | ||
Other Non-Recourse Debt | 1,433,145 | 1,103,490 |
2014-1 HECM securitization | ||
Debt Instrument [Line Items] | ||
Other Non-Recourse Debt | 259,328 | 0 |
Legacy Asset [Member] | ||
Debt Instrument [Line Items] | ||
Other Non-Recourse Debt | 75,838 | 89,107 |
Fair Value, Measurements, Recurring | Carrying Amount | Participating Interest Financing [Member] | ||
Debt Instrument [Line Items] | ||
Other Non-Recourse Debt | 1,103,490 | |
Fair Value, Measurements, Recurring | Carrying Amount | 2014-1 HECM securitization | ||
Debt Instrument [Line Items] | ||
Other Non-Recourse Debt | 259 | |
Fair Value, Measurements, Recurring | Carrying Amount | Legacy Asset [Member] | ||
Debt Instrument [Line Items] | ||
Other Non-Recourse Debt | $89,107 |
Indebtedness_Narrative_Details
Indebtedness Narrative (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2009 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Write off of Deferred Debt Issuance Cost | $3,400,000 | |||
Maximum Percentage Redeemable of Aggregate Principal on Unsecured Debt | 35.00% | |||
Secured Debt | 1,572,622,000 | 2,433,927,000 | ||
Other Non-Recourse Debt | 1,768,311,000 | 1,192,597,000 | ||
Principal Amount Outstanding on Loans Securitized or Asset-backed Financing Arrangement | 222,000,000 | |||
Minimum Tangible Net Worth Required for Compliance | 450,000,000 | |||
2014-1 HECM securitization | ||||
Debt Instrument [Line Items] | ||||
Reverse Mortgage Interest, Unpaid Principal Balance, Securitized | 343,600,000 | |||
Other Non-Recourse Debt | 259,328,000 | 0 | ||
Legacy Asset [Member] | ||||
Debt Instrument [Line Items] | ||||
Other Non-Recourse Debt | 75,838,000 | 89,107,000 | ||
Non-Recourse Debt | 75,837,000 | 89,107,000 | ||
Nonrecourse Debt-Legacy Assets | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Principal Amount Outstanding | 103,600,000 | 88,200,000 | ||
Unsecured Senior Notes | Unsecured Senior Notes 10.875% Due April 2015 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 10.88% | |||
Notes Payable, Mortgage Backed Securities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 0.14% | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 5.45% | |||
Secured Debt [Member] | Nonrecourse Debt-Legacy Assets | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 7.50% | |||
Servicing Segment | ||||
Debt Instrument [Line Items] | ||||
Secured Debt | 1,901,783,000 | 4,550,424,000 | ||
Servicing Segment | Notes Payable, Other | Securities Repurchase Facility Class M (2014) [Domain] | ||||
Debt Instrument [Line Items] | ||||
Secured Debt | 70,355,000 | |||
Servicing Segment | Notes Payable, Other | Securities Repurchase Facility (2014) Class A [Domain] | ||||
Debt Instrument [Line Items] | ||||
Secured Debt | 36,170,000 | |||
Securities Pledged as Collateral [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal Amount Outstanding on Loans Securitized or Asset-backed Financing Arrangement | $302,000,000 | $268,200,000 |
Assets_and_Liabilities_of_Cons
Assets and Liabilities of Consolidated VIEs (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | $1,760,455 | $4,517,961 |
Reverse Secured Borrowings, Assets, Carrying Amount | 1,720,070 | 1,039,645 |
Liabilities | 1,408,425 | 3,766,075 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 1,692,659 | 1,080,718 |
Participating interest financing | 1,080,718 | |
Residential Mortgage | Restricted Cash | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 90,068 | 272,188 |
Reverse Secured Borrowings, Assets, Carrying Amount | 15,578 | |
Residential Mortgage | Reverse Mortgages | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 0 | 0 |
Reverse Secured Borrowings, Assets, Carrying Amount | 1,642,789 | 1,039,645 |
Residential Mortgage | Accounts Receivable | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 1,477,388 | 4,030,280 |
Residential Mortgage | Mortgage Loans Held for Investment | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 189,456 | 208,263 |
Residential Mortgage | Derivative Financial Instruments, Assets | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 865 | 3,691 |
Residential Mortgage | Other Assets [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 2,678 | |
Reverse Secured Borrowings, Assets, Carrying Amount | 61,703 | |
Residential Mortgage | Real Estate Owned | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 3,539 | |
Residential Mortgage | Notes Payable | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 1,330,991 | 3,672,726 |
Residential Mortgage | Payables and Accrued Liabilities | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 1,596 | 4,242 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 186 | |
Residential Mortgage | Nonrecourse Debt-Legacy Assets | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 75,838 | 89,107 |
Residential Mortgage | Participating Mortgages | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
2014-1 HECM securitization | Residential Mortgage | Other Non-Recourse Debt [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Reverse Secured Borrowings, Liabilities, Carrying Amount | 259,328 | |
HMBS Securities | Residential Mortgage | Other Non-Recourse Debt [Member] | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Reverse Secured Borrowings, Liabilities, Carrying Amount | $1,433,145 |
Variable_Interest_Entities_and2
Variable Interest Entities and Securitizations Securitization Structured as a Sale (Details) (Mortgage-backed Securities, Issued by Private Enterprises [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Mortgage-backed Securities, Issued by Private Enterprises [Member] | |
Transfers of Financial Assets Accounted for as Sale, Initial Fair Value of Assets Obtained as Proceeds | $164,297 |
Transfers of Financial Assets Accounted for as Sale, Carrying Value | 158,204 |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale, Gain (Loss) on Sale | $6,093 |
Securitization_Trusts_Details
Securitization Trusts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Variable Interest Entities and Securitizations [Abstract] | |||
Total certificate balances | $3,258,472 | $3,831,473 | |
Total collateral balances | 3,297,256 | 3,843,694 | |
Financing Receivable, Recorded Investment, Past Due | 861,419 | 1,142,940 | |
Credit Losses | $275,726 | $251,076 | $273,817 |
Cash_Flows_from_Securitization
Cash Flows from Securitization Trust (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Variable Interest Entities and Securitizations [Abstract] | |||
Servicing Fees Received | $28,284 | $29,151 | $28,049 |
Loan Repurchases | $0 | $0 | $0 |
Accounts_Payable_Details
Accounts Payable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Payables and Accruals [Abstract] | |||
Financial Services Liabilities | $329,306 | $359,214 | |
Mortgage insurance premiums and reserves | 163,381 | 164,244 | |
Assets Sold under Agreements to Repurchase, Repurchase Liability | 131,592 | 120,736 | |
Taxes | 96,237 | 35,961 | |
Accrued bonus and payroll | 85,366 | 66,755 | |
Interest Payable | 59,708 | 76,303 | |
Purchase of Mortgage Servicing Rights Payable | 45,697 | 135,759 | |
Repurchase Reserve | 29,165 | 40,695 | 18,511 |
Other | 381,626 | 308,783 | |
Total payables and accrued liabilities | $1,322,078 | $1,308,450 |
Accounts_Payable_Repurchase_Re
Accounts Payable Repurchase Reserve (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loans Subject to Repurchase Reserve [Roll Forward] | ||
Repurchase Reserve | $40,695 | $18,511 |
Repurchase Reserve, Additions | 12,556 | 33,121 |
Loans Subject to Repurchase Reserve, Charge-offs | -2,925 | -10,937 |
Repurchase Reserve, Adjustments | 21,161 | 0 |
Repurchase Reserve | $29,165 | $40,695 |
Income_Taxes_Income_Tax_Expens
Income Taxes Income Tax Expense (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||||||
Current Federal Tax Expense (Benefit) | $46,381 | $4,636 | $82,120 | ||||||||||||
Current State and Local Tax Expense (Benefit) | 7,608 | -1,059 | 10,126 | ||||||||||||
Current Income Tax Expense (Benefit) | 53,989 | 3,577 | 92,246 | ||||||||||||
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||||||
Deferred Federal Income Tax Expense (Benefit) | 6,360 | 114,466 | -18,721 | ||||||||||||
Deferred State and Local Income Tax Expense (Benefit) | 4,511 | 11,157 | -2,229 | ||||||||||||
Deferred Income Tax Expense (Benefit) | 10,871 | 125,623 | -20,950 | ||||||||||||
Income Tax Expense (Benefit) | ($12,618) | $1,700 | ($38,941) | ($15,001) | $35,033 | ($50,187) | ($75,669) | ($38,377) | ($30,657) | ($24,714) | ($12,780) | ($3,145) | ($64,860) | ($129,200) | ($71,296) |
Income_Taxes_at_federal_statut
Income Taxes at federal statutory rate (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||||||
Effective Income Tax Rate Unadjusted for change in allowance | 36.80% | ||||||||||||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||||||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $100,058 | $121,186 | $96,804 | ||||||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 8,330 | 5,465 | 6,129 | ||||||||||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | -40,275 | 1,099 | -17,767 | ||||||||||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | -3,253 | 1,450 | 432 | ||||||||||||
Income tax expense | 12,618 | -1,700 | 38,941 | 15,001 | -35,033 | 50,187 | 75,669 | 38,377 | 30,657 | 24,714 | 12,780 | 3,145 | 64,860 | 129,200 | 71,296 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | ||||||||||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 2.90% | 1.60% | 2.20% | ||||||||||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | -14.10% | 0.30% | -6.40% | ||||||||||||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | -1.10% | 0.40% | 0.20% | ||||||||||||
Effective tax rate | 22.70% | 37.30% | 25.80% | ||||||||||||
Income Tax Reconciliation, Pre-reorganization Earnings | $0 | $0 | ($14,302) | ||||||||||||
Effective Income Tax Rate Reconciliation, Pre-organization Earnings | 0.00% | 0.00% | -5.20% |
Income_Taxes_Carryforward_and_
Income Taxes Carryforward and Temporary Differences (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of Deferred Tax Assets [Abstract] | ||
Deferred Tax Assets, Operating Loss Carryforwards | $67,799 | $75,387 |
Deferred Tax Asset, Loss Reserves | 41,467 | 28,808 |
