Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2016shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Nationstar Mortgage Holdings Inc. |
Entity Central Index Key | 1,520,566 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 102,873,112 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 460,951 | $ 613,241 |
Restricted cash | 307,564 | 332,105 |
Mortgage servicing rights, $3,088,123 and $3,358,327 at fair value, respectively | 3,096,084 | 3,366,973 |
Advances, net | 2,070,599 | 2,223,083 |
Reverse mortgage interests, net | 7,584,086 | 7,514,323 |
Mortgage loans held for sale | 1,880,654 | 1,429,691 |
Mortgage loans held for investment, net of allowance for loan losses of $3,549 and $3,549, respectively | 166,564 | 173,650 |
Property and equipment, net of accumulated depreciation of $106,797 and $92,834, respectively | 142,155 | 142,836 |
Derivative financial instruments | 109,168 | 99,699 |
Other assets | 733,699 | 721,832 |
Total assets | 16,551,524 | 16,617,433 |
Liabilities and stockholders' equity | ||
Unsecured senior notes, net of unamortized debt issuance costs $21,535 and $22,940, respectively | 2,025,265 | 2,025,754 |
Advance facilities, net of unamortized debt issuance costs $3,409 and $6,433, respectively | 1,563,750 | 1,639,690 |
Warehouse facilities, net of unamortized debt issuance costs $2,171 and $3,206, respectively | 2,414,495 | 1,890,320 |
Payables and accrued liabilities | 1,139,400 | 1,296,387 |
MSR related liabilities - nonrecourse | 1,242,999 | 1,300,782 |
Mortgage servicing liabilities | 18,065 | 25,260 |
Derivative financial instruments | 20,835 | 5,823 |
Other nonrecourse debt, net of unamortized debt issuance costs $5,758 and $4,558, respectively | (6,545,196) | (6,666,040) |
Total liabilities | $ 14,970,005 | $ 14,850,056 |
Commitments and contingencies (Note 15) | ||
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, 109,909 shares and 109,826 shares issued, respectively | 1,099 | 1,084 |
Additional paid-in-capital | 1,109,005 | 1,104,972 |
Retained earnings | 549,449 | 681,838 |
Treasury shares at cost; 7,036 and 989 shares, respectively | (86,395) | (29,780) |
Total Nationstar stockholders' equity | 1,573,158 | 1,758,114 |
Noncontrolling interest | 8,361 | 9,263 |
Total stockholders' equity | 1,581,519 | 1,767,377 |
Total liabilities and stockholders' equity | $ 16,551,524 | $ 16,617,433 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Mortgage servicing rights at fair value | $ 3,088,123 | $ 3,358,327 |
Allowance for loan losses | 3,549 | 3,549 |
Accumulated depreciation | 106,797 | 92,834 |
Unamortized debt issuance costs | $ 5,915 | $ 5,713 |
Preferred stock, par value (in dollars per share) | $ 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 (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 109,909,000 | 109,826,000 |
Treasury Shares | 7,036,000 | 989,000 |
Unsecured Senior Notes | ||
Unamortized debt issuance costs | $ 21,535 | $ 22,940 |
Advance Facilities | ||
Unamortized debt issuance costs | 3,409 | 6,433 |
Warehouse Facilities | ||
Unamortized debt issuance costs | 2,171 | 3,206 |
Nonrecourse Debt | ||
Unamortized debt issuance costs | $ 5,758 | $ 4,559 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | ||
Service related | $ 92,653 | $ 215,123 |
Net gain on mortgage loans held for sale | 171,116 | 166,994 |
Total revenues | 263,769 | 382,117 |
Expenses: | ||
Salaries, wages and benefits | 197,362 | 178,755 |
General and administrative | 224,115 | 205,088 |
Total expenses | 421,477 | 383,843 |
Other income (expenses): | ||
Interest income | 102,843 | 43,774 |
Interest expense | (160,776) | (115,648) |
Gain on repurchase of unsecured senior notes | 77 | 0 |
Gain (loss) on interest rate swaps and caps | 8 | (767) |
Total other expenses, net | (57,848) | (72,641) |
Loss before income tax benefit | (215,556) | (74,367) |
Income tax benefit | (82,265) | (27,525) |
Net loss | (133,291) | (46,842) |
Less: net income (loss) attributable to non-controlling interests | (902) | 1,473 |
Net loss attributable to Nationstar | $ (132,389) | $ (48,315) |
Net loss per common share attributable to common stockholders: | ||
Basic and diluted loss per common share (in dollars per share) | $ (1.28) | $ (0.54) |
Weighted average shares of common stock outstanding: | ||
Basic and diluted (in shares) | 103,098 | 89,911 |
Dividends declared per share (in dollars per share) | $ 0 | $ 0 |
Unaudited Consolidated Stateme5
Unaudited Consolidated Statements of Stockholders' 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, 2014 | 90,357 | ||||||
Beginning of Period at Dec. 31, 2014 | $ 1,224,278 | $ 910 | $ 587,446 | $ 643,059 | $ (12,433) | $ 1,218,982 | $ 5,296 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued under incentive plan, shares | 585 | ||||||
Shares issued under incentive plan | $ (1) | 1 | |||||
Acquisition on noncontrolling interest in subsidiaries | (760) | (760) | |||||
Share-based compensation | 5,524 | 5,524 | 5,524 | ||||
Stock offering, shares | 17,500 | ||||||
Stock offering | 497,758 | $ 175 | 497,583 | 497,758 | |||
Excess tax benefit from share based compensation | 1,095 | 1,095 | 1,095 | ||||
Shares acquired by Nationstar related to incentive compensation awards, shares | (188) | ||||||
Shares acquired by Nationstar related to incentive compensation awards | (5,442) | (5,442) | (5,442) | ||||
Other, shares | (675) | ||||||
Net income (loss) | (46,842) | (48,315) | (48,315) | 1,473 | |||
Ending of Period at Mar. 31, 2015 | 1,675,611 | $ 1,084 | 1,091,649 | 594,744 | (17,875) | 1,669,602 | 6,009 |
Ending of Period, shares at Mar. 31, 2015 | 107,579 | ||||||
Beginning of Period, shares at Dec. 31, 2015 | 108,837 | ||||||
Beginning of Period at Dec. 31, 2015 | 1,767,377 | $ 1,084 | 1,104,972 | 681,838 | (29,780) | 1,758,114 | 9,263 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued under incentive plan, shares | 489 | ||||||
Share-based compensation | 6,843 | 6,843 | 6,843 | ||||
Shares acquired by Nationstar related to incentive compensation awards, shares | (145) | ||||||
Shares acquired by Nationstar related to incentive compensation awards | (1,564) | (1,564) | (1,564) | ||||
Excess tax deficiency from share-based compensation | (2,795) | (2,795) | (2,795) | ||||
Repurchase of common stock, shares | (5,522) | ||||||
Repurchase of common stock | (55,051) | (55,051) | (55,051) | ||||
Other, shares | (786) | ||||||
Other | $ 15 | (15) | |||||
Net income (loss) | (133,291) | (132,389) | (132,389) | (902) | |||
Ending of Period at Mar. 31, 2016 | $ 1,581,519 | $ 1,099 | $ 1,109,005 | $ 549,449 | $ (86,395) | $ 1,573,158 | $ 8,361 |
Ending of Period, shares at Mar. 31, 2016 | 102,873 |
Unaudited Consolidated Stateme6
Unaudited Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities | ||
Net loss attributable to Nationstar | $ (132,389,000) | $ (48,315,000) |
Reconciliation of net loss to net cash attributable to operating activities: | ||
Noncontrolling interest | (902,000) | 1,473,000 |
Share-based compensation | 6,843,000 | 5,524,000 |
Excess tax deficiency (benefit) from share-based compensation | 2,795,000 | (1,095,000) |
Net gain on mortgage loans held for sale | (171,116,000) | (166,994,000) |
Mortgage loans originated and purchased, net of fees | (4,240,116,000) | (4,209,078,000) |
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | (486,124,000) | (405,893,000) |
Proceeds on sale of and payments of mortgage loans held for sale and held for investment | 4,377,242,000 | 4,003,126,000 |
Gain on repurchase of unsecured senior notes | (77,000) | 0 |
(Gain) loss on interest rate swaps and caps | (8,000) | 767,000 |
Depreciation and amortization | 23,144,000 | 18,119,000 |
Amortization (accretion) of premiums (discounts) | 9,878,000 | (7,062,000) |
Fair value changes in excess spread financing | (23,699,000) | 13,114,000 |
Fair value changes and amortization/accretion of mortgage servicing rights | 286,378,000 | 204,200,000 |
Fair value change in mortgage servicing rights financing liability | 13,033,000 | (4,386,000) |
Changes in assets and liabilities: | ||
Advances | 152,484,000 | 95,436,000 |
Reverse mortgage interests | (14,998,000) | (180,793,000) |
Other assets | 26,111,000 | 18,677,000 |
Payables and accrued liabilities | (159,895,000) | 2,873,000 |
Net cash attributable to operating activities | (331,416,000) | (660,307,000) |
Investing Activities | ||
Property and equipment additions, net of disposals | (13,104,000) | (11,993,000) |
Purchase of forward mortgage servicing rights, net of liabilities incurred | (1,530,000) | (196,081,000) |
Proceeds from sale of forward mortgage servicing rights | 18,361,000 | 0 |
Purchase of reverse mortgage interests | (55,215,000) | 0 |
Proceeds on sale of reverse mortgage interest | 450,000 | 0 |
Acquisitions, net | 0 | (31,276,000) |
Net cash attributable to investing activities | (51,038,000) | (239,350,000) |
Financing Activities | ||
Transfers (to) from restricted cash, net | 24,541,000 | (73,012,000) |
Issuance of common stock, net of issuance costs | 0 | 497,758,000 |
Debt financing costs | (2,497,000) | (1,549,000) |
Increase in warehouse facilities | 522,893,000 | 904,850,000 |
Decrease in advance facilities | (79,048,000) | (18,471,000) |
Proceeds from HECM securitizations | 281,680,000 | 73,082,000 |
Repayment of HECM securitizations | (285,985,000) | (26,829,000) |
Issuance of excess spread financing | 0 | 52,957,000 |
Repayment of excess spread financing | (47,117,000) | (49,516,000) |
Increase (decrease) in participating interest financing in reverse mortgage interests | (120,362,000) | 64,781,000 |
Repayment of nonrecourse debt – legacy assets | (3,056,000) | (3,273,000) |
Repurchase of unsecured senior notes | (1,475,000) | 0 |
Excess tax (deficiency) benefit from share-based compensation | (2,795,000) | 1,095,000 |
Surrender of shares relating to stock vesting | (1,564,000) | (5,442,000) |
Repurchase of common stock | (55,051,000) | 0 |
Net cash attributable to financing activities | 230,164,000 | 1,416,431,000 |
Net increase (decrease) in cash and cash equivalents | (152,290,000) | 516,774,000 |
Cash and cash equivalents at beginning of period | 613,241,000 | 299,002,000 |
Cash and cash equivalents at end of period | 460,951,000 | 815,776,000 |
Supplemental disclosures of cash activities | ||
Cash paid for interest expense | 166,898,000 | 110,144,000 |
Net cash (received from) paid for income taxes | 15,365,000 | (609,000) |
Claims made to third parties | ||
Claims made to third parties | $ (13,910,000) | $ (22,116,000) |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
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 interim financial statements of Nationstar have been prepared in accordance with accounting principles generally accepted in the United States (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 GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Nationstar's Annual Report on Form 10-K for the year ended December 31, 2015. The Company describes its significant accounting policies in Note 2 of the notes to consolidated financial statements in its Annual Report on Form 10-K for the year ended December 31, 2015. During the three month period ended March 31, 2016, there were no significant changes to those accounting policies. 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 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. Basis of Consolidation The consolidated financial statements include the accounts of Nationstar, its wholly-owned subsidiaries, and other entities in which the Company has a controlling financial interest, and those variable interest entities (VIEs) where Nationstar's wholly-owned subsidiaries are the primary beneficiaries. Nationstar applies the equity method of accounting to investments when the entity is 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 on consolidated entities have been eliminated. Business combinations are included in the consolidated financial statements from their respective dates of acquisition. 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. Reclassifications Certain prior-period amounts have been reclassified to conform to the current-period presentation. As shown in the table below, pursuant to the adoption of ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , the Company has reclassified unamortized debt issuance costs associated with its unsecured senior notes, advance facilities, warehouse facilities and other nonrecourse debt in its previously reported Consolidated Balance Sheet as of December 31, 2015 as follows: As presented As adjusted December 31, 2015 Reclassification December 31, 2015 Other assets $ 758,969 $ (37,137 ) $ 721,832 Unsecured senior notes 2,048,694 (22,940 ) 2,025,754 Advance facilities 1,646,123 (6,433 ) 1,639,690 Warehouse facilities 1,893,526 (3,206 ) 1,890,320 Other nonrecourse debt 6,670,598 (4,558 ) 6,666,040 Recent Accounting Guidance Adopted Effective January 1, 2016, the Company adopted Accounting Standards Update 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), which requires that a performance target that affects vesting that could be achieved after the requisite service period be treated as a performance condition. The adoption of ASU 2014-12 did not have a material impact on our financial condition, liquidity or results of operations. Effective January 1, 2016, the Company retrospectively adopted Accounting Standards Update 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which 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. The adoption of ASU 2015-03 was limited to balance sheet reclassification of unamortized debt issuance costs, and did not impact the Company's financial condition, liquidity or results of operations. See Reclassifications section in Note 1 for further details. Also, ASU 2015-15 Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements further expands ASU 2015-03 for presentation and disclosure in the financial statements. ASU 2015-15 amends Subtopic 835-30 to include that the SEC would not object to the deferral and presentation of debt issuance costs as an asset and subsequent amortization of the deferred costs over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The adoption of ASU 2015-15 did not have a material impact on our financial condition, liquidity or results of operations. Effective January 1, 2016, the Company prospectively adopted 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), which 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. The adoption of ASU 2015-05 did not have a material impact on our financial condition, liquidity or results of operations. Recent Accounting Guidance Not Yet Adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), 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 2014-09 was postponed resulting in effective commencement with Nationstar's quarter ending March 31, 2018. The Company is currently assessing the potential impact of ASU 2014-09 on the consolidated financial statements. 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. Accounting Standards Update No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) , primarily impacts accounting for equity investments and financial liabilities under the fair value option, as well as the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments will generally be measured at fair value, with subsequent changes in fair value recognized in net income. ASU 2016-01 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations. Accounting Standards Update No. 2016-02, Leases (ASU 2016-02), primarily impacts lessee accounting by requiring the recognition of a right-of-use asset and a corresponding lease liability on the balance sheet for long-term lease agreements. The lease liability will be equal to the present value of all reasonably certain lease payments. The right-of-use asset will be based on the liability, subject to adjustment for initial direct costs. Lease agreements that are 12 months or less are permitted to be excluded from the balance sheet. In general, leases will be amortized on a straight-line basis with the exception of finance lease agreements. ASU 2016-02 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s financial position or results of operations. Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08), clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. ASU 2016-08 also provides additional guidance about how to apply the control principle when services are provided and when goods or services are combined with other goods or services. The effective date of the standard for the Company will coincide with ASU 2014-09 during the first quarter 2018. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s financial position or results of operations. Accounting Standards Update No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, calculation of earnings per share, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods with early adoption permitted. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s financial position or results of operations. Accounting Standards Update No. 2016-10, Identifying Performance Obligations and Licensing (ASU 2016-10) amends the revenue guidance in ASU 2014-09 on identifying performance obligations and accounting for licenses of intellectual property. ASU 2016-10 changed the Financial Accounting Standards Board's previous proposals on renewals of right-to-use licenses and contractual restrictions. The effective date of the standard for the Company will coincide with ASU 2014-09 during the first quarter 2018. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s financial position or results of operations. |
Mortgage Servicing Rights (MSR)
Mortgage Servicing Rights (MSR) and Related Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights (MSRs) and Related Liabilities | Mortgage Servicing Rights (MSR) and Related Liabilities MSRs and Related Liabilities March 31, 2016 December 31, 2015 MSRs - fair value $ 3,088,123 $ 3,358,327 MSRs - LOCOM 7,961 8,646 Mortgage servicing rights $ 3,096,084 $ 3,366,973 Mortgage servicing liabilities - LOCOM $ 18,065 $ 25,260 Excess spread financing - fair value $ 1,161,270 $ 1,232,086 Mortgage servicing rights financing liability - fair value 81,729 68,696 MSR related liabilities (nonrecourse) $ 1,242,999 $ 1,300,782 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 rights related to 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 generally consist of lower delinquency single-family conforming residential forward mortgage agency loans. Credit sensitive portfolios generally 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 that are carried at fair value. March 31, 2016 December 31, 2015 UPB Fair Value UPB Fair Value Credit sensitive $ 214,623,983 $ 1,918,310 $ 224,334,415 $ 2,016,617 Interest sensitive 118,036,249 1,169,813 121,341,842 1,341,710 Total $ 332,660,232 $ 3,088,123 $ 345,676,257 $ 3,358,327 The activity of MSRs carried at fair value is as follows for the dates indicated: Three months ended March 31, MSRs - Fair Value 2016 2015 Fair value at the beginning of the period $ 3,358,327 $ 2,949,739 Additions: Servicing resulting from transfers of financial assets 39,663 44,232 Purchases of servicing assets 1,643 238,413 Dispositions: Dispositions (18,621 ) — Changes in fair value: Due to changes in valuation inputs or assumptions used in the valuation model (235,581 ) (109,684 ) Other changes in fair value (57,308 ) (100,502 ) Fair value at the end of the period $ 3,088,123 $ 3,022,198 Servicing resulting from transfers of financial assets comprises the fair value of the newly originated MSRs at the time the loan is funded and securitized. During the first quarter of 2016, Nationstar sold MSRs with an unpaid principal balance of $1.9 billion and was retained as the subservicer for the sold assets. The Company evaluated the sale accounting requirements related to this transaction given the continued involvement as the subservicer and concluded that the transaction qualifies for sales accounting. Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated: Credit Sensitive March 31, 2016 December 31, 2015 Discount rate 11.6 % 11.6 % Total prepayment speeds 16.4 % 16.5 % Expected weighted-average life 5.8 years 5.9 years Interest Sensitive March 31, 2016 December 31, 2015 Discount rate 9.2 % 9.1 % Total prepayment speeds 14.1 % 12.4 % Expected weighted-average life 5.6 years 6.1 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 March 31, 2016 and December 31, 2015 : Discount Rate Total Prepayment Speeds 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change March 31, 2016 Mortgage servicing rights $ (105,221 ) $ (206,145 ) $ (132,489 ) $ (253,694 ) December 31, 2015 Mortgage servicing rights $ (123,115 ) $ (237,779 ) $ (132,277 ) $ (253,028 ) 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 servicing rights. MSRs - Lower of Cost or Market (LOCOM) Nationstar owns the right to service certain reverse mortgages with an unpaid principal balance of $29.0 billion and $29.9 billion as of March 31, 2016 and December 31, 2015 , 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. At March 31, 2016 and December 31, 2015 , no impairment was identified. The activity of MSRs carried at amortized cost is as follows for the dates indicated: Three months ended March 31, 2016 2015 Assets Liabilities Assets Liabilities Activity of MSRs - LOCOM Balance at the beginning of the period $ 8,646 $ 25,260 $ 11,582 $ 65,382 Additions: Purchase/assumptions of servicing rights/obligations — — — — Deductions: Amortization/accretion (685 ) (7,195 ) (798 ) (6,783 ) Balance at end of the period $ 7,961 $ 18,065 $ 10,784 $ 58,599 Fair value at end of period $ 28,129 $ 2,416 $ 32,618 $ 55,579 For the three months ended March 31, 2016 and 2015 , the Company accreted $7.2 million and $6.8 million , respectively, of the mortgage servicing liability. 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 retains a 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, which is the primary driver of the recapture rate assumption. 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 March 31, 2016 Low 8.5% 4.1 8.5% 6.7% High 15.9% 7.2 14.1% 28.9% Weighted-average 11.9% 5.8 11.0% 18.3% December 31, 2015 Low 7.4% 4.2 8.5% 6.8% High 17.1% 7.8 14.1% 30.0% Weighted-average 11.6% 5.9 11.2% 17.7% 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 March 31, 2016 Excess spread financing $ 43,552 $ 90,412 $ 42,394 $ 88,488 December 31, 2015 Excess spread financing $ 41,806 $ 86,791 $ 36,530 $ 76,373 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. Consequently, Nationstar records a MSR 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 operations. The weighted average assumptions used in the valuation of mortgage servicing rights financing liability were as follows: March 31, 2016 December 31, 2015 Advance financing rates 3.1 % 3.0 % Annual advance recovery rates 20.5 % 20.9 % The following table provides a breakout of revenue associated with servicing assets and liabilities. Three months ended March 31, Service Fee Income (Loss) 2016 2015 Contractually specified servicing fees $ 281,088 $ 276,444 Incentive and modification income 23,801 22,865 Late fees 18,523 17,583 Other service-related income 30,294 33,120 Remittances to counterparties for contractual transfer of servicing assets (74,387 ) (74,657 ) Mark-to-market (255,008 ) (112,443 ) Amortization (48,662 ) (62,915 ) Total service fee income (loss) $ (24,351 ) $ 99,997 |
Advances, Net
Advances, Net | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Advances, Net | Advances, Net March 31, 2016 December 31, 2015 Agency $ 1,280,744 $ 1,396,176 Non-agency 789,855 826,907 Total advances, net $ 2,070,599 $ 2,223,083 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. As of March 31, 2016 and December 31, 2015 , Nationstar carried an allowance for uncollectible servicer advances of $37.7 million and $29.9 million , respectively. Advance balances are reflected net of these reserves. |
Reverse Mortgage Interests
Reverse Mortgage Interests | 3 Months Ended |
Mar. 31, 2016 | |
Reverse Mortgage Interests [Abstract] | |
Reverse Mortgage Interests | Reverse Mortgage Interests March 31, 2016 December 31, 2015 Participating Interests $ 5,752,917 $ 5,864,329 Other interests securitized, net of reserves of $ 27,626 and $32,780, respectively 682,797 682,137 Unsecuritized interests, net of reserves of $33,091 and $20,133, respectively 1,093,157 967,857 Reverse mortgage loans held for sale 55,215 — Total reverse mortgage interests $ 7,584,086 $ 7,514,323 Participating interests Participating interests consists of reverse mortgage interests which have been transferred to Ginnie Mae and subsequently securitized through the issuance of Home Equity Conversion Mortgage Backed Securities (HMBS). Other interests securitized 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 Unsecuritized interests consist primarily of the following: (1) $747.5 million related to repurchased Ginnie Mae HECMs; (2) $135.0 million related to HECM-related receivables; (3) $99.9 million related to claims accounts receivable; (4) $85.4 million related to funded borrower draws not yet securitized; (5) $21.4 million related to participating interests and advance receivable on an acquired HECM portfolio; (6) $27.3 million related to foreclosed assets; and (7) $9.7 million related to the HECM service fees receivable. 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. 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. Reverse mortgage loans held for sale During March 2016, Nationstar executed an option to purchase HECM loans related to a reverse mortgage loan trust, of which Nationstar was the master servicer and holder of clean-up call rights. The Company acquired reverse mortgage loans for $55.2 million with outstanding unpaid principal balance totaling $96.5 million , recorded at lower of cost or fair value. Nationstar plans to sell the loans acquired from the transaction and accordingly has classified as held for sale. Reserves for servicing losses Reserves for servicing losses are reflected through the Company's provision for losses and consist of (1) financial and (2) operational losses related to the servicing of HECM loans. Financial exposure is comprised of the cost of doing business related to servicing the HECM product and statutory items specific to investor types. Whereas operational losses are defined as un-reimbursable debenture interest curtailments imposed for missed servicing timelines. The Company assesses the reserve based on expected net realizable value of outstanding claims. |
Mortgage Loans Held for Sale an
Mortgage Loans Held for Sale and Investment | 3 Months Ended |
Mar. 31, 2016 | |
