Document and Entity Information
Document and Entity Information - Jun. 30, 2015 - shares | Total |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Nationstar Mortgage Holdings Inc. |
Entity Central Index Key | 1,520,566 |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2015 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 109,734,001 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 562,939 | $ 299,002 |
Restricted cash | 387,914 | 285,530 |
Mortgage servicing rights, $3,350,298 and $2,949,739 at fair value, respectively | 3,360,322 | 2,961,321 |
Advances | 2,348,114 | 2,546,362 |
Reverse mortgage interests | 7,424,565 | 2,453,069 |
Mortgage loans held for sale | 1,906,010 | 1,277,931 |
Mortgage loans held for investment, net of allowance for loan losses of $3,549 and $3,531, respectively | 182,330 | 191,569 |
Property and equipment, net of accumulated depreciation of $87,468 and $69,721, respectively | 134,155 | 129,611 |
Derivative financial instruments | 108,265 | 91,051 |
Other assets | 906,889 | 877,229 |
Total assets | 17,321,503 | 11,112,675 |
Liabilities and equity | ||
Unsecured senior notes | 2,158,392 | 2,159,231 |
Advance facilities | 1,826,452 | 1,901,783 |
Warehouse facilities | 2,152,915 | 1,572,622 |
Payables and accrued liabilities | 1,390,207 | 1,322,078 |
MSR related liabilities - nonrecourse | 1,287,140 | 1,080,465 |
Mortgage servicing liabilities | 47,775 | 65,382 |
Derivative financial instruments | 7,859 | 18,525 |
Other nonrecourse debt | (6,693,772) | (1,768,311) |
Total liabilities | 15,564,512 | 9,888,397 |
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, 108,881 shares and 90,999 shares issued, respectively | 1,084 | 910 |
Additional paid-in-capital | 1,097,441 | 587,446 |
Retained earnings | 669,303 | 643,059 |
Treasury shares; 858 shares and 602 shares at cost, respectively | (18,637) | (12,433) |
Total Nationstar stockholders' equity | 1,749,191 | 1,218,982 |
Noncontrolling interest | 7,800 | 5,296 |
Total equity | 1,756,991 | 1,224,278 |
Total liabilities and equity | $ 17,321,503 | $ 11,112,675 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses of mortgage loans held for investment, subject to nonrecourse debt | $ 3,549 | $ 3,531 |
Mortgage servicing rights at fair value | (3,350,298) | (2,949,739) |
Accumulated depreciation of property and equipment | $ 87,468 | $ 69,721 |
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 | 108,881,000 | 90,999,000 |
Treasury Shares | 858,000 | 602,000 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues: | ||||
Service related | $ 457,723 | $ 376,817 | $ 672,846 | $ 718,528 |
Net gain on mortgage loans held for sale | 163,886 | 172,916 | 330,880 | 300,852 |
Total revenues | 621,609 | 549,733 | 1,003,726 | 1,019,380 |
Expenses: | ||||
Salaries, wages and benefits | (198,356) | (154,052) | (377,112) | (310,647) |
General and administrative | 242,629 | 192,659 | 447,716 | 357,197 |
Total expenses | 440,985 | 346,711 | 824,828 | 667,844 |
Other income (expense): | ||||
Interest income | 87,155 | 42,941 | 130,929 | 86,884 |
Interest expense | (147,863) | (139,422) | (263,511) | (296,022) |
Gain (loss) on interest rate swaps and caps | 95 | (953) | (672) | 1,868 |
Total other income (expense) | (60,613) | (97,434) | (133,254) | (207,270) |
Income before taxes | 120,011 | 105,588 | 45,644 | 144,266 |
Income tax expense | 44,171 | 38,941 | 16,646 | 53,942 |
Net income | 75,840 | 66,647 | 28,998 | 90,324 |
Less: Net gain (loss) attributable to noncontrolling interests | 1,281 | 192 | 2,754 | (167) |
Net income attributable to Nationstar | 74,559 | 66,455 | 26,244 | 90,491 |
Other comprehensive income, net of tax: | ||||
Change in value of designated cash flow hedge, net of tax of $0 and ($1,183), respectively | 0 | 0 | 0 | (1,963) |
Comprehensive income | $ 74,559 | $ 66,455 | $ 26,244 | $ 88,528 |
Earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 0.69 | $ 0.74 | $ 0.27 | $ 1.01 |
Diluted earnings per share (in dollars per share) | $ 0.69 | $ 0.74 | $ 0.26 | $ 1.01 |
Weighted average shares: | ||||
Basic (shares) | 107,521 | 89,465 | 98,864 | 89,404 |
Dilutive effect of stock awards (shares) | 368 | 729 | 548 | 592 |
Diluted (shares) | 107,889 | 90,194 | 99,412 | 89,996 |
Dividends declared per share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Unaudited Consolidated Stateme5
Unaudited Consolidated Statements of Operations Unaudited Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Tax on cash flow hedges | $ 0 | $ 0 | $ 0 | $ (1,183) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury shares | Accumulated Other Comprehensive Income | Total Nationstar Stockholders' Equity | Non-controlling interests |
Beginning of Period, shares at Dec. 31, 2013 | 90,330 | |||||||
Beginning of Period at Dec. 31, 2013 | $ 989,898 | $ 906 | $ 566,642 | $ 422,341 | $ (6,944) | $ 1,963 | $ 984,908 | $ 4,990 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares (including forfeitures) issued under incentive plan (shares) | 1,271 | |||||||
Shares (including forfeitures) issued under incentive plan | $ 4 | (4) | ||||||
Change in value of designated cash flow hedge, net of tax of $0 and ($1,183), respectively | (1,963) | (1,963) | (1,963) | |||||
Share-based compensation | 18,565 | 18,565 | 18,565 | |||||
Excess tax benefit from share-based compensation | 2,243 | 2,243 | 2,243 | |||||
Shares acquired by Nationstar related to incentive compensation awards | (5,489) | (5,489) | (5,489) | |||||
Net income | 221,024 | 220,718 | 220,718 | 306 | ||||
Ending of Period at Dec. 31, 2014 | 1,224,278 | $ 910 | 587,446 | 643,059 | (12,433) | 0 | 1,218,982 | 5,296 |
Ending of Period, shares at Dec. 31, 2014 | 91,601 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares (including forfeitures) issued under incentive plan (shares) | 633 | |||||||
Shares (including forfeitures) issued under incentive plan | $ 0 | 0 | ||||||
Change in value of designated cash flow hedge, net of tax of $0 and ($1,183), respectively | 0 | |||||||
Share-based compensation | 11,313 | 11,313 | 11,313 | |||||
Excess tax benefit from share-based compensation | 1,095 | 1,095 | 1,095 | |||||
Shares acquired by Nationstar related to incentive compensation awards | (6,204) | (6,204) | (6,204) | |||||
Net income | 28,998 | 26,244 | 26,244 | 2,754 | ||||
Acquisition of non-controlling interest in subsidiaries | $ (250) | $ (1) | 1 | (250) | ||||
Issuance of common stock, net (shares) | 17,500 | 17,500 | ||||||
Issuance of common stock, net | $ 497,761 | $ 175 | 497,586 | 497,761 | ||||
Ending of Period at Jun. 30, 2015 | 1,756,991 | $ 1,084 | $ 1,097,441 | $ 669,303 | $ (18,637) | $ 0 | $ 1,749,191 | $ 7,800 |
Ending of Period, shares at Jun. 30, 2015 | 109,734 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Tax on cash flow hedges | $ 0 |
Unaudited Consolidated Stateme7
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities | ||
Net income (loss) attributable to Nationstar | $ 26,244 | $ 90,491 |
Adjustments to reconcile net income to net cash (used in) / provided by operating activities: | ||
Share-based compensation | 11,313 | 6,868 |
Excess tax benefit from share-based compensation | (1,095) | (2,189) |
Net gain on mortgage loans held for sale | (330,880) | (300,852) |
Mortgage loans originated and purchased, net of fees | (9,883,868) | (11,470,908) |
Proceeds on sale of and payments of mortgage loans held for sale and held for investment | (9,429,885) | (12,089,338) |
Gain (loss) on interest rate swaps and caps | 672 | (1,868) |
Cash settlement on derivative financial instruments | 0 | 1,352 |
Depreciation and amortization | 26,627 | 20,401 |
Amortization (accretion) of premiums/discounts | (5,190) | 13,037 |
Fair value changes in excess spread financing | 38,951 | 23,767 |
Fair value changes and amortization/accretion of mortgage servicing rights | (183,042) | (123,573) |
Fair value change in mortgage servicing rights financing liability | 9,640 | (49,257) |
Changes in assets and liabilities: | ||
Advances | 217,638 | 769,754 |
Reverse mortgage interests | (124,449) | (413,478) |
Other assets | 65,637 | 223,116 |
Payables and accrued liabilities | 38,697 | (260,566) |
Net cash attributable to operating activities | (297,136) | 862,579 |
Investing activities | ||
Property and equipment additions, net of disposals | (27,051) | (23,678) |
Purchase of forward mortgage servicing rights, net of liabilities incurred | (500,041) | (187,803) |
Purchase of reverse mortgage interests, net of participations sold | (4,815,684) | 0 |
Proceeds on sale of servicer advances | 0 | 512,527 |
Acquisitions, net | (45,276) | (18,000) |
Net cash attributable to investing activities | (5,388,052) | 283,046 |
Financing activities | ||
Transfers (to) / from restricted cash, net | 102,384 | (241,423) |
Issuance of common stock, net of issuance costs | 497,761 | 0 |
Debt financing costs | (10,639) | (9,153) |
Increase (decrease) in warehouse facilities | 580,293 | (1,380,793) |
Increase (decrease) in advance facilities | (75,331) | (76,148) |
Proceeds from HECM securitizations | 342,403 | 0 |
Repayment of HECM securitizations | (63,013) | 0 |
Issuance of excess spread financing | 258,196 | 111,118 |
Repayment of excess spread financing | (100,228) | (85,257) |
Increase in participating interest financing in reverse mortgage interests | (4,633,093) | (192,355) |
Proceeds from mortgage servicing rights financing | 0 | 52,835 |
Repayment of nonrecourse debt – Legacy assets | (5,917) | (7,414) |
Excess tax benefit from share-based compensation | 1,095 | 2,189 |
Surrender of shares relating to stock vesting | (6,204) | (4,755) |
Net cash attributable to financing activities | 5,949,125 | (963,600) |
Net increase (decrease) in cash and cash equivalents | 263,937 | 182,025 |
Cash and cash equivalents at beginning of period | 299,002 | 441,902 |
Cash and cash equivalents at end of period | 562,939 | 623,927 |
Supplemental disclosures of non-cash activities | ||
Cash paid for interest expense | 262,954 | 256,655 |
Net cash (received)/paid for income taxes | 9,734 | (25,540) |
Supplemental disclosures of non-cash activities | 1,465 | 2,125 |
Mortgage servicing rights resulting from sale or securitization of mortgage loans | 105,506 | 120,212 |
Payable to seller of forward mortgage servicing rights | $ 13,492 | $ 25,060 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | Nature of Business and Basis of Presentation Nature of Business Nationstar Mortgage Holdings Inc., a Delaware corporation, including its consolidated subsidiaries (collectively, Nationstar or the Company), earns fees through the delivery of servicing, origination and transaction based services related principally to single-family residences throughout the United States. Basis of Presentation The consolidated financial statements include the accounts of Nationstar, its wholly-owned subsidiaries, and other entities in which the Company has a controlling financial interest, and those variable interest entities (VIEs) where Nationstar's wholly-owned subsidiaries are the primary beneficiaries. 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. The interim consolidated financial statements are unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results of the interim periods have been included. The consolidated interim financial statements of Nationstar have been prepared in accordance with generally accepted accounting principles for interim information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (SEC). Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States (GAAP) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Nationstar's Annual Report on Form 10-K filed on February 27, 2015. The results of operations for the interim periods disclosed are not necessarily indicative of the results that may be expected for the full year or any future period. Certain prior period amounts have been reclassified to conform to the current period presentation. Nationstar evaluated subsequent events through the date these interim consolidated financial statements were issued. Recent Accounting Developments In 2015, Nationstar adopted ASU 2014-14. As a result of this adoption, the Company reclassified $22.3 million and $36.0 million of Real Estate Owned to Receivables from trusts, agencies and prior servicers, net, as of June 30, 2015 and December 31, 2014, respectively, both of which are a component of Other Assets on the consolidated balance sheet. Additionally, the Company reclassified $69.4 million of real estate owned (previously recorded as a component of other assets) to reverse mortgage interest as of December 31, 2014, on its consolidated balance sheet. Consequently, the presentation is consistent for all periods presented. Accounting Standards Update 2015-02: Consolidation (Topic 810) - Amendments to the Consolidation Analysis (ASU 2015-02) changes the analysis that a reporting entity must perform when deciding to consolidate a legal entity. This amendment changes the evaluation of whether limited partnerships are variable interest entities or voting interest entities and eliminates the presumption that a general partner should consolidate a limited partnership. This amendment also changes the analysis for entities that are involved with variable interest entities and provides an exception for companies with interests in entities that are required to comply with requirements of the Investment Company Act of 1940 for registered money market funds. The amendment is effective for fiscal years and interim periods beginning after December 15, 2015. The Company is currently evaluating the impact of adopting ASU 2015-02. Accounting Standards Update 2015-03: Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03) requires that debt issuance costs be included in the carrying value of the related debt liability, when recognized, on the face of the balance sheet. This amendment is effective for fiscal years beginning after December 15, 2015. The Company is currently evaluating the impact of adopting ASU 2015-03. Accounting Standards Update 2015-05 - Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (ASU 2015-05) was created to eliminate diversity in the reporting of fees paid by a customer in a cloud computing arrangement caused by lack of guidance. This update provides that if a cloud computing arrangement includes a software license, the license element should be accounted for as other acquired software licenses. If the cloud computing arrangement does not include a software license then the fees should be accounted for as a service contract. This amendment is effective for annual periods beginning after December 15, 2015. The Company is currently evaluating the impact of adopting ASU 2015-05. 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 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. 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 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. Effective January 1, 2015, the Company adopted Accounting Standards Update No. 2014-14, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40), Classification of Certain Government-Guaranteed Loans Upon Foreclosure ( ASU 2014-14). This update requires that foreclosed mortgage loans guaranteed by the government be derecognized and a separate other receivable recognized if certain conditions are met. Upon adoption of this ASU, foreclosed loans backed by government guarantees that were previously recorded as a component of Real Estate Owned in Other Assets were reclassified to Reverse Mortgage Interests on the Company's consolidated balance sheet. Consistent with the Company's adoption of ASU 2014-14, prior year amounts were reclassified to be in conformity with the current year presentation. The adoption of ASU 2014-14 did not have an impact to the Company's net income. Effective January 1, 2015, the Company adopted Accounting Standards Update No. 2014-04, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40), Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure (ASU 2014-04). This update requires disclosure of consumer mortgage loans collateralized by residential real estate for which formal foreclosure proceedings are in process. Consistent with the Company's adoption of ASU 2014-04, the Company made the required disclosure for the current and prior year in the Mortgage Loans Held for Sale and Investment footnote. The adoption of ASU 2014-04 did not have an impact to the Company's net income. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 6 Months Ended |
Jun. 30, 2015 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights (MSRs) | Mortgage Servicing Rights and Related Liabilities MSRs and Related Liabilities June 30, 2015 December 31, 2014 MSRs - Fair Value $ 3,350,298 $ 2,949,739 MSRs - LOCOM 10,024 11,582 Mortgage Servicing Rights 3,360,322 2,961,321 Mortgage Servicing Liabilities 47,775 65,382 Excess spread financing - fair value 1,228,070 1,031,035 Mortgage servicing rights financing liability - fair value 59,070 49,430 MSR Related Liabilities (nonrecourse) $ 1,287,140 $ 1,080,465 Mortgage Servicing Rights - Fair Value M SRs - Fair Value consists of rights the Company owns and records as assets to service traditional residential mortgage loans for others either as a result of a purchase transaction or from the sale and securitization of loans originated. MSRs - Fair Value comprise both agency and non-Agency loans. The Company segregates MSRs - Fair Value between credit sensitive and interest sensitive pools. Interest sensitive pools are primarily impacted by changes in forecasted interest rates, which in turn impact voluntary prepayment speeds. Credit sensitive pools are primarily impacted by borrower performance under specified repayment terms, which most directly impacts involuntary prepayments and delinquency rates. The Company assesses whether acquired portfolios are more credit sensitive or interest sensitive in nature on the date of acquisition. The Company considers numerous factors in making this assessment, including loan-to-value ratios, FICO scores, percentage of portfolio previously modified, portfolio seasoning and similar criteria. Once the determination for a pool is made, it is not changed over time. Interest sensitive portfolios consist of lower delinquency single-family conforming residential forward mortgage agency loans. Credit sensitive portfolios primarily consist of higher delinquency single-family non-conforming residential forward mortgage loans serviced both for agency and non-Agency investors. The following table provides a breakdown of the total credit and interest sensitive UPBs for Nationstar's owned MSRs. June 30, 2015 December 31, 2014 UPB Fair Value UPB Fair Value Credit Sensitive $ 247,720,305 $ 2,171,954 241,769,601 1,919,290 Interest Sensitive 105,686,989 1,178,344 91,843,044 1,030,449 $ 353,407,294 $ 3,350,298 $ 333,612,645 $ 2,949,739 The activity of MSRs carried at fair value is as follows for the dates indicated: For the six months ended June 30, 2015 2014 Fair value at the beginning of the period 2,949,739 2,488,283 Additions: Servicing resulting from transfers of financial assets 105,506 120,212 Purchases of servicing assets 494,145 193,677 Changes in fair value: Due to changes in valuation inputs or assumptions used in the valuation model 18,347 24,821 Other changes in fair value (217,439 ) (148,859 ) Fair value at the end of the period $ 3,350,298 $ 2,678,134 In the fourth quarter of 2014, the Company revised its approach in calculating Other Changes in Fair Value in the above rollforward. Under the revised approach, Nationstar began incorporating scheduled principal payments, which were previously included as a component in the Due to changes in valuation inputs or assumptions line, as a component in Other changes in fair value. Nationstar has reclassified the amounts presented in the June 30, 2014 rollforward to conform to the current presentation. There was no impact to net income or to the total changes in fair value in the prior period as a result of the reclassified amounts. Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated: Credit Sensitive June 30, 2015 December 31, 2014 Discount rate 11.66 % 11.96 % Total prepayment speeds 17.05 % 18.58 % Expected weighted-average life 5.91 years 5.39 years Interest Sensitive June 30, 2015 December 31, 2014 Discount rate 9.10 % 9.09 % Total prepayment speeds 11.68 % 11.27 % Expected weighted-average life 6.38 years 6.49 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 June 30, 2015 and December 31, 2014 : Discount Rate Total Prepayment Speeds 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change June 30, 2015 Mortgage servicing rights $ (135,060 ) $ (247,779 ) $ (130,260 ) $ (249,466 ) December 31, 2014 Mortgage servicing rights $ (110,900 ) $ (207,295 ) $ (112,603 ) $ (199,078 ) 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 mortgages with an unpaid principal balance of $31.8 billion and $28.0 billion as of June 30, 2015 and December 31, 2014 , respectively. Nationstar carries these mortgage servicing rights at the lower of cost or market and performs an impairment analysis at the end of each reporting period. In determining fair value for the purpose of impairment, Nationstar utilizes a variety of assumptions, with the primary assumptions including discount rates, prepayment speeds, home price index, collateral values and the expected weighted average life. At June 30, 2015 and December 31, 2014 , no impairment was identified. Interest and servicing fees collected on reverse mortgage interests are included as a component of either interest income 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 Home Equity Conversion Mortgages (HECMs) subsequent to the acquisition of the rights to service these loans. The activity of MSRs carried at amortized cost is as follows for the dates indicated: For the six months ended June 30, 2015 2014 Assets Liabilities Assets Liabilities Activity of MSRs at amortized cost Balance at the beginning of the period $ 11,582 $ 65,382 $ 14,879 $ 82,521 Additions: Purchase /Assumptions of servicing rights/obligations — — — — Deductions: Amortization/Accretion (1,558 ) (17,607 ) (1,564 ) (2,029 ) Balance at end of the period $ 10,024 $ 47,775 $ 13,315 $ 80,492 Fair value at end of period $ 31,636 $ 39,042 $ 36,997 $ 62,680 For the six month periods ended June 30, 2015 and 2014, the Company accreted $17.6 million and $2.0 million , respectively, of the mortgage servicing liability as a result of increased HECM loan repurchase activity. 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 . Excess Spread Financing 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 Investment Group LLC (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. Servicing fees associated with a traditional MSR can be segregated into a base servicing fee and an excess servicing fee. The base servicing fee, along with ancillary income, is meant to cover costs incurred to service the specified pool plus a reasonable profit margin. The remaining servicing fee is considered excess. Nationstar retains all the base servicing fee and ancillary revenues associated with servicing the Portfolios and the retained portion of the excess 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 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 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 June 30, 2015 Low 7.2% 3.9 years 8.5% 6.8% High 17.3% 8.6 years 14.2% 30.3% December 31, 2014 Low 6.2% 4.0 years 8.5% 6.7% High 19.4% 7.1 years 14.2% 31.3% 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 Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change June 30, 2015 Excess spread financing $ 40,932 $ 86,191 $ 33,607 $ 71,308 December 31, 2014 Excess spread financing $ 36,632 $ 75,964 $ 33,618 $ 70,379 As the cash flow assumptions utilized in determining the fair value amounts in the excess spread financing are based on the related cash flow assumptions utilized in the financed MSRs, any fair value changes recognized in the MSRs would inherently have an inverse impact on the carrying amount in the related excess spread financing. For example, while an increase in discount rates would negatively impact the value of the Company's MSRs, it would reduce the carrying value of the associated excess spread financing liability. 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 From December 2013 through June 2014, Nationstar entered into agreements to sell a contractually specified base fee component of certain MSRs and servicer advances under specified terms to New Residential and certain unaffiliated third-parties. 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 18, Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC for additional information. 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 related revenue in the consolidated statements of income and comprehensive income. The weighted average assumptions used in Nationstar's valuation of Mortgage Servicing Rights Financing were as follows: June 30, 2015 December 31, 2014 Advance financing rates 2.79 % 2.79 % Annual advance recovery rates 24.67 % 27.55 % |
Advances
Advances | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | Advances June 30, 2015 December 31, 2014 Advances $ 2,348,114 $ 2,546,362 Servicing advances on non-Agency securities are typically recovered first at a loan-level from proceeds of the mortgage loans for which the advance was made, and then if loan-level funds are determined to be ultimately insufficient, from cash collected from all borrowers in a securitization trust. For advances on agency securities, servicing advances represent a receivable from the respective agency and are recovered from cash collections in a securitization trust and/or a requested reimbursement from the agency. Nationstar accretes purchase discounts into interest income as the related servicer advances are recovered. During the three and six month period ended June 30, 2015 , the Company accreted $0.0 million and $0.3 million , respectively, of the purchase discounts from recovered servicer advances. During the three and six month periods ended June 30, 2014 , the Company accreted $3.4 million and $8.4 million respectively, of the purchase discounts from recovered servicer advanced into interest income. As of June 30, 2015 and December 31, 2014 , Nationstar carried an allowance for uncollectible servicer advances of $13.9 million and $9.2 million , respectively. Advances balances are reflected net of these reserves. |
Reverse Mortgage Interests (Not
Reverse Mortgage Interests (Notes) | 6 Months Ended |
Jun. 30, 2015 | |
