Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2015shares | |
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 | Sep. 30, 2015 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 109,826,176 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 596,607 | $ 299,002 |
Restricted cash | 477,232 | 285,530 |
Mortgage servicing rights, $3,233,041 and $2,949,739 at fair value, respectively | 3,242,356 | 2,961,321 |
Advances | 2,127,064 | 2,546,362 |
Reverse mortgage interests | 7,433,716 | 2,453,069 |
Mortgage loans held for sale | 1,885,605 | 1,277,931 |
Mortgage loans held for investment, net of allowance for loan losses of $3,549 and $3,531, respectively | 178,988 | 191,569 |
Property and equipment, net of accumulated depreciation of $98,931 and $69,721, respectively | 137,869 | 129,611 |
Derivative financial instruments | 98,364 | 91,051 |
Other assets | 859,139 | 877,229 |
Total assets | 17,036,940 | 11,112,675 |
Liabilities and equity | ||
Unsecured senior notes | 2,157,973 | 2,159,231 |
Advance facilities | 1,750,437 | 1,901,783 |
Warehouse facilities | 2,303,564 | 1,572,622 |
Payables and accrued liabilities | 1,291,528 | 1,322,078 |
MSR related liabilities - nonrecourse | 1,172,471 | 1,080,465 |
Derivative financial instruments | 28,525 | 18,525 |
Mortgage servicing liabilities | 27,624 | 65,382 |
Other nonrecourse debt | (6,608,895) | (1,768,311) |
Total liabilities | 15,341,017 | 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, 109,826 shares and 90,999 shares issued, respectively | 1,085 | 910 |
Additional paid-in-capital | 1,101,464 | 587,446 |
Retained earnings | 602,961 | 643,059 |
Treasury shares; 927 shares and 602 shares at cost, respectively | (18,633) | (12,433) |
Total Nationstar stockholders' equity | 1,686,877 | 1,218,982 |
Noncontrolling interest | 9,046 | 5,296 |
Total equity | 1,695,923 | 1,224,278 |
Total liabilities and equity | $ 17,036,940 | $ 11,112,675 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 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 | 3,233,041 | 2,949,739 |
Accumulated depreciation of property and equipment | $ 98,931 | $ 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 | 109,826,000 | 90,999,000 |
Treasury Shares | 927,000 | 602,000 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Service related | $ 211,311 | $ 361,509 | $ 884,157 | $ 1,080,037 |
Net gain on mortgage loans held for sale | 185,872 | 142,815 | 516,752 | 443,667 |
Total revenues | 397,183 | 504,324 | 1,400,909 | 1,523,704 |
Expenses: | ||||
Salaries, wages and benefits | 200,600 | 160,757 | 577,712 | 471,404 |
General and administrative | 245,621 | 166,467 | 693,337 | 523,664 |
Total expenses | 446,221 | 327,224 | 1,271,049 | 995,068 |
Other income (expense): | ||||
Interest income | 112,503 | 43,314 | 243,432 | 130,198 |
Interest expense | (175,798) | (116,673) | (439,309) | (412,695) |
Gain on disposal of property | 0 | 4,898 | 0 | 4,898 |
Gain (loss) on interest rate swaps and caps | 109 | 940 | (563) | 2,808 |
Total other income (expense) | (63,186) | (67,521) | (196,440) | (274,791) |
(Loss) income before taxes | (112,224) | 109,579 | (66,580) | 253,845 |
Income tax (benefit) expense | (47,295) | (1,700) | (30,649) | 52,242 |
Net (loss) income | (64,929) | 111,279 | (35,931) | 201,603 |
Less: Net gain (loss) attributable to non-controlling interests | 1,413 | 54 | 4,167 | (113) |
Net (loss) income attributable to Nationstar | (66,342) | 111,225 | (40,098) | 201,716 |
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 (loss) income | $ (66,342) | $ 111,225 | $ (40,098) | $ 199,753 |
(Loss) Earnings per share: | ||||
Basic (loss) earnings per share (in dollars per share) | $ (0.62) | $ 1.23 | $ (0.39) | $ 2.24 |
Diluted (loss) earnings per share (in dollars per share) | $ (0.62) | $ 1.22 | $ (0.39) | $ 2.22 |
Weighted average shares: | ||||
Basic (shares) | 107,568 | 90,120 | 101,797 | 89,990 |
Dilutive effect of stock awards (shares) | 0 | 1,001 | 0 | 690 |
Diluted (shares) | 107,568 | 91,121 | 101,797 | 90,680 |
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 | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 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 Share Amount | 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) | $ 984,908 | $ 4,990 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares (including forfeitures) issued under incentive plan | 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) | |||||
Share-based compensation | 18,565 | 18,565 | 18,565 | ||||
Excess tax benefit from share-based compensation | 2,243 | 2,243 | 2,243 | ||||
Withholding tax related to share based settlement of common stock by management | (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) | 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 | 725 | ||||||
Change in value of designated cash flow hedge, net of tax of $0 and ($1,183), respectively | 0 | ||||||
Share-based compensation | 15,337 | 15,337 | 15,337 | ||||
Excess tax benefit from share-based compensation | 1,095 | 1,095 | 1,095 | ||||
Withholding tax related to share based settlement of common stock by management | (6,200) | (6,200) | (6,200) | ||||
Net income | (35,931) | (40,098) | (40,098) | 4,167 | |||
Acquisition of non-controlling interest in subsidiaries | (417) | (417) | |||||
Currency translation adjustment | 0 | 0 | |||||
Issuance of common stock, net (shares) | 17,500 | ||||||
Issuance of common stock, net | 497,761 | $ 175 | 497,586 | 497,761 | |||
Ending of Period at Sep. 30, 2015 | 1,695,923 | $ 1,085 | $ 1,101,464 | $ 602,961 | $ (18,633) | $ 1,686,877 | $ 9,046 |
Ending of Period, shares at Sep. 30, 2015 | 109,826 | ||||||
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 | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities | ||
Net (loss) income attributable to Nationstar | $ (40,098) | $ 201,716 |
Reconciliation of net (loss) income to net cash attributable to operating activities: | ||
Noncontrolling interest | 4,167 | 306 |
Share-based compensation | 15,337 | 11,344 |
Excess tax benefit from share-based compensation | (1,095) | (2,197) |
Net gain on mortgage loans held for sale | (516,752) | (443,667) |
Mortgage loans originated and purchased, net of fees | (13,970,035) | (13,272,856) |
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | (1,392,858) | (3,284,336) |
Proceeds on sale of and payments of mortgage loans held for sale and held for investment | 15,048,814 | 17,616,711 |
(Gain) loss on interest rate swaps and caps | 563 | (2,808) |
Cash settlement on derivative financial instruments | 0 | 1,352 |
Depreciation and amortization | 41,266 | 29,963 |
Amortization (accretion) of premiums (discounts) | (7,395) | 16,660 |
Fair value changes in excess spread financing | (23,357) | 61,080 |
Fair value changes and amortization/accretion of mortgage servicing rights | 499,905 | 128,227 |
Fair value change in mortgage servicing rights financing liability | 7,093 | (38,260) |
Changes in assets and liabilities: | ||
Advances | 419,298 | 664,311 |
Reverse mortgage interests | (164,963) | (630,139) |
Other assets | 145,707 | 273,464 |
Payables and accrued liabilities | (126,955) | (25,461) |
Net cash attributable to operating activities | (61,358) | 1,305,410 |
Investing activities | ||
Property and equipment additions, net of disposals | (44,069) | (41,567) |
Purchase of forward mortgage servicing rights, net of liabilities incurred | (614,602) | (317,247) |
Sale of forward mortgage servicing rights | 41,197 | 0 |
Purchase of reverse mortgage interests, net of participations sold | (4,815,684) | 0 |
Proceeds on sale of servicer advances | 0 | 512,527 |
Proceeds from sale of building | 0 | 10,412 |
Acquisitions, net | (44,858) | (18,000) |
Net cash attributable to investing activities | (5,478,016) | 146,125 |
Financing activities | ||
Transfers (to) from restricted cash, net | (191,702) | 282,289 |
Issuance of common stock, net of issuance costs | 497,761 | 0 |
Debt financing costs | (10,668) | (11,461) |
Increase (decrease) in warehouse facilities | 730,942 | (1,439,738) |
Increase (decrease) in advance facilities | (151,346) | (502,403) |
Proceeds from HECM securitizations | 342,403 | 0 |
Repayment of HECM securitizations | (102,687) | 0 |
Issuance of excess spread financing | 262,976 | 150,951 |
Repayment of excess spread financing | (154,706) | (135,897) |
Increase in participating interest financing in reverse mortgage interests | 4,629,380 | 279,636 |
Proceeds from mortgage servicing rights financing | 0 | 52,835 |
Repayment of nonrecourse debt – Legacy assets | (10,269) | (12,356) |
Repayment of unsecured senior notes | 0 | (285,000) |
Excess tax benefit from share-based compensation | 1,095 | 2,197 |
Surrender of shares relating to stock vesting | (6,200) | (4,755) |
Net cash attributable to financing activities | 5,836,979 | (1,623,702) |
Net increase (decrease) in cash and cash equivalents | 297,605 | (172,167) |
Cash and cash equivalents at beginning of period | 299,002 | 441,902 |
Cash and cash equivalents at end of period | 596,607 | 269,735 |
Supplemental disclosures of non-cash activities | ||
Cash paid for interest expense | 319,353 | 385,739 |
Net cash (received from) paid for income taxes | 30,772 | (15,847) |
Transfer of mortgage loans held for investment to REO at fair value | 2,082 | 2,901 |
Claims made to third parties | (45,537) | (145,480) |
Mortgage servicing rights resulting from sale or securitization of mortgage loans | 169,406 | 185,822 |
Payable to seller of forward mortgage servicing rights | $ 80,466 | $ 63,231 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 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 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 (GAAP) 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 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 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, $69.4 million from the prior year was reclassified to be in conformity with the current year presentation. The adoption of ASU 2014-14 was limited to balance sheet reclassification, and did not impact the Company's financial condition, liquidity or results of operations. 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 was limited to balance sheet reclassification, and did not impact the Company's financial condition, liquidity or results of operations. 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 adoption of ASU 2015-12 is not expected to have a material impact on our financial condition, liquidity or results of operations. 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 adoption of ASU 2015-03 will be limited to balance sheet reclassification, and will not impact the Company's financial condition, liquidity or results of operations. 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 adoption of ASU 2015-05 is not expected to have a material impact on our financial condition, liquidity or results of operations. 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 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. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which provides guidance for revenue recognition. This ASU’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods or services. The ASU was postponed resulting in effective commencement with Nationstar's quarter ending March 31, 2018. The company is currently assessing the potential impact on the consolidated financial statements. |
Mortgage Servicing Rights (MSR)
Mortgage Servicing Rights (MSR) and Related Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights (MSRs) and Related Liabilities | Mortgage Servicing Rights (MSR) and Related Liabilities MSRs and Related Liabilities September 30, 2015 December 31, 2014 MSRs - fair value $ 3,233,041 $ 2,949,739 MSRs - LOCOM 9,315 11,582 Mortgage servicing rights 3,242,356 2,961,321 Mortgage servicing liabilities 27,624 65,382 Excess spread financing - fair value 1,115,949 1,031,035 Mortgage servicing rights financing liability - fair value 56,522 49,430 MSR related liabilities (nonrecourse) $ 1,172,471 $ 1,080,465 Mortgage Servicing Rights - Fair Value MSRs - 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 for agency and non-Agency investors. The following table provides a breakdown of the total credit and interest sensitive unpaid principal balances (UPBs) for Nationstar's forward owned MSRs. September 30, 2015 December 31, 2014 UPB Fair Value UPB Fair Value Credit sensitive $ 235,392,069 $ 1,987,356 $ 241,769,601 $ 1,919,290 Interest sensitive 119,251,923 1,245,685 91,843,044 1,030,449 $ 354,643,992 $ 3,233,041 $ 333,612,645 $ 2,949,739 The activity of MSRs carried at fair value is as follows for the dates indicated: For the three months ended September 30, For the nine months ended September 30, MSRs - Fair Value 2015 2014 2015 2014 Fair value at the beginning of the period $ 3,350,298 $ 2,678,134 $ 2,949,739 $ 2,488,283 Additions: Servicing resulting from transfers of financial assets 63,900 65,610 169,406 185,822 Purchases of servicing assets 200,922 159,773 695,067 353,450 Dispositions: Dispositions (45,774 ) — (45,774 ) — Changes in fair value: Due to changes in valuation inputs or assumptions used in the valuation model (215,384 ) 89,528 (197,037 ) 114,349 Other changes in fair value (120,921 ) (94,836 ) (338,360 ) (243,695 ) Fair value at the end of the period $ 3,233,041 $ 2,898,209 $ 3,233,041 $ 2,898,209 During the third quarter of 2015, Nationstar executed a sale of MSRs with an unpaid principal balance of $4.6 billion .. Nationstar will continue to subservice the loans. Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated: Credit Sensitive September 30, 2015 December 31, 2014 Discount rate 11.63 % 11.96 % Total prepayment speeds 17.17 % 18.58 % Expected weighted-average life 5.71 years 5.39 years Interest Sensitive September 30, 2015 December 31, 2014 Discount rate 9.13 % 9.09 % Total prepayment speeds 13.56 % 11.27 % Expected weighted-average life 5.68 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 September 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 September 30, 2015 Mortgage servicing rights $ (106,438 ) $ (205,891 ) $ (163,547 ) $ (236,670 ) 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. Also, the changes in the fair value of Nationstar's excess spread financing liability partially offsets the change in the fair value of Nationstar's mortgage service rights. MSRs - Lower of Cost or Market (LOCOM) Nationstar owns the right to service certain reverse mortgages with an unpaid principal balance of $30.7 billion and $28.0 billion as of September 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 being discount rates, prepayment speeds, home price index, collateral values and the expected weighted average life. Nationstar classifies these as Level 3. At September 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 nine months ended September 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 (2,267 ) (37,759 ) (2,448 ) (3,567 ) Balance at end of the period $ 9,315 $ 27,623 $ 12,431 $ 78,954 Fair value at end of period $ 30,147 $ 11,438 $ 35,475 $ 61,853 For the nine month periods ended September 30, 2015 and 2014, the Company accreted $37.8 million and $3.6 million , respectively, of the mortgage servicing liability. The increase in amortization/accretion was primarily due to increased realized losses incurred during 2015. 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 order to finance the acquisition of certain MSRs on various pools of residential mortgage loans (the Portfolios), Nationstar entered into multiple 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 a retained portion of the excess servicing fee. Nationstar continues to be the servicer of the Portfolios and provides all servicing and advancing functions. 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 September 30, 2015 Low 8.0% 3.9 years 8.5% 6.8% High 18.7% 7.6 years 14.2% 30.3% Weighted-average 12.3% 5.72 years 11.2% 17.5% December 31, 2014 Low 6.2% 4.0 years 8.5% 6.7% High 19.4% 7.1 years 14.2% 31.3% Weighted-average 12.5% 5.6 years 11.5% 16.8% 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 September 30, 2015 Excess spread financing $ 40,456 $ 84,079 $ 38,419 $ 80,733 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 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: September 30, 2015 December 31, 2014 Advance financing rates 2.86 % 2.79 % Annual advance recovery rates 24.67 % 27.55 % |
Advances
Advances | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Advances | Advances, Net September 30, 2015 December 31, 2014 Agency $ 1,273,618 $ 1,805,412 Non-agency $ 853,446 $ 740,950 Total advances, net $ 2,127,064 $ 2,546,362 Servicing advances on agency securities 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. 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. Nationstar accretes purchase discounts related to specific advances into interest income as the related servicer advances are recovered. During the three and nine month periods ended September 30, 2015 , the Company accreted $1.3 million and $1.7 million , respectively, of the purchase discounts from recovered servicer advances. During the three and nine month periods ended September 30, 2014 , the Company accreted zero and $8.4 million respectively, of the purchase discounts from recovered servicer advanced into interest income. At September 30, 2015, there is $3.4 million that Nationstar expects to accrete into future interest income from remaining purchase discounts. As of September 30, 2015 and December 31, 2014 , Nationstar carried an allowance for uncollectible servicer advances of $19.3 million and $9.2 million , respectively. Advances balances are reflected net of these reserves. |
Reverse Mortgage Interests (Not
Reverse Mortgage Interests (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Reverse Mortgage Interests [Abstract] | |
Reverse Mortgage Interests | Reverse Mortgage Interests September 30, 2015 December 31, 2014 Participating interests $ 5,957,413 $ 1,363,225 Other interests securitized 514,378 341,268 Unsecuritized interests 990,998 752,801 Reserve for servicing losses (29,073 ) (4,225 ) Total reverse mortgage interests $ 7,433,716 $ 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. 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 for additional information. 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 a minimum of 98% 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. See Note 8, Indebtedness for additional information. During May 2015, the Company entered into an asset acquisition and paid $192 million funded from cash on hand to Generation Mortgage and received of $4.9 billion of UPB assets and $4.6 billion of assumed liabilities. Nationstar recorded both the asset and corresponding liability gross for HMBS securities previously issued by Generation Mortgage as an assumed liability recorded to non-recourse debt. |
Mortgage Loans Held for Sale an
Mortgage Loans Held for Sale and Investment | 9 Months Ended |
Sep. 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 securitized and transferred to GSEs or delivered to third-party purchasers shortly after origination on a servicing-retained basis. Mortgage loans held for sale consist of the following for the dates indicated: September 30, 2015 December 31, 2014 Mortgage loans held for sale – unpaid principal balance $ 1,802,914 $ 1,218,596 Mark-to-market adjustment (1) 82,691 59,335 Total mortgage loans held for sale $ 1,885,605 $ 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. Nationstar accrues interest income as earned. Nationstar places loans on non-accrual status after any portion of principal or interest has been delinquent for more than 90 days. When Nationstar places a loan on non-accrual status, Nationstar reverses the interest that had been accrued but not yet received. The total UPB of mortgage loans held for sale on nonaccrual status was as follows for the dates indicated: September 30, 2015 December 31, 2014 Mortgage Loans Held for Sale - Unpaid Principal Balance UPB Fair Value UPB Fair Value Nonaccrual $ 27,672 $ 25,037 $ 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 September 30, 2015 December 31, 2014 Foreclosure $ 20,773 $ 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 nine months ended September 30, 2015 2014 Mortgage loans held for sale – beginning balance $ 1,277,931 $ 2,603,380 Mortgage loans originated and purchased, net of fees 13,970,035 13,272,856 Repurchase of loans out of Ginnie Mae securitizations 1,368,547 3,275,202 Claims made to third parties (1) (45,537 ) (145,480 ) Proceeds on sale of and payments of mortgage loans held for sale (15,034,841 ) (17,601,712 ) Gain on sale of mortgage loans (2) 349,470 292,795 Mortgage loans held for sale – ending balance $ 1,885,605 $ 1,697,041 (1) This is comprised of claims made on certain government guaranteed mortgage loans upon foreclosure based on the adoption of ASU 2014-14. (2) 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 primarily in connection with loan modifications and loan resolution activity as part of Nationstar's contractual obligations as the servicer of the loans. 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 re-pool into new Ginnie Mae securitizations or to otherwise sell to third-party investors. During the nine months ended September 30, 2015 and September 30, 2014, Nationstar repurchased loans from Ginnie Mae securitization pools of $1.4 billion and $3.3 billion of mortgage loans, respectively. Mortgage loans held for investment, net Mortgage loans held for investment, net as of the dates indicated include: September 30, 2015 December 31, 2014 Mortgage loans held for investment, net – unpaid principal balance $ 257,763 $ 276,820 Transfer discount: Accretable (14,586 ) (15,503 ) Non-accretable (60,640 ) (66,217 ) Allowance for loan losses (3,549 ) (3,531 ) Total mortgage loans held for investment, net $ 178,988 $ 191,569 The changes in accretable yield on loans transferred to mortgage loans held for investment, net were as follows: For the nine months ended September 30, 2015 For the year ended December 31, 2014 Accretable Yield Balance at the beginning of the period $ 15,503 $ 17,362 Accretion (2,081 ) (2,955 ) Reclassifications from (to) nonaccretable discount 1,164 1,096 Balance at the end of the period $ 14,586 $ 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 $1.2 million of transfer discount to non-accretable yield during the nine months ended September 30, 2015 and $1.1 million during 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 LTVs 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 September 30, 2015 December 31, 2014 Foreclosure $ 46,914 $ 52,769 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following: September 30, 2015 December 31, 2014 Receivables from trusts, agencies and prior servicers, net 1 $ 373,248 $ 386,166 Accrued revenues 174,611 154,436 Loans subject to repurchase right from Ginnie Mae 96,574 131,592 Goodwill 68,537 54,701 Intangible assets 43,498 19,622 Deferred financing costs 40,183 46,986 Prepaid expenses 18,424 9,837 Collateral deposits on derivative instruments 13,684 9,810 Real estate owned (REO), net 2,310 1,625 Accrued interest 887 1,890 Other 27,183 60,564 Total other assets $ 859,139 $ 877,229 1 Net of reserves of $153 million and $108 million as of September 30, 2015 and December 31, 2014, respectively. Receivables from trusts, agencies and prior services, net is primarily comprised of prior servicer receivables and custodial receivables acquired in asset acquisitions. Accrued revenues is primarily comprised of service fees earned but not received. 