Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2016 | Jun. 30, 2015 | |
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 | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
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) | 108,120,381 | ||
Entity Public Float | $ 663,509,128 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 613,241 | $ 299,002 |
Restricted cash | 332,105 | 285,530 |
Mortgage servicing rights, $3,358,327 and $2,949,739 at fair value, respectively | 3,366,973 | 2,961,321 |
Advances, net | 2,223,083 | 2,544,699 |
Reverse mortgage interests | 7,514,323 | 2,453,069 |
Mortgage loans held for sale | 1,429,691 | 1,277,931 |
Mortgage loans held for investment, net of allowance for loan losses of $3,549 and $3,531, respectively | 173,650 | 191,569 |
Property and equipment, net of accumulated depreciation of $92,834 and $69,721, respectively | 142,836 | 129,611 |
Derivative financial instruments | 99,199 | 91,051 |
Other assets | 758,969 | 878,892 |
Total assets | 16,654,070 | 11,112,675 |
Liabilities and stockholders' equity | ||
Unsecured senior notes | 2,048,694 | 2,159,231 |
Advance facilities | 1,646,123 | 1,901,783 |
Warehouse facilities | 1,893,526 | 1,572,622 |
Payables and accrued liabilities | 1,296,387 | 1,322,078 |
MSR related liabilities - nonrecourse | 1,300,782 | 1,080,465 |
Mortgage servicing liabilities | 25,260 | 65,382 |
Derivative financial instruments | 5,323 | 18,525 |
Other nonrecourse debt | 6,670,598 | 1,768,311 |
Total liabilities | $ 14,886,693 | $ 9,888,397 |
Commitments and contingencies (Note 18) | ||
Preferred stock at $0.01 par value - 300,000 shares authorized, no shares issued and outstanding | $ 0 | $ 0 |
Common stock at $0.01 par value - 1,000,000 shares authorized, 109,826 shares and 90,999 shares issued, respectively | 1,084 | 910 |
Additional paid-in-capital | 1,104,972 | 587,446 |
Retained earnings | 681,838 | 643,059 |
Treasury shares at cost; 989 and 602 shares, respectively | (29,780) | (12,433) |
Accumulated other comprehensive income | 0 | 0 |
Total Nationstar stockholders' equity | 1,758,114 | 1,218,982 |
Noncontrolling interest | 9,263 | 5,296 |
Total stockholders' equity | 1,767,377 | 1,224,278 |
Total liabilities and stockholders' equity | $ 16,654,070 | $ 11,112,675 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Mortgage servicing rights at fair value | $ 3,358,327 | $ 2,949,739 |
Allowance for loan losses of mortgage loans held for investment, subject to nonrecourse debt | 3,549 | 3,531 |
Accumulated depreciation of property and equipment | $ 92,834 | $ 69,721 |
Preferred stock, par value (USD 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 (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (shares) | 109,826,000 | 90,999,000 |
Treasury stock, shares (shares) | 989,000 | 602,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Service related | $ 1,304,760 | $ 1,375,862 | $ 1,384,222 |
Net gain on mortgage loans held for sale | 683,875 | 597,206 | 702,763 |
Total revenues | 1,988,635 | 1,973,068 | 2,086,985 |
Expenses: | |||
Salaries, wages and benefits | (762,568) | (642,936) | (679,637) |
General and administrative | 925,011 | 714,755 | 722,641 |
Total expenses | 1,687,579 | 1,357,691 | 1,402,278 |
Other income (expenses): | |||
Interest income | 350,755 | 179,592 | 197,220 |
Interest expense | (605,223) | (516,387) | (538,805) |
Gain on disposal of property | 0 | 4,898 | 0 |
Gain on repurchase of unsecured senior notes | 8,237 | 0 | 0 |
Gain (loss) on interest rate swaps and caps | (650) | 2,404 | 3,132 |
Total other income (expense) | (246,881) | (329,493) | (338,453) |
Income before income tax expense | 54,175 | 285,884 | 346,254 |
Income tax expense | 11,012 | 64,860 | 129,200 |
Net income | 43,163 | 221,024 | 217,054 |
Less: net income attributable to noncontrolling interests | 4,384 | 306 | 0 |
Net income attributable to Nationstar | 38,779 | 220,718 | 217,054 |
Other comprehensive income, net of tax: | |||
Change in value of designated cash flow hedge, net of tax of $0, ($1,183) and $1,183, respectively | 0 | (1,963) | 1,963 |
Total comprehensive income | $ 38,779 | $ 218,755 | $ 219,017 |
Net income per common share attributable to common stockholders: | |||
Basic earnings per share (USD per share) | $ 0.38 | $ 2.47 | $ 2.43 |
Diluted earnings per share (USD per share) | $ 0.37 | $ 2.45 | $ 2.40 |
Weighted average shares of common stock outstanding: | |||
Basic (shares) | 103,248 | 89,521 | 89,415 |
Dilutive effect of stock awards (shares) | 532 | 499 | 853 |
Diluted (shares) | 103,780 | 90,020 | 90,268 |
Dividends declared per share | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Ope5
Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Tax on cash flow hedges | $ 0 | $ (1,183) | $ 1,183 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Shares Amount | Common Shares Held by Subsidiary | Accumulated Other Comprehensive Income | Total Nationstar Stockholders' Equity | Non-controlling Interests |
Balance, shares (shares) at Dec. 31, 2012 | 90,460,000 | ||||||||
Balance at Dec. 31, 2012 | $ 757,682 | $ 905 | $ 556,056 | $ 205,287 | $ 0 | $ (4,566) | $ 0 | $ 757,682 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued under incentive plan (shares) | 82,000 | ||||||||
Shares issued under incentive plan | 0 | $ (3) | 3 | ||||||
Change in value of cash flow hedge, net of tax of $1,183 | 1,963 | 1,963 | 1,963 | ||||||
Share-based compensation | 10,574 | 10,574 | 10,574 | ||||||
Excess tax benefit from share-based compensation | 4,579 | 4,579 | 4,579 | ||||||
Shares acquired by Nationstar related to incentive compensation awards | (6,944) | (6,944) | (6,944) | ||||||
Shares canceled (shares) | (212,000) | ||||||||
Shares canceled | 0 | $ (2) | (4,564) | 4,566 | |||||
Contributions from joint venture members to noncontrolling interests | 4,990 | 4,990 | |||||||
Net income | 217,054 | 217,054 | 217,054 | ||||||
Balance at Dec. 31, 2013 | 989,898 | $ 906 | 566,642 | 422,341 | (6,944) | 0 | 1,963 | 984,908 | 4,990 |
Balance, shares (shares) at Dec. 31, 2013 | 90,330,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued under incentive plan (shares) | 1,271,000 | ||||||||
Shares issued under incentive plan | 0 | $ (4) | (4) | ||||||
Change in value of cash flow hedge, net of tax of $1,183 | (1,963) | (1,963) | (1,963) | ||||||
Share-based compensation | 18,565 | 18,565 | 18,565 | ||||||
Excess tax benefit from share-based compensation | 2,243 | 2,243 | 2,243 | ||||||
Shares acquired by Nationstar related to incentive compensation awards | (5,489) | (5,489) | (5,489) | ||||||
Contributions from joint venture members to noncontrolling interests | 0 | ||||||||
Net income | 221,024 | 220,718 | 220,718 | 306 | |||||
Balance at Dec. 31, 2014 | 1,224,278 | $ 910 | 587,446 | 643,059 | (12,433) | 0 | 0 | 1,218,982 | 5,296 |
Balance, shares (shares) at Dec. 31, 2014 | 91,601,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Change in value of cash flow hedge, net of tax of $1,183 | 0 | ||||||||
Share-based compensation | 19,521 | 19,521 | 19,521 | ||||||
Excess tax benefit from share-based compensation | $ 422 | 422 | 422 | ||||||
Repurchase of common stock (in shares) | (837,000) | (504,000) | |||||||
Shares acquired by Nationstar related to incentive compensation awards | $ (17,347) | (17,347) | (17,347) | ||||||
Contributions from joint venture members to noncontrolling interests | 0 | ||||||||
Acquisition on noncontrolling interest in subsidiaries | 417 | 417 | |||||||
Stock offering | 497,757 | $ 174 | 497,583 | 497,757 | |||||
Net income | 43,163 | 38,779 | 38,779 | 4,384 | |||||
Balance at Dec. 31, 2015 | $ 1,767,377 | $ 1,084 | $ 1,104,972 | $ 681,838 | $ (29,780) | $ 0 | $ 0 | $ 1,758,114 | $ 9,263 |
Balance, shares (shares) at Dec. 31, 2015 | 109,826,000 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Tax on cash flow hedges | $ 0 | $ (1,183) | $ 1,183 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating activities | ||||
Net income | $ 38,779 | $ 220,718 | $ 217,054 | |
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: | ||||
Noncontrolling interest | 4,384 | 306 | 0 | |
Share-based compensation | 19,521 | 18,565 | 10,574 | |
Gain on disposal of property | 0 | (4,898) | 0 | |
Gain on repurchase of unsecured senior notes | (8,237) | 0 | 0 | |
Excess tax benefit from share based compensation | (422) | (2,243) | (4,579) | |
Loss on foreclosed real estate and other | 0 | 10,288 | 13,316 | |
Net gain on mortgage loans held for sale | (683,875) | (597,206) | (702,763) | |
Mortgage loans originated and purchased, net of fees | (17,971,304) | (17,137,520) | (24,059,757) | |
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | (1,865,347) | (3,692,199) | (1,426,860) | |
Proceeds on sale of and payments of mortgage loans held for sale and held for investment | 20,045,420 | 22,123,973 | 24,595,051 | |
(Gain) loss on interest swaps and caps | 650 | (2,404) | (6,080) | |
Cash settlement on derivative financial instruments | 0 | 1,352 | (4,544) | |
Depreciation and amortization | 53,497 | 40,166 | 26,615 | |
Amortization (accretion) of premiums (discounts) | (11,671) | 13,330 | 52,531 | |
Fair value changes in excess spread financing | 25,631 | 57,554 | 73,333 | |
Fair value changes and amortization (accretion) of mortgage servicing rights | 459,803 | 233,537 | (59,101) | |
Fair value changes mortgage servicing rights financing liability | 19,266 | (33,279) | 0 | |
Changes in assets and liabilities: | ||||
Advances | 323,279 | 324,182 | (465,775) | |
Reverse mortgage interests | (245,570) | (1,002,142) | (751,609) | |
Other assets | 270,595 | 528,112 | 44,237 | |
Payables and accrued liabilities | (56,573) | (19,983) | 647,320 | |
Net cash attributable to operating activities | 417,826 | 1,080,209 | (1,801,037) | |
Investing activities | ||||
Property and equipment additions, net of disposals | (57,042) | (56,405) | (48,859) | |
Purchase of forward mortgage servicing rights, net of liabilities incurred | (714,842) | (471,249) | (1,527,645) | |
Sale of forward mortgage service rights | 43,793 | 0 | 0 | |
Purchase of reverse mortgage interests, net of participations sold | (4,815,684) | 0 | 0 | |
Proceeds on sale of servicer advances | 0 | 768,449 | 277,455 | |
Proceeds from sale of building | 0 | 10,412 | 0 | |
Purchase of reverse mortgage servicing rights and interests | 0 | 0 | (19,189) | |
Acquisitions, net of cash acquired | (45,796) | (18,000) | (88,200) | |
Net cash attributable to investing activities | (5,589,571) | 233,207 | (1,406,438) | |
Financing activities | ||||
Transfers (to) from restricted cash, net | (46,575) | 290,803 | (232,695) | |
Issuance of unsecured senior notes, net | 0 | 0 | 1,365,244 | |
Repayment / redemption of unsecured senior notes | (102,533) | (285,000) | 0 | |
Issuance of common stock, net of issuance costs | 497,757 | 0 | 0 | |
Debt financing costs | (17,363) | (13,067) | (53,529) | |
Increase (decrease) in warehouse facilities | 320,904 | (861,305) | 1,395,427 | |
Increase (decrease) in advance facilities | (255,660) | (1,221,206) | (154,677) | |
Proceeds from HECM securitizations | 559,757 | 269,033 | 0 | |
Repayment of HECM securitizations | (161,221) | (9,750) | 0 | |
Issuance of excess spread financing | 385,637 | 171,317 | 753,002 | |
Repayment of excess spread financing | (210,217) | (184,246) | (130,355) | |
Increase in participating interest financing in reverse mortgage interests | 4,540,828 | 352,945 | 535,216 | |
Proceeds from mortgage servicing rights financing | 0 | 52,835 | 29,874 | |
Repayment of nonrecourse debt – legacy assets | (12,817) | (15,429) | (13,404) | |
Excess tax benefit from share-based compensation | 422 | 2,243 | 4,579 | |
Surrender of shares relating to stock vesting | (6,224) | (5,489) | (6,944) | |
Repurchase of treasury shares | (6,711) | 0 | 0 | |
Contributions from joint venture member to noncontrolling interests | 0 | 0 | 4,990 | |
Net cash attributable to financing activities | 5,485,984 | (1,456,316) | 3,496,728 | |
Net increase (decrease) in cash and cash equivalents | 314,239 | (142,900) | 289,253 | |
Cash and cash equivalents at beginning of period | 299,002 | 441,902 | 152,649 | |
Cash and cash equivalents at end of period | 613,241 | 299,002 | $ 441,902 | $ 152,649 |
Supplemental disclosures of cash activities | ||||
Cash paid for interest expense | 430,555 | 515,152 | 441,333 | |
Net cash paid for income taxes | 30,209 | 1,781 | 114,454 | |
Supplemental disclosures of non-cash activities | ||||
Claims made to third parties | $ 60,518 | $ 166,278 | $ 423,324 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business Nationstar Mortgage Holdings Inc. (Nationstar or the Company), a Delaware corporation, earns fees through the delivery of servicing, origination and transaction based services principally to single-family residences throughout the United States. Basis of Presentation The Company follows generally accepted accounting principles in the United States of America (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 (VIEs) where Nationstar's wholly-owned subsidiaries are the primary beneficiaries. Nationstar applies the equity method of accounting to investments when the entity is a VIE and Nationstar is able to exercise significant influence, but not control, over the policies and procedures of the entity but owns less than 50% of the voting interests. Intercompany balances and transactions on consolidated entities have been eliminated. Business combinations are included in the consolidated financial statements from their respective dates of acquisitions. Results of operations, assets and liabilities of VIEs are included from the date that Nationstar became the primary beneficiary through the date Nationstar ceases to be the primary beneficiary. Nationstar evaluated subsequent events through the date these consolidated financial statements were issued. Use of Estimates The preparation of the financial statements 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, changes in prepayment assumptions, declines in home prices or discrete events adversely affecting specific borrowers, and such differences could be material. Reclassifications Certain prior-period amounts have been reclassified to conform to the current-period presentation. The primary reclassifications were the result of new accounting guidance (see Subtopic 310-40 below) which impacted the presentation of Reverse Mortgage Interests. As a result, the Company transferred amounts included within Other Assets into Reverse Mortgage Interests both on the Consolidated Balance Sheets and Consolidated Statement of Cash Flows for all periods presented. Recent Accounting Guidance Adopted Effective January 1, 2015, the Company adopted Accounting Standards Update No. 2014-14, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40), Classification of Certain Government-Guaranteed Loans Upon Foreclosure ( ASU 2014-14). This update requires that foreclosed mortgage loans guaranteed by the government be derecognized and a separate other receivable recognized if certain conditions are met. Upon adoption of this ASU, foreclosed loans backed by government guarantees that were previously recorded as a component of Real Estate Owned in Other Assets were reclassified to Reverse Mortgage Interests on the Company's consolidated balance sheet. Consistent with the Company's adoption of ASU 2014-14, $69.4 million from the prior year was reclassified to be in conformity with the current year presentation. The adoption of ASU 2014-14 was limited to balance sheet reclassification, and did not impact the Company's financial condition, liquidity or results of operations. Effective January 1, 2015, the Company adopted Accounting Standards Update No. 2014-04, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40), Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure (ASU 2014-04). This update requires disclosure of consumer mortgage loans collateralized by residential real estate for which formal foreclosure proceedings are in process. Consistent with the Company's adoption of ASU 2014-04, the Company made the required disclosure for the current and prior year in the Mortgage Loans Held for Sale and Investment footnote. The adoption of ASU 2014-04 did not impact the Company's financial condition, liquidity or results of operations. Accounting Standards Update No 2014-11, Transfers and Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (ASU 2014-11), was created to provide greater disclosure in reference to repurchase agreements and similar transactions. Under ASC 2014-11, repurchase-to-maturity transactions are accounted for as secured borrowings and eliminates existing guidance for repurchase financings. In addition, new disclosures are required for (1) certain transactions accounted for as secured borrowings and (2) transfers accounted for as sales when the transferor also retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. This amendment update is effective for year-end periods beginning after December 15, 2014 and early application is not permitted. The adoption of ASU 2014-11 did not have a material impact on our financial condition, liquidity or results of operations. Recent Accounting Guidance Not Yet Adopted Accounting Standards Update No 2014-09, Revenue from Contracts with Customers (ASU 2014-09), provides guidance for revenue recognition. This ASU 2014-09’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods or services. The guidance was originally effective for annual reporting periods of public entities beginning on or after December 15, 2016, including interim periods within that reporting period. To allow entities additional time to implement systems, gather data and resolve implementation questions, the FASB issued ASU No. 2015-14, Revenue From Contracts with Customers – Deferral of the Effective Date , in August 2015, to defer the effective date of ASU No. 2014-09 for one year. The company is currently assessing the potential impact of the adoption of ASU 2014-09 on the consolidated financial statements. 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), requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. The adoption of ASU 2014-12 is not expected to have a material impact on our financial condition, liquidity or results of operations. Accounting Standards Update No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15), creates a consistency in the disclosures made by an entity when there is doubt that the entity will continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016. The adoption of ASU 2014-15 is not expected to have a material impact on our financial condition, liquidity or results of operations. Accounting Standards Update 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (ASU 2015-01), eliminates the concept of extraordinary items from GAAP. ASU 2015-01 is effective for fiscal years beginning after December 15, 2015. The adoption of ASU 2015-01 is not expected to have a material impact on our financial condition, liquidity or results of operations. Accounting Standards Update 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (ASU 2015-02), changes the analysis that a reporting entity must perform when deciding to consolidate a legal entity. This amendment changes the evaluation of whether limited partnerships are variable interest entities or voting interest entities and eliminates the presumption that a general partner should consolidate a limited partnership. This amendment also changes the analysis for entities that are involved with variable interest entities and provides an exception for companies with interests in entities that are required to comply with requirements of the Investment Company Act of 1940 for registered money market funds. The amendment is effective for fiscal years and interim periods beginning after December 15, 2015. The adoption of ASU 2015-12 is not expected to have a material impact on our financial condition, liquidity or results of operations. Accounting Standards Update 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), requires that debt issuance costs be included in the carrying value of the related debt liability, when recognized, on the face of the balance sheet. This amendment is effective for fiscal years beginning after December 15, 2015. The adoption of ASU 2015-03 will be limited to balance sheet reclassification, and will not impact the Company's financial condition, liquidity or results of operations. Also, ASU 2015-15 Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements further expands ASU 2015-03 for presentation and disclosure in the financial statements. ASU 2015-15 amends Subtopic 835-30 to include that the SEC would not object to the deferral and presentation of debt issuance costs as an asset and subsequent amortization of the deferred costs over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. Accounting Standards Update 2015-05, Intangibles — Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (ASU 2015-05), was created to eliminate diversity in the reporting of fees paid by a customer in a cloud computing arrangement caused by lack of guidance. This update provides that if a cloud computing arrangement includes a software license, the license element should be accounted for as other acquired software licenses. If the cloud computing arrangement does not include a software license, then the fees should be accounted for as a service contract. This amendment is effective for annual periods beginning after December 15, 2015. The adoption of ASU 2015-05 is not expected to have a material impact on our financial condition, liquidity or results of operations. Accounting Standards Update 2016-02, Lease, requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. For calendar-year public business entities and certain calendar-year not-for-profit entities and employee benefit plans, the guidance is effective in 2019, and interim periods within that year. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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 highly liquid investments having an original maturity of less than three months. Restricted Cash Restricted cash comprises three components. With respect to Originations, 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 Servicing, the restricted cash includes cash received from borrowers or investors on loans pledged to advance facilities. In addition, the Servicing restricted cash relates to advance facilities structured as special purposes entities. Advances, Net The Company will advance funds when the borrower fails to meet contractual payments (e.g., principal, interest, property taxes, insurance). The Company will also advance funds to maintain, report and market foreclosed real estate properties on behalf of investors. Advances are recovered from borrowers for reinstated and performing loans and from investors for foreclosed loans. Per the servicing agreements, the Company is only obligated to advance funds to extent that such advances are recoverable. Nationstar may also acquire servicer advances in conjunction with the acquisition of Mortgage Servicing Rights (MSRs). Acquired servicer advances are recorded at their relative fair value amounts on the acquisition date, and any recorded discounts are accreted into interest income on a cost recovery method as the related servicer advances are recovered either through repayment from the borrower, liquidation of the underlying mortgage loans, or through a modification and recovery of the outstanding servicer advance balance from the securitization trust. When Nationstar has determined that, based on all available information, it is probable that a loss has been incurred, and that all contractual amounts due will not be recovered, an impairment is recognized through the recording of a valuation allowance. Any changes to the valuation allowance are recorded through general and administrative expenses. Mortgage Loans Held for Sale Nationstar has elected to measure newly originated prime residential mortgage loans held for sale at fair value. Nationstar estimates fair value 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 newly originated prime residential mortgage loans held for sale at fair value, Nationstar is not permitted to defer the loan originations fees, net of direct loan originations costs associated with these loans. In addition, the Company may at times repurchase loans that were previously transferred to Ginnie Mae if that loan meets certain criteria, including being delinquent greater than 90 days. Nationstar has also elected to measure these repurchased loans at fair value. At times, Nationstar may acquire loans that it services through the exercise of clean-up calls. These loans are carried at the lower of cost or fair value. Mortgage Loans Held for Investment, Net Mortgage loans held for investment primarily consist of nonconforming or subprime mortgage loans securitized which serve as collateral for the issued debt. These loans were transferred in 2009 from mortgage loans held for sale at fair value on the transfer date, as determined by the present value of expected future cash flows, with no valuation allowance recorded. 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. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at transfer are recognized as a yield adjustment or as a loss accrual or a valuation allowance. 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. An allowance for loan losses 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 Reverse mortgages (known as Home Equity Conversion Mortgages or HECMs) provide seniors (62 and older) with a loan secured by their home. Nationstar records acquired reverse mortgage interests assets and obligations assumed at relative fair value on the acquisition date. Any premium or discount associated with the recording of the funded advances is accreted into interest income as the underlying HECMs are liquidated. Nationstar is obligated in its capacity as servicer to fund future borrower obligations, which include fees paid to taxing authorities for borrowers' unpaid taxes and insurance, mortgage insurance premiums and payments made to borrowers for line of credit draws on reverse mortgages. In addition, Nationstar capitalizes the servicing fees and interest income it earns for servicing the reverse mortgage interests. These payments funded by Nationstar are recorded as reverse mortgage interests on the Company's consolidated balance sheets. Nationstar includes the cash outflow from funding these payments as operating activities as a component of reverse mortgage interests. The securitization cash inflow is reported as a financing activity as a component of the change in interest financing and reverse mortgage interests in the consolidated statements of cash flows. Nationstar receives a monthly servicing fee, which is recorded as either interest income or servicing fee income on the consolidated statements of operations and comprehensive income based upon if the related advance was either funded by or acquired by Nationstar. Interest income is accrued monthly based upon the borrower interest rate applied to the HECM outstanding principal balance of reverse mortgage interests. 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. Issuers of HECMs are responsible for repurchasing any loans out of the HMBS pool when the outstanding principal balance of the related HECM loan is equal to or greater than 98% of the lesser of the appraised value of the underlying property at origination or $625 thousand . When Nationstar determines that a loss on the balance of the reverse mortgage interests is probable and that the carrying balance may be partially or fully uncollectible, reserves are established by recording a provision which is include in general and administrative expenses of the consolidated statements of operations and comprehensive income. Mortgage Servicing Rights (MSRs) Nationstar recognizes the rights to service mortgage loans for others, or MSRs, as assets whether purchased or as a result of the sale of loans Nationstar originates. Nationstar initially record all of our MSRs at fair value. MSRs related to reverse mortgages are subsequently measured at lower of cost or market (LOCOM). For MSRs recorded 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 these loans. Nationstar receives a base servicing fee ranging from 0.21% to 0.50% annually on the remaining outstanding principal balances of the loans. The servicing fees are collected from investors. Nationstar determines the fair value of the MSRs by the use of a discounted cash flow model that 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 nature 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. Additionally, Nationstar owns servicing rights for reverse mortgage loans. For this class of servicing rights, Nationstar applies the amortization method (or LOCOM) with the capitalized cost of the MSRs amortized in proportion and over the period of the estimated net future servicing income and recognized as an adjustment to service related revenue. The expected period of the estimated net servicing income is based, in part, on the expected prepayment period of the underlying reverse mortgages. This class of MSRs is periodically evaluated for impairment. For purposes of measuring impairment, MSRs are stratified based on predominant risk characteristics of the underlying serviced loans. These risk characteristics include loan type (fixed or adjustable rate), term and interest rate. Impairment, if any, represents the excess of amortized cost of an individual stratum over its estimated fair value and is recognized through a valuation allowance. 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 that are accounted for as financings, with the total proceeds being recorded as a component of MSR related liabilities - nonrecourse on the consolidated balance sheets. Nationstar determines the effective interest rate on these liabilities and allocates total payments between interest expense and a portion as a reduction to the total outstanding liability. Under these agreements, Nationstar sold to a third party 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. 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 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 for similar financial instruments. Mortgage Servicing Rights Financing From time to time, Nationstar will enter into certain transactions with third parties to sell certain mortgage servicer rights and servicer advances under specified terms. Nationstar evaluates these transactions to determine if they are sales or structured financing arrangements. 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, 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 financings at fair value with all changes in fair value recorded as a charge or credit to service related revenue 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 certain of these funded advances through issuance of Home Equity Conversion Mortgage Backed Securities (HMBS) to third-party security holders which are guaranteed by GNMA. These transfers of funded advances into HMBS are accounted for as secured borrowings with the HMBS presented as participating interest financing included within other nonrecourse debt on the Company's consolidated balance sheets. Issue premiums and/or discounts are deferred as a component of the participating interest financing and amortized to interest expense over the life of the HMBS on an effective interest method. 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 include 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 servicer 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. 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. We did not record any impairment losses to our property and equipment during 2015, 2014 and 2013. 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 consists of securitization trusts established for a limited purpose. Generally, these SPEs are formed for the purpose of securitization transactions in which Nationstar transfers assets to an SPE, which then issues to investors various forms of debt obligations supported by those assets. In these securitization transactions, Nationstar typically receives cash and/or other interests in the SPE as proceeds for the transferred assets. Nationstar will typically retain the right to service the transferred receivables and to repurchase the transferred receivables from the SPE if the outstanding balance of the receivables falls to a level where the cost exceeds the benefits of servicing the transferred receivables. 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, 2015, 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 our 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 Note 3, Mortgage Servicing Rights and Related Liabilities, for additional information regarding advances and MSRs. Financings We transfer advances on loans serviced for others to SPEs in exchange for cash. Nationstar consolidates these SPEs because the transfers do not qualify for sales accounting treatment or 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 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. Nationstar has issued pools of HMBS to third-party investors collateralized by advances on the related HECM loans. These transactions are accounted for as secured borrowings within reverse mortgage interests and the related financing included in other nonrecourse debt in the consolidated financial statements of Nationstar. Occasionally, Nationstar will transfer reverse mortgage interests into private securitization trusts (Reverse Trusts). Nationstar evaluates these Reverse Trusts to determine whether they meet the definition of a Variable Interest Entity (VIE), and when the Reverse Trust meets the definition of a VIE and the Company determines that it is the primary beneficiary, Nationstar will include the assets and liabilities of the Reverse Trust in its consolidated financial statements, with the securitized reverse mortgage interests being retained on its balance sheet and recognizing the issued securities in other nonrecourse debt. The reverse mortgage interests are carried at amortized cost, less an allowance for probable loss. Derivative Financial Instruments Nationstar recognizes all derivatives on its consolidated balance sheets at fair value. On the date the Company enters into a derivative contract, it designates and documents each derivative contract as either a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge) or a derivative instrument not designated as a hedging instrument. To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. Nationstar assesses and documents quarterly the extent to which a derivative has been and is expected to continue to be effective in offsetting the changes in the fair value or the cash flows of the hedged item. To assess effectiveness, Nationstar uses statistical methods, such as regression analysis, as well as non-statistical methods including dollar-offset analysis. For a fair value hedge, Nationstar records changes in the fair value of the derivative and, to the extent that it is effective, changes in the fair value of the hedged asset or liability attributable to the hedged risk, in the same financial statement category as the hedged item on the face of the statement of operations and comprehensive income (loss). For a cash flow hedge, to the extent that it is effective, Nationstar records changes in the estimated fair value of the derivative in other comprehensive income. Nationstar subsequently reclassifies these changes in estimated fair value to net income in the same period, or periods, that the hedged transaction affects earnings and in the same financial statement category as the hedged item. For a derivative instrument not designated as a hedging instrument, the Company reports changes in the fair values in current period other income (expense), net, on our consolidated statements of operations and comprehensive income. The Company currently has no derivatives designated as a hedging instrument. 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 and subsequently evaluated for impairment. Nationstar tests goodwill for impairment at least annually, as of October 1st and more often if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its net carrying value. Nationstar has the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. Factors that the Company considers 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. 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 required to be evaluated at least annually for impairment. 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. Nationstar amortizes finite lived intangible assets acquired in a business combination over their estimated useful life. On an annual basis, the Company evaluates whether there has been a change in the estimated useful life or if certain impairment indicators exist. Loans Subject to Repurchase Rights from Ginnie Mae For certain forward loans that Nationstar sold to Ginnie Mae, Nationstar as the issuer has the unilateral right to repurchase without Ginnie Mae’s prior authorization any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Once Nationstar has the unilateral right to repurchase a delinquent loan, Nationstar has effectively regained control over the loan, and under GAAP, must re-recognize the loan on its consolidated balance sheets and establish a corresponding repurchase liability regardless of Nationstar’s intention to repurchase the loan. Interest Income Interest income is recognized using the interest method. Revenue accruals for individual loans are suspended and accrued amounts reversed when the mortgage loan becomes contractually delinquent for 90 days or more. Delinquency payment status is based on the most recently received payment from the borrower. The accrual is resumed when the individual mortgage loan becomes less than 90 days contractually delinquent. 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 (1) interest earned on custodial cash deposits associated with the mortgage loans serviced and (2) originations income, net of originations costs and other revenues derived from the origination of mortgage loans, which is recognized over the life of a mortgage loan held for investment or recognized when the related loan is sold to a third party purchaser. 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. Generally, the contract terms for these services are relatively short in duration, and Nationstar recognizes revenue as the services are performed either on a per unit or a fixed price basis. Service related revenues include contractually specified servicing fees, late charges, prepayment penalties and other ancillary revenues. Nationstar recognizes servicing and ancillary revenues as they are earned, which is generally upon collection of the payments from the borrower. In addition, Nationstar also 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 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 when Nationstar has completed all necessary steps and the loans have performed for the minimum required 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. Interest and servicing fees collected on reverse mortgage interests are included as a component of either interest income or service related revenues based on whether Nationstar acquired the related borrower draws from a predecessor servicer or funded borrower draws under its obligation to service the related Home Equity Conversion Mortgages (HECMs) subsequent to the acquisition of the rights to service these loans. 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 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 Loan Origination and Servicing Activity Nationstar provides for reserves in connection with loan origination and loan servicing activities which are charged to earnings. 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 a component of net gain on sale of loans held for sale. In connection with loan servicing activities, Nationstar |
Mortgage Servicing Rights (MSR)
Mortgage Servicing Rights (MSR) and Related Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights (MSR) and Related Liabilities | Mortgage Servicing Rights (MSR) and Related Liabilities MSRs and Related Liabilities For the year ended December 31, 2015 2014 MSRs - fair value $ 3,358,327 $ 2,949,739 MSRs - LOCOM 8,646 11,582 Mortgage servicing rights 3,366,973 2,961,321 Mortgage servicing liabilities 25,260 65,382 Excess spread financing - fair value 1,232,086 1,031,035 Mortgage servicing rights financing liability - fair value 68,696 49,430 MSR related liabilities (nonrecourse) $ 1,300,782 $ 1,080,465 Mortgage Servicing Rights - Fair Value MSRs - Fair Value consists of rights the Company owns and records as assets to service traditional residential mortgage loans for others either as a result of a purchase transaction or from the sale and securitization of loans originated. MSRs - Fair Value comprise both agency and non-agency loans. The Company segregates MSRs - Fair Value between credit sensitive and interest sensitive pools. Interest sensitive pools are primarily impacted by changes in forecasted interest rates, which in turn impact voluntary prepayment speeds. Credit sensitive pools are primarily impacted by borrower performance under specified repayment terms, which most directly impacts involuntary prepayments and delinquency rates. The Company assesses whether acquired portfolios are more credit sensitive or interest sensitive in nature on the date of acquisition. The Company considers numerous factors in making this assessment, including loan-to-value ratios, FICO scores, percentage of portfolio previously modified, portfolio seasoning and similar criteria. Once the determination for a pool is made, it is not changed over time. Interest sensitive portfolios consist of lower delinquency single-family conforming residential forward mortgage agency loans. Credit sensitive portfolios primarily consist of higher delinquency single-family non-conforming residential forward mortgage loans serviced for agency and non-agency investors. The following table provides a breakdown of the total credit and interest sensitive unpaid principal balances (UPBs) for Nationstar's forward owned MSRs. December 31, 2015 December 31, 2014 UPB Fair Value UPB Fair Value Credit sensitive $ 224,334,415 $ 2,016,617 $ 241,769,601 $ 1,919,290 Interest sensitive 121,341,842 1,341,710 91,843,044 1,030,449 Total $ 345,676,257 $ 3,358,327 $ 333,612,645 $ 2,949,739 The activity of MSRs carried at fair value is as follows for the dates indicated: For the year ended December 31, MSRs - Fair Value 2015 2014 Fair value at the beginning of the period $ 2,949,739 $ 2,488,283 Additions: Servicing resulting from transfers of financial assets 221,762 238,292 Purchases of servicing assets 729,984 470,543 Dispositions: Dispositions (46,168 ) — Changes in fair value: Due to changes in valuation inputs or assumptions used in the valuation model (58,150 ) 87,434 Other changes in fair value (438,840 ) (334,813 ) Fair value at the end of the period $ 3,358,327 $ 2,949,739 Servicing resulting from transfers of financial assets comprises the fair value of the newly originated MSRs at the time the loan is funded and securitized. During the third quarter of 2015, Nationstar disposed of MSRs with an unpaid principal balance of $4.6 billion and was retained as the subservicer for the sold assets. The Company evaluated the sale accounting requirements related to this transaction given the continued involvement as the subservicer. Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated: Credit Sensitive December 31, 2015 December 31, 2014 Discount rate 11.6 % 12.0 % Total prepayment speeds 16.5 % 18.6 % Expected weighted-average life 5.9 years 5.4 years Interest Sensitive December 31, 2015 December 31, 2014 Discount rate 9.1 % 9.1 % Total prepayment speeds 12.4 % 11.3 % Expected weighted-average life 6.1 years 6.5 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, 2015 and 2014: Discount Rate Total Prepayment Speeds 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change December 31, 2015 Mortgage servicing rights $ (123,115 ) $ (237,779 ) $ (132,277 ) $ (253,028 ) December 31, 2014 Mortgage servicing rights $ (110,900 ) $ (207,295 ) $ (112,603 ) $ (199,078 ) These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a 10% variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. Also, the changes in the fair value of Nationstar's excess spread financing liability partially offsets the change in the fair value of Nationstar's mortgage servicing rights. MSRs - Lower of Cost or Market (LOCOM) Nationstar owns the right to service certain reverse mortgage MSRs with an unpaid principal balance of $29.9 billion and $28.0 billion as of December 31, 2015 and December 31, 2014, respectively. Nationstar carries these mortgage servicing rights at the lower of cost or market and performs an impairment analysis at the end of each reporting period. In determining fair value for the purpose of impairment, Nationstar utilizes a variety of assumptions, with the primary assumptions being discount rates, prepayment speeds, home price index, collateral values and the expected weighted average life. At December 31, 2015 and December 31, 2014, no impairment was identified. The activity of MSRs carried at amortized cost is as follows for the date indicated: For the year ended December 31, 2015 2014 Assets Liabilities Assets Liabilities Activity of MSRs - LOCOM Balance at the beginning of the period $ 11,582 $ 65,382 $ 14,879 $ 82,521 Additions: Purchase/assumptions of servicing rights/obligations — — — — Deductions: Amortization/accretion (2,936 ) (40,122 ) (3,297 ) (17,139 ) Balance at end of the period $ 8,646 $ 25,260 $ 11,582 $ 65,382 Fair value at end of period $ 28,962 $ 9,137 $ 34,225 $ 55,388 For the years ended December 31, 2015 and 2014, the Company accreted $40.1 million and $17.1 million , respectively, of the mortgage servicing liability. The increase in amortization/accretion was primarily due to an increase in realized REO losses during 2015. Issuers of HECMs are responsible for repurchasing any loans out of the HMBS pool when the outstanding principal balance of the related HECM loan is equal to or greater than 98% of the lesser of the appraised value of the underlying property at origination or $625 thousand . Excess Spread Financing at Fair Value In order to finance the acquisition of certain MSRs on various pools of residential mortgage loans (the Portfolios), Nationstar entered into multiple sale and assignment agreements with certain entities formed by New Residential Investment Corp. (New Residential) in which New Residential and/or certain funds managed by Fortress Investment Group LLC (Fortress) own an interest. Nationstar, in transactions accounted for as financing arrangements, sold to such entities the right to receive a specified percentage of the excess cash flow generated from the Portfolios after receipt of a fixed base servicing fee per loan. Nationstar has elected fair value accounting for these financing agreements. Servicing fees associated with a traditional MSR can be segregated into a base servicing fee and an excess servicing fee. The base servicing fee, along with ancillary income, is meant to cover costs incurred to service the specified pool plus a reasonable profit margin. The remaining servicing fee is considered excess. Nationstar retains all the base servicing fee and ancillary revenues associated with servicing the Portfolios and a retained portion of the excess servicing fee. Nationstar continues to be the servicer of the Portfolios and provides all servicing and advancing functions. Contemporaneous with the above, Nationstar entered into refinanced loan agreements with New Residential. Should Nationstar refinance any loan in the Portfolios, subject to certain limitations, Nationstar will be required to transfer the new loan or a replacement loan of similar economic characteristics into the Portfolios. The new or replacement loan will be governed by the same terms set forth in the sale and assignment agreement described above which is the primary driver of the recapture rate assumption. The range of various assumptions used in Nationstar's valuation of excess spread financing were as follows: Excess Spread Financing Prepayment Speeds Average Life (Years) Discount Rate Recapture Rate For the year ended December 31, 2015 Low 7.4 % 4.2 years 8.5 % 6.8 % High 17.1 % 7.8 years 14.1 % 30.0 % Weighted-average 11.6 % 5.9 years 11.2 % 17.7 % For the year ended December 31, 2014 Low 6.2 % 4.0 years 8.5 % 6.7 % High 19.4 % 7.1 years 14.2 % 31.3 % Weighted-average 12.5 % 5.6 years 11.5 % 16.8 % The following table shows the hypothetical effect on the fair value of excess spread financing using certain unfavorable variations of the expected levels of key assumptions used in valuing these liabilities at the dates indicated: Discount Rate Total Prepayment Speeds 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change For the year ended December 31, 2015 Excess spread financing $ 41,806 $ 86,791 $ 36,530 $ 76,373 For the year ended December 31, 2014 Excess spread financing $ 36,632 $ 75,964 $ 33,618 $ 70,379 As the cash flow assumptions utilized in determining the fair value amounts in the excess spread financing are based on the related cash flow assumptions utilized in the financed MSRs, any fair value changes recognized in the MSRs would inherently have an inverse impact on the carrying amount in the related excess spread financing. For example, while an increase in discount rates would negatively impact the value of the Company's MSRs, it would reduce the carrying value of the associated excess spread financing liability. These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a 10% variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. Also, a positive change in the above assumptions would not necessarily correlate with the corresponding decrease in the net carrying amount of the excess spread financing. Mortgage Servicing Rights Financing From December 2013 through June 2014, Nationstar entered into agreements to sell a contractually specified base fee component of certain MSRs and servicer advances under specified terms to New Residential and certain unaffiliated third-parties. Nationstar continues to be the named servicer and, for accounting purposes, ownership of the mortgage servicing rights continues to reside with Nationstar. Nationstar continues to account for the MSRs on its consolidated balance sheets. Consequently, Nationstar records a MSRs financing liability associated with this transaction. See Note 22, Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC for additional information. Nationstar elected to measure the mortgage servicing rights financing liability at fair value with all changes in fair value recorded as a charge or credit to servicing related revenue in the consolidated statements of operations and comprehensive income. The weighted average assumptions used in the valuation of mortgage servicing rights financing liability were as follows: December 31, 2015 December 31, 2014 Advance financing rates 3.0 % 2.8 % Annual advance recovery rates 20.9 % 27.6 % The following table provides a breakout of revenue associated with servicing assets and liabilities. For the year ended December 31, Service Fee Income 2015 2014 2013 Contractually specified servicing fees $ 1,166,415 $ 1,123,820 $ 926,949 Incentive and modification income 106,778 128,993 107,839 Late fees 69,565 64,616 59,365 Other service-related income 128,402 128,176 120,854 Remittances to counterparties for contractual transfer of servicing assets (301,044 ) (319,902 ) (148,338 ) Mark-to-market (115,356 ) 56,168 246,101 Amortization (240,052 ) (158,721 ) (126,625 ) Total servicing fee income $ 814,708 $ 1,023,150 $ 1,186,145 |