Reverse Mortgage Interests [Abstract] | |
Reverse Mortgage Interests | Reverse mortgage interests June 30, 2015 December 31, 2014 Participating interests $ 6,015,287 $ 1,363,225 Other interests securitized 548,276 341,268 Unsecuritized interests 874,388 752,801 Allowance for losses - reverse mortgage interests (13,386 ) (4,225 ) Total reverse mortgage interests $ 7,424,565 $ 2,453,069 Participating interests consists of Nationstar HECM loans and related advances that have been securitized through the issuance of Home Equity Conversion Mortgage Backed Securities (HMBS) guaranteed by Ginnie Mae to third party security holders. In May, 2015, the Company paid $192 million funded from cash on hand to Generation Mortgage and received reverse mortgage net assets valued at $233 million , comprised of $4.9 billion of UPB assets and $4.6 billion of assumed liabilities. Other interests securitized consists of reverse mortgage interests which have been transferred to private securitization trusts and are subject to nonrecourse debt. Nationstar evaluated these trusts and concluded that they meet the definition of a VIE and Nationstar is the primary beneficiary. Accordingly, these transactions are treated as secured borrowings and both the reverse mortgage interests and the related indebtedness are retained on Nationstar’s balance sheet. See Note 8, Indebtedness and Note 10, Securitizations and Financing. In December 2014, Nationstar Mortgage LLC completed the securitization of approximately $343.6 million in Nationstar HECM Loan Trust 2014-1Mortgage Backed Securities. 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. In the first quarter 2015, the Company sold the remaining retained portions of the Class A and the Class M notes for total proceeds of $73.1 million . In the second quarter of 2015, the company issued $269.4 million of notes through a private mortgage-backed securities issuance; secured with non-performing HECM loans and REO properties acquired from a Ginnie Mae sponsored HECM mortgage-backed security. The notes have a final maturity date of May 2018. This transaction was accounted for as a secured borrowing, the related financial assets will continue to be recorded at lower of cost or market with a corresponding liability to other non-recourse debt. No portion of the notes were retained by the Company as of June 30, 2015. Unsecuritized interests consist primarily of (1) recently funded borrower draws; (2) Ginnie Mae HECMs that have been repurchased out of a Ginnie Mae HECM securitization that have reached 98% or more of the maximum claim amount; (3) repurchased Ginnie Mae HECM interests that have been assigned to the FHA for reimbursement; (4) foreclosed assets; (5) advances made on inactive loans that cannot be securitized due to the delinquency status; and (6) accounts receivable related to FHA claims. Under the Ginnie Mae HMBS program, the Company is required to repurchase a HECM loan from the HMBS pool when the outstanding principal balance of the HECM loan is equal to or greater than 98% of the maximum claim amount. Nationstar routinely securitizes eligible reverse mortgage interests. As stated above, these transactions are treated as secured borrowings with both the reverse mortgage interests and related indebtedness retained on Nationstar’s balance sheet. Nationstar evaluates its reverse mortgage interests on a periodic basis. As of the three and six month periods ended June 30, 2015, no impairment was recorded. |
Mortgage Loans Held for Sale an
Mortgage Loans Held for Sale and Investment | 6 Months Ended |
Jun. 30, 2015 | |
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 government-sponsored enterprises (GSEs) or other third-party investors, primarily Ginnie Mae, in the secondary market. Nationstar primarily focuses on assisting customers currently in the Company's servicing portfolio with refinances of loans or new home purchases (referred to as recapture). Generally, all newly originated mortgage loans held for sale are delivered to third-party purchasers or securitized shortly after origination on a servicing-retained basis. Mortgage loans held for sale consist of the following for the dates indicated: June 30, 2015 December 31, 2014 Mortgage loans held for sale – unpaid principal balance $ 1,854,736 $ 1,218,596 Mark-to-market adjustment (1) 51,274 59,335 Total mortgage loans held for sale $ 1,906,010 $ 1,277,931 (1) The mark-to-market adjustment is reflected in net gain on mortgage loans held for sale on our consolidated statements of income and comprehensive income. The total UPB of mortgage loans held for sale on nonaccrual status was as follows for the dates indicated: June 30, 2015 December 31, 2014 Mortgage loans held for sale - unpaid principal balance UPB Fair Value UPB Fair Value Nonaccrual $ 27,381 $ 24,812 $ 31,968 $ 26,022 The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was as follows for the dates indicated: Mortgage loans held for sale - unpaid principal balance June 30, 2015 December 31, 2014 Foreclosure $ 15,706 $ 17,493 A reconciliation of the changes in mortgage loans held for sale for the dates indicated is presented in the following table: For the six months ended June 30, 2015 June 30, 2014 Mortgage loans held for sale – beginning balance $ 1,277,931 $ 2,603,380 Mortgage loans originated and purchased, net of fees 9,854,949 11,470,908 Proceeds on sale of and payments of mortgage loans held for sale (9,420,331 ) (12,089,338 ) Gain on Sale of Mortgage Loans (1) 196,727 241,971 Transfer of mortgage loans held for sale to held for investment or other assets (3,266 ) (2,100 ) Mortgage loans held for sale – ending balance $ 1,906,010 $ 2,224,821 (1) The gain on sale of mortgage loans is reflected in net gain on mortgage loans held for sale on our consolidated statements of income and comprehensive income. Included in Mortgage loans originated and purchased, net of fees are loans repurchased out of Ginnie Mae pools where we are the named servicer. As named servicer, Nationstar has the right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. The majority of Ginnie Mae repurchased loans are repurchased solely with the intent to repool into new Ginnie Mae securitizations or to otherwise sell to third-party investors. For the six months ended June 30, 2015 and June 30, 2014 , Nationstar repurchased loans from Ginnie Mae securitization pools $0.9 billion and $2.3 billion of mortgage loans, respectively. Mortgage loans held for investment, net Mortgage loans held for investment, net as of the dates indicated include: June 30, 2015 December 31, 2014 Mortgage loans held for investment, net – unpaid principal balance $ 263,581 $ 276,820 Transfer discount: Accretable (13,825 ) (15,503 ) Non-accretable (63,877 ) (66,217 ) Allowance for loan losses (3,549 ) (3,531 ) Total mortgage loans held for investment, net $ 182,330 $ 191,569 The changes in accretable yield on loans transferred to mortgage loans held for investment, net were as follows: For the six months ended June 30, 2015 For the year ended December 31, 2014 Accretable Yield Balance at the beginning of the period $ 15,503 $ 17,362 Accretion (1,406 ) (2,955 ) Reclassifications from (to) nonaccretable discount (272 ) 1,096 Balance at the end of the period $ 13,825 $ 15,503 Nationstar may periodically modify the terms of any outstanding mortgage loans held for investment, net for loans that are either in default or in imminent default. Modifications often involve reduced payments by borrowers, modification of the original terms of the mortgage loans, forgiveness of debt and/or modified servicing advances. As a result of the volume of modification agreements entered into, the estimated average outstanding life in this pool of mortgage loans has been extended. Nationstar records interest income on the transferred loans on a level-yield method. To maintain a level-yield on these transferred loans over the estimated extended life, Nationstar reclassified approximately $0.3 million of transfer discount to non-accretable yield for the six months ended June 30, and $1.1 million for the year ended December 31, 2014 . 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 LTV’s are 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 total UPB of mortgage loans held for investment for which the Company has begun formal foreclosure proceedings was as follows for the dates indicated: Mortgage loans held for investment - unpaid principal balance June 30, 2015 December 31, 2014 Foreclosure $ 47,688 $ 52,769 |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following: June 30, 2015 December 31, 2014 Receivables from trusts, agencies and prior servicers, net $ 389,583 $ 386,166 Accrued revenues 161,110 154,436 Loans subject to repurchase right from Ginnie Mae 133,928 131,592 Goodwill 68,479 54,701 Deferred financing costs 49,344 46,986 Intangible assets 46,633 19,622 Prepaid expenses 12,559 9,837 Accrued interest 1,644 1,890 Real estate owned (REO), net 1,713 1,625 Other 41,896 70,374 Total other assets $ 906,889 $ 877,229 For certain loans that Nationstar sold to Ginnie Mae, Nationstar as the issuer has the unilateral right to repurchase, without Ginnie Mae’s prior authorization, any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Once Nationstar has the unilateral right to repurchase a delinquent loan, Nationstar has effectively regained control over the loan, and under GAAP, must re-recognize the loan on its consolidated balance sheets and establish a corresponding repurchase liability regardless of Nationstar’s intention to repurchase the loan. Nationstar’s re-recognized loans included in other assets and the corresponding liability in payables and accrued liabilities was $133.9 million at June 30, 2015 and $131.6 million at December 31, 2014 . Acquisitions In January 2015, Xome Holdings LLC (previously known as Solutionstar Holdings LLC hereafter referred to a Xome SM ), a wholly owned subsidiary of Nationstar, acquired Experience 1, Inc., the holding company for Title365, Trusted Signing, and technology subsidiaries X1 Labs and X1 Analytics (collectively, Title365), a technology services provider for title insurance and escrow services. The total consideration transferred for the acquisition was $36.0 million in cash. Related to the acquisition, the Company recorded an additional $16.8 million related to goodwill and $14.2 million in intangible assets. The recognized intangible assets primarily relate to customer relationships, trade names and technology. In May 2015, Xome SM acquired Quantarium, LLC, a real estate analytics company that has developed industry-leading automated home valuation models utilizing advanced statistical methods and complex proprietary algorithms. In June 2015, Xome acquired substantially all of the assets of GoPaperless Solutions, a leader in digital signature and document management Software-as-a-Service solutions. GoPaperless will be integrated into the Xome.com platform during the third quarter. Related to the acquisitions, the company tentatively recorded an additional $4 million related to goodwill and $10 million in intangible assets pending a final valuation. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
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 (loss) and comprehensive income (loss). Unrealized losses on designated 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 designated 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 statements of income (loss) and comprehensive income (loss). Associated with the Company's forward MBS trades are $13.9 million and $9.8 million in collateral deposits on derivative instruments recorded in payables and accrued liabilities and other assets, respectively, on the Company's balance sheets as of June 30, 2015 and December 31, 2014 , 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. During the six months ended June 30, 2015, Nationstar entered into two interest rate caps with notional values of $800 million and $400 million , respectively, to mitigate interest rate risk. The interest rate caps expire during 2016. 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 Dates Outstanding Notional Fair Value Recorded Gains / (Losses) For the six months ended June 30, 2015 ASSETS MORTGAGE LOANS HELD FOR SALE Loan sale commitments 2015 $ 1,000 $ 37 $ 41 DERIVATIVE FINANCIAL INSTRUMENTS IRLCs 2015 2,998,234 81,205 (6,660 ) Forward MBS trades 2015 3,138,409 22,864 22,580 LPCs 2015 313,444 4,196 2,197 Interest rate and caps 2015-2016 1,200,000 — — LIABILITIES DERIVATIVE FINANCIAL INSTRUMENTS IRLCs 2015 43,129 206 (199 ) Forward MBS trades 2015 1,386,757 3,691 14,669 LPCs 2015 559,260 3,787 (3,739 ) Interest rate swaps and caps 2017 29,958 57 (672 ) Eurodollar futures 2015-2017 120,000 118 (111 ) 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 2017 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 ) |
Indebtedness
Indebtedness | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness Notes Payable June 30, 2015 December 31, 2014 Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged Advance Facilities MBS advance financing facility LIBOR+2.50% to 4.00% March 2016 Servicing advance receivables $ 130,000 $ 63,770 $ 69,505 $ 363,014 $ 418,126 Securities repurchase facility (2011) LIBOR +3.50% 90 day revolving Nonrecourse debt - Legacy Assets — 35,058 55,603 34,613 55,603 Nationstar agency advance financing facility (1) LIBOR+1.20% to 3.75% October 2015 Servicing advance receivables 1,300,000 1,061,500 1,195,152 805,706 885,115 MBS advance financing facility (2012) LIBOR+5.00% April 2016 Servicing advance receivables 50,000 45,510 54,441 42,472 50,758 Nationstar Mortgage Advance Receivable LIBOR+1.15% to 5.30% June 2018 Servicing advance receivables 500,000 411,563 475,978 419,170 471,243 MBS servicer advance facility (2014) LIBOR+3.50% September 2015 Servicing advance receivables 100,000 99,820 166,954 79,084 138,010 Nationstar servicer advance receivables trust 2014 - BC LIBOR+1.50% to 3.00% November 2015 Servicing advance receivables 200,000 109,231 120,719 106,115 121,030 Securities repurchase facility (2014) LIBOR+1.50% to 2.00% November 2017 Securities — — — 51,609 74,525 $ 1,826,452 $ 2,138,352 $ 1,901,783 $ 2,214,410 June 30, 2015 December 31, 2014 Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged Warehouse Facilities $1.3 billion warehouse facility LIBOR+2.00% to 2.875% October 2015 Mortgage loans or MBS $ 1,300,000 $ 710,840 $ 757,426 $ 663,167 $ 697,257 $1.0 billion warehouse facility LIBOR+1.75% to 3.25% June 2016 Mortgage loans or MBS 1,000,000 619,540 675,637 307,294 320,285 $500 million warehouse facility LIBOR+1.75% to 2.75% September 2015 Mortgage loans or MBS 500,000 299,800 307,209 176,194 179,994 $500 million warehouse facility LIBOR+ 1.50% to 2.00% July 2015 Mortgage loans or MBS 500,000 292,608 310,047 183,290 192,990 $350 million warehouse facility LIBOR+2.20% to 4.50% March 2016 Mortgage loans or MBS 350,000 115,443 124,151 210,049 223,849 $200 million warehouse facility LIBOR+1.50% April 2016 Mortgage loans or MBS 200,000 40,029 42,560 — — $75 million warehouse facility (HCM) (2) LIBOR+ 2.25% to 2.875% October 2015 Mortgage loans or MBS 75,000 49,337 51,944 23,949 29,324 $50 million warehouse facility (HCM) LIBOR + 2.50% to 2.75% November 2015 Mortgage loans or MBS 50,000 25,318 26,381 8,679 9,044 ASAP+ facility LIBOR+1.50% Up to 45 days GSE mortgage loans or GSE MBS — — — — — $ 2,152,915 $ 2,295,355 $ 1,572,622 $ 1,652,743 Mortgage loans $ 1,735,473 $ 1,842,445 $ 1,196,956 $ 1,241.043 Reverse mortgage interests $ 417,442 $ 452,910 $ 375,666 $ 411,700 (1) This facility has both variable funding notes (VFN) and term notes. Nationstar issued $300.0 million in term notes to institutional investors of which $100.0 million remains outstanding. The notes have a weighted average interest rate of 2.20% and a weighted average term of 5 years . (2) This facility is a sublimit of the $1.3 billion facility specific to Home Community Mortgage (HCM). Unsecured Senior Notes A summary of the balances of Unsecured Senior Notes is presented below: June 30, 2015 December 31, 2014 $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 378,153 378,555 $400 million face value, 7.875% interest rate payable semi-annually, due October 2020 400,495 400,541 $600 million face value, 6.500% interest rate payable semi-annually, due July 2021 604,745 605,135 $300 million face value, 6.500% interest rate payable semi-annually, due June 2022 300,000 300,000 Total $ 2,158,392 $ 2,159,231 The indentures for the Unsecured Senior Notes contain various covenants and restrictions that limit Nationstar's ability to incur additional indebtedness, pay dividends, make certain investments, create liens, consolidate, merge or sell substantially all of its assets, or enter into certain transactions with affiliates. The indentures contain certain events of default, including (subject, in some cases, to customary cure periods and materiality thresholds) defaults based on (i) the failure to make payments under the indenture when due, (ii) breach of covenants, (iii) cross-defaults to certain other indebtedness, (iv) certain bankruptcy or insolvency events, (v) material judgments and (vi) invalidity of material guarantees. The indentures for the Unsecured Senior Notes provide that Nationstar may redeem all or a portion of the notes prior to certain fixed dates by paying a make-whole premium plus accrued and unpaid interest and additional interest, if any, to the redemption dates. In addition, Nationstar may redeem all or a portion of the senior notes at any time on or after certain fixed dates at the applicable redemption prices set forth in the indentures plus accrued and unpaid interest and additional interest, if any, to the redemption dates. Additionally, the indentures provide that on or before certain fixed dates, Nationstar may redeem up to 35% of the aggregate principal amount of the senior notes with the net proceeds of certain equity offerings at fixed redemption prices, plus accrued and unpaid interest and additional interest, if any, to the redemption dates, subject to compliance with certain conditions. The ratios included in the indentures for the Unsecured 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 June 30, 2015 , 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: June 30, 2015 December 31, 2014 Participating interest financing $ 6,084,064 $ 1,433,145 2014-1 HECM securitization 275,138 259,328 2015-1 HECM securitization 263,901 — Nonrecourse debt - Legacy Assets 70,669 75,838 Total $ 6,693,772 $ 1,768,311 Participating Interest Financing Participating interest financing represents the issuance of pools of HMBS to third-party security holders which are guaranteed by certain GSEs. Nationstar has accounted for the securitization of these advances in the related 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 through securitization of advances on the HECM loans. The increase in participating interest financing and related reverse mortgage interests for the period ending June 30, 2015 is due to the acquisition from Generations mortgage. The interest rate is based on the underlying HMBS rate with a range of 0.14% to 6.98% . The participating interest financing was $6.1 billion and $1.4 billion at June 30, 2015 and December 31, 2014, respectively. HECM Securitizations From time to time, Nationstar securitizes its interests in reverse mortgages. The transactions 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 transactions are structured as secured borrowings with the reverse mortgage loans included in the consolidated financial statements as Reverse Mortgage Interests and the related financing included in other nonrecourse debt. The nonrecourse debt totaled $539.0 million and $259.3 million at June 30, 2015 and December 31, 2014, respectively. In December 2014, Nationstar Mortgage LLC completed the securitization of approximately $343.6 million in Nationstar HECM Loan Trust 2014-1Mortgage Backed Securities. 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. In the first quarter 2015, the Company sold the remaining retained portions of the Class A and the Class M notes for total proceeds of $73.1 million . In June 2015, Nationstar Mortgage LLC completed the securitization of approximately $269.4 million in Nationstar HECM Loan Trust 2015-1Mortgage Backed Securities. The notes were issued under two separate classes, comprised of Class A Notes and Class M Notes. No portion of the notes were retained by the Company. Nonrecourse Debt–Legacy Assets In November 2009 , Nationstar completed the securitization of approximately $222.0 million of Asset Backed Securities (ABS), which was accounted for as a secured borrowing. This structure resulted in Nationstar carrying the securitized mortgage loans on Nationstar’s consolidated bal ance sheet and recognizing the asset-backed certificates acquired by third parties as nonrecourse debt of $70.7 million at June 30, 2015 and $75.8 million at June 30, 2014. 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 $262.1 million and $268.2 million at June 30, 2015 and December 31, 2014 , respectively. 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 $82.3 million and $88.2 million at June 30, 2015 and December 31, 2014 , respectively. Financial Covenants The Company's borrowing arrangements and credit facilities contain various financial covenants which primarily relate to required tangible net worth amounts, liquidity reserves, leverage requirements, and profitability requirements. As of June 30, 2015 , management believes Nationstar was in compliance with its financial covenants. Nationstar is required to maintain a minimum tangible net worth of at least $685 million as of each quarter-end related to its outstanding Master Repurchase Agreements on its outstanding repurchase facilities. As of June 30, 2015 , Nationstar was in compliance with these minimum tangible net worth requirements. |
Accounts Payable
Accounts Payable | 6 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Payables and Accrued Liabilities | Payables and Accrued Liabilities Payables and accrued liabilities consist of the following: June 30, 2015 December 31, 2014 Payables to servicing and subservicing investors $ 416,383 $ 329,306 Accrued interest 60,550 59,708 Loans subject to repurchase from Ginnie Mae 133,928 131,592 Taxes 101,810 96,237 Payable to insurance carriers and insurance cancellation reserves 104,749 163,381 Accrued bonus and payroll 74,923 85,366 Repurchase reserves 28,831 29,165 MSR purchases payable including advances 23,098 45,697 Other 445,935 381,626 Total payables and accrued liabilities $ 1,390,207 $ 1,322,078 Payables to servicing and subservicing investors Payables to servicing and subservicing investors represent 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. |
Variable Interest Entities and
Variable Interest Entities and Securitizations | 6 Months Ended |
Jun. 30, 2015 | |
Variable Interest Entities and Securitizations [Abstract] | |
Variable Interest Entities and Securitizations | Securitizations and Financings 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 (i) Nationstar Home Equity Loan Trust 2009-A, (ii) Nationstar Mortgage Advance Receivables Trust, (iii) Nationstar Agency Advance Financing Facility, and (iv) Nationstar Servicer Advance Receivables Trust, 2014 BC should be consolidated as Nationstar is the primary beneficiary. Also, Nationstar consolidates two reverse mortgage SPE’s which are (v) Nationstar HECM Loan Trust 2014-1 and (vi) Nationstar HECM Loan Trust 2015-1 as Nationstar has determined that it is the primary beneficiary. Nationstar evaluates its interests 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: June 30, 2015 December 31, 2014 Transfers Reverse Secured Borrowings Transfers Reverse Secured Borrowings ASSETS Restricted cash $ 169,827 $ 11,956 $ 90,068 $ 15,578 Reverse mortgage interests — 6,563,553 — 1,642,789 Advances 1,791,849 — 1,477,388 — Mortgage loans held for investment, net 181,154 — 189,456 — Derivative financial instruments — — 865 — Other assets 2,726 — 2,678 — Total Assets $ 2,145,556 $ 6,575,509 $ 1,760,455 $ 1,658,367 LIABILITIES Advance facilities $ 1,582,294 $ — $ 1,330,991 $ — Payables and accrued liabilities 1,799 377 1,596 186 Nonrecourse debt–Legacy Assets 70,669 — 75,838 — 2014-1 HECM Securitization — 275,138 — 259,328 2015-1 HECM Securitization — 263,901 — — Participating interest financing — 6,084,064 — 1,433,145 Total Liabilities $ 1,654,762 $ 6,623,480 $ 1,408,425 $ 1,692,659 Securitizations Treated as Sales When Nationstar sells mortgage loans in securitization transactions 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. 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: June 30, 2015 December 31, 2014 Total collateral balances $ 3,027,803 $ 3,258,472 Total certificate balances 3,062,887 3,297,256 Nationstar has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of June 30, 2015 or December 31, 2014 , 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 June 30, 2015 June 30, 2014 Unconsolidated securitization trusts $ 730,235 $ 936,178 For the three months ended June 30, For the six months ended June 30, Credit Losses 2015 2014 2015 2014 Unconsolidated securitization trusts $ 57,759 $ 80,890 $ 115,220 $ 147,432 Certain cash flows received from securitization trusts related to the transfers of mortgage loans accounted for as sales for the dates indicated were as follows: For the three months ended June 30, For the six months ended June 30, 2015 2014 2015 2014 Servicing Fees Loan Servicing Fees Loan Servicing Fees Loan Servicing Fees Loan Unconsolidated securitization trusts $ 6,491 $ — $ 10,408 $ — $ 12,864 $ — $ 18,186 $ — |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity In March 2015, Nationstar completed an equity offering of 17.5 million shares for a total of $497.8 million in cash proceeds. Nationstar intends to use the net proceeds from this offering for general corporate purposes, including acquisitions, transfers of servicing portfolios, funding of advances and repayment of obligations. During the first and second quarters of 2015, certain employees of Xome were granted 948 thousand stock appreciation rights (SARs) which can be settled in cash or units of Xome Holdings LLC (at the election of Xome). The SARs generally vest over three years and have a ten year term. The SARs become exercisable upon a liquidity event at Xome which includes a change in control or an initial public offering of Xome. The Company did not recognize expense related to the share-based awards during the six months ended June 30, 2015 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense was as follows: For the three months ended June 30, For the six months ended June 30, 2015 2014 2015 2014 Tax expense $ 44,171 $ 38,941 $ 16,646 $ 53,942 Effective tax rate 36.8 % 36.9 % 36.5 % 37.4 % The Company had a net deferred tax liability of $107.0 million at June 30, 2015 and $109.8 million at December 31, 2014 . A valuation allowance of $6.4 million was recorded against deferred tax assets at June 30, 2015 and December 31, 2014 as management believes that it is more likely than not that some of the deferred tax assets will not be realized. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
