Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 25, 2016 | |
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 | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 97,498,242 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 695 | $ 613 |
Restricted cash | 336 | 332 |
Mortgage servicing rights, $2,725 and $3,358 at fair value, respectively | 2,732 | 3,367 |
Advances and other receivables, net of reserves of $180 and $130, respectively | 1,824 | 2,412 |
Reverse mortgage interests, net of reserves of $94 and $53, respectively | 7,334 | 7,514 |
Mortgage loans held for sale at fair value | 1,839 | 1,430 |
Mortgage loans held for investment, net of allowance for loan losses of $3 and $4, respectively | 156 | 174 |
Property and equipment, net of accumulated depreciation of $123 and $93, respectively | 149 | 143 |
Derivative financial instruments at fair value | 127 | 100 |
Other assets | 654 | 532 |
Total assets | 15,846 | 16,617 |
Liabilities and stockholders' equity | ||
Unsecured senior notes, net of unamortized debt issuance costs $19 and $23, respectively | 2,000 | 2,026 |
Advance facilities, net of unamortized debt issuance costs $1 and $6, respectively | 1,188 | 1,640 |
Warehouse facilities, net of unamortized debt issuance costs $1 and $3, respectively | 2,610 | 1,890 |
Payables and accrued liabilities | 1,164 | 1,296 |
MSR related liabilities - nonrecourse at fair value | 1,079 | 1,301 |
Mortgage servicing liabilities | 11 | 25 |
Derivative financial instruments at fair value | 14 | 6 |
Other nonrecourse debt, net of unamortized debt issuance costs $7 and $4, respectively | 6,298 | 6,666 |
Total liabilities | 14,364 | 14,850 |
Commitments and contingencies (Note 15) | ||
Preferred stock at $0.01 par value - 300,000 thousand shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock at $0.01 par value - 1,000,000 thousand shares authorized, 109,915 thousand and 109,826 thousand shares issued, respectively | 1 | 1 |
Additional paid-in-capital | 1,119 | 1,105 |
Retained earnings | 503 | 682 |
Treasury shares at cost, 12,417 thousand and 1,826 thousand shares, respectively | (147) | (30) |
Total Nationstar stockholders' equity | 1,476 | 1,758 |
Noncontrolling interest | 6 | 9 |
Total stockholders' equity | 1,482 | 1,767 |
Total liabilities and stockholders' equity | $ 15,846 | $ 16,617 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Mortgage servicing rights at fair value | $ 2,725 | $ 3,358 |
Advances and other receivables, Reserves | 180 | 130 |
Reverse mortgage interests, Reserves | 94 | 53 |
Allowance for loan losses | 3 | 4 |
Accumulated depreciation | $ 123 | $ 93 |
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 | 109,915,000 | 109,826,000 |
Treasury Shares | 12,417,000 | 1,826,000 |
Unsecured Senior Notes | ||
Unamortized debt issuance costs | $ 19 | $ 23 |
Advance facilities | ||
Unamortized debt issuance costs | 1 | 6 |
Warehouse Facilities | ||
Unamortized debt issuance costs | 1 | 3 |
Nonrecourse debt–legacy assets | ||
Unamortized debt issuance costs | $ 7 | $ 4 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Service related, net | $ 305 | $ 211 | $ 502 | $ 884 |
Net gain on mortgage loans held for sale | 237 | 186 | 624 | 517 |
Total revenues | 542 | 397 | 1,126 | 1,401 |
Expenses: | ||||
Salaries, wages and benefits | 211 | 201 | 613 | 578 |
General and administrative | 196 | 245 | 619 | 693 |
Total expenses | 407 | 446 | 1,232 | 1,271 |
Other income (expenses): | ||||
Interest income | 103 | 113 | 313 | 243 |
Interest expense | (165) | (176) | (493) | (439) |
Other expense | (2) | 0 | (2) | (1) |
Total other income (expenses), net | (64) | (63) | (182) | (197) |
Income (loss) before income tax expense (benefit) | 71 | (112) | (288) | (67) |
Less: income tax expense (benefit) | 29 | (47) | (106) | (31) |
Net income (loss) | 42 | (65) | (182) | (36) |
Less: net income (loss) attributable to non-controlling interests | (3) | 1 | (3) | 4 |
Net income (loss) attributable to Nationstar | $ 45 | $ (66) | $ (179) | $ (40) |
Net income (loss) per common share attributable to common stockholders: | ||||
Basic and diluted (in dollars per share) | $ 0.46 | $ (0.62) | $ (1.78) | $ (0.39) |
Weighted average shares of common stock outstanding (in thousands): | ||||
Basic (in shares) | 97,461 | 107,568 | 100,524 | 101,797 |
Dilutive effect of stock awards (in shares) | 893 | 0 | 0 | 0 |
Diluted (in shares) | 98,354 | 107,568 | 100,524 | 101,797 |
Unaudited Consolidated Stateme5
Unaudited Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Millions | 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 | $ 1 | $ 587 | $ 643 | $ (12) | $ 1,219 | $ 5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (36) | (40) | (40) | 4 | |||
Shares issued (surrendered) under incentive plan, net, shares | 1,042 | ||||||
Shares issued (surrendered) under incentive plan, net | (6) | (6) | (6) | ||||
Share-based compensation | 15 | 15 | 15 | ||||
Issuance of common stock, shares | 17,500 | ||||||
Issuance of common stock | 498 | 498 | 498 | ||||
Excess tax benefit from share based compensation | 1 | 1 | 1 | ||||
Ending of Period at Sep. 30, 2015 | 1,696 | $ 1 | 1,101 | 603 | (18) | 1,687 | 9 |
Ending of Period, shares at Sep. 30, 2015 | 108,899 | ||||||
Beginning of Period, shares at Dec. 31, 2015 | 108,000 | ||||||
Beginning of Period at Dec. 31, 2015 | 1,767 | $ 1 | 1,105 | 682 | (30) | 1,758 | 9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (182) | (179) | (179) | (3) | |||
Shares issued (surrendered) under incentive plan, net, shares | 87 | ||||||
Shares issued (surrendered) under incentive plan, net | (3) | (3) | (3) | ||||
Share-based compensation | 18 | 18 | 18 | ||||
Excess tax deficiency from share based compensation | (4) | (4) | (4) | ||||
Repurchase of common stock, shares | (10,589) | ||||||
Repurchase of common stock | (114) | (114) | (114) | ||||
Ending of Period at Sep. 30, 2016 | $ 1,482 | $ 1 | $ 1,119 | $ 503 | $ (147) | $ 1,476 | $ 6 |
Ending of Period, shares at Sep. 30, 2016 | 97,498 |
Unaudited Consolidated Stateme6
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities | ||
Net loss attributable to Nationstar | $ (179) | $ (40) |
Reconciliation of net loss to net cash attributable to operating activities: | ||
Noncontrolling interest | (3) | 4 |
Net gain on mortgage loans held for sale | (624) | (517) |
Provision for reserves on advances and other receivables | 85 | 39 |
Fair value changes and amortization of mortgage servicing rights | 784 | 500 |
Fair value changes in excess spread financing | (75) | (23) |
Fair value changes in mortgage servicing rights financing liability | (2) | 7 |
Amortization (accretion) of premiums (discounts) | 27 | (20) |
Depreciation and amortization | 66 | 52 |
Share based compensation | 18 | 15 |
Other loss | 2 | 1 |
Repurchases of forward loan assets out of Ginnie Mae securitizations | (1,138) | (1,393) |
Mortgage loans originated and purchased, net of fees | (15,845) | (13,970) |
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 17,043 | 15,049 |
Excess tax benefit (deficiency) from share-based compensation | 4 | (1) |
Changes in assets and liabilities: | ||
Advances and other receivables, net | 519 | 479 |
Reverse mortgage interests, net | 179 | (165) |
Other assets | (137) | 47 |
Payables and accrued liabilities | (139) | (127) |
Net cash attributable to operating activities | 585 | (63) |
Investing Activities | ||
Property and equipment additions, net of disposals | (47) | (44) |
Purchase of forward mortgage servicing rights, net of liabilities incurred | (46) | (615) |
Purchase of reverse mortgage interests | 0 | (4,815) |
Sale of forward mortgage servicing rights | 27 | 41 |
Proceeds on sale of reverse mortgage servicing rights | 1 | 0 |
Business acquisitions, net | 0 | (45) |
Net cash attributable to investing activities | (65) | (5,478) |
Financing Activities | ||
Increase in warehouse facilities | 718 | 730 |
Proceeds from HECM securitizations | 724 | 342 |
Repayment of HECM securitizations | (624) | (103) |
Increase (decrease) in participating interest financing in reverse mortgage interests | (480) | 4,629 |
Decrease in advance facilities | (458) | (148) |
Repayment of excess spread financing | (146) | (155) |
Issuance of excess spread financing | 0 | 263 |
Repayment of nonrecourse debt – legacy assets | (12) | (10) |
Repurchase of unsecured senior notes | (29) | 0 |
Repurchase of common stock | (114) | 0 |
Issuance of common stock, net of issuance costs | 0 | 498 |
Transfers to restricted cash, net | 0 | (192) |
Excess tax (deficiency) benefit from share based compensation | (4) | 1 |
Surrender of shares relating to stock vesting | (3) | (6) |
Debt financing costs | (10) | (10) |
Net cash attributable to financing activities | (438) | 5,839 |
Net increase in cash and cash equivalents | 82 | 298 |
Cash and cash equivalents at beginning of period | 613 | 299 |
Cash and cash equivalents at end of period | 695 | 597 |
Supplemental disclosures of cash activities | ||
Cash paid for interest expense | 510 | 319 |
Net cash paid for income taxes | $ 29 | $ 31 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | 1. 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 primarily to single-family residences throughout the United States. Basis of Presentation The consolidated interim financial statements of Nationstar have been prepared in accordance with generally accepted accounting principles 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 nine months ended September 30, 2016 , there were no significant changes to those accounting policies. Dollar amounts are reported in millions, except per share data and other key metrics, unless otherwise noted. The interim consolidated financial statements are unaudited; however, in the opinion of management, all adjustments considered necessary for a fair presentation of the results of the interim periods have been included. 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 ("VIE") where Nationstar's wholly-owned subsidiaries are the primary beneficiaries. Nationstar applies the equity method of accounting to investments where it is able to exercise significant influence, but not control, over the policies and procedures of the entity and 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. Assets and liabilities of VIEs and their respective results of operations are consolidated from the date that Nationstar became the primary beneficiary through the date Nationstar ceases to be the primary beneficiary. Reclassifications In the second quarter of 2016, the Company reclassified certain assets to more closely align assets related to amounts from agencies and investors from other assets to advances and other receivables in its previously reported consolidated balance sheet as of December 31, 2015 . The revised balances of those accounts as of December 31, 2015 are shown in the table below. In addition, 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 Accounting Standards Update ("ASU") No. 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , during the first quarter of 2016 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 . The revised balances of those accounts as of December 31, 2015 are shown in the table below. As presented Reclassification As adjusted December 31, 2015 ASU 2015-03 Other December 31, 2015 Advances and other receivables, net $ 2,223 $ — $ 189 $ 2,412 Other assets 759 (38 ) (189 ) 532 Unsecured senior notes 2,049 (23 ) — 2,026 Advance facilities 1,646 (6 ) — 1,640 Warehouse facilities 1,894 (4 ) — 1,890 Other nonrecourse debt 6,671 (5 ) — 6,666 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 No. 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which requires 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 No. 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. Otherwise, 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), 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 Updates No. 2016-08 and 2016-12, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , clarify that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer, provides guidance regarding how to apply the control principle when services are provided and when goods or services are combined with other goods or services, and clarifies the definition of a completed contract. Additional clarification is provided that if Topic 606 is applied retrospectively to the financial statements, it does not have to be treated as an accounting change. 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), 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. Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (ASU 2016-13), requires organization to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The update eliminates the probable initial recognition threshold in current GAAP and, instead, reflects an entity’s current estimate of all expected credit losses. Previously, when credit losses were measured under GAAP, an entity generally only considered past events and current conditions in measuring the incurred loss. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 14, 2019. 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. 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15), makes eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017, and will require adoption on a retrospective basis. The Company is currently evaluating the impact the application of ASU 2016-15 will have on the Company’s financial position or results of operations. |
Mortgage Servicing Rights ("MSR
Mortgage Servicing Rights ("MSR") and Related Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights (MSR) and Related Liabilities | 2. Mortgage Servicing Rights ("MSR") and Related Liabilities The following table sets forth the carrying value of Nationstar's MSR and the related liabilities as of September 30, 2016 and December 31, 2015 . MSRs and Related Liabilities September 30, 2016 December 31, 2015 Forward MSRs - fair value $ 2,725 $ 3,358 Reverse MSRs - LOCOM 7 9 Mortgage servicing rights $ 2,732 $ 3,367 Mortgage servicing liabilities - LOCOM $ 11 $ 25 Excess spread financing - fair value $ 1,012 $ 1,232 Mortgage servicing rights financing liability - fair value 67 69 MSR related liabilities (nonrecourse) $ 1,079 $ 1,301 Forward Mortgage Servicing Rights - Fair Value The Company owns and records at fair value the rights to service traditional residential mortgage loans ("forward" loans) for others either as a result of purchase transactions or from the sales and securitizations of loans originated. Forward MSRs are comprised of rights related to both agency and non-agency loans. Servicing resulting from transfers of financial assets comprises the fair value of the newly originated MSRs at the time the loan is sold or securitized. The activity of MSRs carried at fair value is as follows for the dates indicated. Nine months ended September 30, Forward MSRs - Fair Value 2016 2015 Fair value at the beginning of the period $ 3,358 $ 2,950 Additions: Servicing resulting from transfers of financial assets 140 169 Purchases of servicing assets 50 695 Dispositions: Sales of servicing assets (27 ) (46 ) Changes in fair value: Due to changes in valuation inputs or assumptions used in the valuation model (494 ) (197 ) Other changes in fair value (302 ) (338 ) Fair value at the end of the period $ 2,725 $ 3,233 During the nine months ended September 30, 2016 , the Company sold MSRs and was retained as the subservicer for an unpaid principal balance of $3,507 , out of a total $4,560 unpaid principal balance sold. From time to time, the Company sells its ownership interest in certain MSRs and is retained as the subservicer for the sold assets. The Company has evaluated the sale accounting requirements related to these transactions given the continued involvement as the subservicer and concluded that these transactions qualify for sale accounting treatment. MSRs measured at fair value are segregated 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. Numerous factors are considered 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, subsequent changes are not made. Interest sensitive portfolios generally consist of lower delinquency, single-family conforming residential forward mortgage loans for investors. 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. September 30, 2016 December 31, 2015 UPB Fair Value UPB Fair Value Credit sensitive $ 192,728 $ 1,665 $ 224,334 $ 2,017 Interest sensitive 120,379 1,060 121,342 1,341 Total $ 313,107 $ 2,725 $ 345,676 $ 3,358 Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated. Credit Sensitive September 30, 2016 December 31, 2015 Discount rate 11.6 % 11.6 % Weighted-average prepayment speeds 17.4 % 16.5 % Expected weighted-average life 5.5 years 5.9 years Interest Sensitive Discount rate 9.2 % 9.1 % Weighted-average prepayment speeds 16.1 % 12.4 % Expected weighted-average life 5.0 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 September 30, 2016 and December 31, 2015 . Discount Rate Total Prepayment Speeds 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change September 30, 2016 Mortgage servicing rights $ (88 ) $ (171 ) $ (126 ) $ (240 ) December 31, 2015 Mortgage servicing rights $ (123 ) $ (238 ) $ (132 ) $ (253 ) 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. Reverse Mortgage Servicing Rights and Liabilities - LOCOM Nationstar owns the right to service certain Home Equity Conversion Mortgage ("HECM") reverse mortgage loans with an unpaid principal balance of $26,855 and $29,855 as of September 30, 2016 and December 31, 2015 , respectively. An MSR asset or Mortgage Servicing Liability ("MSL") is established upon the acquisition at fair value, as applicable, based on the proceeds paid or received to service the reverse portfolio. Each quarter, the Company amortizes or accretes the MSR or MSL, respectively, to service related revenue, net as the respective portfolios run-off, and the MSR or MSL is assessed for impairment or increased obligation based on its fair value, using a variety of assumptions. The primary assumptions of MSR consists of discount rates, prepayment speeds and the borrower life expectancy, whereas the primary assumptions of MSL consist of loss severity and expectancy rates, foreclosure timelines, and expected changes in interest rates. The MSRs are stratified based on predominant risk characteristics of the underlying serviced loans. Impairment, if any, represents the excess of amortized cost of an individual stratum over its estimated fair value and is recognized through an increase in the valuation expense. At September 30, 2016 and December 31, 2015 , no impairment was identified. The following table sets forth the amortized carrying value and activity of reverse MSRs for the nine months ended September 30, 2016 and 2015 . Nine months ended September 30, 2016 2015 Assets Liabilities Assets Liabilities Reverse MSRs and Liabilities - LOCOM Balance at the beginning of the period $ 9 $ 25 $ 12 $ 65 Amortization/accretion (2 ) (14 ) (2 ) (37 ) Balance at end of the period $ 7 $ 11 $ 10 $ 28 Fair value at end of period $ 25 $ 2 $ 30 $ 11 For the nine months ended September 30, 2016 and 2015 , the Company accreted $ 14 and $ 37 , respectively, of the mortgage servicing liability. As part of servicing arrangements, issuers of HECMs are responsible for repurchasing any loans out of the Home Equity Conversion Mortgage Backed Securities ("HMBS") pool when the outstanding principal balance of the related HECM loan is equal to or greater than 98% of the maximum claim amount set at origination. Purchases of such loans, which relinquishes the reverse MSR or MSL, are subsequently recorded as reverse mortgage interests. Excess Spread Financing at Fair Value In order to finance the acquisition of certain forward 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"), a subsidiary of Fortress Investment Group LLC ("Fortress"). Certain funds are managed by Fortress, which owns an interest in the Company. See Note 18. Transactions with Affiliates . 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 contractually specified base fee component and an excess servicing fee. The base servicing fee, along with ancillary income, is designed 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, it 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 are as follows. Excess Spread Financing Prepayment Speeds Average Discount Recapture Rate September 30, 2016 Low 8.4% 3.7 8.5% 6.7% High 18.3% 6.5 14.1% 28.3% Weighted-average 12.5% 5.4 11.0% 18.0% 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 Prepayment Speeds 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change September 30, 2016 Excess spread financing $ 36 $ 74 $ 41 $ 82 December 31, 2015 Excess spread financing $ 42 $ 87 $ 37 $ 76 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 Forward Servicing Rights Financing From December 2013 through June 2014, Nationstar entered into agreements to sell a contractually specified base fee component of certain forward MSRs and servicing 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 transaction. See Note 18. Transactions with Affiliates 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, net in the consolidated statements of operations. The following table sets forth the weighted average assumptions used in the valuation of mortgage servicing rights financing liability. September 30, 2016 December 31, 2015 Advance financing rates 3.3 % 3.0 % Annual advance recovery rates 24.2 % 20.9 % The following table sets forth the items comprising of revenue associated with servicing loan portfolios. Three months ended September 30, Nine months ended September 30, Servicing Segment Revenue 2016 2015 2016 2015 Contractually specified servicing fees including subservicing fees $ 254 $ 285 $ 786 $ 827 Reverse servicing fees 11 32 46 75 Incentive and modification income 35 21 82 75 Late fees 19 18 57 52 Other service-related income 66 62 214 173 Revenue sharing related to MSR financing and excess spread (75 ) (77 ) (223 ) (225 ) Amortization (92 ) (83 ) (235 ) (247 ) Mark-to-market (8 ) (151 ) (502 ) (180 ) Total servicing fee income $ 210 $ 107 $ 225 $ 550 |
Advances and Other Receivables,
Advances and Other Receivables, Net | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Advances and Other Receivables, Net | Advances and other receivables, net consists of the following. September 30, 2016 December 31, 2015 Servicing advances $ 1,683 $ 2,254 Receivables from agencies and investors 321 288 Reserves (180 ) (130 ) Total advances and other receivables, net $ 1,824 $ 2,412 Servicing advances on agency securities represent a receivable from the respective agency investor and are recovered from cash reimbursements from the agency. Servicing advances on non-agency securities are typically recovered from proceeds of the sale of mortgage loan collateral for which the advance was made. If loan-level proceeds are determined to be insufficient, recovery is achieved from cash collected at the pool level from the securitization trust as permitted contractually or mortgage insurance claim. In order to more closely align assets related to amounts due from agencies and investors, certain December 31, 2015 balances of other assets were reclassified to advances and other receivables as presented in Note 1. Nature of Business and Basis of Presentation. The reclassified amounts represented amounts due from agencies relating to filed claims and from investors. These amounts, net of reserves, totaled $189 as of December 31, 2015 . Each reporting period, the Company evaluates the appropriateness of its reserves for uncollectible advances and servicing receivables. The reserves are computed based on an analysis that considers the underlying loan, the type of advance or servicing receivable, the investors' servicing reimbursement guidelines, mortgage insurance reimbursement guidelines, reimbursement patterns and past loss experience. The carrying value of active loans within the MSR portfolio are adjusted each period to reflect both the positive and negative projected cash flows associated with serviced loans, and earnings is adjusted accordingly through the mark-to-market adjustment, which is a component of service related revenue. As loans with negative MSR values become inactive and reach a $0 UPB, the related negative values associated with these loans are reclassified from MSR to the reserve account within advances and other receivables, net. The reclassification upon loans becoming inactive is consistent with the Company's accounting policy and allows alignment of reserves with the assets where expected servicing losses for inactive loans will be realized. After a loan becomes inactive, subsequent reserves are established if needed through a charge to general and administrative expense reflecting expected losses incurred during the liquidation process. During the first quarter of 2016, the Company increased reserves by $59 through a reclassification from MSR for negative values associated with inactive loans that were recorded as of December 31, 2015 and decreased reserves by $3 for reclassifications to other accounts to align the needed reserve balance. Reserves also increased by $27 and $85 during the three and nine months ended September 30, 2016 , respectively, through a provision for negative MSR values related to inactive loans. The provision was recorded as a reduction to service related revenue. During the three and nine months ended September 30, 2016 , the Company wrote off $91 of advances that were previously identified as not recoverable. |
Reverse Mortgage Interests, Net
Reverse Mortgage Interests, Net | 9 Months Ended |
Sep. 30, 2016 | |
Reverse Mortgage Interests [Abstract] | |
