Document_and_Entity_Informatio
Document and Entity Information (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Aug. 01, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'New Residential Investment Corp. | ' |
Entity Central Index Key | '0001556593 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Par Value | $0.01 | ' |
Entity Common Stock, Shares Outstanding | ' | 282,213,133 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments in: | ' | ' |
Excess mortgage servicing rights, at fair value | $372,416 | $324,151 |
Excess mortgage servicing rights, equity method investees, at fair value | 330,220 | 352,766 |
Servicer advances, at fair value | 3,679,105 | 2,665,551 |
Real estate securities, available-for-sale | 1,463,903 | 1,973,189 |
Residential mortgage loans, held-for-investment | 517,424 | 33,539 |
Consumer loans, equity method investees | 250,048 | 215,062 |
Cash and cash equivalents | 311,126 | 271,994 |
Restricted cash | 37,327 | 33,338 |
Derivative assets | 30,992 | 35,926 |
Other assets | 46,755 | 53,142 |
Total assets | 7,039,316 | 5,958,658 |
Liabilities | ' | ' |
Repurchase agreements | 1,815,182 | 1,620,711 |
Notes payable | 3,289,445 | 2,488,618 |
Trades payable | 0 | 246,931 |
Due to affiliates | 26,132 | 19,169 |
Dividends payable | 70,553 | 63,297 |
Deferred tax liability | 17,645 | 0 |
Accrued expenses and other liabilities | 8,579 | 6,857 |
Total liabilities | 5,227,536 | 4,445,583 |
Commitments and Contingencies | ' | ' |
Equity | ' | ' |
Common Stock, $0.01 par value, 2,000,000,000 shares authorized, 282,213,133 and 253,197,974 issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 2,823 | 2,532 |
Additional paid-in capital | 1,326,272 | 1,157,118 |
Retained earnings | 160,396 | 102,986 |
Accumulated other comprehensive income, net of tax | 8,988 | 3,214 |
Total New Residential stockholders’ equity | 1,498,479 | 1,265,850 |
Noncontrolling interests in equity of consolidated subsidiaries | 313,301 | 247,225 |
Total Equity | 1,811,780 | 1,513,075 |
Total Liabilities And Stockholders Equity | $7,039,316 | $5,958,658 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 282,213,133 | 253,197,974 |
Common stock, shares outstanding | 282,213,133 | 253,197,974 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Interest income | $92,656 | $22,999 | $164,146 | $39,190 |
Interest expense | 36,512 | 2,651 | 75,509 | 3,550 |
Net Interest Income | 56,144 | 20,348 | 88,637 | 35,640 |
Impairment | ' | ' | ' | ' |
Other-than-temporary impairment (OTTI) on securities | 615 | 3,756 | 943 | 3,756 |
Valuation provision on loans | 293 | 0 | 457 | 0 |
Impairment | 908 | 3,756 | 1,400 | 3,756 |
Net interest income after impairment | 55,236 | 16,592 | 87,237 | 31,884 |
Other Income | ' | ' | ' | ' |
Change in fair value of investments in excess mortgage servicing rights | 5,502 | 41,833 | 12,104 | 43,691 |
Change in fair value of investments in excess mortgage servicing rights, equity method investees | 12,743 | 20,127 | 19,117 | 21,096 |
Change in fair value of investments in servicer advances | 82,877 | 0 | 82,877 | 0 |
Earnings from investments in consumer loans, equity method investees | 21,335 | 36,164 | 37,695 | 36,164 |
Gain on settlement of investments | 52,539 | 58 | 56,896 | 58 |
Other income | 2,893 | 0 | 4,250 | 0 |
Other Income | 177,889 | 98,182 | 212,939 | 101,009 |
Operating Expenses | ' | ' | ' | ' |
General and administrative expenses | 5,744 | 602 | 7,819 | 3,321 |
Management fee allocated by Newcastle | 0 | 1,809 | 0 | 4,134 |
Management fee to affiliate | 4,915 | 2,263 | 9,401 | 2,263 |
Incentive compensation to affiliate | 18,863 | 878 | 22,201 | 878 |
Operating Expenses | 29,522 | 5,552 | 39,421 | 10,596 |
Income (Loss) Before Income Taxes | 203,603 | 109,222 | 260,755 | 122,297 |
Income tax expense | 21,395 | 0 | 21,682 | 0 |
Net Income (Loss) | 182,208 | 109,222 | 239,073 | 122,297 |
Noncontrolling interests in Income (Loss) of Consolidated Subsidiaries | 58,705 | 0 | 66,798 | 0 |
Net Income (Loss) Attributable to Common Stockholders | $123,503 | $109,222 | $172,275 | $122,297 |
