Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 06, 2017 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding (shares) | 97,804,133 | ||
Entity Public Float | $ 330,218,676 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 489 | $ 613 |
Restricted cash | 388 | 332 |
Mortgage servicing rights, $3,160 and $3,358 at fair value, respectively | 3,166 | 3,367 |
Advances and other receivables, net of reserves of $184 and $130, respectively | 1,749 | 2,412 |
Reverse mortgage interests, net of reserves of $131 and $53, respectively | 11,033 | 7,514 |
Mortgage loans held for sale, at fair value | 1,788 | 1,430 |
Mortgage loans held for investment, net of allowance for loan losses of $3 and $4, respectively | 151 | 174 |
Property and equipment, net of accumulated depreciation of $118 and $93, respectively | 136 | 143 |
Derivative financial instruments at fair value | 133 | 100 |
Other assets | 560 | 532 |
Total assets | 19,593 | 16,617 |
Liabilities and stockholders' equity | ||
Unsecured senior notes, net of unamortized debt issuance costs $17 and $23, respectively | 1,990 | 2,026 |
Advance facilities, net of unamortized debt issuance costs $0 and $6, respectively | 1,096 | 1,640 |
Warehouse facilities, net of unamortized debt issuance costs $2 and $3, respectively | 2,421 | 1,890 |
Payables and accrued liabilities | 1,470 | 1,296 |
MSR related liabilities - nonrecourse at fair value | 1,241 | 1,301 |
Mortgage servicing liabilities | 48 | 25 |
Derivative financial instruments at fair value | 13 | 6 |
Other nonrecourse debt, net of unamortized debt issuance costs $7 and $4, respectively | 9,631 | 6,666 |
Total liabilities | 17,910 | 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 | 1,122 | 1,105 |
Retained earnings | 701 | 682 |
Treasury shares at cost, 12,418 thousand and 1,826 thousand shares, respectively | (147) | (30) |
Total Nationstar stockholders' equity | 1,677 | 1,758 |
Noncontrolling interest | 6 | 9 |
Total stockholders' equity | 1,683 | 1,767 |
Total liabilities and stockholders' equity | $ 19,593 | $ 16,617 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Mortgage servicing rights at fair value | $ 3,160 | $ 3,358 |
Advances and other receivables, Reserves | 184 | 130 |
Reverse mortgage interests, Reserves | 131 | 53 |
Allowance for loan losses | 3 | 4 |
Accumulated depreciation | $ 118 | $ 93 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 300,000,000 | 300,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (shares) | 109,915,000 | 109,826,000 |
Treasury stock, shares (shares) | 12,418,000 | 1,826,000 |
Unsecured senior notes | ||
Unamortized debt issuance costs | $ 17 | $ 23 |
Advance facilities | ||
Unamortized debt issuance costs | 0 | 6 |
Warehouse facilities | ||
Unamortized debt issuance costs | 2 | 3 |
Other Nonrecourse Debt | ||
Unamortized debt issuance costs | $ 7 | $ 4 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Service related revenue, net | $ 1,118 | $ 1,305 | $ 1,376 |
Net gain on mortgage loans held for sale | 797 | 684 | 597 |
Total revenues | 1,915 | 1,989 | 1,973 |
Expenses: | |||
Salaries, wages and benefits | 813 | 763 | 643 |
General and administrative | 831 | 925 | 715 |
Total expenses | 1,644 | 1,688 | 1,358 |
Other income (expense): | |||
Interest income | 425 | 351 | 180 |
Interest expense | (665) | (605) | (516) |
Other income (expense) | (2) | 7 | 7 |
Total other income (expense), net | (242) | (247) | (329) |
Income (loss) before income tax expense (benefit) | 29 | 54 | 286 |
Less: Income tax expense | 13 | 11 | 65 |
Net income (loss) | 16 | 43 | 221 |
Less: Net income (loss) attributable to noncontrolling interests | (3) | 4 | 0 |
Net income (loss) attributable to Nationstar | 19 | 39 | 221 |
Other comprehensive income, net of tax: | |||
Change in value of designated cash flow hedge, net of tax of $0, $0 and ($1), respectively | 0 | 0 | (2) |
Total comprehensive income | $ 19 | $ 39 | $ 219 |
Net income per common share attributable to common stockholders: | |||
Basic (in dollars per share) | $ 0.19 | $ 0.38 | $ 2.47 |
Diluted (in dollars per share) | $ 0.19 | $ 0.37 | $ 2.45 |
Weighted average shares of common stock outstanding (in thousands): | |||
Basic (shares) | 99,765 | 103,248 | 89,521 |
Dilutive effect of stock awards (shares) | 880 | 532 | 499 |
Diluted (shares) | 100,645 | 103,780 | 90,020 |
Consolidated Statements of Ope5
Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Tax on cash flow hedges | $ 0 | $ 0 | $ (1,000) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Shares Amount | Accumulated Other Comprehensive Income | Total Nationstar Stockholders' Equity | Non-controlling Interests |
Balance, shares (shares) at Dec. 31, 2013 | 90,330 | |||||||
Balance at Dec. 31, 2013 | $ 989 | $ 1 | $ 566 | $ 422 | $ (7) | $ 2 | $ 984 | $ 5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued / (surrendered) under incentive compensation plan (in shares) | 724 | |||||||
Change in value of cash flow hedge, net of tax of $1 | (2) | (2) | (2) | |||||
Share-based compensation | 19 | 19 | 19 | |||||
Excess tax benefit from share-based compensation | 2 | 2 | 2 | |||||
Shares acquired by Nationstar related to incentive compensation awards | (5) | (5) | (5) | |||||
Net income | 221 | 221 | 221 | |||||
Balance at Dec. 31, 2014 | 1,224 | $ 1 | 587 | 643 | (12) | 0 | 1,219 | 5 |
Balance, shares (shares) at Dec. 31, 2014 | 91,054 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued / (surrendered) under incentive compensation plan (in shares) | (50) | |||||||
Change in value of cash flow hedge, net of tax of $1 | 0 | |||||||
Share-based compensation | 20 | 20 | 20 | |||||
Stock offering (in shares) | 17,500 | |||||||
Stock offering | 498 | 498 | 498 | |||||
Repurchase of common stock (in shares) | (504) | |||||||
Repurchase of common stock | (18) | (18) | (18) | |||||
Net income | 43 | 39 | 39 | 4 | ||||
Balance at Dec. 31, 2015 | 1,767 | $ 1 | 1,105 | 682 | (30) | 0 | 1,758 | 9 |
Balance, shares (shares) at Dec. 31, 2015 | 108,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued / (surrendered) under incentive compensation plan (in shares) | 86 | |||||||
Shares issued / (surrendered) under incentive compensation plan | (3) | (3) | (3) | |||||
Change in value of cash flow hedge, net of tax of $1 | 0 | |||||||
Share-based compensation | 21 | 21 | 21 | |||||
Excess tax deficiency from share-based compensation | $ (4) | (4) | (4) | |||||
Repurchase of common stock (in shares) | (11,400) | (10,589) | ||||||
Repurchase of common stock | $ (114) | (114) | (114) | |||||
Net income | 16 | 19 | (3) | |||||
Balance at Dec. 31, 2016 | $ 1,683 | $ 1 | $ 1,122 | $ 701 | $ (147) | $ 0 | $ 1,677 | $ 6 |
Balance, shares (shares) at Dec. 31, 2016 | 97,497 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Tax on cash flow hedges | $ 0 | $ 0 | $ 1,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities | |||
Net income attributable to Nationstar | $ 19 | $ 39 | $ 221 |
Reconciliation of net income to net cash attributable to operating activities: | |||
Noncontrolling interest | (3) | 4 | 0 |
Net gain on mortgage loans held for sale | (797) | (684) | (597) |
Provision for servicing reserves | 124 | 51 | 86 |
Fair value changes and amortization of mortgage servicing rights | 484 | 460 | 234 |
Fair value changes in mortgage loans held for sale | 15 | 1 | (12) |
Fair value changes in excess spread financing | 25 | 26 | 57 |
Fair value changes in mortgage servicing rights financing liability | (42) | 19 | (33) |
Amortization (accretion) of premiums (discounts) | 64 | (2) | 11 |
Depreciation and amortization | 63 | 53 | 40 |
Shared based compensation | 21 | 20 | 19 |
Loss on impairment of assets | 25 | 0 | 0 |
Other (gain) loss | 2 | (7) | 4 |
Repurchases of forward loan assets out of Ginnie Mae securitizations | (1,432) | (1,865) | (3,692) |
Mortgage loans originated and purchased, net of fees | (20,406) | (17,971) | (17,138) |
Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 22,031 | 20,044 | 22,136 |
Excess tax benefit (deficiency) from share based compensation | 4 | 0 | (2) |
Changes in assets and liabilities: | |||
Advances and other receivables, net | 566 | 472 | 256 |
Reverse mortgage interests, net | 246 | (285) | (1,020) |
Other assets | (59) | 103 | 530 |
Payables and accrued liabilities | 21 | (57) | (20) |
Net cash attributable to operating activities | 971 | 421 | 1,080 |
Investing Activities | |||
Property and equipment additions, net of disposals | (62) | (57) | (56) |
Purchase of forward mortgage servicing rights, net of liabilities incurred | (144) | (715) | (471) |
Purchase of reverse mortgage interests, net | (3,600) | (4,816) | 0 |
Proceeds on sale of forward and reverse mortgage servicing rights | 68 | 44 | 0 |
Proceeds on sale of servicer advances | 0 | 0 | 768 |
Proceeds from sale of building | 0 | 0 | 10 |
Business acquisitions, net | 0 | (46) | (18) |
Net cash attributable to investing activities | (3,738) | (5,590) | 233 |
Financing Activities | |||
Increase (decrease) in warehouse facilities | 529 | 321 | (860) |
Proceeds from HECM securitizations | 724 | 560 | 269 |
Repayment of HECM securitizations | (713) | (161) | (10) |
Increase in participating interest financing in reverse mortgage interests | 2,939 | 4,541 | 353 |
Decrease in advance facilities | (550) | (256) | (1,221) |
Repayment of excess spread financing | (198) | (210) | (184) |
Issuance of excess spread financing | 155 | 386 | 171 |
Proceeds from mortgage servicing rights financing | 0 | 0 | 53 |
Repayment of nonrecourse debt - legacy assets | (18) | (13) | (15) |
Repurchase of unsecured senior notes | (40) | (103) | (285) |
Repurchase of common stock | (114) | (7) | 0 |
Issuance of common stock, net of issuance costs | 0 | 498 | 0 |
Transfers (to) from restricted cash, net | (51) | (46) | 291 |
Excess tax (deficiency) benefit from share based compensation | (4) | 0 | 2 |
Surrender of shares relating to stock vesting | (3) | (6) | (5) |
Debt financing costs | (13) | (21) | (15) |
Net cash attributable to financing activities | 2,643 | 5,483 | (1,456) |
Net increase (decrease) in cash and cash equivalents | (124) | 314 | (143) |
Cash and cash equivalents at beginning of year | 613 | 299 | 442 |
Cash and cash equivalents at end of year | 489 | 613 | 299 |
Supplemental disclosures of cash activities | |||
Cash paid for interest expense | 694 | 431 | 515 |
Net cash paid for income taxes | $ 17 | $ 30 | $ 2 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | Nature of Business and Basis of Presentation Nature of Business Nationstar Mortgage Holdings Inc., a Delaware corporation, including its consolidated subsidiaries (collectively, "Nationstar" or the "Company"), earns fees through the delivery of servicing, origination and transaction based services primarily related to single-family residences throughout the United States. Basis of Presentation The consolidated financial statements of Nationstar have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). The significant accounting policies described below, together with the other notes that follow, are an integral part of the consolidated financial statements. Basis of Consolidation The consolidated financial statements include the accounts of Nationstar, its wholly-owned subsidiaries, and other entities in which the Company has a controlling financial interest, and those variable interest entities ("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. 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. Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates due to factors such as adverse changes in the economy, increases in interest rates, secondary market pricing for loans held for sale and derivatives, strength of underwriting and servicing practices, changes in prepayment assumptions, declines in home prices or discrete events adversely affecting specific borrowers, and such differences could be material. Reclassifications During 2016, the Company reclassified certain assets in its previously reported consolidated balance sheet as of December 31, 2015, to more closely align assets due from agencies and investors from other assets to advances and other receivables, net. In addition, the Company reclassified unamortized debt issuance costs 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 , 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 prospectively 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 performance targets affecting 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 to 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 above 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 clarifies 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. Effective December 31, 2016, the Company prospectively adopted 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). This update provides a definition of the term substantial doubt and requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). It also requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans and requires an express statement and other disclosures when substantial doubt is not alleviated. The adoption of ASU 2014-15 did not impact our assessment of the Company's ability to continue as a going concern or our disclosures in the consolidated financial statements. Recent Accounting Guidance Not Yet Adopted Accounting Standards Update No. 2014-09, 2016-08, 2016-10, 2016-12 and 2016-20, collectively implemented as FASB Accounting Standards Codification Topic 606 ("ASC 606") Revenue from Contracts with Customers, provides guidance for revenue recognition. This ASC’s core principle requires a company to 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 standard also clarifies the principal versus agent considerations, providing the evaluation must focus on whether the entity has control of the goods or services before they are transferred to the customer. The new standard permits the use of either the modified retrospective or full retrospective transition method. The Company's revenue is generated from loan servicing, loan originations, and services provided by Xome. Servicing revenue is comprised of servicing fees and other ancillary fees in connection with our servicing activities as well as fees earned under subservicing arrangements. Origination revenue is comprised of fee income earned at origination of a loan, interest income earned for the period the loans are held, and gain on sale on loans upon disposition of the loan. Xome's revenue is comprised of income earned from real estate exchange, real estate services and real estate technology and support. We have performed a preliminary review of the new guidance as compared to our current accounting policies, and we are currently evaluating all services rendered to our customers as well as underlying contracts to determine the impact of this standard to our revenue recognition process. The majority of services rendered by the Company in connection with originations and servicing are not within the scope of ASC 606. However, through our review, we have identified three service offerings within the scope of ASC 606, under Xome. Total revenue recorded in 2016 associated with these service offerings totaled $423 . Although revenue recognition may be impacted to some degree for these service offerings, we do not anticipate the impact to be materially different from the current revenue recognition processes. The Company expects to adopt the standard in the first quarter of 2018 with a cumulative effect adjustment to opening retained earnings, if such adjustment is deemed to be significant. 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 interim 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 with terms 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 interim periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. If the same lease obligations that are in existence as of December 31, 2016 were also in existence at the time of implementation of this standard, we would expect the additional assets and lease obligations to be added to the consolidated balance sheets upon implementation to approximate $118 . The Company is currently evaluating the impact of this new standard to its debt covenants and capitalization requirements. 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 of cash flows. ASU 2016-09 is effective for interim periods beginning after December 15, 2016. Upon adoption, the Company will recognize the incremental income tax windfall (excess tax compensation) or shortfall (excess book compensation) related to restricted share unit vesting in the statement of operations and comprehensive income, whereas these tax effects are presently recognized directly in shareholders' equity. For presentation purposes, the incremental tax windfall or shortfall associated with these events will be classified as a cash inflow from operating activity as compared with a financing activity, as required under current guidance. Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (ASU 2016-13), requires expected credit losses for financial instruments held at the reporting date to be measured 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 interim periods beginning after December 15, 2019. The Company is currently evaluating the potential impact of ASU 2016-13 on its consolidated financial statements. Accounting Standards Update No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15) and Accounting Standards Update No 2016-18 Statement of Cash Flows (Topic 230) Restricted Cash (ASU 2016-18) both relate to the Statement of Cash Flows (Topic 230) and are intended to provide specific guidance to reduce the diversity in practice. ASU 2016-15, addresses the following eight cash flow classification issues: (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of life insurance claims, (5) proceeds from the settlement of corporate owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transactions and (8) separately identifiable cash flows and application of the predominance principle. 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 classification of cash flows. ASU 2016-18 addresses the classification and presentation of changes in restricted cash on the statement of cash flows. This new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU 2016-18 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2016-18 on its consolidated financial statements. Accounting Standards Update No. 2016-17, Consolidation (Topic 810): Interests held through Related Parties that are under Common Control (ASU 2016-17), which alters how a decision maker needs to consider indirect interests in a variable interest entity held through an entity under common control and simplifies the analysis to require consideration of only an entity’s proportionate indirect interest in a VIE held through a common control party. ASU 2016-17 amends ASU 2015-02, Consolidations (Topic 810): Amendments to the Consolidation Analysis , which was not effective for the Company in the current fiscal year. ASU 2016-17 will be effective for interim periods beginning after December 15, 2017. The Company is currently evaluating the potential impact of ASU 2016-17 on our consolidated financial statements. Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the standard suggests that the set of transferred assets and activities is not a business. The guidance requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in ASC 606. The ASU is effective for interim periods beginning after December 15, 2017. The Company is currently evaluating the potential impact of ASU 2017-01 on our consolidated financial statements. Accounting Standards Update No. 2017-04, Simplifying the Test for Goodwill Impairment , simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in today’s two-step impairment test under Accounting Standards Codification (ASC) 350. The standard has tiered effective dates, starting in 2020 for calendar-year public business entities that meet the definition of an SEC filer. Early adoption is permitted for annual and interim goodwill impairment testing dates after 1 January 2017. The Company is currently evaluating the potential impact of ASU 2017-04 on our consolidated financial statements. The amendments is effective for the Company for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The amendments should be adopted prospectively. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies The following summarizes the significant accounting policies of Nationstar applied in the preparation of the accompanying consolidated financial statements. Cash and Cash Equivalents Cash and cash equivalents include unrestricted cash on hand and other interest-bearing investments with original maturity dates of 90 days or less. Restricted Cash With respect to our Originations segment, restricted cash includes (i) principal received from borrowers on originated loans pledged to a warehouse facility and (ii) guarantee fees collected on behalf and payable to either Fannie Mae or Freddie Mac on a monthly basis. With respect to our Servicing segment, restricted cash includes recoveries received from borrowers or investors on advances pledged to advance facilities and to advance facilities structured as special purposes entities that require certain level of restricted cash. Advances and Other Receivables, Net The Company advances funds to or on behalf of the investor when the borrower fails to meet contractual payments (e.g., principal, interest, property taxes, insurance) in accordance with terms of our servicing agreements. The Company also advances funds to maintain and market underlying loan collateral through foreclosure and ultimate liquidation on behalf of the investors. Advances are recovered from borrowers for performing loans and from the investors for non-performing loans. Nationstar may also acquire servicer advances in connection with the acquisition of MSR. These advances are recorded at their relative fair value amounts upon acquisition. The Company records receivables upon determining that collection of amounts due from investors, mortgage insurers, or prior servicers is probable. Reserves related to recoverability of advances and other receivables are discussed below in Reserves for Forward Servicing Activity. Mortgage Loans Held for Sale Nationstar originates prime residential mortgage loans with the intention of selling such loans on a servicing-retained basis in the secondary market. As these loans are originated with intent to sell, the loans are classified as held for sale and the Company has elected to measure these loans held for sale at fair value. Nationstar estimates fair value of mortgage loans held for sale by evaluating a variety of market indicators, including recent trades and outstanding commitments, calculated on an aggregate basis. In connection with Nationstar’s election to measure originated mortgage loans held for sale at fair value, Nationstar records the loan originations fees, net of direct loan originations costs associated with these loans when earned. Origination fees, the net gain on sale of loans, and fair value adjustments are recorded in net gain on sale of mortgage loans held for sale in the consolidated statements of operations and comprehensive income. The Company may repurchase loans that were previously transferred to Ginnie Mae if that loan meets certain criteria, including being delinquent greater than 90 days. Nationstar has the intention of selling such loans and has classified as loans held for sale and has elected to measure these repurchased loans at fair value. Mortgage Loans Held for Investment, Net Mortgage loans held for investment primarily consist of nonconforming or subprime mortgage loans that were transferred in 2009 from mortgage loans held for sale at fair value. The difference between the undiscounted cash flows expected and the investment in the loan is recognized as interest income on a level-yield method over the life of the loan. Increases in expected cash flows subsequent to the transfer are recognized prospectively through adjustment of the yield on the loans over the remaining life. Decreases in expected cash flows subsequent to transfer are recognized as a valuation allowance. A valuation allowance is established by recording a provision for loan losses in the consolidated statements of operations and comprehensive income when management believes a loss has occurred on a loan held for investment. When management determines that a loan held for investment is partially or fully uncollectible, the estimated loss is charged against the allowance for loan losses. Recoveries on losses previously charged to the allowance are credited to the allowance at the time the recovery is collected. Reverse Mortgage Interests, Net Reverse mortgage interests are comprised of Nationstar’s interest in reverse mortgage loans (either securitized or unsecuritized) as well as related claims receivables and REO. Nationstar primarily acquires and services interests in reverse mortgage loans insured by the Federal Housing Administration ("FHA") known as Home Equity Conversion Mortgages ("HECMs"). HECMs provide seniors aged 62 and older with a loan secured by their home and can be taken as a lump sum, line of credit, or scheduled payments. HECM loan balances grow over the loan term through borrower draws of scheduled payments or line of credit draws as well as through the accrual of interest and FHA mortgage insurance premiums. In accordance with FHA guidelines, HECMs are designed to repay through foreclosure and subsequent liquidation of loan collateral after the loan becomes due and payable. Any shortfalls experienced by the servicer of the HECM through the foreclosure and liquidation process can be claimed to FHA in accordance with applicable guidelines. Nationstar records acquired reverse mortgage interests assets and related obligations assumed at relative fair value on the acquisition date. Any premium or discount associated with the recording of the assets is accreted or amortized into interest income, respectively as the underlying HECMs are liquidated. As the HECM loan moves through the foreclosure and claims process, the Company classifies reverse mortgage interests as REO and HECM related receivables, respectively. Borrower draws, mortgage insurance premiums funded by Nationstar, and the accrual of interest are capitalized and recorded as reverse mortgage interests on the Company's consolidated balance sheets. On the consolidated statements of operations and comprehensive income, interest income is accrued monthly based upon the borrower interest rates. Nationstar includes the cash outflow from funding these amounts as operating activities in the consolidated statements of cash flow as a component of reverse mortgage interests. Nationstar is an authorized Ginnie Mae HECM mortgage-backed security (“HMBS”) program issuer and servicer. In accordance with Ginnie Mae HMBS program guidelines, borrower draws of scheduled payments or line of credit draws, interest accruals, and mortgage insurance premium accruals are eligible for HMBS participation securitizations as each of these items increases underlying HECM loan balances. Nationstar pools and securitizes such eligible items into Ginnie Mae HMBS as issuer and servicer. In accordance with the HMBS program, issuers are responsible for purchasing HECM loans out of the HMBS pool when the outstanding principal balance of the related HECM loan is equal or greater than 98% of the maximum claim amount at which point the HECM loans are no longer eligible to remain in the HMBS pool. Upon purchase from the HMBS pool, the Company will assign active HECM loans to FHA or service inactive HECM loans through foreclosure and liquidation. Based upon the structure of the Ginnie Mae HMBS program, the Company has determined that the securitzations of the HECM loans into HMBS pools do not meet all requirements for sale accounting. Accordingly, these transactions are accounted for as secured borrowings. If the Company has repurchased an inactive HECM loan that cannot be assigned to FHA, the Company may pool and securitize these loans into a private HECM securitization. These securitizations are also recorded as secured borrowings on the consolidated balance sheets. Interest expense on the participating interest financing is accrued monthly based upon the underlying HMBS rates and is recorded to interest expense in the consolidated statements of operations and comprehensive income. Both the acquisition and assumption of HECM loans and related Ginnie Mae HMBS debt are presented as investing and financing activities, respectively, in the consolidated statements of cash flows. Subsequent proceeds received from securitizations and subsequent repayments on the securitized debt are presented as financing activities in the consolidated statements of cash flows. Reserves related to recoverability of reverse mortgage interests are discussed below in Reserves for Reverse Mortgage Interests. Mortgage Servicing Rights (MSRs) Nationstar recognizes as assets the rights to service mortgage loans for others, or MSRs, whether acquired or as a result of the sale of loans Nationstar originates with servicing retained. Nationstar initially records all MSRs at relative fair value. MSRs related to reverse mortgages are subsequently recorded at the lower of amortized cost or fair value. The Company has elected fair value option for forward MSRs. For MSRs initially recorded and subsequently measured at fair value, the fair value of the MSRs is based upon the present value of the expected future net cash flows related to servicing the underlying loans. Nationstar determines the fair value of the MSRs by the use of a discounted cash flow model which incorporates prepayment speeds, delinquencies, discount rate, ancillary revenues and other assumptions (including costs to service) that management believes are consistent with the assumptions other similar market participants use in valuing the MSRs. The credit quality and stated interest rates of the forward loans underlying the MSRs affects the assumptions used in the cash flow models. Nationstar obtains third-party valuations quarterly to assess the reasonableness of the fair value calculated by the cash flow model. Nationstar receives a base servicing fee ranging from 0.21% to 0.50% annually on the outstanding principal balances of the loans, which is collected from investors. Additionally, Nationstar owns servicing rights for certain reverse mortgage loans. For this class of servicing rights, Nationstar initially records a MSR or MSL on the acquisition date based on the fair value of the future cash flows associated with the pool and whether adequate compensation is to be received for servicing. Nationstar applies the amortized cost method for subsequent measurement of the loan pools with the capitalized cost of the MSRs amortized in proportion and over the period of the estimated net future servicing income and the MSL amortized in the period in which related loses are incurred. The expected period of the estimated net servicing income is based, in part, on the expected prepayment period of the underlying mortgages. Reverse MSRs and MSLs are stratified and evaluated each reporting period for impairment or increased obligation, as applicable, based on predominant risk characteristics of the underlying serviced loans. These stratification characteristics include loan type (fixed or adjustable rate), term and interest rate. Impairment of the MSR or additional obligation associated with the MSL are recorded through a valuation allowance, unless considered other-than-temporary, and are recognized as a charge to servicing revenue. Amounts amortized or accreted are recognized as an adjustment to service related revenue, net, along with monthly servicing fees received, generally stated at a fixed rate per loan. MSR Related Liabilities - Nonrecourse Excess Spread Financing In conjunction with Nationstar's acquisition of certain mortgage servicing rights on various pools of residential mortgage loans (the "Portfolios"), Nationstar has entered into sale and assignment agreements related to its right to servicing fees under which, Nationstar sells to third parties the right to receive a portion of the excess cash flow generated from the Portfolios after receipt of a fixed base servicing fee per loan. The sale of these rights is accounted for as secured borrowings, with the total proceeds received being recorded as a component of MSR related liabilities - nonrecourse at fair value in the consolidated balance sheets. Nationstar determines the effective interest rate on these liabilities and allocates total repayments between interest expense and the outstanding liability. Nationstar has elected to measure the outstanding financings related to the excess spread financing agreements at fair value with all changes in fair value recorded as a charge or credit to service related revenue, net in the consolidated statements of operations and comprehensive income. The fair value on excess spread financing is based on the present value of future expected discounted cash flows with the discount rate approximating current market value. Mortgage Servicing Rights Financing From time to time, Nationstar will enter into certain transactions with third parties to sell certain mortgage servicing rights and servicer advances under specified terms. Nationstar evaluates these transactions to determine if they are sales or secured borrowings. When these transfers qualify for sale treatment, Nationstar derecognizes the transferred assets on its consolidated balance sheets. Nationstar has determined that for a portion of these transactions, the related mortgage servicing rights sales are contingent on the receipt of consents from various third parties. Until these required consents are obtained, for accounting purposes, legal ownership of the mortgage servicing rights continues to reside with the Company. Nationstar continues to account for the mortgage servicing rights on its consolidated balance sheets. In addition, Nationstar records a mortgage servicing rights financing liability associated with this financing transaction. Counterparty payments related to this financing arrangement are recorded as an adjustment to the Company's service related revenues. Nationstar has elected to measure the mortgage servicing rights financing liabilities at fair value with all changes in fair value recorded as a charge or credit to service related revenue, net, in the consolidated statements of operations and comprehensive income. The fair value on mortgage servicing right financings is based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. Participating Interest Financing Nationstar periodically securitizes participating interests in HECM loans (mainly borrower draws, mortgage insurance premium and interest) into HECM mortgage backed securities ("HMBS") which are sold to third-party security holders and guaranteed by Ginnie Mae. The securitization transactions are accounted for as secured borrowings with the obligations to the HMBS presented as participating interest financing included within other nonrecourse debt in the Company's consolidated balance sheets. Issuance or acquisition of HMBS is presented as a financing activity in the consolidated statements of cash flow. Interest is accrued monthly based upon the stated HMBS rates to interest expense in the consolidated statements of operations and comprehensive income. HMBS issuance premiums or discounts are deferred as a component of the participating interest financing and amortized or accreted, respectively, to interest expense over the life of the HMBS on an effective interest method. Revenues Nationstar recognizes revenue from the services provided when the revenue is realized or realizable and earned, which is generally when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. Revenues From Forward Servicing Activities Service related revenues primarily include contractually specified servicing fees, late charges, prepayment penalties and other ancillary revenues. The servicing fees are based on a contractual percentage of the outstanding principal balance and recognized as revenue as earned, which is generally upon collection of the payments from the borrower. Corresponding loan servicing costs are charged to expense as incurred. Nationstar recognizes ancillary revenues as they are earned, which is generally upon collection of the payments from the borrower. In addition, Nationstar receives various fees in the course of providing servicing on its various portfolios. These fees include modification fees for modifications performed outside of government programs, modification fees for modifications pursuant to various government programs, and incentive fees for servicing performance on specific government-sponsored entities ("GSE") portfolios. Fees recorded on modifications of mortgage loans held for investment performed outside of government programs are deferred and recognized as an adjustment to the loans held for investment. These fees are accreted into interest income as an adjustment to the loan yield over the life of the loan. Fees recorded on modifications of mortgage loans serviced by Nationstar for others are recognized on collection and are recorded as a component of service related revenues. Fees recorded on modifications pursuant to various government programs are recognized based upon completion of all necessary steps by Nationstar and the minimum loan performance time frame to establish eligibility for the fee. Revenue earned on modifications pursuant to various government programs is included as a component of service related revenues. Incentive fees for servicing performance on specific GSE portfolios are recognized as various incentive standards are achieved and are recorded as a component of service related revenues. Nationstar also acts as a subservicer for certain parties that own the underlying servicing rights and receives subservicing fees, which are typically a stated monthly fee per loan that varies based on types of loans. Fees related to the subserviced portfolio are accrued in the period the services are performed. Revenues From Origination Activities Loan origination and other loan fees generally represent flat, per-loan fee amounts and are recognized as revenue, net of loan origination costs, at the time the loans are funded. Revenues From Reverse Mortgage Servicing and Reverse Mortgage Interests Nationstar performs servicing of reverse loans, similar to our forward servicing business, and receives servicing fees from investors, which is recorded in service related revenues. For reverse mortgage interests, where the Company records entire participating interest in HECM loans, the Company accrues interest in accordance with FHA guidelines and records interest income on the consolidated statements of operations and comprehensive income. See also the “Recent Accounting Guidance Not Yet Adopted” discussion in Note 1, Nature of Business and Basis of Presentation for new accounting guidance related to revenue from contracts with customers. Net Gain on Mortgage Loans Held for Sale Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been legally isolated from Nationstar, (ii) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) Nationstar does not maintain effective control over the transferred assets through either (a) an agreement that entitles and obligates Nationstar to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the holder to return specific assets. Loan securitizations structured as sales, as well as whole loan sales and the resulting gains on such sales, net of any accrual for recourse obligations, are reported in operating results during the period in which the securitization closes or the sale occurs. Reserves for Origination Activity Nationstar provides for reserves, included within payables and accrued liabilities, in connection with loan origination activities. Reserves on loan origination activities primarily include reserves for the repurchase of loans from government sponsored entities, Ginnie Mae, and third-party investors primarily due to delinquency or foreclosure and are initially recorded upon sale of the loan to a third party with subsequent reserves recorded based on repurchase demands. The provision for reserves associated with loan origination activities is an offset component of net gain on mortgage loans held for sale. Nationstar utilizes internal models to estimate reserves for loan origination activities based upon our expectation of future defaults and the historical defect rate for government insured loans and is based upon judgments and assumptions which can be influenced by many factors and may change over the life of the underlying loans, including: (i) historical loss rate, (ii) secondary market pricing of loans; (iii) home prices and the levels of home equity; (iv) the quality of our underwriting procedures; (v) borrower delinquency and default patterns; and (vi) other Nationstar and macro-economic factors. On a quarterly basis, management corroborates these assumptions using third-party data, where applicable. Reserves for Forward Servicing Activity In connection with forward loan servicing activities, Nationstar records reserves primarily for the recoverability of advances, interest claims, and mortgage insurance claims as well as GSEs assessed compensatory fees. Reserves for advances and other receivables associated with loans in the MSR portfolio are considered within the MSR valuation, and the provision expense for such advances is recorded in the mark-to-market adjustment in service related revenue. Such valuation gives consideration to the expected cash outflows and inflows for advances and other receivables in accordance with the fair value framework. Reserves for advances and other receivables on loans transferred out of the MSR portfolio are established within advances and other receivables, net. As loans serviced transfer out of the MSR portfolio, any negative MSR value associated with the loans transfered is reclassified from the MSR to the reserve within advances and other receivables, net, to the extent such reserves continue to be required for balances remaining on the consolidated balance sheets. Management evaluates reserves for sufficiency each reporting period and any additional reserve requirements are recorded as a provision in general and administrative expense, as needed. Nationstar evaluates reserve sufficiency for forward loan servicing activities through consideration of both historical and expected recovery rates on claims filed with government agencies, GSEs, vendors, prior servicers and other counterparties. Recovery of advances and other receivables is subject to significant judgment and estimates based on the Company's assessment of its compliance with servicing guidelines, its ability to produce the necessary documentation to support claims, its ability to support amounts due from prior servicers and to effectively negotiate settlements, as needed. Reserves for Reverse Mortgage Interests Nationstar records an allowance for reserves related to reverse mortgage interests based on unrecoverable costs and estimates of probable loss exposures. The Company estimates reserve requirements upon the realization of a triggering event indicating a probable loss exposure. Internal models are utilized to estimate loss exposures associated with the Company's ability to meet servicing guidelines set forth by regulatory agencies and GSEs. Key assumptions included in the model include but are not limited to interest rates, borrower characteristics, foreclosure timelines, value of underlying collateral, future carrying and foreclosure costs, and other macro-economic factors. If the calculated reserve requirements exceed the recorded allowance for reserves, a provision is recorded to general and administrative expense, as needed. Reserve requirements are subject to significant judgment and estimates based on the Company's assessment of its compliance with servicing guidelines, its ability to produce the necessary documentation to support claims, its ability to support claims filed and its ability to effectively negotiate settlement of amounts due from GSEs, mortgage insurers, or prior servicers, as needed. Amounts Due from Prior Servicers The Company services its loan portfolios under guidelines set forth by regulatory agencies and GSEs. Losses can be incurred if the underlying loans are not serviced in accordance with established guidelines, resulting in the assessment of fines and the inability to recover interest and costs incurred. Prior servicers associated with the underlying loans may have contributed to the losses if their prior servicing practices did not allow for timely compliance with servicing guidelines set forth. To mitigate the risk of loss to the Company, indemnification provisions are incorporated into the executed acquisition and servicing agreements that allow for the recovery of realized losses which can be attributed to prior servicers. As part of our servicing operations, we estimate and record an asset for probable recoveries from prior servicers for their respective portion of these losses. As of December 31, 2016, such amounts are recorded in advances and other receivables of $94 for the Company's forward loan portfolio and within reverse mortgage interests of $38 for the Company's reverse loan portfolio. Estimated recoveries from prior servicers are based on management's best estimate of allocated losses among servicing parties, terms of the indemnification provisions, prior recovery experience, current negotiations and the servicer's ability to pay requested amounts. The Company updates its estimate of recovery each period based on the facts and circumstances known at the time. Recovery of amounts due from prior servicers is subject to significant judgment based on the Company's assessment of the prior servicer's responsibility for losses incurred, its ability to provide related support for such amounts and its ability to effectively negotiate settlement of amounts due from prior servicers if needed. Property and Equipment, Net Property and equipment, net is comprised of land, building, furniture, fixtures, leasehold improvements, computer software, and computer hardware. These assets are stated at cost less accumulated depreciation. Repairs and maintenance are expensed as incurred which is included in general and administrative expenses in the consolidated statements of operations and comprehensive income. Depreciation, which includes depreciation and amortization on capital leases, is recorded using the straight-line method over the estimated useful lives of the related assets. Cost and accumulated depreciation applicable to assets retired or sold are eliminated from the accounts, and any resulting gains or losses are recognized at such time through a charge or credit to general and administrative expenses. Costs to internally develop computer software are capitalized during the development stage and include external direct costs of materials and services as well as employee costs related to time spent on the project. We periodically review our property and equipment when events or changes in circumstances indicates that the carrying amount of our property and equipment might not be recoverable under the recoverability test, whereby the expected future undiscounted cash flows from the assets are estimated and compared with the carrying amount of the assets. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the assets, an impairment loss is recorded to general and administrative expense, as needed. The impairment loss is measured by comparing the fair value of the assets with their carrying amounts. Fair value is determined based on discounted cash flow. Nationstar evaluates all leases at inception to determine if they meet the criteria for a capital lease. A capital lease is recorded as an acquisition of property or equipment at an amount equal to the present value of minimum lease payments at the date of inception. Assets acquired under a capital lease are depreciated on a straight-line basis in accordance with the Company's normal depreciation policy over the lease term and are included in property and equipment, net, on the balance sheet. A corresponding liability is recorded representing an obligation to make lease payments which is included in payables and accrued liabilities in the consolidated balance sheet. Lease payments are allocated between interest expense and reduction of obligation. Leases that do not meet capital lease criteria are accounted for as operating leases. Rental expense on operating leases is recognized on a straight-line basis over the lease term which is include in general and administrative expenses in the consolidated statements of operations and comprehensive income. Leasehold improvements are amortized over the shorter of the lease terms of the respective leases or the estimated useful lives of the related assets. Variable Interest Entities In the normal course of business, Nationstar enters into various types of on- and off-balance sheet transactions with special purpose entities ("SPEs"), which primarily 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. The Company evaluates its interests in each SPE for classification as a Variable Interest Entity ("VIE"). When an SPE meets the definition of a VIE and the Company determines that Nationstar is the primary beneficiary, the Company includes the SPE in its consolidated financial statements. Nationstar consolidates SPEs connected with both forward and reverse mortgage activity. See Note 12, Securitization Financings for more information on Nationstar SPEs and Note 10, Indebtedness for certain debt activity connected with SPEs. Securitizations and Asset-Backed Financing Arrangements Nationstar or its subsidiaries have been a transferor in connection with a number of securitizations and asset-backed financing arrangements. The Company has continuing involvement with the financial assets of the securitizations and the asset-backed financing arrangements. The Company has aggregated these transactions into two groups: (1) securitizations of residential mortgage loans accounted for as sales and (2) financings of advances on loans serviced for others accounted for as secured borrowings. Securitizations Treated as Sales Nationstar’s continuing involvement typically includes acting as servicer for the mortgage loans held by the trust and holding beneficial interests in the trust. Nationstar’s responsibilities as servicer include, among other things, collecting monthly payments, maintaining escrow accounts, providing periodic reports and managing insurance in exchange for a contractually specified servicing fee. The beneficial interests held consist of both subordinate and residual securities that were retained at the time of securitization. These securitizations generally do not result in consolidation of the VIE as the beneficial interests that are held in the unconsolidated securitization trusts have no value and no potential for significant cash flows in the future. In addition, at December 31, 2016, the Company had no other significant assets in its consolidated financial statements related to these trusts. The Company has no obligation to provide financial support to unconsolidated securitization trusts and has provided no such support. The creditors of the trusts can look only to the assets of the trusts themselves for satisfaction of the debt issued by the trusts and have no recourse against the assets of Nationstar. The gener |