Reverse Mortgage Interests, Net | 4. Reverse Mortgage Interests, Net Reverse mortgage interests, net consist of the following. September 30, 2016 December 31, 2015 Participating interests in HMBS $ 5,412 $ 5,864 Other interests securitized 836 715 Unsecuritized interests 1,180 988 Reserves (94 ) (53 ) Total reverse mortgage interests, net $ 7,334 $ 7,514 Participating interests Participating interests consist of reverse mortgage interests or HECM loans which have been transferred to Ginnie Mae and subsequently securitized through the issuance of HMBS. The HMBS securitizations are accounted for as secured borrowings with both the reverse mortgage interest and related indebtedness retained on the Company's balance sheet. Other interests securitized Other interests securitized consist 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 the Company's balance sheet. Unsecuritized interests Unsecuritized interests in reverse mortgages consist primarily of the following. September 30, 2016 December 31, 2015 Repurchased HECM loans $ 803 $ 591 HECM related receivables 283 290 Funded borrower draws not yet securitized 74 83 Foreclosed assets 20 24 Total unsecuritized interests $ 1,180 $ 988 Unsecuritized interests include HECM loans for which the Company is required to repurchase 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 established at origination. The Company repurchased a total of $2,270 and $1,572 HECM loans out of Ginnie Mae HMBS securitizations during the nine months ended September 30, 2016 and 2015, respectively, of which, $661 and $608 were subsequently reimbursed by a prior servicer. Nationstar routinely securitizes eligible reverse mortgage interests through Ginnie Mae HMBS pools or private HECM securitization trusts. Reverse mortgage interest securitization transactions are treated as secured borrowings with both the reverse mortgage interests and related indebtedness retained on Nationstar’s balance sheet. Reserves for reverse mortgage interests Reserves for servicing losses on reverse mortgage interests are reflected through the Company's provision for losses and consist of (1) financial and (2) operational losses related to servicing of other interests securitized and unsecuritized interests in HECM loans. Financial exposures are defined as the cost of doing business related to servicing the HECM product and include potential unrecoverable costs primarily based on FHA claim guidelines related to reimbursable expenses and unfavorable change in the appraised value of the loan collateral. Operational exposures are defined as un-reimbursable debenture interest curtailments imposed for missed HUD servicing time lines. The Company establishes reserves for servicing losses based on historical loss experience, underlying value of collateral, age of claim and management’s knowledge of expected claim recoveries. Losses are established when loans are bought out of the Ginnie Mae HMBS pools. Reserves reflect management’s best estimate of amounts to be realized, which are subject to change as facts and circumstances change. In the nine months ended September 30, 2016, the Company increased reverse mortgage reserves by $42 for changes in actual and estimated losses. The increase in reserves is primarily due to loss estimates resulting from updated economic factors such as prolonged foreclosure timelines and due to changes in negotiations with investors regarding expected recoveries of make-whole claims. Reverse mortgage sales 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 with an outstanding unpaid principal balance totaling $96 . These loans were recorded within reverse mortgage interests as mortgage loans held for sale at LOCOM. In June 2016, Nationstar sold the loans from the transaction for $74 and recorded a gain on the sale of $17 , which was recorded to net gain on mortgage loans held for sale. Reverse interest income The Company accrues interest income for its participating interest in reverse mortgages based on the stated rate of the HECM loan. Total interest earned on the Company's reverse mortgage interests was $81 and $251 for the three and nine months ended September 31, 2016, respectively, and $90 and $181 for the three and nine months ended September 30, 2015, respectively. |
Mortgage Loans Held for Sale an
Mortgage Loans Held for Sale and Investment | 9 Months Ended |
Sep. 30, 2016 | |
Mortgage Loans Held for Sale and Investment [Abstract] | |
Mortgage Loans Held for Sale and Investment | 5. 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 refinancings 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 are recorded at fair value as set forth below. September 30, 2016 December 31, 2015 Mortgage loans held for sale – unpaid principal balance $ 1,774 $ 1,374 Mark-to-market adjustment (1) 65 56 Total mortgage loans held for sale $ 1,839 $ 1,430 (1) The mark-to-market adjustment is recorded in net gain on mortgage loans held for sale in the 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. September 30, 2016 December 31, 2015 Mortgage Loans Held for Sale - Unpaid Principal Balance UPB Fair Value UPB Fair Value Non-accrual $ 109 $ 105 $ 31 $ 29 From time to time, Nationstar exercises its right to repurchase individual delinquent loans in Ginnie Mae securitization pools to minimize interest spread losses, to re-pool into new Ginnie Mae securitizations, or to otherwise sell to third-party investors. During the nine months ended September 30, 2016 , Nationstar repurchased $201 of delinquent Ginnie Mae loans, of which $88 of these loans were securitized or sold to third-party investors. As of September 30, 2016 , $18 of the repurchased loans have re-performed and were held in accrual status, and remaining balances continue to be held under a nonaccrual status. The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was $85 and $16 as of September 30, 2016 and December 31, 2015 , respectively. A reconciliation of the changes in mortgage loans held for sale is presented in the following table. Nine months ended September 30, 2016 2015 Mortgage loans held for sale – beginning balance $ 1,430 $ 1,278 Mortgage loans originated and purchased, net of fees 15,788 13,970 Transfer of mortgage loans held for sale to advances/accounts receivable related to claims (1) (16 ) (46 ) Transfer of mortgage loans held for sale to other assets 9 — Repurchase of loans out of Ginnie Mae securitizations 1,138 1,369 Loans sold (16,510 ) (14,685 ) Mortgage loans held for sale – ending balance $ 1,839 $ 1,886 (1) Amounts are comprised of claims made on certain government guaranteed mortgage loans upon foreclosure. For the nine months ended September 30, 2016 and 2015 , the Company received proceeds of $16,957 and $15,034 , respectively, on the sale of mortgage loans held for sale, resulting in gains of $447 and $349 , respectively. 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 upon re-performance of the loan or to otherwise sell to third-party investors. The amounts repurchased out of Ginnie Mae pools, as presented above, are 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 are comprised of the following. September 30, 2016 December 31, 2015 Mortgage loans held for investment, net – unpaid principal balance $ 225 $ 250 Transfer discount: Accretable (14 ) (15 ) Non-accretable (52 ) (57 ) Allowance for loan losses (3 ) (4 ) Total mortgage loans held for investment, net $ 156 $ 174 The changes in accretable yield on loans transferred to mortgage loans held for investment, net are set forth below. Nine months ended September 30, 2016 2015 Accretable Yield Balance at the beginning of the period $ (15 ) $ (16 ) Accretion 2 2 Reclassifications from nonaccretable discount (1 ) (1 ) Balance at the end of the period $ (14 ) $ (15 ) Nationstar may periodically modify the terms of any outstanding mortgage loans held for investment, net for loans that are either in default or in imminent default. Modifications often involve reduced payments by borrowers, modification of the original terms of the mortgage loans, forgiveness of debt and/or modified servicing advances. As a result of the volume of modification agreements entered into, the estimated average outstanding life in this pool of mortgage loans has been extended. Nationstar records interest income on the transferred loans on a level-yield method. To maintain a level-yield on these transferred loans over the estimated extended life, Nationstar reclassified approximately $1.4 and $1.2 of transfer discount from non-accretable yield for the nine months ended September 30, 2016 and 2015 , respectively. 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 $31 and $41 as of September 30, 2016 and December 31, 2015 , respectively. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | 6. Other Assets Other assets consist of the following. September 30, 2016 December 31, 2015 Accrued revenues $ 172 $ 180 Loans subject to repurchase right from Ginnie Mae 144 117 Taxes receivable 74 — Goodwill 74 71 Intangible assets 42 50 Deposits 39 30 Prepaid expenses 17 20 Real estate owned (REO), net 26 18 Receivables from affiliates, net 6 8 Other 60 38 Total other assets $ 654 $ 532 Accrued revenue is primarily comprised of service fees earned but not received. For forward loans that Nationstar sold to Ginnie Mae in conjunction with issuance of mortgage backed securities, Nationstar as the issuer has the unilateral 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. Once Nationstar has the unilateral right to repurchase a delinquent loan, Nationstar has effectively regained control over the loan and in accordance with 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 $ 144 at September 30, 2016 and $117 at December 31, 2015 . Tax receivable assets are primarily due to net operating tax losses recorded in 2016 and true-up adjustments associated with federal income tax returns for prior years. Real estate owned (REO), net includes $21 and $15 of REO loans with a government or GSE guarantee at September 30, 2016 and December 31, 2015 , respectively, limiting loss exposure to the Company. Other primarily includes non-advance related accounts receivables due from investors and various other miscellaneous assets. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 7. Derivative Financial Instruments Derivative instruments utilized by Nationstar primarily include interest rate lock commitments ("IRLCs"), Loan Purchase Commitments ("LPCs"), Forward Mortgage Backed Securities ("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 and $4 in collateral deposits on derivative instruments recorded in other assets and payables and accrued liabilities on the Company's balance sheets as of September 30, 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. Nationstar enters into Eurodollar futures and Treasury 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 enters 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 the London Interbank Offered Rate ("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 and $400 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. The Company did not elect hedge accounting related to these agreements and they expired during the first quarter of 2016. The Company did not enter into any new agreements for the three and nine months ended September 30, 2016 . The following tables provide the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses). Expiration Dates Outstanding Notional Fair Value Recorded Gains / (Losses) Nine months ended September 30, 2016 Assets Mortgage loans held for sale, net Loan sale commitments 2016 $ 82 $ (0.4 ) $ (0.7 ) Derivative financial instruments IRLCs 2016 4,291 123.0 33.9 Forward MBS trades 2016 708 0.6 (5.5 ) LPCs 2016 354 2.8 (1.1 ) Eurodollar futures (1) 2016-2021 7 — (0.1 ) Treasury futures 2016 63 0.5 0.5 Interest rate swaps 2017 10 0.2 (0.3 ) Liabilities Derivative financial instruments IRLCs (1) 2016 4 — — Forward MBS trades 2016 3,306 13.1 (9.4 ) LPCs 2016 171 0.7 0.8 Eurodollar futures 2016-2021 55 0.1 — Treasury futures 2016 67 0.3 (0.3 ) Interest rate swaps 2017 10 0.2 0.3 Twelve months ended December 31, 2015 Assets Mortgage loans held for sale Loan sale commitments 2016 $ 176 0.3 0.3 Derivative financial instruments IRLCs 2016 2,768 89.1 1.2 Forward MBS trades 2016 1,666 6.1 5.8 LPCs 2016 388 3.9 1.9 Eurodollar futures 2016-2021 176 0.1 0.1 Interest rate swaps and caps 2016-2017 846 0.5 (0.4 ) Liabilities Derivative financial instruments IRLCs (1) 2016 2 — — Forward MBS trades 2016 1,807 3.7 14.6 LPCs 2016 314 1.5 (1.4 ) Eurodollar futures 2016-2021 95 0.1 (0.1 ) Interest rate swaps and caps 2016-2017 13 0.5 (0.4 ) (1) Fair values of derivative instruments are less than $0.1 for the specified dates. |
Indebtedness
Indebtedness | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Indebtedness | 8. Indebtedness Notes Payable September 30, 2016 December 31, 2015 Advance Facilities Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged MBS advance financing facility LIBOR+2.5% March 31, Servicing advance receivables $ 130 $ 67 $ 77 $ 82 $ 89 Nationstar agency advance financing facility LIBOR+2.0% January 15, 2017 Servicing advance receivables 400 230 255 310 364 MBS advance financing facility (2012) LIBOR+5.0% November 30, 2016 Servicing advance receivables 50 40 48 50 70 Nationstar mortgage advance receivable LIBOR+1.9% December 20, 2017 Servicing advance receivables 500 278 319 335 394 MBS servicer advance facility (2014) LIBOR+3.5% September 12, 2017 Servicing advance receivables 125 103 148 106 185 Nationstar agency advance receivables trust LIBOR+2.0% October 9, 2017 Servicing advance receivables 1,400 471 531 763 823 Advance facilities principal amount 1,189 1,378 1,646 1,925 Debt issuance costs (1 ) — (6 ) — Advance facilities, net of unamortized debt issuance costs $ 1,188 $ 1,378 $ 1,640 $ 1,925 September 30, 2016 December 31, 2015 Warehouse Facilities Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged $1,300 warehouse facility LIBOR+2.0% to 2.9% October 17, 2017 Mortgage loans or MBS $ 1,300 $ 855 $ 888 $ 634 $ 678 $850 warehouse facility LIBOR+1.8% to 3.3% June 30, Mortgage loans or MBS 850 526 568 545 622 $500 warehouse facility LIBOR+1.8% to 2.8% September 1, 2017 Mortgage loans or MBS 500 215 219 175 179 $500 warehouse facility LIBOR+2.0% to 2.5% November 15, 2016 Mortgage loans or MBS 500 362 448 257 274 $350 warehouse facility LIBOR+2.2% to 4.5% April 7, Mortgage loans or MBS 350 21 22 98 112 $200 warehouse facility LIBOR+1.5% April 30, Mortgage loans or MBS 200 56 58 8 9 $300 warehouse facility LIBOR+2.3% December 14, 2016 Mortgage loans or MBS 300 164 186 23 28 $350 warehouse facility LIBOR+2.8% to 3.9% November 17, 2016 Mortgage loans or MBS 350 169 185 45 50 $500 warehouse Facility LIBOR+2.1% to 2.5% September 8, 2017 Mortgage loans or MBS 500 191 196 — — $75 warehouse facility (HCM) (1) LIBOR+2.3% to 2.9% October 17, 2016 Mortgage loans or MBS 75 10 12 53 59 $100 warehouse facility (HCM) (1) LIBOR+2.5% to 2.8% November 18, 2016 Mortgage loans or MBS 100 42 44 55 60 Warehouse facilities principal amount 2,611 2,826 1,893 2,071 Debt issuance costs (1 ) — (3 ) — Warehouse facilities, net of unamortized debt issuance costs $ 2,610 $ 2,826 $ 1,890 $ 2,071 Mortgage loans, net $ 1,654 $ 1,725 $ 1,509 $ 1,625 Reverse mortgage interests, net 642 761 351 390 MSR and other collateral 315 340 33 56 (1) These facilities, specific to Home Community Mortgage ("HCM"), were repaid in October 2016. Unsecured Senior Notes A summary of the balances of unsecured senior notes is presented below. September 30, 2016 December 31, 2015 $475 face value, 6.500% interest rate payable semi-annually, due August 2018 $ 471 $ 475 $375 face value, 9.625% interest rate payable semi-annually, due May 2019 346 363 $400 face value, 7.875% interest rate payable semi-annually, due October 2020 400 400 $600 face value, 6.500% interest rate payable semi-annually, due July 2021 596 597 $300 face value, 6.500% interest rate payable semi-annually, due June 2022 206 214 Unsecured senior notes principal amount, subtotal 2,019 2,049 Debt issuance costs (19 ) (23 ) Unsecured senior notes, net of unamortized debt issuance costs $ 2,000 $ 2,026 Nationstar repurchased $29 in principal amount of outstanding notes through the third quarter of 2016 at a discount resulting in a gain of $0.1 . 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 allow Nationstar to 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. On or after certain fixed dates, Nationstar may redeem all or a portion of the unsecured senior notes 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 September 30, 2016 , the expected maturities of Nationstar's unsecured senior notes based on contractual maturities as follows. Year Amount 2016 $ — 2017 — 2018 471 2019 346 2020 400 Thereafter 802 Unsecured senior notes principal amount 2,019 Unamortized debt issuance costs (19 ) Unsecured senior notes, net of unamortized debt issuance costs $ 2,000 Other Nonrecourse Debt September 30, 2016 December 31, 2015 Issue Date Maturity Date Class of Note Securitized Amount Outstanding Outstanding Participating Interest Financing (1) _ _ _ $ — $ 5,488 $ 5,947 HECM Securitization (HMBS) Trust 2014-1 (2) December 2014 _ A, M 344 — 227 Trust 2015-1 (3) June 2015 May 2018 A, M 269 — 222 Trust 2015-2 November 2015 November 2025 A, M1, M2 217 141 209 Trust 2016-1 March 2016 February 2026 A, M1, M2 282 216 — Trust 2016-2 June 2016 June 2026 A, M1, M2 209 178 — Trust 2016-3 August 2016 August 2026 A, M1, M2 237 228 — Nonrecourse Debt - Legacy Assets November 2009 October 2039 A 222 54 65 Other nonrecourse debt principal amount 6,305 6,670 Unamortized debt issuance costs (7 ) (4 ) Other nonrecourse debt, net of unamortized debt issuance cost $ 6,298 $ 6,666 (1) Amounts represent the Company's participating interest in various securitized portfolios transferred to the Company. (2) The Company retained approximately $70 and $36 of the Class A and Class M notes upon issuance, respectively, which were later sold in the first quarter of 2015 for proceeds of $73 . In January 2016, the Company executed the optional redemption of the associated notes. (3) In July 2016, the Company executed the optional redemption of the associated notes. 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 on its consolidated balance sheets as secured borrowings, retaining the reverse mortgage interests and recording the HMBS obligation 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 0.8% to 7.0% . HECM Securitizations From time to time, the Company securitizes its interests in reverse mortgages that were previously securitized in HMBS pools. These subsequent securitization transactions provide investors with the ability to invest in a pool of first-lien inactive HECMs covered by Federal Housing Administration ("FHA") insurance and a pool of REO properties acquired through foreclosure in connection with HECM loans. The transactions provide the Company 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. Interest is accrued at a rate of 2.0% to 7.4% on the outstanding securitized notes. The notes are callable with expected weighted average lives of one to three years . The Company may re-securitize the collateral from called notes to achieve a lower cost of funds. Nonrecourse Debt–Legacy Assets During November 2009, Nationstar completed the securitization of approximately $222 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 sheets and recognizing the asset-backed certificates acquired by third parties as nonrecourse debt o f $54 at September 30, 2016 and $65 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 7.5% , 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 $217 and $242 at September 30, 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 change in interest rates during the nine months ended September 30, 2016 , Nationstar recorded a charge to service related revenue for changes in fair value associated with the Company's MSRs recorded at fair value. Nationstar was unable to meet the profitability requirements in two facilities as of September 30, 2016. Nationstar received waivers from these financial institutions on the profitability requirements. After giving effect to these waivers, the Company was in compliance with all required financial covenants as of September 30, 2016 . Nationstar is required to maintain a minimum tangible net worth of at least $682 as of each quarter-end related to its outstanding Master Repurchase Agreements on its outstanding repurchase facilities. At September 30, 2016 , Nationstar was in compliance with these minimum tangible net worth requirements. |
Payables and Accrued Liabilitie
Payables and Accrued Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Payables and Accrued Liabilities | 9. Payables and Accrued Liabilities Payables and accrued liabilities consist of the following. September 30, 2016 December 31, 2015 Payables to servicing and subservicing investors $ 429 $ 484 Loans subject to repurchase from Ginnie Mae 144 117 Payables to GSEs and securitized trusts 79 113 Payables to insurance carriers and insurance cancellation reserves 72 70 Accrued bonus and payroll 94 96 Accrued interest 64 61 Professional and legal 49 43 Accrued liabilities and accounts payables 47 73 Repurchase reserves 25 26 Lease obligations 28 13 MSR purchases payables including advances 11 22 Other 122 178 Total payables and accrued liabilities $ 1,164 $ 1,296 Payables to Servicing and Subservicing Investors, Payables to GSEs, and Payables to Securitization Trusts Payables to servicing and subservicing investors represent amounts due in connection with loans serviced and that are paid from collections of the underlying loans, insurance proceeds or proceeds from 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. Payables 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. Lease Obligations Lease obligations consist of capital leases and deferred rent. During the third quarter of 2016, the Company entered into a capital lease with annual lease payments of $3 million . The lease expires in 2019. Other Payables Other payables are primarily comprised of tax liabilities, deferred service fees and liabilities related to origination activities. |
Securitizations and Financings
Securitizations and Financings | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Securitizations and Financings | 10. Securitizations and Financings Variable Interest Entities In the normal course of business, Nationstar enters into various types of on- and off-balance sheet transactions with special purpose entities ("SPE") determined to be a VIE, which primarily consist 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 are 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. A summary of the assets and liabilities of Nationstar’s transactions with VIEs included in the Company’s consolidated financial statements is presented below for the periods indicated: September 30, 2016 December 31, 2015 Transfers Reverse Secured Borrowings Transfers Reverse Secured Borrowings Assets Restricted cash $ 129 $ 34 $ 94 $ 36 Reverse mortgage interests, net — 6,208 — 6,547 Advances and other receivables, net 1,105 — 1,581 — Mortgage loans held for investment, net 156 — 173 — Other assets 4 — 5 — Total assets $ 1,394 $ 6,242 $ 1,853 $ 6,583 Liabilities Advance facilities (1) $ 979 $ — $ 1,408 $ — Payables and accrued liabilities 2 — 2 1 Participating interest financing (2) — 5,412 — 5,864 HECM Securitizations (HMBS) Trust 2014-1 — — — 227 Trust 2015-1 — — — 222 Trust 2015-2 — 141 — 209 Trust 2016-1 — 216 — — Trust 2016-2 — 178 — — Trust 2016-3 — 228 — — Nonrecourse debt–legacy assets 54 — 65 — Total liabilities $ 1,035 $ 6,175 $ 1,475 $ 6,523 (1) Advance facilities include the Nationstar agency advance financing facility and notes payable recorded by the Nationstar mortgage advance receivable trust, and the Nationstar agency advance receivables trust. Refer to Notes Payable in Note 8. Indebtedness for additional information. (2) Participating interest financing excludes premiums. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders' Equity On December 17, 2015, Nationstar announced that its Board of Directors authorized the repurchase of up to $150 of the registrant's outstanding common stock through December 16, 2016. On February 9, 2016, Nationstar’s Board of Directors authorized a $100 increase to the original repurchase authorization for an aggregate repurchase authorization of $250 under the Company’s share repurchase program. As of September 30, 2016 , a total of 11,426 thousand shares have been repurchased since the inception of the plan, of which 10,589 thousand shares were acquired in 2016 for $114 . During the three and nine months ended September 30, 2016 , certain employees of Nationstar were granted 56 thousand and 1,552 thousand restricted stock units ("RSUs"), respectively. 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 and $18 of expense related to the share-based awards during the three and nine months ended September 30, 2016 , respectively, and $4 and $15 for the three and nine months ended September 30, 2015 , respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The components of income tax expense (benefit) on continuing operations were as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Income tax expense (benefit) $ 29 $ (47 ) $ (106 ) $ (31 ) Effective tax rate 40.6 % 42.1 % 36.8 % 46.0 % For the three and nine months ended September 30, 2016 and 2015 , the effective tax rates differed from the statutory federal rate of 35% primarily due to the elimination of the book loss 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 loss attributable to a less-than-wholly-owned subsidiary is treated as a permanent difference and increases taxable income. The Company is in a net income position for the three months ended September 30, 2016, therefore this permanent difference will increase the effective tax rate and income tax expense. The Company is in a net loss position for the nine months ended September 30, 2016 , accordingly, the book loss attributable to a less-than-wholly-owned subsidiary reduces the effective tax rate and the income tax benefit. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 13. Fair Value Measurements Fair value is a market-based measurement, not an entity-specific measurement. Accordingly, a fair value measurement should be determined based on the assumptions 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. it intends to sell to Fannie Mae, Freddie Mac and Ginnie Mae. Additionally, Nationstar holds mortgage loans it intends to sell into the secondary markets through 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, advance recovery rates 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 and Other Receivables, Net (Level 3) - Advances and other receivables are valued at their net realizable value, which generally approximates fair value because advances have no stated maturity and the effect of interest over their recovery period is not material. See Note 3, Advances and Other Receivables, Net for more information. Reverse Mortgage Interests, Net (Level 3) – The Company’s reverse mortgage interests are primarily comprised of HECM loans that are insured by FHA and guaranteed by Ginnie Mae upon securitization. Fair value for active reverse mortgage loans is estimated based on pricing of recent securitizations with similar attributes and characteristics, such as collateral values and prepayment speeds and adjusted as necessary for differences. The recent timing of these transactions allows the pricing to consider the current interest rate risk exposures. The fair value of inactive reverse mortgage loans is established based upon a discounted par value of the loan derived from the Company’s historical loss factors experienced on foreclosed loans. 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 consolidated balance sheets. 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 recorded at fair value based on the observable market data related to the underlying mortgage loans. 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 and Treasury 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 inputs 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 following table presents 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. September 30, 2016 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,838.6 $ — $ 1,838.6 $ — Mortgage servicing rights (1) 2,725.6 — — 2,725.6 Derivative financial instruments: IRLCs 123.0 — 123.0 — Forward MBS trades 0.6 — 0.6 — LPCs 2.8 — 2.8 — Treasury futures 0.5 — 0.5 — Interest rate swaps and caps 0.2 — 0.2 — Eurodollar futures (2) — — — — Total assets $ 4,691.3 $ — $ 1,965.7 $ 2,725.6 Liabilities Derivative financial instruments Forward MBS trades $ 13.1 $ — $ 13.1 $ — LPCs 0.7 — 0.7 — Treasury futures 0.3 0.3 Interest rate swaps and caps 0.2 — 0.2 — Eurodollar futures 0.1 — 0.1 — IRLCs (2) — — — — Mortgage servicing rights financing 67.1 — — 67.1 Excess spread financing 1,011.5 — — 1,011.5 Total liabilities $ 1,093.0 $ — $ 14.4 $ 1,078.6 December 31, 2015 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,429.7 $ — $ 1,429.7 $ — Mortgage servicing rights (1) 3,358.3 — — 3,358.3 Derivative financial instruments: IRLCs 89.1 — 89.1 — Forward MBS trades 6.1 — 6.1 — LPCs 3.9 — 3.9 — Interest rate swaps and caps 0.5 — 0.5 — Eurodollar futures 0.1 — 0.1 — Total assets $ 4,887.7 $ — $ 1,529.4 $ 3,358.3 Liabilities Derivative financial instruments Forward MBS trades $ 3.7 $ — $ 3.7 $ — LPCs 1.5 — 1.5 — Interest rate swaps and caps 0.5 — 0.5 — Eurodollar futures 0.1 — 0.1 — IRLCs (2) — — — — Mortgage servicing rights financing 68.7 — — 68.7 Excess spread financing 1,232.1 — — 1,232.1 Total liabilities $ 1,306.6 $ — $ 5.8 $ 1,300.8 (1) Based on the nature and risks of the underlying assets and liabilities, the fair value is presented for the aggregate account. (2) Fair value of derivative instruments are less than $0.1 for the specified dates. The table below presents a reconciliation for all of Nationstar’s Level 3 assets and liabilities measured at fair value on a recurring basis. Assets Liabilities Nine months ended September 30, 2016 Mortgage servicing rights Excess spread financing Mortgage servicing rights financing Beginning balance $ 3,358 $ 1,232 $ 69 Total gains or losses Included in earnings (796 ) (74 ) (2 ) Purchases, issuances, sales and settlements Purchases 50 — — Issuances 140 — — Settlements — (146 ) — Dispositions (27 ) — — Ending balance $ 2,725 $ 1,012 $ 67 Assets Liabilities Twelve months ended December 31, 2015 Mortgage servicing rights Excess spread financing Mortgage servicing rights financing Beginning balance $ 2,950 $ 1,031 $ 49 Total gains or losses Included in earnings (497 ) 25 20 Purchases, issuances, sales and settlements Purchases 730 — — Issuances 222 386 — Settlements — (210 ) — Dispositions (47 ) — — Ending balance $ 3,358 $ 1,232 $ 69 No transfers were made into or out of Level 3 fair value assets and liabilities for the nine months ended September 30, 2016 or the twelve months ended December 31, 2015 . The table below presents a summary of the estimated carrying amount and fair value of Nationstar’s financial instruments. September 30, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 695 $ 695 $ — $ — Restricted cash 336 336 — — Advances and other receivables, net 1,824 — — 1,824 Reverse mortgage interests, net 7,334 — — 7,504 Mortgage loans held for sale 1,839 — 1,839 — Mortgage loans held for investment, net 156 — — 159 Derivative financial instruments 127 — 127 — Financial liabilities Unsecured senior notes 2,000 2,014 — — Advance facilities 1,188 — 1,188 — Warehouse facilities 2,610 — 2,610 — Mortgage servicing rights financing liability 67 — — 67 Derivative financial instruments 14 — 14 — Excess spread financing 1,012 — — 1,012 Participating interest financing 5,488 — 5,646 — HECM Securitization (HMBS) Trust 2015-2 141 — — 147 Trust 2016-1 216 — — 228 Trust 2016-2 178 — — 179 Trust 2016-3 228 — — 227 Nonrecourse debt - legacy assets 54 — — 53 December 31, 2015 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 613 $ 613 $ — $ — Restricted cash 332 332 — — Mortgage loans held for sale 1,430 — 1,430 — Mortgage loans held for investment, net 174 — — 174 Advances and other receivables, net 2,412 — — 2,412 Reverse mortgage interests, net 7,514 — — 7,705 Derivative financial instruments 100 — 100 — Financial liabilities: Unsecured senior notes 2,026 1,912 — — Advance facilities 1,640 — 1,646 — Warehouse facilities 1,890 — 1,893 — Derivative financial instruments 6 — 6 — Excess spread financing 1,232 — — 1,232 Mortgage servicing rights financing liability 69 — — 69 Participating interest financing 5,947 — 6,091 — HECM Securitization (HMBS) Trust 2014-1 227 — — 298 Trust 2015-1 222 — — 275 Trust 2015-2 209 — — 250 Nonrecourse debt - legacy assets 65 — — 74 |