Net Income Per Share of Common Stock | ' | ' | ' | ' |
Basic (in usd per share) | $0.45 | $0.43 | $0.65 | $0.48 |
Diluted (in usd per share) | $0.44 | $0.43 | $0.64 | $0.48 |
Weighted Average Number of Shares of Common Stock Outstanding | ' | ' | ' | ' |
Basic (in shares) | 272,930,907 | 253,025,645 | 263,124,444 | 253,025,645 |
Diluted (in shares) | 279,336 | 256,659 | 269,582 | 254,853 |
Dividends Declared per Share of Common Stock | $0.25 | $0.07 | $0.43 | $0.07 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Comprehensive income (loss), net of tax | ' | ' | ' | ' |
Net income (loss) | $182,208 | $109,222 | $239,073 | $122,297 |
Other comprehensive income (loss) | ' | ' | ' | ' |
Net unrealized gain (loss) on securities | 55,729 | -16,193 | 66,607 | -10 |
Reclassification of net realized (gain) loss on securities into earnings | -56,669 | 3,698 | -60,833 | 3,698 |
Total other comprehensive income (loss) | -940 | -12,495 | 5,774 | 3,688 |
Total comprehensive income (loss) | 181,268 | 96,727 | 244,847 | 125,985 |
Comprehensive income (loss) attributable to noncontrolling interests | 58,705 | 0 | 66,798 | 0 |
Comprehensive income (loss) attributable to common stockholders | $122,563 | $96,727 | $178,049 | $125,985 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total New Residential Stockholders’ Equity | Noncontrolling Interests in Equity of Consolidated Subsidiaries |
In Thousands, except Share data, unless otherwise specified | |||||||
Equity - December 31, 2013 at Dec. 31, 2013 | $1,513,075 | $2,532 | $1,157,118 | $102,986 | $3,214 | $1,265,850 | $247,225 |
Equity - December 31, 2013 (in shares) at Dec. 31, 2013 | ' | 253,197,974 | ' | ' | ' | ' | ' |
Dividends declared | -114,865 | ' | ' | -114,865 | ' | -114,865 | ' |
Capital contributions | 142,082 | ' | ' | ' | ' | ' | 142,082 |
Capital distributions | -144,196 | ' | ' | ' | ' | ' | -144,196 |
Issuance of common stock (in shares) | ' | 28,750,000 | ' | ' | ' | ' | ' |
Issuance of common stock | 169,905 | 288 | 169,617 | ' | ' | 169,905 | ' |
Option exercise (in shares) | ' | 215,000 | ' | ' | ' | ' | ' |
Option exercise | 603 | 2 | 601 | ' | ' | 603 | ' |
Dilution impact of distributions from consolidated subsidiaries | ' | ' | -1,392 | ' | ' | -1,392 | 1,392 |
Director share grant (in shares) | ' | 50,159 | ' | ' | ' | ' | ' |
Director share grant | 329 | 1 | 328 | ' | ' | 329 | ' |
Comprehensive income (loss) (net of tax) | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 239,073 | ' | ' | 172,275 | ' | 172,275 | 66,798 |
Net unrealized gain (loss) on securities | 66,607 | ' | ' | ' | 66,607 | 66,607 | ' |
Reclassification of net realized (gain) loss on securities into earnings | -60,833 | ' | ' | ' | -60,833 | -60,833 | ' |
Total comprehensive income (loss) | 244,847 | ' | ' | ' | ' | 178,049 | 66,798 |
Equity - June 30, 2014 at Jun. 30, 2014 | $1,811,780 | $2,823 | $1,326,272 | $160,396 | $8,988 | $1,498,479 | $313,301 |
Equity - June 30, 2014 (in shares) at Jun. 30, 2014 | ' | 282,213,133 | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | |||
Cash Flows From Operating Activities | ' | ' | ' | ' |
Net income (loss) | $239,073 | $122,297 | ' | ' |
Adjustments to reconcile net income to net cash provided by (used in) operating activities (inclusive of amounts related to discontinued operations): | ' | ' | ' | ' |
Change in fair value of investments in excess mortgage servicing rights | -12,104 | -43,691 | ' | ' |
Change in fair value of investments in excess mortgage servicer rights, equity method investees | -19,117 | -21,096 | ' | ' |
Change in fair value of investments in servicer advances | -82,877 | 0 | ' | ' |
Earnings from consumer loan equity method investees | -37,695 | -36,164 | ' | ' |
Change in fair value of investments in derivative assets | -2,444 | 0 | ' | ' |
Accretion and other amortization | -134,339 | -27,377 | ' | ' |
(Gain) / loss on settlement of investments (net) | -56,896 | -58 | ' | ' |
(Gain) / loss on transfer of loans to REO | -6,694 | 0 | ' | ' |
Other-than-temporary impairment (“OTTIâ€) | 943 | 3,756 | ' | ' |
Valuation provision on loans | 457 | 0 | ' | ' |