Deferred Tax Liabilities, Reserve Mortgage Premiums | 26,227 | 23,756 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Deferred Rent | 2,138 | 5,389 |
Deferred Tax Asset, Restricted share based compensation | 11,159 | 4,847 |
Deferred Tax Asset, Goodwill | 427 | 1,297 |
Deferred Tax Assets, Other | 9,094 | 6,632 |
Deferred Tax Assets, Gross | 158,311 | 146,116 |
Components of Deferred Tax Liabilities [Abstract] | ||
Deferred Tax Liabilities, Mortgage Servicing Rights, Amortization | -228,987 | -185,225 |
Deferred Tax Liabilities, Property, Plant and Equipment | -31,997 | -9,745 |
Deferred Tax Liabilities, Prepaid Expenses | -888 | -2,054 |
Deferred Tax Liabilities, Other Comprehensive Income | 0 | 843 |
Deferred Tax Liabilities, Other | 107 | -4,312 |
Deferred Tax Liabilities, Gross | 261,765 | 202,179 |
Deferred Tax Assets, Valuation Allowance | -6,391 | -46,666 |
Deferred Tax Liabilities, Net | ($109,845) | ($102,729) |
Income_Taxes_Income_Tax_Expens1
Income Taxes Income Tax Expense Paragraph (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Tax Credit Carryforward [Line Items] | |||
Deferred Tax Assets, Capital Loss Carryforwards | $16,000,000 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 95,900,000 | ||
Principal Amount Outstanding on Loans Managed and Securitized, Additions | 192,000,000,000 | 100,000,000,000 | |
Operating Loss Carryforwards, Expiration Period | 18 years | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 44,200,000 | ||
Internal Revenue Service (IRS) [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | $164,600,000 | $199,900,000 |
Fair_Value_Measurements_Measur
Fair Value Measurements - Measured on a Recurring Basis (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Mortgages loans held for sale | $1,277,931 | $2,603,380 |
Mortgage servicing rights | 2,949,739 | 2,488,283 |
LIABILITIES | ||
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | 49,430 | 29,874 |
Level 2 | ||
ASSETS | ||
Mortgages loans held for sale | 2,601,520 | |
Fair Value, Measurements, Recurring | Total Fair Value | ||
ASSETS | ||
Mortgages loans held for sale | 1,277,931 | 2,585,340 |
Mortgage servicing rights | 2,949,739 | 2,488,283 |
Total assets | 4,318,721 | 5,197,501 |
LIABILITIES | ||
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | 49,430 | 29,874 |
Excess spread financing (at fair value) | 1,031,035 | 986,410 |
Total liabilities | 1,098,990 | 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 | ||
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | 0 | 0 |
Excess spread financing (at fair value) | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Mortgages loans held for sale | 1,277,931 | 2,585,340 |
Mortgage servicing rights | 0 | 0 |
Total assets | 1,368,982 | 2,709,218 |
LIABILITIES | ||
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | 0 | 0 |
Excess spread financing (at fair value) | 0 | 0 |
Total liabilities | 18,525 | 8,526 |
Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Mortgages loans held for sale | 0 | 0 |
Mortgage servicing rights | 2,949,739 | 2,488,283 |
Total assets | 2,949,739 | 2,488,283 |
LIABILITIES | ||
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | 49,430 | 29,874 |
Excess spread financing (at fair value) | 1,031,035 | 986,410 |
Total liabilities | 1,080,465 | 1,016,284 |
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | Total Fair Value | ||
ASSETS | ||
Fair Value - Asset | 87,902 | 87,128 |
LIABILITIES | ||
Fair Value - Liability | 7 | 2,698 |
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Fair Value - Asset | 87,902 | 87,128 |
LIABILITIES | ||
Fair Value - Liability | 7 | 2,698 |
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Forward Contracts | Fair Value, Measurements, Recurring | Total Fair Value | ||
ASSETS | ||
Fair Value - Asset | 284 | 32,266 |
LIABILITIES | ||
Fair Value - Liability | 18,360 | 3,305 |
Forward Contracts | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Forward Contracts | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Fair Value - Asset | 284 | 32,266 |
LIABILITIES | ||
Fair Value - Liability | 18,360 | 3,305 |
Forward Contracts | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Loan Purchase Commitments [Member] | Fair Value, Measurements, Recurring | Total Fair Value | ||
ASSETS | ||
Fair Value - Asset | 1,999 | 793 |
LIABILITIES | ||
Fair Value - Liability | 48 | 1,689 |
Loan Purchase Commitments [Member] | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Loan Purchase Commitments [Member] | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Fair Value - Asset | 1,999 | 793 |
LIABILITIES | ||
Fair Value - Liability | 48 | 1,689 |
Loan Purchase Commitments [Member] | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Interest Rate Swaps and Caps | Fair Value, Measurements, Recurring | Total Fair Value | ||
ASSETS | ||
Fair Value - Asset | 865 | 3,691 |
Interest Rate Swaps and Caps | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
Interest Rate Swaps and Caps | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Fair Value - Asset | 865 | 3,691 |
Interest Rate Swaps and Caps | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
Future [Member] | Fair Value, Measurements, Recurring | Total Fair Value | ||
ASSETS | ||
Fair Value - Asset | 1 | |
LIABILITIES | ||
Fair Value - Liability | 7 | |
Future [Member] | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Fair Value - Asset | 0 | |
LIABILITIES | ||
Fair Value - Liability | 0 | |
Future [Member] | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Fair Value - Asset | 1 | |
LIABILITIES | ||
Fair Value - Liability | 7 | |
Future [Member] | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Fair Value - Asset | 0 | |
LIABILITIES | ||
Fair Value - Liability | 0 | |
Interest Rate Swap | Fair Value, Measurements, Recurring | Total Fair Value | ||
LIABILITIES | ||
Fair Value - Liability | 103 | 834 |
Interest Rate Swap | Fair Value, Measurements, Recurring | Level 1 | ||
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Interest Rate Swap | Fair Value, Measurements, Recurring | Level 2 | ||
LIABILITIES | ||
Fair Value - Liability | 103 | 834 |
Interest Rate Swap | Fair Value, Measurements, Recurring | Level 3 | ||
LIABILITIES | ||
Fair Value - Liability | $0 | $0 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurements - Reconciliation of Level 3 (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Excess Spread Financing | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $986,410 | $288,089 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Total gains or losses included in earnings | 57,554 | 73,333 |
Total gains or losses included in other comprehensive income | 0 | 0 |
Purchases, issuances, sales and settlements | ||
Purchases | 0 | 0 |
Issuances | 171,317 | 755,344 |
Sales | 0 | 0 |
Settlements | -184,246 | -130,356 |
Ending balance | 1,031,035 | 986,410 |
Mortgage Servicing Right Liability [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 29,874 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Total gains or losses included in earnings | -33,279 | 0 |
Total gains or losses included in other comprehensive income | 0 | 0 |
Purchases, issuances, sales and settlements | ||
Purchases | 0 | 0 |
Issuances | 52,835 | 29,874 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Ending balance | 49,430 | 29,874 |
Mortgage Servicing Rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 2,488,283 | 635,860 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Total gains or losses included in earnings | -247,379 | 58,458 |
Total gains or losses included in other comprehensive income | 0 | 0 |
Purchases, issuance, sales and settlements | ||
Purchases | 470,543 | 1,545,584 |
Issuances | 238,292 | 248,381 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Ending balance | $2,949,739 | $2,488,283 |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets: | ||
Restricted Cash and Cash Equivalents | $285,530 | $592,747 |
Mortgages loans held for sale | 1,277,931 | 2,603,380 |
Mortgage loans held for investment, net | 191,569 | 211,050 |
Reverse mortgage interests | 2,383,647 | 1,528,000 |
Derivative instruments | 91,051 | 123,878 |
Financial liabilities: | ||
Unsecured Debt | 2,159,231 | 2,444,062 |
Secured Debt | 1,572,622 | 2,433,927 |
Derivative financial instruments | 18,525 | 8,526 |
Excess spread financing - fair value | 1,031,035 | 986,410 |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | 49,430 | 29,874 |
Other Non-Recourse Debt | 1,768,311 | 1,192,597 |
Level 1 | ||
Financial liabilities: | ||
Unsecured senior notes | 2,489,886 | |
Level 2 | ||
Financial assets: | ||
Mortgages loans held for sale | 2,601,520 | |
Financial liabilities: | ||
Unsecured senior notes | 0 | |
Level 3 | ||
Financial liabilities: | ||
Unsecured senior notes | 0 | |
Carrying Amount | ||
Financial assets: | ||
Mortgages loans held for sale | 2,603,380 | |
Financial liabilities: | ||
Unsecured senior notes | 2,444,062 | |
Fair Value, Measurements, Recurring | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 299,002 | 441,902 |
Restricted Cash and Cash Equivalents | 285,530 | 592,747 |
Mortgages loans held for sale | 0 | 0 |
Mortgage loans held for investment, net | 0 | |
Reverse mortgage interests | 0 | 0 |
Derivative instruments | 0 | 0 |
Mortgage loans held for investment, subject to nonrecourse debt - Legacy assets | 0 | |
Financial liabilities: | ||
Unsecured Debt | 2,057,038 | |
Secured Debt | 0 | 0 |
Notes payable | 0 | |
Derivative financial instruments | 0 | 0 |
Excess spread financing - fair value | 0 | 0 |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted Cash and Cash Equivalents | 0 | 0 |
Mortgages loans held for sale | 1,277,931 | 2,585,340 |
Mortgage loans held for investment, net | 0 | |
Reverse mortgage interests | 0 | 0 |
Derivative instruments | 91,051 | 123,878 |
Mortgage loans held for investment, subject to nonrecourse debt - Legacy assets | 0 | |
Financial liabilities: | ||
Unsecured Debt | 0 | |
Secured Debt | 1,901,783 | 4,550,424 |
Notes payable | 1,572,622 | 2,433,927 |
Derivative financial instruments | 18,525 | 8,526 |
Excess spread financing - fair value | 0 | 0 |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted Cash and Cash Equivalents | 0 | 0 |