Capital Requirements
Capital Requirements | 9 Months Ended |
Sep. 30, 2016 | |
Mortgage Banking [Abstract] | |
Capital Requirements | 14. 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 $1,136 . As of September 30, 2016 , Nationstar was in compliance with its selling and servicing capital requirements. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies Litigation and Regulatory Matters Nationstar and its subsidiaries are routinely and currently involved in a significant number of legal proceedings concerning matters that arise in the ordinary course of business. The legal proceedings are at varying stages of adjudication, arbitration or investigation. 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, Service Member’s Civil Relief Act, Telephone Consumer Protection Act, Truth in Lending Act, Financial Institutions Reform, Recovery, and Enforcement Act of 1989, unfair, deceptive or abusive acts or practices in violation of the Dodd-Frank Act, the Securities Act of 1933, the Securities Exchange Act of 1934, the Home Mortgage Disclosure Act, Title 11 of the United States Code (aka the Bankruptcy Code), False Claims Act and Making Home Affordable loan modification programs. Some of the proceedings present novel legal theories. In addition, along with others in our industry, the Company is subject to repurchase and indemnification claims and may continue to receive claims in the future, regarding alleged breaches of representations and warranties relating to the sale of mortgage loans, the placement of mortgage loans into securitization trusts or the servicing of mortgage loans securitizations. The Company has entered into agreements with a number of entities that are parties to various securitizations or other agreements that toll applicable limitations periods with respect to their claims. The Company is also subject to legal actions or proceedings related to loss sharing and indemnification provisions of our various acquisitions. Certain of the pending or threatened legal proceedings include claims for substantial compensatory, punitive and/or, statutory damages or claims for an indeterminate amount of damages. Nationstar’s business is also subject to extensive examinations, investigations and reviews by various federal, state and local regulatory and enforcement agencies. Nationstar has historically had a number of open investigations with various regulators or enforcement agencies. We have experienced an increase in regulatory and governmental investigations, subpoenas, examinations and other inquiries. Nationstar is currently the subject of various regulatory or governmental 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. These matters include investigations by the Consumer Financial Protection Bureau, the Securities and Exchange Commission, the Executive Office of the United States Trustees, the Department of Justice, the multistate coalition of mortgage banking regulators, various State Attorneys General, the New York Department of Financial Services, and the California Department of Business Oversight. These specific matters and other pending or potential future investigations, subpoenas, examinations or inquiries may lead to administrative, civil or criminal proceedings, and possibly result in remedies including fines, penalties, restitution, or alterations in our business practices, and in additional expenses and collateral costs. 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 and governmental 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 and governmental 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 $16 and $49 for the three and nine months ended September 30, 2016 , and $14 and $37 for the three and nine months ended September 30, 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 litigation and regulatory and governmental 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 $19 to $55 in excess of the accrued liability (if any) related to those matters as of September 30, 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 and the Company cannot provide assurance that its litigations reserves will not need to be adjusted in the future. Thus, our exposure and ultimate losses may be higher, and possibly significantly so, than the amounts accrued or this aggregate amount. In our experience, legal proceedings are inherently unpredictable. One or more of the following factors frequently contribute to this inherent unpredictability: the proceeding is in its early stages; the damages sought are unspecified, unsupported or uncertain; it is unclear whether a case brought as a class action will be allowed to proceed on that basis or, if permitted to proceed as a class action, how the class will be defined; the other party is seeking relief other than or in addition to compensatory damages (including, in the case of regulatory and governmental investigations and inquiries, the possibility of fines and penalties); the matter presents meaningful legal uncertainties, including novel issues of law; we have not engaged in meaningful settlement discussions; discovery has not started or is not complete; there are significant facts in dispute; predicting possible outcomes depends on making assumptions about future decisions of courts or regulatory bodies or the behavior of other parties; and there are a large number of parties named as defendants (including where it is uncertain how damages or liability, if any, will be shared among multiple defendants). Generally, the less progress that has been made in the proceedings or the broader the range of potential results, the harder it is for us to estimate losses or ranges of losses that it is reasonably possible we could incur. Based on current knowledge, and after consultation with counsel, management believes that the current legal accrued liability is appropriate, and the amount of any incremental liability arising from these matters is not expected to have a material adverse effect on the consolidated financial condition of the Company, although the outcome of such proceedings could be material to the Company’s operating results and cash flows for a particular period depending, on among other things, the level of the Company’s revenues or income for such period. However, in the event of significant developments on existing cases, it is possible that the ultimate resolution, if unfavorable, may be material to the Company’s consolidated financial statements. Loan and Other Commitments Nationstar enters into IRLCs with prospective borrowers whereby the Company commits to lend a certain loan amount under specific terms and interest rates to the borrower. Nationstar also enters into LPCs with prospective sellers. These loan commitments are treated as derivatives and are carried at fair value. See Note 7, Derivative Financial Instruments. Nationstar has certain reverse MSRs and reverse mortgage loans related to approximately $26,855 of UPB in reverse mortgage loans. As servicer for these reverse mortgage loans, among other things, the Company is obligated to fund borrowers' draws to the loan customers as required in accordance with the loan agreement. As of September 30, 2016 , the Company’s maximum unfunded advance obligation to fund borrower draws related to these MSRs and loans was approximately $2,738 . Upon funding any portion of these draws, the Company expects to securitize and sell the advances in transactions that will be accounted for as a financing arrangement. |
Business Segment Reporting
Business Segment Reporting | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | 16. 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 consistent with 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. The following tables present financial information by segment. Three months ended September 30, 2016 Servicing Originations Xome Eliminations Total Operating Segments Corporate and Other Consolidated Revenues Service related, net $ 210 $ 14 $ 107 $ (26 ) $ 305 $ — $ 305 Net gain on mortgage loans held for sale — 211 — 26 237 — 237 Total revenues 210 225 107 — 542 — 542 Total expenses 154 142 87 — 383 24 407 Other income (expenses) Interest income 82 17 — — 99 4 103 Interest expense (107 ) (16 ) — — (123 ) (42 ) (165 ) Other — (1 ) — — (1 ) (1 ) (2 ) Total other income (expenses), net (25 ) — — — (25 ) (39 ) (64 ) Income (loss) before taxes $ 31 $ 83 $ 20 $ — $ 134 $ (63 ) $ 71 Depreciation and amortization $ 7 $ 2 $ 4 $ — $ 13 $ 9 $ 22 Total assets 12,250 4,523 345 — 17,118 (1,272 ) 15,846 Three months ended September 30, 2015 Servicing Originations Xome Eliminations Total Operating Segments Corporate and Other Consolidated Revenues Service related, net $ 107 $ 18 $ 109 $ (23 ) $ 211 $ — $ 211 Net gain on mortgage loans held for sale — 163 — 23 186 — 186 Total revenues 107 181 109 — 397 — 397 Total expenses 208 132 92 — 432 14 446 Other income (expenses) Interest income 89 19 — — 108 5 113 Interest expense (115 ) (18 ) — — (133 ) (43 ) (176 ) Other — — — — — — — Total other income (expenses), net (26 ) 1 — — (25 ) (38 ) (63 ) Income (loss) before taxes $ (127 ) $ 50 $ 17 $ — $ (60 ) $ (52 ) $ (112 ) Depreciation and amortization $ 7 $ 5 $ 4 $ — $ 16 $ 4 $ 20 Total assets 14,120 1,899 285 — 16,304 693 16,997 Nine months ended September 30, 2016 Servicing Originations Xome Eliminations Total Operating Segments Corporate and Other Consolidated Revenues Service related, net $ 225 $ 42 $ 327 $ (93 ) $ 501 $ 1 $ 502 Net gain on mortgage loans held for sale — 531 — 93 624 — 624 Total revenues 225 573 327 — 1,125 1 1,126 Total expenses 488 400 274 — 1,162 70 1,232 Other income (expenses) Interest income 254 48 — — 302 11 313 Interest expense (325 ) (44 ) — — (369 ) (124 ) (493 ) Other — (1 ) — — (1 ) (1 ) (2 ) Total other income (expenses), net (71 ) 3 — — (68 ) (114 ) (182 ) Income (loss) before taxes $ (334 ) $ 176 $ 53 $ — $ (105 ) $ (183 ) $ (288 ) Depreciation and amortization $ 17 $ 7 $ 16 $ — $ 40 $ 26 $ 66 Total assets 12,250 4,523 345 — 17,118 (1,272 ) 15,846 Nine months ended September 30, 2015 Servicing Originations Xome Eliminations Total Operating Segments Corporate and Other Consolidated Revenues Service related, net $ 550 $ 38 $ 339 $ (45 ) $ 882 $ 2 $ 884 Net gain on mortgage loans held for sale — 470 — 45 515 2 517 Total revenues 550 508 339 — 1,397 4 1,401 Total expenses 600 349 266 — 1,215 56 1,271 Other income (expenses) Interest income 181 51 — — 232 11 243 Interest expense (263 ) (47 ) — — (310 ) (129 ) (439 ) Other (1 ) — — — (1 ) — (1 ) Total other income (expenses), net (83 ) 4 — — (79 ) (118 ) (197 ) Income (loss) before taxes $ (133 ) $ 163 $ 73 $ — $ 103 $ (170 ) $ (67 ) Depreciation and amortization $ 19 $ 13 $ 12 $ — $ 44 $ 8 $ 52 Total assets 14,120 1,899 285 — 16,304 693 16,997 |
Guarantor Financial Statement I
Guarantor Financial Statement Information | 9 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Guarantor Financial Statement Information | 17. Guarantor Financial Statement Information As of September 30, 2016 , Nationstar Mortgage LLC and Nationstar Capital Corporation (1) (collectively, the "Issuer"), both wholly-owned subsidiaries of Nationstar, have issued $2,000 aggregate principal amount of unsecured senior notes, net of repayments, 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 SEPTEMBER 30, 2016 Nationstar Issuer Guarantor (Subsidiaries) Non-Guarantor (Subsidiaries) Eliminations Consolidated Assets Cash and cash equivalents $ — $ 664 $ 1 $ 30 $ — $ 695 Restricted cash — 170 — 166 — 336 Mortgage servicing rights — 2,732 — — — 2,732 Advances and other receivables, net — 1,824 — — — 1,824 Reverse mortgage interests, net — 6,537 — 797 — 7,334 Mortgage loans held for sale — 1,782 — 57 — 1,839 Mortgage loans held for investment, net — — — 156 — 156 Property and equipment, net — 121 1 27 — 149 Derivative financial instruments — 125 — 2 — 127 Other assets (118 ) 530 315 1,104 (1,177 ) 654 Investment in subsidiaries 1,600 622 — — (2,222 ) — Total assets $ 1,482 $ 15,107 $ 317 $ 2,339 $ (3,399 ) $ 15,846 Liabilities and stockholders' equity Unsecured senior notes $ — $ 2,000 $ — $ — $ — $ 2,000 Advance facilities — 209 — 979 — 1,188 Warehouse facilities — 2,558 — 52 — 2,610 Payables and accrued liabilities — 1,098 1 65 — 1,164 MSR related liabilities - nonrecourse — 1,079 — — — 1,079 Mortgage servicing liabilities — 11 — — — 11 Derivative financial instruments — 14 — — — 14 Other nonrecourse debt — 5,481 — 817 — 6,298 Payables to affiliates — 1,057 3 117 (1,177 ) — Total liabilities — 13,507 4 2,030 (1,177 ) 14,364 Total equity 1,482 1,600 313 309 (2,222 ) 1,482 Total liabilities and equity $ 1,482 $ 15,107 $ 317 $ 2,339 $ (3,399 ) $ 15,846 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED SEPTEMBER 30, 2016 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues Service related $ — $ 191 $ 5 $ 109 $ — $ 305 Net gain on mortgage loans held for sale — 228 — 9 — 237 Total revenues — 419 5 118 — 542 Expenses Salaries wages benefits — 155 1 55 — 211 General and administrative — 143 2 51 — 196 Total expenses — 298 3 106 — 407 Other income (expenses) Interest income — 90 — 13 — 103 Interest expense — (147 ) — (18 ) — (165 ) Other expense — (2 ) — — — (2 ) Gain (loss) from subsidiaries 45 9 — — (54 ) — Total other income (expenses), net 45 (50 ) — (5 ) (54 ) (64 ) Income (loss) before taxes 45 71 2 7 (54 ) 71 Income tax expense (benefit) — 29 — — — 29 Net income (loss) 45 42 2 7 (54 ) 42 Less: net income (loss) attributable to noncontrolling interests — (3 ) — — — (3 ) Net income (loss) excluding noncontrolling interests $ 45 $ 45 $ 2 $ 7 $ (54 ) $ 45 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS NINE MONTHS ENDED SEPTEMBER 30, 2016 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues Service related $ — $ 151 $ 19 $ 332 $ — $ 502 Net gain on mortgage loans held for sale — 595 — 29 — 624 Total revenues — 746 19 361 — 1,126 Expenses Salaries wages benefits — 448 3 162 — 613 General and administrative — 453 6 160 — 619 Total expenses — 901 9 322 — 1,232 Other income (expenses) Interest income — 276 — 37 — 313 Interest expense — (437 ) — (56 ) — (493 ) Other expense — (2 ) — — — (2 ) Gain (loss) from subsidiaries (179 ) 30 — — 149 — Total other income (expenses), net (179 ) (133 ) — (19 ) 149 (182 ) Income (loss) before taxes (179 ) (288 ) 10 20 149 (288 ) Income tax expense (benefit) — (106 ) — — — (106 ) Net income (loss) (179 ) (182 ) 10 20 149 (182 ) Less: net income (loss) attributable to noncontrolling interests — (3 ) — — — (3 ) Net income (loss) excluding noncontrolling interests $ (179 ) $ (179 ) $ 10 $ 20 $ 149 $ (179 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2016 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating Activities Net income (loss) $ (179 ) $ (179 ) $ 10 $ 20 $ 149 $ (179 ) Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: Noncontrolling interest — (3 ) — — — (3 ) (Gain) loss from subsidiaries 179 (30 ) — — (149 ) — Share-based compensation — 13 — 5 — 18 Excess tax deficiency from share-based compensation — 4 — — — 4 Net gain on mortgage loans held for sale — (595 ) — (29 ) — (624 ) Provision for reserves on advances and other receivables — 85 — — — 85 Mortgage loans originated and purchased, net of fees — (15,078 ) — (767 ) — (15,845 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (1,138 ) — — — (1,138 ) Sales proceeds and loan payments proceeds for mortgage loans held for sale and held for investment — 23,459 — (6,416 ) — 17,043 Other loss — 2 — — — 2 Depreciation and amortization — 50 — 16 — 66 Amortization (accretion) of premiums (discounts) — (7,275 ) — 7,302 — 27 Fair value changes in excess spread financing — (75 ) — — — (75 ) Fair value changes and amortization/accretion of mortgage servicing rights — 784 — — — 784 Fair value change in mortgage servicing rights financing liability — (2 ) — — — (2 ) Changes in assets and liabilities: Advances and other receivables, net — 519 — — — 519 Reverse mortgage interests, net — 294 — (115 ) — 179 Other assets 117 (683 ) (10 ) 439 — (137 ) Payables and accrued liabilities — (135 ) — (4 ) — (139 ) Net cash attributable to operating activities 117 17 — 451 — 585 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2016 (Continued) Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities Property and equipment additions, net of disposals — (38 ) — (9 ) — (47 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (46 ) — — — (46 ) Sale of forward mortgage servicing rights — 27 — — — 27 Proceeds on sale of reverse mortgage servicing rights — 1 — — — 1 Net cash attributable to investing activities — (56 ) — (9 ) — (65 ) Financing activities Transfers (to) from restricted cash, net — 33 — (33 ) — — Debt financing costs — (10 ) — — — (10 ) Increase (decrease) warehouse facilities — 774 — (56 ) — 718 Increase (decrease) advance facilities — (29 ) — (429 ) — (458 ) Proceeds from HECM securitizations — (4 ) — 728 — 724 Repayment of HECM securitizations — — — (624 ) — (624 ) Repayment of excess spread financing — (146 ) — — — (146 ) Increase (decrease) in participating interest financing in reverse mortgage interests — (480 ) — — — (480 ) Repayment of nonrecourse debt–legacy assets — 1 — (13 ) — (12 ) Repurchase of unsecured senior notes — (29 ) — — — (29 ) Excess tax deficiency from share-based compensation — (4 ) — — — (4 ) Surrender of shares relating to stock vesting (3 ) — — — — (3 ) Repurchase of common stock (114 ) — — — — (114 ) Net cash attributable to financing activities (117 ) 106 — (427 ) — (438 ) Net increase (decrease) in cash — 67 — 15 — 82 Cash and cash equivalents at beginning of period — 597 1 15 — 613 Cash and cash equivalents at end of period $ — $ 664 $ 1 $ 30 $ — $ 695 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 $ 1 $ 15 $ — $ 613 Restricted cash — 199 — 133 — 332 Mortgage servicing rights — 3,367 — — — 3,367 Advances and other receivables, net — 2,412 — — — 2,412 Reverse mortgage interests, net — 6,832 — 682 — 7,514 Mortgage loans held for sale — 1,305 — 125 — 1,430 Mortgage loans held for investment, net — 1 — 173 — 174 Property and equipment, net — 113 1 29 — 143 Derivative financial instruments — 96 — 4 — 100 Other assets 3 610 303 1,497 (1,881 ) 532 Investment in subsidiaries 1,768 510 — — (2,278 ) — Total assets $ 1,771 $ 16,042 $ 305 $ 2,658 $ (4,159 ) $ 16,617 Liabilities and stockholders' equity Unsecured senior notes $ — $ 2,026 $ — $ — $ — $ 2,026 Advance facilities — 232 — 1,408 — 1,640 Warehouse facilities — 1,782 — 108 — 1,890 Payables and accrued liabilities 4 1,222 1 69 — 1,296 MSR related liabilities - nonrecourse — 1,301 — — — 1,301 Mortgage servicing liabilities — 25 — — — 25 Derivative financial instruments — 6 — — — 6 Other nonrecourse debt — 5,943 — 723 — 6,666 Payables to affiliates — 1,737 1 143 (1,881 ) — Total liabilities 4 14,274 2 2,451 (1,881 ) 14,850 Total equity 1,767 1,768 303 207 (2,278 ) 1,767 Total liabilities and equity $ 1,771 $ 16,042 $ 305 $ 2,658 $ (4,159 ) $ 16,617 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED SEPTEMBER 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues Service related, net $ — $ 96 $ 16 $ 99 $ — $ 211 Net gain on mortgage loans held for sale — 174 — 12 — 186 Total revenues — 270 16 111 — 397 Expenses Salaries wages benefits — 141 4 56 — 201 General and administrative — 200 1 44 — 245 Total expenses — 341 5 100 — 446 Other income (expenses) Interest income — 102 — 11 — 113 Interest expense — (157 ) — (19 ) — (176 ) Gain (loss) from subsidiaries (66 ) 15 — — 51 — Total other income (expenses), net (66 ) (40 ) — (8 ) 51 (63 ) Income (loss) before taxes (66 ) (111 ) 11 3 51 (112 ) Income tax benefit — (46 ) (1 ) — — (47 ) Net income (loss) (66 ) (65 ) 12 3 51 (65 ) Less: net income (loss) attributable to noncontrolling interests — 1 — — — 1 Net income (loss) excluding noncontrolling interests $ (66 ) $ (66 ) $ 12 $ 3 $ 51 $ (66 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS NINE MONTHS ENDED SEPTEMBER 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues Service related, net $ — $ 529 $ 13 $ 342 $ — $ 884 Net gain on mortgage loans held for sale — 484 — 33 — 517 Total Revenues — 1,013 13 375 — 1,401 Expenses Salaries, wages and benefits — 411 4 163 — 578 General and administrative — 558 1 134 — 693 Total expenses — 969 5 297 — 1,271 Other income (expenses) Interest income — 215 — 28 — 243 Interest expense — (388 ) — (51 ) — (439 ) Other expense — — — (1 ) — (1 ) Gain (loss) from subsidiaries (40 ) 62 — — (22 ) — Total other income (expenses), net (40 ) (111 ) — (24 ) (22 ) (197 ) Income (loss) before taxes (40 ) (67 ) 8 54 (22 ) (67 ) Income tax expense (benefit) — (31 ) — — — (31 ) Net income (loss) (40 ) (36 ) 8 54 (22 ) (36 ) Less: net income (loss) attributable to noncontrolling interests — 4 — — — 4 Net income (loss) excluding noncontrolling interests $ (40 ) $ (40 ) $ 8 $ 54 $ (22 ) $ (40 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities Net income (loss) $ (40 ) $ (40 ) $ 8 $ 54 $ (22 ) $ (40 ) Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: Noncontrolling interest — 4 — — — 4 (Gain) loss from subsidiaries 40 (62 ) — — 22 — Share-based compensation — 8 — 7 — 15 Excess tax benefit from share based compensation — (1 ) — — — (1 ) Net gain on mortgage loans held for sale — (481 ) — (36 ) — (517 ) Mortgage loans originated and purchased, net of fees — (13,137 ) — (833 ) — (13,970 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (1,393 ) — — — (1,393 ) Sales proceeds and loan payments proceeds for mortgage loans held for sale and held for investment — 14,277 — 772 — 15,049 Other loss — — — 1 — 1 Provision for reserves on advances and other receivables — 39 — — — 39 Depreciation and amortization — 40 — 12 — 52 Amortization (accretion) of premiums (discounts) — (17 ) — (3 ) — (20 ) Fair value changes in excess spread financing — (23 ) — — — (23 ) Fair value changes and amortization of mortgage servicing rights — 500 — — — 500 Fair value change in mortgage servicing rights financing liability — 7 — — — 7 Changes in assets and liabilities: Advances and other receivables, net — 477 — 2 — 479 Reverse mortgage interests, net — 8 — (173 ) — (165 ) Other assets 6 69 (6 ) (22 ) — 47 Payables and accrued liabilities — (125 ) 1 (3 ) — (127 ) Net cash attributable to operating activities 6 150 3 (222 ) — (63 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2015 (Continued) Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities Property and equipment additions, net of disposals — (23 ) — (21 ) — (44 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (615 ) — — — (615 ) Purchase of reverse mortgage interests — (4,815 ) — — — (4,815 ) Sale of forward service rights — 41 — — — 41 Acquisitions, net of cash acquired — — — (45 ) — (45 ) Net cash attributable to investing activities — (5,412 ) — (66 ) — (5,478 ) Financing activities Transfers to restricted cash, net — (9 ) — (183 ) — (192 ) Issuance of common stock, net of issuance cost — 498 — — — 498 Debt financing costs — (10 ) — — — (10 ) Increase in warehouse facilities — 630 — 100 — 730 Increase (decrease) in advance facilities — (291 ) — 143 — (148 ) Proceeds from HECM Securitization — — — 342 — 342 Repayment of HECM Securitization — — — (103 ) — (103 ) Issuance of excess spread financing — 263 — — — 263 Repayment of excess spread financing — (155 ) — — — (155 ) Increase (decrease) in participating interest financing in reverse mortgage interests — 4,629 — — — 4,629 Repayment of nonrecourse debt – legacy assets — (1 ) — (9 ) — (10 ) Excess tax benefit from share-based compensation — 1 — — — 1 Surrender of shares relating to stock vesting (6 ) — — — — (6 ) Net cash attributable to financing activities (6 ) 5,555 — 290 — 5,839 Net increase in cash and cash equivalents — 293 3 2 — 298 Cash and cash equivalents at beginning of period — 280 — 19 — 299 Cash and cash equivalents at end of period $ — $ 573 $ 3 $ 21 $ — $ 597 |
Transactions with Affiliates