Non-cash directors’ compensation | 329 | 0 | ' | ' |
Deferred tax liability | 17,645 | 0 | ' | ' |
Changes in: | ' | ' | ' | ' |
Restricted cash | -3,989 | 0 | ' | ' |
Other assets | -3,213 | -3,907 | ' | ' |
Due to affiliates | 6,963 | -2,715 | ' | ' |
Accrued expenses and other liabilities | 1,800 | 574 | ' | ' |
Reduction of liability deemed as capital contribution by Newcastle | 0 | 11,515 | ' | ' |
Other operating cash flows: | ' | ' | ' | ' |
Interest received from excess mortgage servicing rights | 25,509 | 3,464 | ' | ' |
Interest received from servicer advance investments | 65,321 | 0 | ' | ' |
Interest received from residential mortgage loans, held-for-investment | 1,223 | 0 | ' | ' |
Distributions of earnings, equity method investees | ' | ' | 20,500 | 4,822 |
Cash proceeds from investments, in excess of interest income | 0 | 41,435 | ' | ' |
Net cash proceeds deemed as capital distributions to Newcastle | 0 | -35,571 | ' | ' |
Net cash provided by (used in) operating activities | 27,435 | 18,053 | ' | ' |
Cash Flows From Investing Activities | ' | ' | ' | ' |
Acquisition of investments in excess mortgage servicing rights | -55,289 | -2,391 | ' | ' |
Acquisition of investments in excess mortgage servicing rights, equity method investees | 0 | -53,766 | ' | ' |
Purchase of servicer advance investments | -3,955,602 | 0 | ' | ' |
Purchase of Agency ARM RMBS | -354,838 | -140,924 | ' | ' |
Purchase of Non-Agency RMBS | -1,057,464 | -124,176 | ' | ' |
Purchase of residential mortgage loans, held-for-investment | -733,693 | 0 | ' | ' |
Purchase of derivative assets | -70,027 | 0 | ' | ' |
Purchase of real estate owned | -3,391 | 0 | ' | ' |
Payment for settlement of derivatives at a loss | -17,273 | 0 | ' | ' |
Return of investments in excess mortgage servicing rights | 19,421 | 6,600 | ' | ' |
Return of investments in excess mortgage servicing rights, equity method investees | 21,163 | 4,018 | ' | ' |
Principal repayments from servicing advance investments | 3,062,259 | 0 | ' | ' |
Principal repayments from Agency ARM RMBS | 143,735 | 102,553 | ' | ' |
Principal repayments from Non-Agency RMBS | 49,175 | 23,592 | ' | ' |
Principal repayments from residential mortgage loans, held-for-investment | 8,289 | 1,789 | ' | ' |
Proceeds from sale of Agency ARM RMBS | 324,379 | 0 | ' | ' |
Proceeds from sale of Non-Agency RMBS | 1,273,190 | 4,421 | ' | ' |
Proceeds from settlement of derivatives | 13,271 | 0 | ' | ' |
Proceeds from sale of residential mortgage loans | 249,690 | 0 | ' | ' |
Proceeds from sale of real estate owned | 2,880 | 0 | ' | ' |
Net cash provided by (used in) investing activities | -1,080,125 | -178,284 | ' | ' |
Cash Flows From Financing Activities | ' | ' | ' | ' |
Repayments of repurchase agreements | -2,274,155 | -290,747 | ' | ' |
Margin deposits under repurchase agreements | -115,961 | -87,579 | ' | ' |
Repayments of notes payable | -4,216,985 | 0 | ' | ' |
Payment of deferred financing fees | -6,530 | 0 | ' | ' |
Common stock dividends paid | -107,609 | 0 | ' | ' |
Borrowings under repurchase agreements | 2,473,920 | 415,982 | ' | ' |
Return of margin deposits under repurchase agreements | 152,936 | 87,216 | ' | ' |
Borrowings under notes payable | 5,017,812 | 0 | ' | ' |
Issuance of common stock | 173,201 | 0 | ' | ' |
Costs related to issuance of common stock | -2,693 | 0 | ' | ' |
Capital contributions | 0 | 0 | ' | ' |
Contributions in kind | 0 | 245,058 | ' | ' |
Noncontrolling interest in equity of consolidated subsidiaries - contributions | 142,082 | 0 | ' | ' |
Noncontrolling interest in equity of consolidated subsidiaries - distributions | -144,196 | 0 | ' | ' |
Net cash provided by (used in) financing activities | 1,091,822 | 369,930 | ' | ' |
Net Increase (Decrease) in Cash and Cash Equivalents | 39,132 | 209,699 | ' | ' |
Cash and Cash Equivalents, Beginning of Period | 271,994 | 0 | ' | ' |
Cash and Cash Equivalents, End of Period | 311,126 | 209,699 | ' | ' |
Supplemental Disclosure of Cash Flow Information | ' | ' | ' | ' |
Cash paid during the period for interest | 72,100 | 3,029 | ' | ' |