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 $96.6 million at September 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 as Xome), a wholly owned subsidiary of Nationstar, acquired Experience 1, Inc., the holding company for Title365, Xome Signing (previously known as Trusted Signing), and technology subsidiaries Xome Labs (previously known as X1 Labs) and Xome Analytics (previously known as X1 Analytics) (collectively, Title365), a title agency and technology services provider for title insurance and escrow services. The total consideration was $36.0 million in cash. Related to the acquisition, the Company recorded $16.8 million in goodwill and $14.9 million in intangible assets as well as $4.3 million of other net assets. The recognized intangible assets primarily relate to customer relationships, trade names and technology. In May 2015, Xome 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. Total consideration paid was $12 million . 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 platform during the fourth quarter. Total consideration paid was $2 million . Related to the acquisitions, the Company tentatively recorded an additional $3.8 million in goodwill and $10 million in intangible assets pending a final valuation. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 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, interest rate swap agreements and interest rate caps. 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 in the consolidated balance sheets. The changes in value on forward sales of MBS and forward sale commitments are recorded as a charge or credit to net gain on mortgage loans held for sale. Associated with the Company's forward MBS trades are $13.7 million and $9.8 million in collateral deposits on derivative instruments recorded in other assets on the Company's balance sheets as of September 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. Nationstar occasionally enters 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. 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. Eurodollar futures are accounted for as derivatives and recorded at fair value in derivative financial instruments. Realized and unrealized changes in fair value are recorded as a charge or credit to net gain on mortgage loans held for sale. Periodically, Nationstar has entered into interest rate swap agreements to hedge the interest payment on the warehouse debt and securitization of its mortgage loans held for sale. These interest rate swap agreements generally require Nationstar to pay a fixed interest rate and receive a variable interest rate based on LIBOR. Interest rate swaps are accounted for as derivative financial instruments. 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. During the second quarter of 2015, Nationstar entered into two interest rate caps with notional values of $800 million and $400 million , respectively, to mitigate interest rate risk associated with servicing advance facilities. Expenses associated with interest rate caps are recorded as a gain/(loss) on interest rate swaps and caps in Nationstar's consolidated statements of income (loss). 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 nine months ended September 30, 2015 Assets Mortgage loans held for sale Loan sale commitments 2015 $ 417 $ 4 $ 8 Derivative financial instruments IRLCs 2015 2,764,748 89,965 2,064 Forward MBS trades 2015 252,400 115 (169 ) LPCs 2015 766,474 8,280 6,281 Interest rate swaps and caps 2015-2016 1,200,000 4 — Liabilities Derivative financial instruments IRLCs 2015 2,856 12 (5 ) Forward MBS trades 2015 3,929,100 26,561 (8,202 ) LPCs 2015 207,530 1,630 (1,582 ) Interest rate swaps and caps 2017 27,412 48 (563 ) Eurodollar futures 2015-2020 298,000 274 (267 ) 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 | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness Notes Payable September 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 $ 73,707 $ 80,839 $ 363,014 $ 418,126 Securities repurchase facility (2011) LIBOR +3.50% 90 day revolving Nonrecourse debt - Legacy Assets — 33,973 55,603 34,613 55,603 Nationstar agency advance financing facility (1) LIBOR+1.20% to 3.75% December 2015 Servicing advance receivables 1,300,000 1,114,608 1,243,797 805,706 885,115 MBS advance financing facility (2012) LIBOR+5.00% April 2016 Servicing advance receivables 50,000 48,822 58,439 42,472 50,758 Nationstar mortgage advance receivable LIBOR+1.15% to 5.30% June 2018 Servicing advance receivables 500,000 262,677 305,279 419,170 471,243 MBS servicer advance facility (2014) LIBOR+3.50% August 2016 Servicing advance receivables 125,000 123,108 184,084 79,084 138,010 Nationstar servicer advance receivables trust 2014 - BC LIBOR+1.50% to 3.00% November 2015 Servicing advance receivables 200,000 93,542 106,012 106,115 121,030 Securities repurchase facility (2014) LIBOR+1.50% to 2.00% November 2017 Securities — — — 51,609 74,525 $ 1,750,437 $ 2,034,053 $ 1,901,783 $ 2,214,410 September 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 2016 Mortgage loans or MBS $ 1,300,000 $ 874,514 $ 931,140 $ 663,167 $ 697,257 $1.0 billion warehouse facility LIBOR+1.75% to 3.25% June 2016 Mortgage loans or MBS 1,000,000 603,348 658,317 307,294 320,285 $500 million warehouse facility LIBOR+1.75% to 2.75% September 2016 Mortgage loans or MBS 500,000 233,941 239,266 176,194 179,994 $500 million warehouse facility LIBOR+ 1.50% to 2.00% November 2015 Mortgage loans or MBS 500,000 241,655 255,152 183,290 192,990 $350 million warehouse facility LIBOR+2.20% to 4.50% March 2016 Mortgage loans or MBS 350,000 119,460 131,923 210,049 223,849 $200 million warehouse facility LIBOR+1.50% April 2016 Mortgage loans or MBS 200,000 98,028 100,420 — — $75 million warehouse facility (HCM) (2) LIBOR+ 2.25% to 2.875% October 2016 Mortgage loans or MBS 75,000 66,537 68,424 23,949 29,324 $100 million warehouse facility (HCM) LIBOR + 2.50% to 2.75% November 2015 Mortgage loans or MBS 100,000 66,081 69,699 8,679 9,044 ASAP+ facility LIBOR+1.50% Up to 45 days GSE mortgage loans or GSE MBS — — — — — $ 2,303,564 $ 2,454,341 $ 1,572,622 $ 1,652,743 Mortgage loans $ 1,806,622 $ 1,905,288 $ 1,196,956 $ 1,241,043 Reverse mortgage interests $ 496,942 $ 549,053 $ 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 2.07% 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). During the fourth quarter of 2015, Nationstar created a new variable interest entity called the Nationstar Advance Agency Receivables Trust, with $550 million of borrowing capacity. See Note 19, Subsequent Events for additional information. Unsecured Senior Notes A summary of the balances of Unsecured Senior Notes is presented below: September 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 377,951 378,555 $400 million face value, 7.875% interest rate payable semi-annually, due October 2020 400,472 400,541 $600 million face value, 6.500% interest rate payable semi-annually, due July 2021 604,550 605,135 $300 million face value, 6.500% interest rate payable semi-annually, due June 2022 300,000 300,000 Total $ 2,157,973 $ 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. At September 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: September 30, 2015 December 31, 2014 Participating interest financing $ 6,042,589 $ 1,433,145 2014-1 HECM securitization 249,745 259,328 2015-1 HECM securitization 248,664 — Nonrecourse debt - legacy assets 67,897 75,838 Total $ 6,608,895 $ 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 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 during the nine months period ending September 30, 2015 is due to the Generation Mortgage asset acquisition. See Note 4, Reverse Mortgage Interests for additional information in connection with the Generation Mortgage asset acquisition. The interest rate is based on the underlying HMBS rate with a range of 0.48% to 6.98% . The participating interest financing was $6.0 billion and $1.4 billion at September 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 transactions provide 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 $498.4 million and $259.3 million at September 30, 2015 and December 31, 2014, respectively. During December 2014, Nationstar Mortgage LLC completed the securitization of approximately $343.6 million in Nationstar HECM Loan Trust 2014-1 Mortgage 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. During 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 . During June 2015, Nationstar Mortgage LLC completed the securitization of approximately $269.4 million in Nationstar HECM Loan Trust 2015-1 Mortgage Backed Securities. The notes were issued under two separate classes, comprised of Class A Notes and Class M Notes. This transaction was accounted for as a secured borrowing, the related financial assets are recorded at lower of cost or market with a corresponding liability to other non-recourse debt. The notes have a final maturity date of May 2018. No portion of the notes were retained by the Company as of September 30, 2015 . Nationstar evaluates its reverse mortgage interests on a periodic basis. During the three and nine months ended September 30, 2015 , no impairment was recorded. Nonrecourse Debt–Legacy Assets During 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 $67.9 million at September 30, 2015 and $75.8 million at December 31, 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 $246.7 million and $268.2 million at September 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 $78.9 million and $88.2 million at September 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. At September 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 $682 million as of each quarter-end related to its outstanding Master Repurchase Agreements on its outstanding repurchase facilities. At September 30, 2015, Nationstar was in compliance with these minimum tangible net worth requirements. |
Payables and Accrued Liabilitie
Payables and Accrued Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Payables and Accrued Liabilities | Payables and Accrued Liabilities Payables and accrued liabilities consist of the following: September 30, 2015 December 31, 2014 Payables to servicing and subservicing investors $ 432,092 $ 329,306 Payables to GSEs 101,128 67,311 Payables to securitization trusts 105,708 99,137 Loans subject to repurchase from Ginnie Mae 96,574 131,592 Accrued bonus and payroll 92,356 85,366 MSR purchases payable including advances 80,466 45,697 Payable to insurance carriers and insurance cancellation reserves 78,417 163,381 Accrued interest 64,809 59,708 Taxes 31,965 96,237 Repurchase reserves 28,086 29,165 Other 179,927 215,178 Total payables and accrued liabilities $ 1,291,528 $ 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. Loans subject to repurchase from Ginnie Mae See Note 6, Other Assets for a description of assets and liabilities related to Loans subject to repurchase from Ginnie Mae. |
Securitizations and Financings
Securitizations and Financings | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Securitizations and Financings | 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. 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. Nationstar 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 Trust (NAAFT), and (iv) Nationstar Servicer Advance Receivables Trust, 2014 BC should be consolidated as Nationstar is the primary beneficiary. Also, Nationstar consolidates two reverse mortgage SPEs 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. During the third quarter of 2015, the NAAFT variable financing capacity was reduced from $1.2 billion to $900 million to lower the cost of borrowing and diversify the lending base. 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: September 30, 2015 December 31, 2014 Transfers Reverse Secured Borrowings Transfers Reverse Secured Borrowings Assets Restricted cash $ 262,527 $ 24,882 $ 90,068 $ 15,578 Reverse mortgage interests — 6,471,791 — 1,642,789 Advances 1,655,087 — 1,477,388 — Mortgage loans held for investment, net 178,037 — 189,456 — Derivative financial instruments 99 — 865 — Other assets 3,309 — 2,678 — Total assets $ 2,099,059 $ 6,496,673 $ 1,760,455 $ 1,658,367 Liabilities Advance facilities $ 1,470,827 $ — $ 1,330,991 $ — Payables and accrued liabilities 1,580 380 1,596 186 Nonrecourse debt–legacy assets 67,896 — 75,838 — 2014-1 HECM securitization — 249,745 — 259,328 2015-1 HECM Securitization — 248,664 — — Participating interest financing — 6,042,589 — 1,433,145 Total liabilities $ 1,540,303 $ 6,541,378 $ 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: September 30, 2015 December 31, 2014 Total collateral balances $ 3,218,013 $ 3,258,472 Total certificate balances 2,903,368 3,297,256 Nationstar has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of September 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 September 30, 2015 December 31, 2014 Unconsolidated securitization trusts $ 775,915 $ 861,419 For the three months ended September 30, For the nine months ended September 30, Credit Losses 2015 2014 2015 2014 Unconsolidated securitization trusts $ 61,344 $ 71,575 $ 176,564 $ 219,189 Certain cash flows received from securitization trusts related to the transfer of mortgage loans accounted for as sales for the dates indicated were as follows: For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 Servicing Fees Loan Servicing Fees Loan Servicing Fees Loan Servicing Fees Loan Unconsolidated securitization trusts $ 5,590 $ — $ 2,632 $ — $ 18,453 $ — $ 20,818 $ — |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity During March 2015, Nationstar completed an equity offering of 17.5 million shares for a total of $497.8 million in cash proceeds. Nationstar used and intends to continue 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, second and third quarters of 2015, certain employees of Xome were granted 1.1 million 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 nine months ended September 30, 2015 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax (benefit) expense was as follows: For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 Income tax (benefit) expense $ (47,295 ) $ (1,700 ) $ (30,649 ) $ 52,242 Effective tax rate 42.1 % (1.6 )% 46.0 % 20.6 % The primary reasons for the significant variation in the expected tax rate and the actual tax rate are the year-to-date book loss, the partial release of the deferred tax valuation allowance that was previously recorded against the Company’s loss carry forwards, and the elimination of the book income of the KB Homes joint venture. The company released a valuation allowance in the amount of $4.2 million in the quarter ended September 30, 2015 and a valuation allowance in the amount of $44.2 million in the quarter ended September 30, 2014. Excluding the release of the valuation allowance, the Company’s effective tax rate would have been 38.4% for the three months ended September 30, 2015, 38.8% for the three months ended September 30, 2014, 39.8% for the nine months ended September 30, 2015 and 38.0% for the nine months ended September 30, 2014. The elimination of the book income attributable to the KB Home joint venture is treated as a permanent difference and reduces taxable income. When the Company is in a net income position, this adjustment reduces the effective tax rate and the corresponding income tax expense. When the Company is in a net loss position, this adjustment increases the effective tax rate and the corresponding income tax benefit. Because the Company is in a net loss position for the three months ended September 30, 2015 and for the nine months ended September 30, 2015, the book income attributable to the KB Homes joint venture increases the effective tax rate and the income tax benefit relative to the comparable quarter. The Company regularly reviews the carrying amount of its deferred tax assets to determine if a valuation allowance is necessary. If based on the available evidence, it is more likely than not that all or a portion of the Company's deferred tax assets will not be realized in future periods, a valuation allowance is established. Management considers all available evidence, both positive and negative, in evaluating the need for a valuation allowance. Significant judgment is required in assessing future earnings trends and the timing of reversals of temporary differences. The Company's evaluation is based on current tax laws as well as management's expectations of future performance. At the date of the Company’s initial public offering, the Company was in a three year cumulative loss and the Company concluded it was not more likely than not that the net operating loss would be used. Accordingly, a valuation allowance was recorded against the deferred tax assets. The Company has generated significant pre-tax income over the past three years as well as increasing the size of its servicing portfolio over that same time period. As a result, $44.2 million of the valuation allowance recorded against deferred tax assets was released in the quarter ended September 30, 2014. In August 2015, the Company amended its 2012 and 2013 Federal tax returns to characterize $16.5 million in losses arising from loan modifications and REO liquidation in its Legacy portfolio (primarily consisting of subprime mortgage loans originated in the latter portion of 2006 through 2007 acquired from Nationstar's predecessors) as ordinary losses. Approximately $5.0 million of these losses are limited by IRC Section 382 as a result of the Company’s reorganization in March 2012. The remaining post reorganization NOL of $11.5 million may be offset against the Company’s ordinary income without limitation. As a result, the Company has released $4.2 million of the valuation allowance recorded against the deferred tax asset that was previously characterized as a capital loss carryforward. The Company has not released the valuation allowance recorded against the remaining $5.0 million pre-reorganization loss because it is expected to expire unutilized. Accordingly, a valuation allowance of $2.2 million remains as of September 30, 2015. The Company has federal net operating loss carryforwards (NOL) of approximately $182.9 million that will begin to expire in 2027, if unused. The Company also has immaterial state NOLs that will begin to expire in 2015 if unused. The amount of the state NOLs varies by state based on whether the NOL is derived from the pre-apportioned Federal NOL or calculated based on the apportioned Federal NOL. The Federal NOL is limited under Sections 382 and 383 of the Internal Revenue Code as a result of a reorganization that occurred in advance of the Company’s initial public offering. The annual limitation is approximately $11.0 million . The Company expects that future income will be sufficient to utilize all net operating losses generated subsequent to the initial public offering in 2012. The Company had a net deferred tax liability of $104.0 million at September 30, 2015 and $109.8 million at December 31, 2014. A valuation allowance of $2.2 million and $6.4 million was recorded against deferred tax assets at September 30, 2015 and December 31, 2014, respectively, as management believes that it is more likely than not that not all of the deferred tax assets will be realized. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 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 models, 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 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 a combination of internally developed valuation models based on the value of the underlying MSRs, Nationstar classifies these valuations as Level 3 in the fair value disclosures. 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: September 30, 2015 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 ASSETS Mortgage loans held for sale (1) $ 1,885,605 $ — $ 1,885,605 $ — Mortgage servicing rights (1) 3,233,041 — — 3,233,041 Derivative financial instruments: IRLCs 89,965 — 89,965 — Forward MBS trades 115 — 115 — LPCs 8,280 — 8,280 — Interest rate swaps and caps 4 — 4 — Total assets $ 5,217,010 $ — $ 1,983,969 $ 3,233,041 LIABILITIES Derivative financial instruments IRLCs 12 — 12 — Interest rate swaps and caps 48 — 48 — Forward MBS trades 26,561 — 26,561 — LPCs 1,630 — 1,630 — Eurodollar futures 274 — 274 — Mortgage servicing rights financing 56,522 — — 56,522 Excess spread financing 1,115,949 — — 1,115,949 Total liabilities $ 1,200,996 $ — $ 28,525 $ 1,172,471 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 nine months ended September 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 (535,397 ) (23,356 ) 7,092 Included in other comprehensive income — — — Purchases, issuances, sales and settlements Purchases 695,067 — — Issuances 169,406 262,976 — Sales — — — Settlements — (154,706 ) — Dispositions (45,774 ) — — Ending balance $ 3,233,041 $ 1,115,949 $ 56,522 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. September 30, 2015 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 596,607 $ 596,607 $ — $ — Restricted cash 477,232 477,232 — — Mortgage loans held for sale 1,885,605 — 1,885,605 — Mortgage loans held for investment, net 178,988 — — 176,829 Reverse mortgage interests 7,433,716 — — 7,445,241 Derivative financial instruments 98,364 — 98,364 — Financial liabilities: Unsecured senior notes 2,157,973 2,012,223 — — Advance facilities 1,750,437 — 1,750,437 — Warehouse facilities 2,303,564 — 2,303,564 — Derivative financial instruments 28,525 — 28,525 — Excess spread financing 1,115,949 — — 1,115,949 Mortgage servicing rights financing liability 56,522 — — 56,522 Nonrecourse debt - legacy assets 67,897 — — 78,228 Participating interest financing 6,042,589 — 6,011,914 — 2014-1 HECM securitization 249,745 — — 317,103 2015-1 HECM securitization 248,664 — — 308,625 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 | 9 Months Ended |