Advances, Net
Advances, Net | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Advances, Net | Advances, Net December 31, 2015 December 31, 2014 Agency $ 1,396,176 $ 1,810,472 Non-agency 826,907 734,227 Total advances, net $ 2,223,083 $ 2,544,699 Servicing advances on agency securities represent a receivable from the respective agency and are recovered from cash collections in a securitization trust and/or a requested reimbursement from the agency. Servicing advances on non-agency securities are typically recovered first at a loan-level from proceeds of the mortgage loans for which the advance was made, and then if loan-level funds are determined to be ultimately insufficient, from cash collected from all borrowers in a securitization trust. Nationstar accretes purchase discounts related to specific advances into interest income as the related servicer advances are recovered. During the years ended December 31, 2015 , 2014 and 2013 the Company accreted $2.4 million , $12.2 million and $31.1 million , respectively, of the purchase discounts from recovered servicer advances. As of December 31, 2015 , there is $2.7 million that Nationstar expects to accrete into future interest income from remaining purchase discounts. As of December 31, 2015 and December 31, 2014 , Nationstar carried an allowance for uncollectible servicer advances of $ 29.9 million and $9.2 million , respectively. Advances balances are reflected net of these reserves. |
Reverse Mortgage Interests
Reverse Mortgage Interests | 12 Months Ended |
Dec. 31, 2015 | |
Reverse Mortgage Interest [Abstract] | |
Reverse Mortgage Interests | Reverse Mortgage Interests December 31, 2015 December 31, 2014 Participating interests $ 5,864,329 $ 1,363,225 Other interests securitized 682,137 341,268 Unsecuritized interests 987,990 752,801 Reserve for servicing losses (20,133 ) (4,225 ) Total reverse mortgage interests $ 7,514,323 $ 2,453,069 Participating interests consists of Nationstar HECM loans and related advances that have been securitized through the issuance of Home Equity Conversion Mortgage Backed Securities (HMBS) guaranteed by Ginnie Mae to third party security holders. Other interests securitized consists of reverse mortgage interests which have been transferred to private securitization trusts and are subject to nonrecourse debt. Nationstar evaluated these trusts and concluded that they meet the definition of a VIE and Nationstar is the primary beneficiary. Accordingly, these transactions are treated as secured borrowings and both the reverse mortgage interests and the related indebtedness are retained on Nationstar’s balance sheet. See Note 10, Indebtedness and Note 12, Securitizations and Financing for additional information. Unsecuritized interests consist primarily of the following: (1) $581.3 million related to repurchased Ginnie Mae HECMs; (2) $139.8 million related to HECM-related receivables; (3) $123.1 million related to claims accounts receivable; (4) $83.3 million related to funded borrower draws not yet securitized; (5) $31.6 million related to participating interests and advance receivable on an acquired HECM portfolio; (6) $24.1 million related to foreclosed assets; and (7) $4.8 million related to the HECM service fees receivable. Under the Ginnie Mae HMBS program, the Company is required to repurchase a HECM loan from the HMBS pool when the outstanding principal balance of the HECM loan is equal to or greater than 98% of the maximum claim amount. Nationstar routinely securitizes eligible reverse mortgage interests. These transactions are treated as secured borrowings with both the reverse mortgage interests and related indebtedness retained on Nationstar’s balance sheet. See Note 10, Indebtedness for additional information. During May 2015, the Company entered into an asset acquisition and paid $192.9 million 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. Reserves for servicing losses are reflected through the Company's provision for losses and consist of (1) Financial and (2) Operational losses related to servicing of HECM loans. Financial exposure comprises of cost of doing business related to servicing the HECM product and include statutory items specific to investor types. Whereas Operational losses are defined as un-reimbursable debenture interest curtailments imposed for missed foreclosure timelines. The Company assesses allowance for loss based on expected net realizable value of outstanding foreclosure claims and assessed prior servicer operational claims. |
Mortgage Loans Held for Sale an
Mortgage Loans Held for Sale and Investment | 12 Months Ended |
Dec. 31, 2015 | |
Mortgage Loans Held for Sale and Investment [Abstract] | |
Mortgage Loans Held for Sale and Investment | Mortgage Loans Held for Sale and Investment Mortgage loans held for sale Nationstar maintains a strategy of originating mortgage loan products primarily for the purpose of selling to government-sponsored enterprises (GSEs) or other third-party investors, primarily Ginnie Mae, in the secondary market. Nationstar primarily focuses on assisting customers currently in the Company's servicing portfolio with refinances of loans or new home purchases (referred to as recapture). Generally, all newly originated mortgage loans held for sale are securitized and transferred to GSEs or delivered to third-party purchasers shortly after origination on a servicing-retained basis. Mortgage loans held for sale consist of the following for the dates indicated: December 31, 2015 December 31, 2014 Mortgage loans held for sale – unpaid principal balance $ 1,373,607 $ 1,218,596 Mark-to-market adjustment (1) 56,084 59,335 Total mortgage loans held for sale $ 1,429,691 $ 1,277,931 (1) The mark-to-market adjustment is reflected in net gain on mortgage loans held for sale in our consolidated statements of operations and comprehensive income. Nationstar accrues interest income as earned. Nationstar places loans on non-accrual status after any portion of principal or interest has been delinquent for more than 90 days. When Nationstar places a loan on non-accrual status, Nationstar reverses the interest that had been accrued but not yet received. The total UPB of mortgage loans held for sale on non-accrual status was as follows for the dates indicated: December 31, 2015 December 31, 2014 Mortgage Loans Held for Sale - Unpaid Principal Balance UPB Fair Value UPB Fair Value Non-accrual $ 31,390 $ 28,996 $ 31,968 $ 26,022 The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was as follows for the dates indicated: Mortgage Loans Held for Sale - Unpaid Principal Balance December 31, 2015 December 31, 2014 Foreclosure $ 16,174 $ 17,493 A reconciliation of the changes in mortgage loans held for sale for the dates indicated is presented in the following table: For the year ended December 31, 2015 December 31, 2014 Mortgage loans held for sale – beginning balance $ 1,277,931 $ 2,603,380 Mortgage loans originated and purchased, net of fees 17,971,304 16,910,185 Repurchase of loans out of Ginnie Mae securitizations 1,827,202 3,648,120 Claims made to third parties (1) (60,780 ) (169,630 ) Proceeds on sale of and payments of mortgage loans held for sale (20,026,079 ) (22,105,165 ) Gain on sale of mortgage loans (2) 440,113 391,041 Mortgage loans held for sale – ending balance $ 1,429,691 $ 1,277,931 (1) This is comprised of claims made on certain government guaranteed mortgage loans upon foreclosure based on the adoption of ASU 2014-14. (2) The gain on sale of mortgage loans is reflected in net gain on mortgage loans held for sale on our consolidated statements of operations and comprehensive income. Nationstar has the right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. The majority of Ginnie Mae repurchased loans are repurchased solely with the intent to re-pool into new Ginnie Mae securitizations or to otherwise sell to third-party investors. Included in mortgage loans originated and purchased, net of fees are loans repurchased out of Ginnie Mae pools primarily in connection with loan modifications and loan resolution activity as part of Nationstar's contractual obligations as the servicer of the loans. Mortgage loans held for investment, net Mortgage loans held for investment, net as of the dates indicated include: December 31, 2015 December 31, 2014 Mortgage loans held for investment, net – unpaid principal balance $ 250,033 $ 276,820 Transfer discount: Accretable (14,631 ) (15,503 ) Non-accretable (58,203 ) (66,217 ) Allowance for loan losses (3,549 ) (3,531 ) Total mortgage loans held for investment, net $ 173,650 $ 191,569 The changes in accretable yield on loans transferred to mortgage loans held for investment, net were as follows: For the year ended Accretable Yield December 31, 2015 December 31, 2014 Balance at the beginning of the period $ 15,503 $ 17,362 Accretion (2,727 ) (2,955 ) Reclassifications from nonaccretable discount 1,855 1,096 Balance at the end of the period $ 14,631 $ 15,503 Nationstar may periodically modify the terms of any outstanding mortgage loans held for investment, net for loans that are either in default or in imminent default. Modifications often involve reduced payments by borrowers, modification of the original terms of the mortgage loans, forgiveness of debt and/or modified servicing advances. As a result of the volume of modification agreements entered into, the estimated average outstanding life in this pool of mortgage loans has 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 $1.9 million and $1.1 million of transfer discount from non-accretable yield for the years ended December 31, 2015 and December 31, 2014 , respectively. Furthermore, Nationstar considers the decrease in principal, interest, and other cash flows expected to be collected arising from the transferred loans as an impairment. Loan delinquency and Loan-to-Value Ratio (LTV) are common credit quality indicators that Nationstar monitors and utilizes in its evaluation of the adequacy of the allowance for loan losses, of which the primary indicator of credit quality is loan delinquency status. LTV refers to the ratio of the loan’s unpaid principal balance to the property’s collateral value. Loan delinquencies and unpaid principal balances are updated monthly based upon collection activity. Collateral values are updated from third party providers on a periodic basis. The collateral values used to derive LTVs are obtained at various dates, but the majority were within the last twenty-four months. For an event requiring a decision based at least in part on the collateral value, the Company takes its last known value provided by a third party and then adjusts the value based on the applicable home price index. The total UPB of mortgage loans held for investment for which the Company has begun formal foreclosure proceedings was as follows for the dates indicated: Mortgage Loans Held for Investment - Unpaid Principal Balance December 31, 2015 December 31, 2014 Foreclosure $ 41,406 $ 52,769 |
Property and Equipment, Net (No
Property and Equipment, Net (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 December 31, 2014 Range of Estimated Useful Life Furniture, fixtures and equipment $ 40,123 $ 39,561 3 - 5 years Capitalized software costs 102,187 72,673 5 years Long-term capital leases - computer equipment 49,782 48,451 5 years Leasehold improvements 13,043 16,638 3 - 5 years Software in development and other 29,700 21,174 234,835 198,497 Less: Accumulated depreciation and amortization (92,834 ) (69,721 ) Plus: Land 835 835 Total property and equipment, net $ 142,836 $ 129,611 Total depreciation and amortization on property and equipment was $46.1 million , $36.8 million and $26.6 million for the years ended December 31, 2015, 2014, and 2013, 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 five years. A majority of these lease agreements contain bargain purchase options. As of December 31, 2015 , future minimum payments for Nationstar's capital leases is presented in table below: Future Minimum Lease Payments 2016 $ 8,852 2017 2,503 2018 190 Thereafter — Total future lease payments 11,545 Less: Imputed interest (191 ) Net capital lease liability $ 11,354 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following: December 31, 2015 December 31, 2014 Receivables from trusts, agencies and prior servicers, net (1) $ 229,452 $ 386,166 Accrued revenues 180,036 154,436 Loans subject to repurchase right from Ginnie Mae 117,163 131,592 Goodwill 71,141 54,701 Intangible assets 49,869 19,622 Deferred financing costs 42,850 46,986 Prepaid expenses 19,800 9,837 Receivables from affiliates, net 7,510 4,713 Real estate owned (REO), net 3,595 1,625 Other 37,553 69,214 Total other assets $ 758,969 $ 878,892 (1) Net of reserves against receivables from agencies and prior servicers in the amounts of $98.8 million and $107.6 million as of December 31, 2015 and 2014, respectively. Receivables from trusts, agencies and prior services, net is primarily comprised of prior servicer receivables and custodial receivables acquired in asset acquisitions. Accrued revenues is primarily comprised of service fees earned but not received. For certain loans that Nationstar sold to Ginnie Mae, Nationstar as the issuer has the unilateral right to repurchase, without Ginnie Mae’s prior authorization, any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Once Nationstar has the unilateral right to repurchase a delinquent loan, Nationstar has effectively regained control over the loan and under GAAP, must re-recognize the loan on its consolidated balance sheets and establish a corresponding repurchase liability regardless of Nationstar’s intention to repurchase the loan. Nationstar’s re-recognized loans included in other assets and the corresponding liability in payables and accrued liabilities was $117.2 million at December 31, 2015 and $131.6 million at December 31, 2014 . Acquisitions In January 2015, Xome Holdings LLC, a wholly owned subsidiary of Nationstar, acquired Experience 1, Inc., the holding company for Title365, Xome Signing (previously known as Trusted Signing), and technology subsidiaries Xome Labs (previously known as X1 Labs) and Xome Analytics (previously known as X1 Analytics) (collectively, Title365), a title agency and technology services provider for title insurance and escrow services. The total consideration was $35.9 million in cash. Related to the acquisition, the Company recorded $20.3 million in goodwill and $19.1 million in intangible assets as well as $ 3.5 million of other net liabilities. The recognized intangible assets primarily relate to customer relationships, trade names and technology. In May 2015, Xome acquired Quantarium, LLC, a real estate analytics company that has developed industry-leading automated home valuation models utilizing advanced statistical methods and complex proprietary algorithms. Total consideration paid was $12.0 million . In June 2015, Xome acquired substantially all of the assets of GoPaperless Solutions, a leader in digital signature and document management Software-as-a-Service solutions. GoPaperless was integrated into the Xome platform during the fourth quarter. Total consideration paid was $2.0 million . Related to the acquisitions, the Company recorded an additional $3.4 million in goodwill and $10.4 million in intangible assets as well as $0.2 million of other net assets. Additionally, during 2015 the Company finalized the accounting for a 2014 acquisition which resulted in a $7.3 million reclassification between intangible assets and goodwill. Goodwill and Intangible Assets The following table presents changes in the carrying amount of goodwill for the periods indicated: December 31, 2015 December 31, 2014 Balance at beginning of period $ 54,701 $ 38,820 Goodwill acquired during the period 23,738 15,881 Goodwill reclassification during the period (7,298 ) — Balance at end of period $ 71,141 $ 54,701 The following tables present our intangible assets for the periods indicated: December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life in Years $ 26,600 $ (5,675 ) $ 20,925 7.7 Customer relationships 20,090 (3,318 ) 16,772 6.6 Purchased intangible software 12,590 (1,416 ) 11,174 5.9 Licenses 557 — 557 Indefinite Noncompete agreement 450 (17 ) 433 3.1 Trademark 8 — 8 Indefinite Total $ 60,295 $ (10,426 ) $ 49,869 6.9 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life in Years Trade name $ 18,595 $ (2,934 ) $ 15,661 8.4 Customer relationships 4,143 (747 ) 3,396 8.2 Licenses 557 — 557 Indefinite Trademark 8 — 8 Indefinite Total $ 23,303 $ (3,681 ) $ 19,622 8.4 Nationstar recognized $7.4 million , $2.3 million , and $1.4 million of amortization expense during the years ended December 31, 2015 , 2014 , and 2013 , respectively. The following table presents the estimated aggregate amortization expense for the periods indicated: For the year ending December 31, 2016 $ 7,337 2017 7,272 2018 7,272 2019 7,088 2020 6,843 Thereafter 13,492 Total future amortization expense $ 49,304 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives instruments utilized by Nationstar primarily include interest rate lock commitments (IRLCs), Loan Purchase Commitments (LPCs), Forward MBS trades, Eurodollar futures, interest rate swap agreements and interest rate caps. Nationstar enters into IRLCs with prospective borrowers. These commitments are carried at fair value, with any changes in fair value recorded in earnings as a component of net gain on mortgage loans held for sale. The estimated fair values of IRLCs are based on the fair value of the related mortgage loans which is based on observable market data and is recorded in derivative financial instruments within the consolidated balance sheets. Nationstar adjusts the outstanding IRLCs with prospective borrowers based on an expectation that it will be exercised and the loan will be funded. Nationstar actively manages the risk profiles of its IRLCs and mortgage loans held for sale on a daily basis. To manage the price risk associated with IRLCs, Nationstar enters into forward sales of MBS in an amount equal to the portion of the IRLC expected to close, assuming no change in mortgage interest rates. In addition, to manage the interest rate risk associated with mortgage loans held for sale, Nationstar enters into forward sale commitments to deliver mortgage loan inventory to investors. The estimated fair values of forward sales of MBS and forward sale commitments are based on exchange prices or the dealer market price and are recorded as a component of derivative financial instruments in the consolidated balance sheets. The changes in value on forward sales of MBS and forward sale commitments are recorded as a charge or credit to net gain on mortgage loans held for sale. Associated with the Company's derivatives is $3.9 million and $9.8 million in collateral deposits on derivative instruments recorded in payables and accrued liabilities and other assets on the Company's balance sheets as of December 31, 2015 and December 31, 2014 , respectively. The Company does not offset fair value amounts recognized for derivative instruments and the amounts collected and/or deposited on derivative instruments in its consolidated balance sheets. Nationstar occasionally enters into contracts with other mortgage lenders to purchase residential mortgage loans at a future date, which are referred to as LPCs. LPCs are accounted for as derivatives and recorded at fair value in derivative financial instruments on Nationstar's consolidated balance sheet. Changes in LPCs are recorded as a charge or credit to net gain on mortgage loans held for sale. In addition, Nationstar enters into Eurodollar futures contracts to replicate the economic hedging results achieved with interest rate swaps or offset the changes in value of its forward sales of certain agency securities. The Company has not designated its futures contracts as hedges for accounting purposes. Eurodollar futures are accounted for as derivatives and recorded at fair value in derivative financial instruments. Realized and unrealized changes in fair value are recorded as a charge or credit to net gain on mortgage loans held for sale. Periodically, Nationstar has entered into interest rate swap agreements to hedge the interest payment on the warehouse debt and securitization of its mortgage loans held for sale. These interest rate swap agreements generally require Nationstar to pay a fixed interest rate and receive a variable interest rate based on LIBOR. Interest rate swaps are accounted for as derivative financial instruments. Unless designated as an accounting hedge, Nationstar records gains and losses on interest rate swaps as a component of gain/(loss) on interest rate swaps and caps in Nationstar’s consolidated statements of 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 million and $400 million , respectively, to mitigate interest rate risk associated with servicing advance facilities. Expenses associated with interest rate caps are recorded as a gain/(loss) on interest rate swaps and caps in Nationstar's consolidated statements of operation and comprehensive income. During the fourth quarter of 2015, the Company entered into a $100 million interest rate cap. The interest rate caps expire during 2016. The Company has not elected hedge accounting related to to these agreements. The following tables provide the outstanding notional balances and fair values of outstanding positions for the dates indicated, and recorded gains/(losses) during the periods indicated: Expiration Dates Outstanding Notional Fair Value Recorded Gains / (Losses) For the year ended December 31, 2015 Assets Mortgage loans held for sale Loan sale commitments 2016 $ 175,570 $ 252 $ 256 Derivative financial instruments IRLCs 2016 2,767,927 89,138 1,236 Forward MBS trades 2016 1,665,894 6,123 5,839 LPCs 2016 387,891 3,872 1,873 Interest rate swaps and caps 2016-2017 845,876 506 (359 ) Eurodollar futures 2016-2021 176,000 60 59 Liabilities Derivative financial instruments IRLCs 2016 2,304 5 2 Forward MBS trades 2016 1,807,418 3,746 14,614 LPCs 2016 314,047 1,454 (1,406 ) Interest rate swaps and caps 2016-2017 12,543 542 (439 ) Eurodollar futures 2016-2021 95,000 76 (69 ) For the year ended December 31, 2014 Assets Mortgage loans held for sale Loan sale commitments 2015 $ 1,666 $ (4 ) $ (11 ) Derivative financial instruments IRLCs 2015 2,556,169 87,902 774 Forward MBS trades 2015 319,112 284 (31,982 ) LPCs 2015 287,089 1,999 1,206 Interest rate swaps and caps 2018 124,650 865 (1,673 ) Eurodollar futures 2015-2017 40,000 1 1 Liabilities Derivative financial instruments IRLCs 2015 865 7 2,691 Forward MBS trades 2015 2,958,700 18,360 (15,055 ) LPCs 2015 30,494 48 1,641 Interest rate swaps and caps 2015 - 2017 105,681 103 731 Eurodollar futures 2015-2017 80,000 7 (7 ) |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness Notes Payable December 31, 2015 December 31, 2014 Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged Advance Facilities MBS advance financing facility LIBOR+2.50% to 4.00% March 2016 Servicing advance receivables $ 130,000 $ 82,208 $ 89,221 $ 363,014 $ 418,126 Securities repurchase facility (2011) (1) LIBOR +3.50% 90 day revolving Nonrecourse debt - legacy assets — — — 34,613 55,603 Nationstar agency advance financing facility (1) LIBOR+1.20% to 3.75% December 2016 Servicing advance receivables 500,000 310,316 364,352 805,706 885,115 MBS advance financing facility (2012) LIBOR+5.00% April 2016 Servicing advance receivables 50,000 50,000 69,942 42,472 50,758 Nationstar mortgage advance receivable LIBOR+2.00% June 2016 Servicing advance receivables 500,000 335,408 394,100 419,170 471,243 MBS servicer advance facility (2014) LIBOR+3.50% August 2016 Servicing advance receivables 125,000 105,657 185,392 79,084 138,010 Nationstar servicer advance receivables trust 2014 - BC (3) LIBOR+1.50% to 3.00% November 2015 Servicing advance receivables — — — 106,115 121,030 Nationstar Agency Advance Receivables Trust (4) LIBOR + 2.00 % October 2017 Servicing advance receivables 1,400,000 762,534 822,504 — — Securities repurchase facility (2014) (6) LIBOR+1.50% to 2.00% November 2017 Securities — — — 51,609 74,525 $ 1,646,123 $ 1,925,511 $ 1,901,783 $ 2,214,410 December 31, 2015 December 31, 2014 Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged Warehouse Facilities $1.3 billion warehouse facility LIBOR+2.00% to 2.875% October 2016 Mortgage loans or MBS $ 1,300,000 $ 633,694 $ 677,775 $ 663,167 $ 697,257 $1.0 billion warehouse facility LIBOR+1.75% to 3.25% June 2016 Mortgage loans or MBS 1,000,000 544,951 621,526 307,294 320,285 $500 million warehouse facility LIBOR+1.75% to 2.75% September 2016 Mortgage loans or MBS 500,000 174,702 178,923 176,194 179,994 $500 million warehouse facility LIBOR+ 2.00% to 2.50% November 2016 Mortgage loans or MBS 500,000 257,479 274,497 183,290 192,990 $350 million warehouse facility LIBOR+2.20% to 4.50% March 2016 Mortgage loans or MBS 350,000 97,790 111,541 210,049 223,849 $200 million warehouse facility LIBOR+1.50% April 2016 Mortgage loans or MBS 200,000 8,531 9,052 — — $300 million Warehouse Facility LIBOR + 2.25% December 2016 Mortgage loans or MBS 300,000 23,014 27,769 — — $200 million Warehouse Facility LIBOR + 2.75% to 3.875% November 2016 Mortgage loans or MBS 200,000 45,106 50,083 — — $75 million warehouse facility (HCM) (5) LIBOR+ 2.25% to 2.875% October 2016 Mortgage loans or MBS 75,000 53,102 59,563 23,949 29,324 $100 million warehouse facility (HCM) LIBOR + 2.50% to 2.75% November 2016 Mortgage loans or MBS 100,000 55,157 60,581 8,679 9,044 $ 1,893,526 $ 2,071,310 $ 1,572,622 $ 1,652,743 Mortgage loans $ 1,542,663 $ 1,681,352 $ 1,196,956 $ 1,241,043 Reverse mortgage interests $ 350,863 $ 389,958 $ 375,666 $ 411,700 (1) This facility was refinanced as part of the $1.0 billion warehouse facility (2) This facility has both variable funding notes (VFN) and term notes. Nationstar issued $300.0 million in term notes to institutional investors of which $100.0 million remains outstanding. The notes have a weighted average interest rate of 2.1% and a weighted average term of 5 years . (3) During the fourth quarter of 2015, Nationstar elected to refinance the collateral in the Nationstar servicer advance receivables trust 2014-BC (NSART) into the Nationstar mortgage advance receivables trust (NMART) utilizing excess capacity. Terms were unchanged for NMART and NSART was closed as a result. (4) During the fourth quarter of 2015, Nationstar created a new variable interest entity called the Nationstar Advance Agency Receivables Trust, with $1.4 billion of borrowing capacity. (5) This facility is a sublimit of the $1.3 billion facility specific to Home Community Mortgage (HCM). (6) This facility was reclassed from advance to warehouse during 2015. Unsecured Senior Notes A summary of the balances of unsecured senior notes is presented below: December 31, 2015 December 31, 2014 $475 million face value, 6.500% interest rate payable semi-annually, due August 2018 $ 475,000 $ 475,000 $375 million face value, 9.625% interest rate payable semi-annually, due May 2019 362,750 378,555 $400 million face value, 7.875% interest rate payable semi-annually, due October 2020 400,448 400,541 $600 million face value, 6.500% interest rate payable semi-annually, due July 2021 596,955 605,135 $300 million face value, 6.500% interest rate payable semi-annually, due June 2022 213,541 300,000 Total $ 2,048,694 $ 2,159,231 Nationstar repurchased $108.9 million in principal amount of outstanding notes during the fourth quarter of 2015 at a discount resulting in a gain of $8.2 million . The repurchase price included the principal amount of the note, plus accrued and unpaid interest. The indentures for the unsecured senior notes contain various covenants and restrictions that limit the ability to incur additional indebtedness, pay dividends, make certain investments, create liens, consolidate, merge or sell substantially all of their assets or enter into certain transactions with affiliates. The indentures contain certain events of default, including (subject, in some cases, to customary cure periods and materiality thresholds) defaults based on (i) the failure to make payments under the indenture when due, (ii) breach of covenants, (iii) cross-defaults to certain other indebtedness, (iv) certain bankruptcy or insolvency events, (v) material judgments and (vi) invalidity of material guarantees. The indentures for the unsecured senior notes provide that Nationstar may redeem all or a portion of the notes prior to certain fixed dates by paying a make-whole premium plus accrued and unpaid interest and additional interest, if any, to the redemption dates. In addition, Nationstar may redeem all or a portion of the unsecured senior notes at any time on or after certain fixed dates at the applicable redemption prices set forth in the indentures plus accrued and unpaid interest and additional interest, if any, to the redemption dates. Additionally, the indentures provide that on or before certain fixed dates, Nationstar may redeem up to 35% of the aggregate principal amount of the unsecured senior notes with the net proceeds of certain equity offerings at 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, 2015 , the expected maturities of Nationstar's unsecured senior notes based on contractual maturities are as follows: Year Amount 2015 $ — 2016 — 2017 — 2018 475,000 2019 362,750 Thereafter 1,210,944 Total $ 2,048,694 Other Nonrecourse Debt A summary of the balances of other nonrecourse debt is presented below: December 31, 2015 December 31, 2014 Participating interest financing $ 5,947,407 $ 1,433,145 2014-1 HECM securitization 226,851 259,328 2015-1 HECM securitization 222,495 — 2015-2 HECM securitization 209,030 — Nonrecourse debt - legacy assets 64,815 75,838 Total $ 6,670,598 $ 1,768,311 Participating Interest Financing Participating interest financing represents the issuance of pools of HMBS to third-party security holders which are guaranteed by GSEs. Nationstar has accounted for the securitization of these advances in the related HECM loans as secured borrowings, retaining the initial reverse mortgage interests on its consolidated balance sheet, and recording the pooled HMBS as participating interest financing liabilities on the Company’s consolidated balance sheet. Monthly cash flows generated from the HECM loans are used to service the HMBS through securitization of advances on the HECM loans. The increase in participating interest financing and related reverse mortgage interests during the year ended December 31, 2015 is due to the Generation Mortgage asset acquisition. See Note 5, Reverse Mortgage Interests for additional information in connection with the Generation Mortgage asset acquisition. The interest rate is based on the underlying HMBS rate with a range of 0.5% to 7.0% . HECM Securitizations From time to time, Nationstar securitizes its interests in reverse mortgages. The transactions provide investors with the ability to invest in a pool of non-performing home equity conversion reverse mortgage loans that are covered by Federal Housing Administration (FHA) insurance and secured by one to four-family residential properties and a pool of REO properties acquired through foreclosure or grant of a deed in lieu of foreclosure in connection with reverse mortgage loans that are covered by FHA insurance. The transactions provide Nationstar with access to liquidity for the acquired non-performing HECM loan portfolio, ongoing servicing fees, and potential residual returns. The transactions are structured as secured borrowings with the reverse mortgage loans included in the consolidated financial statements as reverse mortgage interests and the related financing included in other nonrecourse debt. During December 2014, Nationstar Mortgage LLC completed the securitization of approximately $343.6 million in Nationstar HECM Loan Trust 2014-1 Mortgage Backed Securities. The notes were issued under two separate classes, comprised of Class A Notes and Class M Notes. As part of the securitizations, Nationstar retained a portion of the offered Class A notes of approximately $70.4 million as well as the Class M Notes with an outstanding note balance of $36.2 million . A portion of the notes retained by Nationstar represent subordinated beneficial interests. During the first quarter 2015, the Company sold the remaining retained portions of the Class A and Class M notes for total proceeds of $73.1 million . During June 2015, Nationstar Mortgage LLC completed the securitization of approximately $269.4 million in Nationstar HECM Loan Trust 2015-1 Mortgage Backed Securities. The notes were issued under two separate classes, comprised of Class A Notes and Class M Notes. This transaction was accounted for as a secured borrowing. The notes have a final maturity date of May 2018. No portion of the notes were retained by the Company as of December 31, 2015. During November 2015, Nationstar Mortgage LLC completed the securitization of approximately $217.3 million in Nationstar HECM Loan Trust 2015-2 Mortgage Backed Securities. The notes were issued under three separate classes, comprised of Class A Notes, Class M1 Notes and Class M2 Notes. This transaction was accounted for as a secured borrowing. The notes have a final maturity date of November 2025. No portion of the notes were retained by the Company as of December 31, 2015. Nonrecourse Debt – Legacy Assets During November 2009, Nationstar completed the securitization of approximately $222.0 million of Asset Backed Securities (ABS), which was accounted for as a secured borrowing. This structure resulted in Nationstar carrying the securitized mortgage loans on it’s consolidated balance sheet and recognizing the asset-backed certificates acquired by third parties as nonrecourse debt of $64.8 million at December 31, 2015 and $75.8 million at December 31, 2014. The principal and interest on these notes are paid using the cash flows from the underlying mortgage loans, which serve as collateral for the debt. The interest rate paid on the outstanding securities is 7.50% , which is subject to an available funds cap. The total outstanding principal balance on the underlying mortgage loans serving as collateral for the debt was approximately $242.4 million and $268.2 million at December 31, 2015 and December 31, 2014, respectively. The timing of the principal payments on this nonrecourse debt is dependent on the payments received on the underlying mortgage loans. The unpaid principal balance on the outstanding loans was $75.4 million and $88.2 million at December 31, 2015 and December 31, 2014, respectively. Financial Covenants The Company's borrowing arrangements and credit facilities contain various financial covenants which primarily relate to required tangible net worth amounts, liquidity reserves, leverage requirements, and profitability requirements. At December 31, 2015, Nationstar was in compliance with its financial covenants. Nationstar is required to maintain a minimum tangible net worth of at least $681.7 million as of each quarter-end related to its outstanding Master Repurchase Agreements on its outstanding repurchase facilities. At December 31, 2015, Nationstar was in compliance with these minimum tangible net worth requirements. |
Payables and Accrued Liabilitie
Payables and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Payables and Accrued Liabilities | Payables and Accrued Liabilities Payables and accrued liabilities consist of the following: December 31, 2015 December 31, 2014 Payables to servicing and subservicing investors $ 483,535 $ 329,306 Loans subject to repurchase from Ginnie Mae 117,163 131,592 Accrued bonus and payroll 96,381 85,366 Payables to GSEs 87,748 67,311 Taxes 81,102 96,237 Payable to insurance carriers and insurance cancellation reserves 69,936 163,381 Accrued interest 61,071 59,708 Repurchase reserves 26,404 29,165 Payables to securitization trusts 24,910 99,137 MSR purchases payable including advances 21,851 45,697 Other 226,286 215,178 Total payables and accrued liabilities $ 1,296,387 $ 1,322,078 Payable to servicing and subservicing investors, Payables to GSEs, and Payables to securitization trusts Payables to servicing and subservicing investors represents amounts due to investors in connection with loans serviced and that are paid from collections of the underlying loans, insurance proceeds or at time of property disposal. Payable to insurance carriers and insurance cancellation reserves Payable to insurance carriers and insurance cancellation reserves consist of insurance premiums received from borrower payments awaiting disbursement to the insurance carrier and/or amounts due to third party investors on liquidated loans. Loans subject to repurchase from Ginnie Mae See Note 8, Other Assets for a description of assets and liabilities related to loans subject to repurchase from Ginnie Mae. Repurchase reserves The activity of the outstanding repurchase reserves were as follows: December 31, 2015 2014 Repurchase reserves, beginning of period $ 29,165 $ 40,695 Provision 9,781 12,556 Charge-offs and release (12,542 ) (24,086 ) Repurchase reserves, end of period $ 26,404 $ 29,165 The provision for repurchases represents estimate of losses to be incurred on the repurchase or indemnification of purchasers of 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 provision for estimated repurchases, loss indemnification and premium recapture on loans sold, which is charged to net gain on mortgage loans held for sale. In 2012, a selling representation and warranty framework was introduced by the GSEs that helps address concerns of loan sellers with respect to loan repurchase risk. Under the framework, which was enhanced in 2014, 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. After evaluating the enhanced framework, the composition of loans originated, quality control standards, historical repurchase requests and the passage of time, Nationstar reduced the repurchase reserve by $2.8 million during 2015 to reflect loans where the repurchase provision expired and to reflect the best estimate of probable future requests. As of December 31, 2015 , the Company believes the analysis used to evaluate future expected repurchase exposure is appropriate and the period-end repurchase reserve balance is adequate. |
Securitizations and Financings
Securitizations and Financings | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities and Securitizations [Abstract] | |