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 in the secondary market. Nationstar 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: March 31, 2016 December 31, 2015 Mortgage loans held for sale – unpaid principal balance $ 1,792,620 $ 1,373,607 Mark-to-market adjustment (1) 88,034 56,084 Total mortgage loans held for sale $ 1,880,654 $ 1,429,691 (1) The mark-to-market adjustment is reflected in net gain on mortgage loans held for sale on our consolidated statements of operations. Nationstar accrues interest income as earned and places loans on non-accrual status after any portion of principal or interest has been delinquent for more than 90 days. When a loan is placed 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: March 31, 2016 December 31, 2015 Mortgage Loans Held for Sale - Unpaid Principal Balance UPB Fair Value UPB Fair Value Non-accrual $ 31,253 $ 28,030 $ 31,390 $ 28,996 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 March 31, 2016 December 31, 2015 Foreclosure $ 21,809 $ 16,174 A reconciliation of the changes in mortgage loans held for sale for the dates indicated is presented in the following table: Three months ended March 31, 2016 2015 Mortgage loans held for sale – beginning balance $ 1,429,691 $ 1,277,931 Mortgage loans originated and purchased, net of fees 4,240,116 4,209,078 Repurchase of loans out of Ginnie Mae securitizations 222,712 393,550 Claims made to third parties (1) (13,910 ) (22,116 ) Proceeds on sale of and payments of mortgage loans held for sale (4,134,959 ) (3,976,647 ) Gain on sale of mortgage loans (2) 137,004 114,202 Mortgage loans held for sale – ending balance $ 1,880,654 $ 1,995,998 (1) This is comprised of claims made on certain government guaranteed mortgage loans upon foreclosure. (2) The gain on sale of mortgage loans is reflected in net gain on mortgage loans held for sale on our consolidated statements of operations. 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. For the three months ended March 31, 2016 and 2015, the Company repurchased a total of $222.7 million and $393.6 million loans, respectively, 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. Mortgage Loans Held for Investment, Net Mortgage loans held for investment, net as of the dates indicated include: March 31, 2016 December 31, 2015 Mortgage loans held for investment, net – unpaid principal balance $ 240,194 $ 250,033 Transfer discount: Accretable (14,398 ) (14,631 ) Non-accretable (55,683 ) (58,203 ) Allowance for loan losses (3,549 ) (3,549 ) Total mortgage loans held for investment, net $ 166,564 $ 173,650 The changes in accretable yield on loans transferred to mortgage loans held for investment, net were as follows: Three months ended March 31, 2016 Twelve months ended December 31, 2015 Accretable Yield Balance at the beginning of the period $ 14,631 $ 15,503 Accretion (668 ) (2,727 ) Reclassifications from nonaccretable discount 435 1,855 Balance at the end of the period $ 14,398 $ 14,631 Nationstar may periodically modify the terms of any outstanding mortgage loans held for investment, net for loans that are either in default or in imminent default. Modifications often involve reduced payments by borrowers, modification of the original terms of the mortgage loans, forgiveness of debt and/or modified servicing advances. As a result of the volume of modification agreements entered into, the estimated average outstanding life in this pool of mortgage loans has been extended. Nationstar records interest income on the transferred loans on a level-yield method. To maintain a level-yield on these transferred loans over the estimated extended life, Nationstar reclassified approximately $0.4 million of transfer discount to non-accretable yield during the three months ended March 31, 2016 and $1.9 million of transfer discount from non-accretable yield during the year ended December 31, 2015 . Further, 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 March 31, 2016 December 31, 2015 Foreclosure $ 40,532 $ 41,406 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following: March 31, 2016 December 31, 2015 Receivables from trusts, agencies and prior servicers, net (1) $ 186,268 $ 229,452 Accrued revenue 164,417 180,036 Loans subject to repurchase right from Ginnie Mae 179,881 117,163 Goodwill 71,141 71,141 Intangible assets 48,006 49,869 Deferred financing costs 5,915 5,713 Prepaid expenses 18,213 19,800 Receivables from affiliates, net 7,219 7,510 Real estate owned (REO), net 3,743 3,595 Other 48,896 37,553 Total other assets $ 733,699 $ 721,832 (1) Net of reserves totaling of $ 167.7 million and $ 98.8 million as of March 31, 2016 and December 31, 2015 , respectively. The increase in the reserves is primarily due to the movement of reserves from mortgage servicing rights attributable to liquidated loans that still have outstanding balances during the first quarter of 2016 in the amount of $64.7 million . Receivables from trusts, agencies and prior services, net is primarily comprised of prior servicer receivables and custodial receivables acquired in asset acquisitions. Accrued revenue 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 $ 179.9 million at March 31, 2016 and $117.2 million at December 31, 2015 . The increase in other is primarily due to $10.3 million that is expected to be received from counter parties on unsettled trades of securities at March 31, 2016. Acquisitions In January 2015, Xome Holdings LLC (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 $35.9 million in cash. Related to the acquisition, the Company recorded $20.3 million in goodwill and $19.1 million in intangible assets as well as $3.5 million of other net liabilities. 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 $12.0 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. Total consideration paid was $2.0 million . Related to the acquisitions, the Company tentatively recorded an additional $3.4 million in goodwill and $10.4 million in intangible assets as well as $0.2 million of other net assets. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
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 derivatives are $10.3 million and $3.9 million in collateral deposits on derivative instruments recorded in other assets and payables and accrued liabilities on the Company's balance sheets as of March 31, 2016 and December 31, 2015 , 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 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 operations. 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 operations. During the fourth quarter of 2015, the Company entered into a $100 million interest rate cap. The Company did not elect hedge accounting related to these agreements and they expired during the first quarter of 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) Three months ended March 31, 2016 Assets Mortgage loans held for sale Loan sale commitments 2016 $ 123,810 $ (562 ) $ (814 ) Derivative financial instruments IRLCs 2016 3,272,423 99,462 10,324 Forward MBS trades 2016 350,830 346 (5,777 ) LPCs 2016 615,172 8,944 5,072 Eurodollar futures 2016-2021 6,000 11 (49 ) Interest rate swaps 2017 11,481 405 (102 ) Liabilities Derivative financial instruments IRLCs 2016 4,289 37 (32 ) Forward MBS trades 2016 3,313,327 19,540 (15,794 ) LPCs 2016 68,933 233 1,221 Eurodollar futures 2016-2021 381,000 594 (518 ) Interest rate swaps 2017 11,481 431 110 Twelve months ended December 31, 2015 Assets Mortgage loans held for sale Loan sale commitments 2016 $ 175,570 $ 252 $ 256 Derivative financial instruments IRLCs 2016 2,767,927 89,138 1,236 Forward MBS trades 2016 1,665,894 6,123 5,839 LPCs 2016 387,891 3,872 1,873 Eurodollar futures 2016-2021 176,000 60 59 Interest rate swaps and caps 2016-2017 845,876 506 (359 ) Liabilities Derivative financial instruments IRLCs 2016 2,304 5 2 Forward MBS trades 2016 1,807,418 3,746 14,614 LPCs 2016 314,047 1,454 (1,406 ) Eurodollar futures 2016-2021 95,000 76 (69 ) Interest rate swaps and caps 2016-2017 12,543 542 (439 ) |
Indebtedness
Indebtedness | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness Notes Payable March 31, 2016 December 31, 2015 Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged Advance Facilities MBS advance financing facility LIBOR+2.50% March Servicing advance receivables $ 130,000 $ 71,661 $ 65,022 $ 82,208 $ 89,221 Nationstar agency advance financing facility LIBOR+2.00% January Servicing advance receivables 400,000 302,386 319,398 310,316 364,352 MBS advance financing facility (2012) LIBOR+5.00% May 31, 2016 Servicing advance receivables 50,000 44,594 53,380 50,000 69,942 Nationstar mortgage advance receivable LIBOR+ 2.00% June Servicing advance receivables 500,000 330,865 389,681 335,408 394,110 MBS servicer advance facility (2014) LIBOR+3.50% August Servicing advance receivables 125,000 121,893 191,473 105,657 185,392 Nationstar agency advance receivables trust LIBOR+2.00% October Servicing advance receivables 1,400,000 695,760 752,588 762,534 822,504 Advance facilities principal amount 1,567,159 1,771,542 1,646,123 1,925,521 Debt issuance costs (3,409 ) — (6,433 ) — Advance facilities, net of unamortized debt issuance costs $ 1,563,750 $ 1,771,542 $ 1,639,690 $ 1,925,521 March 31, 2016 December 31, 2015 Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged Warehouse Facilities $1.3 billion warehouse facility LIBOR+2.0% to 2.875% October Mortgage loans or MBS $ 1,300,000 $ 887,423 $ 941,098 $ 633,694 $ 677,775 $1.0 billion warehouse facility LIBOR+1.75% to 3.25% June Mortgage loans or MBS 1,000,000 725,773 755,697 544,951 621,526 $500 million warehouse facility LIBOR+1.75% to 2.75% September Mortgage loans or MBS 500,000 271,662 277,933 174,702 178,923 $500 million warehouse facility LIBOR+ 2.00% to 2.50% November Mortgage loans or MBS 500,000 204,082 224,325 257,479 274,497 $350 million warehouse facility LIBOR+2.20% to 4.50% April Mortgage loans or MBS 350,000 21,485 29,359 97,790 111,541 $200 million warehouse facility LIBOR+1.50% April Mortgage loans or MBS 200,000 67,381 69,202 8,531 9,052 $300 million warehouse facility LIBOR + 2.25% December Mortgage loans or MBS 300,000 32,723 38,536 23,014 27,769 $200 million warehouse facility LIBOR + 2.75% to 3.875% November Mortgage loans or MBS 200,000 152,832 191,839 45,106 50,083 $75 million warehouse facility (HCM) (1) LIBOR+ 2.25% to 2.875% October Mortgage loans or MBS 75,000 24,913 29,547 53,102 59,563 $100 million warehouse facility (HCM) LIBOR + 2.50% to 2.75% November Mortgage loans or MBS 100,000 28,392 29,613 55,157 60,581 Warehouse facilities principal amount 2,416,666 2,587,149 1,893,526 2,071,310 Debt issuance costs (2,171 ) — (3,206 ) — Warehouse facilities, net of unamortized debt issuance costs $ 2,414,495 $ 2,587,149 $ 1,890,320 $ 2,071,310 Mortgage loans, net $ 1,782,803 $ 1,867,637 $ 1,539,457 $ 1,681,352 Reverse mortgage interests, net $ 631,692 $ 719,512 $ 350,863 $ 389,958 (1) This facility is a sublimit of the $1.3 billion facility specific to Home Community Mortgage (HCM). Unsecured Senior Notes A summary of the balances of unsecured senior notes is presented below: March 31, 2016 December 31, 2015 $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 362,074 362,750 $400 million face value, 7.875% interest rate payable semi-annually, due October 2020 400,425 400,448 $600 million face value, 6.500% interest rate payable semi-annually, due July 2021 595,760 596,955 $300 million face value, 6.500% interest rate payable semi-annually, due June 2022 213,541 213,541 Unsecured senior notes principal amount, subtotal 2,046,800 2,048,694 Debt issuance costs (21,535 ) (22,940 ) Unsecured senior notes, net of unamortized debt issuance costs $ 2,025,265 $ 2,025,754 Nationstar repurchased $1,475 thousand in principal amount of outstanding notes during the first quarter of 2016 at a discount resulting in a gain of $77 thousand . The repurchase price included the principal amount of the note, plus accrued and unpaid interest. The indentures for the unsecured senior notes contain various covenants and restrictions that limit the ability to incur additional indebtedness, pay dividends, make certain investments, create liens, consolidate, merge or sell substantially all of their assets or enter into certain transactions with affiliates. The indentures contain certain events of default, including (subject, in some cases, to customary cure periods and materiality thresholds) defaults based on (i) the failure to make payments under the indenture when due, (ii) breach of covenants, (iii) cross-defaults to certain other indebtedness, (iv) certain bankruptcy or insolvency events, (v) material judgments and (vi) invalidity of material guarantees. The indentures for the unsecured senior notes provide that Nationstar may redeem all or a portion of the notes prior to certain fixed dates by paying a make-whole premium plus accrued and unpaid interest and additional interest, if any, to the redemption dates. In addition, Nationstar may redeem all or a portion of the unsecured 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 unsecured senior notes with the net proceeds of certain equity offerings at fixed redemption prices, plus accrued and unpaid interest and additional interest, if any, to the redemption dates, subject to compliance with certain conditions. The ratios included in the indentures for the unsecured senior notes are incurrence-based compared to the customary ratio covenants that are often found in credit agreements that require a company to maintain a certain ratio. As of March 31, 2016 , the expected maturities of Nationstar's unsecured senior notes based on contractual maturities are as follows: Year Amount 2016 $ — 2017 — 2018 475,000 2019 362,074 2020 400,425 Thereafter 809,301 Unsecured senior notes principal amount 2,046,800 Unamortized debt issuance costs (21,535 ) Unsecured senior notes, net of unamortized debt issuance costs $ 2,025,265 Other Nonrecourse Debt A summary of the balances of other nonrecourse debt is presented below: March 31, 2016 December 31, 2015 Participating interest financing $ 5,833,773 $ 5,947,407 2014-1 HECM securitization — 226,851 2015-1 HECM securitization 199,309 222,495 2015-2 HECM securitization 183,569 209,030 2016-1 HECM securitization 272,115 — Nonrecourse debt - legacy assets 62,188 64,815 Other nonrecourse debt principal amount 6,550,954 6,670,598 Unamortized debt issuance costs (5,758 ) (4,558 ) Other nonrecourse debt, net of unamortized debt issuance costs $ 6,545,196 $ 6,666,040 Participating Interest Financing Participating interest financing represents the obligation to Ginnie Mae related to the transfer of reverse mortgage interests and subsequent securitization through issuance of HMBS. Nationstar has accounted for these securitizations 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 interest rate is based on the underlying HMBS rate with a range of 0.7% to 7.0% . HECM Securitizations From time to time, Nationstar securitizes its interests in reverse mortgages. These transactions provide investors with the ability to invest in a pool of non-performing Federal Housing Administration (FHA) insured HECM loans secured by one to four-family residential properties and a pool of REO properties acquired through foreclosure in connection with HECM loans. The transactions provide Nationstar with access to liquidity for the 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. 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 January 2016, Nationstar executed an optional redemption of the notes within HECM Loan Trust 2014-1. The Company re-securitized the collateral from the transaction and achieved a lower cost of funds within HECM Loan Trust 2016-1. 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 notes have a final maturity date of May 2018. No portion of the notes were retained by the Company as of March 31, 2016 . During November 2015, Nationstar Mortgage LLC completed the securitization of approximately $217.3 million in Nationstar HECM Loan Trust 2015-2 Mortgage Backed Securities. The notes were issued under three separate classes, comprised of Class A Notes, Class M1 Notes and Class M2 Notes. This transaction was accounted for as a secured borrowing. The notes have a final maturity date of November 2025. No portion of the notes were retained by the Company as of March 31, 2016. During March 2016, Nationstar Mortgage LLC completed the securitization of approximately $281.7 million in Nationstar HECM Loan Trust 2016-1 Mortgage Backed Securities. The notes were issued as three separate classes, comprised of Class A Notes, Class M1 Notes and Class M2 Notes. This transaction was accounted for as a secured borrowing. The notes have a final maturity date of February 2026. No portion of the notes were retained by the Company as of March 31, 2016. 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 its consolidated bal ance sheet and recognizing the asset-backed certificates acquired by third parties as nonrecourse debt o f $62.2 million at March 31, 2016 and $64.8 million at December 31, 2015 . 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 $236.0 million and $242.4 million at March 31, 2016 and December 31, 2015 , 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 $72.3 million and $75.4 million at March 31, 2016 and December 31, 2015 , respectively. Financial Covenants The Company's borrowing arrangements and credit facilities contain various financial covenants which primarily relate to required tangible net worth amounts, liquidity reserves, leverage requirements, and profitability requirements. As a result of the decrease in interest rates during the three month period ended March 31, 2016, Nationstar recorded a charge to service related revenue for changes in fair value associated with the Company's MSRs recorded at fair value. As a result of the change, Nationstar was unable to meet the profitability requirement in one outstanding warehouse facility and one MBS facility. Nationstar received a waiver from these financial institutions on these profitability requirements for the period ended March 31, 2016. After giving effect to these waivers, the Company was in compliance with all required financial covenants as of March 31, 2016. Nationstar is required to maintain a minimum tangible net worth of at least $681.7 million as of each quarter-end related to its outstanding Master Repurchase Agreements on its outstanding repurchase facilities. At March 31, 2016 , Nationstar was in compliance with these minimum tangible net worth requirements. |
Payables and Accrued Liabilitie
Payables and Accrued Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
Payables and Accrued Liabilities | Payables and Accrued Liabilities Payables and accrued liabilities consist of the following: March 31, 2016 December 31, 2015 Payables to servicing and subservicing investors $ 447,996 $ 483,535 Loans subject to repurchase from Ginnie Mae 179,881 117,163 Accrued bonus and payroll 68,700 96,381 Payables to GSEs 81,132 87,748 Payable to insurance carriers and insurance cancellation reserves 71,174 69,936 Accrued interest 63,675 61,071 Repurchase reserves 26,015 26,404 Payables to securitization trusts 20,450 24,910 MSR purchases payable including advances 9,702 21,851 Other 170,675 307,388 Total payables and accrued liabilities $ 1,139,400 $ 1,296,387 Payables to Servicing and Subservicing Investors, Payables to GSEs, and Payables to Securitization Trusts 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. 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. 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. |
Securitizations and Financings
Securitizations and Financings | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Securitizations and Financings | Securitizations and Financings Variable Interest Entities (VIEs) In the normal course of business, Nationstar enters into various types of on- and off-balance sheet transactions with special purpose entities (SPEs) determined to be a VIE, 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 debt obligations supported by 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. All debt obligations issued from the VIEs is non-recourse to Nationstar. Nationstar evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Company is the primary beneficiary and should consolidate the entity based on the variable interests it held both at inception and when there is a change in circumstances that require a reconsideration. 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 (NMART), (iii) Nationstar Agency Advance Financing Trust (NAAFT), (iv) Nationstar Advance Agency Receivables Trust (NAART) should be consolidated as Nationstar is the primary beneficiary. Also, Nationstar consolidated three reverse mortgage SPEs which are (v) Nationstar HECM Loan Trust 2015-1, (vi) Nationstar HECM Loan Trust 2015-2, (vii) Nationstar HECM Loan Trust 2016-1 and it is the primary beneficiary. 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: March 31, 2016 December 31, 2015 Transfers Reverse Secured Borrowings Transfers Reverse Secured Borrowings Assets Restricted cash $ 107,176 $ 24,962 $ 94,361 $ 36,089 Reverse mortgage interests, net — 6,435,794 — 6,546,466 Advances 1,461,733 — 1,580,966 — Mortgage loans held for investment, net 167,222 — 172,810 — Derivative financial instruments — — 7 — Other assets 4,639 — 4,538 — Total assets $ 1,740,770 $ 6,460,756 $ 1,852,682 $ 6,582,555 Liabilities Advance facilities $ 1,329,011 $ — $ 1,408,258 $ — Payables and accrued liabilities 2,173 498 2,116 665 Nonrecourse debt–legacy assets 62,188 — 64,815 — 2014-1 HECM securitization — — — 226,851 2015-1 HECM securitization — 199,309 — 222,495 2015-2 HECM securitization — 183,569 — 209,030 2016-1 HECM securitization — 272,116 — — Participating interest financing — 5,833,773 — 5,947,407 Total liabilities $ 1,393,372 $ 6,489,265 $ 1,475,189 $ 6,606,448 Securitizations Treated as Sales When Nationstar sells mortgage loans in securitization transactions that are structured as sales, it may retain one or more bond classes and servicing rights in the securitization. Gains and losses on the assets transferred are recognized based on the carrying amount of the financial assets involved in the transfer, allocated between the assets transferred and the retained interests based on their relative fair value at the date of transfer, other than MSRs. Retained MSRs are recorded at their fair value on the transfer date. 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: March 31, 2016 December 31, 2015 Total collateral balances $ 3,020,839 $ 3,113,784 Total certificate balances 2,726,618 2,810,903 Nationstar has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of March 31, 2016 or December 31, 2015 , 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 March 31, 2016 December 31, 2015 Unconsolidated securitization trusts $ 677,879 $ 727,879 Three months ended March 31, Credit Losses 2016 2015 Unconsolidated securitization trusts $ 32,100 $ 57,461 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: Three months ended March 31, 2016 2015 Servicing Fees Loan Servicing Fees Loan Unconsolidated securitization trusts $ 6,009 $ — $ 6,373 $ — |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity On December 17, 2015, Nationstar announced that its Board of Director's authorized the repurchase of up to $150.0 million of the registrant's outstanding common stock through December 16, 2016. On February 9, 2016, Nationstar’s Board of Directors authorized a $100.0 million increase to the original repurchase authorization for an aggregate repurchase authorization of $250.0 million under the Company’s share repurchase program. As of March 31, 2016, a total of 6,026 thousand shares have been repurchased since the inception of the plan. On February 11, 2016, Nationstar announced a Board-authorized tender offer via a modified Dutch auction to repurchase up to $100.0 million of common stock. On March 15, 2016, Nationstar repurchased approximately 7 thousand shares at purchase price of $9.40 per share. During the first quarter of 2016, certain employees of Nationstar were granted 1,470 thousand restricted stock units (RSUs). The RSUs generally vest in installments of 33.3% , 33.3% and 33.4% respectively on each of the first three anniversaries of the awards, provided that (i) the participant remains continuously employed with us during that time or (ii) the participant's employment has terminated by reason of retirement. In addition, upon death, disability or a change in control of the Company, the unvested shares of an award will vest. The ultimate value of the award, however, depends on the market value of Nationstar common stock on the vesting date. The Company recognized $6.8 million of expense related to the share-based awards during the three months ended March 31, 2016 . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax benefit on continuing operations were as follows: Three months ended March 31, 2016 2015 Income tax benefit $ (82,265 ) $ (27,525 ) Effective tax rate 38.2 % 36.6 % For the three months ended March 31, 2016 and March 31, 2015, the effective tax rates differed from the statutory federal rate of 35.0% primarily due to the elimination of the book income of a less-than-wholly-owned subsidiary, state taxes and certain other permanent differences. The relative impact of these permanent differences on the effective tax rate is based upon forecasted pre-tax income or loss for the year. The elimination of the book income attributable to a less-than-wholly-owned subsidiary 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 March 31, 2016, the book income attributable to a less-than-wholly-owned subsidiary increases the effective tax rate and the income tax benefit. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
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, which is a Level 2 fair value measurement. See Note 5, Mortgage Loan Held for Sale and Investment for more information. Mortgage Loans Held for Investment, net (Level 3) – Nationstar determines the fair value of loans held for investment, net, using internally developed valuation models. These valuation models estimate the exit price Nationstar expects to receive in the loan’s principal market. Although Nationstar utilizes and gives priority to observable market inputs such as interest rates and market spreads within these models, Nationstar typically is required to utilize internal inputs, such as prepayment speeds and discount rates. These internal inputs require the use of judgment by Nationstar and can have a significant impact on the determination of the loan’s fair value. As these prices are derived from internally developed valuation models, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 5, Mortgage Loan Held for Sale and Investment for more information. 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. See Note 2, Mortgage Servicing Rights and Related Liabilities for more information. Advances, net (Level 3) - We value advances at their net realizable value, which generally approximates fair value, because advances have no stated maturity, are generally realized within a relatively short period of time and do not bear interest. See Note 3, Advances, Net for more information. 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. See Note 4, Reverse Mortgage Interests for more information. 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. See Note 7, Derivative Financial Instruments for more information. Advance Facilities and Warehouse Facilities (Level 2) – 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. See Note 8, Indebtedness for more information. 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. See Note 8, Indebtedness for more information. 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. See Note 8, Indebtedness for more information. 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 for similar financial instruments. The cash flow 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. As these prices are derived from a combination of internally developed valuation models and quoted market prices based on the value of the underlying MSRs, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 2, Mortgage Servicing Rights and Related Liabilities for more information. 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. The cash flow 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. 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. See Note 2, Mortgage Servicing Rights and Related Liabilities for more information. 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. See Note 2, Mortgage Servicing Rights and Related Liabilities, and Note 8, Indebtedness for more information. HECM Securitizations (Level 3) – Nationstar estimates fair value of the nonrecourse debt related to HECM securitization 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. See Note 8, Indebtedness for more information. 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: March 31, 2016 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,880,654 $ — $ 1,880,654 $ — Mortgage servicing rights (1) 3,088,123 — — 3,088,123 Derivative financial instruments: IRLCs 99,462 — 99,462 — Forward MBS trades 346 — 346 — LPCs 8,944 — 8,944 — Interest rate swaps and caps 405 — 405 — Eurodollar futures 11 — 11 — Total assets $ 5,077,945 $ — $ 1,989,822 $ 3,088,123 Liabilities Derivative financial instruments IRLCs $ 37 $ — $ 37 $ — Forward MBS trades 19,540 — 19,540 — LPCs 233 — 233 — Interest rate swaps and caps 431 — 431 — Eurodollar futures 594 — 594 — Mortgage servicing rights financing 81,729 — — 81,729 Excess spread financing 1,161,270 — — 1,161,270 Total liabilities $ 1,263,834 $ — $ 20,835 $ 1,242,999 December 31, 2015 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,429,691 $ — $ 1,429,691 $ — Mortgage servicing rights (1) 3,358,327 — — 3,358,327 Derivative financial instruments: IRLCs 89,138 — 89,138 — Forward MBS trades 6,123 — 6,123 — LPCs 3,872 — 3,872 — Interest rate swaps and caps 506 — 506 — Eurodollar futures 60 — 60 — Total assets $ 4,887,717 $ — $ 1,529,390 $ 3,358,327 Liabilities Derivative financial instruments IRLCs $ 5 $ — $ 5 $ — Forward MBS trades 3,746 — 3,746 — LPCs 1,454 — 1,454 — Interest rate swaps and caps 542 — 542 — Eurodollar futures 76 — 76 — Mortgage servicing rights financing 68,696 — — 68,696 Excess spread financing 1,232,086 — — 1,232,086 Total liabilities $ 1,306,605 $ — $ 5,823 $ 1,300,782 (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 Three months ended March 31, 2016 Mortgage servicing rights Excess spread financing Mortgage servicing rights financing Beginning balance $ 3,358,327 $ 1,232,086 $ 68,696 Transfers into Level 3 — — — Transfers out of Level 3 — — — Total gains or losses Included in earnings (292,889 ) (23,699 ) 13,033 Purchases, issuances, sales and settlements Purchases 1,643 — — Issuances 39,663 — — Sales — — — Settlements — (47,117 ) — Dispositions (18,621 ) — — Ending balance $ 3,088,123 $ 1,161,270 $ 81,729 Assets Liabilities Twelve months ended December 31, 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 (496,990 ) 25,631 19,266 Purchases, issuances, sales and settlements Purchases 729,984 — — Issuances 221,762 385,637 — Sales — — — Settlements — (210,217 ) — Dispositions (46,168 ) — — Ending balance $ 3,358,327 $ 1,232,086 $ 68,696 The table below presents a summary of the estimated carrying amount and fair value of Nationstar’s financial instruments. March 31, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 460,951 $ 460,951 $ — $ — Restricted cash 307,564 307,564 — — Advances, net 2,070,599 — — 2,070,599 Reverse mortgage interests, net 7,584,086 — — 7,624,696 Mortgage loans held for sale 1,880,654 — 1,880,654 — Mortgage loans held for investment, net 166,564 — — 170,584 Derivative financial instruments 109,168 — 109,168 — Financial liabilities Unsecured senior notes 2,025,265 1,918,283 — — Advance facilities 1,563,750 — 1,563,750 — Warehouse facilities 2,414,495 — 2,414,495 — Mortgage servicing rights financing liability 81,729 — — 81,729 Derivative financial instruments 20,835 — 20,835 — Excess spread financing 1,161,270 — — 1,161,270 Nonrecourse debt - legacy assets 62,188 — — 61,466 Participating interest financing 5,833,773 — 5,809,749 — 2015-1 HECM securitization 199,309 — — 208,201 2015-2 HECM securitization 183,569 — — 208,619 2016-1 HECM securitization 272,115 — — 290,125 December 31, 2015 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 613,241 $ 613,241 $ — $ — Restricted cash 332,105 332,105 — — Mortgage loans held for sale 1,429,691 — 1,429,691 — Mortgage loans held for investment, net 173,650 — — 174,147 Advances, net 2,223,083 — — 2,223,083 Reverse mortgage interests 7,514,323 — — 7,705,475 Derivative financial instruments 99,699 — 99,699 — Financial liabilities: Unsecured senior notes 2,048,694 1,911,777 — — Advance facilities 1,646,123 — 1,646,123 — Warehouse facilities 1,893,526 — 1,893,526 — Derivative financial instruments 5,823 — 5,823 — Excess spread financing 1,232,086 — — 1,232,086 Mortgage servicing rights financing liability 68,696 — — 68,696 Nonrecourse debt - legacy assets 64,815 — — 74,264 Participating interest financing 5,947,407 — 6,091,285 — 2014-1 HECM securitization 226,851 — — 298,048 2015-1 HECM securitization 222,495 — — 275,223 2015-2 HECM securitization 209,030 — — 249,507 |