Cash paid during the period for income taxes | 3,510 | 0 | ' | ' |
Supplemental Schedule of Non-Cash Investing and Financing Activities Prior to Date of Cash Contribution by Newcastle | ' | ' | ' | ' |
Cash proceeds from investments, in excess of interest income | 0 | 41,435 | ' | ' |
Acquisition of real estate securities | 0 | 242,750 | ' | ' |
Acquisition of investments in excess mortgage servicing rights, equity method investees at fair value | 0 | 125,099 | ' | ' |
Acquisition of residential mortgage loans, held-for-investment | 0 | 35,138 | ' | ' |
Acquisition of investments in consumer loan equity method investees | 0 | 245,421 | ' | ' |
Borrowings under repurchase agreements | 0 | -1,179,068 | ' | ' |
Repayments of repurchase agreements | 0 | 3,902 | ' | ' |
Capital contributions by Newcastle | 0 | 648,408 | ' | ' |
Contributions in-kind by Newcastle | 0 | 1,093,684 | ' | ' |
Capital distributions to Newcastle | 0 | 1,228,054 | ' | ' |
Supplemental Schedule of Non-Cash Investing and Financing Activities Subsequent to Date of Cash Contribution by Newcastle | ' | ' | ' | ' |
Dividends payable | 70,553 | 17,712 | ' | ' |
Equity Method Investments, Non-Cash Distribution | $557 | $0 | ' | ' |
GENERAL
GENERAL | 6 Months Ended |
Jun. 30, 2014 | |
General | ' |
GENERAL | ' |
GENERAL | |
New Residential Investment Corp. (together with its subsidiaries, “New Residential”) is a Delaware corporation that was formed as a limited liability company in September 2011 for the purpose of making real estate related investments and commenced operations on December 8, 2011. On December 20, 2012, New Residential was converted to a corporation. Newcastle Investment Corp. (“Newcastle”) was the sole stockholder of New Residential until the spin-off (Note 13), which was completed on May 15, 2013. Newcastle is listed on the New York Stock Exchange (“NYSE”) under the symbol “NCT.” | |
Following the spin-off, New Residential is an independent publicly traded real estate investment trust (“REIT”) primarily focused on investing in residential mortgage related assets. New Residential is listed on the NYSE under the symbol “NRZ.” | |
New Residential intends to elect and qualify to be taxed as a REIT for U.S. federal income tax purposes for the tax year ended December 31, 2013. As such, New Residential will generally not be subject to U.S. federal corporate income tax on that portion of its net income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. See Note 17 regarding New Residential's taxable REIT subsidiaries. | |
New Residential has entered into a management agreement (the “Management Agreement”) with FIG LLC (the “Manager”), an affiliate of Fortress Investment Group LLC (“Fortress”), under which the Manager advises New Residential on various aspects of its business and manages its day-to-day operations, subject to the supervision of New Residential’s board of directors. For its services, the Manager is entitled to management fees and incentive compensation, both defined in, and in accordance with the terms of, the Management Agreement. The Manager also manages Newcastle and investment funds that own a majority of Nationstar Mortgage LLC (“Nationstar”), a leading residential mortgage servicer, and Springleaf Holdings, Inc. (“Springleaf”), managing member of the Consumer Loan Companies (Note 9). | |
As of June 30, 2014, New Residential conducted its business through the following segments: (i) investments in Excess MSRs, (ii) investments in servicer advances, (iii) investments in real estate securities, (iv) investments in real estate loans, (v) investments in consumer loans and (vi) corporate. | |
Approximately 5.3 million shares of New Residential’s common stock were held by Fortress, through its affiliates, and its principals as of June 30, 2014. In addition, Fortress, through its affiliates, held options to purchase approximately 17.9 million shares of New Residential’s common stock as of June 30, 2014. | |