Transactions with Affiliates | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates | 18. Transactions with Affiliates Nationstar enters into arrangements with Fortress, its subsidiaries managed funds, or affiliates for purposes of financing the Company's MSR acquisitions and cash flow requirements. An affiliate of Fortress holds a majority of the outstanding common shares of the Company. The following summarizes the transactions with affiliates of Fortress. During the three and nine months ended September 30, 2016 , the Company earned revenues from affiliates of Fortress totaling $3 and $8 , respectively, compared to $2 and $7 from the same periods in 2015 , respectively, as described below. 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. Nationstar receives a monthly net servicing fee equal to 0.5% per annum on the unpaid principal balance of the Portfolios, which was $597 and $658 , at September 30, 2016 and December 31, 2015 respectively. For the three months ended September 30, 2016 and 2015 , Nationstar received servicing fees and other performance incentive fees of $1 and $1 , respectively. For the nine months ended September 30, 2016 and 2015 , Nationstar received servicing fees and other performance incentive fees of $2 and $ 3 , respectively. New Residential Investment Corp. ("New Residential") Excess Spread Financing Nationstar has entered into several agreements with certain entities formed by New Residential, in which New Residential and/or certain funds managed by Fortress own an interest (each a "New Residential Entity"). 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 a receipt of a fixed base servicing fee per loan. Nationstar, as the servicer of the loans, retains all ancillary revenues and the remaining portion of the excess cash flow after payment of the fixed base servicing fee and also provides all advancing functions for the portfolio. The related New Residential Entity does not have prior or ongoing obligations associated with these MSR portfolios. 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. The fair value of the outstanding liability related to these agreements was $1,012 and $1,232 at September 30, 2016 and December 31, 2015 , respectively. Fees paid to New Residential Entity totaled $71 and $222 for the three and nine months ended September 30, 2016 , respectively and $77 and $216 for the three and nine months ended September 30, 2015 , respectively, which are recorded as a reduction to servicing fee revenue, net. 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 servicing 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. Accordingly, Nationstar accounts for the MSRs and the related MSRs financing liability on its consolidated balance sheets. Special purpose subsidiaries of Nationstar previously issued approximately $2,100 of nonrecourse variable funding notes to finance the advances funded or acquired by Nationstar. These notes were issued by two wholly-owned special purpose entities under servicer advance facilities. Pursuant to a sale agreement, New Residential purchased the outstanding equity of the wholly-owned special purpose entities. 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 servicing advances to New Residential. The fair value of the outstanding liability related to the Sale Agreement was $67 and $69 at September 30, 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 acquired by New Residential and/or its various affiliates and trust entities. For the three months ended September 30, 2016 and 2015 , Nationstar recognized revenue of $1 and $1 related to these servicing arrangements, respectively. For the nine months ended September 30, 2016 and 2015 , Nationstar recognized revenue of $4 and $3 related to these servicing arrangements, respectively. Nationstar acted as servicer or master servicer for New Residential related to for the collapse of certain securitization trusts pursuant to the exercise by New Residential of its clean up call rights. The Company earned revenue of $0.5 for these administration services during the three months ended September 30, 2016 . The Company earned revenue of $0.1 for these administration services during the three months ended September 30, 2015 . For the nine months ended September 30, 2016 and 2015 , Nationstar earned revenue of $0.7 and $0.2 for these administration services, respectively. In February 2013, Nationstar acquired certain fixed and adjustable rate reverse mortgage loans with an unpaid principal balance totaling $83 for a purchase price of $50 . In conjunction with this acquisition, Nationstar entered into an agreement with NIC Reverse Loan LLC ("NIC"), a subsidiary of New Residential, whereby it sold NIC a 70% participating interest of the acquired reverse mortgage loans. Both Nationstar and NIC 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 records to servicing fee revenue the fixed payments received per loan for servicing NICs interest in these reverse mortgage loans, which totaled $0.1 and $0.1 for the three months ended September 30, 2016 and 2015 , respectively and $0.3 and $0.2 for the nine months ended September 30, 2016 and 2015 , respectively. Nationstar records NICs interest as a reduction to reverse mortgage interests on the Company's consolidated balance sheets. OneMain Financial Holdings, LLC On November 15, 2015, Springleaf Holdings, Inc. which is primarily owned by certain private equity funds managed by an affiliate of Fortress, completed its acquisition of OneMain Financial Holdings, LLC, and changed its corporate name from Springleaf Holdings, Inc. to OneMain Holdings, Inc. Nationstar receives a monthly per loan subservicing fee and other performance incentive fees subject to agreements with OneMain Financial Holdings, LLC. For the three months ended September 30, 2016 and 2015 , Nationstar recognized revenue of $0.3 and $0.3 , respectively, in additional servicing and other performance incentive fees related to these portfolios. For the nine months ended September 30, 2016 and 2015 , Nationstar recognized revenue of $1 and $1 , 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) | 9 Months Ended |
Sep. 30, 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 generally accepted accounting principles 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 nine months ended September 30, 2016 , there were no significant changes to those accounting policies. Dollar amounts are reported in millions, except per share data and other key metrics, unless otherwise noted. The interim consolidated financial statements are unaudited; however, in the opinion of management, all adjustments considered necessary for a fair presentation of the results of the interim periods have been included. 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 ("VIE") where Nationstar's wholly-owned subsidiaries are the primary beneficiaries. Nationstar applies the equity method of accounting to investments where it is able to exercise significant influence, but not control, over the policies and procedures of the entity and 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. Assets and liabilities of VIEs and their respective results of operations are consolidated from the date that Nationstar became the primary beneficiary through the date Nationstar ceases to be the primary beneficiary. |
Reclassifications | Reclassifications In the second quarter of 2016, the Company reclassified certain assets to more closely align assets related to amounts from agencies and investors from other assets to advances and other receivables in its previously reported consolidated balance sheet as of December 31, 2015 . The revised balances of those accounts as of December 31, 2015 are shown in the table below. In addition, 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 Accounting Standards Update ("ASU") No. 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , during the first quarter of 2016 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 . |
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 No. 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which requires 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 No. 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. Otherwise, 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), 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 Updates No. 2016-08 and 2016-12, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , clarify that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer, provides guidance regarding how to apply the control principle when services are provided and when goods or services are combined with other goods or services, and clarifies the definition of a completed contract. Additional clarification is provided that if Topic 606 is applied retrospectively to the financial statements, it does not have to be treated as an accounting change. 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), 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. Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (ASU 2016-13), requires organization to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. The update eliminates the probable initial recognition threshold in current GAAP and, instead, reflects an entity’s current estimate of all expected credit losses. Previously, when credit losses were measured under GAAP, an entity generally only considered past events and current conditions in measuring the incurred loss. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 14, 2019. 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. 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15), makes eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017, and will require adoption on a retrospective basis. The Company is currently evaluating the impact the application of ASU 2016-15 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. Accordingly, a fair value measurement should be determined based on the assumptions 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. it intends to sell to Fannie Mae, Freddie Mac and Ginnie Mae. Additionally, Nationstar holds mortgage loans it intends to sell into the secondary markets through 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, advance recovery rates 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 and Other Receivables, Net (Level 3) - Advances and other receivables are valued at their net realizable value, which generally approximates fair value because advances have no stated maturity and the effect of interest over their recovery period is not material. See Note 3, Advances and Other Receivables, Net for more information. Reverse Mortgage Interests, Net (Level 3) – The Company’s reverse mortgage interests are primarily comprised of HECM loans that are insured by FHA and guaranteed by Ginnie Mae upon securitization. Fair value for active reverse mortgage loans is estimated based on pricing of recent securitizations with similar attributes and characteristics, such as collateral values and prepayment speeds and adjusted as necessary for differences. The recent timing of these transactions allows the pricing to consider the current interest rate risk exposures. The fair value of inactive reverse mortgage loans is established based upon a discounted par value of the loan derived from the Company’s historical loss factors experienced on foreclosed loans. 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 consolidated balance sheets. 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 recorded at fair value based on the observable market data related to the underlying mortgage loans. 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 and Treasury 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 inputs 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) | 9 Months Ended |
Sep. 30, 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 Accounting Standards Update ("ASU") No. 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , during the first quarter of 2016 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 . The revised balances of those accounts as of December 31, 2015 are shown in the table below. As presented Reclassification As adjusted December 31, 2015 ASU 2015-03 Other December 31, 2015 Advances and other receivables, net $ 2,223 $ — $ 189 $ 2,412 Other assets 759 (38 ) (189 ) 532 Unsecured senior notes 2,049 (23 ) — 2,026 Advance facilities 1,646 (6 ) — 1,640 Warehouse facilities 1,894 (4 ) — 1,890 Other nonrecourse debt 6,671 (5 ) — 6,666 |
Mortgage Servicing Rights ("M27
Mortgage Servicing Rights ("MSR") and Related Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Transfers and Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | 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. September 30, 2016 December 31, 2015 UPB Fair Value UPB Fair Value Credit sensitive $ 192,728 $ 1,665 $ 224,334 $ 2,017 Interest sensitive 120,379 1,060 121,342 1,341 Total $ 313,107 $ 2,725 $ 345,676 $ 3,358 The activity of MSRs carried at fair value is as follows for the dates indicated. Nine months ended September 30, Forward MSRs - Fair Value 2016 2015 Fair value at the beginning of the period $ 3,358 $ 2,950 Additions: Servicing resulting from transfers of financial assets 140 169 Purchases of servicing assets 50 695 Dispositions: Sales of servicing assets (27 ) (46 ) Changes in fair value: Due to changes in valuation inputs or assumptions used in the valuation model (494 ) (197 ) Other changes in fair value (302 ) (338 ) Fair value at the end of the period $ 2,725 $ 3,233 The following table sets forth the carrying value of Nationstar's MSR and the related liabilities as of September 30, 2016 and December 31, 2015 . MSRs and Related Liabilities September 30, 2016 December 31, 2015 Forward MSRs - fair value $ 2,725 $ 3,358 Reverse MSRs - LOCOM 7 9 Mortgage servicing rights $ 2,732 $ 3,367 Mortgage servicing liabilities - LOCOM $ 11 $ 25 Excess spread financing - fair value $ 1,012 $ 1,232 Mortgage servicing rights financing liability - fair value 67 69 MSR related liabilities (nonrecourse) $ 1,079 $ 1,301 |
Schedule of Assumptions for Fair Value of Mortgage Service Rights | The range of various assumptions used in Nationstar's valuation of excess spread financing are as follows. Excess Spread Financing Prepayment Speeds Average Discount Recapture Rate September 30, 2016 Low 8.4% 3.7 8.5% 6.7% High 18.3% 6.5 14.1% 28.3% Weighted-average 12.5% 5.4 11.0% 18.0% 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 sets forth the weighted average assumptions used in the valuation of mortgage servicing rights financing liability. September 30, 2016 December 31, 2015 Advance financing rates 3.3 % 3.0 % Annual advance recovery rates 24.2 % 20.9 % Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated. Credit Sensitive September 30, 2016 December 31, 2015 Discount rate 11.6 % 11.6 % Weighted-average prepayment speeds 17.4 % 16.5 % Expected weighted-average life 5.5 years 5.9 years Interest Sensitive Discount rate 9.2 % 9.1 % Weighted-average prepayment speeds 16.1 % 12.4 % Expected weighted-average life 5.0 years 6.1 years |
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block] | The following table shows the hypothetical effect on the fair value of excess spread financing using certain unfavorable variations of the expected levels of key assumptions used in valuing these liabilities at the dates indicated. Discount Rate Prepayment Speeds 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change September 30, 2016 Excess spread financing $ 36 $ 74 $ 41 $ 82 December 31, 2015 Excess spread financing $ 42 $ 87 $ 37 $ 76 The following table shows the hypothetical effect on the fair value of the MSRs using certain unfavorable variations of the expected levels of key assumptions used in valuing these assets at September 30, 2016 and December 31, 2015 . Discount Rate Total Prepayment Speeds 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change September 30, 2016 Mortgage servicing rights $ (88 ) $ (171 ) $ (126 ) $ (240 ) December 31, 2015 Mortgage servicing rights $ (123 ) $ (238 ) $ (132 ) $ (253 ) |
Activity of MSRs at Amortized Cost | The following table sets forth the amortized carrying value and activity of reverse MSRs for the nine months ended September 30, 2016 and 2015 . Nine months ended September 30, 2016 2015 Assets Liabilities Assets Liabilities Reverse MSRs and Liabilities - LOCOM Balance at the beginning of the period $ 9 $ 25 $ 12 $ 65 Amortization/accretion (2 ) (14 ) (2 ) (37 ) Balance at end of the period $ 7 $ 11 $ 10 $ 28 Fair value at end of period $ 25 $ 2 $ 30 $ 11 |
Schedule of Fees Earned in Exchange for Servicing Financial Assets | The following table sets forth the items comprising of revenue associated with servicing loan portfolios. Three months ended September 30, Nine months ended September 30, Servicing Segment Revenue 2016 2015 2016 2015 Contractually specified servicing fees including subservicing fees $ 254 $ 285 $ 786 $ 827 Reverse servicing fees 11 32 46 75 Incentive and modification income 35 21 82 75 Late fees 19 18 57 52 Other service-related income 66 62 214 173 Revenue sharing related to MSR financing and excess spread (75 ) (77 ) (223 ) (225 ) Amortization (92 ) (83 ) (235 ) (247 ) Mark-to-market (8 ) (151 ) (502 ) (180 ) Total servicing fee income $ 210 $ 107 $ 225 $ 550 |
Advances and Other Receivable28
Advances and Other Receivables, Net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Advances and other receivables, net consists of the following. September 30, 2016 December 31, 2015 Servicing advances $ 1,683 $ 2,254 Receivables from agencies and investors 321 288 Reserves (180 ) (130 ) Total advances and other receivables, net $ 1,824 $ 2,412 |
Reverse Mortgage Interests, N29
Reverse Mortgage Interests, Net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Reverse Mortgage Interests [Abstract] | |
Reverse Mortgage Interest | Reverse mortgage interests, net consist of the following. September 30, 2016 December 31, 2015 Participating interests in HMBS $ 5,412 $ 5,864 Other interests securitized 836 715 Unsecuritized interests 1,180 988 Reserves (94 ) (53 ) Total reverse mortgage interests, net $ 7,334 $ 7,514 Unsecuritized interests Unsecuritized interests in reverse mortgages consist primarily of the following. September 30, 2016 December 31, 2015 Repurchased HECM loans $ 803 $ 591 HECM related receivables 283 290 Funded borrower draws not yet securitized 74 83 Foreclosed assets 20 24 Total unsecuritized interests $ 1,180 $ 988 |
Mortgage Loans Held for Sale 30
Mortgage Loans Held for Sale and Investment (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Mortgage Loans Held for Sale and Investment [Abstract] | |
Schedule of Mortgage Loans Held-for-Sale | The total UPB of mortgage loans held for sale on nonaccrual status was as follows for the dates indicated. September 30, 2016 December 31, 2015 Mortgage Loans Held for Sale - Unpaid Principal Balance UPB Fair Value UPB Fair Value Non-accrual $ 109 $ 105 $ 31 $ 29 Mortgage loans held for sale are recorded at fair value as set forth below. September 30, 2016 December 31, 2015 Mortgage loans held for sale – unpaid principal balance $ 1,774 $ 1,374 Mark-to-market adjustment (1) 65 56 Total mortgage loans held for sale $ 1,839 $ 1,430 (1) The mark-to-market adjustment is recorded in net gain on mortgage loans held for sale in the consolidated statements of operations. |
Reconciliation of Mortgage Loans Held-for-Sale to Cash Flow | A reconciliation of the changes in mortgage loans held for sale is presented in the following table. Nine months ended September 30, 2016 2015 Mortgage loans held for sale – beginning balance $ 1,430 $ 1,278 Mortgage loans originated and purchased, net of fees 15,788 13,970 Transfer of mortgage loans held for sale to advances/accounts receivable related to claims (1) (16 ) (46 ) Transfer of mortgage loans held for sale to other assets 9 — Repurchase of loans out of Ginnie Mae securitizations 1,138 1,369 Loans sold (16,510 ) (14,685 ) Mortgage loans held for sale – ending balance $ 1,839 $ 1,886 (1) Amounts are comprised of claims made on certain government guaranteed mortgage loans upon foreclosure. |
Schedule of Loans Held for Investment | Mortgage loans held for investment, net are comprised of the following. September 30, 2016 December 31, 2015 Mortgage loans held for investment, net – unpaid principal balance $ 225 $ 250 Transfer discount: Accretable (14 ) (15 ) Non-accretable (52 ) (57 ) Allowance for loan losses (3 ) (4 ) Total mortgage loans held for investment, net $ 156 $ 174 |
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 are set forth below. Nine months ended September 30, 2016 2015 Accretable Yield Balance at the beginning of the period $ (15 ) $ (16 ) Accretion 2 2 Reclassifications from nonaccretable discount (1 ) (1 ) Balance at the end of the period $ (14 ) $ (15 ) |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following. September 30, 2016 December 31, 2015 Accrued revenues $ 172 $ 180 Loans subject to repurchase right from Ginnie Mae 144 117 Taxes receivable 74 — Goodwill 74 71 Intangible assets 42 50 Deposits 39 30 Prepaid expenses 17 20 Real estate owned (REO), net 26 18 Receivables from affiliates, net 6 8 Other 60 38 Total other assets $ 654 $ 532 |
Derivative Financial Instrume32
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following tables provide the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses). Expiration Dates Outstanding Notional Fair Value Recorded Gains / (Losses) Nine months ended September 30, 2016 Assets Mortgage loans held for sale, net Loan sale commitments 2016 $ 82 $ (0.4 ) $ (0.7 ) Derivative financial instruments IRLCs 2016 4,291 123.0 33.9 Forward MBS trades 2016 708 0.6 (5.5 ) LPCs 2016 354 2.8 (1.1 ) Eurodollar futures (1) 2016-2021 7 — (0.1 ) Treasury futures 2016 63 0.5 0.5 Interest rate swaps 2017 10 0.2 (0.3 ) Liabilities Derivative financial instruments IRLCs (1) 2016 4 — — Forward MBS trades 2016 3,306 13.1 (9.4 ) LPCs 2016 171 0.7 0.8 Eurodollar futures 2016-2021 55 0.1 — Treasury futures 2016 67 0.3 (0.3 ) Interest rate swaps 2017 10 0.2 0.3 Twelve months ended December 31, 2015 Assets Mortgage loans held for sale Loan sale commitments 2016 $ 176 0.3 0.3 Derivative financial instruments IRLCs 2016 2,768 89.1 1.2 Forward MBS trades 2016 1,666 6.1 5.8 LPCs 2016 388 3.9 1.9 Eurodollar futures 2016-2021 176 0.1 0.1 Interest rate swaps and caps 2016-2017 846 0.5 (0.4 ) Liabilities Derivative financial instruments IRLCs (1) 2016 2 — — Forward MBS trades 2016 1,807 3.7 14.6 LPCs 2016 314 1.5 (1.4 ) Eurodollar futures 2016-2021 95 0.1 (0.1 ) Interest rate swaps and caps 2016-2017 13 0.5 (0.4 ) (1) Fair values of derivative instruments are less than $0.1 for the specified dates. |
Indebtedness (Tables)
Indebtedness (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | September 30, 2016 December 31, 2015 Issue Date Maturity Date Class of Note Securitized Amount Outstanding Outstanding Participating Interest Financing (1) _ _ _ $ — $ 5,488 $ 5,947 HECM Securitization (HMBS) Trust 2014-1 (2) December 2014 _ A, M 344 — 227 Trust 2015-1 (3) June 2015 May 2018 A, M 269 — 222 Trust 2015-2 November 2015 November 2025 A, M1, M2 217 141 209 Trust 2016-1 March 2016 February 2026 A, M1, M2 282 216 — Trust 2016-2 June 2016 June 2026 A, M1, M2 209 178 — Trust 2016-3 August 2016 August 2026 A, M1, M2 237 228 — Nonrecourse Debt - Legacy Assets November 2009 October 2039 A 222 54 65 Other nonrecourse debt principal amount 6,305 6,670 Unamortized debt issuance costs (7 ) (4 ) Other nonrecourse debt, net of unamortized debt issuance cost $ 6,298 $ 6,666 (1) Amounts represent the Company's participating interest in various securitized portfolios transferred to the Company. (2) The Company retained approximately $70 and $36 of the Class A and Class M notes upon issuance, respectively, which were later sold in the first quarter of 2015 for proceeds of $73 . In January 2016, the Company executed the optional redemption of the associated notes. (3) In July 2016, the Company executed the optional redemption of the associated notes. Notes Payable September 30, 2016 December 31, 2015 Advance Facilities Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged MBS advance financing facility LIBOR+2.5% March 31, Servicing advance receivables $ 130 $ 67 $ 77 $ 82 $ 89 Nationstar agency advance financing facility LIBOR+2.0% January 15, 2017 Servicing advance receivables 400 230 255 310 364 MBS advance financing facility (2012) LIBOR+5.0% November 30, 2016 Servicing advance receivables 50 40 48 50 70 Nationstar mortgage advance receivable LIBOR+1.9% December 20, 2017 Servicing advance receivables 500 278 319 335 394 MBS servicer advance facility (2014) LIBOR+3.5% September 12, 2017 Servicing advance receivables 125 103 148 106 185 Nationstar agency advance receivables trust LIBOR+2.0% October 9, 2017 Servicing advance receivables 1,400 471 531 763 823 Advance facilities principal amount 1,189 1,378 1,646 1,925 Debt issuance costs (1 ) — (6 ) — Advance facilities, net of unamortized debt issuance costs $ 1,188 $ 1,378 $ 1,640 $ 1,925 September 30, 2016 December 31, 2015 Warehouse Facilities Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged $1,300 warehouse facility LIBOR+2.0% to 2.9% October 17, 2017 Mortgage loans or MBS $ 1,300 $ 855 $ 888 $ 634 $ 678 $850 warehouse facility LIBOR+1.8% to 3.3% June 30, Mortgage loans or MBS 850 526 568 545 622 $500 warehouse facility LIBOR+1.8% to 2.8% September 1, 2017 Mortgage loans or MBS 500 215 219 175 179 $500 warehouse facility LIBOR+2.0% to 2.5% November 15, 2016 Mortgage loans or MBS 500 362 448 257 274 $350 warehouse facility LIBOR+2.2% to 4.5% April 7, Mortgage loans or MBS 350 21 22 98 112 $200 warehouse facility LIBOR+1.5% April 30, Mortgage loans or MBS 200 56 58 8 9 $300 warehouse facility LIBOR+2.3% December 14, 2016 Mortgage loans or MBS 300 164 186 23 28 $350 warehouse facility LIBOR+2.8% to 3.9% November 17, 2016 Mortgage loans or MBS 350 169 185 45 50 $500 warehouse Facility LIBOR+2.1% to 2.5% September 8, 2017 Mortgage loans or MBS 500 191 196 — — $75 warehouse facility (HCM) (1) LIBOR+2.3% to 2.9% October 17, 2016 Mortgage loans or MBS 75 10 12 53 59 $100 warehouse facility (HCM) (1) LIBOR+2.5% to 2.8% November 18, 2016 Mortgage loans or MBS 100 42 44 55 60 Warehouse facilities principal amount 2,611 2,826 1,893 2,071 Debt issuance costs (1 ) — (3 ) — Warehouse facilities, net of unamortized debt issuance costs $ 2,610 $ 2,826 $ 1,890 $ 2,071 Mortgage loans, net $ 1,654 $ 1,725 $ 1,509 $ 1,625 Reverse mortgage interests, net 642 761 351 390 MSR and other collateral 315 340 33 56 (1) These facilities, specific to Home Community Mortgage ("HCM"), were repaid in October 2016. |
Schedule of Unsecured Senior Notes | A summary of the balances of unsecured senior notes is presented below. September 30, 2016 December 31, 2015 $475 face value, 6.500% interest rate payable semi-annually, due August 2018 $ 471 $ 475 $375 face value, 9.625% interest rate payable semi-annually, due May 2019 346 363 $400 face value, 7.875% interest rate payable semi-annually, due October 2020 400 400 $600 face value, 6.500% interest rate payable semi-annually, due July 2021 596 597 $300 face value, 6.500% interest rate payable semi-annually, due June 2022 206 214 Unsecured senior notes principal amount, subtotal 2,019 2,049 Debt issuance costs (19 ) (23 ) Unsecured senior notes, net of unamortized debt issuance costs $ 2,000 $ 2,026 |
Schedule of Maturities of Long-term Debt | As of September 30, 2016 , the expected maturities of Nationstar's unsecured senior notes based on contractual maturities as follows. Year Amount 2016 $ — 2017 — 2018 471 2019 346 2020 400 Thereafter 802 Unsecured senior notes principal amount 2,019 Unamortized debt issuance costs (19 ) Unsecured senior notes, net of unamortized debt issuance costs $ 2,000 |
Payables and Accrued Liabilit34
Payables and Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Payables and Accrued Liabilities | Payables and accrued liabilities consist of the following. September 30, 2016 December 31, 2015 Payables to servicing and subservicing investors $ 429 $ 484 Loans subject to repurchase from Ginnie Mae 144 117 Payables to GSEs and securitized trusts 79 113 Payables to insurance carriers and insurance cancellation reserves 72 70 Accrued bonus and payroll 94 96 Accrued interest 64 61 Professional and legal 49 43 Accrued liabilities and accounts payables 47 73 Repurchase reserves 25 26 Lease obligations 28 13 MSR purchases payables including advances 11 22 Other 122 178 Total payables and accrued liabilities $ 1,164 $ 1,296 |