Capital Requirements
Capital Requirements | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 , Nationstar was in compliance with its selling and servicing capital requirements. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
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 punitive class actions and other litigation. These actions and proceedings are generally based on alleged violations of consumer protection, securities, employment, contract, tort, common law fraud and other numerous laws, including, without limitation, the Equal Credit Opportunity Act, Fair Debt Collection Practices Act, Fair Credit Reporting Act, Real Estate Settlement Procedures Act, Servicemember’s Civil Relief Act, Telephone Consumer Protection Act, Truth in Lending Act, Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), unfair, deceptive or abusive acts or practices in violation of the Dodd-Frank Act, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the Home Mortgage Disclosure Act and the Bankruptcy Code, False Claims Act and Making Home Affordable (MHA) loan modification programs. Additionally, along with others in our industry, the Company is subject to repurchase and indemnification claims and may continue to receive claims in the future, including from its Legacy Portfolio regarding alleged breaches of representation and warranties relating to the sale of mortgage loans or the placement of mortgage loans into securitization trusts or the servicing of mortgage loans securitizations. The Company is also subject to legal actions or proceedings related to loss sharing and indemnification provisions of our various acquisitions. Certain of the actual legal actions and proceedings include claims for substantial compensatory, punitive and/or, statutory damages or claims for an indeterminate amount of damages. The outcome of such proceedings is difficult to predict or estimate until late in the proceedings, which may last several years. In particular, ongoing and other legal proceedings brought under federal or state consumer protection laws may result in a separate fine for each violation of the laws, which, particularly in the case of class action lawsuits, could result in damages substantially in excess of the amount earned from the underlying activities and that could have a material adverse effect on the Company's liquidity and financial position. The certification of any putative class action could substantially increase the Company's exposure to damages. Nationstar’s business is subject to extensive regulation, investigations and reviews by various federal, state and local regulatory and enforcement agencies, including without limitation, the CFPB, the Securities and Exchange Commission, the Department of Justice, the US Trustee Program, the multistate coalition of mortgage banking regulators and the State Attorneys General. As a result, Nationstar is subject to various legal proceedings, regulatory examinations, inquiries and requests for documentation in the ordinary course of our business. Nationstar has historically had a number of open investigations with various State Attorneys General and other regulators. Nationstar expects this trend will continue due to interest in mortgage banking generally and non-bank mortgage lenders and servicers specifically. Nationstar has seen a significant increase in these activities in recent periods and believes that violations of law will more frequently be met with enforcement actions, including the imposition of significant monetary and other sanctions. Like many other companies in the mortgage industry, Nationstar is currently the subject of various regulatory investigations, subpoenas, examinations and inquiries related to its residential loan servicing and origination practices, bankruptcy and collections practices, its financial reporting and other aspects of its businesses. Several large mortgage originators or servicers have been subject to similar matters, which have resulted in the payment of fines and penalties, changes to business practices and which have resulted in the entry of consent decrees or settlements. Nationstar continues to manage its response to each matter, but it is not possible to confidently or reliably predict the outcome of any of them, including predicting any possible losses resulting from any judgments or fines. Responding to these matters requires Nationstar to devote substantial legal and regulatory resources, resulting in higher costs and lower net cash flows. 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 $13.1 million and $7.3 million for the three months ended March 31, 2016 and 2015 , respectively, was included in general and administrative expenses on the consolidated statements of operations. 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 $17 million to $50 million in excess of the accrued liability (if any) related to those matters as of March 31, 2016 . This estimated range of possible loss is based upon currently available information and is subject to significant judgment, numerous assumptions and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary substantially from the current estimate. Those matters for which an estimate is not possible are not included within the estimated range. Therefore, this estimated range of possible loss represents what management believes to be an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company's maximum loss exposure. Based on current knowledge, and after consultation with counsel, management believes that the current legal accrued liability is appropriate, and the amount of any incremental liability arising from these matters is not expected to have a material adverse effect on the consolidated financial condition of the Company, although the outcome of such proceedings could be material to the Company’s operating results and cash flows for a particular period depending, on among other things, the level of the Company’s revenues or income for such period. However, in the event of significant developments on existing cases, it is possible that the ultimate resolution, if unfavorable, may be material to the Company’s consolidated financial statements. During the course of a routine regulatory examination during 2015, 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 $29.0 billion of UPB in reverse mortgage loans. As servicer for these reverse mortgage loans, among other things, the Company is obligated to make advances to the loan customers as required. At March 31, 2016 , the Company’s maximum unfunded advance obligation related to these MSRs was approximately $3.0 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 | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | Business Segment Reporting Nationstar’s segments are based upon Nationstar’s organizational structure, which focuses primarily on the services offered. The accounting policies of each reportable segment are the same as those of Nationstar except for 1) expenses for consolidated back-office operations and general overhead-type expenses such as executive administration and accounting, and 2) revenues generated on inter-segment services performed. Expenses are allocated to individual segments based on the estimated value of services performed, including estimated utilization of square footage and corporate personnel as well as the equity invested in each segment. Revenues generated or inter-segment services performed are valued based on similar services provided to external parties. To reconcile to Nationstar’s consolidated results, certain inter-segment revenues and expenses are eliminated in the “Eliminations” column in the following tables. The following tables are a presentation of financial information by segment for the periods indicated: Three months ended March 31, 2016 Servicing Originations Xome Total Operating Segments Corporate and Other Eliminations Consolidated Revenues: Service related $ (24,351 ) $ 15,267 $ 101,433 $ 92,349 $ 304 $ — $ 92,653 Net gain on mortgage loans held for sale 23,161 147,943 — 171,104 12 — 171,116 Total revenues (1,190 ) 163,210 101,433 263,453 316 — 263,769 Total expenses 184,356 124,838 89,994 399,188 22,289 — 421,477 Other income (expense): Interest income 84,633 14,561 3 99,197 3,646 — 102,843 Interest expense (106,841 ) (13,142 ) (25 ) (120,008 ) (40,768 ) — (160,776 ) Gain on repurchase of unsecured senior notes — — — — 77 — 77 Gain (loss) on interest rate swaps and caps (7 ) — — (7 ) 15 — 8 Total other income (expense) (22,215 ) 1,419 (22 ) (20,818 ) (37,030 ) — (57,848 ) Income (loss) before taxes $ (207,761 ) $ 39,791 $ 11,417 $ (156,553 ) $ (59,003 ) $ — $ (215,556 ) Depreciation and amortization $ 6,189 $ 2,632 $ 5,934 $ 14,755 $ 8,389 $ — $ 23,144 Total assets 12,760,129 4,303,766 306,647 17,370,542 (819,018 ) — 16,551,524 Three months ended March 31, 2015 Servicing Originations Xome Total Operating Segments Corporate and Other Eliminations Consolidated Revenues: Service related $ 99,997 $ 7,065 $ 107,786 $ 214,848 $ 497 $ (222 ) $ 215,123 Net gain on mortgage loans held for sale 14,013 151,281 — $ 165,294 1,700 — $ 166,994 Total revenues 114,010 158,346 107,786 380,142 2,197 (222 ) 382,117 Total expenses 182,397 100,249 79,388 362,034 21,809 — 383,843 Other income (expense): Interest income 24,639 15,267 — 39,906 3,646 222 43,774 Interest expense (57,974 ) (14,386 ) (35 ) (72,395 ) (43,253 ) — (115,648 ) Gain (loss) on interest rate swaps and caps (801 ) — — (801 ) 34 — (767 ) Total other income (expense) (34,136 ) 881 (35 ) (33,290 ) (39,573 ) 222 (72,641 ) Income (loss) before taxes $ (102,523 ) $ 58,978 $ 28,363 $ (15,182 ) $ (59,185 ) $ — $ (74,367 ) Depreciation and amortization $ 5,870 $ 3,700 $ 3,364 $ 12,934 $ 5,185 $ — $ 18,119 Total assets 9,420,014 1,965,961 236,013 $ 11,621,988 1,020,380 — $ 12,642,368 |
Guarantor Financial Statement I
Guarantor Financial Statement Information | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Guarantor Financial Statement Information | Guarantor Financial Statement Information As of March 31, 2016 , Nationstar Mortgage LLC and Nationstar Capital Corporation (1) (collectively, the Issuer), both wholly-owned subsidiaries of Nationstar, have issued $2.0 billion aggregate principal amount of unsecured senior notes which mature on various dates through June 1, 2022 . The unsecured senior notes are unconditionally guaranteed, jointly and severally, by all of Nationstar Mortgage LLC’s existing and future domestic subsidiaries other than its securitization and certain finance subsidiaries, certain other restricted subsidiaries, excluded restricted subsidiaries and subsidiaries that in the future Nationstar Mortgage LLC designates as unrestricted subsidiaries. All guarantor subsidiaries are 100% owned by Nationstar Mortgage LLC. Nationstar and its two direct wholly-owned subsidiaries are guarantors of the unsecured senior notes as well. Presented below are the condensed consolidating financial statements of Nationstar, Nationstar Mortgage LLC and the guarantor subsidiaries for the periods indicated. In the condensed consolidating financial statements presented below, Nationstar allocates income tax expense to Nationstar Mortgage LLC as if it were a separate tax payer entity pursuant to ASC 740, Income Taxes. (1) Nationstar Capital Corporation has no assets, operations or liabilities other than being a co-obligor of the unsecured senior notes. NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET MARCH 31, 2016 Nationstar Issuer Guarantor (Subsidiaries) Non-Guarantor (Subsidiaries) Eliminations Consolidated Assets Cash and cash equivalents $ — $ 426,150 $ 758 $ 34,043 $ — $ 460,951 Restricted cash — 172,453 3 135,108 — 307,564 Mortgage servicing rights — 3,096,084 — — — 3,096,084 Advances — 2,070,537 — 62 — 2,070,599 Reverse mortgage interests, net — 6,901,208 — 682,878 — 7,584,086 Mortgage loans held for sale — 1,816,028 — 64,626 — 1,880,654 Mortgage loans held for investment, net — (658 ) — 167,222 — 166,564 Property and equipment, net — 113,745 865 27,545 — 142,155 Derivative financial instruments — 105,527 — 3,641 — 109,168 Other assets (57,595 ) 603,109 311,701 1,431,086 (1,554,602 ) 733,699 Investment in subsidiaries 1,639,114 572,217 — — (2,211,331 ) — Total assets $ 1,581,519 $ 15,876,400 $ 313,327 $ 2,546,211 $ (3,765,933 ) $ 16,551,524 Liabilities and stockholders' equity Unsecured senior notes $ — $ 2,025,265 $ — $ — $ — $ 2,025,265 Advance facilities — 234,739 — 1,329,011 — 1,563,750 Warehouse facilities — 2,361,190 — 53,305 — 2,414,495 Payables and accrued liabilities — 1,077,109 2,878 59,413 — 1,139,400 MSR related liabilities - nonrecourse — 1,242,999 — — — 1,242,999 Mortgage servicing liabilities — 18,065 — — — 18,065 Derivative financial instruments — 20,835 — — — 20,835 Other nonrecourse debt — 5,828,015 — 717,181 — 6,545,196 Payables to affiliates — 1,429,069 4,731 120,802 (1,554,602 ) — Total liabilities — 14,237,286 7,609 2,279,712 (1,554,602 ) 14,970,005 Total equity 1,581,519 1,639,114 305,718 266,499 (2,211,331 ) 1,581,519 Total liabilities and equity $ 1,581,519 $ 15,876,400 $ 313,327 $ 2,546,211 $ (3,765,933 ) $ 16,551,524 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2016 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues Service related $ — $ (16,999 ) $ 7,072 $ 102,580 $ — $ 92,653 Net gain on mortgage loans held for sale — 162,566 — 8,550 — 171,116 Total revenues — 145,567 7,072 111,130 — 263,769 Expenses Salaries wages benefits — 144,238 1,162 51,962 — 197,362 General and administrative — 169,535 3,115 51,465 — 224,115 Total expenses — 313,773 4,277 103,427 — 421,477 Other income (expense) Interest income — 91,080 — 11,763 — 102,843 Interest expense — (141,576 ) — (19,200 ) — (160,776 ) Gain on repurchase of unsecured senior notes — 77 — — — 77 Gain (loss) on interest rate swaps and caps — 15 — (7 ) — 8 Gain (loss) from subsidiaries (132,389 ) 2,956 — — 129,433 — Total other income (expense) (132,389 ) (47,448 ) — (7,444 ) 129,433 (57,848 ) Income (loss) before taxes (132,389 ) (215,654 ) 2,795 259 129,433 (215,556 ) Income tax expense — (82,265 ) — — — (82,265 ) Net income (loss) (132,389 ) (133,389 ) 2,795 259 129,433 (133,291 ) Less: Net gain (loss) attributable to noncontrolling interests — (1,000 ) — 98 — (902 ) Net income (loss) excluding noncontrolling interests $ (132,389 ) $ (132,389 ) $ 2,795 $ 161 $ 129,433 $ (132,389 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2016 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating Activities Net income (loss) $ (132,389 ) $ (132,389 ) $ 2,795 $ 161 $ 129,433 $ (132,389 ) Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: Noncontrolling interest — (1,000 ) — 98 — (902 ) (Gain) loss from subsidiaries 132,389 (2,956 ) — — (129,433 ) — Share-based compensation — 4,857 20 1,966 — 6,843 Gain on repurchase of unsecured senior notes — (77 ) — — — (77 ) Excess tax deficiency from share-based compensation — 2,795 — — — 2,795 Gain on mortgage loans held for sale — (162,566 ) — (8,550 ) — (171,116 ) Mortgage loans originated and purchased, net of fees — (4,006,685 ) — (233,431 ) — (4,240,116 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (486,124 ) — — — (486,124 ) Proceeds on sale of and payments of mortgage loans held for sale — 4,071,502 — 305,740 — 4,377,242 (Gain) loss on derivatives including ineffectiveness — (15 ) — 7 — (8 ) Depreciation and amortization — 17,210 — 5,934 — 23,144 Amortization (accretion) of premiums (discounts) — 5,982 — 3,896 — 9,878 Fair value changes in excess spread financing — (23,699 ) — — — (23,699 ) Fair value changes and amortization/accretion of mortgage servicing rights — 286,378 — — — 286,378 Fair value change in mortgage servicing rights financing liability — 13,033 — — — 13,033 Changes in assets and liabilities: Advances — 152,502 — (18 ) — 152,484 Reverse mortgage interests — (14,257 ) — (741 ) — (14,998 ) Other assets 56,615 (125,563 ) (4,569 ) 99,628 — 26,111 Payables and accrued liabilities — (152,453 ) 1,951 (9,393 ) — (159,895 ) Net cash attributable to operating activities 56,615 (553,525 ) 197 165,297 — (331,416 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2016 (Continued) Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities Property and equipment additions, net of disposals — (9,768 ) 3 (3,339 ) — (13,104 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (1,530 ) — — — (1,530 ) Purchases of reverse mortgage servicing rights and interests — (55,215 ) — — — (55,215 ) Proceeds on sale of forward service rights — 18,361 — — — 18,361 Proceeds on sale of reverse mortgage interest — 450 — — — 450 Net cash attributable to investing activities — (47,702 ) 3 (3,339 ) — (51,038 ) Financing activities Transfers (to) from restricted cash, net — 26,273 — (1,732 ) — 24,541 Debt financing costs — (2,497 ) — — — (2,497 ) Increase (decrease) warehouse facilities — 577,848 — (54,955 ) — 522,893 Increase (decrease) advance facilities — 199 — (79,247 ) — (79,048 ) Proceeds from HECM securitizations — — — 281,680 — 281,680 Repayment of HECM securitizations — — — (285,985 ) — (285,985 ) Repayment of excess spread financing — (47,117 ) — — — (47,117 ) Increase in participating interest financing in reverse mortgage interests — (120,362 ) — — — (120,362 ) Repayment of nonrecourse debt–legacy assets — — — (3,056 ) — (3,056 ) Repurchase of unsecured senior notes — (1,475 ) — — — (1,475 ) Excess tax deficiency from share-based compensation — (2,795 ) — — — (2,795 ) Redemption of shares for stock vesting (1,564 ) — — — — (1,564 ) Repurchase of treasury shares (55,051 ) — — — — (55,051 ) Net cash attributable to financing activities (56,615 ) 430,074 — (143,295 ) — 230,164 Net increase (decrease) in cash — (171,153 ) 200 18,663 — (152,290 ) Cash and cash equivalents at beginning of period — 597,303 558 15,380 — 613,241 Cash and cash equivalents at end of period $ — $ 426,150 $ 758 $ 34,043 $ — $ 460,951 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2015 Nationstar Issuer Guarantor (Subsidiaries) Non-Guarantor (Subsidiaries) Eliminations Consolidated Assets Cash and cash equivalents $ — $ 597,303 $ 558 $ 15,380 $ — $ 613,241 Restricted cash — 198,726 3 133,376 — 332,105 Mortgage servicing rights — 3,366,973 — — — 3,366,973 Advances — 2,223,039 — 44 — 2,223,083 Reverse mortgage interests, net — 6,832,186 — 682,137 — 7,514,323 Mortgage loans held for sale — 1,304,219 — 125,472 — 1,429,691 Mortgage loans held for investment, net — 840 — 172,810 — 173,650 Property and equipment, net — 113,228 868 28,740 — 142,836 Derivative financial instruments — 96,181 — 3,518 — 99,699 Other assets 3,444 799,567 303,452 1,496,640 (1,881,271 ) 721,832 Investment in subsidiaries 1,768,319 509,475 — — (2,277,794 ) — Total assets $ 1,771,763 $ 16,041,737 $ 304,881 $ 2,658,117 $ (4,159,065 ) $ 16,617,433 Liabilities and stockholders' equity Unsecured senior notes $ — $ 2,025,754 $ — $ — $ — $ 2,025,754 Advance facilities — 231,432 — 1,408,258 — 1,639,690 Warehouse facilities — 1,782,060 — 108,260 — 1,890,320 Payables and accrued liabilities 4,386 1,222,268 927 68,806 — 1,296,387 MSR related liabilities - nonrecourse — 1,300,782 — — — 1,300,782 Mortgage servicing liabilities — 25,260 — — — 25,260 Derivative financial instruments — 5,823 — — — 5,823 Other nonrecourse debt — 5,942,849 — 723,191 — 6,666,040 Payables to affiliates — 1,737,190 1,031 143,050 (1,881,271 ) — Total liabilities 4,386 14,273,418 1,958 2,451,565 (1,881,271 ) 14,850,056 Total equity 1,767,377 1,768,319 302,923 206,552 (2,277,794 ) 1,767,377 Total liabilities and equity $ 1,771,763 $ 16,041,737 $ 304,881 $ 2,658,117 $ (4,159,065 ) $ 16,617,433 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues Service related $ — $ 102,179 $ (345 ) $ 113,511 $ (222 ) $ 215,123 Net gain on mortgage loans held for sale — 156,847 — 10,147 — 166,994 Total revenues — 259,026 (345 ) 123,658 (222 ) 382,117 Expenses Salaries wages benefits — 128,433 354 49,968 — 178,755 General and administrative — 164,532 50 40,506 — 205,088 Total expenses — 292,965 404 90,474 — 383,843 Other income (expense) Interest income — 36,120 — 7,432 222 43,774 Interest expense — (99,867 ) — (15,781 ) — (115,648 ) Gain (loss) on interest rate swaps and caps — 34 — (801 ) — (767 ) Gain (loss) from subsidiaries (48,315 ) 23,209 — — 25,106 — Total other income (expense) (48,315 ) (40,504 ) — (9,150 ) 25,328 (72,641 ) Income (loss) before taxes (48,315 ) (74,443 ) (749 ) 24,034 25,106 (74,367 ) Income tax benefit — (27,525 ) — — — (27,525 ) Net income (loss) (48,315 ) (46,918 ) (749 ) 24,034 25,106 (46,842 ) Less: Net gain attributable to noncontrolling interests — 1,397 — 76 — 1,473 Net income (loss) excluding noncontrolling interests $ (48,315 ) $ (48,315 ) $ (749 ) $ 23,958 $ 25,106 $ (48,315 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities Net income (loss) $ (48,315 ) $ (48,315 ) $ (749 ) $ 23,958 $ 25,106 $ (48,315 ) Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: Noncontrolling interest — 1,473 — — — 1,473 (Gain) loss from subsidiaries 48,315 (23,209 ) — — (25,106 ) — Share-based compensation — 5,524 — — — 5,524 Excess tax benefit from share based compensation — (1,095 ) — — — (1,095 ) Net gain on mortgage loans held for sale — (156,847 ) — (10,147 ) — (166,994 ) Mortgage loans originated and purchased, net of fees — (4,209,078 ) — — — (4,209,078 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (405,893 ) — — — (405,893 ) Proceeds on sale of and payments of mortgage loans held for sale and held for investment — 3,998,101 — 5,025 — 4,003,126 Gain (loss) on interest rate swaps and caps — (34 ) — 801 — 767 Depreciation and amortization — 14,758 — 3,361 — 18,119 Amortization (accretion) of premiums (discounts) — (6,759 ) — (303 ) — (7,062 ) Fair value changes in excess spread financing — 13,114 — — — 13,114 Fair value changes and amortization of mortgage servicing rights — 204,200 — — — 204,200 Fair value change in mortgage servicing rights financing liability — (4,386 ) — — — (4,386 ) Changes in assets and liabilities: Advances — 93,149 — 2,287 — 95,436 Reverse mortgage interests — (258,916 ) — 78,123 — (180,793 ) Other assets 5,442 379,162 1,199 (367,126 ) — 18,677 Payables and accrued liabilities — 7,233 14 (4,374 ) — 2,873 Net cash attributable to operating activities 5,442 (397,818 ) 464 (268,395 ) — (660,307 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2015 (Continued) Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities Property and equipment additions, net of disposals — (7,243 ) — (4,750 ) — (11,993 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (196,081 ) — — — (196,081 ) Acquisitions, net of cash acquired — — — (31,276 ) — (31,276 ) Net cash attributable to investing activities — (203,324 ) — (36,026 ) — (239,350 ) Financing activities Transfers to restricted cash, net — (24,925 ) — (48,087 ) — (73,012 ) Issuance of common stock, net of issuance cost — 497,758 — — — 497,758 Debt financing costs — (1,549 ) — — — (1,549 ) Increase (decrease) in advance facilities — (332,696 ) — 314,225 — (18,471 ) Increase in warehouse facilities — 899,756 — 5,094 — 904,850 Proceeds from HECM Securitization — — — 73,082 — 73,082 Repayment of HECM Securitization — — — (26,829 ) — (26,829 ) Issuance of excess spread financing — 52,957 — — — 52,957 Repayment of excess spread financing — (49,516 ) — — — (49,516 ) Increase in participating interest financing in reverse mortgage interests — 64,781 — — — 64,781 Repayment of nonrecourse debt – legacy assets — (135 ) — (3,138 ) — (3,273 ) Excess tax benefit from share-based compensation — 1,095 — — — 1,095 Redemption of shares for stock vesting (5,442 ) — — — — (5,442 ) Net cash attributable to financing activities (5,442 ) 1,107,526 — 314,347 — 1,416,431 Net increase in cash and cash equivalents — 506,384 464 9,926 — 516,774 Cash and cash equivalents at beginning of period — 279,770 288 18,944 — 299,002 Cash and cash equivalents at end of period $ — $ 786,154 $ 752 $ 28,870 $ — $ 815,776 |
Disclosures Related to Transact
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC | 3 Months Ended |
Mar. 31, 2016 | |