The consolidated financial statements for periods prior to May 15, 2013 have been prepared on a spin-off basis from the consolidated financial statements and accounting records of Newcastle and reflect New Residential’s historical results of operations, financial position and cash flows, in accordance with U.S. GAAP. As presented in the Consolidated Statements of Cash Flows, New Residential did not have any cash balance during periods prior to April 5, 2013, which is the first date Newcastle contributed cash to New Residential. All of its cash activity occurred in Newcastle’s accounts during these periods. The consolidated financial statements for periods prior to May 15, 2013 do not necessarily reflect what New Residential’s consolidated results of operations, financial position and cash flows would have been had New Residential operated as an independent company prior to the spin-off. | |
Certain expenses of Newcastle, comprised primarily of a portion of its management fee, have been allocated to New Residential to the extent they were directly associated with New Residential for periods prior to the spin-off on May 15, 2013. The portion of the management fee allocated to New Residential prior to the spin-off represents the product of the management fee rate payable by Newcastle (1.5%) and New Residential’s gross equity, which management believes is a reasonable method for quantifying the expense of the services provided by the employees of the Manager to New Residential. The incremental cost of certain legal, accounting and other expenses related to New Residential’s operations prior to May 15, 2013 are reflected in the accompanying consolidated financial statements. New Residential and Newcastle do not share any expenses following the spin-off. | |
The accompanying condensed consolidated financial statements and related notes of New Residential have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared under U.S. generally accepted accounting principles have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of New Residential’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These consolidated financial statements should be read in conjunction with New Residential’s consolidated financial statements for the year ended December 31, 2013 and notes thereto included in New Residential’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. Capitalized terms used herein, and not otherwise defined, are defined in New Residential’s consolidated financial statements for the year ended December 31, 2013. | |
Certain prior period amounts have been reclassified to conform to the current period's presentation. | |
Recently Adopted Accounting Policies | |
Purchased Credit-Impaired (PCI) Loans | |
New Residential evaluates the credit quality of its loans, as of the acquisition date, for evidence of credit quality deterioration. Loans with evidence of credit deterioration since their origination, and where it is probable that New Residential will not collect all contractually required principal and interest payments, are PCI loans. At acquisition, New Residential aggregates PCI loans into pools based on common risk characteristics and loans aggregated into pools are accounted for as if each pool were a single loan with a single composite interest rate and an aggregate expectation of cash flows. | |
The excess of the total cash flows (both principal and interest) expected to be collected over the carrying value of the PCI loans is referred to as the accretable yield. This amount is not reported on New Residential’s Condensed Consolidated Balance Sheets but is accreted into interest income at a level rate of return over the remaining estimated life of the pool of loans. | |
On a quarterly basis, New Residential estimates the total cash flows expected to be collected over the remaining life of each pool. Probable decreases in expected cash flows trigger the recognition of impairment. Impairments are recognized through the valuation provision for loans and an increase in the allowance for loan losses. Probable and significant increases in expected cash flows would first reverse any previously recorded allowance for loan losses with any remaining increases recognized prospectively as a yield adjustment over the remaining estimated life of the pool of loans. | |