Securitizations and Financings
Securitizations and Financings (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Assets and Liabilities of VIEs Included in Financial Statements | A summary of the assets and liabilities of Nationstar’s transactions with VIEs included in the Company’s consolidated financial statements is presented below for the periods indicated: September 30, 2016 December 31, 2015 Transfers Reverse Secured Borrowings Transfers Reverse Secured Borrowings Assets Restricted cash $ 129 $ 34 $ 94 $ 36 Reverse mortgage interests, net — 6,208 — 6,547 Advances and other receivables, net 1,105 — 1,581 — Mortgage loans held for investment, net 156 — 173 — Other assets 4 — 5 — Total assets $ 1,394 $ 6,242 $ 1,853 $ 6,583 Liabilities Advance facilities (1) $ 979 $ — $ 1,408 $ — Payables and accrued liabilities 2 — 2 1 Participating interest financing (2) — 5,412 — 5,864 HECM Securitizations (HMBS) Trust 2014-1 — — — 227 Trust 2015-1 — — — 222 Trust 2015-2 — 141 — 209 Trust 2016-1 — 216 — — Trust 2016-2 — 178 — — Trust 2016-3 — 228 — — Nonrecourse debt–legacy assets 54 — 65 — Total liabilities $ 1,035 $ 6,175 $ 1,475 $ 6,523 (1) Advance facilities include the Nationstar agency advance financing facility and notes payable recorded by the Nationstar mortgage advance receivable trust, and the Nationstar agency advance receivables trust. Refer to Notes Payable in Note 8. Indebtedness for additional information. (2) Participating interest financing excludes premiums. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) on continuing operations were as follows: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Income tax expense (benefit) $ 29 $ (47 ) $ (106 ) $ (31 ) Effective tax rate 40.6 % 42.1 % 36.8 % 46.0 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents 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. September 30, 2016 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,838.6 $ — $ 1,838.6 $ — Mortgage servicing rights (1) 2,725.6 — — 2,725.6 Derivative financial instruments: IRLCs 123.0 — 123.0 — Forward MBS trades 0.6 — 0.6 — LPCs 2.8 — 2.8 — Treasury futures 0.5 — 0.5 — Interest rate swaps and caps 0.2 — 0.2 — Eurodollar futures (2) — — — — Total assets $ 4,691.3 $ — $ 1,965.7 $ 2,725.6 Liabilities Derivative financial instruments Forward MBS trades $ 13.1 $ — $ 13.1 $ — LPCs 0.7 — 0.7 — Treasury futures 0.3 0.3 Interest rate swaps and caps 0.2 — 0.2 — Eurodollar futures 0.1 — 0.1 — IRLCs (2) — — — — Mortgage servicing rights financing 67.1 — — 67.1 Excess spread financing 1,011.5 — — 1,011.5 Total liabilities $ 1,093.0 $ — $ 14.4 $ 1,078.6 December 31, 2015 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,429.7 $ — $ 1,429.7 $ — Mortgage servicing rights (1) 3,358.3 — — 3,358.3 Derivative financial instruments: IRLCs 89.1 — 89.1 — Forward MBS trades 6.1 — 6.1 — LPCs 3.9 — 3.9 — Interest rate swaps and caps 0.5 — 0.5 — Eurodollar futures 0.1 — 0.1 — Total assets $ 4,887.7 $ — $ 1,529.4 $ 3,358.3 Liabilities Derivative financial instruments Forward MBS trades $ 3.7 $ — $ 3.7 $ — LPCs 1.5 — 1.5 — Interest rate swaps and caps 0.5 — 0.5 — Eurodollar futures 0.1 — 0.1 — IRLCs (2) — — — — Mortgage servicing rights financing 68.7 — — 68.7 Excess spread financing 1,232.1 — — 1,232.1 Total liabilities $ 1,306.6 $ — $ 5.8 $ 1,300.8 (1) Based on the nature and risks of the underlying assets and liabilities, the fair value is presented for the aggregate account. (2) Fair value of derivative instruments are less than $0.1 for the specified dates. |
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. Assets Liabilities Nine months ended September 30, 2016 Mortgage servicing rights Excess spread financing Mortgage servicing rights financing Beginning balance $ 3,358 $ 1,232 $ 69 Total gains or losses Included in earnings (796 ) (74 ) (2 ) Purchases, issuances, sales and settlements Purchases 50 — — Issuances 140 — — Settlements — (146 ) — Dispositions (27 ) — — Ending balance $ 2,725 $ 1,012 $ 67 Assets Liabilities Twelve months ended December 31, 2015 Mortgage servicing rights Excess spread financing Mortgage servicing rights financing Beginning balance $ 2,950 $ 1,031 $ 49 Total gains or losses Included in earnings (497 ) 25 20 Purchases, issuances, sales and settlements Purchases 730 — — Issuances 222 386 — Settlements — (210 ) — Dispositions (47 ) — — Ending balance $ 3,358 $ 1,232 $ 69 |
Fair Value, by Balance Sheet Grouping | The table below presents a summary of the estimated carrying amount and fair value of Nationstar’s financial instruments. September 30, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 695 $ 695 $ — $ — Restricted cash 336 336 — — Advances and other receivables, net 1,824 — — 1,824 Reverse mortgage interests, net 7,334 — — 7,504 Mortgage loans held for sale 1,839 — 1,839 — Mortgage loans held for investment, net 156 — — 159 Derivative financial instruments 127 — 127 — Financial liabilities Unsecured senior notes 2,000 2,014 — — Advance facilities 1,188 — 1,188 — Warehouse facilities 2,610 — 2,610 — Mortgage servicing rights financing liability 67 — — 67 Derivative financial instruments 14 — 14 — Excess spread financing 1,012 — — 1,012 Participating interest financing 5,488 — 5,646 — HECM Securitization (HMBS) Trust 2015-2 141 — — 147 Trust 2016-1 216 — — 228 Trust 2016-2 178 — — 179 Trust 2016-3 228 — — 227 Nonrecourse debt - legacy assets 54 — — 53 December 31, 2015 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 613 $ 613 $ — $ — Restricted cash 332 332 — — Mortgage loans held for sale 1,430 — 1,430 — Mortgage loans held for investment, net 174 — — 174 Advances and other receivables, net 2,412 — — 2,412 Reverse mortgage interests, net 7,514 — — 7,705 Derivative financial instruments 100 — 100 — Financial liabilities: Unsecured senior notes 2,026 1,912 — — Advance facilities 1,640 — 1,646 — Warehouse facilities 1,890 — 1,893 — Derivative financial instruments 6 — 6 — Excess spread financing 1,232 — — 1,232 Mortgage servicing rights financing liability 69 — — 69 Participating interest financing 5,947 — 6,091 — HECM Securitization (HMBS) Trust 2014-1 227 — — 298 Trust 2015-1 222 — — 275 Trust 2015-2 209 — — 250 Nonrecourse debt - legacy assets 65 — — 74 |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables present financial information by segment. Three months ended September 30, 2016 Servicing Originations Xome Eliminations Total Operating Segments Corporate and Other Consolidated Revenues Service related, net $ 210 $ 14 $ 107 $ (26 ) $ 305 $ — $ 305 Net gain on mortgage loans held for sale — 211 — 26 237 — 237 Total revenues 210 225 107 — 542 — 542 Total expenses 154 142 87 — 383 24 407 Other income (expenses) Interest income 82 17 — — 99 4 103 Interest expense (107 ) (16 ) — — (123 ) (42 ) (165 ) Other — (1 ) — — (1 ) (1 ) (2 ) Total other income (expenses), net (25 ) — — — (25 ) (39 ) (64 ) Income (loss) before taxes $ 31 $ 83 $ 20 $ — $ 134 $ (63 ) $ 71 Depreciation and amortization $ 7 $ 2 $ 4 $ — $ 13 $ 9 $ 22 Total assets 12,250 4,523 345 — 17,118 (1,272 ) 15,846 Three months ended September 30, 2015 Servicing Originations Xome Eliminations Total Operating Segments Corporate and Other Consolidated Revenues Service related, net $ 107 $ 18 $ 109 $ (23 ) $ 211 $ — $ 211 Net gain on mortgage loans held for sale — 163 — 23 186 — 186 Total revenues 107 181 109 — 397 — 397 Total expenses 208 132 92 — 432 14 446 Other income (expenses) Interest income 89 19 — — 108 5 113 Interest expense (115 ) (18 ) — — (133 ) (43 ) (176 ) Other — — — — — — — Total other income (expenses), net (26 ) 1 — — (25 ) (38 ) (63 ) Income (loss) before taxes $ (127 ) $ 50 $ 17 $ — $ (60 ) $ (52 ) $ (112 ) Depreciation and amortization $ 7 $ 5 $ 4 $ — $ 16 $ 4 $ 20 Total assets 14,120 1,899 285 — 16,304 693 16,997 Nine months ended September 30, 2016 Servicing Originations Xome Eliminations Total Operating Segments Corporate and Other Consolidated Revenues Service related, net $ 225 $ 42 $ 327 $ (93 ) $ 501 $ 1 $ 502 Net gain on mortgage loans held for sale — 531 — 93 624 — 624 Total revenues 225 573 327 — 1,125 1 1,126 Total expenses 488 400 274 — 1,162 70 1,232 Other income (expenses) Interest income 254 48 — — 302 11 313 Interest expense (325 ) (44 ) — — (369 ) (124 ) (493 ) Other — (1 ) — — (1 ) (1 ) (2 ) Total other income (expenses), net (71 ) 3 — — (68 ) (114 ) (182 ) Income (loss) before taxes $ (334 ) $ 176 $ 53 $ — $ (105 ) $ (183 ) $ (288 ) Depreciation and amortization $ 17 $ 7 $ 16 $ — $ 40 $ 26 $ 66 Total assets 12,250 4,523 345 — 17,118 (1,272 ) 15,846 Nine months ended September 30, 2015 Servicing Originations Xome Eliminations Total Operating Segments Corporate and Other Consolidated Revenues Service related, net $ 550 $ 38 $ 339 $ (45 ) $ 882 $ 2 $ 884 Net gain on mortgage loans held for sale — 470 — 45 515 2 517 Total revenues 550 508 339 — 1,397 4 1,401 Total expenses 600 349 266 — 1,215 56 1,271 Other income (expenses) Interest income 181 51 — — 232 11 243 Interest expense (263 ) (47 ) — — (310 ) (129 ) (439 ) Other (1 ) — — — (1 ) — (1 ) Total other income (expenses), net (83 ) 4 — — (79 ) (118 ) (197 ) Income (loss) before taxes $ (133 ) $ 163 $ 73 $ — $ 103 $ (170 ) $ (67 ) Depreciation and amortization $ 19 $ 13 $ 12 $ — $ 44 $ 8 $ 52 Total assets 14,120 1,899 285 — 16,304 693 16,997 |
Guarantor Financial Statement39
Guarantor Financial Statement Information (Tables) | 9 Months Ended |
Sep. 30, 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 $ 1 $ 15 $ — $ 613 Restricted cash — 199 — 133 — 332 Mortgage servicing rights — 3,367 — — — 3,367 Advances and other receivables, net — 2,412 — — — 2,412 Reverse mortgage interests, net — 6,832 — 682 — 7,514 Mortgage loans held for sale — 1,305 — 125 — 1,430 Mortgage loans held for investment, net — 1 — 173 — 174 Property and equipment, net — 113 1 29 — 143 Derivative financial instruments — 96 — 4 — 100 Other assets 3 610 303 1,497 (1,881 ) 532 Investment in subsidiaries 1,768 510 — — (2,278 ) — Total assets $ 1,771 $ 16,042 $ 305 $ 2,658 $ (4,159 ) $ 16,617 Liabilities and stockholders' equity Unsecured senior notes $ — $ 2,026 $ — $ — $ — $ 2,026 Advance facilities — 232 — 1,408 — 1,640 Warehouse facilities — 1,782 — 108 — 1,890 Payables and accrued liabilities 4 1,222 1 69 — 1,296 MSR related liabilities - nonrecourse — 1,301 — — — 1,301 Mortgage servicing liabilities — 25 — — — 25 Derivative financial instruments — 6 — — — 6 Other nonrecourse debt — 5,943 — 723 — 6,666 Payables to affiliates — 1,737 1 143 (1,881 ) — Total liabilities 4 14,274 2 2,451 (1,881 ) 14,850 Total equity 1,767 1,768 303 207 (2,278 ) 1,767 Total liabilities and equity $ 1,771 $ 16,042 $ 305 $ 2,658 $ (4,159 ) $ 16,617 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET SEPTEMBER 30, 2016 Nationstar Issuer Guarantor (Subsidiaries) Non-Guarantor (Subsidiaries) Eliminations Consolidated Assets Cash and cash equivalents $ — $ 664 $ 1 $ 30 $ — $ 695 Restricted cash — 170 — 166 — 336 Mortgage servicing rights — 2,732 — — — 2,732 Advances and other receivables, net — 1,824 — — — 1,824 Reverse mortgage interests, net — 6,537 — 797 — 7,334 Mortgage loans held for sale — 1,782 — 57 — 1,839 Mortgage loans held for investment, net — — — 156 — 156 Property and equipment, net — 121 1 27 — 149 Derivative financial instruments — 125 — 2 — 127 Other assets (118 ) 530 315 1,104 (1,177 ) 654 Investment in subsidiaries 1,600 622 — — (2,222 ) — Total assets $ 1,482 $ 15,107 $ 317 $ 2,339 $ (3,399 ) $ 15,846 Liabilities and stockholders' equity Unsecured senior notes $ — $ 2,000 $ — $ — $ — $ 2,000 Advance facilities — 209 — 979 — 1,188 Warehouse facilities — 2,558 — 52 — 2,610 Payables and accrued liabilities — 1,098 1 65 — 1,164 MSR related liabilities - nonrecourse — 1,079 — — — 1,079 Mortgage servicing liabilities — 11 — — — 11 Derivative financial instruments — 14 — — — 14 Other nonrecourse debt — 5,481 — 817 — 6,298 Payables to affiliates — 1,057 3 117 (1,177 ) — Total liabilities — 13,507 4 2,030 (1,177 ) 14,364 Total equity 1,482 1,600 313 309 (2,222 ) 1,482 Total liabilities and equity $ 1,482 $ 15,107 $ 317 $ 2,339 $ (3,399 ) $ 15,846 |
Consolidating Statements of Operations | NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED SEPTEMBER 30, 2016 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues Service related $ — $ 191 $ 5 $ 109 $ — $ 305 Net gain on mortgage loans held for sale — 228 — 9 — 237 Total revenues — 419 5 118 — 542 Expenses Salaries wages benefits — 155 1 55 — 211 General and administrative — 143 2 51 — 196 Total expenses — 298 3 106 — 407 Other income (expenses) Interest income — 90 — 13 — 103 Interest expense — (147 ) — (18 ) — (165 ) Other expense — (2 ) — — — (2 ) Gain (loss) from subsidiaries 45 9 — — (54 ) — Total other income (expenses), net 45 (50 ) — (5 ) (54 ) (64 ) Income (loss) before taxes 45 71 2 7 (54 ) 71 Income tax expense (benefit) — 29 — — — 29 Net income (loss) 45 42 2 7 (54 ) 42 Less: net income (loss) attributable to noncontrolling interests — (3 ) — — — (3 ) Net income (loss) excluding noncontrolling interests $ 45 $ 45 $ 2 $ 7 $ (54 ) $ 45 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS NINE MONTHS ENDED SEPTEMBER 30, 2016 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues Service related $ — $ 151 $ 19 $ 332 $ — $ 502 Net gain on mortgage loans held for sale — 595 — 29 — 624 Total revenues — 746 19 361 — 1,126 Expenses Salaries wages benefits — 448 3 162 — 613 General and administrative — 453 6 160 — 619 Total expenses — 901 9 322 — 1,232 Other income (expenses) Interest income — 276 — 37 — 313 Interest expense — (437 ) — (56 ) — (493 ) Other expense — (2 ) — — — (2 ) Gain (loss) from subsidiaries (179 ) 30 — — 149 — Total other income (expenses), net (179 ) (133 ) — (19 ) 149 (182 ) Income (loss) before taxes (179 ) (288 ) 10 20 149 (288 ) Income tax expense (benefit) — (106 ) — — — (106 ) Net income (loss) (179 ) (182 ) 10 20 149 (182 ) Less: net income (loss) attributable to noncontrolling interests — (3 ) — — — (3 ) Net income (loss) excluding noncontrolling interests $ (179 ) $ (179 ) $ 10 $ 20 $ 149 $ (179 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED SEPTEMBER 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues Service related, net $ — $ 96 $ 16 $ 99 $ — $ 211 Net gain on mortgage loans held for sale — 174 — 12 — 186 Total revenues — 270 16 111 — 397 Expenses Salaries wages benefits — 141 4 56 — 201 General and administrative — 200 1 44 — 245 Total expenses — 341 5 100 — 446 Other income (expenses) Interest income — 102 — 11 — 113 Interest expense — (157 ) — (19 ) — (176 ) Gain (loss) from subsidiaries (66 ) 15 — — 51 — Total other income (expenses), net (66 ) (40 ) — (8 ) 51 (63 ) Income (loss) before taxes (66 ) (111 ) 11 3 51 (112 ) Income tax benefit — (46 ) (1 ) — — (47 ) Net income (loss) (66 ) (65 ) 12 3 51 (65 ) Less: net income (loss) attributable to noncontrolling interests — 1 — — — 1 Net income (loss) excluding noncontrolling interests $ (66 ) $ (66 ) $ 12 $ 3 $ 51 $ (66 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS NINE MONTHS ENDED SEPTEMBER 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues Service related, net $ — $ 529 $ 13 $ 342 $ — $ 884 Net gain on mortgage loans held for sale — 484 — 33 — 517 Total Revenues — 1,013 13 375 — 1,401 Expenses Salaries, wages and benefits — 411 4 163 — 578 General and administrative — 558 1 134 — 693 Total expenses — 969 5 297 — 1,271 Other income (expenses) Interest income — 215 — 28 — 243 Interest expense — (388 ) — (51 ) — (439 ) Other expense — — — (1 ) — (1 ) Gain (loss) from subsidiaries (40 ) 62 — — (22 ) — Total other income (expenses), net (40 ) (111 ) — (24 ) (22 ) (197 ) Income (loss) before taxes (40 ) (67 ) 8 54 (22 ) (67 ) Income tax expense (benefit) — (31 ) — — — (31 ) Net income (loss) (40 ) (36 ) 8 54 (22 ) (36 ) Less: net income (loss) attributable to noncontrolling interests — 4 — — — 4 Net income (loss) excluding noncontrolling interests $ (40 ) $ (40 ) $ 8 $ 54 $ (22 ) $ (40 ) |
Consolidating Statements of Cash Flows | NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2016 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating Activities Net income (loss) $ (179 ) $ (179 ) $ 10 $ 20 $ 149 $ (179 ) Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: Noncontrolling interest — (3 ) — — — (3 ) (Gain) loss from subsidiaries 179 (30 ) — — (149 ) — Share-based compensation — 13 — 5 — 18 Excess tax deficiency from share-based compensation — 4 — — — 4 Net gain on mortgage loans held for sale — (595 ) — (29 ) — (624 ) Provision for reserves on advances and other receivables — 85 — — — 85 Mortgage loans originated and purchased, net of fees — (15,078 ) — (767 ) — (15,845 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (1,138 ) — — — (1,138 ) Sales proceeds and loan payments proceeds for mortgage loans held for sale and held for investment — 23,459 — (6,416 ) — 17,043 Other loss — 2 — — — 2 Depreciation and amortization — 50 — 16 — 66 Amortization (accretion) of premiums (discounts) — (7,275 ) — 7,302 — 27 Fair value changes in excess spread financing — (75 ) — — — (75 ) Fair value changes and amortization/accretion of mortgage servicing rights — 784 — — — 784 Fair value change in mortgage servicing rights financing liability — (2 ) — — — (2 ) Changes in assets and liabilities: Advances and other receivables, net — 519 — — — 519 Reverse mortgage interests, net — 294 — (115 ) — 179 Other assets 117 (683 ) (10 ) 439 — (137 ) Payables and accrued liabilities — (135 ) — (4 ) — (139 ) Net cash attributable to operating activities 117 17 — 451 — 585 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2016 (Continued) Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities Property and equipment additions, net of disposals — (38 ) — (9 ) — (47 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (46 ) — — — (46 ) Sale of forward mortgage servicing rights — 27 — — — 27 Proceeds on sale of reverse mortgage servicing rights — 1 — — — 1 Net cash attributable to investing activities — (56 ) — (9 ) — (65 ) Financing activities Transfers (to) from restricted cash, net — 33 — (33 ) — — Debt financing costs — (10 ) — — — (10 ) Increase (decrease) warehouse facilities — 774 — (56 ) — 718 Increase (decrease) advance facilities — (29 ) — (429 ) — (458 ) Proceeds from HECM securitizations — (4 ) — 728 — 724 Repayment of HECM securitizations — — — (624 ) — (624 ) Repayment of excess spread financing — (146 ) — — — (146 ) Increase (decrease) in participating interest financing in reverse mortgage interests — (480 ) — — — (480 ) Repayment of nonrecourse debt–legacy assets — 1 — (13 ) — (12 ) Repurchase of unsecured senior notes — (29 ) — — — (29 ) Excess tax deficiency from share-based compensation — (4 ) — — — (4 ) Surrender of shares relating to stock vesting (3 ) — — — — (3 ) Repurchase of common stock (114 ) — — — — (114 ) Net cash attributable to financing activities (117 ) 106 — (427 ) — (438 ) Net increase (decrease) in cash — 67 — 15 — 82 Cash and cash equivalents at beginning of period — 597 1 15 — 613 Cash and cash equivalents at end of period $ — $ 664 $ 1 $ 30 $ — $ 695 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities Net income (loss) $ (40 ) $ (40 ) $ 8 $ 54 $ (22 ) $ (40 ) Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: Noncontrolling interest — 4 — — — 4 (Gain) loss from subsidiaries 40 (62 ) — — 22 — Share-based compensation — 8 — 7 — 15 Excess tax benefit from share based compensation — (1 ) — — — (1 ) Net gain on mortgage loans held for sale — (481 ) — (36 ) — (517 ) Mortgage loans originated and purchased, net of fees — (13,137 ) — (833 ) — (13,970 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (1,393 ) — — — (1,393 ) Sales proceeds and loan payments proceeds for mortgage loans held for sale and held for investment — 14,277 — 772 — 15,049 Other loss — — — 1 — 1 Provision for reserves on advances and other receivables — 39 — — — 39 Depreciation and amortization — 40 — 12 — 52 Amortization (accretion) of premiums (discounts) — (17 ) — (3 ) — (20 ) Fair value changes in excess spread financing — (23 ) — — — (23 ) Fair value changes and amortization of mortgage servicing rights — 500 — — — 500 Fair value change in mortgage servicing rights financing liability — 7 — — — 7 Changes in assets and liabilities: Advances and other receivables, net — 477 — 2 — 479 Reverse mortgage interests, net — 8 — (173 ) — (165 ) Other assets 6 69 (6 ) (22 ) — 47 Payables and accrued liabilities — (125 ) 1 (3 ) — (127 ) Net cash attributable to operating activities 6 150 3 (222 ) — (63 ) NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2015 (Continued) Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities Property and equipment additions, net of disposals — (23 ) — (21 ) — (44 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (615 ) — — — (615 ) Purchase of reverse mortgage interests — (4,815 ) — — — (4,815 ) Sale of forward service rights — 41 — — — 41 Acquisitions, net of cash acquired — — — (45 ) — (45 ) Net cash attributable to investing activities — (5,412 ) — (66 ) — (5,478 ) Financing activities Transfers to restricted cash, net — (9 ) — (183 ) — (192 ) Issuance of common stock, net of issuance cost — 498 — — — 498 Debt financing costs — (10 ) — — — (10 ) Increase in warehouse facilities — 630 — 100 — 730 Increase (decrease) in advance facilities — (291 ) — 143 — (148 ) Proceeds from HECM Securitization — — — 342 — 342 Repayment of HECM Securitization — — — (103 ) — (103 ) Issuance of excess spread financing — 263 — — — 263 Repayment of excess spread financing — (155 ) — — — (155 ) Increase (decrease) in participating interest financing in reverse mortgage interests — 4,629 — — — 4,629 Repayment of nonrecourse debt – legacy assets — (1 ) — (9 ) — (10 ) Excess tax benefit from share-based compensation — 1 — — — 1 Surrender of shares relating to stock vesting (6 ) — — — — (6 ) Net cash attributable to financing activities (6 ) 5,555 — 290 — 5,839 Net increase in cash and cash equivalents — 293 3 2 — 298 Cash and cash equivalents at beginning of period — 280 — 19 — 299 Cash and cash equivalents at end of period $ — $ 573 $ 3 $ 21 $ — $ 597 |
Nature of Business and Basis 40
Nature of Business and Basis of Presentation - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Unsecured Senior Notes | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | $ 19 | $ 23 |
Advance facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 1 | 6 |
Warehouse Facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 1 | 3 |
Nonrecourse debt–legacy assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | $ 7 | 4 |
As Presented | Unsecured Senior Notes | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 2,049 | |
As Presented | Advance facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 1,646 | |
As Presented | Warehouse Facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 1,894 | |
As Presented | Nonrecourse debt–legacy assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 6,671 | |
As Presented | Advances and Other Receivables, Net | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 2,223 | |
As Presented | Other assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 759 | |
Reclassification | ASU 2015-03 | Unsecured Senior Notes | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | (23) | |
Reclassification | ASU 2015-03 | Advance facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | (6) | |
Reclassification | ASU 2015-03 | Warehouse Facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | (4) | |
Reclassification | ASU 2015-03 | Nonrecourse debt–legacy assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | (5) | |
Reclassification | ASU 2015-03 | Advances and Other Receivables, Net | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 0 | |
Reclassification | ASU 2015-03 | Other assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | (38) | |
Reclassification | Other | Unsecured Senior Notes | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 0 | |
Reclassification | Other | Advance facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 0 | |
Reclassification | Other | Warehouse Facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 0 | |
Reclassification | Other | Nonrecourse debt–legacy assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 0 | |
Reclassification | Other | Advances and Other Receivables, Net | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 189 | |
Reclassification | Other | Other assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | (189) | |
As Adjusted | Unsecured Senior Notes | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 2,026 | |
As Adjusted | Advance facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 1,640 | |
As Adjusted | Warehouse Facilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 1,890 | |
As Adjusted | Nonrecourse debt–legacy assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 6,666 | |
As Adjusted | Advances and Other Receivables, Net | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | 2,412 | |
As Adjusted | Other assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | $ 532 |
Mortgage Servicing Rights ("M41
Mortgage Servicing Rights ("MSR") and Related Liabilities - MSRs and Related Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Mortgage Servicing Rights [Line Items] | ||||
Mortgage servicing rights at fair value | $ 2,725 | $ 3,358 | ||
Mortgage servicing rights | 2,732 | 3,367 | ||
Mortgage servicing liabilities | 11 | 25 | ||
Excess spread financing - fair value | 1,012 | 1,232 | ||
Mortgage servicing rights financing liability - fair value | 67 | 68.7 | ||
MSR related liabilities (nonrecourse) | 1,079 | 1,301 | ||
Mortgage servicing rights | ||||
Mortgage Servicing Rights [Line Items] | ||||
Mortgage servicing rights at fair value | 2,725 | 3,358 | ||
Reverse MSRs - LOCOM | 7 | 9 | $ 10 | $ 12 |
Mortgage servicing liabilities | $ 11 | $ 25 | $ 28 | $ 65 |
Mortgage Servicing Rights ("M42
Mortgage Servicing Rights ("MSR") and Related Liabilities - MSR's at Fair Value (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Fair value at the beginning of the period | $ 3,358 | ||
Fair value at the end of the period | 2,725 | $ 3,358 | |
Mortgage servicing rights | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Fair value at the beginning of the period | 3,358 | $ 2,950 | 2,950 |
Servicing resulting from transfers of financial assets | 140 | 169 | 222 |
Purchases of servicing assets | 50 | 695 | 730 |
Sales of servicing assets | (27) | (46) | |
Due to changes in valuation inputs or assumptions used in the valuation model | (494) | (197) | |
Other changes in fair value | (302) | (338) | |
Fair value at the end of the period | $ 2,725 | $ 3,233 | $ 3,358 |
Mortgage Servicing Rights ("M43
Mortgage Servicing Rights ("MSR") and Related Liabilities - UPB related to owned MSRs (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Owned Service Loans [Line Items] | ||
Mortgage servicing rights at fair value | $ 2,725 | $ 3,358 |
Mortgage servicing rights | ||
Owned Service Loans [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 313,107 | 345,676 |
Mortgage servicing rights at fair value | 2,725 | 3,358 |
Credit Sensitive | Mortgage servicing rights | ||
Owned Service Loans [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 192,728 | 224,334 |
Mortgage servicing rights at fair value | 1,665 | 2,017 |
Interest Rate Sensitive | Mortgage servicing rights | ||
Owned Service Loans [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 120,379 | 121,342 |
Mortgage servicing rights at fair value | $ 1,060 | $ 1,341 |