Securitizations and Financings | Securitizations and Financings Variable Interest Entities (VIEs) In the normal course of business, Nationstar enters into various types of on- and off-balance sheet transactions with special purpose entities (SPEs) determined to be a VIE, which primarily consists of securitization trusts established for a limited purpose. Generally, these SPEs are formed for the purpose of securitization transactions in which Nationstar transfers assets to an SPE, which then issues to investors various forms of debt obligations supported by those assets. In these securitization transactions, Nationstar typically receives cash and/or other interests in the SPE as proceeds for the transferred assets. Nationstar will typically retain the right to service the transferred receivables and to repurchase the transferred receivables from the SPE if the outstanding balance of the receivables falls to a level where the cost exceeds the benefits of servicing the transferred receivables. All debt obligations issued from the VIEs is non-recourse to Nationstar. Nationstar evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Company is the primary beneficiary and should consolidate the entity based on the variable interests it held both at inception and when there is a change in circumstances that require a reconsideration. Nationstar has determined that the SPEs created in connection with the (i) Nationstar Home Equity Loan Trust 2009-A, (ii) Nationstar Mortgage Advance Receivables Trust, (iii) Nationstar Agency Advance Financing Trust (NAAFT), (iv) Nationstar Advance Agency Receivables Trust (NAART) should be consolidated as Nationstar is the primary beneficiary. Also, Nationstar consolidated three reverse mortgage SPEs which are (v) Nationstar HECM Loan Trust 2014-1, (vi) Nationstar HECM Loan Trust 2015-1 and (vii) Nationstar HECM Loan Trust 2015-2 and it is the primary beneficiary. During the third quarter of 2015, the NAAFT variable financing capacity was reduced from $1.2 billion to $900 million to lower the cost of borrowing and diversify the lending base. A summary of the assets and liabilities of Nationstar’s transactions with VIEs included in the Company’s consolidated financial statements is presented below for the periods indicated: December 31, 2015 December 31, 2014 Transfers Reverse Secured Borrowings Transfers Reverse Secured Borrowings Assets Restricted cash $ 94,361 $ 36,089 $ 90,068 $ 15,578 Reverse mortgage interests — 6,546,466 — 1,704,492 Advances 1,580,966 — 1,477,388 — Mortgage loans held for investment, net 172,810 — 189,456 — Derivative financial instruments 7 — 865 — Other assets 4,538 — 2,678 — Total assets $ 1,852,682 $ 6,582,555 $ 1,760,455 $ 1,720,070 Liabilities Advance facilities $ 1,408,258 $ — $ 1,330,991 $ — Payables and accrued liabilities 2,116 665 1,596 186 Nonrecourse debt–legacy assets 64,815 — 75,838 — 2014-1 HECM securitization — 226,851 — 259,328 2015-1 HECM securitization — 222,495 — — 2015-2 HECM securitization — 209,030 — — Participating interest financing — 5,947,407 — 1,433,145 Total liabilities $ 1,475,189 $ 6,606,448 $ 1,408,425 $ 1,692,659 Securitizations Treated as Sales When Nationstar sells mortgage loans in securitization transactions that are structured as sales, it may retain one or more bond classes and servicing rights in the securitization. Gains and losses on the assets transferred are recognized based on the carrying amount of the financial assets involved in the transfer, allocated between the assets transferred and the retained interests based on their relative fair value at the date of transfer, other than MSRs. Retained MSRs are recorded at their fair value on the transfer date. The three reverse HECM securitizations as well as the participating interest financing represent secured borrowings. Details of the securitization structured as a sale are shown below for the periods indicated: Sale Date Net Bond Proceeds Carrying Value of Loans Sold Gain Recognized Nationstar Mortgage-Backed Notes, Series 2013-A 2013 $ 164,297 $ 158,204 $ 6,093 For the periods presented, Nationstar only sold mortgage loans in securitization transactions that were structured as sales for the year ended December 31, 2013. The gain on sale of the 2013 securitization was included in the Originations segment within the net gain on mortgage loans held for sale as revenue. 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, 2015 December 31, 2014 Total collateral balances $ 3,113,784 $ 3,258,472 Total certificate balances 2,810,903 3,297,256 Nationstar has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of December 31, 2015, 2014, or 2013, 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, 2015 December 31, 2014 Unconsolidated securitization trusts $ 727,879 $ 861,419 For the year ended December 31, Credit Losses 2015 2014 2013 Unconsolidated securitization trusts $ 215,983 $ 275,726 $ 251,076 Certain cash flows received from securitization trusts related to the transfer of mortgage loans accounted for as sales for the dates indicated were as follows: For the year ended December 31, 2015 2014 2013 Servicing Fees Loan Servicing Fees Loan Servicing Fees Loan Unconsolidated securitization trusts $ 24,233 $ — $ 28,284 $ — $ 29,151 $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense (benefit) on continuing operations were as follows: For the year ended December 31, 2015 2014 2013 Current Federal $ 59,218 $ 46,381 $ 4,636 State 3,534 7,608 (1,059 ) 62,752 53,989 3,577 Deferred Federal (50,426 ) 6,360 114,466 State (1,314 ) 4,511 11,157 (51,740 ) 10,871 125,623 Total $ 11,012 $ 64,860 $ 129,200 Income tax expense differs from the amounts computed by applying the U.S. federal corporate tax rate of 35% as follows for the period indicated: For the year ended December 31, 2015 2014 2013 Tax Expense at Federal Statutory Rate $ 18,961 35.0 % $ 100,058 35.0 % $ 121,186 35.0 % Effect of: State taxes, net of federal benefit (208 ) (0.4 )% 8,330 2.9 % 5,465 1.6 % Noncontrolling interest (1,488 ) (2.7 )% (126 ) — % 42 — % Increase/(decrease) of valuation allowance (3,273 ) (6.1 )% (40,275 ) (14.1 )% 1,099 0.3 % Deferred adjustments (5,484 ) (10.1 )% (1,477 ) (0.5 )% 1,046 0.3 % Current payable adjustments 2,209 4.0 % (2,058 ) (0.8 )% — — % Other, net 295 0.6 % 408 0.2 % 362 0.1 % Total income tax expense $ 11,012 20.3 % $ 64,860 22.7 % $ 129,200 37.3 % The primary reasons for the significant variation in the expected tax rate and the actual tax rate are the partial release of the deferred tax valuation allowance that was previously recorded against the Company’s loss carryforwards, the elimination of the book income of the KB Homes joint venture, and adjustments resulting from an analysis of the deferred taxes. As a result of the analysis performed by management, a deferred true-up of $5.5 million tax benefit was recorded. In addition , a current payable true-up adjustment of $2.2 million tax expense was recorded. The Company released a federal valuation allowance in the amount of $3.8 million in 2015 and a federal valuation allowance in the amount of $44.2 million in 2014. Excluding the release of the valuation allowance, the Company’s effective tax rate would have been 26.4% for the year ended December 31, 2015 and 36.8% for the year ended December 31, 2014. Deferred income tax amounts at December 31, 2015 and 2014, 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. At the date of the Company's initial public offering, the Company was in a three year cumulative loss and the Company concluded it was not more likely than not that the net operating loss ("NOL") would be used. Accordingly, a valuation allowance was recorded against deferred tax assets. The Company has generated significant pre-tax income over the past three years, as well as increasing the size of its servicing portfolio over that same time period. As a result, $44.2 million of the valuation allowance recorded against deferred tax assets was released in the year ended December 31, 2014. In August 2015, the Company amended its 2012 and 2013 federal tax returns to characterize $16.5 million in losses arising from loan modifications and REO liquidation in its Legacy portfolio (primarily consisting of subprime mortgage loans originated in the latter portion of 2006 and 2007 or acquired from Nationstar's predecessor) as ordinary losses. Approximately $5.0 million of these losses are limited by IRC Section 382 as a result of the Company's reorganization in March 2012. The remaining post reorganization NOL of $11.5 million may be offset against the Company's ordinary income without limitation. As a result, the Company has released $4.0 million of the valuation allowance recorded against the deferred tax asset that was previously characterized as a capital loss carryforward. The Company has not released the valuation allowance recorded against the remaining $5.0 million pre-reorganization loss because it is expected to expire unutilized. An additional $0.5 million of net operating losses related to the 2009 amended federal tax return increased the valuation allowance by $0.2 million , since these losses are also limited by IRC Section 382. Accordingly, a federal valuation allowance of $2.2 million remains associated with these NOL carryforwards as of December 31, 2015. In January 2015, the Company completed the acquisition of Experience 1, Inc. As a result of the acquisition, the Company recorded an additional $5.0 million of deferred tax liabilities as part of the purchase price allocation for deferred taxes. These deferred tax liabilities are the primary cause of the Company’s change from a net deferred tax asset in 2014 related to goodwill and intangible assets to a net deferred tax liability in 2015. The Company also recorded an additional valuation allowance of $0.8 million against some of the acquired federal and state NOL carryforwards due to significant uncertainty with respect to the Company’s ability to utilize these assets in future periods. Temporary differences and carryforwards that give rise to deferred tax assets and liabilities are comprised of the following: For the year ended December 31, 2015 2014 Deferred Tax Assets Effect of: Loss carryforwards (federal, state & capital) $ 63,957 $ 67,799 Loss reserves 56,587 41,467 Reverse mortgage premiums 25,903 26,227 Rent expense 6,218 2,138 Restricted share based compensation 8,848 7,806 Accruals 14,603 3,354 Goodwill and intangible assets — 994 Other, net 9,066 9,201 Total deferred tax assets 185,182 158,986 Deferred Tax Liabilities MSR amortization and mark-to-market, net (197,763 ) (228,987 ) Depreciation and amortization, net (38,477 ) (32,564 ) Prepaid assets (2,549 ) (889 ) Goodwill and intangible assets (5,565 ) — Total deferred tax liabilities (244,354 ) (262,440 ) Valuation allowance (3,907 ) (6,391 ) Net deferred tax liability $ (63,079 ) $ (109,845 ) The Company has federal NOL carryforwards (pre-tax) of approximately $175.4 million and $164.6 million at December 31, 2015 and 2014 , respectively. It is expected that the federal NOL carryforwards will begin to expire in 2027, if unused. The Company also has immaterial state NOL carryforwards that will begin to expire in 2015, if unused. The Company has recorded a valuation allowance against the NOL carryforwards that are expected to expire. The amount of the state NOLs varies by state based on whether the NOL is derived from the pre-apportioned federal NOL or calculated based on the apportioned federal NOL. The federal NOL is limited under Sections 382 and 383 of the Internal Revenue Code as a result of a reorganization that occurred in advance of the Company's initial public offering. The annual limitation is approximately $11 million . The Company expects that future income will be sufficient to utilize all net operating losses generated subsequent to the initial public offering in 2012. The Company files income tax returns in the U.S. federal jurisdiction and numerous U.S. state jurisdictions. As of December 31, 2015, the Company is no longer subject to U.S. federal income tax examinations for tax years prior to 2012. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a three-tiered fair value hierarchy has been established based on the level of observable inputs used in the measurement of fair value (e.g., Level 1 representing quoted prices for identical assets or liabilities in an active market; Level 2 representing values using observable inputs other than quoted prices included within Level 1; and Level 3 representing estimated values based on significant unobservable inputs). The following describes the methods and assumptions used by Nationstar in estimating fair values: Cash and Cash Equivalents, Restricted Cash (Level 1) – The carrying amount reported in the consolidated balance sheets approximates fair value. Mortgage Loans Held for Sale (Level 2) – Nationstar originates mortgage loans in the U.S. that it intends to sell to Fannie Mae, Freddie Mac, and Ginnie Mae (collectively, the Agencies). Additionally, Nationstar holds mortgage loans that it intends to sell into the secondary markets via whole loan sales or securitizations. Nationstar measures newly originated prime residential mortgage loans held for sale at fair value. Mortgage loans held for sale are typically pooled together and sold into certain exit markets, depending upon underlying attributes of the loan, such as agency eligibility, product type, interest rate, and credit quality. Mortgage loans held for sale are valued on a recurring basis using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. As these prices are derived from market observable inputs, Nationstar classifies these valuations as Level 2 in the fair value disclosures. The Company may acquire mortgage loans held for sale from various securitization trusts for which it acts as servicer through the exercise of various clean-up call options as permitted through the respective pooling and servicing agreements. The Company has elected to account for these loans at the lower of cost or market. Nationstar classifies these valuations as Level 2 in the fair value disclosures. Nationstar may also purchase loans out of a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Nationstar has elected to carry these loans at fair value. 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, net (Level 3) - We value advances at their net realizable value, which generally approximates fair value, because advances have no stated maturity, are generally realized within a relatively short period of time and do not bear interest. See Note 4, Advances, Net for more information. Reverse Mortgage Interests (Level 3) – Nationstar’s reverse mortgage interests consist of fees paid to taxing authorities for borrowers' unpaid taxes and insurance, and payments made to borrowers for line of credit draws on reverse mortgages. These interests are carried at lower of cost or market in the financial statements. Nationstar estimates the fair value using a market approach by utilizing the fair value of securities backed by similar reverse mortgage loans, adjusted for certain factors. As the adjustments to factors require the use of judgment, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 5, Reverse Mortgage Interests for more information. Derivative Financial Instruments (Level 2) – Nationstar enters into a variety of derivative financial instruments as part of its hedging strategy and measures these instruments at fair value on a recurring basis in the balance sheet. The majority of these derivatives are exchange-traded or traded within highly active dealer markets. In order to determine the fair value of these instruments, Nationstar utilizes the exchange price or dealer market price for the particular derivative contract; therefore, these contracts are classified as Level 2. In addition, Nationstar enters into IRLCs and LPCs with prospective borrowers and other loan originators. These commitments are carried at fair value based on the fair value of 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 prices are derived from a combination of internally developed valuation models based on the value of the underlying MSRs, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 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 estimated carrying amount and fair value of Nationstar’s financial instruments and other assets and liabilities measured at fair value on a recurring basis is as follows for the dates indicated: December 31, 2015 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,429,691 $ — $ 1,429,691 $ — Mortgage servicing rights (1) 3,358,327 — — 3,358,327 Derivative financial instruments: IRLCs 89,138 — 89,138 — Forward MBS trades 6,123 — 6,123 — LPCs 3,872 — 3,872 — Interest rate swaps and caps 506 — 506 — Eurodollar futures 60 — 60 — Total assets $ 4,887,717 $ — $ 1,529,390 $ 3,358,327 Liabilities Derivative financial instruments IRLCs $ 5 $ — $ 5 $ — Interest rate swaps and caps 542 — 542 — Forward MBS trades 3,746 — 3,746 — LPCs 1,454 — 1,454 — Eurodollar futures 76 — 76 — Mortgage servicing rights financing 68,696 — — 68,696 Excess spread financing 1,232,086 — — 1,232,086 Total liabilities $ 1,306,605 $ — $ 5,823 $ 1,300,782 December 31, 2014 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,277,931 $ — $ 1,277,931 $ — Mortgage servicing rights (1) 2,949,739 — — 2,949,739 Other assets: IRLCs 87,902 — 87,902 — Forward MBS trades 284 — 284 — LPCs 1,999 — 1,999 — Interest rate swaps and caps 865 — 865 — Eurodollar futures 1 — 1 — Total assets $ 4,318,721 $ — $ 1,368,982 $ 2,949,739 Liabilities Derivative financial instruments IRLCs $ 7 $ — $ 7 $ — Interest rate swaps and caps 103 — 103 — Forward MBS trades 18,360 — 18,360 — LPCs 48 — 48 — Eurodollar futures 7 — 7 — Mortgage servicing rights financing 49,430 — — 49,430 Excess spread financing 1,031,035 — — 1,031,035 Total liabilities $ 1,098,990 $ — $ 18,525 $ 1,080,465 (1) Based on the nature and risks of these assets and liabilities, the Company has determined that presenting them as a single class is appropriate. The table below presents a reconciliation for all of Nationstar’s Level 3 assets and liabilities measured at fair value on a recurring basis for the dates indicated: Assets Liabilities For the year ended December 31, 2015 Mortgage servicing rights Excess spread financing Mortgage servicing rights financing Beginning balance $ 2,949,739 $ 1,031,035 $ 49,430 Transfers into Level 3 — — — Transfers out of Level 3 — — — Total gains or losses Included in earnings (496,990 ) 25,631 19,266 Included in other comprehensive income — — — Purchases, issuances, sales and settlements Purchases 729,984 — — Issuances 221,762 385,637 — Sales — — — Settlements — (210,217 ) — Dispositions (46,168 ) — — Ending balance $ 3,358,327 $ 1,232,086 $ 68,696 Assets Liabilities For the year ended December 31, 2014 Mortgage servicing rights Excess spread financing Mortgage servicing rights financing Beginning balance $ 2,488,283 $ 986,410 $ 29,874 Transfers into Level 3 — — — Transfers out of Level 3 — — — Total gains or losses Included in earnings (247,379 ) 57,554 (33,279 ) Included in other comprehensive income — — — Purchases, issuances, sales and settlements Purchases 470,543 — — Issuances 238,292 171,317 52,835 Sales — — — Settlements — (184,246 ) — Ending balance $ 2,949,739 $ 1,031,035 $ 49,430 The table below presents a summary of the estimated carrying amount and fair value of Nationstar’s financial instruments. December 31, 2015 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 613,241 $ 613,241 $ — $ — Restricted cash 332,105 332,105 — — Mortgage loans held for sale 1,429,691 — 1,429,691 — Mortgage loans held for investment, net 173,650 — — 174,147 Advances, net 2,223,083 — — 2,223,083 Reverse mortgage interests 7,514,323 — — 7,705,475 Derivative financial instruments 99,199 — 99,199 — Financial liabilities Unsecured senior notes 2,048,694 1,911,777 — — Advance facilities 1,646,123 — 1,646,123 — Warehouse facilities 1,893,526 — 1,893,526 — Derivative financial instruments 5,323 — 5,323 — Excess spread financing 1,232,086 — — 1,232,086 Mortgage servicing rights financing liability 68,696 — — 68,696 Nonrecourse debt - legacy assets 64,815 — — 74,264 Participating interest financing 5,947,407 — 6,091,285 — 2014-1 HECM securitization 226,851 — — 298,048 2015-1 HECM securitization 222,495 — — 275,223 2015-2 HECM securitization 209,030 — — 249,507 December 31, 2014 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 299,002 $ 299,002 $ — $ — Restricted cash 285,530 285,530 — — Mortgage loans held for sale 1,277,931 — 1,277,931 — Mortgage loans held for investment, net 191,569 — — 192,865 Advances, net 2,544,699 2,544,699 Reverse mortgage interests 2,453,069 — — 2,502,157 Derivative financial instruments 91,051 — 91,051 — Financial liabilities Unsecured senior notes 2,159,231 2,057,038 — — Advance facilities 1,901,783 — 1,901,783 — Warehouse facilities 1,572,622 — 1,572,622 — Derivative financial instruments 18,525 — 18,525 — Excess spread financing 1,031,035 — — 1,031,035 Mortgage servicing rights financing liability 49,430 — — 49,430 Nonrecourse debt - legacy assets 75,838 — — 86,570 Participating interest financing 1,433,145 — 1,423,291 — 2014-1 HECM securitization 259,328 — — 259,328 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Employee Benefits Nationstar has a defined contribution plan (401(k) plan) that covers all full-time employees. Nationstar matches 100% of participant contributions, up to 2% and 50% of the next 4% of each participant’s total eligible annual base compensation. Matching contributions totaled approximately $12.4 million , $11.5 million , and $11.1 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | Share-Based Compensation and Equity Nationstar adopted the 2012 Incentive Compensation Plan (2012 Plan), that offers equity-based awards to certain key employees of Nationstar, consultants, and non-employee directors. The following table summarizes information about the equity based awards under the 2012 Plan for the periods indicated: Equity based awards Shares Remaining Contractual Term (in years) (1) Restricted stock outstanding at December 31, 2012 1,293 Grants issued in 2013 307 $37.88 0.2 Forfeited (56) $20.46 Vested (310) Shares surrendered to treasury to pay taxes (168) Restricted stock outstanding at December 31, 2013 1,066 Grants issued in 2014 1,042 $31.65 1.6 Forfeited (151) $28.01 Vested (354) Shares surrendered to treasury to pay taxes (174) Restricted stock outstanding at December 31, 2014 1,429 Grants issued in 2015 1,446 $23.03 2.3 Forfeited (336) $27.58 Vested (456) Shares surrendered to treasury to pay taxes (246) Restricted stock outstanding at December 31, 2015 1,837 Restricted stock unvested and expected to vest 1,563 Restricted stock vested and payable at December 31, 2015 — (1) Remaining contractual term is as of December 31, 2015. The following table summarizes the vesting schedule of equity-based restricted stock grants: 2016 2017 2018 2019 Restricted stock expected to vest 668 488 332 75 Nationstar recognizes share-based compensation using an accelerated method. Total share-based compensation expense for service based equity awards, net of forfeitures, for both the 2012 Plan and the predecessor plan recognized for the years ended December 31, 2015, 2014, and 2013 was $19.5 million , $18.6 million , and $10.6 million , respectively. Nationstar expects to recognize $15.0 million of compensation expense in 2016, $7.0 million in 2017, and $2.2 million in 2018, and $0.4 million in 2019 for unvested equity based awards related to the 2012 Plan. The weighted average remaining term for unvested shares is 1.3 years and the weighted average vested share price was $21.40 . During 2015, 2014, and 2013, Nationstar net settled shares surrendered in connection with minimum statutory requirements. Nationstar paid $6.2 million , $5.5 million and $6.9 million during 2015, 2014 and 2013, respectively, accounted for as an increase of Treasury Shares in the statement of financial position. During 2015 , excluding forfeitures, certain employees of Xome were granted 267 thousand stock appreciation rights (SARs) which can be settled in cash or units of Xome Holdings LLC (at the election of Xome). The SARs generally vest over three years and have a ten year term. The SARs become exercisable upon a liquidity event at Xome which includes a change in control or an initial public offering of Xome. The Company did not recognize expense related to the share-based awards during 2015 . Equity During March 2015, Nationstar completed an equity offering of 17.5 million shares for a total of $497.8 million in cash proceeds. Nationatar used and intends to continue to use the net proceeds from this offering for general corporate purposes. On December 17, 2015, Nationstar announced that its Board of Director's authorized the repurchase of up to $150.0 million of the registrant's outstanding common stock through December 16, 2016. As of December 31, 2015, 837 thousand shares (comprised of 504 thousand shares that settled during 2015 and 333 thousand share repurchases initiated during 2015 but settled during 2016) have been repurchased under this plan. On February 9, 2016, Nationstar’s Board of Directors authorized a $100.0 million increase to the original repurchase authorization for an aggregate repurchase authorization of $250.0 million under the Company’s share repurchase program. On February 11, 2016, Nationstar announced a Board-authorized tender offer via a modified Dutch auction to repurchase up to $100 million of common stock. The tender offer is contingent upon satisfaction of customary conditions. Additional information about the tender offer, is set forth in Part II, Item 5 under "Issuer Purchases of Equity Securities." |
Capital Requirements
Capital Requirements | 12 Months Ended |
Dec. 31, 2015 | |
Mortgage Banking [Abstract] | |
Capital Requirements | Capital Requirements Certain of Nationstar’s secondary market investors require minimum net worth (capital) requirements, as specified in the respective selling and servicing agreements. In addition, these investors may require capital ratios in excess of the stated requirements to approve large servicing transfers. To the extent that these requirements are not met, Nationstar's secondary market investors may utilize a range of remedies ranging from sanctions, suspension or ultimately termination of Nationstar's selling and servicing agreements, which would prohibit Nationstar from further originating or securitizing these specific types of mortgage loans or being an approved servicer. Among Nationstar's various capital requirements related to its outstanding selling agreements, the most restrictive of these requires Nationstar to maintain a minimum adjusted net worth balance of $1.2 billion . As of December 31, 2015 , Nationstar was in compliance with its selling and servicing capital requirements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Regulatory Matters Nationstar and its affiliates are routinely and currently involved in a significant number of legal proceedings concerning matters that arise in the ordinary course of business, including punitive class actions and other litigation. These actions and proceedings are generally based on alleged violations of consumer protection, securities, employment, contract, tort, common law fraud and other numerous laws, including, without limitation, the Equal Credit Opportunity Act, Fair Debt Collection Practices Act, Fair Credit Reporting Act, Real Estate Settlement Procedures Act, Servicemember’s Civil Relief Act, Telephone Consumer Protection Act, Truth in Lending Act, Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), unfair, deceptive or abusive acts or practices in violation of the Dodd-Frank Act, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the Home Mortgage Disclosure Act and the Bankruptcy Code, False Claims Act and Making Home Affordable (MHA) loan modification programs. Additionally, along with others in our industry, the Company is subject to repurchase and indemnification claims and may continue to receive claims in the future, including from its Legacy Portfolio regarding alleged breaches of representation and warranties relating to the sale of mortgage loans or the placement of mortgage loans into securitization trusts or the servicing of mortgage loans securitizations. The Company is also subject to legal actions or proceedings related to loss sharing and indemnification provisions of our various acquisitions. Certain of the actual legal actions and proceedings include claims for substantial compensatory, punitive and/or, statutory damages or claims for an indeterminate amount of damages. The outcome of such proceedings is difficult to predict or estimate until late in the proceedings, which may last several years. In particular, ongoing and other legal proceedings brought under federal or state consumer protection laws may result in a separate fine for each violation of the laws, which, particularly in the case of class action lawsuits, could result in damages substantially in excess of the amount earned from the underlying activities and that could have a material adverse effect on the Company's liquidity and financial position. The certification of any putative class action could substantially increase the Company's exposure to damages. Nationstar’s business is subject to extensive regulation, investigations and reviews by various federal, state and local regulatory and enforcement agencies, including without limitation, the CFPB, the Securities and Exchange Commission, the Department of Justice, the US Trustee Program, the multistate coalition of mortgage banking regulators and the State Attorneys General. As a result, Nationstar is subject to various legal proceedings, regulatory examinations, inquiries and requests for documentation in the ordinary course of our business. Nationstar has historically had a number of open investigations with various State Attorneys General and other regulators. Nationstar expects this trend will continue due to interest in mortgage banking generally and non-bank mortgage lenders and servicers specifically. Nationstar has seen a significant increase in these activities in recent periods and believes that violations of law will more frequently be met with enforcement actions, including the imposition of significant monetary and other sanctions. Like many other companies in the mortgage industry, Nationstar is currently the subject of various regulatory investigations, subpoenas, examinations and inquiries related to its residential loan servicing and origination practices, bankruptcy and collections practices, its financial reporting and other aspects of its businesses. Several large mortgage originators or servicers have been subject to similar matters, which have resulted in the payment of fines and penalties, changes to business practices and which have resulted in the entry of consent decrees or settlements. Nationstar continues to manage its response to each matter, but it is not possible to confidently or reliably predict the outcome of any of them, including predicting any possible losses resulting from any judgments or fines. Responding to these matters requires Nationstar to devote substantial legal and regulatory resources, resulting in higher costs and lower net cash flows. The Company seeks to resolve all litigation and regulatory matters in the manner management believes is in the best interest of the Company and contests liability, allegations of wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal and regulatory proceedings utilizing the latest information available. Where available information indicates that it is probable a liability has been incurred and the Company can reasonably estimate the amount of the loss, an accrued liability is established. The actual costs of resolving these proceedings may be substantially higher or lower than the amounts accrued. As a litigation or regulatory matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is 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 $53.7 million , $29.2 million , and $20.4 million for the years ended December 31, 2015 , 2014 , and 2013 , 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 $16.6 million to $50.7 million in excess of the accrued liability (if any) related to those matters as of December 31, 2015 . This estimated range of possible loss is based upon currently available information and is subject to significant judgment, numerous assumptions and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary substantially from the current estimate. Those matters for which an estimate is not possible are not included within the estimated range. Therefore, this estimated range of possible loss represents what management believes to be an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company's maximum loss exposure. Based on current knowledge, and after consultation with counsel, management believes that the current legal accrued liability is appropriate, and the amount of any incremental liability arising from these matters is not expected to have a material adverse effect on the consolidated financial condition of the Company, although the outcome of such proceedings could be material to the Company’s operating results and cash flows for a particular period depending, on among other things, the level of the Company’s revenues or income for such period. However, in the event of significant developments on existing cases, it is possible that the ultimate resolution, if unfavorable, may be material to the Company’s consolidated financial statements. During the course of a routine regulatory examination during 2015, the Company agreed with a regulator to make refunds of approximately $16.2 million to certain borrowers related to delays in consummating their loan modifications that were transferred from prior servicers from 2012 through February 2015. The Company will be seeking recourse for some portion of these charges from various counterparties. While the Company has made changes to certain practices regarding the transfer of loan modifications, there can be no assurance that additional amounts will not be assessed as restitution to the borrowers or as a penalty. Operating Lease Commitments In 2014, Nationstar entered into a lease agreement for its corporate office located at 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. Nationstar leases various office facilities under non-cancelable lease agreements with primary terms extending through 2022. These lease agreements generally provide for market-rate renewal options, and may provide for escalations in minimum rentals over the lease term. Rental expense incurred during 2015, 2014 and 2013 was $21.2 million , $22.1 million and $27.4 million , respectively. Minimum annual rental commitments for office leases with unrelated parties and with initial or remaining terms of one year or more, net of sublease payments, are presented below. Year Amount 2016 $ 28,637 2017 24,837 2018 22,847 2019 18,689 2020 and thereafter 28,156 Total $ 123,166 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. Nationstar has certain MSRs related to approximately $29.9 billion of UPB in reverse mortgage loans. As servicer for these reverse mortgage loans, among other things, the Company is obligated to make advances to the loan customers as required. At December 31, 2015 , the Company’s maximum unfunded advance obligation related to these MSRs was approximately $3.2 billion . Upon funding any portion of these advances, the Company expects to securitize and sell the advances in transactions that will be accounted for as a financing arrangement. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges To respond to the decreased demand in the mortgage loan originations market and other market conditions, Nationstar periodically initiates programs to reduce costs and improve operating effectiveness. These programs 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. Nationstar recorded restructuring charges related to canceled lease expenses of $0.1 million , $(0.6) million , and $4.1 million for the years ended December, 2015, 2014 , and 2013 , respectively are reflected in general and administrative expenses. Due to increased productivity per employee and economies of scale in the Servicing segment, Nationstar began consolidating certain locations in November 2013. During 2015, Nationstar continued to right-size Servicing, Originations and Xome operations and personnel. The Company recorded restructuring charges of $12.4 million , $0 , and $8.8 million for the years ended December 31, 2015, 2014 and 2013, respectively. These were all related to employee severance that is reflected 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 For the year ended December 31, 2015 Restructuring charges: Employee severance and other $ — $ 12,408 $ (3,475 ) $ 8,933 Lease terminations 3,979 100 (3,229 ) 850 Total $ 3,979 $ 12,508 $ (6,704 ) $ 9,783 For the year ended December 31, 2014 Restructuring charges: Employee severance and other $ 4,650 $ — $ (4,650 ) $ — Lease terminations 8,636 (581 ) (4,076 ) 3,979 Total $ 13,286 $ (581 ) $ (8,726 ) $ 3,979 For the year ended December 31, 2013 Restructuring charges: Employee severance and other $ — $ 8,765 $ (4,115 ) $ 4,650 Lease terminations 7,186 4,108 (2,658 ) 8,636 Total $ 7,186 $ 12,873 $ (6,773 ) $ 13,286 |
Business Segment Reporting
Business Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
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. In the second quarter of 2014, Nationstar realigned its business segment reporting structure as a result of the change in the Chief Operating Decision Maker. While this financial data reflects the change in the Company's reportable segments described below, including the historical data presented for comparison purposes, the Company has not revised or restated its historical financial statements for any period. The realignment principally involved the separation of the former ‘Servicing’ segment into two segments and the reclassification of previously allocated corporate costs, including interest costs related to Nationstar’s unsecured senior debt, into the Corporate and Other segment. Corporate costs included within the Corporate and Other segment include expenses related to certain executive salaries and other corporate functions that are not directly attributable to our operating segments. 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 operating this business. All periods presented reflect this reclassification. Nationstar reclassified $9.2 million and $6.6 million of operating income from the Xome segment to the Servicing segment earned during 2014 and 2013, respectively. The following tables are a presentation of financial information by segment for the periods indicated: For the year ended December 31, 2015 Servicing Originations Xome Total Operating Segments Corporate and Other Eliminations Consolidated Revenues Service related $ 814,708 $ 50,752 $ 436,980 $ 1,302,440 $ 2,760 $ (440 ) $ 1,304,760 Net gain on mortgage loans held for sale 67,258 614,959 — 682,217 1,658 — 683,875 Total revenues 881,966 665,711 436,980 1,984,657 4,418 (440 ) 1,988,635 Total expenses 787,683 469,092 358,271 1,615,046 72,533 — 1,687,579 Other income (expense) Interest income 267,538 67,734 33 335,305 15,010 440 350,755 Interest expense (376,483 ) (58,271 ) (113 ) (434,867 ) (170,356 ) — (605,223 ) Gain on repurchase of unsecured senior notes — — — — 8,237 — 8,237 Gain (loss) on interest rate swaps and caps (710 ) — — (710 ) 60 — (650 ) Total other income (expense) (109,655 ) 9,463 (80 ) (100,272 ) (147,049 ) 440 (246,881 ) Income (loss) before taxes $ (15,372 ) $ 206,082 $ 78,629 $ 269,339 $ (215,164 ) $ — $ 54,175 Depreciation and amortization $ 21,171 $ 12,163 $ 13,449 $ 46,783 $ 6,714 $ — $ 53,497 Total assets 14,255,583 1,400,982 303,676 15,960,241 693,829 — 16,654,070 For the year ended December 31, 2014 Servicing Originations Xome Total Operating Segments Corporate and Other Eliminations Consolidated Revenues Service related $ 1,023,150 $ 43,954 $ 305,488 $ 1,372,592 $ 4,713 $ (1,443 ) $ 1,375,862 Net gain on mortgage loans held for sale 64,506 535,273 — 599,779 (2,573 ) — 597,206 Total revenues 1,087,656 579,227 305,488 1,972,371 2,140 (1,443 ) 1,973,068 Total expenses 705,017 390,497 181,727 1,277,241 80,450 1,357,691 Other income (expense) Interest income 91,713 72,031 — 163,744 14,405 1,443 179,592 Interest expense (246,099 ) (70,237 ) (360 ) (316,696 ) (199,691 ) — (516,387 ) Gain on sale of property — — — — 4,898 — 4,898 Gain (loss) on interest rate swaps and caps 1,672 — — 1,672 732 — 2,404 Total other income (expense) (152,714 ) 1,794 (360 ) (151,280 ) (179,656 ) 1,443 (329,493 ) Income (loss) before taxes $ 229,925 $ 190,524 $ 123,401 $ 543,850 $ (257,966 ) $ — $ 285,884 Depreciation and amortization $ 14,047 $ 9,642 $ 3,680 $ 27,369 $ 12,797 $ — $ 40,166 Total assets 8,796,962 1,400,880 195,619 10,393,461 719,214 — 11,112,675 For the year ended December 31, 2013 Servicing Originations Xome Total Operating Segments Corporate and Other Eliminations Consolidated Revenues Service related $ 1,186,145 $ 62,011 $ 135,950 $ 1,384,106 $ 1,750 $ (1,634 ) $ 1,384,222 Net gain on mortgage loans held for sale 61,624 650,357 — 711,981 (9,218 ) — 702,763 Total revenues 1,247,769 712,368 135,950 2,096,087 (7,468 ) (1,634 ) 2,086,985 Total expenses and impairments 613,084 589,986 108,633 1,311,703 90,575 — 1,402,278 Other income (expense): Interest income 90,913 87,713 — 178,626 16,960 1,634 197,220 Interest expense (279,501 ) (79,106 ) (264 ) (358,871 ) (179,934 ) — (538,805 ) Contract termination fees — — — — — — — Loss on equity method investments — — — — — — — Gain (loss) on interest rate swaps and caps 1,856 — — 1,856 1,276 — 3,132 Total other income (expense) (186,732 ) 8,607 (264 ) (178,389 ) (161,698 ) 1,634 (338,453 ) Income (loss) before taxes $ 447,953 $ 130,989 $ 27,053 $ 605,995 $ (259,741 ) $ — $ 346,254 Depreciation and amortization $ 14,955 $ 6,569 $ 1,161 $ 22,685 $ 3,930 $ — $ 26,615 Total assets 9,980,274 2,777,928 30,615 12,788,817 1,237,872 — 14,026,689 |
Guarantor Financial Statement I