Sep. 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 $1.2 billion . As of September 30, 2015 Nationstar was in compliance with its selling and servicing capital requirements. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 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 reasonably estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and reasonably estimable. Once the matter is deemed to be both probable and reasonably 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 legal settlements and the fees paid to external legal service providers, of $13.9 million and $37.3 million for the three and nine months ended September 30, 2015 , and $ 3.6 million and $ 18.8 million for the three and nine months ended September 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 $8.1 million to $19.5 million in excess of the accrued liability (if any) related to those matters as of September 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. During the course of a routine regulatory examination, the Company agreed with a regulator to make refunds of approximately $16.2 million to certain borrowers related to delays in consummating their loan modifications that were transferred from prior servicers from 2012 through February 2015. The Company will be seeking recourse for some portion of these charges from various counterparties. While the Company has made changes to certain practices regarding the transfer of loan modifications, there can be no assurance that additional amounts will not be assessed as restitution to the borrowers or as a penalty. 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 $30.7 billion of UPB in reverse mortgage loans. As servicer for these reverse mortgage loans, among other things, the Company is obligated to make advances to the loan customers as required. At September 30, 2015 , the Company’s maximum unfunded advance obligation related to these MSRs was approximately $3.3 billion . Upon funding any portion of these advances, the Company expects to securitize and sell the advances in transactions that will be accounted for as a financing arrangement. |
Business Segment Reporting
Business Segment Reporting | 9 Months Ended |
Sep. 30, 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 originated internally, acquired from third parties and loans subserviced for third-parties. 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 originations segment includes the Home Community Mortgage (HCM) joint venture, which Nationstar consolidates. The joint venture partner's share of earnings is reflected in Net gain (loss) attributable to noncontrolling interests. 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, Nationstar 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. During the three and nine months ending September 30, 2014, and $3.4 million and $5.8 million of net income was reclassified 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 September 30, 2015 Servicing Originations Xome Total Operating Corporate and Other Eliminations Consolidated REVENUES: Service related $ 84,641 $ 17,017 $ 109,449 $ 211,107 $ 204 $ — $ 211,311 Net gain on mortgage loans held for sale 22,957 162,918 — 185,875 (3 ) — 185,872 Total revenues 107,598 179,935 109,449 396,982 201 — 397,183 Total expenses 208,103 131,300 92,380 431,783 14,438 446,221 Other income (expense): Interest income 89,097 18,937 — 108,034 4,469 — 112,503 Interest expense (115,307 ) (17,382 ) (27 ) (132,716 ) (43,082 ) — (175,798 ) Gain on sale of property — — — — — — — Gain (loss) on interest rate swaps and caps 99 — — 99 10 — 109 Total other income (expense) (26,111 ) 1,555 (27 ) (24,583 ) (38,603 ) — (63,186 ) Income (loss) before taxes $ (126,616 ) $ 50,190 $ 17,042 $ (59,384 ) $ (52,840 ) $ — $ (112,224 ) Depreciation and amortization $ 4,150 $ 3,674 $ 4,274 $ 12,098 $ 2,548 $ — $ 14,646 Total assets $ 14,129,465 $ 1,902,485 $ 285,294 $ 16,317,244 $ 719,696 $ — $ 17,036,940 For the three months ended September 30, 2014 Servicing Originations Xome Total Operating Corporate and Other Eliminations Consolidated REVENUES: Service related $ 323,459 $ 10,439 $ 79,938 $ 413,836 $ 1,133 $ (53,460 ) $ 361,509 Net gain on mortgage loans held for sale (37,474 ) 128,355 — 90,881 (1,172 ) 53,106 142,815 Total revenues 285,985 138,794 79,938 504,717 (39 ) (354 ) 504,324 Total expenses 163,144 89,369 47,837 300,350 26,874 — 327,224 Other income (expense): Interest income 18,369 18,904 — 37,273 5,687 354 43,314 Interest expense (48,651 ) (17,085 ) (352 ) (66,088 ) (50,585 ) — (116,673 ) Gain on sale of property — — — — 4,898 — 4,898 Gain (loss) on interest rate swaps and caps 795 — — 795 145 — 940 Total other income (expense) (29,487 ) 1,819 (352 ) (28,020 ) (39,855 ) 354 (67,521 ) Income (loss) before taxes $ 93,354 $ 51,244 $ 31,749 $ 176,347 $ (66,768 ) $ — $ 109,579 Depreciation and amortization $ 2,866 $ 1,049 $ 942 $ 4,857 $ 4,705 $ — $ 9,562 Total assets $ 8,387,116 $ 1,929,239 $ 303,489 $ 10,619,844 $ 257,200 $ — $ 10,877,044 For the nine months ended September 30, 2015 Servicing Originations Xome Total Operating Corporate and Other Eliminations Consolidated REVENUES: Service related $ 505,290 $ 37,507 $ 339,239 $ 882,036 $ 2,561 $ (440 ) $ 884,157 Net gain on mortgage loans held for sale 44,807 470,287 — 515,094 1,658 — 516,752 Total revenues 550,097 507,794 339,239 1,397,130 4,219 (440 ) 1,400,909 Total expenses 600,039 348,708 266,203 1,214,950 56,099 — 1,271,049 Other income (expense): Interest income 180,657 51,066 2 231,725 11,267 440 243,432 Interest expense (263,473 ) (46,621 ) (91 ) (310,185 ) (129,124 ) — (439,309 ) Gain (loss) on sale of property — — — — — — — Gain (loss) on interest rate swaps and caps (618 ) — — (618 ) 55 — (563 ) Total other income (expense) (83,434 ) 4,445 (89 ) (79,078 ) (117,802 ) 440 (196,440 ) Income (loss) before taxes $ (133,376 ) $ 163,531 $ 72,947 $ 103,102 $ (169,682 ) $ — $ (66,580 ) Depreciation and amortization $ 12,088 $ 8,835 $ 11,582 $ 32,505 $ 8,761 $ — $ 41,266 Total assets $ 14,129,465 $ 1,902,485 $ 285,294 $ 16,317,244 $ 719,696 $ — $ 17,036,940 For the nine months ended September 30, 2014 Servicing Originations Xome Total Operating Corporate and Other Eliminations Consolidated REVENUES: Service related $ 870,502 $ 38,388 $ 223,078 $ 1,131,968 $ 2,275 $ (54,206 ) $ 1,080,037 Net gain on mortgage loans held for sale (2,972 ) 395,756 — 392,784 (2,223 ) 53,106 443,667 Total revenues 867,530 434,144 223,078 1,524,752 52 (1,100 ) 1,523,704 Total expenses 517,044 291,503 129,679 938,226 56,842 — 995,068 Other income (expense): Interest income 59,191 57,752 — 116,943 12,155 1,100 130,198 Interest expense (199,464 ) (56,333 ) (496 ) (256,293 ) (156,402 ) — (412,695 ) Gain on sale of property — — — — 4,898 — 4,898 Gain (loss) on interest rate swaps and caps 2,156 — — 2,156 652 — 2,808 Total other income (expense) (138,117 ) 1,419 (496 ) (137,194 ) (138,697 ) 1,100 (274,791 ) Income (loss) before taxes $ 212,369 $ 144,060 $ 92,903 $ 449,332 $ (195,487 ) $ — $ 253,845 Depreciation and amortization $ 11,453 $ 7,754 $ 2,764 $ 21,971 $ 7,992 $ — $ 29,963 Total assets $ 8,387,116 $ 1,929,239 $ 303,489 $ 10,619,844 $ 257,200 $ — $ 10,877,044 |
Guarantor Financial Statement I
Guarantor Financial Statement Information | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Guarantor Financial Statement Information | Guarantor Financial Statement Information As of September 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 SEPTEMBER 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ — $ 575,045 $ 3,802 $ 17,760 $ — $ 596,607 Restricted cash — 186,363 3 290,866 — 477,232 Mortgage servicing rights — 3,242,356 — — — 3,242,356 Advances — 2,127,044 — 20 — 2,127,064 Reverse mortgage interests — 6,919,338 — 514,378 — 7,433,716 Mortgage loans held for sale — 1,742,100 — 143,505 — 1,885,605 Mortgage loans held for investment, net — 951 — 178,037 — 178,988 Property and equipment, net — 110,064 870 26,935 — 137,869 Derivative financial instruments — 92,960 — 5,404 — 98,364 Other assets 10,205 932,014 297,521 1,378,894 (1,759,495 ) 859,139 Investment in subsidiaries 1,685,718 511,268 — — (2,196,986 ) — Total assets $ 1,695,923 $ 16,439,503 $ 302,196 $ 2,555,799 $ (3,956,481 ) $ 17,036,940 Liabilities and stockholders’ equity Unsecured senior notes $ — $ 2,157,973 $ — $ — $ — $ 2,157,973 Advance facilities — 279,610 — 1,470,827 — 1,750,437 Warehouse facilities — 2,170,945 — 132,619 — 2,303,564 Payables and accrued liabilities — 1,236,858 1,597 53,073 — 1,291,528 MSR related liabilities - nonrecourse — 1,172,471 — — — 1,172,471 Derivative financial instruments — 28,525 — — — 28,525 Mortgage servicing liabilities — 27,624 — — — 27,624 Payables to affiliates — 1,637,189 894 121,412 (1,759,495 ) — Other nonrecourse debt — 6,042,590 — 566,305 — 6,608,895 Total liabilities — 14,753,785 2,491 2,344,236 (1,759,495 ) 15,341,017 Total equity 1,695,923 1,685,718 299,705 211,563 (2,196,986 ) 1,695,923 Total liabilities and equity $ 1,695,923 $ 16,439,503 $ 302,196 $ 2,555,799 $ (3,956,481 ) $ 17,036,940 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related $ — $ 96,086 $ 15,672 $ 99,553 $ 211,311 Net gain on mortgage loans held for sale — 174,127 — 11,745 — 185,872 Total revenues — 270,213 15,672 111,298 — 397,183 Expenses: Salaries, wages and benefits — 141,254 3,199 56,147 — 200,600 General and administrative — 199,900 1,734 43,987 — 245,621 Total expenses — 341,154 4,933 100,134 — 446,221 Other income/(expense): Interest income — 101,613 — 10,890 112,503 Interest expense — (157,197 ) — (18,601 ) — (175,798 ) Gain on interest rate swaps and caps — 10 — 99 — 109 Gain/(loss) from subsidiaries (66,342 ) 15,241 — — 51,101 — Total other income/(expense) (66,342 ) (40,333 ) — (7,612 ) 51,101 (63,186 ) Income/(loss) before taxes (66,342 ) (111,274 ) 10,739 3,552 51,101 (112,224 ) Income tax expense/(benefit) — (45,974 ) (1,323 ) 2 — (47,295 ) Net income/(loss) (66,342 ) (65,300 ) 12,062 3,550 51,101 (64,929 ) Less: net gain attributable to noncontrolling interests — 1,042 — 371 — 1,413 Net income/(loss) excluding noncontrolling interests $ (66,342 ) $ (66,342 ) $ 12,062 $ 3,179 $ 51,101 $ (66,342 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related $ — $ 528,839 $ 13,033 $ 342,285 $ — $ 884,157 Net gain on mortgage loans held for sale — 483,922 — 32,830 — 516,752 Total revenues — 1,012,761 13,033 375,115 — 1,400,909 Expenses: Salaries, wages and benefits — 411,017 3,626 163,069 — 577,712 General and administrative — 557,847 1,928 133,562 — 693,337 Total expenses — 968,864 5,554 296,631 — 1,271,049 Other income/(expense): Interest income — 215,663 — 27,769 — 243,432 Interest expense — (388,024 ) — (51,285 ) — (439,309 ) Gain on interest rate swaps and caps — 55 — (618 ) — (563 ) Gain/(loss) from subsidiaries (40,098 ) 61,615 — — (21,517 ) — Total other income/(expense) (40,098 ) (110,691 ) — (24,134 ) (21,517 ) (196,440 ) Income/(loss) before taxes (40,098 ) (66,794 ) 7,479 54,350 (21,517 ) (66,580 ) Income tax expense/(benefit) — (30,659 ) — 10 — (30,649 ) Net income/(loss) (40,098 ) (36,135 ) 7,479 54,340 (21,517 ) (35,931 ) Less: net gain attributable to noncontrolling interests — 3,963 — 204 — 4,167 Net income/(loss) excluding noncontrolling interests $ (40,098 ) $ (40,098 ) $ 7,479 $ 54,136 $ (21,517 ) $ (40,098 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating Activities: Net income/(loss) $ (40,098 ) $ (40,098 ) $ 7,479 $ 54,136 $ (21,517 ) $ (40,098 ) Reconciliation of net income to net cash attributable to operating activities: (Gain)/loss from subsidiaries 40,098 (61,615 ) — — 21,517 — Noncontrolling interest 3,963 204 4,167 Share-based compensation — 8,476 — 6,861 — 15,337 Net tax effect of stock grants — (1,095 ) — — — (1,095 ) Loss on foreclosed real estate and other — — — — — — Gain on mortgage loans held for sale — (481,039 ) — (35,713 ) — (516,752 ) Mortgage loans originated and purchased, net of fees — (13,136,799 ) — (833,236 ) — (13,970,035 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (1,392,858 ) — — — (1,392,858 ) Proceeds on sale of and payments of mortgage loans held for sale — 14,277,068 — 771,746 — 15,048,814 (Gain)/loss on derivatives including ineffectiveness — (55 ) — 618 — 563 Depreciation and amortization — 29,672 — 11,594 — 41,266 Amortization/(accretion) of premiums/(discounts) — (4,028 ) — (3,367 ) — (7,395 ) Fair value changes in excess spread financing — (23,357 ) — — — (23,357 ) Fair value changes and amortization/accretion of mortgage servicing rights — 499,905 — — — 499,905 Fair value change in mortgage servicing rights financing liability — 7,093 — — — 7,093 Changes in assets and liabilities: Advances — 417,021 — 2,277 — 419,298 Reverse mortgage interests — 8,147 — (173,110 ) — (164,963 ) Other assets 6,200 167,774 (5,703 ) (22,564 ) — 145,707 Payables and accrued liabilities — (125,407 ) 1,572 (3,120 ) — (126,955 ) Net cash attributable to operating activities $ 6,200 $ 152,768 $ 3,552 $ (223,878 ) $ — $ (61,358 ) Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities: Property and equipment additions, net of disposals — (23,446 ) (35 ) (20,588 ) — (44,069 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (4,815,684 ) — — — (4,815,684 ) Purchases of reverse mortgage servicing rights and interests — (614,602 ) — — — (614,602 ) Sale of forward service rights — 41,197 — — — 41,197 Acquisitions, net — — — (44,858 ) — (44,858 ) Net cash attributable to investing activities — (5,412,535 ) (35 ) (65,446 ) — (5,478,016 ) Financing activities: Transfers to/from restricted cash, net — (9,273 ) (3 ) (182,426 ) — (191,702 ) Issuance of common stock, net of issuance cost — 497,761 — — — 497,761 Debt financing costs — (10,668 ) — — — (10,668 ) Increase (decrease) advance facilities — 630,952 — 99,990 — 730,942 Increase (decrease) warehouse facilities — (291,182 ) — 139,836 — (151,346 ) Proceeds from HECM Securitizations — — — 342,403 — 342,403 Repayment of HECM Securitizations — — — (102,687 ) — (102,687 ) Issuance of excess spread financing — 262,976 — — — 262,976 Repayment of excess spread financing — (154,706 ) — — — (154,706 ) Increase in participating interest financing in reverse mortgage interests — 4,629,380 — — — 4,629,380 Repayment of nonrecourse debt–Legacy assets — (1,293 ) — (8,976 ) — (10,269 ) Net tax benefit for stock grants issued — 1,095 — — — 1,095 Redemption of shares for stock vesting (6,200 ) — — — — (6,200 ) Net cash attributable to financing activities (6,200 ) 5,555,042 (3 ) 288,140 — 5,836,979 Net increase/(decrease) in cash — 295,275 3,514 (1,184 ) — 297,605 Cash and cash equivalents at beginning of period $ — $ 279,770 $ 288 $ 18,944 $ — $ 299,002 Cash and cash equivalents at end of period $ — $ 575,045 $ 3,802 $ 17,760 $ — $ 596,607 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 SEPTEMBER 30, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related $ — $ 310,821 $ (12,969 ) $ 80,790 $ (17,133 ) $ 361,509 Net gain on mortgage loans held for sale — 121,912 — 4,124 16,779 142,815 Total revenues — 432,733 (12,969 ) 84,914 (354 ) 504,324 Expenses: Salaries, wages and benefits — 135,686 750 24,321 — 160,757 General and administrative — 137,192 (2,958 ) 32,233 — 166,467 Total expenses — 272,878 (2,208 ) 56,554 — 327,224 Other income/(expense): Interest income — 38,403 — 4,557 354 43,314 Interest expense — (106,771 ) — (9,902 ) — (116,673 ) Gain on disposal of property — 4,898 — — — 4,898 Gain/(loss) on interest rate swaps and caps — 145 — 795 — 940 Gain/(loss) from subsidiaries 111,225 13,049 — — (124,274 ) — Total other income/(expense) 111,225 (50,276 ) — (4,550 ) (123,920 ) (67,521 ) Income before taxes 111,225 109,579 (10,761 ) 23,810 (124,274 ) 109,579 Income tax expense/(benefit) — (1,700 ) — — — (1,700 ) Net Income/(loss) 111,225 111,279 (10,761 ) 23,810 (124,274 ) 111,279 Less: net gain attributable to noncontrolling interests — 54 — — — 54 Net income/(loss) excluding noncontrolling interests $ 111,225 $ 111,225 $ (10,761 ) $ 23,810 $ (124,274 ) $ 111,225 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related $ — $ 878,169 $ 45,586 $ 210,488 $ (54,206 ) $ 1,080,037 Net gain on mortgage loans held for sale — 386,461 — 4,100 53,106 443,667 Total revenues — 1,264,630 45,586 214,588 (1,100 ) 1,523,704 Expenses: Salaries, wages and benefits — 418,190 4,257 48,957 — 471,404 General and administrative — 427,669 1,738 94,257 — 523,664 Total expenses — 845,859 5,995 143,214 — 995,068 Other income/(expense): Interest income — 116,258 — 12,840 1,100 130,198 Interest expense — (367,784 ) — (44,911 ) — (412,695 ) Gain on disposal of property — 4,898 — — — 4,898 Gain/(loss) on interest rate swaps and caps — 652 — 2,156 — 2,808 Gain/(loss) from subsidiaries 201,716 81,050 — — (282,766 ) — Total other income/(expense) 201,716 (164,926 ) — (29,915 ) (281,666 ) (274,791 ) Income before taxes 201,716 253,845 39,591 41,459 (282,766 ) 253,845 Income tax expense/(benefit) — 52,242 — — — 52,242 Net Income/(loss) 201,716 201,603 39,591 41,459 (282,766 ) 201,603 Less: net gain attributable to noncontrolling interests — (113 ) — — — (113 ) Net income/(loss) excluding noncontrolling interests $ 201,716 $ 201,716 $ 39,591 $ 41,459 $ (282,766 ) $ 201,716 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities: Net income/(loss) $ 201,716 $ 201,716 $ 39,591 $ 41,459 $ (282,766 ) $ 201,716 Reconciliation of net income to net cash attributable to operating activities: (Gain)/loss from subsidiaries (201,716 ) (81,050 ) — — 282,766 — Noncontrolling interest — 306 — — — 306 Share-based compensation — 11,344 — — — 11,344 Excess tax benefit from share based compensation — (2,197 ) — — — (2,197 ) Net (gain)/loss on mortgage loans held for sale — (386,461 ) — (4,100 ) (53,106 ) (443,667 ) Mortgage loans originated and purchased, net of fees — (13,272,856 ) — — — (13,272,856 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (3,284,336 ) — — — (3,284,336 ) Proceeds on sale of and payments of mortgage loans held for sale and held for investment — 17,589,098 — (25,493 ) 53,106 17,616,711 (Gain)/loss on swaps and caps — (652 ) — (2,156 ) — (2,808 ) Cash settlement on derivative financial instruments — — — 1,352 — 1,352 Depreciation and amortization — 27,148 89 2,726 — 29,963 Amortization/(accretion) of premiums/(discounts) — 18,578 — (1,918 ) — 16,660 Fair value changes in excess spread financing — 61,080 — — — 61,080 Fair value changes and amortization/accretion of mortgage servicing rights — 128,227 — — — 128,227 Fair value change in mortgage servicing rights financing liability — (38,260 ) — — — (38,260 ) Changes in assets and liabilities: Advances — (3,332,289 ) 467 3,996,133 — 664,311 Reverse mortgage interests — (630,139 ) — — — (630,139 ) Other assets 4,755 1,864,514 (37,347 ) (1,558,527 ) 69 273,464 Payables and accrued liabilities — (38,453 ) (5,950 ) 19,011 (69 ) (25,461 ) Net cash attributable to operating activities $ 4,755 $ (1,164,682 ) $ (3,150 ) $ 2,468,487 $ — $ 1,305,410 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities: Property and equipment additions, net of disposals — (29,517 ) (69 ) (11,981 ) — (41,567 ) Gain on disposal of building — 10,412 — — — 10,412 Purchase of forward mortgage servicing rights, net of liabilities incurred — (317,247 ) — — — (317,247 ) Proceeds from sale of servicer advances — 512,527 — — — 512,527 Proceeds from sales of REO — — — — — — Acquisitions, net — (18,000 ) — — — (18,000 ) Net cash attributable to investing activities — 158,175 (69 ) (11,981 ) — 146,125 Financing activities: Transfers to/from restricted cash — 100,185 3 182,101 — 282,289 Repayment of unsecured senior notes — (285,000 ) — — — (285,000 ) Debt financing costs — (11,461 ) — — — (11,461 ) Increase/(decrease) in advance facilities — 687,306 — (2,127,044 ) — (1,439,738 ) Increase/(decrease) in warehouse facilities — — — (502,403 ) — (502,403 ) Issuance of excess spread financing — 150,951 — — — 150,951 Repayment of excess servicing spread financing — (135,897 ) — — — (135,897 ) Increase in participating interest financing in reverse mortgage interests — 279,636 — — — 279,636 Proceeds from mortgage servicing rights financing — 52,835 — — — 52,835 Repayment of nonrecourse debt–Legacy assets — — — (12,356 ) — (12,356 ) Excess tax benefit from share-based compensation — 2,197 — — — 2,197 Surrender of shares relating to stock vesting (4,755 ) — — — — (4,755 ) Net cash attributable to financing activities (4,755 ) 840,752 3 (2,459,702 ) — (1,623,702 ) Net increase in cash and cash equivalents — (165,755 ) (3,216 ) (3,196 ) — (172,167 ) Cash and cash equivalents at beginning of period — 422,268 3,907 15,727 — 441,902 Cash and cash equivalents at end of period $ — $ 256,513 $ 691 $ 12,531 $ — $ 269,735 |
Disclosures Related to Transact
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC | Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC 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 , at September 30, 2015 and December 31, 2014, respectively. During the three months ended September 30, 2015 and 2014, Nationstar received servicing fees and other performance incentive fees of $0.9 million and $1.0 million , respectively. During the nine months ended September 30, 2015 and 2014, Nationstar received servicing fees and other performance incentive fees of $2.7 million and $3.1 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, from inception in 2012 through September 30, 2015 , Nationstar paid $29.7 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 $1.1 billion and $1.0 billion at September 30, 2015 and December 31, 2014, respectively. Mortgage Servicing Rights Financing Liability During 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 $ 56.5 million and $49.4 million at September 30, 2015 and December 31, 2014, respectively. Other During 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. During the three and nine months ended September 30, 2015 , Nationstar recognized revenue of $0.9 million and $3.0 million , respectively, related to these servicing arrangements. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events During October 2015, Nationstar created a new VIE called Nationstar Advance Agency Receivables Trust (NAART), with $550 million of borrowing capacity, which will engage in forward mortgage securitization activity. |
Nature of Business and Basis 27
Nature of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 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 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 (GAAP) 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 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 (MS28
Mortgage Servicing Rights (MSR) and Related Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Transfers and Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | MSRs and Related Liabilities September 30, 2015 December 31, 2014 MSRs - fair value $ 3,233,041 $ 2,949,739 MSRs - LOCOM 9,315 11,582 Mortgage servicing rights 3,242,356 2,961,321 Mortgage servicing liabilities 27,624 65,382 Excess spread financing - fair value 1,115,949 1,031,035 Mortgage servicing rights financing liability - fair value 56,522 49,430 MSR related liabilities (nonrecourse) $ 1,172,471 $ 1,080,465 The following table provides a breakdown of the total credit and interest sensitive unpaid principal balances (UPBs) for Nationstar's forward owned MSRs. September 30, 2015 December 31, 2014 UPB Fair Value UPB Fair Value Credit sensitive $ 235,392,069 $ 1,987,356 $ 241,769,601 $ 1,919,290 Interest sensitive 119,251,923 1,245,685 91,843,044 1,030,449 $ 354,643,992 $ 3,233,041 $ 333,612,645 $ 2,949,739 The activity of MSRs carried at fair value is as follows for the dates indicated: For the three months ended September 30, For the nine months ended September 30, MSRs - Fair Value 2015 2014 2015 2014 Fair value at the beginning of the period $ 3,350,298 $ 2,678,134 $ 2,949,739 $ 2,488,283 Additions: Servicing resulting from transfers of financial assets 63,900 65,610 169,406 185,822 Purchases of servicing assets 200,922 159,773 695,067 353,450 Dispositions: Dispositions (45,774 ) — (45,774 ) — Changes in fair value: Due to changes in valuation inputs or assumptions used in the valuation model (215,384 ) 89,528 (197,037 ) 114,349 Other changes in fair value (120,921 ) (94,836 ) (338,360 ) (243,695 ) Fair value at the end of the period $ 3,233,041 $ 2,898,209 $ 3,233,041 $ 2,898,209 |