Mortgage Servicing Rights ("M44
Mortgage Servicing Rights ("MSR") and Related Liabilities - Fair Value Assumptions (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Mortgage servicing rights | Credit Sensitive | |||
Assumption for Fair Value of Mortgage Servicing Rights | |||
Discount rate percent | 11.60% | 11.60% | |
Weighted-average prepayment speeds | 17.40% | 16.50% | |
Expected weighted-average life (in years) | 5 years 6 months | 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% | |
Weighted-average prepayment speeds | 16.10% | 12.40% | |
Expected weighted-average life (in years) | 5 years | 6 years 1 month | |
Excess spread financing | Low | |||
Assumption for Fair Value of Mortgage Servicing Rights | |||
Prepayment speeds percent | 8.40% | 7.40% | |
Average life (in years) | 3 years 8 months 12 days | 4 years 2 months 12 days | |
Discount rate percent | 8.50% | 8.50% | |
Recapture Rate percent | 6.70% | 6.80% | |
Excess spread financing | High | |||
Assumption for Fair Value of Mortgage Servicing Rights | |||
Prepayment speeds percent | 18.30% | 17.10% | |
Average life (in years) | 6 years 6 months | 7 years 9 months 18 days | |
Discount rate percent | 14.10% | 14.10% | |
Recapture Rate percent | 28.30% | 30.00% | |
Excess spread financing | Weighted Average | |||
Assumption for Fair Value of Mortgage Servicing Rights | |||
Prepayment speeds percent | 12.50% | 11.60% | |
Average life (in years) | 5 years 4 months 24 days | 5 years 10 months 24 days | |
Discount rate percent | 11.00% | 11.20% | |
Recapture Rate percent | 18.00% | 17.70% | |
MSR Financing Liability | Financing rates | |||
Assumption for Fair Value of Mortgage Servicing Rights | |||
Advance financing rates | 3.30% | 3.00% | |
MSR Financing Liability | Recovery rates | |||
Assumption for Fair Value of Mortgage Servicing Rights | |||
Annual advance recovery rates | 24.20% | 20.90% |
Mortgage Servicing Rights ("M45
Mortgage Servicing Rights ("MSR") and Related Liabilities - Fair Value Sensitivity Analysis (Details) - USD ($) $ in Millions | Sep. 30, 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 | $ (126) | $ (132) |
Total Prepayment Speeds, 20% Adverse Change | (240) | (253) |
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 | 41 | 37 |
Total Prepayment Speeds, 20% Adverse Change | 82 | 76 |
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 | (88) | (123) |
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 | 36 | 42 |
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 | (171) | (238) |
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 | $ 74 | $ 87 |
Mortgage Servicing Rights ("M46
Mortgage Servicing Rights ("MSR") and Related Liabilities - MSR's at Amortized Cost (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||
Fair value at end of period | $ 25 | $ 30 |
Servicing Liability at Amortized Value [Roll Forward] | ||
Balance at the beginning of the period | 25 | |
Balance at end of the period | 11 | |
Fair value at end of period | 2 | 11 |
Mortgage servicing rights | ||
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||
Balance at the beginning of the period | 9 | 12 |
Amortization/accretion | (2) | (2) |
Balance at end of the period | 7 | 10 |
Servicing Liability at Amortized Value [Roll Forward] | ||
Balance at the beginning of the period | 25 | 65 |
Amortization/accretion | (14) | (37) |
Balance at end of the period | $ 11 | $ 28 |
Mortgage Servicing Rights ("M47
Mortgage Servicing Rights ("MSR") and Related Liabilities - Servicing Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Transfers and Servicing [Abstract] | ||||
Contractually specified servicing fees including subservicing fees | $ 254 | $ 285 | $ 786 | $ 827 |
Reverse servicing fees | 11 | 32 | 46 | 75 |
Incentive and modification income | 35 | 21 | 82 | 75 |
Late fees | 19 | 18 | 57 | 52 |
Other service-related income | 66 | 62 | 214 | 173 |
Revenue sharing related to MSR financing and excess spread | (75) | (77) | (223) | (225) |
Amortization | (92) | (83) | (235) | (247) |
Mark-to-market | (8) | (151) | (502) | (180) |
Total servicing fee income | $ 210 | $ 107 | $ 225 | $ 550 |
Mortgage Servicing Rights ("M48
Mortgage Servicing Rights ("MSR") and Related Liabilities - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
HECM individual loan to value repurchase obligation, percentage | 98.00% | ||
Forward MSRs Sold, Subservicing Retained | |||
Principal amount outstanding on mortgage servicing rights | $ 3,507,000,000 | ||
Forward MSRs Sold | |||
Principal amount outstanding on mortgage servicing rights | 4,560,000,000 | ||
Reverse MSRs | |||
Principal amount outstanding on mortgage servicing rights | 26,855,000,000 | $ 29,855,000,000 | |
Mortgage servicing rights | |||
Principal amount outstanding on mortgage servicing rights | 313,107,000,000 | 345,676,000,000 | |
Impairment | 0 | $ 0 | |
Mortgage Servicing Liability | |||
Accretion expense | $ 14,000,000 | $ 37,000,000 |
Advances and Other Receivable49
Advances and Other Receivables, Net - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Servicing advances | $ 1,683 | $ 2,254 |
Receivables from agencies and investors | 321 | 288 |
Reserves | (180) | (130) |
Total advances and other receivables, net | $ 1,824 | $ 2,412 |
Advances and Other Receivable50
Advances and Other Receivables, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unpaid principal balance | $ 0 | $ 0 | ||
Reclassed from Other Assets | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Prior period adjustment | $ 189 | |||
Advances and Other Receivables, Net | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Increase of reserves | $ 59 | 59 | ||
Decrease in reserves | $ 3 | 3 | ||
Other activity, write offs, net of other reserves | 91 | 91 | ||
Fair Value Mark-to-Market Adjustment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Increase of reserves charged to earnings | $ 27 | $ 85 |
Reverse Mortgage Interests, N51
Reverse Mortgage Interests, Net - Schedule of Reverse Mortgage Interest (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Reverse Mortgage Interests [Abstract] | ||
Participating interests in HMBS | $ 5,412 | $ 5,864 |
Other interests securitized | 836 | 715 |
Unsecuritized interests | 1,180 | 988 |
Reserves | (94) | (53) |
Reverse mortgage interests, net | $ 7,334 | $ 7,514 |
Reverse Mortgage Interests, N52
Reverse Mortgage Interests, Net - Unsecuritzed Interest (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Reverse Mortgage Interest [Abstract] | ||
Repurchased HECM loans | $ 803 | $ 591 |
HECM related receivables | 283 | 290 |
Funded borrower draws not yet securitized | 74 | 83 |
Foreclosed assets | 20 | 24 |
Unsecuritized interests | $ 1,180 | $ 988 |
Reverse Mortgage Interests, N53
Reverse Mortgage Interests, Net - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Jun. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Increase in reverse mortgage reserves for changes in actual and estimated losses | $ 42 | ||||||
Reverse mortgage interests, Reserves | $ 94 | 94 | $ 53 | ||||
Outstanding unpaid principal balance | 0 | 0 | |||||
Sale of mortgage loans held for sale | 16,957 | $ 15,034 | |||||
Net gain on mortgage loans held for sale | 624 | 517 | |||||
HECM | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Acquired reverse mortgage loans | $ 55 | ||||||
HECM, Loans Sold | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding unpaid principal balance | $ 96 | ||||||
Sale of mortgage loans held for sale | $ 74 | ||||||
Net gain on mortgage loans held for sale | $ 17 | ||||||
Unsecuritized HECM | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Interest earned on HECM loans | $ 81 | $ 90 | 251 | 181 | |||
Reverse Mortgage Interests, Unsecuritized | HECM | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Repurchase of HECM loans | 2,270 | 1,572 | |||||
Repurchase of HECM loans funded by prior servicer | $ 661 | $ 608 |
Mortgage Loans Held for Sale 54
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Sale (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Mortgage Loans Held for Sale and Investment [Abstract] | ||
Mortgage loans held for sale – unpaid principal balance | $ 1,774 | $ 1,374 |
Mark-to-market adjustment | 65 | 56 |
Total mortgage loans held for sale | 1,839 | 1,430 |
UPB | 109 | 31 |
Fair Value | $ 105 | $ 29 |
Mortgage Loans Held for Sale 55
Mortgage Loans Held for Sale and Investment - Reconciliation to Cash Flow (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Mortgage loans held for sale – beginning balance | $ 1,430 | $ 1,278 |
Mortgage loans originated and purchased, net of fees | 15,788 | 13,970 |
Transfer of mortgage loans held for sale to advances/accounts receivable related to claims | (16) | (46) |
Transfer of mortgage loans held for sale to other assets | 9 | 0 |
Repurchase of loans out of Ginnie Mae securitizations | 1,138 | 1,369 |
Loans sold | (16,510) | (14,685) |
Mortgage loans held for sale – ending balance | $ 1,839 | $ 1,886 |
Mortgage Loans Held for Sale 56
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Investment (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage loans held for investment, net | $ 156 | $ 174 | ||
Mortgage loans held for investment, net | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage loans held for investment, net – unpaid principal balance | 225 | 250 | ||
Transfer discount - accretable | (14) | (15) | $ (15) | $ (16) |
Transfer discount - non-accretable | (52) | (57) | ||
Allowance for loan losses | (3) | (4) | ||
Total mortgage loans held for investment, net | $ 156 | $ 174 |
Mortgage Loans Held for Sale 57
Mortgage Loans Held for Sale and Investment - Accretable Yield (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Accretable Yield Movement Schedule [Roll Forward] | ||
Reclassifications from nonaccretable discount | $ (1.4) | $ (1.2) |
Mortgage loans held for investment, net | ||
Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at the beginning of the period | (15) | (16) |
Accretion | 2 | 2 |
Reclassifications from nonaccretable discount | (1) | (1) |
Balance at the end of the period | $ (14) | $ (15) |
Mortgage Loans Held for Sale 58
Mortgage Loans Held for Sale and Investment - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Servicing Assets at Fair Value [Line Items] | |||
Mortgage loans held for sale in foreclosure | $ 85 | $ 16 | |
Sale of mortgage loans held for sale | 16,957 | $ 15,034 | |
Gain on sale of mortgage loans held for sale | 447 | 349 | |
Repurchase of loans out of Ginnie Mae securitizations | 1,138 | 1,369 | |
Reclassifications from nonaccretable discount | 1.4 | 1.2 | |
Mortgage loans held for investment in foreclosure | 31 | $ 41 | |
Ginnie Mae Loans | |||
Servicing Assets at Fair Value [Line Items] | |||
Delinquent loans acquired | 201 | ||
Delinquent loans securitized or sold | 88 | ||
Purchased loans that have re-performed | 18 | ||
Mortgage loans held for investment, net | |||
Servicing Assets at Fair Value [Line Items] | |||
Reclassifications from nonaccretable discount | $ 1 | $ 1 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Others Assets (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Accrued revenues | $ 172 | $ 180 |
Loans subject to repurchase right from Ginnie Mae | 144 | 117 |
Taxes receivable | 74 | 0 |
Goodwill | 74 | 71 |
Intangible assets | 42 | 50 |
Deposits | 39 | 30 |
Prepaid expenses | 17 | 20 |
Real estate owned (REO), net | 26 | 18 |
Receivables from affiliates, net | 6 | 8 |
Other | 60 | 38 |
Total other assets | $ 654 | $ 532 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Loans subject to repurchase right from Ginnie Mae | $ 144 | $ 117 |
REO loans with government guarantee | $ 21 | $ 15 |
Derivative Financial Instrume61
Derivative Financial Instruments - Narrative (Details) | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($)derivative_instrument |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Collateral deposits | $ 10,000,000 | $ 4,000,000 | |
Derivative instruments at fair value, less than | $ 100,000 | $ 100,000 | |
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 Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Derivative financial instruments | Loan sale commitments | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | $ 82 | $ 176 |
Recorded Gains / (Losses) | (0.7) | 0.3 |
Derivative financial instruments | IRLCs | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 4,291 | 2,768 |
Recorded Gains / (Losses) | 33.9 | 1.2 |
Derivative financial instruments | Forward MBS trades | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 708 | 1,666 |
Recorded Gains / (Losses) | (5.5) | 5.8 |
Derivative financial instruments | LPCs | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 354 | 388 |
Recorded Gains / (Losses) | (1.1) | 1.9 |
Derivative financial instruments | Eurodollar futures | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 7 | 176 |
Recorded Gains / (Losses) | (0.1) | 0.1 |
Derivative financial instruments | Treasury futures | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 63 | |
Recorded Gains / (Losses) | 0.5 | |
Derivative financial instruments | Interest rate swaps and caps | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 10 | 846 |
Recorded Gains / (Losses) | (0.3) | (0.4) |
Derivative financial instruments | Fair Value, Measurements, Recurring | Loan sale commitments | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | (0.4) | 0.3 |
Derivative financial instruments | Fair Value, Measurements, Recurring | IRLCs | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 123 | 89.1 |
Derivative financial instruments | Fair Value, Measurements, Recurring | Forward MBS trades | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 0.6 | 6.1 |
Derivative financial instruments | Fair Value, Measurements, Recurring | LPCs | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 2.8 | 3.9 |
Derivative financial instruments | Fair Value, Measurements, Recurring | Eurodollar futures | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 0 | 0.1 |
Derivative financial instruments | Fair Value, Measurements, Recurring | Treasury futures | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 0.5 | |
Derivative financial instruments | Fair Value, Measurements, Recurring | Interest rate swaps and caps | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 0.2 | 0.5 |
Derivative Liabilities | IRLCs | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 4 | 2 |
Recorded Gains / (Losses) | 0 | 0 |
Derivative Liabilities | Forward MBS trades | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 3,306 | 1,807 |
Recorded Gains / (Losses) | (9.4) | 14.6 |
Derivative Liabilities | LPCs | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 171 | 314 |
Recorded Gains / (Losses) | 0.8 | (1.4) |
Derivative Liabilities | Eurodollar futures | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 55 | 95 |
Recorded Gains / (Losses) | 0 | (0.1) |
Derivative Liabilities | Treasury futures | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 67 | |
Recorded Gains / (Losses) | (0.3) | |
Derivative Liabilities | Interest rate swaps and caps | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 10 | 13 |
Recorded Gains / (Losses) | 0.3 | (0.4) |
Derivative Liabilities | Fair Value, Measurements, Recurring | IRLCs | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liability | 0 | 0 |
Derivative Liabilities | Fair Value, Measurements, Recurring | Forward MBS trades | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liability | 13.1 | 3.7 |
Derivative Liabilities | Fair Value, Measurements, Recurring | LPCs | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liability | 0.7 | 1.5 |
Derivative Liabilities | Fair Value, Measurements, Recurring | Eurodollar futures | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liability | 0.1 | 0.1 |
Derivative Liabilities | Fair Value, Measurements, Recurring | Treasury futures | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liability | 0.3 | |
Derivative Liabilities | Fair Value, Measurements, Recurring | Interest rate swaps and caps | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liability | $ 0.2 | $ 0.5 |
Indebtedness - Notes Payable Su
Indebtedness - Notes Payable Summary (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Debt Outstanding | $ 1,188,000,000 | $ 1,640,000,000 |
Advance facilities | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | (1,000,000) | (6,000,000) |
Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | (1,000,000) | (3,000,000) |
Servicing Segment | ||
Debt Instrument [Line Items] | ||
Debt Outstanding | 1,188,000,000 | 1,640,000,000 |
Pledged collateral | 1,378,000,000 | 1,925,000,000 |
Servicing Segment | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Debt outstanding, gross | 1,189,000,000 | 1,646,000,000 |
Pledged collateral | 1,378,000,000 | 1,925,000,000 |
Servicing Segment | Notes Payable, Other | MBS advance financing facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 130,000,000 | |
Debt outstanding, gross | 67,000,000 | 82,000,000 |
Pledged collateral | $ 77,000,000 | 89,000,000 |
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 | $ 400,000,000 | |
Debt outstanding, gross | 230,000,000 | 310,000,000 |
Pledged collateral | $ 255,000,000 | 364,000,000 |
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 | $ 50,000,000 | |
Debt outstanding, gross | 40,000,000 | 50,000,000 |
Pledged collateral | $ 48,000,000 | 70,000,000 |
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 | $ 500,000,000 | |
Debt outstanding, gross | 278,000,000 | 335,000,000 |
Pledged collateral | $ 319,000,000 | 394,000,000 |
Servicing Segment | Notes Payable, Other | Nationstar mortgage advance receivable trust | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.90% | |
Servicing Segment | Notes Payable, Other | MBS servicer advance facility (2014) | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 125,000,000 | |
Debt outstanding, gross | 103,000,000 | 106,000,000 |
Pledged collateral | $ 148,000,000 | 185,000,000 |
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 | $ 1,400,000,000 | |
Debt outstanding, gross | 471,000,000 | 763,000,000 |
Pledged collateral | $ 531,000,000 | 823,000,000 |
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 | $ 1,654,000,000 | 1,509,000,000 |
Pledged collateral | 1,725,000,000 | 1,625,000,000 |
Originations Segment | Reverse mortgage interests, net | ||
Debt Instrument [Line Items] | ||
Debt Outstanding | 642,000,000 | 351,000,000 |
Pledged collateral | 761,000,000 | 390,000,000 |
Originations Segment | MSR and other collateral | ||
Debt Instrument [Line Items] | ||
Debt Outstanding | 315,000,000 | 33,000,000 |
Pledged collateral | 340,000,000 | 56,000,000 |
Originations Segment | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt outstanding, gross | 2,611,000,000 | 1,893,000,000 |
Debt Outstanding | 2,610,000,000 | 1,890,000,000 |
Pledged collateral | 2,826,000,000 | 2,071,000,000 |
Originations Segment | Notes Payable to Banks | $1,300 warehouse facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 1,300,000,000 | |
Debt outstanding, gross | 855,000,000 | 634,000,000 |
Pledged collateral | $ 888,000,000 | 678,000,000 |
Originations Segment | Notes Payable to Banks | $1,300 warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.00% | |
Originations Segment | Notes Payable to Banks | $1,300 warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.875% | |
Originations Segment | Notes Payable to Banks | $850 warehouse facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 850,000,000 | |
Debt outstanding, gross | 526,000,000 | 545,000,000 |
Pledged collateral | $ 568,000,000 | 622,000,000 |
Originations Segment | Notes Payable to Banks | $850 warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.75% | |
Originations Segment | Notes Payable to Banks | $850 warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 3.25% | |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 500,000,000 | |
Debt outstanding, gross | 215,000,000 | 175,000,000 |
Pledged collateral | $ 219,000,000 | 179,000,000 |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.75% | |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.75% | |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 500,000,000 | |
Debt outstanding, gross | 362,000,000 | 257,000,000 |
Pledged collateral | $ 448,000,000 | 274,000,000 |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.00% | |
Originations Segment | Notes Payable to Banks | $500 warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.50% | |
Originations Segment | Notes Payable to Banks | $350 warehouse facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 350,000,000 | |
Debt outstanding, gross | 21,000,000 | 98,000,000 |
Pledged collateral | $ 22,000,000 | 112,000,000 |
Originations Segment | Notes Payable to Banks | $350 warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.20% | |
Originations Segment | Notes Payable to Banks | $350 warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 4.50% | |
Originations Segment | Notes Payable to Banks | $200 warehouse facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 200,000,000 | |
Debt outstanding, gross | 56,000,000 | 8,000,000 |
Pledged collateral | $ 58,000,000 | 9,000,000 |
Originations Segment | Notes Payable to Banks | $200 warehouse facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 1.50% | |
Originations Segment | Notes Payable to Banks | $300 warehouse facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 300,000,000 | |
Debt outstanding, gross | 164,000,000 | 23,000,000 |
Pledged collateral | $ 186,000,000 | 28,000,000 |
Originations Segment | Notes Payable to Banks | $300 warehouse facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.25% | |
Originations Segment | Notes Payable to Banks | $350 warehouse facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 350,000,000 | |
Debt outstanding, gross | 169,000,000 | 45,000,000 |
Pledged collateral | $ 185,000,000 | 50,000,000 |
Originations Segment | Notes Payable to Banks | $350 warehouse facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.75% | |
Originations Segment | Notes Payable to Banks | $350 warehouse facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 3.875% | |
Originations Segment | Notes Payable to Banks | $500 warehouse Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 500,000,000 | |
Debt outstanding, gross | 191,000,000 | 0 |
Pledged collateral | $ 196,000,000 | 0 |
Originations Segment | Notes Payable to Banks | $500 warehouse Facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.10% | |
Originations Segment | Notes Payable to Banks | $500 warehouse Facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.50% | |
Originations Segment | Notes Payable to Banks | $75 warehouse facility (HCM) | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 75,000,000 | |
Debt outstanding, gross | 10,000,000 | 53,000,000 |
Pledged collateral | $ 12,000,000 | 59,000,000 |
Originations Segment | Notes Payable to Banks | $75 warehouse facility (HCM) | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.25% | |
Originations Segment | Notes Payable to Banks | $75 warehouse facility (HCM) | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.875% | |
Originations Segment | Notes Payable to Banks | $100 warehouse facility (HCM) (1) | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 100,000,000 | |
Debt outstanding, gross | 42,000,000 | 55,000,000 |
Pledged collateral | $ 44,000,000 | $ 60,000,000 |
Originations Segment | Notes Payable to Banks | $100 warehouse facility (HCM) (1) | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.50% | |
Originations Segment | Notes Payable to Banks | $100 warehouse facility (HCM) (1) | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on rate | 2.75% |
Indebtedness - Summary of Unsec
Indebtedness - Summary of Unsecured Senior Notes (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Unsecured senior notes principal amount, subtotal | $ 2,019,000,000 | $ 2,049,000,000 |
Unsecured senior notes, net of unamortized debt issuance costs | 2,000,000,000 | 2,026,000,000 |
Unsecured Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | (19,000,000) | (23,000,000) |
Unsecured senior notes, net of unamortized debt issuance costs | 2,000,000,000 | |
Debt issued | 2,019,000,000 | |
Unsecured Senior Notes | $475 face value, 6.500% interest rate payable semi-annually, due August 2018 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes principal amount, subtotal | 471,000,000 | 475,000,000 |
Debt issued | $ 475,000,000 | |
Interest Rate | 6.50% | |
Unsecured Senior Notes | $375 face value, 9.625% interest rate payable semi-annually, due May 2019 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes principal amount, subtotal | $ 346,000,000 | 363,000,000 |
Debt issued | $ 375,000,000 | |
Interest Rate | 9.625% | |
Unsecured Senior Notes | $400 face value, 7.875% interest rate payable semi-annually, due October 2020 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes principal amount, subtotal | $ 400,000,000 | 400,000,000 |
Debt issued | $ 400,000,000 | |
Interest Rate | 7.875% | |
Unsecured Senior Notes | $600 face value, 6.500% interest rate payable semi-annually, due July 2021 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes principal amount, subtotal | $ 596,000,000 | 597,000,000 |
Debt issued | $ 600,000,000 | |
Interest Rate | 6.50% | |
Unsecured Senior Notes | $300 face value, 6.500% interest rate payable semi-annually, due June 2022 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes principal amount, subtotal | $ 206,000,000 | $ 214,000,000 |
Debt issued | $ 300,000,000 | |
Interest Rate | 6.50% |
Indebtedness - Schedule of Note
Indebtedness - Schedule of Notes Maturity (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Unsecured senior notes, net of unamortized debt issuance costs | $ 2,000 | $ 2,026 |
Unsecured Senior Notes | ||
Debt Instrument [Line Items] | ||
2,016 | 0 | |
2,017 | 0 | |
2,018 | 471 | |
2,019 | 346 | |
2,020 | 400 | |
Thereafter | 802 | |
Unsecured senior notes principal amount | 2,019 | |
Unamortized debt issuance costs | (19) | $ (23) |
Unsecured senior notes, net of unamortized debt issuance costs | $ 2,000 |
Indebtedness - Summary of Other
Indebtedness - Summary of Other Non-Recourse Debt (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Non-Recourse Debt | $ 6,298,000,000 | $ 6,666,000,000 |
Participating Interest Financing | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 5,488,000,000 | 5,947,000,000 |
Trust 2014-1 | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 0 | 227,000,000 |
Trust 2015-1 | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 0 | 222,000,000 |
Trust 2015-2 | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 141,000,000 | 209,000,000 |
Trust 2016-1 | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 216,000,000 | 0 |
Trust 2016-2 | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 178,000,000 | 0 |
Trust 2016-3 | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 228,000,000 | 0 |
Legacy Asset | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 54,000,000 | 65,000,000 |
Other | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 6,305,000,000 | 6,670,000,000 |
Nonrecourse debt–legacy assets | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (7,000,000) | $ (4,000,000) |
Nonrecourse debt–legacy assets | Participating Interest Financing | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 0 | |
Nonrecourse debt–legacy assets | Trust 2014-1 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 344,000,000 | |
Nonrecourse debt–legacy assets | Trust 2015-1 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 269,000,000 | |