The excess of the total contractual cash flows over the cash flows expected to be collected is referred to as the nonaccretable difference. This amount is not reported on New Residential's Condensed Consolidated Balance Sheets and represents an estimate of the amount of principal and interest that will not be collected. | |
The liquidation of PCI loans, which may include sales of loans, receipt of payment in full by the borrower, or foreclosure, results in removal of the loans from the underlying PCI pool. When the amount of the liquidation proceeds, if any, is less than the unpaid principal balance of the loan, the difference is first applied against the PCI pool’s nonaccretable difference. When the nonaccretable difference for a particular loan pool has been fully depleted, any excess of the unpaid principal balance of the loan over the liquidation proceeds is written off against the PCI pool’s allowance for loan losses. | |
Recent Accounting Pronouncements | |
In January 2014, the FASB issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The standard clarifies the timing of when a creditor is considered to have taken physical possession of residential real estate collateral for a consumer mortgage loan, resulting in the reclassification of the loan receivable to real estate owned. A creditor has taken physical possession of the property when either (1) the creditor obtains legal title through foreclosure, or (2) the borrower transfers all interests in the property to the creditor via a deed in lieu of foreclosure or a similar legal agreement. The standard also requires disclosure of the amount of foreclosed residential real estate property held by the creditor and the recorded investment in residential real estate mortgage loans that are in process of foreclosure. The ASU is effective for New Residential in the first quarter of 2015. Early adoption is permitted. New Residential is currently evaluating the new guidance to determine the impact that it may have on its consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09, Revenues from Contracts with Customers (Topic 606). The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The ASU is effective for New Residential in the first quarter of 2017. Early application is not permitted. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance in the ASU. New Residential is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The standard changes the accounting for repurchase-to-maturity transactions and linked repurchase financing transactions to secured borrowing accounting. The ASU also expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers accounted for as secured borrowings. The ASU is effective for New Residential in the first quarter of 2015. Early application is not permitted. Disclosures are not required for comparative periods presented before the effective date. New Residential is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. | |
The FASB has recently issued or discussed a number of proposed standards on such topics as consolidation, financial statement presentation, financial instruments and hedging. Some of the proposed changes are significant and could have a material impact on New Residential’s reporting. New Residential has not yet fully evaluated the potential impact of these proposals, but will make such an evaluation as the standards are finalized. |
OTHER_INCOME_ASSETS_AND_LIABIL
OTHER INCOME, ASSETS AND LIABILITIES | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Other Income Assets And Liabilities | ' | |||||||||||||||||
OTHER INCOME, ASSETS AND LIABILITIES | ' | |||||||||||||||||
OTHER INCOME, ASSETS AND LIABILITIES | ||||||||||||||||||
Other income is comprised of the following: | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Gain (loss) on derivative instruments | $ | (3,801 | ) | $ | — | $ | (2,444 | ) | $ | — | ||||||||
Gain (loss) on transfer of loans to REO | 6,694 | — | 6,694 | — | ||||||||||||||
$ | 2,893 | $ | — | $ | 4,250 | $ | — | |||||||||||