Mortgages loans held for sale | 0 | 0 |
Mortgage loans held for investment, net | 192,865 | |
Reverse mortgage interests | 2,432,735 | 1,405,197 |
Derivative instruments | 0 | 0 |
Mortgage loans held for investment, subject to nonrecourse debt - Legacy assets | 180,435 | |
Financial liabilities: | ||
Unsecured Debt | 0 | |
Secured Debt | 0 | |
Notes payable | 0 | |
Derivative financial instruments | 0 | 0 |
Excess spread financing - fair value | 1,031,035 | 986,410 |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | 49,430 | 29,874 |
Fair Value, Measurements, Recurring | Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 441,902 | |
Restricted Cash and Cash Equivalents | 592,747 | |
Reverse mortgage interests | 1,434,506 | |
Derivative instruments | 123,878 | |
Mortgage loans held for investment, subject to nonrecourse debt - Legacy assets | 211,050 | |
Financial liabilities: | ||
Secured Debt | 4,550,424 | |
Notes payable | 1,572,622 | 2,433,927 |
Derivative financial instruments | 8,526 | |
Excess spread financing - fair value | 1,031,035 | 986,410 |
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale | 49,430 | 29,874 |
Legacy Asset [Member] | ||
Financial liabilities: | ||
Other Non-Recourse Debt | 75,838 | 89,107 |
Legacy Asset [Member] | Fair Value, Measurements, Recurring | Level 1 | ||
Financial liabilities: | ||
Other Non-Recourse Debt | 0 | 0 |
Legacy Asset [Member] | Fair Value, Measurements, Recurring | Level 2 | ||
Financial liabilities: | ||
Other Non-Recourse Debt | 0 | 0 |
Legacy Asset [Member] | Fair Value, Measurements, Recurring | Level 3 | ||
Financial liabilities: | ||
Other Non-Recourse Debt | 86,570 | 95,345 |
Legacy Asset [Member] | Fair Value, Measurements, Recurring | Carrying Amount | ||
Financial liabilities: | ||
Other Non-Recourse Debt | 89,107 | |
Participating Interest Financing [Member] | ||
Financial liabilities: | ||
Other Non-Recourse Debt | 1,433,145 | 1,103,490 |
Participating Interest Financing [Member] | Fair Value, Measurements, Recurring | Level 1 | ||
Financial liabilities: | ||
Other Non-Recourse Debt | 0 | 0 |
Participating Interest Financing [Member] | Fair Value, Measurements, Recurring | Level 2 | ||
Financial liabilities: | ||
Other Non-Recourse Debt | 1,423,291 | 1,093,747 |
Participating Interest Financing [Member] | Fair Value, Measurements, Recurring | Level 3 | ||
Financial liabilities: | ||
Other Non-Recourse Debt | 0 | 0 |
Participating Interest Financing [Member] | Fair Value, Measurements, Recurring | Carrying Amount | ||
Financial liabilities: | ||
Other Non-Recourse Debt | 1,103,490 | |
2014-1 HECM securitization | ||
Financial liabilities: | ||
Other Non-Recourse Debt | 259,328 | 0 |
2014-1 HECM securitization | Fair Value, Measurements, Recurring | Level 1 | ||
Financial liabilities: | ||
Other Non-Recourse Debt | 0 | |
2014-1 HECM securitization | Fair Value, Measurements, Recurring | Level 2 | ||
Financial liabilities: | ||
Other Non-Recourse Debt | 0 | |
2014-1 HECM securitization | Fair Value, Measurements, Recurring | Level 3 | ||
Financial liabilities: | ||
Other Non-Recourse Debt | 259 | |
2014-1 HECM securitization | Fair Value, Measurements, Recurring | Carrying Amount | ||
Financial liabilities: | ||
Other Non-Recourse Debt | $259 |
Employee_Benefits_Details
Employee Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 2.00% | ||
Employer Matching on Contribution of gross pay greater than two percent up to four percent | 50.00% | ||
Percentage of employee gross pay, employer contribute | 4.00% | ||
Defined Contribution Plan, Cost Recognized | $11.50 | $11.10 | $3.70 |
Sharebased_Compensation_Detail
Share-based Compensation (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Allocated Share-based Compensation Expense | $18.60 | $10.60 | $13.30 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Amount to be Recognized in Next Twelve Months | 12.5 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Amount to Recognize in Year Two | 4.7 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Amount to Recognize in Year Three | 1.4 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Amount to Recognize in Year Four | $0.30 |
Sharebased_Compensation_Restri
Share-based Compensation - Restricted Stock Rollforward (Details) (Two Thousand Twelve Plan [Member], Restricted Stock [Member], USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Two Thousand Twelve Plan [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning of Period (shares) | 1,066 | 1,293 | ||
Granted (shares) | 1,277 | 69 | 1,042 | 307 |
Forfeited in Period (shares) | -53 | -151 | -56 | |
Vested in Period (shares) | -354 | -310 | ||
Treasury Stock, Shares, Acquired | -174 | -168 | ||
Ending of Period (shares) | 1,293 | 1,429 | 1,066 | |
Nonvested and Expected to Vest, Number (shares) | 1,313 | |||
Vested and Payable, Number (shares) | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $14 | $29.95 | $31.65 | $37.88 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $14 | $28.01 | $20.46 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 0 years 2 months | 0 years 6 months | 2 years 5 months | 1 year 2 months |
Sharebased_Compensation_Vestin
Share-based Compensation Vesting Schedule of Restricted Stock (Details) (Two Thousand Twelve Plan [Member], Restricted Stock [Member]) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Nonvested and Expected to Vest, Number (shares) | 1,313 |
Current year vesting [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Nonvested and Expected to Vest, Number (shares) | 662 |
Vesting in Year One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Nonvested and Expected to Vest, Number (shares) | 328 |
Vesting in Year Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Nonvested and Expected to Vest, Number (shares) | 254 |
Vesting in Year Three [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Nonvested and Expected to Vest, Number (shares) | 69 |
Capital_Requirements_Details
Capital Requirements (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Mortgage Banking [Abstract] | |
Minimum Net Worth Required for Compliance | $665.70 |
Lease_Commitments_Details
Lease Commitments (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Capital Requirements [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $23,302 |
Operating Leases, Future Minimum Payments, Due in Two Years | 22,302 |
Operating Leases, Future Minimum Payments, Due in Three Years | 18,345 |
Operating Leases, Future Minimum Payments, Due in Four Years | 17,034 |
Operating Leases, Future Minimum Payments, Due Thereafter | 38,850 |
Operating Leases, Future Minimum Payments Due | $119,833 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Narrative (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Feb. 28, 2013 | |
Mortgage Servicing Rights [Line Items] | |||||
Legal Fees | $29,200,000 | $20,400,000 | $15,000,000 | ||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 2,000,000,000 | ||||
Litigation and Regulatory Matters [Member] | |||||
Mortgage Servicing Rights [Line Items] | |||||
Loss Contingency, Range of Possible Loss, Minimum | 5,300,000 | ||||
Loss Contingency, Range of Possible Loss, Maximum | 12,400,000 | ||||
Reverse Mortgages | |||||
Mortgage Servicing Rights [Line Items] | |||||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 28,000,000,000 | 28,900,000,000 | 100,000,000 | ||
Off-balance Sheet, Maximum Advance Obligation of Reverse Mortgages Serviced | $3,900,000,000 |
Restructuring_Charges_Restruct
Restructuring Charges Restructuring Narrative (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | ($581) | $12,873 | $500 |
Contract Termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | -581 | 4,108 | 500 |
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $0 | $8,765 | $0 |
Restructuring_Charges_Restruct1
Restructuring Charges Restructuring Charges Activity (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve | $13,286 | $7,186 | $8,460 |
Restructuring Charges | -581 | 12,873 | 500 |
Payments for Restructuring | -8,726 | -6,773 | -1,774 |
Restructuring Reserve | 3,979 | 13,286 | 7,186 |
Employee Severance [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve | 4,650 | 0 | 0 |
Restructuring Charges | 0 | 8,765 | 0 |
Payments for Restructuring | -4,650 | -4,115 | 0 |
Restructuring Reserve | 0 | 4,650 | 0 |
Contract Termination [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve | 8,636 | 7,186 | 8,460 |
Restructuring Charges | -581 | 4,108 | 500 |
Payments for Restructuring | -4,076 | -2,658 | -1,774 |
Restructuring Reserve | $3,979 | $8,636 | $7,186 |
Business_Segment_Reporting_Fin
Business Segment Reporting - Financial Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||||||||||||||
Servicing fee income | $1,375,862 | $1,384,222 | $497,151 | ||||||||||||
Gain/(loss) on mortgage loans held for sale | 597,206 | 702,763 | 487,164 | ||||||||||||
Total revenues | 449,364 | 504,324 | 549,733 | 469,647 | 420,420 | 631,838 | 603,665 | 431,062 | 332,614 | 284,870 | 202,759 | 164,072 | 1,973,068 | 2,086,985 | 984,315 |
Total expenses and impairments | 362,623 | 327,224 | 346,711 | 321,133 | 398,002 | 395,854 | 339,851 | 268,571 | 200,268 | 154,828 | 130,372 | 96,577 | 1,357,691 | 1,402,278 | 582,045 |
Interest income | 179,592 | 197,220 | 71,586 | ||||||||||||
Other income (expense): | |||||||||||||||
Interest expense | -516,387 | -538,805 | -197,308 | ||||||||||||
Gain (Loss) on Contract Termination | 0 | 0 | 15,600 | ||||||||||||
Income (Loss) from Equity Method Investments | -14,571 | ||||||||||||||
Gain (Loss) on Sale of Properties | 4,898 | ||||||||||||||
Gain/(Loss) on interest rate swaps and caps | 2,404 | 3,132 | -994 | ||||||||||||
Total other income (expense) | -54,702 | -67,521 | -97,434 | -109,836 | -108,358 | -103,912 | -64,685 | -61,498 | -37,930 | -50,261 | -23,332 | -14,164 | -329,493 | -338,453 | -125,687 |
Income before taxes | 32,039 | 109,579 | 105,588 | 38,678 | -85,940 | 132,072 | 199,129 | 100,993 | 94,416 | 79,781 | 49,055 | 53,331 | 285,884 | 346,254 | 276,583 |
Depreciation and amortization | 40,166 | 26,615 | 9,620 | ||||||||||||
Assets | 11,112,675 | 14,026,689 | 7,126,143 | 11,112,675 | 14,026,689 | 7,126,143 | |||||||||