Mortgage Servicing Rights (MSR)
Mortgage Servicing Rights (MSR) and Related Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights (MSR) and Related Liabilities | Mortgage Servicing Rights and Related Liabilities The following sets forth the carrying value of Nationstar's MSRs and the related liabilities. MSRs and Related Liabilities December 31, 2016 December 31, 2015 Forward MSRs - fair value $ 3,160 $ 3,358 Reverse MSRs - amortized cost 6 9 Mortgage servicing rights $ 3,166 $ 3,367 Mortgage servicing liabilities - amortized cost $ 48 $ 25 Excess spread financing - fair value $ 1,214 $ 1,232 Mortgage servicing rights financing liability - fair value 27 69 MSR related liabilities (nonrecourse) $ 1,241 $ 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 retained servicing associated with the sales and securitizations of loans originated. Forward MSRs are comprised of rights related to both agency and non-agency loans. The activity of MSRs carried at fair value is as follows for the dates indicated. Year Ended December 31, 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 208 221 Purchases of servicing assets 157 711 Dispositions: Sales of servicing assets (67 ) (46 ) Changes in fair value: Due to changes in model inputs (79 ) (58 ) Other changes in fair value (417 ) (420 ) Fair value at the end of the period $ 3,160 $ 3,358 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. During 2016, the Company sold MSRs relating to the UPB of $11,546 and was retained as the subservicer for UPB of $10,494 , and in 2015 the Company sold MSRs relating to the UPB of $4,705 and was retained as the subservicer for UPB of $4,647 . 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 UPBs for Nationstar's forward owned MSRs that are carried at fair value. December 31, 2016 December 31, 2015 UPB Fair Value UPB Fair Value Credit sensitive $ 198,935 $ 1,818 $ 224,334 $ 2,017 Interest sensitive 113,141 1,342 121,342 1,341 Total $ 312,076 $ 3,160 $ 345,676 $ 3,358 Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated. Credit Sensitive December 31, 2016 December 31, 2015 Discount rate 11.6 % 11.6 % Total prepayment speeds 15.4 % 16.5 % Expected weighted-average life 6.0 years 5.9 years Interest Sensitive Discount rate 9.3 % 9.1 % Total prepayment speeds 10.7 % 12.4 % Expected weighted-average life 6.8 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 December 31, 2016 and 2015 . Discount Rate Total Prepayment Speeds 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change December 31, 2016 Mortgage servicing rights $ (114 ) $ (221 ) $ (117 ) $ (224 ) 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. Reverse Mortgage Servicing Rights and Liabilities - Amortized Cost Nationstar owns the right to service certain HECM reverse mortgage loans with an unpaid principal balance of $38,940 and $29,855 as of December 31, 2016 and 2015 , respectively. An MSR asset or MSL is established upon acquisition at relative fair value, as applicable, based on the proceeds paid or received in the acquisition transaction. In subsequent periods, the MSR or MSL is accounted for under the amortized cost method. Each quarter, the Company amortizes or accretes the MSR and MSL, respectively, to service related revenue, net, as the respective portfolios run-off. The MSR and MSL are assessed for impairment or increased obligation, respectively, each reporting period by comparing amounts recorded to computed fair value, using a variety of assumptions. The primary assumptions used to compute fair value of reverse mortgage servicing consist of discount rates, prepayment speeds, borrower life expectancy, loss severity and expectancy rates, foreclosure timelines, and expected changes in interest rates. The MSR and MSL are stratified based on predominant risk characteristics of the underlying serviced loans. Impairment, or increased obligation, represents the excess of amortized cost of an individual stratum over its estimated fair value and is recognized through a decrease in the servicing revenue. At December 31, 2016 and 2015 , no impairment was identified. The following table sets forth the amortized carrying value and activity of reverse MSRs for the years ended December 31, 2016 and 2015 . Year Ended December 31, 2016 2015 Assets Liabilities Assets Liabilities Reverse MSRs and Liabilities - Amortized Cost Balance at the beginning of the period $ 9 $ 25 $ 12 $ 65 Additions: Purchase of servicing rights/assumptions of obligations — 37 — — Deductions: Amortization/accretion (3 ) (14 ) (3 ) (40 ) Balance at end of the period $ 6 $ 48 $ 9 $ 25 Fair value at end of period $ 15 $ 26 $ 29 $ 9 For the years ended December 31, 2016 and 2015, the Company accreted $14 and $40 , respectively, of the MSL. The Company executed an asset purchase agreement in December 2016 with a large financial institution, acquiring the servicing rights related to a $9,305 UPB reverse loan portfolio of HECM loans owned by GSE. In connection with the acquisition, the Company recorded a $37 MSL reflecting the fair value associated with this reverse servicing portfolio on the date of acquisition. Excess Spread Financing at Fair Value In order to finance the acquisition of certain forward MSRs on various pools Portfolios, Nationstar has entered into sale and assignment agreements with a third-party associated with funds and accounts under management of BlackRock Financial Management Inc., and with certain affiliated entities formed by New Residential Investment Corp. ("New Residential"), a subsidiary of Fortress Investment Group LLC ("Fortress"). Amounts financed in 2016, 2015 and 2014 totaled $155 , $386 and $171 , respectively, and amounts financed in 2015 and 2014 represented transactions with affiliates, respectively (see Note 22. 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 the above parties. 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 Life (Years) Discount Rate Recapture Rate December 31, 2016 Low 6.1 % 4.1 8.5 % 6.7 % High 21.2 % 8.5 14.1 % 29.8 % Weighted-average 13.9 % 6.3 10.8 % 19.0 % December 31, 2015 Low 6.9 % 4.2 8.5 % 6.8 % High 20.0 % 7.8 14.1 % 30.0 % Weighted-average 15.4 % 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 December 31, 2016 Excess spread financing $ 49 $ 101 $ 41 $ 85 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 a joint venture capitalized by New Residential and certain unaffiliated third-party investors. Nationstar continues to be the named servicer and, for accounting purposes, ownership of the mortgage servicing rights continues to reside with Nationstar. Accordingly, Nationstar records the MSRs and a MSR financing liability associated with this transaction in its consolidated balance sheets. See Note 22, Transactions with Affiliates for additional information. The following table sets forth the weighted average assumptions used in the valuation of mortgage servicing rights financing liability. December 31, 2016 December 31, 2015 Advance financing rates 3.2 % 3.0 % Annual advance recovery rates 23.9 % 20.9 % The following table sets forth the items comprising of revenue associated with servicing loan portfolios. Year Ended December 31, Servicing Segment Revenue 2016 2015 2014 Contractually specified servicing fees including subservicing fees $ 1,045 $ 1,117 $ 1,064 Other service-related income 279 233 229 Incentive and modification income 113 107 126 Late fees 82 70 65 Reverse servicing fees 57 88 68 Mark-to-market (1) (211 ) (112 ) 74 Counter party revenue share (2) (298 ) (301 ) (320 ) Amortization, net of accretion (3) (314 ) (320 ) (218 ) Total servicing revenues $ 753 $ 882 $ 1,088 (1) The amount of mark-to-market revenue reflected is net of $115 of cumulative incurred losses related to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio and these incurred losses have been transferred to reserves on advances and other receivables during 2016. (2) Counter party revenue share represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements and the payments made associated with MSRs financing arrangements. (3) Accretion for the years ended December 31, 2016 , 2015 and 2014 are $200 , $172 and $144 , respectively. |
Advances and Other Receivables,
Advances and Other Receivables, Net | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Advances and Other Receivables, Net | Advances and Other Receivables, Net December 31, 2016 December 31, 2015 Servicing advances $ 1,614 $ 2,254 Receivables from agencies, investors and prior services 319 288 Reserves (184 ) (130 ) Total advances and other receivables, net $ 1,749 $ 2,412 Nationstar as loan servicer is contractually responsible to advance funds on behalf of the borrower and investor primarily for principle and interest, property taxes and hazard insurance, and foreclosure costs. Advances are primarily recovered through reimbursement from the investor, proceeds from sale of loan collateral, or mortgage insurance claims. 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, investors and prior servicers related to claims receivables. These amounts, net of reserves of $100 , 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. Nationstar has a view of reserves whereby losses related to advances and other receivables on loans included in the MSR are a component of the MSR fair value measurement and are adjusted each period through the mark-to-market adjustment which is a component of service related revenue. As loans serviced transfer out of the MSR portfolio, any negative MSR value associated with the loans transfered is reclassified from the MSR to the reserve within advances and other receivables, net, to the extent such reserves continue to be required for balances remaining on the consolidated balance sheets. Management evaluates reserves for sufficiency each reporting period and any additional reserve requirements are recorded as a provision in general and administrative expense, as needed. During the year ended December 31, 2016 , the Company increased reserves by $91 through a reclassification from MSR for negative values associated with loans transferring out of the MSR as of December 31, 2015 . Additional reclassifications of $115 were made for loans transferring out of the MSR during 2016. Write-offs of $152 were recorded to reserves during the year ended December 31, 2016 that were previously identified as not recoverable. There was no provision recorded to general and administrative expense as of December 31, 2016. Nationstar accretes purchase discounts related to specific acquired advances into interest income as the related servicer advances are recovered. During the years ended December 31, 2016, 2015 and 2014 the Company accreted $1 , $2 and $12 , respectively, of the purchase discounts from recovered servicer advances. |
Reverse Mortgage Interests, Net
Reverse Mortgage Interests, Net | 12 Months Ended |
Dec. 31, 2016 | |
Reverse Mortgage Interest [Abstract] | |
Reverse Mortgage Interests, Net | Reverse Mortgage Interests, Net Reverse mortgage interests, net consist of the following. December 31, 2016 December 31, 2015 Participating interests in HMBS $ 8,839 $ 5,864 Other interests securitized 753 715 Unsecuritized interests 1,572 988 Reserves (131 ) (53 ) Total reverse mortgage interests, net $ 11,033 $ 7,514 Participating Interests in HMBS Participating interests in HMBS consist of the Company's reverse mortgage interests in 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 interests and related indebtedness retained on the Company's balance sheet. During 2016, a total of $413 UPB was securitized. Other Interests Securitized Other interests securitized consist of reverse mortgage interests that no longer meet HMBS program eligibility criteria, 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. During 2016, a total of $775 UPB was securitized through Trust 2016-1, Trust 2016-2 and Trust 2016-3, and $458 UPB was collapsed through Trust 2014-1 and Trust 2015-1. Refer to Other Nonrecourse Debt in Note 10, Indebtedness for additional information. Unsecuritized Interests Unsecuritized interests in reverse mortgages consist primarily of the following. December 31, 2016 December 31, 2015 Repurchased HECM loans $ 1,000 $ 591 HECM related receivables 301 290 Funded borrower draws not yet securitized 236 83 Foreclosed assets 35 24 Total unsecuritized interests $ 1,572 $ 988 Unsecuritized interests include repurchased HECM loans for which the Company was required to repurchase HECM loans from the HMBS pool when the outstanding principal balance of the HECM loan is equal or greater than 98% of the maximum claim amount established at origination in accordance with HMBS program guidelines. The Company repurchased a total of $3,176 and $2,274 HECM loans out of Ginnie Mae HMBS securitizations during the years ended December 31, 2016 and 2015 , respectively, of which, $915 and $841 were subsequently assigned to a prior servicer. Nationstar routinely securitizes eligible, as defined in Ginnie Mae Mortgage Backed Securities Program guidelines, 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 Nationstar records an allowance for reserves related to reverse mortgage interests based on potential unrecoverable costs and loss exposures expected to be realized. Recoverability is determined based on the Company’s ability to meet HUD servicing guidelines and is viewed as two different categories of expenses: financial and operational. Financial exposures are defined as the cost of doing business related to servicing the HECM product and include potential unrecoverable costs primarily based on HUD claim guidelines related to recoverable expenses and unfavorable changes in the appraised value of the loan collateral. Operational exposures are defined as unrecoverable debenture interest curtailments imposed for missed FHA-specified servicing timelines. The Company establishes reserves for servicing losses based on historical loss experience, underlying value of collateral, and its understanding of FHA specified servicing timelines. Reserves reflect management’s best estimate of amounts that will be unrecoverable losses, which are subject to change as facts and circumstances change. During the year ended December 31, 2016 , the Company increased reserves by $ 61 associated with the relative fair value allocation of the portfolio acquisition discussed below and by $ 23 associated with a global counterparty settlement for probable future losses. The Company also increased reserves by $9 through provision recorded to general and administrative expense and wrote off $15 to reserves during the year ended December 31. 2016. 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 the clean-up call rights. The Company acquired reverse mortgage loans for $55 due to the clean-up call rights with an outstanding unpaid principal balance totaling $96 . These loans were recorded within reverse mortgage interests as mortgage loans held for sale at amortized cost. 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. An additional gain of $3 was recorded in the fourth quarter of 2016 due to the release of repurchase reserves that were determined to no longer be needed due to the pending expiration of the warranty period in February 2017. Purchase of Reverse Mortgage Servicing Rights and Interests On December 1, 2016 , the Company executed an asset purchase agreement with a large financial institution, acquiring the servicing rights and participating interest in securitized HECM loans and related HMBS obligations. Refer to Note 3, Mortgage Servicing Rights and Related Liabilities for discussion of servicing portfolio acquired. In addition to the servicing portfolio also included $3,840 UPB of Ginnie Mae participating interest in HECM loans and related HMBS obligations. Upon acquisition the Company performed a relative fair value allocation, resulting in the Company recording $3,748 reverse mortgage interests and the corresponding liabilities as nonrecourse debt of $3,691 . The Company received cash of $91 , net of a $5 holdback receivable which was included in other assets, for the acquisition of these assets and assumption of related liabilities. Under the purchase agreement, the Company has agreed to acquire remaining components of the reverse portfolio, primarily including whole loans and REO advances, pending the appropriate regulatory approvals which are expected in 2017. During May 2015, the Company entered into an asset acquisition and paid $193 funded from cash on hand to Generation Mortgage and received $4.9 billion of UPB assets and $4.6 billion of assumed liabilities. Nationstar recorded both the asset and corresponding liability gross for HMBS securities previously issued by Generation Mortgage as an assumed liability recorded to nonrecourse debt. Reverse Interest Income The Company accrues interest income for its participating interest in reverse mortgages based on the stated rates underlying HECM loans and FHA guidelines. Total interest earned on the Company's reverse mortgage interests was $344 , $268 and $79 for the years ended December 31, 2016, 2015 and 2014, respectively. |
Mortgage Loans Held for Sale an
Mortgage Loans Held for Sale and Investment | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Loans Held for Sale and Investment [Abstract] | |
Mortgage Loans Held for Sale and Investment | Mortgage Loans Held for Sale and Investment Mortgage Loans Held for Sale Nationstar maintains a strategy of originating mortgage loan products primarily for the purpose of selling to GSEs or other third-party investors in the secondary market on a servicing-retained basis. 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. December 31, 2016 December 31, 2015 Mortgage loans held for sale - UPB $ 1,759 $ 1,374 Mark-to-market adjustment (1) 29 56 Total mortgage loans held for sale $ 1,788 $ 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 and comprehensive income. 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. Accrued interest is recorded as interest income in the consolidated statements of operations and comprehensive income. The total UPB of mortgage loans held for sale on non-accrual status was as follows for the dates indicated. December 31, 2016 December 31, 2015 Mortgage Loans Held for Sale - UPB UPB Fair Value UPB Fair Value Non-accrual $ 106 $ 103 $ 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 year ended December 31, 2016 , Nationstar repurchased $317 of delinquent Ginnie Mae loans, of which $163 of these loans were securitized or sold to third-party investors. As of December 31, 2016 , $40 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 $84 and $16 as of December 31, 2016 and 2015 , respectively. A reconciliation of the changes in mortgage loans held for sale is presented in the following table. Year Ended December 31, 2016 2015 Mortgage loans held for sale – beginning balance $ 1,430 $ 1,278 Mortgage loans originated and purchased, net of fees 20,349 17,971 Loans sold (21,399 ) (19,659 ) Repurchase of loans out of Ginnie Mae securitizations 1,432 1,827 Transfer of mortgage loans held for sale to claims receivable in advances and other receivables (1) (18 ) (27 ) Net transfer of mortgage loans held for sale (to)/from REO in other assets (2) 9 41 Changes in fair value (15 ) (1 ) Mortgage loans held for sale – ending balance $ 1,788 $ 1,430 (1) Amounts are comprised of claims made on certain government insured mortgage loans upon completion of the REO sale. (2) Net amounts are comprised of REOs in the sales process which are transferred to other assets and certain government insured mortgage REOs which are transferred from other assets upon completion of the sale so that the claims process can begin. For the years ended December 31, 2016 , 2015 and 2014 , the Company received proceeds of $21,957 , $20,100 and $22,290 , respectively, on the sale of mortgage loans held for sale, resulting in gains of $543 , $440 and $597 , 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 The following sets forth the composition of Mortgage loans held for investment, net. December 31, 2016 December 31, 2015 Mortgage loans held for investment, net – UPB $ 216 $ 250 Transfer discount: Non-accretable (49 ) (58 ) Accretable (13 ) (15 ) Allowance for loan losses (3 ) (3 ) Total mortgage loans held for investment, net $ 151 $ 174 The changes in accretable yield on loans transferred to mortgage loans held for investment, net are set forth below. Year Ended December 31, Accretable Yield 2016 2015 Balance at the beginning of the period $ (15 ) $ (16 ) Accretion 3 2 Reclassifications from nonaccretable discount (1 ) (1 ) Balance at the end of the period $ (13 ) $ (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 and $1 of transfer discount from non-accretable yield for the years ended December 31, 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 was 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 $29 and $41 for the years ended December 31, 2016 and 2015 , respectively. |
Property and Equipment, Net Pro
Property and Equipment, Net Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, and the corresponding ranges of estimated useful lives were as follows. December 31, 2016 December 31, 2015 Estimated Useful Life Capitalized software costs $ 123 $ 102 5 years Furniture, fixtures, and equipment 52 40 3 - 5 years Long-term capital leases - computer equipment 42 50 5 years Software in development and other 21 31 Varies Leasehold improvements 16 13 3 - 5 years Property and equipment 254 236 Less: Accumulated depreciation and amortization (118 ) (93 ) Total property and equipment, net $ 136 $ 143 Total depreciation and amortization on property and equipment was $56 , $46 and $37 for the years ended December 31, 2016, 2015, and 2014, respectively. Nationstar has entered into various lease agreements for computer equipment which are classified as capital leases. All of the capital leases expire over the next three years . A majority of these lease agreements contain bargain purchase options. In December 2016, the Company recorded a total of $11 impairment charges for assets that were no longer in use, including $10 primarily related to software and hardware and $1 due to retirement of Company's old website upon launch of Company's new website. The impairment charges were included in the general and administrative expenses in the consolidated statements of operations and comprehensive income. No impairment losses related to property and equipment were recorded during 2015 and 2014. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following: December 31, 2016 December 31, 2015 Accrued revenues $ 165 $ 180 Loans subject to repurchase right from Ginnie Mae 152 117 Goodwill 74 71 REO, net 30 18 Intangible assets 28 50 Deposits 25 30 Prepaid expenses 16 20 Receivables from affiliates, net 6 8 Other 64 38 Total other assets $ 560 $ 532 Accrued Revenues Accrued revenue is primarily comprised of service fees earned but not received based upon the terms of the Company's servicing and subservicing agreements. Loans Subject to Repurchase Right from Ginnie Ma e Forward loans are sold to Ginnie Mae in conjunction with the issuance of mortgage backed securities. Nationstar, as the issuer of the mortgage backed securities, 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, it has effectively regained control over the loan and recognizes these rights to the loan on its consolidated balance sheets and establishes a corresponding repurchase liability regardless of Nationstar’s intention to repurchase the loan. REO, net REO, net includes $21 and $15 of REO loans with government insurance as of December 31, 2016 and 2015 , respectively, limiting loss exposure to the Company. Other Other primarily includes non-advance related accounts receivables due from investors and various other miscellaneous assets. Goodwill and Intangible Assets The following table presents changes in the carrying amount of goodwill for the periods indicated. Year Ended December 31, 2016 2015 Balance at beginning of period $ 71 $ 55 Goodwill acquired during the period — 23 Goodwill reclassification during the period 3 (7 ) Balance at end of period $ 74 $ 71 In 2015, Xome completed the acquisitions of Experience 1, Inc. and Quantarium, LLC recording $20 and $3 in goodwill, respectively. Upon finalizing the accounting in 2016, a reclassification of $3 was made between goodwill and deferred tax liabilities related to the Quantarium acquisition. In 2015, the Company finalized the accounting for the 2014 acquisition of Real Estate Digital LLC, which resulted in a $7 reclassification between goodwill and intangible assets. We evaluate goodwill for potential impairment each October 1 for the reporting units in the Originations and Xome segments, or more frequently when there are events or circumstances that indicate that it is more likely than not that an impairment exists. The Company performed a quantitative assessment in 2016 of the fair value of its reporting units. In establishing the estimated fair value, consideration was given to the forecasted discounted cash flows of the reporting units, recent trading prices of the Company's common stock, and recent trading prices of common stock for peer group companies. In establishing the discounted cash flows, the Company gives consideration to anticipated effects of interest rate changes to earnings, cost alignments for changes in transaction volumes and other changes to operations that would be considered by a market participant. These estimates could be materially impacted by changes in market conditions and the regulatory environment. Based on the assessment performed, we determined the fair value of our reporting units exceeded the carrying value by more than 65%. Accordingly, no impairment of goodwill was considered necessary in 2016. There was no goodwill impairment in 2015 and 2014. The following tables present intangible assets for the periods indicated. December 31, 2016 Gross Carrying Amount Impairment Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life in Years Trade name $ 27 $ (13 ) $ (8 ) $ 6 7.5 Customer relationships 20 (1 ) (6 ) 13 5.7 Purchased intangible software 12 — (4 ) 8 4.9 Licenses 1 — — 1 Indefinite Total intangible assets $ 60 $ (14 ) $ (18 ) $ 28 5.7 December 31, 2015 Gross Carrying Amount Impairment Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life in Years Trade name $ 27 $ — $ (6 ) $ 21 7.7 Customer relationships 20 — (3 ) 17 6.6 Purchased intangible software 12 — (1 ) 11 5.9 Licenses 1 — — 1 Indefinite Total intangible assets $ 60 $ — $ (10 ) $ 50 6.9 Intangible assets are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized when the carrying amount of the asset exceeds the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. The impairment loss to be recorded would be the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis or other valuation technique. Starting in 2017, the Company will discontinue marketing loan originations under the Greenlight brand and all future direct-to-consumer business will be marketed under the Nationstar brand. In addition to establishing a stronger identity under the Nationstar brand, the initiative will allow cost savings as marketing and technology costs associated with the Greenlight name will be avoided. A $13 impairment was recorded to general and administrative expenses in the consolidated balance sheet in 2016 primarily associated with the abandonment of the Greenlight trade name. The Company also recorded an impairment of customer relationships associated with Xome's Services segment of $1 due to the loss of a major customer. These impairment charges represent non-cash expenses and do not affect our cash flows, liquidity or borrowing capacity under unsecured senior notes, and the charge is excluded from our financial results in evaluating its financial covenant under the unsecured senior notes. No impairment charges related to our intangible assets were recorded for the years ended December 31, 2015 and 2014. Nationstar recognized $8 , $7 , and $3 of amortization expense during the years ended December 31, 2016 , 2015 , and 2014 , respectively. The following table presents the estimated aggregate amortization expense for existing amortizable intangible assets for the periods indicated. Year Ended December 31, Amount 2017 $ 5 2018 5 2019 5 2020 5 2021 4 Thereafter 3 Total future amortization expense $ 27 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Derivative instruments utilized by Nationstar primarily include IRLCs, LPCs, forward MBS trades, Eurodollar futures, interest rate swap agreements and interest rate caps. Nationstar enters into IRLCs with prospective borrowers. LPCs are also executed to purchase residential mortgage loans from other mortgage lenders at a future date. These commitments are recorded 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 and LPCs consider the fair value of the related mortgage loans which is based on observable market data and is recorded in the derivative financial instruments within the consolidated balance sheets. Nationstar adjusts the outstanding IRLCs with prospective borrowers based on an expectation that the IRLCs will be exercised and the loans will be funded. Nationstar enters into forward sales commitments to deliver mortgage loan inventory to investors based on the loan inventory expected to be available. These commitments are recorded at fair value based on the dealer's market price as a component of the derivative financial instruments within the consolidated balance sheets. To manage the interest rate risk associated with the mortgage loans held for sale, the Company enters into forward sales of MBS in an amount equal to its purchase commitments and the portion of the IRLC expected to close, assuming no change in the mortgage interest rates. The estimated fair values of forward sales of MBS are based on the exchange prices and are recorded as a component of the derivative financial instruments within the consolidated balance sheets. The changes in value on the forward sales commitments and forward sales of MBS are recorded as a charge or credit to net gain on mortgage loans held for sale. Associated with the Company's derivatives is $29 and $4 in collateral deposits on derivative instruments recorded in payables and accrued liabilities and other assets on the Company's consolidated balance sheets as of December 31, 2016 and 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 Eurodollar future contracts to replicate the economic hedging results achieved with interest rate swaps, or to offset the changes in the 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 as a component of the derivative financial instruments within the consolidated balance sheets. Realized and unrealized changes in fair value of the futures contracts are recorded as a charge or credit to net gain on mortgage loans held for sale. Periodically, Nationstar has entered into interest rate swap agreements to hedge the interest payments on the warehouse debt and the securitizations 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 on the Company's consolidated statements of operations and comprehensive income. 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 , respectively, to mitigate interest rate risk associated with servicing advance facilities. The expenses associated with interest rate caps are recorded as a gain/(loss) on interest rate swaps and caps on the Company's consolidated statements of operations and comprehensive income. During the fourth quarter of 2015, the Company entered into a $100 interest rate cap. The interest rate caps expired during 2016. The Company did not elected hedge accounting related to these agreements. 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) Year Ended December 31, 2016 Assets Mortgage loans held for sale Loan sale commitments 2017 $ 1 $ 0.1 $ (0.2 ) Derivative financial instruments IRLCs 2017 3,675 92.2 3.1 Forward sales of MBS 2017 2,580 39.2 33.1 LPCs 2017 203 1.9 (2.0 ) Eurodollar futures (1) 2017-2021 35 — (0.1 ) Interest rate swaps 2017 9 0.1 (0.4 ) Liabilities Derivative financial instruments IRLCs 2017 176 1.1 (1.1 ) Forward sales of MBS 2017 1,689 10.0 (6.3 ) LPCs (1) 2017 111 1.5 — Eurodollar futures (1) 2017-2021 27 — 0.1 Interest rate swaps 2017 9 0.1 0.4 Year 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. In 2014 the Company recorded a total loss of $42 in connection with derivative instruments. |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness Notes Payable December 31, 2016 December 31, 2015 Advance Facilities Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged Nationstar agency advance receivables trust LIBOR+2.0% to 2.8% October 2017 Servicing advance receivables $ 650 $ 485 $ 578 $ 763 $ 823 Nationstar mortgage advance receivable LIBOR+1.9% December 2017 Servicing advance receivables 500 260 301 335 394 Nationstar agency advance financing facility LIBOR+2.0% January 2018 Servicing advance receivables 400 164 186 310 364 MBS advance financing facility LIBOR+2.5% March Servicing advance receivables 130 55 60 82 89 MBS servicer advance facility (2014) LIBOR+3.5% September 2017 Servicing advance receivables 125 88 142 106 185 MBS advance financing facility (2012) (1) LIBOR+5.0% January Servicing advance receivables 50 44 52 50 70 Advance facilities principal amount 1,096 1,319 1,646 1,925 Debt issuance costs — — (6 ) — Advance facilities, net of unamortized debt issuance costs $ 1,096 $ 1,319 $ 1,640 $ 1,925 (1) This MBS Advance Financing facility was paid off in full in February 2017. The Company entered into an agreement with a new sublimit for the same amount under a warehouse facility with the same financial institution. December 31, 2016 December 31, 2015 Warehouse Facilities Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged $1,200 warehouse facility LIBOR+2.0% to 2.9% October 2017 Mortgage loans or MBS $ 1,200 $ 682 $ 747 $ 634 $ 678 $900 warehouse facility LIBOR+1.8% to 3.3% June Mortgage loans or MBS 900 496 539 545 622 $500 warehouse facility LIBOR+1.8% to 2.8% September 2017 Mortgage loans or MBS 500 229 237 175 179 $500 warehouse Facility LIBOR+2.1% to 2.4% September 2017 Mortgage loans or MBS 500 250 256 — — $500 warehouse facility LIBOR+2.0% to 2.8% November 2017 Mortgage loans or MBS 500 410 415 257 274 $350 warehouse facility LIBOR+2.2% to 2.8% April Mortgage loans or MBS 350 12 13 98 112 $350 warehouse facility LIBOR+2.5% to 2.6% November Mortgage loans or MBS 350 173 189 45 50 $300 warehouse facility LIBOR+2.3% January 2018 Mortgage loans or MBS 300 153 180 23 28 $200 warehouse facility LIBOR+1.5% April Mortgage loans or MBS 200 7 8 8 9 $40 warehouse facility LIBOR+3.0% December 2017 Mortgage loans or MBS 40 11 18 — — $100 warehouse facility (HCM) (2) LIBOR+2.5% to 2.8% November 2016 Mortgage loans or MBS 100 — — 55 60 $75 warehouse facility (HCM) (2) LIBOR+2.3% to 2.9% October 2016 Mortgage loans or MBS 75 — — 53 59 Warehouse facilities principal amount 2,423 2,602 1,893 2,071 Debt issuance costs (2 ) — (3 ) — Warehouse facilities, net of unamortized debt issuance costs $ 2,421 $ 2,602 $ 1,890 $ 2,071 Mortgage loans, net $ 1,693 $ 1,427 $ 1,509 $ 1,625 Reverse mortgage interests, net $ 730 $ 834 $ 351 $ 390 MSR and other collateral $ — $ 341 $ 33 $ 56 (2) 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. December 31, 2016 December 31, 2015 $600 face value, 6.500% interest rate payable semi-annually, due July 2021 $ 595 $ 597 $475 face value, 6.500% interest rate payable semi-annually, due August 2018 461 475 $400 face value, 7.875% interest rate payable semi-annually, due October 2020 400 400 $375 face value, 9.625% interest rate payable semi-annually, due May 2019 345 363 $300 face value, 6.500% interest rate payable semi-annually, due June 2022 206 214 Unsecured senior notes principal amount 2,007 2,049 Debt issuance costs (17 ) (23 ) Unsecured senior notes, net of unamortized debt issuance costs $ 1,990 $ 2,026 The indentures for the unsecured senior notes contain various covenants and restrictions that limit the ability to incur additional indebtedness, pay dividends, make certain investments, create liens, consolidate, merge or sell substantially all of their assets or enter into certain transactions with affiliates. The indentures contain certain events of default, including (subject, in some cases, to customary cure periods and materiality thresholds) defaults based on (i) the failure to make payments under the indenture when due, (ii) breach of covenants, (iii) cross-defaults to certain other indebtedness, (iv) certain bankruptcy or insolvency events, (v) material judgments and (vi) invalidity of material guarantees. The indentures for the unsecured senior notes provide that Nationstar may redeem all or a portion of the notes prior to certain fixed dates by paying a make-whole premium plus accrued and unpaid interest and additional interest, if any, to the redemption dates. In addition, Nationstar may redeem all or a portion of the unsecured senior notes at any time on or after certain fixed dates at the applicable redemption prices set forth in the indentures plus accrued and unpaid interest and additional interest, if any, to the redemption dates. Additionally, the indentures provide that on or before certain fixed dates, Nationstar may redeem up to 35% of the aggregate principal amount of the unsecured senior notes with the net proceeds of certain equity offerings at a fixed redemption prices, plus accrued and unpaid interest and additional interest, if any, to the redemption dates, subject to compliance with certain conditions. The ratios included in the indentures for the 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 December 31, 2016, the expected maturities of Nationstar's unsecured senior notes based on contractual maturities are as follows. Year Ended December 31, Amount 2017 $ — 2018 461 2019 345 2020 400 2021 595 Thereafter 206 Unsecured senior notes principal amount 2,007 Unsecured debt issuance costs (17 ) Unsecured senior notes, net of unamortized debt issuance costs $ 1,990 Other Nonrecourse Debt A summary of the balances of other nonrecourse debt is presented below. December 31, 2016 December 31, 2015 Issue Date Maturity Date Class of Note Securitized Amount Outstanding Outstanding Participating interest financing (1) $ 8,914 $ 5,947 Securitization of nonperforming HECM loans Trust 2014-1 (2) December 2014 — A, M — — 227 Trust 2015-1 (3) June 2015 May 2018 A, M — — 222 Trust 2015-2 November 2015 November 2025 A, M1, M2 140 114 209 Trust 2016-1 March 2016 February 2026 A, M1, M2 230 194 — Trust 2016-2 June 2016 June 2026 A, M1, M2 179 158 — Trust 2016-3 August 2016 August 2026 A, M1, M2 229 208 — Nonrecourse debt - legacy assets November 2009 October 2039 A 211 50 65 Other nonrecourse debt principal amount 9,638 6,670 Unamortized debt issuance costs (7 ) (4 ) Other nonrecourse debt, net of unamortized debt issuance cost $ 9,631 $ 6,666 (1) Amounts represent the Company's participating interest in GNMA 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 of HMBS pools to third-party security holders. The Company issues HMBS in connection with the securitization of advances and accrued interest on HECM loans. Proceeds are received in exchange for securitized advances on the HECM loan amounts transferred to GNMA, and the Company retains a beneficial interest (referred to as a "participating interest") in the securitization trust in which the HECM loans and HMBS obligations are held and assume both issuer and servicer responsibilities in accordance with GNMA HMBS program guidelines. Nationstar has accounted for the HMBS securitizations of these HECM loans as secured borrowings, retaining the HECM loan reverse mortgage interests on its consolidated balance sheet, and recording the HMBS obligations as participating interest financing liabilities on the Company’s consolidated balance sheets. Monthly cash flows generated from the HECM loans are used to service the HMBS obligations. The interest rate is based on the underlying HMBS rate with a range of 0.8% to 7.0% . Interest accrued is recorded as interest expense in the consolidated statements of operations and comprehensive income. Securitizations of Nonperforming HECM Loans From time to time, Nationstar securitizes its interests in non-performing reverse mortgages. The transactions provide investors with the ability to invest in a pool of non-performing HECM loans that are covered by FHA insurance and secured by one-to-four-family residential properties and a pool of REO properties acquired through foreclosure or grant of a deed in lieu of foreclosure in connection with reverse mortgage loans that are covered by FHA insurance. The transactions provide Nationstar with access to liquidity for the 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 and recorded as interest expense in consolidated statements of operations and comprehensive income. The HECM securitizations are callable with expected weighted average lives of one to two years . The Company may re-securitize the previously called loans from earlier HECM securitizations 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 in its consolidated balance sheets and recognizing the asset-backed certificates acquired by third parties. 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 $208 and $242 at December 31, 2016 and December 31, 2015, respectively. The timing of the principal payments on this nonrecourse debt is dependent on the payments received on the underlying mortgage loans. The carrying values on the outstanding loans was $58 and $75 at December 31, 2016 and December 31, 2015, respectively, and the carrying value of the nonrecourse debt was $50 and $65 , respectively. Financial Covenants The Company's borrowing arrangements and credit facilities contain various financial covenants which primarily relate to required tangible net worth amounts, liquidity reserves, leverage requirements, and profitability requirements. As of December 31, 2016, we are in compliance with its financial covenants. 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. As of December 31, 2016, we are in compliance with these minimum tangible net worth requirements. Nationstar has a total of $3,351 and $3,690 in unused borrowing capacity out of a total of $6,870 and $7,230 in committed funding's at December 31, 2016 and December 31, 2015, respectively. |