Schedule of Assumptions for Fair Value of Mortgage Service Rights | 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 September 30, 2015 Low 8.0% 3.9 years 8.5% 6.8% High 18.7% 7.6 years 14.2% 30.3% Weighted-average 12.3% 5.72 years 11.2% 17.5% December 31, 2014 Low 6.2% 4.0 years 8.5% 6.7% High 19.4% 7.1 years 14.2% 31.3% Weighted-average 12.5% 5.6 years 11.5% 16.8% Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated: Credit Sensitive September 30, 2015 December 31, 2014 Discount rate 11.63 % 11.96 % Total prepayment speeds 17.17 % 18.58 % Expected weighted-average life 5.71 years 5.39 years Interest Sensitive September 30, 2015 December 31, 2014 Discount rate 9.13 % 9.09 % Total prepayment speeds 13.56 % 11.27 % Expected weighted-average life 5.68 years 6.49 years The weighted average assumptions used in Nationstar's valuation of Mortgage Servicing Rights Financing were as follows: September 30, 2015 December 31, 2014 Advance financing rates 2.86 % 2.79 % Annual advance recovery rates 24.67 % 27.55 % |
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 September 30, 2015 Excess spread financing $ 40,456 $ 84,079 $ 38,419 $ 80,733 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 September 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 September 30, 2015 Mortgage servicing rights $ (106,438 ) $ (205,891 ) $ (163,547 ) $ (236,670 ) 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 nine months ended September 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 (2,267 ) (37,759 ) (2,448 ) (3,567 ) Balance at end of the period $ 9,315 $ 27,623 $ 12,431 $ 78,954 Fair value at end of period $ 30,147 $ 11,438 $ 35,475 $ 61,853 |
Advances (Tables)
Advances (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | September 30, 2015 December 31, 2014 Agency $ 1,273,618 $ 1,805,412 Non-agency $ 853,446 $ 740,950 Total advances, net $ 2,127,064 $ 2,546,362 |
Reverse Mortgage Interests (Tab
Reverse Mortgage Interests (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Reverse Mortgage Interests [Abstract] | |
Reverse Mortgage Interest | September 30, 2015 December 31, 2014 Participating interests $ 5,957,413 $ 1,363,225 Other interests securitized 514,378 341,268 Unsecuritized interests 990,998 752,801 Reserve for servicing losses (29,073 ) (4,225 ) Total reverse mortgage interests $ 7,433,716 $ 2,453,069 |
Mortgage Loans Held for Sale 31
Mortgage Loans Held for Sale and Investment (Tables) | 9 Months Ended |
Sep. 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: September 30, 2015 December 31, 2014 Mortgage loans held for sale – unpaid principal balance $ 1,802,914 $ 1,218,596 Mark-to-market adjustment (1) 82,691 59,335 Total mortgage loans held for sale $ 1,885,605 $ 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. Nationstar accrues interest income as earned. Nationstar places loans on non-accrual status after any portion of principal or interest has been delinquent for more than 90 days. When Nationstar places a loan on non-accrual status, Nationstar reverses the interest that had been accrued but not yet received. The total UPB of mortgage loans held for sale on nonaccrual status was as follows for the dates indicated: September 30, 2015 December 31, 2014 Mortgage Loans Held for Sale - Unpaid Principal Balance UPB Fair Value UPB Fair Value Nonaccrual $ 27,672 $ 25,037 $ 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 September 30, 2015 December 31, 2014 Foreclosure $ 20,773 $ 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 September 30, 2015 December 31, 2014 Foreclosure $ 46,914 $ 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 nine months ended September 30, 2015 2014 Mortgage loans held for sale – beginning balance $ 1,277,931 $ 2,603,380 Mortgage loans originated and purchased, net of fees 13,970,035 13,272,856 Repurchase of loans out of Ginnie Mae securitizations 1,368,547 3,275,202 Claims made to third parties (1) (45,537 ) (145,480 ) Proceeds on sale of and payments of mortgage loans held for sale (15,034,841 ) (17,601,712 ) Gain on sale of mortgage loans (2) 349,470 292,795 Mortgage loans held for sale – ending balance $ 1,885,605 $ 1,697,041 (1) This is comprised of claims made on certain government guaranteed mortgage loans upon foreclosure based on the adoption of ASU 2014-14. (2) 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. |
Schedule of Loans Held for Investment | Mortgage loans held for investment, net as of the dates indicated include: September 30, 2015 December 31, 2014 Mortgage loans held for investment, net – unpaid principal balance $ 257,763 $ 276,820 Transfer discount: Accretable (14,586 ) (15,503 ) Non-accretable (60,640 ) (66,217 ) Allowance for loan losses (3,549 ) (3,531 ) Total mortgage loans held for investment, net $ 178,988 $ 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 nine months ended September 30, 2015 For the year ended December 31, 2014 Accretable Yield Balance at the beginning of the period $ 15,503 $ 17,362 Accretion (2,081 ) (2,955 ) Reclassifications from (to) nonaccretable discount 1,164 1,096 Balance at the end of the period $ 14,586 $ 15,503 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following: September 30, 2015 December 31, 2014 Receivables from trusts, agencies and prior servicers, net 1 $ 373,248 $ 386,166 Accrued revenues 174,611 154,436 Loans subject to repurchase right from Ginnie Mae 96,574 131,592 Goodwill 68,537 54,701 Intangible assets 43,498 19,622 Deferred financing costs 40,183 46,986 Prepaid expenses 18,424 9,837 Collateral deposits on derivative instruments 13,684 9,810 Real estate owned (REO), net 2,310 1,625 Accrued interest 887 1,890 Other 27,183 60,564 Total other assets $ 859,139 $ 877,229 1 Net of reserves of $153 million and $108 million as of September 30, 2015 and December 31, 2014, respectively. |
Derivative Financial Instrume33
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2015 Assets Mortgage loans held for sale Loan sale commitments 2015 $ 417 $ 4 $ 8 Derivative financial instruments IRLCs 2015 2,764,748 89,965 2,064 Forward MBS trades 2015 252,400 115 (169 ) LPCs 2015 766,474 8,280 6,281 Interest rate swaps and caps 2015-2016 1,200,000 4 — Liabilities Derivative financial instruments IRLCs 2015 2,856 12 (5 ) Forward MBS trades 2015 3,929,100 26,561 (8,202 ) LPCs 2015 207,530 1,630 (1,582 ) Interest rate swaps and caps 2017 27,412 48 (563 ) Eurodollar futures 2015-2020 298,000 274 (267 ) 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) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | A summary of the balances of other nonrecourse debt is presented below: September 30, 2015 December 31, 2014 Participating interest financing $ 6,042,589 $ 1,433,145 2014-1 HECM securitization 249,745 259,328 2015-1 HECM securitization 248,664 — Nonrecourse debt - legacy assets 67,897 75,838 Total $ 6,608,895 $ 1,768,311 Notes Payable September 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 $ 73,707 $ 80,839 $ 363,014 $ 418,126 Securities repurchase facility (2011) LIBOR +3.50% 90 day revolving Nonrecourse debt - Legacy Assets — 33,973 55,603 34,613 55,603 Nationstar agency advance financing facility (1) LIBOR+1.20% to 3.75% December 2015 Servicing advance receivables 1,300,000 1,114,608 1,243,797 805,706 885,115 MBS advance financing facility (2012) LIBOR+5.00% April 2016 Servicing advance receivables 50,000 48,822 58,439 42,472 50,758 Nationstar mortgage advance receivable LIBOR+1.15% to 5.30% June 2018 Servicing advance receivables 500,000 262,677 305,279 419,170 471,243 MBS servicer advance facility (2014) LIBOR+3.50% August 2016 Servicing advance receivables 125,000 123,108 184,084 79,084 138,010 Nationstar servicer advance receivables trust 2014 - BC LIBOR+1.50% to 3.00% November 2015 Servicing advance receivables 200,000 93,542 106,012 106,115 121,030 Securities repurchase facility (2014) LIBOR+1.50% to 2.00% November 2017 Securities — — — 51,609 74,525 $ 1,750,437 $ 2,034,053 $ 1,901,783 $ 2,214,410 September 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 2016 Mortgage loans or MBS $ 1,300,000 $ 874,514 $ 931,140 $ 663,167 $ 697,257 $1.0 billion warehouse facility LIBOR+1.75% to 3.25% June 2016 Mortgage loans or MBS 1,000,000 603,348 658,317 307,294 320,285 $500 million warehouse facility LIBOR+1.75% to 2.75% September 2016 Mortgage loans or MBS 500,000 233,941 239,266 176,194 179,994 $500 million warehouse facility LIBOR+ 1.50% to 2.00% November 2015 Mortgage loans or MBS 500,000 241,655 255,152 183,290 192,990 $350 million warehouse facility LIBOR+2.20% to 4.50% March 2016 Mortgage loans or MBS 350,000 119,460 131,923 210,049 223,849 $200 million warehouse facility LIBOR+1.50% April 2016 Mortgage loans or MBS 200,000 98,028 100,420 — — $75 million warehouse facility (HCM) (2) LIBOR+ 2.25% to 2.875% October 2016 Mortgage loans or MBS 75,000 66,537 68,424 23,949 29,324 $100 million warehouse facility (HCM) LIBOR + 2.50% to 2.75% November 2015 Mortgage loans or MBS 100,000 66,081 69,699 8,679 9,044 ASAP+ facility LIBOR+1.50% Up to 45 days GSE mortgage loans or GSE MBS — — — — — $ 2,303,564 $ 2,454,341 $ 1,572,622 $ 1,652,743 Mortgage loans $ 1,806,622 $ 1,905,288 $ 1,196,956 $ 1,241,043 Reverse mortgage interests $ 496,942 $ 549,053 $ 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 2.07% 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). |
Schedule of Unsecured Senior Notes | A summary of the balances of Unsecured Senior Notes is presented below: September 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 377,951 378,555 $400 million face value, 7.875% interest rate payable semi-annually, due October 2020 400,472 400,541 $600 million face value, 6.500% interest rate payable semi-annually, due July 2021 604,550 605,135 $300 million face value, 6.500% interest rate payable semi-annually, due June 2022 300,000 300,000 Total $ 2,157,973 $ 2,159,231 |
Schedule of Maturities of Long-term Debt | At September 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 |
Payables and Accrued Liabilit35
Payables and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Payables and Accrued Liabilities | Payables and accrued liabilities consist of the following: September 30, 2015 December 31, 2014 Payables to servicing and subservicing investors $ 432,092 $ 329,306 Payables to GSEs 101,128 67,311 Payables to securitization trusts 105,708 99,137 Loans subject to repurchase from Ginnie Mae 96,574 131,592 Accrued bonus and payroll 92,356 85,366 MSR purchases payable including advances 80,466 45,697 Payable to insurance carriers and insurance cancellation reserves 78,417 163,381 Accrued interest 64,809 59,708 Taxes 31,965 96,237 Repurchase reserves 28,086 29,165 Other 179,927 215,178 Total payables and accrued liabilities $ 1,291,528 $ 1,322,078 |
Securitizations and Financings
Securitizations and Financings (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Assets and Liabilities of VIEs Included in Financial Statements | A summary of the assets and liabilities of Nationstar’s transactions with VIEs included in the Company’s consolidated financial statements is presented below for the periods indicated: September 30, 2015 December 31, 2014 Transfers Reverse Secured Borrowings Transfers Reverse Secured Borrowings Assets Restricted cash $ 262,527 $ 24,882 $ 90,068 $ 15,578 Reverse mortgage interests — 6,471,791 — 1,642,789 Advances 1,655,087 — 1,477,388 — Mortgage loans held for investment, net 178,037 — 189,456 — Derivative financial instruments 99 — 865 — Other assets 3,309 — 2,678 — Total assets $ 2,099,059 $ 6,496,673 $ 1,760,455 $ 1,658,367 Liabilities Advance facilities $ 1,470,827 $ — $ 1,330,991 $ — Payables and accrued liabilities 1,580 380 1,596 186 Nonrecourse debt–legacy assets 67,896 — 75,838 — 2014-1 HECM securitization — 249,745 — 259,328 2015-1 HECM Securitization — 248,664 — — Participating interest financing — 6,042,589 — 1,433,145 Total liabilities $ 1,540,303 $ 6,541,378 $ 1,408,425 $ 1,692,659 A summary of the outstanding collateral and certificate balances for securitization trusts for which Nationstar was the transferor, including any retained beneficial interests and MSRs, that were not consolidated by Nationstar for the periods indicated are as follows: September 30, 2015 December 31, 2014 Total collateral balances $ 3,218,013 $ 3,258,472 Total certificate balances 2,903,368 3,297,256 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 September 30, 2015 December 31, 2014 Unconsolidated securitization trusts $ 775,915 $ 861,419 For the three months ended September 30, For the nine months ended September 30, Credit Losses 2015 2014 2015 2014 Unconsolidated securitization trusts $ 61,344 $ 71,575 $ 176,564 $ 219,189 Certain cash flows received from securitization trusts related to the transfer of mortgage loans accounted for as sales for the dates indicated were as follows: For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 Servicing Fees Loan Servicing Fees Loan Servicing Fees Loan Servicing Fees Loan Unconsolidated securitization trusts $ 5,590 $ — $ 2,632 $ — $ 18,453 $ — $ 20,818 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax (benefit) expense was as follows: For the three months ended September 30, For the nine months ended September 30, 2015 2014 2015 2014 Income tax (benefit) expense $ (47,295 ) $ (1,700 ) $ (30,649 ) $ 52,242 Effective tax rate 42.1 % (1.6 )% 46.0 % 20.6 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 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: September 30, 2015 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 ASSETS Mortgage loans held for sale (1) $ 1,885,605 $ — $ 1,885,605 $ — Mortgage servicing rights (1) 3,233,041 — — 3,233,041 Derivative financial instruments: IRLCs 89,965 — 89,965 — Forward MBS trades 115 — 115 — LPCs 8,280 — 8,280 — Interest rate swaps and caps 4 — 4 — Total assets $ 5,217,010 $ — $ 1,983,969 $ 3,233,041 LIABILITIES Derivative financial instruments IRLCs 12 — 12 — Interest rate swaps and caps 48 — 48 — Forward MBS trades 26,561 — 26,561 — LPCs 1,630 — 1,630 — Eurodollar futures 274 — 274 — Mortgage servicing rights financing 56,522 — — 56,522 Excess spread financing 1,115,949 — — 1,115,949 Total liabilities $ 1,200,996 $ — $ 28,525 $ 1,172,471 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 nine months ended September 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 (535,397 ) (23,356 ) 7,092 Included in other comprehensive income — — — Purchases, issuances, sales and settlements Purchases 695,067 — — Issuances 169,406 262,976 — Sales — — — Settlements — (154,706 ) — Dispositions (45,774 ) — — Ending balance $ 3,233,041 $ 1,115,949 $ 56,522 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. September 30, 2015 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 596,607 $ 596,607 $ — $ — Restricted cash 477,232 477,232 — — Mortgage loans held for sale 1,885,605 — 1,885,605 — Mortgage loans held for investment, net 178,988 — — 176,829 Reverse mortgage interests 7,433,716 — — 7,445,241 Derivative financial instruments 98,364 — 98,364 — Financial liabilities: Unsecured senior notes 2,157,973 2,012,223 — — Advance facilities 1,750,437 — 1,750,437 — Warehouse facilities 2,303,564 — 2,303,564 — Derivative financial instruments 28,525 — 28,525 — Excess spread financing 1,115,949 — — 1,115,949 Mortgage servicing rights financing liability 56,522 — — 56,522 Nonrecourse debt - legacy assets 67,897 — — 78,228 Participating interest financing 6,042,589 — 6,011,914 — 2014-1 HECM securitization 249,745 — — 317,103 2015-1 HECM securitization 248,664 — — 308,625 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) | 9 Months Ended |
Sep. 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 September 30, 2015 Servicing Originations Xome Total Operating Corporate and Other Eliminations Consolidated REVENUES: Service related $ 84,641 $ 17,017 $ 109,449 $ 211,107 $ 204 $ — $ 211,311 Net gain on mortgage loans held for sale 22,957 162,918 — 185,875 (3 ) — 185,872 Total revenues 107,598 179,935 109,449 396,982 201 — 397,183 Total expenses 208,103 131,300 92,380 431,783 14,438 446,221 Other income (expense): Interest income 89,097 18,937 — 108,034 4,469 — 112,503 Interest expense (115,307 ) (17,382 ) (27 ) (132,716 ) (43,082 ) — (175,798 ) Gain on sale of property — — — — — — — Gain (loss) on interest rate swaps and caps 99 — — 99 10 — 109 Total other income (expense) (26,111 ) 1,555 (27 ) (24,583 ) (38,603 ) — (63,186 ) Income (loss) before taxes $ (126,616 ) $ 50,190 $ 17,042 $ (59,384 ) $ (52,840 ) $ — $ (112,224 ) Depreciation and amortization $ 4,150 $ 3,674 $ 4,274 $ 12,098 $ 2,548 $ — $ 14,646 Total assets $ 14,129,465 $ 1,902,485 $ 285,294 $ 16,317,244 $ 719,696 $ — $ 17,036,940 For the three months ended September 30, 2014 Servicing Originations Xome Total Operating Corporate and Other Eliminations Consolidated REVENUES: Service related $ 323,459 $ 10,439 $ 79,938 $ 413,836 $ 1,133 $ (53,460 ) $ 361,509 Net gain on mortgage loans held for sale (37,474 ) 128,355 — 90,881 (1,172 ) 53,106 142,815 Total revenues 285,985 138,794 79,938 504,717 (39 ) (354 ) 504,324 Total expenses 163,144 89,369 47,837 300,350 26,874 — 327,224 Other income (expense): Interest income 18,369 18,904 — 37,273 5,687 354 43,314 Interest expense (48,651 ) (17,085 ) (352 ) (66,088 ) (50,585 ) — (116,673 ) Gain on sale of property — — — — 4,898 — 4,898 Gain (loss) on interest rate swaps and caps 795 — — 795 145 — 940 Total other income (expense) (29,487 ) 1,819 (352 ) (28,020 ) (39,855 ) 354 (67,521 ) Income (loss) before taxes $ 93,354 $ 51,244 $ 31,749 $ 176,347 $ (66,768 ) $ — $ 109,579 Depreciation and amortization $ 2,866 $ 1,049 $ 942 $ 4,857 $ 4,705 $ — $ 9,562 Total assets $ 8,387,116 $ 1,929,239 $ 303,489 $ 10,619,844 $ 257,200 $ — $ 10,877,044 For the nine months ended September 30, 2015 Servicing Originations Xome Total Operating Corporate and Other Eliminations Consolidated REVENUES: Service related $ 505,290 $ 37,507 $ 339,239 $ 882,036 $ 2,561 $ (440 ) $ 884,157 Net gain on mortgage loans held for sale 44,807 470,287 — 515,094 1,658 — 516,752 Total revenues 550,097 507,794 339,239 1,397,130 4,219 (440 ) 1,400,909 Total expenses 600,039 348,708 266,203 1,214,950 56,099 — 1,271,049 Other income (expense): Interest income 180,657 51,066 2 231,725 11,267 440 243,432 Interest expense (263,473 ) (46,621 ) (91 ) (310,185 ) (129,124 ) — (439,309 ) Gain (loss) on sale of property — — — — — — — Gain (loss) on interest rate swaps and caps (618 ) — — (618 ) 55 — (563 ) Total other income (expense) (83,434 ) 4,445 (89 ) (79,078 ) (117,802 ) 440 (196,440 ) Income (loss) before taxes $ (133,376 ) $ 163,531 $ 72,947 $ 103,102 $ (169,682 ) $ — $ (66,580 ) Depreciation and amortization $ 12,088 $ 8,835 $ 11,582 $ 32,505 $ 8,761 $ — $ 41,266 Total assets $ 14,129,465 $ 1,902,485 $ 285,294 $ 16,317,244 $ 719,696 $ — $ 17,036,940 For the nine months ended September 30, 2014 Servicing Originations Xome Total Operating Corporate and Other Eliminations Consolidated REVENUES: Service related $ 870,502 $ 38,388 $ 223,078 $ 1,131,968 $ 2,275 $ (54,206 ) $ 1,080,037 Net gain on mortgage loans held for sale (2,972 ) 395,756 — 392,784 (2,223 ) 53,106 443,667 Total revenues 867,530 434,144 223,078 1,524,752 52 (1,100 ) 1,523,704 Total expenses 517,044 291,503 129,679 938,226 56,842 — 995,068 Other income (expense): Interest income 59,191 57,752 — 116,943 12,155 1,100 130,198 Interest expense (199,464 ) (56,333 ) (496 ) (256,293 ) (156,402 ) — (412,695 ) Gain on sale of property — — — — 4,898 — 4,898 Gain (loss) on interest rate swaps and caps 2,156 — — 2,156 652 — 2,808 Total other income (expense) (138,117 ) 1,419 (496 ) (137,194 ) (138,697 ) 1,100 (274,791 ) Income (loss) before taxes $ 212,369 $ 144,060 $ 92,903 $ 449,332 $ (195,487 ) $ — $ 253,845 Depreciation and amortization $ 11,453 $ 7,754 $ 2,764 $ 21,971 $ 7,992 $ — $ 29,963 Total assets $ 8,387,116 $ 1,929,239 $ 303,489 $ 10,619,844 $ 257,200 $ — $ 10,877,044 |
Guarantor Financial Statement40
Guarantor Financial Statement Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Consolidating Balance Sheets | 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 SEPTEMBER 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ — $ 575,045 $ 3,802 $ 17,760 $ — $ 596,607 Restricted cash — 186,363 3 290,866 — 477,232 Mortgage servicing rights — 3,242,356 — — — 3,242,356 Advances — 2,127,044 — 20 — 2,127,064 Reverse mortgage interests — 6,919,338 — 514,378 — 7,433,716 Mortgage loans held for sale — 1,742,100 — 143,505 — 1,885,605 Mortgage loans held for investment, net — 951 — 178,037 — 178,988 Property and equipment, net — 110,064 870 26,935 — 137,869 Derivative financial instruments — 92,960 — 5,404 — 98,364 Other assets 10,205 932,014 297,521 1,378,894 (1,759,495 ) 859,139 Investment in subsidiaries 1,685,718 511,268 — — (2,196,986 ) — Total assets $ 1,695,923 $ 16,439,503 $ 302,196 $ 2,555,799 $ (3,956,481 ) $ 17,036,940 Liabilities and stockholders’ equity Unsecured senior notes $ — $ 2,157,973 $ — $ — $ — $ 2,157,973 Advance facilities — 279,610 — 1,470,827 — 1,750,437 Warehouse facilities — 2,170,945 — 132,619 — 2,303,564 Payables and accrued liabilities — 1,236,858 1,597 53,073 — 1,291,528 MSR related liabilities - nonrecourse — 1,172,471 — — — 1,172,471 Derivative financial instruments — 28,525 — — — 28,525 Mortgage servicing liabilities — 27,624 — — — 27,624 Payables to affiliates — 1,637,189 894 121,412 (1,759,495 ) — Other nonrecourse debt — 6,042,590 — 566,305 — 6,608,895 Total liabilities — 14,753,785 2,491 2,344,236 (1,759,495 ) 15,341,017 Total equity 1,695,923 1,685,718 299,705 211,563 (2,196,986 ) 1,695,923 Total liabilities and equity $ 1,695,923 $ 16,439,503 $ 302,196 $ 2,555,799 $ (3,956,481 ) $ 17,036,940 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 |