Other assets and liabilities are comprised of the following: | ||||||||||||||||||
Other Assets | Accrued Expenses and Other Liabilities | |||||||||||||||||
30-Jun-14 | 31-Dec-13 | 30-Jun-14 | 31-Dec-13 | |||||||||||||||
Margin receivable | $ | 772 | $ | 40,132 | Interest payable | $ | 2,185 | $ | 4,010 | |||||||||
Interest and other receivables | 5,936 | 7,548 | Accounts payable | 4,950 | 2,829 | |||||||||||||
Deferred financing costs, net(A) | 5,554 | 4,773 | Derivative liability | — | 18 | |||||||||||||
Real estate owned(B) | 30,976 | — | Current taxes payable | 527 | — | |||||||||||||
Other assets | 3,517 | 689 | Other liabilities | 917 | — | |||||||||||||
$ | 46,755 | $ | 53,142 | $ | 8,579 | $ | 6,857 | |||||||||||
(A) | Deferred financing costs is net of accumulated amortization of $6,517 and $768 as of June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||
(B) | Real estate owned ("REO") assets are those individual properties New Residential purchased or received in satisfaction of a debt (e.g., by taking legal title or physical possession). REO assets are initially recognized at fair value less costs to sell and the carrying value of the acquired property is reviewed on a recurring basis and adjusted, if necessary, to the lower of cost or fair value. | |||||||||||||||||
As reflected on the Condensed Consolidated Statements of Cash Flows, accretion and other amortization is comprised of the following: | ||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Accretion of servicer advance interest income | $ | 102,823 | $ | — | ||||||||||||||
Accretion of excess mortgage servicing rights income | 24,789 | 20,781 | ||||||||||||||||
Accretion of net discount on securities and loans | 12,477 | 6,596 | ||||||||||||||||
Amortization of deferred financing costs | (5,750 | ) | — | |||||||||||||||
$ | 134,339 | $ | 27,377 | |||||||||||||||
SEGMENT_REPORTING
SEGMENT REPORTING | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
SEGMENT REPORTING | ' | |||||||||||||||||||||||||||
SEGMENT REPORTING | ||||||||||||||||||||||||||||
New Residential conducts its business through the following segments: (i) investments in Excess MSRs, (ii) investments in servicer advances, (iii) investments in real estate securities, (iv) investments in real estate loans, (v) investments in consumer loans, and (vi) corporate. The corporate segment consists primarily of (i) general and administrative expenses, (ii) the allocation of management fees by Newcastle until the spin-off on May 15, 2013, (iii) the management fees and incentive compensation owed to the Manager by New Residential following the spin-off, (iv) corporate cash and related interest income, and (v) the secured corporate loan and related interest expense. | ||||||||||||||||||||||||||||
Summary financial data on New Residential’s segments is given below, together with a reconciliation to the same data for New Residential as a whole: | ||||||||||||||||||||||||||||
Servicing Related Assets | Residential Securities and Loans | |||||||||||||||||||||||||||
Excess MSRs | Servicer Advances | Real Estate Securities | Real Estate Loans | Consumer Loans | Corporate | Total | ||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
Interest income | $ | 10,973 | $ | 57,107 | $ | 19,522 | $ | 5,054 | $ | — | $ | — | $ | 92,656 | ||||||||||||||
Interest expense | — | 29,772 | 3,512 | 1,191 | 1,538 | 499 | 36,512 | |||||||||||||||||||||
Net interest income (expense) | 10,973 | 27,335 | 16,010 | 3,863 | (1,538 | ) | (499 | ) | 56,144 | |||||||||||||||||||
Impairment | — | — | 615 | 293 | — | — | 908 | |||||||||||||||||||||
Other income | 18,245 | 82,709 | 53,413 | 2,187 | 21,335 | — | 177,889 | |||||||||||||||||||||
Operating expenses | 320 | 769 | 571 | 887 | 90 | 26,885 | 29,522 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | 28,898 | 109,275 | 68,237 | 4,870 | 19,707 | (27,384 | ) | 203,603 | ||||||||||||||||||||
Income tax expense | — | 21,395 | — | — | — | — | 21,395 | |||||||||||||||||||||
Net Income (Loss) | $ | 28,898 | $ | 87,880 | $ | 68,237 | $ | 4,870 | $ | 19,707 | $ | (27,384 | ) | $ | 182,208 | |||||||||||||