Operating Segments | |||||||||||||||
Revenues: | |||||||||||||||
Servicing fee income | 1,372,592 | 1,384,106 | 496,843 | ||||||||||||
Gain/(loss) on mortgage loans held for sale | 599,779 | 711,981 | 487,142 | ||||||||||||
Total revenues | 1,972,371 | 2,096,087 | 983,985 | ||||||||||||
Total expenses and impairments | 1,277,241 | 1,311,703 | 515,044 | ||||||||||||
Interest income | 163,744 | 178,626 | 51,362 | ||||||||||||
Other income (expense): | |||||||||||||||
Interest expense | -316,696 | -358,871 | -121,048 | ||||||||||||
Gain (Loss) on Contract Termination | 15,600 | ||||||||||||||
Income (Loss) from Equity Method Investments | -14,571 | ||||||||||||||
Gain (Loss) on Sale of Properties | 0 | ||||||||||||||
Gain/(Loss) on interest rate swaps and caps | 1,672 | 1,856 | 1,237 | ||||||||||||
Total other income (expense) | -151,280 | -178,389 | -67,420 | ||||||||||||
Income before taxes | 543,850 | 605,995 | 401,521 | ||||||||||||
Depreciation and amortization | 27,369 | 22,685 | 8,880 | ||||||||||||
Assets | 10,393,461 | 12,788,817 | 6,703,528 | 10,393,461 | 12,788,817 | 6,703,528 | |||||||||
Servicing Segment | |||||||||||||||
Revenues: | |||||||||||||||
Servicing fee income | 1,006,837 | 1,175,487 | 488,768 | ||||||||||||
Gain/(loss) on mortgage loans held for sale | 64,506 | 61,624 | 0 | ||||||||||||
Total revenues | 1,071,343 | 1,237,111 | 488,768 | ||||||||||||
Total expenses and impairments | 697,878 | 608,978 | 315,101 | ||||||||||||
Interest income | 91,713 | 90,913 | 30,936 | ||||||||||||
Other income (expense): | |||||||||||||||
Interest expense | -246,099 | -279,501 | -102,570 | ||||||||||||
Gain (Loss) on Contract Termination | 15,600 | ||||||||||||||
Income (Loss) from Equity Method Investments | -14,571 | ||||||||||||||
Gain (Loss) on Sale of Properties | 0 | ||||||||||||||
Gain/(Loss) on interest rate swaps and caps | 1,672 | 1,856 | 1,237 | ||||||||||||
Total other income (expense) | -152,714 | -186,732 | -69,368 | ||||||||||||
Income before taxes | 220,751 | 441,401 | 104,299 | ||||||||||||
Depreciation and amortization | 13,997 | 14,955 | 6,126 | ||||||||||||
Assets | 8,774,135 | 9,969,390 | 4,981,987 | 8,774,135 | 9,969,390 | 4,981,987 | |||||||||
Originations Segment | |||||||||||||||
Revenues: | |||||||||||||||
Servicing fee income | 43,954 | 62,011 | -291 | ||||||||||||
Gain/(loss) on mortgage loans held for sale | 535,273 | 650,357 | 487,142 | ||||||||||||
Total revenues | 579,227 | 712,368 | 486,851 | ||||||||||||
Total expenses and impairments | 390,497 | 589,986 | 195,480 | ||||||||||||
Interest income | 72,031 | 87,713 | 20,426 | ||||||||||||
Other income (expense): | |||||||||||||||
Interest expense | -70,237 | -79,106 | -18,478 | ||||||||||||
Gain (Loss) on Contract Termination | 0 | ||||||||||||||
Income (Loss) from Equity Method Investments | 0 | ||||||||||||||
Gain (Loss) on Sale of Properties | 0 | ||||||||||||||
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | ||||||||||||
Total other income (expense) | 1,794 | 8,607 | 1,948 | ||||||||||||
Income before taxes | 190,524 | 130,989 | 293,319 | ||||||||||||
Depreciation and amortization | 9,642 | 6,569 | 2,754 | ||||||||||||
Assets | 1,400,880 | 2,777,928 | 1,721,541 | 1,400,880 | 2,777,928 | 1,721,541 | |||||||||
Solutionstar Segment [Member] | |||||||||||||||
Revenues: | |||||||||||||||
Servicing fee income | 321,801 | 146,608 | 8,366 | ||||||||||||
Gain/(loss) on mortgage loans held for sale | 0 | 0 | 0 | ||||||||||||
Total revenues | 321,801 | 146,608 | 8,366 | ||||||||||||
Total expenses and impairments | 188,866 | 112,739 | 4,463 | ||||||||||||
Interest income | 0 | 0 | 0 | ||||||||||||
Other income (expense): | |||||||||||||||
Interest expense | -360 | -264 | 0 | ||||||||||||
Gain (Loss) on Contract Termination | 0 | ||||||||||||||
Income (Loss) from Equity Method Investments | 0 | ||||||||||||||
Gain (Loss) on Sale of Properties | 0 | ||||||||||||||
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | ||||||||||||
Total other income (expense) | -360 | -264 | 0 | ||||||||||||
Income before taxes | 132,575 | 33,605 | 3,903 | ||||||||||||
Depreciation and amortization | 3,730 | 1,161 | 0 | ||||||||||||
Assets | 218,446 | 41,499 | 0 | 218,446 | 41,499 | 0 | |||||||||
Legacy Portfolio and Other | |||||||||||||||
Revenues: | |||||||||||||||
Servicing fee income | 4,713 | 1,750 | 2,101 | ||||||||||||
Gain/(loss) on mortgage loans held for sale | -2,573 | -9,218 | 0 | ||||||||||||
Total revenues | 2,140 | -7,468 | 2,101 | ||||||||||||
Total expenses and impairments | 80,450 | 90,575 | 67,001 | ||||||||||||
Interest income | 14,405 | 16,960 | 18,431 | ||||||||||||
Other income (expense): | |||||||||||||||
Interest expense | -199,691 | -179,934 | -76,238 | ||||||||||||
Gain (Loss) on Contract Termination | 0 | ||||||||||||||
Income (Loss) from Equity Method Investments | 0 | ||||||||||||||
Gain (Loss) on Sale of Properties | 4,898 | ||||||||||||||
Gain/(Loss) on interest rate swaps and caps | 732 | 1,276 | -2,231 | ||||||||||||
Total other income (expense) | -179,656 | -161,698 | -60,038 | ||||||||||||
Income before taxes | -257,966 | -259,741 | -124,938 | ||||||||||||
Depreciation and amortization | 12,797 | 3,930 | 740 | ||||||||||||
Assets | 719,214 | 1,237,872 | 422,615 | 719,214 | 1,237,872 | 422,615 | |||||||||
Eliminations | |||||||||||||||
Revenues: | |||||||||||||||
Servicing fee income | -1,443 | -1,634 | -1,793 | ||||||||||||
Gain/(loss) on mortgage loans held for sale | 0 | 0 | 22 | ||||||||||||
Total revenues | -1,443 | -1,634 | -1,771 | ||||||||||||
Total expenses and impairments | 0 | 0 | 0 | ||||||||||||
Interest income | 1,443 | 1,634 | 1,793 | ||||||||||||
Other income (expense): | |||||||||||||||
Interest expense | 0 | 0 | -22 | ||||||||||||
Gain (Loss) on Contract Termination | 0 | ||||||||||||||
Income (Loss) from Equity Method Investments | 0 | ||||||||||||||
Gain (Loss) on Sale of Properties | 0 | ||||||||||||||
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | ||||||||||||
Total other income (expense) | 1,443 | 1,634 | 1,771 | ||||||||||||
Income before taxes | 0 | 0 | 0 | ||||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||||||
Assets | $0 | $0 | $0 | $0 | $0 | $0 |
Guarantor_Financial_Statement_2
Guarantor Financial Statement Information - Narrative (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | subsidiary | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||
Unsecured Debt | $2,159,231 | $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 $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $299,002 | $441,902 | $152,649 | $62,445 |
Restricted cash | 285,530 | 592,747 | ||
Servicing Asset | 2,961,321 | 2,503,162 | ||
Accounts receivable | 2,546,362 | 5,002,202 | ||
Reverse mortgage interests | 2,383,647 | 1,528,000 | ||
Loans Receivable Held-for-sale, Amount | 1,277,931 | 2,603,380 | 1,480,537 | |
Mortgage loans held for investment, net | 191,569 | 211,050 | ||
Property and equipment, net | 129,611 | 119,185 | ||
Derivative financial instruments | 91,051 | 123,878 | ||
Other assets | 946,651 | 901,183 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 11,112,675 | 14,026,689 | 7,126,143 | |
Liabilities and shareholders' equity | ||||
Unsecured Debt | 2,159,231 | 2,444,062 | ||
secured debt advances | 1,901,783 | 4,550,424 | ||
Secured Debt | 1,572,622 | 2,433,927 | ||
Accounts Payable and Accrued Liabilities | 1,322,078 | 1,308,450 | ||
Mortgage Serving Rights Liability, carried at fair value | 1,080,465 | 1,016,284 | ||
Servicing Liability at Amortized Cost, Balance | 65,382 | 82,521 | ||
Derivative financial instruments | 18,525 | 8,526 | ||
Other Non-Recourse Debt | 1,768,311 | 1,192,597 | ||
Payables to affiliates | 0 | 0 | ||
Liabilities | 9,888,397 | 13,036,791 | ||
Total equity | 1,224,278 | 989,898 | 757,682 | 281,309 |
Liabilities and Equity | 11,112,675 | 14,026,689 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Servicing Asset | 0 | 0 | ||
Accounts receivable | 0 | 0 | ||
Reverse mortgage interests | 0 | 0 | ||
Loans Receivable Held-for-sale, Amount | 0 | 0 | ||
Mortgage loans held for investment, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Other assets | 16,383 | 21,872 | ||
Investment in subsidiaries | 1,207,895 | 968,026 | ||
Total assets | 1,224,278 | 989,898 | ||
Liabilities and shareholders' equity | ||||
Unsecured Debt | 0 | 0 | ||
secured debt advances | 0 | 0 | ||
Secured Debt | 0 | 0 | ||
Accounts Payable and Accrued Liabilities | 0 | 0 | ||
Mortgage Serving Rights Liability, carried at fair value | 0 | 0 | ||
Servicing Liability at Amortized Cost, Balance | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Other Non-Recourse Debt | 0 | 0 | ||
Payables to affiliates | 0 | 0 | ||
Liabilities | 0 | 0 | ||
Total equity | 1,224,278 | 989,898 | ||
Liabilities and Equity | 1,224,278 | 989,898 | ||
Issuer | ||||
Assets | ||||
Cash and cash equivalents | 279,770 | 422,268 | 152,248 | 62,201 |
Restricted cash | 177,090 | 312,120 | ||
Servicing Asset | 2,961,321 | 2,503,162 | ||
Accounts receivable | 2,544,065 | 5,003,193 | ||
Reverse mortgage interests | 2,104,082 | 1,528,000 | ||
Loans Receivable Held-for-sale, Amount | 1,243,700 | 2,603,380 | ||
Mortgage loans held for investment, net | 1,945 | 2,786 | ||
Property and equipment, net | 114,903 | 115,765 | ||
Derivative financial instruments | 87,911 | 120,187 | ||
Other assets | 1,076,780 | 1,306,997 | ||
Investment in subsidiaries | 450,363 | 181,545 | ||
Total assets | 11,041,930 | 14,099,403 | ||
Liabilities and shareholders' equity | ||||
Unsecured Debt | 2,159,231 | 2,444,062 | ||
secured debt advances | 570,792 | 877,698 | ||
Secured Debt | 1,539,994 | 2,433,927 | ||
Accounts Payable and Accrued Liabilities | 1,282,895 | 1,319,172 | ||
Mortgage Serving Rights Liability, carried at fair value | 1,080,465 | 1,016,284 | ||
Servicing Liability at Amortized Cost, Balance | 65,382 | 82,521 | ||
Derivative financial instruments | 18,525 | 8,526 | ||
Other Non-Recourse Debt | 1,433,145 | 1,103,490 | ||
Payables to affiliates | 1,683,606 | 3,845,697 | ||
Liabilities | 9,834,035 | 13,131,377 | ||
Total equity | 1,207,895 | 968,026 | ||
Liabilities and Equity | 11,041,930 | 14,099,403 | ||
Guarantor (Subsidiaries) | ||||
Assets | ||||
Cash and cash equivalents | 288 | 3,907 | 401 | 244 |