Consolidating Statements of Operations | NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related $ — $ 310,821 $ (12,969 ) $ 80,790 $ (17,133 ) $ 361,509 Net gain on mortgage loans held for sale — 121,912 — 4,124 16,779 142,815 Total revenues — 432,733 (12,969 ) 84,914 (354 ) 504,324 Expenses: Salaries, wages and benefits — 135,686 750 24,321 — 160,757 General and administrative — 137,192 (2,958 ) 32,233 — 166,467 Total expenses — 272,878 (2,208 ) 56,554 — 327,224 Other income/(expense): Interest income — 38,403 — 4,557 354 43,314 Interest expense — (106,771 ) — (9,902 ) — (116,673 ) Gain on disposal of property — 4,898 — — — 4,898 Gain/(loss) on interest rate swaps and caps — 145 — 795 — 940 Gain/(loss) from subsidiaries 111,225 13,049 — — (124,274 ) — Total other income/(expense) 111,225 (50,276 ) — (4,550 ) (123,920 ) (67,521 ) Income before taxes 111,225 109,579 (10,761 ) 23,810 (124,274 ) 109,579 Income tax expense/(benefit) — (1,700 ) — — — (1,700 ) Net Income/(loss) 111,225 111,279 (10,761 ) 23,810 (124,274 ) 111,279 Less: net gain attributable to noncontrolling interests — 54 — — — 54 Net income/(loss) excluding noncontrolling interests $ 111,225 $ 111,225 $ (10,761 ) $ 23,810 $ (124,274 ) $ 111,225 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related $ — $ 878,169 $ 45,586 $ 210,488 $ (54,206 ) $ 1,080,037 Net gain on mortgage loans held for sale — 386,461 — 4,100 53,106 443,667 Total revenues — 1,264,630 45,586 214,588 (1,100 ) 1,523,704 Expenses: Salaries, wages and benefits — 418,190 4,257 48,957 — 471,404 General and administrative — 427,669 1,738 94,257 — 523,664 Total expenses — 845,859 5,995 143,214 — 995,068 Other income/(expense): Interest income — 116,258 — 12,840 1,100 130,198 Interest expense — (367,784 ) — (44,911 ) — (412,695 ) Gain on disposal of property — 4,898 — — — 4,898 Gain/(loss) on interest rate swaps and caps — 652 — 2,156 — 2,808 Gain/(loss) from subsidiaries 201,716 81,050 — — (282,766 ) — Total other income/(expense) 201,716 (164,926 ) — (29,915 ) (281,666 ) (274,791 ) Income before taxes 201,716 253,845 39,591 41,459 (282,766 ) 253,845 Income tax expense/(benefit) — 52,242 — — — 52,242 Net Income/(loss) 201,716 201,603 39,591 41,459 (282,766 ) 201,603 Less: net gain attributable to noncontrolling interests — (113 ) — — — (113 ) Net income/(loss) excluding noncontrolling interests $ 201,716 $ 201,716 $ 39,591 $ 41,459 $ (282,766 ) $ 201,716 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related $ — $ 96,086 $ 15,672 $ 99,553 $ 211,311 Net gain on mortgage loans held for sale — 174,127 — 11,745 — 185,872 Total revenues — 270,213 15,672 111,298 — 397,183 Expenses: Salaries, wages and benefits — 141,254 3,199 56,147 — 200,600 General and administrative — 199,900 1,734 43,987 — 245,621 Total expenses — 341,154 4,933 100,134 — 446,221 Other income/(expense): Interest income — 101,613 — 10,890 112,503 Interest expense — (157,197 ) — (18,601 ) — (175,798 ) Gain on interest rate swaps and caps — 10 — 99 — 109 Gain/(loss) from subsidiaries (66,342 ) 15,241 — — 51,101 — Total other income/(expense) (66,342 ) (40,333 ) — (7,612 ) 51,101 (63,186 ) Income/(loss) before taxes (66,342 ) (111,274 ) 10,739 3,552 51,101 (112,224 ) Income tax expense/(benefit) — (45,974 ) (1,323 ) 2 — (47,295 ) Net income/(loss) (66,342 ) (65,300 ) 12,062 3,550 51,101 (64,929 ) Less: net gain attributable to noncontrolling interests — 1,042 — 371 — 1,413 Net income/(loss) excluding noncontrolling interests $ (66,342 ) $ (66,342 ) $ 12,062 $ 3,179 $ 51,101 $ (66,342 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related $ — $ 528,839 $ 13,033 $ 342,285 $ — $ 884,157 Net gain on mortgage loans held for sale — 483,922 — 32,830 — 516,752 Total revenues — 1,012,761 13,033 375,115 — 1,400,909 Expenses: Salaries, wages and benefits — 411,017 3,626 163,069 — 577,712 General and administrative — 557,847 1,928 133,562 — 693,337 Total expenses — 968,864 5,554 296,631 — 1,271,049 Other income/(expense): Interest income — 215,663 — 27,769 — 243,432 Interest expense — (388,024 ) — (51,285 ) — (439,309 ) Gain on interest rate swaps and caps — 55 — (618 ) — (563 ) Gain/(loss) from subsidiaries (40,098 ) 61,615 — — (21,517 ) — Total other income/(expense) (40,098 ) (110,691 ) — (24,134 ) (21,517 ) (196,440 ) Income/(loss) before taxes (40,098 ) (66,794 ) 7,479 54,350 (21,517 ) (66,580 ) Income tax expense/(benefit) — (30,659 ) — 10 — (30,649 ) Net income/(loss) (40,098 ) (36,135 ) 7,479 54,340 (21,517 ) (35,931 ) Less: net gain attributable to noncontrolling interests — 3,963 — 204 — 4,167 Net income/(loss) excluding noncontrolling interests $ (40,098 ) $ (40,098 ) $ 7,479 $ 54,136 $ (21,517 ) $ (40,098 ) |
Consolidating Statements of Cash Flows | NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities: Net income/(loss) $ 201,716 $ 201,716 $ 39,591 $ 41,459 $ (282,766 ) $ 201,716 Reconciliation of net income to net cash attributable to operating activities: (Gain)/loss from subsidiaries (201,716 ) (81,050 ) — — 282,766 — Noncontrolling interest — 306 — — — 306 Share-based compensation — 11,344 — — — 11,344 Excess tax benefit from share based compensation — (2,197 ) — — — (2,197 ) Net (gain)/loss on mortgage loans held for sale — (386,461 ) — (4,100 ) (53,106 ) (443,667 ) Mortgage loans originated and purchased, net of fees — (13,272,856 ) — — — (13,272,856 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (3,284,336 ) — — — (3,284,336 ) Proceeds on sale of and payments of mortgage loans held for sale and held for investment — 17,589,098 — (25,493 ) 53,106 17,616,711 (Gain)/loss on swaps and caps — (652 ) — (2,156 ) — (2,808 ) Cash settlement on derivative financial instruments — — — 1,352 — 1,352 Depreciation and amortization — 27,148 89 2,726 — 29,963 Amortization/(accretion) of premiums/(discounts) — 18,578 — (1,918 ) — 16,660 Fair value changes in excess spread financing — 61,080 — — — 61,080 Fair value changes and amortization/accretion of mortgage servicing rights — 128,227 — — — 128,227 Fair value change in mortgage servicing rights financing liability — (38,260 ) — — — (38,260 ) Changes in assets and liabilities: Advances — (3,332,289 ) 467 3,996,133 — 664,311 Reverse mortgage interests — (630,139 ) — — — (630,139 ) Other assets 4,755 1,864,514 (37,347 ) (1,558,527 ) 69 273,464 Payables and accrued liabilities — (38,453 ) (5,950 ) 19,011 (69 ) (25,461 ) Net cash attributable to operating activities $ 4,755 $ (1,164,682 ) $ (3,150 ) $ 2,468,487 $ — $ 1,305,410 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities: Property and equipment additions, net of disposals — (29,517 ) (69 ) (11,981 ) — (41,567 ) Gain on disposal of building — 10,412 — — — 10,412 Purchase of forward mortgage servicing rights, net of liabilities incurred — (317,247 ) — — — (317,247 ) Proceeds from sale of servicer advances — 512,527 — — — 512,527 Proceeds from sales of REO — — — — — — Acquisitions, net — (18,000 ) — — — (18,000 ) Net cash attributable to investing activities — 158,175 (69 ) (11,981 ) — 146,125 Financing activities: Transfers to/from restricted cash — 100,185 3 182,101 — 282,289 Repayment of unsecured senior notes — (285,000 ) — — — (285,000 ) Debt financing costs — (11,461 ) — — — (11,461 ) Increase/(decrease) in advance facilities — 687,306 — (2,127,044 ) — (1,439,738 ) Increase/(decrease) in warehouse facilities — — — (502,403 ) — (502,403 ) Issuance of excess spread financing — 150,951 — — — 150,951 Repayment of excess servicing spread financing — (135,897 ) — — — (135,897 ) Increase in participating interest financing in reverse mortgage interests — 279,636 — — — 279,636 Proceeds from mortgage servicing rights financing — 52,835 — — — 52,835 Repayment of nonrecourse debt–Legacy assets — — — (12,356 ) — (12,356 ) Excess tax benefit from share-based compensation — 2,197 — — — 2,197 Surrender of shares relating to stock vesting (4,755 ) — — — — (4,755 ) Net cash attributable to financing activities (4,755 ) 840,752 3 (2,459,702 ) — (1,623,702 ) Net increase in cash and cash equivalents — (165,755 ) (3,216 ) (3,196 ) — (172,167 ) Cash and cash equivalents at beginning of period — 422,268 3,907 15,727 — 441,902 Cash and cash equivalents at end of period $ — $ 256,513 $ 691 $ 12,531 $ — $ 269,735 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating Activities: Net income/(loss) $ (40,098 ) $ (40,098 ) $ 7,479 $ 54,136 $ (21,517 ) $ (40,098 ) Reconciliation of net income to net cash attributable to operating activities: (Gain)/loss from subsidiaries 40,098 (61,615 ) — — 21,517 — Noncontrolling interest 3,963 204 4,167 Share-based compensation — 8,476 — 6,861 — 15,337 Net tax effect of stock grants — (1,095 ) — — — (1,095 ) Loss on foreclosed real estate and other — — — — — — Gain on mortgage loans held for sale — (481,039 ) — (35,713 ) — (516,752 ) Mortgage loans originated and purchased, net of fees — (13,136,799 ) — (833,236 ) — (13,970,035 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (1,392,858 ) — — — (1,392,858 ) Proceeds on sale of and payments of mortgage loans held for sale — 14,277,068 — 771,746 — 15,048,814 (Gain)/loss on derivatives including ineffectiveness — (55 ) — 618 — 563 Depreciation and amortization — 29,672 — 11,594 — 41,266 Amortization/(accretion) of premiums/(discounts) — (4,028 ) — (3,367 ) — (7,395 ) Fair value changes in excess spread financing — (23,357 ) — — — (23,357 ) Fair value changes and amortization/accretion of mortgage servicing rights — 499,905 — — — 499,905 Fair value change in mortgage servicing rights financing liability — 7,093 — — — 7,093 Changes in assets and liabilities: Advances — 417,021 — 2,277 — 419,298 Reverse mortgage interests — 8,147 — (173,110 ) — (164,963 ) Other assets 6,200 167,774 (5,703 ) (22,564 ) — 145,707 Payables and accrued liabilities — (125,407 ) 1,572 (3,120 ) — (126,955 ) Net cash attributable to operating activities $ 6,200 $ 152,768 $ 3,552 $ (223,878 ) $ — $ (61,358 ) Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities: Property and equipment additions, net of disposals — (23,446 ) (35 ) (20,588 ) — (44,069 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (4,815,684 ) — — — (4,815,684 ) Purchases of reverse mortgage servicing rights and interests — (614,602 ) — — — (614,602 ) Sale of forward service rights — 41,197 — — — 41,197 Acquisitions, net — — — (44,858 ) — (44,858 ) Net cash attributable to investing activities — (5,412,535 ) (35 ) (65,446 ) — (5,478,016 ) Financing activities: Transfers to/from restricted cash, net — (9,273 ) (3 ) (182,426 ) — (191,702 ) Issuance of common stock, net of issuance cost — 497,761 — — — 497,761 Debt financing costs — (10,668 ) — — — (10,668 ) Increase (decrease) advance facilities — 630,952 — 99,990 — 730,942 Increase (decrease) warehouse facilities — (291,182 ) — 139,836 — (151,346 ) Proceeds from HECM Securitizations — — — 342,403 — 342,403 Repayment of HECM Securitizations — — — (102,687 ) — (102,687 ) Issuance of excess spread financing — 262,976 — — — 262,976 Repayment of excess spread financing — (154,706 ) — — — (154,706 ) Increase in participating interest financing in reverse mortgage interests — 4,629,380 — — — 4,629,380 Repayment of nonrecourse debt–Legacy assets — (1,293 ) — (8,976 ) — (10,269 ) Net tax benefit for stock grants issued — 1,095 — — — 1,095 Redemption of shares for stock vesting (6,200 ) — — — — (6,200 ) Net cash attributable to financing activities (6,200 ) 5,555,042 (3 ) 288,140 — 5,836,979 Net increase/(decrease) in cash — 295,275 3,514 (1,184 ) — 297,605 Cash and cash equivalents at beginning of period $ — $ 279,770 $ 288 $ 18,944 $ — $ 299,002 Cash and cash equivalents at end of period $ — $ 575,045 $ 3,802 $ 17,760 $ — $ 596,607 |
Nature of Business and Basis 41
Nature of Business and Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jan. 01, 2015 | Dec. 31, 2014 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Real estate owned (REO), net | $ 2,310 | $ 1,625 | |
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 (MS42
Mortgage Servicing Rights (MSR) and Related Liabilities - MSRs and Related Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Mortgage Servicing Rights [Line Items] | ||||
Mortgage servicing rights at fair value | $ 3,233,041 | $ 2,949,739 | ||
Mortgage servicing rights | 3,242,356 | 2,961,321 | ||
Mortgage servicing liabilities | 27,624 | 65,382 | ||
Mortgage servicing rights financing liability - fair value | 49,430 | |||
MSR related liabilities - nonrecourse | 1,172,471 | 1,080,465 | ||
Mortgage servicing rights | ||||
Mortgage Servicing Rights [Line Items] | ||||
Mortgage servicing rights at fair value | 3,233,041 | 2,949,739 | ||
MSRs - LOCOM | 9,315 | 11,582 | $ 12,431 | $ 14,879 |
Mortgage servicing liabilities | $ 27,623 | $ 65,382 | $ 78,954 | $ 82,521 |
Mortgage Servicing Rights (MS43
Mortgage Servicing Rights (MSR) and Related Liabilities - UPB related to owned MSRs (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Owned Service Loans [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | $ 4,600,000 | |
Mortgage servicing rights at fair value | 3,233,041 | $ 2,949,739 |
Mortgage servicing rights | ||
Owned Service Loans [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 354,643,992 | 333,612,645 |
Mortgage servicing rights at fair value | 3,233,041 | 2,949,739 |
Credit Sensitive | Mortgage servicing rights | ||
Owned Service Loans [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 235,392,069 | 241,769,601 |
Mortgage servicing rights at fair value | 1,987,356 | 1,919,290 |
Interest Rate Sensitive | Mortgage servicing rights | ||
Owned Service Loans [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 119,251,923 | 91,843,044 |
Mortgage servicing rights at fair value | $ 1,245,685 | $ 1,030,449 |
Mortgage Servicing Rights (MS44
Mortgage Servicing Rights (MSR) and Related Liabilities - MSR's at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 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 | $ 3,233,041 | 3,233,041 | $ 2,949,739 | ||
Mortgage servicing rights | |||||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Fair value at the beginning of the period | 3,350,298 | $ 2,678,134 | 2,949,739 | $ 2,488,283 | 2,488,283 |
Servicing resulting from transfers of financial assets | 63,900 | 65,610 | 169,406 | 185,822 | 238,292 |
Purchases of servicing assets | 200,922 | 159,773 | 695,067 | 353,450 | 470,543 |
Dispositions | (45,774) | 0 | (45,774) | 0 | |
Due to changes in valuation inputs or assumptions used in the valuation model | (215,384) | 89,528 | (197,037) | 114,349 | |
Other changes in fair value | (120,921) | (94,836) | (338,360) | (243,695) | |
Fair value at the end of the period | $ 3,233,041 | $ 2,898,209 | $ 3,233,041 | $ 2,898,209 | $ 2,949,739 |
Mortgage Servicing Rights (MS45
Mortgage Servicing Rights (MSR) and Related Liabilities - Fair Value Assumptions (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Mortgage servicing rights | Credit Sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate | 11.63% | 11.96% |
Total prepayment speeds | 17.17% | 18.58% |
Expected weighted-average life | 5 years 8 months 15 days | 5 years 4 months 20 days |
Mortgage servicing rights | Interest Rate Sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate | 9.13% | 9.09% |
Total prepayment speeds | 13.56% | 11.27% |
Expected weighted-average life | 5 years 8 months 4 days | 6 years 5 months 25 days |
Excess spread financing | Minimum | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Mortgage prepayment speeds | 8.03% | 6.20% |
Average life | 3 years 10 months 24 days | 4 years |
Discount rate | 8.51% | 8.50% |
Recapture Rate | 6.80% | 6.70% |
Excess spread financing | Maximum | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Mortgage prepayment speeds | 18.67% | 19.40% |
Average life | 7 years 7 months 12 days | 7 years 1 month 6 days |
Discount rate | 14.15% | 14.20% |
Recapture Rate | 30.30% | 31.30% |
Excess spread financing | Weighted Average [Member] | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Mortgage prepayment speeds | 12.30% | 12.50% |
Average life | 5 years 8 months 19 days | 5 years 7 months 6 days |
Discount rate | 11.20% | 11.50% |
Recapture Rate | 17.46% | 16.80% |
MSR Financing Liability | Financing rates | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Other Key Assumption Rate or Value | 0.0286 | 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 (MS46
Mortgage Servicing Rights (MSR) and Related Liabilities - Fair Value Sensitivity Analysis (Details) - USD ($) $ in Thousands | Sep. 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 | $ (163,547) | $ (112,603) |
Total Prepayment Speeds, 20% Adverse Change | (236,670) | (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 | (38,419) | (33,618) |
Total Prepayment Speeds, 20% Adverse Change | (80,733) | (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 | (106,438) | (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 | (40,456) | (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 | (205,891) | (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 | $ (84,079) | $ (75,964) |
Mortgage Servicing Rights (MS47
Mortgage Servicing Rights (MSR) and Related Liabilities - MSR's at Amortized Cost (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||
Fair value at end of period | $ 30,147 | $ 35,475 |
Servicing Liability at Amortized Value [Roll Forward] | ||
Balance at the beginning of the period | 65,382 | |
Balance at end of the period | 27,624 | |
Fair value at end of period | 11,438 | 61,853 |
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 | (2,267) | (2,448) |
Balance at end of the period | 9,315 | 12,431 |
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 | (37,759) | (3,567) |
Balance at end of the period | $ 27,623 | $ 78,954 |
Mortgage Servicing Rights (MS48
Mortgage Servicing Rights (MSR) and Related Liabilities - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Principal amount outstanding on mortgage servicing rights | $ 4,600,000,000 | ||
Factor in repurchasing loans out of HMBS pools | 625,000 | ||
Mortgage servicing rights at fair value | 3,233,041,000 | $ 2,949,739,000 | |
Payments to Acquire Mortgage Servicing Rights (MSR) | 614,602,000 | $ 317,247,000 | |
Reverse mortgage interests | |||
Principal amount outstanding on mortgage servicing rights | 30,700,000,000 | 28,000,000,000 | |
Mortgage servicing rights | |||
Principal amount outstanding on mortgage servicing rights | 354,643,992,000 | 333,612,645,000 | |
Impairment of Intangible Assets, Finite-lived | 0 | 0 | |
Amortization/Accretion | 37,759,000 | $ 3,567,000 | |
Mortgage servicing rights at fair value | $ 3,233,041,000 | $ 2,949,739,000 |
Advances - Schedule of Accounts
Advances - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Agency | $ 1,273,618 | $ 1,805,412 |
Non-agency | 853,446 | 740,950 |
Total advances, net | $ 2,127,064 | $ 2,546,362 |
Advances - Narrative (Details)
Advances - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Receivables [Abstract] | |||||
Accretion of Service Advances Discount | $ 1,300,000 | $ 0 | $ 1,700,000 | $ 8,400,000 | |
Advance discount | 3,400,000 | 3,400,000 | |||
Allowance for Doubtful Accounts Receivable | $ 19,300,000 | $ 19,300,000 | $ 9,200,000 |
Reverse Mortgage Interests - Sc
Reverse Mortgage Interests - Schedule of Reverse Mortgage Interest (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unsecuritized interests | $ 990,998 | $ 752,801 |
Reserve for servicing losses | (29,073) | (4,225) |
Reverse mortgage interests | 7,433,716 | 2,453,069 |
HMBS Securitized HECM | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse Mortgage Interest Subject to Non-Recourse Debt | 5,957,413 | 1,363,225 |
2014-1 HECM securitization | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reverse Mortgage Interest Subject to Non-Recourse Debt | $ 514,378 | $ 341,268 |
Reverse Mortgage Interests - Na
Reverse Mortgage Interests - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
May. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Purchase of reverse mortgage interests, net of participations sold | $ 4,815,684 | $ 0 | ||
Non-Recourse Debt | $ 6,608,895 | $ 1,768,311 | ||
Generation Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Purchase of reverse mortgage interests, net of participations sold | $ 192,000 | |||
Reverse Mortgage Interest Subject to Non-Recourse Debt | 4,900,000 | |||
Non-Recourse Debt | $ 4,600,000 |
Mortgage Loans Held for Sale 53
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Mortgage Loans Held for Sale and Investment [Abstract] | ||
Mortgage loans held for sale – unpaid principal balance | $ 1,802,914 | $ 1,218,596 |
Mark-to-market adjustment(1) | 82,691 | 59,335 |
Total mortgage loans held for sale | 1,885,605 | 1,277,931 |
UPB | 27,672 | 31,968 |
Fair Value | 25,037 | 26,022 |
Foreclosure | $ 20,773 | $ 17,493 |
Mortgage Loans Held for Sale 54
Mortgage Loans Held for Sale and Investment - Reconciliation to Cash Flow (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 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 | 13,970,035 | 13,272,856 |
Repurchase of loans out of Ginnie Mae securitizations | 1,368,547 | 3,275,202 |
Claims made to third parties | (45,537) | (145,480) |
Proceeds on sale of and payments of mortgage loans held for sale | (15,034,841) | (17,601,712) |
Gain on sale of mortgage loans(2) | 349,470 | 292,795 |
Mortgage loans held for sale – ending balance | $ 1,885,605 | $ 1,697,041 |
Mortgage Loans Held for Sale 55
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Investment (Details) - USD ($) $ in Thousands | Sep. 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 | $ 178,988 | $ 191,569 | |
Mortgage Loans Held for Investment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unpaid principal balance | 257,763 | 276,820 | |
Transfer discount - accretable | (14,586) | (15,503) | $ (17,362) |
Transfer discount - non-accretable | (60,640) | (66,217) | |
Allowance for loan losses | (3,549) | (3,531) | |
Total mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net | $ 178,988 | $ 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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at the beginning of the period | $ 15,503 | $ 17,362 |
Accretion | (2,081) | (2,955) |
Reclassifications from (to) nonaccretable discount | 1,164 | 1,096 |
Balance at the end of the period | $ 14,586 | $ 15,503 |
Mortgage Loans Held for Sale 57
Mortgage Loans Held for Sale and Investment - Foreclosure (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Mortgage Loans Held for Sale and Investment [Abstract] | ||
Mortgage Loans Held for Investment in foreclosure, amount | $ 46,914 | $ 52,769 |
Mortgage Loans Held for Sale 58
Mortgage Loans Held for Sale and Investment - Narrative (Details) - Mortgage Loans Held for Investment - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Servicing Assets at Fair Value [Line Items] | |||
Loans repurchased from securitization pool, during the period | $ 1,400,000 | $ 3,300,000 | |
Reclassifications from (to) nonaccretable discount | $ (1,164) | $ (1,096) |
Other Assets - Schedule of Othe
Other Assets - Schedule of Others Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Receivables from trusts, agencies and prior servicers, net1 | $ 373,248 | $ 386,166 |
Accrued revenues | 174,611 | 154,436 |
Loans subject to repurchase right from Ginnie Mae | 96,574 | 131,592 |
Goodwill | 68,537 | 54,701 |
Intangible assets | 43,498 | 19,622 |
Deferred financing costs | 40,183 | 46,986 |
Prepaid expenses | 18,424 | 9,837 |
Collateral deposits on derivative instruments | 13,684 | 9,810 |
Real estate owned (REO), net | 2,310 | 1,625 |
Accrued interest | 887 | 1,890 |
Other | 27,183 | 60,564 |