Guarantor Financial Statement Information | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Guarantor Financial Statement Information | Guarantor Financial Statement Information As of December 31, 2015 , Nationstar Mortgage LLC and Nationstar Capital Corporation (1) (collectively, the Issuer), both wholly owned subsidiaries of Nationstar, have issued $2.0 billion aggregate principal amount of unsecured senior notes which mature on various dates through June 1, 2022. The unsecured senior notes are unconditionally guaranteed, jointly and severally, by all of Nationstar Mortgage LLC's existing and future domestic subsidiaries other than its securitization and certain finance subsidiaries, certain other restricted subsidiaries, excluded restricted subsidiaries and subsidiaries that in the future Nationstar Mortgage LLC designates as unrestricted subsidiaries. All guarantor subsidiaries are 100% owned by Nationstar Mortgage LLC. Nationstar and its two direct wholly-owned subsidiaries are guarantors of the unsecured senior notes as well. Presented below are the condensed consolidating financial statements of Nationstar, Nationstar Mortgage LLC and the guarantor subsidiaries for the periods indicated. In the condensed consolidating financial statements presented below, Nationstar allocates income tax expense to Nationstar Mortgage LLC as if it were a separate tax payer entity pursuant to ASC 740, Income Taxes. (1) Nationstar Capital Corporation has no assets, operations or liabilities other than being a co-obliger of the unsecured senior notes. NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2015 Assets Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Cash and cash equivalents $ — $ 597,303 $ 558 $ 15,380 $ — $ 613,241 Restricted cash — 198,726 3 133,376 — 332,105 Mortgage servicing rights — 3,366,973 — — — 3,366,973 Advances — 2,223,039 — 44 — 2,223,083 Reverse mortgage interests — 6,832,186 — 682,137 — 7,514,323 Mortgage loans held for sale — 1,304,219 — 125,472 — 1,429,691 Mortgage loans held for investment, net — 840 — 172,810 — 173,650 Property and equipment, net — 113,228 868 28,740 — 142,836 Derivative financial instruments — 95,681 — 3,518 — 99,199 Other assets 3,444 836,704 303,452 1,496,640 (1,881,271 ) 758,969 Investment in subsidiaries 1,768,319 509,475 — — (2,277,794 ) — Total assets $ 1,771,763 $ 16,078,374 $ 304,881 $ 2,658,117 $ (4,159,065 ) $ 16,654,070 Liabilities and stockholders’ equity Unsecured senior notes $ — $ 2,048,694 $ — $ — $ — $ 2,048,694 Advance facilities — 237,865 — 1,408,258 — 1,646,123 Warehouse facilities — 1,785,266 — 108,260 — 1,893,526 Payables and accrued liabilities 4,386 1,222,268 927 68,806 — 1,296,387 MSR related liabilities - nonrecourse — 1,300,782 — — — 1,300,782 Mortgage servicing liabilities — 25,260 — — — 25,260 Derivative financial instruments — 5,323 — — — 5,323 Other nonrecourse debt — 5,947,407 — 723,191 — 6,670,598 Payables to affiliates — 1,737,190 1,031 143,050 (1,881,271 ) — Total liabilities 4,386 14,310,055 1,958 2,451,565 (1,881,271 ) 14,886,693 Total equity 1,767,377 1,768,319 302,923 206,552 (2,277,794 ) 1,767,377 Total liabilities and equity $ 1,771,763 $ 16,078,374 $ 304,881 $ 2,658,117 $ (4,159,065 ) $ 16,654,070 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues Service related $ — $ 846,221 $ 17,390 $ 441,149 $ 1,304,760 Net gain on mortgage loans held for sale — 640,051 — 43,824 — 683,875 Total revenues — 1,486,272 17,390 484,973 — 1,988,635 Expenses Salaries, wages and benefits — 540,052 4,791 217,725 — 762,568 General and administrative — 737,168 3,248 184,595 — 925,011 Total expenses — 1,277,220 8,039 402,320 — 1,687,579 Other income/(expense) Interest income — 310,809 — 39,946 350,755 Interest expense — (534,097 ) — (71,126 ) — (605,223 ) Gain on debt repurchase — 8,237 — — — 8,237 Gain on interest rate swaps and caps — 60 — (710 ) — (650 ) Gain/(loss) from subsidiaries 38,779 59,862 — — (98,641 ) — Total other income/(expense) 38,779 (155,129 ) — (31,890 ) (98,641 ) (246,881 ) Income/(loss) before taxes 38,779 53,923 9,351 50,763 (98,641 ) 54,175 Income tax expense/(benefit) — 11,002 — 10 — 11,012 Net income/(loss) 38,779 42,921 9,351 50,753 (98,641 ) 43,163 Less: net gain attributable to noncontrolling interests — 4,142 — 242 — 4,384 Net income/(loss) excluding noncontrolling interests $ 38,779 $ 38,779 $ 9,351 $ 50,511 $ (98,641 ) $ 38,779 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating Activities Net income/(loss) $ 38,779 $ 38,779 $ 9,351 $ 50,511 $ (98,641 ) $ 38,779 Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: Noncontrolling interest — 4,142 — 242 — 4,384 (Gain)/loss from subsidiaries (38,779 ) (59,862 ) — — 98,641 — Share-based compensation — 12,299 66 7,156 — 19,521 Gain on repurchase of unsecured senior notes — (8,237 ) — — — (8,237 ) Net tax effect of stock grants — (422 ) — — — (422 ) Loss on foreclosed real estate and other — — — — — — Gain on mortgage loans held for sale — (638,963 ) — (44,912 ) — (683,875 ) Mortgage loans originated and purchased, net of fees — (16,827,026 ) — (1,144,278 ) — (17,971,304 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (1,865,347 ) — — — (1,865,347 ) Proceeds on sale of and payments of mortgage loans held for sale — 18,927,555 — 1,117,865 — 20,045,420 (Gain)/loss on derivatives including ineffectiveness — (60 ) — 710 — 650 Cash settlement on derivative financial instruments — — — — — — Depreciation and amortization — 40,024 7 13,466 — 53,497 Amortization/(accretion) of premiums/(discounts) — (7,993 ) — (3,678 ) — (11,671 ) Fair value changes in excess spread financing — 25,631 — — — 25,631 Fair value changes and amortization/accretion of mortgage servicing rights — 459,803 — — — 459,803 Fair value change in mortgage servicing rights financing liability — 19,266 — — — 19,266 Changes in assets and liabilities: Advances — 321,026 — 2,253 — 323,279 Reverse mortgage interests — 95,299 — (340,869 ) — (245,570 ) Other assets 12,935 388,543 (10,010 ) (120,873 ) — 270,595 Payables and accrued liabilities — (67,140 ) 902 9,665 — (56,573 ) Net cash attributable to operating activities 12,935 857,317 316 (452,742 ) — 417,826 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing Activities Property and equipment additions, net of disposals — (36,497 ) (43 ) (20,502 ) — (57,042 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (714,842 ) — — — (714,842 ) Purchases of reverse mortgage servicing rights and interests — (4,815,684 ) — — — (4,815,684 ) Sale of forward service rights — 43,793 — — — 43,793 Acquisitions, net — — — (45,796 ) — (45,796 ) Net cash attributable to investing activities — (5,523,230 ) (43 ) (66,298 ) — (5,589,571 ) Financing Activities Transfers (to)/from restricted cash, net — (21,636 ) (3 ) (24,936 ) — (46,575 ) Repayment of unsecured senior notes — (102,533 ) — — — (102,533 ) Issuance of common stock, net of issuance cost — 497,757 — — — 497,757 Debt financing costs — (17,363 ) — — — (17,363 ) Increase (decrease) warehouse facilities — 245,272 — 75,632 — 320,904 Increase (decrease) advance facilities — (332,927 ) — 77,267 — (255,660 ) Proceeds from HECM Securitizations — — — 559,757 — 559,757 Repayment of HECM Securitizations — — — (161,221 ) — (161,221 ) Issuance of excess spread financing — 385,637 — — — 385,637 Repayment of excess spread financing — (210,217 ) — — — (210,217 ) Increase in participating interest financing in reverse mortgage interests — 4,540,828 — — — 4,540,828 Proceeds from mortgage service rights financing — — — — — — Repayment of nonrecourse debt–Legacy assets — (1,794 ) — (11,023 ) — (12,817 ) Net tax benefit for stock grants issued — 422 — — — 422 Redemption of shares for stock vesting (6,224 ) — — — — (6,224 ) Repurchase of treasury shares (6,711 ) — — — — (6,711 ) Net cash attributable to financing activities (12,935 ) 4,983,446 (3 ) 515,476 — 5,485,984 Net increase/(decrease) in cash — 317,533 270 (3,564 ) — 314,239 Cash and cash equivalents at beginning of period — 279,770 288 18,944 — 299,002 Cash and cash equivalents at end of period $ — $ 597,303 $ 558 $ 15,380 $ — $ 613,241 NATIONSTAR MORTGAGE HOLDINGS INC CONSOLIDATING BALANCE SHEET DECEMBER 31, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ — $ 279,770 $ 288 $ 18,944 $ — $ 299,002 Restricted cash — 177,090 — 108,440 — 285,530 Mortgage servicing rights — 2,961,321 — — — 2,961,321 Advances — 2,542,402 — 2,297 — 2,544,699 Reverse mortgage interests — 2,111,801 — 341,268 — 2,453,069 Mortgage loans held for sale — 1,243,700 — 34,231 — 1,277,931 Mortgage loans held for investment, net — 1,945 — 189,624 — 191,569 Property and equipment, net — 114,903 835 13,873 — 129,611 Derivative financial instruments — 87,911 — 3,140 — 91,051 Other assets 16,383 1,070,724 272,654 1,328,078 (1,808,947 ) 878,892 Investment in subsidiaries 1,207,895 450,363 — — (1,658,258 ) — Total Assets $ 1,224,278 $ 11,041,930 $ 273,777 $ 2,039,895 $ (3,467,205 ) $ 11,112,675 Liabilities and members’ equity Unsecured senior notes $ — $ 2,159,231 $ — $ — $ — $ 2,159,231 Advance facilities — 570,792 — 1,330,991 — 1,901,783 Warehouse facilities — 1,539,994 — 32,628 — 1,572,622 Payables and accrued liabilities — 1,282,895 25 39,158 — 1,322,078 MSR related liabilities - nonrecourse — 1,080,465 — — — 1,080,465 Mortgage servicing liabilities — 65,382 — — — 65,382 Derivative financial instruments — 18,525 — — — 18,525 Other nonrecourse debt — 1,433,145 — 335,166 — 1,768,311 Payables to affiliates — 1,683,606 894 124,447 (1,808,947 ) — Total liabilities — 9,834,035 919 1,862,390 (1,808,947 ) 9,888,397 Total equity 1,224,278 1,207,895 272,858 177,505 (1,658,258 ) 1,224,278 Total liabilities and equity $ 1,224,278 $ 11,041,930 $ 273,777 $ 2,039,895 $ (3,467,205 ) $ 11,112,675 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues Service related $ — $ 1,030,214 $ 47,588 $ 297,869 $ 191 $ 1,375,862 Net gain on mortgage loans held for sale — 583,790 — 13,416 — 597,206 Total Revenues — 1,614,004 47,588 311,285 191 1,973,068 Expenses Salaries, wages and benefits — 556,047 4,404 82,485 — 642,936 General and administrative — 587,327 1,872 125,556 — 714,755 Total expenses — 1,143,374 6,276 208,041 — 1,357,691 Other income/(expense) Interest income — 158,508 — 21,275 (191 ) 179,592 Interest expense — (460,781 ) — (55,606 ) — (516,387 ) Gain on disposal of property — 4,898 — — — 4,898 Gain/(loss) on interest rate swaps and caps — 732 — 1,672 — 2,404 Gain/(loss) from subsidiaries 220,718 111,897 — — (332,615 ) — Total other income/(expense) 220,718 (184,746 ) — (32,659 ) (332,806 ) (329,493 ) Income before taxes 220,718 285,884 41,312 70,585 (332,615 ) 285,884 Income tax expense/(benefit) — 64,860 — — — 64,860 Net Income/(loss) 220,718 221,024 41,312 70,585 (332,615 ) 221,024 Less: Net gain attributable to noncontrolling interests — 306 — — — 306 Net income/(loss) excluding noncontrolling interests $ 220,718 $ 220,718 $ 41,312 $ 70,585 $ (332,615 ) $ 220,718 NATIONSTAR MORTGAGE HOLDINGS INC CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities Net income/(loss) $ 220,718 $ 220,718 $ 41,312 $ 70,585 $ (332,615 ) $ 220,718 Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: (Gain)/loss from subsidiaries (220,718 ) (111,897 ) — — 332,615 — Noncontrolling interest — 306 — — — 306 Share-based compensation — 18,565 — — — 18,565 Gain on disposal of property — (4,898 ) — — — (4,898 ) Excess benefit from share-based compensation — (2,243 ) — — — (2,243 ) Loss on foreclosed real estate — 3,099 — 7,189 — 10,288 Net (gain)/loss on mortgage loans held for sale — (583,790 ) — (13,416 ) — (597,206 ) Mortgage loans originated and purchased, net of fees — (17,137,520 ) — — — (17,137,520 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (3,692,199 ) — — — (3,692,199 ) Proceeds on sale of and payments of mortgage loans held for sale — 22,129,587 — (5,614 ) — 22,123,973 Gain (loss) on derivatives including interest rate swaps and caps — (732 ) — (1,672 ) — (2,404 ) Cash settlement on derivative financial instruments — — — 1,352 — 1,352 Depreciation and amortization — 36,381 88 3,697 — 40,166 Amortization (accretion) of premiums/(discounts) — 15,520 — (2,190 ) — 13,330 Fair value changes in excess spread financing — 57,554 — — — 57,554 Fair value changes and amortization/accretion of mortgage servicing rights — 233,537 — — — 233,537 Fair value change in mortgage servicing rights financing liability — (33,279 ) — — — (33,279 ) Changes in assets and liabilities: Advances — 327,470 — (3,288 ) — 324,182 Reverse mortgage interests — (626,034 ) — (376,108 ) — (1,002,142 ) Other assets 5,489 (1,613,831 ) (39,029 ) 2,206,946 (31,463 ) 528,112 Payables and accrued liabilities — (71,071 ) (5,925 ) 25,550 31,463 (19,983 ) Net cash attributable to operating activities 5,489 (834,757 ) (3,554 ) 1,913,031 — 1,080,209 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities Property and equipment additions, net of disposals — (41,739 ) (68 ) (14,598 ) — (56,405 ) Proceeds from sale of building — 10,412 — — — 10,412 Purchase of forward mortgage servicing rights, net of liabilities incurred — (471,249 ) — — — (471,249 ) Proceeds from sale of servicer advances — 768,449 — — — 768,449 Business acquisitions, net — (15,854 ) — (2,146 ) — (18,000 ) Net cash attributable to investing activities — 250,019 (68 ) (16,744 ) — 233,207 Financing activities Transfers (to)/from restricted cash — 118,617 3 172,183 — 290,803 Redemption of unsecured senior notes — (285,000 ) — — — (285,000 ) Debt financing costs — (13,067 ) — — — (13,067 ) Increase (decrease) in advance facilities — — — (1,221,206 ) — (1,221,206 ) Increase (decrease) in warehouse facilities — 226,596 — (1,087,901 ) — (861,305 ) Proceeds from 2014-1 HECM Securitization — — — 269,033 — 269,033 Repayment of 2014-1 HECM Securitization — — — (9,750 ) — (9,750 ) Issuance of excess spread financing — 171,317 — — — 171,317 Repayment of excess servicing spread financing — (184,246 ) — — — (184,246 ) Increase in participating interest financing in reverse mortgage interests — 352,945 — — — 352,945 Proceeds from mortgage servicing rights financing — 52,835 — — — 52,835 Repayment of nonrecourse debt–Legacy assets — — — (15,429 ) — (15,429 ) Excess tax benefit from share-based compensation — 2,243 — — — 2,243 Redemption of shares for stock vesting (5,489 ) — — — — (5,489 ) Net cash attributable to financing activities (5,489 ) 442,240 3 (1,893,070 ) — (1,456,316 ) Net increase in cash and cash equivalents — (142,498 ) (3,619 ) 3,217 — (142,900 ) Cash and cash equivalents at beginning of period — 422,268 3,907 15,727 — 441,902 Cash and cash equivalents at end of period $ — $ 279,770 $ 288 $ 18,944 $ — $ 299,002 NATIONSTAR MORTGAGE LLC CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2013 Nationstar Issuer Guarantor Non-Guarantor (Subsidiaries) Eliminations Consolidated Revenues Service related $ — $ 1,211,717 $ 129,689 $ 101,704 $ (58,888 ) $ 1,384,222 Net gain on mortgage loans held for sale — 645,509 — — 57,254 702,763 Total Revenues — 1,857,226 129,689 101,704 (1,634 ) 2,086,985 Expenses Salaries, wages and benefits — 637,794 12,534 29,309 — 679,637 General and administrative — 612,307 3,630 75,859 — 691,796 Occupancy — 29,121 431 1,293 — 30,845 Total expenses — 1,279,222 16,595 106,461 — 1,402,278 Other income / (expense) Interest income — 179,445 — 16,141 1,634 197,220 Interest expense — (420,214 ) — (118,591 ) — (538,805 ) Gain/(loss) on interest rate swaps and caps — 1,012 — 2,120 — 3,132 Gain / (loss) from subsidiaries 217,054 8,007 — — (225,061 ) — Total other income / (expense) 217,054 (231,750 ) — (100,330 ) (223,427 ) (338,453 ) Income before taxes 217,054 346,254 113,094 (105,087 ) (225,061 ) 346,254 Income tax expense/(benefit) — 129,200 — — — 129,200 Net income/(loss) $ 217,054 $ 217,054 $ 113,094 $ (105,087 ) $ (225,061 ) $ 217,054 NATIONSTAR MORTGAGE LLC CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2013 Nationstar Issuer Guarantor Non- Eliminations Consolidated Operating activities Net income/(loss) $ 217,054 $ 217,054 $ 113,094 $ (105,087 ) $ (225,061 ) $ 217,054 Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities, net of effect of acquisitions: Gain/(loss) from subsidiaries (217,054 ) (8,007 ) — — 225,061 — Share-based compensation — 10,574 — — — 10,574 Net tax effect of stock grants — (4,579 ) — — — (4,579 ) Loss on foreclosed real estate and other — 7,317 — 5,999 — 13,316 (Gain) on mortgage loans held for sale — (645,509 ) — — (57,254 ) (702,763 ) Mortgage loans originated and purchased, net of fees — (24,059,757 ) — — — (24,059,757 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (1,426,860 ) — — — (1,426,860 ) Proceeds on sale of and payments of mortgage loans held for sale — 24,524,472 — 13,325 57,254 24,595,051 (Gain)/loss on derivatives including ineffectiveness — (3,415 ) — (2,665 ) — (6,080 ) Cash settlement on derivative financial instruments — — — (4,544 ) — (4,544 ) Depreciation and amortization — 25,479 979 157 — 26,615 Amortization/accretion of premiums/(discounts) — 56,348 — (3,817 ) — 52,531 Fair value changes in excess spread financing — 73,333 — — — 73,333 Fair value changes and amortization/accretion of mortgage servicing rights — (59,101 ) — — — (59,101 ) Changes in assets and liabilities: Advances — (4,497,046 ) — 4,031,271 — (465,775 ) Reverse mortgage interests — (751,609 ) — — — (751,609 ) Other assets 2,365 5,395,861 (113,703 ) (5,257,613 ) 17,327 44,237 Payables and accrued liabilities — 650,287 4,135 10,225 (17,327 ) 647,320 Net cash attributable to operating activities 2,365 (495,158 ) 4,505 (1,312,749 ) — (1,801,037 ) Nationstar Issuer Guarantor Non- Eliminations Consolidated Investing activities Property and equipment additions, net of disposals — (45,138 ) (999 ) (2,722 ) — (48,859 ) Purchase of reverse mortgage rights and interests — (19,189 ) — — — (19,189 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (1,527,645 ) — — — (1,527,645 ) Loan repurchases from Ginnie Mae — — — — — — Proceeds from sales of REO — — — — — — Proceeds from sale of servicer advances — 277,455 — — — 277,455 Acquisitions, net — (88,200 ) — — — (88,200 ) Net cash attributable to investing activities — (1,402,717 ) (999 ) (2,722 ) — (1,406,438 ) Financing activities Transfers to/from restricted cash — (199,600 ) — (33,095 ) — (232,695 ) Issuance of unsecured notes, net — 1,365,244 — — — 1,365,244 Debt financing costs — (53,529 ) — — — (53,529 ) Increase (decrease) in warehouse facilities — (136,947 ) — 1,532,374 — 1,395,427 Increase (decrease) in advance facilities — — — (154,677 ) — (154,677 ) Issuance of excess spread financing — 753,002 — — — 753,002 Repayment of excess servicing spread financing — (130,355 ) — — — (130,355 ) Issuance of participating interest financing in reverse mortgage interests — 535,216 — — — 535,216 Proceeds from mortgage servicing rights financing 29,874 29,874 Repayment of nonrecourse debt–Legacy assets — — — (13,404 ) — (13,404 ) Contributions from joint venture member to noncontrolling interest — 4,990 4,990 Net tax benefit for stock grants issued 4,579 — — — — 4,579 Redemption of shares for stock vesting (6,944 ) — — — — (6,944 ) Net cash attributable to financing activities (2,365 ) 2,167,895 — 1,331,198 — 3,496,728 Net increase/(decrease) in cash — 270,020 3,506 15,727 — 289,253 Cash and cash equivalents at beginning of period — 152,248 401 — — 152,649 Cash and cash equivalents at end of period $ — $ 422,268 $ 3,907 $ 15,727 $ — $ 441,902 |
Disclosures Related to Transact
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC | Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC Newcastle Investment Corp. Nationstar is the loan servicer for several securitized loan portfolios managed by Newcastle, which is managed by an affiliate of Fortress, for which Nationstar receives a monthly net servicing fee equal to 0.50% per annum on the unpaid principal balance of the portfolios, which was $0.7 billion , $0.8 billion and $0.9 billion , as of December 31, 2015, 2014, and 2013, respectively. For the years ended 2015, 2014 and 2013, Nationstar received servicing fees and other performance incentive fees of $3.5 million , $4.1 million and $4.6 million , respectively. New Residential Investment Corp. Excess Spread Financing Nationstar has entered into several agreements with certain entities formed by New Residential, in which New Residential and/or certain funds managed by Fortress own an interest (each a "New Residential Entity"), where Nationstar sold to the related New Residential Entity the right to receive a portion of the excess cash flow generated from certain acquired MSRs after receipt of a fixed base servicing fee per loan. Nationstar retains all ancillary revenues associated with servicing such MSRs and the remaining portion of the excess cash flow after receipt of the fixed base servicing fee. Nationstar is the servicer of the loans and provides all servicing and advancing functions for the portfolio. The related New Residential Entity does not have prior or ongoing obligations associated with these MSR portfolios. Furthermore, should Nationstar refinance any loan in such portfolios, subject to certain limitations, Nationstar will be required to transfer the new loan or a replacement loan of similar economic characteristics into the portfolios. The new or replacement loan will be governed by the same terms set forth in the agreements described above. In addition, as of December 31, 2015, Nationstar had recorded $30.7 million of delinquent service fees that were paid to New Residential in advance of the contractual due date. This amount will be ultimately recouped from borrowers or netted against future remittances as related to service fee amounts. This amount is recorded as a reduction to outstanding excess spread financing in our financial statements. The fair value on the outstanding liability related to these agreements was $1.2 billion and $1.0 billion at December 31, 2015 and 2014, respectively. Mortgage Servicing Rights Financing Liability During December 2013, Nationstar entered into a Master Servicing Rights Purchase Agreement and three related Sale Supplements (collectively, the Sale Agreement) with a joint venture entity (Purchaser) capitalized by New Residential in which New Residential and/or certain funds managed by Fortress own an interest. Under the Sale Agreement, Nationstar sold to the Purchaser the right to repayment on certain servicer advances outstanding on non-agency mortgage loans. In addition, Nationstar also sold the right to receive the base fee component on the related mortgage servicing rights, in exchange for the Purchaser remitting a portion of the base fee to Nationstar in exchange for Nationstar continuing to service the mortgage loans. Once the servicing is transferred under any servicing agreement to the Purchaser, Nationstar will subservice the applicable mortgage loans. While the transfer of the mortgage servicing rights to New Residential is intended to achieve the economic result of a sale of mortgage servicing rights, the Company accounts for the transactions as financings. Special purpose subsidiaries of Nationstar previously issued approximately $2.1 billion of nonrecourse variable funding notes (the Notes) to finance the advances funded or acquired by Nationstar. The Notes were issued through two wholly-owned special purpose entities (the Issuers) pursuant to two servicer advance facilities. Pursuant to the Sale Agreement, New Residential purchased the outstanding equity of the wholly-owned special purpose entities of Nationstar that own the Issuers (the Depositors). On the sale date, New Residential and Nationstar amended and restated the transaction documents for each facility. Under these amended and restated transaction documents for each facility, Nationstar will continue to sell future service advances to New Residential, and New Residential will sell the new servicer advances to the Depositors. In December 2013, Nationstar received approximately $307.3 million in cash proceeds from the Sale Agreement. The fair value of the outstanding liability related to the Sale Agreement was $68.7 million and $49.4 million at December 31, 2015 and December 31, 2014, respectively. Nationstar did not enter into any additional supplemental agreements with the Purchaser in 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, 2015 and 2014, Nationstar recognized revenue of $4.0 million and $3.3 million related to these servicing arrangements, respectively. In 2015, Nationstar performed services for New Residential related to a series of trust collapses on call rights solely owned by New Residential. For the year ended December 31, 2015, Nationstar earned revenue of $0.5 million for these services. In February 2013, Nationstar acquired certain fixed and adjustable rate reverse mortgage loans with an unpaid principal balance totaling $83.1 million for a purchase price of $50.2 million . In conjunction with this acquisition, Nationstar entered into an agreement with NIC Reverse Loan LLC, a subsidiary of New Residential, to sell a participating interest amounting to 70% of the acquired reverse mortgage loans. Both Nationstar and NIC Reverse Loan LLC are entitled to the related percentage interest of all amounts received with respect to the reverse mortgage loans, net of payments of servicing fees and the reimbursement to Nationstar of servicing advances. Nationstar receives a fixed payment per loan for servicing these reverse mortgage loans. Nationstar records these reverse mortgage loans as reverse mortgage interests on the Company's consolidated balance sheets. Springleaf Home Equity, Inc. In prior years, Nationstar entered into several agreements to act as the loan subservicer for Springleaf Home Equity, Inc., formerly known as American General Home Equity, Inc., Springleaf General Financial Services of Arkansas, Inc., formerly known as American General Financial Services of Arkansas, Inc. and MorEquity, Inc. (collectively, Springleaf) totaling $2.0 billion for which Nationstar received a monthly per loan subservicing fee and other performance incentive fees subject to the agreements with Springleaf. Springleaf Home Equity, Inc. was a subsidiary of Springleaf Holdings, Inc., which was primarily owned by certain private equity funds managed by an affiliate of Fortress. On November 15, 2015, Springleaf Holdings, Inc. completed its acquisition of OneMain Financial Holdings, LLC, and has changed its corporate name from Springleaf Holdings, Inc. to OneMain Holdings, Inc. For the years ended December 31, 2015, 2014, and 2013, Nationstar recognized revenue of $1.3 million , $5.3 million and $8.1 million , respectively, in additional servicing and other performance incentive fees related to these portfolios. At December 31, 2014, Nationstar had an outstanding receivable from Springleaf of $0.2 million , which was included as a component of other assets. There were no amounts outstanding as of December 31, 2015. In August 2014, Nationstar entered into a Mortgage Servicing Rights Purchase and Sale Agreement with Springleaf Finance Corporation and MorEquity, Inc., whereby Nationstar agreed to purchase certain servicing rights related to loans previously subserviced for Springleaf. Under the terms of this Mortgage Servicing Rights Purchase and Sale Agreement, Nationstar purchased the servicing rights related to a pool of loans with an aggregate UPB of approximately $4.8 billion . The purchase price related to this Mortgage Servicing Rights Purchase and Sale Agreement was approximately $38.8 million . |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following is a summary of the quarterly consolidated results of operations for the period indicated (amounts in thousands except per share amounts: 2015 First Second Third Fourth Service related $ 215,123 $ 457,723 $ 211,311 $ 420,603 Net gain on mortgage loans held for sale 166,994 163,886 185,872 167,123 Total revenues 382,117 621,609 397,183 587,726 Total expenses 383,843 440,985 446,221 416,530 Total other income/(expense) (72,641 ) (60,613 ) (63,186 ) (50,441 ) Income (loss) before taxes (74,367 ) 120,011 (112,224 ) 120,755 Income taxes (benefit) (27,525 ) 44,171 (47,295 ) 41,661 Net income (loss) (46,842 ) 75,840 (64,929 ) 79,094 Less: net income attributable to noncontrolling interests 1,473 1,281 1,413 217 Net income (loss) attributable to Nationstar $ (48,315 ) $ 74,559 $ (66,342 ) $ 78,877 Earnings per share attributable to common shareholders: Basic $ (0.54 ) $ 0.69 $ (0.62 ) $ 0.85 Diluted $ (0.54 ) $ 0.69 $ (0.62 ) $ 0.84 2014 First Second Third Fourth Service related $ 327,663 $ 362,916 $ 351,070 $ 334,213 Net gain on mortgage loans held for sale 141,984 186,817 153,254 115,151 Total revenues 469,647 549,733 504,324 449,364 Total expenses and impairments 321,133 346,711 327,224 362,623 Total other income/(expense) (109,836 ) (97,434 ) (67,521 ) (54,702 ) Income before taxes 38,678 105,588 109,579 32,039 Income tax expense (benefit) 15,001 38,941 (1,700 ) 12,618 Net income 23,677 66,647 111,279 19,421 Less: net income (loss) attributable to noncontrolling interests (359 ) 192 54 419 Net income attributable to Nationstar $ 24,036 $ 66,455 $ 111,225 $ 19,002 Earnings per share attributable to common shareholders: Basic $ 0.27 $ 0.74 $ 1.23 $ 0.22 Diluted $ 0.27 $ 0.74 $ 1.22 $ 0.21 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In January 2016, the Company's Board of Directors approved the plan to change the brand name for the Company's servicing and origination business to Mr. Cooper in the summer of 2016. Therefore, Greenlight trade name is not expected to be used by the Company after June 2016, and the Company revised the useful life of Greenlight trade name to six months and started amortizing it over the period from January to June 2016, which is the revised remaining useful life. Greenlight trade name's carrying value as of December 31, 2015 was $13.7 million . On February 9, 2016, Nationstar’s Board of Directors authorized a $100 million increase to the original repurchase authorization for an aggregate repurchase authorization of $250 million under the Company’s share repurchase program. On February 11, 2016, Nationstar announced a Board-authorized tender offer via a modified Dutch auction to repurchase up to $100 million of common stock. The tender offer is contingent upon satisfaction of customary conditions. Additional information about the tender offer, is set forth in Part II, Item 5 under "Issuer Purchases of Equity Securities.". A leading financial institution with a growing servicing platform awarded us a $55 billion subservicing contract that is on track for boarding through 2016. |
Significant Accounting Polici33
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company follows generally accepted accounting principles in the United States of America (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 (VIEs) where Nationstar's wholly-owned subsidiaries are the primary beneficiaries. Nationstar applies the equity method of accounting to investments when the entity is a VIE and Nationstar is able to exercise significant influence, but not control, over the policies and procedures of the entity but owns less than 50% of the voting interests. Intercompany balances and transactions on consolidated entities have been eliminated. Business combinations are included in the consolidated financial statements from their respective dates of acquisitions. Results of operations, assets and liabilities of VIEs are included from the date that Nationstar became the primary beneficiary through the date Nationstar ceases to be the primary beneficiary. Nationstar evaluated subsequent events through the date these consolidated financial statements were issued. |
Use of Estimates | Use of Estimates The preparation of the financial statements 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, changes in prepayment assumptions, declines in home prices or discrete events adversely affecting specific borrowers, and such differences could be material. |
Reclassifications | Reclassifications Certain prior-period amounts have been reclassified to conform to the current-period presentation. The primary reclassifications were the result of new accounting guidance (see Subtopic 310-40 below) which impacted the presentation of Reverse Mortgage Interests. As a result, the Company transferred amounts included within Other Assets into Reverse Mortgage Interests both on the Consolidated Balance Sheets and Consolidated Statement of Cash Flows for all periods presented. |
Recent Accounting Guidance Adopted and Recent Accounting Guidance Not Yet Adopted | Recent Accounting Guidance Adopted Effective January 1, 2015, the Company adopted Accounting Standards Update No. 2014-14, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40), Classification of Certain Government-Guaranteed Loans Upon Foreclosure ( ASU 2014-14). This update requires that foreclosed mortgage loans guaranteed by the government be derecognized and a separate other receivable recognized if certain conditions are met. Upon adoption of this ASU, foreclosed loans backed by government guarantees that were previously recorded as a component of Real Estate Owned in Other Assets were reclassified to Reverse Mortgage Interests on the Company's consolidated balance sheet. Consistent with the Company's adoption of ASU 2014-14, $69.4 million from the prior year was reclassified to be in conformity with the current year presentation. The adoption of ASU 2014-14 was limited to balance sheet reclassification, and did not impact the Company's financial condition, liquidity or results of operations. Effective January 1, 2015, the Company adopted Accounting Standards Update No. 2014-04, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40), Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure (ASU 2014-04). This update requires disclosure of consumer mortgage loans collateralized by residential real estate for which formal foreclosure proceedings are in process. Consistent with the Company's adoption of ASU 2014-04, the Company made the required disclosure for the current and prior year in the Mortgage Loans Held for Sale and Investment footnote. The adoption of ASU 2014-04 did not impact the Company's financial condition, liquidity or results of operations. Accounting Standards Update No 2014-11, Transfers and Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (ASU 2014-11), was created to provide greater disclosure in reference to repurchase agreements and similar transactions. Under ASC 2014-11, repurchase-to-maturity transactions are accounted for as secured borrowings and eliminates existing guidance for repurchase financings. In addition, new disclosures are required for (1) certain transactions accounted for as secured borrowings and (2) transfers accounted for as sales when the transferor also retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. This amendment update is effective for year-end periods beginning after December 15, 2014 and early application is not permitted. The adoption of ASU 2014-11 did not have a material impact on our financial condition, liquidity or results of operations. Recent Accounting Guidance Not Yet Adopted Accounting Standards Update No 2014-09, Revenue from Contracts with Customers (ASU 2014-09), provides guidance for revenue recognition. This ASU 2014-09’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods or services. The guidance was originally effective for annual reporting periods of public entities beginning on or after December 15, 2016, including interim periods within that reporting period. To allow entities additional time to implement systems, gather data and resolve implementation questions, the FASB issued ASU No. 2015-14, Revenue From Contracts with Customers – Deferral of the Effective Date , in August 2015, to defer the effective date of ASU No. 2014-09 for one year. The company is currently assessing the potential impact of the adoption of ASU 2014-09 on the consolidated financial statements. 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), requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. The adoption of ASU 2014-12 is not expected to have a material impact on our financial condition, liquidity or results of operations. Accounting Standards Update No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15), creates a consistency in the disclosures made by an entity when there is doubt that the entity will continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016. The adoption of ASU 2014-15 is not expected to have a material impact on our financial condition, liquidity or results of operations. Accounting Standards Update 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (ASU 2015-01), eliminates the concept of extraordinary items from GAAP. ASU 2015-01 is effective for fiscal years beginning after December 15, 2015. The adoption of ASU 2015-01 is not expected to have a material impact on our financial condition, liquidity or results of operations. Accounting Standards Update 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (ASU 2015-02), changes the analysis that a reporting entity must perform when deciding to consolidate a legal entity. This amendment changes the evaluation of whether limited partnerships are variable interest entities or voting interest entities and eliminates the presumption that a general partner should consolidate a limited partnership. This amendment also changes the analysis for entities that are involved with variable interest entities and provides an exception for companies with interests in entities that are required to comply with requirements of the Investment Company Act of 1940 for registered money market funds. The amendment is effective for fiscal years and interim periods beginning after December 15, 2015. The adoption of ASU 2015-12 is not expected to have a material impact on our financial condition, liquidity or results of operations. Accounting Standards Update 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), requires that debt issuance costs be included in the carrying value of the related debt liability, when recognized, on the face of the balance sheet. This amendment is effective for fiscal years beginning after December 15, 2015. The adoption of ASU 2015-03 will be limited to balance sheet reclassification, and will not impact the Company's financial condition, liquidity or results of operations. Also, ASU 2015-15 Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements further expands ASU 2015-03 for presentation and disclosure in the financial statements. ASU 2015-15 amends Subtopic 835-30 to include that the SEC would not object to the deferral and presentation of debt issuance costs as an asset and subsequent amortization of the deferred costs over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. Accounting Standards Update 2015-05, Intangibles — Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (ASU 2015-05), was created to eliminate diversity in the reporting of fees paid by a customer in a cloud computing arrangement caused by lack of guidance. This update provides that if a cloud computing arrangement includes a software license, the license element should be accounted for as other acquired software licenses. If the cloud computing arrangement does not include a software license, then the fees should be accounted for as a service contract. This amendment is effective for annual periods beginning after December 15, 2015. The adoption of ASU 2015-05 is not expected to have a material impact on our financial condition, liquidity or results of operations. Accounting Standards Update 2016-02, Lease, requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. For calendar-year public business entities and certain calendar-year not-for-profit entities and employee benefit plans, the guidance is effective in 2019, and interim periods within that year. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include unrestricted cash on hand and other highly liquid investments having an original maturity of less than three months. |
Restricted Cash | Restricted Cash Restricted cash comprises three components. With respect to Originations, 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 Servicing, the restricted cash includes cash received from borrowers or investors on loans pledged to advance facilities. In addition, the Servicing restricted cash relates to advance facilities structured as special purposes entities. |
Advances, Net | Advances, Net The Company will advance funds when the borrower fails to meet contractual payments (e.g., principal, interest, property taxes, insurance). The Company will also advance funds to maintain, report and market foreclosed real estate properties on behalf of investors. Advances are recovered from borrowers for reinstated and performing loans and from investors for foreclosed loans. Per the servicing agreements, the Company is only obligated to advance funds to extent that such advances are recoverable. Nationstar may also acquire servicer advances in conjunction with the acquisition of Mortgage Servicing Rights (MSRs). Acquired servicer advances are recorded at their relative fair value amounts on the acquisition date, and any recorded discounts are accreted into interest income on a cost recovery method as the related servicer advances are recovered either through repayment from the borrower, liquidation of the underlying mortgage loans, or through a modification and recovery of the outstanding servicer advance balance from the securitization trust. When Nationstar has determined that, based on all available information, it is probable that a loss has been incurred, and that all contractual amounts due will not be recovered, an impairment is recognized through the recording of a valuation allowance. Any changes to the valuation allowance are recorded through general and administrative expenses. |
Mortgage Loans Held for Sale and Net Gain on Mortgage Loans Held for Sale | Mortgage Loans Held for Sale Nationstar has elected to measure newly originated prime residential mortgage loans held for sale at fair value. Nationstar estimates fair value 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 newly originated prime residential mortgage loans held for sale at fair value, Nationstar is not permitted to defer the loan originations fees, net of direct loan originations costs associated with these loans. In addition, the Company may at times repurchase loans that were previously transferred to Ginnie Mae if that loan meets certain criteria, including being delinquent greater than 90 days. Nationstar has also elected to measure these repurchased loans at fair value. At times, Nationstar may acquire loans that it services through the exercise of clean-up calls. These loans are carried at the lower of cost or fair value. 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 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 Investment, Net | Mortgage Loans Held for Investment, Net Mortgage loans held for investment primarily consist of nonconforming or subprime mortgage loans securitized which serve as collateral for the issued debt. These loans were transferred in 2009 from mortgage loans held for sale at fair value on the transfer date, as determined by the present value of expected future cash flows, with no valuation allowance recorded. 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. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at transfer are recognized as a yield adjustment or as a loss accrual or a valuation allowance. 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. An allowance for loan losses 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 | Reverse Mortgage Interests Reverse mortgages (known as Home Equity Conversion Mortgages or HECMs) provide seniors (62 and older) with a loan secured by their home. Nationstar records acquired reverse mortgage interests assets and obligations assumed at relative fair value on the acquisition date. Any premium or discount associated with the recording of the funded advances is accreted into interest income as the underlying HECMs are liquidated. Nationstar is obligated in its capacity as servicer to fund future borrower obligations, which include fees paid to taxing authorities for borrowers' unpaid taxes and insurance, mortgage insurance premiums and payments made to borrowers for line of credit draws on reverse mortgages. In addition, Nationstar capitalizes the servicing fees and interest income it earns for servicing the reverse mortgage interests. These payments funded by Nationstar are recorded as reverse mortgage interests on the Company's consolidated balance sheets. Nationstar includes the cash outflow from funding these payments as operating activities as a component of reverse mortgage interests. The securitization cash inflow is reported as a financing activity as a component of the change in interest financing and reverse mortgage interests in the consolidated statements of cash flows. Nationstar receives a monthly servicing fee, which is recorded as either interest income or servicing fee income on the consolidated statements of operations and comprehensive income based upon if the related advance was either funded by or acquired by Nationstar. Interest income is accrued monthly based upon the borrower interest rate applied to the HECM outstanding principal balance of reverse mortgage interests. 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. Issuers of HECMs are responsible for repurchasing any loans out of the HMBS pool when the outstanding principal balance of the related HECM loan is equal to or greater than 98% of the lesser of the appraised value of the underlying property at origination or $625 thousand . When Nationstar determines that a loss on the balance of the reverse mortgage interests is probable and that the carrying balance may be partially or fully uncollectible, reserves are established by recording a provision which is include in general and administrative expenses of the consolidated statements of operations and comprehensive income. |
Mortgage Servicing Rights (MSRs) | Mortgage Servicing Rights (MSRs) Nationstar recognizes the rights to service mortgage loans for others, or MSRs, as assets whether purchased or as a result of the sale of loans Nationstar originates. Nationstar initially record all of our MSRs at fair value. MSRs related to reverse mortgages are subsequently measured at lower of cost or market (LOCOM). For MSRs recorded 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 these loans. Nationstar receives a base servicing fee ranging from 0.21% to 0.50% annually on the remaining outstanding principal balances of the loans. The servicing fees are collected from investors. Nationstar determines the fair value of the MSRs by the use of a discounted cash flow model that 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 nature 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. Additionally, Nationstar owns servicing rights for reverse mortgage loans. For this class of servicing rights, Nationstar applies the amortization method (or LOCOM) with the capitalized cost of the MSRs amortized in proportion and over the period of the estimated net future servicing income and recognized as an adjustment to service related revenue. The expected period of the estimated net servicing income is based, in part, on the expected prepayment period of the underlying reverse mortgages. This class of MSRs is periodically evaluated for impairment. For purposes of measuring impairment, MSRs are stratified based on predominant risk characteristics of the underlying serviced loans. These risk characteristics include loan type (fixed or adjustable rate), term and interest rate. Impairment, if any, represents the excess of amortized cost of an individual stratum over its estimated fair value and is recognized through a valuation allowance. |
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 that are accounted for as financings, with the total proceeds being recorded as a component of MSR related liabilities - nonrecourse on the consolidated balance sheets. Nationstar determines the effective interest rate on these liabilities and allocates total payments between interest expense and a portion as a reduction to the total outstanding liability. Under these agreements, Nationstar sold to a third party 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. 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 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 for similar financial instruments. Mortgage Servicing Rights Financing From time to time, Nationstar will enter into certain transactions with third parties to sell certain mortgage servicer rights and servicer advances under specified terms. Nationstar evaluates these transactions to determine if they are sales or structured financing arrangements. 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, 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 financings at fair value with all changes in fair value recorded as a charge or credit to service related revenue 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 certain of these funded advances through issuance of Home Equity Conversion Mortgage Backed Securities (HMBS) to third-party security holders which are guaranteed by GNMA. These transfers of funded advances into HMBS are accounted for as secured borrowings with the HMBS presented as participating interest financing included within other nonrecourse debt on the Company's consolidated balance sheets. Issue premiums and/or discounts are deferred as a component of the participating interest financing and amortized to interest expense over the life of the HMBS on an effective interest method. |
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 include 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 servicer 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. 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. We did not record any impairment losses to our property and equipment during 2015, 2014 and 2013. 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 consists of securitization trusts established for a limited purpose. Generally, these SPEs are formed for the purpose of securitization transactions in which Nationstar transfers assets to an SPE, which then issues to investors various forms of debt obligations supported by those assets. In these securitization transactions, Nationstar typically receives cash and/or other interests in the SPE as proceeds for the transferred assets. Nationstar will typically retain the right to service the transferred receivables and to repurchase the transferred receivables from the SPE if the outstanding balance of the receivables falls to a level where the cost exceeds the benefits of servicing the transferred receivables. 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, 2015, 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 our 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 Note 3, Mortgage Servicing Rights and Related Liabilities, for additional information regarding advances and MSRs. Financings We transfer advances on loans serviced for others to SPEs in exchange for cash. Nationstar consolidates these SPEs because the transfers do not qualify for sales accounting treatment or 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 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. Nationstar has issued pools of HMBS to third-party investors collateralized by advances on the related HECM loans. These transactions are accounted for as secured borrowings within reverse mortgage interests and the related financing included in other nonrecourse debt in the consolidated financial statements of Nationstar. Occasionally, Nationstar will transfer reverse mortgage interests into private securitization trusts (Reverse Trusts). Nationstar evaluates these Reverse Trusts to determine whether they meet the definition of a Variable Interest Entity (VIE), and when the Reverse Trust meets the definition of a VIE and the Company determines that it is the primary beneficiary, Nationstar will include the assets and liabilities of the Reverse Trust in its consolidated financial statements, with the securitized reverse mortgage interests being retained on its balance sheet and recognizing the issued securities in other nonrecourse debt. The reverse mortgage interests are carried at amortized cost, less an allowance for probable loss. |