Restricted cash | 0 | 3 | ||
Servicing Asset | 0 | 0 | ||
Accounts receivable | 0 | 0 | ||
Reverse mortgage interests | 0 | 0 | ||
Loans Receivable Held-for-sale, Amount | 0 | 0 | ||
Mortgage loans held for investment, net | 0 | 0 | ||
Property and equipment, net | 835 | 855 | ||
Derivative financial instruments | 0 | 0 | ||
Other assets | 272,654 | 325,928 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 273,777 | 330,693 | ||
Liabilities and shareholders' equity | ||||
Unsecured Debt | 0 | 0 | ||
secured debt advances | 0 | 0 | ||
Secured Debt | 0 | 0 | ||
Accounts Payable and Accrued Liabilities | 25 | 5,950 | ||
Mortgage Serving Rights Liability, carried at fair value | 0 | 0 | ||
Servicing Liability at Amortized Cost, Balance | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Other Non-Recourse Debt | 0 | 0 | ||
Payables to affiliates | 894 | 116,349 | ||
Liabilities | 919 | 122,299 | ||
Total equity | 272,858 | 208,394 | ||
Liabilities and Equity | 273,777 | 330,693 | ||
Non-Guarantor (Subsidiaries) | ||||
Assets | ||||
Cash and cash equivalents | 18,944 | 15,727 | 0 | 0 |
Restricted cash | 108,440 | 280,624 | ||
Servicing Asset | 0 | 0 | ||
Accounts receivable | 2,297 | -991 | ||
Reverse mortgage interests | 279,565 | 0 | ||
Loans Receivable Held-for-sale, Amount | 34,231 | 0 | ||
Mortgage loans held for investment, net | 189,624 | 208,264 | ||
Property and equipment, net | 13,873 | 2,565 | ||
Derivative financial instruments | 3,140 | 3,691 | ||
Other assets | 1,389,781 | 7,440,111 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 2,039,895 | 7,949,991 | ||
Liabilities and shareholders' equity | ||||
Unsecured Debt | 0 | 0 | ||
secured debt advances | 1,330,991 | 3,672,726 | ||
Secured Debt | 32,628 | 0 | ||
Accounts Payable and Accrued Liabilities | 39,158 | 14,791 | ||
Mortgage Serving Rights Liability, carried at fair value | 0 | 0 | ||
Servicing Liability at Amortized Cost, Balance | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Other Non-Recourse Debt | 335,166 | 89,107 | ||
Payables to affiliates | 124,447 | 4,200,216 | ||
Liabilities | 1,862,390 | 7,976,840 | ||
Total equity | 177,505 | -26,849 | ||
Liabilities and Equity | 2,039,895 | 7,949,991 | ||
Eliminations | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Servicing Asset | 0 | 0 | ||
Accounts receivable | 0 | 0 | ||
Reverse mortgage interests | 0 | 0 | ||
Loans Receivable Held-for-sale, Amount | 0 | 0 | ||
Mortgage loans held for investment, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Other assets | -1,808,947 | -8,193,725 | ||
Investment in subsidiaries | -1,658,258 | -1,149,571 | ||
Total assets | -3,467,205 | -9,343,296 | ||
Liabilities and shareholders' equity | ||||
Unsecured Debt | 0 | 0 | ||
secured debt advances | 0 | 0 | ||
Secured Debt | 0 | 0 | ||
Accounts Payable and Accrued Liabilities | 0 | -31,463 | ||
Mortgage Serving Rights Liability, carried at fair value | 0 | 0 | ||
Servicing Liability at Amortized Cost, Balance | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Other Non-Recourse Debt | 0 | 0 | ||
Payables to affiliates | -1,808,947 | -8,162,262 | ||
Liabilities | -1,808,947 | -8,193,725 | ||
Total equity | -1,658,258 | -1,149,571 | ||
Liabilities and Equity | ($3,467,205) | ($9,343,296) |
Guarantor_Financial_Statement_4
Guarantor Financial Statement Information - Consolidating Statements of Operations and Comprehensive Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements | |||||||||||||||
Fees and Commissions, Mortgage Banking and Servicing | $334,213 | $351,070 | $362,916 | $327,663 | $394,761 | $425,882 | $321,104 | $242,475 | $157,566 | $145,611 | $100,414 | $93,560 | $1,375,862 | $1,384,222 | $497,151 |
Gain (Loss) on Sales of Loans, Net | 115,151 | 153,254 | 186,817 | 141,984 | 25,659 | 205,956 | 282,561 | 188,587 | 175,048 | 139,259 | 102,345 | 70,512 | 597,206 | 702,763 | 487,164 |
Total revenues | 449,364 | 504,324 | 549,733 | 469,647 | 420,420 | 631,838 | 603,665 | 431,062 | 332,614 | 284,870 | 202,759 | 164,072 | 1,973,068 | 2,086,985 | 984,315 |
Expenses and impairments: | |||||||||||||||
Salaries, wages and benefits | 642,936 | 679,637 | 358,455 | ||||||||||||
General and administrative | 682,502 | 691,796 | 206,804 | ||||||||||||
Occupancy | 32,253 | 30,845 | 16,786 | ||||||||||||
Total expenses and impairments | 362,623 | 327,224 | 346,711 | 321,133 | 398,002 | 395,854 | 339,851 | 268,571 | 200,268 | 154,828 | 130,372 | 96,577 | 1,357,691 | 1,402,278 | 582,045 |
Other income (expense): | |||||||||||||||
Interest income | 179,592 | 197,220 | 71,586 | ||||||||||||
Interest expense | -516,387 | -538,805 | -197,308 | ||||||||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 4,898 | 0 | 0 | ||||||||||||
Gain (Loss) on Sale of Properties | 4,898 | ||||||||||||||
Intercompany Gains (Losses) | 0 | 0 | 0 | ||||||||||||
Gain (Loss) on Contract Termination | 0 | 0 | 15,600 | ||||||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | 0 | -14,571 | ||||||||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | 2,404 | 3,132 | -994 | ||||||||||||
Total other income (expense) | -54,702 | -67,521 | -97,434 | -109,836 | -108,358 | -103,912 | -64,685 | -61,498 | -37,930 | -50,261 | -23,332 | -14,164 | -329,493 | -338,453 | -125,687 |
Income before taxes | 32,039 | 109,579 | 105,588 | 38,678 | -85,940 | 132,072 | 199,129 | 100,993 | 94,416 | 79,781 | 49,055 | 53,331 | 285,884 | 346,254 | 276,583 |
Income Tax Expense (Benefit) | 12,618 | -1,700 | 38,941 | 15,001 | -35,033 | 50,187 | 75,669 | 38,377 | 30,657 | 24,714 | 12,780 | 3,145 | 64,860 | 129,200 | 71,296 |
Net income | 221,024 | 217,054 | 205,287 | ||||||||||||
Less: Net gain (loss) attributable to noncontrolling interests | 306 | 0 | 0 | ||||||||||||
Net income attributable to Nationstar | 19,421 | 111,279 | 66,647 | 23,677 | -50,907 | 81,885 | 123,460 | 62,616 | 63,759 | 55,067 | 36,275 | 50,186 | 220,718 | 217,054 | 205,287 |
Parent Company | |||||||||||||||
Condensed Financial Statements | |||||||||||||||
Fees and Commissions, Mortgage Banking and Servicing | 0 | 0 | 0 | ||||||||||||
Gain (Loss) on Sales of Loans, Net | 0 | 0 | 0 | ||||||||||||
Total revenues | 0 | 0 | 0 | ||||||||||||
Expenses and impairments: | |||||||||||||||
Salaries, wages and benefits | 0 | 0 | 0 | ||||||||||||
General and administrative | 0 | 0 | 0 | ||||||||||||
Occupancy | 0 | 0 | 0 | ||||||||||||
Total expenses and impairments | 0 | 0 | 0 | ||||||||||||
Other income (expense): | |||||||||||||||
Interest income | 0 | 0 | 0 | ||||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 0 | ||||||||||||||
Intercompany Gains (Losses) | 220,718 | 217,054 | 179,359 | ||||||||||||
Gain (Loss) on Contract Termination | 0 | ||||||||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | ||||||||||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | 0 | 0 | 0 | ||||||||||||
Total other income (expense) | 220,718 | 217,054 | 179,359 | ||||||||||||
Income before taxes | 220,718 | 217,054 | 179,359 | ||||||||||||
Income Tax Expense (Benefit) | 0 | 0 | -25,928 | ||||||||||||
Net income | 220,718 | ||||||||||||||
Less: Net gain (loss) attributable to noncontrolling interests | 0 | ||||||||||||||
Net income attributable to Nationstar | 220,718 | 217,054 | 205,287 | ||||||||||||
Issuer | |||||||||||||||
Condensed Financial Statements | |||||||||||||||
Fees and Commissions, Mortgage Banking and Servicing | 1,030,214 | 1,211,717 | 462,585 | ||||||||||||
Gain (Loss) on Sales of Loans, Net | 583,790 | 645,509 | 487,164 | ||||||||||||
Total revenues | 1,614,004 | 1,857,226 | 949,749 | ||||||||||||
Expenses and impairments: | |||||||||||||||
Salaries, wages and benefits | 556,047 | 637,794 | 349,012 | ||||||||||||
General and administrative | 559,150 | 612,307 | 197,914 | ||||||||||||
Occupancy | 28,177 | 29,121 | 16,734 | ||||||||||||
Total expenses and impairments | 1,143,374 | 1,279,222 | 563,660 | ||||||||||||
Other income (expense): | |||||||||||||||
Interest income | 158,508 | 179,445 | 51,307 | ||||||||||||
Interest expense | -460,781 | -420,214 | -137,638 | ||||||||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 4,898 | ||||||||||||||
Intercompany Gains (Losses) | 111,897 | 8,007 | -22,789 | ||||||||||||
Gain (Loss) on Contract Termination | 15,600 | ||||||||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | -14,571 | ||||||||||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | 732 | 1,012 | -1,415 | ||||||||||||
Total other income (expense) | -184,746 | -231,750 | -109,506 | ||||||||||||
Income before taxes | 285,884 | 346,254 | 276,583 | ||||||||||||
Income Tax Expense (Benefit) | 64,860 | 129,200 | 97,224 | ||||||||||||
Net income | 221,024 | ||||||||||||||
Less: Net gain (loss) attributable to noncontrolling interests | 306 | ||||||||||||||
Net income attributable to Nationstar | 220,718 | 217,054 | 179,359 | ||||||||||||
Guarantor (Subsidiaries) | |||||||||||||||
Condensed Financial Statements | |||||||||||||||
Fees and Commissions, Mortgage Banking and Servicing | 47,588 | 129,689 | 35,891 | ||||||||||||
Gain (Loss) on Sales of Loans, Net | 0 | 0 | 0 | ||||||||||||
Total revenues | 47,588 | 129,689 | 35,891 | ||||||||||||
Expenses and impairments: | |||||||||||||||
Salaries, wages and benefits | 4,404 | 12,534 | 9,443 | ||||||||||||
General and administrative | 1,586 | 3,630 | 2,625 | ||||||||||||
Occupancy | 286 | 431 | 52 | ||||||||||||
Total expenses and impairments | 6,276 | 16,595 | 12,120 | ||||||||||||
Other income (expense): | |||||||||||||||
Interest income | 0 | 0 | 0 | ||||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 0 | ||||||||||||||
Intercompany Gains (Losses) | 0 | 0 | 0 | ||||||||||||
Gain (Loss) on Contract Termination | 0 | ||||||||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | ||||||||||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | 0 | 0 | 0 | ||||||||||||
Total other income (expense) | 0 | 0 | 0 | ||||||||||||
Income before taxes | 41,312 | 113,094 | 23,771 | ||||||||||||
Income Tax Expense (Benefit) | 0 | 0 | 0 | ||||||||||||
Net income | 41,312 | ||||||||||||||
Less: Net gain (loss) attributable to noncontrolling interests | 0 | ||||||||||||||
Net income attributable to Nationstar | 41,312 | 113,094 | 23,771 | ||||||||||||