Total other assets | 859,139 | 877,229 |
Valuation Allowances and Reserves, Balance | $ 153,000 | $ 108,000 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||
Jun. 30, 2015 | May. 31, 2015 | Jan. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||
Loans subject to repurchase right from Ginnie Mae | $ 96,574 | $ 131,592 | |||
Experience 1, Inc | |||||
Business Acquisition [Line Items] | |||||
Cash payment to acquire business | $ 36,000 | ||||
Goodwill acquired | 16,800 | ||||
Intangible assets acquired | 14,900 | ||||
Other assets acquired | $ 4,300 | ||||
Quantarium, LLC | |||||
Business Acquisition [Line Items] | |||||
Cash payment to acquire business | $ 12,000 | ||||
GoPaperless Solutions | |||||
Business Acquisition [Line Items] | |||||
Cash payment to acquire business | $ 2,000 | ||||
Goodwill acquired | 3,800 | ||||
Intangible assets acquired | $ 10,000 |
Derivative Financial Instrume61
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Collateral deposits on derivative instruments | $ 13,684 | $ 9,810 | |
Other Assets | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Collateral deposits on derivative instruments | $ 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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Loan Sale Commitment | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | $ 417 | $ 1,666 |
Interest Rate Lock Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 2,764,748 | 2,556,169 |
Outstanding Notional - Liability | 2,856 | 865 |
Forward Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 252,400 | 319,112 |
Outstanding Notional - Liability | 3,929,100 | 2,958,700 |
Loan Purchase Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 766,474 | 287,089 |
Outstanding Notional - Liability | 207,530 | 30,494 |
Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 1,200,000 | 124,650 |
Outstanding Notional - Liability | 27,412 | 105,681 |
Future | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 40,000 | |
Outstanding Notional - Liability | 298,000 | 80,000 |
Fair Value, Measurements, Recurring | Loan Sale Commitment | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 4 | (4) |
Fair Value, Measurements, Recurring | Interest Rate Lock Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 89,965 | 87,902 |
Fair Value - Liability | 12 | 7 |
Fair Value, Measurements, Recurring | Forward Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 115 | 284 |
Fair Value - Liability | 26,561 | 18,360 |
Fair Value, Measurements, Recurring | Loan Purchase Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 8,280 | 1,999 |
Fair Value - Liability | 1,630 | 48 |
Fair Value, Measurements, Recurring | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 4 | 865 |
Fair Value - Liability | 48 | 103 |
Fair Value, Measurements, Recurring | Future | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 1 | |
Fair Value - Liability | 274 | 7 |
Derivative Assets | Loan Sale Commitment | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | 8 | (11) |
Derivative Assets | Interest Rate Lock Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | 2,064 | 774 |
Derivative Assets | Forward Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | (169) | (31,982) |
Derivative Assets | Loan Purchase Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | 6,281 | 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) | (5) | 2,691 |
Derivative Liabilities | Forward Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | (8,202) | (15,055) |
Derivative Liabilities | Loan Purchase Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | (1,582) | 1,641 |
Derivative Liabilities | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | (563) | 731 |
Derivative Liabilities | Future | ||
Derivatives, Fair Value [Line Items] | ||
Recorded Gains / (Losses) | $ (267) | $ (7) |
Indebtedness - Notes Payable Su
Indebtedness - Notes Payable Summary (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Advance facilities | $ 1,750,437 | $ 1,901,783 |
Servicing Segment | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Advance facilities | 1,750,437 | 1,901,783 |
Pledged collateral | 2,034,053 | 2,214,410 |
Servicing Segment | Notes Payable, Other | MBS advance financing facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 130,000 | |
Advance facilities | 73,707 | 363,014 |
Pledged collateral | $ 80,839 | 418,126 |
Servicing Segment | Notes Payable, Other | MBS advance financing facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.50% | |
Servicing Segment | Notes Payable, Other | MBS advance financing facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 4.00% | |
Servicing Segment | Notes Payable, Other | Securities repurchase facility (2011) | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 0 | |
Advance facilities | 33,973 | 34,613 |
Pledged collateral | $ 55,603 | 55,603 |
Servicing Segment | Notes Payable, Other | Securities repurchase facility (2011) | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 3.50% | |
Servicing Segment | Notes Payable, Other | Nationstar agency advance financing facility (1) | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,300,000 | |
Advance facilities | 1,114,608 | 805,706 |
Pledged collateral | $ 1,243,797 | 885,115 |
Servicing Segment | Notes Payable, Other | Nationstar agency advance financing facility (1) | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.20% | |
Servicing Segment | Notes Payable, Other | Nationstar agency advance financing facility (1) | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 3.75% | |
Servicing Segment | Notes Payable, Other | MBS advance financing facility (2012) | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 50,000 | |
Advance facilities | 48,822 | 42,472 |
Pledged collateral | $ 58,439 | 50,758 |
Servicing Segment | Notes Payable, Other | MBS advance financing facility (2012) | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 5.00% | |
Servicing Segment | Notes Payable, Other | Nationstar mortgage advance receivable trust | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 500,000 | |
Advance facilities | 262,677 | 419,170 |
Pledged collateral | $ 305,279 | 471,243 |
Servicing Segment | Notes Payable, Other | Nationstar mortgage advance receivable trust | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.15% | |
Servicing Segment | Notes Payable, Other | Nationstar mortgage advance receivable trust | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 5.30% | |
Servicing Segment | Notes Payable, Other | MBS servicer advance facility (2014) | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 125,000 | |
Advance facilities | 123,108 | 79,084 |
Pledged collateral | $ 184,084 | 138,010 |
Servicing Segment | Notes Payable, Other | MBS servicer advance facility (2014) | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 3.50% | |
Servicing Segment | Notes Payable, Other | Nationstar servicer advance receivables trust 2014 - BC | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 200,000 | |
Advance facilities | 93,542 | 106,115 |
Pledged collateral | $ 106,012 | 121,030 |
Servicing Segment | Notes Payable, Other | Nationstar servicer advance receivables trust 2014 - BC | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.50% | |
Servicing Segment | Notes Payable, Other | Nationstar servicer advance receivables trust 2014 - BC | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 3.00% | |
Servicing Segment | Notes Payable, Other | Securities repurchase facility (2014) | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 0 | |
Advance facilities | 0 | 51,609 |
Pledged collateral | $ 0 | 74,525 |
Servicing Segment | Notes Payable, Other | Securities repurchase facility (2014) | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.50% | |
Servicing Segment | Notes Payable, Other | Securities repurchase facility (2014) | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.00% | |
Servicing Segment | Notes Payable to Banks | Nationstar agency advance financing facility (1) | Secured Debt | ||
Debt Instrument [Line Items] | ||
Debt issued | $ 300,000 | |
Long-term Line of Credit | $ 100,000 | |
Weighted average interest rate | 2.07% | |
Term of debt | 5 years | |
Originations Segment | Mortgage loans | ||
Debt Instrument [Line Items] | ||
Advance facilities | $ 1,806,622 | 1,196,956 |
Pledged collateral | 1,905,288 | 1,241,043 |
Originations Segment | Reverse mortgage interests | ||
Debt Instrument [Line Items] | ||
Advance facilities | 496,942 | 375,666 |
Pledged collateral | 549,053 | 411,700 |
Originations Segment | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Advance facilities | 2,303,564 | 1,572,622 |
Pledged collateral | 2,454,341 | 1,652,743 |
Originations Segment | Notes Payable to Banks | $1.3 billion warehouse facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 1,300,000 | |
Advance facilities | 874,514 | 663,167 |
Pledged collateral | $ 931,140 | 697,257 |
Originations Segment | Notes Payable to Banks | $1.3 billion warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.00% | |
Originations Segment | Notes Payable to Banks | $1.3 billion warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.875% | |
Originations Segment | Notes Payable to Banks | $1.0 billion warehouse facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,000,000 | |
Advance facilities | 603,348 | 307,294 |
Pledged collateral | $ 658,317 | 320,285 |
Originations Segment | Notes Payable to Banks | $1.0 billion warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.75% | |
Originations Segment | Notes Payable to Banks | $1.0 billion warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 3.25% | |
Originations Segment | Notes Payable to Banks | $500 million warehouse facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 500,000 | |
Advance facilities | 233,941 | 176,194 |
Pledged collateral | $ 239,266 | 179,994 |
Originations Segment | Notes Payable to Banks | $500 million warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.75% | |
Originations Segment | Notes Payable to Banks | $500 million warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.75% | |
Originations Segment | Notes Payable to Banks | $500 million warehouse facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 500,000 | |
Advance facilities | 241,655 | 183,290 |
Pledged collateral | $ 255,152 | 192,990 |
Originations Segment | Notes Payable to Banks | $500 million warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.50% | |
Originations Segment | Notes Payable to Banks | $500 million warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.25% | |
Originations Segment | Notes Payable to Banks | $350 million warehouse facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 350,000 | |
Advance facilities | 119,460 | 210,049 |
Pledged collateral | $ 131,923 | 223,849 |
Originations Segment | Notes Payable to Banks | $350 million warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.20% | |
Originations Segment | Notes Payable to Banks | $350 million warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 4.50% | |
Originations Segment | Notes Payable to Banks | $200 million warehouse facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 200,000 | |
Advance facilities | 98,028 | 0 |
Pledged collateral | $ 100,420 | 0 |
Originations Segment | Notes Payable to Banks | $200 million warehouse facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.50% | |
Originations Segment | Notes Payable to Banks | $75 million warehouse facility (HCM) (2) | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 75,000 | |
Advance facilities | 66,537 | 23,949 |
Pledged collateral | $ 68,424 | 29,324 |
Originations Segment | Notes Payable to Banks | $75 million warehouse facility (HCM) (2) | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.25% | |
Originations Segment | Notes Payable to Banks | $75 million warehouse facility (HCM) (2) | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.875% | |
Originations Segment | Notes Payable to Banks | $100 million warehouse facility (HCM) | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 100,000 | |
Advance facilities | 66,081 | 8,679 |
Pledged collateral | $ 69,699 | 9,044 |
Originations Segment | Notes Payable to Banks | $100 million warehouse facility (HCM) | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.50% | |
Originations Segment | Notes Payable to Banks | $100 million warehouse facility (HCM) | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.75% | |
Originations Segment | Notes Payable to Banks | ASAP facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 0 | |
Advance facilities | 0 | 0 |
Pledged collateral | $ 0 | $ 0 |
Originations Segment | Notes Payable to Banks | ASAP facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.50% |
Indebtedness - Summary of Unsec
Indebtedness - Summary of Unsecured Senior Notes (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total | $ 2,157,973,000 | $ 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 | $ 377,951,000 | 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 | $ 400,472,000 | 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 | $ 604,550,000 | 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 | Sep. 30, 2015USD ($) |
Debt Instrument [Line Items] | |
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 | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Non-Recourse Debt | $ 6,608,895 | $ 1,768,311 |
Participating Interest Financing | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 6,042,589 | 1,433,145 |
2014-1 HECM securitization | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 249,745 | 259,328 |
2015-1 HECM Securitization | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 248,664 | 0 |
Legacy Asset | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | $ 67,897 | $ 75,838 |
Indebtedness - Narrative (Detai
Indebtedness - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Nov. 03, 2015 | Dec. 31, 2014 | Nov. 30, 2009 | |
Debt Instrument [Line Items] | ||||||
Maximum percentage redeemable on unsecured debt | 35.00% | |||||
Non-Recourse Debt | $ 6,608,895,000 | $ 6,608,895,000 | $ 1,768,311,000 | |||
Principal amount outstanding on securitized financing | $ 222,000,000 | |||||
Advance facilities | 1,750,437,000 | 1,750,437,000 | 1,901,783,000 | |||
Minimum Tangible Net Worth Required for Compliance | 682,000,000 | |||||
Reverse mortgage interests | ||||||
Debt Instrument [Line Items] | ||||||
Impairment of mortgage interests | 0 | 0 | ||||
Securities Pledged as Collateral | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount outstanding on securitized financing | 246,700,000 | 246,700,000 | 268,200,000 | |||
Participating Interest Financing | ||||||
Debt Instrument [Line Items] | ||||||
Non-Recourse Debt | 6,042,589,000 | 6,042,589,000 | 1,433,145,000 | |||
HMBS Securitized HECM | ||||||
Debt Instrument [Line Items] | ||||||
Non-Recourse Debt | 498,400,000 | 498,400,000 | 259,300,000 | |||
2014-1 HECM securitization | ||||||
Debt Instrument [Line Items] | ||||||
Non-Recourse Debt | 249,745,000 | 249,745,000 | 259,328,000 | |||
Securities Repurchase Facility Class A and Class M | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from sale of notes | $ 73,100,000 | |||||
2015-1 HECM Securitization | ||||||
Debt Instrument [Line Items] | ||||||
Non-Recourse Debt | 248,664,000 | 248,664,000 | 0 | |||
Securitized unpaid principal balance | 0 | 0 | 269,400,000 | |||
Legacy Asset | ||||||
Debt Instrument [Line Items] | ||||||
Non-Recourse Debt | 67,897,000 | 67,897,000 | 75,838,000 | |||
Nonrecourse Debt | ||||||
Debt Instrument [Line Items] | ||||||
Principal Amount Outstanding | $ 78,900,000 | $ 78,900,000 | 88,200,000 | |||
Notes Payable, MBS | ||||||
Debt Instrument [Line Items] | ||||||
Minimum interest rate | 0.48% | |||||
Maximum interest rate | 6.98% | |||||
Notes Payable, Other | 2014-1 HECM securitization | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount outstanding on securitized financing | 343,600,000 | |||||
Notes Payable, Other | Securities Repurchase Facility Class A | ||||||
Debt Instrument [Line Items] | ||||||
Advance facilities | 70,400,000 | |||||
Notes Payable, Other | Securities Repurchase Facility Class M | ||||||
Debt Instrument [Line Items] | ||||||
Advance facilities | $ 36,200,000 | |||||
Secured Debt | Nonrecourse Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest Rate | 7.50% | 7.50% | ||||
Subsequent Event | Variable Interest Entity | Nationstar Advance Agency Receivables Trust | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 550,000,000 |
Payables and Accrued Liabilit68
Payables and Accrued Liabilities - Schedule of Accounts Payable (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Payables to servicing and subservicing investors | $ 432,092 | $ 329,306 |
Payables to GSEs | 101,128 | 67,311 |
Payables to securitization trusts | 105,708 | 99,137 |
Loans subject to repurchase from Ginnie Mae | 96,574 | 131,592 |
Accrued bonus and payroll | 92,356 | 85,366 |
MSR purchases payable including advances | 80,466 | 45,697 |
Payable to insurance carriers and insurance cancellation reserves | 78,417 | 163,381 |
Accrued interest | 64,809 | 59,708 |
Taxes | 31,965 | 96,237 |
Repurchase reserves | 28,086 | 29,165 |
Other | 179,927 | 215,178 |
Total payables and accrued liabilities | $ 1,291,528 | $ 1,322,078 |
Securitizations and Financing69
Securitizations and Financings - Assets and Liabilities of Consolidated VIEs (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | $ 2,099,059 | $ 1,760,455 |
Reverse Secured Borrowings, Assets, Carrying Amount | 6,496,673 | 1,658,367 |
Liabilities | 1,540,303 | 1,408,425 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 6,541,378 | 1,692,659 |
Residential Mortgage | Restricted Cash | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 262,527 | 90,068 |
Reverse Secured Borrowings, Assets, Carrying Amount | 24,882 | 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 | 6,471,791 | 1,642,789 |
Residential Mortgage | Accounts Receivable | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 1,655,087 | 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 | 178,037 | 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 | 99 | 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 | 3,309 | 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 | 1,470,827 | 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 | 1,580 | 1,596 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 380 | 186 |
Residential Mortgage | Nonrecourse Debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 67,896 | 75,838 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 0 | 0 |
Residential Mortgage | Other Non-Recourse Debt | 2014-1 HECM securitization | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 249,745 | 259,328 |
Residential Mortgage | Other Non-Recourse Debt | 2015-1 HECM Securitization | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 248,664 | 0 |
Residential Mortgage | Participating Mortgages | HMBS Securitized HECM | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | $ 6,042,589 | $ 1,433,145 |
Securitizations and Financing70
Securitizations and Financings - Securitization Trusts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Total collateral balances | $ 3,218,013 | $ 3,218,013 | $ 3,258,472 | ||
Total certificate balances | 2,903,368 | 2,903,368 | 3,297,256 | ||
Unconsolidated securitization trusts | 775,915 | 775,915 | $ 861,419 | ||
Unconsolidated securitization trusts | $ 61,344 | $ 71,575 | $ 176,564 | $ 219,189 |
Securitizations and Financing71
Securitizations and Financings - Cash Flows from Securitization Trust (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Servicing Fees Received | $ 5,590 | $ 2,632 | $ 18,453 | $ 20,818 |
Loan Repurchases | $ 0 | $ 0 | $ 0 | $ 0 |
Securitizations and Financing72
Securitizations and Financings - Narrative (Details) - Variable Interest Entity - USD ($) | Nov. 03, 2015 | Sep. 30, 2015 | Jun. 30, 2015 |
Nationstar Agency Advance Financing Trust | |||
Variable Interest Entity [Line Items] | |||
Maximum borrowing capacity | $ 900,000,000 | $ 1,200,000,000 | |
Subsequent Event | Nationstar Advance Agency Receivables Trust | |||
Variable Interest Entity [Line Items] | |||
Maximum borrowing capacity | $ 550,000,000 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Class of Stock [Line Items] | ||||
Issuance of common stock, net (shares) | 17.5 | |||
Issuance of common stock, net of issuance costs | $ 497,800,000 | $ 497,761,000 | $ 0 | |
Share-based compensation | $ 15,337,000 | $ 11,344,000 | ||
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 | 1.1 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) expense | $ (47,295) | $ (1,700) | $ (30,649) | $ 52,242 |
Effective tax rate | 42.10% | (1.60%) | 46.00% | 20.60% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||||
Tax rate excluding deferred tax asset valuation allowance | 38.40% | 38.80% | 39.80% | 38.00% | ||
Decrease due to changes in prior period filing | $ 16.5 | |||||
Limit on NOL due to reorganization | 5 | |||||
Decrease in valuation allowance | (4.2) | $ 4.2 | $ 44.2 | |||
Deferred tax valuation allowance | 2.2 | $ 2.2 | $ 6.4 | |||
Net deferred tax liability | 104 | 104 | $ 109.8 | |||
Annual limit on NOL usage | $ 11.5 | |||||
Domestic Tax Authority | Internal Revenue Service (IRS) | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating Loss Carryforwards | $ 182.9 | 182.9 | ||||
Annual limit on NOL usage | $ 11 |
Fair Value Measurements - Measu
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Mortgage loans held for sale | $ 1,885,605 | $ 1,277,931 |
Mortgage servicing rights | 3,233,041 | 2,949,739 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 49,430 | |
Fair Value, Measurements, Recurring | ||
ASSETS | ||
Mortgage loans held for sale | 1,277,931 | |
Mortgage servicing rights | 3,233,041 | 2,949,739 |
Total assets | 5,217,010 | 4,318,721 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 49,430 | |
Excess spread financing (at fair value) | 1,115,949 | 1,031,035 |
Total liabilities | 1,200,996 | 1,098,990 |
Fair Value, Measurements, Recurring | Interest Rate Lock Commitments | ||
ASSETS | ||
Fair Value - Asset | 89,965 | 87,902 |
LIABILITIES | ||
Fair Value - Liability | 12 | 7 |
Fair Value, Measurements, Recurring | Forward Contracts | ||
ASSETS | ||
Fair Value - Asset | 115 | 284 |
LIABILITIES | ||
Fair Value - Liability | 26,561 | 18,360 |
Fair Value, Measurements, Recurring | Loan Purchase Commitments | ||
ASSETS | ||
Fair Value - Asset | 8,280 | 1,999 |
LIABILITIES | ||
Fair Value - Liability | 1,630 | 48 |
Fair Value, Measurements, Recurring | Interest Rate Swap | ||
ASSETS | ||
Fair Value - Asset | 4 | 865 |
LIABILITIES | ||
Fair Value - Liability | 48 | 103 |
Fair Value, Measurements, Recurring | Future | ||
ASSETS | ||
Fair Value - Asset | 1 | |
LIABILITIES | ||
Fair Value - Liability | 274 | 7 |
Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Mortgage loans held for sale | 0 | 0 |