Payables and Accrued Liabilitie
Payables and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Payables and Accrued Liabilities | Payables and Accrued Liabilities Payables and accrued liabilities consist of the following. December 31, 2016 December 31, 2015 Payables to servicing and subservicing investors $ 655 $ 484 Loans subject to repurchase from Ginnie Mae 152 117 Accrued bonus and payroll 95 96 Taxes 84 81 Payable to insurance carriers and insurance cancellation reserves 73 70 Accrued interest 65 61 Payable to GSEs and securitized trusts 58 113 Accrued liabilities and accounts payable 49 73 Professional and legal 47 43 Margin call deposits 29 4 Lease obligations 24 13 MSR purchases payable including advances 21 22 Repurchase reserves 18 26 Other 100 93 Total payables and accrued liabilities $ 1,470 $ 1,296 Payable to servicing and subservicing investors, Payables to GSEs, and Payables to securitization trusts Payables to servicing and subservicing investors represent amounts due to investors in connection with loans serviced that are paid from collections of the underlying loans, insurance proceeds or at time of property disposal. Loans subject to repurchase from Ginnie Mae See Note 8, Other Assets for a description of assets and liabilities related to loans subject to repurchase from Ginnie Mae. Payable to insurance carriers and insurance cancellation reserves Payable to insurance carriers and insurance cancellation reserves consist of insurance premiums received from borrower payments awaiting disbursement to the insurance carrier and/or amounts due to third-party investors on liquidated loans. Repurchase reserves The activity of the outstanding repurchase reserves is set forth below. Year Ended December 31, 2016 2015 Repurchase reserves, beginning of period $ 26 $ 29 Provision (release) (6 ) — Charge-offs (2 ) (3 ) Repurchase reserves, end of period $ 18 $ 26 The provision for repurchases represents an estimate of losses to be incurred on the repurchase of loans or indemnification of purchaser's losses related to forward loans. Certain sale contracts and GSE standards require Nationstar to repurchase a loan or indemnify the purchaser or insurer for losses if a borrower fails to make initial loan payments or if the accompanying mortgage loan fails to meet certain customary representations and warranties, such as the manner of origination, the nature and extent of underwriting standards. In the event of a breach of the representations and warranties, Nationstar may be required to either repurchase the loan or indemnify the purchaser for losses it sustains on the loan. In addition, an investor may request that we refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. Nationstar records a reserve for estimated losses associated with loan repurchases, purchaser indemnification and premium refunds. The provision for repurchase losses is charged against net gain on mortgage loans held for sale. A selling representation and warranty framework was introduced by the GSEs in 2013 and enhanced in 2014 that helps address concerns of loan sellers with respect to loan repurchase risk. Under the framework, the GSEs will not exercise its remedies, including the issuance of repurchase requests, for breaches of certain selling representations and warranties if a mortgage meets certain eligibility requirements. For loans sold to GSEs on or after January 1, 2013, repurchase risk for HARP loans is lowered if the borrower stays current on the loan for 12 months and representation and warranty risks are limited for non-HARP loans that stay current for 36 months. The Company regularly evaluates the adequacy of repurchase reserve based on trends in repurchase and indemnification requests, actual loss experience, settlement negotiation, estimated future loss exposure and other relevant factors including economic conditions. As a result of year-over-year improvements in loss rates attributable to stronger underwriting standards and due to the falloff of losses underwritten prior to mortgage loan crisis period prior to 2008, current loss rates have significantly declined. The Company has determined that previously estimated losses are not expected to occur and has updated its analysis for reserves, resulting in a release of reserves to earnings in 2016 as evidence of lower losses became available. The Company believes its reserve balances as of December 31, 2016 are sufficient to cover future loss exposure associated with repurchase contingencies on our loan portfolio. Other Payables Other payables are primarily comprised of deferred service fees and liabilities related to origination activities. |
Securitizations and Financings
Securitizations and Financings | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities and Securitizations [Abstract] | |
Securitizations and Financings | Securitizations and Financings Variable Interest Entities (VIE) In the normal course of business, Nationstar enters into various types of on- and off-balance sheet transactions with SPEs determined to be VIEs, which primarily consists of securitization trusts established for a limited purpose. Generally, these SPEs are formed for the purpose of securitization transactions in which Nationstar transfers assets to an SPE, which then issues to investors various forms of debt obligations supported by those assets. In these securitization transactions, Nationstar typically receives cash and/or other interests in the SPE as proceeds for the transferred assets and retains the rights and obligations to service and repurchase the transferred assets in accordance with servicing guidelines set forth by the underwriting agency. All debt obligations issued from the VIEs is non-recourse to Nationstar. Nationstar evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Company is the primary beneficiary and therefore, should consolidate the entity based on the variable interests it held both at inception and when there was a change in circumstances that required a reconsideration. Nationstar has determined that the SPEs created in connection with the (i) Nationstar Home Equity Loan Trust 2009-A, (ii) Nationstar Mortgage Advance Receivables Trust (NMART), (iii) Nationstar Agency Advance Financing Trust (NAAFT) and (iv) Nationstar Advance Agency Receivables Trust (NAART) should be consolidated as Nationstar is the primary beneficiary of each of these entities. Also, Nationstar consolidated six reverse mortgage SPEs as it is the primary beneficiary of each of these entities. These SPEs include the Nationstar HECM Loan Trusts 2014-1; 2015-1; 2015-2; 2016-1; 2016-2 and 2016-3. 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: December 31, 2016 December 31, 2015 Transfers Reverse Secured Borrowings Transfers Reverse Secured Borrowings Assets Restricted cash $ 190 $ 37 $ 94 $ 36 Reverse mortgage interests, net — 9,557 — 6,547 Advances and other receivables, net 1,065 — 1,581 — Mortgage loans held for investment, net 150 — 173 — Derivative financial instruments — — — — Other assets 4 — 5 — Total assets $ 1,409 $ 9,594 $ 1,853 $ 6,583 Liabilities Advance facilities (1) $ 909 $ — $ 1,408 $ — Payables and accrued liabilities 1 — 2 1 Participating interest financing (2) — 8,840 — 5,864 HECM Securitizations (HMBS) Trust 2014-1 — — — 227 Trust 2015-1 — — — 222 Trust 2015-2 — 114 — 209 Trust 2016-1 — 194 — — Trust 2016-2 — 158 — — Trust 2016-3 — 208 — — Nonrecourse debt–legacy assets 50 — 65 — Total liabilities $ 960 $ 9,514 $ 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 10, Indebtedness for additional information. (2) Participating interest financing excludes premiums. A summary of the outstanding collateral and certificate balances for securitization trusts for which Nationstar was the transferor, including any retained beneficial interests and MSRs, that were not consolidated by Nationstar for the periods indicated are as follows: December 31, 2016 December 31, 2015 Total collateral balances $ 2,704 $ 3,114 Total certificate balances $ 2,455 $ 2,811 Nationstar has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of December 31, 2016 , and 2015 , and therefore does not have a significant maximum exposure to loss related to these unconsolidated VIEs. A summary of mortgage loans transferred by Nationstar to unconsolidated securitization trusts that are 60 days or more past due and the credit losses incurred in the unconsolidated securitization trusts are presented below: Principal Amount of Loans 60 Days or More Past Due December 31, 2016 December 31, 2015 Unconsolidated securitization trusts $ 548 $ 728 Year Ended December 31, Credit Losses 2016 2015 2014 Unconsolidated securitization trusts $ 150 $ 216 $ 276 Certain cash flows received from securitization trusts related to the transfer of mortgage loans accounted for as sales for the dates indicated were as follows: Year Ended December 31, 2016 2015 2014 Servicing Fees Loan Servicing Fees Loan Servicing Fees Loan Unconsolidated securitization trusts $ 22 $ — $ 24 $ — $ 28 $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense (benefit) on continuing operations were as follows: Year Ended December 31, 2016 2015 2014 Current Income Taxes Federal $ 14 $ 59 $ 46 State 4 4 8 Total current income taxes 18 63 54 Deferred Income Taxes Federal (4 ) (50 ) 6 State (1 ) (2 ) 5 Total deferred income taxes (5 ) (52 ) 11 Total provision for income taxes $ 13 $ 11 $ 65 Income tax expense differs from the amounts computed by applying the U.S. federal corporate tax rate of 35.0% as follows for the period indicated: Year Ended December 31, 2016 2015 2014 Tax Expense at Federal Statutory Rate $ 10 35.0 % $ 19 35.0 % $ 100 35.0 % Effect of: State taxes, net of federal benefit 1 5.0 % — (0.4 )% 9 2.9 % Noncontrolling interest 1 3.4 % (2 ) (2.7 )% — — % Increase/(decrease) of valuation allowance — — % (3 ) (6.1 )% (40 ) (14.1 )% Deferred adjustments 1 2.3 % (5 ) (10.1 )% (2 ) (0.5 )% Current payable adjustments 1 1.9 % 2 4.0 % (2 ) (0.8 )% Other, net (1 ) (2.4 )% — 0.6 % — 0.2 % Total income tax expense $ 13 45.2 % $ 11 20.3 % $ 65 22.7 % The effective tax rate differed from the statutory tax rate in 2016 primarily due to state tax adjustments and the elimination of the book loss attributable to a less-than-wholly-owned subsidiary. Changes in estimates of deferred and current tax liabilities resulted in an increase in tax expense of $2 in 2016. In 2015, the effective tax rate differed from the statutory rate primarily due to changes in the valuation allowance and adjustments resulting from an analysis of the deferred taxes. The Company released a federal valuation allowance of $4 in 2015 . Deferred income tax amounts at December 31, 2016 and 2015 , reflect the effect of basis differences in assets and liabilities for financial reporting and income tax purposes and tax attribute carryforwards. The Company regularly reviews the carrying amount of its deferred tax assets to determine if a valuation allowance is necessary. If based on the available evidence, it is more likely than not that all or a portion of the Company's deferred tax assets will not be realized in future periods, a valuation allowance is established. Management considers all available evidence, both positive and negative, in evaluating the need for a valuation allowance. Significant judgment is required in assessing future earnings trends and the timing of reversals of temporary differences. The Company's evaluation is based on current tax laws as well as management's expectations of future performance. The Company has federal net operating loss ("NOL") carryforwards (pre-tax) of approximately $162 and $175 at December 31, 2016 and 2015, respectively. It is expected that the federal NOL carryforwards will begin to expire beginning with the 2027 tax year, if unused. The Company also has immaterial state NOL carryforwards that will begin to expire beginning with 2016 tax year, if unused. The federal NOL is limited under Sections 382 and 383 of the Internal Revenue Code as a result of a reorganization that occurred in advance of the Company's initial public offering, and the limitation is approximately $12 annually. The Company believes that it is more likely than not that a portion of the benefit from the federal NOL carryforwards that are limited by IRC Section 382 will not be realized. Accordingly, a federal and state valuation allowance of $3 and $1 respectively is recorded for these NOL carryforwards as of December 31, 2016. The Company expects future income will be sufficient to utilize all net operating losses generated subsequent to the initial public offering in 2012. Temporary differences and carryforwards that give rise to deferred tax assets and liabilities are comprised of the following: Year Ended December 31, 2016 2015 Deferred Tax Assets Effect of: Loss carryforwards (federal, state and capital) $ 60 $ 64 Loss reserves 104 57 Reverse mortgage premiums 25 26 Rent expense 5 6 Restricted share based compensation 9 9 Accruals 20 14 Other, net 24 9 Total deferred tax assets 247 185 Deferred Tax Liabilities MSR amortization and mark-to-market, net (267 ) (198 ) Depreciation and amortization, net (34 ) (38 ) Prepaid assets (1 ) (3 ) Goodwill and intangible assets (3 ) (5 ) Total deferred tax liabilities (305 ) (244 ) Valuation allowance (4 ) (4 ) Net deferred tax liability $ (62 ) $ (63 ) Deferred tax assets related to loss reserves increased due to proceeds received for future estimated losses in connection with an acquisition of reverse mortgage interests. The increase in deferred tax liabilities related to MSRs resulted from unfavorable mark-to-market adjustments and book-tax differences related to the sales of MSRs. The Company files income tax returns in the U.S. federal jurisdiction and numerous U.S. state jurisdictions. The Company is currently under IRS examination for the tax year ended December 31, 2013. As of December 31, 2016, the Company is no longer subject to U.S. federal income tax examinations for tax years prior to 2013. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is a market-based measurement, not an entity-specific measurement and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a three-tiered fair value hierarchy has been established based on the level of observable inputs used in the measurement of fair value (e.g., Level 1 representing quoted prices for identical assets or liabilities in an active market; Level 2 representing values using observable inputs other than quoted prices included within Level 1; and Level 3 representing estimated values based on significant unobservable inputs). The following describes the methods and assumptions used by Nationstar in estimating fair values: Cash and Cash Equivalents, Restricted Cash (Level 1) – The carrying amount reported in the consolidated balance sheets approximates fair value. Mortgage Loans Held for Sale (Level 2) – Nationstar originates mortgage loans in the U.S. that it intends to sell to Fannie Mae, Freddie Mac, and Ginnie Mae (collectively, the "Agencies"). Additionally, Nationstar holds mortgage loans that it intends to sell into the secondary markets via whole loan sales or securitizations. Nationstar measures newly originated prime residential mortgage loans held for sale at fair value. Mortgage loans held for sale are typically pooled together and sold into certain exit markets, depending upon underlying attributes of the loan, such as agency eligibility, product type, interest rate, and credit quality. Mortgage loans held for sale are valued on a recurring basis using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. As these prices are derived from market observable inputs, Nationstar classifies these valuations as Level 2 in the fair value disclosures. The Company may acquire mortgage loans held for sale from various securitization trusts for which it acts as servicer through the exercise of various clean-up call options as permitted through the respective pooling and servicing agreements. The Company has elected to account for these loans at the lower of cost or market. Nationstar classifies these valuations as Level 2 in the fair value disclosures. Nationstar may also purchase loans out of a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Nationstar has elected to carry these loans at fair value. See Note 6, 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 6, Mortgage Loan Held for Sale and Investment for more information. Mortgage Servicing Rights – Fair Value (Level 3) – Nationstar estimates the fair value of its forward MSRs on a recurring basis using a process that combines the use of a discounted cash flow model and analysis of current market data to arrive at an estimate of fair value. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds, discount rates, ancillary revenues and costs to service. These assumptions are generated and applied based on collateral stratifications including product type, remittance type, geography, delinquency and coupon dispersion. These assumptions require the use of judgment by Nationstar and can have a significant impact on the fair value of the MSRs. Quarterly, management obtains third-party valuations to assess the reasonableness of the fair value calculations provided by the internal cash flow model. Because of the nature of the valuation inputs, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 3, Mortgage Servicing Rights and Related Liabilities for more information. Advances and Other Receivables, Net (Level 3) - Advances and other receivables, net are valued at their net realizable value after taking into consideration the valuation allowance. Advances have no stated maturity. Their net realizable value approximates fair value as the net present value based on discounted cash flow is not materially different from the net realizable value. 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 balance sheet. The majority of these derivatives are exchange-traded or traded within highly active dealer markets. In order to determine the fair value of these instruments, Nationstar utilizes the exchange price or dealer market price for the particular derivative contract; therefore, these contracts are classified as Level 2. In addition, Nationstar enters into IRLCs and LPCs with prospective borrowers and other loan originators. These commitments are carried at fair value based on the fair value of underling mortgage loans which are based on observable market data. Nationstar adjusts the outstanding IRLCs with prospective borrowers based on an expectation that it will be exercised and the loan will be funded. IRLCs and LPCs are recorded in derivative financial instruments in the consolidated balance sheets. These commitments are classified as Level 2 in the fair value disclosures, as the valuations are based on market observable inputs. Nationstar has entered into Eurodollar futures contracts as part of its hedging strategy. The future contracts are measured at fair value on a recurring basis and classified as Level 2 in the fair value disclosures as the valuation is based on market observable data. See Note 9, 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 10, 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 10, Indebtedness for more information. Nonrecourse Debt – Legacy Assets (Level 3) – Nationstar estimates fair value based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. These prices are derived from a combination of internally developed valuation models and quoted market prices, and are classified as Level 3. See Note 10, 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 and prepayment assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds, average life, recapture rates and discount rate. 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 3, 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 with the discount rate approximating current market value for similar financial instruments. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions being advance financing rates, annual advance recovery rates and working capital. As these assumptions 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 3, 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 3, Mortgage Servicing Rights and Related Liabilities , and Note 10, Indebtedness for more information. HECM Securitization (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 10, 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. December 31, 2016 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,788.0 $ — $ 1,788.0 $ — Mortgage servicing rights (1) 3,160.0 — — 3,160.0 Derivative financial instruments: IRLCs 92.2 — 92.2 — Forward MBS trades 39.2 — 39.2 — LPCs 1.9 — 1.9 — Interest rate swaps and caps 0.1 — 0.1 — Total assets $ 5,081.4 $ — $ 1,921.4 $ 3,160.0 Liabilities Derivative financial instruments IRLCs $ 1.1 $ — $ 1.1 $ — Forward MBS trades 10.0 — 10.0 — LPCs 1.5 — 1.5 — Interest rate swaps and caps 0.1 — 0.1 — Mortgage servicing rights financing 27.0 — — 27.0 Excess spread financing 1,214.0 — — 1,214.0 Total liabilities $ 1,253.7 $ — $ 12.7 $ 1,241.0 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 — Eurodollar futures 0.1 — 0.1 — Interest rate swaps and caps 0.5 — 0.5 — Total assets $ 4,887.7 $ — $ 1,529.4 $ 3,358.3 Liabilities Derivative financial instruments IRLCs (2) $ — $ — $ — $ — Forward MBS trades 3.7 — 3.7 — LPCs 1.5 — 1.5 — Eurodollar futures 0.1 — 0.1 — Interest rate swaps and caps 0.5 — 0.5 — 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 Year Ended December 31, 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 (496 ) 25 (42 ) Purchases, issuances, sales and settlements Purchases 157 — — Issuances 208 155 — Settlements — (198 ) — Dispositions (67 ) — — Ending balance $ 3,160 $ 1,214 $ 27 Assets Liabilities Year 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 (478 ) 26 20 Purchases, issuances, sales and settlements Purchases 711 — — Issuances 221 385 — Settlements — (210 ) — Dispositions (46 ) — — Ending balance $ 3,358 $ 1,232 $ 69 No transfers were made into or out of Level 3 fair value assets and liabilities for the years ended December 31, 2016 and 2015, respectively. The table below presents a summary of the estimated carrying amount and fair value of Nationstar’s financial instruments. December 31, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 489 $ 489 $ — $ — Restricted cash 388 388 — — Advances and other receivables, net 1,749 — — 1,749 Reverse mortgage interests, net 11,033 — — 11,232 Mortgage loans held for sale 1,788 — 1,788 — Mortgage loans held for investment, net 151 — — 153 Derivative financial instruments 133 — 133 — Financial liabilities Unsecured senior notes 2,007 2,047 — — Advance facilities 1,096 — 1,096 — Warehouse facilities 2,423 — 2,423 — Mortgage servicing rights financing liability 27 — — 27 Excess spread financing 1,214 — — 1,214 Derivative financial instruments 13 — 13 — Participating interest financing 8,914 — 9,151 — HECM Securitization (HMBS) Trust 2015-2 114 — — 125 Trust 2016-1 194 — — 203 Trust 2016-2 158 — — 156 Trust 2016-3 208 — — 205 Nonrecourse debt - legacy assets 50 — — 50 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 — — Advances and other receivables, net 2,412 — — 2,412 Reverse mortgage interests, net 7,514 — — 7,705 Mortgage loans held for sale 1,430 — 1,430 — Mortgage loans held for investment, net 174 — — 174 Derivative financial instruments 100 — 100 — Financial liabilities: Unsecured senior notes 2,049 1,912 — — Advance facilities 1,646 — 1,646 — Warehouse facilities 1,893 — 1,893 — Mortgage servicing rights financing liability 69 — — 69 Excess spread financing 1,232 — — 1,232 Derivative financial instruments 6 — 6 — 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 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits | Employee Benefits Nationstar sponsors a defined contribution plan (401(k) plan) that covers all full-time employees. Nationstar matches 100% of participant contributions up to 2% of their total eligible annual base compensation and matches 50% of contributions for the next 4% of each participant’s total eligible annual base compensation. Matching contributions totaled approximately $16 , $12 and $12 for the years ended December 31, 2016, 2015, and 2014, respectively. |
Share-Based Compensation and Eq
Share-Based Compensation and Equity | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation and Equity | Share-Based Compensation and Equity Share-based Compensation Nationstar sponsors the 2012 Incentive Compensation Plan ("2012 Plan") that offers equity-based awards to certain key employees of Nationstar, consultants, and non-employee directors. The equity based awards include restricted stock awards and restricted stock units granted to employees. These awards are valued at the fair market of our common stock on the grant date as defined in the 2012 Plan. Generally, one-third of the awards vest at the end of each of the following three year requisite service period. Although the restricted stock awards are included in the balance of outstanding common shares, they cannot be traded until vesting has been achieved. Any forfeiture of restricted stock awards before vesting has been achieved, result in a reduction in the balance of outstanding common shares. The following table summarizes equity based awards under the 2012 Plan for the periods indicated. Equity based awards Units (in thousands) Weighted-Average Grant Date Fair Value, per unit Restricted stock outstanding at December 31, 2015 1,837 $ 25.77 Granted 1,631 11.89 Forfeited (292 ) 17.96 Vested (904 ) 23.77 Restricted stock outstanding at December 31, 2016 2,272 17.74 Nationstar recognizes share-based compensation over the requisite service period in which the awards vest or when performance conditions are met. Total share-based compensation expense for service based equity awards, net of forfeitures, for both the 2012 Plan recognized for the years ended December 31, 2016, 2015, and 2014 was $21 , $20 and $19 , respectively. As of December 31, 2016, unrecognized compensation expense totaled $17 related to non-vested stock award payments that are expected to be recognized over a weighted average period of 1.07 years. Nationstar is eligible to receive a tax benefit when the vesting date fair value of an award exceeds the value used to recognize compensation expense at the date of grant. Excess tax benefits (deficiency), resulting from tax deductions in excess or exceeding the compensation cost recognized, aggregating $(4) , $0 , and $2 , were classified as financing activities in the consolidated cash flow statements for the years ended December 31, 2016, 2015 and 2014, respectively. As of December 31, 2016, a total of 99,000 Xome stock appreciation rights ("SARs") are outstanding and can be settled in cash or units of Xome Holdings LLC (at the election of Xome). The SARs generally vest over three years and have a ten year term. The SARs become exercisable and are recognized to expense upon a liquidity event at Xome which includes a change in control or an initial public offering of Xome. No expense was recorded for outstanding SARs in 2016, 2015 and 2014 as a liquidity event has not occurred. Equity From time to time, Nationstar raises capital through the issuance of its common stock based on market conditions and expected returns that can be provided to shareholders. During March 2015 , Nationstar completed an equity offering of 17.5 million shares for a total of $498 in cash proceeds. Nationstar used the net proceeds from this offering for expansion of its asset portfolio and general corporate purposes. In connection with a previously announced $250 share repurchase program, a total of 11.4 million shares of Company's common stock were repurchased, out of which 10.6 million and 0.8 million shares were repurchased under this plan during 2016 and 2015, respectively. On January 1, 2017 , Nationstar's Board of Directors approved the repurchase of up to $100 of the Company's common stock through December 31, 2017 . This program replaces the previous share repurchase program, which expired on December 16, 2016. On February 11, 2016 , Nationstar's Board of Directors authorized a tender offer via a modified Dutch auction for the repurchase of up to $100 of its common stock for a price between $8.20 and $9.40 per share. The auction expired on March 11, 2016 . During this period, we purchased 7,450 shares at a price of $9.40 per share. |
Capital Requirements
Capital Requirements | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Banking [Abstract] | |
Capital Requirements | Capital Requirements Certain of Nationstar’s secondary market investors require minimum net worth ("capital") requirements, as specified in the respective selling and servicing agreements. In addition, these investors may require capital ratios in excess of the stated requirements to approve large servicing transfers. To the extent that these requirements are not met, Nationstar's secondary market investors may utilize a range of remedies ranging from sanctions, suspension or ultimately termination of Nationstar's selling and servicing agreements, which would prohibit Nationstar from further originating or securitizing these specific types of mortgage loans or being an approved servicer. Among Nationstar's various capital requirements related to its outstanding selling and servicing agreements, the most restrictive of these requires Nationstar to maintain a minimum adjusted net worth balance of $1,000 . As of December 31, 2016 , Nationstar was in compliance with its selling and servicing capital requirements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 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 $64 , $54 , and $29 for the years ended December 31, 2016 , 2015 , and 2014 , respectively, were included in general and administrative expense on the consolidated statements of operations and comprehensive income. For a number of matters for which a loss is probable or reasonably possible in future periods, whether in excess of a related accrued liability or where there is no accrued liability, the Company may be able to estimate a range of possible loss. In determining whether it is possible to provide an estimate of loss or range of possible loss, the Company reviews and evaluates its material litigation and regulatory matters on an ongoing basis, in conjunction with any outside counsel handling the matter. For those matters for which an estimate is possible, management currently believes the aggregate range of reasonably possible loss is $24 to $61 in excess of the accrued liability (if any) related to those matters as of December 31, 2016 . This estimated range of possible loss is based upon currently available information and is subject to significant judgment, numerous assumptions and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary substantially from the current estimate. Those matters for which an estimate is not possible are not included within the estimated range. Therefore, this estimated range of possible loss represents what management believes to be an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company's maximum loss exposure 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 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. The Company is currently in negotiations with the CFPB regarding the payment of civil monetary penalties for the alleged failure to comply with the reporting requirements of the Home Mortgage Disclosure Act. Management does not believe that resolution of this matter would have a material effect on the Company’s results of operations or financial position During 2015, as part of an agreement with regulators, the Company provided refunds to certain borrowers of approximately $16 related to delays in consummating loan modifications that were transferred from prior servicers from 2012 through February 2015. The Company will be seeking recourse for some portion of these charges from various counterparties. While the Company has made changes to certain practices regarding the transfer of loan modifications, there can be no assurance that additional amounts will not be assessed as restitution to the borrowers or as a penalty. Other Loss Contingencies As part of the Company's ongoing operations, it acquires servicing rights of forward and reverse mortgage loan portfolios that are subject to indemnification based on the representations and warranties of the seller. From time to time, the Company will seek recovery under these representations and warranties for incurred costs. The Company believes all recorded balances sought from sellers represent valid claims. However, the Company acknowledges that the claims process can be a prolonged due to the required time to perfect claims at the loan level. Because of the required time to perfect or remediate these claims, management relies on the sufficiency of documentation supporting the claim, current negotiations with the counterparty and other evidence to evaluate whether a reserve is required for non-recoverable balances. In the absence of successful negotiations with the seller, all amounts claimed may not be recovered. Balances may be written-off and charged against earnings when management identifies amounts where recoverability from the seller is not likely. As of December 31, 2016, the Company believes all recorded balances for which recovery is sought from the seller are valid claims and there is no evidence suggesting additional reserves are warranted at this time. Lease Commitments Nationstar leases various corporate and other office facilities under non-cancelable lease agreements with primary terms extending through 2024 . These lease agreements generally provide for market-rate renewal options, and may provide for escalations in minimum rentals over the lease term. In 2014, Nationstar entered into a lease agreement for its corporate office located in Coppell, Texas. The lease term is for seven and a half years, with an early termination option available after the completion of five years . The lease agreement also provides a tenant improvement allowance as a lease incentive to apply against tenant improvement costs. Rental expense incurred during 2016 , 2015 and 2014 was $26 , $21 and $22 , respectively. Minimum future payments on noncancelable operating and capital leases are as follows: Year Ended December 31, Operating Leases Capital Leases 2017 $ 29 $ 6 2018 30 4 2019 24 2 2020 19 — 2021 and thereafter 30 — Total minimum lease payments 132 12 Less: Amounts representing interest — (1 ) Present value of minimum lease payments $ 132 $ 11 Loan and Other Commitments Nationstar enters into IRLCs with prospective borrowers whereby the Company commits to lend a certain loan amount under specific terms and interest rates to the borrower. Nationstar also enters into LPCs with prospective sellers. These loan commitments are treated as derivatives and are carried at fair value. See Note 9, Derivative Financial Instruments for more information. Nationstar has certain reverse MSRs and reverse mortgage interests related to approximately $38,940 of UPB in reverse mortgage loans. As servicer for these reverse mortgage loans, among other things, the Company is obligated to fund borrower draws to the loan customers as required in accordance with the loan agreement. As of December 31, 2016 , the Company’s maximum unfunded advance obligation to fund borrower draws related to these MSRs and loans was approximately $4,396 . Upon funding any portion of these draws, the Company expects to securitize and sell the advances in transactions that will be accounted for as secured borrowings. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges Nationstar periodically initiates programs to reduce costs and improve operating effectiveness in order to improve current operating performance and to respond to changes in the Company's business model. These cost reduction initiatives include the closing of offices and the termination of portions of Nationstar’s workforce. As part of these plans, Nationstar incurs lease and other contract termination costs. Restructuring charges of $5 , $13 , and $0 for the years ended December 31, 2016 , 2015 and 2014 , respectively, related to employee severance was recorded in salaries, wages and benefits. The following table summarizes, by category, the Company’s restructuring charges activity for the periods indicated below. Liability Balance at January 1 Restructuring Adjustments Restructuring Settlements Liability Balance at December 31 Year Ended December 31, 2016 Restructuring charges: Employee severance and other $ 9 $ 5 $ (9 ) $ 5 Lease terminations 1 — (1 ) — Total $ 10 $ 5 $ (10 ) $ 5 Year Ended December 31, 2015 Restructuring charges: Employee severance and other $ — $ 13 $ (4 ) $ 9 Lease terminations 4 — (3 ) 1 Total $ 4 $ 13 $ (7 ) $ 10 Year Ended December 31, 2014 Restructuring charges: Employee severance and other $ 5 $ — $ (5 ) $ — Lease terminations 8 — (4 ) 4 Total $ 13 $ — $ (9 ) $ 4 |
Business Segment Reporting
Business Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | Business Segment Reporting Nationstar’s segments are based upon Nationstar’s organizational structure which focuses primarily on the services offered. The accounting policies of each reportable segment are the same as those of Nationstar except for (1) expenses for consolidated back-office operations and general overhead-type expenses such as executive administration and accounting, and (2) revenues generated on inter-segment services performed. Expenses are allocated to individual segments based on the estimated value of services performed, including estimated utilization of square footage and corporate personnel as well as the equity invested in each segment. Revenues generated or inter-segment services performed are valued based on similar services provided to external parties. To reconcile to Nationstar’s consolidated results, certain inter-segment revenues and expenses are eliminated in the “Eliminations” column in the following tables. During the second quarter of 2015, Nationstar reclassified a small portion of Xome segment activity involved with loss recovery to the Servicing segment to better align with how management is reviewing business results. All periods presented reflect this reclassification. Nationstar reclassified $9 of operating income from the Xome segment to the Servicing segment earned during 2014. The following tables present financial information by segment. Year Ended December 31, 2016 Servicing Originations Xome Eliminations Total Operating Corporate and Other Consolidated Revenues: Service related, net $ 753 $ 59 $ 423 $ (118 ) $ 1,117 $ 1 $ 1,118 Net gain on mortgage loans held for sale — 679 — 118 797 — 797 Total revenues 753 738 423 — 1,914 1 1,915 Total expenses 645 533 354 — 1,532 112 1,644 Other income (expenses): Interest income 347 63 — — 410 15 425 Interest expense (442 ) (58 ) — — (500 ) (165 ) (665 ) Other expense — (1 ) — — (1 ) (1 ) (2 ) Total other income (expenses), net (95 ) 4 — — (91 ) (151 ) (242 ) Income (loss) before income tax expense (benefit) $ 13 $ 209 $ 69 $ — $ 291 $ (262 ) $ 29 Depreciation and amortization $ 23 $ 11 $ 21 $ — $ 55 $ 8 $ 63 Total assets $ 16,189 $ 4,563 $ 349 $ (2,448 ) $ 18,653 $ 940 $ 19,593 Year Ended December 31, 2015 Servicing Originations Xome Eliminations Total Operating Segments Corporate and Other Consolidated Revenues: Service related, net $ 882 $ 51 $ 437 $ (67 ) $ 1,303 $ 2 $ 1,305 Net gain on mortgage loans held for sale — 615 — 67 682 2 684 Total revenues 882 666 437 — 1,985 4 1,989 Total expenses 788 469 358 — 1,615 73 1,688 Other income (expenses): Interest income 268 67 — — 335 16 351 Interest expense (377 ) (58 ) — — (435 ) (170 ) (605 ) Other income (expense) (1 ) — — — (1 ) 8 7 Total other income (expenses), net (110 ) 9 — — (101 ) (146 ) (247 ) Income (loss) before income tax expense (benefit) $ (16 ) $ 206 $ 79 $ — $ 269 $ (215 ) $ 54 Depreciation and amortization $ 21 $ 12 $ 14 $ — $ 47 $ 6 $ 53 Total assets $ 14,244 $ 1,398 $ 304 $ — $ 15,946 $ 671 $ 16,617 Year Ended December 31, 2014 Servicing Originations Xome Eliminations Total Operating Segments Corporate and Other Consolidated Revenues: Service related, net $ 1,088 $ 44 $ 305 $ (65 ) $ 1,372 $ 4 $ 1,376 Net gain on mortgage loans held for sale — 535 — 65 600 (3 ) 597 Total revenues 1,088 579 305 — 1,972 1 1,973 Total expenses 705 390 182 — 1,277 81 1,358 Other income (expenses): Interest income 92 72 — — 164 16 180 Interest expense (246 ) (70 ) — — (316 ) (200 ) (516 ) Other income 1 — — — 1 6 7 Total other income (expenses), net (153 ) 2 — — (151 ) (178 ) (329 ) Income (loss) before income tax expense (benefit) $ 230 $ 191 $ 123 $ — $ 544 $ (258 ) $ 286 Depreciation and amortization $ 15 $ 9 $ 4 $ — $ 28 $ 12 $ 40 Total assets $ 8,786 $ 1,398 $ 196 $ — $ 10,380 $ 689 $ 11,069 |
Guarantor Financial Statement I