Non-Guarantor (Subsidiaries) | |||||||||||||||
Condensed Financial Statements | |||||||||||||||
Fees and Commissions, Mortgage Banking and Servicing | 297,869 | 101,704 | 468 | ||||||||||||
Gain (Loss) on Sales of Loans, Net | 13,416 | 0 | 0 | ||||||||||||
Total revenues | 311,285 | 101,704 | 468 | ||||||||||||
Expenses and impairments: | |||||||||||||||
Salaries, wages and benefits | 82,485 | 29,309 | 0 | ||||||||||||
General and administrative | 121,766 | 75,859 | 6,265 | ||||||||||||
Occupancy | 3,790 | 1,293 | 0 | ||||||||||||
Total expenses and impairments | 208,041 | 106,461 | 6,265 | ||||||||||||
Other income (expense): | |||||||||||||||
Interest income | 21,275 | 16,141 | 18,486 | ||||||||||||
Interest expense | -55,606 | -118,591 | -59,670 | ||||||||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 0 | ||||||||||||||
Intercompany Gains (Losses) | 0 | 0 | 0 | ||||||||||||
Gain (Loss) on Contract Termination | 0 | ||||||||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | ||||||||||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | 1,672 | 2,120 | 421 | ||||||||||||
Total other income (expense) | -32,659 | -100,330 | -40,763 | ||||||||||||
Income before taxes | 70,585 | -105,087 | -46,560 | ||||||||||||
Income Tax Expense (Benefit) | 0 | 0 | 0 | ||||||||||||
Net income | 70,585 | ||||||||||||||
Less: Net gain (loss) attributable to noncontrolling interests | 0 | ||||||||||||||
Net income attributable to Nationstar | 70,585 | -105,087 | -46,560 | ||||||||||||
Eliminations | |||||||||||||||
Condensed Financial Statements | |||||||||||||||
Fees and Commissions, Mortgage Banking and Servicing | 191 | -58,888 | -1,793 | ||||||||||||
Gain (Loss) on Sales of Loans, Net | 0 | 57,254 | 0 | ||||||||||||
Total revenues | 191 | -1,634 | -1,793 | ||||||||||||
Expenses and impairments: | |||||||||||||||
Salaries, wages and benefits | 0 | 0 | 0 | ||||||||||||
General and administrative | 0 | 0 | 0 | ||||||||||||
Occupancy | 0 | 0 | 0 | ||||||||||||
Total expenses and impairments | 0 | 0 | 0 | ||||||||||||
Other income (expense): | |||||||||||||||
Interest income | -191 | 1,634 | 1,793 | ||||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 0 | ||||||||||||||
Intercompany Gains (Losses) | -332,615 | -225,061 | -156,570 | ||||||||||||
Gain (Loss) on Contract Termination | 0 | ||||||||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | ||||||||||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | 0 | 0 | 0 | ||||||||||||
Total other income (expense) | -332,806 | -223,427 | -154,777 | ||||||||||||
Income before taxes | -332,615 | -225,061 | -156,570 | ||||||||||||
Income Tax Expense (Benefit) | 0 | 0 | 0 | ||||||||||||
Net income | -332,615 | ||||||||||||||
Less: Net gain (loss) attributable to noncontrolling interests | 0 | ||||||||||||||
Net income attributable to Nationstar | ($332,615) | ($225,061) | ($156,570) |
Guarantor_Financial_Statement_5
Guarantor Financial Statement Information - Consolidating Statements of Cash Flow (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating activities | |||
Net income attributable to Nationstar | $220,718,000 | $217,054,000 | $205,287,000 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||
Intercompany Gains (Losses) | 0 | 0 | 0 |
Share-based Compensation | 18,565,000 | 10,574,000 | 13,342,000 |
Net tax effect of stock grants | -2,243,000 | -4,579,000 | -2,846,000 |
Loss on foreclosed real estate and other | 10,288,000 | 13,316,000 | 5,217,000 |
Gain on mortgage loans held for sale | -597,206,000 | -702,763,000 | -487,164,000 |
Payments for Origination and Purchases of Loans Held-for-sale | -20,785,640,000 | -25,466,754,000 | -7,904,052,000 |
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees | 22,290,252,000 | 25,018,375,000 | 7,197,722,000 |
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps | -2,404,000 | -6,080,000 | 994,000 |
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | 0 | -14,571,000 |
Cash settlement on derivative financial instruments | 1,352,000 | -4,544,000 | 0 |
Depreciation and amortization | 40,166,000 | 26,615,000 | 9,620,000 |
Accretion (Amortization) of Discounts and Premiums, Investments | 13,330,000 | 52,531,000 | 9,635,000 |
Fair value changes in excess spread financing | 57,554,000 | 73,333,000 | 10,683,000 |
Change in fair value on mortgage servicing rights | 233,537,000 | -59,101,000 | 63,122,000 |
Fair value change in mortgage servicing rights financing liability | -33,279,000 | 0 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | 322,519,000 | -465,775,000 | -558,208,000 |
Reverse funded advances due to securitization | -952,191,000 | -734,220,000 | -636,533,000 |
Other assets | 243,300,000 | -449,243,000 | -198,807,000 |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | -19,983,000 | 647,320,000 | 299,301,000 |
Net cash attributable to operating activities | 1,058,635,000 | -1,833,941,000 | -1,958,116,000 |
Investing activities | |||
Payments for (Proceeds from) Productive Assets | -56,405,000 | -48,859,000 | -25,356,000 |
Proceeds from Sale of Buildings | 10,412,000 | 0 | 0 |
Cash Proceeds from assumption of reverse mortgage servicing obligations, net | 0 | -19,189,000 | -37,911,000 |
Payments to Acquire Mortgage Servicing Rights (MSR) | -471,249,000 | -1,527,645,000 | -2,070,375,000 |
Proceeds on sale of servicer advances | 768,449,000 | 277,455,000 | 0 |
Repurchases of REO from Ginnie Mae | -44,079,000 | -19,863,000 | -24,329,000 |
Acquisitions, net | -18,000,000 | -88,200,000 | 0 |
Proceeds from Sale of Real Estate Owned | 65,653,000 | 52,767,000 | 679,000 |
Net cash attributable to investing activities | 254,781,000 | -1,373,534,000 | -2,157,292,000 |
Financing activities | |||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 290,803,000 | -232,695,000 | -321,691,000 |
Issuance of Senior Unsecured Notes | 0 | 1,365,244,000 | 770,699,000 |
Repayments of Unsecured Debt | -285,000,000 | 0 | 0 |
Payments of Financing Costs | -13,067,000 | -53,529,000 | -23,213,000 |
Proceeds from (Repayments of) Secured Debt | -1,875,158,000 | 1,240,750,000 | 2,728,407,000 |
Proceeds from Other Debt | 61,680,000 | 0 | 0 |
Repayments of Other Debt | -9,750,000 | 0 | 0 |
Issuance of excess spread financing | 171,317,000 | 753,002,000 | 272,617,000 |
Repayment of excess spread financing | -184,246,000 | -130,355,000 | -39,865,000 |
Proceeds from Mortgage Backed Securities Notes Payable | 352,945,000 | 535,216,000 | 582,897,000 |
Proceeds from mortgage servicing rights financing | 52,835,000 | 29,874,000 | 0 |
Repayment of Nonrecourse Debt Legacy Assets | -15,429,000 | -13,404,000 | -13,785,000 |
Contributions from joint venture member to noncontrolling interests | 0 | 4,990,000 | 0 |
Net tax benefit for stock grants issued | 2,243,000 | 4,579,000 | 2,846,000 |
Redemption of shares for stock vesting | -5,489,000 | -6,944,000 | 0 |
Proceeds from Issuance of Common Stock | 0 | 0 | 246,700,000 |
Payments of Distributions to Parent | 0 | ||
Proceeds from Contributions from Parent | 0 | ||
Net cash attributable to financing activities | -1,456,316,000 | 3,496,728,000 | 4,205,612,000 |
Net increase (decrease) in cash and cash equivalents | -142,900,000 | 289,253,000 | 90,204,000 |
Cash and cash equivalents at beginning of period | 441,902,000 | 152,649,000 | 62,445,000 |
Cash and cash equivalents at end of period | 299,002,000 | 441,902,000 | 152,649,000 |
Parent Company | |||
Operating activities | |||
Net income attributable to Nationstar | 220,718,000 | 217,054,000 | 205,287,000 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||
Intercompany Gains (Losses) | -220,718,000 | -217,054,000 | -179,359,000 |
Share-based Compensation | 0 | 0 | 0 |
Net tax effect of stock grants | 0 | 0 | 0 |
Loss on foreclosed real estate and other | 0 | 0 | 0 |
Gain on mortgage loans held for sale | 0 | 0 | 0 |
Payments for Origination and Purchases of Loans Held-for-sale | 0 | 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 | 0 |
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps | 0 | 0 | 0 |
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | ||
Cash settlement on derivative financial instruments | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 |
Accretion (Amortization) of Discounts and Premiums, Investments | 0 | 0 | 0 |
Fair value changes in excess spread financing | 0 | 0 | 0 |
Change in fair value on mortgage servicing rights | 0 | 0 | 0 |
Fair value change in mortgage servicing rights financing liability | 0 | ||
Changes in assets and liabilities: | |||
Accounts receivable | 0 | 0 | 0 |
Reverse funded advances due to securitization | 0 | 0 | 0 |
Other assets | 5,489,000 | 2,365,000 | -28,774,000 |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | 0 | 0 | 2,846,000 |
Net cash attributable to operating activities | 5,489,000 | 2,365,000 | 0 |
Investing activities | |||
Payments for (Proceeds from) Productive Assets | 0 | 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 | 0 |
Proceeds on sale of servicer advances | 0 | 0 | |
Repurchases of REO from Ginnie Mae | 0 | 0 | 0 |
Acquisitions, net | 0 | 0 | |
Proceeds from Sale of Real Estate Owned | 0 | 0 | 0 |
Net cash attributable to investing activities | 0 | 0 | 0 |
Financing activities | |||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | 0 | 0 |
Issuance of Senior Unsecured Notes | 0 | 0 | |
Repayments of Unsecured Debt | 0 | ||
Payments of Financing Costs | 0 | 0 | 0 |
Proceeds from (Repayments of) Secured Debt | 0 | 0 | 0 |
Proceeds from Other Debt | 0 | ||
Repayments of Other Debt | 0 | ||
Issuance of excess spread financing | 0 | 0 | 0 |
Repayment of excess spread financing | 0 | 0 | 0 |
Proceeds from Mortgage Backed Securities Notes Payable | 0 | 0 | 0 |
Proceeds from mortgage servicing rights financing | 0 | 0 | |
Repayment of Nonrecourse Debt Legacy Assets | 0 | 0 | 0 |
Contributions from joint venture member to noncontrolling interests | 0 | ||
Net tax benefit for stock grants issued | 0 | 4,579,000 | 0 |
Redemption of shares for stock vesting | -5,489,000 | -6,944,000 | |
Proceeds from Issuance of Common Stock | 246,700,000 | ||
Payments of Distributions to Parent | -246,700,000 | ||
Proceeds from Contributions from Parent | 0 | ||
Net cash attributable to financing activities | -5,489,000 | -2,365,000 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | 0 |