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. Nationstar has elected to carry these loans at fair value. 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. 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 underlying 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. 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 on a recurring basis 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 income and comprehensive income. As these prices are derived from a combination of internally developed valuation models and quoted market prices based on the value of the underlying MSRs, Nationstar classifies these valuations as Level 3 in the fair value disclosures. Mortgage Servicing Rights Financing Liability (Level 3) - Nationstar estimates fair value on a recurring basis 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 income and comprehensive income . As these prices are derived from internally developed valuation models 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. HECM Securitizations (Level 3) – Nationstar estimates fair value of the non-recourse debt related to HECM securitizations based on the present value of future expected discounted cash flows with the discount rate approximating that of 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: June 30, 2015 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 ASSETS Mortgage loans held for sale (1) $ 1,906,010 $ — $ 1,906,010 $ — Mortgage servicing rights (1) 3,350,298 — — 3,350,298 Derivative financial instruments: IRLCs 81,205 — 81,205 — Forward MBS trades 22,864 — 22,864 — LPCs 4,196 — 4,196 — Interest rate swaps and caps — — — — Total assets $ 5,364,573 $ — $ 2,014,275 $ 3,350,298 LIABILITIES Derivative financial instruments IRLCs 206 — 206 — Interest rate swaps and caps 57 — 57 — Forward MBS trades 3,691 — 3,691 — LPCs 3,787 — 3,787 — Eurodollar futures 118 — 118 — Mortgage servicing rights financing 59,070 — — 59,070 Excess spread financing 1,228,070 — — 1,228,070 Total liabilities $ 1,294,999 $ — $ 7,859 $ 1,287,140 December 31, 2014 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 and caps 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 (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 six months ended June 30, 2015 Mortgage servicing rights Excess spread financing Mortgage servicing rights financing Beginning balance $ 2,949,739 $ 1,031,035 $ 49,430 Transfers into Level 3 — — — Transfers out of Level 3 — — — Total gains or losses Included in earnings (199,092 ) 38,951 9,640 Included in other comprehensive income — — — Purchases, issuances, sales and settlements Purchases 494,145 — — Issuances 105,506 258,196 — Sales — — — Settlements — (100,112 ) — Ending balance $ 3,350,298 $ 1,228,070 $ 59,070 ASSETS LIABILITIES For the year ended December 31, 2014 Mortgage servicing rights Excess spread financing Mortgage 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 The table below presents a summary of the estimated carrying amount and fair value of Nationstar’s financial instruments. June 30, 2015 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 562,939 $ 562,939 $ — $ — Restricted cash 387,914 387,914 — — Mortgage loans held for sale 1,906,010 — 1,906,010 — Mortgage loans held for investment, net 182,330 — — 181,820 Reverse mortgage interests 7,424,565 — — 7,453,656 Derivative financial instruments 108,265 — 108,265 — Financial liabilities: Unsecured Senior Notes 2,158,392 2,127,684 — — Advance Facilities 1,826,452 — 1,826,452 — Warehouse Facilities 2,152,915 — 2,152,915 — Derivative financial instruments 7,859 — 7,859 — Excess spread financing 1,228,070 — — 1,228,070 Mortgage servicing rights financing liability 59,070 — — 59,070 Nonrecourse debt - Legacy assets 70,669 — — 81,335 Participating interest financing 6,084,064 — 6,073,412 — 2014-1 HECM Securitization 275,138 — — 287,801 2015-1 HECM Securitization 263,901 — — 256,988 December 31, 2014 Carrying Amount Fair Value 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 2,453,069 — — 2,432,735 Derivative financial 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 |
Capital Requirements
Capital Requirements | 6 Months Ended |
Jun. 30, 2015 | |
Mortgage Banking [Abstract] | |
Capital Requirements | Capital Requirements Certain of Nationstar's secondary market investors require minimum net worth (capital) requirements, as specified in the respective selling and servicing agreements. In addition, these investors may require capital ratios in excess of the stated requirements to approve large servicing transfers. To the extent that these requirements are not met, Nationstar's secondary market investors may utilize a range of remedies ranging from sanctions, suspension or ultimately termination of Nationstar's selling and servicing agreements, which would prohibit Nationstar from further originating or securitizing these specific types of mortgage loans or being an approved servicer. Among Nationstar's various capital requirements related to its outstanding selling and servicing agreements, the most restrictive of these requires Nationstar to maintain a minimum adjusted net worth balance of $1.0 billion . As of June 30, 2015 Nationstar was in compliance with its selling and servicing capital requirements. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
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, Service members Civil Relief Act, Telephone Consumer Protection Act, Truth in Lending Act, Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), unfair, deceptive or abusive acts or practices in violation of the Dodd-Frank Act, the Securities Exchange Act of 1934, as amended, the Home Mortgage Disclosure Act and the Bankruptcy Code and False Claims Act. Additionally, along with others in its industry, the Company is subject to repurchase and indemnification claims and may continue to receive claims in the future, relating to the sale of mortgage loans and/or the servicing of mortgage loans and securitizations. The Company is also subject to legal actions or proceedings related to loss sharing and indemnification provisions of its various acquisitions. Certain of the actual legal actions and proceedings include claims for substantial compensatory, punitive and/or statutory damages or claims for an indeterminate amount of damages. The outcome of such proceedings is difficult to predict or estimate until late in the proceedings, which may last several years. In particular, ongoing and other legal proceedings brought under federal or state consumer protection laws may result in a separate fine for each violation of the laws, which, particularly in the case of class action lawsuits, could result in damages substantially in excess of the amount earned from the underlying activities and that could have a material adverse effect on the Company's liquidity and financial position. The certification of any putative class action could substantially increase the Company's exposure to damages. Further, in the ordinary course of business the Company and its subsidiaries can be or are involved in governmental and regulatory examinations, information gathering requests, investigations and proceedings (both formal and informal), regarding the Company’s business, certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. Such inquiries may include those into servicer loan originations, servicing, bankruptcy, foreclosure processes and procedures and lender-placed insurance. 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 both probable and estimable. If, at the time of evaluation, the loss contingency is not both probable and estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and estimable. Once the matter is deemed to be both probable and estimable, the Company will establish an accrued liability and record a corresponding amount to litigation related expense. The Company will continue to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. Litigation related expense, which includes the fees paid to external legal service providers, of $16.2 million and $23.4 million for the three and six months ended June 30, 2015 , and $ 10.3 million and $ 15.2 million for the three and six months ended June 30, 2014 , respectively, was included in general and administrative expenses on the consolidated statements of income and comprehensive income. For a number of matters for which a loss is probable or reasonably possible in future periods, whether in excess of a related accrued liability or where there is no accrued liability, the Company may be able to estimate a range of possible loss. In determining whether it is possible to provide an estimate of loss or range of possible loss, the Company reviews and evaluates its material litigation and regulatory matters on an ongoing basis, in conjunction with any outside counsel handling the matter. For those matters for which an estimate is possible, management currently believes the aggregate range of reasonably possible loss is $8.3 million to $20.1 million in excess of the accrued liability (if any) related to those matters as of June 30, 2015 . 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 effect on the financial statements of the Company, although the outcome of such proceedings could be material to the Company’s financial statements for a particular period depending, on among other things, the level of the Company’s revenues or income for such period. However, in the event of significant developments on existing cases, it is possible that the ultimate resolution, if unfavorable, may be material to the Company’s consolidated financial statements. Loan and Other Commitments Nationstar enters into IRLCs with prospective borrowers whereby the Company commits to lend a certain loan amount under specific terms and interest rates to the borrower. Nationstar also enters into LPCs with prospective sellers. These loan commitments are treated as derivatives and are carried at fair value (See Note 7 - Derivative Financial Instruments). Nationstar has certain MSRs related to approximately $ 31.5 billion of unpaid principal balance in reverse mortgage loans. As servicer for these reverse mortgage loans, among other things, the Company is obligated to make advances to the loan customers as required. At June 30, 2015 , the Company’s maximum unfunded advance obligation related to these MSRs was approximately$ 3.5 billion . Upon funding any portion of these advances, the Company expects to securitize and sell the advances in transactions that will be accounted for as a financing arrangement. |
Business Segment Reporting
Business Segment Reporting | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | Business Segment Reporting Nationstar presents financial performance utilizing reportable segments aligned with how the operations are managed. The Servicing segment reflects the results of operations attributable to MSRs acquired from and loans subserviced for third-parties and originated loans. The Xome (formerly known as Solutionstar) segment reflects financial performance related to real estate services (e.g., collateral valuation, title, closing services) and real estate exchange, including our Xome.com end-to-end digital platform and HomeSearch.com residential auction portal. The Originations segment includes fees associated with loan originations and gains from the sale and securitization of loans. The Corporate and Other segment encompasses certain identified corporate costs as well as the 'Legacy' portfolio which includes primarily subprime mortgage loans originated in the latter portion of 2006 and 2007 or acquired from Nationstar's predecessor. Nationstar’s segments are based upon an organizational structure that 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 on 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. Effective April 1, 2015, we reclassified a small portion of Xome segment activity involved with loss recovery to the Servicing segment to better align with how our chief operating decision maker internally reviews and operates this business. All periods presented reflect this reclassification. For the three and six months ending June 30, 2105, $4.5 million and $7.7 million of net income was moved from our Xome segment to our Servicing segment, respectively. For the three and six months ending June 30, 2104, $2.1 million and $2.3 million of net income was moved from our Xome segment to our Servicing segment, respectively. The following tables are a presentation of financial information by segment for the periods indicated: For the three months ended June 30, 2015 Servicing Originations Xome Total Operating Corporate and Other Eliminations Consolidated REVENUES: Service related $ 320,654 $ 13,428 $ 122,004 $ 456,086 $ 1,855 $ (218 ) $ 457,723 Net gain on mortgage loans held for sale 7,837 156,085 — 163,922 (36 ) — 163,886 Total revenues 328,491 169,513 122,004 620,008 1,819 (218 ) 621,609 Total expenses 209,540 117,159 94,433 421,132 19,853 — 440,985 Other income (expense): Interest income 66,922 16,862 — 83,784 3,153 218 87,155 Interest expense (90,191 ) (14,854 ) (29 ) (105,074 ) (42,789 ) — (147,863 ) Gain (loss) on interest rate swaps and caps 85 — — 85 11 — 95 Total other income (expense) (23,184 ) 2,008 (29 ) (21,205 ) (39,625 ) 218 (60,613 ) Income (loss) before taxes $ 95,767 $ 54,362 $ 27,542 $ 177,671 $ (57,659 ) $ — $ 120,011 Depreciation and amortization $ 4,420 $ 3,006 $ 3,950 $ 11,376 $ 2,397 $ — $ 13,773 Total assets 14,423,073 1,879,284 271,056 16,573,413 748,090 — 17,321,503 For the three months ended June 30, 2014 Servicing Originations Xome Total Operating Corporate and Other Eliminations Consolidated REVENUES: Service related $ 283,645 $ 13,901 $ 79,492 $ 377,038 $ 147 $ (368 ) $ 376,817 Net gain on mortgage loans held for sale 22,094 151,201 — 173,295 (379 ) — 172,916 Total revenues 305,739 165,102 79,492 550,333 (232 ) (368 ) 549,733 Total expenses 187,447 97,084 43,753 328,284 18,427 — 346,711 Other income (expense): Interest income 22,158 17,327 — 39,485 3,088 368 42,941 Interest expense (70,014 ) (16,711 ) (90 ) (86,815 ) (52,607 ) — (139,422 ) Gain (loss) on interest rate swaps and caps (953 ) — — (953 ) — — (953 ) Total other income (expense) (48,809 ) 616 (90 ) (48,283 ) (49,519 ) 368 (97,434 ) Income (loss) before taxes $ 69,483 $ 68,634 $ 35,649 $ 173,766 $ (68,178 ) $ — $ 105,588 Depreciation and amortization $ 4,513 $ 3,469 $ 1,078 $ 9,060 $ 2,549 — $ 11,609 Total assets 7,622,720 $ 2,474,838 55,441 10,152,999 1,014,775 $ — 11,167,774 For the six months ended June 30, 2015 Servicing Originations Xome Total Operating Corporate and Other Eliminations Consolidated REVENUES: Service related $ 420,649 $ 20,490 $ 229,790 $ 670,929 $ 2,358 $ (440 ) $ 672,846 Net gain on mortgage loans held for sale 21,850 307,369 — 329,219 1,661 — 330,880 Total revenues 442,499 327,859 229,790 1,000,148 4,019 (440 ) 1,003,726 Total expenses 391,936 217,409 173,821 783,166 41,662 — 824,828 Other income (expense): Interest income 91,560 32,129 — 123,689 6,799 440 130,929 Interest expense (148,166 ) (29,239 ) (64 ) (177,469 ) (86,042 ) — (263,511 ) Gain (loss) on interest rate swaps and caps (717 ) — — (717 ) 45 — (672 ) Total other income (expense) (57,323 ) 2,890 (64 ) (54,497 ) (79,198 ) 440 (133,254 ) Income (loss) before taxes $ (6,760 ) $ 113,340 $ 55,905 $ 162,485 $ (116,841 ) $ — $ 45,644 Depreciation and amortization 7,939 5,161 7,314 $ 20,414 6,213 — $ 26,627 Total assets $ 14,423,073 $ 1,879,284 $ 271,056 16,573,413 $ 748,090 $ — 17,321,503 For the six months ended June 30, 2014 Servicing Originations Xome Total Operating Corporate and Other Eliminations Consolidated REVENUES: Service related $ 547,043 $ 27,949 $ 143,140 $ 718,132 $ 1,142 $ (746 ) $ 718,528 Net gain on mortgage loans held for sale 34,502 267,401 — 301,903 (1,051 ) — 300,852 Total revenues 581,545 295,350 143,140 1,020,035 91 (746 ) 1,019,380 Total expenses 353,900 202,134 81,842 637,876 29,968 — 667,844 Other income (expense): Interest income 40,822 38,848 — 79,670 6,468 746 86,884 Interest expense (150,813 ) (39,248 ) (144 ) (190,205 ) (105,817 ) — (296,022 ) Gain (loss) on interest rate swaps and caps 1,361 — — 1,361 507 — 1,868 Total other income (expense) (108,630 ) (400 ) (144 ) (109,174 ) (98,842 ) 746 (207,270 ) Income (loss) before taxes $ 119,015 $ 92,816 $ 61,154 $ 272,985 $ (128,719 ) $ — $ 144,266 Depreciation and amortization 8,587 6,705 1,822 $ 17,114 3,287 — $ 20,401 Total assets $ 7,622,720 $ 2,474,838 $ 55,441 10,152,999 $ 1,014,775 $ — 11,167,774 |
Guarantor Financial Statement I
Guarantor Financial Statement Information | 6 Months Ended |
Jun. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Guarantor Financial Statement Information | . Guarantor Financial Statement Information As of June 30, 2015 , 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 consolidating financial statements of Nationstar, Nationstar Mortgage LLC and the guarantor subsidiaries for the periods indicated. In the 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 JUNE 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ — $ 535,026 $ 921 $ 26,992 $ — $ 562,939 Restricted cash — 197,842 — 190,072 — 387,914 Mortgage servicing rights — 3,360,322 — — — 3,360,322 Advances — 2,348,110 — 4 — 2,348,114 Reverse mortgage interests — 6,876,290 — 548,275 — 7,424,565 Mortgage loans held for sale — 1,827,592 — 78,418 — 1,906,010 Mortgage loans held for investment, net — 1,176 — 181,154 — 182,330 Property and equipment, net — 109,584 835 23,736 — 134,155 Derivative financial instruments — 102,247 — 6,018 — 108,265 Other assets 10,180 (868,494 ) 269,432 1,495,771 — 906,889 Investment in subsidiaries 1,746,811 497,118 — — (2,243,929 ) — Total assets $ 1,756,991 $ 14,986,813 $ 271,188 $ 2,550,440 $ (2,243,929 ) $ 17,321,503 Liabilities and stockholders’ equity Unsecured Senior Notes $ — $ 2,158,392 $ — $ — $ — $ 2,158,392 Advance facilities — 244,158 — 1,582,294 — 1,826,452 Warehouse facilities — 2,078,260 — 74,655 — 2,152,915 Payables and accrued liabilities — 1,332,354 1,559 56,294 — 1,390,207 MSR related liabilities - nonrecourse — 1,287,140 — — — 1,287,140 Derivative financial instruments — 7,859 — — — 7,859 Mortgage servicing liabilities — 47,775 — — — 47,775 Payables to Affiliates 1,850,758 864 100,751 (1,952,373 ) — Other nonrecourse debt — 6,084,064 — 609,708 — 6,693,772 Total liabilities — 15,090,760 2,423 2,423,702 (1,952,373 ) 15,564,512 Total equity 1,756,991 (103,947 ) 268,765 126,738 (291,556 ) 1,756,991 Total liabilities and equity $ 1,756,991 $ 14,986,813 $ 271,188 $ 2,550,440 $ (2,243,929 ) $ 17,321,503 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related $ — $ 330,574 $ (2,294 ) $ 129,221 $ 222 $ 457,723 Net gain on mortgage loans held for sale — 152,948 — 10,938 — 163,886 Total Revenues — 483,522 (2,294 ) 140,159 222 621,609 Expenses: Salaries, wages and benefits — 141,329 73 56,954 — 198,356 General and administrative — 193,416 144 49,069 — 242,629 Total expenses — 334,745 217 106,023 — 440,985 Other income (expense): Interest income — 77,930 — 9,447 (222 ) 87,155 Interest expense — (130,960 ) — (16,903 ) — (147,863 ) Gain on interest rate swaps and caps — 11 — 84 — 95 Gain/(loss) from subsidiaries 74,563 23,165 — — (97,728 ) — Total other income (expense) 74,563 (29,854 ) — (7,372 ) (97,950 ) (60,613 ) Income/(loss) before taxes 74,563 118,923 (2,511 ) 26,764 (97,728 ) 120,011 Income tax expense (benefit) — 42,840 1,323 8 — 44,171 Net income/(loss) 74,563 76,083 (3,834 ) 26,756 (97,728 ) 75,840 Less: Net gain attributable to noncontrolling interests — 1,524 — (243 ) — 1,281 Net income/(loss) excluding noncontrolling interests $ 74,563 $ 74,559 $ (3,834 ) $ 26,999 $ (97,728 ) $ 74,559 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related $ — $ 432,753 $ (2,639 ) $ 242,732 $ — $ 672,846 Net gain on mortgage loans held for sale — 309,795 — 21,085 — 330,880 Total Revenues — 742,548 (2,639 ) 263,817 — 1,003,726 Expenses: Salaries, wages and benefits — 269,763 427 106,922 — 377,112 General and administrative — 357,947 194 89,575 — 447,716 Total expenses — 627,710 621 196,497 — 824,828 Other income (expense): Interest income — 114,050 — 16,879 — 130,929 Interest expense — (230,827 ) — (32,684 ) — (263,511 ) Gain on interest rate swaps and caps — 45 — (717 ) — (672 ) Gain/(loss) from subsidiaries 26,244 46,374 — — (72,618 ) — Total other income (expense) 26,244 (70,358 ) — (16,522 ) (72,618 ) (133,254 ) Income/(loss) before taxes 26,244 44,480 (3,260 ) 50,798 (72,618 ) 45,644 Income tax expense (benefit) — 15,315 1,323 8 — 16,646 Net income/(loss) 26,244 29,165 (4,583 ) 50,790 (72,618 ) 28,998 Less: Net gain attributable to noncontrolling interests — 2,921 — (167 ) — 2,754 Net income/(loss) excluding noncontrolling interests $ 26,244 $ 26,244 $ (4,583 ) $ 50,957 $ (72,618 ) $ 26,244 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities: Net income/(loss) $ 26,244 $ 26,244 $ (4,583 ) $ 50,957 $ (72,618 ) $ 26,244 Reconciliation of net income to net cash attributable to operating activities: (Gain)/loss from subsidiaries (26,244 ) (46,374 ) — — 72,618 — Share-based compensation — 11,313 — — — 11,313 Excess tax benefit from share based compensation — (1,095 ) — — — (1,095 ) Net (gain)/loss on mortgage loans held for sale — (309,795 ) — (21,085 ) — (330,880 ) Mortgage loans originated and purchased, net of fees — (9,883,868 ) — — — (9,883,868 ) Proceeds on sale of and payments of mortgage loans held for sale and held for investment — 9,448,896 — (19,011 ) — 9,429,885 Gain (loss) on swaps and caps — (45 ) — 717 — 672 Depreciation and amortization — 19,314 — 7,313 — 26,627 Amortization/accretion of premiums/discounts — (4,574 ) — (616 ) — (5,190 ) Fair value changes in excess spread financing — 38,951 — — — 38,951 Fair value changes and amortization/accretion of mortgage servicing rights — 183,042 — — — 183,042 Fair value change in mortgage servicing rights financing liability — 9,640 — — — 9,640 Changes in assets and liabilities: Advances — 215,345 — 2,293 — 217,638 Reverse mortgage interests — 82,558 — (207,007 ) — (124,449 ) Other assets 293,481 3,682 (231,526 ) — 65,637 Payables and accrued liabilities — 37,062 1,534 101 — 38,697 Net cash attributable to operating activities — 120,095 633 (417,864 ) — (297,136 ) Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities: Property and equipment additions, net of disposals — (13,069 ) — (13,982 ) — (27,051 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (500,041 ) — — — (500,041 ) Purchases of reverse mortgage servicing rights and interests — (4,815,684 ) — — — (4,815,684 ) Proceeds from sale of servicer advances — — — — — — Acquisitions, net — — — (45,276 ) — (45,276 ) Net cash attributable to investing activities — (5,328,794 ) — (59,258 ) — (5,388,052 ) Financing activities: Transfers to/from restricted cash — (20,751 ) — (81,633 ) — (102,384 ) Issuance of common stock, net of issuance costs — 497,761 — — — 497,761 Debt financing costs — (10,639 ) — — — (10,639 ) Increase (decrease) in advance facilities — 538,266 — 42,027 — 580,293 Increase (decrease) in warehouse facilities — (326,634 ) — 251,303 — (75,331 ) Proceeds from 2014-1 and 2015-1 HECM Securitization — — — 342,403 — 342,403 Repayment of 2014-1 and 2015-1 HECM Securitization — — — (63,013 ) — (63,013 ) Issuance of excess spread financing — 258,196 — — — 258,196 Repayment of excess servicing spread financing — (100,228 ) — — — (100,228 ) Increase in participating interest financing in reverse mortgage interests — 4,633,093 — — — 4,633,093 Proceeds from mortgage servicing rights financing — — — — — — Repayment of nonrecourse debt–Legacy assets — — — (5,917 ) — (5,917 ) Excess tax benefit from share-based compensation — 1,095 — — — 1,095 Surrender of shares relating to stock vesting (6,204 ) — — — (6,204 ) Net cash attributable to financing activities — 5,463,955 — 485,170 — 5,949,125 Net increase in cash and cash equivalents — 255,256 633 8,048 — 263,937 Cash and cash equivalents at beginning of period — 279,770 288 18,944 — 299,002 Cash and cash equivalents at end of period $ — $ 535,026 $ 921 $ 26,992 $ — $ 562,939 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2014 Nationstar Issuer Guarantor (Subsidiaries) Non-Guarantor (Subsidiaries) Eliminations Consolidated Assets 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 — 2,111,801 — 341,268 — 2,453,069 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 1,069,061 272,654 1,328,078 (1,808,947 ) 877,229 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 members’ equity Advance facilities $ — $ 570,792 $ — $ 1,330,991 $ — $ 1,901,783 Warehouse facilities — 1,539,994 — 32,628 — 1,572,622 Unsecured Senior Notes — 2,159,231 — — — 2,159,231 Payables and accrued liabilities — 1,282,895 25 39,158 — 1,322,078 Payables to affiliates — 1,683,606 894 124,447 (1,808,947 ) — Derivative financial instruments — 18,525 — — — 18,525 MSR related liabilities - nonrecourse — 1,080,465 — — — 1,080,465 Mortgage servicing liabilities — 65,382 — — — 65,382 Other nonrecourse debt — 1,433,145 — 335,166 — 1,768,311 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 INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related $ — $ 295,419 $ 31,127 $ 72,892 $ (22,621 ) $ 376,817 Net gain on mortgage loans held for sale — 150,660 — 3 22,253 172,916 Total Revenues — 446,079 31,127 72,895 (368 ) 549,733 Expenses: Salaries, wages and benefits — 139,146 1,811 13,095 — 154,052 General and administrative — 156,752 3,805 32,102 — 192,659 Total expenses — 295,898 5,616 45,197 — 346,711 Other income / (expense): Interest income — 38,145 — 4,428 368 42,941 Interest expense — (126,535 ) — (12,887 ) — (139,422 ) Gain/(loss) on interest rate swaps and caps — 242 — (1,195 ) — (953 ) Gain / (loss) from subsidiaries 105,396 43,555 — — (148,951 ) — Total other income / (expense) 105,396 (44,593 ) — (9,654 ) (148,583 ) (97,434 ) Income before taxes 105,396 105,588 25,511 18,044 (148,951 ) 