Guarantor Financial Statement Information | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Guarantor Financial Statement Information | Guarantor Financial Statement Information As of December 31, 2016, Nationstar Mortgage LLC and Nationstar Capital Corporation (1) (collectively, the Issuer), both wholly-owned subsidiaries of Nationstar, have issued $1,990 aggregate principal amount of unsecured senior notes, net of repayments, which mature on various dates through June, 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 DECEMBER 31, 2016 Nationstar Issuer Guarantor (Subsidiaries) Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ — $ 453 $ 2 $ 34 $ — $ 489 Restricted cash — 159 — 229 — 388 Mortgage servicing rights — 3,142 — 24 — 3,166 Advances and other receivables, net — 1,749 — — — 1,749 Reverse mortgage interests, net — 10,316 — 717 — 11,033 Mortgage loans held for sale at fair value — 1,787 — 1 — 1,788 Mortgage loans held for investment, net — 1 — 150 — 151 Property and equipment, net — 113 — 23 — 136 Derivative financial instruments at fair value — 133 — — — 133 Other assets — 444 323 838 (1,045 ) 560 Investment in subsidiaries 1,801 634 — — (2,435 ) — Total assets $ 1,801 $ 18,931 $ 325 $ 2,016 $ (3,480 ) $ 19,593 Liabilities and stockholders' equity Unsecured senior notes, net $ — $ 1,990 $ — $ — $ — $ 1,990 Advance facilities, net — 187 — 909 — 1,096 Warehouse facilities, net — 2,421 — — — 2,421 Payables and accrued liabilities — 1,420 2 48 — 1,470 MSR related liabilities - nonrecourse at fair value — 1,219 — 22 — 1,241 Mortgage servicing liabilities — 48 — — — 48 Derivative financial instruments at fair value — 13 — — — 13 Other nonrecourse debt, net — 8,907 — 724 — 9,631 Payables to affiliates 118 925 — 2 (1,045 ) — Total liabilities 118 17,130 2 1,705 (1,045 ) 17,910 Total stockholders' equity 1,683 1,801 323 311 (2,435 ) 1,683 Total liabilities and stockholders' equity $ 1,801 $ 18,931 $ 325 $ 2,016 $ (3,480 ) $ 19,593 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2016 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related, net $ — $ 654 $ 33 $ 431 $ — $ 1,118 Net gain on mortgage loans held for sale — 768 — 29 — 797 Total revenues — 1,422 33 460 — 1,915 Expenses: Salaries, wages benefits — 601 5 207 — 813 General and administrative — 617 8 206 — 831 Total expenses — 1,218 13 413 — 1,644 Other income (expenses): Interest income — 375 — 50 — 425 Interest expense — (592 ) — (73 ) — (665 ) Other expense — (2 ) — — — (2 ) Gain (loss) from subsidiaries 19 44 — — (63 ) — Total other income (expenses), net 19 (175 ) — (23 ) (63 ) (242 ) Income (loss) before income tax expense (benefit) 19 29 20 24 (63 ) 29 Less: income tax expense — 13 — — — 13 Net income (loss) 19 16 20 24 (63 ) 16 Less: net loss attributable to noncontrolling interests — (3 ) — — — (3 ) Net income (loss) attributable to Nationstar $ 19 $ 19 $ 20 $ 24 $ (63 ) $ 19 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2016 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating Activities Net income (loss) attributable to Nationstar $ 19 $ 19 $ 20 $ 24 $ (63 ) $ 19 Reconciliation of net income (loss) to net cash attributable to operating activities: Noncontrolling interest — (3 ) — — — (3 ) (Gain)/loss from subsidiaries (19 ) (44 ) — — 63 — Net gain on mortgage loans held for sale — (768 ) — (29 ) — (797 ) Provision for servicing reserves — 124 — — — 124 Fair value changes and amortization of mortgage servicing rights — 484 — — — 484 Fair value changes in mortgage loans held for sale — 15 — — — 15 Fair value changes in excess spread financing — 3 — 22 — 25 Fair value changes in mortgage servicing rights financing liability — (42 ) — — — (42 ) Amortization (accretion) of premiums (discounts) — (9,907 ) — 9,971 — 64 Depreciation and amortization — 43 — 20 — 63 Shared based compensation — 15 — 6 — 21 Loss on impairment of assets — 25 — — — 25 Other (gain) loss — 2 — — — 2 Repurchases of forward loans assets out of Ginnie Mae securitizations — (1,432 ) — — — (1,432 ) Mortgage loans originated and purchased, net of fees — (19,612 ) — (794 ) — (20,406 ) Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment — 31,024 — (8,993 ) — 22,031 Excess tax benefit (deficiency) from share based compensation — 4 — — — 4 Changes in assets and liabilities: Advances and other receivables, net — 566 — — — 566 Reverse mortgage interests, net — 281 — (35 ) — 246 Other assets 117 (741 ) (21 ) 586 — (59 ) Payables and accrued liabilities — 41 1 (21 ) — 21 Net cash attributable to operating activities 117 97 — 757 — 971 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing Activities Property and equipment additions, net of disposals — (55 ) 1 (8 ) — (62 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (120 ) — (24 ) — (144 ) Purchase of reverse mortgage interests — (3,600 ) — — — (3,600 ) Proceeds on sale of forward and reverse mortgage servicing rights — 68 — — — 68 Net cash attributable to investing activities — (3,707 ) 1 (32 ) — (3,738 ) Financing Activities Increase (decrease) in warehouse facilities — 637 — (108 ) — 529 Proceeds from HECM securitizations — (4 ) — 728 — 724 Repayment of HECM securitizations — — — (713 ) — (713 ) Increase in participating interest financing in reverse mortgage interests — 2,939 — — — 2,939 Decrease in advance facilities — (51 ) — (499 ) — (550 ) Repayment of excess spread financing — (198 ) — — — (198 ) Issuance of excess spread financing — 155 — — — 155 Repayment of nonrecourse debt - legacy assets — — — (18 ) — (18 ) Repurchase of unsecured senior notes — (40 ) — — — (40 ) Repurchase of common stock (114 ) — — — — (114 ) Transfers (to) from restricted cash, net — 45 — (96 ) — (51 ) Excess tax (deficiency) benefit from share based compensation — (4 ) — — — (4 ) Surrender of shares relating to stock vesting (3 ) — — — — (3 ) Debt financing costs — (13 ) — — — (13 ) Net cash attributable to financing activities (117 ) 3,466 — (706 ) — 2,643 Net increase (decrease) in cash — (144 ) 1 19 — (124 ) Cash and cash equivalents at beginning of year — 597 1 15 — 613 Cash and cash equivalents at end of year $ — $ 453 $ 2 $ 34 $ — $ 489 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2015 Nationstar Issuer Guarantor Non-Guarantor 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 at fair value — 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 at fair value — 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, net $ — $ 2,026 $ — $ — $ — $ 2,026 Advance facilities, net — 232 — 1,408 — 1,640 Warehouse facilities, net — 1,782 — 108 — 1,890 Payables and accrued liabilities 4 1,222 1 69 — 1,296 MSR related liabilities - nonrecourse at fair value — 1,301 — — — 1,301 Mortgage servicing liabilities — 25 — — — 25 Derivative financial instruments at fair value — 6 — — — 6 Other nonrecourse debt, net — 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 stockholders' equity 1,767 1,768 303 207 (2,278 ) 1,767 Total liabilities and stockholders' equity $ 1,771 $ 16,042 $ 305 $ 2,658 $ (4,159 ) $ 16,617 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related, net $ — $ 846 $ 17 $ 442 $ — $ 1,305 Net gain on mortgage loans held for sale — 640 — 44 — 684 Total revenues — 1,486 17 486 — 1,989 Expenses: Salaries, wages and benefits — 540 5 218 — 763 General and administrative — 737 3 185 — 925 Total expenses — 1,277 8 403 — 1,688 Other income (expenses): Interest income — 311 — 40 — 351 Interest expense — (534 ) — (71 ) — (605 ) Other income (expense) — 8 — (1 ) — 7 Gain (loss) from subsidiaries 39 60 — — (99 ) — Total other income (expenses), net 39 (155 ) — (32 ) (99 ) (247 ) Income (loss) before income tax expense (benefit) 39 54 9 51 (99 ) 54 Less: income tax expense — 11 — — — 11 Net income (loss) 39 43 9 51 (99 ) 43 Less: net income attributable to noncontrolling interests — 4 — — — 4 Net income (loss) attributable to Nationstar $ 39 $ 39 $ 9 $ 51 $ (99 ) $ 39 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating Activities Net income attributable to Nationstar $ 39 $ 39 $ 9 $ 51 $ (99 ) $ 39 Reconciliation of net loss to net cash attributable to operating activities: Noncontrolling interest — 4 — — — 4 (Gain)/loss from subsidiaries (39 ) (60 ) — — 99 — Net gain on mortgage loans held for sale (639 ) — (45 ) — (684 ) Provision for servicing reserves — 51 — — — 51 Fair value changes and amortization of mortgage servicing rights — 460 — — — 460 Fair value changes in mortgage loans held for sale — 1 — — — 1 Fair value changes in excess spread financing — 26 — — — 26 Fair value changes in mortgage servicing rights financing liability — 19 — — — 19 Amortization (accretion) of premiums (discounts) — 2 — (4 ) — (2 ) Depreciation and amortization — 40 — 13 — 53 Shared based compensation — 13 — 7 — 20 Other (gain) loss — (8 ) — 1 — (7 ) Repurchases of forward loans assets out of Ginnie Mae securitizations — (1,865 ) — — — (1,865 ) Mortgage loans originated and purchased, net of fees — (16,827 ) — (1,144 ) — (17,971 ) Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment — 18,926 — 1,118 — 20,044 Changes in assets and liabilities: Advances and other receivables, net — 470 — 2 — 472 Reverse mortgage interests, net — 56 — (341 ) — (285 ) Other assets 13 220 (9 ) (121 ) — 103 Payables and accrued liabilities — (67 ) 1 9 — (57 ) Net cash attributable to operating activities 13 861 1 (454 ) — 421 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing Activities Property and equipment additions, net of disposals — (36 ) — (21 ) — (57 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (715 ) — — — (715 ) Purchase of reverse mortgage interests — (4,816 ) — — — (4,816 ) Proceeds on sale of forward and reverse mortgage servicing rights — 44 — — — 44 Business acquisitions, net — — — (46 ) — (46 ) Net cash attributable to investing activities — (5,523 ) — (67 ) — (5,590 ) Financing Activities Increase (decrease) in warehouse facilities — 245 — 76 — 321 Proceeds from HECM securitizations — — — 560 — 560 Repayment of HECM securitizations — — — (161 ) — (161 ) Increase (decrease) in participating interest financing in reverse mortgage interests — 4,541 — — — 4,541 Increase (decrease) in advance facilities — (333 ) — 77 — (256 ) Repayment of excess spread financing — (210 ) — — — (210 ) Issuance of excess spread financing — 386 — — — 386 Repayment of nonrecourse debt - legacy assets — (2 ) — (11 ) — (13 ) Repurchase of unsecured senior notes — (103 ) — — — (103 ) Repurchase of common stock (7 ) — — — — (7 ) Issuance of common stock, net of issuance costs — 498 — — — 498 Transfers (to) from restricted cash, net — (22 ) — (24 ) — (46 ) Surrender of shares relating to stock vesting (6 ) — — — — (6 ) Debt financing costs — (21 ) — — — (21 ) Net cash attributable to financing activities (13 ) 4,979 — 517 — 5,483 Net increase (decrease) in cash and cash equivalents — 317 1 (4 ) — 314 Cash and cash equivalents at beginning of year — 280 — 19 — 299 Cash and cash equivalents at end of year $ — $ 597 $ 1 $ 15 $ — $ 613 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2014 Nationstar Issuer Guarantor Non-Guarantor (Subsidiaries) Eliminations Consolidated Revenues: Service related, net $ — $ 1,030 $ 48 $ 298 $ — $ 1,376 Net gain on mortgage loans held for sale — 584 — 13 — 597 Total revenues — 1,614 48 311 — 1,973 Expenses: Salaries wages and benefits — 556 5 82 — 643 General and administrative — 587 2 126 — 715 Total expenses — 1,143 7 208 — 1,358 Other income (expenses): Interest income — 159 — 21 — 180 Interest expense — (461 ) — (55 ) — (516 ) Other expense — 5 — 2 — 7 Gain (loss) from subsidiaries 221 112 — — (333 ) — Total other income (expenses), net 221 (185 ) — (32 ) (333 ) (329 ) Income (loss) before income tax expense (benefit) 221 286 41 71 (333 ) 286 Less: income tax expense — 65 — — — 65 Net income (loss) 221 221 41 71 (333 ) 221 Less: net income (loss) attributable to noncontrolling interests — — — — — — Net income (loss) attributable to Nationstar $ 221 $ 221 $ 41 $ 71 $ (333 ) $ 221 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2014 Nationstar Issuer Guarantor Non- Eliminations Consolidated Operating Activities Net income attributable to Nationstar $ 221 $ 221 $ 41 $ 71 $ (333 ) $ 221 Reconciliation of net loss to net cash attributable to operating activities: (Gain)/loss from subsidiaries (221 ) (112 ) — — 333 — Net gain on mortgage loans held for sale — (584 ) — (13 ) — (597 ) Provision for servicing reserves — 86 — — — 86 Fair value changes and amortization of mortgage servicing rights — 234 — — — 234 Fair value changes in mortgage loans held for sale — (12 ) — — — (12 ) Fair value changes in excess spread financing — 57 — — — 57 Fair value changes in mortgage servicing rights financing liability — (33 ) — — — (33 ) Amortization (accretion) of premiums (discounts) — 13 — (2 ) — 11 Depreciation and amortization — 36 — 4 — 40 Shared based compensation — 19 — — — 19 Other (gain) loss — (2 ) — 6 — 4 Repurchases of forward loans assets out of Ginnie Mae securitizations — (3,692 ) — — — (3,692 ) Mortgage loans originated and purchased, net of fees — (17,138 ) — — — (17,138 ) Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment — 22,142 — (6 ) — 22,136 Excess tax benefit (deficiency) from share based compensation — (2 ) — — — (2 ) Changes in assets and liabilities: Advances and other receivables, net — 259 — (3 ) — 256 Reverse mortgage interests, net — (644 ) — (376 ) — (1,020 ) Other assets 5 (1,611 ) (39 ) 2,206 (31 ) 530 Payables and accrued liabilities — (71 ) (6 ) 26 31 (20 ) Net cash attributable to operating activities 5 (834 ) (4 ) 1,913 — 1,080 Nationstar Issuer Guarantor Non- Eliminations Consolidated Investing Activities Property and equipment additions, net of disposals — (41 ) — (15 ) — (56 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (471 ) — — — (471 ) Proceeds on sale of servicer advances — 768 — — — 768 Proceeds from sale of building — 10 — — — 10 Business acquisitions, net — (16 ) — (2 ) — (18 ) Net cash attributable to investing activities — 250 — (17 ) — 233 Financing Activities Increase (decrease) in warehouse facilities — 228 — (1,088 ) — (860 ) Proceeds from HECM securitizations — — — 269 — 269 Repayment of HECM securitizations — — — (10 ) — (10 ) Increase (decrease) in participating interest financing in reverse mortgage interests — 353 — — — 353 Increase (decrease) in advance facilities — — — (1,221 ) — (1,221 ) Repayment of excess spread financing — (184 ) — — — (184 ) Issuance of excess spread financing — 171 — — — 171 Proceeds from mortgage servicing rights financing — 53 — — — 53 Repayment of nonrecourse debt - legacy assets — — — (15 ) — (15 ) Repurchase of unsecured senior notes — (285 ) — — — (285 ) Transfers (to) from restricted cash, net — 119 — 172 — 291 Excess tax (deficiency) benefit from share based compensation — 2 — — — 2 Surrender of shares relating to stock vesting (5 ) — — — — (5 ) Debt financing costs — (15 ) — — — (15 ) Net cash attributable to financing activities (5 ) 442 — (1,893 ) — (1,456 ) Net increase/(decrease) in cash — (142 ) (4 ) 3 — (143 ) Cash and cash equivalents at beginning of year — 422 4 16 — 442 Cash and cash equivalents at end of year $ — $ 280 $ — $ 19 $ — $ 299 |
Transactions with Affiliates
Transactions with Affiliates | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates | 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 years ended December 31, 2016, 2015 and 2014, the Company earned revenues from affiliates of Fortress totaling $10 , $10 and $13 , 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 0.50% per annum on the unpaid principal balance of the Portfolios, which was $576 , $658 and $762 , as of December 31, 2016, 2015, and 2014, respectively. For the years ended 2016, 2015 and 2014, Nationstar received servicing fees and other performance incentive fees of $3 , $4 and $4 , 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 on the outstanding liability related to these agreements was $1,064 and $1,232 at December 31, 2016 and 2015, respectively. Fees paid to New Residential Entity totaled $290 , $294 , and $277 for years ended December 31, 2016, 2015 and 2014, respectively. 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 a joint venture capitalized by New Residential and certain unaffiliated third-party investors. 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. The 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 $27 and $69 at December 31, 2016 and 2015, respectively. Nationstar did not enter into any additional supplemental agreements with these affiliates in 2016 and 2015. Other In May 2014, Nationstar entered into a servicing arrangement with New Residential whereby Nationstar will service residential mortgage loans that New Residential and/or its various affiliates and trust entities acquire. For the years ended December 31, 2016, 2015 and 2014 Nationstar recognized revenue of $5 , $4 , and $4 related to these servicing arrangements, respectively. Nationstar acted as servicer or master servicer for the collapse of certain securitization trusts pursuant to New Residential exercising its clean up call rights. For the years ended December 31, 2016, 2015 and 2014, Nationstar earned revenue of $1 , $0 , and $0 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, a subsidiary of New Residential, to sell a participating interest amounting to 70% 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 $0.3 , $0.3 , and $0.3 for the years ended December 31, 2016, 2015, and 2014, 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 years ended December 31, 2016, 2015, and 2014, Nationstar recognized revenue of $1 , $2 and $5 , respectively, in additional servicing and other performance incentive fees related to these portfolios. Amounts outstanding from OneMain Financial Holdings, LLC as of December 31, 2016 and 2015 were $2 , and $0 , respectively. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | The unaudited quarterly consolidated results of operations are summarized in the tables below. Year Ended December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Service related revenue, net $ 84 $ 113 $ 305 $ 616 Net gain on mortgage loans held for sale 171 216 237 173 Total revenues 255 329 542 789 Total expenses 412 413 407 412 Total other income (expense), net (58 ) (60 ) (64 ) (60 ) Income (loss) before income tax expense (benefit) (215 ) (144 ) 71 317 Less: Income tax expense (benefit) (82 ) (53 ) 29 119 Net income (loss) (133 ) (91 ) 42 198 Less: Net income (loss) attributable to noncontrolling interests (1 ) 1 (3 ) — Net income (loss) attributable to Nationstar $ (132 ) $ (92 ) $ 45 $ 198 Net income (loss) per common share attributable to common stockholders: Basic $ (1.28 ) $ (0.92 ) $ 0.46 $ 2.02 Diluted $ (1.28 ) $ (0.92 ) $ 0.46 $ 2.01 Year Ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Service related revenue, net $ 215 $ 458 $ 211 $ 421 Net gain on mortgage loans held for sale 167 164 186 167 Total revenues 382 622 397 588 Total expenses 384 441 446 417 Total other income (expense), net (73 ) (61 ) (63 ) (50 ) Income (loss) before income tax expense (benefit) (75 ) 120 (112 ) 121 Less: Income tax expense (benefit) (28 ) 44 (47 ) 42 Net income (loss) (47 ) 76 (65 ) 79 Less: Net income attributable to noncontrolling interests 2 1 1 — Net income (loss) attributable to Nationstar $ (49 ) $ 75 $ (66 ) $ 79 Net income (loss) per common share attributable to common shareholders: Basic $ (0.54 ) $ 0.69 $ (0.62 ) $ 0.85 Diluted $ (0.54 ) $ 0.69 $ (0.62 ) $ 0.84 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In January 2017, the Company entered into a subservicing agreement with a subsidiary of New Residential. Under the agreement, Nationstar will subservice approximately $111 billion UPB that New Residential has agreed to purchase, including approximately $97 billion UPB of MSRs from CitiMortgage, Inc. The Company anticipates boarding the loans between the second and fourth quarters of 2017. |
Significant Accounting Polici33
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of Nationstar have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). The significant accounting policies described below, together with the other notes that follow, are an integral part of the consolidated financial statements. |
Basis of Consolidation | 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. 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. |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates due to factors such as adverse changes in the economy, increases in interest rates, secondary market pricing for loans held for sale and derivatives, strength of underwriting and servicing practices, changes in prepayment assumptions, declines in home prices or discrete events adversely affecting specific borrowers, and such differences could be material. |
Reclassifications | Reclassifications During 2016, the Company reclassified certain assets in its previously reported consolidated balance sheet as of December 31, 2015, to more closely align assets due from agencies and investors from other assets to advances and other receivables, net. In addition, the Company reclassified unamortized debt issuance costs 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 , 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 and Recent Accounting Guidance Not Yet Adopted | Recent Accounting Guidance Adopted Effective January 1, 2016, the Company prospectively 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 performance targets affecting 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 to 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 above 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 clarifies 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. Effective December 31, 2016, the Company prospectively adopted 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). This update provides a definition of the term substantial doubt and requires an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). It also requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans and requires an express statement and other disclosures when substantial doubt is not alleviated. The adoption of ASU 2014-15 did not impact our assessment of the Company's ability to continue as a going concern or our disclosures in the consolidated financial statements. Recent Accounting Guidance Not Yet Adopted Accounting Standards Update No. 2014-09, 2016-08, 2016-10, 2016-12 and 2016-20, collectively implemented as FASB Accounting Standards Codification Topic 606 ("ASC 606") Revenue from Contracts with Customers, provides guidance for revenue recognition. This ASC’s core principle requires a company to 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 standard also clarifies the principal versus agent considerations, providing the evaluation must focus on whether the entity has control of the goods or services before they are transferred to the customer. The new standard permits the use of either the modified retrospective or full retrospective transition method. The Company's revenue is generated from loan servicing, loan originations, and services provided by Xome. Servicing revenue is comprised of servicing fees and other ancillary fees in connection with our servicing activities as well as fees earned under subservicing arrangements. Origination revenue is comprised of fee income earned at origination of a loan, interest income earned for the period the loans are held, and gain on sale on loans upon disposition of the loan. Xome's revenue is comprised of income earned from real estate exchange, real estate services and real estate technology and support. We have performed a preliminary review of the new guidance as compared to our current accounting policies, and we are currently evaluating all services rendered to our customers as well as underlying contracts to determine the impact of this standard to our revenue recognition process. The majority of services rendered by the Company in connection with originations and servicing are not within the scope of ASC 606. However, through our review, we have identified three service offerings within the scope of ASC 606, under Xome. Total revenue recorded in 2016 associated with these service offerings totaled $423 . Although revenue recognition may be impacted to some degree for these service offerings, we do not anticipate the impact to be materially different from the current revenue recognition processes. The Company expects to adopt the standard in the first quarter of 2018 with a cumulative effect adjustment to opening retained earnings, if such adjustment is deemed to be significant. 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 interim 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 with terms 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 interim periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of this ASU on the consolidated financial statements. If the same lease obligations that are in existence as of December 31, 2016 were also in existence at the time of implementation of this standard, we would expect the additional assets and lease obligations to be added to the consolidated balance sheets upon implementation to approximate $118 . The Company is currently evaluating the impact of this new standard to its debt covenants and capitalization requirements. 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 of cash flows. ASU 2016-09 is effective for interim periods beginning after December 15, 2016. Upon adoption, the Company will recognize the incremental income tax windfall (excess tax compensation) or shortfall (excess book compensation) related to restricted share unit vesting in the statement of operations and comprehensive income, whereas these tax effects are presently recognized directly in shareholders' equity. For presentation purposes, the incremental tax windfall or shortfall associated with these events will be classified as a cash inflow from operating activity as compared with a financing activity, as required under current guidance. Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (ASU 2016-13), requires expected credit losses for financial instruments held at the reporting date to be measured 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 interim periods beginning after December 15, 2019. The Company is currently evaluating the potential impact of ASU 2016-13 on its consolidated financial statements. Accounting Standards Update No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15) and Accounting Standards Update No 2016-18 Statement of Cash Flows (Topic 230) Restricted Cash (ASU 2016-18) both relate to the Statement of Cash Flows (Topic 230) and are intended to provide specific guidance to reduce the diversity in practice. ASU 2016-15, addresses the following eight cash flow classification issues: (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of life insurance claims, (5) proceeds from the settlement of corporate owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transactions and (8) separately identifiable cash flows and application of the predominance principle. 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 classification of cash flows. ASU 2016-18 addresses the classification and presentation of changes in restricted cash on the statement of cash flows. This new standard requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. ASU 2016-18 will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2016-18 on its consolidated financial statements. Accounting Standards Update No. 2016-17, Consolidation (Topic 810): Interests held through Related Parties that are under Common Control (ASU 2016-17), which alters how a decision maker needs to consider indirect interests in a variable interest entity held through an entity under common control and simplifies the analysis to require consideration of only an entity’s proportionate indirect interest in a VIE held through a common control party. ASU 2016-17 amends ASU 2015-02, Consolidations (Topic 810): Amendments to the Consolidation Analysis , which was not effective for the Company in the current fiscal year. ASU 2016-17 will be effective for interim periods beginning after December 15, 2017. The Company is currently evaluating the potential impact of ASU 2016-17 on our consolidated financial statements. Accounting Standards Update No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the standard suggests that the set of transferred assets and activities is not a business. The guidance requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in ASC 606. The ASU is effective for interim periods beginning after December 15, 2017. The Company is currently evaluating the potential impact of ASU 2017-01 on our consolidated financial statements. Accounting Standards Update No. 2017-04, Simplifying the Test for Goodwill Impairment , simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in today’s two-step impairment test under Accounting Standards Codification (ASC) 350. The standard has tiered effective dates, starting in 2020 for calendar-year public business entities that meet the definition of an SEC filer. Early adoption is permitted for annual and interim goodwill impairment testing dates after 1 January 2017. The Company is currently evaluating the potential impact of ASU 2017-04 on our consolidated financial statements. The amendments is effective for the Company for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The amendments should be adopted prospectively. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include unrestricted cash on hand and other interest-bearing investments with original maturity dates of 90 days or less. |
Restricted Cash | Restricted Cash With respect to our Originations segment, restricted cash includes (i) principal received from borrowers on originated loans pledged to a warehouse facility and (ii) guarantee fees collected on behalf and payable to either Fannie Mae or Freddie Mac on a monthly basis. With respect to our Servicing segment, restricted cash includes recoveries received from borrowers or investors on advances pledged to advance facilities and to advance facilities structured as special purposes entities that require certain level of restricted cash. |
Advances and Other Receivables, Net | Advances and Other Receivables, Net The Company advances funds to or on behalf of the investor when the borrower fails to meet contractual payments (e.g., principal, interest, property taxes, insurance) in accordance with terms of our servicing agreements. The Company also advances funds to maintain and market underlying loan collateral through foreclosure and ultimate liquidation on behalf of the investors. Advances are recovered from borrowers for performing loans and from the investors for non-performing loans. Nationstar may also acquire servicer advances in connection with the acquisition of MSR. These advances are recorded at their relative fair value amounts upon acquisition. The Company records receivables upon determining that collection of amounts due from investors, mortgage insurers, or prior servicers is probable. Reserves related to recoverability of advances and other receivables are discussed below in Reserves for Forward Servicing Activity. |
Mortgage Loans Held for Sale/Net Gain on Mortgage Loans Held for Sale | Net Gain on Mortgage Loans Held for Sale Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been legally isolated from Nationstar, (ii) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) Nationstar does not maintain effective control over the transferred assets through either (a) an agreement that entitles and obligates Nationstar to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the holder to return specific assets. Loan securitizations structured as sales, as well as whole loan sales and the resulting gains on such sales, net of any accrual for recourse obligations, are reported in operating results during the period in which the securitization closes or the sale occurs. Mortgage Loans Held for Sale Nationstar originates prime residential mortgage loans with the intention of selling such loans on a servicing-retained basis in the secondary market. As these loans are originated with intent to sell, the loans are classified as held for sale and the Company has elected to measure these loans held for sale at fair value. Nationstar estimates fair value of mortgage loans held for sale by evaluating a variety of market indicators, including recent trades and outstanding commitments, calculated on an aggregate basis. In connection with Nationstar’s election to measure originated mortgage loans held for sale at fair value, Nationstar records the loan originations fees, net of direct loan originations costs associated with these loans when earned. Origination fees, the net gain on sale of loans, and fair value adjustments are recorded in net gain on sale of mortgage loans held for sale in the consolidated statements of operations and comprehensive income. The Company may repurchase loans that were previously transferred to Ginnie Mae if that loan meets certain criteria, including being delinquent greater than 90 days. Nationstar has the intention of selling such loans and has classified as loans held for sale and has elected to measure these repurchased loans at fair value. |
Mortgage Loans Held for Investment, Net | Mortgage Loans Held for Investment, Net Mortgage loans held for investment primarily consist of nonconforming or subprime mortgage loans that were transferred in 2009 from mortgage loans held for sale at fair value. The difference between the undiscounted cash flows expected and the investment in the loan is recognized as interest income on a level-yield method over the life of the loan. Increases in expected cash flows subsequent to the transfer are recognized prospectively through adjustment of the yield on the loans over the remaining life. Decreases in expected cash flows subsequent to transfer are recognized as a valuation allowance. A valuation allowance is established by recording a provision for loan losses in the consolidated statements of operations and comprehensive income when management believes a loss has occurred on a loan held for investment. When management determines that a loan held for investment is partially or fully uncollectible, the estimated loss is charged against the allowance for loan losses. Recoveries on losses previously charged to the allowance are credited to the allowance at the time the recovery is collected. |
Reverse Mortgage Interests, Net | Reverse Mortgage Interests, Net Reverse mortgage interests are comprised of Nationstar’s interest in reverse mortgage loans (either securitized or unsecuritized) as well as related claims receivables and REO. Nationstar primarily acquires and services interests in reverse mortgage loans insured by the Federal Housing Administration ("FHA") known as Home Equity Conversion Mortgages ("HECMs"). HECMs provide seniors aged 62 and older with a loan secured by their home and can be taken as a lump sum, line of credit, or scheduled payments. HECM loan balances grow over the loan term through borrower draws of scheduled payments or line of credit draws as well as through the accrual of interest and FHA mortgage insurance premiums. In accordance with FHA guidelines, HECMs are designed to repay through foreclosure and subsequent liquidation of loan collateral after the loan becomes due and payable. Any shortfalls experienced by the servicer of the HECM through the foreclosure and liquidation process can be claimed to FHA in accordance with applicable guidelines. Nationstar records acquired reverse mortgage interests assets and related obligations assumed at relative fair value on the acquisition date. Any premium or discount associated with the recording of the assets is accreted or amortized into interest income, respectively as the underlying HECMs are liquidated. As the HECM loan moves through the foreclosure and claims process, the Company classifies reverse mortgage interests as REO and HECM related receivables, respectively. Borrower draws, mortgage insurance premiums funded by Nationstar, and the accrual of interest are capitalized and recorded as reverse mortgage interests on the Company's consolidated balance sheets. On the consolidated statements of operations and comprehensive income, interest income is accrued monthly based upon the borrower interest rates. Nationstar includes the cash outflow from funding these amounts as operating activities in the consolidated statements of cash flow as a component of reverse mortgage interests. Nationstar is an authorized Ginnie Mae HECM mortgage-backed security (“HMBS”) program issuer and servicer. In accordance with Ginnie Mae HMBS program guidelines, borrower draws of scheduled payments or line of credit draws, interest accruals, and mortgage insurance premium accruals are eligible for HMBS participation securitizations as each of these items increases underlying HECM loan balances. Nationstar pools and securitizes such eligible items into Ginnie Mae HMBS as issuer and servicer. In accordance with the HMBS program, issuers are responsible for purchasing HECM loans out of the HMBS pool when the outstanding principal balance of the related HECM loan is equal or greater than 98% of the maximum claim amount at which point the HECM loans are no longer eligible to remain in the HMBS pool. Upon purchase from the HMBS pool, the Company will assign active HECM loans to FHA or service inactive HECM loans through foreclosure and liquidation. Based upon the structure of the Ginnie Mae HMBS program, the Company has determined that the securitzations of the HECM loans into HMBS pools do not meet all requirements for sale accounting. Accordingly, these transactions are accounted for as secured borrowings. If the Company has repurchased an inactive HECM loan that cannot be assigned to FHA, the Company may pool and securitize these loans into a private HECM securitization. These securitizations are also recorded as secured borrowings on the consolidated balance sheets. Interest expense on the participating interest financing is accrued monthly based upon the underlying HMBS rates and is recorded to interest expense in the consolidated statements of operations and comprehensive income. Both the acquisition and assumption of HECM loans and related Ginnie Mae HMBS debt are presented as investing and financing activities, respectively, in the consolidated statements of cash flows. Subsequent proceeds received from securitizations and subsequent repayments on the securitized debt are presented as financing activities in the consolidated statements of cash flows. Reserves related to recoverability of reverse mortgage interests are discussed below in Reserves for Reverse Mortgage Interests. |
Mortgage Servicing Rights (MSRs) | Mortgage Servicing Rights (MSRs) Nationstar recognizes as assets the rights to service mortgage loans for others, or MSRs, whether acquired or as a result of the sale of loans Nationstar originates with servicing retained. Nationstar initially records all MSRs at relative fair value. MSRs related to reverse mortgages are subsequently recorded at the lower of amortized cost or fair value. The Company has elected fair value option for forward MSRs. For MSRs initially recorded and subsequently measured at fair value, the fair value of the MSRs is based upon the present value of the expected future net cash flows related to servicing the underlying loans. Nationstar determines the fair value of the MSRs by the use of a discounted cash flow model which incorporates prepayment speeds, delinquencies, discount rate, ancillary revenues and other assumptions (including costs to service) that management believes are consistent with the assumptions other similar market participants use in valuing the MSRs. The credit quality and stated interest rates of the forward loans underlying the MSRs affects the assumptions used in the cash flow models. Nationstar obtains third-party valuations quarterly to assess the reasonableness of the fair value calculated by the cash flow model. Nationstar receives a base servicing fee ranging from 0.21% to 0.50% annually on the outstanding principal balances of the loans, which is collected from investors. Additionally, Nationstar owns servicing rights for certain reverse mortgage loans. For this class of servicing rights, Nationstar initially records a MSR or MSL on the acquisition date based on the fair value of the future cash flows associated with the pool and whether adequate compensation is to be received for servicing. Nationstar applies the amortized cost method for subsequent measurement of the loan pools with the capitalized cost of the MSRs amortized in proportion and over the period of the estimated net future servicing income and the MSL amortized in the period in which related loses are incurred. The expected period of the estimated net servicing income is based, in part, on the expected prepayment period of the underlying mortgages. Reverse MSRs and MSLs are stratified and evaluated each reporting period for impairment or increased obligation, as applicable, based on predominant risk characteristics of the underlying serviced loans. These stratification characteristics include loan type (fixed or adjustable rate), term and interest rate. Impairment of the MSR or additional obligation associated with the MSL are recorded through a valuation allowance, unless considered other-than-temporary, and are recognized as a charge to servicing revenue. Amounts amortized or accreted are recognized as an adjustment to service related revenue, net, along with monthly servicing fees received, generally stated at a fixed rate per loan. |
MSR Related Liabilities - Nonrecourse | MSR Related Liabilities - Nonrecourse Excess Spread Financing In conjunction with Nationstar's acquisition of certain mortgage servicing rights on various pools of residential mortgage loans (the "Portfolios"), Nationstar has entered into sale and assignment agreements related to its right to servicing fees under which, Nationstar sells to third parties the right to receive a portion of the excess cash flow generated from the Portfolios after receipt of a fixed base servicing fee per loan. The sale of these rights is accounted for as secured borrowings, with the total proceeds received being recorded as a component of MSR related liabilities - nonrecourse at fair value in the consolidated balance sheets. Nationstar determines the effective interest rate on these liabilities and allocates total repayments between interest expense and the outstanding liability. Nationstar has elected to measure the outstanding financings related to the excess spread financing agreements at fair value with all changes in fair value recorded as a charge or credit to service related revenue, net in the consolidated statements of operations and comprehensive income. The fair value on excess spread financing is based on the present value of future expected discounted cash flows with the discount rate approximating current market value. Mortgage Servicing Rights Financing From time to time, Nationstar will enter into certain transactions with third parties to sell certain mortgage servicing rights and servicer advances under specified terms. Nationstar evaluates these transactions to determine if they are sales or secured borrowings. When these transfers qualify for sale treatment, Nationstar derecognizes the transferred assets on its consolidated balance sheets. Nationstar has determined that for a portion of these transactions, the related mortgage servicing rights sales are contingent on the receipt of consents from various third parties. Until these required consents are obtained, for accounting purposes, legal ownership of the mortgage servicing rights continues to reside with the Company. Nationstar continues to account for the mortgage servicing rights on its consolidated balance sheets. In addition, Nationstar records a mortgage servicing rights financing liability associated with this financing transaction. Counterparty payments related to this financing arrangement are recorded as an adjustment to the Company's service related revenues. Nationstar has elected to measure the mortgage servicing rights financing liabilities at fair value with all changes in fair value recorded as a charge or credit to service related revenue, net, in the consolidated statements of operations and comprehensive income. The fair value on mortgage servicing right financings is based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. |
Participating Interest Financing | Participating Interest Financing Nationstar periodically securitizes participating interests in HECM loans (mainly borrower draws, mortgage insurance premium and interest) into HECM mortgage backed securities ("HMBS") which are sold to third-party security holders and guaranteed by Ginnie Mae. The securitization transactions are accounted for as secured borrowings with the obligations to the HMBS presented as participating interest financing included within other nonrecourse debt in the Company's consolidated balance sheets. Issuance or acquisition of HMBS is presented as a financing activity in the consolidated statements of cash flow. Interest is accrued monthly based upon the stated HMBS rates to interest expense in the consolidated statements of operations and comprehensive income. HMBS issuance premiums or discounts are deferred as a component of the participating interest financing and amortized or accreted, respectively, to interest expense over the life of the HMBS on an effective interest method. |
Revenues | Revenues Nationstar recognizes revenue from the services provided when the revenue is realized or realizable and earned, which is generally when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. Revenues From Forward Servicing Activities Service related revenues primarily include contractually specified servicing fees, late charges, prepayment penalties and other ancillary revenues. The servicing fees are based on a contractual percentage of the outstanding principal balance and recognized as revenue as earned, which is generally upon collection of the payments from the borrower. Corresponding loan servicing costs are charged to expense as incurred. Nationstar recognizes ancillary revenues as they are earned, which is generally upon collection of the payments from the borrower. In addition, Nationstar receives various fees in the course of providing servicing on its various portfolios. These fees include modification fees for modifications performed outside of government programs, modification fees for modifications pursuant to various government programs, and incentive fees for servicing performance on specific government-sponsored entities ("GSE") portfolios. Fees recorded on modifications of mortgage loans held for investment performed outside of government programs are deferred and recognized as an adjustment to the loans held for investment. These fees are accreted into interest income as an adjustment to the loan yield over the life of the loan. Fees recorded on modifications of mortgage loans serviced by Nationstar for others are recognized on collection and are recorded as a component of service related revenues. Fees recorded on modifications pursuant to various government programs are recognized based upon completion of all necessary steps by Nationstar and the minimum loan performance time frame to establish eligibility for the fee. Revenue earned on modifications pursuant to various government programs is included as a component of service related revenues. Incentive fees for servicing performance on specific GSE portfolios are recognized as various incentive standards are achieved and are recorded as a component of service related revenues. Nationstar also acts as a subservicer for certain parties that own the underlying servicing rights and receives subservicing fees, which are typically a stated monthly fee per loan that varies based on types of loans. Fees related to the subserviced portfolio are accrued in the period the services are performed. Revenues From Origination Activities Loan origination and other loan fees generally represent flat, per-loan fee amounts and are recognized as revenue, net of loan origination costs, at the time the loans are funded. Revenues From Reverse Mortgage Servicing and Reverse Mortgage Interests Nationstar performs servicing of reverse loans, similar to our forward servicing business, and receives servicing fees from investors, which is recorded in service related revenues. For reverse mortgage interests, where the Company records entire participating interest in HECM loans, the Company accrues interest in accordance with FHA guidelines and records interest income on the consolidated statements of operations and comprehensive income. See also the “Recent Accounting Guidance Not Yet Adopted” discussion in Note 1, Nature of Business and Basis of Presentation for new accounting guidance related to revenue from contracts with customers. |