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 loan servicer for several securitized loan portfolios managed by Newcastle, which is managed by an affiliate of Fortress, for which Nationstar receives a monthly net servicing fee equal to 0.50% per annum on the unpaid principal balance of the portfolios, which was $0.6 billion and $0.7 billion , at March 31, 2016 and December 31, 2015 , respectively. For the three months ended March 31, 2016 and 2015 , Nationstar received servicing fees and other performance incentive fees of $0.8 million and $0.9 million , respectively. The change is primarily due to a decrease in volume for the base service fees. 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 base servicing fee per loan. Nationstar retains all ancillary revenues associated with servicing such MSRs and the remaining portion of the excess cash flow after receipt of the fixed base 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. Further, 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. As of March 31, 2016 and December 31, 2015, Nationstar had recorded $24.7 million and $30.7 million of delinquent service fees that were paid to New Residential in advance of the contractual due date, respectively. This amount will be ultimately recuperated from borrowers or netted against future remittances as related to service fee amounts. This amount is recorded as a reduction to outstanding excess spread financing in our financial statements. The fair value of the outstanding liability related to these agreements was $1.2 billion and $1.2 billion at March 31, 2016 and December 31, 2015 , respectively. Mortgage Servicing Rights Financing Liability 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. Consequently, Nationstar records a MSRs financing liability associated with this transaction. Special purpose subsidiaries of Nationstar previously issued approximately $2.1 billion of nonrecourse variable funding notes (the Notes) to finance the advances funded or acquired by Nationstar. The Notes were issued through two wholly-owned special purpose entities (the Issuers) pursuant to two servicer advance facilities. Pursuant to the Sale Agreement, New Residential purchased the outstanding equity of the wholly-owned special purpose entities of Nationstar that own the Issuers (the Depositors). On the sale date, New Residential and Nationstar amended and restated the transaction documents for each facility. Under these amended and restated transaction documents for each facility, Nationstar will continue to sell future service advances to New Residential, and New Residential will sell the new servicer advances to the Depositors. In December 2013, Nationstar received approximately $307.3 million in cash proceeds from the Sale Agreement. The fair value of the outstanding liability related to the Sale Agreement was $81.7 million and $68.7 million at March 31, 2016 and December 31, 2015 , respectively. Nationstar did not enter into any additional supplemental agreements with the Purchaser in 2016 and 2015. Other In May 2014, Nationstar entered into a servicing arrangement with New Residential whereby Nationstar will service residential mortgage loans that New Residential and/or its various affiliates and trust entities acquire. For the three months ended March 31, 2016 and 2015 , Nationstar recognized revenue of $1.0 million and $1.7 million related to these servicing arrangements, respectively. Nationstar also performed services as servicer or master servicer for New Residential for the termination of securitization trusts that New Residential collapsed pursuant to clean up call rights owned by New Residential. For the three months ended March 31, 2016 and 2015 , Nationstar earned revenue of $0.2 million and $0 for these services, respectively. In February 2013, Nationstar acquired certain fixed and adjustable rate reverse mortgage loans with an unpaid principal balance totaling $83.1 million for a purchase price of $50.2 million . In conjunction with this acquisition, Nationstar entered into an agreement with NIC Reverse Loan LLC, a subsidiary of New Residential, to sell a participating interest amounting to 70% of the acquired reverse mortgage loans. Both Nationstar and NIC Reverse Loan LLC are entitled to the related percentage interest of all amounts received with respect to the reverse mortgage loans, net of payments of servicing fees and the reimbursement to Nationstar of servicing advances. Nationstar receives a fixed payment per loan for servicing these reverse mortgage loans, which totaled $0.07 million and $0.08 million for the three months ended March 31, 2016 and 2015, respectively. Nationstar records these reverse mortgage loans as reverse mortgage interests on the Company's consolidated balance sheets. Springleaf Home Equity, Inc. In prior years, Nationstar entered into several agreements to act as the loan subservicer for Springleaf Home Equity, Inc., formerly known as American General Home Equity, Inc., Springleaf General Financial Services of Arkansas, Inc., formerly known as American General Financial Services of Arkansas, Inc. and MorEquity, Inc. (collectively, Springleaf) totaling $2.0 billion for which Nationstar received a monthly per loan subservicing fee and other performance incentive fees subject to the agreements with Springleaf. Springleaf Home Equity, Inc. was a subsidiary of Springleaf Holdings, Inc., which was primarily owned by certain private equity funds managed by an affiliate of Fortress. On November 15, 2015, Springleaf Holdings, Inc. completed its acquisition of OneMain Financial Holdings, LLC, and has changed its corporate name from Springleaf Holdings, Inc. to OneMain Holdings, Inc. For the three months ended March 31, 2016 and 2015 , Nationstar recognized revenue of $3.1 million and $0.2 million respectively, in additional servicing and other performance incentive fees related to these portfolios. |
Nature of Business and Basis 25
Nature of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated interim financial statements of Nationstar have been prepared in accordance with accounting principles generally accepted in the United States (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 GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Nationstar's Annual Report on Form 10-K for the year ended December 31, 2015. The Company describes its significant accounting policies in Note 2 of the notes to consolidated financial statements in its Annual Report on Form 10-K for the year ended December 31, 2015. During the three month period ended March 31, 2016, there were no significant changes to those accounting policies. 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 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. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of Nationstar, its wholly-owned subsidiaries, and other entities in which the Company has a controlling financial interest, and those variable interest entities (VIEs) where Nationstar's wholly-owned subsidiaries are the primary beneficiaries. Nationstar applies the equity method of accounting to investments when the entity is 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 on consolidated entities have been eliminated. Business combinations are included in the consolidated financial statements from their respective dates of acquisition. 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. |
Reclassifications | Reclassifications Certain prior-period amounts have been reclassified to conform to the current-period presentation. As shown in the table below, pursuant to the adoption of ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , the Company has reclassified unamortized debt issuance costs associated with its unsecured senior notes, advance facilities, warehouse facilities and other nonrecourse debt in its previously reported Consolidated Balance Sheet as of December 31, 2015 as follows: |
Recent Accounting Guidance Adopted | Recent Accounting Guidance Adopted Effective January 1, 2016, the Company adopted Accounting Standards Update 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), which requires that a performance target that affects vesting that could be achieved after the requisite service period be treated as a performance condition. The adoption of ASU 2014-12 did not have a material impact on our financial condition, liquidity or results of operations. Effective January 1, 2016, the Company retrospectively adopted Accounting Standards Update 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which 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. The adoption of ASU 2015-03 was limited to balance sheet reclassification of unamortized debt issuance costs, and did not impact the Company's financial condition, liquidity or results of operations. See Reclassifications section in Note 1 for further details. Also, ASU 2015-15 Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements further expands ASU 2015-03 for presentation and disclosure in the financial statements. ASU 2015-15 amends Subtopic 835-30 to include that the SEC would not object to the deferral and presentation of debt issuance costs as an asset and subsequent amortization of the deferred costs over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The adoption of ASU 2015-15 did not have a material impact on our financial condition, liquidity or results of operations. Effective January 1, 2016, the Company prospectively adopted 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), which 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. The adoption of ASU 2015-05 did not have a material impact on our financial condition, liquidity or results of operations. Recent Accounting Guidance Not Yet Adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), 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 2014-09 was postponed resulting in effective commencement with Nationstar's quarter ending March 31, 2018. The Company is currently assessing the potential impact of ASU 2014-09 on the consolidated financial statements. 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. Accounting Standards Update No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01) , primarily impacts accounting for equity investments and financial liabilities under the fair value option, as well as the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments will generally be measured at fair value, with subsequent changes in fair value recognized in net income. ASU 2016-01 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations. Accounting Standards Update No. 2016-02, Leases (ASU 2016-02), primarily impacts lessee accounting by requiring the recognition of a right-of-use asset and a corresponding lease liability on the balance sheet for long-term lease agreements. The lease liability will be equal to the present value of all reasonably certain lease payments. The right-of-use asset will be based on the liability, subject to adjustment for initial direct costs. Lease agreements that are 12 months or less are permitted to be excluded from the balance sheet. In general, leases will be amortized on a straight-line basis with the exception of finance lease agreements. ASU 2016-02 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s financial position or results of operations. Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08), clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. ASU 2016-08 also provides additional guidance about how to apply the control principle when services are provided and when goods or services are combined with other goods or services. The effective date of the standard for the Company will coincide with ASU 2014-09 during the first quarter 2018. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s financial position or results of operations. Accounting Standards Update No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, calculation of earnings per share, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods with early adoption permitted. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s financial position or results of operations. Accounting Standards Update No. 2016-10, Identifying Performance Obligations and Licensing (ASU 2016-10) amends the revenue guidance in ASU 2014-09 on identifying performance obligations and accounting for licenses of intellectual property. ASU 2016-10 changed the Financial Accounting Standards Board's previous proposals on renewals of right-to-use licenses and contractual restrictions. The effective date of the standard for the Company will coincide with ASU 2014-09 during the first quarter 2018. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s financial position or results of operations. |
Fair Value | 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, which is a Level 2 fair value measurement. See Note 5, Mortgage Loan Held for Sale and Investment for more information. Mortgage Loans Held for Investment, net (Level 3) – Nationstar determines the fair value of loans held for investment, net, using internally developed valuation models. These valuation models estimate the exit price Nationstar expects to receive in the loan’s principal market. Although Nationstar utilizes and gives priority to observable market inputs such as interest rates and market spreads within these models, Nationstar typically is required to utilize internal inputs, such as prepayment speeds and discount rates. These internal inputs require the use of judgment by Nationstar and can have a significant impact on the determination of the loan’s fair value. As these prices are derived from internally developed valuation models, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 5, Mortgage Loan Held for Sale and Investment for more information. 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. See Note 2, Mortgage Servicing Rights and Related Liabilities for more information. Advances, net (Level 3) - We value advances at their net realizable value, which generally approximates fair value, because advances have no stated maturity, are generally realized within a relatively short period of time and do not bear interest. See Note 3, Advances, Net for more information. 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. See Note 4, Reverse Mortgage Interests for more information. 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. See Note 7, Derivative Financial Instruments for more information. Advance Facilities and Warehouse Facilities (Level 2) – 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. See Note 8, Indebtedness for more information. 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. See Note 8, Indebtedness for more information. 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. See Note 8, Indebtedness for more information. 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 for similar financial instruments. The cash flow 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. As these prices are derived from a combination of internally developed valuation models and quoted market prices based on the value of the underlying MSRs, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 2, Mortgage Servicing Rights and Related Liabilities for more information. 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. The cash flow 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. 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. See Note 2, Mortgage Servicing Rights and Related Liabilities for more information. 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. See Note 2, Mortgage Servicing Rights and Related Liabilities, and Note 8, Indebtedness for more information. HECM Securitizations (Level 3) – Nationstar estimates fair value of the nonrecourse debt related to HECM securitization 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. See Note 8, Indebtedness for more information. |
Nature of Business and Basis 26
Nature of Business and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | As shown in the table below, pursuant to the adoption of ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , the Company has reclassified unamortized debt issuance costs associated with its unsecured senior notes, advance facilities, warehouse facilities and other nonrecourse debt in its previously reported Consolidated Balance Sheet as of December 31, 2015 as follows: As presented As adjusted December 31, 2015 Reclassification December 31, 2015 Other assets $ 758,969 $ (37,137 ) $ 721,832 Unsecured senior notes 2,048,694 (22,940 ) 2,025,754 Advance facilities 1,646,123 (6,433 ) 1,639,690 Warehouse facilities 1,893,526 (3,206 ) 1,890,320 Other nonrecourse debt 6,670,598 (4,558 ) 6,666,040 |
Mortgage Servicing Rights (MS27
Mortgage Servicing Rights (MSR) and Related Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Transfers and Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | MSRs and Related Liabilities March 31, 2016 December 31, 2015 MSRs - fair value $ 3,088,123 $ 3,358,327 MSRs - LOCOM 7,961 8,646 Mortgage servicing rights $ 3,096,084 $ 3,366,973 Mortgage servicing liabilities - LOCOM $ 18,065 $ 25,260 Excess spread financing - fair value $ 1,161,270 $ 1,232,086 Mortgage servicing rights financing liability - fair value 81,729 68,696 MSR related liabilities (nonrecourse) $ 1,242,999 $ 1,300,782 The activity of MSRs carried at fair value is as follows for the dates indicated: Three months ended March 31, MSRs - Fair Value 2016 2015 Fair value at the beginning of the period $ 3,358,327 $ 2,949,739 Additions: Servicing resulting from transfers of financial assets 39,663 44,232 Purchases of servicing assets 1,643 238,413 Dispositions: Dispositions (18,621 ) — Changes in fair value: Due to changes in valuation inputs or assumptions used in the valuation model (235,581 ) (109,684 ) Other changes in fair value (57,308 ) (100,502 ) Fair value at the end of the period $ 3,088,123 $ 3,022,198 The following table provides a breakdown of the total credit and interest sensitive unpaid principal balances (UPBs) for Nationstar's forward owned MSRs that are carried at fair value. March 31, 2016 December 31, 2015 UPB Fair Value UPB Fair Value Credit sensitive $ 214,623,983 $ 1,918,310 $ 224,334,415 $ 2,016,617 Interest sensitive 118,036,249 1,169,813 121,341,842 1,341,710 Total $ 332,660,232 $ 3,088,123 $ 345,676,257 $ 3,358,327 |
Schedule of Assumptions for Fair Value of Mortgage Service Rights | Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated: Credit Sensitive March 31, 2016 December 31, 2015 Discount rate 11.6 % 11.6 % Total prepayment speeds 16.4 % 16.5 % Expected weighted-average life 5.8 years 5.9 years Interest Sensitive March 31, 2016 December 31, 2015 Discount rate 9.2 % 9.1 % Total prepayment speeds 14.1 % 12.4 % Expected weighted-average life 5.6 years 6.1 years The range of various assumptions used in Nationstar's valuation of Excess Spread financing were as follows: Excess Spread Financing Prepayment Speeds Average Discount Recapture Rate March 31, 2016 Low 8.5% 4.1 8.5% 6.7% High 15.9% 7.2 14.1% 28.9% Weighted-average 11.9% 5.8 11.0% 18.3% December 31, 2015 Low 7.4% 4.2 8.5% 6.8% High 17.1% 7.8 14.1% 30.0% Weighted-average 11.6% 5.9 11.2% 17.7% The weighted average assumptions used in the valuation of mortgage servicing rights financing liability were as follows: March 31, 2016 December 31, 2015 Advance financing rates 3.1 % 3.0 % Annual advance recovery rates 20.5 % 20.9 % |
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 March 31, 2016 Excess spread financing $ 43,552 $ 90,412 $ 42,394 $ 88,488 December 31, 2015 Excess spread financing $ 41,806 $ 86,791 $ 36,530 $ 76,373 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 March 31, 2016 and December 31, 2015 : Discount Rate Total Prepayment Speeds 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change March 31, 2016 Mortgage servicing rights $ (105,221 ) $ (206,145 ) $ (132,489 ) $ (253,694 ) December 31, 2015 Mortgage servicing rights $ (123,115 ) $ (237,779 ) $ (132,277 ) $ (253,028 ) |
Activity of MSRs at Amortized Cost | The activity of MSRs carried at amortized cost is as follows for the dates indicated: Three months ended March 31, 2016 2015 Assets Liabilities Assets Liabilities Activity of MSRs - LOCOM Balance at the beginning of the period $ 8,646 $ 25,260 $ 11,582 $ 65,382 Additions: Purchase/assumptions of servicing rights/obligations — — — — Deductions: Amortization/accretion (685 ) (7,195 ) (798 ) (6,783 ) Balance at end of the period $ 7,961 $ 18,065 $ 10,784 $ 58,599 Fair value at end of period $ 28,129 $ 2,416 $ 32,618 $ 55,579 |
Schedule of Fees Earned in Exchange for Servicing Financial Assets | The following table provides a breakout of revenue associated with servicing assets and liabilities. Three months ended March 31, Service Fee Income (Loss) 2016 2015 Contractually specified servicing fees $ 281,088 $ 276,444 Incentive and modification income 23,801 22,865 Late fees 18,523 17,583 Other service-related income 30,294 33,120 Remittances to counterparties for contractual transfer of servicing assets (74,387 ) (74,657 ) Mark-to-market (255,008 ) (112,443 ) Amortization (48,662 ) (62,915 ) Total service fee income (loss) $ (24,351 ) $ 99,997 |
Advances, Net (Tables)
Advances, Net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | March 31, 2016 December 31, 2015 Agency $ 1,280,744 $ 1,396,176 Non-agency 789,855 826,907 Total advances, net $ 2,070,599 $ 2,223,083 |
Reverse Mortgage Interests (Tab
Reverse Mortgage Interests (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Reverse Mortgage Interests [Abstract] | |
Reverse Mortgage Interest | March 31, 2016 December 31, 2015 Participating Interests $ 5,752,917 $ 5,864,329 Other interests securitized, net of reserves of $ 27,626 and $32,780, respectively 682,797 682,137 Unsecuritized interests, net of reserves of $33,091 and $20,133, respectively 1,093,157 967,857 Reverse mortgage loans held for sale 55,215 — Total reverse mortgage interests $ 7,584,086 $ 7,514,323 |
Mortgage Loans Held for Sale 30
Mortgage Loans Held for Sale and Investment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Mortgage Loans Held for Sale and Investment [Abstract] | |
Schedule of Mortgage Loans Held-for-Sale | 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 March 31, 2016 December 31, 2015 Foreclosure $ 40,532 $ 41,406 Mortgage loans held for sale consist of the following for the dates indicated: March 31, 2016 December 31, 2015 Mortgage loans held for sale – unpaid principal balance $ 1,792,620 $ 1,373,607 Mark-to-market adjustment (1) 88,034 56,084 Total mortgage loans held for sale $ 1,880,654 $ 1,429,691 (1) The mark-to-market adjustment is reflected in net gain on mortgage loans held for sale on our consolidated statements of operations. Nationstar accrues interest income as earned and places loans on non-accrual status after any portion of principal or interest has been delinquent for more than 90 days. When a loan is placed 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: March 31, 2016 December 31, 2015 Mortgage Loans Held for Sale - Unpaid Principal Balance UPB Fair Value UPB Fair Value Non-accrual $ 31,253 $ 28,030 $ 31,390 $ 28,996 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 March 31, 2016 December 31, 2015 Foreclosure $ 21,809 $ 16,174 |
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: Three months ended March 31, 2016 2015 Mortgage loans held for sale – beginning balance $ 1,429,691 $ 1,277,931 Mortgage loans originated and purchased, net of fees 4,240,116 4,209,078 Repurchase of loans out of Ginnie Mae securitizations 222,712 393,550 Claims made to third parties (1) (13,910 ) (22,116 ) Proceeds on sale of and payments of mortgage loans held for sale (4,134,959 ) (3,976,647 ) Gain on sale of mortgage loans (2) 137,004 114,202 Mortgage loans held for sale – ending balance $ 1,880,654 $ 1,995,998 (1) This is comprised of claims made on certain government guaranteed mortgage loans upon foreclosure. (2) The gain on sale of mortgage loans is reflected in net gain on mortgage loans held for sale on our consolidated statements of operations. |
Schedule of Loans Held for Investment | Mortgage loans held for investment, net as of the dates indicated include: March 31, 2016 December 31, 2015 Mortgage loans held for investment, net – unpaid principal balance $ 240,194 $ 250,033 Transfer discount: Accretable (14,398 ) (14,631 ) Non-accretable (55,683 ) (58,203 ) Allowance for loan losses (3,549 ) (3,549 ) Total mortgage loans held for investment, net $ 166,564 $ 173,650 |
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: Three months ended March 31, 2016 Twelve months ended December 31, 2015 Accretable Yield Balance at the beginning of the period $ 14,631 $ 15,503 Accretion (668 ) (2,727 ) Reclassifications from nonaccretable discount 435 1,855 Balance at the end of the period $ 14,398 $ 14,631 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: March 31, 2016 December 31, 2015 Receivables from trusts, agencies and prior servicers, net (1) $ 186,268 $ 229,452 Accrued revenue 164,417 180,036 Loans subject to repurchase right from Ginnie Mae 179,881 117,163 Goodwill 71,141 71,141 Intangible assets 48,006 49,869 Deferred financing costs 5,915 5,713 Prepaid expenses 18,213 19,800 Receivables from affiliates, net 7,219 7,510 Real estate owned (REO), net 3,743 3,595 Other 48,896 37,553 Total other assets $ 733,699 $ 721,832 |
Derivative Financial Instrume32
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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) Three months ended March 31, 2016 Assets Mortgage loans held for sale Loan sale commitments 2016 $ 123,810 $ (562 ) $ (814 ) Derivative financial instruments IRLCs 2016 3,272,423 99,462 10,324 Forward MBS trades 2016 350,830 346 (5,777 ) LPCs 2016 615,172 8,944 5,072 Eurodollar futures 2016-2021 6,000 11 (49 ) Interest rate swaps 2017 11,481 405 (102 ) Liabilities Derivative financial instruments IRLCs 2016 4,289 37 (32 ) Forward MBS trades 2016 3,313,327 19,540 (15,794 ) LPCs 2016 68,933 233 1,221 Eurodollar futures 2016-2021 381,000 594 (518 ) Interest rate swaps 2017 11,481 431 110 Twelve months ended December 31, 2015 Assets Mortgage loans held for sale Loan sale commitments 2016 $ 175,570 $ 252 $ 256 Derivative financial instruments IRLCs 2016 2,767,927 89,138 1,236 Forward MBS trades 2016 1,665,894 6,123 5,839 LPCs 2016 387,891 3,872 1,873 Eurodollar futures 2016-2021 176,000 60 59 Interest rate swaps and caps 2016-2017 845,876 506 (359 ) Liabilities Derivative financial instruments IRLCs 2016 2,304 5 2 Forward MBS trades 2016 1,807,418 3,746 14,614 LPCs 2016 314,047 1,454 (1,406 ) Eurodollar futures 2016-2021 95,000 76 (69 ) Interest rate swaps and caps 2016-2017 12,543 542 (439 ) |
Indebtedness (Tables)
Indebtedness (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes Payable March 31, 2016 December 31, 2015 Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged Advance Facilities MBS advance financing facility LIBOR+2.50% March Servicing advance receivables $ 130,000 $ 71,661 $ 65,022 $ 82,208 $ 89,221 Nationstar agency advance financing facility LIBOR+2.00% January Servicing advance receivables 400,000 302,386 319,398 310,316 364,352 MBS advance financing facility (2012) LIBOR+5.00% May 31, 2016 Servicing advance receivables 50,000 44,594 53,380 50,000 69,942 Nationstar mortgage advance receivable LIBOR+ 2.00% June Servicing advance receivables 500,000 330,865 389,681 335,408 394,110 MBS servicer advance facility (2014) LIBOR+3.50% August Servicing advance receivables 125,000 121,893 191,473 105,657 185,392 Nationstar agency advance receivables trust LIBOR+2.00% October Servicing advance receivables 1,400,000 695,760 752,588 762,534 822,504 Advance facilities principal amount 1,567,159 1,771,542 1,646,123 1,925,521 Debt issuance costs (3,409 ) — (6,433 ) — Advance facilities, net of unamortized debt issuance costs $ 1,563,750 $ 1,771,542 $ 1,639,690 $ 1,925,521 March 31, 2016 December 31, 2015 Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged Warehouse Facilities $1.3 billion warehouse facility LIBOR+2.0% to 2.875% October Mortgage loans or MBS $ 1,300,000 $ 887,423 $ 941,098 $ 633,694 $ 677,775 $1.0 billion warehouse facility LIBOR+1.75% to 3.25% June Mortgage loans or MBS 1,000,000 725,773 755,697 544,951 621,526 $500 million warehouse facility LIBOR+1.75% to 2.75% September Mortgage loans or MBS 500,000 271,662 277,933 174,702 178,923 $500 million warehouse facility LIBOR+ 2.00% to 2.50% November Mortgage loans or MBS 500,000 204,082 224,325 257,479 274,497 $350 million warehouse facility LIBOR+2.20% to 4.50% April Mortgage loans or MBS 350,000 21,485 29,359 97,790 111,541 $200 million warehouse facility LIBOR+1.50% April Mortgage loans or MBS 200,000 67,381 69,202 8,531 9,052 $300 million warehouse facility LIBOR + 2.25% December Mortgage loans or MBS 300,000 32,723 38,536 23,014 27,769 $200 million warehouse facility LIBOR + 2.75% to 3.875% November Mortgage loans or MBS 200,000 152,832 191,839 45,106 50,083 $75 million warehouse facility (HCM) (1) LIBOR+ 2.25% to 2.875% October Mortgage loans or MBS 75,000 24,913 29,547 53,102 59,563 $100 million warehouse facility (HCM) LIBOR + 2.50% to 2.75% November Mortgage loans or MBS 100,000 28,392 29,613 55,157 60,581 Warehouse facilities principal amount 2,416,666 2,587,149 1,893,526 2,071,310 Debt issuance costs (2,171 ) — (3,206 ) — Warehouse facilities, net of unamortized debt issuance costs $ 2,414,495 $ 2,587,149 $ 1,890,320 $ 2,071,310 Mortgage loans, net $ 1,782,803 $ 1,867,637 $ 1,539,457 $ 1,681,352 Reverse mortgage interests, net $ 631,692 $ 719,512 $ 350,863 $ 389,958 (1) This facility is a sublimit of the $1.3 billion facility specific to Home Community Mortgage (HCM). A summary of the balances of other nonrecourse debt is presented below: March 31, 2016 December 31, 2015 Participating interest financing $ 5,833,773 $ 5,947,407 2014-1 HECM securitization — 226,851 2015-1 HECM securitization 199,309 222,495 2015-2 HECM securitization 183,569 209,030 2016-1 HECM securitization 272,115 — Nonrecourse debt - legacy assets 62,188 64,815 Other nonrecourse debt principal amount 6,550,954 6,670,598 Unamortized debt issuance costs (5,758 ) (4,558 ) Other nonrecourse debt, net of unamortized debt issuance costs $ 6,545,196 $ 6,666,040 |