105,588 Income tax expense/(benefit) 38,941 — — — — 38,941 Net Income/(loss) 66,455 105,588 25,511 18,044 (148,951 ) 66,647 Less: Net gain attributable to noncontrolling interests — 192 — — — 192 Net income/(loss) excluding noncontrolling interests $ 66,455 $ 105,396 $ 25,511 $ 18,044 $ (148,951 ) $ 66,455 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related $ — $ 567,348 $ 58,555 $ 129,698 $ (37,073 ) $ 718,528 Net gain on mortgage loans held for sale — 264,549 — (24 ) 36,327 300,852 Total Revenues — 831,897 58,555 129,674 (746 ) 1,019,380 Expenses: Salaries, wages and benefits — 282,504 3,507 24,636 — 310,647 General and administrative — 290,477 4,696 62,024 — 357,197 Total expenses — 572,981 8,203 86,660 — 667,844 Other income / (expense): Interest income — 77,855 — 8,283 746 86,884 Interest expense — (261,013 ) — (35,009 ) — (296,022 ) Gain/(loss) on interest rate swaps and caps — 507 — 1,361 — 1,868 Gain / (loss) from subsidiaries 144,433 68,001 — — (212,434 ) — Total other income / (expense) 144,433 (114,650 ) — (25,365 ) (211,688 ) (207,270 ) Income before taxes 144,433 144,266 50,352 17,649 (212,434 ) 144,266 Income tax expense/(benefit) 53,942 — — — — 53,942 Net Income/(loss) 90,491 144,266 50,352 17,649 (212,434 ) 90,324 Less: Net gain attributable to noncontrolling interests — (167 ) — — — (167 ) Net income/(loss) excluding noncontrolling interests $ 90,491 $ 144,433 $ 50,352 $ 17,649 $ (212,434 ) $ 90,491 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities: Net income/(loss) $ 90,491 $ 144,433 $ 50,352 $ 17,649 $ (212,434 ) $ 90,491 Reconciliation of net income to net cash attributable to operating activities: (Gain)/loss from subsidiaries (144,433 ) (68,001 ) — — 212,434 — Share-based compensation — 6,868 — — — 6,868 Excess tax benefit from share based compensation — (2,189 ) — — — (2,189 ) Net (gain)/loss on mortgage loans held for sale — (264,549 ) — 24 (36,327 ) (300,852 ) Mortgage loans originated and purchased, net of fees — (11,470,908 ) — — — (11,470,908 ) Proceeds on sale of and payments of mortgage loans held for sale and held for investment — 12,043,737 — 9,274 36,327 12,089,338 Gain (loss) on swaps and caps — (507 ) — (1,361 ) — (1,868 ) Cash settlement on derivative financial instruments — — — 1,352 — 1,352 Depreciation and amortization — 18,577 84 1,740 — 20,401 Amortization/accretion of premiums/discounts — 14,389 — (1,352 ) — 13,037 Fair value changes in excess spread financing — 23,767 — — — 23,767 Fair value changes and amortization/accretion of mortgage servicing rights — 123,573 — — — 123,573 Fair value change in mortgage servicing rights financing liability — (49,257 ) — — — (49,257 ) Changes in assets and liabilities: Advances — (3,232,195 ) — 4,001,949 — 769,754 Reverse mortgage interests — (413,478 ) — — — (413,478 ) Other assets 4,756 1,852,546 (48,708 ) (1,585,478 ) — 223,116 Payables and accrued liabilities 53,941 (320,185 ) (4,779 ) 10,457 — (260,566 ) Net cash attributable to operating activities 4,755 (1,593,379 ) (3,051 ) 2,454,254 — 862,579 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities: Property and equipment additions, net of disposals — (14,175 ) (112 ) (9,391 ) — (23,678 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (187,803 ) — — — (187,803 ) Proceeds from sale of servicer advances — 512,527 — — — 512,527 Acquisitions, net — (18,000 ) — — — (18,000 ) Net cash attributable to investing activities — 292,549 (112 ) (9,391 ) — 283,046 Financing activities: Transfers to/from restricted cash — 94,268 — 147,155 — 241,423 Issuance of common stock, net of issuance costs — — — — — — Debt financing costs — (9,153 ) — — — (9,153 ) Increase (decrease) in advance facilities — 1,196,768 — (2,577,561 ) — (1,380,793 ) Increase (decrease) in warehouse facilities — (76,148 ) — — — (76,148 ) Issuance of excess spread financing — 111,118 — — — 111,118 Repayment of excess servicing spread financing — (85,257 ) — — — (85,257 ) Increase in participating interest financing in reverse mortgage interests — 192,355 — — — 192,355 Proceeds from mortgage servicing rights financing — 52,835 — — — 52,835 Repayment of nonrecourse debt–Legacy assets — — — (7,414 ) — (7,414 ) Excess tax benefit from share-based compensation — 2,189 — — — 2,189 Surrender of shares relating to stock vesting (4,755 ) — — — — (4,755 ) Net cash attributable to financing activities (4,755 ) 1,478,975 — (2,437,820 ) — (963,600 ) Net increase in cash and cash equivalents — 178,145 (3,163 ) 7,043 — 182,025 Cash and cash equivalents at beginning of period — 422,268 3,907 15,727 — 441,902 Cash and cash equivalents at end of period $ — $ 600,413 $ 744 $ 22,770 $ — $ 623,927 |
Affiliates of Fortress Investme
Affiliates of Fortress Investment Group | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Affiliates of Fortress Investment Group | Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC Newcastle Investment Corp. (Newcastle) Nationstar is the 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 $0.7 billion and $0.8 billion , as of June 30, 2015 and December 31, 2014, respectively. For the three months ended June 30, 2015 and 2014, Nationstar received servicing fees and other performance incentive fees of $0.9 million and $1.0 million , respectively. For the six months ended June 30, 2015 and 2014, Nationstar received servicing fees and other performance incentive fees of $1.8 million and $2.1 million , respectively. New Residential Investment Corp. (New Residential) 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 the fixed base servicing fee, all ancillary revenues associated with servicing such MSRs and the retained portion of the excess 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, during the six months ended June 30, 2015, Nationstar has paid $29.1 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 $1.2 billion and $1.0 billion at June 30, 2015 and December 31, 2014, respectively. Mortgage Servicing Rights Financing Liability 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 third party co-investors 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 base fee component on the related mortgage servicing rights, in exchange for the Purchaser remitting a portion of the base fee to Nationstar in exchange for Nationstar continuing to service the mortgage loans. Nationstar will continue to act as named servicer under each servicing agreement until servicing is transferred to the Purchaser. Once the servicing is transferred under any servicing agreement to the Purchaser, Nationstar will subservice the applicable 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, the Company accounts for the transactions as financings. The fair value of the outstanding liability related to the Sale Agreement was $ 59.1 million and $49.4 million at June 30, 2015 and December 31, 2014, respectively. 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 three and six months ended June 30, 2015 , Nationstar recognized revenue of $0.4 million and $2.1 million , respectively, related to these servicing arrangements. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We evaluated subsequent events through the issuance of these consolidated financial statements and determined that no other material subsequent events have occurred. |
Nature of Business and Basis 27
Nature of Business and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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. |
Basis of Accounting | The interim consolidated financial statements are unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results of the interim periods have been included. The consolidated interim financial statements of Nationstar have been prepared in accordance with generally accepted accounting principles for interim information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (SEC). Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States (GAAP) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Nationstar's Annual Report on Form 10-K filed on February 27, 2015. The results of operations for the interim periods disclosed are not necessarily indicative of the results that may be expected for the full year or any future period. Certain prior period amounts have been reclassified to conform to the current period presentation. Nationstar evaluated subsequent events through the date these interim consolidated financial statements were issued. |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Transfers and Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | The following table provides a breakdown of the total credit and interest sensitive UPBs for Nationstar's owned MSRs. June 30, 2015 December 31, 2014 UPB Fair Value UPB Fair Value Credit Sensitive $ 247,720,305 $ 2,171,954 241,769,601 1,919,290 Interest Sensitive 105,686,989 1,178,344 91,843,044 1,030,449 $ 353,407,294 $ 3,350,298 $ 333,612,645 $ 2,949,739 The activity of MSRs carried at fair value is as follows for the dates indicated: For the six months ended June 30, 2015 2014 Fair value at the beginning of the period 2,949,739 2,488,283 Additions: Servicing resulting from transfers of financial assets 105,506 120,212 Purchases of servicing assets 494,145 193,677 Changes in fair value: Due to changes in valuation inputs or assumptions used in the valuation model 18,347 24,821 Other changes in fair value (217,439 ) (148,859 ) Fair value at the end of the period $ 3,350,298 $ 2,678,134 MSRs and Related Liabilities June 30, 2015 December 31, 2014 MSRs - Fair Value $ 3,350,298 $ 2,949,739 MSRs - LOCOM 10,024 11,582 Mortgage Servicing Rights 3,360,322 2,961,321 Mortgage Servicing Liabilities 47,775 65,382 Excess spread financing - fair value 1,228,070 1,031,035 Mortgage servicing rights financing liability - fair value 59,070 49,430 MSR Related Liabilities (nonrecourse) $ 1,287,140 $ 1,080,465 |
Schedule of Assumptions for Fair Value of Mortgage Service Rights | The weighted average assumptions used in Nationstar's valuation of Mortgage Servicing Rights Financing were as follows: June 30, 2015 December 31, 2014 Advance financing rates 2.79 % 2.79 % Annual advance recovery rates 24.67 % 27.55 % 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 June 30, 2015 Low 7.2% 3.9 years 8.5% 6.8% High 17.3% 8.6 years 14.2% 30.3% December 31, 2014 Low 6.2% 4.0 years 8.5% 6.7% High 19.4% 7.1 years 14.2% 31.3% Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated: Credit Sensitive June 30, 2015 December 31, 2014 Discount rate 11.66 % 11.96 % Total prepayment speeds 17.05 % 18.58 % Expected weighted-average life 5.91 years 5.39 years Interest Sensitive June 30, 2015 December 31, 2014 Discount rate 9.10 % 9.09 % Total prepayment speeds 11.68 % 11.27 % Expected weighted-average life 6.38 years 6.49 years |
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 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 Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change June 30, 2015 Excess spread financing $ 40,932 $ 86,191 $ 33,607 $ 71,308 December 31, 2014 Excess spread financing $ 36,632 $ 75,964 $ 33,618 $ 70,379 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 June 30, 2015 and December 31, 2014 : Discount Rate Total Prepayment Speeds 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change June 30, 2015 Mortgage servicing rights $ (135,060 ) $ (247,779 ) $ (130,260 ) $ (249,466 ) December 31, 2014 Mortgage servicing rights $ (110,900 ) $ (207,295 ) $ (112,603 ) $ (199,078 ) |
Activity of MSRs at Amortized Cost | The activity of MSRs carried at amortized cost is as follows for the dates indicated: For the six months ended June 30, 2015 2014 Assets Liabilities Assets Liabilities Activity of MSRs at amortized cost Balance at the beginning of the period $ 11,582 $ 65,382 $ 14,879 $ 82,521 Additions: Purchase /Assumptions of servicing rights/obligations — — — — Deductions: Amortization/Accretion (1,558 ) (17,607 ) (1,564 ) (2,029 ) Balance at end of the period $ 10,024 $ 47,775 $ 13,315 $ 80,492 Fair value at end of period $ 31,636 $ 39,042 $ 36,997 $ 62,680 |
Advances (Tables)
Advances (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | June 30, 2015 December 31, 2014 Advances $ 2,348,114 $ 2,546,362 |
Reverse Mortgage Interests (Tab
Reverse Mortgage Interests (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Reverse Mortgage Interests [Abstract] | |
Reverse Mortgage Interest | June 30, 2015 December 31, 2014 Participating interests $ 6,015,287 $ 1,363,225 Other interests securitized 548,276 341,268 Unsecuritized interests 874,388 752,801 Allowance for losses - reverse mortgage interests (13,386 ) (4,225 ) Total reverse mortgage interests $ 7,424,565 $ 2,453,069 |
Mortgage Loans Held for Sale 31
Mortgage Loans Held for Sale and Investment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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: June 30, 2015 December 31, 2014 Mortgage loans held for sale – unpaid principal balance $ 1,854,736 $ 1,218,596 Mark-to-market adjustment (1) 51,274 59,335 Total mortgage loans held for sale $ 1,906,010 $ 1,277,931 (1) The mark-to-market adjustment is reflected in net gain on mortgage loans held for sale on our consolidated statements of income and comprehensive income. The total UPB of mortgage loans held for sale on nonaccrual status was as follows for the dates indicated: June 30, 2015 December 31, 2014 Mortgage loans held for sale - unpaid principal balance UPB Fair Value UPB Fair Value Nonaccrual $ 27,381 $ 24,812 $ 31,968 $ 26,022 The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was as follows for the dates indicated: Mortgage loans held for sale - unpaid principal balance June 30, 2015 December 31, 2014 Foreclosure $ 15,706 $ 17,493 The total UPB of mortgage loans held for investment for which the Company has begun formal foreclosure proceedings was as follows for the dates indicated: Mortgage loans held for investment - unpaid principal balance June 30, 2015 December 31, 2014 Foreclosure $ 47,688 $ 52,769 |
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 six months ended June 30, 2015 June 30, 2014 Mortgage loans held for sale – beginning balance $ 1,277,931 $ 2,603,380 Mortgage loans originated and purchased, net of fees 9,854,949 11,470,908 Proceeds on sale of and payments of mortgage loans held for sale (9,420,331 ) (12,089,338 ) Gain on Sale of Mortgage Loans (1) 196,727 241,971 Transfer of mortgage loans held for sale to held for investment or other assets (3,266 ) (2,100 ) Mortgage loans held for sale – ending balance $ 1,906,010 $ 2,224,821 |
Schedule of Loans Held for Investment | Mortgage loans held for investment, net as of the dates indicated include: June 30, 2015 December 31, 2014 Mortgage loans held for investment, net – unpaid principal balance $ 263,581 $ 276,820 Transfer discount: Accretable (13,825 ) (15,503 ) Non-accretable (63,877 ) (66,217 ) Allowance for loan losses (3,549 ) (3,531 ) Total mortgage loans held for investment, net $ 182,330 $ 191,569 |
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 six months ended June 30, 2015 For the year ended December 31, 2014 Accretable Yield Balance at the beginning of the period $ 15,503 $ 17,362 Accretion (1,406 ) (2,955 ) Reclassifications from (to) nonaccretable discount (272 ) 1,096 Balance at the end of the period $ 13,825 $ 15,503 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following: June 30, 2015 December 31, 2014 Receivables from trusts, agencies and prior servicers, net $ 389,583 $ 386,166 Accrued revenues 161,110 154,436 Loans subject to repurchase right from Ginnie Mae 133,928 131,592 Goodwill 68,479 54,701 Deferred financing costs 49,344 46,986 Intangible assets 46,633 19,622 Prepaid expenses 12,559 9,837 Accrued interest 1,644 1,890 Real estate owned (REO), net 1,713 1,625 Other 41,896 70,374 Total other assets $ 906,889 $ 877,229 |
Derivative Financial Instrume33
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 Dates Outstanding Notional Fair Value Recorded Gains / (Losses) For the six months ended June 30, 2015 ASSETS MORTGAGE LOANS HELD FOR SALE Loan sale commitments 2015 $ 1,000 $ 37 $ 41 DERIVATIVE FINANCIAL INSTRUMENTS IRLCs 2015 2,998,234 81,205 (6,660 ) Forward MBS trades 2015 3,138,409 22,864 22,580 LPCs 2015 313,444 4,196 2,197 Interest rate and caps 2015-2016 1,200,000 — — LIABILITIES DERIVATIVE FINANCIAL INSTRUMENTS IRLCs 2015 43,129 206 (199 ) Forward MBS trades 2015 1,386,757 3,691 14,669 LPCs 2015 559,260 3,787 (3,739 ) Interest rate swaps and caps 2017 29,958 57 (672 ) Eurodollar futures 2015-2017 120,000 118 (111 ) 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 2017 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 ) |
Indebtedness (Tables)
Indebtedness (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes Payable June 30, 2015 December 31, 2014 Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged Advance Facilities MBS advance financing facility LIBOR+2.50% to 4.00% March 2016 Servicing advance receivables $ 130,000 $ 63,770 $ 69,505 $ 363,014 $ 418,126 Securities repurchase facility (2011) LIBOR +3.50% 90 day revolving Nonrecourse debt - Legacy Assets — 35,058 55,603 34,613 55,603 Nationstar agency advance financing facility (1) LIBOR+1.20% to 3.75% October 2015 Servicing advance receivables 1,300,000 1,061,500 1,195,152 805,706 885,115 MBS advance financing facility (2012) LIBOR+5.00% April 2016 Servicing advance receivables 50,000 45,510 54,441 42,472 50,758 Nationstar Mortgage Advance Receivable LIBOR+1.15% to 5.30% June 2018 Servicing advance receivables 500,000 411,563 475,978 419,170 471,243 MBS servicer advance facility (2014) LIBOR+3.50% September 2015 Servicing advance receivables 100,000 99,820 166,954 79,084 138,010 Nationstar servicer advance receivables trust 2014 - BC LIBOR+1.50% to 3.00% November 2015 Servicing advance receivables 200,000 109,231 120,719 106,115 121,030 Securities repurchase facility (2014) LIBOR+1.50% to 2.00% November 2017 Securities — — — 51,609 74,525 $ 1,826,452 $ 2,138,352 $ 1,901,783 $ 2,214,410 June 30, 2015 December 31, 2014 Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged Warehouse Facilities $1.3 billion warehouse facility LIBOR+2.00% to 2.875% October 2015 Mortgage loans or MBS $ 1,300,000 $ 710,840 $ 757,426 $ 663,167 $ 697,257 $1.0 billion warehouse facility LIBOR+1.75% to 3.25% June 2016 Mortgage loans or MBS 1,000,000 619,540 675,637 307,294 320,285 $500 million warehouse facility LIBOR+1.75% to 2.75% September 2015 Mortgage loans or MBS 500,000 299,800 307,209 176,194 179,994 $500 million warehouse facility LIBOR+ 1.50% to 2.00% July 2015 Mortgage loans or MBS 500,000 292,608 310,047 183,290 192,990 $350 million warehouse facility LIBOR+2.20% to 4.50% March 2016 Mortgage loans or MBS 350,000 115,443 124,151 210,049 223,849 $200 million warehouse facility LIBOR+1.50% April 2016 Mortgage loans or MBS 200,000 40,029 42,560 — — $75 million warehouse facility (HCM) (2) LIBOR+ 2.25% to 2.875% October 2015 Mortgage loans or MBS 75,000 49,337 51,944 23,949 29,324 $50 million warehouse facility (HCM) LIBOR + 2.50% to 2.75% November 2015 Mortgage loans or MBS 50,000 25,318 26,381 8,679 9,044 ASAP+ facility LIBOR+1.50% Up to 45 days GSE mortgage loans or GSE MBS — — — — — $ 2,152,915 $ 2,295,355 $ 1,572,622 $ 1,652,743 Mortgage loans $ 1,735,473 $ 1,842,445 $ 1,196,956 $ 1,241.043 Reverse mortgage interests $ 417,442 $ 452,910 $ 375,666 $ 411,700 (1) This facility has both variable funding notes (VFN) and term notes. Nationstar issued $300.0 million in term notes to institutional investors of which $100.0 million remains outstanding. The notes have a weighted average interest rate of 2.20% and a weighted average term of 5 years . (2) This facility is a sublimit of the $1.3 billion facility specific to Home Community Mortgage (HCM). A summary of the balances of other nonrecourse debt is presented below: June 30, 2015 December 31, 2014 Participating interest financing $ 6,084,064 $ 1,433,145 2014-1 HECM securitization 275,138 259,328 2015-1 HECM securitization 263,901 — Nonrecourse debt - Legacy Assets 70,669 75,838 Total $ 6,693,772 $ 1,768,311 |
Schedule of Unsecured Senior Notes | A summary of the balances of Unsecured Senior Notes is presented below: June 30, 2015 December 31, 2014 $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 378,153 378,555 $400 million face value, 7.875% interest rate payable semi-annually, due October 2020 400,495 400,541 $600 million face value, 6.500% interest rate payable semi-annually, due July 2021 604,745 605,135 $300 million face value, 6.500% interest rate payable semi-annually, due June 2022 300,000 300,000 Total $ 2,158,392 $ 2,159,231 |
Schedule of Maturities of Long-term Debt | As of June 30, 2015 , 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 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Payables and Accrued Liabilities | Payables and accrued liabilities consist of the following: June 30, 2015 December 31, 2014 Payables to servicing and subservicing investors $ 416,383 $ 329,306 Accrued interest 60,550 59,708 Loans subject to repurchase from Ginnie Mae 133,928 131,592 Taxes 101,810 96,237 Payable to insurance carriers and insurance cancellation reserves 104,749 163,381 Accrued bonus and payroll 74,923 85,366 Repurchase reserves 28,831 29,165 MSR purchases payable including advances 23,098 45,697 Other 445,935 381,626 Total payables and accrued liabilities $ 1,390,207 $ 1,322,078 |
Variable Interest Entities an36
Variable Interest Entities and Securitizations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Variable Interest Entities and Securitizations [Abstract] | |
Schedule of Assets and Liabilities of VIEs Included in Financial Statements | 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: June 30, 2015 December 31, 2014 Total collateral balances $ 3,027,803 $ 3,258,472 Total certificate balances 3,062,887 3,297,256 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: June 30, 2015 December 31, 2014 Transfers Reverse Secured Borrowings Transfers Reverse Secured Borrowings ASSETS Restricted cash $ 169,827 $ 11,956 $ 90,068 $ 15,578 Reverse mortgage interests — 6,563,553 — 1,642,789 Advances 1,791,849 — 1,477,388 — Mortgage loans held for investment, net 181,154 — 189,456 — Derivative financial instruments — — 865 — Other assets 2,726 — 2,678 — Total Assets $ 2,145,556 $ 6,575,509 $ 1,760,455 $ 1,658,367 LIABILITIES Advance facilities $ 1,582,294 $ — $ 1,330,991 $ — Payables and accrued liabilities 1,799 377 1,596 186 Nonrecourse debt–Legacy Assets 70,669 — 75,838 — 2014-1 HECM Securitization — 275,138 — 259,328 2015-1 HECM Securitization — 263,901 — — Participating interest financing — 6,084,064 — 1,433,145 Total Liabilities $ 1,654,762 $ 6,623,480 $ 1,408,425 $ 1,692,659 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 June 30, 2015 June 30, 2014 Unconsolidated securitization trusts $ 730,235 $ 936,178 For the three months ended June 30, For the six months ended June 30, Credit Losses 2015 2014 2015 2014 Unconsolidated securitization trusts $ 57,759 $ 80,890 $ 115,220 $ 147,432 Certain cash flows received from securitization trusts related to the transfers of mortgage loans accounted for as sales for the dates indicated were as follows: For the three months ended June 30, For the six months ended June 30, 2015 2014 2015 2014 Servicing Fees Loan Servicing Fees Loan Servicing Fees Loan Servicing Fees Loan Unconsolidated securitization trusts $ 6,491 $ — $ 10,408 $ — $ 12,864 $ — $ 18,186 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax expense was as follows: For the three months ended June 30, For the six months ended June 30, 2015 2014 2015 2014 Tax expense $ 44,171 $ 38,941 $ 16,646 $ 53,942 Effective tax rate 36.8 % 36.9 % 36.5 % 37.4 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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: June 30, 2015 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 ASSETS Mortgage loans held for sale (1) $ 1,906,010 $ — $ 1,906,010 $ — Mortgage servicing rights (1) 3,350,298 — — 3,350,298 Derivative financial instruments: IRLCs 81,205 — 81,205 — Forward MBS trades 22,864 — 22,864 — LPCs 4,196 — 4,196 — Interest rate swaps and caps — — — — Total assets $ 5,364,573 $ — $ 2,014,275 $ 3,350,298 LIABILITIES Derivative financial instruments IRLCs 206 — 206 — Interest rate swaps and caps 57 — 57 — Forward MBS trades 3,691 — 3,691 — LPCs 3,787 — 3,787 — Eurodollar futures 118 — 118 — Mortgage servicing rights financing 59,070 — — 59,070 Excess spread financing 1,228,070 — — 1,228,070 Total liabilities $ 1,294,999 $ — $ 7,859 $ 1,287,140 December 31, 2014 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 and caps 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 (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 six months ended June 30, 2015 Mortgage servicing rights Excess spread financing Mortgage servicing rights financing Beginning balance $ 2,949,739 $ 1,031,035 $ 49,430 Transfers into Level 3 — — — Transfers out of Level 3 — — — Total gains or losses Included in earnings (199,092 ) 38,951 9,640 Included in other comprehensive income — — — Purchases, issuances, sales and settlements Purchases 494,145 — — Issuances 105,506 258,196 — Sales — — — Settlements — (100,112 ) — Ending balance $ 3,350,298 $ 1,228,070 $ 59,070 ASSETS LIABILITIES For the year ended December 31, 2014 Mortgage servicing rights Excess spread financing Mortgage 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 |