Derivative Financial Instruments | Derivative Financial Instruments Nationstar recognizes all derivatives on its consolidated balance sheets at fair value. On the date the Company enters into a derivative contract, it designates and documents each derivative contract as either a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge) or a derivative instrument not designated as a hedging instrument. To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. Nationstar assesses and documents quarterly the extent to which a derivative has been and is expected to continue to be effective in offsetting the changes in the fair value or the cash flows of the hedged item. To assess effectiveness, Nationstar uses statistical methods, such as regression analysis, as well as non-statistical methods including dollar-offset analysis. For a fair value hedge, Nationstar records changes in the fair value of the derivative and, to the extent that it is effective, changes in the fair value of the hedged asset or liability attributable to the hedged risk, in the same financial statement category as the hedged item on the face of the statement of operations and comprehensive income (loss). For a cash flow hedge, to the extent that it is effective, Nationstar records changes in the estimated fair value of the derivative in other comprehensive income. Nationstar subsequently reclassifies these changes in estimated fair value to net income in the same period, or periods, that the hedged transaction affects earnings and in the same financial statement category as the hedged item. For a derivative instrument not designated as a hedging instrument, the Company reports changes in the fair values in current period other income (expense), net, on our consolidated statements of operations and comprehensive income. The Company currently has no derivatives designated as a hedging instrument. |
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 and subsequently evaluated for impairment. Nationstar tests goodwill for impairment at least annually, as of October 1st and more often if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its net carrying value. Nationstar has the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. Factors that the Company considers 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. 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 required to be evaluated at least annually for impairment. 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. Nationstar amortizes finite lived intangible assets acquired in a business combination over their estimated useful life. On an annual basis, the Company evaluates whether there has been a change in the estimated useful life or if certain impairment indicators exist. |
Loans Subject to Repurchase Rights from Ginnie Mae | Loans Subject to Repurchase Rights from Ginnie Mae For certain forward loans that Nationstar sold to Ginnie Mae, Nationstar as the issuer has the unilateral right to repurchase without Ginnie Mae’s prior authorization any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Once Nationstar has the unilateral right to repurchase a delinquent loan, Nationstar has effectively regained control over the loan, and under GAAP, must re-recognize the loan on its consolidated balance sheets and establish a corresponding repurchase liability regardless of Nationstar’s intention to repurchase the loan. |
Interest Income | Interest Income Interest income is recognized using the interest method. Revenue accruals for individual loans are suspended and accrued amounts reversed when the mortgage loan becomes contractually delinquent for 90 days or more. Delinquency payment status is based on the most recently received payment from the borrower. The accrual is resumed when the individual mortgage loan becomes less than 90 days contractually delinquent. 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 (1) interest earned on custodial cash deposits associated with the mortgage loans serviced and (2) originations income, net of originations costs and other revenues derived from the origination of mortgage loans, which is recognized over the life of a mortgage loan held for investment or recognized when the related loan is sold to a third party purchaser. |
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. Generally, the contract terms for these services are relatively short in duration, and Nationstar recognizes revenue as the services are performed either on a per unit or a fixed price basis. Service related revenues include contractually specified servicing fees, late charges, prepayment penalties and other ancillary revenues. Nationstar recognizes servicing and ancillary revenues as they are earned, which is generally upon collection of the payments from the borrower. In addition, Nationstar also 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 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 when Nationstar has completed all necessary steps and the loans have performed for the minimum required 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. Interest and servicing fees collected on reverse mortgage interests are included as a component of either interest income or service related revenues based on whether Nationstar acquired the related borrower draws from a predecessor servicer or funded borrower draws under its obligation to service the related Home Equity Conversion Mortgages (HECMs) subsequent to the acquisition of the rights to service these loans. |
Reserves for Loan Origination and Servicing Activity | Reserves for Loan Origination and Servicing Activity Nationstar provides for reserves in connection with loan origination and loan servicing activities which are charged to earnings. 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 a component of net gain on sale of loans held for sale. In connection with loan servicing activities, Nationstar records reserves principally for advance curtailment, interest claims, compensatory fees and mortgage insurance claims. Servicing reserves for receivables associated with loans that have been liquidated out of the servicing portfolio are recorded as a contra-receivable based on the nature of the underlying collateral and whether amounts have been claimed from various servicing counterparties. Servicing reserves associated with loans that have not yet been liquidated from the servicing portfolio are recorded as a component of the MSR fair value via the cost to service assumption. The provision for loan servicing activities is a component of either servicing related revenue or general and administrative expenses based on whether or not the underlying loan collateral has been liquidated from the servicing portfolio. Nationstar utilizes internal models to estimate reserves for loan origination and loan servicing activities. Key assumptions used in these models include but are not limited to interest rates, borrower characteristics, historical losses, current delinquencies, time to a foreclosure sale, characteristics of a mortgage loan or pool, estimated costs of foreclosure action, future tax payments, the value of the underlying property net of carrying costs, commissions and closing costs and other Nationstar and macro-economic factors. On a quarterly basis, management corroborates these assumptions using third party data. |
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 payments on the grant date. The amount of compensation is measured at the fair value of the awards when granted and this cost is expensed over the required service period, which is normally the vesting period of the award, and is included as a component of 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 losses to recoup taxes previously paid, length of statutory carryforward periods, experience with operating 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 how companies should recognize, measure, present, and disclose in their financial statements 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 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, 2015 and 2014, 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. Dilutive potential common shares represent outstanding restricted stock. |
Mortgage Servicing Rights (MS34
Mortgage Servicing Rights (MSR) and Related Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Transfers and Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | The following table provides a breakdown of the total credit and interest sensitive unpaid principal balances (UPBs) for Nationstar's forward owned MSRs. December 31, 2015 December 31, 2014 UPB Fair Value UPB Fair Value Credit sensitive $ 224,334,415 $ 2,016,617 $ 241,769,601 $ 1,919,290 Interest sensitive 121,341,842 1,341,710 91,843,044 1,030,449 Total $ 345,676,257 $ 3,358,327 $ 333,612,645 $ 2,949,739 The activity of MSRs carried at fair value is as follows for the dates indicated: For the year ended December 31, MSRs - Fair Value 2015 2014 Fair value at the beginning of the period $ 2,949,739 $ 2,488,283 Additions: Servicing resulting from transfers of financial assets 221,762 238,292 Purchases of servicing assets 729,984 470,543 Dispositions: Dispositions (46,168 ) — Changes in fair value: Due to changes in valuation inputs or assumptions used in the valuation model (58,150 ) 87,434 Other changes in fair value (438,840 ) (334,813 ) Fair value at the end of the period $ 3,358,327 $ 2,949,739 MSRs and Related Liabilities For the year ended December 31, 2015 2014 MSRs - fair value $ 3,358,327 $ 2,949,739 MSRs - LOCOM 8,646 11,582 Mortgage servicing rights 3,366,973 2,961,321 Mortgage servicing liabilities 25,260 65,382 Excess spread financing - fair value 1,232,086 1,031,035 Mortgage servicing rights financing liability - fair value 68,696 49,430 MSR related liabilities (nonrecourse) $ 1,300,782 $ 1,080,465 |
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, 2015 December 31, 2014 Discount rate 11.6 % 12.0 % Total prepayment speeds 16.5 % 18.6 % Expected weighted-average life 5.9 years 5.4 years Interest Sensitive December 31, 2015 December 31, 2014 Discount rate 9.1 % 9.1 % Total prepayment speeds 12.4 % 11.3 % Expected weighted-average life 6.1 years 6.5 years The range of various assumptions used in Nationstar's valuation of excess spread financing were as follows: Excess Spread Financing Prepayment Speeds Average Life (Years) Discount Rate Recapture Rate For the year ended December 31, 2015 Low 7.4 % 4.2 years 8.5 % 6.8 % High 17.1 % 7.8 years 14.1 % 30.0 % Weighted-average 11.6 % 5.9 years 11.2 % 17.7 % For the year ended December 31, 2014 Low 6.2 % 4.0 years 8.5 % 6.7 % High 19.4 % 7.1 years 14.2 % 31.3 % Weighted-average 12.5 % 5.6 years 11.5 % 16.8 % The weighted average assumptions used in the valuation of mortgage servicing rights financing liability were as follows: December 31, 2015 December 31, 2014 Advance financing rates 3.0 % 2.8 % Annual advance recovery rates 20.9 % 27.6 % The following table provides a breakout of revenue associated with servicing assets and liabilities. For the year ended December 31, Service Fee Income 2015 2014 2013 Contractually specified servicing fees $ 1,166,415 $ 1,123,820 $ 926,949 Incentive and modification income 106,778 128,993 107,839 Late fees 69,565 64,616 59,365 Other service-related income 128,402 128,176 120,854 Remittances to counterparties for contractual transfer of servicing assets (301,044 ) (319,902 ) (148,338 ) Mark-to-market (115,356 ) 56,168 246,101 Amortization (240,052 ) (158,721 ) (126,625 ) Total servicing fee income $ 814,708 $ 1,023,150 $ 1,186,145 |
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block] | The following table shows the hypothetical effect on the fair value of excess spread financing using certain unfavorable variations of the expected levels of key assumptions used in valuing these liabilities at the dates indicated: Discount Rate Total Prepayment Speeds 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change For the year ended December 31, 2015 Excess spread financing $ 41,806 $ 86,791 $ 36,530 $ 76,373 For the year ended December 31, 2014 Excess spread financing $ 36,632 $ 75,964 $ 33,618 $ 70,379 The following table shows the hypothetical effect on the fair value of the MSRs using certain unfavorable variations of the expected levels of key assumptions used in valuing these assets at December 31, 2015 and 2014: Discount Rate Total Prepayment Speeds 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change December 31, 2015 Mortgage servicing rights $ (123,115 ) $ (237,779 ) $ (132,277 ) $ (253,028 ) December 31, 2014 Mortgage servicing rights $ (110,900 ) $ (207,295 ) $ (112,603 ) $ (199,078 ) |
Activity of MSRs at Amortized Cost | The activity of MSRs carried at amortized cost is as follows for the date indicated: For the year ended December 31, 2015 2014 Assets Liabilities Assets Liabilities Activity of MSRs - LOCOM Balance at the beginning of the period $ 11,582 $ 65,382 $ 14,879 $ 82,521 Additions: Purchase/assumptions of servicing rights/obligations — — — — Deductions: Amortization/accretion (2,936 ) (40,122 ) (3,297 ) (17,139 ) Balance at end of the period $ 8,646 $ 25,260 $ 11,582 $ 65,382 Fair value at end of period $ 28,962 $ 9,137 $ 34,225 $ 55,388 |
Schedule of Fees Earned in Exchange for Servicing Financial Assets | For the year ended December 31, Service Fee Income 2015 2014 2013 Contractually specified servicing fees $ 1,166,415 $ 1,123,820 $ 926,949 Incentive and modification income 106,778 128,993 107,839 Late fees 69,565 64,616 59,365 Other service-related income 128,402 128,176 120,854 Remittances to counterparties for contractual transfer of servicing assets (301,044 ) (319,902 ) (148,338 ) Mark-to-market (115,356 ) 56,168 246,101 Amortization (240,052 ) (158,721 ) (126,625 ) Total servicing fee income $ 814,708 $ 1,023,150 $ 1,186,145 |
Advances, Net (Tables)
Advances, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Advances, Net | December 31, 2015 December 31, 2014 Agency $ 1,396,176 $ 1,810,472 Non-agency 826,907 734,227 Total advances, net $ 2,223,083 $ 2,544,699 |
Reverse Mortgage Interests (Tab
Reverse Mortgage Interests (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reverse Mortgage Interest [Abstract] | |
Summary of Reverse Mortgage Interests | December 31, 2015 December 31, 2014 Participating interests $ 5,864,329 $ 1,363,225 Other interests securitized 682,137 341,268 Unsecuritized interests 987,990 752,801 Reserve for servicing losses (20,133 ) (4,225 ) Total reverse mortgage interests $ 7,514,323 $ 2,453,069 |
Mortgage Loans Held for Sale 37
Mortgage Loans Held for Sale and Investment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Mortgage Loans Held for Sale and Investment [Abstract] | |
Schedule of Mortgage Loans Held-for-Sale | Mortgage loans held for sale consist of the following for the dates indicated: December 31, 2015 December 31, 2014 Mortgage loans held for sale – unpaid principal balance $ 1,373,607 $ 1,218,596 Mark-to-market adjustment (1) 56,084 59,335 Total mortgage loans held for sale $ 1,429,691 $ 1,277,931 (1) The mark-to-market adjustment is reflected in net gain on mortgage loans held for sale in our 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, 2015 December 31, 2014 Mortgage Loans Held for Sale - Unpaid Principal Balance UPB Fair Value UPB Fair Value Non-accrual $ 31,390 $ 28,996 $ 31,968 $ 26,022 The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was as follows for the dates indicated: Mortgage Loans Held for Sale - Unpaid Principal Balance December 31, 2015 December 31, 2014 Foreclosure $ 16,174 $ 17,493 |
Reconciliation of Mortgage Loans Held-for-Sale to Cash Flow | A reconciliation of the changes in mortgage loans held for sale for the dates indicated is presented in the following table: For the year ended December 31, 2015 December 31, 2014 Mortgage loans held for sale – beginning balance $ 1,277,931 $ 2,603,380 Mortgage loans originated and purchased, net of fees 17,971,304 16,910,185 Repurchase of loans out of Ginnie Mae securitizations 1,827,202 3,648,120 Claims made to third parties (1) (60,780 ) (169,630 ) Proceeds on sale of and payments of mortgage loans held for sale (20,026,079 ) (22,105,165 ) Gain on sale of mortgage loans (2) 440,113 391,041 Mortgage loans held for sale – ending balance $ 1,429,691 $ 1,277,931 (1) This is comprised of claims made on certain government guaranteed mortgage loans upon foreclosure based on the adoption of ASU 2014-14. (2) The gain on sale of mortgage loans is reflected in net gain on mortgage loans held for sale on our consolidated statements of operations and comprehensive income. |
Schedule of Loans Held for Investment | Mortgage loans held for investment, net as of the dates indicated include: December 31, 2015 December 31, 2014 Mortgage loans held for investment, net – unpaid principal balance $ 250,033 $ 276,820 Transfer discount: Accretable (14,631 ) (15,503 ) Non-accretable (58,203 ) (66,217 ) Allowance for loan losses (3,549 ) (3,531 ) Total mortgage loans held for investment, net $ 173,650 $ 191,569 The total UPB of mortgage loans held for investment for which the Company has begun formal foreclosure proceedings was as follows for the dates indicated: Mortgage Loans Held for Investment - Unpaid Principal Balance December 31, 2015 December 31, 2014 Foreclosure $ 41,406 $ 52,769 |
Changes in Accretable Yield on Mortgage Loans Held for Investment | The changes in accretable yield on loans transferred to mortgage loans held for investment, net were as follows: For the year ended Accretable Yield December 31, 2015 December 31, 2014 Balance at the beginning of the period $ 15,503 $ 17,362 Accretion (2,727 ) (2,955 ) Reclassifications from nonaccretable discount 1,855 1,096 Balance at the end of the period $ 14,631 $ 15,503 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 December 31, 2014 Range of Estimated Useful Life Furniture, fixtures and equipment $ 40,123 $ 39,561 3 - 5 years Capitalized software costs 102,187 72,673 5 years Long-term capital leases - computer equipment 49,782 48,451 5 years Leasehold improvements 13,043 16,638 3 - 5 years Software in development and other 29,700 21,174 234,835 198,497 Less: Accumulated depreciation and amortization (92,834 ) (69,721 ) Plus: Land 835 835 Total property and equipment, net $ 142,836 $ 129,611 |
Schedule of Future Minimum Lease Payments for Capital Leases | As of December 31, 2015 , future minimum payments for Nationstar's capital leases is presented in table below: Future Minimum Lease Payments 2016 $ 8,852 2017 2,503 2018 190 Thereafter — Total future lease payments 11,545 Less: Imputed interest (191 ) Net capital lease liability $ 11,354 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: December 31, 2015 December 31, 2014 Receivables from trusts, agencies and prior servicers, net (1) $ 229,452 $ 386,166 Accrued revenues 180,036 154,436 Loans subject to repurchase right from Ginnie Mae 117,163 131,592 Goodwill 71,141 54,701 Intangible assets 49,869 19,622 Deferred financing costs 42,850 46,986 Prepaid expenses 19,800 9,837 Receivables from affiliates, net 7,510 4,713 Real estate owned (REO), net 3,595 1,625 Other 37,553 69,214 Total other assets $ 758,969 $ 878,892 |
Schedule of Intangible Assets and Goodwill | The following table presents changes in the carrying amount of goodwill for the periods indicated: December 31, 2015 December 31, 2014 Balance at beginning of period $ 54,701 $ 38,820 Goodwill acquired during the period 23,738 15,881 Goodwill reclassification during the period (7,298 ) — Balance at end of period $ 71,141 $ 54,701 The following tables present our intangible assets for the periods indicated: December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life in Years $ 26,600 $ (5,675 ) $ 20,925 7.7 Customer relationships 20,090 (3,318 ) 16,772 6.6 Purchased intangible software 12,590 (1,416 ) 11,174 5.9 Licenses 557 — 557 Indefinite Noncompete agreement 450 (17 ) 433 3.1 Trademark 8 — 8 Indefinite Total $ 60,295 $ (10,426 ) $ 49,869 6.9 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life in Years Trade name $ 18,595 $ (2,934 ) $ 15,661 8.4 Customer relationships 4,143 (747 ) 3,396 8.2 Licenses 557 — 557 Indefinite Trademark 8 — 8 Indefinite Total $ 23,303 $ (3,681 ) $ 19,622 8.4 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table presents the estimated aggregate amortization expense for the periods indicated: For the year ending December 31, 2016 $ 7,337 2017 7,272 2018 7,272 2019 7,088 2020 6,843 Thereafter 13,492 Total future amortization expense $ 49,304 |
Derivative Financial Instrume40
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following tables provide the outstanding notional balances and fair values of outstanding positions for the dates indicated, and recorded gains/(losses) during the periods indicated: Expiration Dates Outstanding Notional Fair Value Recorded Gains / (Losses) For the year ended December 31, 2015 Assets Mortgage loans held for sale Loan sale commitments 2016 $ 175,570 $ 252 $ 256 Derivative financial instruments IRLCs 2016 2,767,927 89,138 1,236 Forward MBS trades 2016 1,665,894 6,123 5,839 LPCs 2016 387,891 3,872 1,873 Interest rate swaps and caps 2016-2017 845,876 506 (359 ) Eurodollar futures 2016-2021 176,000 60 59 Liabilities Derivative financial instruments IRLCs 2016 2,304 5 2 Forward MBS trades 2016 1,807,418 3,746 14,614 LPCs 2016 314,047 1,454 (1,406 ) Interest rate swaps and caps 2016-2017 12,543 542 (439 ) Eurodollar futures 2016-2021 95,000 76 (69 ) For the year ended December 31, 2014 Assets Mortgage loans held for sale Loan sale commitments 2015 $ 1,666 $ (4 ) $ (11 ) Derivative financial instruments IRLCs 2015 2,556,169 87,902 774 Forward MBS trades 2015 319,112 284 (31,982 ) LPCs 2015 287,089 1,999 1,206 Interest rate swaps and caps 2018 124,650 865 (1,673 ) Eurodollar futures 2015-2017 40,000 1 1 Liabilities Derivative financial instruments IRLCs 2015 865 7 2,691 Forward MBS trades 2015 2,958,700 18,360 (15,055 ) LPCs 2015 30,494 48 1,641 Interest rate swaps and caps 2015 - 2017 105,681 103 731 Eurodollar futures 2015-2017 80,000 7 (7 ) |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | December 31, 2015 December 31, 2014 Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged Advance Facilities MBS advance financing facility LIBOR+2.50% to 4.00% March 2016 Servicing advance receivables $ 130,000 $ 82,208 $ 89,221 $ 363,014 $ 418,126 Securities repurchase facility (2011) (1) LIBOR +3.50% 90 day revolving Nonrecourse debt - legacy assets — — — 34,613 55,603 Nationstar agency advance financing facility (1) LIBOR+1.20% to 3.75% December 2016 Servicing advance receivables 500,000 310,316 364,352 805,706 885,115 MBS advance financing facility (2012) LIBOR+5.00% April 2016 Servicing advance receivables 50,000 50,000 69,942 42,472 50,758 Nationstar mortgage advance receivable LIBOR+2.00% June 2016 Servicing advance receivables 500,000 335,408 394,100 419,170 471,243 MBS servicer advance facility (2014) LIBOR+3.50% August 2016 Servicing advance receivables 125,000 105,657 185,392 79,084 138,010 Nationstar servicer advance receivables trust 2014 - BC (3) LIBOR+1.50% to 3.00% November 2015 Servicing advance receivables — — — 106,115 121,030 Nationstar Agency Advance Receivables Trust (4) LIBOR + 2.00 % October 2017 Servicing advance receivables 1,400,000 762,534 822,504 — — Securities repurchase facility (2014) (6) LIBOR+1.50% to 2.00% November 2017 Securities — — — 51,609 74,525 $ 1,646,123 $ 1,925,511 $ 1,901,783 $ 2,214,410 December 31, 2015 December 31, 2014 Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged Warehouse Facilities $1.3 billion warehouse facility LIBOR+2.00% to 2.875% October 2016 Mortgage loans or MBS $ 1,300,000 $ 633,694 $ 677,775 $ 663,167 $ 697,257 $1.0 billion warehouse facility LIBOR+1.75% to 3.25% June 2016 Mortgage loans or MBS 1,000,000 544,951 621,526 307,294 320,285 $500 million warehouse facility LIBOR+1.75% to 2.75% September 2016 Mortgage loans or MBS 500,000 174,702 178,923 176,194 179,994 $500 million warehouse facility LIBOR+ 2.00% to 2.50% November 2016 Mortgage loans or MBS 500,000 257,479 274,497 183,290 192,990 $350 million warehouse facility LIBOR+2.20% to 4.50% March 2016 Mortgage loans or MBS 350,000 97,790 111,541 210,049 223,849 $200 million warehouse facility LIBOR+1.50% April 2016 Mortgage loans or MBS 200,000 8,531 9,052 — — $300 million Warehouse Facility LIBOR + 2.25% December 2016 Mortgage loans or MBS 300,000 23,014 27,769 — — $200 million Warehouse Facility LIBOR + 2.75% to 3.875% November 2016 Mortgage loans or MBS 200,000 45,106 50,083 — — $75 million warehouse facility (HCM) (5) LIBOR+ 2.25% to 2.875% October 2016 Mortgage loans or MBS 75,000 53,102 59,563 23,949 29,324 $100 million warehouse facility (HCM) LIBOR + 2.50% to 2.75% November 2016 Mortgage loans or MBS 100,000 55,157 60,581 8,679 9,044 $ 1,893,526 $ 2,071,310 $ 1,572,622 $ 1,652,743 Mortgage loans $ 1,542,663 $ 1,681,352 $ 1,196,956 $ 1,241,043 Reverse mortgage interests $ 350,863 $ 389,958 $ 375,666 $ 411,700 (1) This facility was refinanced as part of the $1.0 billion warehouse facility (2) This facility has both variable funding notes (VFN) and term notes. Nationstar issued $300.0 million in term notes to institutional investors of which $100.0 million remains outstanding. The notes have a weighted average interest rate of 2.1% and a weighted average term of 5 years . (3) During the fourth quarter of 2015, Nationstar elected to refinance the collateral in the Nationstar servicer advance receivables trust 2014-BC (NSART) into the Nationstar mortgage advance receivables trust (NMART) utilizing excess capacity. Terms were unchanged for NMART and NSART was closed as a result. (4) During the fourth quarter of 2015, Nationstar created a new variable interest entity called the Nationstar Advance Agency Receivables Trust, with $1.4 billion of borrowing capacity. (5) This facility is a sublimit of the $1.3 billion facility specific to Home Community Mortgage (HCM). (6) This facility was reclassed from advance to warehouse during 2015. A summary of the balances of unsecured senior notes is presented below: December 31, 2015 December 31, 2014 $475 million face value, 6.500% interest rate payable semi-annually, due August 2018 $ 475,000 $ 475,000 $375 million face value, 9.625% interest rate payable semi-annually, due May 2019 362,750 378,555 $400 million face value, 7.875% interest rate payable semi-annually, due October 2020 400,448 400,541 $600 million face value, 6.500% interest rate payable semi-annually, due July 2021 596,955 605,135 $300 million face value, 6.500% interest rate payable semi-annually, due June 2022 213,541 300,000 Total $ 2,048,694 $ 2,159,231 A summary of the balances of other nonrecourse debt is presented below: December 31, 2015 December 31, 2014 Participating interest financing $ 5,947,407 $ 1,433,145 2014-1 HECM securitization 226,851 259,328 2015-1 HECM securitization 222,495 — 2015-2 HECM securitization 209,030 — Nonrecourse debt - legacy assets 64,815 75,838 Total $ 6,670,598 $ 1,768,311 |
Schedule of Maturities of Long-term Debt | As of December 31, 2015 , the expected maturities of Nationstar's unsecured senior notes based on contractual maturities are as follows: Year Amount 2015 $ — 2016 — 2017 — 2018 475,000 2019 362,750 Thereafter 1,210,944 Total $ 2,048,694 |
Payables and Accrued Liabilit42
Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Payables and Accrued Liabilities | Payables and accrued liabilities consist of the following: December 31, 2015 December 31, 2014 Payables to servicing and subservicing investors $ 483,535 $ 329,306 Loans subject to repurchase from Ginnie Mae 117,163 131,592 Accrued bonus and payroll 96,381 85,366 Payables to GSEs 87,748 67,311 Taxes 81,102 96,237 Payable to insurance carriers and insurance cancellation reserves 69,936 163,381 Accrued interest 61,071 59,708 Repurchase reserves 26,404 29,165 Payables to securitization trusts 24,910 99,137 MSR purchases payable including advances 21,851 45,697 Other 226,286 215,178 Total payables and accrued liabilities $ 1,296,387 $ 1,322,078 |
Schedule of Loans Subject to Repurchase Reserve | The activity of the outstanding repurchase reserves were as follows: December 31, 2015 2014 Repurchase reserves, beginning of period $ 29,165 $ 40,695 Provision 9,781 12,556 Charge-offs and release (12,542 ) (24,086 ) Repurchase reserves, end of period $ 26,404 $ 29,165 |
Securitizations and Financings
Securitizations and Financings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities and Securitizations [Abstract] | |
Schedule of Assets and Liabilities of VIEs Included in Financial Statements | Details of the securitization structured as a sale are shown below for the periods indicated: Sale Date Net Bond Proceeds Carrying Value of Loans Sold Gain Recognized Nationstar Mortgage-Backed Notes, Series 2013-A 2013 $ 164,297 $ 158,204 $ 6,093 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, 2015 December 31, 2014 Total collateral balances $ 3,113,784 $ 3,258,472 Total certificate balances 2,810,903 3,297,256 A summary of mortgage loans transferred by Nationstar to unconsolidated securitization trusts that are 60 days or more past due and the credit losses incurred in the unconsolidated securitization trusts are presented below: Principal Amount of Loans 60 Days or More Past Due December 31, 2015 December 31, 2014 Unconsolidated securitization trusts $ 727,879 $ 861,419 For the year ended December 31, Credit Losses 2015 2014 2013 Unconsolidated securitization trusts $ 215,983 $ 275,726 $ 251,076 Certain cash flows received from securitization trusts related to the transfer of mortgage loans accounted for as sales for the dates indicated were as follows: For the year ended December 31, 2015 2014 2013 Servicing Fees Loan Servicing Fees Loan Servicing Fees Loan Unconsolidated securitization trusts $ 24,233 $ — $ 28,284 $ — $ 29,151 $ — 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, 2015 December 31, 2014 Transfers Reverse Secured Borrowings Transfers Reverse Secured Borrowings Assets Restricted cash $ 94,361 $ 36,089 $ 90,068 $ 15,578 Reverse mortgage interests — 6,546,466 — 1,704,492 Advances 1,580,966 — 1,477,388 — Mortgage loans held for investment, net 172,810 — 189,456 — Derivative financial instruments 7 — 865 — Other assets 4,538 — 2,678 — Total assets $ 1,852,682 $ 6,582,555 $ 1,760,455 $ 1,720,070 Liabilities Advance facilities $ 1,408,258 $ — $ 1,330,991 $ — Payables and accrued liabilities 2,116 665 1,596 186 Nonrecourse debt–legacy assets 64,815 — 75,838 — 2014-1 HECM securitization — 226,851 — 259,328 2015-1 HECM securitization — 222,495 — — 2015-2 HECM securitization — 209,030 — — Participating interest financing — 5,947,407 — 1,433,145 Total liabilities $ 1,475,189 $ 6,606,448 $ 1,408,425 $ 1,692,659 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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: For the year ended December 31, 2015 2014 2013 Current Federal $ 59,218 $ 46,381 $ 4,636 State 3,534 7,608 (1,059 ) 62,752 53,989 3,577 Deferred Federal (50,426 ) 6,360 114,466 State (1,314 ) 4,511 11,157 (51,740 ) 10,871 125,623 Total $ 11,012 $ 64,860 $ 129,200 |
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% as follows for the period indicated: For the year ended December 31, 2015 2014 2013 Tax Expense at Federal Statutory Rate $ 18,961 35.0 % $ 100,058 35.0 % $ 121,186 35.0 % Effect of: State taxes, net of federal benefit (208 ) (0.4 )% 8,330 2.9 % 5,465 1.6 % Noncontrolling interest (1,488 ) (2.7 )% (126 ) — % 42 — % Increase/(decrease) of valuation allowance (3,273 ) (6.1 )% (40,275 ) (14.1 )% 1,099 0.3 % Deferred adjustments (5,484 ) (10.1 )% (1,477 ) (0.5 )% 1,046 0.3 % Current payable adjustments 2,209 4.0 % (2,058 ) (0.8 )% — — % Other, net 295 0.6 % 408 0.2 % 362 0.1 % Total income tax expense $ 11,012 20.3 % $ 64,860 22.7 % $ 129,200 37.3 % |
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: For the year ended December 31, 2015 2014 Deferred Tax Assets Effect of: Loss carryforwards (federal, state & capital) $ 63,957 $ 67,799 Loss reserves 56,587 41,467 Reverse mortgage premiums 25,903 26,227 Rent expense 6,218 2,138 Restricted share based compensation 8,848 7,806 Accruals 14,603 3,354 Goodwill and intangible assets — 994 Other, net 9,066 9,201 Total deferred tax assets 185,182 158,986 Deferred Tax Liabilities MSR amortization and mark-to-market, net (197,763 ) (228,987 ) Depreciation and amortization, net (38,477 ) (32,564 ) Prepaid assets (2,549 ) (889 ) Goodwill and intangible assets (5,565 ) — Total deferred tax liabilities (244,354 ) (262,440 ) Valuation allowance (3,907 ) (6,391 ) Net deferred tax liability $ (63,079 ) $ (109,845 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The estimated carrying amount and fair value of Nationstar’s financial instruments and other assets and liabilities measured at fair value on a recurring basis is as follows for the dates indicated: December 31, 2015 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,429,691 $ — $ 1,429,691 $ — Mortgage servicing rights (1) 3,358,327 — — 3,358,327 Derivative financial instruments: IRLCs 89,138 — 89,138 — Forward MBS trades 6,123 — 6,123 — LPCs 3,872 — 3,872 — Interest rate swaps and caps 506 — 506 — Eurodollar futures 60 — 60 — Total assets $ 4,887,717 $ — $ 1,529,390 $ 3,358,327 Liabilities Derivative financial instruments IRLCs $ 5 $ — $ 5 $ — Interest rate swaps and caps 542 — 542 — Forward MBS trades 3,746 — 3,746 — LPCs 1,454 — 1,454 — Eurodollar futures 76 — 76 — Mortgage servicing rights financing 68,696 — — 68,696 Excess spread financing 1,232,086 — — 1,232,086 Total liabilities $ 1,306,605 $ — $ 5,823 $ 1,300,782 December 31, 2014 Recurring Fair Value Measurements Total Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,277,931 $ — $ 1,277,931 $ — Mortgage servicing rights (1) 2,949,739 — — 2,949,739 Other assets: IRLCs 87,902 — 87,902 — Forward MBS trades 284 — 284 — LPCs 1,999 — 1,999 — Interest rate swaps and caps 865 — 865 — Eurodollar futures 1 — 1 — Total assets $ 4,318,721 $ — $ 1,368,982 $ 2,949,739 Liabilities Derivative financial instruments IRLCs $ 7 $ — $ 7 $ — Interest rate swaps and caps 103 — 103 — Forward MBS trades 18,360 — 18,360 — LPCs 48 — 48 — Eurodollar futures 7 — 7 — Mortgage servicing rights financing 49,430 — — 49,430 Excess spread financing 1,031,035 — — 1,031,035 Total liabilities $ 1,098,990 $ — $ 18,525 $ 1,080,465 (1) Based on the nature and risks of these assets and liabilities, the Company has determined that presenting them as a single class is appropriate. |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The table below presents a reconciliation for all of Nationstar’s Level 3 assets and liabilities measured at fair value on a recurring basis for the dates indicated: Assets Liabilities For the year ended December 31, 2015 Mortgage servicing rights Excess spread financing Mortgage servicing rights financing Beginning balance $ 2,949,739 $ 1,031,035 $ 49,430 Transfers into Level 3 — — — Transfers out of Level 3 — — — Total gains or losses Included in earnings (496,990 ) 25,631 19,266 Included in other comprehensive income — — — Purchases, issuances, sales and settlements Purchases 729,984 — — Issuances 221,762 385,637 — Sales — — — Settlements — (210,217 ) — Dispositions (46,168 ) — — Ending balance $ 3,358,327 $ 1,232,086 $ 68,696 Assets Liabilities For the year ended December 31, 2014 Mortgage servicing rights Excess spread financing Mortgage servicing rights financing Beginning balance $ 2,488,283 $ 986,410 $ 29,874 Transfers into Level 3 — — — Transfers out of Level 3 — — — Total gains or losses Included in earnings (247,379 ) 57,554 (33,279 ) Included in other comprehensive income — — — Purchases, issuances, sales and settlements Purchases 470,543 — — Issuances 238,292 171,317 52,835 Sales — — — Settlements — (184,246 ) — Ending balance $ 2,949,739 $ 1,031,035 $ 49,430 |
Fair Value, by Balance Sheet Grouping | The table below presents a summary of the estimated carrying amount and fair value of Nationstar’s financial instruments. December 31, 2015 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 613,241 $ 613,241 $ — $ — Restricted cash 332,105 332,105 — — Mortgage loans held for sale 1,429,691 — 1,429,691 — Mortgage loans held for investment, net 173,650 — — 174,147 Advances, net 2,223,083 — — 2,223,083 Reverse mortgage interests 7,514,323 — — 7,705,475 Derivative financial instruments 99,199 — 99,199 — Financial liabilities Unsecured senior notes 2,048,694 1,911,777 — — Advance facilities 1,646,123 — 1,646,123 — Warehouse facilities 1,893,526 — 1,893,526 — Derivative financial instruments 5,323 — 5,323 — Excess spread financing 1,232,086 — — 1,232,086 Mortgage servicing rights financing liability 68,696 — — 68,696 Nonrecourse debt - legacy assets 64,815 — — 74,264 Participating interest financing 5,947,407 — 6,091,285 — 2014-1 HECM securitization 226,851 — — 298,048 2015-1 HECM securitization 222,495 — — 275,223 2015-2 HECM securitization 209,030 — — 249,507 December 31, 2014 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 299,002 $ 299,002 $ — $ — Restricted cash 285,530 285,530 — — Mortgage loans held for sale 1,277,931 — 1,277,931 — Mortgage loans held for investment, net 191,569 — — 192,865 Advances, net 2,544,699 2,544,699 Reverse mortgage interests 2,453,069 — — 2,502,157 Derivative financial instruments 91,051 — 91,051 — Financial liabilities Unsecured senior notes 2,159,231 2,057,038 — — Advance facilities 1,901,783 — 1,901,783 — Warehouse facilities 1,572,622 — 1,572,622 — Derivative financial instruments 18,525 — 18,525 — Excess spread financing 1,031,035 — — 1,031,035 Mortgage servicing rights financing liability 49,430 — — 49,430 Nonrecourse debt - legacy assets 75,838 — — 86,570 Participating interest financing 1,433,145 — 1,423,291 — 2014-1 HECM securitization 259,328 — — 259,328 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Equity Based Awards Activity | The following table summarizes information about the equity based awards under the 2012 Plan for the periods indicated: Equity based awards Shares Remaining Contractual Term (in years) (1) Restricted stock outstanding at December 31, 2012 1,293 Grants issued in 2013 307 $37.88 0.2 Forfeited (56) $20.46 Vested (310) Shares surrendered to treasury to pay taxes (168) Restricted stock outstanding at December 31, 2013 1,066 Grants issued in 2014 1,042 $31.65 1.6 Forfeited (151) $28.01 Vested (354) Shares surrendered to treasury to pay taxes (174) Restricted stock outstanding at December 31, 2014 1,429 Grants issued in 2015 1,446 $23.03 2.3 Forfeited (336) $27.58 Vested (456) Shares surrendered to treasury to pay taxes (246) Restricted stock outstanding at December 31, 2015 1,837 Restricted stock unvested and expected to vest 1,563 Restricted stock vested and payable at December 31, 2015 — (1) Remaining contractual term is as of December 31, 2015. The following table summarizes the vesting schedule of equity-based restricted stock grants: 2016 2017 2018 2019 Restricted stock expected to vest 668 488 332 75 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | Minimum annual rental commitments for office leases with unrelated parties and with initial or remaining terms of one year or more, net of sublease payments, are presented below. Year Amount 2016 $ 28,637 2017 24,837 2018 22,847 2019 18,689 2020 and thereafter 28,156 Total $ 123,166 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 For the year ended December 31, 2015 Restructuring charges: Employee severance and other $ — $ 12,408 $ (3,475 ) $ 8,933 Lease terminations 3,979 100 (3,229 ) 850 Total $ 3,979 $ 12,508 $ (6,704 ) $ 9,783 For the year ended December 31, 2014 Restructuring charges: Employee severance and other $ 4,650 $ — $ (4,650 ) $ — Lease terminations 8,636 (581 ) (4,076 ) 3,979 Total $ 13,286 $ (581 ) $ (8,726 ) $ 3,979 For the year ended December 31, 2013 Restructuring charges: Employee severance and other $ — $ 8,765 $ (4,115 ) $ 4,650 Lease terminations 7,186 4,108 (2,658 ) 8,636 Total $ 7,186 $ 12,873 $ (6,773 ) $ 13,286 |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables are a presentation of financial information by segment for the periods indicated: For the year ended December 31, 2015 Servicing Originations Xome Total Operating Segments Corporate and Other Eliminations Consolidated Revenues Service related $ 814,708 $ 50,752 $ 436,980 $ 1,302,440 $ 2,760 $ (440 ) $ 1,304,760 Net gain on mortgage loans held for sale 67,258 614,959 — 682,217 1,658 — 683,875 Total revenues 881,966 665,711 436,980 1,984,657 4,418 (440 ) 1,988,635 Total expenses 787,683 469,092 358,271 1,615,046 72,533 — 1,687,579 Other income (expense) Interest income 267,538 67,734 33 335,305 15,010 440 350,755 Interest expense (376,483 ) (58,271 ) (113 ) (434,867 ) (170,356 ) — (605,223 ) Gain on repurchase of unsecured senior notes — — — — 8,237 — 8,237 Gain (loss) on interest rate swaps and caps (710 ) — — (710 ) 60 — (650 ) Total other income (expense) (109,655 ) 9,463 (80 ) (100,272 ) (147,049 ) 440 (246,881 ) Income (loss) before taxes $ (15,372 ) $ 206,082 $ 78,629 $ 269,339 $ (215,164 ) $ — $ 54,175 Depreciation and amortization $ 21,171 $ 12,163 $ 13,449 $ 46,783 $ 6,714 $ — $ 53,497 Total assets 14,255,583 1,400,982 303,676 15,960,241 693,829 — 16,654,070 For the year ended December 31, 2014 Servicing Originations Xome Total Operating Segments Corporate and Other Eliminations Consolidated Revenues Service related $ 1,023,150 $ 43,954 $ 305,488 $ 1,372,592 $ 4,713 $ (1,443 ) $ 1,375,862 Net gain on mortgage loans held for sale 64,506 535,273 — 599,779 (2,573 ) — 597,206 Total revenues 1,087,656 579,227 305,488 1,972,371 2,140 (1,443 ) 1,973,068 Total expenses 705,017 390,497 181,727 1,277,241 80,450 1,357,691 Other income (expense) Interest income 91,713 72,031 — 163,744 14,405 1,443 179,592 Interest expense (246,099 ) (70,237 ) (360 ) (316,696 ) (199,691 ) — (516,387 ) Gain on sale of property — — — — 4,898 — 4,898 Gain (loss) on interest rate swaps and caps 1,672 — — 1,672 732 — 2,404 Total other income (expense) (152,714 ) 1,794 (360 ) (151,280 ) (179,656 ) 1,443 (329,493 ) Income (loss) before taxes $ 229,925 $ 190,524 $ 123,401 $ 543,850 $ (257,966 ) $ — $ 285,884 Depreciation and amortization $ 14,047 $ 9,642 $ 3,680 $ 27,369 $ 12,797 $ — $ 40,166 Total assets 8,796,962 1,400,880 195,619 10,393,461 719,214 — 11,112,675 For the year ended December 31, 2013 Servicing Originations Xome Total Operating Segments Corporate and Other Eliminations Consolidated Revenues Service related $ 1,186,145 $ 62,011 $ 135,950 $ 1,384,106 $ 1,750 $ (1,634 ) $ 1,384,222 Net gain on mortgage loans held for sale 61,624 650,357 — 711,981 (9,218 ) — 702,763 Total revenues 1,247,769 712,368 135,950 2,096,087 (7,468 ) (1,634 ) 2,086,985 Total expenses and impairments 613,084 589,986 108,633 1,311,703 90,575 — 1,402,278 Other income (expense): Interest income 90,913 87,713 — 178,626 16,960 1,634 197,220 Interest expense (279,501 ) (79,106 ) (264 ) (358,871 ) (179,934 ) — (538,805 ) Contract termination fees — — — — — — — Loss on equity method investments — — — — — — — Gain (loss) on interest rate swaps and caps 1,856 — — 1,856 1,276 — 3,132 Total other income (expense) (186,732 ) 8,607 (264 ) (178,389 ) (161,698 ) 1,634 (338,453 ) Income (loss) before taxes $ 447,953 $ 130,989 $ 27,053 $ 605,995 $ (259,741 ) $ — $ 346,254 Depreciation and amortization $ 14,955 $ 6,569 $ 1,161 $ 22,685 $ 3,930 $ — $ 26,615 Total assets 9,980,274 2,777,928 30,615 12,788,817 1,237,872 — 14,026,689 |
Guarantor Financial Statement50
Guarantor Financial Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Consolidating Balance Sheets | NATIONSTAR MORTGAGE HOLDINGS INC CONSOLIDATING BALANCE SHEET DECEMBER 31, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ — $ 279,770 $ 288 $ 18,944 $ — $ 299,002 Restricted cash — 177,090 — 108,440 — 285,530 Mortgage servicing rights — 2,961,321 — — — 2,961,321 Advances — 2,542,402 — 2,297 — 2,544,699 Reverse mortgage interests — 2,111,801 — 341,268 — 2,453,069 Mortgage loans held for sale — 1,243,700 — 34,231 — 1,277,931 Mortgage loans held for investment, net — 1,945 — 189,624 — 191,569 Property and equipment, net — 114,903 835 13,873 — 129,611 Derivative financial instruments — 87,911 — 3,140 — 91,051 Other assets 16,383 1,070,724 272,654 1,328,078 (1,808,947 ) 878,892 Investment in subsidiaries 1,207,895 450,363 — — (1,658,258 ) — Total Assets $ 1,224,278 $ 11,041,930 $ 273,777 $ 2,039,895 $ (3,467,205 ) $ 11,112,675 Liabilities and members’ equity Unsecured senior notes $ — $ 2,159,231 $ — $ — $ — $ 2,159,231 Advance facilities — 570,792 — 1,330,991 — 1,901,783 Warehouse facilities — 1,539,994 — 32,628 — 1,572,622 Payables and accrued liabilities — 1,282,895 25 39,158 — 1,322,078 MSR related liabilities - nonrecourse — 1,080,465 — — — 1,080,465 Mortgage servicing liabilities — 65,382 — — — 65,382 Derivative financial instruments — 18,525 — — — 18,525 Other nonrecourse debt — 1,433,145 — 335,166 — 1,768,311 Payables to affiliates — 1,683,606 894 124,447 (1,808,947 ) — Total liabilities — 9,834,035 919 1,862,390 (1,808,947 ) 9,888,397 Total equity 1,224,278 1,207,895 272,858 177,505 (1,658,258 ) 1,224,278 Total liabilities and equity $ 1,224,278 $ 11,041,930 $ 273,777 $ 2,039,895 $ (3,467,205 ) $ 11,112,675 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2015 Assets Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Cash and cash equivalents $ — $ 597,303 $ 558 $ 15,380 $ — $ 613,241 Restricted cash — 198,726 3 133,376 — 332,105 Mortgage servicing rights — 3,366,973 — — — 3,366,973 Advances — 2,223,039 — 44 — 2,223,083 Reverse mortgage interests — 6,832,186 — 682,137 — 7,514,323 Mortgage loans held for sale — 1,304,219 — 125,472 — 1,429,691 Mortgage loans held for investment, net — 840 — 172,810 — 173,650 Property and equipment, net — 113,228 868 28,740 — 142,836 Derivative financial instruments — 95,681 — 3,518 — 99,199 Other assets 3,444 836,704 303,452 1,496,640 (1,881,271 ) 758,969 Investment in subsidiaries 1,768,319 509,475 — — (2,277,794 ) — Total assets $ 1,771,763 $ 16,078,374 $ 304,881 $ 2,658,117 $ (4,159,065 ) $ 16,654,070 Liabilities and stockholders’ equity Unsecured senior notes $ — $ 2,048,694 $ — $ — $ — $ 2,048,694 Advance facilities — 237,865 — 1,408,258 — 1,646,123 Warehouse facilities — 1,785,266 — 108,260 — 1,893,526 Payables and accrued liabilities 4,386 1,222,268 927 68,806 — 1,296,387 MSR related liabilities - nonrecourse — 1,300,782 — — — 1,300,782 Mortgage servicing liabilities — 25,260 — — — 25,260 Derivative financial instruments — 5,323 — — — 5,323 Other nonrecourse debt — 5,947,407 — 723,191 — 6,670,598 Payables to affiliates — 1,737,190 1,031 143,050 (1,881,271 ) — Total liabilities 4,386 14,310,055 1,958 2,451,565 (1,881,271 ) 14,886,693 Total equity 1,767,377 1,768,319 302,923 206,552 (2,277,794 ) 1,767,377 Total liabilities and equity $ 1,771,763 $ 16,078,374 $ 304,881 $ 2,658,117 $ (4,159,065 ) $ 16,654,070 |