Reserves for Loan Origination and Forward Servicing Activity and Reverse Mortgage Interests | Reserves for Origination Activity Nationstar provides for reserves, included within payables and accrued liabilities, in connection with loan origination activities. Reserves on loan origination activities primarily include reserves for the repurchase of loans from government sponsored entities, Ginnie Mae, and third-party investors primarily due to delinquency or foreclosure and are initially recorded upon sale of the loan to a third party with subsequent reserves recorded based on repurchase demands. The provision for reserves associated with loan origination activities is an offset component of net gain on mortgage loans held for sale. Nationstar utilizes internal models to estimate reserves for loan origination activities based upon our expectation of future defaults and the historical defect rate for government insured loans and is based upon judgments and assumptions which can be influenced by many factors and may change over the life of the underlying loans, including: (i) historical loss rate, (ii) secondary market pricing of loans; (iii) home prices and the levels of home equity; (iv) the quality of our underwriting procedures; (v) borrower delinquency and default patterns; and (vi) other Nationstar and macro-economic factors. On a quarterly basis, management corroborates these assumptions using third-party data, where applicable. Reserves for Forward Servicing Activity In connection with forward loan servicing activities, Nationstar records reserves primarily for the recoverability of advances, interest claims, and mortgage insurance claims as well as GSEs assessed compensatory fees. Reserves for advances and other receivables associated with loans in the MSR portfolio are considered within the MSR valuation, and the provision expense for such advances is recorded in the mark-to-market adjustment in service related revenue. Such valuation gives consideration to the expected cash outflows and inflows for advances and other receivables in accordance with the fair value framework. Reserves for advances and other receivables on loans transferred out of the MSR portfolio are established within advances and other receivables, net. As loans serviced transfer out of the MSR portfolio, any negative MSR value associated with the loans transfered is reclassified from the MSR to the reserve within advances and other receivables, net, to the extent such reserves continue to be required for balances remaining on the consolidated balance sheets. Management evaluates reserves for sufficiency each reporting period and any additional reserve requirements are recorded as a provision in general and administrative expense, as needed. Nationstar evaluates reserve sufficiency for forward loan servicing activities through consideration of both historical and expected recovery rates on claims filed with government agencies, GSEs, vendors, prior servicers and other counterparties. Recovery of advances and other receivables is subject to significant judgment and estimates based on the Company's assessment of its compliance with servicing guidelines, its ability to produce the necessary documentation to support claims, its ability to support amounts due from prior servicers and to effectively negotiate settlements, as needed. Reserves for Reverse Mortgage Interests Nationstar records an allowance for reserves related to reverse mortgage interests based on unrecoverable costs and estimates of probable loss exposures. The Company estimates reserve requirements upon the realization of a triggering event indicating a probable loss exposure. Internal models are utilized to estimate loss exposures associated with the Company's ability to meet servicing guidelines set forth by regulatory agencies and GSEs. Key assumptions included in the model include but are not limited to interest rates, borrower characteristics, foreclosure timelines, value of underlying collateral, future carrying and foreclosure costs, and other macro-economic factors. If the calculated reserve requirements exceed the recorded allowance for reserves, a provision is recorded to general and administrative expense, as needed. Reserve requirements are subject to significant judgment and estimates based on the Company's assessment of its compliance with servicing guidelines, its ability to produce the necessary documentation to support claims, its ability to support claims filed and its ability to effectively negotiate settlement of amounts due from GSEs, mortgage insurers, or prior servicers, as needed. Amounts Due from Prior Servicers The Company services its loan portfolios under guidelines set forth by regulatory agencies and GSEs. Losses can be incurred if the underlying loans are not serviced in accordance with established guidelines, resulting in the assessment of fines and the inability to recover interest and costs incurred. Prior servicers associated with the underlying loans may have contributed to the losses if their prior servicing practices did not allow for timely compliance with servicing guidelines set forth. To mitigate the risk of loss to the Company, indemnification provisions are incorporated into the executed acquisition and servicing agreements that allow for the recovery of realized losses which can be attributed to prior servicers. As part of our servicing operations, we estimate and record an asset for probable recoveries from prior servicers for their respective portion of these losses. As of December 31, 2016, such amounts are recorded in advances and other receivables of $94 for the Company's forward loan portfolio and within reverse mortgage interests of $38 for the Company's reverse loan portfolio. Estimated recoveries from prior servicers are based on management's best estimate of allocated losses among servicing parties, terms of the indemnification provisions, prior recovery experience, current negotiations and the servicer's ability to pay requested amounts. The Company updates its estimate of recovery each period based on the facts and circumstances known at the time. Recovery of amounts due from prior servicers is subject to significant judgment based on the Company's assessment of the prior servicer's responsibility for losses incurred, its ability to provide related support for such amounts and its ability to effectively negotiate settlement of amounts due from prior servicers if needed. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net is comprised of land, building, furniture, fixtures, leasehold improvements, computer software, and computer hardware. These assets are stated at cost less accumulated depreciation. Repairs and maintenance are expensed as incurred which is included in general and administrative expenses in the consolidated statements of operations and comprehensive income. Depreciation, which includes depreciation and amortization on capital leases, is recorded using the straight-line method over the estimated useful lives of the related assets. Cost and accumulated depreciation applicable to assets retired or sold are eliminated from the accounts, and any resulting gains or losses are recognized at such time through a charge or credit to general and administrative expenses. Costs to internally develop computer software are capitalized during the development stage and include external direct costs of materials and services as well as employee costs related to time spent on the project. We periodically review our property and equipment when events or changes in circumstances indicates that the carrying amount of our property and equipment might not be recoverable under the recoverability test, whereby the expected future undiscounted cash flows from the assets are estimated and compared with the carrying amount of the assets. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the assets, an impairment loss is recorded to general and administrative expense, as needed. The impairment loss is measured by comparing the fair value of the assets with their carrying amounts. Fair value is determined based on discounted cash flow. Nationstar evaluates all leases at inception to determine if they meet the criteria for a capital lease. A capital lease is recorded as an acquisition of property or equipment at an amount equal to the present value of minimum lease payments at the date of inception. Assets acquired under a capital lease are depreciated on a straight-line basis in accordance with the Company's normal depreciation policy over the lease term and are included in property and equipment, net, on the balance sheet. A corresponding liability is recorded representing an obligation to make lease payments which is included in payables and accrued liabilities in the consolidated balance sheet. Lease payments are allocated between interest expense and reduction of obligation. Leases that do not meet capital lease criteria are accounted for as operating leases. Rental expense on operating leases is recognized on a straight-line basis over the lease term which is include in general and administrative expenses in the consolidated statements of operations and comprehensive income. Leasehold improvements are amortized over the shorter of the lease terms of the respective leases or the estimated useful lives of the related assets. |
Variable Interest Entities | Variable Interest Entities In the normal course of business, Nationstar enters into various types of on- and off-balance sheet transactions with special purpose entities ("SPEs"), which primarily 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. The Company evaluates its interests in each SPE for classification as a Variable Interest Entity ("VIE"). When an SPE meets the definition of a VIE and the Company determines that Nationstar is the primary beneficiary, the Company includes the SPE in its consolidated financial statements. Nationstar consolidates SPEs connected with both forward and reverse mortgage activity. See Note 12, Securitization Financings for more information on Nationstar SPEs and Note 10, Indebtedness for certain debt activity connected with SPEs. Securitizations and Asset-Backed Financing Arrangements Nationstar or its subsidiaries have been a transferor in connection with a number of securitizations and asset-backed financing arrangements. The Company has continuing involvement with the financial assets of the securitizations and the asset-backed financing arrangements. The Company has aggregated these transactions into two groups: (1) securitizations of residential mortgage loans accounted for as sales and (2) financings of advances on loans serviced for others accounted for as secured borrowings. Securitizations Treated as Sales Nationstar’s continuing involvement typically includes acting as servicer for the mortgage loans held by the trust and holding beneficial interests in the trust. Nationstar’s responsibilities as servicer include, among other things, collecting monthly payments, maintaining escrow accounts, providing periodic reports and managing insurance in exchange for a contractually specified servicing fee. The beneficial interests held consist of both subordinate and residual securities that were retained at the time of securitization. These securitizations generally do not result in consolidation of the VIE as the beneficial interests that are held in the unconsolidated securitization trusts have no value and no potential for significant cash flows in the future. In addition, at December 31, 2016, the Company had no other significant assets in its consolidated financial statements related to these trusts. The Company has no obligation to provide financial support to unconsolidated securitization trusts and has provided no such support. The creditors of the trusts can look only to the assets of the trusts themselves for satisfaction of the debt issued by the trusts and have no recourse against the assets of Nationstar. The general creditors of Nationstar have no claim on the assets of the trusts. The Company’s exposure to loss as a result of its continuing involvement with the trusts is limited to the carrying values, if any, of its investments in the residual and subordinate securities of the trusts, the MSRs that are related to the trusts and the advances to the trusts. Nationstar considers the probability of loss arising from our advances to be remote because of their position ahead of most of the other liabilities of the trusts. See Note 4, Advances and Other Receivables, Net and Note 3, Mortgage Servicing Rights and Related Liabilities, for additional information regarding advances and MSRs. Financings Nationstar transfers advances on loans serviced for others to SPEs in exchange for cash. Nationstar consolidates these SPEs because Nationstar is the primary beneficiary of the VIE. These VIEs issue debt supported by collections on the transferred advances. Nationstar made these transfers under the terms of its advance facility agreements. Nationstar classifies the transferred advances on its consolidated balance sheets as advances and classifies the related liabilities as advance facilities and other nonrecourse debt. The SPEs use collections of the pledged advances to repay principal and interest and to pay the expenses of the entity. Holders of the debt issued by these entities can look only to the assets of the entities themselves for satisfaction of the debt and have no recourse against Nationstar. Upon securitization of a HECM loan under the GNMA Mortgage-backed securities program, ownership and legal title to the HECM loan is transferred to GNMA. The Company accounts for these transactions as secured borrowings. An asset is recorded within reverse mortgage interests related to the transferred HECM loan and the financing related to the HMBS note is included in other nonrecourse debt in our consolidated financial statements. Occasionally, Nationstar will transfer reverse mortgage interests into private securitization trusts ("Reverse Trusts"). Nationstar evaluates the Reverse Trusts to determine whether they meet the definition of a VIE, and when the Reverse Trust meets the definition of a VIE and the Company determines that it is the primary beneficiary, Nationstar will retain the securitized reverse mortgage interests on its balance sheet and recognize the issued securities in other nonrecourse debt. |
Derivative Financial Instruments | Derivative Financial Instruments Derivative instruments are used as part of the overall strategy to manage exposure to market risks primarily associated with fluctuations in interest rates related to originations. Nationstar recognizes all derivatives on its consolidated balance sheets at fair value on a recurring basis. Although its derivative instruments are intended to hedge economic events, Nationstar does not designate any derivative instruments as an accounting hedge. Derivatives instruments utilized by Nationstar primarily include interest rate lock commitments ("IRLCs"), loan purchase commitments ("LPCs"), forward MBS purchase commitments, Eurodollar futures, Treasury futures, interest rate swap agreements and interest rate caps. IRLCs represent an agreement to extend credit to a mortgage loan applicant, or an agreement to purchase a loan from a third-party originator, whereby the interest rate on the loan is set prior to funding. The fair values of mortgage loans held for sale, which are held in inventory awaiting sale into the secondary market, and interest rate lock commitments, are subject to changes in mortgage interest rates from the date of the commitment through the sale of the loan into the secondary market. As a result, we are exposed to interest rate risk and related price risk during the period from the date of the lock commitment through (i) the lock commitment cancellation or expiration date; or (ii) the date of sale into the secondary mortgage market. IRLCs are considered freestanding derivatives and are recorded at fair value at inception. Loan commitments generally range between 30 and 90 days; and we typically sell mortgage loans within 30 days of origination. Changes in fair value subsequent to inception are based on changes in the fair value of the underlying loan, and changes in the probability that the loan will fund within the terms of the commitment. Nationstar uses derivative financial instruments, primarily forward sales commitments, to manage exposure to interest rate risk and changes in the fair value of IRLCs and mortgage loans held for sale. The forward sales commitments fix the forward sales price that will be realized in the secondary market and thereby reduce the interest rate and price risk to Nationstar. Our expectation of the amount of our interest rate lock commitments that will ultimately close is a key factor in determining the notional amount of derivatives used in hedging the position. Nationstar may also enter into commitments to purchase MBS as part of its overall hedging strategy. . Nationstar also purchases interest rate swaps, Eurodollar futures and Treasury futures to mitigate exposure to the effect of changing interest rates on cash flows on securitized mortgage borrowings. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is initially recorded as the excess of purchase price over fair value of identifiable net assets acquired in a business combination. Goodwill is not amortized, but rather is assessed for impairment at least annually, as of October 1st and whenever events and circumstances indicate that impairment may have occurred. Impairment testing compares the reporting unit carrying amount of goodwill with its fair value. If the reporting unit carrying amount of goodwill exceeds its fair value, an impairment charge would be recorded. A qualitative assessment of impairment is permitted to determine whether it is more likely than not that an impairment has occurred. Factors considered in the qualitative assessment include the Company's overall financial performance, general economic conditions, conditions of the industry and market in which it operates, regulatory developments, and cost factors. If the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test is required. If the qualitative assessment determines that it is more likely than not that the fair value of a reporting unit is more than its carrying value, then further quantitative testing is not required. Nationstar may also choose a two-step quantitative test to evaluate goodwill for impairment. Under the two-step impairment test, Nationstar first compares the estimated fair value of each reporting unit with its estimated net carrying value (including goodwill). Nationstar derives the fair value of reporting units based on valuation techniques and assumptions that Nationstar believes market participants would use (discounted cash flow valuation methodology). In the second step, Nationstar compares the implied fair value of the reporting unit's goodwill with its carrying amount. The implied fair value of goodwill is determined in the step two test by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation used in a business combination. Any residual fair value after this allocation represents the implied fair value of the reporting unit's goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value, then an impairment loss is recognized in the amount of excess. Intangible assets that are determined to have an indefinite life are not amortized, but are evaluated for impairment annually and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. The Company has the option to first perform a qualitative assessment. Alternatively, the Company can directly perform the quantitative impairment test. If the carrying value of an individual indefinite-lived intangible asset exceeds its fair value as determined by its discounted cash flow, such individual indefinite-lived intangible asset is written down by the amount of excess. Intangible assets with finite lives are amortized over their estimated useful lives and are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. An impairment loss would be indicated when estimated undiscounted future cash flows from the use of the asset are less than its carrying amount. An impairment loss would be measured as the difference between the fair value (based on discounted future cash flows) and the carrying amount of the asset. |
Loans Subject to Repurchase Rights from Ginnie Mae | Loans Subject to Repurchase Rights from Ginnie Mae For certain forward loans sold to Ginnie Mae, Nationstar as the issuer has the unilateral right to repurchase, without Ginnie Mae’s prior authorization, any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Once Nationstar has the unilateral right to repurchase a delinquent loan, Nationstar has effectively regained control over the loan, and under GAAP, must recognize the right to the loan on its consolidated balance sheets and establish a corresponding repurchase liability regardless of Nationstar’s intention to repurchase the loan. The Company recognizes the right to purchase these mortgage loans in other assets at their unpaid principal balances and records a corresponding liability in payables and accrued liability for mortgage loans eligible for repurchase on its consolidated balance sheets. |
Interest Income | Interest Income Interest income is recognized on loans held for sale for the period from loan funding to sale, which is typically within 30 days. Loans are placed on non-accrual status when any portion of the principal or interest is 90 days past due. Interest received from loans on non-accrual status is recorded as income when collected. Loans return to accrual status when the principal and interest become current and it is probable that the amounts are fully collectible. For individual loans that have been modified, a period of six timely payments is required before the loan is returned to an accrual basis. Interest income also includes interest earned on custodial cash deposits associated with the mortgage loans serviced, and interest earned on reverse mortgage interest. Reverse mortgage interest accrues as interest income in accordance with FHA guidelines |
Share-Based Compensation Expense | Share-Based Compensation Expense Share-based compensation is recognized as an expense in the consolidated statements of operations and comprehensive income, based on the fair values of the shared-based awards on the grant date. The amount of compensation is measured at the fair value of the awards when granted and expensed over the requisite service period to salaries, wages and benefits in the consolidated statements of operations and comprehensive income. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included as part of general and administrative expenses. |
Income Taxes | Income Taxes Deferred taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. The Company regularly reviews the carrying amount of its deferred tax assets to determine if the establishment of a valuation allowance is necessary. If based on the available evidence, it is more likely than not that all or a portion of the Company's deferred tax assets will not be realized in future periods, a deferred tax valuation allowance is established. Consideration is given to various positive and negative factors that could affect the realization of the deferred tax assets. In evaluating this available evidence, management considers, among other things, historical financial performance, expectation of future earnings, the ability to carry back tax losses to recoup taxes previously paid, length of statutory carryforward periods, experience with operating tax loss and tax credit carryforwards which may expire unused, tax planning strategies and timing of reversals of temporary differences. The Company's evaluation is based on current tax laws as well as management's expectations of future performance. The Company is subject to the income tax laws of the U.S., its states and municipalities. These tax laws are complex and subject to different interpretations by the taxpayer and the relevant governmental taxing authorities. The Company has adopted accounting guidance related to uncertainty in income taxes. The guidance prescribes a comprehensive model for recognition, measurement, presentation, and disclosure of uncertain tax positions taken or expected to be taken on a tax return. Under the guidance, tax positions shall initially be recognized in the financial statements when it is more likely than not that the position will be sustained upon examination by the tax authorities. Such tax positions shall initially and subsequently be measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. In establishing a provision for income tax expense, the Company must make judgments and interpretations about the application of these inherently complex tax laws within the framework of existing GAAP. The Company recognizes interest and penalties related to uncertain tax positions in general and administrative expenses. At December 31, 2016 and 2015, the Company did not have any amounts recorded with respect to uncertainty in income taxes. |
Earnings Per Share | Earnings Per Share Basic net income per share is computed based on the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed based on the weighted-average number of common shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Equity instruments with a dilutive impact to earnings per share include outstanding restricted stock units issued by the Company. |
Description of Business and Bas
Description of Business and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | 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 (MS35
Mortgage Servicing Rights (MSR) and Related Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Transfers and Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | The activity of MSRs carried at fair value is as follows for the dates indicated. Year Ended December 31, 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 208 221 Purchases of servicing assets 157 711 Dispositions: Sales of servicing assets (67 ) (46 ) Changes in fair value: Due to changes in model inputs (79 ) (58 ) Other changes in fair value (417 ) (420 ) Fair value at the end of the period $ 3,160 $ 3,358 The following sets forth the carrying value of Nationstar's MSRs and the related liabilities. MSRs and Related Liabilities December 31, 2016 December 31, 2015 Forward MSRs - fair value $ 3,160 $ 3,358 Reverse MSRs - amortized cost 6 9 Mortgage servicing rights $ 3,166 $ 3,367 Mortgage servicing liabilities - amortized cost $ 48 $ 25 Excess spread financing - fair value $ 1,214 $ 1,232 Mortgage servicing rights financing liability - fair value 27 69 MSR related liabilities (nonrecourse) $ 1,241 $ 1,301 The following table provides a breakdown of the total credit and interest sensitive UPBs for Nationstar's forward owned MSRs that are carried at fair value. December 31, 2016 December 31, 2015 UPB Fair Value UPB Fair Value Credit sensitive $ 198,935 $ 1,818 $ 224,334 $ 2,017 Interest sensitive 113,141 1,342 121,342 1,341 Total $ 312,076 $ 3,160 $ 345,676 $ 3,358 |
Schedule of Assumptions for Fair Value of Mortgage Service Rights | Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated. Credit Sensitive December 31, 2016 December 31, 2015 Discount rate 11.6 % 11.6 % Total prepayment speeds 15.4 % 16.5 % Expected weighted-average life 6.0 years 5.9 years Interest Sensitive Discount rate 9.3 % 9.1 % Total prepayment speeds 10.7 % 12.4 % Expected weighted-average life 6.8 years 6.1 years The following table sets forth the weighted average assumptions used in the valuation of mortgage servicing rights financing liability. December 31, 2016 December 31, 2015 Advance financing rates 3.2 % 3.0 % Annual advance recovery rates 23.9 % 20.9 % The range of various assumptions used in Nationstar's valuation of excess spread financing are as follows. Excess Spread Financing Prepayment Speeds Average Life (Years) Discount Rate Recapture Rate December 31, 2016 Low 6.1 % 4.1 8.5 % 6.7 % High 21.2 % 8.5 14.1 % 29.8 % Weighted-average 13.9 % 6.3 10.8 % 19.0 % December 31, 2015 Low 6.9 % 4.2 8.5 % 6.8 % High 20.0 % 7.8 14.1 % 30.0 % Weighted-average 15.4 % 5.9 11.2 % 17.7 % |
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 December 31, 2016 Excess spread financing $ 49 $ 101 $ 41 $ 85 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 December 31, 2016 and 2015 . Discount Rate Total Prepayment Speeds 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change December 31, 2016 Mortgage servicing rights $ (114 ) $ (221 ) $ (117 ) $ (224 ) 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 years ended December 31, 2016 and 2015 . Year Ended December 31, 2016 2015 Assets Liabilities Assets Liabilities Reverse MSRs and Liabilities - Amortized Cost Balance at the beginning of the period $ 9 $ 25 $ 12 $ 65 Additions: Purchase of servicing rights/assumptions of obligations — 37 — — Deductions: Amortization/accretion (3 ) (14 ) (3 ) (40 ) Balance at end of the period $ 6 $ 48 $ 9 $ 25 Fair value at end of period $ 15 $ 26 $ 29 $ 9 |
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. Year Ended December 31, Servicing Segment Revenue 2016 2015 2014 Contractually specified servicing fees including subservicing fees $ 1,045 $ 1,117 $ 1,064 Other service-related income 279 233 229 Incentive and modification income 113 107 126 Late fees 82 70 65 Reverse servicing fees 57 88 68 Mark-to-market (1) (211 ) (112 ) 74 Counter party revenue share (2) (298 ) (301 ) (320 ) Amortization, net of accretion (3) (314 ) (320 ) (218 ) Total servicing revenues $ 753 $ 882 $ 1,088 (1) The amount of mark-to-market revenue reflected is net of $115 of cumulative incurred losses related to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio and these incurred losses have been transferred to reserves on advances and other receivables during 2016. (2) Counter party revenue share represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements and the payments made associated with MSRs financing arrangements. (3) Accretion for the years ended December 31, 2016 , 2015 and 2014 are $200 , $172 and $144 , respectively. |
Advances and Other Receivable36
Advances and Other Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Advances, Net | December 31, 2016 December 31, 2015 Servicing advances $ 1,614 $ 2,254 Receivables from agencies, investors and prior services 319 288 Reserves (184 ) (130 ) Total advances and other receivables, net $ 1,749 $ 2,412 |
Reverse Mortgage Interests, N37
Reverse Mortgage Interests, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Reverse Mortgage Interest [Abstract] | |
Summary of Reverse Mortgage Interests | Reverse mortgage interests, net consist of the following. December 31, 2016 December 31, 2015 Participating interests in HMBS $ 8,839 $ 5,864 Other interests securitized 753 715 Unsecuritized interests 1,572 988 Reserves (131 ) (53 ) Total reverse mortgage interests, net $ 11,033 $ 7,514 Unsecuritized interests in reverse mortgages consist primarily of the following. December 31, 2016 December 31, 2015 Repurchased HECM loans $ 1,000 $ 591 HECM related receivables 301 290 Funded borrower draws not yet securitized 236 83 Foreclosed assets 35 24 Total unsecuritized interests $ 1,572 $ 988 |
Mortgage Loans Held for Sale 38
Mortgage Loans Held for Sale and Investment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Loans Held for Sale and Investment [Abstract] | |
Schedule of Mortgage Loans Held-for-Sale | The total UPB of mortgage loans held for sale on non-accrual status was as follows for the dates indicated. December 31, 2016 December 31, 2015 Mortgage Loans Held for Sale - UPB UPB Fair Value UPB Fair Value Non-accrual $ 106 $ 103 $ 31 $ 29 Mortgage loans held for sale are recorded at fair value as set forth below. December 31, 2016 December 31, 2015 Mortgage loans held for sale - UPB $ 1,759 $ 1,374 Mark-to-market adjustment (1) 29 56 Total mortgage loans held for sale $ 1,788 $ 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 and comprehensive income. |
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. Year Ended December 31, 2016 2015 Mortgage loans held for sale – beginning balance $ 1,430 $ 1,278 Mortgage loans originated and purchased, net of fees 20,349 17,971 Loans sold (21,399 ) (19,659 ) Repurchase of loans out of Ginnie Mae securitizations 1,432 1,827 Transfer of mortgage loans held for sale to claims receivable in advances and other receivables (1) (18 ) (27 ) Net transfer of mortgage loans held for sale (to)/from REO in other assets (2) 9 41 Changes in fair value (15 ) (1 ) Mortgage loans held for sale – ending balance $ 1,788 $ 1,430 (1) Amounts are comprised of claims made on certain government insured mortgage loans upon completion of the REO sale. (2) Net amounts are comprised of REOs in the sales process which are transferred to other assets and certain government insured mortgage REOs which are transferred from other assets upon completion of the sale so that the claims process can begin. |
Schedule of Loans Held for Investment | The following sets forth the composition of Mortgage loans held for investment, net. December 31, 2016 December 31, 2015 Mortgage loans held for investment, net – UPB $ 216 $ 250 Transfer discount: Non-accretable (49 ) (58 ) Accretable (13 ) (15 ) Allowance for loan losses (3 ) (3 ) Total mortgage loans held for investment, net $ 151 $ 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. Year Ended December 31, Accretable Yield 2016 2015 Balance at the beginning of the period $ (15 ) $ (16 ) Accretion 3 2 Reclassifications from nonaccretable discount (1 ) (1 ) Balance at the end of the period $ (13 ) $ (15 ) |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net, and the corresponding ranges of estimated useful lives were as follows. December 31, 2016 December 31, 2015 Estimated Useful Life Capitalized software costs $ 123 $ 102 5 years Furniture, fixtures, and equipment 52 40 3 - 5 years Long-term capital leases - computer equipment 42 50 5 years Software in development and other 21 31 Varies Leasehold improvements 16 13 3 - 5 years Property and equipment 254 236 Less: Accumulated depreciation and amortization (118 ) (93 ) Total property and equipment, net $ 136 $ 143 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: December 31, 2016 December 31, 2015 Accrued revenues $ 165 $ 180 Loans subject to repurchase right from Ginnie Mae 152 117 Goodwill 74 71 REO, net 30 18 Intangible assets 28 50 Deposits 25 30 Prepaid expenses 16 20 Receivables from affiliates, net 6 8 Other 64 38 Total other assets $ 560 $ 532 |
Schedule of Intangible Assets and Goodwill | The following table presents changes in the carrying amount of goodwill for the periods indicated. Year Ended December 31, 2016 2015 Balance at beginning of period $ 71 $ 55 Goodwill acquired during the period — 23 Goodwill reclassification during the period 3 (7 ) Balance at end of period $ 74 $ 71 In 2015, Xome completed the acquisitions of Experience 1, Inc. and Quantarium, LLC recording $20 and $3 in goodwill, respectively. Upon finalizing the accounting in 2016, a reclassification of $3 was made between goodwill and deferred tax liabilities related to the Quantarium acquisition. In 2015, the Company finalized the accounting for the 2014 acquisition of Real Estate Digital LLC, which resulted in a $7 reclassification between goodwill and intangible assets. We evaluate goodwill for potential impairment each October 1 for the reporting units in the Originations and Xome segments, or more frequently when there are events or circumstances that indicate that it is more likely than not that an impairment exists. The Company performed a quantitative assessment in 2016 of the fair value of its reporting units. In establishing the estimated fair value, consideration was given to the forecasted discounted cash flows of the reporting units, recent trading prices of the Company's common stock, and recent trading prices of common stock for peer group companies. In establishing the discounted cash flows, the Company gives consideration to anticipated effects of interest rate changes to earnings, cost alignments for changes in transaction volumes and other changes to operations that would be considered by a market participant. These estimates could be materially impacted by changes in market conditions and the regulatory environment. Based on the assessment performed, we determined the fair value of our reporting units exceeded the carrying value by more than 65%. Accordingly, no impairment of goodwill was considered necessary in 2016. There was no goodwill impairment in 2015 and 2014. The following tables present intangible assets for the periods indicated. December 31, 2016 Gross Carrying Amount Impairment Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life in Years Trade name $ 27 $ (13 ) $ (8 ) $ 6 7.5 Customer relationships 20 (1 ) (6 ) 13 5.7 Purchased intangible software 12 — (4 ) 8 4.9 Licenses 1 — — 1 Indefinite Total intangible assets $ 60 $ (14 ) $ (18 ) $ 28 5.7 December 31, 2015 Gross Carrying Amount Impairment Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life in Years Trade name $ 27 $ — $ (6 ) $ 21 7.7 Customer relationships 20 — (3 ) 17 6.6 Purchased intangible software 12 — (1 ) 11 5.9 Licenses 1 — — 1 Indefinite Total intangible assets $ 60 $ — $ (10 ) $ 50 6.9 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table presents the estimated aggregate amortization expense for existing amortizable intangible assets for the periods indicated. Year Ended December 31, Amount 2017 $ 5 2018 5 2019 5 2020 5 2021 4 Thereafter 3 Total future amortization expense $ 27 |
Derivative Financial Instrume41
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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) Year Ended December 31, 2016 Assets Mortgage loans held for sale Loan sale commitments 2017 $ 1 $ 0.1 $ (0.2 ) Derivative financial instruments IRLCs 2017 3,675 92.2 3.1 Forward sales of MBS 2017 2,580 39.2 33.1 LPCs 2017 203 1.9 (2.0 ) Eurodollar futures (1) 2017-2021 35 — (0.1 ) Interest rate swaps 2017 9 0.1 (0.4 ) Liabilities Derivative financial instruments IRLCs 2017 176 1.1 (1.1 ) Forward sales of MBS 2017 1,689 10.0 (6.3 ) LPCs (1) 2017 111 1.5 — Eurodollar futures (1) 2017-2021 27 — 0.1 Interest rate swaps 2017 9 0.1 0.4 Year 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. In 2014 the Company recorded a total loss of $42 in connection with derivative instruments. |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Notes Payable December 31, 2016 December 31, 2015 Advance Facilities Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged Nationstar agency advance receivables trust LIBOR+2.0% to 2.8% October 2017 Servicing advance receivables $ 650 $ 485 $ 578 $ 763 $ 823 Nationstar mortgage advance receivable LIBOR+1.9% December 2017 Servicing advance receivables 500 260 301 335 394 Nationstar agency advance financing facility LIBOR+2.0% January 2018 Servicing advance receivables 400 164 186 310 364 MBS advance financing facility LIBOR+2.5% March Servicing advance receivables 130 55 60 82 89 MBS servicer advance facility (2014) LIBOR+3.5% September 2017 Servicing advance receivables 125 88 142 106 185 MBS advance financing facility (2012) (1) LIBOR+5.0% January Servicing advance receivables 50 44 52 50 70 Advance facilities principal amount 1,096 1,319 1,646 1,925 Debt issuance costs — — (6 ) — Advance facilities, net of unamortized debt issuance costs $ 1,096 $ 1,319 $ 1,640 $ 1,925 (1) This MBS Advance Financing facility was paid off in full in February 2017. The Company entered into an agreement with a new sublimit for the same amount under a warehouse facility with the same financial institution. December 31, 2016 December 31, 2015 Warehouse Facilities Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged $1,200 warehouse facility LIBOR+2.0% to 2.9% October 2017 Mortgage loans or MBS $ 1,200 $ 682 $ 747 $ 634 $ 678 $900 warehouse facility LIBOR+1.8% to 3.3% June Mortgage loans or MBS 900 496 539 545 622 $500 warehouse facility LIBOR+1.8% to 2.8% September 2017 Mortgage loans or MBS 500 229 237 175 179 $500 warehouse Facility LIBOR+2.1% to 2.4% September 2017 Mortgage loans or MBS 500 250 256 — — $500 warehouse facility LIBOR+2.0% to 2.8% November 2017 Mortgage loans or MBS 500 410 415 257 274 $350 warehouse facility LIBOR+2.2% to 2.8% April Mortgage loans or MBS 350 12 13 98 112 $350 warehouse facility LIBOR+2.5% to 2.6% November Mortgage loans or MBS 350 173 189 45 50 $300 warehouse facility LIBOR+2.3% January 2018 Mortgage loans or MBS 300 153 180 23 28 $200 warehouse facility LIBOR+1.5% April Mortgage loans or MBS 200 7 8 8 9 $40 warehouse facility LIBOR+3.0% December 2017 Mortgage loans or MBS 40 11 18 — — $100 warehouse facility (HCM) (2) LIBOR+2.5% to 2.8% November 2016 Mortgage loans or MBS 100 — — 55 60 $75 warehouse facility (HCM) (2) LIBOR+2.3% to 2.9% October 2016 Mortgage loans or MBS 75 — — 53 59 Warehouse facilities principal amount 2,423 2,602 1,893 2,071 Debt issuance costs (2 ) — (3 ) — Warehouse facilities, net of unamortized debt issuance costs $ 2,421 $ 2,602 $ 1,890 $ 2,071 Mortgage loans, net $ 1,693 $ 1,427 $ 1,509 $ 1,625 Reverse mortgage interests, net $ 730 $ 834 $ 351 $ 390 MSR and other collateral $ — $ 341 $ 33 $ 56 (2) 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. December 31, 2016 December 31, 2015 $600 face value, 6.500% interest rate payable semi-annually, due July 2021 $ 595 $ 597 $475 face value, 6.500% interest rate payable semi-annually, due August 2018 461 475 $400 face value, 7.875% interest rate payable semi-annually, due October 2020 400 400 $375 face value, 9.625% interest rate payable semi-annually, due May 2019 345 363 $300 face value, 6.500% interest rate payable semi-annually, due June 2022 206 214 Unsecured senior notes principal amount 2,007 2,049 Debt issuance costs (17 ) (23 ) Unsecured senior notes, net of unamortized debt issuance costs $ 1,990 $ 2,026 |
Schedule of Maturities of Long-term Debt | As of December 31, 2016, the expected maturities of Nationstar's unsecured senior notes based on contractual maturities are as follows. Year Ended December 31, Amount 2017 $ — 2018 461 2019 345 2020 400 2021 595 Thereafter 206 Unsecured senior notes principal amount 2,007 Unsecured debt issuance costs (17 ) Unsecured senior notes, net of unamortized debt issuance costs $ 1,990 |
Schedule of Debt | A summary of the balances of other nonrecourse debt is presented below. December 31, 2016 December 31, 2015 Issue Date Maturity Date Class of Note Securitized Amount Outstanding Outstanding Participating interest financing (1) $ 8,914 $ 5,947 Securitization of nonperforming HECM loans Trust 2014-1 (2) December 2014 — A, M — — 227 Trust 2015-1 (3) June 2015 May 2018 A, M — — 222 Trust 2015-2 November 2015 November 2025 A, M1, M2 140 114 209 Trust 2016-1 March 2016 February 2026 A, M1, M2 230 194 — Trust 2016-2 June 2016 June 2026 A, M1, M2 179 158 — Trust 2016-3 August 2016 August 2026 A, M1, M2 229 208 — Nonrecourse debt - legacy assets November 2009 October 2039 A 211 50 65 Other nonrecourse debt principal amount 9,638 6,670 Unamortized debt issuance costs (7 ) (4 ) Other nonrecourse debt, net of unamortized debt issuance cost $ 9,631 $ 6,666 (1) Amounts represent the Company's participating interest in GNMA 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. |
Payables and Accrued Liabilit43
Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Payables and Accrued Liabilities | Payables and accrued liabilities consist of the following. December 31, 2016 December 31, 2015 Payables to servicing and subservicing investors $ 655 $ 484 Loans subject to repurchase from Ginnie Mae 152 117 Accrued bonus and payroll 95 96 Taxes 84 81 Payable to insurance carriers and insurance cancellation reserves 73 70 Accrued interest 65 61 Payable to GSEs and securitized trusts 58 113 Accrued liabilities and accounts payable 49 73 Professional and legal 47 43 Margin call deposits 29 4 Lease obligations 24 13 MSR purchases payable including advances 21 22 Repurchase reserves 18 26 Other 100 93 Total payables and accrued liabilities $ 1,470 $ 1,296 |
Schedule of Loans Subject to Repurchase Reserve | The activity of the outstanding repurchase reserves is set forth below. Year Ended December 31, 2016 2015 Repurchase reserves, beginning of period $ 26 $ 29 Provision (release) (6 ) — Charge-offs (2 ) (3 ) Repurchase reserves, end of period $ 18 $ 26 |
Securitizations and Financings
Securitizations and Financings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities and Securitizations [Abstract] | |
Schedule of Assets and Liabilities of VIEs Included in Financial Statements | A summary of mortgage loans transferred by Nationstar to unconsolidated securitization trusts that are 60 days or more past due and the credit losses incurred in the unconsolidated securitization trusts are presented below: Principal Amount of Loans 60 Days or More Past Due December 31, 2016 December 31, 2015 Unconsolidated securitization trusts $ 548 $ 728 Year Ended December 31, Credit Losses 2016 2015 2014 Unconsolidated securitization trusts $ 150 $ 216 $ 276 Certain cash flows received from securitization trusts related to the transfer of mortgage loans accounted for as sales for the dates indicated were as follows: Year Ended December 31, 2016 2015 2014 Servicing Fees Loan Servicing Fees Loan Servicing Fees Loan Unconsolidated securitization trusts $ 22 $ — $ 24 $ — $ 28 $ — A summary of the outstanding collateral and certificate balances for securitization trusts for which Nationstar was the transferor, including any retained beneficial interests and MSRs, that were not consolidated by Nationstar for the periods indicated are as follows: December 31, 2016 December 31, 2015 Total collateral balances $ 2,704 $ 3,114 Total certificate balances $ 2,455 $ 2,811 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: December 31, 2016 December 31, 2015 Transfers Reverse Secured Borrowings Transfers Reverse Secured Borrowings Assets Restricted cash $ 190 $ 37 $ 94 $ 36 Reverse mortgage interests, net — 9,557 — 6,547 Advances and other receivables, net 1,065 — 1,581 — Mortgage loans held for investment, net 150 — 173 — Derivative financial instruments — — — — Other assets 4 — 5 — Total assets $ 1,409 $ 9,594 $ 1,853 $ 6,583 Liabilities Advance facilities (1) $ 909 $ — $ 1,408 $ — Payables and accrued liabilities 1 — 2 1 Participating interest financing (2) — 8,840 — 5,864 HECM Securitizations (HMBS) Trust 2014-1 — — — 227 Trust 2015-1 — — — 222 Trust 2015-2 — 114 — 209 Trust 2016-1 — 194 — — Trust 2016-2 — 158 — — Trust 2016-3 — 208 — — Nonrecourse debt–legacy assets 50 — 65 — Total liabilities $ 960 $ 9,514 $ 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 10, Indebtedness for additional information. (2) Participating interest financing excludes premiums. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, 2016 2015 2014 Current Income Taxes Federal $ 14 $ 59 $ 46 State 4 4 8 Total current income taxes 18 63 54 Deferred Income Taxes Federal (4 ) (50 ) 6 State (1 ) (2 ) 5 Total deferred income taxes (5 ) (52 ) 11 Total provision for income taxes $ 13 $ 11 $ 65 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense differs from the amounts computed by applying the U.S. federal corporate tax rate of 35.0% as follows for the period indicated: Year Ended December 31, 2016 2015 2014 Tax Expense at Federal Statutory Rate $ 10 35.0 % $ 19 35.0 % $ 100 35.0 % Effect of: State taxes, net of federal benefit 1 5.0 % — (0.4 )% 9 2.9 % Noncontrolling interest 1 3.4 % (2 ) (2.7 )% — — % Increase/(decrease) of valuation allowance — — % (3 ) (6.1 )% (40 ) (14.1 )% Deferred adjustments 1 2.3 % (5 ) (10.1 )% (2 ) (0.5 )% Current payable adjustments 1 1.9 % 2 4.0 % (2 ) (0.8 )% Other, net (1 ) (2.4 )% — 0.6 % — 0.2 % Total income tax expense $ 13 45.2 % $ 11 20.3 % $ 65 22.7 % |