Nonrecourse debt–legacy assets | Trust 2015-2 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 217,000,000 | |
Nonrecourse debt–legacy assets | Trust 2016-1 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 282,000,000 | |
Nonrecourse debt–legacy assets | Trust 2016-2 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 209,000,000 | |
Nonrecourse debt–legacy assets | Trust 2016-3 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 237,000,000 | |
Nonrecourse debt–legacy assets | Legacy Asset | ||
Debt Instrument [Line Items] | ||
Securitized Amount | $ 222,000,000 |
Indebtedness - Narrative (Detai
Indebtedness - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016USD ($) | Mar. 31, 2015USD ($) | Sep. 30, 2016USD ($)credit_facility | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 12, 2014USD ($) | Nov. 30, 2009USD ($) | |
Debt Instrument [Line Items] | |||||||
Repurchase of unsecured senior notes | $ 29 | $ 29 | $ 0 | ||||
Gain on repurchase of unsecured senior notes | 0.1 | ||||||
Maximum percentage redeemable on unsecured debt | 35.00% | ||||||
Principal amount outstanding on securitized financing | $ 222 | ||||||
Debt Outstanding | 1,188 | $ 1,188 | $ 1,640 | ||||
Non-Recourse Debt | 6,298 | 6,298 | 6,666 | ||||
Minimum tangible net worth | 682 | 682 | |||||
Securities Pledged as Collateral | |||||||
Debt Instrument [Line Items] | |||||||
Notional amount outstanding on securitized financing | 217 | 217 | 242 | ||||
2014-1 HECM Securitization | |||||||
Debt Instrument [Line Items] | |||||||
Non-Recourse Debt | 0 | 0 | 227 | ||||
Legacy Asset | |||||||
Debt Instrument [Line Items] | |||||||
Non-Recourse Debt | $ 54 | $ 54 | $ 65 | ||||
Nonrecourse debt–legacy assets | 2014-1 HECM Securitization | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from sale of notes | $ 73 | ||||||
Nonrecourse debt–legacy assets | 2014-1 HECM securitization - Class A Notes | |||||||
Debt Instrument [Line Items] | |||||||
Portion of notes that were retained | $ 70 | ||||||
Nonrecourse debt–legacy assets | 2014-1 HECM securitization - Class M Notes | |||||||
Debt Instrument [Line Items] | |||||||
Portion of notes that were retained | $ 36 | ||||||
Notes Payable, MBS | |||||||
Debt Instrument [Line Items] | |||||||
Minimum interest rate | 0.80% | ||||||
Maximum interest rate | 7.00% | ||||||
Secured Debt | HECM Securitizations | |||||||
Debt Instrument [Line Items] | |||||||
Minimum interest rate | 2.00% | ||||||
Maximum interest rate | 7.40% | ||||||
Secured Debt | Nonrecourse debt–legacy assets | |||||||
Debt Instrument [Line Items] | |||||||
Interest Rate | 7.50% | 7.50% | |||||
MBS Facility | |||||||
Debt Instrument [Line Items] | |||||||
Number of facilities covenant was not met | credit_facility | 2 | ||||||
Minimum | Secured Debt | HECM Securitizations | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average useful life (in years) | 1 year | ||||||
Maximum | Secured Debt | HECM Securitizations | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average useful life (in years) | 3 years |
Payables and Accrued Liabilit68
Payables and Accrued Liabilities - Schedule of Accounts Payable (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Payables to servicing and subservicing investors | $ 429 | $ 484 |
Loans subject to repurchase from Ginnie Mae | 144 | 117 |
Payables to GSEs and securitized trusts | 79 | 113 |
Payables to insurance carriers and insurance cancellation reserves | 72 | 70 |
Accrued bonus and payroll | 94 | 96 |
Accrued interest | 64 | 61 |
Professional and legal | 49 | 43 |
Accrued liabilities and accounts payables | 47 | 73 |
Repurchase reserves | 25 | 26 |
Lease obligations | 28 | 13 |
MSR purchases payables including advances | 11 | 22 |
Other | 122 | 178 |
Total payables and accrued liabilities | 1,164 | $ 1,296 |
Capital lease annual lease payment | $ 3 |
Securitizations and Financing69
Securitizations and Financings - Assets and Liabilities of Consolidated VIEs (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | $ 1,394 | $ 1,853 |
Reverse Secured Borrowings, Assets, Carrying Amount | 6,242 | 6,583 |
Liabilities | 1,035 | 1,475 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 6,175 | 6,523 |
Residential Mortgage | Restricted cash | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 129 | 94 |
Reverse Secured Borrowings, Assets, Carrying Amount | 34 | 36 |
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 | 6,208 | 6,547 |
Residential Mortgage | Advances and other receivables, net | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 1,105 | 1,581 |
Reverse Secured Borrowings, Assets, Carrying Amount | 0 | 0 |
Residential Mortgage | Mortgage loans held for investment, net | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 156 | 173 |
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 | 5 |
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 | 979 | 1,408 |
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 | 2 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 0 | 1 |
Residential Mortgage | Participating interest financing | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 5,412 | 5,864 |
Residential Mortgage | Other Non-Recourse Debt | Trust 2014-1 | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 0 | 227 |
Residential Mortgage | Other Non-Recourse Debt | Trust 2015-1 | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 0 | 222 |
Residential Mortgage | Other Non-Recourse Debt | Trust 2015-2 | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 141 | 209 |
Residential Mortgage | Other Non-Recourse Debt | Trust 2016-1 | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 216 | 0 |
Residential Mortgage | Other Non-Recourse Debt | Trust 2016-2 | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 178 | 0 |
Residential Mortgage | Other Non-Recourse Debt | Trust 2016-3 | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 228 | |
Residential Mortgage | Nonrecourse debt–legacy assets | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 54 | 65 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | $ 0 | $ 0 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) shares in Thousands, $ / shares in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Feb. 09, 2016 | Dec. 17, 2015 | |
RSUs | Certain Employees | ||||||
Class of Stock [Line Items] | ||||||
Shares granted (in shares) | 56 | 1,552 | ||||
Compensation expense | $ 6,000,000 | $ 4,000,000 | $ 18,000,000 | $ 15,000,000 | ||
RSUs | Tranche One | Certain Employees | ||||||
Class of Stock [Line Items] | ||||||
Vesting percentage | 33.30% | |||||
RSUs | Tranche Two | Certain Employees | ||||||
Class of Stock [Line Items] | ||||||
Vesting percentage | 33.30% | |||||
RSUs | Tranche Three | Certain Employees | ||||||
Class of Stock [Line Items] | ||||||
Vesting percentage | 33.40% | |||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Amount authorized to be repurchased | $ 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 since inception of plan (in shares) | 11,426 | |||||
Repurchase of common stock (in shares) | 10,589 | |||||
Purchase price per share (in dollars per share) | $ 114 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 29 | $ (47) | $ (106) | $ (31) |
Effective tax rate | 40.60% | 42.10% | 36.80% | 46.00% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Statutory federal rate percentage | 35.00% | 35.00% | 35.00% | 35.00% |
Fair Value Measurements - Measu
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments at fair value, less than | $ 0.1 | $ 0.1 |
ASSETS | ||
Mortgage loans held for sale | 1,839 | 1,430 |
Mortgage servicing rights | 2,725 | 3,358 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 67 | 68.7 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments at fair value, less than | 0.1 | 0.1 |
ASSETS | ||
Total assets | 4,691.3 | 4,887.7 |
LIABILITIES | ||
Excess spread financing | 1,232.1 | |
Total liabilities | 1,093 | 1,306.6 |
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 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | IRLCs | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Forward MBS trades | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | LPCs | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Treasury futures | ||
ASSETS | ||
Fair Value - Asset | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Interest rate swaps and caps | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Eurodollar futures | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Mortgage loans held for sale | 1,838.6 | 1,429.7 |
Mortgage servicing rights | 0 | 0 |
Total assets | 1,965.7 | 1,529.4 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 0 | 0 |
Excess spread financing | 0 | 0 |
Total liabilities | 14.4 | 5.8 |
Fair Value, Measurements, Recurring | Level 2 | IRLCs | ||
ASSETS | ||
Fair Value - Asset | 123 | 89.1 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Forward MBS trades | ||
ASSETS | ||
Fair Value - Asset | 0.6 | 6.1 |
LIABILITIES | ||
Fair Value - Liability | 13.1 | 3.7 |
Fair Value, Measurements, Recurring | Level 2 | LPCs | ||
ASSETS | ||
Fair Value - Asset | 2.8 | 3.9 |
LIABILITIES | ||
Fair Value - Liability | 0.7 | 1.5 |
Fair Value, Measurements, Recurring | Level 2 | Treasury futures | ||
ASSETS | ||
Fair Value - Asset | 0.5 | |
LIABILITIES | ||
Fair Value - Liability | 0.3 | |
Fair Value, Measurements, Recurring | Level 2 | Interest rate swaps and caps | ||
ASSETS | ||
Fair Value - Asset | 0.2 | 0.5 |
LIABILITIES | ||
Fair Value - Liability | 0.2 | 0.5 |
Fair Value, Measurements, Recurring | Level 2 | Eurodollar futures | ||
ASSETS | ||
Fair Value - Asset | 0 | 0.1 |
LIABILITIES | ||
Fair Value - Liability | 0.1 | 0.1 |
Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Mortgage loans held for sale | 0 | 0 |
Mortgage servicing rights | 2,725.6 | 3,358.3 |
Total assets | 2,725.6 | 3,358.3 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 67.1 | 69 |
Excess spread financing | 1,011.5 | 1,232.1 |
Total liabilities | 1,078.6 | 1,300.8 |
Fair Value, Measurements, Recurring | Level 3 | IRLCs | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Forward MBS trades | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | LPCs | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Treasury futures | ||
ASSETS | ||
Fair Value - Asset | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Interest rate swaps and caps | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Eurodollar futures | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Fair Value, Measurements, Recurring | Reported Value Measurement | ||
ASSETS | ||
Mortgage loans held for sale | 1,838.6 | 1,430 |
Mortgage servicing rights | 2,725.6 | |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 67.1 | 69 |
Excess spread financing | 1,011.5 | 1,232 |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | ||
ASSETS | ||
Mortgage loans held for sale | 1,429.7 | |
Mortgage servicing rights | 3,358.3 | |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | IRLCs | ||
ASSETS | ||
Fair Value - Asset | 89.1 | |
LIABILITIES | ||
Fair Value - Liability | 0 | |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | Forward MBS trades | ||
ASSETS | ||
Fair Value - Asset | 6.1 | |
LIABILITIES | ||
Fair Value - Liability | 3.7 | |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | LPCs | ||
ASSETS | ||
Fair Value - Asset | 3.9 | |
LIABILITIES | ||
Fair Value - Liability | 1.5 | |
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | Interest rate swaps and caps | ||
ASSETS | ||
Fair Value - Asset | 0.5 | |
LIABILITIES | ||
Fair Value - Liability | 0.5 | |
Derivative financial instruments | Fair Value, Measurements, Recurring | IRLCs | ||
ASSETS | ||
Fair Value - Asset | 123 | 89.1 |
Derivative financial instruments | Fair Value, Measurements, Recurring | Forward MBS trades | ||
ASSETS | ||
Fair Value - Asset | 0.6 | 6.1 |
Derivative financial instruments | Fair Value, Measurements, Recurring | LPCs | ||
ASSETS | ||
Fair Value - Asset | 2.8 | 3.9 |
Derivative financial instruments | Fair Value, Measurements, Recurring | Treasury futures | ||
ASSETS | ||
Fair Value - Asset | 0.5 | |
Derivative financial instruments | Fair Value, Measurements, Recurring | Interest rate swaps and caps | ||
ASSETS | ||
Fair Value - Asset | 0.2 | 0.5 |
Derivative financial instruments | Fair Value, Measurements, Recurring | Eurodollar futures | ||
ASSETS | ||
Fair Value - Asset | 0 | 0.1 |
Derivative Liabilities | Fair Value, Measurements, Recurring | IRLCs | ||
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Derivative Liabilities | Fair Value, Measurements, Recurring | Forward MBS trades | ||
LIABILITIES | ||
Fair Value - Liability | 13.1 | 3.7 |
Derivative Liabilities | Fair Value, Measurements, Recurring | LPCs | ||
LIABILITIES | ||
Fair Value - Liability | 0.7 | 1.5 |
Derivative Liabilities | Fair Value, Measurements, Recurring | Treasury futures | ||
LIABILITIES | ||
Fair Value - Liability | 0.3 | |
Derivative Liabilities | Fair Value, Measurements, Recurring | Interest rate swaps and caps | ||
LIABILITIES | ||
Fair Value - Liability | 0.2 | 0.5 |
Derivative Liabilities | Fair Value, Measurements, Recurring | Eurodollar futures | ||
LIABILITIES | ||
Fair Value - Liability | 0.1 | 0.1 |
Mortgage servicing rights | ||
ASSETS | ||
Mortgage servicing rights | $ 2,725 | $ 3,358 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Reconciliation (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Excess spread financing | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 1,232 | $ 1,031 | $ 1,031 |
Total gains or losses included in earnings | (74) | 25 | |
Purchases | 0 | 0 | |
Issuances | 0 | 386 | |
Settlements | (146) | (210) | |
Dispositions | 0 | 0 | |
Ending balance | 1,012 | 1,232 | |
Mortgage servicing rights financing | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 69 | 49 | 49 |
Total gains or losses included in earnings | (2) | 20 | |
Purchases | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Dispositions | 0 | 0 | |
Ending balance | 67 | 69 | |
Mortgage servicing rights | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 3,358 | 2,950 | 2,950 |
Total gains or losses included in earnings | (796) | (497) | |
Purchases of servicing assets | 50 | 695 | 730 |
Servicing resulting from transfers of financial assets | 140 | $ 169 | 222 |
Settlements | 0 | 0 | |
Dispositions | (27) | (47) | |
Ending balance | $ 2,725 | $ 3,358 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Restricted cash | $ 336 | $ 332 |
Reverse mortgage interests, net | 7,334 | 7,514 |
Mortgage loans held for sale | 1,839 | 1,430 |
Total mortgage loans held for investment, net | 156 | 174 |
Derivative instruments | 127 | 100 |
Financial liabilities: | ||
Unsecured senior notes | 2,000 | 2,026 |
Advance facilities | 1,188 | 1,640 |
Warehouse facilities | 2,610 | 1,890 |
Mortgage servicing rights financing liability - fair value | 67 | 68.7 |
Derivative financial instruments | 14 | 6 |
Other nonrecourse debt | 6,298 | 6,666 |
Participating Interest Financing | ||
Financial liabilities: | ||
Other nonrecourse debt | 5,488 | 5,947 |
Trust 2014-1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | 227 |
Trust 2015-1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | 222 |
Trust 2015-2 | ||
Financial liabilities: | ||
Other nonrecourse debt | 141 | 209 |
Trust 2016-1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 216 | 0 |
Trust 2016-2 | ||
Financial liabilities: | ||
Other nonrecourse debt | 178 | 0 |
Trust 2016-3 | ||
Financial liabilities: | ||
Other nonrecourse debt | 228 | 0 |
Legacy Asset | ||
Financial liabilities: | ||
Other nonrecourse debt | 54 | 65 |
Level 1 | ||
Financial assets: | ||
Advances and other receivables, net | 0 | |
Level 2 | ||
Financial assets: | ||
Advances and other receivables, net | 0 | |
Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Excess spread financing | 1,232.1 | |
Fair Value, Measurements, Recurring | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 695 | 613 |
Restricted cash | 336 | 332 |
Advances and other receivables, 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 | 2,014 | 1,912 |
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 1 | Participating Interest Financing | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Trust 2014-1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Trust 2015-1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Trust 2015-2 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Trust 2016-1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Trust 2016-2 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Trust 2016-3 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Legacy Asset | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Advances and other receivables, net | 0 | |
Reverse mortgage interests, net | 0 | 0 |
Mortgage loans held for sale | 1,838.6 | 1,429.7 |
Total mortgage loans held for investment, net | 0 | 0 |
Derivative instruments | 127 | 100 |
Financial liabilities: | ||
Unsecured senior notes | 0 | 0 |
Advance facilities | 1,188 | 1,646 |
Warehouse facilities | 2,610 | 1,893 |
Mortgage servicing rights financing liability - fair value | 0 | 0 |
Derivative financial instruments | 14 | 6 |
Excess spread financing | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Participating Interest Financing | ||
Financial liabilities: | ||
Other nonrecourse debt | 5,646 | 6,091 |
Fair Value, Measurements, Recurring | Level 2 | Trust 2014-1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Trust 2015-1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Trust 2015-2 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Trust 2016-1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Trust 2016-2 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Trust 2016-3 | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Legacy Asset | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Advances and other receivables, net | 1,824 | 2,412 |
Reverse mortgage interests, net | 7,504 | 7,705 |
Mortgage loans held for sale | 0 | 0 |
Total mortgage loans held for investment, net | 159 | 174 |
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 | 67.1 | 69 |
Derivative financial instruments | 0 | 0 |
Excess spread financing | 1,011.5 | 1,232.1 |
Fair Value, Measurements, Recurring | Level 3 | Participating Interest Financing | ||
Financial liabilities: | ||
Other nonrecourse debt | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Trust 2014-1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 298 | |
Fair Value, Measurements, Recurring | Level 3 | Trust 2015-1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 275 | |
Fair Value, Measurements, Recurring | Level 3 | Trust 2015-2 | ||
Financial liabilities: | ||
Other nonrecourse debt | 147 | 250 |
Fair Value, Measurements, Recurring | Level 3 | Trust 2016-1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 228 | |
Fair Value, Measurements, Recurring | Level 3 | Trust 2016-2 | ||
Financial liabilities: | ||
Other nonrecourse debt | 179 | |
Fair Value, Measurements, Recurring | Level 3 | Trust 2016-3 | ||
Financial liabilities: | ||
Other nonrecourse debt | 227 | |
Fair Value, Measurements, Recurring | Level 3 | Legacy Asset | ||
Financial liabilities: | ||
Other nonrecourse debt | 53 | 74 |
Fair Value, Measurements, Recurring | Reported Value Measurement | ||
Financial assets: | ||
Cash and cash equivalents | 695 | 613 |
Restricted cash | 336 | 332 |
Advances and other receivables, net | 1,824 | 2,412 |
Reverse mortgage interests, net | 7,334 | 7,514 |
Mortgage loans held for sale | 1,838.6 | 1,430 |
Total mortgage loans held for investment, net | 156 | 174 |
Derivative instruments | 127 | 100 |
Financial liabilities: | ||
Unsecured senior notes | 2,000 | 2,026 |
Advance facilities | 1,188 | 1,640 |
Warehouse facilities | 2,610 | 1,890 |
Mortgage servicing rights financing liability - fair value | 67.1 | 69 |
Derivative financial instruments | 14 | 6 |
Excess spread financing | 1,011.5 | 1,232 |
Fair Value, Measurements, Recurring | Reported Value Measurement | Participating Interest Financing | ||
Financial liabilities: | ||
Other nonrecourse debt | 5,488 | 5,947 |
Fair Value, Measurements, Recurring | Reported Value Measurement | Trust 2014-1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 227 | |
Fair Value, Measurements, Recurring | Reported Value Measurement | Trust 2015-1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 222 | |
Fair Value, Measurements, Recurring | Reported Value Measurement | Trust 2015-2 | ||
Financial liabilities: | ||
Other nonrecourse debt | 141 | 209 |
Fair Value, Measurements, Recurring | Reported Value Measurement | Trust 2016-1 | ||
Financial liabilities: | ||
Other nonrecourse debt | 216 | |
Fair Value, Measurements, Recurring | Reported Value Measurement | Trust 2016-2 | ||
Financial liabilities: | ||
Other nonrecourse debt | 178 | |
Fair Value, Measurements, Recurring | Reported Value Measurement | Trust 2016-3 | ||
Financial liabilities: | ||
Other nonrecourse debt | 228 | |
Fair Value, Measurements, Recurring | Reported Value Measurement | Legacy Asset | ||
Financial liabilities: | ||
Other nonrecourse debt | $ 54 | $ 65 |
Capital Requirements - Narrativ
Capital Requirements - Narrative (Details) $ in Millions | Sep. 30, 2016USD ($) |
Mortgage Banking [Abstract] | |
Minimum Net Worth Required for Compliance | $ 1,136 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | |||||
Legal Fees | $ 16,000,000 | $ 14,000,000 | $ 49,000,000 | $ 37,000,000 | |
UPB in reverse mortgage loans | 7,334,000,000 | 7,334,000,000 | $ 7,514,000,000 | ||
Reverse mortgage interests, net | |||||
Loss Contingencies [Line Items] | |||||
UPB in reverse mortgage loans | 26,855,000,000 | 26,855,000,000 | |||
Unfunded advance obligations | 2,738,000,000 | 2,738,000,000 | |||
Minimum | |||||
Loss Contingencies [Line Items] | |||||
Estimate of possible loss | 19,000,000 | 19,000,000 | |||
Maximum | |||||
Loss Contingencies [Line Items] | |||||
Estimate of possible loss | $ 55,000,000 | $ 55,000,000 |
Business Segment Reporting - Fi
Business Segment Reporting - Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Revenues: | |||||
Service related, net | $ 305 | $ 211 | $ 502 | $ 884 | |
Net gain on mortgage loans held for sale | 237 | 186 | 624 | 517 | |
Total revenues | 542 | 397 | 1,126 | 1,401 | |
Total expenses | 407 | 446 | 1,232 | 1,271 | |
Other income (expenses) | |||||
Interest income | 103 | 113 | 313 | 243 | |
Interest expense | (165) | (176) | (493) | (439) | |
Other | (2) | 0 | (2) | (1) | |
Total other income (expenses), net | (64) | (63) | (182) | (197) | |
Income (loss) before taxes | 71 | (112) | (288) | (67) | |
Depreciation and amortization | 22 | 20 | 66 | 52 | |
Total assets | 15,846 | 16,997 | 15,846 | 16,997 | $ 16,617 |
Operating Segments | |||||
Revenues: | |||||
Service related, net | 305 | 211 | 501 | 882 | |
Net gain on mortgage loans held for sale | 237 | 186 | 624 | 515 | |
Total revenues | 542 | 397 | 1,125 | 1,397 | |
Total expenses | 383 | 432 | 1,162 | 1,215 | |
Other income (expenses) | |||||
Interest income | 99 | 108 | 302 | 232 | |
Interest expense | (123) | (133) | (369) | (310) | |
Other | (1) | 0 | (1) | (1) | |
Total other income (expenses), net | (25) | (25) | (68) | (79) | |
Income (loss) before taxes | 134 | (60) | (105) | 103 | |
Depreciation and amortization | 13 | 16 | 40 | 44 | |
Total assets | 17,118 | 16,304 | 17,118 | 16,304 | |
Servicing Segment | |||||
Revenues: | |||||
Service related, net | 210 | 107 | 225 | 550 | |
Net gain on mortgage loans held for sale | 0 | 0 | 0 | 0 | |
Total revenues | 210 | 107 | 225 | 550 | |
Total expenses | 154 | 208 | 488 | 600 | |
Other income (expenses) | |||||
Interest income | 82 | 89 | 254 | 181 | |
Interest expense | (107) | (115) | (325) | (263) | |
Other | 0 | 0 | 0 | (1) | |
Total other income (expenses), net | (25) | (26) | (71) | (83) | |
Income (loss) before taxes | 31 | (127) | (334) | (133) | |
Depreciation and amortization | 7 | 7 | 17 | 19 | |
Total assets | 12,250 | 14,120 | 12,250 | 14,120 | |
Originations Segment | |||||
Revenues: | |||||
Service related, net | 14 | 18 | 42 | 38 | |
Net gain on mortgage loans held for sale | 211 | 163 | 531 | 470 | |
Total revenues | 225 | 181 | 573 | 508 | |
Total expenses | 142 | 132 | 400 | 349 | |
Other income (expenses) | |||||
Interest income | 17 | 19 | 48 | 51 | |
Interest expense | (16) | (18) | (44) | (47) | |
Other | (1) | 0 | (1) | 0 | |
Total other income (expenses), net | 0 | 1 | 3 | 4 | |
Income (loss) before taxes | 83 | 50 | 176 | 163 | |
Depreciation and amortization | 2 | 5 | 7 | 13 | |
Total assets | 4,523 | 1,899 | 4,523 | 1,899 | |
Xome | |||||
Revenues: | |||||
Service related, net | 107 | 109 | 327 | 339 | |
Net gain on mortgage loans held for sale | 0 | 0 | 0 | 0 | |
Total revenues | 107 | 109 | 327 | 339 | |
Total expenses | 87 | 92 | 274 | 266 | |
Other income (expenses) | |||||
Interest income | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | 0 | |
Total other income (expenses), net | 0 | 0 | 0 | 0 | |
Income (loss) before taxes | 20 | 17 | 53 | 73 | |
Depreciation and amortization | 4 | 4 | 16 | 12 | |
Total assets | 345 | 285 | 345 | 285 | |
Corporate and Other | |||||
Revenues: | |||||
Service related, net | 0 | 0 | 1 | 2 | |
Net gain on mortgage loans held for sale | 0 | 0 | 0 | 2 | |
Total revenues | 0 | 0 | 1 | 4 | |
Total expenses | 24 | 14 | 70 | 56 | |
Other income (expenses) | |||||
Interest income | 4 | 5 | 11 | 11 | |
Interest expense | (42) | (43) | (124) | (129) | |
Other | (1) | 0 | (1) | 0 | |
Total other income (expenses), net | (39) | (38) | (114) | (118) | |
Income (loss) before taxes | (63) | (52) | (183) | (170) | |
Depreciation and amortization | 9 | 4 | 26 | 8 | |
Total assets | (1,272) | 693 | (1,272) | 693 | |
Eliminations | |||||
Revenues: | |||||
Service related, net | (26) | (23) | (93) | (45) | |
Net gain on mortgage loans held for sale | 26 | 23 | 93 | 45 | |
Total revenues | 0 | 0 | 0 | 0 | |
Total expenses | 0 | 0 | 0 | 0 | |
Other income (expenses) | |||||
Interest income | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | 0 | |
Total other income (expenses), net | 0 | 0 | 0 | 0 | |
Income (loss) before taxes | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Total assets | $ 0 | $ 0 | $ 0 | $ 0 |
Guarantor Financial Statement79
Guarantor Financial Statement Information - Narrative (Details) $ in Millions | Sep. 30, 2016USD ($)subsidiary | Dec. 31, 2015USD ($) |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||
Unsecured senior notes | $ | $ 2,000 | $ 2,026 |
Guarantor Subsidiary, Ownership Percentage | 100.00% | |
Number of Subsidiaries as Guarantors of Unsecured Debt | subsidiary | 2 |
Guarantor Financial Statement80
Guarantor Financial Statement Information - Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents | $ 695 | $ 613 | $ 597 | $ 299 |
Restricted cash | 336 | 332 | ||
Mortgage servicing rights | 2,732 | 3,367 | ||
Advances and other receivables, net of reserves of $180 and $130, respectively | 1,824 | 2,412 | ||
Reverse mortgage interests, net | 7,334 | 7,514 | ||
Mortgage loans held for sale | 1,839 | 1,430 | ||
Total mortgage loans held for investment, net | 156 | 174 | ||
Property and equipment, net | 149 | 143 | ||
Derivative financial instruments at fair value | 127 | 100 | ||
Other assets | 654 | 532 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 15,846 | 16,617 | 16,997 | |
Liabilities and shareholders' equity | ||||
Unsecured senior notes | 2,000 | 2,026 | ||
Advance facilities | 1,188 | 1,640 | ||
Warehouse facilities | 2,610 | 1,890 | ||
Payables and accrued liabilities | 1,164 | 1,296 | ||
MSR related liabilities - nonrecourse at fair value | 1,079 | 1,301 | ||
Mortgage servicing liabilities | 11 | 25 | ||
Derivative financial instruments at fair value | 14 | 6 | ||