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. June 30, 2015 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 562,939 $ 562,939 $ — $ — Restricted cash 387,914 387,914 — — Mortgage loans held for sale 1,906,010 — 1,906,010 — Mortgage loans held for investment, net 182,330 — — 181,820 Reverse mortgage interests 7,424,565 — — 7,453,656 Derivative financial instruments 108,265 — 108,265 — Financial liabilities: Unsecured Senior Notes 2,158,392 2,127,684 — — Advance Facilities 1,826,452 — 1,826,452 — Warehouse Facilities 2,152,915 — 2,152,915 — Derivative financial instruments 7,859 — 7,859 — Excess spread financing 1,228,070 — — 1,228,070 Mortgage servicing rights financing liability 59,070 — — 59,070 Nonrecourse debt - Legacy assets 70,669 — — 81,335 Participating interest financing 6,084,064 — 6,073,412 — 2014-1 HECM Securitization 275,138 — — 287,801 2015-1 HECM Securitization 263,901 — — 256,988 December 31, 2014 Carrying Amount Fair Value 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 2,453,069 — — 2,432,735 Derivative financial 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 |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 three months ended June 30, 2015 Servicing Originations Xome Total Operating Corporate and Other Eliminations Consolidated REVENUES: Service related $ 320,654 $ 13,428 $ 122,004 $ 456,086 $ 1,855 $ (218 ) $ 457,723 Net gain on mortgage loans held for sale 7,837 156,085 — 163,922 (36 ) — 163,886 Total revenues 328,491 169,513 122,004 620,008 1,819 (218 ) 621,609 Total expenses 209,540 117,159 94,433 421,132 19,853 — 440,985 Other income (expense): Interest income 66,922 16,862 — 83,784 3,153 218 87,155 Interest expense (90,191 ) (14,854 ) (29 ) (105,074 ) (42,789 ) — (147,863 ) Gain (loss) on interest rate swaps and caps 85 — — 85 11 — 95 Total other income (expense) (23,184 ) 2,008 (29 ) (21,205 ) (39,625 ) 218 (60,613 ) Income (loss) before taxes $ 95,767 $ 54,362 $ 27,542 $ 177,671 $ (57,659 ) $ — $ 120,011 Depreciation and amortization $ 4,420 $ 3,006 $ 3,950 $ 11,376 $ 2,397 $ — $ 13,773 Total assets 14,423,073 1,879,284 271,056 16,573,413 748,090 — 17,321,503 For the three months ended June 30, 2014 Servicing Originations Xome Total Operating Corporate and Other Eliminations Consolidated REVENUES: Service related $ 283,645 $ 13,901 $ 79,492 $ 377,038 $ 147 $ (368 ) $ 376,817 Net gain on mortgage loans held for sale 22,094 151,201 — 173,295 (379 ) — 172,916 Total revenues 305,739 165,102 79,492 550,333 (232 ) (368 ) 549,733 Total expenses 187,447 97,084 43,753 328,284 18,427 — 346,711 Other income (expense): Interest income 22,158 17,327 — 39,485 3,088 368 42,941 Interest expense (70,014 ) (16,711 ) (90 ) (86,815 ) (52,607 ) — (139,422 ) Gain (loss) on interest rate swaps and caps (953 ) — — (953 ) — — (953 ) Total other income (expense) (48,809 ) 616 (90 ) (48,283 ) (49,519 ) 368 (97,434 ) Income (loss) before taxes $ 69,483 $ 68,634 $ 35,649 $ 173,766 $ (68,178 ) $ — $ 105,588 Depreciation and amortization $ 4,513 $ 3,469 $ 1,078 $ 9,060 $ 2,549 — $ 11,609 Total assets 7,622,720 $ 2,474,838 55,441 10,152,999 1,014,775 $ — 11,167,774 For the six months ended June 30, 2015 Servicing Originations Xome Total Operating Corporate and Other Eliminations Consolidated REVENUES: Service related $ 420,649 $ 20,490 $ 229,790 $ 670,929 $ 2,358 $ (440 ) $ 672,846 Net gain on mortgage loans held for sale 21,850 307,369 — 329,219 1,661 — 330,880 Total revenues 442,499 327,859 229,790 1,000,148 4,019 (440 ) 1,003,726 Total expenses 391,936 217,409 173,821 783,166 41,662 — 824,828 Other income (expense): Interest income 91,560 32,129 — 123,689 6,799 440 130,929 Interest expense (148,166 ) (29,239 ) (64 ) (177,469 ) (86,042 ) — (263,511 ) Gain (loss) on interest rate swaps and caps (717 ) — — (717 ) 45 — (672 ) Total other income (expense) (57,323 ) 2,890 (64 ) (54,497 ) (79,198 ) 440 (133,254 ) Income (loss) before taxes $ (6,760 ) $ 113,340 $ 55,905 $ 162,485 $ (116,841 ) $ — $ 45,644 Depreciation and amortization 7,939 5,161 7,314 $ 20,414 6,213 — $ 26,627 Total assets $ 14,423,073 $ 1,879,284 $ 271,056 16,573,413 $ 748,090 $ — 17,321,503 For the six months ended June 30, 2014 Servicing Originations Xome Total Operating Corporate and Other Eliminations Consolidated REVENUES: Service related $ 547,043 $ 27,949 $ 143,140 $ 718,132 $ 1,142 $ (746 ) $ 718,528 Net gain on mortgage loans held for sale 34,502 267,401 — 301,903 (1,051 ) — 300,852 Total revenues 581,545 295,350 143,140 1,020,035 91 (746 ) 1,019,380 Total expenses 353,900 202,134 81,842 637,876 29,968 — 667,844 Other income (expense): Interest income 40,822 38,848 — 79,670 6,468 746 86,884 Interest expense (150,813 ) (39,248 ) (144 ) (190,205 ) (105,817 ) — (296,022 ) Gain (loss) on interest rate swaps and caps 1,361 — — 1,361 507 — 1,868 Total other income (expense) (108,630 ) (400 ) (144 ) (109,174 ) (98,842 ) 746 (207,270 ) Income (loss) before taxes $ 119,015 $ 92,816 $ 61,154 $ 272,985 $ (128,719 ) $ — $ 144,266 Depreciation and amortization 8,587 6,705 1,822 $ 17,114 3,287 — $ 20,401 Total assets $ 7,622,720 $ 2,474,838 $ 55,441 10,152,999 $ 1,014,775 $ — 11,167,774 |
Guarantor Financial Statement40
Guarantor Financial Statement Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Consolidating Balance Sheets | NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2014 Nationstar Issuer Guarantor (Subsidiaries) Non-Guarantor (Subsidiaries) Eliminations Consolidated Assets 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 — 2,111,801 — 341,268 — 2,453,069 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 1,069,061 272,654 1,328,078 (1,808,947 ) 877,229 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 members’ equity Advance facilities $ — $ 570,792 $ — $ 1,330,991 $ — $ 1,901,783 Warehouse facilities — 1,539,994 — 32,628 — 1,572,622 Unsecured Senior Notes — 2,159,231 — — — 2,159,231 Payables and accrued liabilities — 1,282,895 25 39,158 — 1,322,078 Payables to affiliates — 1,683,606 894 124,447 (1,808,947 ) — Derivative financial instruments — 18,525 — — — 18,525 MSR related liabilities - nonrecourse — 1,080,465 — — — 1,080,465 Mortgage servicing liabilities — 65,382 — — — 65,382 Other nonrecourse debt — 1,433,145 — 335,166 — 1,768,311 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 BALANCE SHEET JUNE 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ — $ 535,026 $ 921 $ 26,992 $ — $ 562,939 Restricted cash — 197,842 — 190,072 — 387,914 Mortgage servicing rights — 3,360,322 — — — 3,360,322 Advances — 2,348,110 — 4 — 2,348,114 Reverse mortgage interests — 6,876,290 — 548,275 — 7,424,565 Mortgage loans held for sale — 1,827,592 — 78,418 — 1,906,010 Mortgage loans held for investment, net — 1,176 — 181,154 — 182,330 Property and equipment, net — 109,584 835 23,736 — 134,155 Derivative financial instruments — 102,247 — 6,018 — 108,265 Other assets 10,180 (868,494 ) 269,432 1,495,771 — 906,889 Investment in subsidiaries 1,746,811 497,118 — — (2,243,929 ) — Total assets $ 1,756,991 $ 14,986,813 $ 271,188 $ 2,550,440 $ (2,243,929 ) $ 17,321,503 Liabilities and stockholders’ equity Unsecured Senior Notes $ — $ 2,158,392 $ — $ — $ — $ 2,158,392 Advance facilities — 244,158 — 1,582,294 — 1,826,452 Warehouse facilities — 2,078,260 — 74,655 — 2,152,915 Payables and accrued liabilities — 1,332,354 1,559 56,294 — 1,390,207 MSR related liabilities - nonrecourse — 1,287,140 — — — 1,287,140 Derivative financial instruments — 7,859 — — — 7,859 Mortgage servicing liabilities — 47,775 — — — 47,775 Payables to Affiliates 1,850,758 864 100,751 (1,952,373 ) — Other nonrecourse debt — 6,084,064 — 609,708 — 6,693,772 Total liabilities — 15,090,760 2,423 2,423,702 (1,952,373 ) 15,564,512 Total equity 1,756,991 (103,947 ) 268,765 126,738 (291,556 ) 1,756,991 Total liabilities and equity $ 1,756,991 $ 14,986,813 $ 271,188 $ 2,550,440 $ (2,243,929 ) $ 17,321,503 |
Consolidating Statements of Operations | NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related $ — $ 295,419 $ 31,127 $ 72,892 $ (22,621 ) $ 376,817 Net gain on mortgage loans held for sale — 150,660 — 3 22,253 172,916 Total Revenues — 446,079 31,127 72,895 (368 ) 549,733 Expenses: Salaries, wages and benefits — 139,146 1,811 13,095 — 154,052 General and administrative — 156,752 3,805 32,102 — 192,659 Total expenses — 295,898 5,616 45,197 — 346,711 Other income / (expense): Interest income — 38,145 — 4,428 368 42,941 Interest expense — (126,535 ) — (12,887 ) — (139,422 ) Gain/(loss) on interest rate swaps and caps — 242 — (1,195 ) — (953 ) Gain / (loss) from subsidiaries 105,396 43,555 — — (148,951 ) — Total other income / (expense) 105,396 (44,593 ) — (9,654 ) (148,583 ) (97,434 ) Income before taxes 105,396 105,588 25,511 18,044 (148,951 ) 105,588 Income tax expense/(benefit) 38,941 — — — — 38,941 Net Income/(loss) 66,455 105,588 25,511 18,044 (148,951 ) 66,647 Less: Net gain attributable to noncontrolling interests — 192 — — — 192 Net income/(loss) excluding noncontrolling interests $ 66,455 $ 105,396 $ 25,511 $ 18,044 $ (148,951 ) $ 66,455 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related $ — $ 567,348 $ 58,555 $ 129,698 $ (37,073 ) $ 718,528 Net gain on mortgage loans held for sale — 264,549 — (24 ) 36,327 300,852 Total Revenues — 831,897 58,555 129,674 (746 ) 1,019,380 Expenses: Salaries, wages and benefits — 282,504 3,507 24,636 — 310,647 General and administrative — 290,477 4,696 62,024 — 357,197 Total expenses — 572,981 8,203 86,660 — 667,844 Other income / (expense): Interest income — 77,855 — 8,283 746 86,884 Interest expense — (261,013 ) — (35,009 ) — (296,022 ) Gain/(loss) on interest rate swaps and caps — 507 — 1,361 — 1,868 Gain / (loss) from subsidiaries 144,433 68,001 — — (212,434 ) — Total other income / (expense) 144,433 (114,650 ) — (25,365 ) (211,688 ) (207,270 ) Income before taxes 144,433 144,266 50,352 17,649 (212,434 ) 144,266 Income tax expense/(benefit) 53,942 — — — — 53,942 Net Income/(loss) 90,491 144,266 50,352 17,649 (212,434 ) 90,324 Less: Net gain attributable to noncontrolling interests — (167 ) — — — (167 ) Net income/(loss) excluding noncontrolling interests $ 90,491 $ 144,433 $ 50,352 $ 17,649 $ (212,434 ) $ 90,491 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related $ — $ 330,574 $ (2,294 ) $ 129,221 $ 222 $ 457,723 Net gain on mortgage loans held for sale — 152,948 — 10,938 — 163,886 Total Revenues — 483,522 (2,294 ) 140,159 222 621,609 Expenses: Salaries, wages and benefits — 141,329 73 56,954 — 198,356 General and administrative — 193,416 144 49,069 — 242,629 Total expenses — 334,745 217 106,023 — 440,985 Other income (expense): Interest income — 77,930 — 9,447 (222 ) 87,155 Interest expense — (130,960 ) — (16,903 ) — (147,863 ) Gain on interest rate swaps and caps — 11 — 84 — 95 Gain/(loss) from subsidiaries 74,563 23,165 — — (97,728 ) — Total other income (expense) 74,563 (29,854 ) — (7,372 ) (97,950 ) (60,613 ) Income/(loss) before taxes 74,563 118,923 (2,511 ) 26,764 (97,728 ) 120,011 Income tax expense (benefit) — 42,840 1,323 8 — 44,171 Net income/(loss) 74,563 76,083 (3,834 ) 26,756 (97,728 ) 75,840 Less: Net gain attributable to noncontrolling interests — 1,524 — (243 ) — 1,281 Net income/(loss) excluding noncontrolling interests $ 74,563 $ 74,559 $ (3,834 ) $ 26,999 $ (97,728 ) $ 74,559 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related $ — $ 432,753 $ (2,639 ) $ 242,732 $ — $ 672,846 Net gain on mortgage loans held for sale — 309,795 — 21,085 — 330,880 Total Revenues — 742,548 (2,639 ) 263,817 — 1,003,726 Expenses: Salaries, wages and benefits — 269,763 427 106,922 — 377,112 General and administrative — 357,947 194 89,575 — 447,716 Total expenses — 627,710 621 196,497 — 824,828 Other income (expense): Interest income — 114,050 — 16,879 — 130,929 Interest expense — (230,827 ) — (32,684 ) — (263,511 ) Gain on interest rate swaps and caps — 45 — (717 ) — (672 ) Gain/(loss) from subsidiaries 26,244 46,374 — — (72,618 ) — Total other income (expense) 26,244 (70,358 ) — (16,522 ) (72,618 ) (133,254 ) Income/(loss) before taxes 26,244 44,480 (3,260 ) 50,798 (72,618 ) 45,644 Income tax expense (benefit) — 15,315 1,323 8 — 16,646 Net income/(loss) 26,244 29,165 (4,583 ) 50,790 (72,618 ) 28,998 Less: Net gain attributable to noncontrolling interests — 2,921 — (167 ) — 2,754 Net income/(loss) excluding noncontrolling interests $ 26,244 $ 26,244 $ (4,583 ) $ 50,957 $ (72,618 ) $ 26,244 |
Consolidating Statements of Cash Flows | NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities: Net income/(loss) $ 26,244 $ 26,244 $ (4,583 ) $ 50,957 $ (72,618 ) $ 26,244 Reconciliation of net income to net cash attributable to operating activities: (Gain)/loss from subsidiaries (26,244 ) (46,374 ) — — 72,618 — Share-based compensation — 11,313 — — — 11,313 Excess tax benefit from share based compensation — (1,095 ) — — — (1,095 ) Net (gain)/loss on mortgage loans held for sale — (309,795 ) — (21,085 ) — (330,880 ) Mortgage loans originated and purchased, net of fees — (9,883,868 ) — — — (9,883,868 ) Proceeds on sale of and payments of mortgage loans held for sale and held for investment — 9,448,896 — (19,011 ) — 9,429,885 Gain (loss) on swaps and caps — (45 ) — 717 — 672 Depreciation and amortization — 19,314 — 7,313 — 26,627 Amortization/accretion of premiums/discounts — (4,574 ) — (616 ) — (5,190 ) Fair value changes in excess spread financing — 38,951 — — — 38,951 Fair value changes and amortization/accretion of mortgage servicing rights — 183,042 — — — 183,042 Fair value change in mortgage servicing rights financing liability — 9,640 — — — 9,640 Changes in assets and liabilities: Advances — 215,345 — 2,293 — 217,638 Reverse mortgage interests — 82,558 — (207,007 ) — (124,449 ) Other assets 293,481 3,682 (231,526 ) — 65,637 Payables and accrued liabilities — 37,062 1,534 101 — 38,697 Net cash attributable to operating activities — 120,095 633 (417,864 ) — (297,136 ) Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities: Property and equipment additions, net of disposals — (13,069 ) — (13,982 ) — (27,051 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (500,041 ) — — — (500,041 ) Purchases of reverse mortgage servicing rights and interests — (4,815,684 ) — — — (4,815,684 ) Proceeds from sale of servicer advances — — — — — — Acquisitions, net — — — (45,276 ) — (45,276 ) Net cash attributable to investing activities — (5,328,794 ) — (59,258 ) — (5,388,052 ) Financing activities: Transfers to/from restricted cash — (20,751 ) — (81,633 ) — (102,384 ) Issuance of common stock, net of issuance costs — 497,761 — — — 497,761 Debt financing costs — (10,639 ) — — — (10,639 ) Increase (decrease) in advance facilities — 538,266 — 42,027 — 580,293 Increase (decrease) in warehouse facilities — (326,634 ) — 251,303 — (75,331 ) Proceeds from 2014-1 and 2015-1 HECM Securitization — — — 342,403 — 342,403 Repayment of 2014-1 and 2015-1 HECM Securitization — — — (63,013 ) — (63,013 ) Issuance of excess spread financing — 258,196 — — — 258,196 Repayment of excess servicing spread financing — (100,228 ) — — — (100,228 ) Increase in participating interest financing in reverse mortgage interests — 4,633,093 — — — 4,633,093 Proceeds from mortgage servicing rights financing — — — — — — Repayment of nonrecourse debt–Legacy assets — — — (5,917 ) — (5,917 ) Excess tax benefit from share-based compensation — 1,095 — — — 1,095 Surrender of shares relating to stock vesting (6,204 ) — — — (6,204 ) Net cash attributable to financing activities — 5,463,955 — 485,170 — 5,949,125 Net increase in cash and cash equivalents — 255,256 633 8,048 — 263,937 Cash and cash equivalents at beginning of period — 279,770 288 18,944 — 299,002 Cash and cash equivalents at end of period $ — $ 535,026 $ 921 $ 26,992 $ — $ 562,939 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities: Net income/(loss) $ 90,491 $ 144,433 $ 50,352 $ 17,649 $ (212,434 ) $ 90,491 Reconciliation of net income to net cash attributable to operating activities: (Gain)/loss from subsidiaries (144,433 ) (68,001 ) — — 212,434 — Share-based compensation — 6,868 — — — 6,868 Excess tax benefit from share based compensation — (2,189 ) — — — (2,189 ) Net (gain)/loss on mortgage loans held for sale — (264,549 ) — 24 (36,327 ) (300,852 ) Mortgage loans originated and purchased, net of fees — (11,470,908 ) — — — (11,470,908 ) Proceeds on sale of and payments of mortgage loans held for sale and held for investment — 12,043,737 — 9,274 36,327 12,089,338 Gain (loss) on swaps and caps — (507 ) — (1,361 ) — (1,868 ) Cash settlement on derivative financial instruments — — — 1,352 — 1,352 Depreciation and amortization — 18,577 84 1,740 — 20,401 Amortization/accretion of premiums/discounts — 14,389 — (1,352 ) — 13,037 Fair value changes in excess spread financing — 23,767 — — — 23,767 Fair value changes and amortization/accretion of mortgage servicing rights — 123,573 — — — 123,573 Fair value change in mortgage servicing rights financing liability — (49,257 ) — — — (49,257 ) Changes in assets and liabilities: Advances — (3,232,195 ) — 4,001,949 — 769,754 Reverse mortgage interests — (413,478 ) — — — (413,478 ) Other assets 4,756 1,852,546 (48,708 ) (1,585,478 ) — 223,116 Payables and accrued liabilities 53,941 (320,185 ) (4,779 ) 10,457 — (260,566 ) Net cash attributable to operating activities 4,755 (1,593,379 ) (3,051 ) 2,454,254 — 862,579 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities: Property and equipment additions, net of disposals — (14,175 ) (112 ) (9,391 ) — (23,678 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (187,803 ) — — — (187,803 ) Proceeds from sale of servicer advances — 512,527 — — — 512,527 Acquisitions, net — (18,000 ) — — — (18,000 ) Net cash attributable to investing activities — 292,549 (112 ) (9,391 ) — 283,046 Financing activities: Transfers to/from restricted cash — 94,268 — 147,155 — 241,423 Issuance of common stock, net of issuance costs — — — — — — Debt financing costs — (9,153 ) — — — (9,153 ) Increase (decrease) in advance facilities — 1,196,768 — (2,577,561 ) — (1,380,793 ) Increase (decrease) in warehouse facilities — (76,148 ) — — — (76,148 ) Issuance of excess spread financing — 111,118 — — — 111,118 Repayment of excess servicing spread financing — (85,257 ) — — — (85,257 ) Increase in participating interest financing in reverse mortgage interests — 192,355 — — — 192,355 Proceeds from mortgage servicing rights financing — 52,835 — — — 52,835 Repayment of nonrecourse debt–Legacy assets — — — (7,414 ) — (7,414 ) Excess tax benefit from share-based compensation — 2,189 — — — 2,189 Surrender of shares relating to stock vesting (4,755 ) — — — — (4,755 ) Net cash attributable to financing activities (4,755 ) 1,478,975 — (2,437,820 ) — (963,600 ) Net increase in cash and cash equivalents — 178,145 (3,163 ) 7,043 — 182,025 Cash and cash equivalents at beginning of period — 422,268 3,907 15,727 — 441,902 Cash and cash equivalents at end of period $ — $ 600,413 $ 744 $ 22,770 $ — $ 623,927 |
Nature of Business and Basis 41
Nature of Business and Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Real estate owned (REO), net | $ 1,713 | $ 1,625 |
Other Assets | Accounting Standards Update 2014-14 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Real estate owned (REO), net | $ 22,300 | 36,000 |
Reverse Mortgage Interest | Accounting Standards Update 2014-14 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Real estate owned (REO), net | $ 69,400 |
Mortgage Servicing Rights - MSR
Mortgage Servicing Rights - MSRs and Related Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Mortgage Servicing Rights [Line Items] | ||||
MSRs - Fair Value | $ 3,350,298 | $ 2,949,739 | ||
Mortgage servicing rights | 3,360,322 | 2,961,321 | ||
Mortgage servicing liabilities | 47,775 | 65,382 | ||
Excess spread financing - fair value | 1,228,070 | |||
Mortgage servicing rights financing liability - fair value | 59,070 | 49,430 | ||
MSR related liabilities - nonrecourse | 1,287,140 | 1,080,465 | ||
Mortgage servicing rights | ||||
Mortgage Servicing Rights [Line Items] | ||||
MSRs - Fair Value | 3,350,298 | 2,949,739 | ||
MSRs - LOCOM | 10,024 | 11,582 | $ 13,315 | $ 14,879 |
Mortgage servicing liabilities | $ 47,775 | $ 65,382 | $ 80,492 | $ 82,521 |
Mortgage Servicing Rights - UPB
Mortgage Servicing Rights - UPB related to owned MSRs (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Owned Service Loans [Line Items] | ||
MSRs - Fair Value | $ 3,350,298 | $ 2,949,739 |
Mortgage servicing rights | ||
Owned Service Loans [Line Items] | ||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 353,407 | 333,612,645 |
MSRs - Fair Value | 3,350,298 | 2,949,739 |
Credit Sensitive | Mortgage servicing rights | ||
Owned Service Loans [Line Items] | ||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 247,720 | 241,769,601 |
MSRs - Fair Value | 2,171,954 | 1,919,290 |
Interest Rate Sensitive | Mortgage servicing rights | ||
Owned Service Loans [Line Items] | ||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 105,687 | 91,843,044 |
MSRs - Fair Value | $ 1,178,344 | $ 1,030,449 |
Mortgage Servicing Rights - M44
Mortgage Servicing Rights - MSR's at Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Fair value at the beginning of the period | $ 2,949,739 | ||
Fair value at the end of the period | 3,350,298 | $ 2,949,739 | |
Mortgage servicing rights | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Fair value at the beginning of the period | 2,949,739 | $ 2,488,283 | 2,488,283 |
Servicing resulting from transfers of financial assets | 105,506 | 120,212 | 238,292 |
Purchases of servicing assets | 494,145 | 193,677 | 470,543 |
Due to changes in valuation inputs or assumptions used in the valuation model | 18,347 | 24,821 | |
Other changes in fair value | (217,439) | (148,859) | |
Fair value at the end of the period | $ 3,350,298 | $ 2,678,134 | $ 2,949,739 |
Mortgage Servicing Rights - Fai
Mortgage Servicing Rights - Fair Value Assumptions (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Mortgage servicing rights | Credit Sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate | 11.66% | 11.96% |
Total prepayment speeds | 17.05% | 18.58% |
Expected weighted-average life | 5 years 10 months 27 days | 5 years 4 months 20 days |
Mortgage servicing rights | Interest Rate Sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate | 9.10% | 9.09% |
Total prepayment speeds | 11.68% | 11.27% |
Expected weighted-average life | 6 years 4 months 17 days | 6 years 5 months 25 days |
Excess spread financing | Minimum | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Mortgage prepayment speeds | 7.20% | 6.20% |
Average life | 3 years 10 months 24 days | 4 years |
Discount rate | 8.50% | 8.50% |
Recapture Rate | 6.80% | 6.70% |
Excess spread financing | Maximum | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Mortgage prepayment speeds | 17.30% | 19.40% |
Average life | 8 years 7 months 6 days | 7 years 1 month 6 days |
Discount rate | 14.20% | 14.20% |
Recapture Rate | 30.30% | 31.30% |
MSR Financing Liability | Financing rates | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Other Key Assumption Rate or Value | 0.0279 | 0.0279 |
MSR Financing Liability | Recovery rates | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Other Key Assumption Rate or Value | 0.2467 | 0.2755 |
Mortgage Servicing Rights - F46
Mortgage Servicing Rights - Fair Value Sensitivity Analysis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Mortgage servicing rights | ||
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 | $ (130,260) | $ (112,603) |
Total Prepayment Speeds, 20% Adverse Change | (249,466) | (199,078) |
Excess spread financing | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Total Prepayment Speeds, 10% Adverse Change | (33,607) | (33,618) |
Total Prepayment Speeds, 20% Adverse Change | (71,308) | (70,379) |
100 Basis Points | Mortgage servicing rights | ||
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 | (135,060) | (110,900) |
100 Basis Points | Excess spread financing | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Discount Rate, Adverse Change | (40,932) | (36,632) |
200 Basis Points | Mortgage servicing rights | ||
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 | (247,779) | (207,295) |
200 Basis Points | Excess spread financing | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Discount Rate, Adverse Change | $ (86,191) | $ (75,964) |
Mortgage Servicing Rights - M47
Mortgage Servicing Rights - MSR's at Amortized Cost (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||
Fair value at end of period | $ 31,636 | $ 36,997 |
Servicing Liability at Amortized Value [Roll Forward] | ||
Balance at the beginning of the period | 65,382 | |
Balance at end of the period | 47,775 | |
Fair value at end of period | 39,042 | 62,680 |
Mortgage servicing rights | ||
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||
Balance at the beginning of the period | 11,582 | 14,879 |
Purchase /Assumptions of servicing rights/obligations | 0 | 0 |
Amortization/Accretion | (1,558) | (1,564) |
Balance at end of the period | 10,024 | 13,315 |
Servicing Liability at Amortized Value [Roll Forward] | ||
Balance at the beginning of the period | 65,382 | 82,521 |
Purchase /Assumptions of servicing rights/obligations | 0 | 0 |
Amortization/Accretion | 17,607 | 2,029 |
Balance at end of the period | $ 47,775 | $ 80,492 |
Mortgage Servicing Rights - Nar
Mortgage Servicing Rights - Narrative (Details) - Counterparty Name [Domain] - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | |
Factor in repurchasing loans out of HMBS pools | $ 625,000 | |||
MSRs - Fair Value | 3,350,298,000 | $ 2,949,739,000 | ||
Payments to Acquire Mortgage Servicing Rights (MSR) | 500,041,000 | $ 187,803,000 | ||
Reverse mortgage interests | ||||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 31,800,000,000 | 28,000,000,000 | $ 31,500,000,000 | |
Mortgage servicing rights | ||||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 353,407,000 | 333,612,645,000 | ||
Impairment of Intangible Assets, Finite-lived | 0 | 0 | ||
Amortization/Accretion | 17,607,000 | $ 2,029,000 | ||
MSRs - Fair Value | $ 3,350,298,000 | $ 2,949,739,000 |
Advances - Schedule of Accounts
Advances - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Servicer advances, net of purchase discount | $ 2,348,114 | $ 2,546,362 |
Advances - Narrative (Details)
Advances - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Receivables [Abstract] | |||||
Accretion of Service Advances Discount | $ 0 | $ 3.4 | $ 0.3 | $ 8.4 | |
Allowance for Doubtful Accounts Receivable | $ 13.9 | $ 13.9 | $ 9.2 |
Reverse Mortgage Interests - Sc
Reverse Mortgage Interests - Schedule of Reverse Mortgage Interest (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unsecuritized interests | $ 874,388 | $ 752,801 |
Allowance for losses - reverse mortgage interests | 13,386 | 4,225 |
Reverse mortgage interests | 7,424,565 | 2,453,069 |
HMBS Securitized HECM | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse Mortgage Interest Subject to Non-Recourse Debt | 6,015,287 | 1,363,225 |
2014-1 HECM securitization | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse Mortgage Interest Subject to Non-Recourse Debt | $ 548,276 | $ 341,268 |
Reverse Mortgage Interests - Na
Reverse Mortgage Interests - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May. 31, 2015 | Mar. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Nov. 30, 2009 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Purchase of reverse mortgage interests, net of participations sold | $ 4,815,684 | $ 0 | ||||
Non-Recourse Debt | 6,693,772 | $ 1,768,311 | ||||
MSRs - Fair Value | 3,350,298 | 2,949,739 | ||||
Payments to Acquire Mortgage Servicing Rights (MSR) | 500,041 | 187,803 | ||||