Issuer | |||
Operating activities | |||
Net income attributable to Nationstar | 220,718,000 | 217,054,000 | 179,359,000 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||
Intercompany Gains (Losses) | -111,897,000 | -8,007,000 | 22,789,000 |
Share-based Compensation | 18,565,000 | 10,574,000 | 13,342,000 |
Net tax effect of stock grants | -2,243,000 | -4,579,000 | -2,846,000 |
Loss on foreclosed real estate and other | 3,099,000 | 7,317,000 | -1,034,000 |
Gain on mortgage loans held for sale | -583,790,000 | -645,509,000 | -487,164,000 |
Payments for Origination and Purchases of Loans Held-for-sale | -20,785,640,000 | -25,466,754,000 | -7,904,052,000 |
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees | 22,295,866,000 | 24,947,796,000 | 7,185,335,000 |
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps | -732,000 | -3,415,000 | 1,415,000 |
Equity Method Investment, Realized Gain (Loss) on Disposal | -14,571,000 | ||
Cash settlement on derivative financial instruments | 0 | 0 | |
Depreciation and amortization | 36,381,000 | 25,479,000 | 9,620,000 |
Accretion (Amortization) of Discounts and Premiums, Investments | 15,520,000 | 56,348,000 | 13,003,000 |
Fair value changes in excess spread financing | 57,554,000 | 73,333,000 | 10,683,000 |
Change in fair value on mortgage servicing rights | 233,537,000 | -59,101,000 | 63,122,000 |
Fair value change in mortgage servicing rights financing liability | -33,279,000 | ||
Changes in assets and liabilities: | |||
Accounts receivable | 325,807,000 | -4,497,046,000 | -558,207,000 |
Reverse funded advances due to securitization | -576,083,000 | -734,220,000 | -636,533,000 |
Other assets | -1,898,643,000 | 4,902,381,000 | 1,622,707,000 |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | -71,071,000 | 650,287,000 | 308,636,000 |
Net cash attributable to operating activities | -856,331,000 | -528,062,000 | -145,254,000 |
Investing activities | |||
Payments for (Proceeds from) Productive Assets | -41,739,000 | -45,138,000 | -25,356,000 |
Proceeds from Sale of Buildings | 10,412,000 | ||
Cash Proceeds from assumption of reverse mortgage servicing obligations, net | -19,189,000 | -37,911,000 | |
Payments to Acquire Mortgage Servicing Rights (MSR) | -471,249,000 | -1,527,645,000 | -2,070,375,000 |
Proceeds on sale of servicer advances | 768,449,000 | 277,455,000 | |
Repurchases of REO from Ginnie Mae | -44,079,000 | -19,863,000 | -24,329,000 |
Acquisitions, net | -15,854,000 | -88,200,000 | |
Proceeds from Sale of Real Estate Owned | 65,653,000 | 52,767,000 | -884,000 |
Net cash attributable to investing activities | 271,593,000 | -1,369,813,000 | -2,158,855,000 |
Financing activities | |||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 118,617,000 | -199,600,000 | -96,477,000 |
Issuance of Senior Unsecured Notes | 1,365,244,000 | 770,699,000 | |
Repayments of Unsecured Debt | -285,000,000 | ||
Payments of Financing Costs | -13,067,000 | -53,529,000 | -23,213,000 |
Proceeds from (Repayments of) Secured Debt | 226,596,000 | -136,947,000 | 677,952,000 |
Proceeds from Other Debt | 0 | ||
Repayments of Other Debt | 0 | ||
Issuance of excess spread financing | 171,317,000 | 753,002,000 | 272,617,000 |
Repayment of excess spread financing | -184,246,000 | -130,355,000 | -39,865,000 |
Proceeds from Mortgage Backed Securities Notes Payable | 352,945,000 | 535,216,000 | 582,897,000 |
Proceeds from mortgage servicing rights financing | 52,835,000 | 29,874,000 | |
Repayment of Nonrecourse Debt Legacy Assets | 0 | 0 | 0 |
Contributions from joint venture member to noncontrolling interests | 4,990,000 | ||
Net tax benefit for stock grants issued | 2,243,000 | 0 | 2,846,000 |
Redemption of shares for stock vesting | 0 | 0 | |
Proceeds from Issuance of Common Stock | 0 | ||
Payments of Distributions to Parent | 0 | ||
Proceeds from Contributions from Parent | 246,700,000 | ||
Net cash attributable to financing activities | 442,240,000 | 2,167,895,000 | 2,394,156,000 |
Net increase (decrease) in cash and cash equivalents | -142,498,000 | 270,020,000 | 90,047,000 |
Cash and cash equivalents at beginning of period | 422,268,000 | 152,248,000 | 62,201,000 |
Cash and cash equivalents at end of period | 279,770,000 | 422,268,000 | 152,248,000 |
Guarantor (Subsidiaries) | |||
Operating activities | |||
Net income attributable to Nationstar | 41,312,000 | 113,094,000 | 23,771,000 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||
Intercompany Gains (Losses) | 0 | 0 | 0 |
Share-based Compensation | 0 | 0 | 0 |
Net tax effect of stock grants | 0 | 0 | 0 |
Loss on foreclosed real estate and other | 0 | 0 | 0 |
Gain on mortgage loans held for sale | 0 | 0 | 0 |
Payments for Origination and Purchases of Loans Held-for-sale | 0 | 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 | 0 |
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps | 0 | 0 | 0 |
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | ||
Cash settlement on derivative financial instruments | 0 | 0 | |
Depreciation and amortization | 88,000 | 979,000 | 0 |
Accretion (Amortization) of Discounts and Premiums, Investments | 0 | 0 | 0 |
Fair value changes in excess spread financing | 0 | 0 | 0 |
Change in fair value on mortgage servicing rights | 0 | 0 | 0 |
Fair value change in mortgage servicing rights financing liability | 0 | ||
Changes in assets and liabilities: | |||
Accounts receivable | 0 | 0 | 0 |
Reverse funded advances due to securitization | 0 | 0 | 0 |
Other assets | -39,029,000 | -113,703,000 | -25,429,000 |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | -5,925,000 | 4,135,000 | 1,815,000 |
Net cash attributable to operating activities | -3,554,000 | 4,505,000 | 157,000 |
Investing activities | |||
Payments for (Proceeds from) Productive Assets | -68,000 | -999,000 | 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 | 0 |
Proceeds on sale of servicer advances | 0 | 0 | |
Repurchases of REO from Ginnie Mae | 0 | 0 | 0 |
Acquisitions, net | 0 | 0 | |
Proceeds from Sale of Real Estate Owned | 0 | 0 | 0 |
Net cash attributable to investing activities | -68,000 | -999,000 | 0 |
Financing activities | |||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 3,000 | 0 | 0 |
Issuance of Senior Unsecured Notes | 0 | 0 | |
Repayments of Unsecured Debt | 0 | ||
Payments of Financing Costs | 0 | 0 | 0 |
Proceeds from (Repayments of) Secured Debt | 0 | 0 | 0 |
Proceeds from Other Debt | 0 | ||
Repayments of Other Debt | 0 | ||
Issuance of excess spread financing | 0 | 0 | 0 |
Repayment of excess spread financing | 0 | 0 | 0 |
Proceeds from Mortgage Backed Securities Notes Payable | 0 | 0 | 0 |
Proceeds from mortgage servicing rights financing | 0 | 0 | |
Repayment of Nonrecourse Debt Legacy Assets | 0 | 0 | 0 |
Contributions from joint venture member to noncontrolling interests | 0 | ||
Net tax benefit for stock grants issued | 0 | 0 | 0 |
Redemption of shares for stock vesting | 0 | 0 | |
Proceeds from Issuance of Common Stock | 0 | ||
Payments of Distributions to Parent | 0 | ||
Proceeds from Contributions from Parent | 0 | ||
Net cash attributable to financing activities | 3,000 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | -3,619,000 | 3,506,000 | 157,000 |
Cash and cash equivalents at beginning of period | 3,907,000 | 401,000 | 244,000 |
Cash and cash equivalents at end of period | 288,000 | 3,907,000 | 401,000 |
Non-Guarantor (Subsidiaries) | |||
Operating activities | |||
Net income attributable to Nationstar | 70,585,000 | -105,087,000 | -46,560,000 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||
Intercompany Gains (Losses) | 0 | 0 | 0 |
Share-based Compensation | 0 | 0 | 0 |
Net tax effect of stock grants | 0 | 0 | 0 |
Loss on foreclosed real estate and other | 7,189,000 | 5,999,000 | 6,251,000 |
Gain on mortgage loans held for sale | -13,416,000 | 0 | 0 |
Payments for Origination and Purchases of Loans Held-for-sale | 0 | 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 | -5,614,000 | 13,325,000 | 12,387,000 |
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps | -1,672,000 | -2,665,000 | -421,000 |
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | ||
Cash settlement on derivative financial instruments | 1,352,000 | -4,544,000 | |
Depreciation and amortization | 3,697,000 | 157,000 | 0 |
Accretion (Amortization) of Discounts and Premiums, Investments | -2,190,000 | -3,817,000 | -3,368,000 |
Fair value changes in excess spread financing | 0 | 0 | 0 |
Change in fair value on mortgage servicing rights | 0 | 0 | 0 |
Fair value change in mortgage servicing rights financing liability | 0 | ||
Changes in assets and liabilities: | |||
Accounts receivable | -3,288,000 | 4,031,271,000 | -1,000 |
Reverse funded advances due to securitization | -376,108,000 | 0 | 0 |
Other assets | 2,206,946,000 | -5,257,613,000 | -1,781,447,000 |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | 25,550,000 | 10,225,000 | 140,000 |
Net cash attributable to operating activities | 1,913,031,000 | -1,312,749,000 | -1,813,019,000 |
Investing activities | |||
Payments for (Proceeds from) Productive Assets | -14,598,000 | -2,722,000 | 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 | 0 |
Proceeds on sale of servicer advances | 0 | 0 | |
Repurchases of REO from Ginnie Mae | 0 | 0 | 0 |
Acquisitions, net | -2,146,000 | 0 | |
Proceeds from Sale of Real Estate Owned | 0 | 0 | 1,563,000 |
Net cash attributable to investing activities | -16,744,000 | -2,722,000 | 1,563,000 |
Financing activities | |||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 172,183,000 | -33,095,000 | -225,214,000 |
Issuance of Senior Unsecured Notes | 0 | 0 | |
Repayments of Unsecured Debt | 0 | ||
Payments of Financing Costs | 0 | 0 | 0 |
Proceeds from (Repayments of) Secured Debt | -2,101,754,000 | 1,377,697,000 | 2,050,455,000 |
Proceeds from Other Debt | 61,680,000 | ||
Repayments of Other Debt | -9,750,000 | ||
Issuance of excess spread financing | 0 | 0 | 0 |
Repayment of excess spread financing | 0 | 0 | 0 |
Proceeds from Mortgage Backed Securities Notes Payable | 0 | 0 | 0 |
Proceeds from mortgage servicing rights financing | 0 | 0 | |
Repayment of Nonrecourse Debt Legacy Assets | -15,429,000 | -13,404,000 | -13,785,000 |