Consolidating Statements of Operations | NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues Service related $ — $ 1,030,214 $ 47,588 $ 297,869 $ 191 $ 1,375,862 Net gain on mortgage loans held for sale — 583,790 — 13,416 — 597,206 Total Revenues — 1,614,004 47,588 311,285 191 1,973,068 Expenses Salaries, wages and benefits — 556,047 4,404 82,485 — 642,936 General and administrative — 587,327 1,872 125,556 — 714,755 Total expenses — 1,143,374 6,276 208,041 — 1,357,691 Other income/(expense) Interest income — 158,508 — 21,275 (191 ) 179,592 Interest expense — (460,781 ) — (55,606 ) — (516,387 ) Gain on disposal of property — 4,898 — — — 4,898 Gain/(loss) on interest rate swaps and caps — 732 — 1,672 — 2,404 Gain/(loss) from subsidiaries 220,718 111,897 — — (332,615 ) — Total other income/(expense) 220,718 (184,746 ) — (32,659 ) (332,806 ) (329,493 ) Income before taxes 220,718 285,884 41,312 70,585 (332,615 ) 285,884 Income tax expense/(benefit) — 64,860 — — — 64,860 Net Income/(loss) 220,718 221,024 41,312 70,585 (332,615 ) 221,024 Less: Net gain attributable to noncontrolling interests — 306 — — — 306 Net income/(loss) excluding noncontrolling interests $ 220,718 $ 220,718 $ 41,312 $ 70,585 $ (332,615 ) $ 220,718 NATIONSTAR MORTGAGE LLC CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2013 Nationstar Issuer Guarantor Non-Guarantor (Subsidiaries) Eliminations Consolidated Revenues Service related $ — $ 1,211,717 $ 129,689 $ 101,704 $ (58,888 ) $ 1,384,222 Net gain on mortgage loans held for sale — 645,509 — — 57,254 702,763 Total Revenues — 1,857,226 129,689 101,704 (1,634 ) 2,086,985 Expenses Salaries, wages and benefits — 637,794 12,534 29,309 — 679,637 General and administrative — 612,307 3,630 75,859 — 691,796 Occupancy — 29,121 431 1,293 — 30,845 Total expenses — 1,279,222 16,595 106,461 — 1,402,278 Other income / (expense) Interest income — 179,445 — 16,141 1,634 197,220 Interest expense — (420,214 ) — (118,591 ) — (538,805 ) Gain/(loss) on interest rate swaps and caps — 1,012 — 2,120 — 3,132 Gain / (loss) from subsidiaries 217,054 8,007 — — (225,061 ) — Total other income / (expense) 217,054 (231,750 ) — (100,330 ) (223,427 ) (338,453 ) Income before taxes 217,054 346,254 113,094 (105,087 ) (225,061 ) 346,254 Income tax expense/(benefit) — 129,200 — — — 129,200 Net income/(loss) $ 217,054 $ 217,054 $ 113,094 $ (105,087 ) $ (225,061 ) $ 217,054 NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Revenues Service related $ — $ 846,221 $ 17,390 $ 441,149 $ 1,304,760 Net gain on mortgage loans held for sale — 640,051 — 43,824 — 683,875 Total revenues — 1,486,272 17,390 484,973 — 1,988,635 Expenses Salaries, wages and benefits — 540,052 4,791 217,725 — 762,568 General and administrative — 737,168 3,248 184,595 — 925,011 Total expenses — 1,277,220 8,039 402,320 — 1,687,579 Other income/(expense) Interest income — 310,809 — 39,946 350,755 Interest expense — (534,097 ) — (71,126 ) — (605,223 ) Gain on debt repurchase — 8,237 — — — 8,237 Gain on interest rate swaps and caps — 60 — (710 ) — (650 ) Gain/(loss) from subsidiaries 38,779 59,862 — — (98,641 ) — Total other income/(expense) 38,779 (155,129 ) — (31,890 ) (98,641 ) (246,881 ) Income/(loss) before taxes 38,779 53,923 9,351 50,763 (98,641 ) 54,175 Income tax expense/(benefit) — 11,002 — 10 — 11,012 Net income/(loss) 38,779 42,921 9,351 50,753 (98,641 ) 43,163 Less: net gain attributable to noncontrolling interests — 4,142 — 242 — 4,384 Net income/(loss) excluding noncontrolling interests $ 38,779 $ 38,779 $ 9,351 $ 50,511 $ (98,641 ) $ 38,779 |
Consolidating Statements of Cash Flows | NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2015 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating Activities Net income/(loss) $ 38,779 $ 38,779 $ 9,351 $ 50,511 $ (98,641 ) $ 38,779 Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: Noncontrolling interest — 4,142 — 242 — 4,384 (Gain)/loss from subsidiaries (38,779 ) (59,862 ) — — 98,641 — Share-based compensation — 12,299 66 7,156 — 19,521 Gain on repurchase of unsecured senior notes — (8,237 ) — — — (8,237 ) Net tax effect of stock grants — (422 ) — — — (422 ) Loss on foreclosed real estate and other — — — — — — Gain on mortgage loans held for sale — (638,963 ) — (44,912 ) — (683,875 ) Mortgage loans originated and purchased, net of fees — (16,827,026 ) — (1,144,278 ) — (17,971,304 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (1,865,347 ) — — — (1,865,347 ) Proceeds on sale of and payments of mortgage loans held for sale — 18,927,555 — 1,117,865 — 20,045,420 (Gain)/loss on derivatives including ineffectiveness — (60 ) — 710 — 650 Cash settlement on derivative financial instruments — — — — — — Depreciation and amortization — 40,024 7 13,466 — 53,497 Amortization/(accretion) of premiums/(discounts) — (7,993 ) — (3,678 ) — (11,671 ) Fair value changes in excess spread financing — 25,631 — — — 25,631 Fair value changes and amortization/accretion of mortgage servicing rights — 459,803 — — — 459,803 Fair value change in mortgage servicing rights financing liability — 19,266 — — — 19,266 Changes in assets and liabilities: Advances — 321,026 — 2,253 — 323,279 Reverse mortgage interests — 95,299 — (340,869 ) — (245,570 ) Other assets 12,935 388,543 (10,010 ) (120,873 ) — 270,595 Payables and accrued liabilities — (67,140 ) 902 9,665 — (56,573 ) Net cash attributable to operating activities 12,935 857,317 316 (452,742 ) — 417,826 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing Activities Property and equipment additions, net of disposals — (36,497 ) (43 ) (20,502 ) — (57,042 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (714,842 ) — — — (714,842 ) Purchases of reverse mortgage servicing rights and interests — (4,815,684 ) — — — (4,815,684 ) Sale of forward service rights — 43,793 — — — 43,793 Acquisitions, net — — — (45,796 ) — (45,796 ) Net cash attributable to investing activities — (5,523,230 ) (43 ) (66,298 ) — (5,589,571 ) Financing Activities Transfers (to)/from restricted cash, net — (21,636 ) (3 ) (24,936 ) — (46,575 ) Repayment of unsecured senior notes — (102,533 ) — — — (102,533 ) Issuance of common stock, net of issuance cost — 497,757 — — — 497,757 Debt financing costs — (17,363 ) — — — (17,363 ) Increase (decrease) warehouse facilities — 245,272 — 75,632 — 320,904 Increase (decrease) advance facilities — (332,927 ) — 77,267 — (255,660 ) Proceeds from HECM Securitizations — — — 559,757 — 559,757 Repayment of HECM Securitizations — — — (161,221 ) — (161,221 ) Issuance of excess spread financing — 385,637 — — — 385,637 Repayment of excess spread financing — (210,217 ) — — — (210,217 ) Increase in participating interest financing in reverse mortgage interests — 4,540,828 — — — 4,540,828 Proceeds from mortgage service rights financing — — — — — — Repayment of nonrecourse debt–Legacy assets — (1,794 ) — (11,023 ) — (12,817 ) Net tax benefit for stock grants issued — 422 — — — 422 Redemption of shares for stock vesting (6,224 ) — — — — (6,224 ) Repurchase of treasury shares (6,711 ) — — — — (6,711 ) Net cash attributable to financing activities (12,935 ) 4,983,446 (3 ) 515,476 — 5,485,984 Net increase/(decrease) in cash — 317,533 270 (3,564 ) — 314,239 Cash and cash equivalents at beginning of period — 279,770 288 18,944 — 299,002 Cash and cash equivalents at end of period $ — $ 597,303 $ 558 $ 15,380 $ — $ 613,241 NATIONSTAR MORTGAGE HOLDINGS INC CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2014 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Operating activities Net income/(loss) $ 220,718 $ 220,718 $ 41,312 $ 70,585 $ (332,615 ) $ 220,718 Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions: (Gain)/loss from subsidiaries (220,718 ) (111,897 ) — — 332,615 — Noncontrolling interest — 306 — — — 306 Share-based compensation — 18,565 — — — 18,565 Gain on disposal of property — (4,898 ) — — — (4,898 ) Excess benefit from share-based compensation — (2,243 ) — — — (2,243 ) Loss on foreclosed real estate — 3,099 — 7,189 — 10,288 Net (gain)/loss on mortgage loans held for sale — (583,790 ) — (13,416 ) — (597,206 ) Mortgage loans originated and purchased, net of fees — (17,137,520 ) — — — (17,137,520 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (3,692,199 ) — — — (3,692,199 ) Proceeds on sale of and payments of mortgage loans held for sale — 22,129,587 — (5,614 ) — 22,123,973 Gain (loss) on derivatives including interest rate swaps and caps — (732 ) — (1,672 ) — (2,404 ) Cash settlement on derivative financial instruments — — — 1,352 — 1,352 Depreciation and amortization — 36,381 88 3,697 — 40,166 Amortization (accretion) of premiums/(discounts) — 15,520 — (2,190 ) — 13,330 Fair value changes in excess spread financing — 57,554 — — — 57,554 Fair value changes and amortization/accretion of mortgage servicing rights — 233,537 — — — 233,537 Fair value change in mortgage servicing rights financing liability — (33,279 ) — — — (33,279 ) Changes in assets and liabilities: Advances — 327,470 — (3,288 ) — 324,182 Reverse mortgage interests — (626,034 ) — (376,108 ) — (1,002,142 ) Other assets 5,489 (1,613,831 ) (39,029 ) 2,206,946 (31,463 ) 528,112 Payables and accrued liabilities — (71,071 ) (5,925 ) 25,550 31,463 (19,983 ) Net cash attributable to operating activities 5,489 (834,757 ) (3,554 ) 1,913,031 — 1,080,209 Nationstar Issuer Guarantor Non-Guarantor Eliminations Consolidated Investing activities Property and equipment additions, net of disposals — (41,739 ) (68 ) (14,598 ) — (56,405 ) Proceeds from sale of building — 10,412 — — — 10,412 Purchase of forward mortgage servicing rights, net of liabilities incurred — (471,249 ) — — — (471,249 ) Proceeds from sale of servicer advances — 768,449 — — — 768,449 Business acquisitions, net — (15,854 ) — (2,146 ) — (18,000 ) Net cash attributable to investing activities — 250,019 (68 ) (16,744 ) — 233,207 Financing activities Transfers (to)/from restricted cash — 118,617 3 172,183 — 290,803 Redemption of unsecured senior notes — (285,000 ) — — — (285,000 ) Debt financing costs — (13,067 ) — — — (13,067 ) Increase (decrease) in advance facilities — — — (1,221,206 ) — (1,221,206 ) Increase (decrease) in warehouse facilities — 226,596 — (1,087,901 ) — (861,305 ) Proceeds from 2014-1 HECM Securitization — — — 269,033 — 269,033 Repayment of 2014-1 HECM Securitization — — — (9,750 ) — (9,750 ) Issuance of excess spread financing — 171,317 — — — 171,317 Repayment of excess servicing spread financing — (184,246 ) — — — (184,246 ) Increase in participating interest financing in reverse mortgage interests — 352,945 — — — 352,945 Proceeds from mortgage servicing rights financing — 52,835 — — — 52,835 Repayment of nonrecourse debt–Legacy assets — — — (15,429 ) — (15,429 ) Excess tax benefit from share-based compensation — 2,243 — — — 2,243 Redemption of shares for stock vesting (5,489 ) — — — — (5,489 ) Net cash attributable to financing activities (5,489 ) 442,240 3 (1,893,070 ) — (1,456,316 ) Net increase in cash and cash equivalents — (142,498 ) (3,619 ) 3,217 — (142,900 ) Cash and cash equivalents at beginning of period — 422,268 3,907 15,727 — 441,902 Cash and cash equivalents at end of period $ — $ 279,770 $ 288 $ 18,944 $ — $ 299,002 NATIONSTAR MORTGAGE LLC CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2013 Nationstar Issuer Guarantor Non- Eliminations Consolidated Operating activities Net income/(loss) $ 217,054 $ 217,054 $ 113,094 $ (105,087 ) $ (225,061 ) $ 217,054 Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities, net of effect of acquisitions: Gain/(loss) from subsidiaries (217,054 ) (8,007 ) — — 225,061 — Share-based compensation — 10,574 — — — 10,574 Net tax effect of stock grants — (4,579 ) — — — (4,579 ) Loss on foreclosed real estate and other — 7,317 — 5,999 — 13,316 (Gain) on mortgage loans held for sale — (645,509 ) — — (57,254 ) (702,763 ) Mortgage loans originated and purchased, net of fees — (24,059,757 ) — — — (24,059,757 ) Repurchases of loans and foreclosures out of Ginnie Mae securitizations — (1,426,860 ) — — — (1,426,860 ) Proceeds on sale of and payments of mortgage loans held for sale — 24,524,472 — 13,325 57,254 24,595,051 (Gain)/loss on derivatives including ineffectiveness — (3,415 ) — (2,665 ) — (6,080 ) Cash settlement on derivative financial instruments — — — (4,544 ) — (4,544 ) Depreciation and amortization — 25,479 979 157 — 26,615 Amortization/accretion of premiums/(discounts) — 56,348 — (3,817 ) — 52,531 Fair value changes in excess spread financing — 73,333 — — — 73,333 Fair value changes and amortization/accretion of mortgage servicing rights — (59,101 ) — — — (59,101 ) Changes in assets and liabilities: Advances — (4,497,046 ) — 4,031,271 — (465,775 ) Reverse mortgage interests — (751,609 ) — — — (751,609 ) Other assets 2,365 5,395,861 (113,703 ) (5,257,613 ) 17,327 44,237 Payables and accrued liabilities — 650,287 4,135 10,225 (17,327 ) 647,320 Net cash attributable to operating activities 2,365 (495,158 ) 4,505 (1,312,749 ) — (1,801,037 ) Nationstar Issuer Guarantor Non- Eliminations Consolidated Investing activities Property and equipment additions, net of disposals — (45,138 ) (999 ) (2,722 ) — (48,859 ) Purchase of reverse mortgage rights and interests — (19,189 ) — — — (19,189 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (1,527,645 ) — — — (1,527,645 ) Loan repurchases from Ginnie Mae — — — — — — Proceeds from sales of REO — — — — — — Proceeds from sale of servicer advances — 277,455 — — — 277,455 Acquisitions, net — (88,200 ) — — — (88,200 ) Net cash attributable to investing activities — (1,402,717 ) (999 ) (2,722 ) — (1,406,438 ) Financing activities Transfers to/from restricted cash — (199,600 ) — (33,095 ) — (232,695 ) Issuance of unsecured notes, net — 1,365,244 — — — 1,365,244 Debt financing costs — (53,529 ) — — — (53,529 ) Increase (decrease) in warehouse facilities — (136,947 ) — 1,532,374 — 1,395,427 Increase (decrease) in advance facilities — — — (154,677 ) — (154,677 ) Issuance of excess spread financing — 753,002 — — — 753,002 Repayment of excess servicing spread financing — (130,355 ) — — — (130,355 ) Issuance of participating interest financing in reverse mortgage interests — 535,216 — — — 535,216 Proceeds from mortgage servicing rights financing 29,874 29,874 Repayment of nonrecourse debt–Legacy assets — — — (13,404 ) — (13,404 ) Contributions from joint venture member to noncontrolling interest — 4,990 4,990 Net tax benefit for stock grants issued 4,579 — — — — 4,579 Redemption of shares for stock vesting (6,944 ) — — — — (6,944 ) Net cash attributable to financing activities (2,365 ) 2,167,895 — 1,331,198 — 3,496,728 Net increase/(decrease) in cash — 270,020 3,506 15,727 — 289,253 Cash and cash equivalents at beginning of period — 152,248 401 — — 152,649 Cash and cash equivalents at end of period $ — $ 422,268 $ 3,907 $ 15,727 $ — $ 441,902 |
Quarterly Financial Data (Una51
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The following is a summary of the quarterly consolidated results of operations for the period indicated (amounts in thousands except per share amounts: 2015 First Second Third Fourth Service related $ 215,123 $ 457,723 $ 211,311 $ 420,603 Net gain on mortgage loans held for sale 166,994 163,886 185,872 167,123 Total revenues 382,117 621,609 397,183 587,726 Total expenses 383,843 440,985 446,221 416,530 Total other income/(expense) (72,641 ) (60,613 ) (63,186 ) (50,441 ) Income (loss) before taxes (74,367 ) 120,011 (112,224 ) 120,755 Income taxes (benefit) (27,525 ) 44,171 (47,295 ) 41,661 Net income (loss) (46,842 ) 75,840 (64,929 ) 79,094 Less: net income attributable to noncontrolling interests 1,473 1,281 1,413 217 Net income (loss) attributable to Nationstar $ (48,315 ) $ 74,559 $ (66,342 ) $ 78,877 Earnings per share attributable to common shareholders: Basic $ (0.54 ) $ 0.69 $ (0.62 ) $ 0.85 Diluted $ (0.54 ) $ 0.69 $ (0.62 ) $ 0.84 2014 First Second Third Fourth Service related $ 327,663 $ 362,916 $ 351,070 $ 334,213 Net gain on mortgage loans held for sale 141,984 186,817 153,254 115,151 Total revenues 469,647 549,733 504,324 449,364 Total expenses and impairments 321,133 346,711 327,224 362,623 Total other income/(expense) (109,836 ) (97,434 ) (67,521 ) (54,702 ) Income before taxes 38,678 105,588 109,579 32,039 Income tax expense (benefit) 15,001 38,941 (1,700 ) 12,618 Net income 23,677 66,647 111,279 19,421 Less: net income (loss) attributable to noncontrolling interests (359 ) 192 54 419 Net income attributable to Nationstar $ 24,036 $ 66,455 $ 111,225 $ 19,002 Earnings per share attributable to common shareholders: Basic $ 0.27 $ 0.74 $ 1.23 $ 0.22 Diluted $ 0.27 $ 0.74 $ 1.22 $ 0.21 |
Description of Business and B52
Description of Business and Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Jan. 01, 2015 | Dec. 31, 2014 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Real estate owned (REO), net | $ 3,595 | $ 1,625 | |
Accounting Standards Update 2014-14 | Reverse Mortgage Interest | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Real estate owned (REO), net | $ 69,400 |
Significant Accounting Polici53
Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Servicing Assets at Fair Value [Line Items] | |||
Factor in repurchasing loans out of HMBS pools | $ 625,000 | ||
Impairment of property and equipment | 0 | $ 0 | $ 0 |
Advertising costs | $ 60,600,000 | $ 41,600,000 | $ 53,600,000 |
Minimum | |||
Servicing Assets at Fair Value [Line Items] | |||
Servicing fee rate | 0.21% | ||
Maximum | |||
Servicing Assets at Fair Value [Line Items] | |||
Servicing fee rate | 0.50% |
Mortgage Servicing Rights (MS54
Mortgage Servicing Rights (MSR) and Related Liabilities - MSRs and Related Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Mortgage Servicing Rights [Line Items] | |||
Mortgage servicing rights at fair value | $ 3,358,327 | $ 2,949,739 | |
Mortgage servicing rights | 3,366,973 | 2,961,321 | |
Mortgage servicing liabilities | 25,260 | 65,382 | |
Mortgage servicing rights financing liability - fair value | 68,700 | 49,400 | |
MSR related liabilities - nonrecourse | 1,300,782 | 1,080,465 | |
Mortgage Servicing Rights | |||
Mortgage Servicing Rights [Line Items] | |||
Mortgage servicing rights at fair value | 3,358,327 | 2,949,739 | |
Servicing asset at amortized cost | 8,646 | 11,582 | $ 14,879 |
Mortgage servicing liabilities | $ 25,260 | $ 65,382 | $ 82,521 |
Mortgage Servicing Rights (MS55
Mortgage Servicing Rights (MSR) and Related Liabilities - UPB and Related Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Servicing Assets at Fair Value [Line Items] | |||
Principal amount outstanding on mortgage servicing rights | $ 4,600,000 | ||
Mortgage servicing rights at fair value | $ 3,358,327 | $ 2,949,739 | |
Mortgage Servicing Rights | |||
Servicing Assets at Fair Value [Line Items] | |||
Principal amount outstanding on mortgage servicing rights | 345,676,257 | 333,612,645 | |
Mortgage servicing rights at fair value | 3,358,327 | 2,949,739 | |
Mortgage Servicing Rights | Credit sensitive | |||
Servicing Assets at Fair Value [Line Items] | |||
Principal amount outstanding on mortgage servicing rights | 224,334,415 | 241,769,601 | |
Mortgage servicing rights at fair value | 2,016,617 | 1,919,290 | |
Mortgage Servicing Rights | Interest sensitive | |||
Servicing Assets at Fair Value [Line Items] | |||
Principal amount outstanding on mortgage servicing rights | 121,341,842 | 91,843,044 | |
Mortgage servicing rights at fair value | $ 1,341,710 | $ 1,030,449 |
Mortgage Servicing Rights (MS56
Mortgage Servicing Rights (MSR) and Related Liabilities - MSR's at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Fair value at the beginning of the period | $ 2,949,739 | $ 2,949,739 | |||
Fair value at the end of the period | 3,358,327 | $ 2,949,739 | |||
Mortgage Servicing Rights | |||||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Fair value at the beginning of the period | $ 2,488,283 | 2,949,739 | $ 2,488,283 | 2,949,739 | 2,488,283 |
Servicing resulting from transfers of financial assets | 238,292 | 221,762 | 238,292 | ||
Purchases of servicing assets | $ 470,543 | 729,984 | 470,543 | ||
Dispositions | 0 | $ (46,168) | |||
Due to changes in valuation inputs or assumptions used in the valuation model | (58,150) | 87,434 | |||
Other changes in fair value | (438,840) | (334,813) | |||
Fair value at the end of the period | $ 3,358,327 | $ 2,949,739 | $ 2,949,739 |
Mortgage Servicing Rights (MS57
Mortgage Servicing Rights (MSR) and Related Liabilities - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2015 | Feb. 28, 2013 | |
Servicing Assets at Fair Value [Line Items] | ||||
Principal amount outstanding on mortgage servicing rights | $ 4,600,000,000 | |||
Accretion | $ 40,100,000 | $ 17,100,000 | ||
Factor in repurchasing loans out of HMBS pools | 625,000 | |||
Reverse Mortgages | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Principal amount outstanding on mortgage servicing rights | 29,900,000,000 | 28,000,000,000 | $ 83,100,000 | |
Mortgage Servicing Rights | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Principal amount outstanding on mortgage servicing rights | 345,676,257,000 | 333,612,645,000 | ||
Impairment | 0 | 0 | ||
Accretion | $ 40,122,000 | $ 17,139,000 |
Mortgage Servicing Rights (MS58
Mortgage Servicing Rights (MSR) and Related Liabilities - Fair Value Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Mortgage Servicing Rights | Credit sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate | 11.60% | 12.00% |
Total prepayment speeds | 16.50% | 18.60% |
Expected weighted-average life | 5 years 10 months 24 days | 5 years 4 months 24 days |
Mortgage Servicing Rights | Interest sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate | 9.10% | 9.10% |
Total prepayment speeds | 12.40% | 11.30% |
Expected weighted-average life | 6 years 1 month 6 days | 6 years 6 months |
Excess Spread Financing | Minimum | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, prepayment speed | 7.40% | 6.20% |
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, weighted average life | 4 years 2 months 12 days | 4 years |
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, discount rate | 8.50% | 8.50% |
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, recapture rate | 6.80% | 6.70% |
Excess Spread Financing | Maximum | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, prepayment speed | 17.10% | 19.40% |
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, weighted average life | 7 years 9 months 18 days | 7 years 1 month 6 days |
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, discount rate | 14.10% | 14.20% |
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, recapture rate | 30.00% | 31.30% |
Excess Spread Financing | Weighted Average | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, prepayment speed | 11.60% | 12.50% |
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, weighted average life | 5 years 10 months 24 days | 5 years 7 months 6 days |
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, discount rate | 11.20% | 11.50% |
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, recapture rate | 17.70% | 16.80% |
MSR Financing Liability | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Advance financing rates | 3.00% | 2.80% |
Annual advance recovery rates | 20.90% | 27.60% |
Mortgage Servicing Rights (MS59
Mortgage Servicing Rights (MSR) and Related Liabilities - Fair Value Sensitivity Analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Mortgage Servicing Rights | |||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | |||
Total prepayment speeds, 10% adverse change | $ 132,277 | $ 112,603 | |
Total prepayment speeds, 20% adverse change | 253,028 | 199,078 | |
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 | 123,115 | 110,900 | |
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 | $ 237,779 | 207,295 | |
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 | $ 36,530 | 33,618 | |
Total prepayment speeds, 20% adverse change | 76,373 | 70,379 | |
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 | 41,806 | 36,632 | |
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 | $ 86,791 | $ 75,964 |
Mortgage Servicing Rights (MS60
Mortgage Servicing Rights (MSR) and Related Liabilities - MSR's at Amortized Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Servicing Liability at Amortized Value [Roll Forward] | ||
Balance at the beginning of the period | $ 65,382 | |
Amortization/Accretion | (40,100) | $ (17,100) |
Balance at the end of the period | 25,260 | 65,382 |
Fair value of servicing asset, amortized cost | 28,962 | 34,225 |
Fair value of servicing liability, amortized cost | 9,137 | 55,388 |
Mortgage Servicing Rights | ||
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||
Balance at the beginning of the period | 11,582 | 14,879 |
Purchase/Assumptions of servicing rights/obligations | 0 | 0 |
Amortization/Accretion | (2,936) | (3,297) |
Balance at the end of the period | 8,646 | 11,582 |
Servicing Liability at Amortized Value [Roll Forward] | ||
Balance at the beginning of the period | 65,382 | 82,521 |
Purchase/Assumptions of servicing rights/obligations | 0 | 0 |
Amortization/Accretion | (40,122) | (17,139) |
Balance at the end of the period | $ 25,260 | $ 65,382 |
Mortgage Servicing Rights (MS61
Mortgage Servicing Rights (MSR) and Related Liabilities - Servicing Fees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Transfers and Servicing [Abstract] | |||
Contractually specified servicing fees | $ 1,166,415 | $ 1,123,820 | $ 926,949 |
Incentive and modification income | 106,778 | 128,993 | 107,839 |
Late fees | 69,565 | 64,616 | 59,365 |
Other service-related income | 128,402 | 128,176 | 120,854 |
Remittances to counterparties for contractual transfer of servicing assets | (301,044) | (319,902) | (148,338) |
Mark-to-market | (115,356) | 56,168 | 246,101 |
Amortization | (240,052) | (158,721) | (126,625) |
Total servicing fee income | $ 814,708 | $ 1,023,150 | $ 1,186,145 |
Advances, Net - Schedule of Acc
Advances, Net - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Agency | $ 1,396,176 | $ 1,810,472 |
Non-agency | 826,907 | 734,227 |
Total advances, net | $ 2,223,083 | $ 2,544,699 |
Advances, Net - Narrative (Deta
Advances, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Receivables [Abstract] | |||
Accretion of service advances discount | $ 2.4 | $ 12.2 | $ 31.1 |
Accretion of service advances discount, expected to be recognized during the next twelve months | 2.7 | ||
Allowance for doubtful accounts | $ 29.9 | $ 9.2 |
Reverse Mortgage Interests - (D
Reverse Mortgage Interests - (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Mortgage Servicing Rights [Line Items] | ||
Unsecuritized interests | $ 987,990 | $ 752,801 |
Reserve for servicing losses | (20,133) | (4,225) |
Reverse mortgage interests | 7,514,323 | 2,453,069 |
HMBS Securities | ||
Mortgage Servicing Rights [Line Items] | ||
Participating interests | 5,864,329 | 1,363,225 |
2014-1 HECM securitization | ||
Mortgage Servicing Rights [Line Items] | ||
Other interests securitized | $ 682,137 | $ 341,268 |
Reverse Mortgage Interests - Na
Reverse Mortgage Interests - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
May. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
FHA Claims Accounts Receivable | $ 123,100 | |||
Proceeds from Funded Borrower Draws | 83,300 | |||
Service fees receivable | 180,036 | $ 154,436 | ||
Purchase of reverse mortgage interests, net of participations sold | 4,815,684 | 0 | $ 0 | |
Other nonrecourse debt | 6,670,598 | $ 1,768,311 | ||
Generation Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Purchase of reverse mortgage interests, net of participations sold | $ 192,900 | |||
Participating interests | 4,900,000 | |||
Other nonrecourse debt | $ 4,600,000 | |||
Ginnie Mae HECM, FHA Reimbursement [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from (Payments for) in Securities Sold under Agreements to Repurchase | 581,300 | |||
Ginnie Mae HECM [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from (Payments for) in Securities Sold under Agreements to Repurchase | 139,800 | |||
HECM Scratch and Dent Portfolio [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Reverse Mortgages, Participating Interest, Amount | 31,600 | |||
HECM [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Reverse Mortgage, Foreclosed Assets | 24,100 | |||
Service fees receivable | $ 4,800 |
Mortgage Loans Held for Sale 66
Mortgage Loans Held for Sale and Investment - (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Mortgage Loans Held for Sale and Investment [Abstract] | |||
Mortgage loans held for sale – unpaid principal balance | $ 1,373,607 | $ 1,218,596 | |
Mark-to-market adjustment | 56,084 | 59,335 | |
Total mortgage loans held for sale | 1,429,691 | 1,277,931 | $ 2,603,380 |
Mortgage Loans Held for Sale nonaccrual basis | 31,390 | 31,968 | |
Fair Value, Mortgage Loans Held for Sale non-accrual status | 28,996 | 26,022 | |
Mortgage Loans in Process of Foreclosure, Amount | $ 16,174 | $ 17,493 |
Mortgage Loans Held for Sale 67
Mortgage Loans Held for Sale and Investment - Reconciliation to Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Mortgage loans held for sale – beginning balance | $ 1,277,931 | $ 2,603,380 |
Mortgage loans originated and purchased, net of fees | 17,971,304 | 16,910,185 |
Repurchase of loans out of Ginnie Mae securitizations | 1,827,202 | 3,648,120 |
Claims made to third parties | (60,780) | (169,630) |
Proceeds on sale of and payments of mortgage loans held for sale | (20,026,079) | (22,105,165) |
Gain on sale of mortgage loans | 440,113 | 391,041 |
Mortgage loans held for sale – ending balance | $ 1,429,691 | $ 1,277,931 |
Mortgage Loans Held for Sale 68
Mortgage Loans Held for Sale and Investment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Mortgage Loans Held for Investment | ||
Servicing Assets at Fair Value [Line Items] | ||
Reclassifications from (to) nonaccretable discount | $ 1,855 | $ 1,096 |
Mortgage Loans Held for Sale 69
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Investment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage loans held for investment, net | $ 173,650 | $ 191,569 | |
Mortgage Loans Held for Investment in foreclosure, amount | 41,406 | 52,769 | |
Mortgage Loans Held for Investment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net - unpaid principal balance | 250,033 | 276,820 | |
Transfer discount - accretable | (14,631) | (15,503) | $ (17,362) |
Transfer discount - non-accretable | (58,203) | (66,217) | |
Allowance for loan losses | (3,549) | (3,531) | |
Total mortgage loans held for investment, net | $ 173,650 | $ 191,569 |
Mortgage Loans Held for Sale 70
Mortgage Loans Held for Sale and Investment - Accretable Yield (Details) - Mortgage Loans Held for Investment - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at the beginning of the period | $ 15,503 | $ 17,362 |
Accretion | (2,727) | (2,955) |
Reclassifications from nonaccretable discount | 1,855 | 1,096 |
Balance at the end of the period | $ 14,631 | $ 15,503 |
Property and Equipment, Net - (
Property and Equipment, Net - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 234,835 | $ 198,497 | |
Less: Accumulated depreciation and amortization | (92,834) | (69,721) | |
Plus: Land | 835 | 835 | |
Total property and equipment, net | 142,836 | 129,611 | |
Depreciation and amortization | 46,100 | 36,800 | $ 26,600 |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 40,123 | 39,561 | |
Furniture, fixtures and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Furniture, fixtures and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Capitalized software costs | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 102,187 | 72,673 | |
Useful life | 5 years | ||
Long-term capital leases - computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 49,782 | 48,451 | |
Useful life | 5 years | ||
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 13,043 | 16,638 | |
Software in development and other | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 29,700 | $ 21,174 |
Property and Equipment, Net - F
Property and Equipment, Net - Future Minimum Lease Payments for Capital Leases (Details) $ in Thousands | Dec. 31, 2014USD ($) |
Property, Plant and Equipment [Abstract] | |
2,016 | $ 8,852 |
2,017 | 2,503 |
2,018 | 190 |
Thereafter | 0 |
Total future lease payments | 11,545 |
Less: Imputed interest | (191) |
Net capital lease liability | $ 11,354 |
Others Assets (Details)
Others Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Receivables from trusts, agencies and prior servicers, net | $ 229,452 | $ 386,166 | |
Accrued revenues | 180,036 | 154,436 | |
Loans subject to repurchase right from Ginnie Mae | 117,163 | 131,592 | |
Goodwill | 71,141 | 54,701 | $ 38,820 |
Intangible assets | 49,869 | 19,622 | |
Deferred financing costs | 42,850 | 46,986 | |
Prepaid expenses | 19,800 | 9,837 | |
Receivables from affiliates, net | 7,510 | 4,713 | |
Real estate owned (REO), net | 3,595 | 1,625 | |
Other | 37,553 | 69,214 | |
Total other assets | 758,969 | 878,892 | |
Net of reserves | $ 98,800 | $ 107,600 |
Other Assets Changes in the car
Other Assets Changes in the carrying amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 54,701 | $ 38,820 |
Goodwill acquired during the period | 23,738 | 15,881 |
Goodwill reclassification during the period | (7,298) | 0 |
Balance at end of period | $ 71,141 | $ 54,701 |
Other Assets - Schedule of Inta
Other Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ (10,426) | $ (3,681) |
Total future amortization expense | $ 49,304 | |
Finite-Lived Intangible Asset, Useful Life | 6 years 10 months 24 days | 8 years 5 months 1 day |
Total, Gross Carrying Amount | $ 60,295 | $ 23,303 |
Total, Net Carrying Amount | 49,869 | 19,622 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 26,600 | 18,595 |
Finite-Lived Intangible Assets, Accumulated Amortization | (5,675) | (2,934) |
Total future amortization expense | $ 20,925 | $ 15,661 |
Finite-Lived Intangible Asset, Useful Life | 7 years 8 months 12 days | 8 years 5 months 1 day |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 20,090 | $ 4,143 |
Finite-Lived Intangible Assets, Accumulated Amortization | (3,318) | (747) |
Total future amortization expense | $ 16,772 | $ 3,396 |
Finite-Lived Intangible Asset, Useful Life | 6 years 7 months 6 days | 8 years 2 months |
Purchased intangible software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 12,590 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,416) | |
Total future amortization expense | $ 11,174 | |
Finite-Lived Intangible Asset, Useful Life | 5 years 10 months 24 days | |
Noncompete agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 450 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (17) | |
Total future amortization expense | $ 433 | |
Finite-Lived Intangible Asset, Useful Life | 3 years 1 month 6 days | |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 557 | $ 557 |
Trademark | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 8 | $ 8 |
Other Assets - Future Amortizat
Other Assets - Future Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Amortization expense | $ 7,400 | $ 2,300 | $ 1,400 |
2,016 | 7,337 | ||
2,017 | 7,272 | ||
2,018 | 7,272 | ||
2,019 | 7,088 | ||
2,020 | 6,843 | ||
Thereafter | 13,492 | ||
Total future amortization expense | $ 49,304 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | May. 31, 2015 | Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Assets [Line Items] | |||||
Loans subject to repurchase right from Ginnie Mae | $ 117,163 | $ 131,592 | |||
Goodwill acquired during the period | 23,738 | 15,881 | |||
Other net assets | $ 758,969 | $ 878,892 | |||
Experience 1, Inc | |||||
Other Assets [Line Items] | |||||
Other net liabilities | $ (3,500) | ||||
Total consideration | 35,900 | ||||
Goodwill acquired during the period | 20,300 | ||||
Intangible assets assumed | $ 19,100 | ||||
Quantarium, LLC | |||||
Other Assets [Line Items] | |||||
Total consideration | $ 12,000 | ||||
GoPaperless Solutions | |||||
Other Assets [Line Items] | |||||
Total consideration | $ 2,000 | ||||
Goodwill acquired during the period | 3,400 | ||||
Intangible assets assumed | 10,400 | ||||
Other net assets | $ 200 |
Derivative Financial Instrume78
Derivative Financial Instruments Narrative (Details) $ in Millions | Dec. 31, 2015USD ($) | Jun. 30, 2015derivative_instrument | Dec. 31, 2014USD ($) |
Derivative [Line Items] | |||
Margin Deposit Assets | $ 3.9 | $ 9.8 | |
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 Instrume79
Derivative Financial Instruments Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loan sale commitments | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | $ 175,570 | $ 1,666 |
Recorded Gains / (Losses) | 256 | (11) |
IRLCs | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 2,767,927 | 2,556,169 |
Recorded Gains / (Losses) | 1,236 | 774 |
IRLCs | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 2,304 | 865 |
Recorded Gains / (Losses) | 2 | 2,691 |
Forward MBS trades | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 1,665,894 | 319,112 |
Recorded Gains / (Losses) | 5,839 | (31,982) |
Forward MBS trades | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 1,807,418 | 2,958,700 |
Recorded Gains / (Losses) | 14,614 | (15,055) |
LPCs | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 387,891 | 287,089 |
Recorded Gains / (Losses) | 1,873 | 1,206 |
LPCs | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 314,047 | 30,494 |
Recorded Gains / (Losses) | (1,406) | 1,641 |
Interest rate swaps and caps | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 845,876 | 124,650 |
Recorded Gains / (Losses) | (359) | (1,673) |
Interest rate swaps and caps | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 12,543 | 105,681 |
Recorded Gains / (Losses) | (439) | 731 |
Eurodollar futures | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Asset | 176,000 | 40,000 |
Recorded Gains / (Losses) | 59 | 1 |
Eurodollar futures | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional - Liability | 95,000 | 80,000 |
Recorded Gains / (Losses) | (69) | (7) |
Fair Value, Measurements, Recurring | Loan sale commitments | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 252 | (4) |
Fair Value, Measurements, Recurring | IRLCs | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 89,138 | 87,902 |
Fair Value, Measurements, Recurring | IRLCs | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liability | 5 | 7 |
Fair Value, Measurements, Recurring | Forward MBS trades | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 6,123 | 284 |
Fair Value, Measurements, Recurring | Forward MBS trades | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liability | 3,746 | 18,360 |
Fair Value, Measurements, Recurring | LPCs | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 3,872 | 1,999 |
Fair Value, Measurements, Recurring | LPCs | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liability | 1,454 | 48 |
Fair Value, Measurements, Recurring | Interest rate swaps and caps | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 506 | 865 |
Fair Value, Measurements, Recurring | Interest rate swaps and caps | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liability | 542 | 103 |
Fair Value, Measurements, Recurring | Eurodollar futures | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Asset | 60 | 1 |
Fair Value, Measurements, Recurring | Eurodollar futures | Derivative Financial Instruments, Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value - Liability | $ 76 | $ 7 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Outstanding Amount | $ 1,646,123 | $ 1,901,783 |
Servicing Segment | ||
Debt Instrument [Line Items] | ||
Outstanding Amount | 1,646,123 | 1,901,783 |
Collateral pledged | 1,925,511 | 2,214,410 |
Servicing Segment | MBS Advance Financing Facility [Member] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 130,000 | |
Outstanding Amount | 82,208 | 363,014 |
Collateral pledged | 89,221 | 418,126 |
Servicing Segment | Securities Repurchase Facility (2011) [Member] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 0 | |
Outstanding Amount | 0 | 34,613 |
Collateral pledged | 0 | 55,603 |
Servicing Segment | MBS Advance Financing Facility 2012 [Member] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 50,000 | |
Outstanding Amount | 50,000 | 42,472 |
Collateral pledged | 69,942 | 50,758 |
Servicing Segment | Agency Advance Financing Facility (2011) [Member] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 500,000 | |
Outstanding Amount | 310,316 | 805,706 |
Collateral pledged | 364,352 | 885,115 |
Servicing Segment | NSM Advance Receivable Trust (2013) [Member] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 500,000 | |
Outstanding Amount | 335,408 | 419,170 |
Collateral pledged | 394,100 | 471,243 |
Servicing Segment | MBS Servicer Advance Facility (2014) [Domain] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 125,000 | |
Outstanding Amount | 105,657 | 79,084 |
Collateral pledged | 185,392 | 138,010 |
Servicing Segment | NSM Advance Receivable Trust (2014-BC) [Domain] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 0 | |
Outstanding Amount | 0 | 106,115 |
Collateral pledged | 0 | 121,030 |
Servicing Segment | Nationstar Agency Advance Receivables Trust [Member] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 1,400,000 | |
Outstanding Amount | 762,534 | 0 |
Collateral pledged | 822,504 | 0 |
Servicing Segment | Securities Repurchase Facility (2014) [Domain] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 0 | |
Outstanding Amount | 0 | 51,609 |
Collateral pledged | 0 | 74,525 |
Originations Segment | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding Amount | 1,893,526 | 1,572,622 |
Collateral pledged | 2,071,310 | 1,652,743 |
Originations Segment | Warehouse Facility $1.3 Billion [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 1,300,000 | |
Outstanding Amount | 633,694 | 663,167 |
Collateral pledged | 677,775 | 697,257 |
Originations Segment | Warehouse Facility $1.0 Billion [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 1,000,000 | |
Outstanding Amount | 544,951 | 307,294 |
Collateral pledged | 621,526 | 320,285 |
Originations Segment | Warehouse Facility $500 Million [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 500,000 | |
Outstanding Amount | 174,702 | 176,194 |
Collateral pledged | 178,923 | 179,994 |
Originations Segment | Warehouse Facility $500 Million (2013) [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 500,000 | |
Outstanding Amount | 257,479 | 183,290 |
Collateral pledged | 274,497 | 192,990 |
Originations Segment | Warehouse Facility $350 Million [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 350,000 | |
Outstanding Amount | 97,790 | 210,049 |
Collateral pledged | 111,541 | 223,849 |
Originations Segment | Warehouse Facility $200 Million [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 200,000 | |
Outstanding Amount | 8,531 | 0 |
Collateral pledged | 9,052 | 0 |
Originations Segment | Warehouse Facility $300 Million Facility Due 2016 [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 300,000 | |
Outstanding Amount | 23,014 | 0 |
Collateral pledged | 27,769 | 0 |
Originations Segment | Warehouse Facility $200 Million Due 2016 [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 200,000 | |
Outstanding Amount | 45,106 | 0 |
Collateral pledged | 50,083 | 0 |
Originations Segment | Warehouse Facility $75 Million [Member] [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 75,000 | |
Outstanding Amount | 53,102 | 23,949 |
Collateral pledged | 59,563 | 29,324 |
Originations Segment | Warehouse Facility $50 Million (HCM) [Domain] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 100,000 | |
Outstanding Amount | 55,157 | 8,679 |
Collateral pledged | 60,581 | 9,044 |
Originations Segment | Warehouse Facility $1.5 Billion [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 1,300,000 | |
Secured Debt | Servicing Segment | Agency Advance Financing Facility (2011) [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding Amount | 100,000 | |
Face amount | $ 300,000 | |
Long-term Debt, Weighted Average Interest Rate | 2.10% | |
Debt Instrument, Term | 5 years | |
Loans Held-for-sale, Mortgages [Member] | Originations Segment | ||
Debt Instrument [Line Items] | ||
Outstanding Amount | $ 1,542,663 | 1,196,956 |
Collateral pledged | 1,681,352 | 1,241,043 |
Reverse Mortgages | Originations Segment | ||
Debt Instrument [Line Items] | ||
Outstanding Amount | 350,863 | 375,666 |
Collateral pledged | $ 389,958 | $ 411,700 |
London Interbank Offered Rate (LIBOR) [Member] | Servicing Segment | Securities Repurchase Facility (2011) [Member] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Servicing Segment | MBS Advance Financing Facility 2012 [Member] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 5.00% | |
London Interbank Offered Rate (LIBOR) [Member] | Servicing Segment | NSM Advance Receivable Trust (2013) [Member] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