Principal amount outstanding on securitized financing | $ 222,000 | |||||
Advance facilities | 1,826,452 | 1,901,783 | ||||
Generation Mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Purchase of reverse mortgage interests, net of participations sold | $ 192,000 | |||||
Acquisition of Reverse Mortgage Interest, Net Assets Acquired | 233,000 | |||||
Reverse Mortgage Interest Subject to Non-Recourse Debt | 4,900,000 | |||||
Non-Recourse Debt | $ 4,600,000 | |||||
Mortgage servicing rights | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Amortization/Accretion | 17,607 | $ 2,029 | ||||
MSRs - Fair Value | 3,350,298 | 2,949,739 | ||||
2014-1 HECM securitization | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Reverse Mortgage Interest Subject to Non-Recourse Debt | 548,276 | 341,268 | ||||
Non-Recourse Debt | 275,138 | 259,328 | ||||
2015-1 HECM Securitization | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-Recourse Debt | $ 263,901 | 0 | ||||
Securitized unpaid principal balance | 269,400 | |||||
Securities Repurchase Facility Class A and Class M | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Proceeds from sale of notes | $ 73,100 | |||||
Notes Payable, Other | 2014-1 HECM securitization | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Principal amount outstanding on securitized financing | 343,600 | |||||
Notes Payable, Other | Securities Repurchase Facility Class A | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Advance facilities | 70,400 | |||||
Notes Payable, Other | Securities Repurchase Facility Class M | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Advance facilities | $ 36,200 |
Mortgage Loans Held for Sale 53
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Mortgage Loans Held for Sale and Investment [Abstract] | ||
Mortgage loans held for sale – unpaid principal balance | $ 1,854,736 | $ 1,218,596 |
Mark-to-market adjustment(1) | 51,274 | 59,335 |
Total mortgage loans held for sale | 1,906,010 | 1,277,931 |
UPB | 27,381 | 31,968 |
Fair Value | 24,812 | 26,022 |
Foreclosure | $ 15,706 | $ 17,493 |
Mortgage Loans Held for Sale 54
Mortgage Loans Held for Sale and Investment - Reconciliation to Cash Flow (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Mortgage loans held for sale – beginning balance | $ 1,277,931 | $ 2,603,380 |
Mortgage loans originated and purchased, net of fees | 9,854,949 | 11,470,908 |
Proceeds on sale of and payments of mortgage loans held for sale | 9,420,331 | 12,089,338 |
Net gain on mortgage loans held for sale | 196,727 | 241,971 |
Transfer of mortgage loans held for sale to held for investment or other assets | 3,266 | 2,100 |
Mortgage loans held for sale – ending balance | $ 1,906,010 | $ 2,224,821 |
Mortgage Loans Held for Sale 55
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net | $ 182,330 | $ 191,569 | |
Mortgage Loans Held for Investment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unpaid principal balance | 263,581 | 276,820 | |
Transfer discount - accretable | (13,825) | (15,503) | $ (17,362) |
Transfer discount - non-accretable | (63,877) | (66,217) | |
Allowance for loan losses | (3,549) | (3,531) | |
Total mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net | $ 182,330 | $ 191,569 |
Mortgage Loans Held for Sale 56
Mortgage Loans Held for Sale and Investment - Accretable Yield (Details) - Mortgage Loans Held for Investment - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at the beginning of the period | $ 15,503 | $ 17,362 |
Accretion | (1,406) | (2,955) |
Reclassifications from (to) nonaccretable discount | (272) | 1,096 |
Balance at the end of the period | $ 13,825 | $ 15,503 |
Mortgage Loans Held for Sale 57
Mortgage Loans Held for Sale and Investment - Foreclosure (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Mortgage Loans Held for Sale and Investment [Abstract] | ||
Mortgage Loans Held for Investment in foreclosure, amount | $ 47,688 | $ 52,769 |
Mortgage Loans Held for Sale 58
Mortgage Loans Held for Sale and Investment - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Servicing Assets at Fair Value [Line Items] | |||
Loans repurchased from securitization pool, during the period | $ 900,000 | $ 2,300,000 | |
Mortgage Loans Held for Investment | |||
Servicing Assets at Fair Value [Line Items] | |||
Reclassifications from (to) nonaccretable discount | $ 272 | $ (1,096) |
Other Assets - Schedule of Othe
Other Assets - Schedule of Others Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Receivables from trusts, agencies and prior servicers, net | $ 389,583 | $ 386,166 |
Accrued revenues | 161,110 | 154,436 |
Loans subject to repurchase right from Ginnie Mae | 133,928 | 131,592 |
Goodwill | 68,479 | 54,701 |
Deferred financing costs | 49,344 | 46,986 |
Intangible assets | 46,633 | 19,622 |
Prepaid expenses | 12,559 | 9,837 |
Accrued interest | 1,644 | 1,890 |
Real estate owned (REO), net | 1,713 | 1,625 |
Other | 41,896 | 70,374 |
Total other assets | $ 906,889 | $ 877,229 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Jun. 30, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Loans subject to repurchase right from Ginnie Mae | $ 133,928 | $ 131,592 | |
Experience 1, Inc | |||
Business Acquisition [Line Items] | |||
Cash payment to acquire business | $ 36,000 | ||
Goodwill acquired | 16,800 | ||
Intangible assets acquired | $ 14,200 | ||
GoPaperless Solutions | |||
Business Acquisition [Line Items] | |||
Goodwill acquired | 4,000 | ||
Intangible assets acquired | $ 10,000 |
Derivative Financial Instrume61
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other Assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Collateral deposits on derivative instruments | $ 13,900 | $ 9,800 |
Interest Rate Cap 1 | Interest Rate Cap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Notional Amount | 800,000 | |
Interest Rate Cap 2 | Interest Rate Cap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Notional Amount | $ 400,000 |
Derivative Financial Instrume62
Derivative Financial Instruments - Derivative Instruments (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Loan Sale Commitment | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | $ 1,000 | $ 1,666 |
Interest Rate Lock Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 2,998,234 | 2,556,169 |
Outstanding Notional - Liability | 43,129 | 865 |
Forward Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 3,138,409 | 319,112 |
Outstanding Notional - Liability | 1,386,757 | 2,958,700 |
Loan Purchase Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 313,444 | 287,089 |
Outstanding Notional - Liability | 559,260 | 30,494 |
Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 1,200,000 | 124,650 |
Outstanding Notional - Liability | 29,958 | 105,681 |
Future | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 40,000 | |
Outstanding Notional - Liability | 120,000 | 80,000 |
Fair Value, Measurements, Recurring | Loan Sale Commitment | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 37 | (4) |
Fair Value, Measurements, Recurring | Interest Rate Lock Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 81,205 | 87,902 |
Fair Value - Liability | 206 | 7 |
Fair Value, Measurements, Recurring | Forward Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 22,864 | 284 |
Fair Value - Liability | 3,691 | 18,360 |
Fair Value, Measurements, Recurring | Loan Purchase Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 4,196 | 1,999 |
Fair Value - Liability | 3,787 | 48 |
Fair Value, Measurements, Recurring | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 0 | 865 |
Fair Value - Liability | 57 | 103 |
Fair Value, Measurements, Recurring | Future | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 1 | |
Fair Value - Liability | 118 | 7 |
Derivative Assets | Loan Sale Commitment | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | 41 | (11) |
Derivative Assets | Interest Rate Lock Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | (6,660) | 774 |
Derivative Assets | Forward Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | 22,580 | (31,982) |
Derivative Assets | Loan Purchase Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | 2,197 | 1,206 |
Derivative Assets | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | 0 | (1,673) |
Derivative Assets | Future | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | 1 | |
Derivative Liabilities | Interest Rate Lock Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | (199) | 2,691 |
Derivative Liabilities | Forward Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | 14,669 | (15,055) |
Derivative Liabilities | Loan Purchase Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | (3,739) | 1,641 |
Derivative Liabilities | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | (672) | 731 |
Derivative Liabilities | Future | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | $ (111) | $ (7) |
Indebtedness - Notes Payable Su
Indebtedness - Notes Payable Summary (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Advance facilities | $ 1,826,452,000 | $ 1,901,783,000 |
Servicing Segment | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Advance facilities | 1,826,452,000 | 1,901,783,000 |
Debt Instrument, Collateral Amount | 2,138,352,000 | 2,214,410,000 |
Servicing Segment | Notes Payable, Other | MBS advance financing facility | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 130,000,000 | |
Advance facilities | 63,770,000 | 363,014,000 |
Debt Instrument, Collateral Amount | 69,505,000 | 418,126,000 |
Servicing Segment | Notes Payable, Other | Securities repurchase facility (2011) | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 0 | |
Advance facilities | 35,058,000 | 34,613,000 |
Debt Instrument, Collateral Amount | 55,603,000 | 55,603,000 |
Servicing Segment | Notes Payable, Other | Nationstar agency advance financing facility (1) | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,300,000,000 | |
Advance facilities | 1,061,500,000 | 805,706,000 |
Debt Instrument, Collateral Amount | 1,195,152,000 | 885,115,000 |
Servicing Segment | Notes Payable, Other | MBS advance financing facility (2012) | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000,000 | |
Advance facilities | 45,510,000 | 42,472,000 |
Debt Instrument, Collateral Amount | 54,441,000 | 50,758,000 |
Servicing Segment | Notes Payable, Other | Nationstar Mortgage Advance Receivable Trust | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 500,000,000 | |
Advance facilities | 411,563,000 | 419,170,000 |
Debt Instrument, Collateral Amount | 475,978,000 | 471,243,000 |
Servicing Segment | Notes Payable, Other | MBS servicer advance facility (2014) | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 100,000,000 | |
Advance facilities | 99,820,000 | 79,084,000 |
Debt Instrument, Collateral Amount | 166,954,000 | 138,010,000 |
Servicing Segment | Notes Payable, Other | Nationstar servicer advance receivables trust 2014 - BC | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000,000 | |
Advance facilities | 109,231,000 | 106,115,000 |
Debt Instrument, Collateral Amount | 120,719,000 | 121,030,000 |
Servicing Segment | Notes Payable, Other | Securities repurchase facility (2014) | ||
Debt Instrument [Line Items] | ||
Advance facilities | 0 | 51,609,000 |
Debt Instrument, Collateral Amount | 0 | 74,525,000 |
Originations Segment | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Advance facilities | 2,152,915,000 | 1,572,622,000 |
Debt Instrument, Collateral Amount | 2,295,355,000 | 1,652,743,000 |
Originations Segment | Notes Payable to Banks | $1.3 billion warehouse facility | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,300,000,000 | |
Advance facilities | 710,840,000 | 663,167,000 |
Debt Instrument, Collateral Amount | 757,426,000 | 697,257,000 |
Originations Segment | Notes Payable to Banks | $1.0 billion warehouse facility | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000,000 | |
Advance facilities | 619,540,000 | 307,294,000 |
Debt Instrument, Collateral Amount | 675,637,000 | 320,285,000 |
Originations Segment | Notes Payable to Banks | $500 million warehouse facility | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 500,000,000 | |
Advance facilities | 299,800,000 | 176,194,000 |
Debt Instrument, Collateral Amount | 307,209,000 | 179,994,000 |
Originations Segment | Notes Payable to Banks | $500 million warehouse facility | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 500,000,000 | |
Advance facilities | 292,608,000 | 183,290,000 |
Debt Instrument, Collateral Amount | 310,047,000 | 192,990,000 |
Originations Segment | Notes Payable to Banks | $350 million warehouse facility | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 350,000,000 | |
Advance facilities | 115,443,000 | 210,049,000 |
Debt Instrument, Collateral Amount | 124,151,000 | 223,849,000 |
Originations Segment | Notes Payable to Banks | $200 million warehouse facility | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000,000 | |
Advance facilities | 40,029,000 | 0 |
Debt Instrument, Collateral Amount | 42,560,000 | 0 |
Originations Segment | Notes Payable to Banks | $75 million warehouse facility (HCM) (2) | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 75,000,000 | |
Advance facilities | 49,337,000 | 23,949,000 |
Debt Instrument, Collateral Amount | 51,944,000 | 29,324,000 |
Originations Segment | Notes Payable to Banks | $50 million warehouse facility (HCM) | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000,000 | |
Advance facilities | 25,318,000 | 8,679,000 |
Debt Instrument, Collateral Amount | 26,381,000 | 9,044,000 |
Originations Segment | Notes Payable to Banks | ASAP facility | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 0 | |
Advance facilities | 0 | 0 |
Debt Instrument, Collateral Amount | 0 | 0 |
Mortgage loans | Originations Segment | ||
Debt Instrument [Line Items] | ||
Advance facilities | 1,735,473,000 | 1,196,956,000 |
Debt Instrument, Collateral Amount | 1,842,445,000 | 1,241,043 |
Reverse mortgage interests | Originations Segment | ||
Debt Instrument [Line Items] | ||
Advance facilities | 417,442,000 | 375,666,000 |
Debt Instrument, Collateral Amount | $ 452,910,000 | $ 411,700,000 |
London Interbank Offered Rate (LIBOR) [Member] | Servicing Segment | Notes Payable, Other | Securities repurchase facility (2011) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Servicing Segment | Notes Payable, Other | MBS advance financing facility (2012) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 5.00% | |
London Interbank Offered Rate (LIBOR) [Member] | Servicing Segment | Notes Payable, Other | MBS servicer advance facility (2014) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Notes Payable to Banks | $200 million warehouse facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Notes Payable to Banks | ASAP facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum | Servicing Segment | Notes Payable, Other | MBS advance financing facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum | Servicing Segment | Notes Payable, Other | Nationstar agency advance financing facility (1) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.20% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum | Servicing Segment | Notes Payable, Other | Nationstar Mortgage Advance Receivable Trust | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.15% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum | Servicing Segment | Notes Payable, Other | Nationstar servicer advance receivables trust 2014 - BC | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum | Servicing Segment | Notes Payable, Other | Securities repurchase facility (2014) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum | Originations Segment | Notes Payable to Banks | $1.3 billion warehouse facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum | Originations Segment | Notes Payable to Banks | $1.0 billion warehouse facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum | Originations Segment | Notes Payable to Banks | $500 million warehouse facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum | Originations Segment | Notes Payable to Banks | $500 million warehouse facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum | Originations Segment | Notes Payable to Banks | $350 million warehouse facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.20% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum | Originations Segment | Notes Payable to Banks | $75 million warehouse facility (HCM) (2) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum | Originations Segment | Notes Payable to Banks | $50 million warehouse facility (HCM) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum | Servicing Segment | Notes Payable, Other | MBS advance financing facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum | Servicing Segment | Notes Payable, Other | Nationstar agency advance financing facility (1) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum | Servicing Segment | Notes Payable, Other | Nationstar Mortgage Advance Receivable Trust | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 5.30% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum | Servicing Segment | Notes Payable, Other | Nationstar servicer advance receivables trust 2014 - BC | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum | Servicing Segment | Notes Payable, Other | Securities repurchase facility (2014) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum | Originations Segment | Notes Payable to Banks | $1.3 billion warehouse facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.875% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum | Originations Segment | Notes Payable to Banks | $1.0 billion warehouse facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum | Originations Segment | Notes Payable to Banks | $500 million warehouse facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum | Originations Segment | Notes Payable to Banks | $500 million warehouse facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum | Originations Segment | Notes Payable to Banks | $350 million warehouse facility | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum | Originations Segment | Notes Payable to Banks | $75 million warehouse facility (HCM) (2) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.875% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum | Originations Segment | Notes Payable to Banks | $50 million warehouse facility (HCM) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |
Secured Debt | Servicing Segment | Notes Payable to Banks | Nationstar agency advance financing facility (1) | ||
Debt Instrument [Line Items] | ||
Debt issued | $ 300,000,000 | |
Long-term Line of Credit | $ 100,000,000 | |
Long-term Debt, Weighted Average Interest Rate | 2.20% | |
Debt Instrument, Term | 5 years |
Indebtedness - Summary of Unsec
Indebtedness - Summary of Unsecured Senior Notes (Details) - USD ($) | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||
Total | $ 2,158,392,000 | $ 2,159,231,000 | |
Unsecured Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt issued | 2,150,000,000 | ||
Unsecured Senior Notes | $475 million face value, 6.500% interest rate payable semi-annually, due August 2018 | |||
Debt Instrument [Line Items] | |||
Total | 475,000,000 | 475,000,000 | |
Debt issued | $ 475,000,000 | ||
Interest Rate | 6.50% | ||
Unsecured Senior Notes | $375 million face value, 9.625% interest rate payable semi-annually, due May 2019 | |||
Debt Instrument [Line Items] | |||
Total | 378,153,000 | 378,555,000 | |
Debt issued | $ 375,000,000 | ||
Interest Rate | 9.625% | ||
Unsecured Senior Notes | $400 million face value, 7.875% interest rate payable semi-annually, due October 2020 | |||
Debt Instrument [Line Items] | |||
Total | 400,495,000 | 400,541,000 | |
Debt issued | $ 400,000,000 | ||
Interest Rate | 7.875% | ||
Unsecured Senior Notes | $600 million face value, 6.500% interest rate payable semi-annually, due July 2021 | |||
Debt Instrument [Line Items] | |||
Total | 604,745,000 | 605,135,000 | |
Debt issued | $ 600,000,000 | ||
Interest Rate | 6.50% | ||
Unsecured Senior Notes | $300 million face value, 6.500% interest rate payable semi-annually, due June 2022 | |||
Debt Instrument [Line Items] | |||
Total | $ 300,000,000 | $ 300,000,000 | |
Debt issued | $ 300,000,000 | ||
Interest Rate | 6.50% |
Indebtedness - Schedule of Note
Indebtedness - Schedule of Notes Maturity (Details) - Unsecured Senior Notes $ in Thousands | Jun. 30, 2015USD ($) |
Expected maturities of long-term debt | |
2,015 | $ 0 |
2,016 | 0 |
2,017 | 0 |
2,018 | 475,000 |
2,019 | 375,000 |
Thereafter | 1,300,000 |
Total | $ 2,150,000 |
Indebtedness - Summary of Other
Indebtedness - Summary of Other Non-Recourse Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Debt Instrument [Line Items] | |||
Non-Recourse Debt | $ 6,693,772 | $ 1,768,311 | |
Participating Interest Financing | |||
Debt Instrument [Line Items] | |||
Non-Recourse Debt | 6,084,064 | 1,433,145 | |
2014-1 HECM securitization | |||
Debt Instrument [Line Items] | |||
Non-Recourse Debt | 275,138 | 259,328 | |
2015-1 HECM Securitization | |||
Debt Instrument [Line Items] | |||
Non-Recourse Debt | 263,901 | 0 | |
Legacy Asset | |||
Debt Instrument [Line Items] | |||
Non-Recourse Debt | $ 70,669 | $ 75,838 | $ 75,800 |
Indebtedness - Narrative (Detai
Indebtedness - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2015 | Jun. 30, 2015 | May. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Nov. 30, 2009 | |
Debt Instrument [Line Items] | ||||||
Maximum percentage redeemable on unsecured debt | 35.00% | |||||
Non-Recourse Debt | $ 6,693,772 | $ 1,768,311 | ||||
Advance facilities | $ 1,826,452 | 1,901,783 | ||||
Principal amount outstanding on securitized financing | $ 222,000 | |||||
Notes Payable, MBS | ||||||
Debt Instrument [Line Items] | ||||||
Minimum interest rate | 0.14% | |||||
Maximum interest rate | 6.98% | |||||
HMBS Securitized HECM | ||||||
Debt Instrument [Line Items] | ||||||
Non-Recourse Debt | $ 539,000 | 259,300 | ||||
Participating Interest Financing | ||||||
Debt Instrument [Line Items] | ||||||
Non-Recourse Debt | 6,084,064 | 1,433,145 | ||||
Nonrecourse Debt | ||||||
Debt Instrument [Line Items] | ||||||
Principal Amount Outstanding | $ 82,300 | 88,200 | ||||
Nonrecourse Debt | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 7.50% | |||||
Legacy Asset | ||||||
Debt Instrument [Line Items] | ||||||
Non-Recourse Debt | $ 70,669 | 75,838 | $ 75,800 | |||
2014-1 HECM securitization | ||||||
Debt Instrument [Line Items] | ||||||
Non-Recourse Debt | 275,138 | 259,328 | ||||
2014-1 HECM securitization | Notes Payable, Other | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount outstanding on securitized financing | 343,600 | |||||
Securities Repurchase Facility Class A | Notes Payable, Other | ||||||
Debt Instrument [Line Items] | ||||||
Advance facilities | 70,400 | |||||
Securities Repurchase Facility Class M | Notes Payable, Other | ||||||
Debt Instrument [Line Items] | ||||||
Advance facilities | 36,200 | |||||
Securities Repurchase Facility Class A and Class M | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from sale of notes | $ 73,100 | |||||
2015-1 HECM Securitization | ||||||
Debt Instrument [Line Items] | ||||||
Non-Recourse Debt | 263,901 | 0 | ||||
Securitized unpaid principal balance | 269,400 | |||||
Securities Pledged as Collateral | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount outstanding on securitized financing | $ 262,100 | $ 268,200 | ||||
Generation Mortgage | ||||||
Debt Instrument [Line Items] | ||||||
Non-Recourse Debt | $ 4,600,000 |
Accounts Payable - Schedule of
Accounts Payable - Schedule of Accounts Payable (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Payables to servicing and subservicing investors | $ 416,383 | $ 329,306 |
Accrued interest | 60,550 | 59,708 |
Loans subject to repurchase from Ginnie Mae | 133,928 | 131,592 |
Taxes | 101,810 | 96,237 |
Payable to insurance carriers and insurance cancellation reserves | 104,749 | 163,381 |
Accrued bonus and payroll | 74,923 | 85,366 |
Repurchase reserves | 28,831 | 29,165 |
MSR purchases payable including advances | 23,098 | 45,697 |
Other | 445,935 | 381,626 |
Total payables and accrued liabilities | $ 1,390,207 | $ 1,322,078 |
Variable Interest Entities an69
Variable Interest Entities and Securitizations - Assets and Liabilities of Consolidated VIEs (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | $ 2,145,556 | $ 1,760,455 |
Reverse Secured Borrowings, Assets, Carrying Amount | 6,575,509 | 1,658,367 |
Liabilities | 1,654,762 | 1,408,425 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 6,623,480 | 1,692,659 |
Residential Mortgage | Restricted Cash | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 169,827 | 90,068 |
Reverse Secured Borrowings, Assets, Carrying Amount | 11,956 | 15,578 |
Residential Mortgage | Reverse mortgage interests | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 0 | 0 |
Reverse Secured Borrowings, Assets, Carrying Amount | 6,563,553 | 1,642,789 |
Residential Mortgage | Accounts Receivable | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 1,791,849 | 1,477,388 |
Reverse Secured Borrowings, Assets, Carrying Amount | 0 | 0 |
Residential Mortgage | Mortgage Loans Held for Investment | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 181,154 | 189,456 |
Reverse Secured Borrowings, Assets, Carrying Amount | 0 | 0 |
Residential Mortgage | Derivative Assets | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 0 | 865 |
Reverse Secured Borrowings, Assets, Carrying Amount | 0 | 0 |
Residential Mortgage | Other Assets | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 2,726 | 2,678 |
Reverse Secured Borrowings, Assets, Carrying Amount | 0 | 0 |
Residential Mortgage | Notes Payable | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 1,582,294 | 1,330,991 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 0 | 0 |
Residential Mortgage | Payables and Accrued Liabilities | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 1,799 | 1,596 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 377 | 186 |
Residential Mortgage | Nonrecourse Debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 70,669 | 75,838 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 0 | 0 |
2014-1 HECM securitization | Residential Mortgage | Other Non-Recourse Debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 275,138 | 259,328 |
2015-1 HECM Securitization | Residential Mortgage | Other Non-Recourse Debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 263,901 | 0 |