Schedule of Unsecured Senior Notes | A summary of the balances of unsecured senior notes is presented below: March 31, 2016 December 31, 2015 $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 362,074 362,750 $400 million face value, 7.875% interest rate payable semi-annually, due October 2020 400,425 400,448 $600 million face value, 6.500% interest rate payable semi-annually, due July 2021 595,760 596,955 $300 million face value, 6.500% interest rate payable semi-annually, due June 2022 213,541 213,541 Unsecured senior notes principal amount, subtotal 2,046,800 2,048,694 Debt issuance costs (21,535 ) (22,940 ) Unsecured senior notes, net of unamortized debt issuance costs $ 2,025,265 $ 2,025,754 |
Schedule of Maturities of Long-term Debt | As of March 31, 2016 , the expected maturities of Nationstar's unsecured senior notes based on contractual maturities are as follows: Year Amount 2016 $ — 2017 — 2018 475,000 2019 362,074 2020 400,425 Thereafter 809,301 Unsecured senior notes principal amount 2,046,800 Unamortized debt issuance costs (21,535 ) Unsecured senior notes, net of unamortized debt issuance costs $ 2,025,265 |
Payables and Accrued Liabilit34
Payables and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Payables and Accrued Liabilities | Payables and accrued liabilities consist of the following: March 31, 2016 December 31, 2015 Payables to servicing and subservicing investors $ 447,996 $ 483,535 Loans subject to repurchase from Ginnie Mae 179,881 117,163 Accrued bonus and payroll 68,700 96,381 Payables to GSEs 81,132 87,748 Payable to insurance carriers and insurance cancellation reserves 71,174 69,936 Accrued interest 63,675 61,071 Repurchase reserves 26,015 26,404 Payables to securitization trusts 20,450 24,910 MSR purchases payable including advances 9,702 21,851 Other 170,675 307,388 Total payables and accrued liabilities $ 1,139,400 $ 1,296,387 |
Securitizations and Financings
Securitizations and Financings (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Assets and Liabilities of VIEs Included in Financial Statements | A summary of mortgage loans transferred by Nationstar to unconsolidated securitization trusts that are 60 days or more past due and the credit losses incurred in the unconsolidated securitization trusts are presented below: Principal Amount of Loans 60 Days or More Past Due March 31, 2016 December 31, 2015 Unconsolidated securitization trusts $ 677,879 $ 727,879 Three months ended March 31, Credit Losses 2016 2015 Unconsolidated securitization trusts $ 32,100 $ 57,461 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: Three months ended March 31, 2016 2015 Servicing Fees Loan Servicing Fees Loan Unconsolidated securitization trusts $ 6,009 $ — $ 6,373 $ — 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: March 31, 2016 December 31, 2015 Total collateral balances $ 3,020,839 $ 3,113,784 Total certificate balances 2,726,618 2,810,903 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: March 31, 2016 December 31, 2015 Transfers Reverse Secured Borrowings Transfers Reverse Secured Borrowings Assets Restricted cash $ 107,176 $ 24,962 $ 94,361 $ 36,089 Reverse mortgage interests, net — 6,435,794 — 6,546,466 Advances 1,461,733 — 1,580,966 — Mortgage loans held for investment, net 167,222 — 172,810 — Derivative financial instruments — — 7 — Other assets 4,639 — 4,538 — Total assets $ 1,740,770 $ 6,460,756 $ 1,852,682 $ 6,582,555 Liabilities Advance facilities $ 1,329,011 $ — $ 1,408,258 $ — Payables and accrued liabilities 2,173 498 2,116 665 Nonrecourse debt–legacy assets 62,188 — 64,815 — 2014-1 HECM securitization — — — 226,851 2015-1 HECM securitization — 199,309 — 222,495 2015-2 HECM securitization — 183,569 — 209,030 2016-1 HECM securitization — 272,116 — — Participating interest financing — 5,833,773 — 5,947,407 Total liabilities $ 1,393,372 $ 6,489,265 $ 1,475,189 $ 6,606,448 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax benefit on continuing operations were as follows: Three months ended March 31, 2016 2015 Income tax benefit $ (82,265 ) $ (27,525 ) Effective tax rate 38.2 % 36.6 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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: March 31, 2016 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,880,654 $ — $ 1,880,654 $ — Mortgage servicing rights (1) 3,088,123 — — 3,088,123 Derivative financial instruments: IRLCs 99,462 — 99,462 — Forward MBS trades 346 — 346 — LPCs 8,944 — 8,944 — Interest rate swaps and caps 405 — 405 — Eurodollar futures 11 — 11 — Total assets $ 5,077,945 $ — $ 1,989,822 $ 3,088,123 Liabilities Derivative financial instruments IRLCs $ 37 $ — $ 37 $ — Forward MBS trades 19,540 — 19,540 — LPCs 233 — 233 — Interest rate swaps and caps 431 — 431 — Eurodollar futures 594 — 594 — Mortgage servicing rights financing 81,729 — — 81,729 Excess spread financing 1,161,270 — — 1,161,270 Total liabilities $ 1,263,834 $ — $ 20,835 $ 1,242,999 December 31, 2015 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,429,691 $ — $ 1,429,691 $ — Mortgage servicing rights (1) 3,358,327 — — 3,358,327 Derivative financial instruments: IRLCs 89,138 — 89,138 — Forward MBS trades 6,123 — 6,123 — LPCs 3,872 — 3,872 — Interest rate swaps and caps 506 — 506 — Eurodollar futures 60 — 60 — Total assets $ 4,887,717 $ — $ 1,529,390 $ 3,358,327 Liabilities Derivative financial instruments IRLCs $ 5 $ — $ 5 $ — Forward MBS trades 3,746 — 3,746 — LPCs 1,454 — 1,454 — Interest rate swaps and caps 542 — 542 — Eurodollar futures 76 — 76 — Mortgage servicing rights financing 68,696 — — 68,696 Excess spread financing 1,232,086 — — 1,232,086 Total liabilities $ 1,306,605 $ — $ 5,823 $ 1,300,782 (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 Three months ended March 31, 2016 Mortgage servicing rights Excess spread financing Mortgage servicing rights financing Beginning balance $ 3,358,327 $ 1,232,086 $ 68,696 Transfers into Level 3 — — — Transfers out of Level 3 — — — Total gains or losses Included in earnings (292,889 ) (23,699 ) 13,033 Purchases, issuances, sales and settlements Purchases 1,643 — — Issuances 39,663 — — Sales — — — Settlements — (47,117 ) — Dispositions (18,621 ) — — Ending balance $ 3,088,123 $ 1,161,270 $ 81,729 Assets Liabilities Twelve months ended December 31, 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 (496,990 ) 25,631 19,266 Purchases, issuances, sales and settlements Purchases 729,984 — — Issuances 221,762 385,637 — Sales — — — Settlements — (210,217 ) — Dispositions (46,168 ) — — Ending balance $ 3,358,327 $ 1,232,086 $ 68,696 |
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. March 31, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 460,951 $ 460,951 $ — $ — Restricted cash 307,564 307,564 — — Advances, net 2,070,599 — — 2,070,599 Reverse mortgage interests, net 7,584,086 — — 7,624,696 Mortgage loans held for sale 1,880,654 — 1,880,654 — Mortgage loans held for investment, net 166,564 — — 170,584 Derivative financial instruments 109,168 — 109,168 — Financial liabilities Unsecured senior notes 2,025,265 1,918,283 — — Advance facilities 1,563,750 — 1,563,750 — Warehouse facilities 2,414,495 — 2,414,495 — Mortgage servicing rights financing liability 81,729 — — 81,729 Derivative financial instruments 20,835 — 20,835 — Excess spread financing 1,161,270 — — 1,161,270 Nonrecourse debt - legacy assets 62,188 — — 61,466 Participating interest financing 5,833,773 — 5,809,749 — 2015-1 HECM securitization 199,309 — — 208,201 2015-2 HECM securitization 183,569 — — 208,619 2016-1 HECM securitization 272,115 — — 290,125 December 31, 2015 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 613,241 $ 613,241 $ — $ — Restricted cash 332,105 332,105 — — Mortgage loans held for sale 1,429,691 — 1,429,691 — Mortgage loans held for investment, net 173,650 — — 174,147 Advances, net 2,223,083 — — 2,223,083 Reverse mortgage interests 7,514,323 — — 7,705,475 Derivative financial instruments 99,699 — 99,699 — Financial liabilities: Unsecured senior notes 2,048,694 1,911,777 — — Advance facilities 1,646,123 — 1,646,123 — Warehouse facilities 1,893,526 — 1,893,526 — Derivative financial instruments 5,823 — 5,823 — Excess spread financing 1,232,086 — — 1,232,086 Mortgage servicing rights financing liability 68,696 — — 68,696 Nonrecourse debt - legacy assets 64,815 — — 74,264 Participating interest financing 5,947,407 — 6,091,285 — 2014-1 HECM securitization 226,851 — — 298,048 2015-1 HECM securitization 222,495 — — 275,223 2015-2 HECM securitization 209,030 — — 249,507 |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables are a presentation of financial information by segment for the periods indicated: Three months ended March 31, 2016 Servicing Originations Xome Total Operating Segments Corporate and Other Eliminations Consolidated Revenues: Service related $ (24,351 ) $ 15,267 $ 101,433 $ 92,349 $ 304 $ — $ 92,653 Net gain on mortgage loans held for sale 23,161 147,943 — 171,104 12 — 171,116 Total revenues (1,190 ) 163,210 101,433 263,453 316 — 263,769 Total expenses 184,356 124,838 89,994 399,188 22,289 — 421,477 Other income (expense): Interest income 84,633 14,561 3 99,197 3,646 — 102,843 Interest expense (106,841 ) (13,142 ) (25 ) (120,008 ) (40,768 ) — (160,776 ) Gain on repurchase of unsecured senior notes — — — — 77 — 77 Gain (loss) on interest rate swaps and caps (7 ) — — (7 ) 15 — 8 Total other income (expense) (22,215 ) 1,419 (22 ) (20,818 ) (37,030 ) — (57,848 ) Income (loss) before taxes $ (207,761 ) $ 39,791 $ 11,417 $ (156,553 ) $ (59,003 ) $ — $ (215,556 ) Depreciation and amortization $ 6,189 $ 2,632 $ 5,934 $ 14,755 $ 8,389 $ — $ 23,144 Total assets 12,760,129 4,303,766 306,647 17,370,542 (819,018 ) — 16,551,524 Three months ended March 31, 2015 Servicing Originations Xome Total Operating Segments Corporate and Other Eliminations Consolidated Revenues: Service related $ 99,997 $ 7,065 $ 107,786 $ 214,848 $ 497 $ (222 ) $ 215,123 Net gain on mortgage loans held for sale 14,013 151,281 — $ 165,294 1,700 — $ 166,994 Total revenues 114,010 158,346 107,786 380,142 2,197 (222 ) 382,117 Total expenses 182,397 100,249 79,388 362,034 21,809 — 383,843 Other income (expense): Interest income 24,639 15,267 — 39,906 3,646 222 43,774 Interest expense (57,974 ) (14,386 ) (35 ) (72,395 ) (43,253 ) — (115,648 ) Gain (loss) on interest rate swaps and caps (801 ) — — (801 ) 34 — (767 ) Total other income (expense) (34,136 ) 881 (35 ) (33,290 ) (39,573 ) 222 (72,641 ) Income (loss) before taxes $ (102,523 ) $ 58,978 $ 28,363 $ (15,182 ) $ (59,185 ) $ — $ (74,367 ) Depreciation and amortization $ 5,870 $ 3,700 $ 3,364 $ 12,934 $ 5,185 $ — $ 18,119 Total assets 9,420,014 1,965,961 236,013 $ 11,621,988 1,020,380 — $ 12,642,368 |
Guarantor Financial Statement39
Guarantor Financial Statement Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Consolidating Balance Sheets | NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2015 Nationstar Issuer Guarantor (Subsidiaries) Non-Guarantor (Subsidiaries) Eliminations Consolidated Assets Cash and cash equivalents $ — $ 597,303 $ 558 $ 15,380 $ — $ 613,241 Restricted cash — 198,726 3 133,376 — 332,105 Mortgage servicing rights — 3,366,973 — — — 3,366,973 Advances — 2,223,039 — 44 — 2,223,083 Reverse mortgage interests, net — 6,832,186 — 682,137 — 7,514,323 Mortgage loans held for sale — 1,304,219 — 125,472 — 1,429,691 Mortgage loans held for investment, net — 840 — 172,810 — 173,650 Property and equipment, net — 113,228 868 28,740 — 142,836 Derivative financial instruments — 96,181 — 3,518 — 99,699 Other assets 3,444 799,567 303,452 1,496,640 (1,881,271 ) 721,832 Investment in subsidiaries 1,768,319 509,475 — — (2,277,794 ) — Total assets $ 1,771,763 $ 16,041,737 $ 304,881 $ 2,658,117 $ (4,159,065 ) $ 16,617,433 Liabilities and stockholders' equity Unsecured senior notes $ — $ 2,025,754 $ — $ — $ — $ 2,025,754 Advance facilities — 231,432 — 1,408,258 — 1,639,690 Warehouse facilities — 1,782,060 — 108,260 — 1,890,320 Payables and accrued liabilities 4,386 1,222,268 927 68,806 — 1,296,387 MSR related liabilities - nonrecourse — 1,300,782 — — — 1,300,782 Mortgage servicing liabilities — 25,260 — — — 25,260 Derivative financial instruments — 5,823 — — — 5,823 Other nonrecourse debt — 5,942,849 — 723,191 — 6,666,040 Payables to affiliates — 1,737,190 1,031 143,050 (1,881,271 ) — Total liabilities 4,386 14,273,418 1,958 2,451,565 (1,881,271 ) 14,850,056 Total equity 1,767,377 1,768,319 302,923 206,552 (2,277,794 ) 1,767,377 Total liabilities and equity $ 1,771,763 $ 16,041,737 $ 304,881 $ 2,658,117 $ (4,159,065 ) $ 16,617,433 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET MARCH 31, 2016 Nationstar Issuer Guarantor (Subsidiaries) Non-Guarantor (Subsidiaries) Eliminations Consolidated Assets Cash and cash equivalents $ — $ 426,150 $ 758 $ 34,043 $ — $ 460,951 Restricted cash — 172,453 3 135,108 — 307,564 Mortgage servicing rights — 3,096,084 — — — 3,096,084 Advances — 2,070,537 — 62 — 2,070,599 Reverse mortgage interests, net — 6,901,208 — 682,878 — 7,584,086 Mortgage loans held for sale — 1,816,028 — 64,626 — 1,880,654 Mortgage loans held for investment, net — (658 ) — 167,222 — 166,564 Property and equipment, net — 113,745 865 27,545 — 142,155 Derivative financial instruments — 105,527 — 3,641 — 109,168 Other assets (57,595 ) 603,109 311,701 1,431,086 (1,554,602 ) 733,699 Investment in subsidiaries 1,639,114 572,217 — — (2,211,331 ) — Total assets $ 1,581,519 $ 15,876,400 $ 313,327 $ 2,546,211 $ (3,765,933 ) $ 16,551,524 Liabilities and stockholders' equity Unsecured senior notes $ — $ 2,025,265 $ — $ — $ — $ 2,025,265 Advance facilities — 234,739 — 1,329,011 — 1,563,750 Warehouse facilities — 2,361,190 — 53,305 — 2,414,495 Payables and accrued liabilities — 1,077,109 2,878 59,413 — 1,139,400 MSR related liabilities - nonrecourse — 1,242,999 — — — 1,242,999 Mortgage servicing liabilities — 18,065 — — — 18,065 Derivative financial instruments — 20,835 — — — 20,835 Other nonrecourse debt — 5,828,015 — 717,181 — 6,545,196 Payables to affiliates — 1,429,069 4,731 120,802 (1,554,602 ) — Total liabilities — 14,237,286 7,609 2,279,712 (1,554,602 ) 14,970,005 Total equity 1,581,519 1,639,114 305,718 266,499 (2,211,331 ) 1,581,519 Total liabilities and equity $ 1,581,519 $ 15,876,400 $ 313,327 $ 2,546,211 $ (3,765,933 ) $ 16,551,524 |
Consolidating Statements of Operations | NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2016 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues Service related $ — $ (16,999 ) $ 7,072 $ 102,580 $ — $ 92,653 Net gain on mortgage loans held for sale — 162,566 — 8,550 — 171,116 Total revenues — 145,567 7,072 111,130 — 263,769 Expenses Salaries wages benefits — 144,238 1,162 51,962 — 197,362 General and administrative — 169,535 3,115 51,465 — 224,115 Total expenses — 313,773 4,277 103,427 — 421,477 Other income (expense) Interest income — 91,080 — 11,763 — 102,843 Interest expense — (141,576 ) — (19,200 ) — (160,776 ) Gain on repurchase of unsecured senior notes — 77 — — — 77 Gain (loss) on interest rate swaps and caps — 15 — (7 ) — 8 Gain (loss) from subsidiaries (132,389 ) 2,956 — — 129,433 — Total other income (expense) (132,389 ) (47,448 ) — (7,444 ) 129,433 (57,848 ) Income (loss) before taxes (132,389 ) (215,654 ) 2,795 259 129,433 (215,556 ) Income tax expense — (82,265 ) — — — (82,265 ) Net income (loss) (132,389 ) (133,389 ) 2,795 259 129,433 (133,291 ) Less: Net gain (loss) attributable to noncontrolling interests — (1,000 ) — 98 — (902 ) Net income (loss) excluding noncontrolling interests $ (132,389 ) $ (132,389 ) $ 2,795 $ 161 $ 129,433 $ (132,389 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues Service related $ — $ 102,179 $ (345 ) $ 113,511 $ (222 ) $ 215,123 Net gain on mortgage loans held for sale — 156,847 — 10,147 — 166,994 Total revenues — 259,026 (345 ) 123,658 (222 ) 382,117 Expenses Salaries wages benefits — 128,433 354 49,968 — 178,755 General and administrative — 164,532 50 40,506 — 205,088 Total expenses — 292,965 404 90,474 — 383,843 Other income (expense) Interest income — 36,120 — 7,432 222 43,774 Interest expense — (99,867 ) — (15,781 ) — (115,648 ) Gain (loss) on interest rate swaps and caps — 34 — (801 ) — (767 ) Gain (loss) from subsidiaries (48,315 ) 23,209 — — 25,106 — Total other income (expense) (48,315 ) (40,504 ) — (9,150 ) 25,328 (72,641 ) Income (loss) before taxes (48,315 ) (74,443 ) (749 ) 24,034 25,106 (74,367 ) Income tax benefit — (27,525 ) — — — (27,525 ) Net income (loss) (48,315 ) (46,918 ) (749 ) 24,034 25,106 (46,842 ) Less: Net gain attributable to noncontrolling interests — 1,397 — 76 — 1,473 Net income (loss) excluding noncontrolling interests $ (48,315 ) $ (48,315 ) $ (749 ) $ 23,958 $ 25,106 $ (48,315 ) |
Consolidating Statements of Cash Flows | NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities Net income (loss) $ (48,315 ) $ (48,315 ) $ (749 ) $ 23,958 $ 25,106 $ (48,315 ) Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: Noncontrolling interest — 1,473 — — — 1,473 (Gain) loss from subsidiaries 48,315 (23,209 ) — — (25,106 ) — Share-based compensation — 5,524 — — — 5,524 Excess tax benefit from share based compensation — (1,095 ) — — — (1,095 ) Net gain on mortgage loans held for sale — (156,847 ) — (10,147 ) — (166,994 ) Mortgage loans originated and purchased, net of fees — (4,209,078 ) — — — (4,209,078 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (405,893 ) — — — (405,893 ) Proceeds on sale of and payments of mortgage loans held for sale and held for investment — 3,998,101 — 5,025 — 4,003,126 Gain (loss) on interest rate swaps and caps — (34 ) — 801 — 767 Depreciation and amortization — 14,758 — 3,361 — 18,119 Amortization (accretion) of premiums (discounts) — (6,759 ) — (303 ) — (7,062 ) Fair value changes in excess spread financing — 13,114 — — — 13,114 Fair value changes and amortization of mortgage servicing rights — 204,200 — — — 204,200 Fair value change in mortgage servicing rights financing liability — (4,386 ) — — — (4,386 ) Changes in assets and liabilities: Advances — 93,149 — 2,287 — 95,436 Reverse mortgage interests — (258,916 ) — 78,123 — (180,793 ) Other assets 5,442 379,162 1,199 (367,126 ) — 18,677 Payables and accrued liabilities — 7,233 14 (4,374 ) — 2,873 Net cash attributable to operating activities 5,442 (397,818 ) 464 (268,395 ) — (660,307 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2015 (Continued) Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities Property and equipment additions, net of disposals — (7,243 ) — (4,750 ) — (11,993 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (196,081 ) — — — (196,081 ) Acquisitions, net of cash acquired — — — (31,276 ) — (31,276 ) Net cash attributable to investing activities — (203,324 ) — (36,026 ) — (239,350 ) Financing activities Transfers to restricted cash, net — (24,925 ) — (48,087 ) — (73,012 ) Issuance of common stock, net of issuance cost — 497,758 — — — 497,758 Debt financing costs — (1,549 ) — — — (1,549 ) Increase (decrease) in advance facilities — (332,696 ) — 314,225 — (18,471 ) Increase in warehouse facilities — 899,756 — 5,094 — 904,850 Proceeds from HECM Securitization — — — 73,082 — 73,082 Repayment of HECM Securitization — — — (26,829 ) — (26,829 ) Issuance of excess spread financing — 52,957 — — — 52,957 Repayment of excess spread financing — (49,516 ) — — — (49,516 ) Increase in participating interest financing in reverse mortgage interests — 64,781 — — — 64,781 Repayment of nonrecourse debt – legacy assets — (135 ) — (3,138 ) — (3,273 ) Excess tax benefit from share-based compensation — 1,095 — — — 1,095 Redemption of shares for stock vesting (5,442 ) — — — — (5,442 ) Net cash attributable to financing activities (5,442 ) 1,107,526 — 314,347 — 1,416,431 Net increase in cash and cash equivalents — 506,384 464 9,926 — 516,774 Cash and cash equivalents at beginning of period — 279,770 288 18,944 — 299,002 Cash and cash equivalents at end of period $ — $ 786,154 $ 752 $ 28,870 $ — $ 815,776 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2016 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating Activities Net income (loss) $ (132,389 ) $ (132,389 ) $ 2,795 $ 161 $ 129,433 $ (132,389 ) Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: Noncontrolling interest — (1,000 ) — 98 — (902 ) (Gain) loss from subsidiaries 132,389 (2,956 ) — — (129,433 ) — Share-based compensation — 4,857 20 1,966 — 6,843 Gain on repurchase of unsecured senior notes — (77 ) — — — (77 ) Excess tax deficiency from share-based compensation — 2,795 — — — 2,795 Gain on mortgage loans held for sale — (162,566 ) — (8,550 ) — (171,116 ) Mortgage loans originated and purchased, net of fees — (4,006,685 ) — (233,431 ) — (4,240,116 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (486,124 ) — — — (486,124 ) Proceeds on sale of and payments of mortgage loans held for sale — 4,071,502 — 305,740 — 4,377,242 (Gain) loss on derivatives including ineffectiveness — (15 ) — 7 — (8 ) Depreciation and amortization — 17,210 — 5,934 — 23,144 Amortization (accretion) of premiums (discounts) — 5,982 — 3,896 — 9,878 Fair value changes in excess spread financing — (23,699 ) — — — (23,699 ) Fair value changes and amortization/accretion of mortgage servicing rights — 286,378 — — — 286,378 Fair value change in mortgage servicing rights financing liability — 13,033 — — — 13,033 Changes in assets and liabilities: Advances — 152,502 — (18 ) — 152,484 Reverse mortgage interests — (14,257 ) — (741 ) — (14,998 ) Other assets 56,615 (125,563 ) (4,569 ) 99,628 — 26,111 Payables and accrued liabilities — (152,453 ) 1,951 (9,393 ) — (159,895 ) Net cash attributable to operating activities 56,615 (553,525 ) 197 165,297 — (331,416 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2016 (Continued) Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities Property and equipment additions, net of disposals — (9,768 ) 3 (3,339 ) — (13,104 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (1,530 ) — — — (1,530 ) Purchases of reverse mortgage servicing rights and interests — (55,215 ) — — — (55,215 ) Proceeds on sale of forward service rights — 18,361 — — — 18,361 Proceeds on sale of reverse mortgage interest — 450 — — — 450 Net cash attributable to investing activities — (47,702 ) 3 (3,339 ) — (51,038 ) Financing activities Transfers (to) from restricted cash, net — 26,273 — (1,732 ) — 24,541 Debt financing costs — (2,497 ) — — — (2,497 ) Increase (decrease) warehouse facilities — 577,848 — (54,955 ) — 522,893 Increase (decrease) advance facilities — 199 — (79,247 ) — (79,048 ) Proceeds from HECM securitizations — — — 281,680 — 281,680 Repayment of HECM securitizations — — — (285,985 ) — (285,985 ) Repayment of excess spread financing — (47,117 ) — — — (47,117 ) Increase in participating interest financing in reverse mortgage interests — (120,362 ) — — — (120,362 ) Repayment of nonrecourse debt–legacy assets — — — (3,056 ) — (3,056 ) Repurchase of unsecured senior notes — (1,475 ) — — — (1,475 ) Excess tax deficiency from share-based compensation — (2,795 ) — — — (2,795 ) Redemption of shares for stock vesting (1,564 ) — — — — (1,564 ) Repurchase of treasury shares (55,051 ) — — — — (55,051 ) Net cash attributable to financing activities (56,615 ) 430,074 — (143,295 ) — 230,164 Net increase (decrease) in cash — (171,153 ) 200 18,663 — (152,290 ) Cash and cash equivalents at beginning of period — 597,303 558 15,380 — 613,241 Cash and cash equivalents at end of period $ — $ 426,150 $ 758 $ 34,043 $ — $ 460,951 |
Nature of Business and Basis 40
Nature of Business and Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | $ 5,915 | $ 5,713 |
Unsecured Senior Notes | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 21,535 | 22,940 |
Advance Facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 3,409 | 6,433 |
Warehouse Facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 2,171 | 3,206 |
Nonrecourse Debt | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | $ 5,758 | 4,559 |
As Presented | Unsecured Senior Notes | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 2,048,694 | |
As Presented | Advance Facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 1,646,123 | |
As Presented | Warehouse Facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 1,893,526 | |
As Presented | Nonrecourse Debt | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 6,670,598 | |
As Presented | Other Assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 758,969 | |
Reclassification | Unsecured Senior Notes | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | (22,940) | |
Reclassification | Advance Facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | (6,433) | |
Reclassification | Warehouse Facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | (3,206) | |
Reclassification | Nonrecourse Debt | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | (4,558) | |
Reclassification | Other Assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | (37,137) | |
As Adjusted | Unsecured Senior Notes | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 2,025,754 | |
As Adjusted | Advance Facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 1,639,690 | |
As Adjusted | Warehouse Facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 1,890,320 | |
As Adjusted | Nonrecourse Debt | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 6,666,040 | |
As Adjusted | Other Assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | $ 721,832 |
Mortgage Servicing Rights (MS41
Mortgage Servicing Rights (MSR) and Related Liabilities - MSRs and Related Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Mortgage Servicing Rights [Line Items] | ||||
Mortgage servicing rights at fair value | $ 3,088,123 | $ 3,358,327 | ||
Mortgage servicing rights | 3,096,084 | 3,366,973 | ||
Mortgage servicing liabilities | 18,065 | 25,260 | ||
Excess spread financing - fair value | 1,161,270 | 1,232,086 | ||
Mortgage servicing rights financing liability - fair value | 81,729 | 68,696 | ||
MSR related liabilities (nonrecourse) | 1,242,999 | 1,300,782 | ||
Mortgage servicing rights | ||||
Mortgage Servicing Rights [Line Items] | ||||
Mortgage servicing rights at fair value | 3,088,123 | 3,358,327 | ||
MSRs - LOCOM | 7,961 | 8,646 | $ 10,784 | $ 11,582 |
Mortgage servicing liabilities | $ 18,065 | $ 25,260 | $ 58,599 | $ 65,382 |
Mortgage Servicing Rights (MS42
Mortgage Servicing Rights (MSR) and Related Liabilities - UPB related to owned MSRs (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Owned Service Loans [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | $ 1,900,000 | |
Mortgage servicing rights at fair value | 3,088,123 | $ 3,358,327 |
Mortgage servicing rights | ||
Owned Service Loans [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 332,660,232 | 345,676,257 |
Mortgage servicing rights at fair value | 3,088,123 | 3,358,327 |
Credit Sensitive | Mortgage servicing rights | ||
Owned Service Loans [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 214,623,983 | 224,334,415 |
Mortgage servicing rights at fair value | 1,918,310 | 2,016,617 |
Interest Rate Sensitive | Mortgage servicing rights | ||
Owned Service Loans [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 118,036,249 | 121,341,842 |
Mortgage servicing rights at fair value | $ 1,169,813 | $ 1,341,710 |
Mortgage Servicing Rights (MS43
Mortgage Servicing Rights (MSR) and Related Liabilities - MSR's at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Fair value at the beginning of the period | $ 3,358,327 | ||
Fair value at the end of the period | 3,088,123 | $ 3,358,327 | |
Mortgage servicing rights | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Fair value at the beginning of the period | 3,358,327 | $ 2,949,739 | 2,949,739 |