London Interbank Offered Rate (LIBOR) [Member] | Servicing Segment | MBS Servicer Advance Facility (2014) [Domain] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Servicing Segment | Nationstar Agency Advance Receivables Trust [Member] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $200 Million [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $300 Million Facility Due 2016 [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |
Minimum | London Interbank Offered Rate (LIBOR) [Member] | Servicing Segment | MBS Advance Financing Facility [Member] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
Minimum | London Interbank Offered Rate (LIBOR) [Member] | Servicing Segment | Agency Advance Financing Facility (2011) [Member] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.20% | |
Minimum | London Interbank Offered Rate (LIBOR) [Member] | Servicing Segment | NSM Advance Receivable Trust (2014-BC) [Domain] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
Minimum | London Interbank Offered Rate (LIBOR) [Member] | Servicing Segment | Securities Repurchase Facility (2014) [Domain] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
Minimum | London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $1.3 Billion [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
Minimum | London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $1.0 Billion [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
Minimum | London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $500 Million [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
Minimum | London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $500 Million (2013) [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
Minimum | London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $350 Million [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.20% | |
Minimum | London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $200 Million Due 2016 [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |
Minimum | London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $75 Million [Member] [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |
Minimum | London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $50 Million (HCM) [Domain] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
Maximum | London Interbank Offered Rate (LIBOR) [Member] | Servicing Segment | MBS Advance Financing Facility [Member] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | |
Maximum | London Interbank Offered Rate (LIBOR) [Member] | Servicing Segment | Agency Advance Financing Facility (2011) [Member] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | |
Maximum | London Interbank Offered Rate (LIBOR) [Member] | Servicing Segment | NSM Advance Receivable Trust (2014-BC) [Domain] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |
Maximum | London Interbank Offered Rate (LIBOR) [Member] | Servicing Segment | Securities Repurchase Facility (2014) [Domain] | Notes Payable, Other | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |
Maximum | London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $1.3 Billion [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.875% | |
Maximum | London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $1.0 Billion [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | |
Maximum | London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $500 Million [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |
Maximum | London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $500 Million (2013) [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
Maximum | London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $350 Million [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | |
Maximum | London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $200 Million Due 2016 [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.875% | |
Maximum | London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $75 Million [Member] [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.875% | |
Maximum | London Interbank Offered Rate (LIBOR) [Member] | Originations Segment | Warehouse Facility $50 Million (HCM) [Domain] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.75% |
Unsecured Senior Notes (Details
Unsecured Senior Notes (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Unsecured senior notes | $ 2,048,694,000 | $ 2,159,231,000 |
Unsecured Senior Notes | ||
Debt Instrument [Line Items] | ||
Face amount | 2,048,694,000 | |
Unsecured Senior Notes | $475 million face value, 6.500% interest rate payable semi-annually, due August 2018 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | 475,000,000 | 475,000,000 |
Face amount | $ 475,000,000 | |
Interest rate | 6.50% | |
Unsecured Senior Notes | $375 million face value, 9.625% interest rate payable semi-annually, due May 2019 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | $ 362,750,000 | 378,555,000 |
Face amount | $ 375,000,000 | |
Interest rate | 9.625% | |
Unsecured Senior Notes | $400 million face value, 7.875% interest rate payable semi-annually, due October 2020 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | $ 400,448,000 | 400,541,000 |
Face amount | $ 400,000,000 | |
Interest rate | 7.875% | |
Unsecured Senior Notes | $600 million face value, 6.500% interest rate payable semi-annually, due July 2021 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | $ 596,955,000 | 605,135,000 |
Face amount | $ 600,000,000 | |
Interest rate | 6.50% | |
Unsecured Senior Notes | $300 million face value, 6.500% interest rate payable semi-annually, due June 2022 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | $ 213,541,000 | $ 300,000,000 |
Face amount | $ 300,000,000 | |
Interest rate | 6.50% |
Unsecured Notes Maturity Schedu
Unsecured Notes Maturity Schedule (Details) - Unsecured Senior Notes $ in Thousands | Dec. 31, 2015USD ($) |
Expected maturities of long-term debt | |
2,015 | $ 0 |
2,016 | 0 |
2,017 | 0 |
2,018 | 475,000 |
2,019 | 362,750 |
Thereafter | 1,210,944 |
Total | $ 2,048,694 |
Indebtedness Non-Recourse Debt
Indebtedness Non-Recourse Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Other nonrecourse debt | $ 6,670,598 | $ 1,768,311 |
Nonrecourse debt - legacy assets | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt | 64,800 | 75,800 |
Carrying Amount | Nonrecourse debt - legacy assets | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt | 75,838 | |
Carrying Amount | Fair Value, Measurements, Recurring | Participating interest financing | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt | 5,947,407 | 1,433,145 |
Carrying Amount | Fair Value, Measurements, Recurring | 2014-1 HECM securitization | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt | 226,851 | 259,328 |
Carrying Amount | Fair Value, Measurements, Recurring | 2015-1 HECM securitization | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt | 222,495 | 0 |
Carrying Amount | Fair Value, Measurements, Recurring | 2015-2 HECM securitization | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt | 209,030 | 0 |
Carrying Amount | Fair Value, Measurements, Recurring | Nonrecourse debt - legacy assets | ||
Debt Instrument [Line Items] | ||
Other nonrecourse debt | $ 64,815 | $ 75,838 |
Indebtedness Narrative (Details
Indebtedness Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Nov. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Nov. 30, 2009 | |
Debt Instrument [Line Items] | |||||||
Repurchased outstanding notes | $ 108,900 | ||||||
Gain on repurchase of debt instrument | 8,200 | ||||||
Maximum Percentage Redeemable of Aggregate Principal on Unsecured Debt | 35.00% | ||||||
Advance facilities | 1,646,123 | $ 1,646,123 | $ 1,901,783 | ||||
Principal Amount Outstanding on Loans Securitized or Asset-backed Financing Arrangement | $ 222,000 | ||||||
Nonrecourse debt | 6,670,598 | 6,670,598 | 1,768,311 | ||||
Minimum Tangible Net Worth Required for Compliance | 681,700 | 681,700 | |||||
2014-1 HECM securitization | |||||||
Debt Instrument [Line Items] | |||||||
Reverse Mortgage Interest, Unpaid Principal Balance, Securitized | 343,600 | ||||||
Class A Notes | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding note balance | 70,400 | ||||||
Class M Notes | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding note balance | 36,200 | ||||||
Class A and Class M Notes | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from sale of notes | $ 73,100 | ||||||
2015-1 HECM securitization | |||||||
Debt Instrument [Line Items] | |||||||
Reverse Mortgage Interest, Unpaid Principal Balance, Securitized | $ 269,400 | ||||||
2015-2 HECM securitization | |||||||
Debt Instrument [Line Items] | |||||||
Reverse Mortgage Interest, Unpaid Principal Balance, Securitized | $ 217,300 | ||||||
Nonrecourse debt - legacy assets | |||||||
Debt Instrument [Line Items] | |||||||
Nonrecourse debt | 64,800 | 64,800 | 75,800 | ||||
Nonrecourse debt–legacy assets | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Principal Amount Outstanding | 75,400 | $ 75,400 | 88,200 | ||||
Notes Payable, Mortgage Backed Securities | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, minimum | 0.50% | ||||||
Interest rate, maximum | 7.00% | ||||||
Secured Debt | Nonrecourse debt–legacy assets | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 7.50% | ||||||
Servicing Segment | |||||||
Debt Instrument [Line Items] | |||||||
Advance facilities | 1,646,123 | $ 1,646,123 | 1,901,783 | ||||
Securities Pledged as Collateral | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount Outstanding on Loans Securitized or Asset-backed Financing Arrangement | $ 242,400 | $ 242,400 | $ 268,200 |
Payables and Accrued Liabilit85
Payables and Accrued Liabilities Payables and Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Payables and Accruals [Abstract] | |||
Payables to servicing and subservicing investors | $ 483,535 | $ 329,306 | |
Loans subject to repurchase from Ginnie Mae | 117,163 | 131,592 | |
Accrued bonus and payroll | 96,381 | 85,366 | |
Payables to GSEs | 87,748 | 67,311 | |
Taxes | 81,102 | 96,237 | |
Payable to insurance carriers and insurance cancellation reserves | 69,936 | 163,381 | |
Accrued interest | 61,071 | 59,708 | |
Repurchase reserves | 26,404 | 29,165 | $ 40,695 |
Payables to securitization trusts | 24,910 | 99,137 | |
MSR purchases payable including advances | 21,851 | 45,697 | |
Other | 226,286 | 215,178 | |
Total payables and accrued liabilities | $ 1,296,387 | $ 1,322,078 |
Payables and Accrued Liabilit86
Payables and Accrued Liabilities Repurchase Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loans Subject to Repurchase Reserve [Roll Forward] | ||
Repurchase Reserve | $ 29,165 | $ 40,695 |
Provision | 9,781 | 12,556 |
Charge-offs and release | (12,542) | (24,086) |
Repurchase Reserve | 26,404 | $ 29,165 |
Reduction in repurchase reserve | $ 2,800 |
Securitizations and Financing87
Securitizations and Financings Assets and Liabilities of Consolidated VIEs (Details) - USD ($) | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||||
Assets | $ 1,852,682,000 | $ 1,760,455,000 | ||
Reverse Secured Borrowings, Assets, Carrying Amount | 6,582,555,000 | 1,720,070,000 | ||
Liabilities | 1,475,189,000 | 1,408,425,000 | ||
Reverse Secured Borrowings, Liabilities, Carrying Amount | 6,606,448,000 | 1,692,659,000 | ||
Residential Mortgage | Restricted cash | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||||
Assets | 94,361,000 | 90,068,000 | ||
Reverse Secured Borrowings, Assets, Carrying Amount | 36,089,000 | 15,578,000 | ||
Residential Mortgage | Reverse Mortgages | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||||
Assets | 0 | 0 | ||
Reverse Secured Borrowings, Assets, Carrying Amount | 6,546,466,000 | 1,704,492,000 | ||
Residential Mortgage | Accounts Receivable | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||||
Assets | 1,580,966,000 | 1,477,388,000 | ||
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 | 172,810,000 | 189,456,000 | ||
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 | 7,000 | 865,000 | ||
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 | 4,538,000 | 2,678,000 | ||
Reverse Secured Borrowings, Assets, Carrying Amount | 0 | 0 | ||
Residential Mortgage | Advance facilities | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||||
Liabilities | 1,408,258,000 | 1,330,991,000 | ||
Reverse Secured Borrowings, Liabilities, Carrying Amount | 0 | 0 | ||
Residential Mortgage | Payables and accrued liabilities | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||||
Liabilities | 2,116,000 | 1,596,000 | ||
Reverse Secured Borrowings, Liabilities, Carrying Amount | 665,000 | 186,000 | ||
Residential Mortgage | Nonrecourse debt–legacy assets | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||||
Liabilities | 64,815,000 | 75,838,000 | ||
Reverse Secured Borrowings, Liabilities, Carrying Amount | 0 | 0 | ||
Residential Mortgage | 2014-1 HECM securitization | 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 | 226,851,000 | 259,328,000 | ||
Residential Mortgage | 2015-1 HECM securitization | 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 | 222,495,000 | 0 | ||
Residential Mortgage | 2015-2 HECM securitization | 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 | 209,030,000 | 0 | ||
Residential Mortgage | HMBS Securities | Participating interest financing | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||||
Liabilities | 0 | 0 | ||
Reverse Secured Borrowings, Liabilities, Carrying Amount | $ 5,947,407,000 | $ 1,433,145,000 | ||
Primary Beneficiary | NAAFT | ||||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||||
Capacity Amount | $ 900,000,000 | $ 1,200,000,000 |
Securitizations and Financing88
Securitizations and Financings Securitization Structured as a Sale (Details) - Mortgage-backed Securities, Issued by Private Enterprises [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Net Bond Proceeds | $ 164,297 |
Carrying Value of Loans Sold | 158,204 |
Gain Recognized | $ 6,093 |
Securitizations and Financing89
Securitizations and Financings Securitization Trusts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Variable Interest Entities and Securitizations [Abstract] | |||
Total certificate balances | $ 3,113,784 | $ 3,258,472 | |
Total collateral balances | 2,810,903 | 3,297,256 | |
Unconsolidated securitization trusts | 727,879 | 861,419 | |
Unconsolidated securitization trusts | $ 215,983 | $ 275,726 | $ 251,076 |
Securitizations and Financing90
Securitizations and Financings Cash Flows from Securitization Trust (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Variable Interest Entities and Securitizations [Abstract] | |||
Servicing Fees Received | $ 29,151 | $ 24,233 | $ 28,284 |
Loan Repurchases | $ 0 | $ 0 | $ 0 |
Income Taxes Income Taxes Incom
Income Taxes Income Taxes Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current | |||||||||||
Current Federal Tax Expense (Benefit) | $ 59,218 | $ 46,381 | $ 4,636 | ||||||||
Current State and Local Tax Expense (Benefit) | 3,534 | 7,608 | (1,059) | ||||||||
Current Income Tax Expense (Benefit) | 62,752 | 53,989 | 3,577 | ||||||||
Deferred | |||||||||||
Deferred Federal Income Tax Expense (Benefit) | (50,426) | 6,360 | 114,466 | ||||||||
Deferred State and Local Income Tax Expense (Benefit) | (1,314) | 4,511 | 11,157 | ||||||||
Deferred Income Tax Expense (Benefit) | (51,740) | 10,871 | 125,623 | ||||||||
Income tax expense | $ 41,661 | $ (47,295) | $ 44,171 | $ (27,525) | $ 12,618 | $ (1,700) | $ 38,941 | $ 15,001 | $ 11,012 | $ 64,860 | $ 129,200 |
Income Taxes Income Taxes at fe
Income Taxes Income Taxes at federal statutory rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amount | |||||||||||
Tax Expense at Federal Statutory Rate | $ 18,961 | $ 100,058 | $ 121,186 | ||||||||
State taxes, net of federal benefit | (208) | 8,330 | 5,465 | ||||||||
Noncontrolling interest | (1,488) | (126) | 42 | ||||||||
Increase/(decrease) of valuation allowance | (3,273) | (40,275) | 1,099 | ||||||||
Deferred adjustments | (5,484) | (1,477) | 1,046 | ||||||||
Current payable adjustments | 2,209 | (2,058) | 0 | ||||||||
Other, net | 295 | 408 | 362 | ||||||||
Income tax expense | $ 41,661 | $ (47,295) | $ 44,171 | $ (27,525) | $ 12,618 | $ (1,700) | $ 38,941 | $ 15,001 | $ 11,012 | $ 64,860 | $ 129,200 |
Percent | |||||||||||
Tax Expense at Federal Statutory Rate | 35.00% | 35.00% | 35.00% | ||||||||
State taxes, net of federal benefit | (0.40%) | 2.90% | 1.60% | ||||||||
Noncontrolling interest | (2.70%) | 0.00% | 0.00% | ||||||||
Increase/(decrease) of valuation allowance | (6.10%) | (14.10%) | 0.30% | ||||||||
Deferred adjustments | (10.10%) | (0.50%) | 0.30% | ||||||||
Current payable adjustments | 4.00% | (0.80%) | 0.00% | ||||||||
Other, net | 0.60% | 0.20% | 0.10% | ||||||||
Total income tax expense | 20.30% | 22.70% | 37.30% |
Income Taxes Carryforward and T
Income Taxes Carryforward and Temporary Differences (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets | ||
Loss carryforwards (federal, state & capital) | $ 63,957 | $ 67,799 |
Loss reserves | 56,587 | 41,467 |
Reverse mortgage premiums | 25,903 | 26,227 |
Rent expense | 6,218 | 2,138 |
Restricted share based compensation | 8,848 | 7,806 |
Accruals | 14,603 | 3,354 |
Goodwill and intangible assets | 0 | 994 |
Other, net | 9,066 | 9,201 |
Total deferred tax assets | 185,182 | 158,986 |
Deferred Tax Liabilities | ||
MSR amortization and mark-to-market, net | (197,763) | (228,987) |
Depreciation and amortization, net | (38,477) | (32,564) |
Prepaid assets | (2,549) | (889) |
Goodwill and intangible assets | (5,565) | 0 |
Total deferred tax liabilities | (244,354) | (262,440) |
Valuation allowance | (3,907) | (6,391) |
Net deferred tax liability | $ (63,079) | $ (109,845) |
Income Taxes Income Tax Expense
Income Taxes Income Tax Expense Paragraph (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2015 | Mar. 31, 2012 | |
Tax Credit Carryforward [Line Items] | |||||
Deferred True-up Tax Benefit | $ 5,500 | ||||
Current Payable True-up Tax Expense | 2,200 | ||||
Release of valuation allowance | $ 4,000 | $ 3,800 | $ 44,200 | ||
Excluding deferred tax asset valuation allowance | 26.40% | 36.80% | |||
Decrease resulting from prior period tax positions | 16,500 | ||||
Limit based on entity reorganization | $ 5,000 | $ 5,000 | |||
Valuation allowance | 3,907 | $ 6,391 | |||
Deferred tax liabilities | 244,354 | 262,440 | |||
Limitations on use | $ 11,500 | 11,000 | |||
Federal | |||||
Tax Credit Carryforward [Line Items] | |||||
Valuation allowance | 2,200 | ||||
Internal Revenue Service (IRS) | |||||
Tax Credit Carryforward [Line Items] | |||||
Operating loss carryforwards | 175,400 | $ 164,600 | |||
Tax Year 2009 | Federal | |||||
Tax Credit Carryforward [Line Items] | |||||
Valuation allowance | 200 | ||||
Operating loss carryforwards | $ 500 | ||||
Experience 1, Inc | |||||
Tax Credit Carryforward [Line Items] | |||||
Valuation allowance | $ 800 | ||||
Deferred tax liabilities | $ 5,000 |
Fair Value Measurements - Measu
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Mortgage loans held for sale | $ 1,429,691 | $ 1,277,931 |
Mortgage servicing rights | 3,358,327 | 2,949,739 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 68,700 | 49,400 |
Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Mortgage loans held for sale | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Total assets | 0 | 0 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 0 | 0 |
Excess spread financing - fair value | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Mortgage loans held for sale | 1,429,691 | 1,277,931 |
Mortgage servicing rights | 0 | 0 |
Total assets | 1,529,390 | 1,368,982 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 0 | 0 |
Excess spread financing - fair value | 0 | 0 |
Total liabilities | 5,823 | 18,525 |
Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Mortgage loans held for sale | 0 | 0 |
Mortgage servicing rights | 3,358,327 | 2,949,739 |
Total assets | 3,358,327 | 2,949,739 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 68,696 | 49,430 |
Excess spread financing - fair value | 1,232,086 | 1,031,035 |
Total liabilities | 1,300,782 | 1,080,465 |
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Fair Value - Asset | 89,138 | 87,902 |
LIABILITIES | ||
Fair Value - Liability | 5 | 7 |
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Forward Contracts | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Forward Contracts | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Fair Value - Asset | 6,123 | 284 |
LIABILITIES | ||
Fair Value - Liability | 3,746 | 18,360 |
Forward Contracts | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Loan Purchase Commitments | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Loan Purchase Commitments | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Fair Value - Asset | 3,872 | 1,999 |
LIABILITIES | ||
Fair Value - Liability | 1,454 | 48 |
Loan Purchase Commitments | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Interest Rate Swap | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Interest Rate Swap | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Fair Value - Asset | 506 | 865 |
LIABILITIES | ||
Fair Value - Liability | 542 | 103 |
Interest Rate Swap | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Future | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Future | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Fair Value - Asset | 60 | 1 |
LIABILITIES | ||
Fair Value - Liability | 76 | 7 |
Future | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Fair Value - Asset | 0 | 0 |
LIABILITIES | ||
Fair Value - Liability | 0 | 0 |
Total Fair Value | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Mortgage loans held for sale | 1,429,691 | 1,277,931 |
Mortgage servicing rights | 3,358,327 | 2,949,739 |
Total assets | 4,887,717 | 4,318,721 |
LIABILITIES | ||
Mortgage servicing rights financing liability - fair value | 68,696 | 49,430 |
Excess spread financing - fair value | 1,232,086 | 1,031,035 |
Total liabilities | $ 1,306,605 | 1,098,990 |
Total Fair Value | Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Fair Value - Asset | 87,902 | |
LIABILITIES | ||
Fair Value - Liability | 7 | |
Total Fair Value | Forward Contracts | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Fair Value - Asset | 284 | |
LIABILITIES | ||
Fair Value - Liability | 18,360 | |
Total Fair Value | Loan Purchase Commitments | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Fair Value - Asset | 1,999 | |
LIABILITIES | ||
Fair Value - Liability | 48 | |
Total Fair Value | Interest Rate Swap | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Fair Value - Asset | 865 | |
LIABILITIES | ||
Fair Value - Liability | 103 | |
Total Fair Value | Future | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Fair Value - Asset | 1 | |
LIABILITIES | ||
Fair Value - Liability | $ 7 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements - Reconciliation of Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Excess Spread Financing | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 986,410 | $ 986,410 | $ 1,031,035 | $ 986,410 |
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Included in earnings | 25,631 | 57,554 | ||
Included in other comprehensive income | 0 | 0 | ||
Purchases, issuances, sales and settlements | ||||
Purchases | 0 | 0 | ||
Issuances | 385,637 | 171,317 | ||
Sales | 0 | 0 | ||
Settlements | (210,217) | (184,246) | ||
Dispositions | 0 | |||
Ending balance | 1,232,086 | 1,031,035 | ||
Mortgage Servicing Right Liability | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 29,874 | 29,874 | 49,430 | 29,874 |
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Included in earnings | 19,266 | (33,279) | ||
Included in other comprehensive income | 0 | 0 | ||
Purchases, issuances, sales and settlements | ||||
Purchases | 0 | 0 | ||
Issuances | 0 | 52,835 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Dispositions | 0 | |||
Ending balance | 68,696 | 49,430 | ||
Mortgage Servicing Rights | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 2,488,283 | 2,488,283 | 2,949,739 | 2,488,283 |
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Included in earnings | (496,990) | (247,379) | ||
Included in other comprehensive income | 0 | 0 | ||
Purchases, issuances, sales and settlements | ||||
Purchases of servicing assets | 470,543 | 729,984 | 470,543 | |
Servicing resulting from transfers of financial assets | $ 238,292 | 221,762 | 238,292 | |
Sales | 0 | 0 | ||
Settlements | 0 | 0 | ||
Dispositions | $ 0 | (46,168) | ||
Ending balance | $ 3,358,327 | $ 2,949,739 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets | ||
Restricted cash | $ 332,105 | $ 285,530 |
Mortgage loans held for sale | 1,429,691 | 1,277,931 |
Mortgage loans held for investment, net | 173,650 | 191,569 |
Reverse mortgage interests | 7,514,323 | 2,453,069 |
Derivative financial instruments | 99,199 | 91,051 |
Financial liabilities | ||
Unsecured senior notes | 2,048,694 | 2,159,231 |
Advance facilities | 1,646,123 | 1,901,783 |
Warehouse facilities | 1,893,526 | 1,572,622 |
Derivative financial instruments | 5,323 | 18,525 |
Excess spread financing | 1,200,000 | 1,000,000 |
Mortgage servicing rights financing liability - fair value | 68,700 | 49,400 |
Other nonrecourse debt | 6,670,598 | 1,768,311 |
Fair Value, Measurements, Recurring | Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 613,241 | 299,002 |
Restricted cash | 332,105 | 285,530 |
Mortgage loans held for sale | 0 | 0 |
Mortgage loans held for investment, net | 0 | 0 |
Advances, net | 0 | |
Reverse mortgage interests | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Financial liabilities | ||
Unsecured senior notes | 1,911,777 | 2,057,038 |
Advance facilities | 0 | 0 |
Warehouse facilities | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Excess spread financing - fair value | 0 | 0 |
Excess spread financing | 0 | |
Mortgage servicing rights financing liability - fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Mortgage loans held for sale | 1,429,691 | 1,277,931 |
Mortgage loans held for investment, net | 0 | 0 |
Advances, net | 0 | |
Reverse mortgage interests | 0 | 0 |
Derivative financial instruments | 99,199 | 91,051 |
Financial liabilities | ||
Unsecured senior notes | 0 | 0 |
Advance facilities | 1,646,123 | 1,901,783 |
Warehouse facilities | 1,893,526 | 1,572,622 |
Derivative financial instruments | 5,323 | 18,525 |
Excess spread financing - fair value | 0 | 0 |
Excess spread financing | 0 | |
Mortgage servicing rights financing liability - fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Mortgage loans held for investment, net | 174,147 | 192,865 |
Advances, net | 2,223,083 | 2,544,699 |
Reverse mortgage interests | 7,705,475 | 2,502,157 |
Derivative financial instruments | 0 | 0 |
Financial liabilities | ||
Unsecured senior notes | 0 | 0 |
Advance facilities | 0 | 0 |
Warehouse facilities | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Excess spread financing - fair value | 1,232,086 | 1,031,035 |
Excess spread financing | 1,031,035 | |
Mortgage servicing rights financing liability - fair value | 68,696 | 49,430 |
Nonrecourse debt - legacy assets | ||
Financial liabilities | ||
Other nonrecourse debt | 64,800 | 75,800 |
Nonrecourse debt - legacy assets | Fair Value, Measurements, Recurring | Level 1 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | 0 |
Nonrecourse debt - legacy assets | Fair Value, Measurements, Recurring | Level 2 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | 0 |
Nonrecourse debt - legacy assets | Fair Value, Measurements, Recurring | Level 3 | ||
Financial liabilities | ||
Other nonrecourse debt | 74,264 | 86,570 |
Participating interest financing | Fair Value, Measurements, Recurring | Level 1 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | 0 |
Participating interest financing | Fair Value, Measurements, Recurring | Level 2 | ||
Financial liabilities | ||
Other nonrecourse debt | 6,091,285 | 1,423,291 |
Participating interest financing | Fair Value, Measurements, Recurring | Level 3 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | 0 |
2014-1 HECM securitization | Fair Value, Measurements, Recurring | Level 1 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | 0 |
2014-1 HECM securitization | Fair Value, Measurements, Recurring | Level 2 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | 0 |
2014-1 HECM securitization | Fair Value, Measurements, Recurring | Level 3 | ||
Financial liabilities | ||
Other nonrecourse debt | 298,048 | 259,328 |
2015-1 HECM securitization | Fair Value, Measurements, Recurring | Level 1 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | |
2015-1 HECM securitization | Fair Value, Measurements, Recurring | Level 2 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | |
2015-1 HECM securitization | Fair Value, Measurements, Recurring | Level 3 | ||
Financial liabilities | ||
Other nonrecourse debt | 275,223 | |
2015-2 HECM securitization | Fair Value, Measurements, Recurring | Level 1 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | |
2015-2 HECM securitization | Fair Value, Measurements, Recurring | Level 2 | ||
Financial liabilities | ||
Other nonrecourse debt | 0 | |
2015-2 HECM securitization | Fair Value, Measurements, Recurring | Level 3 | ||
Financial liabilities | ||
Other nonrecourse debt | 249,507 | |
Carrying Amount | ||
Financial assets | ||
Restricted cash | 285,530 | |
Mortgage loans held for sale | 1,277,931 | |
Mortgage loans held for investment, net | 191,569 | |
Reverse mortgage interests | 2,453,069 | |
Financial liabilities | ||
Unsecured senior notes | 2,159,231 | |
Advance facilities | 1,901,783 | |
Warehouse facilities | 1,572,622 | |
Derivative financial instruments | 18,525 | |
Excess spread financing | 1,031,035 | |
Mortgage servicing rights financing liability - fair value | 49,430 | |
Carrying Amount | Fair Value, Measurements, Recurring | ||
Financial assets | ||
Cash and cash equivalents | 613,241 | 299,002 |
Mortgage loans held for sale | 1,429,691 | |
Mortgage loans held for investment, net | 173,650 | |
Advances, net | 2,223,083 | 2,544,699 |
Reverse mortgage interests | 7,514,323 | |
Derivative financial instruments | 99,199 | 91,051 |
Financial liabilities | ||
Unsecured senior notes | 2,048,694 | |
Advance facilities | 1,646,123 | |
Warehouse facilities | 1,893,526 | |
Derivative financial instruments | 5,323 | |
Excess spread financing - fair value | 1,232,086 | |
Mortgage servicing rights financing liability - fair value | 68,696 | |
Carrying Amount | Nonrecourse debt - legacy assets | ||
Financial liabilities | ||
Other nonrecourse debt | 75,838 | |
Carrying Amount | Nonrecourse debt - legacy assets | Fair Value, Measurements, Recurring | ||
Financial liabilities | ||
Other nonrecourse debt | 64,815 | 75,838 |
Carrying Amount | Participating interest financing | Fair Value, Measurements, Recurring | ||
Financial liabilities | ||
Other nonrecourse debt | 5,947,407 | 1,433,145 |
Carrying Amount | 2014-1 HECM securitization | Fair Value, Measurements, Recurring | ||
Financial liabilities | ||
Other nonrecourse debt | 226,851 | 259,328 |
Carrying Amount | 2015-1 HECM securitization | Fair Value, Measurements, Recurring | ||
Financial liabilities | ||
Other nonrecourse debt | 222,495 | 0 |
Carrying Amount | 2015-2 HECM securitization | Fair Value, Measurements, Recurring | ||
Financial liabilities | ||
Other nonrecourse debt | $ 209,030 | $ 0 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 2.00% | ||
Employer Matching on Contribution of gross pay greater than two percent up to four percent | 50.00% | ||
Percentage of employee gross pay, employer contribute | 4.00% | ||
Defined Contribution Plan, Cost Recognized | $ 12.4 | $ 11.5 | $ 11.1 |
Share-based Compensation (Detai
Share-based Compensation (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 09, 2016 | Dec. 17, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated Share-based Compensation Expense | $ 19,500,000 | $ 18,600,000 | $ 10,600,000 | |||
Share based compensation expense, 2016 | 15,000,000 | |||||
Share based compensation expense, 2017 | 7,000,000 | |||||
Share based compensation expense, 2018 | 2,200,000 | |||||
Share based compensation expense, 2019 | 400,000 | |||||
Surrender of shares relating to stock vesting | $ 6,224,000 | $ 5,489,000 | $ 6,944,000 | |||
Repurchase of common stock (in shares) | 837,000 | |||||
Nonvested weighted average remaining term (in years) | 1 year 3 months 18 days | |||||
Nonvested weighted share price (in dollars per share) | $ 21.40 | |||||
Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized amount to repurchase | $ 150,000,000 | |||||
Repurchase of common stock (in shares) | 504,000 | |||||
Shares repurchased and settled during 2015 (in shares) | 504,000 | |||||
Shares repurchased and settled during 2016 (in shares) | 333,000 | |||||
Subsequent Event | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional authorized amount for repurchase plan | $ 100,000,000 | |||||
Aggregate authorized amount to repurchase | $ 250,000,000 | |||||
Equity offering [Member] | ||||||
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 | $ 497,800,000 | |||||
Stock Appreciation Rights (SARs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of equity awards granted (in shares) | 267,000 | |||||
Vesting period (in years) | 3 years | |||||
Expiration term (in years) | 10 years |
Share-based Compensation - Rest
Share-based Compensation - Restricted Stock Rollforward (Details) - Two Thousand Twelve Plan - Restricted Stock - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning of Period (shares) | 1,429 | 1,066 | 1,293 |
Granted (shares) | 1,446 | 1,042 | 307 |
Forfeited in Period (shares) | (336) | (151) | (56) |
Vested in Period (shares) | (456) | (354) | (310) |
Treasury Stock, Shares, Acquired | (246) | (174) | (168) |
Ending of Period (shares) | 1,837 | 1,429 | 1,066 |
Nonvested and Expected to Vest, Number (shares) | 1,563 | ||
Vested and Payable, Number (shares) | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 23.03 | $ 31.65 | $ 37.88 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 27.58 | $ 28.01 | $ 20.46 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 2 years 4 months | 1 year 7 months | 2 months |
Share-based Compensation Vestin
Share-based Compensation Vesting Schedule of Restricted Stock (Details) - Two Thousand Twelve Plan - Restricted Stock shares in Thousands | Dec. 31, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award | |
Nonvested and Expected to Vest, Number (shares) | 1,563 |
Current year vesting | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Nonvested and Expected to Vest, Number (shares) | 668 |
Vesting in Year One | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Nonvested and Expected to Vest, Number (shares) | 488 |
Vesting in Year Two | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Nonvested and Expected to Vest, Number (shares) | 332 |
Vesting in Year Three | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Nonvested and Expected to Vest, Number (shares) | 75 |
Capital Requirements (Details)
Capital Requirements (Details) $ in Billions | Dec. 31, 2015USD ($) |
Mortgage Banking [Abstract] | |
Minimum Net Worth Required for Compliance | $ 1.2 |
Commitments and Contingencies -
Commitments and Contingencies - Lease Commitments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 28,637 |
2,017 | 24,837 |
2,018 | 22,847 |
2,019 | 18,689 |
2020 and thereafter | 28,156 |
Total | $ 123,166 |
Commitments and Contingencie104
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Feb. 28, 2013 | |
Mortgage Servicing Rights [Line Items] | |||||
Refund payments for delay in loan modifications | $ 16.2 | ||||
Operating lease term, in years | 7 years 6 months | ||||
Early termination option for operating leases, in years | 5 years | ||||
Rental expense | $ 21.2 | $ 22.1 | $ 27.4 | ||
Principal amount outstanding on mortgage servicing rights | $ 4,600 | ||||
Litigation and Regulatory Matters [Member] | |||||
Mortgage Servicing Rights [Line Items] | |||||
Legal Fees | 53.7 | 29.2 | $ 20.4 | ||
Reasonably possible loss, min | 16.6 | ||||
Reasonably possible loss, max | 50.7 | ||||
Reverse Mortgages | |||||
Mortgage Servicing Rights [Line Items] | |||||
Principal amount outstanding on mortgage servicing rights | 29,900 | $ 28,000 | $ 83.1 | ||
Maximum unfunded advance obligation | $ 3,200 |
Restructuring Charges Restructu
Restructuring Charges Restructuring Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 12,508 | $ (581) | $ 12,873 |
Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 100 | (581) | 4,108 |
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 12,408 | 0 | 8,765 |
General and administrative expenses | Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 100 | (600) | 4,100 |
Salaries, Wages and Benefits | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 12,400 | $ 0 | $ 8,800 |
Restructuring Charges Restru106
Restructuring Charges Restructuring Charges Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve | $ 3,979 | $ 13,286 | $ 7,186 |
Restructuring Charges | 12,508 | (581) | 12,873 |
Payments for Restructuring | (6,704) | (8,726) | (6,773) |
Restructuring Reserve | 9,783 | 3,979 | 13,286 |
Employee Severance | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve | 0 | 4,650 | 0 |
Restructuring Charges | 12,408 | 0 | 8,765 |
Payments for Restructuring | (3,475) | (4,650) | (4,115) |
Restructuring Reserve | 8,933 | 0 | 4,650 |
Contract Termination | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve | 3,979 | 8,636 | 7,186 |
Restructuring Charges | 100 | (581) | 4,108 |
Payments for Restructuring | (3,229) | (4,076) | (2,658) |
Restructuring Reserve | $ 850 | $ 3,979 | $ 8,636 |
Business Segment Reporting - Fi
Business Segment Reporting - Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||||||||||
Service related | $ 420,603 | $ 211,311 | $ 457,723 | $ 215,123 | $ 334,213 | $ 351,070 | $ 362,916 | $ 327,663 | $ 1,304,760 | $ 1,375,862 | $ 1,384,222 |
Net gain on mortgage loans held for sale | 167,123 | 185,872 | 163,886 | 166,994 | 115,151 | 153,254 | 186,817 | 141,984 | 683,875 | 597,206 | 702,763 |
Total revenues | 587,726 | 397,183 | 621,609 | 382,117 | 449,364 | 504,324 | 549,733 | 469,647 | 1,988,635 | 1,973,068 | 2,086,985 |
Total expenses | 416,530 | 446,221 | 440,985 | 383,843 | 362,623 | 327,224 | 346,711 | 321,133 | 1,687,579 | 1,357,691 | 1,402,278 |
Other income (expenses): | |||||||||||
Interest income | 350,755 | 179,592 | 197,220 | ||||||||
Interest expense | (605,223) | (516,387) | (538,805) | ||||||||
Gain on disposal of property | 0 | 4,898 | 0 | ||||||||
Gain on repurchase of unsecured senior notes | 8,237 | 0 | 0 | ||||||||
Loss on equity method investments | 0 | ||||||||||
Gain (loss) on interest rate swaps and caps | (650) | 2,404 | 3,132 | ||||||||
Total other income (expense) | (50,441) | (63,186) | (60,613) | (72,641) | (54,702) | (67,521) | (97,434) | (109,836) | (246,881) | (329,493) | (338,453) |
Income (loss) before taxes | 120,755 | $ (112,224) | $ 120,011 | $ (74,367) | 32,039 | $ 109,579 | $ 105,588 | $ 38,678 | 54,175 | 285,884 | 346,254 |
Depreciation and amortization | 53,497 | 40,166 | 26,615 | ||||||||
Assets | 16,654,070 | 11,112,675 | 16,654,070 | 11,112,675 | 14,026,689 | ||||||
Operating Segments | |||||||||||
Revenues: | |||||||||||
Service related | 1,302,440 | 1,372,592 | 1,384,106 | ||||||||
Net gain on mortgage loans held for sale | 682,217 | 599,779 | 711,981 | ||||||||
Total revenues | 1,984,657 | 1,972,371 | 2,096,087 | ||||||||
Total expenses | 1,615,046 | 1,277,241 | 1,311,703 | ||||||||
Other income (expenses): | |||||||||||
Interest income | 335,305 | 163,744 | 178,626 | ||||||||
Interest expense | (434,867) | (316,696) | (358,871) | ||||||||
Gain on disposal of property | 0 | ||||||||||
Gain on repurchase of unsecured senior notes | 0 | 0 | |||||||||
Loss on equity method investments | 0 | ||||||||||
Gain (loss) on interest rate swaps and caps | (710) | 1,672 | 1,856 | ||||||||
Total other income (expense) | (100,272) | (151,280) | (178,389) | ||||||||
Income (loss) before taxes | 269,339 | 543,850 | 605,995 | ||||||||
Depreciation and amortization | 46,783 | 27,369 | 22,685 | ||||||||
Assets | 15,960,241 | 10,393,461 | 15,960,241 | 10,393,461 | 12,788,817 | ||||||
Servicing Segment | |||||||||||
Revenues: | |||||||||||
Service related | 814,708 | 1,023,150 | 1,186,145 | ||||||||
Net gain on mortgage loans held for sale | 67,258 | 64,506 | 61,624 | ||||||||
Total revenues | 881,966 | 1,087,656 | 1,247,769 | ||||||||
Total expenses | 787,683 | 705,017 | 613,084 | ||||||||
Other income (expenses): | |||||||||||
Interest income | 267,538 | 91,713 | 90,913 | ||||||||
Interest expense | (376,483) | (246,099) | (279,501) | ||||||||
Gain on disposal of property | 0 | ||||||||||
Gain on repurchase of unsecured senior notes | 0 | 0 | |||||||||
Loss on equity method investments | 0 | ||||||||||
Gain (loss) on interest rate swaps and caps | (710) | 1,672 | 1,856 | ||||||||
Total other income (expense) | (109,655) | (152,714) | (186,732) | ||||||||
Income (loss) before taxes | (15,372) | 229,925 | 447,953 | ||||||||
Depreciation and amortization | 21,171 | 14,047 | 14,955 | ||||||||
Assets | 14,255,583 | 8,796,962 | 14,255,583 | 8,796,962 | 9,980,274 | ||||||
Originations Segment | |||||||||||
Revenues: | |||||||||||
Service related | 50,752 | 43,954 | 62,011 | ||||||||
Net gain on mortgage loans held for sale | 614,959 | 535,273 | 650,357 | ||||||||
Total revenues | 665,711 | 579,227 | 712,368 | ||||||||
Total expenses | 469,092 | 390,497 | 589,986 | ||||||||
Other income (expenses): | |||||||||||
Interest income | 67,734 | 72,031 | 87,713 | ||||||||
Interest expense | (58,271) | (70,237) | (79,106) | ||||||||
Gain on disposal of property | 0 | ||||||||||
Gain on repurchase of unsecured senior notes | 0 | 0 | |||||||||
Loss on equity method investments | 0 | ||||||||||
Gain (loss) on interest rate swaps and caps | 0 | 0 | 0 | ||||||||
Total other income (expense) | 9,463 | 1,794 | 8,607 | ||||||||
Income (loss) before taxes | 206,082 | 190,524 | 130,989 | ||||||||
Depreciation and amortization | 12,163 | 9,642 | 6,569 | ||||||||
Assets | 1,400,982 | 1,400,880 | 1,400,982 | 1,400,880 | 2,777,928 | ||||||
Solutionstar Segment [Member] | |||||||||||
Revenues: | |||||||||||
Service related | 436,980 | 305,488 | 135,950 | ||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Total revenues | 436,980 | 305,488 | 135,950 | ||||||||
Total expenses | 358,271 | 181,727 | 108,633 | ||||||||
Other income (expenses): | |||||||||||
Interest income | 33 | 0 | 0 | ||||||||
Interest expense | (113) | (360) | (264) | ||||||||
Gain on disposal of property | 0 | ||||||||||
Gain on repurchase of unsecured senior notes | 0 | 0 | |||||||||
Loss on equity method investments | 0 | ||||||||||
Gain (loss) on interest rate swaps and caps | 0 | 0 | 0 | ||||||||
Total other income (expense) | (80) | (360) | (264) | ||||||||
Income (loss) before taxes | 78,629 | 123,401 | 27,053 | ||||||||
Depreciation and amortization | 13,449 | 3,680 | 1,161 | ||||||||
Assets | 303,676 | 195,619 | 303,676 | 195,619 | 30,615 | ||||||
Coporate and Other | |||||||||||
Revenues: | |||||||||||
Service related | 2,760 | 4,713 | 1,750 | ||||||||
Net gain on mortgage loans held for sale | 1,658 | (2,573) | (9,218) | ||||||||
Total revenues | 4,418 | 2,140 | (7,468) | ||||||||
Total expenses | 72,533 | 80,450 | 90,575 | ||||||||
Other income (expenses): | |||||||||||
Interest income | 15,010 | 14,405 | 16,960 | ||||||||
Interest expense | (170,356) | (199,691) | (179,934) | ||||||||
Gain on disposal of property | 4,898 | ||||||||||
Gain on repurchase of unsecured senior notes | 8,237 | 0 | |||||||||
Loss on equity method investments | 0 | ||||||||||
Gain (loss) on interest rate swaps and caps | 60 | 732 | 1,276 | ||||||||
Total other income (expense) | (147,049) | (179,656) | (161,698) | ||||||||
Income (loss) before taxes | (215,164) | (257,966) | (259,741) | ||||||||
Depreciation and amortization | 6,714 | 12,797 | 3,930 | ||||||||
Assets | 693,829 | 719,214 | 693,829 | 719,214 | 1,237,872 | ||||||
Eliminations | |||||||||||
Revenues: | |||||||||||
Service related | (440) | (1,443) | (1,634) | ||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Total revenues | (440) | $ (1,443) | (1,634) | ||||||||
Total expenses | 0 | 0 | |||||||||
Other income (expenses): | |||||||||||
Interest income | 440 | $ 1,443 | 1,634 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Gain on disposal of property | 0 | ||||||||||
Gain on repurchase of unsecured senior notes | 0 | 0 | |||||||||
Loss on equity method investments | 0 | ||||||||||
Gain (loss) on interest rate swaps and caps | 0 | 0 | 0 | ||||||||
Total other income (expense) | 440 | 1,443 | 1,634 | ||||||||
Income (loss) before taxes | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Assets | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Business Segment Reporting Segm
Business Segment Reporting Segment Narrative (Details) - Adjustment - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Servicing Segment | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | $ 9.2 | $ 6.6 |
Xome Segment | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | $ 9.2 | $ 6.6 |
Guarantor Financial Statemen109
Guarantor Financial Statement Information - Narrative (Details) $ in Thousands | Dec. 31, 2015USD ($)subsidiary | Dec. 31, 2014USD ($) |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||
Unsecured senior notes | $ | $ 2,048,694 | $ 2,159,231 |
Guarantor Subsidiary, Ownership Percentage | 100.00% | |
Number of Subsidiaries as Guarantors of Unsecured Debt | subsidiary | 2 |
Guarantor Financial Statemen110
Guarantor Financial Statement Information - Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ||||
Cash and cash equivalents | $ 613,241 | $ 299,002 | $ 441,902 | $ 152,649 |
Restricted cash | 332,105 | 285,530 | ||
Mortgage servicing rights | 3,366,973 | 2,961,321 | ||
Advances | 2,223,083 | 2,544,699 | ||
Reverse mortgage interests | 7,514,323 | 2,453,069 | ||