Schedule of Deferred Tax Assets and Liabilities | Temporary differences and carryforwards that give rise to deferred tax assets and liabilities are comprised of the following: Year Ended December 31, 2016 2015 Deferred Tax Assets Effect of: Loss carryforwards (federal, state and capital) $ 60 $ 64 Loss reserves 104 57 Reverse mortgage premiums 25 26 Rent expense 5 6 Restricted share based compensation 9 9 Accruals 20 14 Other, net 24 9 Total deferred tax assets 247 185 Deferred Tax Liabilities MSR amortization and mark-to-market, net (267 ) (198 ) Depreciation and amortization, net (34 ) (38 ) Prepaid assets (1 ) (3 ) Goodwill and intangible assets (3 ) (5 ) Total deferred tax liabilities (305 ) (244 ) Valuation allowance (4 ) (4 ) Net deferred tax liability $ (62 ) $ (63 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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. December 31, 2016 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,788.0 $ — $ 1,788.0 $ — Mortgage servicing rights (1) 3,160.0 — — 3,160.0 Derivative financial instruments: IRLCs 92.2 — 92.2 — Forward MBS trades 39.2 — 39.2 — LPCs 1.9 — 1.9 — Interest rate swaps and caps 0.1 — 0.1 — Total assets $ 5,081.4 $ — $ 1,921.4 $ 3,160.0 Liabilities Derivative financial instruments IRLCs $ 1.1 $ — $ 1.1 $ — Forward MBS trades 10.0 — 10.0 — LPCs 1.5 — 1.5 — Interest rate swaps and caps 0.1 — 0.1 — Mortgage servicing rights financing 27.0 — — 27.0 Excess spread financing 1,214.0 — — 1,214.0 Total liabilities $ 1,253.7 $ — $ 12.7 $ 1,241.0 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 — Eurodollar futures 0.1 — 0.1 — Interest rate swaps and caps 0.5 — 0.5 — Total assets $ 4,887.7 $ — $ 1,529.4 $ 3,358.3 Liabilities Derivative financial instruments IRLCs (2) $ — $ — $ — $ — Forward MBS trades 3.7 — 3.7 — LPCs 1.5 — 1.5 — Eurodollar futures 0.1 — 0.1 — Interest rate swaps and caps 0.5 — 0.5 — 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 Year Ended December 31, 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 (496 ) 25 (42 ) Purchases, issuances, sales and settlements Purchases 157 — — Issuances 208 155 — Settlements — (198 ) — Dispositions (67 ) — — Ending balance $ 3,160 $ 1,214 $ 27 Assets Liabilities Year 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 (478 ) 26 20 Purchases, issuances, sales and settlements Purchases 711 — — Issuances 221 385 — Settlements — (210 ) — Dispositions (46 ) — — 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. December 31, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 489 $ 489 $ — $ — Restricted cash 388 388 — — Advances and other receivables, net 1,749 — — 1,749 Reverse mortgage interests, net 11,033 — — 11,232 Mortgage loans held for sale 1,788 — 1,788 — Mortgage loans held for investment, net 151 — — 153 Derivative financial instruments 133 — 133 — Financial liabilities Unsecured senior notes 2,007 2,047 — — Advance facilities 1,096 — 1,096 — Warehouse facilities 2,423 — 2,423 — Mortgage servicing rights financing liability 27 — — 27 Excess spread financing 1,214 — — 1,214 Derivative financial instruments 13 — 13 — Participating interest financing 8,914 — 9,151 — HECM Securitization (HMBS) Trust 2015-2 114 — — 125 Trust 2016-1 194 — — 203 Trust 2016-2 158 — — 156 Trust 2016-3 208 — — 205 Nonrecourse debt - legacy assets 50 — — 50 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 — — Advances and other receivables, net 2,412 — — 2,412 Reverse mortgage interests, net 7,514 — — 7,705 Mortgage loans held for sale 1,430 — 1,430 — Mortgage loans held for investment, net 174 — — 174 Derivative financial instruments 100 — 100 — Financial liabilities: Unsecured senior notes 2,049 1,912 — — Advance facilities 1,646 — 1,646 — Warehouse facilities 1,893 — 1,893 — Mortgage servicing rights financing liability 69 — — 69 Excess spread financing 1,232 — — 1,232 Derivative financial instruments 6 — 6 — 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 |
Share-Based Compensation and 47
Share-Based Compensation and Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Equity Based Awards Activity | The following table summarizes equity based awards under the 2012 Plan for the periods indicated. Equity based awards Units (in thousands) Weighted-Average Grant Date Fair Value, per unit Restricted stock outstanding at December 31, 2015 1,837 $ 25.77 Granted 1,631 11.89 Forfeited (292 ) 17.96 Vested (904 ) 23.77 Restricted stock outstanding at December 31, 2016 2,272 17.74 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | Minimum future payments on noncancelable operating and capital leases are as follows: Year Ended December 31, Operating Leases Capital Leases 2017 $ 29 $ 6 2018 30 4 2019 24 2 2020 19 — 2021 and thereafter 30 — Total minimum lease payments 132 12 Less: Amounts representing interest — (1 ) Present value of minimum lease payments $ 132 $ 11 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes, by category, the Company’s restructuring charges activity for the periods indicated below. Liability Balance at January 1 Restructuring Adjustments Restructuring Settlements Liability Balance at December 31 Year Ended December 31, 2016 Restructuring charges: Employee severance and other $ 9 $ 5 $ (9 ) $ 5 Lease terminations 1 — (1 ) — Total $ 10 $ 5 $ (10 ) $ 5 Year Ended December 31, 2015 Restructuring charges: Employee severance and other $ — $ 13 $ (4 ) $ 9 Lease terminations 4 — (3 ) 1 Total $ 4 $ 13 $ (7 ) $ 10 Year Ended December 31, 2014 Restructuring charges: Employee severance and other $ 5 $ — $ (5 ) $ — Lease terminations 8 — (4 ) 4 Total $ 13 $ — $ (9 ) $ 4 |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables present financial information by segment. Year Ended December 31, 2016 Servicing Originations Xome Eliminations Total Operating Corporate and Other Consolidated Revenues: Service related, net $ 753 $ 59 $ 423 $ (118 ) $ 1,117 $ 1 $ 1,118 Net gain on mortgage loans held for sale — 679 — 118 797 — 797 Total revenues 753 738 423 — 1,914 1 1,915 Total expenses 645 533 354 — 1,532 112 1,644 Other income (expenses): Interest income 347 63 — — 410 15 425 Interest expense (442 ) (58 ) — — (500 ) (165 ) (665 ) Other expense — (1 ) — — (1 ) (1 ) (2 ) Total other income (expenses), net (95 ) 4 — — (91 ) (151 ) (242 ) Income (loss) before income tax expense (benefit) $ 13 $ 209 $ 69 $ — $ 291 $ (262 ) $ 29 Depreciation and amortization $ 23 $ 11 $ 21 $ — $ 55 $ 8 $ 63 Total assets $ 16,189 $ 4,563 $ 349 $ (2,448 ) $ 18,653 $ 940 $ 19,593 Year Ended December 31, 2015 Servicing Originations Xome Eliminations Total Operating Segments Corporate and Other Consolidated Revenues: Service related, net $ 882 $ 51 $ 437 $ (67 ) $ 1,303 $ 2 $ 1,305 Net gain on mortgage loans held for sale — 615 — 67 682 2 684 Total revenues 882 666 437 — 1,985 4 1,989 Total expenses 788 469 358 — 1,615 73 1,688 Other income (expenses): Interest income 268 67 — — 335 16 351 Interest expense (377 ) (58 ) — — (435 ) (170 ) (605 ) Other income (expense) (1 ) — — — (1 ) 8 7 Total other income (expenses), net (110 ) 9 — — (101 ) (146 ) (247 ) Income (loss) before income tax expense (benefit) $ (16 ) $ 206 $ 79 $ — $ 269 $ (215 ) $ 54 Depreciation and amortization $ 21 $ 12 $ 14 $ — $ 47 $ 6 $ 53 Total assets $ 14,244 $ 1,398 $ 304 $ — $ 15,946 $ 671 $ 16,617 Year Ended December 31, 2014 Servicing Originations Xome Eliminations Total Operating Segments Corporate and Other Consolidated Revenues: Service related, net $ 1,088 $ 44 $ 305 $ (65 ) $ 1,372 $ 4 $ 1,376 Net gain on mortgage loans held for sale — 535 — 65 600 (3 ) 597 Total revenues 1,088 579 305 — 1,972 1 1,973 Total expenses 705 390 182 — 1,277 81 1,358 Other income (expenses): Interest income 92 72 — — 164 16 180 Interest expense (246 ) (70 ) — — (316 ) (200 ) (516 ) Other income 1 — — — 1 6 7 Total other income (expenses), net (153 ) 2 — — (151 ) (178 ) (329 ) Income (loss) before income tax expense (benefit) $ 230 $ 191 $ 123 $ — $ 544 $ (258 ) $ 286 Depreciation and amortization $ 15 $ 9 $ 4 $ — $ 28 $ 12 $ 40 Total assets $ 8,786 $ 1,398 $ 196 $ — $ 10,380 $ 689 $ 11,069 |
Guarantor Financial Statement51
Guarantor Financial Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Consolidating Balance Sheets | NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2015 Nationstar Issuer Guarantor Non-Guarantor 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 at fair value — 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 at fair value — 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, net $ — $ 2,026 $ — $ — $ — $ 2,026 Advance facilities, net — 232 — 1,408 — 1,640 Warehouse facilities, net — 1,782 — 108 — 1,890 Payables and accrued liabilities 4 1,222 1 69 — 1,296 MSR related liabilities - nonrecourse at fair value — 1,301 — — — 1,301 Mortgage servicing liabilities — 25 — — — 25 Derivative financial instruments at fair value — 6 — — — 6 Other nonrecourse debt, net — 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 stockholders' equity 1,767 1,768 303 207 (2,278 ) 1,767 Total liabilities and stockholders' equity $ 1,771 $ 16,042 $ 305 $ 2,658 $ (4,159 ) $ 16,617 (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 DECEMBER 31, 2016 Nationstar Issuer Guarantor (Subsidiaries) Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ — $ 453 $ 2 $ 34 $ — $ 489 Restricted cash — 159 — 229 — 388 Mortgage servicing rights — 3,142 — 24 — 3,166 Advances and other receivables, net — 1,749 — — — 1,749 Reverse mortgage interests, net — 10,316 — 717 — 11,033 Mortgage loans held for sale at fair value — 1,787 — 1 — 1,788 Mortgage loans held for investment, net — 1 — 150 — 151 Property and equipment, net — 113 — 23 — 136 Derivative financial instruments at fair value — 133 — — — 133 Other assets — 444 323 838 (1,045 ) 560 Investment in subsidiaries 1,801 634 — — (2,435 ) — Total assets $ 1,801 $ 18,931 $ 325 $ 2,016 $ (3,480 ) $ 19,593 Liabilities and stockholders' equity Unsecured senior notes, net $ — $ 1,990 $ — $ — $ — $ 1,990 Advance facilities, net — 187 — 909 — 1,096 Warehouse facilities, net — 2,421 — — — 2,421 Payables and accrued liabilities — 1,420 2 48 — 1,470 MSR related liabilities - nonrecourse at fair value — 1,219 — 22 — 1,241 Mortgage servicing liabilities — 48 — — — 48 Derivative financial instruments at fair value — 13 — — — 13 Other nonrecourse debt, net — 8,907 — 724 — 9,631 Payables to affiliates 118 925 — 2 (1,045 ) — Total liabilities 118 17,130 2 1,705 (1,045 ) 17,910 Total stockholders' equity 1,683 1,801 323 311 (2,435 ) 1,683 Total liabilities and stockholders' equity $ 1,801 $ 18,931 $ 325 $ 2,016 $ (3,480 ) $ 19,593 |
Consolidating Statements of Operations | NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related, net $ — $ 846 $ 17 $ 442 $ — $ 1,305 Net gain on mortgage loans held for sale — 640 — 44 — 684 Total revenues — 1,486 17 486 — 1,989 Expenses: Salaries, wages and benefits — 540 5 218 — 763 General and administrative — 737 3 185 — 925 Total expenses — 1,277 8 403 — 1,688 Other income (expenses): Interest income — 311 — 40 — 351 Interest expense — (534 ) — (71 ) — (605 ) Other income (expense) — 8 — (1 ) — 7 Gain (loss) from subsidiaries 39 60 — — (99 ) — Total other income (expenses), net 39 (155 ) — (32 ) (99 ) (247 ) Income (loss) before income tax expense (benefit) 39 54 9 51 (99 ) 54 Less: income tax expense — 11 — — — 11 Net income (loss) 39 43 9 51 (99 ) 43 Less: net income attributable to noncontrolling interests — 4 — — — 4 Net income (loss) attributable to Nationstar $ 39 $ 39 $ 9 $ 51 $ (99 ) $ 39 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2016 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related, net $ — $ 654 $ 33 $ 431 $ — $ 1,118 Net gain on mortgage loans held for sale — 768 — 29 — 797 Total revenues — 1,422 33 460 — 1,915 Expenses: Salaries, wages benefits — 601 5 207 — 813 General and administrative — 617 8 206 — 831 Total expenses — 1,218 13 413 — 1,644 Other income (expenses): Interest income — 375 — 50 — 425 Interest expense — (592 ) — (73 ) — (665 ) Other expense — (2 ) — — — (2 ) Gain (loss) from subsidiaries 19 44 — — (63 ) — Total other income (expenses), net 19 (175 ) — (23 ) (63 ) (242 ) Income (loss) before income tax expense (benefit) 19 29 20 24 (63 ) 29 Less: income tax expense — 13 — — — 13 Net income (loss) 19 16 20 24 (63 ) 16 Less: net loss attributable to noncontrolling interests — (3 ) — — — (3 ) Net income (loss) attributable to Nationstar $ 19 $ 19 $ 20 $ 24 $ (63 ) $ 19 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2014 Nationstar Issuer Guarantor Non-Guarantor (Subsidiaries) Eliminations Consolidated Revenues: Service related, net $ — $ 1,030 $ 48 $ 298 $ — $ 1,376 Net gain on mortgage loans held for sale — 584 — 13 — 597 Total revenues — 1,614 48 311 — 1,973 Expenses: Salaries wages and benefits — 556 5 82 — 643 General and administrative — 587 2 126 — 715 Total expenses — 1,143 7 208 — 1,358 Other income (expenses): Interest income — 159 — 21 — 180 Interest expense — (461 ) — (55 ) — (516 ) Other expense — 5 — 2 — 7 Gain (loss) from subsidiaries 221 112 — — (333 ) — Total other income (expenses), net 221 (185 ) — (32 ) (333 ) (329 ) Income (loss) before income tax expense (benefit) 221 286 41 71 (333 ) 286 Less: income tax expense — 65 — — — 65 Net income (loss) 221 221 41 71 (333 ) 221 Less: net income (loss) attributable to noncontrolling interests — — — — — — Net income (loss) attributable to Nationstar $ 221 $ 221 $ 41 $ 71 $ (333 ) $ 221 |
Consolidating Statements of Cash Flows | NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2014 Nationstar Issuer Guarantor Non- Eliminations Consolidated Operating Activities Net income attributable to Nationstar $ 221 $ 221 $ 41 $ 71 $ (333 ) $ 221 Reconciliation of net loss to net cash attributable to operating activities: (Gain)/loss from subsidiaries (221 ) (112 ) — — 333 — Net gain on mortgage loans held for sale — (584 ) — (13 ) — (597 ) Provision for servicing reserves — 86 — — — 86 Fair value changes and amortization of mortgage servicing rights — 234 — — — 234 Fair value changes in mortgage loans held for sale — (12 ) — — — (12 ) Fair value changes in excess spread financing — 57 — — — 57 Fair value changes in mortgage servicing rights financing liability — (33 ) — — — (33 ) Amortization (accretion) of premiums (discounts) — 13 — (2 ) — 11 Depreciation and amortization — 36 — 4 — 40 Shared based compensation — 19 — — — 19 Other (gain) loss — (2 ) — 6 — 4 Repurchases of forward loans assets out of Ginnie Mae securitizations — (3,692 ) — — — (3,692 ) Mortgage loans originated and purchased, net of fees — (17,138 ) — — — (17,138 ) Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment — 22,142 — (6 ) — 22,136 Excess tax benefit (deficiency) from share based compensation — (2 ) — — — (2 ) Changes in assets and liabilities: Advances and other receivables, net — 259 — (3 ) — 256 Reverse mortgage interests, net — (644 ) — (376 ) — (1,020 ) Other assets 5 (1,611 ) (39 ) 2,206 (31 ) 530 Payables and accrued liabilities — (71 ) (6 ) 26 31 (20 ) Net cash attributable to operating activities 5 (834 ) (4 ) 1,913 — 1,080 Nationstar Issuer Guarantor Non- Eliminations Consolidated Investing Activities Property and equipment additions, net of disposals — (41 ) — (15 ) — (56 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (471 ) — — — (471 ) Proceeds on sale of servicer advances — 768 — — — 768 Proceeds from sale of building — 10 — — — 10 Business acquisitions, net — (16 ) — (2 ) — (18 ) Net cash attributable to investing activities — 250 — (17 ) — 233 Financing Activities Increase (decrease) in warehouse facilities — 228 — (1,088 ) — (860 ) Proceeds from HECM securitizations — — — 269 — 269 Repayment of HECM securitizations — — — (10 ) — (10 ) Increase (decrease) in participating interest financing in reverse mortgage interests — 353 — — — 353 Increase (decrease) in advance facilities — — — (1,221 ) — (1,221 ) Repayment of excess spread financing — (184 ) — — — (184 ) Issuance of excess spread financing — 171 — — — 171 Proceeds from mortgage servicing rights financing — 53 — — — 53 Repayment of nonrecourse debt - legacy assets — — — (15 ) — (15 ) Repurchase of unsecured senior notes — (285 ) — — — (285 ) Transfers (to) from restricted cash, net — 119 — 172 — 291 Excess tax (deficiency) benefit from share based compensation — 2 — — — 2 Surrender of shares relating to stock vesting (5 ) — — — — (5 ) Debt financing costs — (15 ) — — — (15 ) Net cash attributable to financing activities (5 ) 442 — (1,893 ) — (1,456 ) Net increase/(decrease) in cash — (142 ) (4 ) 3 — (143 ) Cash and cash equivalents at beginning of year — 422 4 16 — 442 Cash and cash equivalents at end of year $ — $ 280 $ — $ 19 $ — $ 299 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating Activities Net income attributable to Nationstar $ 39 $ 39 $ 9 $ 51 $ (99 ) $ 39 Reconciliation of net loss to net cash attributable to operating activities: Noncontrolling interest — 4 — — — 4 (Gain)/loss from subsidiaries (39 ) (60 ) — — 99 — Net gain on mortgage loans held for sale (639 ) — (45 ) — (684 ) Provision for servicing reserves — 51 — — — 51 Fair value changes and amortization of mortgage servicing rights — 460 — — — 460 Fair value changes in mortgage loans held for sale — 1 — — — 1 Fair value changes in excess spread financing — 26 — — — 26 Fair value changes in mortgage servicing rights financing liability — 19 — — — 19 Amortization (accretion) of premiums (discounts) — 2 — (4 ) — (2 ) Depreciation and amortization — 40 — 13 — 53 Shared based compensation — 13 — 7 — 20 Other (gain) loss — (8 ) — 1 — (7 ) Repurchases of forward loans assets out of Ginnie Mae securitizations — (1,865 ) — — — (1,865 ) Mortgage loans originated and purchased, net of fees — (16,827 ) — (1,144 ) — (17,971 ) Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment — 18,926 — 1,118 — 20,044 Changes in assets and liabilities: Advances and other receivables, net — 470 — 2 — 472 Reverse mortgage interests, net — 56 — (341 ) — (285 ) Other assets 13 220 (9 ) (121 ) — 103 Payables and accrued liabilities — (67 ) 1 9 — (57 ) Net cash attributable to operating activities 13 861 1 (454 ) — 421 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing Activities Property and equipment additions, net of disposals — (36 ) — (21 ) — (57 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (715 ) — — — (715 ) Purchase of reverse mortgage interests — (4,816 ) — — — (4,816 ) Proceeds on sale of forward and reverse mortgage servicing rights — 44 — — — 44 Business acquisitions, net — — — (46 ) — (46 ) Net cash attributable to investing activities — (5,523 ) — (67 ) — (5,590 ) Financing Activities Increase (decrease) in warehouse facilities — 245 — 76 — 321 Proceeds from HECM securitizations — — — 560 — 560 Repayment of HECM securitizations — — — (161 ) — (161 ) Increase (decrease) in participating interest financing in reverse mortgage interests — 4,541 — — — 4,541 Increase (decrease) in advance facilities — (333 ) — 77 — (256 ) Repayment of excess spread financing — (210 ) — — — (210 ) Issuance of excess spread financing — 386 — — — 386 Repayment of nonrecourse debt - legacy assets — (2 ) — (11 ) — (13 ) Repurchase of unsecured senior notes — (103 ) — — — (103 ) Repurchase of common stock (7 ) — — — — (7 ) Issuance of common stock, net of issuance costs — 498 — — — 498 Transfers (to) from restricted cash, net — (22 ) — (24 ) — (46 ) Surrender of shares relating to stock vesting (6 ) — — — — (6 ) Debt financing costs — (21 ) — — — (21 ) Net cash attributable to financing activities (13 ) 4,979 — 517 — 5,483 Net increase (decrease) in cash and cash equivalents — 317 1 (4 ) — 314 Cash and cash equivalents at beginning of year — 280 — 19 — 299 Cash and cash equivalents at end of year $ — $ 597 $ 1 $ 15 $ — $ 613 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2016 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating Activities Net income (loss) attributable to Nationstar $ 19 $ 19 $ 20 $ 24 $ (63 ) $ 19 Reconciliation of net income (loss) to net cash attributable to operating activities: Noncontrolling interest — (3 ) — — — (3 ) (Gain)/loss from subsidiaries (19 ) (44 ) — — 63 — Net gain on mortgage loans held for sale — (768 ) — (29 ) — (797 ) Provision for servicing reserves — 124 — — — 124 Fair value changes and amortization of mortgage servicing rights — 484 — — — 484 Fair value changes in mortgage loans held for sale — 15 — — — 15 Fair value changes in excess spread financing — 3 — 22 — 25 Fair value changes in mortgage servicing rights financing liability — (42 ) — — — (42 ) Amortization (accretion) of premiums (discounts) — (9,907 ) — 9,971 — 64 Depreciation and amortization — 43 — 20 — 63 Shared based compensation — 15 — 6 — 21 Loss on impairment of assets — 25 — — — 25 Other (gain) loss — 2 — — — 2 Repurchases of forward loans assets out of Ginnie Mae securitizations — (1,432 ) — — — (1,432 ) Mortgage loans originated and purchased, net of fees — (19,612 ) — (794 ) — (20,406 ) Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment — 31,024 — (8,993 ) — 22,031 Excess tax benefit (deficiency) from share based compensation — 4 — — — 4 Changes in assets and liabilities: Advances and other receivables, net — 566 — — — 566 Reverse mortgage interests, net — 281 — (35 ) — 246 Other assets 117 (741 ) (21 ) 586 — (59 ) Payables and accrued liabilities — 41 1 (21 ) — 21 Net cash attributable to operating activities 117 97 — 757 — 971 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing Activities Property and equipment additions, net of disposals — (55 ) 1 (8 ) — (62 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (120 ) — (24 ) — (144 ) Purchase of reverse mortgage interests — (3,600 ) — — — (3,600 ) Proceeds on sale of forward and reverse mortgage servicing rights — 68 — — — 68 Net cash attributable to investing activities — (3,707 ) 1 (32 ) — (3,738 ) Financing Activities Increase (decrease) in warehouse facilities — 637 — (108 ) — 529 Proceeds from HECM securitizations — (4 ) — 728 — 724 Repayment of HECM securitizations — — — (713 ) — (713 ) Increase in participating interest financing in reverse mortgage interests — 2,939 — — — 2,939 Decrease in advance facilities — (51 ) — (499 ) — (550 ) Repayment of excess spread financing — (198 ) — — — (198 ) Issuance of excess spread financing — 155 — — — 155 Repayment of nonrecourse debt - legacy assets — — — (18 ) — (18 ) Repurchase of unsecured senior notes — (40 ) — — — (40 ) Repurchase of common stock (114 ) — — — — (114 ) Transfers (to) from restricted cash, net — 45 — (96 ) — (51 ) Excess tax (deficiency) benefit from share based compensation — (4 ) — — — (4 ) Surrender of shares relating to stock vesting (3 ) — — — — (3 ) Debt financing costs — (13 ) — — — (13 ) Net cash attributable to financing activities (117 ) 3,466 — (706 ) — 2,643 Net increase (decrease) in cash — (144 ) 1 19 — (124 ) Cash and cash equivalents at beginning of year — 597 1 15 — 613 Cash and cash equivalents at end of year $ — $ 453 $ 2 $ 34 $ — $ 489 |
Quarterly Financial Data (Una52
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Supplementary Data | The unaudited quarterly consolidated results of operations are summarized in the tables below. Year Ended December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Service related revenue, net $ 84 $ 113 $ 305 $ 616 Net gain on mortgage loans held for sale 171 216 237 173 Total revenues 255 329 542 789 Total expenses 412 413 407 412 Total other income (expense), net (58 ) (60 ) (64 ) (60 ) Income (loss) before income tax expense (benefit) (215 ) (144 ) 71 317 Less: Income tax expense (benefit) (82 ) (53 ) 29 119 Net income (loss) (133 ) (91 ) 42 198 Less: Net income (loss) attributable to noncontrolling interests (1 ) 1 (3 ) — Net income (loss) attributable to Nationstar $ (132 ) $ (92 ) $ 45 $ 198 Net income (loss) per common share attributable to common stockholders: Basic $ (1.28 ) $ (0.92 ) $ 0.46 $ 2.02 Diluted $ (1.28 ) $ (0.92 ) $ 0.46 $ 2.01 Year Ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Service related revenue, net $ 215 $ 458 $ 211 $ 421 Net gain on mortgage loans held for sale 167 164 186 167 Total revenues 382 622 397 588 Total expenses 384 441 446 417 Total other income (expense), net (73 ) (61 ) (63 ) (50 ) Income (loss) before income tax expense (benefit) (75 ) 120 (112 ) 121 Less: Income tax expense (benefit) (28 ) 44 (47 ) 42 Net income (loss) (47 ) 76 (65 ) 79 Less: Net income attributable to noncontrolling interests 2 1 1 — Net income (loss) attributable to Nationstar $ (49 ) $ 75 $ (66 ) $ 79 Net income (loss) per common share attributable to common shareholders: Basic $ (0.54 ) $ 0.69 $ (0.62 ) $ 0.85 Diluted $ (0.54 ) $ 0.69 $ (0.62 ) $ 0.84 |
Description of Business and B53
Description of Business and Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total revenues | $ 789 | $ 542 | $ 329 | $ 255 | $ 588 | $ 397 | $ 622 | $ 382 | $ 1,915 | $ 1,989 | $ 1,973 |
ASU 2016-02 | Assets and Lease Obligations | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Monetary impact of adoption of ASU | 118 | ||||||||||
As presented | Advances and other receivables, net | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 2,223 | 2,223 | |||||||||
As presented | Other assets | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 759 | 759 | |||||||||
Reclassification | ASU 2015-03 | Advances and other receivables, net | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 0 | 0 | |||||||||
Reclassification | ASU 2015-03 | Other assets | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | (38) | (38) | |||||||||
Reclassification | Other | Advances and other receivables, net | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 189 | 189 | |||||||||
Reclassification | Other | Other assets | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | (189) | (189) | |||||||||
As adjusted | Advances and other receivables, net | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 2,412 | 2,412 | |||||||||
As adjusted | Other assets | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 532 | 532 | |||||||||
Unsecured senior notes | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 17 | 23 | 17 | 23 | |||||||
Unsecured senior notes | As presented | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 2,049 | 2,049 | |||||||||
Unsecured senior notes | Reclassification | ASU 2015-03 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | (23) | (23) | |||||||||
Unsecured senior notes | Reclassification | Other | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 0 | 0 | |||||||||
Unsecured senior notes | As adjusted | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 2,026 | 2,026 | |||||||||
Advance facilities | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 0 | 6 | 0 | 6 | |||||||
Advance facilities | As presented | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 1,646 | 1,646 | |||||||||
Advance facilities | Reclassification | ASU 2015-03 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | (6) | (6) | |||||||||
Advance facilities | Reclassification | Other | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 0 | 0 | |||||||||
Advance facilities | As adjusted | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 1,640 | 1,640 | |||||||||
Warehouse facilities | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 2 | 3 | 2 | 3 | |||||||
Warehouse facilities | As presented | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 1,894 | 1,894 | |||||||||
Warehouse facilities | Reclassification | ASU 2015-03 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | (4) | (4) | |||||||||
Warehouse facilities | Reclassification | Other | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 0 | 0 | |||||||||
Warehouse facilities | As adjusted | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 1,890 | 1,890 | |||||||||
Other nonrecourse debt | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | $ 7 | 4 | 7 | 4 | |||||||
Other nonrecourse debt | As presented | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 6,671 | 6,671 | |||||||||
Other nonrecourse debt | Reclassification | ASU 2015-03 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | (5) | (5) | |||||||||
Other nonrecourse debt | Reclassification | Other | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | 0 | 0 | |||||||||
Other nonrecourse debt | As adjusted | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Debt Issuance Costs, Net | $ 6,666 | 6,666 | |||||||||
Xome | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Total revenues | $ 423 | $ 437 | $ 305 |
Significant Accounting Polici54
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Assets at Fair Value [Line Items] | |||
Advance, net of reserves | $ 1,749 | $ 2,412 | |
Reverse mortgage interests, net | 11,033 | 7,514 | |
Advertising costs | $ 58 | $ 61 | $ 42 |
Minimum | |||
Servicing Assets at Fair Value [Line Items] | |||
Servicing fee rate percentage | 0.21% | ||
Maximum | |||
Servicing Assets at Fair Value [Line Items] | |||
Servicing fee rate percentage | 0.50% | ||
Prior Servicers | |||
Servicing Assets at Fair Value [Line Items] | |||
Advance, net of reserves | $ 94 | ||
Reverse mortgage interests, net | $ 38 |
Mortgage Servicing Rights (MS55
Mortgage Servicing Rights (MSR) and Related Liabilities - MSRs and Related Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Mortgage Servicing Rights [Line Items] | |||
Mortgage servicing rights at fair value | $ 3,160 | $ 3,358 | |
Mortgage servicing rights | 3,166 | 3,367 | |
Mortgage servicing liabilities - amortized cost | 48 | 25 | |
Mortgage servicing rights financing liability - fair value | 27 | 69 | |
MSR related liabilities - nonrecourse | 1,241 | 1,301 | |
Mortgage Servicing Rights | |||
Mortgage Servicing Rights [Line Items] | |||
Mortgage servicing rights at fair value | 3,160 | 3,358 | |
Servicing asset at amortized cost | 6 | 9 | $ 12 |
Mortgage servicing liabilities - amortized cost | 48 | 25 | $ 65 |
Fair Value, Measurements, Recurring | |||
Mortgage Servicing Rights [Line Items] | |||
Mortgage servicing rights at fair value | 3,160 | 3,358.3 | |
Excess spread financing - fair value | 1,214 | 1,232 | |
Mortgage servicing rights financing liability - fair value | $ 27 | $ 68.7 |
Mortgage Servicing Rights (MS56
Mortgage Servicing Rights (MSR) and Related Liabilities - MSR's at Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | 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 | 3,160 | $ 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 |
Servicing resulting from transfers of financial assets | 208 | 221 |
Purchases of servicing assets | 157 | 711 |
Sales of servicing assets | (67) | (46) |
Due to changes in model inputs | (79) | (58) |
Other changes in fair value | (417) | (420) |
Fair value at the end of the period | $ 3,160 | $ 3,358 |
Mortgage Servicing Rights (MS57
Mortgage Servicing Rights (MSR) and Related Liabilities - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 28, 2013 | |
Servicing Assets at Fair Value [Line Items] | |||||
Accretion expense | $ 14,000,000 | $ 40,000,000 | |||
Forward MSRs Sold, Subservicing Retained | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Principal amount outstanding on mortgage servicing rights | $ 10,494,000,000 | 10,494,000,000 | 4,647,000,000 | ||
Forward MSRs Sold | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Principal amount outstanding on mortgage servicing rights | 11,546,000,000 | 11,546,000,000 | 4,705,000,000 | ||
Reverse mortgage interests, net | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Principal amount outstanding on mortgage servicing rights | 38,940,000,000 | 38,940,000,000 | 29,855,000,000 | $ 83,000,000 | |
Reverse Loan Portfolio | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Purchase of servicing rights | 9,305,000,000 | ||||
Mortgage Servicing Rights | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Principal amount outstanding on mortgage servicing rights | $ 312,076,000,000 | 312,076,000,000 | 345,676,000,000 | ||
Impairment | 0 | ||||
Purchase of servicing rights | 0 | 0 | |||
Acquired mortgage servicing liability | 37,000,000 | 0 | |||
Accretion expense | 14,000,000 | 40,000,000 | |||
New Residential | Transaction with Affiliates to Acquire Certain Forward MSRs or Various Portfolios | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Amount of transaction | $ 155,000,000 | $ 386,000,000 | $ 171,000,000 |
Mortgage Servicing Rights (MS58
Mortgage Servicing Rights (MSR) and Related Liabilities - UPB and Related Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Servicing Assets at Fair Value [Line Items] | ||
Mortgage servicing rights at fair value | $ 3,160 | $ 3,358 |
Mortgage Servicing Rights | ||
Servicing Assets at Fair Value [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 312,076 | 345,676 |
Mortgage servicing rights at fair value | 3,160 | 3,358 |
Mortgage Servicing Rights | Credit sensitive | ||
Servicing Assets at Fair Value [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 198,935 | 224,334 |
Mortgage servicing rights at fair value | 1,818 | 2,017 |
Mortgage Servicing Rights | Interest sensitive | ||
Servicing Assets at Fair Value [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 113,141 | 121,342 |
Mortgage servicing rights at fair value | $ 1,342 | $ 1,341 |
Mortgage Servicing Rights (MS59
Mortgage Servicing Rights (MSR) and Related Liabilities - Fair Value Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Mortgage Servicing Rights | Credit sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate | 11.60% | 11.60% |
Total prepayment speeds | 15.40% | 16.50% |
Expected weighted-average life (in years) | 6 years | 5 years 10 months 24 days |
Mortgage Servicing Rights | Interest sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate | 9.30% | 9.10% |
Total prepayment speeds | 10.70% | 12.40% |
Expected weighted-average life (in years) | 6 years 9 months 18 days | 6 years 1 month |
Excess Spread Financing | Low | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Excess Spread Financing, Prepayment Speeds | 6.10% | 6.90% |
Excess Spread Financing, Average Life (Years) | 4 years 1 month 6 days | 4 years 2 months 12 days |
Excess Spread Financing, Discount Rate | 8.50% | 8.50% |
Excess Spread Financing, Recapture Rate | 6.70% | 6.80% |
Excess Spread Financing | High | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Excess Spread Financing, Prepayment Speeds | 21.20% | 20.00% |
Excess Spread Financing, Average Life (Years) | 8 years 6 months | 7 years 9 months 18 days |
Excess Spread Financing, Discount Rate | 14.10% | 14.10% |
Excess Spread Financing, Recapture Rate | 29.80% | 30.00% |
Excess Spread Financing | Weighted Average | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Excess Spread Financing, Prepayment Speeds | 13.90% | 15.40% |
Excess Spread Financing, Average Life (Years) | 6 years 3 months 18 days | 5 years 10 months 24 days |
Excess Spread Financing, Discount Rate | 10.80% | 11.20% |
Excess Spread Financing, Recapture Rate | 19.00% | 17.70% |
Financing rates | MSR Financing Liability | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Advance financing rates | 3.20% | 3.00% |
Recovery rates | MSR Financing Liability | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Annual advance recovery rates | 23.90% | 20.90% |
Mortgage Servicing Rights (MS60
Mortgage Servicing Rights (MSR) and Related Liabilities - Fair Value Sensitivity Analysis (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Mortgage Servicing Rights | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Total prepayment speeds, 10% adverse change | $ (117) | $ (132) |
Total prepayment speeds, 20% adverse change | (224) | (253) |
Mortgage Servicing Rights | 100 bps Adverse Change | ||
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 | (114) | (123) |
Mortgage Servicing Rights | 200 bps Adverse Change | ||
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 | (221) | (238) |
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 | 85 | 76 |
Excess Spread Financing | 100 bps Adverse Change | ||
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 | 49 | 42 |
Excess Spread Financing | 200 bps Adverse Change | ||
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 | $ 101 | $ 87 |
Mortgage Servicing Rights (MS61
Mortgage Servicing Rights (MSR) and Related Liabilities - MSR's at Amortized Cost (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||
Fair value of servicing asset, amortized cost | $ 15 | $ 29 |
Servicing Liability at Amortized Value [Roll Forward] | ||
Balance at the beginning of the period | 25 | |
Amortization/accretion | (14) | (40) |
Balance at the end of the period | 48 | 25 |
Fair value of servicing liability, amortized cost | 26 | 9 |
Mortgage Servicing Rights | ||
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||
Balance at the beginning of the period | 9 | 12 |
Purchase of servicing rights/assumptions of obligations | 0 | 0 |
Amortization/accretion | (3) | (3) |
Balance at the end of the period | 6 | 9 |
Servicing Liability at Amortized Value [Roll Forward] | ||
Balance at the beginning of the period | 25 | 65 |
Purchase of servicing rights/assumptions of obligations | 37 | 0 |
Amortization/accretion | (14) | (40) |
Balance at the end of the period | $ 48 | $ 25 |
Mortgage Servicing Rights (MS62
Mortgage Servicing Rights (MSR) and Related Liabilities - Servicing Fees (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Transfers and Servicing [Abstract] | |||
Contractually specified servicing fees including subservicing fees | $ 1,045 | $ 1,117 | $ 1,064 |
Other service-related income | 279 | 233 | 229 |
Incentive and modification income | 113 | 107 | 126 |
Late fees | 82 | 70 | 65 |
Reverse servicing fees | 57 | 88 | 68 |
Mark-to-market | (211) | (112) | 74 |
Counter party revenue share | (298) | (301) | (320) |
Amortization, net of accretion | (314) | (320) | (218) |
Total servicing revenues | 753 | 882 | 1,088 |
Provision for reserves | 115 | ||
Accretion expense | $ 200 | $ 172 | $ 144 |
Advances and Other Receivable63
Advances and Other Receivables, Net - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Servicing advances | $ 1,614 | $ 2,254 |
Receivables from agencies, investors and prior services | 319 | 288 |
Reserves | (184) | (130) |
Total advances and other receivables, net | $ 1,749 | $ 2,412 |
Advances and Other Receivable64
Advances and Other Receivables, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accretion of service advances discount | $ 1 | $ 2 | $ 12 |
Reclassed from Other Assets | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Reserves of prior period adjustment | 100 | ||
Prior period adjustment | $ 189 | ||
Advances and other receivables, net | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Increase of reserves | 91 | ||
Other activity, write offs, net of other reserves | 152 | ||
Fair Value Mark-to-Market Adjustment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Increase of reserves charged to earnings | $ 115 |
Reverse Mortgage Interests, N65
Reverse Mortgage Interests, Net - (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Reverse Mortgage Interest [Abstract] | ||
Participating interests in HMBS | $ 8,839 | $ 5,864 |
Other interests securitized | 753 | 715 |
Unsecuritized interests | 1,572 | 988 |
Reserves | (131) | (53) |
Total reverse mortgage interests, net | $ 11,033 | $ 7,514 |
Reverse Mortgage Interests, N66
Reverse Mortgage Interests, Net - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2016 | Jun. 30, 2016 | May 31, 2015 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Other interests securitized | $ 753 | $ 753 | $ 753 | $ 715 | ||||
Unsecuritized interests | 1,572 | 1,572 | 1,572 | 988 | ||||
Increase in reverse mortgage reserves through portfolio acquisitions | 61 | |||||||
Increase in reverse mortgage reserves through counterparty settlements | 23 | |||||||
Increase in reverse mortgage reserves through provision for loan loss adjustments | 9 | |||||||
Decrease in reverse mortgage reserves related to charge-offs | 15 | |||||||
Sale of mortgage loans held for sale | 21,957 | 20,100 | $ 0 | |||||
Net gain on mortgage loans held for sale | 797 | 684 | 597 | |||||
Non-recourse debt | 9,631 | 9,631 | 9,631 | 6,666 | ||||
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 | 3 | ||||||
Unsecuritized HECM | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Interest earned on HECM loans | 344 | 268 | $ 79 | |||||
Participating Interests in HMBS | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
UPB securitized | 413 | 413 | 413 | |||||
Trust 2016-1, Trust 2016-2 and Trust 2016-3 | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Other interests securitized | 775 | 775 | 775 | |||||
Trust 2014-1 and Trust 2015-1 | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Unsecuritized interests | 458 | 458 | 458 | |||||
Reverse Mortgage Interests, Unsecuritized | HECM | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Repurchase of HECM loans | 3,176 | 2,274 | ||||||
Repurchase of HECM loans funded by prior servicer | 915 | $ 841 | ||||||
HECM Loan Portfolio | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Reverse mortgage interests | 3,748 | 3,748 | 3,748 | |||||
Non-recourse debt | 3,691 | 3,691 | 3,691 | |||||
Cash received | 91 | |||||||
Ginnie Mae HECM | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Acquired mortgage servicing liability | 3,840 | |||||||
Other assets | HECM Loan Portfolio | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Holdback receivable | $ 5 | $ 5 | $ 5 | |||||
Generation Mortgage | HMBS Securities | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Cash payment | $ 193 | |||||||
UPB assets acquired | 4,900 | |||||||
Liabilities assumed | $ 4,600 |
Reverse Mortgage Interests, N67
Reverse Mortgage Interests, Net - Unsecurtized Interests (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Reverse Mortgage Interest [Abstract] | ||
Repurchased HECM loans | $ 1,000 | $ 591 |
HECM related receivables | 301 | 290 |
Funded borrower draws not yet securitized | 236 | 83 |
Foreclosed assets | 35 | 24 |
Total unsecuritized interests | $ 1,572 | $ 988 |
Mortgage Loans Held for Sale 68
Mortgage Loans Held for Sale and Investment (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Mortgage Loans Held for Sale and Investment [Abstract] | |||
Mortgage loans held for sale - UPB | $ 1,759 | $ 1,374 | |
Mark-to-market adjustment | 29 | 56 | |
Total mortgage loans held for sale | 1,788 | 1,430 | $ 1,278 |
UPB | 106 | 31 | |
Fair Value | $ 103 | $ 29 |
Mortgage Loans Held for Sale 69
Mortgage Loans Held for Sale and Investment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Assets at Fair Value [Line Items] | |||
Mortgage loans held for sale in foreclosure | $ 84 | $ 16 | |
Sale of mortgage loans held for sale | 21,957 | 20,100 | $ 0 |
Gain on sale of mortgage loans held for sale | 543 | 440 | $ 0 |
Mortgage loans held for investment in foreclosure | 29 | 41 | |
Ginnie Mae HECM | |||
Servicing Assets at Fair Value [Line Items] | |||
Delinquent loans acquired | 317 | ||
Delinquent loans securitized or sold | 163 | ||
Purchased loans that have re-performed | 40 | ||
Mortgage Loans Held for Investment | |||
Servicing Assets at Fair Value [Line Items] | |||
Reclassifications from nonaccretable discount | $ 1 | $ 1 |
Mortgage Loans Held for Sale 70
Mortgage Loans Held for Sale and Investment - Reconciliation to Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 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 | 20,349 | 17,971 |
Loans sold | (21,399) | (19,659) |
Repurchase of loans out of Ginnie Mae securitizations | 1,432 | 1,827 |
Transfer of mortgage loans held for sale to claims receivable in advances and other receivables | (18) | (27) |
Net transfer of mortgage loans held for sale (to)/from REO in other assets | 9 | 41 |
Changes in fair value | (15) | (1) |
Mortgage loans held for sale – ending balance | $ 1,788 | $ 1,430 |
Mortgage Loans Held for Sale 71
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Investment (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage loans held for investment, net | $ 151 | $ 174 | |
Mortgage Loans Held for Investment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans held for investment, net – UPB | 216 | 250 | |
Transfer discount - non-accretable | (49) | (58) | |
Transfer discount - accretable | (13) | (15) | $ (16) |
Allowance for loan losses | (3) | (3) | |
Total mortgage loans held for investment, net | $ 151 | $ 174 |