HMBS Securitized HECM | Residential Mortgage | Participating Mortgages | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | $ 6,084,064 | $ 1,433,145 |
Variable Interest Entities an70
Variable Interest Entities and Securitizations - Securitization Trusts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Variable Interest Entities and Securitizations [Abstract] | |||||
Total collateral balances | $ 3,027,803 | $ 3,027,803 | $ 3,258,472 | ||
Total certificate balances | 3,062,887 | 3,062,887 | 3,297,256 | ||
Unconsolidated securitization trusts | 730,235 | 730,235 | $ 936,178 | ||
Unconsolidated securitization trusts | $ 57,759 | $ 80,890 | $ 115,220 | $ 147,432 |
Variable Interest Entities an71
Variable Interest Entities and Securitizations - Cash Flows from Securitization Trust (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Variable Interest Entities and Securitizations [Abstract] | ||||
Servicing Fees Received | $ 6,491 | $ 10,408 | $ 12,864 | $ 18,186 |
Loan Repurchases | $ 0 | $ 0 | $ 0 | $ 0 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Class of Stock [Line Items] | |||
Issuance of common stock, net (shares) | 17,500 | ||
Issuance of common stock, net of issuance costs | $ 497,761,000 | $ 0 | |
Share-based compensation | $ 11,313,000 | $ 6,868,000 | |
Solutionstar Segment | |||
Class of Stock [Line Items] | |||
Award Vesting Period | 3 years | ||
Terms of Award | P10Y | ||
Share-based compensation | $ 0 | $ 0 | |
Stock Appreciation Rights (SARs) | Solutionstar Segment | |||
Class of Stock [Line Items] | |||
Grants in Period | 948 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 44,171 | $ 38,941 | $ 16,646 | $ 53,942 |
Effective tax rate | 36.80% | 36.90% | 36.50% | 37.40% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Net deferred tax liability | $ 107 | $ 109.8 |
Valuation allowance on deferred tax asset | $ 6.4 | $ 6.4 |
Fair Value Measurements - Measu
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Mortgage loans held for sale | $ 1,906,010 | $ 1,277,931 |
Mortgage servicing rights | 3,350,298 | 2,949,739 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 59,070 | 49,430 |
Excess spread financing (at fair value) | 1,228,070 | |
Fair Value, Measurements, Recurring | ||
ASSETS | ||
Mortgage loans held for sale | 1,906,010 | 1,277,931 |
Mortgage servicing rights | 2,949,739 | |
Total assets | 5,364,573 | 4,318,721 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 59,070 | 49,430 |
Excess spread financing (at fair value) | 1,228,070 | 1,031,035 |
Total liabilities | 1,294,999 | 1,098,990 |
Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Mortgage loans held for sale | 0 | 0 |
Mortgage servicing rights | 0 | |
Total assets | 0 | 0 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 0 | 0 |
Excess spread financing (at fair value) | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Mortgage loans held for sale | 1,906,010 | 1,277,931 |
Mortgage servicing rights | 0 | |
Total assets | 2,014,275 | 1,368,982 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 0 | 0 |
Excess spread financing (at fair value) | 0 | 0 |
Total liabilities | 7,859 | 18,525 |
Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Mortgage loans held for sale | 0 | 0 |
Mortgage servicing rights | 2,949,739 | |
Total assets | 3,350,298 | 2,949,739 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 59,070 | 49,430 |
Excess spread financing (at fair value) | 1,228,070 | 1,031,035 |
Total liabilities | 1,287,140 | 1,080,465 |
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Fair Value - Asset | 81,205 | 87,902 |
LIABILITIES | ||
Fair Value - Liability | 206 | 7 |
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 | 81,205 | 87,902 |
LIABILITIES | ||
Fair Value - Liability | 206 | 7 |
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 | ||
ASSETS | ||
Fair Value - Asset | 22,864 | 284 |
LIABILITIES | ||
Fair Value - Liability | 3,691 | 18,360 |
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 | 22,864 | 284 |
LIABILITIES | ||
Fair Value - Liability | 3,691 | 18,360 |
Forward Contracts | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Loan Purchase Commitments | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Fair Value - Asset | 4,196 | 1,999 |
LIABILITIES | ||
Fair Value - Liability | 3,787 | 48 |
Loan Purchase Commitments | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Loan Purchase Commitments | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Fair Value - Asset | 4,196 | 1,999 |
LIABILITIES | ||
Fair Value - Liability | 3,787 | 48 |
Loan Purchase Commitments | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Interest Rate Swap | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Fair Value - Asset | 0 | 865 |
LIABILITIES | ||
Fair Value - Liability | 57 | 103 |
Interest Rate Swap | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Interest Rate Swap | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Fair Value - Asset | 0 | 865 |
LIABILITIES | ||
Fair Value - Liability | 57 | 103 |
Interest Rate Swap | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Future | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Fair Value - Asset | 1 | |
LIABILITIES | ||
Fair Value - Liability | 118 | 7 |
Future | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Fair Value - Asset | 0 | |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Future | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Fair Value - Asset | 1 | |
LIABILITIES | ||
Fair Value - Liability | 118 | 7 |
Future | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Fair Value - Asset | 0 | |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Mortgage servicing rights | ||
ASSETS | ||
Mortgage servicing rights | 3,350,298 | $ 2,949,739 |
Mortgage servicing rights | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Mortgage servicing rights | 3,350,298 | |
Mortgage servicing rights | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Mortgage servicing rights | 0 | |
Mortgage servicing rights | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Mortgage servicing rights | 0 | |
Mortgage servicing rights | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Mortgage servicing rights | $ 3,350,298 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Reconciliation (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Excess spread financing | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 1,031,035 | $ 986,410 | $ 986,410 |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Total gains or losses included in earnings | 38,951 | 57,554 | |
Total gains or losses included in other comprehensive income | 0 | 0 | |
Purchases | 0 | 0 | |
Issuances | 258,196 | 171,317 | |
Sales | 0 | 0 | |
Settlements | (100,112) | (184,246) | |
Ending balance | 1,228,070 | 1,031,035 | |
Mortgage servicing rights financing | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 49,430 | 29,874 | 29,874 |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Total gains or losses included in earnings | 9,640 | (33,279) | |
Total gains or losses included in other comprehensive income | 0 | 0 | |
Purchases | 0 | 0 | |
Issuances | 0 | 52,835 | |
Sales | 0 | 0 | |
Settlements | 0 | 0 | |
Ending balance | 59,070 | 49,430 | |
Mortgage servicing rights | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 2,949,739 | 2,488,283 | 2,488,283 |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Total gains or losses included in earnings | (199,092) | (247,379) | |
Total gains or losses included in other comprehensive income | 0 | 0 | |
Purchases of servicing assets | 494,145 | 193,677 | 470,543 |
Servicing resulting from transfers of financial assets | 105,506 | $ 120,212 | 238,292 |
Sales | 0 | 0 | |
Settlements | 0 | 0 | |
Ending balance | $ 3,350,298 | $ 2,949,739 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Financial assets: | |||
Cash and cash equivalents | $ 562,939 | $ 299,002 | |
Restricted Cash and Cash Equivalents | 387,914 | 285,530 | |
Mortgage loans held for sale | 1,906,010 | 1,277,931 | |
Mortgage loans held for investment, net | 182,330 | 191,569 | |
Reverse mortgage interests | 7,424,565 | 2,453,069 | |
Derivative instruments | 108,265 | 91,051 | |
Financial liabilities: | |||
Total | 2,158,392 | 2,159,231 | |
Advance facilities | 1,826,452 | 1,901,783 | |
Warehouse facilities | 2,152,915 | 1,572,622 | |
Derivative financial instruments | 7,859 | 18,525 | |
Excess spread financing | 1,031,035 | ||
Mortgage servicing rights financing liability - fair value | 59,070 | 49,430 | |
Other nonrecourse debt | 6,693,772 | 1,768,311 | |
Fair Value, Measurements, Recurring | |||
Financial assets: | |||
Mortgage loans held for sale | 1,906,010 | 1,277,931 | |
Financial liabilities: | |||
Mortgage servicing rights financing liability - fair value | 59,070 | 49,430 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Financial assets: | |||
Cash and cash equivalents | 562,939 | 299,002 | |
Restricted Cash and Cash Equivalents | 387,914 | 285,530 | |
Mortgage loans held for sale | 0 | 0 | |
Mortgage loans held for investment, net | 0 | 0 | |
Reverse mortgage interests | 0 | 0 | |
Derivative instruments | 0 | 0 | |
Financial liabilities: | |||
Total | 2,127,684 | 2,057,038 | |
Advance facilities | 0 | 0 | |
Warehouse facilities | 0 | 0 | |
Derivative financial instruments | 0 | 0 | |
Excess spread financing | 0 | ||
Mortgage servicing rights financing liability - fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Restricted Cash and Cash Equivalents | 0 | 0 | |
Mortgage loans held for sale | 1,906,010 | 1,277,931 | |
Mortgage loans held for investment, net | 0 | 0 | |
Reverse mortgage interests | 0 | 0 | |
Derivative instruments | 108,265 | 91,051 | |
Financial liabilities: | |||
Total | 0 | 0 | |
Advance facilities | 1,826,452 | 1,901,783 | |
Warehouse facilities | 2,152,915 | 1,572,622 | |
Derivative financial instruments | 7,859 | 18,525 | |
Excess spread financing | 0 | ||
Mortgage servicing rights financing liability - fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Restricted Cash and Cash Equivalents | 0 | 0 | |
Mortgage loans held for sale | 0 | 0 | |
Mortgage loans held for investment, net | 181,820 | 192,865 | |
Reverse mortgage interests | 7,453,656 | 2,432,735 | |
Derivative instruments | 0 | 0 | |
Financial liabilities: | |||
Total | 0 | 0 | |
Advance facilities | 0 | 0 | |
Warehouse facilities | 0 | 0 | |
Derivative financial instruments | 0 | 0 | |
Excess spread financing | 1,031,035 | ||
Mortgage servicing rights financing liability - fair value | 59,070 | 49,430 | |
Legacy Asset | |||
Financial liabilities: | |||
Other nonrecourse debt | 70,669 | 75,838 | $ 75,800 |
Legacy Asset | Fair Value, Measurements, Recurring | Level 1 | |||
Financial liabilities: | |||
Other nonrecourse debt | 0 | 0 | |
Legacy Asset | Fair Value, Measurements, Recurring | Level 2 | |||
Financial liabilities: | |||
Other nonrecourse debt | 0 | 0 | |
Legacy Asset | Fair Value, Measurements, Recurring | Level 3 | |||
Financial liabilities: | |||
Other nonrecourse debt | 81,335 | 86,570 | |
Participating Interest Financing | |||
Financial liabilities: | |||
Other nonrecourse debt | 6,084,064 | 1,433,145 | |
Participating Interest Financing | Fair Value, Measurements, Recurring | Level 1 | |||
Financial liabilities: | |||
Other nonrecourse debt | 0 | 0 | |
Participating Interest Financing | Fair Value, Measurements, Recurring | Level 2 | |||
Financial liabilities: | |||
Other nonrecourse debt | 6,073,412 | 1,423,291 | |
Participating Interest Financing | Fair Value, Measurements, Recurring | Level 3 | |||
Financial liabilities: | |||
Other nonrecourse debt | 0 | 0 | |
2014-1 HECM securitization | |||
Financial liabilities: | |||
Other nonrecourse debt | 275,138 | 259,328 | |
2014-1 HECM securitization | Fair Value, Measurements, Recurring | Level 1 | |||
Financial liabilities: | |||
Other nonrecourse debt | 0 | 0 | |
2014-1 HECM securitization | Fair Value, Measurements, Recurring | Level 2 | |||
Financial liabilities: | |||
Other nonrecourse debt | 0 | 0 | |
2014-1 HECM securitization | Fair Value, Measurements, Recurring | Level 3 | |||
Financial liabilities: | |||
Other nonrecourse debt | 287,801 | 259 | |
2015-1 HECM Securitization | |||
Financial liabilities: | |||
Other nonrecourse debt | 263,901 | $ 0 | |
2015-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 1 | |||
Financial liabilities: | |||
Other nonrecourse debt | 0 | ||
2015-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 2 | |||
Financial liabilities: | |||
Other nonrecourse debt | 0 | ||
2015-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 3 | |||
Financial liabilities: | |||
Other nonrecourse debt | $ 256,988 |
Capital Requirements - Narrativ
Capital Requirements - Narrative (Details) $ in Billions | Jun. 30, 2015USD ($) |
Mortgage Banking [Abstract] | |
Minimum Net Worth Required for Compliance | $ 1 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | ||||||
Legal Fees | $ 16,200,000 | $ 10,300,000 | $ 23,400,000 | $ 15,200,000 | ||
Litigation and Regulatory Matters | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Range of Possible Loss, Minimum | 8,300,000 | 8,300,000 | ||||
Loss Contingency, Range of Possible Loss, Maximum | 20,100,000 | 20,100,000 | ||||
Reverse mortgage interests | ||||||
Loss Contingencies [Line Items] | ||||||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 31,800,000,000 | 31,800,000,000 | $ 31,500,000,000 | $ 28,000,000,000 | ||
Unfunded advance obligations | $ 3,500,000,000 | $ 3,500,000,000 |
Business Segment Reporting - Fi
Business Segment Reporting - Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Service related | $ 457,723 | $ 376,817 | $ 672,846 | $ 718,528 | |
Gain/(loss) on mortgage loans held for sale | 163,886 | 172,916 | 330,880 | 300,852 | |
Total revenues | 621,609 | 549,733 | 1,003,726 | 1,019,380 | |
Total expenses and impairments | 440,985 | 346,711 | 824,828 | 667,844 | |
Interest income | 87,155 | 42,941 | 130,929 | 86,884 | |
Interest expense | (147,863) | (139,422) | (263,511) | (296,022) | |
Gain/(Loss) on interest rate swaps and caps | 95 | (953) | (672) | 1,868 | |
Total other income (expense) | (60,613) | (97,434) | (133,254) | (207,270) | |
Income before taxes | 120,011 | 105,588 | 45,644 | 144,266 | |
Depreciation and amortization | 13,773 | 11,609 | 26,627 | 20,401 | |
Assets | 17,321,503 | 11,167,774 | 17,321,503 | 11,167,774 | $ 11,112,675 |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Service related | 456,086 | 377,038 | 670,929 | 718,132 | |
Gain/(loss) on mortgage loans held for sale | 163,922 | 173,295 | 329,219 | 301,903 | |
Total revenues | 620,008 | 550,333 | 1,000,148 | 1,020,035 | |
Total expenses and impairments | 421,132 | 328,284 | 783,166 | 637,876 | |
Interest income | 83,784 | 39,485 | 123,689 | 79,670 | |
Interest expense | (105,074) | (86,815) | (177,469) | (190,205) | |
Gain/(Loss) on interest rate swaps and caps | 85 | (953) | (717) | 1,361 | |
Total other income (expense) | (21,205) | (48,283) | (54,497) | (109,174) | |
Income before taxes | 177,671 | 173,766 | 162,485 | 272,985 | |
Depreciation and amortization | 11,376 | 9,060 | 20,414 | 17,114 | |
Assets | 16,573,413 | 10,152,999 | 16,573,413 | 10,152,999 | |
Servicing Segment | |||||
Segment Reporting Information [Line Items] | |||||
Service related | 320,654 | 283,645 | 420,649 | 547,043 | |
Gain/(loss) on mortgage loans held for sale | 7,837 | 22,094 | 21,850 | 34,502 | |
Total revenues | 328,491 | 305,739 | 442,499 | 581,545 | |
Total expenses and impairments | 209,540 | 187,447 | 391,936 | 353,900 | |
Interest income | 66,922 | 22,158 | 91,560 | 40,822 | |
Interest expense | (90,191) | (70,014) | (148,166) | (150,813) | |
Gain/(Loss) on interest rate swaps and caps | 85 | (953) | (717) | 1,361 | |
Total other income (expense) | (23,184) | (48,809) | (57,323) | (108,630) | |
Income before taxes | 95,767 | 69,483 | (6,760) | 119,015 | |
Depreciation and amortization | 4,420 | 4,513 | 7,939 | 8,587 | |
Assets | 14,423,073 | 7,622,720 | 14,423,073 | 7,622,720 | |
Originations Segment | |||||
Segment Reporting Information [Line Items] | |||||
Service related | 13,428 | 13,901 | 20,490 | 27,949 | |
Gain/(loss) on mortgage loans held for sale | 156,085 | 151,201 | 307,369 | 267,401 | |
Total revenues | 169,513 | 165,102 | 327,859 | 295,350 | |
Total expenses and impairments | 117,159 | 97,084 | 217,409 | 202,134 | |
Interest income | 16,862 | 17,327 | 32,129 | 38,848 | |
Interest expense | (14,854) | (16,711) | (29,239) | (39,248) | |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | |
Total other income (expense) | 2,008 | 616 | 2,890 | (400) | |
Income before taxes | 54,362 | 68,634 | 113,340 | 92,816 | |
Depreciation and amortization | 3,006 | 3,469 | 5,161 | 6,705 | |
Assets | 1,879,284 | 2,474,838 | 1,879,284 | 2,474,838 | |
Solutionstar Segment | |||||
Segment Reporting Information [Line Items] | |||||
Service related | 122,004 | 79,492 | 229,790 | 143,140 | |
Gain/(loss) on mortgage loans held for sale | 0 | 0 | 0 | 0 | |
Total revenues | 122,004 | 79,492 | 229,790 | 143,140 | |
Total expenses and impairments | 94,433 | 43,753 | 173,821 | 81,842 | |
Interest income | 0 | 0 | 0 | 0 | |
Interest expense | (29) | (90) | (64) | (144) | |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | |
Total other income (expense) | (29) | (90) | (64) | (144) | |
Income before taxes | 27,542 | 35,649 | 55,905 | 61,154 | |
Depreciation and amortization | 3,950 | 1,078 | 7,314 | 1,822 | |
Assets | 271,056 | 55,441 | 271,056 | 55,441 | |
Legacy Portfolio and Other | |||||
Segment Reporting Information [Line Items] | |||||
Service related | 1,855 | 147 | 2,358 | 1,142 | |
Gain/(loss) on mortgage loans held for sale | (36) | (379) | 1,661 | (1,051) | |
Total revenues | 1,819 | (232) | 4,019 | 91 | |
Total expenses and impairments | 19,853 | 18,427 | 41,662 | 29,968 | |
Interest income | 3,153 | 3,088 | 6,799 | 6,468 | |
Interest expense | (42,789) | (52,607) | (86,042) | (105,817) | |
Gain/(Loss) on interest rate swaps and caps | 11 | 0 | 45 | 507 | |
Total other income (expense) | (39,625) | (49,519) | (79,198) | (98,842) | |
Income before taxes | (57,659) | (68,178) | (116,841) | (128,719) | |
Depreciation and amortization | 2,397 | 2,549 | 6,213 | 3,287 | |
Assets | 748,090 | 1,014,775 | 748,090 | 1,014,775 | |
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Service related | (218) | (368) | (440) | (746) | |
Gain/(loss) on mortgage loans held for sale | 0 | 0 | 0 | 0 | |
Total revenues | (218) | (368) | (440) | (746) | |
Total expenses and impairments | 0 | 0 | 0 | 0 | |
Interest income | 218 | 368 | 440 | 746 | |
Interest expense | 0 | 0 | 0 | 0 | |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | |
Total other income (expense) | 218 | 368 | 440 | 746 | |
Income before taxes | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Assets | $ 0 | $ 0 | $ 0 | $ 0 |
Business Segment Reporting - Na
Business Segment Reporting - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Servicing Segment | ||||
Segment Reporting Information [Line Items] | ||||
Adjustment between segments, net income (loss) | $ 4.5 | $ 2.1 | $ 7.7 | $ 2.3 |
Guarantor Financial Statement82
Guarantor Financial Statement Information - Narrative (Details) $ in Thousands | Jun. 30, 2015USD ($)subsidiary | Dec. 31, 2014USD ($) |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||
Total | $ | $ 2,158,392 | $ 2,159,231 |
Guarantor Subsidiary, Ownership Percentage | 100.00% | |
Number of Subsidiaries as Guarantors of Unsecured Debt | 2 |
Guarantor Financial Statement83
Guarantor Financial Statement Information - Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Assets | ||||
Cash and cash equivalents | $ 562,939 | $ 299,002 | $ 623,927 | $ 441,902 |
Restricted cash | 387,914 | 285,530 | ||
Mortgage servicing rights | 3,360,322 | 2,961,321 | ||
Advances | 2,348,114 | 2,546,362 | ||
Reverse mortgage interests | 7,424,565 | 2,453,069 | ||
Mortgage loans held for sale | 1,906,010 | 1,277,931 | 2,224,821 | 2,603,380 |
Mortgage loans held for investment, net | 182,330 | 191,569 | ||
Property and equipment, net | 134,155 | 129,611 | ||
Derivative financial instruments | 108,265 | 91,051 | ||
Other assets | 906,889 | 877,229 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 17,321,503 | 11,112,675 | 11,167,774 | |
Liabilities and shareholders' equity | ||||
Unsecured senior notes | 2,158,392 | 2,159,231 | ||
Advance facilities | 1,826,452 | 1,901,783 | ||
Warehouse facilities | 2,152,915 | 1,572,622 | ||
Payables and accrued liabilities | 1,390,207 | 1,322,078 | ||
MSR related liabilities - nonrecourse | 1,287,140 | 1,080,465 | ||
Derivative financial instruments | 7,859 | 18,525 | ||
Mortgage servicing liabilities | 47,775 | 65,382 | ||
Other nonrecourse debt | (6,693,772) | (1,768,311) | ||
Payables to affiliates | 0 | 0 | ||
Reverse Secured Borrowings, Liabilities, Carrying Amount | 6,623,480 | 1,692,659 | ||
Total liabilities | 15,564,512 | 9,888,397 | ||
Total equity | 1,756,991 | 1,224,278 | 989,898 | |
Total liabilities and equity | 17,321,503 | 11,112,675 | ||
Nationstar | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Advances | 0 | 0 | ||
Reverse mortgage interests | 0 | 0 | ||
Mortgage loans held for sale | 0 | 0 | ||
Mortgage loans held for investment, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Other assets | 10,180 | 16,383 | ||
Investment in subsidiaries | 1,746,811 | 1,207,895 | ||
Total assets | 1,756,991 | 1,224,278 | ||
Liabilities and shareholders' equity | ||||
Unsecured senior notes | 0 | 0 | ||
Advance facilities | 0 | 0 | ||
Warehouse facilities | 0 | 0 | ||
Payables and accrued liabilities | 0 | 0 | ||
MSR related liabilities - nonrecourse | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Mortgage servicing liabilities | 0 | 0 | ||
Other nonrecourse debt | 0 | 0 | ||
Payables to affiliates | 0 | |||
Total liabilities | 0 | 0 | ||
Total equity | 1,756,991 | 1,224,278 | ||
Total liabilities and equity | 1,756,991 | 1,224,278 | ||
Issuer (Parent) | ||||
Assets | ||||
Cash and cash equivalents | 535,026 | 279,770 | 600,413 | 422,268 |
Restricted cash | 197,842 | 177,090 | ||
Mortgage servicing rights | 3,360,322 | 2,961,321 | ||
Advances | 2,348,110 | 2,544,065 | ||
Reverse mortgage interests | 6,876,290 | 2,111,801 | ||
Mortgage loans held for sale | 1,827,592 | 1,243,700 | ||
Mortgage loans held for investment, net | 1,176 | 1,945 | ||
Property and equipment, net | 109,584 | 114,903 | ||
Derivative financial instruments | 102,247 | 87,911 | ||
Other assets | (868,494) | 1,069,061 | ||
Investment in subsidiaries | 497,118 | 450,363 | ||
Total assets | 14,986,813 | 11,041,930 | ||
Liabilities and shareholders' equity | ||||
Unsecured senior notes | 2,158,392 | 2,159,231 | ||
Advance facilities | 244,158 | 570,792 | ||
Warehouse facilities | 2,078,260 | 1,539,994 | ||
Payables and accrued liabilities | 1,332,354 | 1,282,895 | ||
MSR related liabilities - nonrecourse | 1,287,140 | 1,080,465 | ||
Derivative financial instruments | 7,859 | 18,525 | ||
Mortgage servicing liabilities | 47,775 | 65,382 | ||
Other nonrecourse debt | (6,084,064) | (1,433,145) | ||
Payables to affiliates | 1,850,758 | 1,683,606 | ||
Total liabilities | 15,090,760 | 9,834,035 | ||
Total equity | (103,947) | 1,207,895 | ||
Total liabilities and equity | 14,986,813 | 11,041,930 | ||
Guarantor (Subsidiaries) | ||||
Assets | ||||
Cash and cash equivalents | 921 | 288 | 744 | 3,907 |
Restricted cash | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Advances | 0 | 0 | ||
Reverse mortgage interests | 0 | 0 | ||
Mortgage loans held for sale | 0 | 0 | ||
Mortgage loans held for investment, net | 0 | 0 | ||
Property and equipment, net | 835 | 835 | ||
Derivative financial instruments | 0 | 0 | ||
Other assets | 269,432 | 272,654 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 271,188 | 273,777 | ||
Liabilities and shareholders' equity | ||||
Unsecured senior notes | 0 | 0 | ||
Advance facilities | 0 | 0 | ||
Warehouse facilities | 0 | 0 | ||
Payables and accrued liabilities | 1,559 | 25 | ||
MSR related liabilities - nonrecourse | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Mortgage servicing liabilities | 0 | 0 | ||
Other nonrecourse debt | 0 | 0 | ||
Payables to affiliates | 864 | 894 | ||
Total liabilities | 2,423 | 919 | ||
Total equity | 268,765 | 272,858 | ||
Total liabilities and equity | 271,188 | 273,777 | ||
Non-Guarantor (Subsidiaries) | ||||
Assets | ||||
Cash and cash equivalents | 26,992 | 18,944 | 22,770 | 15,727 |
Restricted cash | 190,072 | 108,440 | ||
Mortgage servicing rights | 0 | 0 | ||
Advances | 4 | 2,297 | ||
Reverse mortgage interests | 548,275 | 341,268 | ||
Mortgage loans held for sale | 78,418 | 34,231 | ||
Mortgage loans held for investment, net | 181,154 | 189,624 | ||
Property and equipment, net | 23,736 | 13,873 | ||
Derivative financial instruments | 6,018 | 3,140 | ||
Other assets | 1,495,771 | 1,328,078 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 2,550,440 | 2,039,895 | ||
Liabilities and shareholders' equity | ||||
Unsecured senior notes | 0 | 0 | ||
Advance facilities | 1,582,294 | 1,330,991 | ||
Warehouse facilities | 74,655 | 32,628 | ||
Payables and accrued liabilities | 56,294 | 39,158 | ||
MSR related liabilities - nonrecourse | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Mortgage servicing liabilities | 0 | 0 | ||
Other nonrecourse debt | (609,708) | (335,166) | ||
Payables to affiliates | 100,751 | 124,447 | ||
Total liabilities | 2,423,702 | 1,862,390 | ||
Total equity | 126,738 | 177,505 | ||
Total liabilities and equity | 2,550,440 | 2,039,895 | ||
Eliminations | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | $ 0 |
Restricted cash | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Advances | 0 | 0 | ||
Reverse mortgage interests | 0 | 0 | ||
Mortgage loans held for sale | 0 | 0 | ||
Mortgage loans held for investment, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Other assets | 0 | (1,808,947) | ||
Investment in subsidiaries | (2,243,929) | (1,658,258) | ||
Total assets | (2,243,929) | (3,467,205) | ||
Liabilities and shareholders' equity | ||||
Unsecured senior notes | 0 | 0 | ||
Advance facilities | 0 | 0 | ||
Warehouse facilities | 0 | 0 | ||
Payables and accrued liabilities | 0 | 0 | ||
MSR related liabilities - nonrecourse | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Mortgage servicing liabilities | 0 | 0 | ||
Other nonrecourse debt | 0 | 0 | ||
Payables to affiliates | (1,952,373) | (1,808,947) | ||
Total liabilities | (1,952,373) | (1,808,947) | ||
Total equity | (291,556) | (1,658,258) | ||