Other nonrecourse debt | 6,298 | 6,666 | ||
Payables to affiliates | 0 | 0 | ||
Total liabilities | 14,364 | 14,850 | ||
Total equity | 1,482 | 1,767 | 1,696 | 1,224 |
Total liabilities and equity | 15,846 | 16,617 | ||
Eliminations | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Advances and other receivables, net of reserves of $180 and $130, respectively | 0 | 0 | ||
Reverse mortgage interests, net | 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 at fair value | 0 | 0 | ||
Other assets | (1,177) | (1,881) | ||
Investment in subsidiaries | (2,222) | (2,278) | ||
Total assets | (3,399) | (4,159) | ||
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 at fair value | 0 | 0 | ||
Mortgage servicing liabilities | 0 | 0 | ||
Derivative financial instruments at fair value | 0 | 0 | ||
Other nonrecourse debt | 0 | 0 | ||
Payables to affiliates | (1,177) | (1,881) | ||
Total liabilities | (1,177) | (1,881) | ||
Total equity | (2,222) | (2,278) | ||
Total liabilities and equity | (3,399) | (4,159) | ||
Nationstar | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Advances and other receivables, net of reserves of $180 and $130, respectively | 0 | 0 | ||
Reverse mortgage interests, net | 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 at fair value | 0 | 0 | ||
Other assets | (118) | 3 | ||
Investment in subsidiaries | 1,600 | 1,768 | ||
Total assets | 1,482 | 1,771 | ||
Liabilities and shareholders' equity | ||||
Unsecured senior notes | 0 | 0 | ||
Advance facilities | 0 | 0 | ||
Warehouse facilities | 0 | 0 | ||
Payables and accrued liabilities | 0 | 4 | ||
MSR related liabilities - nonrecourse at fair value | 0 | 0 | ||
Mortgage servicing liabilities | 0 | 0 | ||
Derivative financial instruments at fair value | 0 | 0 | ||
Other nonrecourse debt | 0 | 0 | ||
Payables to affiliates | 0 | 0 | ||
Total liabilities | 0 | 4 | ||
Total equity | 1,482 | 1,767 | ||
Total liabilities and equity | 1,482 | 1,771 | ||
Issuer (Parent) | ||||
Assets | ||||
Cash and cash equivalents | 664 | 597 | 573 | 280 |
Restricted cash | 170 | 199 | ||
Mortgage servicing rights | 2,732 | 3,367 | ||
Advances and other receivables, net of reserves of $180 and $130, respectively | 1,824 | 2,412 | ||
Reverse mortgage interests, net | 6,537 | 6,832 | ||
Mortgage loans held for sale | 1,782 | 1,305 | ||
Total mortgage loans held for investment, net | 0 | 1 | ||
Property and equipment, net | 121 | 113 | ||
Derivative financial instruments at fair value | 125 | 96 | ||
Other assets | 530 | 610 | ||
Investment in subsidiaries | 622 | 510 | ||
Total assets | 15,107 | 16,042 | ||
Liabilities and shareholders' equity | ||||
Unsecured senior notes | 2,000 | 2,026 | ||
Advance facilities | 209 | 232 | ||
Warehouse facilities | 2,558 | 1,782 | ||
Payables and accrued liabilities | 1,098 | 1,222 | ||
MSR related liabilities - nonrecourse at fair value | 1,079 | 1,301 | ||
Mortgage servicing liabilities | 11 | 25 | ||
Derivative financial instruments at fair value | 14 | 6 | ||
Other nonrecourse debt | 5,481 | 5,943 | ||
Payables to affiliates | 1,057 | 1,737 | ||
Total liabilities | 13,507 | 14,274 | ||
Total equity | 1,600 | 1,768 | ||
Total liabilities and equity | 15,107 | 16,042 | ||
Guarantor (Subsidiaries) | ||||
Assets | ||||
Cash and cash equivalents | 1 | 1 | 3 | 0 |
Restricted cash | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Advances and other receivables, net of reserves of $180 and $130, respectively | 0 | 0 | ||
Reverse mortgage interests, net | 0 | 0 | ||
Mortgage loans held for sale | 0 | 0 | ||
Total mortgage loans held for investment, net | 0 | 0 | ||
Property and equipment, net | 1 | 1 | ||
Derivative financial instruments at fair value | 0 | 0 | ||
Other assets | 315 | 303 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 317 | 305 | ||
Liabilities and shareholders' equity | ||||
Unsecured senior notes | 0 | 0 | ||
Advance facilities | 0 | 0 | ||
Warehouse facilities | 0 | 0 | ||
Payables and accrued liabilities | 1 | 1 | ||
MSR related liabilities - nonrecourse at fair value | 0 | 0 | ||
Mortgage servicing liabilities | 0 | 0 | ||
Derivative financial instruments at fair value | 0 | 0 | ||
Other nonrecourse debt | 0 | 0 | ||
Payables to affiliates | 3 | 1 | ||
Total liabilities | 4 | 2 | ||
Total equity | 313 | 303 | ||
Total liabilities and equity | 317 | 305 | ||
Non-Guarantor (Subsidiaries) | ||||
Assets | ||||
Cash and cash equivalents | 30 | 15 | $ 21 | $ 19 |
Restricted cash | 166 | 133 | ||
Mortgage servicing rights | 0 | 0 | ||
Advances and other receivables, net of reserves of $180 and $130, respectively | 0 | 0 | ||
Reverse mortgage interests, net | 797 | 682 | ||
Mortgage loans held for sale | 57 | 125 | ||
Total mortgage loans held for investment, net | 156 | 173 | ||
Property and equipment, net | 27 | 29 | ||
Derivative financial instruments at fair value | 2 | 4 | ||
Other assets | 1,104 | 1,497 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 2,339 | 2,658 | ||
Liabilities and shareholders' equity | ||||
Unsecured senior notes | 0 | 0 | ||
Advance facilities | 979 | 1,408 | ||
Warehouse facilities | 52 | 108 | ||
Payables and accrued liabilities | 65 | 69 | ||
MSR related liabilities - nonrecourse at fair value | 0 | 0 | ||
Mortgage servicing liabilities | 0 | 0 | ||
Derivative financial instruments at fair value | 0 | 0 | ||
Other nonrecourse debt | 817 | 723 | ||
Payables to affiliates | 117 | 143 | ||
Total liabilities | 2,030 | 2,451 | ||
Total equity | 309 | 207 | ||
Total liabilities and equity | $ 2,339 | $ 2,658 |
Guarantor Financial Statement81
Guarantor Financial Statement Information - Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Service related, net | $ 305 | $ 211 | $ 502 | $ 884 |
Net gain on mortgage loans held for sale | 237 | 186 | 624 | 517 |
Total revenues | 542 | 397 | 1,126 | 1,401 |
Expenses: | ||||
Salaries, wages and benefits | 211 | 201 | 613 | 578 |
General and administrative | 196 | 245 | 619 | 693 |
Total expenses | 407 | 446 | 1,232 | 1,271 |
Other income (expenses): | ||||
Interest income | 103 | 113 | 313 | 243 |
Interest expense | (165) | (176) | (493) | (439) |
Other | (2) | 0 | (2) | (1) |
Gain (loss) from subsidiaries | 0 | 0 | 0 | 0 |
Total other income (expenses), net | (64) | (63) | (182) | (197) |
Income (loss) before taxes | 71 | (112) | (288) | (67) |
Income tax expense (benefit) | 29 | (47) | (106) | (31) |
Net income (loss) | 42 | (65) | (182) | (36) |
Less: net income (loss) attributable to noncontrolling interests | (3) | 1 | (3) | 4 |
Net income (loss) excluding noncontrolling interests | 45 | (66) | (179) | (40) |
Eliminations | ||||
Revenues: | ||||
Service related, net | 0 | 0 | 0 | 0 |
Net gain on mortgage loans held for sale | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 | 0 |
Expenses: | ||||
Salaries, wages and benefits | 0 | 0 | 0 | 0 |
General and administrative | 0 | 0 | 0 | 0 |
Total expenses | 0 | 0 | 0 | 0 |
Other income (expenses): | ||||
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | |
Gain (loss) from subsidiaries | (54) | 51 | 149 | (22) |
Total other income (expenses), net | (54) | 51 | 149 | (22) |
Income (loss) before taxes | (54) | 51 | 149 | (22) |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net income (loss) | (54) | 51 | 149 | (22) |
Less: net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) excluding noncontrolling interests | (54) | 51 | 149 | (22) |
Nationstar | ||||
Revenues: | ||||
Service related, net | 0 | 0 | 0 | 0 |
Net gain on mortgage loans held for sale | 0 | 0 | 0 | 0 |
Total revenues | 0 | 0 | 0 | 0 |
Expenses: | ||||
Salaries, wages and benefits | 0 | 0 | 0 | 0 |
General and administrative | 0 | 0 | 0 | 0 |
Total expenses | 0 | 0 | 0 | 0 |
Other income (expenses): | ||||
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | |
Gain (loss) from subsidiaries | 45 | (66) | (179) | (40) |
Total other income (expenses), net | 45 | (66) | (179) | (40) |
Income (loss) before taxes | 45 | (66) | (179) | (40) |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net income (loss) | 45 | (66) | (179) | (40) |
Less: net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) excluding noncontrolling interests | 45 | (66) | (179) | (40) |
Issuer (Parent) | ||||
Revenues: | ||||
Service related, net | 191 | 96 | 151 | 529 |
Net gain on mortgage loans held for sale | 228 | 174 | 595 | 484 |
Total revenues | 419 | 270 | 746 | 1,013 |
Expenses: | ||||
Salaries, wages and benefits | 155 | 141 | 448 | 411 |
General and administrative | 143 | 200 | 453 | 558 |
Total expenses | 298 | 341 | 901 | 969 |
Other income (expenses): | ||||
Interest income | 90 | 102 | 276 | 215 |
Interest expense | (147) | (157) | (437) | (388) |
Other | (2) | (2) | 0 | |
Gain (loss) from subsidiaries | 9 | 15 | 30 | 62 |
Total other income (expenses), net | (50) | (40) | (133) | (111) |
Income (loss) before taxes | 71 | (111) | (288) | (67) |
Income tax expense (benefit) | 29 | (46) | (106) | (31) |
Net income (loss) | 42 | (65) | (182) | (36) |
Less: net income (loss) attributable to noncontrolling interests | (3) | 1 | (3) | 4 |
Net income (loss) excluding noncontrolling interests | 45 | (66) | (179) | (40) |
Guarantor (Subsidiaries) | ||||
Revenues: | ||||
Service related, net | 5 | 16 | 19 | 13 |
Net gain on mortgage loans held for sale | 0 | 0 | 0 | 0 |
Total revenues | 5 | 16 | 19 | 13 |
Expenses: | ||||
Salaries, wages and benefits | 1 | 4 | 3 | 4 |
General and administrative | 2 | 1 | 6 | 1 |
Total expenses | 3 | 5 | 9 | 5 |
Other income (expenses): | ||||
Interest income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | |
Gain (loss) from subsidiaries | 0 | 0 | 0 | 0 |
Total other income (expenses), net | 0 | 0 | 0 | 0 |
Income (loss) before taxes | 2 | 11 | 10 | 8 |
Income tax expense (benefit) | 0 | (1) | 0 | 0 |
Net income (loss) | 2 | 12 | 10 | 8 |
Less: net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) excluding noncontrolling interests | 2 | 12 | 10 | 8 |
Non-Guarantor (Subsidiaries) | ||||
Revenues: | ||||
Service related, net | 109 | 99 | 332 | 342 |
Net gain on mortgage loans held for sale | 9 | 12 | 29 | 33 |
Total revenues | 118 | 111 | 361 | 375 |
Expenses: | ||||
Salaries, wages and benefits | 55 | 56 | 162 | 163 |
General and administrative | 51 | 44 | 160 | 134 |
Total expenses | 106 | 100 | 322 | 297 |
Other income (expenses): | ||||
Interest income | 13 | 11 | 37 | 28 |
Interest expense | (18) | (19) | (56) | (51) |
Other | 0 | 0 | (1) | |
Gain (loss) from subsidiaries | 0 | 0 | 0 | 0 |
Total other income (expenses), net | (5) | (8) | (19) | (24) |
Income (loss) before taxes | 7 | 3 | 20 | 54 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net income (loss) | 7 | 3 | 20 | 54 |
Less: net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) excluding noncontrolling interests | $ 7 | $ 3 | $ 20 | $ 54 |
Guarantor Financial Statement82
Guarantor Financial Statement Information - Consolidating Statements of Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities | ||||
Net income (loss) | $ 45 | $ (66) | $ (179) | $ (40) |
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: | ||||
Noncontrolling interest | (3) | 1 | (3) | 4 |
(Gain) loss from subsidiaries | 0 | 0 | ||
Share-based compensation | 18 | 15 | ||
Excess tax deficiency (benefit) from share-based compensation | 4 | (1) | ||
Net gain on mortgage loans held for sale | (624) | (517) | ||
Provision for reserves on advances and other receivables | 85 | 39 | ||
Mortgage loans originated and purchased, net of fees | (15,845) | (13,970) | ||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | (1,138) | (1,393) | ||
Sales proceeds and loan payments proceeds for mortgage loans held for sale and held for investment | 17,043 | 15,049 | ||
Other loss | 2 | 1 | ||
Depreciation and amortization | 22 | 20 | 66 | 52 |
Amortization (accretion) of premiums (discounts) | 27 | (20) | ||
Fair value changes in excess spread financing | (75) | (23) | ||
Fair value changes and amortization of mortgage servicing rights | 784 | 500 | ||
Fair value changes in mortgage servicing rights financing liability | (2) | 7 | ||
Changes in assets and liabilities: | ||||
Advances and other receivables, net | 519 | 479 | ||
Reverse mortgage interests, net | 179 | (165) | ||
Other assets | (137) | 47 | ||
Payables and accrued liabilities | (139) | (127) | ||
Net cash attributable to operating activities | 585 | (63) | ||
Investing Activities | ||||
Property and equipment additions, net of disposals | (47) | (44) | ||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (46) | (615) | ||
Purchase of reverse mortgage interests | 0 | (4,815) | ||
Sale of forward mortgage servicing rights | 27 | 41 | ||
Proceeds on sale of reverse mortgage servicing rights | 1 | 0 | ||
Business acquisitions, net | 0 | (45) | ||
Net cash attributable to investing activities | (65) | (5,478) | ||
Financing Activities | ||||
Transfers to restricted cash, net | 0 | (192) | ||
Issuance of common stock, net of issuance costs | 0 | 498 | ||
Debt financing costs | (10) | (10) | ||
Increase/(decrease) in warehouse facilities | 718 | 730 | ||
Increase/(decrease) in advance facilities | (458) | (148) | ||
Proceeds from HECM securitizations | 724 | 342 | ||
Repayment of HECM securitizations | (624) | (103) | ||
Issuance of excess spread financing | 0 | 263 | ||
Repayment of excess spread financing | (146) | (155) | ||
Increase (decrease) in participating interest financing in reverse mortgage interests | (480) | 4,629 | ||
Repayment of nonrecourse debt–legacy assets | (12) | (10) | ||
Repurchase of unsecured senior notes | (29) | (29) | 0 | |
Excess tax (deficiency) benefit from share-based compensation | (4) | 1 | ||
Surrender of shares relating to stock vesting | (3) | (6) | ||
Repurchase of common stock | (114) | 0 | ||
Net cash attributable to financing activities | (438) | 5,839 | ||
Net increase in cash and cash equivalents | 82 | 298 | ||
Cash and cash equivalents at beginning of period | 613 | 299 | ||
Cash and cash equivalents at end of period | 695 | 597 | 695 | 597 |
Eliminations | ||||
Operating Activities | ||||
Net income (loss) | (54) | 51 | 149 | (22) |
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: | ||||
Noncontrolling interest | 0 | 0 | 0 | 0 |
(Gain) loss from subsidiaries | (149) | 22 | ||
Share-based compensation | 0 | 0 | ||
Excess tax deficiency (benefit) from share-based compensation | 0 | 0 | ||
Net gain on mortgage loans held for sale | 0 | 0 | ||
Provision for reserves on advances and other receivables | 0 | 0 | ||
Mortgage loans originated and purchased, net of fees | 0 | 0 | ||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | 0 | 0 | ||
Sales proceeds and loan payments proceeds for mortgage loans held for sale and held for investment | 0 | 0 | ||
Other loss | 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 of mortgage servicing rights | 0 | 0 | ||
Fair value changes in mortgage servicing rights financing liability | 0 | 0 | ||
Changes in assets and liabilities: | ||||
Advances and other receivables, net | 0 | 0 | ||
Reverse mortgage interests, net | 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 | |||
Sale of forward mortgage servicing rights | 0 | 0 | ||
Proceeds on sale of reverse mortgage servicing rights | 0 | |||
Business acquisitions, net | 0 | |||
Net cash attributable to investing activities | 0 | 0 | ||
Financing Activities | ||||
Transfers to restricted cash, net | 0 | 0 | ||
Issuance of common stock, net of issuance costs | 0 | |||
Debt financing costs | 0 | 0 | ||
Increase/(decrease) in warehouse facilities | 0 | 0 | ||
Increase/(decrease) in advance 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 | ||
Surrender of shares relating to stock vesting | 0 | 0 | ||
Repurchase of common stock | 0 | |||
Net cash attributable to financing activities | 0 | 0 | ||
Net increase 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 | 0 | 0 |
Nationstar | ||||
Operating Activities | ||||
Net income (loss) | 45 | (66) | (179) | (40) |
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: | ||||
Noncontrolling interest | 0 | 0 | 0 | 0 |
(Gain) loss from subsidiaries | 179 | 40 | ||
Share-based compensation | 0 | 0 | ||
Excess tax deficiency (benefit) from share-based compensation | 0 | 0 | ||
Net gain on mortgage loans held for sale | 0 | 0 | ||
Provision for reserves on advances and other receivables | 0 | 0 | ||
Mortgage loans originated and purchased, net of fees | 0 | 0 | ||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | 0 | 0 | ||
Sales proceeds and loan payments proceeds for mortgage loans held for sale and held for investment | 0 | 0 | ||
Other loss | 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 of mortgage servicing rights | 0 | 0 | ||
Fair value changes in mortgage servicing rights financing liability | 0 | 0 | ||
Changes in assets and liabilities: | ||||
Advances and other receivables, net | 0 | 0 | ||
Reverse mortgage interests, net | 0 | 0 | ||
Other assets | 117 | 6 | ||
Payables and accrued liabilities | 0 | 0 | ||
Net cash attributable to operating activities | 117 | 6 | ||
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 | |||
Sale of forward mortgage servicing rights | 0 | 0 | ||
Proceeds on sale of reverse mortgage servicing rights | 0 | |||
Business acquisitions, net | 0 | |||
Net cash attributable to investing activities | 0 | 0 | ||
Financing Activities | ||||
Transfers to restricted cash, net | 0 | 0 | ||
Issuance of common stock, net of issuance costs | 0 | |||
Debt financing costs | 0 | 0 | ||
Increase/(decrease) in warehouse facilities | 0 | 0 | ||
Increase/(decrease) in advance 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 | ||
Surrender of shares relating to stock vesting | (3) | (6) | ||
Repurchase of common stock | (114) | |||
Net cash attributable to financing activities | (117) | (6) | ||
Net increase 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 | 0 | 0 |
Issuer (Parent) | ||||
Operating Activities | ||||
Net income (loss) | 45 | (66) | (179) | (40) |
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: | ||||
Noncontrolling interest | (3) | 1 | (3) | 4 |
(Gain) loss from subsidiaries | (30) | (62) | ||
Share-based compensation | 13 | 8 | ||
Excess tax deficiency (benefit) from share-based compensation | 4 | (1) | ||
Net gain on mortgage loans held for sale | (595) | (481) | ||
Provision for reserves on advances and other receivables | 85 | 39 | ||
Mortgage loans originated and purchased, net of fees | (15,078) | (13,137) | ||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | (1,138) | (1,393) | ||
Sales proceeds and loan payments proceeds for mortgage loans held for sale and held for investment | 23,459 | 14,277 | ||
Other loss | 2 | 0 | ||
Depreciation and amortization | 50 | 40 | ||
Amortization (accretion) of premiums (discounts) | (7,275) | (17) | ||
Fair value changes in excess spread financing | (75) | (23) | ||
Fair value changes and amortization of mortgage servicing rights | 784 | 500 | ||
Fair value changes in mortgage servicing rights financing liability | (2) | 7 | ||
Changes in assets and liabilities: | ||||
Advances and other receivables, net | 519 | 477 | ||
Reverse mortgage interests, net | 294 | 8 | ||
Other assets | (683) | 69 | ||
Payables and accrued liabilities | (135) | (125) | ||
Net cash attributable to operating activities | 17 | 150 | ||
Investing Activities | ||||
Property and equipment additions, net of disposals | (38) | (23) | ||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (46) | (615) | ||
Purchase of reverse mortgage interests | (4,815) | |||
Sale of forward mortgage servicing rights | 27 | 41 | ||
Proceeds on sale of reverse mortgage servicing rights | 1 | |||
Business acquisitions, net | 0 | |||
Net cash attributable to investing activities | (56) | (5,412) | ||
Financing Activities | ||||
Transfers to restricted cash, net | 33 | (9) | ||
Issuance of common stock, net of issuance costs | 498 | |||
Debt financing costs | (10) | (10) | ||
Increase/(decrease) in warehouse facilities | 774 | 630 | ||
Increase/(decrease) in advance facilities | (29) | (291) | ||
Proceeds from HECM securitizations | (4) | 0 | ||
Repayment of HECM securitizations | 0 | 0 | ||
Issuance of excess spread financing | 263 | |||
Repayment of excess spread financing | (146) | (155) | ||
Increase (decrease) in participating interest financing in reverse mortgage interests | (480) | 4,629 | ||
Repayment of nonrecourse debt–legacy assets | 1 | (1) | ||
Repurchase of unsecured senior notes | (29) | |||
Excess tax (deficiency) benefit from share-based compensation | (4) | 1 | ||
Surrender of shares relating to stock vesting | 0 | 0 | ||
Repurchase of common stock | 0 | |||
Net cash attributable to financing activities | 106 | 5,555 | ||
Net increase in cash and cash equivalents | 67 | 293 | ||
Cash and cash equivalents at beginning of period | 597 | 280 | ||
Cash and cash equivalents at end of period | 664 | 573 | 664 | 573 |
Guarantor (Subsidiaries) | ||||
Operating Activities | ||||
Net income (loss) | 2 | 12 | 10 | 8 |
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: | ||||
Noncontrolling interest | 0 | 0 | 0 | 0 |
(Gain) loss from subsidiaries | 0 | 0 | ||
Share-based compensation | 0 | 0 | ||
Excess tax deficiency (benefit) from share-based compensation | 0 | 0 | ||
Net gain on mortgage loans held for sale | 0 | 0 | ||
Provision for reserves on advances and other receivables | 0 | 0 | ||
Mortgage loans originated and purchased, net of fees | 0 | 0 | ||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | 0 | 0 | ||
Sales proceeds and loan payments proceeds for mortgage loans held for sale and held for investment | 0 | 0 | ||
Other loss | 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 of mortgage servicing rights | 0 | 0 | ||
Fair value changes in mortgage servicing rights financing liability | 0 | 0 | ||
Changes in assets and liabilities: | ||||
Advances and other receivables, net | 0 | 0 | ||
Reverse mortgage interests, net | 0 | 0 | ||
Other assets | (10) | (6) | ||
Payables and accrued liabilities | 0 | 1 | ||
Net cash attributable to operating activities | 0 | 3 | ||
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 | |||
Sale of forward mortgage servicing rights | 0 | 0 | ||
Proceeds on sale of reverse mortgage servicing rights | 0 | |||
Business acquisitions, net | 0 | |||
Net cash attributable to investing activities | 0 | 0 | ||
Financing Activities | ||||
Transfers to restricted cash, net | 0 | 0 | ||
Issuance of common stock, net of issuance costs | 0 | |||
Debt financing costs | 0 | 0 | ||
Increase/(decrease) in warehouse facilities | 0 | 0 | ||
Increase/(decrease) in advance 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 | ||
Surrender of shares relating to stock vesting | 0 | 0 | ||
Repurchase of common stock | 0 | |||
Net cash attributable to financing activities | 0 | 0 | ||
Net increase in cash and cash equivalents | 0 | 3 | ||
Cash and cash equivalents at beginning of period | 1 | 0 | ||
Cash and cash equivalents at end of period | 1 | 3 | 1 | 3 |
Non-Guarantor (Subsidiaries) | ||||
Operating Activities | ||||
Net income (loss) | 7 | 3 | 20 | 54 |
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: | ||||
Noncontrolling interest | 0 | 0 | 0 | 0 |
(Gain) loss from subsidiaries | 0 | 0 | ||
Share-based compensation | 5 | 7 | ||
Excess tax deficiency (benefit) from share-based compensation | 0 | 0 | ||
Net gain on mortgage loans held for sale | (29) | (36) | ||
Provision for reserves on advances and other receivables | 0 | 0 | ||
Mortgage loans originated and purchased, net of fees | (767) | (833) | ||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | 0 | 0 | ||
Sales proceeds and loan payments proceeds for mortgage loans held for sale and held for investment | (6,416) | 772 | ||
Other loss | 0 | 1 | ||
Depreciation and amortization | 16 | 12 | ||
Amortization (accretion) of premiums (discounts) | 7,302 | (3) | ||
Fair value changes in excess spread financing | 0 | 0 | ||
Fair value changes and amortization of mortgage servicing rights | 0 | 0 | ||
Fair value changes in mortgage servicing rights financing liability | 0 | 0 | ||
Changes in assets and liabilities: | ||||
Advances and other receivables, net | 0 | 2 | ||
Reverse mortgage interests, net | (115) | (173) | ||
Other assets | 439 | (22) | ||
Payables and accrued liabilities | (4) | (3) | ||
Net cash attributable to operating activities | 451 | (222) | ||
Investing Activities | ||||
Property and equipment additions, net of disposals | (9) | (21) | ||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 | ||
Purchase of reverse mortgage interests | 0 | |||
Sale of forward mortgage servicing rights | 0 | 0 | ||
Proceeds on sale of reverse mortgage servicing rights | 0 | |||
Business acquisitions, net | (45) | |||
Net cash attributable to investing activities | (9) | (66) | ||
Financing Activities | ||||
Transfers to restricted cash, net | (33) | (183) | ||
Issuance of common stock, net of issuance costs | 0 | |||
Debt financing costs | 0 | 0 | ||
Increase/(decrease) in warehouse facilities | (56) | 100 | ||
Increase/(decrease) in advance facilities | (429) | 143 | ||
Proceeds from HECM securitizations | 728 | 342 | ||
Repayment of HECM securitizations | (624) | (103) | ||
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 | (13) | (9) | ||
Repurchase of unsecured senior notes | 0 | |||
Excess tax (deficiency) benefit from share-based compensation | 0 | 0 | ||
Surrender of shares relating to stock vesting | 0 | 0 | ||
Repurchase of common stock | 0 | |||
Net cash attributable to financing activities | (427) | 290 | ||
Net increase in cash and cash equivalents | 15 | 2 | ||
Cash and cash equivalents at beginning of period | 15 | 19 | ||
Cash and cash equivalents at end of period | $ 30 | $ 21 | $ 30 | $ 21 |
Transactions with Affiliates -
Transactions with Affiliates - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2013USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)special_purpose_entity | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Related Party Transaction [Line Items] | ||||||
Outstanding liability | $ 1,012 | $ 1,012 | $ 1,232 | |||
Mortgage servicing rights financing liability - fair value | 67 | 67 | 68.7 | |||
Purchase price paid reverse mortgage | $ 50 | |||||
Affiliates of Fortress | ||||||
Related Party Transaction [Line Items] | ||||||
Servicing fees and other performance incentive fees received | 3 | $ 2 | 8 | $ 7 | ||
Newcastle | ||||||
Related Party Transaction [Line Items] | ||||||
Servicing fees and other performance incentive fees received | 1 | 1 | $ 2 | 3 | ||
Servicing fee, percentage of unpaid principal balance | 0.50% | |||||
Principal amount outstanding on mortgage servicing rights | 597 | $ 597 | $ 658 | |||
New Residential | ||||||
Related Party Transaction [Line Items] | ||||||
Servicing fees and other performance incentive fees received | 0.5 | 0.1 | 0.7 | 0.2 | ||
Fees paid | 71 | 77 | 222 | 216 | ||
Nonrecourse variable funding notes | $ 2,100 | |||||
Number of wholly owned special purpose entities | special_purpose_entity | 2 | |||||
Revenue recognized from servicing agreements | 1 | 1 | $ 4 | 3 | ||
New Residential | Reverse Mortgages | ||||||
Related Party Transaction [Line Items] | ||||||
Principal amount outstanding on mortgage servicing rights | $ 83 | |||||
NIC Reverse Loan LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Participating reverse mortgage interest sold percentage | 70.00% | |||||
Loan Subservicing Agreement | NIC Reverse Loan LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction amount | 0.1 | 0.1 | 0.3 | 0.2 | ||
Loan Subservicing Agreement | OneMain Financial Holdings, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Recognized revenue from related party | $ 0.3 | $ 0.3 | $ 1 | $ 1 |