Mortgage Loans Held for Sale 72
Mortgage Loans Held for Sale and Investment - Accretable Yield (Details) - Mortgage Loans Held for Investment - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at the beginning of the period | $ (15) | $ (16) |
Accretion | 3 | 2 |
Reclassifications from nonaccretable discount | (1) | (1) |
Balance at the end of the period | $ (13) | $ (15) |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 254 | $ 236 |
Less: Accumulated depreciation and amortization | (118) | (93) |
Total property and equipment, net | 136 | 143 |
Capitalized software costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 123 | 102 |
Estimated Useful Life | 5 years | |
Furniture, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 52 | 40 |
Furniture, fixtures, and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Furniture, fixtures, and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Long-term capital leases - computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 42 | 50 |
Estimated Useful Life | 5 years | |
Software in development and other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 21 | 31 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 16 | $ 13 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | $ 56,000,000 | $ 46,000,000 | $ 37,000,000 | |
Impairment of assets | $ 11,000,000 | $ 0 | $ 0 | |
Computer equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Term of capital leases | 3 years | |||
Software and Hardware | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment of assets | 10,000,000 | |||
Old Company Website | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment of assets | $ 1,000,000 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Accrued revenues | $ 165 | $ 180 | |
Loans subject to repurchase right from Ginnie Mae | 152 | 117 | |
Goodwill | 74 | 71 | $ 55 |
REO, net | 30 | 18 | |
Intangible assets | 28 | 50 | |
Deposits | 25 | 30 | |
Prepaid expenses | 16 | 20 | |
Receivables from affiliates, net | 6 | 8 | |
Other | 64 | 38 | |
Total other assets | $ 560 | $ 532 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Real estate owned loans with government or GSE guarantee | $ 21,000,000 | $ 15,000,000 | |
Goodwill | 74,000,000 | 71,000,000 | $ 55,000,000 |
Goodwill reclassification during the period | (3,000,000) | 7,000,000 | |
Goodwill impairment charge | 0 | 0 | 0 |
Impairment charge of intangible assets | 14,000,000 | 0 | 0 |
Amortization expense | 8,000,000 | 7,000,000 | $ 3,000,000 |
Experience 1, Inc | Xome | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | 20,000,000 | ||
Quantarium, LLC | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill reclassification during the period | 3,000,000 | ||
Quantarium, LLC | Xome | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | 3,000,000 | ||
Real Estate Digital, LLC | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill reclassification during the period | $ 7,000,000 | ||
Trade name | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment of finite lived assets | 13,000,000 | ||
Trade name | General and Administrative Costs | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment of finite lived assets | 13,000,000 | ||
Customer relationships | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment of finite lived assets | $ 1,000,000 |
Other Assets - Changes in the c
Other Assets - Changes in the carrying amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 71 | $ 55 |
Goodwill acquired during the period | 0 | 23 |
Goodwill reclassification during the period | 3 | (7) |
Balance at end of period | $ 74 | $ 71 |
Other Assets - Schedule of Inta
Other Assets - Schedule of Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Accumulated Amortization | $ (18,000,000) | $ (10,000,000) | |
Net Carrying Amount | $ 27,000 | ||
Finite-Lived Intangible Asset, Useful Life | 5 years 8 months 12 days | 6 years 10 months 24 days | |
Total, Gross Carrying Amount | $ 60,000,000 | $ 60,000,000 | |
Total, Impairment | (14,000,000) | 0 | $ 0 |
Total, Net Carrying Amount | 28,000,000 | 50,000,000 | |
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 27,000,000 | 27,000,000 | |
Finite-lived Intangible Assets, Impairment | (13,000,000) | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (8,000,000) | (6,000,000) | |
Net Carrying Amount | $ 6,000,000 | $ 21,000,000 | |
Finite-Lived Intangible Asset, Useful Life | 7 years 6 months | 7 years 8 months 12 days | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 20,000,000 | $ 20,000,000 | |
Finite-lived Intangible Assets, Impairment | (1,000,000) | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (6,000,000) | (3,000,000) | |
Net Carrying Amount | $ 13,000,000 | $ 17,000,000 | |
Finite-Lived Intangible Asset, Useful Life | 5 years 8 months 12 days | 6 years 7 months 6 days | |
Purchased intangible software | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 12,000,000 | $ 12,000,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (4,000,000) | (1,000,000) | |
Net Carrying Amount | $ 8,000,000 | $ 11,000,000 | |
Finite-Lived Intangible Asset, Useful Life | 4 years 10 months 24 days | 5 years 10 months 24 days | |
Licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-Lived Intangible Assets | $ 1,000,000 | $ 1,000,000 |
Other Assets - Future Amortizat
Other Assets - Future Amortization (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
2,017 | $ 5 |
2,018 | 5 |
2,019 | 5 |
2,020 | 5 |
2,021 | 4 |
Thereafter | 3 |
Net Carrying Amount | $ 27 |
Derivative Financial Instrume80
Derivative Financial Instruments - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($)derivative_instrument | |
Derivative [Line Items] | ||||
Margin deposit assets | $ 29 | $ 4 | ||
Loss on derivative instruments | $ 42 | |||
Interest Rate Cap | ||||
Derivative [Line Items] | ||||
Notional amount | $ 100 | |||
Interest Rate Cap | Interest Rate Cap 1 | ||||
Derivative [Line Items] | ||||
Number of derivative instruments entered into | derivative_instrument | 2 | |||
Notional amount | $ 800 | |||
Interest Rate Cap | Interest Rate Cap 2 | ||||
Derivative [Line Items] | ||||
Notional amount | $ 400 |
Derivative Financial Instrume81
Derivative Financial Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | ||
Derivative instrument, fair value (less than) | $ 0.1 | |
Loan sale commitments | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 1 | $ 176 |
Fair Value - Asset | 0.1 | 0.3 |
Recorded Gains / (Losses) | (0.2) | 0.3 |
IRLCs | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 3,675 | 2,768 |
Fair Value - Asset | 92.2 | 89.1 |
Recorded Gains / (Losses) | 3.1 | 1.2 |
IRLCs | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 176 | 2 |
Fair Value - Liability | 1.1 | 0 |
Recorded Gains / (Losses) | (1.1) | 0 |
Forward sales of MBS | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 2,580 | 1,666 |
Fair Value - Asset | 39.2 | 6.1 |
Recorded Gains / (Losses) | 33.1 | 5.8 |
Forward sales of MBS | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 1,689 | 1,807 |
Fair Value - Liability | 10 | 3.7 |
Recorded Gains / (Losses) | (6.3) | 14.6 |
LPCs | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 203 | 388 |
Fair Value - Asset | 1.9 | 3.9 |
Recorded Gains / (Losses) | (2) | 1.9 |
LPCs | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 111 | 314 |
Fair Value - Liability | 1.5 | 1.5 |
Recorded Gains / (Losses) | 0 | (1.4) |
Eurodollar futures | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 35 | 176 |
Fair Value - Asset | 0 | 0.1 |
Recorded Gains / (Losses) | (0.1) | 0.1 |
Eurodollar futures | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 27 | 95 |
Fair Value - Liability | 0 | 0.1 |
Recorded Gains / (Losses) | 0.1 | (0.1) |
Interest rate swaps and caps | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 9 | 846 |
Fair Value - Asset | 0.1 | 0.5 |
Recorded Gains / (Losses) | (0.4) | (0.4) |
Interest rate swaps and caps | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 9 | 13 |
Fair Value - Liability | 0.1 | 0.5 |
Recorded Gains / (Losses) | $ 0.4 | $ (0.4) |
Indebtedness - Notes Payable (D
Indebtedness - Notes Payable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Capacity Amount | $ 6,870,000,000 | $ 7,230,000,000 |
Outstanding debt | 1,096,000,000 | 1,640,000,000 |
Advance facilities | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | 0 | (6,000,000) |
Warehouse facilities | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | (2,000,000) | (3,000,000) |
Servicing | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 1,096,000,000 | 1,646,000,000 |
Collateral Pledged | 1,319,000,000 | 1,925,000,000 |
Outstanding debt | 1,096,000,000 | 1,640,000,000 |
Servicing | Nationstar agency advance receivables trust | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 650,000,000 | |
Outstanding, gross | 485,000,000 | 763,000,000 |
Collateral Pledged | 578,000,000 | 823,000,000 |
Servicing | Nationstar mortgage advance receivable trust | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 500,000,000 | |
Outstanding, gross | 260,000,000 | 335,000,000 |
Collateral Pledged | 301,000,000 | 394,000,000 |
Servicing | Nationstar agency advance financing facility | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 400,000,000 | |
Outstanding, gross | 164,000,000 | 310,000,000 |
Collateral Pledged | 186,000,000 | 364,000,000 |
Servicing | MBS advance financing facility | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 130,000,000 | |
Outstanding, gross | 55,000,000 | 82,000,000 |
Collateral Pledged | 60,000,000 | 89,000,000 |
Servicing | MBS servicer advance facility (2014) | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 125,000,000 | |
Outstanding, gross | 88,000,000 | 106,000,000 |
Collateral Pledged | 142,000,000 | 185,000,000 |
Servicing | MBS advance financing facility (2012) | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 50,000,000 | |
Outstanding, gross | 44,000,000 | 50,000,000 |
Collateral Pledged | 52,000,000 | 70,000,000 |
Originations | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 2,423,000,000 | 1,893,000,000 |
Collateral Pledged | 2,602,000,000 | 2,071,000,000 |
Outstanding debt | 2,421,000,000 | 1,890,000,000 |
Originations | $1,200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 1,200,000,000 | |
Outstanding, gross | 682,000,000 | 634,000,000 |
Collateral Pledged | 747,000,000 | 678,000,000 |
Originations | $900 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 900,000,000 | |
Outstanding, gross | 496,000,000 | 545,000,000 |
Collateral Pledged | 539,000,000 | 622,000,000 |
Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 500,000,000 | |
Outstanding, gross | 229,000,000 | 175,000,000 |
Collateral Pledged | 237,000,000 | 179,000,000 |
Originations | $500 warehouse Facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 500,000,000 | |
Outstanding, gross | 250,000,000 | 0 |
Collateral Pledged | 256,000,000 | 0 |
Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 500,000,000 | |
Outstanding, gross | 410,000,000 | 257,000,000 |
Collateral Pledged | 415,000,000 | 274,000,000 |
Originations | $350 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 350,000,000 | |
Outstanding, gross | 12,000,000 | 98,000,000 |
Collateral Pledged | 13,000,000 | 112,000,000 |
Originations | $350 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 350,000,000 | |
Outstanding, gross | 173,000,000 | 45,000,000 |
Collateral Pledged | 189,000,000 | 50,000,000 |
Originations | $300 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 300,000,000 | |
Outstanding, gross | 153,000,000 | 23,000,000 |
Collateral Pledged | 180,000,000 | 28,000,000 |
Originations | $200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 200,000,000 | |
Outstanding, gross | 7,000,000 | 8,000,000 |
Collateral Pledged | 8,000,000 | 9,000,000 |
Originations | $40 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 40,000,000 | |
Outstanding, gross | 11,000,000 | 0 |
Collateral Pledged | 18,000,000 | 0 |
Originations | $100 warehouse facility (HCM) | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 100,000,000 | |
Outstanding, gross | 0 | 55,000,000 |
Collateral Pledged | 0 | 60,000,000 |
Originations | $75 warehouse facility (HCM) | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 75,000,000 | |
Outstanding, gross | 0 | 53,000,000 |
Collateral Pledged | 0 | 59,000,000 |
Mortgage loans, net | Originations | ||
Debt Instrument [Line Items] | ||
Collateral Pledged | 1,427,000,000 | 1,625,000,000 |
Outstanding debt | 1,693,000,000 | 1,509,000,000 |
Reverse mortgage interests, net | Originations | ||
Debt Instrument [Line Items] | ||
Collateral Pledged | 834,000,000 | 390,000,000 |
Outstanding debt | 730,000,000 | 351,000,000 |
MSR and other collateral | Originations | ||
Debt Instrument [Line Items] | ||
Collateral Pledged | 341,000,000 | 56,000,000 |
Outstanding debt | $ 0 | $ 33,000,000 |
LIBOR | Servicing | Nationstar mortgage advance receivable trust | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 1.90% | |
LIBOR | Servicing | Nationstar agency advance financing facility | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.00% | |
LIBOR | Servicing | MBS advance financing facility | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.50% | |
LIBOR | Servicing | MBS servicer advance facility (2014) | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 3.50% | |
LIBOR | Servicing | MBS advance financing facility (2012) | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 5.00% | |
LIBOR | Originations | $300 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.30% | |
LIBOR | Originations | $200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 1.50% | |
LIBOR | Originations | $40 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 3.00% | |
Minimum | LIBOR | Servicing | Nationstar agency advance receivables trust | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.00% | |
Minimum | LIBOR | Originations | $1,200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.00% | |
Minimum | LIBOR | Originations | $900 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 1.80% | |
Minimum | LIBOR | Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 1.80% | |
Minimum | LIBOR | Originations | $500 warehouse Facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.10% | |
Minimum | LIBOR | Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.00% | |
Minimum | LIBOR | Originations | $350 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.20% | |
Minimum | LIBOR | Originations | $350 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.50% | |
Minimum | LIBOR | Originations | $100 warehouse facility (HCM) | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.50% | |
Minimum | LIBOR | Originations | $75 warehouse facility (HCM) | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.30% | |
Maximum | LIBOR | Servicing | Nationstar agency advance receivables trust | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.80% | |
Maximum | LIBOR | Originations | $1,200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.90% | |
Maximum | LIBOR | Originations | $900 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 3.30% | |
Maximum | LIBOR | Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.80% | |
Maximum | LIBOR | Originations | $500 warehouse Facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.40% | |
Maximum | LIBOR | Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.80% | |
Maximum | LIBOR | Originations | $350 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.80% | |
Maximum | LIBOR | Originations | $350 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.60% | |
Maximum | LIBOR | Originations | $100 warehouse facility (HCM) | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.80% | |
Maximum | LIBOR | Originations | $75 warehouse facility (HCM) | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.90% |
Indebtedness - Unsecured Senior
Indebtedness - Unsecured Senior Notes (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Unsecured senior notes principal amount | $ 2,007,000,000 | $ 2,049,000,000 |
Unsecured senior notes, net of unamortized debt issuance costs | 1,990,000,000 | 2,026,000,000 |
Unsecured Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | (17,000,000) | (23,000,000) |
Unsecured senior notes, net of unamortized debt issuance costs | 1,990,000,000 | |
Face amount | 2,007,000,000 | |
Unsecured Senior Notes | $600 face value, 6.500% interest rate payable semi-annually, due July 2021 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes, net of unamortized debt issuance costs | 595,000,000 | 597,000,000 |
Face amount | $ 600,000,000 | |
Interest rate | 6.50% | |
Unsecured Senior Notes | $475 face value, 6.500% interest rate payable semi-annually, due August 2018 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes, net of unamortized debt issuance costs | $ 461,000,000 | 475,000,000 |
Face amount | $ 475,000,000 | |
Interest rate | 6.50% | |
Unsecured Senior Notes | $400 face value, 7.875% interest rate payable semi-annually, due October 2020 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes, net of unamortized debt issuance costs | $ 400,000,000 | 400,000,000 |
Face amount | $ 400,000,000 | |
Interest rate | 7.875% | |
Unsecured Senior Notes | $375 face value, 9.625% interest rate payable semi-annually, due May 2019 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes, net of unamortized debt issuance costs | $ 345,000,000 | 363,000,000 |
Face amount | $ 375,000,000 | |
Interest rate | 9.625% | |
Unsecured Senior Notes | $300 face value, 6.500% interest rate payable semi-annually, due June 2022 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes, net of unamortized debt issuance costs | $ 206,000,000 | $ 214,000,000 |
Face amount | $ 300,000,000 | |
Interest rate | 6.50% |
- Schedule of Notes Maturity (D
- Schedule of Notes Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Unsecured senior notes, net of unamortized debt issuance costs | $ 1,990 | $ 2,026 |
Unsecured Senior Notes | ||
Debt Instrument [Line Items] | ||
2,017 | 0 | |
2,018 | 461 | |
2,019 | 345 | |
2,020 | 400 | |
2,021 | 595 | |
Thereafter | 206 | |
Unsecured senior notes principal amount | 2,007 | |
Unsecured debt issuance costs | (17) | $ (23) |
Unsecured senior notes, net of unamortized debt issuance costs | $ 1,990 |
Indebtedness - Non-Recourse Deb
Indebtedness - Non-Recourse Debt (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Non-recourse debt | $ 9,631 | $ 6,666 |
Participating Interest Financing | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 8,914 | 5,947 |
Trust 2014-1 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 0 | 227 |
Trust 2015-1 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 0 | 222 |
Trust 2015-2 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 114 | 209 |
Trust 2016-1 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 194 | 0 |
Trust 2016-2 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 158 | 0 |
Trust 2016-3 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 208 | 0 |
Legacy Asset | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 50 | 65 |
Other | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 9,638 | 6,670 |
Non-recourse debt - legacy assets | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (7) | $ (4) |
Non-recourse debt - legacy assets | Trust 2014-1 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 0 | |
Non-recourse debt - legacy assets | Trust 2015-1 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 0 | |
Non-recourse debt - legacy assets | Trust 2015-2 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 140 | |
Non-recourse debt - legacy assets | Trust 2016-1 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 230 | |
Non-recourse debt - legacy assets | Trust 2016-2 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 179 | |
Non-recourse debt - legacy assets | Trust 2016-3 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 229 | |
Non-recourse debt - legacy assets | Legacy Asset | ||
Debt Instrument [Line Items] | ||
Securitized Amount | $ 211 |
Indebtedness - Narrative (Detai
Indebtedness - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 12, 2014 | Nov. 30, 2009 | |
Debt Instrument [Line Items] | |||||
Maximum percentage redeemable on secured debt | 35.00% | ||||
Principal amount outstanding on securitized financing | $ 222 | ||||
Non-recourse debt | $ 9,631 | $ 6,666 | |||
Minimum tangible net worth | 682 | ||||
Unused borrowing capacity | 3,351 | 3,690 | |||
Capacity Amount | 6,870 | 7,230 | |||
Trust 2014-1 | |||||
Debt Instrument [Line Items] | |||||
Non-recourse debt | 0 | 227 | |||
Legacy Asset | |||||
Debt Instrument [Line Items] | |||||
Non-recourse debt | 50 | 65 | |||
Other Nonrecourse Debt | |||||
Debt Instrument [Line Items] | |||||
Unpaid principal outstanding on securitized financing | 58 | 75 | |||
Other Nonrecourse Debt | Trust 2014-1 | |||||
Debt Instrument [Line Items] | |||||
Proceeds from sale of notes | $ 73 | ||||
Other Nonrecourse Debt | 2014-1 HECM securitization - Class A Notes | |||||
Debt Instrument [Line Items] | |||||
Portion of notes that were retained | $ 70 | ||||
Other Nonrecourse Debt | 2014-1 HECM securitization - Class M Notes | |||||
Debt Instrument [Line Items] | |||||
Portion of notes that were retained | $ 36 | ||||
Secured Debt | Legacy Asset | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 7.50% | ||||
Securities Pledged as Collateral | |||||
Debt Instrument [Line Items] | |||||
Principal amount outstanding on securitized financing | $ 208 | $ 242 | |||
Minimum | Other Nonrecourse Debt | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 0.80% | ||||
Minimum | Secured Debt | HECM Securitizations | |||||
Debt Instrument [Line Items] | |||||
Weighted average useful life (in years) | 1 year | ||||
Interest rate | 2.00% | ||||
Maximum | Other Nonrecourse Debt | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 7.00% | ||||
Maximum | Secured Debt | HECM Securitizations | |||||
Debt Instrument [Line Items] | |||||
Weighted average useful life (in years) | 2 years | ||||
Interest rate | 7.40% |
(Details)
(Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | |||
Payables to servicing and subservicing investors | $ 655 | $ 484 | |
Loans subject to repurchase from Ginnie Mae | 152 | 117 | |
Accrued bonus and payroll | 95 | 96 | |
Taxes | 84 | 81 | |
Payable to insurance carriers and insurance cancellation reserves | 73 | 70 | |
Accrued interest | 65 | 61 | |
Payable to GSEs and securitized trusts | 58 | 113 | |
Accrued liabilities and accounts payable | 49 | 73 | |
Professional and legal | 47 | 43 | |
Margin call deposits | 29 | 4 | |
Lease obligations | 24 | 13 | |
MSR purchases payable including advances | 21 | 22 | |
Repurchase reserves | 18 | 26 | $ 29 |
Other | 100 | 93 | |
Total payables and accrued liabilities | $ 1,470 | $ 1,296 |
Payables and Accrued Liabilit88
Payables and Accrued Liabilities - Repurchase Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Loans Subject to Repurchase Reserve [Roll Forward] | ||
Repurchase Reserve | $ 26 | $ 29 |
Provision (release) | (6) | 0 |
Charge-offs | (2) | (3) |
Repurchase Reserve | $ 18 | $ 26 |
Securitizations and Financing89
Securitizations and Financings - Assets and Liabilities of Consolidated VIEs (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | $ 1,409 | $ 1,853 |
Reverse Secured Borrowings, Assets, Carrying Amount | 9,594 | 6,583 |
Liabilities | 960 | 1,475 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 9,514 | 6,523 |
Residential Mortgage | Restricted cash | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 190 | 94 |
Reverse Secured Borrowings, Assets, Carrying Amount | 37 | 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 | 9,557 | 6,547 |
Residential Mortgage | Accounts Receivable | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 1,065 | 1,581 |
Reverse Secured Borrowings, Assets, Carrying Amount | 0 | 0 |
Residential Mortgage | Mortgage Loans Held for Investment | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 150 | 173 |
Reverse Secured Borrowings, Assets, Carrying Amount | 0 | 0 |
Residential Mortgage | Derivative Financial Instruments, Assets | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets | 0 | 0 |
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 | 909 | 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 | 1 | 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 | 8,840 | 5,864 |
Residential Mortgage | Trust 2014-1 | Other Non-Recourse Debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 0 | 227 |
Residential Mortgage | Trust 2015-1 | Other Non-Recourse Debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 0 | 222 |
Residential Mortgage | Trust 2015-2 | Other Non-Recourse Debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 114 | 209 |
Residential Mortgage | Trust 2016-1 | Other Non-Recourse Debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 194 | 0 |
Residential Mortgage | Trust 2016-2 | Other Non-Recourse Debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 158 | 0 |
Residential Mortgage | Trust 2016-3 | Other Non-Recourse Debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 0 | 0 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | 208 | 0 |
Residential Mortgage | Other nonrecourse debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities | 50 | 65 |
Reverse Secured Borrowings, Liabilities, Carrying Amount | $ 0 | $ 0 |
Securitizations and Financing90
Securitizations and Financings - Securitization Trusts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Variable Interest Entities and Securitizations [Abstract] | |||
Total certificate balances | $ 2,704 | $ 3,114 | |
Total collateral balances | 2,455 | 2,811 | |
Unconsolidated securitization trusts | 548 | 728 | |
Unconsolidated securitization trusts | $ 150 | $ 216 | $ 276 |
Securitizations and Financing91
Securitizations and Financings - Cash Flows from Securitization Trust (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Variable Interest Entities and Securitizations [Abstract] | |||
Servicing Fees Received | $ 22 | $ 24 | $ 28 |
Loan Repurchases | $ 0 | $ 0 | $ 0 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current Income Taxes | |||||||||||
Federal | $ 14 | $ 59 | $ 46 | ||||||||
State | 4 | 4 | 8 | ||||||||
Total current income taxes | 18 | 63 | 54 | ||||||||
Deferred Income Taxes | |||||||||||
Federal | (4) | (50) | 6 | ||||||||
State | (1) | (2) | 5 | ||||||||
Total deferred income taxes | (5) | (52) | 11 | ||||||||
Total income tax expense | $ 119 | $ 29 | $ (53) | $ (82) | $ 42 | $ (47) | $ 44 | $ (28) | $ 13 | $ 11 | $ 65 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Tax Credit Carryforward [Line Items] | |||
Increase in tax expense due to changes in estimates of deferred and current tax liabilities | $ 2,000 | ||
Release of valuation allowance | $ 4,000 | ||
Limitations on use | 12,000 | ||
Valuation allowance | 4 | 4 | |
Internal Revenue Service (IRS) | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards | $ 162,000 | $ 175,000 | |
Federal | |||
Tax Credit Carryforward [Line Items] | |||
Valuation allowance | 3,000 | ||
State | |||
Tax Credit Carryforward [Line Items] | |||
Valuation allowance | $ 1,000 |
Income Taxes - Income Taxes at
Income Taxes - Income Taxes at federal statutory rate (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Amount | |||||||||||
Tax Expense at Federal Statutory Rate | $ 10 | $ 19 | $ 100 | ||||||||
State taxes, net of federal benefit | 1 | 0 | 9 | ||||||||
Noncontrolling interest | 1 | (2) | 0 | ||||||||
Increase/(decrease) of valuation allowance | 0 | (3) | (40) | ||||||||
Deferred adjustments | 1 | (5) | (2) | ||||||||
Current payable adjustments | 1 | 2 | (2) | ||||||||
Other, net | (1) | 0 | 0 | ||||||||
Total income tax expense | $ 119 | $ 29 | $ (53) | $ (82) | $ 42 | $ (47) | $ 44 | $ (28) | $ 13 | $ 11 | $ 65 |
Percent | |||||||||||
Tax Expense at Federal Statutory Rate | 35.00% | 35.00% | 35.00% | ||||||||
State taxes, net of federal benefit | 5.00% | (0.40%) | 2.90% | ||||||||
Noncontrolling interest | 3.40% | (2.70%) | (0.00%) | ||||||||
Increase/(decrease) of valuation allowance | 0.00% | (6.10%) | (14.10%) | ||||||||
Deferred adjustments | 2.30% | (10.10%) | (0.50%) | ||||||||
Current payable adjustments | 1.90% | 4.00% | (0.80%) | ||||||||
Other, net | (2.40%) | 0.60% | 0.20% | ||||||||
Total income tax expense | 45.20% | 20.30% | 22.70% |
Income Taxes - Carryforward and
Income Taxes - Carryforward and Temporary Differences (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Assets | ||
Loss carryforwards (federal, state and capital) | $ 60 | $ 64 |
Loss reserves | 104 | 57 |
Reverse mortgage premiums | 25 | 26 |
Rent expense | 5 | 6 |
Restricted share based compensation | 9 | 9 |
Accruals | 20 | 14 |
Other, net | 24 | 9 |
Total deferred tax assets | 247 | 185 |
Deferred Tax Liabilities | ||
MSR amortization and mark-to-market, net | (267) | (198) |
Depreciation and amortization, net | (34) | (38) |
Prepaid assets | (1) | (3) |
Goodwill and intangible assets | (3) | (5) |
Total deferred tax liabilities | (305) | (244) |
Valuation allowance | (4) | (4) |
Net deferred tax liability | $ (62) | $ (63) |
Fair Value Measurements - Measu
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Mortgage loans held for sale, at fair value | $ 1,788 | $ 1,430 |
Mortgage servicing rights | 3,160 | 3,358 |
LIABILITIES | ||
Mortgage servicing rights financing liability | 27 | 69 |
Excess spread financing | 1,064 | 1,232 |
Derivative instrument, fair value (less than) | 0.1 | |
Fair Value, Measurements, Recurring | ||
ASSETS | ||
Mortgage loans held for sale, at fair value | 1,788 | 1,429.7 |
Mortgage servicing rights | 3,160 | 3,358.3 |
Derivative financial instruments | 133 | 100 |
Total assets | 5,081.4 | 4,887.7 |
LIABILITIES | ||
Mortgage servicing rights financing liability | 27 | 68.7 |
Excess spread financing | 1,214 | 1,232.1 |
Total liabilities | 1,253.7 | 1,306.6 |
Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Mortgage loans held for sale, at fair value | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Total assets | 0 | 0 |
LIABILITIES | ||
Mortgage servicing rights financing liability | 0 | 0 |
Excess spread financing | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Mortgage loans held for sale, at fair value | 1,788 | 1,429.7 |
Mortgage servicing rights | 0 | 0 |
Derivative financial instruments | 133 | 100 |
Total assets | 1,921.4 | 1,529.4 |
LIABILITIES | ||
Mortgage servicing rights financing liability | 0 | 0 |
Excess spread financing | 0 | 0 |
Total liabilities | 12.7 | 5.8 |
Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Mortgage loans held for sale, at fair value | 0 | 0 |
Mortgage servicing rights | 3,160 | 3,358.3 |
Derivative financial instruments | 0 | 0 |
Total assets | 3,160 | 3,358.3 |
LIABILITIES | ||
Mortgage servicing rights financing liability | 27 | 69 |
Excess spread financing | 1,214 | 1,232.1 |
Total liabilities | 1,241 | 1,300.8 |
IRLCs | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Derivative financial instruments | 92.2 | 89.1 |
LIABILITIES | ||
Derivative financial instruments | 1.1 | 0 |
Derivative instrument, fair value (less than) | 0.1 | |
IRLCs | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Derivative financial instruments | 0 | 0 |
LIABILITIES | ||
Derivative financial instruments | 0 | 0 |
IRLCs | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Derivative financial instruments | 92.2 | 89.1 |
LIABILITIES | ||
Derivative financial instruments | 1.1 | 0 |
IRLCs | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Derivative financial instruments | 0 | 0 |
LIABILITIES | ||
Derivative financial instruments | 0 | 0 |
Forward MBS trades | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Derivative financial instruments | 39.2 | 6.1 |
LIABILITIES | ||
Derivative financial instruments | 10 | 3.7 |
Forward MBS trades | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Derivative financial instruments | 0 | 0 |
LIABILITIES | ||
Derivative financial instruments | 0 | 0 |
Forward MBS trades | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Derivative financial instruments | 39.2 | 6.1 |
LIABILITIES | ||
Derivative financial instruments | 10 | 3.7 |
Forward MBS trades | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Derivative financial instruments | 0 | 0 |
LIABILITIES | ||
Derivative financial instruments | 0 | 0 |
LPCs | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Derivative financial instruments | 1.9 | 3.9 |
LIABILITIES | ||
Derivative financial instruments | 1.5 | 1.5 |
LPCs | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Derivative financial instruments | 0 | 0 |
LIABILITIES | ||
Derivative financial instruments | 0 | 0 |
LPCs | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Derivative financial instruments | 1.9 | 3.9 |
LIABILITIES | ||
Derivative financial instruments | 1.5 | 1.5 |
LPCs | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Derivative financial instruments | 0 | 0 |
LIABILITIES | ||
Derivative financial instruments | 0 | 0 |
Interest rate swaps and caps | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Derivative financial instruments | 0.1 | 0.5 |
LIABILITIES | ||
Derivative financial instruments | 0.1 | 0.5 |
Interest rate swaps and caps | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Derivative financial instruments | 0 | 0 |
LIABILITIES | ||
Derivative financial instruments | 0 | 0 |
Interest rate swaps and caps | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Derivative financial instruments | 0.1 | 0.5 |
LIABILITIES | ||
Derivative financial instruments | 0.1 | 0.5 |
Interest rate swaps and caps | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Derivative financial instruments | 0 | 0 |
LIABILITIES | ||
Derivative financial instruments | $ 0 | 0 |
Eurodollar futures | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Derivative financial instruments | 0.1 | |
LIABILITIES | ||
Derivative financial instruments | 0.1 | |
Eurodollar futures | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
Eurodollar futures | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Derivative financial instruments | 0.1 | |
LIABILITIES | ||
Derivative financial instruments | 0.1 | |
Eurodollar futures | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | $ 0 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Level 3 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | 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 |
Total gains or losses included in earnings | 25 | 26 |
Purchases, issuances, sales and settlements | ||
Purchases | 0 | 0 |
Issuances | 155 | 385 |
Settlements | (198) | (210) |
Dispositions | 0 | 0 |
Ending balance | 1,214 | 1,232 |
Mortgage Servicing Right Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 69 | 49 |
Total gains or losses included in earnings | (42) | 20 |
Purchases, issuances, sales and settlements | ||
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Dispositions | 0 | 0 |
Ending balance | 27 | 69 |
Mortgage Servicing Rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 3,358 | 2,950 |
Total gains or losses included in earnings | (496) | (478) |
Purchases, issuances, sales and settlements | ||
Purchases | 157 | 711 |
Issuances | 208 | 221 |
Settlements | 0 | 0 |
Dispositions | (67) | (46) |
Ending balance | $ 3,160 | $ 3,358 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financial assets | ||
Restricted cash | $ 388 | $ 332 |
Reverse mortgage interests, net | 11,033 | 7,514 |
Mortgage loans held for sale | 1,788 | 1,430 |
Mortgage loans held for investment, net | 151 | 174 |
Financial liabilities: | ||
Unsecured senior notes | 1,990 | 2,026 |
Advance facilities, net | 1,096 | 1,640 |
Warehouse facilities | 2,421 | 1,890 |
Mortgage servicing rights financing liability | 27 | 69 |
Derivative financial instruments | 13 | 6 |
Other nonrecourse debt, net | 9,631 | 6,666 |
Participating interest financing | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 8,914 | 5,947 |
Trust 2014-1 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 0 | 227 |
Trust 2015-1 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 0 | 222 |
Trust 2015-2 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 114 | 209 |
Trust 2016-1 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 194 | 0 |
Trust 2016-2 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 158 | 0 |
Trust 2016-3 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 208 | 0 |
Nonrecourse debt - legacy assets | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 50 | 65 |
Fair Value, Measurements, Recurring | ||
Financial assets | ||
Cash and cash equivalents | 489 | 613 |
Restricted cash | 388 | 332 |
Advances and other receivables, net | 1,749 | 2,412 |
Reverse mortgage interests, net | 11,033 | 7,514 |
Mortgage loans held for sale | 1,788 | 1,429.7 |
Mortgage loans held for investment, net | 151 | 174 |
Derivative financial instruments | 133 | 100 |
Financial liabilities: | ||
Unsecured senior notes | 2,007 | 2,049 |
Advance facilities, net | 1,096 | 1,646 |
Warehouse facilities | 2,423 | 1,893 |
Mortgage servicing rights financing liability | 27 | 68.7 |
Excess spread financing | 1,214 | 1,232 |
Derivative financial instruments | 13 | 6 |
Fair Value, Measurements, Recurring | Participating interest financing | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 8,914 | 5,947 |
Fair Value, Measurements, Recurring | Trust 2014-1 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 227 | |
Fair Value, Measurements, Recurring | Trust 2015-1 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 222 | |
Fair Value, Measurements, Recurring | Trust 2015-2 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 114 | 209 |
Fair Value, Measurements, Recurring | Trust 2016-1 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 194 | |
Fair Value, Measurements, Recurring | Trust 2016-2 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 158 | |
Fair Value, Measurements, Recurring | Trust 2016-3 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 208 | |
Fair Value, Measurements, Recurring | Nonrecourse debt - legacy assets | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 50 | 65 |
Fair Value, Measurements, Recurring | Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 489 | 613 |
Restricted cash | 388 | 332 |
Advances and other receivables, net | 0 | 0 |
Reverse mortgage interests, net | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Mortgage loans held for investment, net | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Financial liabilities: | ||
Unsecured senior notes | 2,047 | 1,912 |
Advance facilities, net | 0 | 0 |
Warehouse facilities | 0 | 0 |
Mortgage servicing rights financing liability | 0 | 0 |
Excess spread financing | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Participating interest financing | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Trust 2014-1 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Trust 2015-1 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Trust 2015-2 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Trust 2016-1 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Trust 2016-2 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Trust 2016-3 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Nonrecourse debt - legacy assets | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 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 | 0 |
Reverse mortgage interests, net | 0 | 0 |
Mortgage loans held for sale | 1,788 | 1,429.7 |
Mortgage loans held for investment, net | 0 | 0 |
Derivative financial instruments | 133 | 100 |
Financial liabilities: | ||
Unsecured senior notes | 0 | 0 |
Advance facilities, net | 1,096 | 1,646 |
Warehouse facilities | 2,423 | 1,893 |
Mortgage servicing rights financing liability | 0 | 0 |
Excess spread financing | 0 | 0 |
Derivative financial instruments | 13 | 6 |
Fair Value, Measurements, Recurring | Level 2 | Participating interest financing | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 9,151 | 6,091 |
Fair Value, Measurements, Recurring | Level 2 | Trust 2014-1 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Trust 2015-1 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Trust 2015-2 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Trust 2016-1 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Trust 2016-2 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Trust 2016-3 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Nonrecourse debt - legacy assets | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 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 | 1,749 | 2,412 |
Reverse mortgage interests, net | 11,232 | 7,705 |
Mortgage loans held for sale | 0 | 0 |
Mortgage loans held for investment, net | 153 | 174 |
Derivative financial instruments | 0 | 0 |
Financial liabilities: | ||
Unsecured senior notes | 0 | 0 |
Advance facilities, net | 0 | 0 |
Warehouse facilities | 0 | 0 |
Mortgage servicing rights financing liability | 27 | 69 |
Excess spread financing | 1,214 | 1,232 |
Derivative financial instruments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Participating interest financing | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Trust 2014-1 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 298 | |
Fair Value, Measurements, Recurring | Level 3 | Trust 2015-1 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 275 | |
Fair Value, Measurements, Recurring | Level 3 | Trust 2015-2 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 125 | 250 |
Fair Value, Measurements, Recurring | Level 3 | Trust 2016-1 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 203 | |
Fair Value, Measurements, Recurring | Level 3 | Trust 2016-2 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 156 | |
Fair Value, Measurements, Recurring | Level 3 | Trust 2016-3 | ||
Financial liabilities: | ||
Other nonrecourse debt, net | 205 | |
Fair Value, Measurements, Recurring | Level 3 | Nonrecourse debt - legacy assets | ||
Financial liabilities: | ||
Other nonrecourse debt, net | $ 50 | $ 74 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Matching contributions amount | $ 16 | $ 12 | $ 12 |
Tranche One | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer percent match of contribution | 100.00% | ||
Percent match of gross pay | 2.00% | ||
Tranche Two | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer percent match of contribution | 50.00% | ||
Percent match of gross pay | 4.00% |
Share-Based Compensation and100
Share-Based Compensation and Equity (Details) - USD ($) | Mar. 11, 2016 | Feb. 11, 2016 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 01, 2017 | Feb. 09, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation | $ 21,000,000 | $ 20,000,000 | $ 19,000,000 | |||||
Unrecognized compensation expense | $ 17,000,000 | |||||||
Unrecognized compensation expense, weighted average period | 1 year 26 days | |||||||
Excess tax benefit (deficiency) from share based compensation | $ (4,000,000) | $ 0 | $ 2,000,000 | |||||
Aggregate authorized amount to repurchase | $ 250,000,000 | |||||||
Repurchase of common stock (in shares) | 11,400,000 | |||||||
Shares repurchased and settled (in shares) | 10,600,000 | 800,000 | ||||||
Common Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Authorized amount to repurchase | $ 100,000,000 | |||||||
Repurchase of common stock (in shares) | 7,450 | 10,589,000 | 504,000 | |||||
Price per share of stock repurchased (in dollars per share) | $ 9.40 | |||||||
Equity offering | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares in equity offering (in shares) | 17,500,000 | |||||||
Proceeds from equity offering | $ 498,000,000 | |||||||
Stock Appreciation Rights (SARs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of equity awards granted (in shares) | 99,000 | |||||||
Vesting period | 3 years | |||||||
Expiration term | 10 years | |||||||
Subsequent Event | Common Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Authorized amount to repurchase | $ 100,000,000 | |||||||
Minimum | Common Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Price per share of stock repurchased (in dollars per share) | $ 8.20 | |||||||
Maximum | Common Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Price per share of stock repurchased (in dollars per share) | $ 9.40 | |||||||
2012 Plan | Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 33.33% | |||||||
Requisite service period | 3 years |
Share-Based Compensation and101
Share-Based Compensation and Equity - Restricted Stock Rollforward (Details) - 2012 Plan - Restricted Stock shares in Thousands | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Units | |
Beginning of Period (shares) | shares | 1,837 |
Grants issued (shares) | shares | 1,631 |
Forfeited (shares) | shares | (292) |
Vested (shares) | shares | (904) |
Ending of Period (shares) | shares | 2,272 |
Grant Date Fair Value | |
Beginning of Period (in dollars per share) | $ / shares | $ 25.77 |
Grants issued (in dollars per share) | $ / shares | 11.89 |
Forfeited (in dollars per share) | $ / shares | 17.96 |
Vested (in dollars per share) | $ / shares | 23.77 |
Ending of Period (in dollars per share) | $ / shares | $ 17.74 |
Capital Requirements (Details)
Capital Requirements (Details) $ in Millions | Dec. 31, 2016USD ($) |
Mortgage Banking [Abstract] | |
Minimum net worth required for compliance | $ 1,000 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 28, 2013 | |
Mortgage Servicing Rights [Line Items] | ||||
Refund payments for delay in loan modifications | $ 16 | |||
Operating lease term | 7 years 6 months | |||
Early termination option for operating leases | 5 years | |||
Rental expense | $ 26 | 21 | $ 22 | |
Litigation and Regulatory Matters | ||||
Mortgage Servicing Rights [Line Items] | ||||
Legal fees | 64 | 54 | $ 29 | |
Reverse mortgage interests, net | ||||
Mortgage Servicing Rights [Line Items] | ||||
Principal amount outstanding on mortgage servicing rights | 38,940 | $ 29,855 | $ 83 | |