Total liabilities and equity | (2,243,929) | (3,467,205) | ||
Legacy Asset | ||||
Liabilities and shareholders' equity | ||||
Other nonrecourse debt | (70,669) | (75,838) | $ (75,800) | |
2014-1 HECM securitization | ||||
Liabilities and shareholders' equity | ||||
Other nonrecourse debt | (275,138) | (259,328) | ||
2015-1 HECM Securitization | ||||
Liabilities and shareholders' equity | ||||
Other nonrecourse debt | $ (263,901) | $ 0 |
Guarantor Financial Statement84
Guarantor Financial Statement Information - Consolidating Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Condensed Financial Statements | |||||
Service related | $ 457,723 | $ 376,817 | $ 672,846 | $ 718,528 | |
Revenues: | |||||
Net gain on mortgage loans held for sale | 163,886 | 172,916 | 330,880 | 300,852 | |
Total revenues | 621,609 | 549,733 | 1,003,726 | 1,019,380 | |
Expenses: | |||||
Salaries, wages and benefits | 198,356 | 154,052 | 377,112 | 310,647 | |
General and administrative | 242,629 | 192,659 | 447,716 | 357,197 | |
Total expenses | 440,985 | 346,711 | 824,828 | 667,844 | |
Other income (expense): | |||||
Interest income | 87,155 | 42,941 | 130,929 | 86,884 | |
Interest expense | (147,863) | (139,422) | (263,511) | (296,022) | |
Gain/(Loss) on interest rate swaps and caps | 95 | (953) | (672) | 1,868 | |
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | 0 | 0 | |
Total other income (expense) | (60,613) | (97,434) | (133,254) | (207,270) | |
Income before taxes | 120,011 | 105,588 | 45,644 | 144,266 | |
Income Tax Expense (Benefit) | 44,171 | 38,941 | 16,646 | 53,942 | |
Net income | 75,840 | 66,647 | 28,998 | 90,324 | $ 221,024 |
Less: Net gain (loss) attributable to noncontrolling interests | 1,281 | 192 | 2,754 | (167) | |
Net income attributable to Nationstar | 74,559 | 66,455 | 26,244 | 90,491 | |
Nationstar | |||||
Condensed Financial Statements | |||||
Service related | 0 | 0 | 0 | 0 | |
Revenues: | |||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | 0 | |
Total revenues | 0 | 0 | 0 | 0 | |
Expenses: | |||||
Salaries, wages and benefits | 0 | 0 | 0 | 0 | |
General and administrative | 0 | 0 | 0 | 0 | |
Total expenses | 0 | 0 | 0 | 0 | |
Other income (expense): | |||||
Interest income | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | |
Income (Loss) from Subsidiaries, Net of Tax | 74,563 | 105,396 | 26,244 | 144,433 | |
Total other income (expense) | 74,563 | 105,396 | 26,244 | 144,433 | |
Income before taxes | 74,563 | 105,396 | 26,244 | 144,433 | |
Income Tax Expense (Benefit) | 0 | 38,941 | 0 | 53,942 | |
Net income | 74,563 | 66,455 | 26,244 | 90,491 | |
Less: Net gain (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income attributable to Nationstar | 74,563 | 66,455 | 26,244 | 90,491 | |
Issuer (Parent) | |||||
Condensed Financial Statements | |||||
Service related | 330,574 | 295,419 | 432,753 | 567,348 | |
Revenues: | |||||
Net gain on mortgage loans held for sale | 152,948 | 150,660 | 309,795 | 264,549 | |
Total revenues | 483,522 | 446,079 | 742,548 | 831,897 | |
Expenses: | |||||
Salaries, wages and benefits | 141,329 | 139,146 | 269,763 | 282,504 | |
General and administrative | 193,416 | 156,752 | 357,947 | 290,477 | |
Total expenses | 334,745 | 295,898 | 627,710 | 572,981 | |
Other income (expense): | |||||
Interest income | 77,930 | 38,145 | 114,050 | 77,855 | |
Interest expense | (130,960) | (126,535) | (230,827) | (261,013) | |
Gain/(Loss) on interest rate swaps and caps | 11 | 242 | 45 | 507 | |
Income (Loss) from Subsidiaries, Net of Tax | 23,165 | 43,555 | 46,374 | 68,001 | |
Total other income (expense) | (29,854) | (44,593) | (70,358) | (114,650) | |
Income before taxes | 118,923 | 105,588 | 44,480 | 144,266 | |
Income Tax Expense (Benefit) | 42,840 | 0 | 15,315 | 0 | |
Net income | 76,083 | 105,588 | 29,165 | 144,266 | |
Less: Net gain (loss) attributable to noncontrolling interests | 1,524 | 192 | 2,921 | (167) | |
Net income attributable to Nationstar | 74,559 | 105,396 | 26,244 | 144,433 | |
Guarantor (Subsidiaries) | |||||
Condensed Financial Statements | |||||
Service related | (2,294) | 31,127 | (2,639) | 58,555 | |
Revenues: | |||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | 0 | |
Total revenues | (2,294) | 31,127 | (2,639) | 58,555 | |
Expenses: | |||||
Salaries, wages and benefits | 73 | 1,811 | 427 | 3,507 | |
General and administrative | 144 | 3,805 | 194 | 4,696 | |
Total expenses | 217 | 5,616 | 621 | 8,203 | |
Other income (expense): | |||||
Interest income | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | |
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | 0 | 0 | |
Total other income (expense) | 0 | 0 | 0 | 0 | |
Income before taxes | (2,511) | 25,511 | (3,260) | 50,352 | |
Income Tax Expense (Benefit) | 1,323 | 0 | 1,323 | 0 | |
Net income | (3,834) | 25,511 | (4,583) | 50,352 | |
Less: Net gain (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income attributable to Nationstar | (3,834) | 25,511 | (4,583) | 50,352 | |
Non-Guarantor (Subsidiaries) | |||||
Condensed Financial Statements | |||||
Service related | 129,221 | 72,892 | 242,732 | 129,698 | |
Revenues: | |||||
Net gain on mortgage loans held for sale | 10,938 | 3 | 21,085 | (24) | |
Total revenues | 140,159 | 72,895 | 263,817 | 129,674 | |
Expenses: | |||||
Salaries, wages and benefits | 56,954 | 13,095 | 106,922 | 24,636 | |
General and administrative | 49,069 | 32,102 | 89,575 | 62,024 | |
Total expenses | 106,023 | 45,197 | 196,497 | 86,660 | |
Other income (expense): | |||||
Interest income | 9,447 | 4,428 | 16,879 | 8,283 | |
Interest expense | (16,903) | (12,887) | (32,684) | (35,009) | |
Gain/(Loss) on interest rate swaps and caps | 84 | (1,195) | (717) | 1,361 | |
Income (Loss) from Subsidiaries, Net of Tax | 0 | 0 | 0 | 0 | |
Total other income (expense) | (7,372) | (9,654) | (16,522) | (25,365) | |
Income before taxes | 26,764 | 18,044 | 50,798 | 17,649 | |
Income Tax Expense (Benefit) | 8 | 0 | 8 | 0 | |
Net income | 26,756 | 18,044 | 50,790 | 17,649 | |
Less: Net gain (loss) attributable to noncontrolling interests | (243) | 0 | (167) | 0 | |
Net income attributable to Nationstar | 26,999 | 18,044 | 50,957 | 17,649 | |
Eliminations | |||||
Condensed Financial Statements | |||||
Service related | 222 | (22,621) | 0 | (37,073) | |
Revenues: | |||||
Net gain on mortgage loans held for sale | 0 | 22,253 | 0 | 36,327 | |
Total revenues | 222 | (368) | 0 | (746) | |
Expenses: | |||||
Salaries, wages and benefits | 0 | 0 | 0 | 0 | |
General and administrative | 0 | 0 | 0 | 0 | |
Total expenses | 0 | 0 | 0 | 0 | |
Other income (expense): | |||||
Interest income | (222) | 368 | 0 | 746 | |
Interest expense | 0 | 0 | 0 | 0 | |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | |
Income (Loss) from Subsidiaries, Net of Tax | (97,728) | (148,951) | (72,618) | (212,434) | |
Total other income (expense) | (97,950) | (148,583) | (72,618) | (211,688) | |
Income before taxes | (97,728) | (148,951) | (72,618) | (212,434) | |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 | |
Net income | (97,728) | (148,951) | (72,618) | (212,434) | |
Less: Net gain (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income attributable to Nationstar | $ (97,728) | $ (148,951) | $ (72,618) | $ (212,434) |
Guarantor Financial Statement85
Guarantor Financial Statement Information - Consolidating Statements of Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Operating activities | |||||
Net income attributable to Nationstar | $ 74,559 | $ 66,455 | $ 26,244 | $ 90,491 | |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||
(Gain)/loss from subsidiaries | 0 | 0 | |||
Share-based compensation | 11,313 | 6,868 | |||
Excess tax benefit from share-based compensation | (1,095) | (2,189) | |||
Net (gain)/loss on mortgage loans held for sale | (330,880) | (300,852) | |||
Mortgage loans originated and purchased, net of fees | (9,883,868) | (11,470,908) | |||
Proceeds on sale of and payments of mortgage loans held for sale and held for investment | 9,429,885 | 12,089,338 | |||
Gain (loss) on swaps and caps | 672 | (1,868) | |||
Cash settlement on derivative financial instruments | 0 | 1,352 | |||
Depreciation and amortization | 13,773 | 11,609 | 26,627 | 20,401 | |
Amortization/accretion of premiums/discounts | (5,190) | 13,037 | |||
Fair value changes in excess spread financing | 38,951 | 23,767 | |||
Fair value changes and amortization/accretion of mortgage servicing rights | 183,042 | 123,573 | |||
Fair value change in mortgage servicing rights financing liability | 9,640 | (49,257) | |||
Changes in assets and liabilities: | |||||
Advances | 217,638 | 769,754 | |||
Reverse mortgage interests | (124,449) | (413,478) | |||
Other assets | 65,637 | 223,116 | |||
Payables and accrued liabilities | 38,697 | (260,566) | |||
Net cash attributable to operating activities | (297,136) | 862,579 | |||
Investing activities | |||||
Payments for (Proceeds from) Productive Assets | (27,051) | (23,678) | |||
Payments to Acquire Mortgage Servicing Rights (MSR) | (500,041) | (187,803) | |||
Purchase of reverse mortgage interests, net of participations sold | (4,815,684) | 0 | |||
Proceeds on sale of servicer advances | 0 | 512,527 | |||
Acquisitions, net | (45,276) | (18,000) | |||
Net cash attributable to investing activities | (5,388,052) | 283,046 | |||
Financing activities | |||||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | (102,384) | 241,423 | |||
Issuance of common stock, net of issuance costs | 497,761 | 0 | |||
Payments of Financing Costs | (10,639) | (9,153) | |||
Proceeds from (Repayments of) Secured Debt | 580,293 | (1,380,793) | |||
Proceeds from (Repayments of) Lines of Credit | (75,331) | (76,148) | |||
Proceeds from HECM securitizations | 342,403 | 0 | |||
Repayment of HECM securitizations | (63,013) | 0 | |||
Issuance of excess spread financing | 258,196 | 111,118 | |||
Repayment of excess spread financing | (100,228) | (85,257) | |||
Proceeds from Mortgage Backed Securities Notes Payable | 4,633,093 | 192,355 | |||
Proceeds from mortgage servicing rights financing | 0 | 52,835 | |||
Repayment of Nonrecourse Debt Legacy Assets | (5,917) | (7,414) | |||
Excess tax benefit from share-based compensation | 1,095 | 2,189 | $ 2,243 | ||
Redemption of shares for stock vesting | (6,204) | (4,755) | |||
Net cash attributable to financing activities | 5,949,125 | (963,600) | |||
Net increase (decrease) in cash and cash equivalents | 263,937 | 182,025 | |||
Cash and cash equivalents at beginning of period | 299,002 | 441,902 | 441,902 | ||
Cash and cash equivalents at end of period | 562,939 | 623,927 | 562,939 | 623,927 | 299,002 |
Nationstar | |||||
Operating activities | |||||
Net income attributable to Nationstar | 74,563 | 66,455 | 26,244 | 90,491 | |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||
(Gain)/loss from subsidiaries | (26,244) | (144,433) | |||
Share-based compensation | 0 | 0 | |||
Excess tax benefit from share-based compensation | 0 | 0 | |||
Net (gain)/loss on mortgage loans held for sale | 0 | 0 | |||
Mortgage loans originated and purchased, net of fees | 0 | 0 | |||
Proceeds on sale of and payments of mortgage loans held for sale and held for investment | 0 | 0 | |||
Gain (loss) on swaps and caps | 0 | 0 | |||
Cash settlement on derivative financial instruments | 0 | ||||
Depreciation and amortization | 0 | 0 | |||
Amortization/accretion of premiums/discounts | 0 | 0 | |||
Fair value changes in excess spread financing | 0 | 0 | |||
Fair value changes and amortization/accretion of mortgage servicing rights | 0 | 0 | |||
Fair value change in mortgage servicing rights financing liability | 0 | 0 | |||
Changes in assets and liabilities: | |||||
Advances | 0 | 0 | |||
Reverse mortgage interests | $ 0 | 0 | |||
Other assets | 4,756 | ||||
Payables and accrued liabilities | $ 0 | 53,941 | |||
Net cash attributable to operating activities | 0 | 4,755 | |||
Investing activities | |||||
Payments for (Proceeds from) Productive Assets | 0 | 0 | |||
Payments to Acquire Mortgage Servicing Rights (MSR) | 0 | 0 | |||
Purchase of reverse mortgage interests, net of participations sold | 0 | ||||
Proceeds on sale of servicer advances | 0 | 0 | |||
Acquisitions, net | 0 | 0 | |||
Net cash attributable to investing activities | 0 | 0 | |||
Financing activities | |||||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | 0 | |||
Issuance of common stock, net of issuance costs | 0 | 0 | |||
Payments of Financing Costs | 0 | 0 | |||
Proceeds from (Repayments of) Secured Debt | 0 | 0 | |||
Proceeds from (Repayments of) Lines of Credit | 0 | 0 | |||
Issuance of excess spread financing | 0 | 0 | |||
Repayment of excess spread financing | 0 | 0 | |||
Proceeds from Mortgage Backed Securities Notes Payable | 0 | 0 | |||
Proceeds from mortgage servicing rights financing | 0 | 0 | |||
Repayment of Nonrecourse Debt Legacy Assets | 0 | 0 | |||
Excess tax benefit from share-based compensation | $ 0 | 0 | |||
Redemption of shares for stock vesting | (4,755) | ||||
Net cash attributable to financing activities | $ 0 | (4,755) | |||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | |||
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | ||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 | 0 |
Issuer (Parent) | |||||
Operating activities | |||||
Net income attributable to Nationstar | 74,559 | 105,396 | 26,244 | 144,433 | |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||
(Gain)/loss from subsidiaries | (46,374) | (68,001) | |||
Share-based compensation | 11,313 | 6,868 | |||
Excess tax benefit from share-based compensation | (1,095) | (2,189) | |||
Net (gain)/loss on mortgage loans held for sale | (309,795) | (264,549) | |||
Mortgage loans originated and purchased, net of fees | (9,883,868) | (11,470,908) | |||
Proceeds on sale of and payments of mortgage loans held for sale and held for investment | 9,448,896 | 12,043,737 | |||
Gain (loss) on swaps and caps | (45) | (507) | |||
Cash settlement on derivative financial instruments | 0 | ||||
Depreciation and amortization | 19,314 | 18,577 | |||
Amortization/accretion of premiums/discounts | (4,574) | 14,389 | |||
Fair value changes in excess spread financing | 38,951 | 23,767 | |||
Fair value changes and amortization/accretion of mortgage servicing rights | 183,042 | 123,573 | |||
Fair value change in mortgage servicing rights financing liability | 9,640 | (49,257) | |||
Changes in assets and liabilities: | |||||
Advances | 215,345 | (3,232,195) | |||
Reverse mortgage interests | 82,558 | (413,478) | |||
Other assets | 293,481 | 1,852,546 | |||
Payables and accrued liabilities | 37,062 | (320,185) | |||
Net cash attributable to operating activities | 120,095 | (1,593,379) | |||
Investing activities | |||||
Payments for (Proceeds from) Productive Assets | (13,069) | (14,175) | |||
Payments to Acquire Mortgage Servicing Rights (MSR) | (500,041) | (187,803) | |||
Purchase of reverse mortgage interests, net of participations sold | (4,815,684) | ||||
Proceeds on sale of servicer advances | 0 | 512,527 | |||
Acquisitions, net | 0 | (18,000) | |||
Net cash attributable to investing activities | (5,328,794) | 292,549 | |||
Financing activities | |||||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | (20,751) | 94,268 | |||
Issuance of common stock, net of issuance costs | 497,761 | 0 | |||
Payments of Financing Costs | (10,639) | (9,153) | |||
Proceeds from (Repayments of) Secured Debt | 538,266 | 1,196,768 | |||
Proceeds from (Repayments of) Lines of Credit | (326,634) | (76,148) | |||
Issuance of excess spread financing | 258,196 | 111,118 | |||
Repayment of excess spread financing | (100,228) | (85,257) | |||
Proceeds from Mortgage Backed Securities Notes Payable | 4,633,093 | 192,355 | |||
Proceeds from mortgage servicing rights financing | 0 | 52,835 | |||
Repayment of Nonrecourse Debt Legacy Assets | 0 | 0 | |||
Excess tax benefit from share-based compensation | 1,095 | 2,189 | |||
Redemption of shares for stock vesting | (6,204) | 0 | |||
Net cash attributable to financing activities | 5,463,955 | 1,478,975 | |||
Net increase (decrease) in cash and cash equivalents | 255,256 | 178,145 | |||
Cash and cash equivalents at beginning of period | 279,770 | 422,268 | 422,268 | ||
Cash and cash equivalents at end of period | 535,026 | 600,413 | 535,026 | 600,413 | 279,770 |
Guarantor (Subsidiaries) | |||||
Operating activities | |||||
Net income attributable to Nationstar | (3,834) | 25,511 | (4,583) | 50,352 | |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||
(Gain)/loss from subsidiaries | 0 | 0 | |||
Share-based compensation | 0 | 0 | |||
Excess tax benefit from share-based compensation | 0 | 0 | |||
Net (gain)/loss on mortgage loans held for sale | 0 | 0 | |||
Mortgage loans originated and purchased, net of fees | 0 | 0 | |||
Proceeds on sale of and payments of mortgage loans held for sale and held for investment | 0 | 0 | |||
Gain (loss) on swaps and caps | 0 | 0 | |||
Cash settlement on derivative financial instruments | 0 | ||||
Depreciation and amortization | 0 | 84 | |||
Amortization/accretion of premiums/discounts | 0 | 0 | |||
Fair value changes in excess spread financing | 0 | 0 | |||
Fair value changes and amortization/accretion of mortgage servicing rights | 0 | 0 | |||
Fair value change in mortgage servicing rights financing liability | 0 | 0 | |||
Changes in assets and liabilities: | |||||
Advances | 0 | 0 | |||
Reverse mortgage interests | 0 | 0 | |||
Other assets | 3,682 | (48,708) | |||
Payables and accrued liabilities | 1,534 | (4,779) | |||
Net cash attributable to operating activities | 633 | (3,051) | |||
Investing activities | |||||
Payments for (Proceeds from) Productive Assets | 0 | (112) | |||
Payments to Acquire Mortgage Servicing Rights (MSR) | 0 | 0 | |||
Purchase of reverse mortgage interests, net of participations sold | 0 | ||||
Proceeds on sale of servicer advances | 0 | 0 | |||
Acquisitions, net | 0 | 0 | |||
Net cash attributable to investing activities | 0 | (112) | |||
Financing activities | |||||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | 0 | |||
Issuance of common stock, net of issuance costs | 0 | 0 | |||
Payments of Financing Costs | 0 | 0 | |||
Proceeds from (Repayments of) Secured Debt | 0 | 0 | |||
Proceeds from (Repayments of) Lines of Credit | 0 | 0 | |||
Issuance of excess spread financing | 0 | 0 | |||
Repayment of excess spread financing | 0 | 0 | |||
Proceeds from Mortgage Backed Securities Notes Payable | 0 | 0 | |||
Proceeds from mortgage servicing rights financing | 0 | 0 | |||
Repayment of Nonrecourse Debt Legacy Assets | 0 | 0 | |||
Excess tax benefit from share-based compensation | 0 | 0 | |||
Redemption of shares for stock vesting | 0 | 0 | |||
Net cash attributable to financing activities | 0 | 0 | |||
Net increase (decrease) in cash and cash equivalents | 633 | (3,163) | |||
Cash and cash equivalents at beginning of period | 288 | 3,907 | 3,907 | ||
Cash and cash equivalents at end of period | 921 | 744 | 921 | 744 | 288 |
Non-Guarantor (Subsidiaries) | |||||
Operating activities | |||||
Net income attributable to Nationstar | 26,999 | 18,044 | 50,957 | 17,649 | |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||
(Gain)/loss from subsidiaries | 0 | 0 | |||
Share-based compensation | 0 | 0 | |||
Excess tax benefit from share-based compensation | 0 | 0 | |||
Net (gain)/loss on mortgage loans held for sale | (21,085) | 24 | |||
Mortgage loans originated and purchased, net of fees | 0 | 0 | |||
Proceeds on sale of and payments of mortgage loans held for sale and held for investment | (19,011) | 9,274 | |||
Gain (loss) on swaps and caps | 717 | (1,361) | |||
Cash settlement on derivative financial instruments | 1,352 | ||||
Depreciation and amortization | 7,313 | 1,740 | |||
Amortization/accretion of premiums/discounts | (616) | (1,352) | |||
Fair value changes in excess spread financing | 0 | 0 | |||
Fair value changes and amortization/accretion of mortgage servicing rights | 0 | 0 | |||
Fair value change in mortgage servicing rights financing liability | 0 | 0 | |||
Changes in assets and liabilities: | |||||
Advances | 2,293 | 4,001,949 | |||
Reverse mortgage interests | (207,007) | 0 | |||
Other assets | (231,526) | (1,585,478) | |||
Payables and accrued liabilities | 101 | 10,457 | |||
Net cash attributable to operating activities | (417,864) | 2,454,254 | |||
Investing activities | |||||
Payments for (Proceeds from) Productive Assets | (13,982) | (9,391) | |||
Payments to Acquire Mortgage Servicing Rights (MSR) | 0 | 0 | |||
Purchase of reverse mortgage interests, net of participations sold | 0 | ||||
Proceeds on sale of servicer advances | 0 | 0 | |||
Acquisitions, net | (45,276) | 0 | |||
Net cash attributable to investing activities | (59,258) | (9,391) | |||
Financing activities | |||||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | (81,633) | 147,155 | |||
Issuance of common stock, net of issuance costs | 0 | 0 | |||
Payments of Financing Costs | 0 | 0 | |||
Proceeds from (Repayments of) Secured Debt | 42,027 | (2,577,561) | |||
Proceeds from (Repayments of) Lines of Credit | 251,303 | 0 | |||
Issuance of excess spread financing | 0 | 0 | |||
Repayment of excess spread financing | 0 | 0 | |||
Proceeds from Mortgage Backed Securities Notes Payable | 0 | 0 | |||
Proceeds from mortgage servicing rights financing | 0 | 0 | |||
Repayment of Nonrecourse Debt Legacy Assets | (5,917) | (7,414) | |||
Excess tax benefit from share-based compensation | 0 | 0 | |||
Redemption of shares for stock vesting | 0 | 0 | |||
Net cash attributable to financing activities | 485,170 | (2,437,820) | |||
Net increase (decrease) in cash and cash equivalents | 8,048 | 7,043 | |||
Cash and cash equivalents at beginning of period | 18,944 | 15,727 | 15,727 | ||
Cash and cash equivalents at end of period | 26,992 | 22,770 | 26,992 | 22,770 | 18,944 |
Eliminations | |||||
Operating activities | |||||
Net income attributable to Nationstar | (97,728) | (148,951) | (72,618) | (212,434) | |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||
(Gain)/loss from subsidiaries | 72,618 | 212,434 | |||
Share-based compensation | 0 | 0 | |||
Excess tax benefit from share-based compensation | 0 | 0 | |||
Net (gain)/loss on mortgage loans held for sale | 0 | (36,327) | |||
Mortgage loans originated and purchased, net of fees | 0 | 0 | |||
Proceeds on sale of and payments of mortgage loans held for sale and held for investment | 0 | 36,327 | |||
Gain (loss) on swaps and caps | 0 | 0 | |||
Cash settlement on derivative financial instruments | 0 | ||||
Depreciation and amortization | 0 | 0 | |||
Amortization/accretion of premiums/discounts | 0 | 0 | |||
Fair value changes in excess spread financing | 0 | 0 | |||
Fair value changes and amortization/accretion of mortgage servicing rights | 0 | 0 | |||
Fair value change in mortgage servicing rights financing liability | 0 | 0 | |||
Changes in assets and liabilities: | |||||
Advances | 0 | 0 | |||
Reverse mortgage interests | 0 | 0 | |||
Other assets | 0 | 0 | |||
Payables and accrued liabilities | 0 | 0 | |||
Net cash attributable to operating activities | 0 | 0 | |||
Investing activities | |||||
Payments for (Proceeds from) Productive Assets | 0 | 0 | |||
Payments to Acquire Mortgage Servicing Rights (MSR) | 0 | 0 | |||
Purchase of reverse mortgage interests, net of participations sold | 0 | ||||
Proceeds on sale of servicer advances | 0 | 0 | |||
Acquisitions, net | 0 | 0 | |||
Net cash attributable to investing activities | 0 | 0 | |||
Financing activities | |||||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | 0 | |||
Issuance of common stock, net of issuance costs | 0 | 0 | |||
Payments of Financing Costs | 0 | 0 | |||
Proceeds from (Repayments of) Secured Debt | 0 | 0 | |||
Proceeds from (Repayments of) Lines of Credit | 0 | 0 | |||
Issuance of excess spread financing | 0 | 0 | |||
Repayment of excess spread financing | 0 | 0 | |||
Proceeds from Mortgage Backed Securities Notes Payable | 0 | 0 | |||
Proceeds from mortgage servicing rights financing | 0 | 0 | |||
Repayment of Nonrecourse Debt Legacy Assets | 0 | 0 | |||
Excess tax benefit from share-based compensation | 0 | 0 | |||
Redemption of shares for stock vesting | 0 | 0 | |||
Net cash attributable to financing activities | 0 | 0 | |||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | |||
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | ||
Cash and cash equivalents at end of period | $ 0 | $ 0 | 0 | $ 0 | $ 0 |
2014-1 HECM securitization | |||||
Financing activities | |||||
Proceeds from HECM securitizations | 342,403 | ||||
Repayment of HECM securitizations | (63,013) | ||||
2014-1 HECM securitization | Nationstar | |||||
Financing activities | |||||
Proceeds from HECM securitizations | 0 | ||||
Repayment of HECM securitizations | 0 | ||||
2014-1 HECM securitization | Issuer (Parent) | |||||
Financing activities | |||||
Proceeds from HECM securitizations | 0 | ||||
Repayment of HECM securitizations | 0 | ||||
2014-1 HECM securitization | Guarantor (Subsidiaries) | |||||
Financing activities | |||||
Proceeds from HECM securitizations | 0 | ||||
Repayment of HECM securitizations | 0 | ||||
2014-1 HECM securitization | Non-Guarantor (Subsidiaries) | |||||
Financing activities | |||||
Proceeds from HECM securitizations | 342,403 | ||||
Repayment of HECM securitizations | (63,013) | ||||
2014-1 HECM securitization | Eliminations | |||||
Financing activities | |||||
Proceeds from HECM securitizations | 0 | ||||
Repayment of HECM securitizations | $ 0 |
Affiliates of Fortress Invest86
Affiliates of Fortress Investment Group - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||||
Excess Spread Financing, Fair Value Disclosure | $ 1,228,070 | $ 1,228,070 | |||
Mortgage servicing rights financing liability - fair value | 59,070 | $ 59,070 | $ 49,430 | ||
Newcastle | |||||
Related Party Transaction [Line Items] | |||||
Servicing fee, percentage of unpaid principal balance | 0.50% | ||||
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement | 700,000 | $ 700,000 | 800,000 | ||
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets | 900 | $ 1,000 | 1,800 | $ 2,100 | |
New Residential | |||||
Related Party Transaction [Line Items] | |||||
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets | 400 | 2,100 | |||
Payment of Servicing Fees in Excess of Contractually Specified Amount | 29,100 | ||||
Fair Value, Measurements, Recurring | |||||
Related Party Transaction [Line Items] | |||||
Excess Spread Financing, Fair Value Disclosure | 1,228,070 | 1,228,070 | 1,031,035 | ||
Mortgage servicing rights financing liability - fair value | $ 59,070 | $ 59,070 | $ 49,430 |