Contributions from joint venture member to noncontrolling interests | 0 | ||
Net tax benefit for stock grants issued | 0 | 0 | 0 |
Redemption of shares for stock vesting | 0 | 0 | |
Proceeds from Issuance of Common Stock | 0 | ||
Payments of Distributions to Parent | 0 | ||
Proceeds from Contributions from Parent | 0 | ||
Net cash attributable to financing activities | -1,893,070,000 | 1,331,198,000 | 1,811,456,000 |
Net increase (decrease) in cash and cash equivalents | 3,217,000 | 15,727,000 | 0 |
Cash and cash equivalents at beginning of period | 15,727,000 | 0 | 0 |
Cash and cash equivalents at end of period | 18,944,000 | 15,727,000 | 0 |
Eliminations | |||
Operating activities | |||
Net income attributable to Nationstar | -332,615,000 | -225,061,000 | -156,570,000 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||
Intercompany Gains (Losses) | 332,615,000 | 225,061,000 | 156,570,000 |
Share-based Compensation | 0 | 0 | 0 |
Net tax effect of stock grants | 0 | ||
Loss on foreclosed real estate and other | 0 | 0 | 0 |
Gain on mortgage loans held for sale | 0 | -57,254,000 | 0 |
Payments for Origination and Purchases of Loans Held-for-sale | 0 | 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 | 57,254,000 | 0 |
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps | 0 | 0 | 0 |
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | ||
Cash settlement on derivative financial instruments | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 |
Accretion (Amortization) of Discounts and Premiums, Investments | 0 | 0 | 0 |
Fair value changes in excess spread financing | 0 | 0 | 0 |
Change in fair value on mortgage servicing rights | 0 | 0 | 0 |
Fair value change in mortgage servicing rights financing liability | 0 | ||
Changes in assets and liabilities: | |||
Accounts receivable | 0 | 0 | 0 |
Reverse funded advances due to securitization | 0 | 0 | 0 |
Other assets | -31,463,000 | 17,327,000 | 14,136,000 |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | 31,463,000 | -17,327,000 | -14,136,000 |
Net cash attributable to operating activities | 0 | 0 | 0 |
Investing activities | |||
Payments for (Proceeds from) Productive Assets | 0 | 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 | 0 |
Proceeds on sale of servicer advances | 0 | 0 | |
Repurchases of REO from Ginnie Mae | 0 | 0 | 0 |
Acquisitions, net | 0 | 0 | |
Proceeds from Sale of Real Estate Owned | 0 | 0 | 0 |
Net cash attributable to investing activities | 0 | 0 | 0 |
Financing activities | |||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | 0 | 0 |
Issuance of Senior Unsecured Notes | 0 | 0 | |
Repayments of Unsecured Debt | 0 | ||
Payments of Financing Costs | 0 | 0 | 0 |
Proceeds from (Repayments of) Secured Debt | 0 | 0 | 0 |
Proceeds from Other Debt | 0 | ||
Repayments of Other Debt | 0 | ||
Issuance of excess spread financing | 0 | 0 | |
Repayment of excess spread financing | 0 | 0 | 0 |
Proceeds from Mortgage Backed Securities Notes Payable | 0 | 0 | 0 |
Proceeds from mortgage servicing rights financing | 0 | 0 | |
Repayment of Nonrecourse Debt Legacy Assets | 0 | 0 | 0 |
Contributions from joint venture member to noncontrolling interests | 0 | ||
Net tax benefit for stock grants issued | 0 | 0 | 0 |
Redemption of shares for stock vesting | 0 | 0 | |
Proceeds from Issuance of Common Stock | 0 | ||
Payments of Distributions to Parent | 246,700,000 | ||
Proceeds from Contributions from Parent | -246,700,000 | ||
Net cash attributable to financing activities | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | $0 | $0 | $0 |
Disclosures_Related_to_Transac2
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC - Narrative (Details) (USD $) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 23, 2014 | Apr. 30, 2014 | Mar. 07, 2014 | Feb. 28, 2014 | Jan. 30, 2014 | Feb. 28, 2013 | Aug. 31, 2014 | Sep. 30, 2014 | |
Related Party Transaction [Line Items] | |||||||||||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | $2,000,000,000 | ||||||||||
Due from Affiliates | 4,713,000 | 8,861,000 | |||||||||
Payments to Acquire Mortgage Servicing Rights (MSR) | 471,249,000 | 1,527,645,000 | 2,070,375,000 | ||||||||
Excess spread financing - fair value | 1,031,035,000 | 986,410,000 | |||||||||
Servicer Advances sold to unaffiliated third party | 2,500,000,000 | 2,700,000,000 | 303,800,000 | 617,500,000 | 299,100,000 | 756,200,000 | 253,500,000 | ||||
UPB related to sold servicing asset | 44,300,000,000 | ||||||||||
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 | 49,430,000 | 29,874,000 | |||||||||
Purchase price paid reverse mortgage | 50,200,000 | ||||||||||
Percentage of aquired reverse loans, sold to co-investor | 70.00% | ||||||||||
Springleaf [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 4,800,000,000 | ||||||||||
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets | 5,300,000 | 8,100,000 | 9,800,000 | ||||||||
Due from Affiliates | 200,000 | 600,000 | |||||||||
Payments to Acquire Mortgage Servicing Rights (MSR) | 38,800,000 | ||||||||||
Newcastle | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 800,000,000 | 900,000,000 | 1,000,000,000 | ||||||||
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets | 4,100,000 | 4,600,000 | 5,200,000 | ||||||||
Servicing fee, percentage of unpaid principal balance | 0.50% | ||||||||||
Payment of Servicing Fees in Excess of Contractually Specified Amount | 24,400,000 | ||||||||||
New Residential [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets | 3,300,000 | ||||||||||
Reverse Mortgages | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 28,000,000,000 | 100,000,000 | 28,900,000,000 | ||||||||
Maximum [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Servicer Advances sold to unaffiliated third party | 6,300,000,000 | ||||||||||
UPB related to sold servicing asset | $130,100,000,000 |
Disclosures_Related_to_Transac3
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC - Related Party Transactions (Details) (USD $) | 1 Months Ended | |||||||||
Jun. 30, 2014 | Apr. 30, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Jan. 31, 2014 | Dec. 31, 2014 | Jun. 23, 2014 | Mar. 07, 2014 | Jan. 30, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ||||||||||
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 | |||||
Servicer Advances sold to unaffiliated third party | 617,500,000 | 756,200,000 | 2,500,000,000 | 303,800,000 | 299,100,000 | 253,500,000 | 2,700,000,000 | |||
Proceeds on sale of servicer advances | $51,000,000 | $75,200,000 | $41,500,000 | $91,400,000 | $253,500,000 |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Data [Abstract] | |||||||||||||||
Fees and Commissions, Mortgage Banking and Servicing | $334,213 | $351,070 | $362,916 | $327,663 | $394,761 | $425,882 | $321,104 | $242,475 | $157,566 | $145,611 | $100,414 | $93,560 | $1,375,862 | $1,384,222 | $497,151 |
Gain (Loss) on Sales of Loans, Net | 115,151 | 153,254 | 186,817 | 141,984 | 25,659 | 205,956 | 282,561 | 188,587 | 175,048 | 139,259 | 102,345 | 70,512 | 597,206 | 702,763 | 487,164 |
Revenues | 449,364 | 504,324 | 549,733 | 469,647 | 420,420 | 631,838 | 603,665 | 431,062 | 332,614 | 284,870 | 202,759 | 164,072 | 1,973,068 | 2,086,985 | 984,315 |
Total expenses and impairments | 362,623 | 327,224 | 346,711 | 321,133 | 398,002 | 395,854 | 339,851 | 268,571 | 200,268 | 154,828 | 130,372 | 96,577 | 1,357,691 | 1,402,278 | 582,045 |
Nonoperating Income (Expense) | -54,702 | -67,521 | -97,434 | -109,836 | -108,358 | -103,912 | -64,685 | -61,498 | -37,930 | -50,261 | -23,332 | -14,164 | -329,493 | -338,453 | -125,687 |
Income before taxes | 32,039 | 109,579 | 105,588 | 38,678 | -85,940 | 132,072 | 199,129 | 100,993 | 94,416 | 79,781 | 49,055 | 53,331 | 285,884 | 346,254 | 276,583 |
Income Tax Expense (Benefit) | 12,618 | -1,700 | 38,941 | 15,001 | -35,033 | 50,187 | 75,669 | 38,377 | 30,657 | 24,714 | 12,780 | 3,145 | 64,860 | 129,200 | 71,296 |
Net income attributable to Nationstar | $19,421 | $111,279 | $66,647 | $23,677 | ($50,907) | $81,885 | $123,460 | $62,616 | $63,759 | $55,067 | $36,275 | $50,186 | $220,718 | $217,054 | $205,287 |
Earnings Per Share, Basic | $0.22 | $1.23 | $0.74 | $0.27 | ($0.57) | $0.92 | $1.38 | $0.70 | $0.72 | $0.62 | $0.41 | $0.67 | $2.47 | $2.43 | $2.41 |
Earnings Per Share, Diluted | $0.21 | $1.22 | $0.74 | $0.27 | ($0.56) | $0.91 | $1.37 | $0.70 | $0.71 | $0.61 | $0.41 | $0.67 | $2.45 | $2.40 | $2.40 |
Subsequent_Events_Narrative_De
Subsequent Events - Narrative (Details) (USD $) | 3 Months Ended | |||||||
Mar. 31, 2015 | 2-May-14 | Feb. 28, 2013 | Dec. 31, 2014 | Jan. 31, 2015 | Jan. 30, 2015 | Feb. 17, 2015 | Jan. 01, 2015 | |
Subsequent Event [Line Items] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | $18,000,000 | $12,500,000 | ||||||
Servicing Segment | MBS Advance Financing Facility [Member] | Notes Payable, Other | ||||||||
Subsequent Event [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 475,000,000 | |||||||
Servicing Segment | MBS Advance Financing Facility [Member] | Notes Payable, Other | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 130,000,000 | 130,000,000 | ||||||
Servicing Segment | Agency Advance Financing Facility (2011) [Member] | Notes Payable to Banks | ||||||||
Subsequent Event [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,100,000,000 | |||||||
Servicing Segment | Agency Advance Financing Facility (2011) [Member] | Notes Payable to Banks | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,500,000,000 | 1,200,000,000 | ||||||
Originations Segment | Warehouse Facility $500 Million [Member] | Notes Payable, Other | ||||||||
Subsequent Event [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 500,000,000 | |||||||
Originations Segment | Warehouse Facility $200 Million [Member] | Notes Payable to Banks | ||||||||
Subsequent Event [Line Items] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000,000 | |||||||
Secured Debt [Member] | Servicing Segment | Agency Advance Financing Facility (2011) [Member] | Notes Payable to Banks | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt Instrument, Face Amount | $300,000,000 | |||||||
Solutionstar Segment [Member] | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | P10Y |