Servicing resulting from transfers of financial assets | 39,663 | 44,232 | 221,762 |
Purchases of servicing assets | 1,643 | 238,413 | 729,984 |
Dispositions | (18,621) | 0 | (46,168) |
Due to changes in valuation inputs or assumptions used in the valuation model | (235,581) | (109,684) | |
Other changes in fair value | (57,308) | (100,502) | |
Fair value at the end of the period | $ 3,088,123 | $ 3,022,198 | $ 3,358,327 |
Mortgage Servicing Rights (MS44
Mortgage Servicing Rights (MSR) and Related Liabilities - Fair Value Assumptions (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Mortgage servicing rights | Credit Sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate percent | 11.60% | 11.60% |
Total prepayment speeds percent | 16.40% | 16.50% |
Expected weighted-average life (in years) | 5 years 9 months 18 days | 5 years 10 months 24 days |
Mortgage servicing rights | Interest Rate Sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate percent | 9.20% | 9.10% |
Total prepayment speeds percent | 14.10% | 12.40% |
Expected weighted-average life (in years) | 5 years 7 months 6 days | 6 years 1 month 6 days |
Excess spread financing | Minimum | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Mortgage prepayment speeds percent | 8.50% | 7.40% |
Average life (in years) | 4 years 1 month 6 days | 4 years 2 months 12 days |
Discount rate percent | 8.50% | 8.50% |
Recapture Rate percent | 6.70% | 6.80% |
Excess spread financing | Maximum | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Mortgage prepayment speeds percent | 15.90% | 17.10% |
Average life (in years) | 7 years 2 months 12 days | 7 years 9 months 18 days |
Discount rate percent | 14.10% | 14.10% |
Recapture Rate percent | 28.90% | 30.00% |
Excess spread financing | Weighted Average | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Mortgage prepayment speeds percent | 11.90% | 11.60% |
Average life (in years) | 5 years 9 months 18 days | 5 years 10 months 24 days |
Discount rate percent | 11.00% | 11.20% |
Recapture Rate percent | 18.30% | 17.70% |
MSR Financing Liability | Financing rates | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Advance financing rates | 3.10% | 3.00% |
MSR Financing Liability | Recovery rates | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Annual advance recovery rates | 20.50% | 20.90% |
Mortgage Servicing Rights (MS45
Mortgage Servicing Rights (MSR) and Related Liabilities - Fair Value Sensitivity Analysis (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
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 | $ (132,489) | $ (132,277) |
Total Prepayment Speeds, 20% Adverse Change | (253,694) | (253,028) |
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 | (42,394) | (36,530) |
Total Prepayment Speeds, 20% Adverse Change | (88,488) | (76,373) |
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 | (105,221) | (123,115) |
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 | (43,552) | (41,806) |
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 | (206,145) | (237,779) |
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 | $ (90,412) | $ (86,791) |
Mortgage Servicing Rights (MS46
Mortgage Servicing Rights (MSR) and Related Liabilities - MSR's at Amortized Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||
Fair value at end of period | $ 28,129 | $ 32,618 |
Servicing Liability at Amortized Value [Roll Forward] | ||
Balance at the beginning of the period | 25,260 | |
Balance at end of the period | 18,065 | |
Fair value at end of period | 2,416 | 55,579 |
Mortgage servicing rights | ||
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||
Balance at the beginning of the period | 8,646 | 11,582 |
Purchase/assumptions of servicing rights/obligations | 0 | 0 |
Amortization/accretion | (685) | (798) |
Balance at end of the period | 7,961 | 10,784 |
Servicing Liability at Amortized Value [Roll Forward] | ||
Balance at the beginning of the period | 25,260 | 65,382 |
Purchase/assumptions of servicing rights/obligations | 0 | 0 |
Amortization/accretion | (7,195) | (6,783) |
Balance at end of the period | $ 18,065 | $ 58,599 |
Mortgage Servicing Rights (MS47
Mortgage Servicing Rights (MSR) and Related Liabilities - Servicing Fees (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Transfers and Servicing [Abstract] | ||
Contractually specified servicing fees | $ 281,088 | $ 276,444 |
Incentive and modification income | 23,801 | 22,865 |
Late fees | 18,523 | 17,583 |
Other service-related income | 30,294 | 33,120 |
Remittances to counterparties for contractual transfer of servicing assets | (74,387) | (74,657) |
Mark-to-market | (255,008) | (112,443) |
Amortization | (48,662) | (62,915) |
Total service fee income (loss) | $ (24,351) | $ 99,997 |
Mortgage Servicing Rights (MS48
Mortgage Servicing Rights (MSR) and Related Liabilities - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Feb. 28, 2013 | |
Principal amount outstanding on mortgage servicing rights | $ 1,900,000,000 | |||
Factor in repurchasing loans out of HMBS pools | 625,000 | |||
Mortgage servicing rights at fair value | 3,088,123,000 | $ 3,358,327,000 | ||
Reverse mortgage interests, net | ||||
Principal amount outstanding on mortgage servicing rights | 29,000,000,000 | 29,900,000,000 | $ 83,100,000 | |
Mortgage servicing rights | ||||
Principal amount outstanding on mortgage servicing rights | 332,660,232,000 | 345,676,257,000 | ||
Impairment | 0 | 0 | ||
Amortization/Accretion | 7,195,000 | $ 6,783,000 | ||
Mortgage servicing rights at fair value | $ 3,088,123,000 | $ 3,358,327,000 |
Advances, Net - Schedule of Acc
Advances, Net - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Agency | $ 1,280,744 | $ 1,396,176 |
Non-agency | 789,855 | 826,907 |
Total advances, net | $ 2,070,599 | $ 2,223,083 |
Advances, Net - Narrative (Deta
Advances, Net - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Allowance for uncollectible servicer advances | $ 37.7 | $ 29.9 |
Reverse Mortgage Interests - Sc
Reverse Mortgage Interests - Schedule of Reverse Mortgage Interest (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unsecuritized interests, net of reserves of $33,091 and $20,133, respectively | $ 1,093,157 | $ 967,857 |
Reverse mortgage loans held for sale | 55,215 | 0 |
Reverse mortgage interests, net | 7,584,086 | 7,514,323 |
Unsecuritized interests, reserves | 33,091 | 20,133 |
HMBS Securitized HECM | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Participating Interests | 5,752,917 | 5,864,329 |
2014-1 HECM Securitization | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other interests securitized, net of reserves of $ 27,626 and $32,780, respectively | 682,797 | 682,137 |
Other interest securitized, reserves | $ 27,626 | $ 32,780 |
Reverse Mortgage Interests - Na
Reverse Mortgage Interests - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 51 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Claims accounts receivable | $ 99,900 | $ 99,900 | |
Funded borrower draws not yet securitized | 85,400 | ||
Servicing fees receivable | 164,417 | 164,417 | $ 180,036 |
Ginnie Mae HECM, FHA Reimbursement | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from of securities sold under agreements to repurchase | 747,500 | ||
Ginnie Mae HECM | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from of securities sold under agreements to repurchase | 135,000 | ||
HECM Scratch and Dent Portfolio | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Participating interests | 21,400 | ||
HECM | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Foreclosed assets | 27,300 | 27,300 | |
Servicing fees receivable | 9,700 | 9,700 | |
Acquired reverse mortgage loans | 55,200 | ||
Outstanding unpaid principal balance | $ 96,500 | $ 96,500 |
Mortgage Loans Held for Sale 53
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Mortgage Loans Held for Sale and Investment [Abstract] | ||
Mortgage loans held for sale – unpaid principal balance | $ 1,792,620 | $ 1,373,607 |
Mark-to-market adjustment | 88,034 | 56,084 |
Total mortgage loans held for sale | 1,880,654 | 1,429,691 |
UPB | 31,253 | 31,390 |
Fair Value | 28,030 | 28,996 |
Foreclosure | $ 21,809 | $ 16,174 |
Mortgage Loans Held for Sale 54
Mortgage Loans Held for Sale and Investment - Reconciliation to Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Mortgage loans held for sale – beginning balance | $ 1,429,691 | $ 1,277,931 |
Mortgage loans originated and purchased, net of fees | 4,240,116 | 4,209,078 |
Repurchase of loans out of Ginnie Mae securitizations | 222,712 | 393,550 |
Claims made to third parties | (13,910) | (22,116) |
Proceeds on sale of and payments of mortgage loans held for sale | (4,134,959) | (3,976,647) |
Gain on sale of mortgage loans | 137,004 | 114,202 |
Mortgage loans held for sale – ending balance | $ 1,880,654 | $ 1,995,998 |
Mortgage Loans Held for Sale 55
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage loans held for investment, net | $ 166,564 | $ 173,650 | |
Mortgage Loans Held for Investment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans held for investment, net – unpaid principal balance | 240,194 | 250,033 | |
Transfer discount - accretable | (14,398) | (14,631) | $ (15,503) |
Transfer discount - non-accretable | (55,683) | (58,203) | |
Allowance for loan losses | (3,549) | (3,549) | |
Total mortgage loans held for investment, net | $ 166,564 | $ 173,650 |
Mortgage Loans Held for Sale 56
Mortgage Loans Held for Sale and Investment - Accretable Yield (Details) - Mortgage Loans Held for Investment - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at the beginning of the period | $ 14,631 | $ 15,503 |
Accretion | 668 | 2,727 |
Reclassifications from nonaccretable discount | (435) | (1,855) |
Balance at the end of the period | $ 14,398 | $ 14,631 |
Mortgage Loans Held for Sale 57
Mortgage Loans Held for Sale and Investment - Foreclosure (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Mortgage Loans Held for Sale and Investment [Abstract] | ||
Mortgage Loans Held for Investment in foreclosure, amount | $ 40,532 | $ 41,406 |
Mortgage Loans Held for Sale 58
Mortgage Loans Held for Sale and Investment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Mortgage Loans Held for Investment | ||
Servicing Assets at Fair Value [Line Items] | ||
Reclassifications from (to) nonaccretable discount | $ 435 | $ 1,855 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Others Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Receivables from trusts, agencies and prior servicers, net | $ 186,268 | $ 229,452 |
Accrued revenue | 164,417 | 180,036 |
Loans subject to repurchase right from Ginnie Mae | 179,881 | 117,163 |
Goodwill | 71,141 | 71,141 |
Intangible assets | 48,006 | 49,869 |
Deferred financing costs | 5,915 | 5,713 |
Prepaid expenses | 18,213 | 19,800 |
Receivables from affiliates, net | 7,219 | 7,510 |
Real estate owned (REO), net | 3,743 | 3,595 |
Other | 48,896 | 37,553 |
Total other assets | $ 733,699 | $ 721,832 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||
Jun. 30, 2015 | May. 31, 2015 | Jan. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||||
Accounts Receivable from Securitization Valuation Reserves | $ 167,700 | $ 98,800 | |||
Reclassification of mortgage servicing rights for liquidated loans | 64,700 | ||||
Loans subject to repurchase right from Ginnie Mae | 179,881 | 117,163 | |||
Unsettled trades of securities receivable | 10,300 | ||||
Other net assets | $ 733,699 | $ 721,832 | |||
Experience 1, Inc | |||||
Business Acquisition [Line Items] | |||||
Cash payment to acquire business | $ 35,900 | ||||
Goodwill acquired | 20,300 | ||||
Intangible assets acquired | 19,100 | ||||
Other assets acquired | $ 3,500 | ||||
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 | 3,400 | ||||
Intangible assets acquired | 10,400 | ||||
Other net assets | $ 200 |
Derivative Financial Instrume61
Derivative Financial Instruments - Narrative (Details) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($)derivative_instrument |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Collateral deposits | $ 10,300,000 | $ 3,900,000 | |
Interest Rate Cap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional value | $ 100,000,000 | ||
Interest Rate Cap 1 | Interest Rate Cap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Number of derivative instruments | derivative_instrument | 2 | ||
Notional value | $ 800,000,000 | ||
Interest Rate Cap 2 | Interest Rate Cap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional value | $ 400,000,000 |
Derivative Financial Instrume62
Derivative Financial Instruments - Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Derivative financial instruments | Loan Sale Commitment | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | $ 123,810 | $ 175,570 |
Recorded Gains / (Losses) | (814) | 256 |
Derivative financial instruments | Interest Rate Lock Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 3,272,423 | 2,767,927 |
Recorded Gains / (Losses) | 10,324 | 1,236 |
Derivative financial instruments | Forward Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 350,830 | 1,665,894 |
Recorded Gains / (Losses) | (5,777) | 5,839 |
Derivative financial instruments | Loan Purchase Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 615,172 | 387,891 |
Recorded Gains / (Losses) | 5,072 | 1,873 |
Derivative financial instruments | Eurodollar futures | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 6,000 | 176,000 |
Recorded Gains / (Losses) | (49) | 59 |
Derivative financial instruments | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 11,481 | 845,876 |
Recorded Gains / (Losses) | (102) | (359) |
Derivative financial instruments | Fair Value, Measurements, Recurring | Loan Sale Commitment | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | (562) | 252 |
Derivative financial instruments | Fair Value, Measurements, Recurring | Interest Rate Lock Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 99,462 | 89,138 |
Derivative financial instruments | Fair Value, Measurements, Recurring | Forward Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 346 | 6,123 |
Derivative financial instruments | Fair Value, Measurements, Recurring | Loan Purchase Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 8,944 | 3,872 |
Derivative financial instruments | Fair Value, Measurements, Recurring | Eurodollar futures | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 405 | 60 |
Derivative financial instruments | Fair Value, Measurements, Recurring | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 11 | 506 |
Derivative Liabilities | Interest Rate Lock Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 4,289 | 2,304 |
Recorded Gains / (Losses) | (32) | 2 |
Derivative Liabilities | Forward Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 3,313,327 | 1,807,418 |
Recorded Gains / (Losses) | (15,794) | 14,614 |
Derivative Liabilities | Loan Purchase Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 68,933 | 314,047 |
Recorded Gains / (Losses) | 1,221 | (1,406) |
Derivative Liabilities | Eurodollar futures | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 381,000 | 95,000 |
Recorded Gains / (Losses) | (518) | (69) |
Derivative Liabilities | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 11,481 | 12,543 |
Recorded Gains / (Losses) | 110 | (439) |
Derivative Liabilities | Fair Value, Measurements, Recurring | Interest Rate Lock Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liability | 37 | 5 |
Derivative Liabilities | Fair Value, Measurements, Recurring | Forward Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liability | 19,540 | 3,746 |
Derivative Liabilities | Fair Value, Measurements, Recurring | Loan Purchase Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liability | 233 | 1,454 |
Derivative Liabilities | Fair Value, Measurements, Recurring | Eurodollar futures | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liability | 594 | 76 |
Derivative Liabilities | Fair Value, Measurements, Recurring | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liability | $ 431 | $ 542 |
Indebtedness - Notes Payable Su
Indebtedness - Notes Payable Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Debt Outstanding | $ 1,563,750 | $ 1,639,690 | |
Debt issuance costs | (5,915) | (5,713) | |
Advance Facilities | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | (3,409) | (6,433) | |
Warehouse Facilities | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | (2,171) | (3,206) | |
Servicing Segment | |||
Debt Instrument [Line Items] | |||
Debt Outstanding | 1,563,750 | 1,639,690 | |
Pledged collateral | 1,771,542 | 1,925,521 | |
Servicing Segment | Notes Payable, Other | |||
Debt Instrument [Line Items] | |||
Debt outstanding, gross | 1,567,159 | 1,646,123 | |
Servicing Segment | Notes Payable, Other | MBS advance financing facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 130,000 | ||
Debt outstanding, gross | 71,661 | $ 82,208 | |
Pledged collateral | $ 65,022 | 89,221 | |
Servicing Segment | Notes Payable, Other | MBS advance financing facility | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on rate | 2.50% | ||
Servicing Segment | Notes Payable, Other | Nationstar agency advance financing facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 400,000 | ||
Debt outstanding, gross | 302,386 | 310,316 | |
Pledged collateral | $ 319,398 | 364,352 | |
Servicing Segment | Notes Payable, Other | Nationstar agency advance financing facility | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on rate | 2.00% | ||
Servicing Segment | Notes Payable, Other | MBS advance financing facility (2012) | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 50,000 | ||
Debt outstanding, gross | 44,594 | 50,000 | |
Pledged collateral | $ 53,380 | 69,942 | |
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 | ||
Debt outstanding, gross | 330,865 | 335,408 | |
Pledged collateral | $ 389,681 | 394,110 | |
Servicing Segment | Notes Payable, Other | Nationstar mortgage advance receivable trust | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on rate | 2.00% | ||
Servicing Segment | Notes Payable, Other | MBS servicer advance facility (2014) | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 125,000 | ||
Debt outstanding, gross | 121,893 | 105,657 | |
Pledged collateral | $ 191,473 | 185,392 | |
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 agency advance receivables trust | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,400,000 | ||
Debt outstanding, gross | 695,760 | 762,534 | |
Pledged collateral | $ 752,588 | 822,504 | |
Servicing Segment | Notes Payable, Other | Nationstar agency advance receivables trust | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on rate | 2.00% | ||
Originations Segment | Mortgage loans, net | |||
Debt Instrument [Line Items] | |||
Debt Outstanding | $ 1,782,803 | 1,539,457 | |
Pledged collateral | 1,867,637 | 1,681,352 | |
Originations Segment | Reverse mortgage interests, net | |||
Debt Instrument [Line Items] | |||
Debt Outstanding | 631,692 | 350,863 | |
Pledged collateral | 719,512 | 389,958 | |
Originations Segment | Notes Payable to Banks | |||
Debt Instrument [Line Items] | |||
Debt outstanding, gross | 2,416,666 | 1,893,526 | |
Debt Outstanding | 2,414,495 | 1,890,320 | |
Pledged collateral | 2,587,149 | 2,071,310 | |
Originations Segment | Notes Payable to Banks | $1.3 billion warehouse facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 1,300,000 | ||
Debt outstanding, gross | 887,423 | 633,694 | |
Pledged collateral | $ 941,098 | 677,775 | |
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 | ||
Debt outstanding, gross | 725,773 | 544,951 | |
Pledged collateral | $ 755,697 | 621,526 | |
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 | ||
Debt outstanding, gross | 271,662 | 174,702 | |
Pledged collateral | $ 277,933 | 178,923 | |
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 | ||
Debt outstanding, gross | 204,082 | 257,479 | |
Pledged collateral | $ 224,325 | 274,497 | |
Originations Segment | Notes Payable to Banks | $500 million warehouse facility | LIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on rate | 2.00% | ||
Originations Segment | Notes Payable to Banks | $500 million warehouse facility | LIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on rate | 2.50% | ||
Originations Segment | Notes Payable to Banks | $350 million warehouse facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 350,000 | ||
Debt outstanding, gross | 21,485 | 97,790 | |
Pledged collateral | $ 29,359 | 111,541 | |
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 | ||
Debt outstanding, gross | 67,381 | 8,531 | |
Pledged collateral | $ 69,202 | 9,052 | |
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 | $300 million warehouse facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 300,000 | ||
Debt outstanding, gross | 32,723 | 23,014 | |
Pledged collateral | $ 38,536 | 27,769 | |
Originations Segment | Notes Payable to Banks | $300 million warehouse facility | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on rate | 2.25% | ||
Originations Segment | Notes Payable to Banks | $200 million warehouse facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 200,000 | ||
Debt outstanding, gross | 152,832 | 45,106 | |
Pledged collateral | $ 191,839 | 50,083 | |
Originations Segment | Notes Payable to Banks | $200 million warehouse facility | LIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on rate | 2.75% | ||
Originations Segment | Notes Payable to Banks | $200 million warehouse facility | LIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on rate | 3.875% | ||
Originations Segment | Notes Payable to Banks | $75 million warehouse facility (HCM) | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 75,000 | ||
Debt outstanding, gross | 24,913 | 53,102 | |
Pledged collateral | $ 29,547 | 59,563 | |
Originations Segment | Notes Payable to Banks | $75 million warehouse facility (HCM) | LIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on rate | 2.25% | ||
Originations Segment | Notes Payable to Banks | $75 million warehouse facility (HCM) | 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 | ||
Debt outstanding, gross | $ 28,392 | 55,157 | |
Pledged collateral | $ 29,613 | $ 60,581 | |
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 | $100 million warehouse facility (HCM) | LIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on rate | 2.75% |
Indebtedness - Summary of Unsec
Indebtedness - Summary of Unsecured Senior Notes (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount, subtotal | $ 2,046,800,000 | $ 2,048,694,000 | |
Debt issuance costs | $ (5,915,000) | (5,713,000) | |
Unsecured senior notes, net of unamortized debt issuance costs | 2,025,265,000 | 2,025,754,000 | |
Unsecured Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | (21,535,000) | (22,940,000) | |
Unsecured senior notes, net of unamortized debt issuance costs | 2,025,265,000 | ||
Debt issued | 2,046,800,000 | ||
Unsecured Senior Notes | $475 million face value, 6.500% interest rate payable semi-annually, due August 2018 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount, subtotal | 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] | |||
Unsecured senior notes principal amount, subtotal | 362,074,000 | 362,750,000 | |
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] | |||
Unsecured senior notes principal amount, subtotal | 400,425,000 | 400,448,000 | |
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] | |||
Unsecured senior notes principal amount, subtotal | 595,760,000 | 596,955,000 | |
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] | |||
Unsecured senior notes principal amount, subtotal | $ 213,541,000 | $ 213,541,000 | |
Debt issued | $ 300,000,000 | ||
Interest Rate | 6.50% |
Indebtedness - Schedule of Note
Indebtedness - Schedule of Notes Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (5,915) | $ (5,713) |
Unsecured senior notes, net of unamortized debt issuance costs | 2,025,265 | 2,025,754 |
Unsecured Senior Notes | ||
Debt Instrument [Line Items] | ||
2,016 | 0 | |
2,017 | 0 | |
2,018 | 475,000 | |
2,019 | 362,074 | |
2,020 | 400,425 | |
Thereafter | 809,301 | |
Unsecured senior notes principal amount | 2,046,800 | |
Unamortized debt issuance costs | (21,535) | $ (22,940) |
Unsecured senior notes, net of unamortized debt issuance costs | $ 2,025,265 |
Indebtedness - Summary of Other
Indebtedness - Summary of Other Non-Recourse Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Non-Recourse Debt | $ 6,545,196 | $ 6,666,040 |
Unamortized debt issuance costs | (5,915) | (5,713) |
Nonrecourse Debt | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (5,758) | (4,559) |
Fair Value, Measurements, Recurring | Participating Interest Financing | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 5,833,773 | |
Fair Value, Measurements, Recurring | Reported Value Measurement | Participating Interest Financing | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 5,833,773 | 5,947,407 |
Fair Value, Measurements, Recurring | Reported Value Measurement | 2014-1 HECM Securitization | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 0 | 226,851 |
Fair Value, Measurements, Recurring | Reported Value Measurement | 2015-1 HECM Securitization | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 199,309 | 222,495 |
Fair Value, Measurements, Recurring | Reported Value Measurement | 2015-2 HECM Securitization | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 183,569 | 209,030 |
Fair Value, Measurements, Recurring | Reported Value Measurement | 2016-1 HECM Securitization | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 272,115 | 0 |
Fair Value, Measurements, Recurring | Reported Value Measurement | Legacy Asset | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 62,188 | 64,815 |
Fair Value, Measurements, Recurring | Reported Value Measurement | Other | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | $ 6,550,954 | $ 6,670,598 |
Indebtedness - Narrative (Detai
Indebtedness - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2016USD ($)credit_facility | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Mar. 30, 2016USD ($) | Nov. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Nov. 30, 2009USD ($) | |
Debt Instrument [Line Items] | ||||||||
Repurchase of unsecured senior notes | $ 1,475,000 | $ 0 | ||||||
Gain on repurchase of unsecured senior notes | 77,000 | 0 | ||||||
Maximum percentage redeemable on unsecured debt | 35.00% | |||||||
Non-Recourse Debt | 6,545,196,000 | $ 6,666,040,000 | ||||||
Principal amount outstanding on securitized financing | $ 222,000,000 | |||||||
Debt Outstanding | 1,563,750,000 | 1,639,690,000 | ||||||
Minimum tangible net worth | 681,700,000 | |||||||
Securities Pledged as Collateral | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount outstanding on securitized financing | 236,000,000 | 242,400,000 | ||||||
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] | ||||||||
Securitized unpaid principal balance | 0 | $ 269,400,000 | ||||||
2015-2 HECM Securitization | ||||||||
Debt Instrument [Line Items] | ||||||||
Securitized unpaid principal balance | 0 | $ 217,300,000 | ||||||
2016-1 HECM Securitization | ||||||||
Debt Instrument [Line Items] | ||||||||
Securitized unpaid principal balance | 0 | $ 281,700,000 | ||||||
Nonrecourse Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount Outstanding | $ 72,300,000 | 75,400,000 | ||||||
Notes Payable, MBS | ||||||||
Debt Instrument [Line Items] | ||||||||
Minimum interest rate | 0.70% | |||||||
Maximum interest rate | 7.00% | |||||||
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] | ||||||||
Debt Outstanding | 70,400,000 | |||||||
Notes Payable, Other | Securities Repurchase Facility Class M | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Outstanding | $ 36,200,000 | |||||||
Secured Debt | Nonrecourse Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest Rate | 7.50% | |||||||
Fair Value, Measurements, Recurring | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Outstanding | $ 1,563,750,000 | |||||||
Fair Value, Measurements, Recurring | Participating Interest Financing | ||||||||
Debt Instrument [Line Items] | ||||||||
Non-Recourse Debt | 5,833,773,000 | |||||||
Reported Value Measurement | Fair Value, Measurements, Recurring | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Outstanding | 1,646,123,000 | |||||||