Maximum unfunded advance obligation | 4,396 | |||
Minimum | Litigation and Regulatory Matters | ||||
Mortgage Servicing Rights [Line Items] | ||||
Reasonably possible loss | 24 | |||
Maximum | Litigation and Regulatory Matters | ||||
Mortgage Servicing Rights [Line Items] | ||||
Reasonably possible loss | $ 61 |
Commitments and Contingencie104
Commitments and Contingencies - Lease Commitments (Details) $ in Millions | Dec. 31, 2016USD ($) |
Operating Leases | |
2,017 | $ 29 |
2,018 | 30 |
2,019 | 24 |
2,020 | 19 |
2021 and thereafter | 30 |
Total minimum lease payments | 132 |
Less: Amounts representing interest | 0 |
Present value of minimum lease payments | 132 |
Capital Leases | |
2,017 | 6 |
2,018 | 4 |
2,019 | 2 |
2,020 | 0 |
2020 and thereafter | 0 |
Total minimum lease payments | 12 |
Less: Amounts representing interest | (1) |
Present value of minimum lease payments | $ 11 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Adjustments | $ 5 | $ 13 | $ 0 |
Salaries, Wages and Benefits | Employee severance and other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Adjustments | $ 5 | $ 13 | $ 0 |
Restructuring Charges - Reconci
Restructuring Charges - Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve | $ 10 | $ 4 | $ 13 |
Restructuring Adjustments | 5 | 13 | 0 |
Restructuring Settlements | (10) | (7) | (9) |
Restructuring Reserve | 5 | 10 | 4 |
Employee severance and other | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve | 9 | 0 | 5 |
Restructuring Settlements | (9) | (4) | (5) |
Restructuring Reserve | 5 | 9 | 0 |
Lease terminations | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve | 1 | 4 | 8 |
Restructuring Adjustments | 0 | 0 | 0 |
Restructuring Settlements | (1) | (3) | (4) |
Restructuring Reserve | $ 0 | $ 1 | $ 4 |
Business Segment Reporting - Fi
Business Segment Reporting - Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||||||||||
Service related, net | $ 616 | $ 305 | $ 113 | $ 84 | $ 421 | $ 211 | $ 458 | $ 215 | $ 1,118 | $ 1,305 | $ 1,376 |
Net gain on mortgage loans held for sale | 173 | 237 | 216 | 171 | 167 | 186 | 164 | 167 | 797 | 684 | 597 |
Total revenues | 789 | 542 | 329 | 255 | 588 | 397 | 622 | 382 | 1,915 | 1,989 | 1,973 |
Total expenses | 412 | 407 | 413 | 412 | 417 | 446 | 441 | 384 | 1,644 | 1,688 | 1,358 |
Other income (expense): | |||||||||||
Interest income | 425 | 351 | 180 | ||||||||
Interest expense | (665) | (605) | (516) | ||||||||
Other income (expense) | (2) | 7 | 7 | ||||||||
Total other income (expense), net | (60) | (64) | (60) | (58) | (50) | (63) | (61) | (73) | (242) | (247) | (329) |
Income (loss) before income tax expense (benefit) | 317 | $ 71 | $ (144) | $ (215) | 121 | $ (112) | $ 120 | $ (75) | 29 | 54 | 286 |
Depreciation and amortization | 63 | 53 | 40 | ||||||||
Total assets | 19,593 | 16,617 | 19,593 | 16,617 | 11,069 | ||||||
Servicing | |||||||||||
Revenues: | |||||||||||
Service related, net | 753 | 882 | 1,088 | ||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Total revenues | 753 | 882 | 1,088 | ||||||||
Total expenses | 645 | 788 | 705 | ||||||||
Other income (expense): | |||||||||||
Interest income | 347 | 268 | 92 | ||||||||
Interest expense | (442) | (377) | (246) | ||||||||
Other income (expense) | 0 | (1) | 1 | ||||||||
Total other income (expense), net | (95) | (110) | (153) | ||||||||
Income (loss) before income tax expense (benefit) | 13 | (16) | 230 | ||||||||
Depreciation and amortization | 23 | 21 | 15 | ||||||||
Total assets | 16,189 | 14,244 | 16,189 | 14,244 | 8,786 | ||||||
Originations | |||||||||||
Revenues: | |||||||||||
Service related, net | 59 | 51 | 44 | ||||||||
Net gain on mortgage loans held for sale | 679 | 615 | 535 | ||||||||
Total revenues | 738 | 666 | 579 | ||||||||
Total expenses | 533 | 469 | 390 | ||||||||
Other income (expense): | |||||||||||
Interest income | 63 | 67 | 72 | ||||||||
Interest expense | (58) | (58) | (70) | ||||||||
Other income (expense) | (1) | 0 | 0 | ||||||||
Total other income (expense), net | 4 | 9 | 2 | ||||||||
Income (loss) before income tax expense (benefit) | 209 | 206 | 191 | ||||||||
Depreciation and amortization | 11 | 12 | 9 | ||||||||
Total assets | 4,563 | 1,398 | 4,563 | 1,398 | 1,398 | ||||||
Xome | |||||||||||
Revenues: | |||||||||||
Service related, net | 437 | 305 | |||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Total revenues | 423 | 437 | 305 | ||||||||
Total expenses | 354 | 358 | 182 | ||||||||
Other income (expense): | |||||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Other income (expense) | 0 | 0 | 0 | ||||||||
Total other income (expense), net | 0 | 0 | 0 | ||||||||
Income (loss) before income tax expense (benefit) | 69 | 79 | 123 | ||||||||
Depreciation and amortization | 21 | 14 | 4 | ||||||||
Total assets | 349 | 304 | 349 | 304 | 196 | ||||||
Eliminations | |||||||||||
Revenues: | |||||||||||
Service related, net | (118) | (67) | (65) | ||||||||
Net gain on mortgage loans held for sale | 118 | 67 | 65 | ||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Other income (expense): | |||||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Other income (expense) | 0 | 0 | 0 | ||||||||
Total other income (expense), net | 0 | 0 | 0 | ||||||||
Income (loss) before income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Total assets | (2,448) | 0 | (2,448) | 0 | 0 | ||||||
Total Operating Segments | |||||||||||
Revenues: | |||||||||||
Service related, net | 1,117 | 1,303 | 1,372 | ||||||||
Net gain on mortgage loans held for sale | 797 | 682 | 600 | ||||||||
Total revenues | 1,914 | 1,985 | 1,972 | ||||||||
Total expenses | 1,532 | 1,615 | 1,277 | ||||||||
Other income (expense): | |||||||||||
Interest income | 410 | 335 | 164 | ||||||||
Interest expense | (500) | (435) | (316) | ||||||||
Other income (expense) | (1) | (1) | 1 | ||||||||
Total other income (expense), net | (91) | (101) | (151) | ||||||||
Income (loss) before income tax expense (benefit) | 291 | 269 | 544 | ||||||||
Depreciation and amortization | 55 | 47 | 28 | ||||||||
Total assets | 18,653 | 15,946 | 18,653 | 15,946 | 10,380 | ||||||
Corporate and Other | |||||||||||
Revenues: | |||||||||||
Service related, net | 1 | 2 | 4 | ||||||||
Net gain on mortgage loans held for sale | 0 | 2 | (3) | ||||||||
Total revenues | 1 | 4 | 1 | ||||||||
Total expenses | 112 | 73 | 81 | ||||||||
Other income (expense): | |||||||||||
Interest income | 15 | 16 | 16 | ||||||||
Interest expense | (165) | (170) | (200) | ||||||||
Other income (expense) | (1) | 8 | 6 | ||||||||
Total other income (expense), net | (151) | (146) | (178) | ||||||||
Income (loss) before income tax expense (benefit) | (262) | (215) | (258) | ||||||||
Depreciation and amortization | 8 | 6 | 12 | ||||||||
Total assets | $ 940 | $ 671 | $ 940 | $ 671 | $ 689 |
Business Segment Reporting - Na
Business Segment Reporting - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Adjustment | Xome | |
Segment Reporting Information [Line Items] | |
Operating Income (Loss) | $ 9 |
Guarantor Financial Statemen109
Guarantor Financial Statement Information - Narrative (Details) $ in Millions | Dec. 31, 2016USD ($)subsidiary | Dec. 31, 2015USD ($) |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||
Unsecured senior notes, net | $ | $ 1,990 | $ 2,026 |
Ownership percentage | 100.00% | |
Number of direct wholly owned subsidiaries | subsidiary | 2 |
Guarantor Financial Statemen110
Guarantor Financial Statement Information - Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||||
Cash and cash equivalents | $ 489 | $ 613 | $ 299 | $ 442 |
Restricted cash | 388 | 332 | ||
Mortgage servicing rights | 3,166 | 3,367 | ||
Advances and other receivables, net | 1,749 | 2,412 | ||
Reverse mortgage interests, net | 11,033 | 7,514 | ||
Mortgage loans held for sale, at fair value | 1,788 | 1,430 | ||
Mortgage loans held for investment, net | 151 | 174 | ||
Property and equipment, net | 136 | 143 | ||
Derivative financial instruments at fair value | 133 | 100 | ||
Other assets | 560 | 532 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 19,593 | 16,617 | 11,069 | |
Liabilities and stockholders' equity | ||||
Unsecured senior notes, net | 1,990 | 2,026 | ||
Advance facilities, net | 1,096 | 1,640 | ||
Warehouse facilities, net | 2,421 | 1,890 | ||
Payables and accrued liabilities | 1,470 | 1,296 | ||
MSR related liabilities - nonrecourse at fair value | 1,241 | 1,301 | ||
Mortgage servicing liabilities | 48 | 25 | ||
Derivative financial instruments at fair value | 13 | 6 | ||
Other nonrecourse debt, net | 9,631 | 6,666 | ||
Payables to affiliates | 0 | 0 | ||
Total liabilities | 17,910 | 14,850 | ||
Total stockholders' equity | 1,683 | 1,767 | 1,224 | 989 |
Total liabilities and stockholders' equity | 19,593 | 16,617 | ||
Nationstar | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Advances and other receivables, net | 0 | 0 | ||
Reverse mortgage interests, net | 0 | 0 | ||
Mortgage loans held for sale, at fair value | 0 | 0 | ||
Mortgage loans held for investment, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Derivative financial instruments at fair value | 0 | 0 | ||
Other assets | 0 | 3 | ||
Investment in subsidiaries | 1,801 | 1,768 | ||
Total assets | 1,801 | 1,771 | ||
Liabilities and stockholders' equity | ||||
Unsecured senior notes, net | 0 | 0 | ||
Advance facilities, net | 0 | 0 | ||
Warehouse facilities, net | 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, net | 0 | 0 | ||
Payables to affiliates | 118 | 0 | ||
Total liabilities | 118 | 4 | ||
Total stockholders' equity | 1,683 | 1,767 | ||
Total liabilities and stockholders' equity | 1,801 | 1,771 | ||
Issuer | ||||
Assets | ||||
Cash and cash equivalents | 453 | 597 | 280 | 422 |
Restricted cash | 159 | 199 | ||
Mortgage servicing rights | 3,142 | 3,367 | ||
Advances and other receivables, net | 1,749 | 2,412 | ||
Reverse mortgage interests, net | 10,316 | 6,832 | ||
Mortgage loans held for sale, at fair value | 1,787 | 1,305 | ||
Mortgage loans held for investment, net | 1 | 1 | ||
Property and equipment, net | 113 | 113 | ||
Derivative financial instruments at fair value | 133 | 96 | ||
Other assets | 444 | 610 | ||
Investment in subsidiaries | 634 | 510 | ||
Total assets | 18,931 | 16,042 | ||
Liabilities and stockholders' equity | ||||
Unsecured senior notes, net | 1,990 | 2,026 | ||
Advance facilities, net | 187 | 232 | ||
Warehouse facilities, net | 2,421 | 1,782 | ||
Payables and accrued liabilities | 1,420 | 1,222 | ||
MSR related liabilities - nonrecourse at fair value | 1,219 | 1,301 | ||
Mortgage servicing liabilities | 48 | 25 | ||
Derivative financial instruments at fair value | 13 | 6 | ||
Other nonrecourse debt, net | 8,907 | 5,943 | ||
Payables to affiliates | 925 | 1,737 | ||
Total liabilities | 17,130 | 14,274 | ||
Total stockholders' equity | 1,801 | 1,768 | ||
Total liabilities and stockholders' equity | 18,931 | 16,042 | ||
Guarantor (Subsidiaries) | ||||
Assets | ||||
Cash and cash equivalents | 2 | 1 | 0 | 4 |
Restricted cash | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Advances and other receivables, net | 0 | 0 | ||
Reverse mortgage interests, net | 0 | 0 | ||
Mortgage loans held for sale, at fair value | 0 | 0 | ||
Mortgage loans held for investment, net | 0 | 0 | ||
Property and equipment, net | 0 | 1 | ||
Derivative financial instruments at fair value | 0 | 0 | ||
Other assets | 323 | 303 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 325 | 305 | ||
Liabilities and stockholders' equity | ||||
Unsecured senior notes, net | 0 | 0 | ||
Advance facilities, net | 0 | 0 | ||
Warehouse facilities, net | 0 | 0 | ||
Payables and accrued liabilities | 2 | 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, net | 0 | 0 | ||
Payables to affiliates | 0 | 1 | ||
Total liabilities | 2 | 2 | ||
Total stockholders' equity | 323 | 303 | ||
Total liabilities and stockholders' equity | 325 | 305 | ||
Non-Guarantor (Subsidiaries) | ||||
Assets | ||||
Cash and cash equivalents | 34 | 15 | 19 | 16 |
Restricted cash | 229 | 133 | ||
Mortgage servicing rights | 24 | 0 | ||
Advances and other receivables, net | 0 | 0 | ||
Reverse mortgage interests, net | 717 | 682 | ||
Mortgage loans held for sale, at fair value | 1 | 125 | ||
Mortgage loans held for investment, net | 150 | 173 | ||
Property and equipment, net | 23 | 29 | ||
Derivative financial instruments at fair value | 0 | 4 | ||
Other assets | 838 | 1,497 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 2,016 | 2,658 | ||
Liabilities and stockholders' equity | ||||
Unsecured senior notes, net | 0 | 0 | ||
Advance facilities, net | 909 | 1,408 | ||
Warehouse facilities, net | 0 | 108 | ||
Payables and accrued liabilities | 48 | 69 | ||
MSR related liabilities - nonrecourse at fair value | 22 | 0 | ||
Mortgage servicing liabilities | 0 | 0 | ||
Derivative financial instruments at fair value | 0 | 0 | ||
Other nonrecourse debt, net | 724 | 723 | ||
Payables to affiliates | 2 | 143 | ||
Total liabilities | 1,705 | 2,451 | ||
Total stockholders' equity | 311 | 207 | ||
Total liabilities and stockholders' equity | 2,016 | 2,658 | ||
Eliminations | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Restricted cash | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Advances and other receivables, net | 0 | 0 | ||
Reverse mortgage interests, net | 0 | 0 | ||
Mortgage loans held for sale, at fair value | 0 | 0 | ||
Mortgage loans held for investment, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Derivative financial instruments at fair value | 0 | 0 | ||
Other assets | (1,045) | (1,881) | ||
Investment in subsidiaries | (2,435) | (2,278) | ||
Total assets | (3,480) | (4,159) | ||
Liabilities and stockholders' equity | ||||
Unsecured senior notes, net | 0 | 0 | ||
Advance facilities, net | 0 | 0 | ||
Warehouse facilities, net | 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, net | 0 | 0 | ||
Payables to affiliates | (1,045) | (1,881) | ||
Total liabilities | (1,045) | (1,881) | ||
Total stockholders' equity | (2,435) | (2,278) | ||
Total liabilities and stockholders' equity | $ (3,480) | $ (4,159) |
Guarantor Financial Statemen111
Guarantor Financial Statement Information - Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements | |||||||||||
Service related, net | $ 616 | $ 305 | $ 113 | $ 84 | $ 421 | $ 211 | $ 458 | $ 215 | $ 1,118 | $ 1,305 | $ 1,376 |
Net gain on mortgage loans held for sale | 173 | 237 | 216 | 171 | 167 | 186 | 164 | 167 | 797 | 684 | 597 |
Total revenues | 789 | 542 | 329 | 255 | 588 | 397 | 622 | 382 | 1,915 | 1,989 | 1,973 |
Expenses: | |||||||||||
Salaries, wages benefits | 813 | 763 | 643 | ||||||||
General and administrative | 831 | 925 | 715 | ||||||||
Total expenses | 412 | 407 | 413 | 412 | 417 | 446 | 441 | 384 | 1,644 | 1,688 | 1,358 |
Other income (expense): | |||||||||||
Interest income | 425 | 351 | 180 | ||||||||
Interest expense | (665) | (605) | (516) | ||||||||
Other income (expense) | (2) | 7 | 7 | ||||||||
Gain (loss) from subsidiaries | 0 | 0 | 0 | ||||||||
Total other income (expense), net | (60) | (64) | (60) | (58) | (50) | (63) | (61) | (73) | (242) | (247) | (329) |
Income (loss) before income tax expense (benefit) | 317 | 71 | (144) | (215) | 121 | (112) | 120 | (75) | 29 | 54 | 286 |
Less: Income tax expense | 119 | 29 | (53) | (82) | 42 | (47) | 44 | (28) | 13 | 11 | 65 |
Net income (loss) | 198 | 42 | (91) | (133) | 79 | (65) | 76 | (47) | 16 | 43 | 221 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | (3) | 1 | (1) | 0 | 1 | 1 | 2 | (3) | 4 | 0 |
Net income (loss) attributable to Nationstar | $ 198 | $ 45 | $ (92) | $ (132) | $ 79 | $ (66) | $ 75 | $ (49) | 19 | 39 | 221 |
Nationstar | |||||||||||
Condensed Financial Statements | |||||||||||
Service related, net | 0 | 0 | 0 | ||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Expenses: | |||||||||||
Salaries, wages benefits | 0 | 0 | 0 | ||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Other income (expense): | |||||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Other income (expense) | 0 | 0 | 0 | ||||||||
Gain (loss) from subsidiaries | 19 | 39 | 221 | ||||||||
Total other income (expense), net | 19 | 39 | 221 | ||||||||
Income (loss) before income tax expense (benefit) | 19 | 39 | 221 | ||||||||
Less: Income tax expense | 0 | 0 | 0 | ||||||||
Net income (loss) | 19 | 39 | 221 | ||||||||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Nationstar | 19 | 39 | 221 | ||||||||
Issuer | |||||||||||
Condensed Financial Statements | |||||||||||
Service related, net | 654 | 846 | 1,030 | ||||||||
Net gain on mortgage loans held for sale | 768 | 640 | 584 | ||||||||
Total revenues | 1,422 | 1,486 | 1,614 | ||||||||
Expenses: | |||||||||||
Salaries, wages benefits | 601 | 540 | 556 | ||||||||
General and administrative | 617 | 737 | 587 | ||||||||
Total expenses | 1,218 | 1,277 | 1,143 | ||||||||
Other income (expense): | |||||||||||
Interest income | 375 | 311 | 159 | ||||||||
Interest expense | (592) | (534) | (461) | ||||||||
Other income (expense) | (2) | 8 | 5 | ||||||||
Gain (loss) from subsidiaries | 44 | 60 | 112 | ||||||||
Total other income (expense), net | (175) | (155) | (185) | ||||||||
Income (loss) before income tax expense (benefit) | 29 | 54 | 286 | ||||||||
Less: Income tax expense | 13 | 11 | 65 | ||||||||
Net income (loss) | 16 | 43 | 221 | ||||||||
Less: Net income (loss) attributable to noncontrolling interests | (3) | 4 | 0 | ||||||||
Net income (loss) attributable to Nationstar | 19 | 39 | 221 | ||||||||
Guarantor (Subsidiaries) | |||||||||||
Condensed Financial Statements | |||||||||||
Service related, net | 33 | 17 | 48 | ||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Total revenues | 33 | 17 | 48 | ||||||||
Expenses: | |||||||||||
Salaries, wages benefits | 5 | 5 | 5 | ||||||||
General and administrative | 8 | 3 | 2 | ||||||||
Total expenses | 13 | 8 | 7 | ||||||||
Other income (expense): | |||||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Other income (expense) | 0 | 0 | 0 | ||||||||
Gain (loss) from subsidiaries | 0 | 0 | 0 | ||||||||
Total other income (expense), net | 0 | 0 | 0 | ||||||||
Income (loss) before income tax expense (benefit) | 20 | 9 | 41 | ||||||||
Less: Income tax expense | 0 | 0 | 0 | ||||||||
Net income (loss) | 20 | 9 | 41 | ||||||||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Nationstar | 20 | 9 | 41 | ||||||||
Non-Guarantor (Subsidiaries) | |||||||||||
Condensed Financial Statements | |||||||||||
Service related, net | 431 | 442 | 298 | ||||||||
Net gain on mortgage loans held for sale | 29 | 44 | 13 | ||||||||
Total revenues | 460 | 486 | 311 | ||||||||
Expenses: | |||||||||||
Salaries, wages benefits | 207 | 218 | 82 | ||||||||
General and administrative | 206 | 185 | 126 | ||||||||
Total expenses | 413 | 403 | 208 | ||||||||
Other income (expense): | |||||||||||
Interest income | 50 | 40 | 21 | ||||||||
Interest expense | (73) | (71) | (55) | ||||||||
Other income (expense) | 0 | (1) | 2 | ||||||||
Gain (loss) from subsidiaries | 0 | 0 | 0 | ||||||||
Total other income (expense), net | (23) | (32) | (32) | ||||||||
Income (loss) before income tax expense (benefit) | 24 | 51 | 71 | ||||||||
Less: Income tax expense | 0 | 0 | 0 | ||||||||
Net income (loss) | 24 | 51 | 71 | ||||||||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Nationstar | 24 | 51 | 71 | ||||||||
Eliminations | |||||||||||
Condensed Financial Statements | |||||||||||
Service related, net | 0 | 0 | 0 | ||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Expenses: | |||||||||||
Salaries, wages benefits | 0 | 0 | 0 | ||||||||
General and administrative | 0 | 0 | 0 | ||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Other income (expense): | |||||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Other income (expense) | 0 | 0 | 0 | ||||||||
Gain (loss) from subsidiaries | (63) | (99) | (333) | ||||||||
Total other income (expense), net | (63) | (99) | (333) | ||||||||
Income (loss) before income tax expense (benefit) | (63) | (99) | (333) | ||||||||
Less: Income tax expense | 0 | 0 | 0 | ||||||||
Net income (loss) | (63) | (99) | (333) | ||||||||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Nationstar | $ (63) | $ (99) | $ (333) |
Guarantor Financial Statemen112
Guarantor Financial Statement Information - Consolidating Statements of Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities | |||||||||||
Net income (loss) attributable to Nationstar | $ 198 | $ 45 | $ (92) | $ (132) | $ 79 | $ (66) | $ 75 | $ (49) | $ 19 | $ 39 | $ 221 |
Reconciliation of net income (loss) to net cash attributable to operating activities: | |||||||||||
Noncontrolling interest | (3) | 4 | |||||||||
(Gain)/loss from subsidiaries | 0 | 0 | 0 | ||||||||
Net gain on mortgage loans held for sale | (797) | (684) | (597) | ||||||||
Provision for servicing reserves | 124 | 51 | 86 | ||||||||
Fair value changes and amortization of mortgage servicing rights | 484 | 460 | 234 | ||||||||
Fair value changes in mortgage loans held for sale | 15 | 1 | (12) | ||||||||
Fair value changes in excess spread financing | 25 | 26 | 57 | ||||||||
Fair value changes in mortgage servicing rights financing liability | (42) | 19 | (33) | ||||||||
Amortization (accretion) of premiums (discounts) | 64 | (2) | 11 | ||||||||
Depreciation and amortization | 63 | 53 | 40 | ||||||||
Shared based compensation | 21 | 20 | 19 | ||||||||
Loss on impairment of assets | 25 | 0 | 0 | ||||||||
Other (gain) loss | 2 | (7) | 4 | ||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | (1,432) | (1,865) | (3,692) | ||||||||
Mortgage loans originated and purchased, net of fees | (20,406) | (17,971) | (17,138) | ||||||||
Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 22,031 | 20,044 | 22,136 | ||||||||
Excess tax benefit (deficiency) from share based compensation | 4 | 0 | (2) | ||||||||
Changes in assets and liabilities: | |||||||||||
Advances and other receivables, net | 566 | 472 | 256 | ||||||||
Reverse mortgage interests, net | 246 | (285) | (1,020) | ||||||||
Other assets | (59) | 103 | 530 | ||||||||
Payables and accrued liabilities | 21 | (57) | (20) | ||||||||
Net cash attributable to operating activities | 971 | 421 | 1,080 | ||||||||
Investing Activities | |||||||||||
Property and equipment additions, net of disposals | (62) | (57) | (56) | ||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (144) | (715) | (471) | ||||||||
Purchase of reverse mortgage interests, net | (3,600) | (4,816) | 0 | ||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 68 | 44 | 0 | ||||||||
Proceeds on sale of servicer advances | 0 | 0 | 768 | ||||||||
Proceeds from sale of building | 0 | 0 | 10 | ||||||||
Business acquisitions, net | 0 | (46) | (18) | ||||||||
Net cash attributable to investing activities | (3,738) | (5,590) | 233 | ||||||||
Financing Activities | |||||||||||
Increase (decrease) in warehouse facilities | 529 | 321 | (860) | ||||||||
Proceeds from HECM securitizations | 724 | 560 | 269 | ||||||||
Repayment of HECM securitizations | (713) | (161) | (10) | ||||||||
Increase in participating interest financing in reverse mortgage interests | 2,939 | 4,541 | 353 | ||||||||
Decrease in advance facilities | (550) | (256) | (1,221) | ||||||||
Repayment of excess spread financing | (198) | (210) | (184) | ||||||||
Issuance of excess spread financing | 155 | 386 | 171 | ||||||||
Proceeds from mortgage servicing rights financing | 0 | 0 | 53 | ||||||||
Repayment of nonrecourse debt - legacy assets | (18) | (13) | (15) | ||||||||
Repurchase of unsecured senior notes | (40) | (103) | (285) | ||||||||
Repurchase of common stock | (114) | (7) | 0 | ||||||||
Issuance of common stock, net of issuance costs | 0 | 498 | 0 | ||||||||
Transfers (to) from restricted cash, net | (51) | (46) | 291 | ||||||||
Excess tax (deficiency) benefit from share based compensation | (4) | 0 | 2 | ||||||||
Surrender of shares relating to stock vesting | (3) | (6) | (5) | ||||||||
Debt financing costs | (13) | (21) | (15) | ||||||||
Net cash attributable to financing activities | 2,643 | 5,483 | (1,456) | ||||||||
Net increase (decrease) in cash and cash equivalents | (124) | 314 | (143) | ||||||||
Cash and cash equivalents at beginning of year | 613 | 299 | 613 | 299 | 442 | ||||||
Cash and cash equivalents at end of year | 489 | 613 | 489 | 613 | 299 | ||||||
Nationstar | |||||||||||
Operating Activities | |||||||||||
Net income (loss) attributable to Nationstar | 19 | 39 | 221 | ||||||||
Reconciliation of net income (loss) to net cash attributable to operating activities: | |||||||||||
Noncontrolling interest | 0 | 0 | |||||||||
(Gain)/loss from subsidiaries | (19) | (39) | (221) | ||||||||
Net gain on mortgage loans held for sale | 0 | 0 | |||||||||
Provision for servicing reserves | 0 | 0 | 0 | ||||||||
Fair value changes and amortization of mortgage servicing rights | 0 | 0 | 0 | ||||||||
Fair value changes in mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Fair value changes in excess spread financing | 0 | 0 | 0 | ||||||||
Fair value changes in mortgage servicing rights financing liability | 0 | 0 | 0 | ||||||||
Amortization (accretion) of premiums (discounts) | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Shared based compensation | 0 | 0 | 0 | ||||||||
Loss on impairment of assets | 0 | ||||||||||
Other (gain) loss | 0 | 0 | 0 | ||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | 0 | 0 | ||||||||
Mortgage loans originated and purchased, net of fees | 0 | 0 | 0 | ||||||||
Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 0 | 0 | 0 | ||||||||
Excess tax benefit (deficiency) from share based compensation | 0 | 0 | |||||||||
Changes in assets and liabilities: | |||||||||||
Advances and other receivables, net | 0 | 0 | 0 | ||||||||
Reverse mortgage interests, net | 0 | 0 | 0 | ||||||||
Other assets | 117 | 13 | 5 | ||||||||
Payables and accrued liabilities | 0 | 0 | 0 | ||||||||
Net cash attributable to operating activities | 117 | 13 | 5 | ||||||||
Investing Activities | |||||||||||
Property and equipment additions, net of disposals | 0 | 0 | 0 | ||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 | 0 | ||||||||
Purchase of reverse mortgage interests, net | 0 | 0 | |||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | 0 | |||||||||
Proceeds on sale of servicer advances | 0 | ||||||||||
Proceeds from sale of building | 0 | ||||||||||
Business acquisitions, net | 0 | 0 | |||||||||
Net cash attributable to investing activities | 0 | 0 | 0 | ||||||||
Financing Activities | |||||||||||
Increase (decrease) in warehouse facilities | 0 | 0 | 0 | ||||||||
Proceeds from HECM securitizations | 0 | 0 | 0 | ||||||||
Repayment of HECM securitizations | 0 | 0 | 0 | ||||||||
Increase in participating interest financing in reverse mortgage interests | 0 | 0 | 0 | ||||||||
Decrease in advance facilities | 0 | 0 | 0 | ||||||||
Repayment of excess spread financing | 0 | 0 | 0 | ||||||||
Issuance of excess spread financing | 0 | 0 | 0 | ||||||||
Proceeds from mortgage servicing rights financing | 0 | ||||||||||
Repayment of nonrecourse debt - legacy assets | 0 | 0 | 0 | ||||||||
Repurchase of unsecured senior notes | 0 | 0 | 0 | ||||||||
Repurchase of common stock | (114) | (7) | |||||||||
Issuance of common stock, net of issuance costs | 0 | ||||||||||
Transfers (to) from restricted cash, net | 0 | 0 | 0 | ||||||||
Excess tax (deficiency) benefit from share based compensation | 0 | 0 | |||||||||
Surrender of shares relating to stock vesting | (3) | (6) | (5) | ||||||||
Debt financing costs | 0 | 0 | 0 | ||||||||
Net cash attributable to financing activities | (117) | (13) | (5) | ||||||||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | ||||||||
Cash and cash equivalents at beginning of year | 0 | 0 | 0 | 0 | 0 | ||||||
Cash and cash equivalents at end of year | 0 | 0 | 0 | 0 | 0 | ||||||
Issuer | |||||||||||
Operating Activities | |||||||||||
Net income (loss) attributable to Nationstar | 19 | 39 | 221 | ||||||||
Reconciliation of net income (loss) to net cash attributable to operating activities: | |||||||||||
Noncontrolling interest | (3) | 4 | |||||||||
(Gain)/loss from subsidiaries | (44) | (60) | (112) | ||||||||
Net gain on mortgage loans held for sale | (768) | (639) | (584) | ||||||||
Provision for servicing reserves | 124 | 51 | 86 | ||||||||
Fair value changes and amortization of mortgage servicing rights | 484 | 460 | 234 | ||||||||
Fair value changes in mortgage loans held for sale | 15 | 1 | (12) | ||||||||
Fair value changes in excess spread financing | 3 | 26 | 57 | ||||||||
Fair value changes in mortgage servicing rights financing liability | (42) | 19 | (33) | ||||||||
Amortization (accretion) of premiums (discounts) | (9,907) | 2 | 13 | ||||||||
Depreciation and amortization | 43 | 40 | 36 | ||||||||
Shared based compensation | 15 | 13 | 19 | ||||||||
Loss on impairment of assets | 25 | ||||||||||
Other (gain) loss | 2 | (8) | (2) | ||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | (1,432) | (1,865) | (3,692) | ||||||||
Mortgage loans originated and purchased, net of fees | (19,612) | (16,827) | (17,138) | ||||||||
Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 31,024 | 18,926 | 22,142 | ||||||||
Excess tax benefit (deficiency) from share based compensation | 4 | (2) | |||||||||
Changes in assets and liabilities: | |||||||||||
Advances and other receivables, net | 566 | 470 | 259 | ||||||||
Reverse mortgage interests, net | 281 | 56 | (644) | ||||||||
Other assets | (741) | 220 | (1,611) | ||||||||
Payables and accrued liabilities | 41 | (67) | (71) | ||||||||
Net cash attributable to operating activities | 97 | 861 | (834) | ||||||||
Investing Activities | |||||||||||
Property and equipment additions, net of disposals | (55) | (36) | (41) | ||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (120) | (715) | (471) | ||||||||
Purchase of reverse mortgage interests, net | (3,600) | (4,816) | |||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 68 | 44 | |||||||||
Proceeds on sale of servicer advances | 768 | ||||||||||
Proceeds from sale of building | 10 | ||||||||||
Business acquisitions, net | 0 | (16) | |||||||||
Net cash attributable to investing activities | (3,707) | (5,523) | 250 | ||||||||
Financing Activities | |||||||||||
Increase (decrease) in warehouse facilities | 637 | 245 | 228 | ||||||||
Proceeds from HECM securitizations | (4) | 0 | 0 | ||||||||
Repayment of HECM securitizations | 0 | 0 | 0 | ||||||||
Increase in participating interest financing in reverse mortgage interests | 2,939 | 4,541 | 353 | ||||||||
Decrease in advance facilities | (51) | (333) | 0 | ||||||||
Repayment of excess spread financing | (198) | (210) | (184) | ||||||||
Issuance of excess spread financing | 155 | 386 | 171 | ||||||||
Proceeds from mortgage servicing rights financing | 53 | ||||||||||
Repayment of nonrecourse debt - legacy assets | 0 | (2) | 0 | ||||||||
Repurchase of unsecured senior notes | (40) | (103) | (285) | ||||||||
Repurchase of common stock | 0 | 0 | |||||||||
Issuance of common stock, net of issuance costs | 498 | ||||||||||
Transfers (to) from restricted cash, net | 45 | (22) | 119 | ||||||||
Excess tax (deficiency) benefit from share based compensation | (4) | 2 | |||||||||
Surrender of shares relating to stock vesting | 0 | 0 | 0 | ||||||||
Debt financing costs | (13) | (21) | (15) | ||||||||
Net cash attributable to financing activities | 3,466 | 4,979 | 442 | ||||||||
Net increase (decrease) in cash and cash equivalents | (144) | 317 | (142) | ||||||||
Cash and cash equivalents at beginning of year | 597 | 280 | 597 | 280 | 422 | ||||||
Cash and cash equivalents at end of year | 453 | 597 | 453 | 597 | 280 | ||||||
Guarantor (Subsidiaries) | |||||||||||
Operating Activities | |||||||||||
Net income (loss) attributable to Nationstar | 20 | 9 | 41 | ||||||||
Reconciliation of net income (loss) to net cash attributable to operating activities: | |||||||||||
Noncontrolling interest | 0 | 0 | |||||||||
(Gain)/loss from subsidiaries | 0 | 0 | 0 | ||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Provision for servicing reserves | 0 | 0 | 0 | ||||||||
Fair value changes and amortization of mortgage servicing rights | 0 | 0 | 0 | ||||||||
Fair value changes in mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Fair value changes in excess spread financing | 0 | 0 | 0 | ||||||||
Fair value changes in mortgage servicing rights financing liability | 0 | 0 | 0 | ||||||||
Amortization (accretion) of premiums (discounts) | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Shared based compensation | 0 | 0 | 0 | ||||||||
Loss on impairment of assets | 0 | ||||||||||
Other (gain) loss | 0 | 0 | 0 | ||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | 0 | 0 | ||||||||
Mortgage loans originated and purchased, net of fees | 0 | 0 | 0 | ||||||||
Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 0 | 0 | 0 | ||||||||
Excess tax benefit (deficiency) from share based compensation | 0 | 0 | |||||||||
Changes in assets and liabilities: | |||||||||||
Advances and other receivables, net | 0 | 0 | 0 | ||||||||
Reverse mortgage interests, net | 0 | 0 | 0 | ||||||||
Other assets | (21) | (9) | (39) | ||||||||
Payables and accrued liabilities | 1 | 1 | (6) | ||||||||
Net cash attributable to operating activities | 0 | 1 | (4) | ||||||||
Investing Activities | |||||||||||
Property and equipment additions, net of disposals | 1 | 0 | 0 | ||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 | 0 | ||||||||
Purchase of reverse mortgage interests, net | 0 | 0 | |||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | 0 | |||||||||
Proceeds on sale of servicer advances | 0 | ||||||||||
Proceeds from sale of building | 0 | ||||||||||
Business acquisitions, net | 0 | 0 | |||||||||
Net cash attributable to investing activities | 1 | 0 | 0 | ||||||||
Financing Activities | |||||||||||
Increase (decrease) in warehouse facilities | 0 | 0 | 0 | ||||||||
Proceeds from HECM securitizations | 0 | 0 | 0 | ||||||||
Repayment of HECM securitizations | 0 | 0 | 0 | ||||||||
Increase in participating interest financing in reverse mortgage interests | 0 | 0 | 0 | ||||||||
Decrease in advance facilities | 0 | 0 | 0 | ||||||||
Repayment of excess spread financing | 0 | 0 | 0 | ||||||||
Issuance of excess spread financing | 0 | 0 | 0 | ||||||||
Proceeds from mortgage servicing rights financing | 0 | ||||||||||
Repayment of nonrecourse debt - legacy assets | 0 | 0 | 0 | ||||||||
Repurchase of unsecured senior notes | 0 | 0 | 0 | ||||||||
Repurchase of common stock | 0 | 0 | |||||||||
Issuance of common stock, net of issuance costs | 0 | ||||||||||
Transfers (to) from restricted cash, net | 0 | 0 | 0 | ||||||||
Excess tax (deficiency) benefit from share based compensation | 0 | 0 | |||||||||
Surrender of shares relating to stock vesting | 0 | 0 | 0 | ||||||||
Debt financing costs | 0 | 0 | 0 | ||||||||
Net cash attributable to financing activities | 0 | 0 | 0 | ||||||||
Net increase (decrease) in cash and cash equivalents | 1 | 1 | (4) | ||||||||
Cash and cash equivalents at beginning of year | 1 | 0 | 1 | 0 | 4 | ||||||
Cash and cash equivalents at end of year | 2 | 1 | 2 | 1 | 0 | ||||||
Non-Guarantor (Subsidiaries) | |||||||||||
Operating Activities | |||||||||||
Net income (loss) attributable to Nationstar | 24 | 51 | 71 | ||||||||
Reconciliation of net income (loss) to net cash attributable to operating activities: | |||||||||||
Noncontrolling interest | 0 | 0 | |||||||||
(Gain)/loss from subsidiaries | 0 | 0 | 0 | ||||||||
Net gain on mortgage loans held for sale | (29) | (45) | (13) | ||||||||
Provision for servicing reserves | 0 | 0 | 0 | ||||||||
Fair value changes and amortization of mortgage servicing rights | 0 | 0 | 0 | ||||||||
Fair value changes in mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Fair value changes in excess spread financing | 22 | 0 | 0 | ||||||||
Fair value changes in mortgage servicing rights financing liability | 0 | 0 | 0 | ||||||||
Amortization (accretion) of premiums (discounts) | 9,971 | (4) | (2) | ||||||||
Depreciation and amortization | 20 | 13 | 4 | ||||||||
Shared based compensation | 6 | 7 | 0 | ||||||||
Loss on impairment of assets | 0 | ||||||||||
Other (gain) loss | 0 | 1 | 6 | ||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | 0 | 0 | ||||||||
Mortgage loans originated and purchased, net of fees | (794) | (1,144) | 0 | ||||||||
Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | (8,993) | 1,118 | (6) | ||||||||
Excess tax benefit (deficiency) from share based compensation | 0 | 0 | |||||||||
Changes in assets and liabilities: | |||||||||||
Advances and other receivables, net | 0 | 2 | (3) | ||||||||
Reverse mortgage interests, net | (35) | (341) | (376) | ||||||||
Other assets | 586 | (121) | 2,206 | ||||||||
Payables and accrued liabilities | (21) | 9 | 26 | ||||||||
Net cash attributable to operating activities | 757 | (454) | 1,913 | ||||||||
Investing Activities | |||||||||||
Property and equipment additions, net of disposals | (8) | (21) | (15) | ||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (24) | 0 | 0 | ||||||||
Purchase of reverse mortgage interests, net | 0 | 0 | |||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | 0 | |||||||||
Proceeds on sale of servicer advances | 0 | ||||||||||
Proceeds from sale of building | 0 | ||||||||||
Business acquisitions, net | (46) | (2) | |||||||||
Net cash attributable to investing activities | (32) | (67) | (17) | ||||||||
Financing Activities | |||||||||||
Increase (decrease) in warehouse facilities | (108) | 76 | (1,088) | ||||||||
Proceeds from HECM securitizations | 728 | 560 | 269 | ||||||||
Repayment of HECM securitizations | (713) | (161) | (10) | ||||||||
Increase in participating interest financing in reverse mortgage interests | 0 | 0 | 0 | ||||||||
Decrease in advance facilities | (499) | 77 | (1,221) | ||||||||
Repayment of excess spread financing | 0 | 0 | 0 | ||||||||
Issuance of excess spread financing | 0 | 0 | 0 | ||||||||
Proceeds from mortgage servicing rights financing | 0 | ||||||||||
Repayment of nonrecourse debt - legacy assets | (18) | (11) | (15) | ||||||||
Repurchase of unsecured senior notes | 0 | 0 | 0 | ||||||||
Repurchase of common stock | 0 | 0 | |||||||||
Issuance of common stock, net of issuance costs | 0 | ||||||||||
Transfers (to) from restricted cash, net | (96) | (24) | 172 | ||||||||
Excess tax (deficiency) benefit from share based compensation | 0 | 0 | |||||||||
Surrender of shares relating to stock vesting | 0 | 0 | 0 | ||||||||
Debt financing costs | 0 | 0 | 0 | ||||||||
Net cash attributable to financing activities | (706) | 517 | (1,893) | ||||||||
Net increase (decrease) in cash and cash equivalents | 19 | (4) | 3 | ||||||||
Cash and cash equivalents at beginning of year | 15 | 19 | 15 | 19 | 16 | ||||||
Cash and cash equivalents at end of year | 34 | 15 | 34 | 15 | 19 | ||||||
Eliminations | |||||||||||
Operating Activities | |||||||||||
Net income (loss) attributable to Nationstar | (63) | (99) | (333) | ||||||||
Reconciliation of net income (loss) to net cash attributable to operating activities: | |||||||||||
Noncontrolling interest | 0 | 0 | |||||||||
(Gain)/loss from subsidiaries | 63 | 99 | 333 | ||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Provision for servicing reserves | 0 | 0 | 0 | ||||||||
Fair value changes and amortization of mortgage servicing rights | 0 | 0 | 0 | ||||||||
Fair value changes in mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Fair value changes in excess spread financing | 0 | 0 | 0 | ||||||||
Fair value changes in mortgage servicing rights financing liability | 0 | 0 | 0 | ||||||||
Amortization (accretion) of premiums (discounts) | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Shared based compensation | 0 | 0 | 0 | ||||||||
Loss on impairment of assets | 0 | ||||||||||
Other (gain) loss | 0 | 0 | 0 | ||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | 0 | 0 | ||||||||
Mortgage loans originated and purchased, net of fees | 0 | 0 | 0 | ||||||||
Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 0 | 0 | 0 | ||||||||
Excess tax benefit (deficiency) from share based compensation | 0 | 0 | |||||||||
Changes in assets and liabilities: | |||||||||||
Advances and other receivables, net | 0 | 0 | 0 | ||||||||
Reverse mortgage interests, net | 0 | 0 | 0 | ||||||||
Other assets | 0 | 0 | (31) | ||||||||
Payables and accrued liabilities | 0 | 0 | 31 | ||||||||
Net cash attributable to operating activities | 0 | 0 | 0 | ||||||||
Investing Activities | |||||||||||
Property and equipment additions, net of disposals | 0 | 0 | 0 | ||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 | 0 | ||||||||
Purchase of reverse mortgage interests, net | 0 | 0 | |||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | 0 | |||||||||
Proceeds on sale of servicer advances | 0 | ||||||||||
Proceeds from sale of building | 0 | ||||||||||
Business acquisitions, net | 0 | 0 | |||||||||
Net cash attributable to investing activities | 0 | 0 | 0 | ||||||||
Financing Activities | |||||||||||
Increase (decrease) in warehouse facilities | 0 | 0 | 0 | ||||||||
Proceeds from HECM securitizations | 0 | 0 | 0 | ||||||||
Repayment of HECM securitizations | 0 | 0 | 0 | ||||||||
Increase in participating interest financing in reverse mortgage interests | 0 | 0 | 0 | ||||||||
Decrease in advance facilities | 0 | 0 | 0 | ||||||||
Repayment of excess spread financing | 0 | 0 | 0 | ||||||||
Issuance of excess spread financing | 0 | 0 | 0 | ||||||||
Proceeds from mortgage servicing rights financing | 0 | ||||||||||
Repayment of nonrecourse debt - legacy assets | 0 | 0 | 0 | ||||||||
Repurchase of unsecured senior notes | 0 | 0 | 0 | ||||||||
Repurchase of common stock | 0 | 0 | |||||||||
Issuance of common stock, net of issuance costs | 0 | ||||||||||
Transfers (to) from restricted cash, net | 0 | 0 | 0 | ||||||||
Excess tax (deficiency) benefit from share based compensation | 0 | 0 | |||||||||
Surrender of shares relating to stock vesting | 0 | 0 | 0 | ||||||||
Debt financing costs | 0 | 0 | 0 | ||||||||
Net cash attributable to financing activities | 0 | 0 | 0 | ||||||||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | ||||||||
Cash and cash equivalents at beginning of year | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Cash and cash equivalents at end of year | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Transactions with Affiliates -
Transactions with Affiliates - Narrative (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016USD ($)special_purpose_entity | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Feb. 28, 2013USD ($) | |
Related Party Transaction [Line Items] | |||||
Excess spread financing | $ 1,064 | $ 1,232 | |||
Nonrecourse variable funding notes to finance advances | $ 2,100 | ||||
Mortgage servicing rights financing liability - fair value | 27 | 69 | |||
Purchase price paid reverse mortgage | $ 50 | ||||
Percentage of acquired reverse loans, sold to co-investor | 70.00% | ||||
Affiliates of Fortress | |||||
Related Party Transaction [Line Items] | |||||
Earned revenue for serving arrangements | 10 | 10 | $ 13 | ||
Newcastle | |||||
Related Party Transaction [Line Items] | |||||
Earned revenue for serving arrangements | $ 3 | 4 | 4 | ||
Servicing fee, percentage of unpaid principal balance | 0.50% | ||||
Principal amount outstanding on mortgage servicing rights | $ 576 | 658 | 762 | ||
New Residential | |||||
Related Party Transaction [Line Items] | |||||
Earned revenue for serving arrangements | 1 | 0 | 0 | ||
Payments for servicing fees | $ 290 | 294 | 277 | ||
Number of wholly owned special purpose entities | special_purpose_entity | 2 | ||||
Revenue recognized for serving arrangements | $ 5 | 4 | 4 | ||
Springleaf | |||||
Related Party Transaction [Line Items] | |||||
Revenue recognized for serving arrangements | 1 | 2 | 5 | ||
Reverse mortgage interests, net | |||||
Related Party Transaction [Line Items] | |||||
Principal amount outstanding on mortgage servicing rights | 38,940 | 29,855 | $ 83 | ||
Loan Subservicing Agreement | NIC Reverse Loan LLC | |||||
Related Party Transaction [Line Items] | |||||
Total related party transaction | 0.3 | 0.3 | $ 0.3 | ||
Loan Subservicing Agreement | Springleaf | |||||
Related Party Transaction [Line Items] | |||||
Outstanding receivable from related party | $ 2 | $ 0 |
Quarterly Financial Data (Un114
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Service related revenue, net | $ 616 | $ 305 | $ 113 | $ 84 | $ 421 | $ 211 | $ 458 | $ 215 | $ 1,118 | $ 1,305 | $ 1,376 |
Net gain on mortgage loans held for sale | 173 | 237 | 216 | 171 | 167 | 186 | 164 | 167 | 797 | 684 | 597 |
Total revenues | 789 | 542 | 329 | 255 | 588 | 397 | 622 | 382 | 1,915 | 1,989 | 1,973 |
Total expenses | 412 | 407 | 413 | 412 | 417 | 446 | 441 | 384 | 1,644 | 1,688 | 1,358 |
Total other income (expense), net | (60) | (64) | (60) | (58) | (50) | (63) | (61) | (73) | (242) | (247) | (329) |
Income (loss) before income tax expense (benefit) | 317 | 71 | (144) | (215) | 121 | (112) | 120 | (75) | 29 | 54 | 286 |
Less: Income tax expense (benefit) | 119 | 29 | (53) | (82) | 42 | (47) | 44 | (28) | 13 | 11 | 65 |
Net income (loss) | 198 | 42 | (91) | (133) | 79 | (65) | 76 | (47) | 16 | 43 | 221 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | (3) | 1 | (1) | 0 | 1 | 1 | 2 | (3) | 4 | 0 |
Net income (loss) attributable to Nationstar | $ 198 | $ 45 | $ (92) | $ (132) | $ 79 | $ (66) | $ 75 | $ (49) | $ 19 | $ 39 | $ 221 |
Net income (loss) per common share attributable to common stockholders: | |||||||||||
Basic (in dollars per share) | $ 2.02 | $ 0.46 | $ (0.92) | $ (1.28) | $ 0.85 | $ (0.62) | $ 0.69 | $ (0.54) | $ 0.19 | $ 0.38 | $ 2.47 |
Diluted (in dollars per share) | $ 2.01 | $ 0.46 | $ (0.92) | $ (1.28) | $ 0.84 | $ (0.62) | $ 0.69 | $ (0.54) | $ 0.19 | $ 0.37 | $ 2.45 |
Subsequent Events (Details)
Subsequent Events (Details) - Loan Subservicing Agreement - Subsidiary of New Residential - Subsequent Event $ in Billions | Jan. 31, 2017USD ($) |
Subsequent Event [Line Items] | |
UPB forward mortgage loans | $ 111 |
Agency MSRs [Member] | |
Subsequent Event [Line Items] | |
UPB forward mortgage loans | $ 97 |