Mortgage loans held for sale | 1,429,691 | 1,277,931 | 2,603,380 | |
Mortgage loans held for investment, net | 173,650 | 191,569 | ||
Property and equipment, net | 142,836 | 129,611 | ||
Derivative financial instruments | 99,199 | 91,051 | ||
Other assets | 758,969 | 878,892 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 16,654,070 | 11,112,675 | 14,026,689 | |
Liabilities and stockholders’ equity | ||||
Unsecured senior notes | 2,048,694 | 2,159,231 | ||
Advance facilities | 1,646,123 | 1,901,783 | ||
Warehouse facilities | 1,893,526 | 1,572,622 | ||
Payables and accrued liabilities | 1,296,387 | 1,322,078 | ||
MSR related liabilities - nonrecourse | 1,300,782 | 1,080,465 | ||
Mortgage servicing liabilities | 25,260 | 65,382 | ||
Derivative financial instruments | 5,323 | 18,525 | ||
Other nonrecourse debt | 6,670,598 | 1,768,311 | ||
Payables to affiliates | 0 | 0 | ||
Total liabilities | 14,886,693 | 9,888,397 | ||
Total equity | 1,767,377 | 1,224,278 | 989,898 | 757,682 |
Total liabilities and equity | 16,654,070 | 11,112,675 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Advances | 0 | 0 | ||
Reverse mortgage interests | 0 | 0 | ||
Mortgage loans held for sale | 0 | 0 | ||
Mortgage loans held for investment, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Other assets | 3,444 | 16,383 | ||
Investment in subsidiaries | 1,768,319 | 1,207,895 | ||
Total assets | 1,771,763 | 1,224,278 | ||
Liabilities and stockholders’ equity | ||||
Unsecured senior notes | 0 | 0 | ||
Advance facilities | 0 | 0 | ||
Warehouse facilities | 0 | 0 | ||
Payables and accrued liabilities | 4,386 | 0 | ||
MSR related liabilities - nonrecourse | 0 | 0 | ||
Mortgage servicing liabilities | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Other nonrecourse debt | 0 | 0 | ||
Payables to affiliates | 0 | 0 | ||
Total liabilities | 4,386 | 0 | ||
Total equity | 1,767,377 | 1,224,278 | ||
Total liabilities and equity | 1,771,763 | 1,224,278 | ||
Issuer | ||||
Assets | ||||
Cash and cash equivalents | 597,303 | 279,770 | 422,268 | 152,248 |
Restricted cash | 198,726 | 177,090 | ||
Mortgage servicing rights | 3,366,973 | 2,961,321 | ||
Advances | 2,223,039 | 2,542,402 | ||
Reverse mortgage interests | 6,832,186 | 2,111,801 | ||
Mortgage loans held for sale | 1,304,219 | 1,243,700 | ||
Mortgage loans held for investment, net | 840 | 1,945 | ||
Property and equipment, net | 113,228 | 114,903 | ||
Derivative financial instruments | 95,681 | 87,911 | ||
Other assets | 836,704 | 1,070,724 | ||
Investment in subsidiaries | 509,475 | 450,363 | ||
Total assets | 16,078,374 | 11,041,930 | ||
Liabilities and stockholders’ equity | ||||
Unsecured senior notes | 2,048,694 | 2,159,231 | ||
Advance facilities | 237,865 | 570,792 | ||
Warehouse facilities | 1,785,266 | 1,539,994 | ||
Payables and accrued liabilities | 1,222,268 | 1,282,895 | ||
MSR related liabilities - nonrecourse | 1,300,782 | 1,080,465 | ||
Mortgage servicing liabilities | 25,260 | 65,382 | ||
Derivative financial instruments | 5,323 | 18,525 | ||
Other nonrecourse debt | 5,947,407 | 1,433,145 | ||
Payables to affiliates | 1,737,190 | 1,683,606 | ||
Total liabilities | 14,310,055 | 9,834,035 | ||
Total equity | 1,768,319 | 1,207,895 | ||
Total liabilities and equity | 16,078,374 | 11,041,930 | ||
Guarantor (Subsidiaries) | ||||
Assets | ||||
Cash and cash equivalents | 558 | 288 | 3,907 | 401 |
Restricted cash | 3 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Advances | 0 | 0 | ||
Reverse mortgage interests | 0 | 0 | ||
Mortgage loans held for sale | 0 | 0 | ||
Mortgage loans held for investment, net | 0 | 0 | ||
Property and equipment, net | 868 | 835 | ||
Derivative financial instruments | 0 | 0 | ||
Other assets | 303,452 | 272,654 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 304,881 | 273,777 | ||
Liabilities and stockholders’ equity | ||||
Unsecured senior notes | 0 | 0 | ||
Advance facilities | 0 | 0 | ||
Warehouse facilities | 0 | 0 | ||
Payables and accrued liabilities | 927 | 25 | ||
MSR related liabilities - nonrecourse | 0 | 0 | ||
Mortgage servicing liabilities | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Other nonrecourse debt | 0 | 0 | ||
Payables to affiliates | 1,031 | 894 | ||
Total liabilities | 1,958 | 919 | ||
Total equity | 302,923 | 272,858 | ||
Total liabilities and equity | 304,881 | 273,777 | ||
Non-Guarantor (Subsidiaries) | ||||
Assets | ||||
Cash and cash equivalents | 15,380 | 18,944 | 15,727 | 0 |
Restricted cash | 133,376 | 108,440 | ||
Mortgage servicing rights | 0 | 0 | ||
Advances | 44 | 2,297 | ||
Reverse mortgage interests | 682,137 | 341,268 | ||
Mortgage loans held for sale | 125,472 | 34,231 | ||
Mortgage loans held for investment, net | 172,810 | 189,624 | ||
Property and equipment, net | 28,740 | 13,873 | ||
Derivative financial instruments | 3,518 | 3,140 | ||
Other assets | 1,496,640 | 1,328,078 | ||
Investment in subsidiaries | 0 | 0 | ||
Total assets | 2,658,117 | 2,039,895 | ||
Liabilities and stockholders’ equity | ||||
Unsecured senior notes | 0 | 0 | ||
Advance facilities | 1,408,258 | 1,330,991 | ||
Warehouse facilities | 108,260 | 32,628 | ||
Payables and accrued liabilities | 68,806 | 39,158 | ||
MSR related liabilities - nonrecourse | 0 | 0 | ||
Mortgage servicing liabilities | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Other nonrecourse debt | 723,191 | 335,166 | ||
Payables to affiliates | 143,050 | 124,447 | ||
Total liabilities | 2,451,565 | 1,862,390 | ||
Total equity | 206,552 | 177,505 | ||
Total liabilities and equity | 2,658,117 | 2,039,895 | ||
Eliminations | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Restricted cash | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Advances | 0 | 0 | ||
Reverse mortgage interests | 0 | 0 | ||
Mortgage loans held for sale | 0 | 0 | ||
Mortgage loans held for investment, net | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Other assets | (1,881,271) | (1,808,947) | ||
Investment in subsidiaries | (2,277,794) | (1,658,258) | ||
Total assets | (4,159,065) | (3,467,205) | ||
Liabilities and stockholders’ equity | ||||
Unsecured senior notes | 0 | 0 | ||
Advance facilities | 0 | 0 | ||
Warehouse facilities | 0 | 0 | ||
Payables and accrued liabilities | 0 | 0 | ||
MSR related liabilities - nonrecourse | 0 | 0 | ||
Mortgage servicing liabilities | 0 | 0 | ||
Derivative financial instruments | 0 | 0 | ||
Other nonrecourse debt | 0 | 0 | ||
Payables to affiliates | (1,881,271) | (1,808,947) | ||
Total liabilities | (1,881,271) | (1,808,947) | ||
Total equity | (2,277,794) | (1,658,258) | ||
Total liabilities and equity | $ (4,159,065) | $ (3,467,205) |
Guarantor Financial Statemen111
Guarantor Financial Statement Information - Consolidating Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements | |||||||||||
Service related | $ 420,603 | $ 211,311 | $ 457,723 | $ 215,123 | $ 334,213 | $ 351,070 | $ 362,916 | $ 327,663 | $ 1,304,760 | $ 1,375,862 | $ 1,384,222 |
Net gain on mortgage loans held for sale | 167,123 | 185,872 | 163,886 | 166,994 | 115,151 | 153,254 | 186,817 | 141,984 | 683,875 | 597,206 | 702,763 |
Total revenues | 587,726 | 397,183 | 621,609 | 382,117 | 449,364 | 504,324 | 549,733 | 469,647 | 1,988,635 | 1,973,068 | 2,086,985 |
Expenses: | |||||||||||
Salaries, wages and benefits | 762,568 | 642,936 | 679,637 | ||||||||
General and administrative | 925,011 | 714,755 | 722,641 | ||||||||
Other general and administrative | 691,796 | ||||||||||
Occupancy | 30,845 | ||||||||||
Total expenses | 416,530 | 446,221 | 440,985 | 383,843 | 362,623 | 327,224 | 346,711 | 321,133 | 1,687,579 | 1,357,691 | 1,402,278 |
Other income (expenses): | |||||||||||
Interest income | 350,755 | 179,592 | 197,220 | ||||||||
Interest expense | (605,223) | (516,387) | (538,805) | ||||||||
Gain debt repurchase | 8,237 | 0 | 0 | ||||||||
Gain on disposal of property | 0 | 4,898 | 0 | ||||||||
Gain (loss) on interest rate swaps and caps | (650) | 2,404 | 3,132 | ||||||||
Gain/(loss) from subsidiaries | 0 | 0 | 0 | ||||||||
Total other income/(expense) | (50,441) | (63,186) | (60,613) | (72,641) | (54,702) | (67,521) | (97,434) | (109,836) | (246,881) | (329,493) | (338,453) |
Income/(loss) before taxes | 120,755 | (112,224) | 120,011 | (74,367) | 32,039 | 109,579 | 105,588 | 38,678 | 54,175 | 285,884 | 346,254 |
Income tax expense/(benefit) | 41,661 | (47,295) | 44,171 | (27,525) | 12,618 | (1,700) | 38,941 | 15,001 | 11,012 | 64,860 | 129,200 |
Net income (loss) | 79,094 | (64,929) | 75,840 | (46,842) | 19,421 | 111,279 | 66,647 | 23,677 | 43,163 | 221,024 | 217,054 |
Less: net income attributable to noncontrolling interests | 217 | 1,413 | 1,281 | 1,473 | 419 | 54 | 192 | (359) | 4,384 | 306 | 0 |
Net income attributable to Nationstar | $ 78,877 | $ (66,342) | $ 74,559 | $ (48,315) | $ 19,002 | $ 111,225 | $ 66,455 | $ 24,036 | 38,779 | 220,718 | 217,054 |
Parent Company | |||||||||||
Condensed Financial Statements | |||||||||||
Service related | 0 | 0 | 0 | ||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Expenses: | |||||||||||
Salaries, wages and benefits | 0 | 0 | 0 | ||||||||
General and administrative | 0 | 0 | |||||||||
Other general and administrative | 0 | ||||||||||
Occupancy | 0 | ||||||||||
Total expenses | 0 | 0 | 0 | ||||||||
Other income (expenses): | |||||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Gain debt repurchase | 0 | ||||||||||
Gain on disposal of property | 0 | ||||||||||
Gain (loss) on interest rate swaps and caps | 0 | 0 | 0 | ||||||||
Gain/(loss) from subsidiaries | 38,779 | 220,718 | 217,054 | ||||||||
Total other income/(expense) | 38,779 | 220,718 | 217,054 | ||||||||
Income/(loss) before taxes | 38,779 | 220,718 | 217,054 | ||||||||
Income tax expense/(benefit) | 0 | 0 | 0 | ||||||||
Net income (loss) | 38,779 | 220,718 | |||||||||
Less: net income attributable to noncontrolling interests | 0 | 0 | |||||||||
Net income attributable to Nationstar | 38,779 | 220,718 | 217,054 | ||||||||
Issuer | |||||||||||
Condensed Financial Statements | |||||||||||
Service related | 846,221 | 1,030,214 | 1,211,717 | ||||||||
Net gain on mortgage loans held for sale | 640,051 | 583,790 | 645,509 | ||||||||
Total revenues | 1,486,272 | 1,614,004 | 1,857,226 | ||||||||
Expenses: | |||||||||||
Salaries, wages and benefits | 540,052 | 556,047 | 637,794 | ||||||||
General and administrative | 737,168 | 587,327 | |||||||||
Other general and administrative | 612,307 | ||||||||||
Occupancy | 29,121 | ||||||||||
Total expenses | 1,277,220 | 1,143,374 | 1,279,222 | ||||||||
Other income (expenses): | |||||||||||
Interest income | 310,809 | 158,508 | 179,445 | ||||||||
Interest expense | (534,097) | (460,781) | (420,214) | ||||||||
Gain debt repurchase | 8,237 | ||||||||||
Gain on disposal of property | 4,898 | ||||||||||
Gain (loss) on interest rate swaps and caps | 60 | 732 | 1,012 | ||||||||
Gain/(loss) from subsidiaries | 59,862 | 111,897 | 8,007 | ||||||||
Total other income/(expense) | (155,129) | (184,746) | (231,750) | ||||||||
Income/(loss) before taxes | 53,923 | 285,884 | 346,254 | ||||||||
Income tax expense/(benefit) | 11,002 | 64,860 | 129,200 | ||||||||
Net income (loss) | 42,921 | 221,024 | |||||||||
Less: net income attributable to noncontrolling interests | 4,142 | 306 | |||||||||
Net income attributable to Nationstar | 38,779 | 220,718 | 217,054 | ||||||||
Guarantor (Subsidiaries) | |||||||||||
Condensed Financial Statements | |||||||||||
Service related | 17,390 | 47,588 | 129,689 | ||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Total revenues | 17,390 | 47,588 | 129,689 | ||||||||
Expenses: | |||||||||||
Salaries, wages and benefits | 4,791 | 4,404 | 12,534 | ||||||||
General and administrative | 3,248 | 1,872 | |||||||||
Other general and administrative | 3,630 | ||||||||||
Occupancy | 431 | ||||||||||
Total expenses | 8,039 | 6,276 | 16,595 | ||||||||
Other income (expenses): | |||||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Gain debt repurchase | 0 | ||||||||||
Gain on disposal of property | 0 | ||||||||||
Gain (loss) on interest rate swaps and caps | 0 | 0 | 0 | ||||||||
Gain/(loss) from subsidiaries | 0 | 0 | 0 | ||||||||
Total other income/(expense) | 0 | 0 | 0 | ||||||||
Income/(loss) before taxes | 9,351 | 41,312 | 113,094 | ||||||||
Income tax expense/(benefit) | 0 | 0 | 0 | ||||||||
Net income (loss) | 9,351 | 41,312 | |||||||||
Less: net income attributable to noncontrolling interests | 0 | 0 | |||||||||
Net income attributable to Nationstar | 9,351 | 41,312 | 113,094 | ||||||||
Non-Guarantor (Subsidiaries) | |||||||||||
Condensed Financial Statements | |||||||||||
Service related | 441,149 | 297,869 | 101,704 | ||||||||
Net gain on mortgage loans held for sale | 43,824 | 13,416 | 0 | ||||||||
Total revenues | 484,973 | 311,285 | 101,704 | ||||||||
Expenses: | |||||||||||
Salaries, wages and benefits | 217,725 | 82,485 | 29,309 | ||||||||
General and administrative | 184,595 | 125,556 | |||||||||
Other general and administrative | 75,859 | ||||||||||
Occupancy | 1,293 | ||||||||||
Total expenses | 402,320 | 208,041 | 106,461 | ||||||||
Other income (expenses): | |||||||||||
Interest income | 39,946 | 21,275 | 16,141 | ||||||||
Interest expense | (71,126) | (55,606) | (118,591) | ||||||||
Gain debt repurchase | 0 | ||||||||||
Gain on disposal of property | 0 | ||||||||||
Gain (loss) on interest rate swaps and caps | (710) | 1,672 | 2,120 | ||||||||
Gain/(loss) from subsidiaries | 0 | 0 | 0 | ||||||||
Total other income/(expense) | (31,890) | (32,659) | (100,330) | ||||||||
Income/(loss) before taxes | 50,763 | 70,585 | (105,087) | ||||||||
Income tax expense/(benefit) | 10 | 0 | 0 | ||||||||
Net income (loss) | 50,753 | 70,585 | |||||||||
Less: net income attributable to noncontrolling interests | 242 | 0 | |||||||||
Net income attributable to Nationstar | $ 50,511 | 70,585 | (105,087) | ||||||||
Eliminations | |||||||||||
Condensed Financial Statements | |||||||||||
Service related | 191 | (58,888) | |||||||||
Net gain on mortgage loans held for sale | $ 0 | 0 | 57,254 | ||||||||
Total revenues | 0 | 191 | (1,634) | ||||||||
Expenses: | |||||||||||
Salaries, wages and benefits | 0 | 0 | 0 | ||||||||
General and administrative | 0 | 0 | |||||||||
Other general and administrative | 0 | ||||||||||
Occupancy | 0 | ||||||||||
Total expenses | $ 0 | 0 | 0 | ||||||||
Other income (expenses): | |||||||||||
Interest income | (191) | 1,634 | |||||||||
Interest expense | $ 0 | 0 | 0 | ||||||||
Gain debt repurchase | 0 | ||||||||||
Gain on disposal of property | 0 | ||||||||||
Gain (loss) on interest rate swaps and caps | 0 | 0 | 0 | ||||||||
Gain/(loss) from subsidiaries | (98,641) | (332,615) | (225,061) | ||||||||
Total other income/(expense) | (98,641) | (332,806) | (223,427) | ||||||||
Income/(loss) before taxes | (98,641) | (332,615) | (225,061) | ||||||||
Income tax expense/(benefit) | 0 | 0 | 0 | ||||||||
Net income (loss) | (98,641) | (332,615) | |||||||||
Less: net income attributable to noncontrolling interests | 0 | 0 | |||||||||
Net income attributable to Nationstar | $ (98,641) | $ (332,615) | $ (225,061) |
Guarantor Financial Statemen112
Guarantor Financial Statement Information - Consolidating Statements of Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||||||||||
Net income (loss) attributable to Nationstar | $ 78,877 | $ (66,342) | $ 74,559 | $ (48,315) | $ 19,002 | $ 111,225 | $ 66,455 | $ 24,036 | $ 38,779 | $ 220,718 | $ 217,054 |
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||||||||
Noncontrolling interest | 4,384 | 306 | 0 | ||||||||
(Gain)/loss from subsidiaries | 0 | 0 | 0 | ||||||||
Share-based Compensation | 19,521 | 18,565 | 10,574 | ||||||||
Gain on disposal of property | 0 | (4,898) | 0 | ||||||||
Gain on repurchase of unsecured senior notes | (8,237) | 0 | 0 | ||||||||
Excess tax benefit from share based compensation | (422) | (2,243) | (4,579) | ||||||||
Loss on foreclosed real estate and other | 0 | 10,288 | 13,316 | ||||||||
Gain on mortgage loans held for sale | (683,875) | (597,206) | (702,763) | ||||||||
Mortgage loans originated and purchased, net of fees | (17,971,304) | (17,137,520) | (24,059,757) | ||||||||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | (1,865,347) | (3,692,199) | (1,426,860) | ||||||||
Proceeds on sale of and payments of mortgage loans held for sale | 20,045,420 | 22,123,973 | 24,595,051 | ||||||||
(Gain)/loss on derivatives including ineffectiveness | 650 | (2,404) | (6,080) | ||||||||
Cash settlement on derivative financial instruments | 0 | 1,352 | (4,544) | ||||||||
Depreciation and amortization | 53,497 | 40,166 | 26,615 | ||||||||
Amortization/(accretion) of premiums/(discounts) | (11,671) | 13,330 | 52,531 | ||||||||
Fair value changes in excess spread financing | 25,631 | 57,554 | 73,333 | ||||||||
Fair value changes and amortization/accretion of mortgage servicing rights | 459,803 | 233,537 | (59,101) | ||||||||
Fair value changes mortgage servicing rights financing liability | 19,266 | (33,279) | 0 | ||||||||
Changes in assets and liabilities: | |||||||||||
Advances | 323,279 | 324,182 | (465,775) | ||||||||
Reverse mortgage interests | (245,570) | (1,002,142) | (751,609) | ||||||||
Other assets | 270,595 | 528,112 | 44,237 | ||||||||
Payables and accrued liabilities | (56,573) | (19,983) | 647,320 | ||||||||
Net cash attributable to operating activities | 417,826 | 1,080,209 | (1,801,037) | ||||||||
Investing activities | |||||||||||
Property and equipment additions, net of disposals | (57,042) | (56,405) | (48,859) | ||||||||
Proceeds from sale of building | 10,412 | ||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (714,842) | (471,249) | (1,527,645) | ||||||||
Purchase of reverse mortgage servicing rights and interests | 0 | 0 | (19,189) | ||||||||
Purchase of reverse mortgage interests, net of participations sold | (4,815,684) | 0 | 0 | ||||||||
Sale of forward mortgage service rights | 43,793 | 0 | 0 | ||||||||
Acquisitions, net of cash acquired | (45,796) | (18,000) | (88,200) | ||||||||
Proceeds on sale of servicer advances | 0 | 768,449 | 277,455 | ||||||||
Repurchases of REO from Ginnie Mae | 0 | ||||||||||
Proceeds from sales of REO | 0 | ||||||||||
Proceeds on sale of servicer advances | 277,455 | ||||||||||
Net cash attributable to investing activities | (5,589,571) | 233,207 | (1,406,438) | ||||||||
Financing activities | |||||||||||
Transfers (to) from restricted cash, net | (46,575) | 290,803 | (232,695) | ||||||||
Issuance of unsecured senior notes, net | 0 | 0 | 1,365,244 | ||||||||
Repayment / redemption of unsecured senior notes | (102,533) | (285,000) | 0 | ||||||||
Issuance of common stock, net of issuance costs | 497,757 | 0 | 0 | ||||||||
Debt financing costs | (17,363) | (13,067) | (53,529) | ||||||||
Increase (decrease) in warehouse facilities | 320,904 | (861,305) | 1,395,427 | ||||||||
Increase (decrease) in advance facilities | (255,660) | (1,221,206) | (154,677) | ||||||||
Proceeds from HECM securitizations | 559,757 | 269,033 | 0 | ||||||||
Repayment of HECM securitizations | (161,221) | (9,750) | 0 | ||||||||
Issuance of excess spread financing | 385,637 | 171,317 | 753,002 | ||||||||
Repayment of excess spread financing | (210,217) | (184,246) | (130,355) | ||||||||
Increase in participating interest financing in reverse mortgage interests | 4,540,828 | 352,945 | 535,216 | ||||||||
Proceeds from mortgage servicing rights financing | 0 | 52,835 | 29,874 | ||||||||
Repayment of nonrecourse debt – legacy assets | (12,817) | (15,429) | (13,404) | ||||||||
Contributions from joint venture member to noncontrolling interests | 0 | 0 | 4,990 | ||||||||
Excess tax benefit from share-based compensation | 422 | 2,243 | 4,579 | ||||||||
Surrender of Shares Relating to Stock Vesting | (6,224) | (5,489) | (6,944) | ||||||||
Repurchase of treasury shares | (6,711) | 0 | 0 | ||||||||
Net cash attributable to financing activities | 5,485,984 | (1,456,316) | 3,496,728 | ||||||||
Net increase (decrease) in cash and cash equivalents | 314,239 | (142,900) | 289,253 | ||||||||
Cash and cash equivalents at beginning of period | 299,002 | 441,902 | 299,002 | 441,902 | 152,649 | ||||||
Cash and cash equivalents at end of period | 613,241 | 299,002 | 613,241 | 299,002 | 441,902 | ||||||
Parent Company | |||||||||||
Operating activities | |||||||||||
Net income (loss) attributable to Nationstar | 38,779 | 220,718 | 217,054 | ||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||||||||
Noncontrolling interest | 0 | 0 | |||||||||
(Gain)/loss from subsidiaries | (38,779) | (220,718) | (217,054) | ||||||||
Share-based Compensation | 0 | 0 | 0 | ||||||||
Gain on disposal of property | 0 | ||||||||||
Gain on repurchase of unsecured senior notes | 0 | ||||||||||
Excess tax benefit from share based compensation | 0 | 0 | 0 | ||||||||
Loss on foreclosed real estate and other | 0 | 0 | 0 | ||||||||
Gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Mortgage loans originated and purchased, net of fees | 0 | 0 | 0 | ||||||||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | 0 | 0 | 0 | ||||||||
Proceeds on sale of and payments of mortgage loans held for sale | 0 | 0 | 0 | ||||||||
(Gain)/loss on derivatives including ineffectiveness | 0 | 0 | 0 | ||||||||
Cash settlement on derivative financial instruments | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Amortization/(accretion) of premiums/(discounts) | 0 | 0 | 0 | ||||||||
Fair value changes in excess spread financing | 0 | 0 | 0 | ||||||||
Fair value changes and amortization/accretion of mortgage servicing rights | 0 | 0 | 0 | ||||||||
Fair value changes mortgage servicing rights financing liability | 0 | 0 | |||||||||
Changes in assets and liabilities: | |||||||||||
Advances | 0 | 0 | 0 | ||||||||
Reverse mortgage interests | 0 | 0 | 0 | ||||||||
Other assets | 12,935 | 5,489 | 2,365 | ||||||||
Payables and accrued liabilities | 0 | 0 | 0 | ||||||||
Net cash attributable to operating activities | 12,935 | 5,489 | 2,365 | ||||||||
Investing activities | |||||||||||
Property and equipment additions, net of disposals | 0 | 0 | 0 | ||||||||
Proceeds from sale of building | 0 | ||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 | 0 | ||||||||
Purchase of reverse mortgage servicing rights and interests | 0 | ||||||||||
Purchase of reverse mortgage interests, net of participations sold | 0 | ||||||||||
Sale of forward mortgage service rights | 0 | ||||||||||
Acquisitions, net of cash acquired | 0 | 0 | 0 | ||||||||
Proceeds on sale of servicer advances | 0 | ||||||||||
Repurchases of REO from Ginnie Mae | 0 | ||||||||||
Proceeds from sales of REO | 0 | ||||||||||
Proceeds on sale of servicer advances | 0 | ||||||||||
Net cash attributable to investing activities | 0 | 0 | 0 | ||||||||
Financing activities | |||||||||||
Transfers (to) from restricted cash, net | 0 | 0 | 0 | ||||||||
Issuance of unsecured senior notes, net | 0 | ||||||||||
Repayment / redemption of unsecured senior notes | 0 | 0 | |||||||||
Issuance of common stock, net of issuance costs | 0 | ||||||||||
Debt financing costs | 0 | 0 | 0 | ||||||||
Increase (decrease) in warehouse facilities | 0 | 0 | |||||||||
Increase (decrease) in advance facilities | 0 | 0 | 0 | ||||||||
Proceeds from HECM securitizations | 0 | 0 | |||||||||
Repayment of HECM securitizations | 0 | 0 | |||||||||
Issuance of excess spread financing | 0 | 0 | 0 | ||||||||
Repayment of excess spread financing | 0 | 0 | 0 | ||||||||
Increase in participating interest financing in reverse mortgage interests | 0 | 0 | 0 | ||||||||
Proceeds from mortgage servicing rights financing | 0 | 0 | |||||||||
Repayment of nonrecourse debt – legacy assets | 0 | 0 | 0 | ||||||||
Contributions from joint venture member to noncontrolling interests | 0 | ||||||||||
Excess tax benefit from share-based compensation | 0 | 0 | 4,579 | ||||||||
Surrender of Shares Relating to Stock Vesting | (6,224) | (5,489) | (6,944) | ||||||||
Repurchase of treasury shares | (6,711) | ||||||||||
Net cash attributable to financing activities | (12,935) | (5,489) | (2,365) | ||||||||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | ||||||||
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 | 0 | ||||||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 | 0 | ||||||
Issuer | |||||||||||
Operating activities | |||||||||||
Net income (loss) attributable to Nationstar | 38,779 | 220,718 | 217,054 | ||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||||||||
Noncontrolling interest | 4,142 | 306 | |||||||||
(Gain)/loss from subsidiaries | (59,862) | (111,897) | (8,007) | ||||||||
Share-based Compensation | 12,299 | 18,565 | 10,574 | ||||||||
Gain on disposal of property | (4,898) | ||||||||||
Gain on repurchase of unsecured senior notes | (8,237) | ||||||||||
Excess tax benefit from share based compensation | (422) | (2,243) | (4,579) | ||||||||
Loss on foreclosed real estate and other | 0 | 3,099 | 7,317 | ||||||||
Gain on mortgage loans held for sale | (638,963) | (583,790) | (645,509) | ||||||||
Mortgage loans originated and purchased, net of fees | (16,827,026) | (17,137,520) | (24,059,757) | ||||||||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | (1,865,347) | (3,692,199) | (1,426,860) | ||||||||
Proceeds on sale of and payments of mortgage loans held for sale | 18,927,555 | 22,129,587 | 24,524,472 | ||||||||
(Gain)/loss on derivatives including ineffectiveness | (60) | (732) | (3,415) | ||||||||
Cash settlement on derivative financial instruments | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 40,024 | 36,381 | 25,479 | ||||||||
Amortization/(accretion) of premiums/(discounts) | (7,993) | 15,520 | 56,348 | ||||||||
Fair value changes in excess spread financing | 25,631 | 57,554 | 73,333 | ||||||||
Fair value changes and amortization/accretion of mortgage servicing rights | 459,803 | 233,537 | (59,101) | ||||||||
Fair value changes mortgage servicing rights financing liability | 19,266 | (33,279) | |||||||||
Changes in assets and liabilities: | |||||||||||
Advances | 321,026 | 327,470 | (4,497,046) | ||||||||
Reverse mortgage interests | 95,299 | (626,034) | (751,609) | ||||||||
Other assets | 388,543 | (1,613,831) | 5,395,861 | ||||||||
Payables and accrued liabilities | (67,140) | (71,071) | 650,287 | ||||||||
Net cash attributable to operating activities | 857,317 | (834,757) | (495,158) | ||||||||
Investing activities | |||||||||||
Property and equipment additions, net of disposals | (36,497) | (41,739) | (45,138) | ||||||||
Proceeds from sale of building | 10,412 | ||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (714,842) | (471,249) | (1,527,645) | ||||||||
Purchase of reverse mortgage servicing rights and interests | (19,189) | ||||||||||
Purchase of reverse mortgage interests, net of participations sold | (4,815,684) | ||||||||||
Sale of forward mortgage service rights | 43,793 | ||||||||||
Acquisitions, net of cash acquired | 0 | (15,854) | (88,200) | ||||||||
Proceeds on sale of servicer advances | 768,449 | ||||||||||
Repurchases of REO from Ginnie Mae | 0 | ||||||||||
Proceeds from sales of REO | 0 | ||||||||||
Proceeds on sale of servicer advances | 277,455 | ||||||||||
Net cash attributable to investing activities | (5,523,230) | 250,019 | (1,402,717) | ||||||||
Financing activities | |||||||||||
Transfers (to) from restricted cash, net | (21,636) | 118,617 | (199,600) | ||||||||
Issuance of unsecured senior notes, net | 1,365,244 | ||||||||||
Repayment / redemption of unsecured senior notes | (102,533) | (285,000) | |||||||||
Issuance of common stock, net of issuance costs | 497,757 | ||||||||||
Debt financing costs | (17,363) | (13,067) | (53,529) | ||||||||
Increase (decrease) in warehouse facilities | 245,272 | 226,596 | (136,947) | ||||||||
Increase (decrease) in advance facilities | (332,927) | 0 | 0 | ||||||||
Proceeds from HECM securitizations | 0 | 0 | |||||||||
Repayment of HECM securitizations | 0 | 0 | |||||||||
Issuance of excess spread financing | 385,637 | 171,317 | 753,002 | ||||||||
Repayment of excess spread financing | (210,217) | (184,246) | (130,355) | ||||||||
Increase in participating interest financing in reverse mortgage interests | 4,540,828 | 352,945 | 535,216 | ||||||||
Proceeds from mortgage servicing rights financing | 0 | 52,835 | 29,874 | ||||||||
Repayment of nonrecourse debt – legacy assets | (1,794) | 0 | 0 | ||||||||
Contributions from joint venture member to noncontrolling interests | 4,990 | ||||||||||
Excess tax benefit from share-based compensation | 422 | 2,243 | 0 | ||||||||
Surrender of Shares Relating to Stock Vesting | 0 | 0 | 0 | ||||||||
Repurchase of treasury shares | 0 | ||||||||||
Net cash attributable to financing activities | 4,983,446 | 442,240 | 2,167,895 | ||||||||
Net increase (decrease) in cash and cash equivalents | 317,533 | (142,498) | 270,020 | ||||||||
Cash and cash equivalents at beginning of period | 279,770 | 422,268 | 279,770 | 422,268 | 152,248 | ||||||
Cash and cash equivalents at end of period | 597,303 | 279,770 | 597,303 | 279,770 | 422,268 | ||||||
Guarantor (Subsidiaries) | |||||||||||
Operating activities | |||||||||||
Net income (loss) attributable to Nationstar | 9,351 | 41,312 | 113,094 | ||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||||||||
Noncontrolling interest | 0 | 0 | |||||||||
(Gain)/loss from subsidiaries | 0 | 0 | 0 | ||||||||
Share-based Compensation | 66 | 0 | 0 | ||||||||
Gain on disposal of property | 0 | ||||||||||
Gain on repurchase of unsecured senior notes | 0 | ||||||||||
Excess tax benefit from share based compensation | 0 | 0 | 0 | ||||||||
Loss on foreclosed real estate and other | 0 | 0 | 0 | ||||||||
Gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||
Mortgage loans originated and purchased, net of fees | 0 | 0 | 0 | ||||||||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | 0 | 0 | 0 | ||||||||
Proceeds on sale of and payments of mortgage loans held for sale | 0 | 0 | 0 | ||||||||
(Gain)/loss on derivatives including ineffectiveness | 0 | 0 | 0 | ||||||||
Cash settlement on derivative financial instruments | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 7 | 88 | 979 | ||||||||
Amortization/(accretion) of premiums/(discounts) | 0 | 0 | 0 | ||||||||
Fair value changes in excess spread financing | 0 | 0 | 0 | ||||||||
Fair value changes and amortization/accretion of mortgage servicing rights | 0 | 0 | 0 | ||||||||
Fair value changes mortgage servicing rights financing liability | 0 | 0 | |||||||||
Changes in assets and liabilities: | |||||||||||
Advances | 0 | 0 | 0 | ||||||||
Reverse mortgage interests | 0 | 0 | 0 | ||||||||
Other assets | (10,010) | (39,029) | (113,703) | ||||||||
Payables and accrued liabilities | 902 | (5,925) | 4,135 | ||||||||
Net cash attributable to operating activities | 316 | (3,554) | 4,505 | ||||||||
Investing activities | |||||||||||
Property and equipment additions, net of disposals | (43) | (68) | (999) | ||||||||
Proceeds from sale of building | 0 | ||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 | 0 | ||||||||
Purchase of reverse mortgage servicing rights and interests | 0 | ||||||||||
Purchase of reverse mortgage interests, net of participations sold | 0 | ||||||||||
Sale of forward mortgage service rights | 0 | ||||||||||
Acquisitions, net of cash acquired | 0 | 0 | 0 | ||||||||
Proceeds on sale of servicer advances | 0 | ||||||||||
Repurchases of REO from Ginnie Mae | 0 | ||||||||||
Proceeds from sales of REO | 0 | ||||||||||
Proceeds on sale of servicer advances | 0 | ||||||||||
Net cash attributable to investing activities | (43) | (68) | (999) | ||||||||
Financing activities | |||||||||||
Transfers (to) from restricted cash, net | (3) | 3 | 0 | ||||||||
Issuance of unsecured senior notes, net | 0 | ||||||||||
Repayment / redemption of unsecured senior notes | 0 | 0 | |||||||||
Issuance of common stock, net of issuance costs | 0 | ||||||||||
Debt financing costs | 0 | 0 | 0 | ||||||||
Increase (decrease) in warehouse facilities | 0 | 0 | |||||||||
Increase (decrease) in advance facilities | 0 | 0 | 0 | ||||||||
Proceeds from HECM securitizations | 0 | 0 | |||||||||
Repayment of HECM securitizations | 0 | 0 | |||||||||
Issuance of excess spread financing | 0 | 0 | 0 | ||||||||
Repayment of excess spread financing | 0 | 0 | 0 | ||||||||
Increase in participating interest financing in reverse mortgage interests | 0 | 0 | 0 | ||||||||
Proceeds from mortgage servicing rights financing | 0 | 0 | |||||||||
Repayment of nonrecourse debt – legacy assets | 0 | 0 | 0 | ||||||||
Excess tax benefit from share-based compensation | 0 | 0 | 0 | ||||||||
Surrender of Shares Relating to Stock Vesting | 0 | 0 | 0 | ||||||||
Repurchase of treasury shares | 0 | ||||||||||
Net cash attributable to financing activities | (3) | 3 | 0 | ||||||||
Net increase (decrease) in cash and cash equivalents | 270 | (3,619) | 3,506 | ||||||||
Cash and cash equivalents at beginning of period | 288 | 3,907 | 288 | 3,907 | 401 | ||||||
Cash and cash equivalents at end of period | 558 | 288 | 558 | 288 | 3,907 | ||||||
Non-Guarantor (Subsidiaries) | |||||||||||
Operating activities | |||||||||||
Net income (loss) attributable to Nationstar | 50,511 | 70,585 | (105,087) | ||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||||||||
Noncontrolling interest | 242 | 0 | |||||||||
(Gain)/loss from subsidiaries | 0 | 0 | 0 | ||||||||
Share-based Compensation | 7,156 | 0 | 0 | ||||||||
Gain on disposal of property | 0 | ||||||||||
Gain on repurchase of unsecured senior notes | 0 | ||||||||||
Excess tax benefit from share based compensation | 0 | 0 | 0 | ||||||||
Loss on foreclosed real estate and other | 0 | 7,189 | 5,999 | ||||||||
Gain on mortgage loans held for sale | (44,912) | (13,416) | 0 | ||||||||
Mortgage loans originated and purchased, net of fees | (1,144,278) | 0 | 0 | ||||||||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | 0 | 0 | 0 | ||||||||
Proceeds on sale of and payments of mortgage loans held for sale | 1,117,865 | (5,614) | 13,325 | ||||||||
(Gain)/loss on derivatives including ineffectiveness | 710 | (1,672) | (2,665) | ||||||||
Cash settlement on derivative financial instruments | 0 | 1,352 | (4,544) | ||||||||
Depreciation and amortization | 13,466 | 3,697 | 157 | ||||||||
Amortization/(accretion) of premiums/(discounts) | (3,678) | (2,190) | (3,817) | ||||||||
Fair value changes in excess spread financing | 0 | 0 | 0 | ||||||||
Fair value changes and amortization/accretion of mortgage servicing rights | 0 | 0 | 0 | ||||||||
Fair value changes mortgage servicing rights financing liability | 0 | 0 | |||||||||
Changes in assets and liabilities: | |||||||||||
Advances | 2,253 | (3,288) | 4,031,271 | ||||||||
Reverse mortgage interests | (340,869) | (376,108) | 0 | ||||||||
Other assets | (120,873) | 2,206,946 | (5,257,613) | ||||||||
Payables and accrued liabilities | 9,665 | 25,550 | 10,225 | ||||||||
Net cash attributable to operating activities | (452,742) | 1,913,031 | (1,312,749) | ||||||||
Investing activities | |||||||||||
Property and equipment additions, net of disposals | (20,502) | (14,598) | (2,722) | ||||||||
Proceeds from sale of building | 0 | ||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 | 0 | ||||||||
Purchase of reverse mortgage servicing rights and interests | 0 | ||||||||||
Purchase of reverse mortgage interests, net of participations sold | 0 | ||||||||||
Sale of forward mortgage service rights | 0 | ||||||||||
Acquisitions, net of cash acquired | (45,796) | (2,146) | 0 | ||||||||
Proceeds on sale of servicer advances | 0 | ||||||||||
Repurchases of REO from Ginnie Mae | 0 | ||||||||||
Proceeds from sales of REO | 0 | ||||||||||
Proceeds on sale of servicer advances | 0 | ||||||||||
Net cash attributable to investing activities | (66,298) | (16,744) | (2,722) | ||||||||
Financing activities | |||||||||||
Transfers (to) from restricted cash, net | (24,936) | 172,183 | (33,095) | ||||||||
Issuance of unsecured senior notes, net | 0 | ||||||||||
Repayment / redemption of unsecured senior notes | 0 | 0 | |||||||||
Issuance of common stock, net of issuance costs | 0 | ||||||||||
Debt financing costs | 0 | 0 | 0 | ||||||||
Increase (decrease) in warehouse facilities | 75,632 | (1,087,901) | 1,532,374 | ||||||||
Increase (decrease) in advance facilities | 77,267 | (1,221,206) | (154,677) | ||||||||
Proceeds from HECM securitizations | 559,757 | 269,033 | |||||||||
Repayment of HECM securitizations | (161,221) | (9,750) | |||||||||
Issuance of excess spread financing | 0 | 0 | 0 | ||||||||
Repayment of excess spread financing | 0 | 0 | 0 | ||||||||
Increase in participating interest financing in reverse mortgage interests | 0 | 0 | 0 | ||||||||
Proceeds from mortgage servicing rights financing | 0 | 0 | |||||||||
Repayment of nonrecourse debt – legacy assets | (11,023) | (15,429) | (13,404) | ||||||||
Excess tax benefit from share-based compensation | 0 | 0 | 0 | ||||||||
Surrender of Shares Relating to Stock Vesting | 0 | 0 | 0 | ||||||||
Repurchase of treasury shares | 0 | ||||||||||
Net cash attributable to financing activities | 515,476 | (1,893,070) | 1,331,198 | ||||||||
Net increase (decrease) in cash and cash equivalents | (3,564) | 3,217 | 15,727 | ||||||||
Cash and cash equivalents at beginning of period | 18,944 | 15,727 | 18,944 | 15,727 | 0 | ||||||
Cash and cash equivalents at end of period | 15,380 | 18,944 | 15,380 | 18,944 | 15,727 | ||||||
Eliminations | |||||||||||
Operating activities | |||||||||||
Net income (loss) attributable to Nationstar | (98,641) | (332,615) | (225,061) | ||||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||||||||
Noncontrolling interest | 0 | 0 | |||||||||
(Gain)/loss from subsidiaries | 98,641 | 332,615 | 225,061 | ||||||||
Share-based Compensation | 0 | 0 | 0 | ||||||||
Gain on disposal of property | 0 | ||||||||||
Gain on repurchase of unsecured senior notes | 0 | ||||||||||
Excess tax benefit from share based compensation | 0 | 0 | 0 | ||||||||
Loss on foreclosed real estate and other | 0 | 0 | 0 | ||||||||
Gain on mortgage loans held for sale | 0 | 0 | (57,254) | ||||||||
Mortgage loans originated and purchased, net of fees | 0 | 0 | 0 | ||||||||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations | 0 | 0 | 0 | ||||||||
Proceeds on sale of and payments of mortgage loans held for sale | 0 | 0 | 57,254 | ||||||||
(Gain)/loss on derivatives including ineffectiveness | 0 | 0 | 0 | ||||||||
Cash settlement on derivative financial instruments | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Amortization/(accretion) of premiums/(discounts) | 0 | 0 | 0 | ||||||||
Fair value changes in excess spread financing | 0 | 0 | 0 | ||||||||
Fair value changes and amortization/accretion of mortgage servicing rights | 0 | 0 | 0 | ||||||||
Fair value changes mortgage servicing rights financing liability | 0 | 0 | |||||||||
Changes in assets and liabilities: | |||||||||||
Advances | 0 | 0 | 0 | ||||||||
Reverse mortgage interests | 0 | 0 | 0 | ||||||||
Other assets | 0 | (31,463) | 17,327 | ||||||||
Payables and accrued liabilities | 0 | 31,463 | (17,327) | ||||||||
Net cash attributable to operating activities | 0 | 0 | 0 | ||||||||
Investing activities | |||||||||||
Property and equipment additions, net of disposals | 0 | 0 | 0 | ||||||||
Proceeds from sale of building | 0 | ||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 | 0 | ||||||||
Purchase of reverse mortgage servicing rights and interests | 0 | ||||||||||
Purchase of reverse mortgage interests, net of participations sold | 0 | ||||||||||
Sale of forward mortgage service rights | 0 | ||||||||||
Acquisitions, net of cash acquired | 0 | 0 | 0 | ||||||||
Proceeds on sale of servicer advances | 0 | ||||||||||
Repurchases of REO from Ginnie Mae | 0 | ||||||||||
Proceeds from sales of REO | 0 | ||||||||||
Proceeds on sale of servicer advances | 0 | ||||||||||
Net cash attributable to investing activities | 0 | 0 | 0 | ||||||||
Financing activities | |||||||||||
Transfers (to) from restricted cash, net | 0 | 0 | 0 | ||||||||
Issuance of unsecured senior notes, net | 0 | ||||||||||
Repayment / redemption of unsecured senior notes | 0 | 0 | |||||||||
Issuance of common stock, net of issuance costs | 0 | ||||||||||
Debt financing costs | 0 | 0 | 0 | ||||||||
Increase (decrease) in warehouse facilities | 0 | 0 | |||||||||
Increase (decrease) in advance facilities | 0 | 0 | 0 | ||||||||
Proceeds from HECM securitizations | 0 | 0 | |||||||||
Repayment of HECM securitizations | 0 | 0 | |||||||||
Issuance of excess spread financing | 0 | 0 | 0 | ||||||||
Repayment of excess spread financing | 0 | 0 | 0 | ||||||||
Increase in participating interest financing in reverse mortgage interests | 0 | 0 | 0 | ||||||||
Proceeds from mortgage servicing rights financing | 0 | 0 | |||||||||
Repayment of nonrecourse debt – legacy assets | 0 | 0 | 0 | ||||||||
Excess tax benefit from share-based compensation | 0 | 0 | 0 | ||||||||
Surrender of Shares Relating to Stock Vesting | 0 | 0 | 0 | ||||||||
Repurchase of treasury shares | 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 period | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Cash and cash equivalents at end of period | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Disclosures Related to Trans113
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | 48 Months Ended | ||||
Aug. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Sep. 30, 2015 | Feb. 28, 2013 | |
Related Party Transaction [Line Items] | |||||||
Principal amount outstanding on mortgage servicing rights | $ 4,600,000,000 | ||||||
Excess spread financing | $ 1,200,000,000 | $ 1,000,000,000 | $ 1,200,000,000 | ||||
Nonrecourse Variable Funding Notes issued by Special Purpose Subsidiaries of NSM | $ 2,100,000,000 | ||||||
Proceeds from Sales Agreement with New Residential | 307,300,000 | ||||||
Mortgage servicing rights financing liability - fair value | 68,700,000 | 49,400,000 | 68,700,000 | ||||
Purchase price paid reverse mortgage | $ 50,200,000 | ||||||
Percentage of aquired reverse loans, sold to co-investor | 70.00% | ||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | $ 714,842,000 | 471,249,000 | 1,527,645,000 | ||||
Newcastle | |||||||
Related Party Transaction [Line Items] | |||||||
Servicing fee, percentage of unpaid principal balance | 0.50% | ||||||
Principal amount outstanding on mortgage servicing rights | $ 700,000,000 | 800,000,000 | 900,000,000 | 700,000,000 | |||
Earned revenue for serving arrangements | 3,500,000 | 4,100,000 | 4,600,000 | ||||
Payment of Servicing Fees in Excess of Contractually Specified Amount | 30,700,000 | ||||||
New Residential | |||||||
Related Party Transaction [Line Items] | |||||||
Earned revenue for serving arrangements | 500,000 | ||||||
Revenue recognized for serving arrangements | 4,000,000 | 3,300,000 | |||||
Springleaf | |||||||
Related Party Transaction [Line Items] | |||||||
Principal amount outstanding on mortgage servicing rights | $ 4,800,000,000 | ||||||
Revenue recognized for serving arrangements | 1,300,000 | 5,300,000 | $ 8,100,000 | ||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | $ 38,800,000 | ||||||
Reverse Mortgages | |||||||
Related Party Transaction [Line Items] | |||||||
Principal amount outstanding on mortgage servicing rights | 29,900,000,000 | 28,000,000,000 | 29,900,000,000 | $ 83,100,000 | |||
Loan Subservicing Agreement | Springleaf | |||||||
Related Party Transaction [Line Items] | |||||||
Total related party transaction | 2,000,000,000 | ||||||
Outstanding receivable from related party | $ 0 | $ 200,000 | $ 0 |
Quarterly Financial Data (Un114
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Data [Abstract] | |||||||||||
Service related | $ 420,603 | $ 211,311 | $ 457,723 | $ 215,123 | $ 334,213 | $ 351,070 | $ 362,916 | $ 327,663 | $ 1,304,760 | $ 1,375,862 | $ 1,384,222 |
Net gain on mortgage loans held for sale | 167,123 | 185,872 | 163,886 | 166,994 | 115,151 | 153,254 | 186,817 | 141,984 | 683,875 | 597,206 | 702,763 |
Total revenues | 587,726 | 397,183 | 621,609 | 382,117 | 449,364 | 504,324 | 549,733 | 469,647 | 1,988,635 | 1,973,068 | 2,086,985 |
Total expenses | 416,530 | 446,221 | 440,985 | 383,843 | 362,623 | 327,224 | 346,711 | 321,133 | 1,687,579 | 1,357,691 | 1,402,278 |
Total other income/(expense) | (50,441) | (63,186) | (60,613) | (72,641) | (54,702) | (67,521) | (97,434) | (109,836) | (246,881) | (329,493) | (338,453) |
Income (loss) before taxes | 120,755 | (112,224) | 120,011 | (74,367) | 32,039 | 109,579 | 105,588 | 38,678 | 54,175 | 285,884 | 346,254 |
Income tax expense (benefit) | 41,661 | (47,295) | 44,171 | (27,525) | 12,618 | (1,700) | 38,941 | 15,001 | 11,012 | 64,860 | 129,200 |
Net income (loss) | 79,094 | (64,929) | 75,840 | (46,842) | 19,421 | 111,279 | 66,647 | 23,677 | 43,163 | 221,024 | 217,054 |
Less: net income (loss) attributable to noncontrolling interests | 217 | 1,413 | 1,281 | 1,473 | 419 | 54 | 192 | (359) | 4,384 | 306 | 0 |
Net income (loss) attributable to Nationstar | $ 78,877 | $ (66,342) | $ 74,559 | $ (48,315) | $ 19,002 | $ 111,225 | $ 66,455 | $ 24,036 | $ 38,779 | $ 220,718 | $ 217,054 |
Earnings per share attributable to common shareholders: | |||||||||||
Basic earnings per share (USD per share) | $ 0.85 | $ (0.62) | $ 0.69 | $ (0.54) | $ 0.22 | $ 1.23 | $ 0.74 | $ 0.27 | $ 0.38 | $ 2.47 | $ 2.43 |
Diluted earnings per share (USD per share) | $ 0.84 | $ (0.62) | $ 0.69 | $ (0.54) | $ 0.21 | $ 1.22 | $ 0.74 | $ 0.27 | $ 0.37 | $ 2.45 | $ 2.40 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - Subsequent Event - USD ($) | 2 Months Ended | ||
Feb. 29, 2016 | Feb. 09, 2016 | Jan. 31, 2016 | |
Subsequent Event [Line Items] | |||
Additional authorized amount for repurchase plan | $ 100,000,000 | ||
Aggregate authorized amount to repurchase | $ 250,000,000 | ||
Subservicing contract amount | $ 55,000,000,000 | ||
Greenlight trade name | |||
Subsequent Event [Line Items] | |||
Carrying value of asset | $ 13,700,000 |
Uncategorized Items - nsm-20151
Label | Element | Value |
Common Stock [Member] | ||
Stock Issued During Period, Shares, Share-based Compensation, Gross | us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensationGross | 1,229,000 |
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | 17,500,000 |
Treasury Stock [Member] | ||
Treasury Stock, Value, Acquired, Cost Method | us-gaap_TreasuryStockValueAcquiredCostMethod | $ 0 |