Reported Value Measurement | Fair Value, Measurements, Recurring | Participating Interest Financing | ||||||||
Debt Instrument [Line Items] | ||||||||
Non-Recourse Debt | 5,833,773,000 | 5,947,407,000 | ||||||
Reported Value Measurement | Fair Value, Measurements, Recurring | 2014-1 HECM Securitization | ||||||||
Debt Instrument [Line Items] | ||||||||
Non-Recourse Debt | 0 | 226,851,000 | ||||||
Reported Value Measurement | Fair Value, Measurements, Recurring | 2015-1 HECM Securitization | ||||||||
Debt Instrument [Line Items] | ||||||||
Non-Recourse Debt | 199,309,000 | 222,495,000 | ||||||
Reported Value Measurement | Fair Value, Measurements, Recurring | 2015-2 HECM Securitization | ||||||||
Debt Instrument [Line Items] | ||||||||
Non-Recourse Debt | 183,569,000 | 209,030,000 | ||||||
Reported Value Measurement | Fair Value, Measurements, Recurring | 2016-1 HECM Securitization | ||||||||
Debt Instrument [Line Items] | ||||||||
Non-Recourse Debt | 272,115,000 | 0 | ||||||
Reported Value Measurement | Fair Value, Measurements, Recurring | Legacy Asset | ||||||||
Debt Instrument [Line Items] | ||||||||
Non-Recourse Debt | $ 62,188,000 | $ 64,815,000 | ||||||
Warehouse Facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Covenant Compliance, Number of Facilities Covenant Was Not Met | credit_facility | 1 | |||||||
MBS Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Covenant Compliance, Number of Facilities Covenant Was Not Met | credit_facility | 1 |
Payables and Accrued Liabilit68
Payables and Accrued Liabilities - Schedule of Accounts Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Payables to servicing and subservicing investors | $ 447,996 | $ 483,535 |
Loans subject to repurchase from Ginnie Mae | 179,881 | 117,163 |
Accrued bonus and payroll | 68,700 | 96,381 |
Payables to GSEs | 81,132 | 87,748 |
Payable to insurance carriers and insurance cancellation reserves | 71,174 | 69,936 |
Accrued interest | 63,675 | 61,071 |
Repurchase reserves | 26,015 | 26,404 |
Payables to securitization trusts | 20,450 | 24,910 |
MSR purchases payable including advances | 9,702 | 21,851 |
Other | 170,675 | 307,388 |
Total payables and accrued liabilities | $ 1,139,400 | $ 1,296,387 |
Securitizations and Financing69
Securitizations and Financings - Assets and Liabilities of Consolidated VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | $ 1,740,770 | $ 1,852,682 |
Reverse Secured Borrowings, Assets, Carrying Amount | 6,460,756 | 6,582,555 |
Liabilities | 1,393,372 | 1,475,189 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 6,489,265 | 6,606,448 |
Residential Mortgage | Restricted Cash | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 107,176 | 94,361 |
Reverse Secured Borrowings, Assets, Carrying Amount | 24,962 | 36,089 |
Residential Mortgage | Reverse mortgage interests, net | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 0 | 0 |
Reverse Secured Borrowings, Assets, Carrying Amount | 6,435,794 | 6,546,466 |
Residential Mortgage | Advances | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 1,461,733 | 1,580,966 |
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 | 167,222 | 172,810 |
Reverse Secured Borrowings, Assets, Carrying Amount | 0 | 0 |
Residential Mortgage | Derivative financial instruments | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 0 | 7 |
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 | 4,639 | 4,538 |
Reverse Secured Borrowings, Assets, Carrying Amount | 0 | 0 |
Residential Mortgage | Advance Facilities | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 1,329,011 | 1,408,258 |
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 | 2,173 | 2,116 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 498 | 665 |
Residential Mortgage | Nonrecourse Debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 62,188 | 64,815 |
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 | 0 | 226,851 |
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 | 199,309 | 222,495 |
Residential Mortgage | Other Non-Recourse Debt | 2015-2 HECM Securitization | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 183,569 | 209,030 |
Residential Mortgage | Other Non-Recourse Debt | 2016-1 HECM Securitization | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 272,116 | 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 | $ 5,833,773 | $ 5,947,407 |
Securitizations and Financing70
Securitizations and Financings - Securitization Trusts (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Total collateral balances | $ 3,020,839 | $ 3,113,784 | |
Total certificate balances | 2,726,618 | 2,810,903 | |
Unconsolidated securitization trusts | 677,879 | $ 727,879 | |
Unconsolidated securitization trusts | $ 32,100 | $ 57,461 |
Securitizations and Financing71
Securitizations and Financings - Cash Flows from Securitization Trust (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Servicing Fees Received | $ 6,009 | $ 6,373 |
Loan Repurchases | $ 0 | $ 0 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | Mar. 15, 2016 | Mar. 31, 2016 | Feb. 11, 2016 | Feb. 09, 2016 | Dec. 17, 2015 |
Common Stock | |||||
Class of Stock [Line Items] | |||||
Amount authorized to be repurchased | $ 100,000,000 | $ 150,000,000 | |||
Additional amount authorized to be repurchased | $ 100,000,000 | ||||
Aggregate amount authorized to be repurchased | $ 250,000,000 | ||||
Number of shares repurchased (in shares) | 7,000 | 6,026,000 | |||
Purchase price per share (in dollars per share) | $ 9.40 | ||||
Certain Employees | RSUs | |||||
Class of Stock [Line Items] | |||||
Shares granted (in shares) | 1,470,000 | ||||
Compensation expense | $ 6,800,000 | ||||
Tranche One | Certain Employees | RSUs | |||||
Class of Stock [Line Items] | |||||
Vesting percentage | 33.30% | ||||
Tranche Two | Certain Employees | RSUs | |||||
Class of Stock [Line Items] | |||||
Vesting percentage | 33.30% | ||||
Tranche Three | Certain Employees | RSUs | |||||
Class of Stock [Line Items] | |||||
Vesting percentage | 33.40% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit | $ (82,265) | $ (27,525) |
Effective tax rate | 38.20% | 36.60% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal rate percentage | 35.00% | 35.00% |
Fair Value Measurements - Measu
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Mortgage servicing rights | $ 3,088,123 | $ 3,358,327 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 81,729 | 68,696 |
Excess spread financing (at fair value) | 1,161,270 | 1,232,086 |
Fair Value, Measurements, Recurring | ||
ASSETS | ||
Mortgage loans held for sale | 1,880,654 | |
Total assets | 5,077,945 | 4,887,717 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 81,729 | |
Excess spread financing | 1,161,270 | |
Excess spread financing (at fair value) | 1,200,000 | 1,200,000 |
Total liabilities | 1,263,834 | 1,306,605 |
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 | 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 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Mortgage loans held for sale | 1,880,654 | 1,429,691 |
Mortgage servicing rights | 0 | 0 |
Total assets | 1,989,822 | 1,529,390 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 0 | 0 |
Excess spread financing | 0 | 0 |
Excess spread financing (at fair value) | 0 | 0 |
Total liabilities | 20,835 | 5,823 |
Fair Value, Measurements, Recurring | Level 2 | Interest Rate Lock Commitments | ||
ASSETS | ||
Fair Value - Asset | 99,462 | 89,138 |
LIABILITIES | ||
Fair Value - Liability | 37 | 5 |
Fair Value, Measurements, Recurring | Level 2 | Forward Contracts | ||
ASSETS | ||
Fair Value - Asset | 346 | 6,123 |
LIABILITIES | ||
Fair Value - Liability | 19,540 | 3,746 |
Fair Value, Measurements, Recurring | Level 2 | Loan Purchase Commitments | ||
ASSETS | ||
Fair Value - Asset | 8,944 | 3,872 |
LIABILITIES | ||
Fair Value - Liability | 233 | 1,454 |
Fair Value, Measurements, Recurring | Level 2 | Interest Rate Swap | ||
ASSETS | ||
Fair Value - Asset | 405 | 506 |
LIABILITIES | ||
Fair Value - Liability | 431 | 542 |
Fair Value, Measurements, Recurring | Level 2 | Future | ||
ASSETS | ||
Fair Value - Asset | 11 | 60 |
LIABILITIES | ||
Fair Value - Liability | 594 | 76 |
Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Mortgage loans held for sale | 0 | 0 |
Mortgage servicing rights | 3,088,123 | 3,358,327 |
Total assets | 3,088,123 | 3,358,327 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 81,729 | 68,696 |
Excess spread financing | 1,161,270 | 1,232,086 |
Excess spread financing (at fair value) | 1,161,270 | 1,232,086 |
Total liabilities | 1,242,999 | 1,300,782 |
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 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | ||
ASSETS | ||
Mortgage loans held for sale | 1,429,691 | |
Mortgage servicing rights | 3,358,327 | |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | Interest Rate Lock Commitments | ||
ASSETS | ||
Fair Value - Asset | 89,138 | |
LIABILITIES | ||
Fair Value - Liability | 5 | |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | Forward Contracts | ||
ASSETS | ||
Fair Value - Asset | 6,123 | |
LIABILITIES | ||
Fair Value - Liability | 3,746 | |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | Loan Purchase Commitments | ||
ASSETS | ||
Fair Value - Asset | 3,872 | |
LIABILITIES | ||
Fair Value - Liability | 1,454 | |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | Interest Rate Swap | ||
ASSETS | ||
Fair Value - Asset | 506 | |
LIABILITIES | ||
Fair Value - Liability | 542 | |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | Future | ||
ASSETS | ||
Fair Value - Asset | 60 | |
LIABILITIES | ||
Fair Value - Liability | 76 | |
Derivative financial instruments | Fair Value, Measurements, Recurring | Interest Rate Lock Commitments | ||
ASSETS | ||
Fair Value - Asset | 99,462 | 89,138 |
Derivative financial instruments | Fair Value, Measurements, Recurring | Forward Contracts | ||
ASSETS | ||
Fair Value - Asset | 346 | 6,123 |
Derivative financial instruments | Fair Value, Measurements, Recurring | Loan Purchase Commitments | ||
ASSETS | ||
Fair Value - Asset | 8,944 | 3,872 |
Derivative financial instruments | Fair Value, Measurements, Recurring | Interest Rate Swap | ||
ASSETS | ||
Fair Value - Asset | 11 | 506 |
Derivative financial instruments | Fair Value, Measurements, Recurring | Future | ||
ASSETS | ||
Fair Value - Asset | 405 | 60 |
Derivative Liabilities | Fair Value, Measurements, Recurring | Interest Rate Lock Commitments | ||
LIABILITIES | ||
Fair Value - Liability | 37 | 5 |
Derivative Liabilities | Fair Value, Measurements, Recurring | Forward Contracts | ||
LIABILITIES | ||
Fair Value - Liability | 19,540 | 3,746 |
Derivative Liabilities | Fair Value, Measurements, Recurring | Loan Purchase Commitments | ||
LIABILITIES | ||
Fair Value - Liability | 233 | 1,454 |
Derivative Liabilities | Fair Value, Measurements, Recurring | Interest Rate Swap | ||
LIABILITIES | ||
Fair Value - Liability | 431 | 542 |
Derivative Liabilities | Fair Value, Measurements, Recurring | Future | ||
LIABILITIES | ||
Fair Value - Liability | $ 594 | $ 76 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Excess spread financing | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 1,232,086 | $ 1,031,035 | $ 1,031,035 |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Total gains or losses included in earnings | (23,699) | 25,631 | |
Purchases | 0 | 0 | |
Issuances | 0 | 385,637 | |
Sales | 0 | 0 | |
Settlements | (47,117) | (210,217) | |
Dispositions | 0 | 0 | |
Ending balance | 1,161,270 | 1,232,086 | |
Mortgage servicing rights financing | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 68,696 | 49,430 | 49,430 |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Total gains or losses included in earnings | 13,033 | 19,266 | |
Purchases | 0 | 0 | |
Issuances | 0 | 0 | |
Sales | 0 | 0 | |
Settlements | 0 | 0 | |
Dispositions | 0 | 0 | |
Ending balance | 81,729 | 68,696 | |
Mortgage servicing rights | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 3,358,327 | 2,949,739 | 2,949,739 |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Total gains or losses included in earnings | (292,889) | (496,990) | |
Purchases of servicing assets | 1,643 | 238,413 | 729,984 |
Servicing resulting from transfers of financial assets | 39,663 | 44,232 | 221,762 |
Sales | 0 | 0 | |
Settlements | 0 | 0 | |
Dispositions | (18,621) | $ 0 | (46,168) |
Ending balance | $ 3,088,123 | $ 3,358,327 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Restricted cash | $ 307,564 | $ 332,105 |
Reverse mortgage interests, net | 7,584,086 | 7,514,323 |
Total mortgage loans held for investment, net | 166,564 | 173,650 |
Derivative instruments | 109,168 | 99,699 |
Financial liabilities: | ||
Unsecured senior notes | 2,025,265 | 2,025,754 |
Advance facilities | 1,563,750 | 1,639,690 |
Warehouse facilities | 2,414,495 | 1,890,320 |
Mortgage servicing rights financing liability - fair value | 81,729 | 68,696 |
Derivative financial instruments | 20,835 | 5,823 |
Other nonrecourse debt | 6,545,196 | 6,666,040 |
Level 1 | ||
Financial assets: | ||
Advances, net | 0 | |
Level 2 | ||
Financial assets: | ||
Advances, net | 0 | |
Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Cash and cash equivalents | 460,951 | |
Restricted cash | 307,564 | |
Advances, net | 2,070,599 | |
Reverse mortgage interests, net | 7,584,086 | |
Mortgage loans held for sale | 1,880,654 | |
Total mortgage loans held for investment, net | 166,564 | |
Derivative instruments | 109,168 | |
Financial liabilities: | ||
Unsecured senior notes | 2,025,265 | |
Advance facilities | 1,563,750 | |
Warehouse facilities | 2,414,495 | |
Mortgage servicing rights financing liability - fair value | 81,729 | |
Derivative financial instruments | 20,835 | |
Excess spread financing | 1,161,270 | |
Fair Value, Measurements, Recurring | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 460,951 | 613,241 |
Restricted cash | 307,564 | 332,105 |
Advances, net | 0 | |
Reverse mortgage interests, net | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Total mortgage loans held for investment, net | 0 | 0 |
Derivative instruments | 0 | 0 |
Financial liabilities: | ||
Unsecured senior notes | 1,918,283 | 1,911,777 |
Advance facilities | 0 | 0 |
Warehouse facilities | 0 | 0 |
Mortgage servicing rights financing liability - fair value | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Excess spread financing | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Advances, net | 0 | |
Reverse mortgage interests, net | 0 | 0 |
Mortgage loans held for sale | 1,880,654 | 1,429,691 |
Total mortgage loans held for investment, net | 0 | 0 |
Derivative instruments | 109,168 | 99,699 |
Financial liabilities: | ||
Unsecured senior notes | 0 | 0 |
Advance facilities | 1,563,750 | 1,646,123 |
Warehouse facilities | 2,414,495 | 1,893,526 |
Mortgage servicing rights financing liability - fair value | 0 | 0 |
Derivative financial instruments | 20,835 | 5,823 |
Excess spread financing | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Advances, net | 2,070,599 | 2,223,083 |
Reverse mortgage interests, net | 7,624,696 | 7,705,475 |
Mortgage loans held for sale | 0 | 0 |
Total mortgage loans held for investment, net | 170,584 | 174,147 |
Derivative instruments | 0 | 0 |
Financial liabilities: | ||
Unsecured senior notes | 0 | 0 |
Advance facilities | 0 | 0 |
Warehouse facilities | 0 | 0 |
Mortgage servicing rights financing liability - fair value | 81,729 | 68,696 |
Derivative financial instruments | 0 | 0 |
Excess spread financing | 1,161,270 | 1,232,086 |
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 | 61,466 | 74,264 |
Participating Interest Financing | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Other nonrecourse debt | 5,833,773 | |
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 | 5,809,749 | 6,091,285 |
Participating Interest Financing | Fair Value, Measurements, Recurring | Level 3 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | 0 |
2014-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | |
2014-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 2 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | |
2014-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 3 | ||
Financial liabilities: | ||
Other nonrecourse debt | 298,048 | |
2015-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | 0 |
2015-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 2 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | 0 |
2015-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 3 | ||
Financial liabilities: | ||
Other nonrecourse debt | 208,201 | 275,223 |
2015-2 HECM Securitization | Fair Value, Measurements, Recurring | Level 1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | 0 |
2015-2 HECM Securitization | Fair Value, Measurements, Recurring | Level 2 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | 0 |
2015-2 HECM Securitization | Fair Value, Measurements, Recurring | Level 3 | ||
Financial liabilities: | ||
Other nonrecourse debt | 208,619 | 249,507 |
2016-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | |
2016-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 2 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | |
2016-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 3 | ||
Financial liabilities: | ||
Other nonrecourse debt | 290,125 | |
Reported Value Measurement | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Cash and cash equivalents | 613,241 | |
Restricted cash | 332,105 | |
Advances, net | 2,223,083 | |
Reverse mortgage interests, net | 7,514,323 | |
Mortgage loans held for sale | 1,429,691 | |
Total mortgage loans held for investment, net | 173,650 | |
Derivative instruments | 99,699 | |
Financial liabilities: | ||
Unsecured senior notes | 2,048,694 | |
Advance facilities | 1,646,123 | |
Warehouse facilities | 1,893,526 | |
Mortgage servicing rights financing liability - fair value | 68,696 | |
Derivative financial instruments | 5,823 | |
Excess spread financing | 1,232,086 | |
Reported Value Measurement | Legacy Asset | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Other nonrecourse debt | 62,188 | 64,815 |
Reported Value Measurement | Participating Interest Financing | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Other nonrecourse debt | 5,833,773 | 5,947,407 |
Reported Value Measurement | 2014-1 HECM Securitization | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | 226,851 |
Reported Value Measurement | 2015-1 HECM Securitization | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Other nonrecourse debt | 199,309 | 222,495 |
Reported Value Measurement | 2015-2 HECM Securitization | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Other nonrecourse debt | 183,569 | 209,030 |
Reported Value Measurement | 2016-1 HECM Securitization | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Other nonrecourse debt | $ 272,115 | $ 0 |
Capital Requirements - Narrativ
Capital Requirements - Narrative (Details) $ in Billions | Mar. 31, 2016USD ($) |
Mortgage Banking [Abstract] | |
Minimum Net Worth Required for Compliance | $ 1.2 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Feb. 28, 2013 | |
Loss Contingencies [Line Items] | ||||
Legal Fees | $ 13,100,000 | $ 7,300,000 | ||
Principal amount outstanding on mortgage servicing rights | 1,900,000,000 | |||
Regulatory settlement | ||||
Loss Contingencies [Line Items] | ||||
Settlement amount | $ 16,200,000 | |||
Reverse mortgage interests, net | ||||
Loss Contingencies [Line Items] | ||||
Principal amount outstanding on mortgage servicing rights | 29,000,000,000 | $ 29,900,000,000 | $ 83,100,000 | |
Unfunded advance obligations | 3,000,000,000 | |||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | 17,000,000 | |||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | $ 50,000,000 |
Business Segment Reporting - Fi
Business Segment Reporting - Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Revenues: | |||
Service related | $ 92,653 | $ 215,123 | |
Net gain on mortgage loans held for sale | 171,116 | 166,994 | |
Total revenues | 263,769 | 382,117 | |
Total expenses | 421,477 | 383,843 | |
Other income (expense): | |||
Interest income | 102,843 | 43,774 | |
Interest expense | (160,776) | (115,648) | |
Gain on repurchase of unsecured senior notes | 77 | 0 | |
Gain (loss) on interest rate swaps and caps | 8 | (767) | |
Total other income (expense) | (57,848) | (72,641) | |
Income (loss) before taxes | (215,556) | (74,367) | |
Depreciation and amortization | 23,144 | 18,119 | |
Total assets | 16,551,524 | 12,642,368 | $ 16,617,433 |
Eliminations | |||
Revenues: | |||
Service related | 0 | (222) | |
Net gain on mortgage loans held for sale | 0 | 0 | |
Total revenues | 0 | (222) | |
Total expenses | 0 | 0 | |
Other income (expense): | |||
Interest income | 0 | 222 | |
Interest expense | 0 | 0 | |
Gain on repurchase of unsecured senior notes | 0 | ||
Gain (loss) on interest rate swaps and caps | 0 | 0 | |
Total other income (expense) | 0 | 222 | |
Income (loss) before taxes | 0 | 0 | |
Depreciation and amortization | 0 | 0 | |
Total assets | 0 | 0 | |
Operating Segments | |||
Revenues: | |||
Service related | 92,349 | 214,848 | |
Net gain on mortgage loans held for sale | 171,104 | 165,294 | |
Total revenues | 263,453 | 380,142 | |
Total expenses | 399,188 | 362,034 | |
Other income (expense): | |||
Interest income | 99,197 | 39,906 | |
Interest expense | (120,008) | (72,395) | |
Gain on repurchase of unsecured senior notes | 0 | ||
Gain (loss) on interest rate swaps and caps | (7) | (801) | |
Total other income (expense) | (20,818) | (33,290) | |
Income (loss) before taxes | (156,553) | (15,182) | |
Depreciation and amortization | 14,755 | 12,934 | |
Total assets | 17,370,542 | 11,621,988 | |
Servicing Segment | |||
Revenues: | |||
Service related | (24,351) | 99,997 | |
Net gain on mortgage loans held for sale | 23,161 | 14,013 | |
Total revenues | (1,190) | 114,010 | |
Total expenses | 184,356 | 182,397 | |
Other income (expense): | |||
Interest income | 84,633 | 24,639 | |
Interest expense | (106,841) | (57,974) | |
Gain on repurchase of unsecured senior notes | 0 | ||
Gain (loss) on interest rate swaps and caps | (7) | (801) | |
Total other income (expense) | (22,215) | (34,136) | |
Income (loss) before taxes | (207,761) | (102,523) | |
Depreciation and amortization | 6,189 | 5,870 | |
Total assets | 12,760,129 | 9,420,014 | |
Originations Segment | |||
Revenues: | |||
Service related | 15,267 | 7,065 | |
Net gain on mortgage loans held for sale | 147,943 | 151,281 | |
Total revenues | 163,210 | 158,346 | |
Total expenses | 124,838 | 100,249 | |
Other income (expense): | |||
Interest income | 14,561 | 15,267 | |
Interest expense | (13,142) | (14,386) | |
Gain on repurchase of unsecured senior notes | 0 | ||
Gain (loss) on interest rate swaps and caps | 0 | 0 | |
Total other income (expense) | 1,419 | 881 | |
Income (loss) before taxes | 39,791 | 58,978 | |
Depreciation and amortization | 2,632 | 3,700 | |
Total assets | 4,303,766 | 1,965,961 | |
Xome | |||
Revenues: | |||
Service related | 101,433 | 107,786 | |
Net gain on mortgage loans held for sale | 0 | 0 | |
Total revenues | 101,433 | 107,786 | |
Total expenses | 89,994 | 79,388 | |
Other income (expense): | |||
Interest income | 3 | 0 | |
Interest expense | (25) | (35) | |
Gain on repurchase of unsecured senior notes | 0 | ||
Gain (loss) on interest rate swaps and caps | 0 | 0 | |
Total other income (expense) | (22) | (35) | |
Income (loss) before taxes | 11,417 | 28,363 | |
Depreciation and amortization | 5,934 | 3,364 | |
Total assets | 306,647 | 236,013 | |
Corporate and Other | |||
Revenues: | |||
Service related | 304 | 497 | |
Net gain on mortgage loans held for sale | 12 | 1,700 | |
Total revenues | 316 | 2,197 | |
Total expenses | 22,289 | 21,809 | |
Other income (expense): | |||
Interest income | 3,646 | 3,646 | |
Interest expense | (40,768) | (43,253) | |
Gain on repurchase of unsecured senior notes | 77 | ||
Gain (loss) on interest rate swaps and caps | 15 | 34 | |
Total other income (expense) | (37,030) | (39,573) | |
Income (loss) before taxes | (59,003) | (59,185) | |
Depreciation and amortization | 8,389 | 5,185 | |
Total assets | $ (819,018) | $ 1,020,380 |
Guarantor Financial Statement81
Guarantor Financial Statement Information - Narrative (Details) $ in Thousands | Mar. 31, 2016USD ($)subsidiary | Dec. 31, 2015USD ($) |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||
Unsecured senior notes | $ | $ 2,025,265 | $ 2,025,754 |
Guarantor Subsidiary, Ownership Percentage | 100.00% | |
Number of Subsidiaries as Guarantors of Unsecured Debt | subsidiary | 2 |
Guarantor Financial Statement82
Guarantor Financial Statement Information - Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | |||||
Cash and cash equivalents | $ 460,951 | $ 613,241 | $ 815,776 | $ 299,002 | $ 815,776 |
Restricted cash | 307,564 | 332,105 | |||
Mortgage servicing rights | 3,096,084 | 3,366,973 | |||
Advances, net | 2,070,599 | 2,223,083 | |||
Reverse mortgage interests | 7,584,086 | 7,514,323 | |||
Mortgage loans held for sale | 1,880,654 | 1,429,691 | 1,995,998 | 1,277,931 | |
Total mortgage loans held for investment, net | 166,564 | 173,650 | |||
Property and equipment, net | 142,155 | 142,836 | |||
Derivative financial instruments | 109,168 | 99,699 | |||
Other assets | 733,699 | 721,832 | |||
Investment in subsidiaries | 0 | 0 | |||
Total assets | 16,551,524 | 16,617,433 | 12,642,368 | ||
Liabilities and shareholders' equity | |||||
Unsecured senior notes | 2,025,265 | 2,025,754 | |||
Advance facilities | 1,563,750 | 1,639,690 | |||
Warehouse facilities | 2,414,495 | 1,890,320 | |||
Payables and accrued liabilities | 1,139,400 | 1,296,387 | |||
MSR related liabilities - nonrecourse | 1,242,999 | 1,300,782 | |||
Mortgage servicing liabilities | 18,065 | 25,260 | |||
Derivative financial instruments | 20,835 | 5,823 | |||
Other nonrecourse debt | 6,545,196 | 6,666,040 | |||
Payables to affiliates | 0 | 0 | |||
Total liabilities | 14,970,005 | 14,850,056 | |||
Total equity | 1,581,519 | 1,767,377 | 1,675,611 | 1,224,278 | |
Total liabilities and equity | 16,551,524 | 16,617,433 | |||
Eliminations | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Restricted cash | 0 | 0 | |||
Mortgage servicing rights | 0 | 0 | |||
Advances, net | 0 | 0 | |||
Reverse mortgage interests | 0 | 0 | |||
Mortgage loans held for sale | 0 | 0 | |||
Total mortgage loans held for investment, net | 0 | 0 | |||
Property and equipment, net | 0 | 0 | |||
Derivative financial instruments | 0 | 0 | |||
Other assets | (1,554,602) | (1,881,271) | |||
Investment in subsidiaries | (2,211,331) | (2,277,794) | |||
Total assets | (3,765,933) | (4,159,065) | |||
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 | |||
Mortgage servicing liabilities | 0 | 0 | |||
Derivative financial instruments | 0 | 0 | |||
Other nonrecourse debt | 0 | 0 | |||
Payables to affiliates | (1,554,602) | (1,881,271) | |||
Total liabilities | (1,554,602) | (1,881,271) | |||
Total equity | (2,211,331) | (2,277,794) | |||
Total liabilities and equity | (3,765,933) | (4,159,065) | |||
Nationstar | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Restricted cash | 0 | 0 | |||
Mortgage servicing rights | 0 | 0 | |||
Advances, net | 0 | 0 | |||
Reverse mortgage interests | 0 | 0 | |||
Mortgage loans held for sale | 0 | 0 | |||
Total mortgage loans held for investment, net | 0 | 0 | |||
Property and equipment, net | 0 | 0 | |||
Derivative financial instruments | 0 | 0 | |||
Other assets | (57,595) | 3,444 | |||
Investment in subsidiaries | 1,639,114 | 1,768,319 | |||
Total assets | 1,581,519 | 1,771,763 | |||
Liabilities and shareholders' equity | |||||
Unsecured senior notes | 0 | 0 | |||
Advance facilities | 0 | 0 | |||
Warehouse facilities | 0 | 0 | |||
Payables and accrued liabilities | 0 | 4,386 | |||
MSR related liabilities - nonrecourse | 0 | 0 | |||
Mortgage servicing liabilities | 0 | 0 | |||
Derivative financial instruments | 0 | 0 | |||
Other nonrecourse debt | 0 | 0 | |||
Payables to affiliates | 0 | 0 | |||
Total liabilities | 0 | 4,386 | |||
Total equity | 1,581,519 | 1,767,377 | |||
Total liabilities and equity | 1,581,519 | 1,771,763 | |||
Issuer (Parent) | |||||
Assets | |||||
Cash and cash equivalents | 426,150 | 597,303 | 786,154 | 279,770 | |
Restricted cash | 172,453 | 198,726 | |||
Mortgage servicing rights | 3,096,084 | 3,366,973 | |||
Advances, net | 2,070,537 | 2,223,039 | |||