Mortgage servicing rights | 0 | 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 1 | Interest Rate Lock Commitments | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Forward Contracts | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Loan Purchase Commitments | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Interest Rate Swap | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Future | ||
ASSETS | ||
Fair Value - Asset | 0 | |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Mortgage loans held for sale | 1,885,605 | 1,277,931 |
Mortgage servicing rights | 0 | 0 |
Total assets | 1,983,969 | 1,368,982 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 0 | 0 |
Excess spread financing (at fair value) | 0 | 0 |
Total liabilities | 28,525 | 18,525 |
Fair Value, Measurements, Recurring | Level 2 | Interest Rate Lock Commitments | ||
ASSETS | ||
Fair Value - Asset | 89,965 | 87,902 |
LIABILITIES | ||
Fair Value - Liability | 12 | 7 |
Fair Value, Measurements, Recurring | Level 2 | Forward Contracts | ||
ASSETS | ||
Fair Value - Asset | 115 | 284 |
LIABILITIES | ||
Fair Value - Liability | 26,561 | 18,360 |
Fair Value, Measurements, Recurring | Level 2 | Loan Purchase Commitments | ||
ASSETS | ||
Fair Value - Asset | 8,280 | 1,999 |
LIABILITIES | ||
Fair Value - Liability | 1,630 | 48 |
Fair Value, Measurements, Recurring | Level 2 | Interest Rate Swap | ||
ASSETS | ||
Fair Value - Asset | 4 | 865 |
LIABILITIES | ||
Fair Value - Liability | 48 | 103 |
Fair Value, Measurements, Recurring | Level 2 | Future | ||
ASSETS | ||
Fair Value - Asset | 1 | |
LIABILITIES | ||
Fair Value - Liability | 274 | 7 |
Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Mortgage loans held for sale | 0 | 0 |
Mortgage servicing rights | 3,233,041 | 2,949,739 |
Total assets | 3,233,041 | 2,949,739 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 56,522 | 49,430 |
Excess spread financing (at fair value) | 1,115,949 | 1,031,035 |
Total liabilities | 1,172,471 | 1,080,465 |
Fair Value, Measurements, Recurring | Level 3 | Interest Rate Lock Commitments | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Forward Contracts | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Loan Purchase Commitments | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Interest Rate Swap | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Future | ||
ASSETS | ||
Fair Value - Asset | 0 | |
LIABILITIES | ||
Fair Value - Liability | $ 0 | $ 0 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 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 | (23,356) | 57,554 | |||
Total gains or losses included in other comprehensive income | 0 | 0 | |||
Purchases | 0 | 0 | |||
Issuances | 262,976 | 171,317 | |||
Sales | 0 | 0 | |||
Settlements | (154,706) | (184,246) | |||
Dispositions | 0 | ||||
Ending balance | $ 1,115,949 | 1,115,949 | 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 | 7,092 | (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 | |||
Dispositions | 0 | ||||
Ending balance | 56,522 | 56,522 | 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 | (535,397) | (247,379) | |||
Total gains or losses included in other comprehensive income | 0 | 0 | |||
Purchases of servicing assets | 200,922 | $ 159,773 | 695,067 | 353,450 | 470,543 |
Servicing resulting from transfers of financial assets | 63,900 | 65,610 | 169,406 | 185,822 | 238,292 |
Sales | 0 | 0 | |||
Settlements | 0 | 0 | |||
Dispositions | (45,774) | $ 0 | (45,774) | $ 0 | |
Ending balance | $ 3,233,041 | $ 3,233,041 | $ 2,949,739 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Financial assets: | ||||
Cash and cash equivalents | $ 596,607 | $ 299,002 | $ 269,735 | $ 441,902 |
Restricted Cash and Cash Equivalents | 477,232 | 285,530 | ||
Mortgage loans held for sale | 1,885,605 | 1,277,931 | ||
Mortgage loans held for investment, net | 178,988 | 191,569 | ||
Reverse mortgage interests | 7,433,716 | 2,453,069 | ||
Derivative instruments | 98,364 | 91,051 | ||
Financial liabilities: | ||||
Total | 2,157,973 | 2,159,231 | ||
Advance facilities | 1,750,437 | 1,901,783 | ||
Warehouse facilities | 2,303,564 | 1,572,622 | ||
Derivative financial instruments | 28,525 | 18,525 | ||
Excess spread financing | 1,031,035 | |||
Mortgage servicing rights financing liability - fair value | 49,430 | |||
Other nonrecourse debt | 6,608,895 | 1,768,311 | ||
Fair Value, Measurements, Recurring | ||||
Financial assets: | ||||
Mortgage loans held for sale | 1,277,931 | |||
Financial liabilities: | ||||
Mortgage servicing rights financing liability - fair value | 49,430 | |||
Fair Value, Measurements, Recurring | Level 1 | ||||
Financial assets: | ||||
Cash and cash equivalents | 596,607 | 299,002 | ||
Restricted Cash and Cash Equivalents | 477,232 | 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 | 2,012,223 | 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 | 1,885,605 | 1,277,931 | ||
Mortgage loans held for investment, net | 0 | 0 | ||
Reverse mortgage interests | 0 | 0 | ||
Derivative instruments | 98,364 | 91,051 | ||
Financial liabilities: | ||||
Total | 0 | 0 | ||
Advance facilities | 1,750,437 | 1,901,783 | ||
Warehouse facilities | 2,303,564 | 1,572,622 | ||
Derivative financial instruments | 28,525 | 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 | 176,829 | 192,865 | ||
Reverse mortgage interests | 7,445,241 | 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 | 56,522 | 49,430 | ||
Legacy Asset | ||||
Financial liabilities: | ||||
Other nonrecourse debt | 67,897 | 75,838 | ||
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 | 78,228 | 86,570 | ||
Participating Interest Financing | ||||
Financial liabilities: | ||||
Other nonrecourse debt | 6,042,589 | 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 | 6,011,914 | 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 | 249,745 | 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 | 317,103 | 259,328 | ||
2015-1 HECM Securitization | ||||
Financial liabilities: | ||||
Other nonrecourse debt | 248,664 | $ 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 | $ 308,625 |
Capital Requirements - Narrativ
Capital Requirements - Narrative (Details) $ in Billions | Sep. 30, 2015USD ($) |
Mortgage Banking [Abstract] | |
Minimum Net Worth Required for Compliance | $ 1.2 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | |||||
Legal Fees | $ 13.9 | $ 3.6 | $ 37.3 | $ 18.8 | |
Principal amount outstanding on mortgage servicing rights | 4,600 | 4,600 | |||
Litigation and Regulatory Matters | |||||
Loss Contingencies [Line Items] | |||||
Minimum range of possible loss | 8.1 | 8.1 | |||
Maximum range of possible loss | 19.5 | 19.5 | |||
Regulatory settlement | |||||
Loss Contingencies [Line Items] | |||||
Settlement amount | 16.2 | ||||
Reverse mortgage interests | |||||
Loss Contingencies [Line Items] | |||||
Principal amount outstanding on mortgage servicing rights | 30,700 | 30,700 | $ 28,000 | ||
Unfunded advance obligations | $ 3,300 | $ 3,300 |
Business Segment Reporting - Fi
Business Segment Reporting - Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Service related | $ 211,311 | $ 361,509 | $ 884,157 | $ 1,080,037 | |
Gain/(loss) on mortgage loans held for sale | 185,872 | 142,815 | 516,752 | 443,667 | |
Total revenues | 397,183 | 504,324 | 1,400,909 | 1,523,704 | |
Total expenses and impairments | 446,221 | 327,224 | 1,271,049 | 995,068 | |
Interest income | 112,503 | 43,314 | 243,432 | 130,198 | |
Interest expense | (175,798) | (116,673) | (439,309) | (412,695) | |
Gain on disposal of property | 0 | 4,898 | 0 | 4,898 | |
Gain/(Loss) on interest rate swaps and caps | 109 | 940 | (563) | 2,808 | |
Total other income (expense) | (63,186) | (67,521) | (196,440) | (274,791) | |
Income before taxes | (112,224) | 109,579 | (66,580) | 253,845 | |
Depreciation and amortization | 14,646 | 9,562 | 41,266 | 29,963 | |
Assets | 17,036,940 | 10,877,044 | 17,036,940 | 10,877,044 | $ 11,112,675 |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Service related | 211,107 | 413,836 | 882,036 | 1,131,968 | |
Gain/(loss) on mortgage loans held for sale | 185,875 | 90,881 | 515,094 | 392,784 | |
Total revenues | 396,982 | 504,717 | 1,397,130 | 1,524,752 | |
Total expenses and impairments | 431,783 | 300,350 | 1,214,950 | 938,226 | |
Interest income | 108,034 | 37,273 | 231,725 | 116,943 | |
Interest expense | (132,716) | (66,088) | (310,185) | (256,293) | |
Gain on disposal of property | 0 | 0 | 0 | 0 | |
Gain/(Loss) on interest rate swaps and caps | 99 | 795 | (618) | 2,156 | |
Total other income (expense) | (24,583) | (28,020) | (79,078) | (137,194) | |
Income before taxes | (59,384) | 176,347 | 103,102 | 449,332 | |
Depreciation and amortization | 12,098 | 4,857 | 32,505 | 21,971 | |
Assets | 16,317,244 | 10,619,844 | 16,317,244 | 10,619,844 | |
Servicing Segment | |||||
Segment Reporting Information [Line Items] | |||||
Service related | 84,641 | 323,459 | 505,290 | 870,502 | |
Gain/(loss) on mortgage loans held for sale | 22,957 | (37,474) | 44,807 | (2,972) | |
Total revenues | 107,598 | 285,985 | 550,097 | 867,530 | |
Total expenses and impairments | 208,103 | 163,144 | 600,039 | 517,044 | |
Interest income | 89,097 | 18,369 | 180,657 | 59,191 | |
Interest expense | (115,307) | (48,651) | (263,473) | (199,464) | |
Gain on disposal of property | 0 | 0 | 0 | 0 | |
Gain/(Loss) on interest rate swaps and caps | 99 | 795 | (618) | 2,156 | |
Total other income (expense) | (26,111) | (29,487) | (83,434) | (138,117) | |
Income before taxes | (126,616) | 93,354 | (133,376) | 212,369 | |
Depreciation and amortization | 4,150 | 2,866 | 12,088 | 11,453 | |
Assets | 14,129,465 | 8,387,116 | 14,129,465 | 8,387,116 | |
Originations Segment | |||||
Segment Reporting Information [Line Items] | |||||
Service related | 17,017 | 10,439 | 37,507 | 38,388 | |
Gain/(loss) on mortgage loans held for sale | 162,918 | 128,355 | 470,287 | 395,756 | |
Total revenues | 179,935 | 138,794 | 507,794 | 434,144 | |
Total expenses and impairments | 131,300 | 89,369 | 348,708 | 291,503 | |
Interest income | 18,937 | 18,904 | 51,066 | 57,752 | |
Interest expense | (17,382) | (17,085) | (46,621) | (56,333) | |
Gain on disposal of property | 0 | 0 | 0 | 0 | |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | |
Total other income (expense) | 1,555 | 1,819 | 4,445 | 1,419 | |
Income before taxes | 50,190 | 51,244 | 163,531 | 144,060 | |
Depreciation and amortization | 3,674 | 1,049 | 8,835 | 7,754 | |
Assets | 1,902,485 | 1,929,239 | 1,902,485 | 1,929,239 | |
Solutionstar Segment | |||||
Segment Reporting Information [Line Items] | |||||
Service related | 109,449 | 79,938 | 339,239 | 223,078 | |
Gain/(loss) on mortgage loans held for sale | 0 | 0 | 0 | 0 | |
Total revenues | 109,449 | 79,938 | 339,239 | 223,078 | |
Total expenses and impairments | 92,380 | 47,837 | 266,203 | 129,679 | |
Interest income | 0 | 0 | 2 | 0 | |
Interest expense | (27) | (352) | (91) | (496) | |
Gain on disposal of property | 0 | 0 | 0 | 0 | |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | |
Total other income (expense) | (27) | (352) | (89) | (496) | |
Income before taxes | 17,042 | 31,749 | 72,947 | 92,903 | |
Depreciation and amortization | 4,274 | 942 | 11,582 | 2,764 | |
Assets | 285,294 | 303,489 | 285,294 | 303,489 | |
Legacy Portfolio and Other | |||||
Segment Reporting Information [Line Items] | |||||
Service related | 204 | 1,133 | 2,561 | 2,275 | |
Gain/(loss) on mortgage loans held for sale | (3) | (1,172) | 1,658 | (2,223) | |
Total revenues | 201 | (39) | 4,219 | 52 | |
Total expenses and impairments | 14,438 | 26,874 | 56,099 | 56,842 | |
Interest income | 4,469 | 5,687 | 11,267 | 12,155 | |
Interest expense | (43,082) | (50,585) | (129,124) | (156,402) | |
Gain on disposal of property | 0 | 4,898 | 0 | 4,898 | |
Gain/(Loss) on interest rate swaps and caps | 10 | 145 | 55 | 652 | |
Total other income (expense) | (38,603) | (39,855) | (117,802) | (138,697) | |
Income before taxes | (52,840) | (66,768) | (169,682) | (195,487) | |
Depreciation and amortization | 2,548 | 4,705 | 8,761 | 7,992 | |
Assets | 719,696 | 257,200 | 719,696 | 257,200 | |
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Service related | 0 | (53,460) | (440) | (54,206) | |
Gain/(loss) on mortgage loans held for sale | 0 | 53,106 | 0 | 53,106 | |
Total revenues | $ 0 | (354) | (440) | (1,100) | |
Total expenses and impairments | 0 | 0 | 0 | ||
Interest income | $ 0 | 354 | 440 | 1,100 | |
Interest expense | 0 | 0 | 0 | 0 | |
Gain on disposal of property | 0 | 0 | 0 | 0 | |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | |
Total other income (expense) | 0 | 354 | 440 | 1,100 | |
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 | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Servicing Segment | ||
Segment Reporting Information [Line Items] | ||
Adjustment between segments, net income (loss) | $ 3.4 | $ 5.8 |
Guarantor Financial Statement83
Guarantor Financial Statement Information - Narrative (Details) $ in Thousands | Sep. 30, 2015USD ($)subsidiary | Dec. 31, 2014USD ($) |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||
Total | $ | $ 2,157,973 | $ 2,159,231 |
Guarantor Subsidiary, Ownership Percentage | 100.00% | |
Number of Subsidiaries as Guarantors of Unsecured Debt | 2 |
Guarantor Financial Statement84
Guarantor Financial Statement Information - Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Assets | ||||
Cash and cash equivalents | $ 596,607 | $ 299,002 | $ 269,735 | $ 441,902 |
Restricted cash | 477,232 | 285,530 | ||
Mortgage servicing rights | 3,242,356 | 2,961,321 | ||
Advances | 2,127,064 | 2,546,362 | ||
Reverse mortgage interests | 7,433,716 | 2,453,069 | ||
Mortgage loans held for sale | 1,885,605 | 1,277,931 | 1,697,041 | 2,603,380 |
Mortgage loans held for investment, net | 178,988 | 191,569 | ||
Property and equipment, net | 137,869 | 129,611 | ||
Derivative financial instruments | 98,364 | 91,051 | ||
Other assets | 859,139 | 877,229 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 17,036,940 | 11,112,675 | 10,877,044 | |
Liabilities and shareholders' equity | ||||
Unsecured senior notes | 2,157,973 | 2,159,231 | ||
Advance facilities | 1,750,437 | 1,901,783 | ||
Warehouse facilities | 2,303,564 | 1,572,622 | ||
Payables and accrued liabilities | 1,291,528 | 1,322,078 | ||
MSR related liabilities - nonrecourse | 1,172,471 | 1,080,465 | ||
Derivative financial instruments | 28,525 | 18,525 | ||
Mortgage servicing liabilities | 27,624 | 65,382 | ||
Payables to affiliates | 0 | 0 | ||
Other nonrecourse debt | (6,608,895) | (1,768,311) | ||
Total liabilities | 15,341,017 | 9,888,397 | ||
Total equity | 1,695,923 | 1,224,278 | 989,898 | |
Total liabilities and equity | 17,036,940 | 11,112,675 | ||
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 | (1,759,495) | (1,808,947) | ||
Investment in subsidiaries | (2,196,986) | (1,658,258) | ||
Total assets | (3,956,481) | (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 | ||
Payables to affiliates | (1,759,495) | (1,808,947) | ||
Other nonrecourse debt | 0 | 0 | ||
Total liabilities | (1,759,495) | (1,808,947) | ||
Total equity | (2,196,986) | (1,658,258) | ||
Total liabilities and equity | (3,956,481) | (3,467,205) | ||
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 | 10,205 | 16,383 | ||
Investment in subsidiaries | 1,685,718 | 1,207,895 | ||
Total assets | 1,695,923 | 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 | ||
Payables to affiliates | 0 | 0 | ||
Other nonrecourse debt | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Total equity | 1,695,923 | 1,224,278 | ||
Total liabilities and equity | 1,695,923 | 1,224,278 | ||
Issuer (Parent) | ||||
Assets | ||||
Cash and cash equivalents | 575,045 | 279,770 | 256,513 | 422,268 |
Restricted cash | 186,363 | 177,090 | ||
Mortgage servicing rights | 3,242,356 | 2,961,321 | ||
Advances | 2,127,044 | 2,544,065 | ||
Reverse mortgage interests | 6,919,338 | 2,111,801 | ||
Mortgage loans held for sale | 1,742,100 | 1,243,700 | ||
Mortgage loans held for investment, net | 951 | 1,945 | ||
Property and equipment, net | 110,064 | 114,903 | ||
Derivative financial instruments | 92,960 | 87,911 | ||
Other assets | 932,014 | 1,069,061 | ||
Investment in subsidiaries | 511,268 | 450,363 | ||
Total assets | 16,439,503 | 11,041,930 | ||
Liabilities and shareholders' equity | ||||
Unsecured senior notes | 2,157,973 | 2,159,231 | ||
Advance facilities | 279,610 | 570,792 | ||
Warehouse facilities | 2,170,945 | 1,539,994 | ||
Payables and accrued liabilities | 1,236,858 | 1,282,895 | ||
MSR related liabilities - nonrecourse | 1,172,471 | 1,080,465 | ||
Derivative financial instruments | 28,525 | 18,525 | ||
Mortgage servicing liabilities | 27,624 | 65,382 | ||
Payables to affiliates | 1,637,189 | 1,683,606 | ||
Other nonrecourse debt | (6,042,590) | (1,433,145) | ||
Total liabilities | 14,753,785 | 9,834,035 | ||
Total equity | 1,685,718 | 1,207,895 | ||
Total liabilities and equity | 16,439,503 | 11,041,930 | ||
Guarantor (Subsidiaries) | ||||
Assets | ||||
Cash and cash equivalents | 3,802 | 288 | 691 | 3,907 |
Restricted cash | 3 | 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 | 870 | 835 | ||
Derivative financial instruments | 0 | 0 | ||
Other assets | 297,521 | 272,654 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 302,196 | 273,777 | ||
Liabilities and shareholders' equity | ||||
Unsecured senior notes | 0 | 0 | ||
Advance facilities | 0 | 0 | ||
Warehouse facilities | 0 | 0 | ||
Payables and accrued liabilities | 1,597 | 25 | ||
MSR related liabilities - nonrecourse | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Mortgage servicing liabilities | 0 | 0 | ||
Payables to affiliates | 894 | 894 | ||
Other nonrecourse debt | 0 | 0 | ||
Total liabilities | 2,491 | 919 | ||
Total equity | 299,705 | 272,858 | ||
Total liabilities and equity | 302,196 | 273,777 | ||
Non-Guarantor (Subsidiaries) | ||||
Assets | ||||
Cash and cash equivalents | 17,760 | 18,944 | $ 12,531 | $ 15,727 |
Restricted cash | 290,866 | 108,440 | ||
Mortgage servicing rights | 0 | 0 | ||
Advances | 20 | 2,297 | ||
Reverse mortgage interests | 514,378 | 341,268 | ||
Mortgage loans held for sale | 143,505 | 34,231 | ||
Mortgage loans held for investment, net | 178,037 | 189,624 | ||
Property and equipment, net | 26,935 | 13,873 | ||
Derivative financial instruments | 5,404 | 3,140 | ||
Other assets | 1,378,894 | 1,328,078 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 2,555,799 | 2,039,895 | ||
Liabilities and shareholders' equity | ||||
Unsecured senior notes | 0 | 0 | ||
Advance facilities | 1,470,827 | 1,330,991 | ||
Warehouse facilities | 132,619 | 32,628 | ||
Payables and accrued liabilities | 53,073 | 39,158 | ||
MSR related liabilities - nonrecourse | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Mortgage servicing liabilities | 0 | 0 | ||
Payables to affiliates | 121,412 | 124,447 | ||
Other nonrecourse debt | (566,305) | (335,166) | ||
Total liabilities | 2,344,236 | 1,862,390 | ||
Total equity | 211,563 | 177,505 | ||
Total liabilities and equity | $ 2,555,799 | $ 2,039,895 |
Guarantor Financial Statement85
Guarantor Financial Statement Information - Consolidating Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Condensed Financial Statements | |||||
Service related | $ 211,311 | $ 361,509 | $ 884,157 | $ 1,080,037 | |
Revenues: | |||||
Net gain on mortgage loans held for sale | 185,872 | 142,815 | 516,752 | 443,667 | |
Total revenues | 397,183 | 504,324 | 1,400,909 | 1,523,704 | |
Expenses: | |||||
Salaries, wages and benefits | 200,600 | 160,757 | 577,712 | 471,404 | |
General and administrative | 245,621 | 166,467 | 693,337 | 523,664 | |
Total expenses | 446,221 | 327,224 | 1,271,049 | 995,068 | |
Other income (expense): | |||||
Interest income | 112,503 | 43,314 | 243,432 | 130,198 | |
Interest expense | (175,798) | (116,673) | (439,309) | (412,695) | |
Gain on disposal of property | 0 | 4,898 | 0 | 4,898 | |
Gain/(Loss) on interest rate swaps and caps | 109 | 940 | (563) | 2,808 | |
Gain/(loss) from subsidiaries | 0 | 0 | 0 | 0 | |
Total other income (expense) | (63,186) | (67,521) | (196,440) | (274,791) | |
Income before taxes | (112,224) | 109,579 | (66,580) | 253,845 | |
Income Tax Expense (Benefit) | (47,295) | (1,700) | (30,649) | 52,242 | |
Net (loss) income | (64,929) | 111,279 | (35,931) | 201,603 | $ 221,024 |
Less: Net gain (loss) attributable to non-controlling interests | 1,413 | 54 | 4,167 | (113) | |
Net (loss) income attributable to Nationstar | $ (66,342) | 111,225 | (40,098) | 201,716 | |
Eliminations | |||||
Condensed Financial Statements | |||||
Service related | (17,133) | 0 | (54,206) | ||
Revenues: | |||||
Net gain on mortgage loans held for sale | $ 0 | 16,779 | 0 | 53,106 | |
Total revenues | 0 | (354) | 0 | (1,100) | |
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 | 354 | 0 | 1,100 | ||
Interest expense | $ 0 | 0 | 0 | 0 | |
Gain on disposal of property | 0 | 0 | |||
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | |
Gain/(loss) from subsidiaries | 51,101 | (124,274) | (21,517) | (282,766) | |
Total other income (expense) | 51,101 | (123,920) | (21,517) | (281,666) | |
Income before taxes | 51,101 | (124,274) | (21,517) | (282,766) | |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 | |
Net (loss) income | 51,101 | (124,274) | (21,517) | (282,766) | |
Less: Net gain (loss) attributable to non-controlling interests | 0 | 0 | 0 | 0 | |
Net (loss) income attributable to Nationstar | 51,101 | (124,274) | (21,517) | (282,766) | |
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 on disposal of property | 0 | 0 | |||
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | |
Gain/(loss) from subsidiaries | (66,342) | 111,225 | (40,098) | 201,716 | |
Total other income (expense) | (66,342) | 111,225 | (40,098) | 201,716 | |
Income before taxes | (66,342) | 111,225 | (40,098) | 201,716 | |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 | |
Net (loss) income | (66,342) | 111,225 | (40,098) | 201,716 | |
Less: Net gain (loss) attributable to non-controlling interests | 0 | 0 | 0 | 0 | |
Net (loss) income attributable to Nationstar | (66,342) | 111,225 | (40,098) | 201,716 | |
Issuer (Parent) | |||||
Condensed Financial Statements | |||||
Service related | 96,086 | 310,821 | 528,839 | 878,169 | |
Revenues: | |||||
Net gain on mortgage loans held for sale | 174,127 | 121,912 | 483,922 | 386,461 | |
Total revenues | 270,213 | 432,733 | 1,012,761 | 1,264,630 | |
Expenses: | |||||
Salaries, wages and benefits | 141,254 | 135,686 | 411,017 | 418,190 | |
General and administrative | 199,900 | 137,192 | 557,847 | 427,669 | |
Total expenses | 341,154 | 272,878 | 968,864 | 845,859 | |
Other income (expense): | |||||
Interest income | 101,613 | 38,403 | 215,663 | 116,258 | |
Interest expense | (157,197) | (106,771) | (388,024) | (367,784) | |
Gain on disposal of property | 4,898 | 4,898 | |||
Gain/(Loss) on interest rate swaps and caps | 10 | 145 | 55 | 652 | |
Gain/(loss) from subsidiaries | 15,241 | 13,049 | 61,615 | 81,050 | |
Total other income (expense) | (40,333) | (50,276) | (110,691) | (164,926) | |
Income before taxes | (111,274) | 109,579 | (66,794) | 253,845 | |