Reverse mortgage interests | 6,901,208 | 6,832,186 | |||
Mortgage loans held for sale | 1,816,028 | 1,304,219 | |||
Total mortgage loans held for investment, net | (658) | 840 | |||
Property and equipment, net | 113,745 | 113,228 | |||
Derivative financial instruments | 105,527 | 96,181 | |||
Other assets | 603,109 | 799,567 | |||
Investment in subsidiaries | 572,217 | 509,475 | |||
Total assets | 15,876,400 | 16,041,737 | |||
Liabilities and shareholders' equity | |||||
Unsecured senior notes | 2,025,265 | 2,025,754 | |||
Advance facilities | 234,739 | 231,432 | |||
Warehouse facilities | 2,361,190 | 1,782,060 | |||
Payables and accrued liabilities | 1,077,109 | 1,222,268 | |||
MSR related liabilities - nonrecourse | 1,242,999 | 1,300,782 | |||
Mortgage servicing liabilities | 18,065 | 25,260 | |||
Derivative financial instruments | 20,835 | 5,823 | |||
Other nonrecourse debt | 5,828,015 | 5,942,849 | |||
Payables to affiliates | 1,429,069 | 1,737,190 | |||
Total liabilities | 14,237,286 | 14,273,418 | |||
Total equity | 1,639,114 | 1,768,319 | |||
Total liabilities and equity | 15,876,400 | 16,041,737 | |||
Guarantor (Subsidiaries) | |||||
Assets | |||||
Cash and cash equivalents | 758 | 558 | 752 | 288 | |
Restricted cash | 3 | 3 | |||
Mortgage servicing rights | 0 | 0 | |||
Advances, net | 0 | 0 | |||
Reverse mortgage interests | 0 | 0 | |||
Mortgage loans held for sale | 0 | 0 | |||
Total mortgage loans held for investment, net | 0 | 0 | |||
Property and equipment, net | 865 | 868 | |||
Derivative financial instruments | 0 | 0 | |||
Other assets | 311,701 | 303,452 | |||
Investment in subsidiaries | 0 | 0 | |||
Total assets | 313,327 | 304,881 | |||
Liabilities and shareholders' equity | |||||
Unsecured senior notes | 0 | 0 | |||
Advance facilities | 0 | 0 | |||
Warehouse facilities | 0 | 0 | |||
Payables and accrued liabilities | 2,878 | 927 | |||
MSR related liabilities - nonrecourse | 0 | 0 | |||
Mortgage servicing liabilities | 0 | 0 | |||
Derivative financial instruments | 0 | 0 | |||
Other nonrecourse debt | 0 | 0 | |||
Payables to affiliates | 4,731 | 1,031 | |||
Total liabilities | 7,609 | 1,958 | |||
Total equity | 305,718 | 302,923 | |||
Total liabilities and equity | 313,327 | 304,881 | |||
Non-Guarantor (Subsidiaries) | |||||
Assets | |||||
Cash and cash equivalents | 34,043 | 15,380 | $ 28,870 | $ 18,944 | |
Restricted cash | 135,108 | 133,376 | |||
Mortgage servicing rights | 0 | 0 | |||
Advances, net | 62 | 44 | |||
Reverse mortgage interests | 682,878 | 682,137 | |||
Mortgage loans held for sale | 64,626 | 125,472 | |||
Total mortgage loans held for investment, net | 167,222 | 172,810 | |||
Property and equipment, net | 27,545 | 28,740 | |||
Derivative financial instruments | 3,641 | 3,518 | |||
Other assets | 1,431,086 | 1,496,640 | |||
Investment in subsidiaries | 0 | 0 | |||
Total assets | 2,546,211 | 2,658,117 | |||
Liabilities and shareholders' equity | |||||
Unsecured senior notes | 0 | 0 | |||
Advance facilities | 1,329,011 | 1,408,258 | |||
Warehouse facilities | 53,305 | 108,260 | |||
Payables and accrued liabilities | 59,413 | 68,806 | |||
MSR related liabilities - nonrecourse | 0 | 0 | |||
Mortgage servicing liabilities | 0 | 0 | |||
Derivative financial instruments | 0 | 0 | |||
Other nonrecourse debt | 717,181 | 723,191 | |||
Payables to affiliates | 120,802 | 143,050 | |||
Total liabilities | 2,279,712 | 2,451,565 | |||
Total equity | 266,499 | 206,552 | |||
Total liabilities and equity | $ 2,546,211 | $ 2,658,117 |
Guarantor Financial Statement83
Guarantor Financial Statement Information - Consolidating Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues: | ||
Service related | $ 92,653 | $ 215,123 |
Net gain on mortgage loans held for sale | 171,116 | 166,994 |
Total revenues | 263,769 | 382,117 |
Expenses: | ||
Salaries, wages and benefits | 197,362 | 178,755 |
General and administrative | 224,115 | 205,088 |
Total expenses | 421,477 | 383,843 |
Other income (expenses): | ||
Interest income | 102,843 | 43,774 |
Interest expense | (160,776) | (115,648) |
Gain on repurchase of unsecured senior notes | 77 | |
Gain/(Loss) on interest rate swaps and caps | 8 | (767) |
Gain (loss) from subsidiaries | 0 | 0 |
Total other expenses, net | (57,848) | (72,641) |
Income (loss) before taxes | (215,556) | (74,367) |
Income tax (benefit) expense | (82,265) | (27,525) |
Net income (loss) | (133,291) | (46,842) |
Less: Net gain (loss) attributable to noncontrolling interests | (902) | 1,473 |
Net income (loss) excluding noncontrolling interests | (132,389) | (48,315) |
Eliminations | ||
Revenues: | ||
Service related | 0 | (222) |
Net gain on mortgage loans held for sale | 0 | 0 |
Total revenues | 0 | (222) |
Expenses: | ||
Salaries, wages and benefits | 0 | 0 |
General and administrative | 0 | 0 |
Total expenses | 0 | 0 |
Other income (expenses): | ||
Interest income | 0 | 222 |
Interest expense | 0 | 0 |
Gain on repurchase of unsecured senior notes | 0 | |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 |
Gain (loss) from subsidiaries | 129,433 | 25,106 |
Total other expenses, net | 129,433 | 25,328 |
Income (loss) before taxes | 129,433 | 25,106 |
Income tax (benefit) expense | 0 | 0 |
Net income (loss) | 129,433 | 25,106 |
Less: Net gain (loss) attributable to noncontrolling interests | 0 | 0 |
Net income (loss) excluding noncontrolling interests | 129,433 | 25,106 |
Nationstar | ||
Revenues: | ||
Service related | 0 | 0 |
Net gain on mortgage loans held for sale | 0 | 0 |
Total revenues | 0 | 0 |
Expenses: | ||
Salaries, wages and benefits | 0 | 0 |
General and administrative | 0 | 0 |
Total expenses | 0 | 0 |
Other income (expenses): | ||
Interest income | 0 | 0 |
Interest expense | 0 | 0 |
Gain on repurchase of unsecured senior notes | 0 | |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 |
Gain (loss) from subsidiaries | (132,389) | (48,315) |
Total other expenses, net | (132,389) | (48,315) |
Income (loss) before taxes | (132,389) | (48,315) |
Income tax (benefit) expense | 0 | 0 |
Net income (loss) | (132,389) | (48,315) |
Less: Net gain (loss) attributable to noncontrolling interests | 0 | 0 |
Net income (loss) excluding noncontrolling interests | (132,389) | (48,315) |
Issuer (Parent) | ||
Revenues: | ||
Service related | (16,999) | 102,179 |
Net gain on mortgage loans held for sale | 162,566 | 156,847 |
Total revenues | 145,567 | 259,026 |
Expenses: | ||
Salaries, wages and benefits | 144,238 | 128,433 |
General and administrative | 169,535 | 164,532 |
Total expenses | 313,773 | 292,965 |
Other income (expenses): | ||
Interest income | 91,080 | 36,120 |
Interest expense | (141,576) | (99,867) |
Gain on repurchase of unsecured senior notes | 77 | |
Gain/(Loss) on interest rate swaps and caps | 15 | 34 |
Gain (loss) from subsidiaries | 2,956 | 23,209 |
Total other expenses, net | (47,448) | (40,504) |
Income (loss) before taxes | (215,654) | (74,443) |
Income tax (benefit) expense | (82,265) | (27,525) |
Net income (loss) | (133,389) | (46,918) |
Less: Net gain (loss) attributable to noncontrolling interests | (1,000) | 1,397 |
Net income (loss) excluding noncontrolling interests | (132,389) | (48,315) |
Guarantor (Subsidiaries) | ||
Revenues: | ||
Service related | 7,072 | (345) |
Net gain on mortgage loans held for sale | 0 | 0 |
Total revenues | 7,072 | (345) |
Expenses: | ||
Salaries, wages and benefits | 1,162 | 354 |
General and administrative | 3,115 | 50 |
Total expenses | 4,277 | 404 |
Other income (expenses): | ||
Interest income | 0 | 0 |
Interest expense | 0 | 0 |
Gain on repurchase of unsecured senior notes | 0 | |
Gain/(Loss) on interest rate swaps and caps | 0 | 0 |
Gain (loss) from subsidiaries | 0 | 0 |
Total other expenses, net | 0 | 0 |
Income (loss) before taxes | 2,795 | (749) |
Income tax (benefit) expense | 0 | 0 |
Net income (loss) | 2,795 | (749) |
Less: Net gain (loss) attributable to noncontrolling interests | 0 | 0 |
Net income (loss) excluding noncontrolling interests | 2,795 | (749) |
Non-Guarantor (Subsidiaries) | ||
Revenues: | ||
Service related | 102,580 | 113,511 |
Net gain on mortgage loans held for sale | 8,550 | 10,147 |
Total revenues | 111,130 | 123,658 |
Expenses: | ||
Salaries, wages and benefits | 51,962 | 49,968 |
General and administrative | 51,465 | 40,506 |
Total expenses | 103,427 | 90,474 |
Other income (expenses): | ||
Interest income | 11,763 | 7,432 |
Interest expense | (19,200) | (15,781) |
Gain on repurchase of unsecured senior notes | 0 | |
Gain/(Loss) on interest rate swaps and caps | (7) | (801) |
Gain (loss) from subsidiaries | 0 | 0 |
Total other expenses, net | (7,444) | (9,150) |
Income (loss) before taxes | 259 | 24,034 |
Income tax (benefit) expense | 0 | 0 |
Net income (loss) | 259 | 24,034 |
Less: Net gain (loss) attributable to noncontrolling interests | 98 | 76 |
Net income (loss) excluding noncontrolling interests | $ 161 | $ 23,958 |
Guarantor Financial Statement84
Guarantor Financial Statement Information - Consolidating Statements of Cash Flow (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities | ||
Net income (loss) | $ (132,389,000) | $ (48,315,000) |
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: | ||
Noncontrolling interest | (902,000) | 1,473,000 |
(Gain) loss from subsidiaries | 0 | 0 |
Share-based compensation | 6,843,000 | 5,524,000 |
Gain on repurchase of unsecured senior notes | (77,000) | |
Excess tax deficiency (benefit) from share-based compensation | 2,795,000 | (1,095,000) |
Net (gain) loss on mortgage loans held for sale | (171,116,000) | (166,994,000) |
Mortgage loans originated and purchased, net of fees | (4,240,116,000) | (4,209,078,000) |
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | (486,124,000) | (405,893,000) |
Proceeds on sale of and payments of mortgage loans held for sale | 4,377,242,000 | 4,003,126,000 |
(Gain) loss on derivatives including ineffectiveness | (8,000) | 767,000 |
Depreciation and amortization | 23,144,000 | 18,119,000 |
Amortization (accretion) of premiums (discounts) | 9,878,000 | (7,062,000) |
Fair value changes in excess spread financing | (23,699,000) | 13,114,000 |
Fair value changes and amortization/accretion of mortgage servicing rights | 286,378,000 | 204,200,000 |
Fair value change in mortgage servicing rights financing liability | 13,033,000 | (4,386,000) |
Changes in assets and liabilities: | ||
Advances | 152,484,000 | 95,436,000 |
Reverse mortgage interests | (14,998,000) | (180,793,000) |
Other assets | 26,111,000 | 18,677,000 |
Payables and accrued liabilities | (159,895,000) | 2,873,000 |
Net cash attributable to operating activities | (331,416,000) | (660,307,000) |
Investing Activities | ||
Property and equipment additions, net of disposals | (13,104,000) | (11,993,000) |
Purchase of forward mortgage servicing rights, net of liabilities incurred | (1,530,000) | (196,081,000) |
Purchase of reverse mortgage interests | (55,215,000) | 0 |
Proceeds from sale of forward mortgage servicing rights | 18,361,000 | 0 |
Proceeds on sale of reverse mortgage interest | 450,000 | 0 |
Acquisitions, net | 0 | (31,276,000) |
Net cash attributable to investing activities | (51,038,000) | (239,350,000) |
Financing Activities | ||
Transfers (to) from restricted cash, net | 24,541,000 | (73,012,000) |
Issuance of common stock, net of issuance costs | 0 | 497,758,000 |
Debt financing costs | (2,497,000) | (1,549,000) |
Increase/(decrease) in advance facilities | (79,048,000) | (18,471,000) |
Increase/(decrease) in warehouse facilities | 522,893,000 | 904,850,000 |
Proceeds from HECM securitizations | 281,680,000 | 73,082,000 |
Repayment of HECM securitizations | (285,985,000) | (26,829,000) |
Issuance of excess spread financing | 0 | 52,957,000 |
Repayment of excess spread financing | (47,117,000) | (49,516,000) |
Increase (decrease) in participating interest financing in reverse mortgage interests | (120,362,000) | 64,781,000 |
Repayment of nonrecourse debt–legacy assets | (3,056,000) | (3,273,000) |
Repurchase of unsecured senior notes | (1,475,000) | 0 |
Excess tax (deficiency) benefit from share-based compensation | (2,795,000) | 1,095,000 |
Redemption of shares relating to stock vesting | (1,564,000) | (5,442,000) |
Repurchase of treasury shares | (55,051,000) | 0 |
Net cash attributable to financing activities | 230,164,000 | 1,416,431,000 |
Net increase (decrease) in cash and cash equivalents | (152,290,000) | 516,774,000 |
Cash and cash equivalents at beginning of period | 613,241,000 | 299,002,000 |
Cash and cash equivalents at end of period | 460,951,000 | 815,776,000 |
Eliminations | ||
Operating activities | ||
Net income (loss) | 129,433,000 | 25,106,000 |
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: | ||
Noncontrolling interest | 0 | 0 |
(Gain) loss from subsidiaries | (129,433,000) | (25,106,000) |
Share-based compensation | 0 | 0 |
Gain on repurchase of unsecured senior notes | 0 | |
Excess tax deficiency (benefit) from share-based compensation | 0 | 0 |
Net (gain) loss on mortgage loans held for sale | 0 | 0 |
Mortgage loans originated and purchased, net of fees | 0 | 0 |
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 |
Depreciation and amortization | 0 | 0 |
Amortization (accretion) of premiums (discounts) | 0 | 0 |
Fair value changes in excess spread financing | 0 | 0 |
Fair value changes and amortization/accretion of mortgage servicing rights | 0 | 0 |
Fair value change in mortgage servicing rights financing liability | 0 | 0 |
Changes in assets and liabilities: | ||
Advances | 0 | 0 |
Reverse mortgage interests | 0 | 0 |
Other assets | 0 | 0 |
Payables and accrued liabilities | 0 | 0 |
Net cash attributable to operating activities | 0 | 0 |
Investing Activities | ||
Property and equipment additions, net of disposals | 0 | 0 |
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 |
Purchase of reverse mortgage interests | 0 | |
Proceeds from sale of forward mortgage servicing rights | 0 | |
Proceeds on sale of reverse mortgage interest | 0 | |
Acquisitions, net | 0 | |
Net cash attributable to investing activities | 0 | 0 |
Financing Activities | ||
Transfers (to) from restricted cash, net | 0 | 0 |
Issuance of common stock, net of issuance costs | 0 | |
Debt financing costs | 0 | 0 |
Increase/(decrease) in advance facilities | 0 | 0 |
Increase/(decrease) in warehouse facilities | 0 | 0 |
Proceeds from HECM securitizations | 0 | 0 |
Repayment of HECM securitizations | 0 | 0 |
Issuance of excess spread financing | 0 | |
Repayment of excess spread financing | 0 | 0 |
Increase (decrease) in participating interest financing in reverse mortgage interests | 0 | 0 |
Repayment of nonrecourse debt–legacy assets | 0 | 0 |
Repurchase of unsecured senior notes | 0 | |
Excess tax (deficiency) benefit from share-based compensation | 0 | 0 |
Redemption of shares relating to stock vesting | 0 | 0 |
Repurchase of treasury shares | 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 |
Cash and cash equivalents at end of period | 0 | 0 |
Nationstar | ||
Operating activities | ||
Net income (loss) | (132,389,000) | (48,315,000) |
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: | ||
Noncontrolling interest | 0 | 0 |
(Gain) loss from subsidiaries | 132,389,000 | 48,315,000 |
Share-based compensation | 0 | 0 |
Gain on repurchase of unsecured senior notes | 0 | |
Excess tax deficiency (benefit) from share-based compensation | 0 | 0 |
Net (gain) loss on mortgage loans held for sale | 0 | 0 |
Mortgage loans originated and purchased, net of fees | 0 | 0 |
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 |
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 | 56,615,000 | 5,442,000 |
Payables and accrued liabilities | 0 | 0 |
Net cash attributable to operating activities | 56,615,000 | 5,442,000 |
Investing Activities | ||
Property and equipment additions, net of disposals | 0 | 0 |
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 |
Purchase of reverse mortgage interests | 0 | |
Proceeds from sale of forward mortgage servicing rights | 0 | |
Proceeds on sale of reverse mortgage interest | 0 | |
Acquisitions, net | 0 | |
Net cash attributable to investing activities | 0 | 0 |
Financing Activities | ||
Transfers (to) from restricted cash, net | 0 | 0 |
Issuance of common stock, net of issuance costs | 0 | |
Debt financing costs | 0 | 0 |
Increase/(decrease) in advance facilities | 0 | 0 |
Increase/(decrease) in warehouse facilities | 0 | 0 |
Proceeds from HECM securitizations | 0 | 0 |
Repayment of HECM securitizations | 0 | 0 |
Issuance of excess spread financing | 0 | |
Repayment of excess spread financing | 0 | 0 |
Increase (decrease) in participating interest financing in reverse mortgage interests | 0 | 0 |
Repayment of nonrecourse debt–legacy assets | 0 | 0 |
Repurchase of unsecured senior notes | 0 | |
Excess tax (deficiency) benefit from share-based compensation | 0 | 0 |
Redemption of shares relating to stock vesting | (1,564,000) | (5,442,000) |
Repurchase of treasury shares | (55,051,000) | |
Net cash attributable to financing activities | (56,615,000) | (5,442,000) |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Issuer (Parent) | ||
Operating activities | ||
Net income (loss) | (132,389,000) | (48,315,000) |
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: | ||
Noncontrolling interest | (1,000,000) | 1,473,000 |
(Gain) loss from subsidiaries | (2,956,000) | (23,209,000) |
Share-based compensation | 4,857,000 | 5,524,000 |
Gain on repurchase of unsecured senior notes | (77,000) | |
Excess tax deficiency (benefit) from share-based compensation | 2,795,000 | (1,095,000) |
Net (gain) loss on mortgage loans held for sale | (162,566,000) | (156,847,000) |
Mortgage loans originated and purchased, net of fees | (4,006,685,000) | (4,209,078,000) |
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | (486,124,000) | (405,893,000) |
Proceeds on sale of and payments of mortgage loans held for sale | 4,071,502,000 | 3,998,101,000 |
(Gain) loss on derivatives including ineffectiveness | (15,000) | (34,000) |
Depreciation and amortization | 17,210,000 | 14,758,000 |
Amortization (accretion) of premiums (discounts) | 5,982,000 | (6,759,000) |
Fair value changes in excess spread financing | (23,699,000) | 13,114,000 |
Fair value changes and amortization/accretion of mortgage servicing rights | 286,378,000 | 204,200,000 |
Fair value change in mortgage servicing rights financing liability | 13,033,000 | (4,386,000) |
Changes in assets and liabilities: | ||
Advances | 152,502,000 | 93,149,000 |
Reverse mortgage interests | (14,257,000) | (258,916,000) |
Other assets | (125,563,000) | 379,162,000 |
Payables and accrued liabilities | (152,453,000) | 7,233,000 |
Net cash attributable to operating activities | (553,525,000) | (397,818,000) |
Investing Activities | ||
Property and equipment additions, net of disposals | (9,768,000) | (7,243,000) |
Purchase of forward mortgage servicing rights, net of liabilities incurred | (1,530,000) | (196,081,000) |
Purchase of reverse mortgage interests | (55,215,000) | |
Proceeds from sale of forward mortgage servicing rights | 18,361,000 | |
Proceeds on sale of reverse mortgage interest | 450,000 | |
Acquisitions, net | 0 | |
Net cash attributable to investing activities | (47,702,000) | (203,324,000) |
Financing Activities | ||
Transfers (to) from restricted cash, net | 26,273,000 | (24,925,000) |
Issuance of common stock, net of issuance costs | 497,758,000 | |
Debt financing costs | (2,497,000) | (1,549,000) |
Increase/(decrease) in advance facilities | 199,000 | (332,696,000) |
Increase/(decrease) in warehouse facilities | 577,848,000 | 899,756,000 |
Proceeds from HECM securitizations | 0 | 0 |
Repayment of HECM securitizations | 0 | 0 |
Issuance of excess spread financing | 52,957,000 | |
Repayment of excess spread financing | (47,117,000) | (49,516,000) |
Increase (decrease) in participating interest financing in reverse mortgage interests | (120,362,000) | 64,781,000 |
Repayment of nonrecourse debt–legacy assets | 0 | (135,000) |
Repurchase of unsecured senior notes | (1,475,000) | |
Excess tax (deficiency) benefit from share-based compensation | (2,795,000) | 1,095,000 |
Redemption of shares relating to stock vesting | 0 | 0 |
Repurchase of treasury shares | 0 | |
Net cash attributable to financing activities | 430,074,000 | 1,107,526,000 |
Net increase (decrease) in cash and cash equivalents | (171,153,000) | 506,384,000 |
Cash and cash equivalents at beginning of period | 597,303,000 | 279,770,000 |
Cash and cash equivalents at end of period | 426,150,000 | 786,154,000 |
Guarantor (Subsidiaries) | ||
Operating activities | ||
Net income (loss) | 2,795,000 | (749,000) |
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: | ||
Noncontrolling interest | 0 | 0 |
(Gain) loss from subsidiaries | 0 | 0 |
Share-based compensation | 20,000 | 0 |
Gain on repurchase of unsecured senior notes | 0 | |
Excess tax deficiency (benefit) from share-based compensation | 0 | 0 |
Net (gain) loss on mortgage loans held for sale | 0 | 0 |
Mortgage loans originated and purchased, net of fees | 0 | 0 |
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 |
Depreciation and amortization | 0 | 0 |
Amortization (accretion) of premiums (discounts) | 0 | 0 |
Fair value changes in excess spread financing | 0 | 0 |
Fair value changes and amortization/accretion of mortgage servicing rights | 0 | 0 |
Fair value change in mortgage servicing rights financing liability | 0 | 0 |
Changes in assets and liabilities: | ||
Advances | 0 | 0 |
Reverse mortgage interests | 0 | 0 |
Other assets | (4,569,000) | 1,199,000 |
Payables and accrued liabilities | 1,951,000 | 14,000 |
Net cash attributable to operating activities | 197,000 | 464,000 |
Investing Activities | ||
Property and equipment additions, net of disposals | 3,000 | 0 |
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 |
Purchase of reverse mortgage interests | 0 | |
Proceeds from sale of forward mortgage servicing rights | 0 | |
Proceeds on sale of reverse mortgage interest | 0 | |
Acquisitions, net | 0 | |
Net cash attributable to investing activities | 3,000 | 0 |
Financing Activities | ||
Transfers (to) from restricted cash, net | 0 | 0 |
Issuance of common stock, net of issuance costs | 0 | |
Debt financing costs | 0 | 0 |
Increase/(decrease) in advance facilities | 0 | 0 |
Increase/(decrease) in warehouse facilities | 0 | 0 |
Proceeds from HECM securitizations | 0 | 0 |
Repayment of HECM securitizations | 0 | 0 |
Issuance of excess spread financing | 0 | |
Repayment of excess spread financing | 0 | 0 |
Increase (decrease) in participating interest financing in reverse mortgage interests | 0 | 0 |
Repayment of nonrecourse debt–legacy assets | 0 | 0 |
Repurchase of unsecured senior notes | 0 | |
Excess tax (deficiency) benefit from share-based compensation | 0 | 0 |
Redemption of shares relating to stock vesting | 0 | 0 |
Repurchase of treasury shares | 0 | |
Net cash attributable to financing activities | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 200,000 | 464,000 |
Cash and cash equivalents at beginning of period | 558,000 | 288,000 |
Cash and cash equivalents at end of period | 758,000 | 752,000 |
Non-Guarantor (Subsidiaries) | ||
Operating activities | ||
Net income (loss) | 161,000 | 23,958,000 |
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: | ||
Noncontrolling interest | 98,000 | 0 |
(Gain) loss from subsidiaries | 0 | 0 |
Share-based compensation | 1,966,000 | 0 |
Gain on repurchase of unsecured senior notes | 0 | |
Excess tax deficiency (benefit) from share-based compensation | 0 | 0 |
Net (gain) loss on mortgage loans held for sale | (8,550,000) | (10,147,000) |
Mortgage loans originated and purchased, net of fees | (233,431,000) | 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 | 305,740,000 | 5,025,000 |
(Gain) loss on derivatives including ineffectiveness | 7,000 | 801,000 |
Depreciation and amortization | 5,934,000 | 3,361,000 |
Amortization (accretion) of premiums (discounts) | 3,896,000 | (303,000) |
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 | (18,000) | 2,287,000 |
Reverse mortgage interests | (741,000) | 78,123,000 |
Other assets | 99,628,000 | (367,126,000) |
Payables and accrued liabilities | (9,393,000) | (4,374,000) |
Net cash attributable to operating activities | 165,297,000 | (268,395,000) |
Investing Activities | ||
Property and equipment additions, net of disposals | (3,339,000) | (4,750,000) |
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 |
Purchase of reverse mortgage interests | 0 | |
Proceeds from sale of forward mortgage servicing rights | 0 | |
Proceeds on sale of reverse mortgage interest | 0 | |
Acquisitions, net | (31,276,000) | |
Net cash attributable to investing activities | (3,339,000) | (36,026,000) |
Financing Activities | ||
Transfers (to) from restricted cash, net | (1,732,000) | (48,087,000) |
Issuance of common stock, net of issuance costs | 0 | |
Debt financing costs | 0 | 0 |
Increase/(decrease) in advance facilities | (79,247,000) | 314,225,000 |
Increase/(decrease) in warehouse facilities | (54,955,000) | 5,094,000 |
Proceeds from HECM securitizations | 281,680,000 | 73,082,000 |
Repayment of HECM securitizations | (285,985,000) | (26,829,000) |
Issuance of excess spread financing | 0 | |
Repayment of excess spread financing | 0 | 0 |
Increase (decrease) in participating interest financing in reverse mortgage interests | 0 | 0 |
Repayment of nonrecourse debt–legacy assets | (3,056,000) | (3,138,000) |
Repurchase of unsecured senior notes | 0 | |
Excess tax (deficiency) benefit from share-based compensation | 0 | 0 |
Redemption of shares relating to stock vesting | 0 | 0 |
Repurchase of treasury shares | 0 | |
Net cash attributable to financing activities | (143,295,000) | 314,347,000 |
Net increase (decrease) in cash and cash equivalents | 18,663,000 | 9,926,000 |
Cash and cash equivalents at beginning of period | 15,380,000 | 18,944,000 |
Cash and cash equivalents at end of period | $ 34,043,000 | $ 28,870,000 |
Disclosures Related to Transa85
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC - Narrative (Details) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2016USD ($)servicer_advance_facilityspecial_purpose_entity | Mar. 31, 2015USD ($) | Dec. 31, 2013USD ($) | Feb. 28, 2013USD ($) |
Related Party Transaction [Line Items] | ||||||
Principal amount outstanding on mortgage servicing rights | $ 1,900,000,000 | $ 1,900,000,000 | ||||
Outstanding liability | 1,161,270,000 | $ 1,232,086,000 | 1,161,270,000 | |||
Proceeds from sale agreement | $ 307,300,000 | |||||
Mortgage servicing rights financing liability - fair value | 81,729,000 | 68,696,000 | $ 81,729,000 | |||
Purchase price paid reverse mortgage | $ 50,200,000 | |||||
Percentage of aquired reverse loans, sold to co-investor | 70.00% | |||||
Newcastle | ||||||
Related Party Transaction [Line Items] | ||||||
Servicing fee, percentage of unpaid principal balance | 0.50% | |||||
Principal amount outstanding on mortgage servicing rights | 600,000,000 | 700,000,000 | $ 600,000,000 | |||
Servicing fees and other performance incentive fees received | 800,000 | $ 900,000 | ||||
Delinquent service fees recorded | 24,700,000 | 30,700,000 | ||||
New Residential | ||||||
Related Party Transaction [Line Items] | ||||||
Servicing fees and other performance incentive fees received | 200,000 | 0 | ||||
Nonrecourse variable funding notes | $ 2,100,000,000 | |||||
Number of Wholly Owned Special Purpose Entities | special_purpose_entity | 2 | |||||
Number of Servicer Advance Facilities | servicer_advance_facility | 2 | |||||
Revenue recognized from servicing agreements | $ 1,000,000 | 1,700,000 | ||||
Fair Value, Measurements, Recurring | ||||||
Related Party Transaction [Line Items] | ||||||
Outstanding liability | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 | |||
Mortgage servicing rights financing liability - fair value | 81,729,000 | 81,729,000 | ||||
Reverse Mortgages | ||||||
Related Party Transaction [Line Items] | ||||||
Principal amount outstanding on mortgage servicing rights | 29,000,000,000 | $ 29,900,000,000 | 29,000,000,000 | $ 83,100,000 | ||
Loan Subservicing Agreement | NIC Reverse Loan LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction amount | 0 | 0 | ||||
Loan Subservicing Agreement | Springleaf | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction amount | 2,000,000,000 | |||||
Recognized revenue from related party | $ 3,100,000 | $ 3,100,000 | $ 200,000 |