Income Tax Expense (Benefit) | (45,974) | (1,700) | (30,659) | 52,242 | |
Net (loss) income | (65,300) | 111,279 | (36,135) | 201,603 | |
Less: Net gain (loss) attributable to non-controlling interests | 1,042 | 54 | 3,963 | (113) | |
Net (loss) income attributable to Nationstar | (66,342) | 111,225 | (40,098) | 201,716 | |
Guarantor (Subsidiaries) | |||||
Condensed Financial Statements | |||||
Service related | 15,672 | (12,969) | 13,033 | 45,586 | |
Revenues: | |||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | 0 | |
Total revenues | 15,672 | (12,969) | 13,033 | 45,586 | |
Expenses: | |||||
Salaries, wages and benefits | 3,199 | 750 | 3,626 | 4,257 | |
General and administrative | 1,734 | (2,958) | 1,928 | 1,738 | |
Total expenses | 4,933 | (2,208) | 5,554 | 5,995 | |
Other income (expense): | |||||
Interest income | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Gain on disposal of property | 0 | 0 | |||
Gain/(Loss) on interest rate swaps and caps | 0 | 0 | 0 | 0 | |
Gain/(loss) from subsidiaries | 0 | 0 | 0 | 0 | |
Total other income (expense) | 0 | 0 | 0 | 0 | |
Income before taxes | 10,739 | (10,761) | 7,479 | 39,591 | |
Income Tax Expense (Benefit) | (1,323) | 0 | 0 | 0 | |
Net (loss) income | 12,062 | (10,761) | 7,479 | 39,591 | |
Less: Net gain (loss) attributable to non-controlling interests | 0 | 0 | 0 | 0 | |
Net (loss) income attributable to Nationstar | 12,062 | (10,761) | 7,479 | 39,591 | |
Non-Guarantor (Subsidiaries) | |||||
Condensed Financial Statements | |||||
Service related | 99,553 | 80,790 | 342,285 | 210,488 | |
Revenues: | |||||
Net gain on mortgage loans held for sale | 11,745 | 4,124 | 32,830 | 4,100 | |
Total revenues | 111,298 | 84,914 | 375,115 | 214,588 | |
Expenses: | |||||
Salaries, wages and benefits | 56,147 | 24,321 | 163,069 | 48,957 | |
General and administrative | 43,987 | 32,233 | 133,562 | 94,257 | |
Total expenses | 100,134 | 56,554 | 296,631 | 143,214 | |
Other income (expense): | |||||
Interest income | 10,890 | 4,557 | 27,769 | 12,840 | |
Interest expense | (18,601) | (9,902) | (51,285) | (44,911) | |
Gain on disposal of property | 0 | 0 | |||
Gain/(Loss) on interest rate swaps and caps | 99 | 795 | (618) | 2,156 | |
Gain/(loss) from subsidiaries | 0 | 0 | 0 | 0 | |
Total other income (expense) | (7,612) | (4,550) | (24,134) | (29,915) | |
Income before taxes | 3,552 | 23,810 | 54,350 | 41,459 | |
Income Tax Expense (Benefit) | 2 | 0 | 10 | 0 | |
Net (loss) income | 3,550 | 23,810 | 54,340 | 41,459 | |
Less: Net gain (loss) attributable to non-controlling interests | 371 | 0 | 204 | 0 | |
Net (loss) income attributable to Nationstar | $ 3,179 | $ 23,810 | $ 54,136 | $ 41,459 |
Guarantor Financial Statement86
Guarantor Financial Statement Information - Consolidating Statements of Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Operating activities | ||||||
Net (loss) income attributable to Nationstar | $ (66,342) | $ 111,225 | $ (40,098) | $ 201,716 | ||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||||
(Gain)/loss from subsidiaries | 0 | 0 | ||||
Noncontrolling interest | 4,167 | 306 | ||||
Share-based compensation | 15,337 | 11,344 | ||||
Excess tax benefit from share-based compensation | (1,095) | (2,197) | ||||
Loss on foreclosed real estate | 0 | |||||
Gain on mortgage loans held for sale | (516,752) | (443,667) | ||||
Mortgage loans originated and purchased, net of fees | (13,970,035) | (13,272,856) | ||||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | (1,392,858) | (3,284,336) | ||||
Proceeds on sale of and payments of mortgage loans held for sale | 15,048,814 | 17,616,711 | ||||
(Gain)/loss on derivatives including ineffectiveness | 563 | (2,808) | ||||
Cash settlement on derivative financial instruments | 0 | 1,352 | ||||
Depreciation and amortization | 14,646 | 9,562 | 41,266 | 29,963 | ||
Amortization/(accretion) of premiums/(discounts) | (7,395) | 16,660 | ||||
Fair value changes in excess spread financing | (23,357) | 61,080 | ||||
Fair value changes and amortization/accretion of mortgage servicing rights | 499,905 | 128,227 | ||||
Fair value change in mortgage servicing rights financing liability | 7,093 | (38,260) | ||||
Changes in assets and liabilities: | ||||||
Advances | 419,298 | 664,311 | ||||
Reverse mortgage interests | (164,963) | (630,139) | ||||
Other assets | 145,707 | 273,464 | ||||
Payables and accrued liabilities | (126,955) | (25,461) | ||||
Net cash attributable to operating activities | (61,358) | 1,305,410 | ||||
Investing activities | ||||||
Property and equipment additions, net of disposals | (44,069) | (41,567) | ||||
Proceeds from sale of building | 0 | 10,412 | ||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (614,602) | (317,247) | ||||
Purchase of reverse mortgage interests, net of participations sold | (4,815,684) | 0 | ||||
Sale of forward mortgage servicing rights | 41,197 | 0 | ||||
Proceeds on sale of servicer advances | 0 | 512,527 | ||||
Proceeds from sales of REO | 0 | |||||
Acquisitions, net | (44,858) | (18,000) | ||||
Net cash attributable to investing activities | (5,478,016) | 146,125 | ||||
Financing activities | ||||||
Transfers (to) from restricted cash, net | (191,702) | 282,289 | ||||
Repayment of unsecured senior notes | 0 | (285,000) | ||||
Issuance of common stock, net of issuance costs | $ 497,800 | 497,761 | 0 | |||
Debt financing costs | (10,668) | (11,461) | ||||
Increase (decrease) advance facilities | 730,942 | (1,439,738) | ||||
Increase (decrease) warehouse facilities | (151,346) | (502,403) | ||||
Proceeds from HECM securitizations | 342,403 | 0 | ||||
Repayment of HECM securitizations | (102,687) | 0 | ||||
Issuance of excess spread financing | 262,976 | 150,951 | ||||
Repayment of excess spread financing | (154,706) | (135,897) | ||||
Increase in participating interest financing in reverse mortgage interests | 4,629,380 | 279,636 | ||||
Proceeds from mortgage servicing rights financing | 0 | 52,835 | ||||
Repayment of nonrecourse debt–Legacy assets | (10,269) | (12,356) | ||||
Excess tax benefit from share-based compensation | 1,095 | 2,197 | $ 2,243 | |||
Redemption of shares for stock vesting | (6,200) | (4,755) | ||||
Net cash attributable to financing activities | 5,836,979 | (1,623,702) | ||||
Net increase (decrease) in cash and cash equivalents | 297,605 | (172,167) | ||||
Cash and cash equivalents at beginning of period | 299,002 | 299,002 | 441,902 | 441,902 | ||
Cash and cash equivalents at end of period | 596,607 | 269,735 | 596,607 | 269,735 | 299,002 | |
Nationstar | ||||||
Operating activities | ||||||
Net (loss) income attributable to Nationstar | (66,342) | 111,225 | (40,098) | 201,716 | ||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||||
(Gain)/loss from subsidiaries | 40,098 | (201,716) | ||||
Noncontrolling interest | 0 | |||||
Share-based compensation | 0 | 0 | ||||
Excess tax benefit from share-based compensation | 0 | 0 | ||||
Loss on foreclosed real estate | 0 | |||||
Gain on mortgage loans held for sale | 0 | 0 | ||||
Mortgage loans originated and purchased, net of fees | 0 | 0 | ||||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | 0 | 0 | ||||
Proceeds on sale of and payments of mortgage loans held for sale | 0 | 0 | ||||
(Gain)/loss on derivatives including ineffectiveness | 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 | 6,200 | 4,755 | ||||
Payables and accrued liabilities | 0 | 0 | ||||
Net cash attributable to operating activities | 6,200 | 4,755 | ||||
Investing activities | ||||||
Property and equipment additions, net of disposals | 0 | 0 | ||||
Proceeds from sale of building | 0 | |||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 | ||||
Purchase of reverse mortgage interests, net of participations sold | 0 | |||||
Sale of forward mortgage servicing rights | 0 | |||||
Proceeds on sale of servicer advances | 0 | |||||
Proceeds from sales of REO | 0 | |||||
Acquisitions, net | 0 | 0 | ||||
Net cash attributable to investing activities | 0 | 0 | ||||
Financing activities | ||||||
Transfers (to) from restricted cash, net | 0 | 0 | ||||
Repayment of unsecured senior notes | 0 | |||||
Issuance of common stock, net of issuance costs | 0 | |||||
Debt financing costs | 0 | 0 | ||||
Increase (decrease) advance facilities | 0 | 0 | ||||
Increase (decrease) warehouse facilities | 0 | |||||
Repayment of HECM securitizations | 0 | |||||
Issuance of excess spread financing | 0 | 0 | ||||
Repayment of excess spread financing | 0 | 0 | ||||
Increase in participating interest financing in reverse mortgage interests | 0 | 0 | ||||
Proceeds from mortgage servicing rights financing | 0 | |||||
Repayment of nonrecourse debt–Legacy assets | 0 | 0 | ||||
Excess tax benefit from share-based compensation | 0 | 0 | ||||
Redemption of shares for stock vesting | (6,200) | (4,755) | ||||
Net cash attributable to financing activities | (6,200) | (4,755) | ||||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | ||||
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 | ||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 | 0 | |
Issuer (Parent) | ||||||
Operating activities | ||||||
Net (loss) income attributable to Nationstar | (66,342) | 111,225 | (40,098) | 201,716 | ||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||||
(Gain)/loss from subsidiaries | (61,615) | (81,050) | ||||
Noncontrolling interest | 3,963 | 306 | ||||
Share-based compensation | 8,476 | 11,344 | ||||
Excess tax benefit from share-based compensation | (1,095) | (2,197) | ||||
Loss on foreclosed real estate | 0 | |||||
Gain on mortgage loans held for sale | (481,039) | (386,461) | ||||
Mortgage loans originated and purchased, net of fees | (13,136,799) | (13,272,856) | ||||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | (1,392,858) | (3,284,336) | ||||
Proceeds on sale of and payments of mortgage loans held for sale | 14,277,068 | 17,589,098 | ||||
(Gain)/loss on derivatives including ineffectiveness | (55) | (652) | ||||
Cash settlement on derivative financial instruments | 0 | |||||
Depreciation and amortization | 29,672 | 27,148 | ||||
Amortization/(accretion) of premiums/(discounts) | (4,028) | 18,578 | ||||
Fair value changes in excess spread financing | (23,357) | 61,080 | ||||
Fair value changes and amortization/accretion of mortgage servicing rights | 499,905 | 128,227 | ||||
Fair value change in mortgage servicing rights financing liability | 7,093 | (38,260) | ||||
Changes in assets and liabilities: | ||||||
Advances | 417,021 | (3,332,289) | ||||
Reverse mortgage interests | 8,147 | (630,139) | ||||
Other assets | 167,774 | 1,864,514 | ||||
Payables and accrued liabilities | (125,407) | (38,453) | ||||
Net cash attributable to operating activities | 152,768 | (1,164,682) | ||||
Investing activities | ||||||
Property and equipment additions, net of disposals | (23,446) | (29,517) | ||||
Proceeds from sale of building | 10,412 | |||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (614,602) | (317,247) | ||||
Purchase of reverse mortgage interests, net of participations sold | (4,815,684) | |||||
Sale of forward mortgage servicing rights | 41,197 | |||||
Proceeds on sale of servicer advances | 512,527 | |||||
Proceeds from sales of REO | 0 | |||||
Acquisitions, net | 0 | (18,000) | ||||
Net cash attributable to investing activities | (5,412,535) | 158,175 | ||||
Financing activities | ||||||
Transfers (to) from restricted cash, net | (9,273) | 100,185 | ||||
Repayment of unsecured senior notes | (285,000) | |||||
Issuance of common stock, net of issuance costs | 497,761 | |||||
Debt financing costs | (10,668) | (11,461) | ||||
Increase (decrease) advance facilities | 630,952 | 687,306 | ||||
Increase (decrease) warehouse facilities | 0 | |||||
Repayment of HECM securitizations | 0 | |||||
Issuance of excess spread financing | 262,976 | 150,951 | ||||
Repayment of excess spread financing | (154,706) | (135,897) | ||||
Increase in participating interest financing in reverse mortgage interests | 4,629,380 | 279,636 | ||||
Proceeds from mortgage servicing rights financing | 52,835 | |||||
Repayment of nonrecourse debt–Legacy assets | (1,293) | 0 | ||||
Excess tax benefit from share-based compensation | 1,095 | 2,197 | ||||
Redemption of shares for stock vesting | 0 | 0 | ||||
Net cash attributable to financing activities | 5,555,042 | 840,752 | ||||
Net increase (decrease) in cash and cash equivalents | 295,275 | (165,755) | ||||
Cash and cash equivalents at beginning of period | 279,770 | 279,770 | 422,268 | 422,268 | ||
Cash and cash equivalents at end of period | 575,045 | 256,513 | 575,045 | 256,513 | 279,770 | |
Guarantor (Subsidiaries) | ||||||
Operating activities | ||||||
Net (loss) income attributable to Nationstar | 12,062 | (10,761) | 7,479 | 39,591 | ||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||||
(Gain)/loss from subsidiaries | 0 | 0 | ||||
Noncontrolling interest | 204 | 0 | ||||
Share-based compensation | 0 | 0 | ||||
Excess tax benefit from share-based compensation | 0 | 0 | ||||
Loss on foreclosed real estate | 0 | |||||
Gain on mortgage loans held for sale | 0 | 0 | ||||
Mortgage loans originated and purchased, net of fees | 0 | 0 | ||||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | 0 | 0 | ||||
Proceeds on sale of and payments of mortgage loans held for sale | 0 | 0 | ||||
(Gain)/loss on derivatives including ineffectiveness | 0 | 0 | ||||
Cash settlement on derivative financial instruments | 0 | |||||
Depreciation and amortization | 0 | 89 | ||||
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 | 467 | ||||
Reverse mortgage interests | 0 | 0 | ||||
Other assets | (5,703) | (37,347) | ||||
Payables and accrued liabilities | 1,572 | (5,950) | ||||
Net cash attributable to operating activities | 3,552 | (3,150) | ||||
Investing activities | ||||||
Property and equipment additions, net of disposals | (35) | (69) | ||||
Proceeds from sale of building | 0 | |||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 | ||||
Purchase of reverse mortgage interests, net of participations sold | 0 | |||||
Sale of forward mortgage servicing rights | 0 | |||||
Proceeds on sale of servicer advances | 0 | |||||
Proceeds from sales of REO | 0 | |||||
Acquisitions, net | 0 | 0 | ||||
Net cash attributable to investing activities | (35) | (69) | ||||
Financing activities | ||||||
Transfers (to) from restricted cash, net | (3) | 3 | ||||
Repayment of unsecured senior notes | 0 | |||||
Issuance of common stock, net of issuance costs | 0 | |||||
Debt financing costs | 0 | 0 | ||||
Increase (decrease) advance facilities | 0 | 0 | ||||
Increase (decrease) warehouse facilities | 0 | |||||
Repayment of HECM securitizations | 0 | |||||
Issuance of excess spread financing | 0 | 0 | ||||
Repayment of excess spread financing | 0 | 0 | ||||
Increase in participating interest financing in reverse mortgage interests | 0 | 0 | ||||
Proceeds from mortgage servicing rights financing | 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 | (3) | 3 | ||||
Net increase (decrease) in cash and cash equivalents | 3,514 | (3,216) | ||||
Cash and cash equivalents at beginning of period | 288 | 288 | 3,907 | 3,907 | ||
Cash and cash equivalents at end of period | 3,802 | 691 | 3,802 | 691 | 288 | |
Non-Guarantor (Subsidiaries) | ||||||
Operating activities | ||||||
Net (loss) income attributable to Nationstar | 3,179 | 23,810 | 54,136 | 41,459 | ||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||||
(Gain)/loss from subsidiaries | 0 | 0 | ||||
Noncontrolling interest | 0 | |||||
Share-based compensation | 6,861 | 0 | ||||
Excess tax benefit from share-based compensation | 0 | 0 | ||||
Loss on foreclosed real estate | 0 | |||||
Gain on mortgage loans held for sale | (35,713) | (4,100) | ||||
Mortgage loans originated and purchased, net of fees | (833,236) | 0 | ||||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | 0 | 0 | ||||
Proceeds on sale of and payments of mortgage loans held for sale | 771,746 | (25,493) | ||||
(Gain)/loss on derivatives including ineffectiveness | 618 | (2,156) | ||||
Cash settlement on derivative financial instruments | 1,352 | |||||
Depreciation and amortization | 11,594 | 2,726 | ||||
Amortization/(accretion) of premiums/(discounts) | (3,367) | (1,918) | ||||
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 | 2,277 | 3,996,133 | ||||
Reverse mortgage interests | (173,110) | 0 | ||||
Other assets | (22,564) | (1,558,527) | ||||
Payables and accrued liabilities | (3,120) | 19,011 | ||||
Net cash attributable to operating activities | (223,878) | 2,468,487 | ||||
Investing activities | ||||||
Property and equipment additions, net of disposals | (20,588) | (11,981) | ||||
Proceeds from sale of building | 0 | |||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 | ||||
Purchase of reverse mortgage interests, net of participations sold | 0 | |||||
Sale of forward mortgage servicing rights | 0 | |||||
Proceeds on sale of servicer advances | 0 | |||||
Proceeds from sales of REO | 0 | |||||
Acquisitions, net | (44,858) | 0 | ||||
Net cash attributable to investing activities | (65,446) | (11,981) | ||||
Financing activities | ||||||
Transfers (to) from restricted cash, net | (182,426) | 182,101 | ||||
Repayment of unsecured senior notes | 0 | |||||
Issuance of common stock, net of issuance costs | 0 | |||||
Debt financing costs | 0 | 0 | ||||
Increase (decrease) advance facilities | 99,990 | (2,127,044) | ||||
Increase (decrease) warehouse facilities | (502,403) | |||||
Repayment of HECM securitizations | (102,687) | |||||
Issuance of excess spread financing | 0 | 0 | ||||
Repayment of excess spread financing | 0 | 0 | ||||
Increase in participating interest financing in reverse mortgage interests | 0 | 0 | ||||
Proceeds from mortgage servicing rights financing | 0 | |||||
Repayment of nonrecourse debt–Legacy assets | (8,976) | (12,356) | ||||
Excess tax benefit from share-based compensation | 0 | 0 | ||||
Redemption of shares for stock vesting | 0 | 0 | ||||
Net cash attributable to financing activities | 288,140 | (2,459,702) | ||||
Net increase (decrease) in cash and cash equivalents | (1,184) | (3,196) | ||||
Cash and cash equivalents at beginning of period | 18,944 | 18,944 | 15,727 | 15,727 | ||
Cash and cash equivalents at end of period | 17,760 | 12,531 | 17,760 | 12,531 | 18,944 | |
Eliminations | ||||||
Operating activities | ||||||
Net (loss) income attributable to Nationstar | 51,101 | (124,274) | (21,517) | (282,766) | ||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | ||||||
(Gain)/loss from subsidiaries | 21,517 | 282,766 | ||||
Noncontrolling interest | 0 | |||||
Share-based compensation | 0 | 0 | ||||
Excess tax benefit from share-based compensation | 0 | 0 | ||||
Loss on foreclosed real estate | 0 | |||||
Gain on mortgage loans held for sale | 0 | (53,106) | ||||
Mortgage loans originated and purchased, net of fees | 0 | 0 | ||||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | 0 | 0 | ||||
Proceeds on sale of and payments of mortgage loans held for sale | 0 | 53,106 | ||||
(Gain)/loss on derivatives including ineffectiveness | 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 | 69 | ||||
Payables and accrued liabilities | 0 | (69) | ||||
Net cash attributable to operating activities | 0 | 0 | ||||
Investing activities | ||||||
Property and equipment additions, net of disposals | 0 | 0 | ||||
Proceeds from sale of building | 0 | |||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 | ||||
Purchase of reverse mortgage interests, net of participations sold | 0 | |||||
Sale of forward mortgage servicing rights | 0 | |||||
Proceeds on sale of servicer advances | 0 | |||||
Proceeds from sales of REO | 0 | |||||
Acquisitions, net | 0 | 0 | ||||
Net cash attributable to investing activities | 0 | 0 | ||||
Financing activities | ||||||
Transfers (to) from restricted cash, net | 0 | 0 | ||||
Repayment of unsecured senior notes | 0 | |||||
Issuance of common stock, net of issuance costs | 0 | |||||
Debt financing costs | 0 | 0 | ||||
Increase (decrease) advance facilities | 0 | 0 | ||||
Increase (decrease) warehouse facilities | 0 | |||||
Repayment of HECM securitizations | 0 | |||||
Issuance of excess spread financing | 0 | 0 | ||||
Repayment of excess spread financing | 0 | 0 | ||||
Increase in participating interest financing in reverse mortgage interests | 0 | 0 | ||||
Proceeds from mortgage servicing rights financing | 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 | 0 | ||
Cash and cash equivalents at end of period | $ 0 | $ 0 | 0 | $ 0 | $ 0 | |
2014-1 HECM securitization | ||||||
Financing activities | ||||||
Increase (decrease) warehouse facilities | (151,346) | |||||
Proceeds from HECM securitizations | 342,403 | |||||
2014-1 HECM securitization | Nationstar | ||||||
Financing activities | ||||||
Increase (decrease) warehouse facilities | 0 | |||||
Proceeds from HECM securitizations | 0 | |||||
2014-1 HECM securitization | Issuer (Parent) | ||||||
Financing activities | ||||||
Increase (decrease) warehouse facilities | (291,182) | |||||
Proceeds from HECM securitizations | 0 | |||||
2014-1 HECM securitization | Guarantor (Subsidiaries) | ||||||
Financing activities | ||||||
Increase (decrease) warehouse facilities | 0 | |||||
Proceeds from HECM securitizations | 0 | |||||
2014-1 HECM securitization | Non-Guarantor (Subsidiaries) | ||||||
Financing activities | ||||||
Increase (decrease) warehouse facilities | 139,836 | |||||
Proceeds from HECM securitizations | 342,403 | |||||
2014-1 HECM securitization | Eliminations | ||||||
Financing activities | ||||||
Increase (decrease) warehouse facilities | 0 | |||||
Proceeds from HECM securitizations | $ 0 |
Disclosures Related to Transa87
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||||
Principal amount outstanding on mortgage servicing rights | $ 4,600,000 | $ 4,600,000 | |||
Mortgage servicing rights financing liability - fair value | $ 49,430 | ||||
Newcastle | |||||
Related Party Transaction [Line Items] | |||||
Servicing fee, percentage of unpaid principal balance | 0.50% | ||||
Principal amount outstanding on mortgage servicing rights | 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 | 2,700 | $ 3,100 | |
New Residential | |||||
Related Party Transaction [Line Items] | |||||
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets | 900 | 3,000 | |||
Payment of Servicing Fees in Excess of Contractually Specified Amount | 29,700 | ||||
Fair Value, Measurements, Recurring | |||||
Related Party Transaction [Line Items] | |||||
Excess Spread Financing, Fair Value Disclosure | 1,115,949 | 1,115,949 | 1,031,035 | ||
Mortgage servicing rights financing liability - fair value | 49,430 | ||||
Fair Value, Measurements, Recurring | New Residential | |||||
Related Party Transaction [Line Items] | |||||
Mortgage servicing rights financing liability - fair value | $ 56,522 | $ 56,522 | $ 49,400 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Nov. 03, 2015USD ($) |
Variable Interest Entity | Nationstar Advance Agency Receivables Trust | Subsequent Event | |
Subsequent Event [Line Items] | |
Maximum borrowing capacity | $ 550 |