Noncontrolling interests in income | $ | — | $ | 58,705 | $ | — | $ | — | $ | — | $ | — | $ | 58,705 | ||||||||||||||
(loss) of consolidated subsidiaries | ||||||||||||||||||||||||||||
Net income (loss) attributable to | $ | 28,898 | $ | 29,175 | $ | 68,237 | $ | 4,870 | $ | 19,707 | $ | (27,384 | ) | $ | 123,503 | |||||||||||||
common stockholders | ||||||||||||||||||||||||||||
Servicing Related Assets | Residential Securities and Loans | |||||||||||||||||||||||||||
Excess MSRs | Servicer Advances | Real Estate Securities | Real Estate Loans | Consumer Loans | Corporate | Total | ||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
Interest income | $ | 24,789 | $ | 102,823 | $ | 30,760 | $ | 5,774 | $ | — | $ | — | $ | 164,146 | ||||||||||||||
Interest expense | 1,291 | 61,728 | 7,581 | 1,389 | 3,021 | 499 | 75,509 | |||||||||||||||||||||
Net interest income (expense) | 23,498 | 41,095 | 23,179 | 4,385 | (3,021 | ) | (499 | ) | 88,637 | |||||||||||||||||||
Impairment | — | — | 943 | 457 | — | — | 1,400 | |||||||||||||||||||||
Other income | 31,221 | 82,709 | 58,455 | 2,858 | 37,695 | 1 | 212,939 | |||||||||||||||||||||
Operating expenses | 385 | 1,019 | 631 | 977 | 113 | 36,296 | 39,421 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | 54,334 | 122,785 | 80,060 | 5,809 | 34,561 | (36,794 | ) | 260,755 | ||||||||||||||||||||
Income tax expense | — | 21,682 | — | — | — | — | 21,682 | |||||||||||||||||||||
Net Income (Loss) | $ | 54,334 | $ | 101,103 | $ | 80,060 | $ | 5,809 | $ | 34,561 | $ | (36,794 | ) | $ | 239,073 | |||||||||||||
Noncontrolling interests in income | $ | — | $ | 66,798 | $ | — | $ | — | $ | — | $ | — | $ | 66,798 | ||||||||||||||
(loss) of consolidated subsidiaries | ||||||||||||||||||||||||||||
Net income (loss) attributable to | $ | 54,334 | $ | 34,305 | $ | 80,060 | $ | 5,809 | $ | 34,561 | $ | (36,794 | ) | $ | 172,275 | |||||||||||||
common stockholders | ||||||||||||||||||||||||||||
Servicing Related Assets | Residential Securities and Loans | |||||||||||||||||||||||||||
Excess MSRs | Servicer Advances | Real Estate Securities | Real Estate Loans | Consumer Loans | Corporate | Total | ||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||
Investments | $ | 702,636 | $ | 3,679,105 | $ | 1,463,903 | $ | 517,424 | $ | 250,048 | $ | — | $ | 6,613,116 | ||||||||||||||
Cash and cash equivalents | 3,405 | 120,722 | 22,714 | 617 | 2,152 | 161,516 | 311,126 | |||||||||||||||||||||
Restricted cash | — | 37,327 | — | — | — | — | 37,327 | |||||||||||||||||||||
Derivative assets | — | — | 256 | 30,736 | — | — | 30,992 | |||||||||||||||||||||
Other assets | — | 7,925 | 6,499 | 31,435 | 557 | 339 | 46,755 | |||||||||||||||||||||
Total assets | $ | 706,041 | $ | 3,845,079 | $ | 1,493,372 | $ | 580,212 | $ | 252,757 | $ | 161,855 | $ | 7,039,316 | ||||||||||||||
Debt | $ | — | $ | 3,265,530 | $ | 1,331,354 | $ | 382,743 | $ | 125,000 | $ | — | $ | 5,104,627 | ||||||||||||||
Other liabilities | 1,205 | 20,595 | 254 | 1,925 | 519 | 98,411 | 122,909 | |||||||||||||||||||||
Total liabilities | 1,205 | 3,286,125 | 1,331,608 | 384,668 | 125,519 | 98,411 | 5,227,536 | |||||||||||||||||||||
Total equity | 704,836 | 558,954 | 161,764 | 195,544 | 127,238 | 63,444 | 1,811,780 | |||||||||||||||||||||
Noncontrolling interests in equity | — | 313,301 | — | — | — | — | 313,301 | |||||||||||||||||||||
of consolidated subsidiaries | ||||||||||||||||||||||||||||
Total New Residential | $ | 704,836 | $ | 245,653 | $ | 161,764 | $ | 195,544 | $ | 127,238 | $ | 63,444 | $ | 1,498,479 | ||||||||||||||
stockholders’ equity | ||||||||||||||||||||||||||||
Investments in equity method | $ | 330,220 | $ | — | $ | — | $ | — | $ | 250,048 | $ | — | $ | 580,268 | ||||||||||||||
investees | ||||||||||||||||||||||||||||
Servicing Related Assets | Residential Securities and Loans | |||||||||||||||||||||||||||
Excess MSRs | Servicer Advances | Real Estate Securities | Real Estate Loans | Consumer Loans | Corporate | Total | ||||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
Interest income | $ | 10,745 | $ | — | $ | 11,378 | $ | 838 | $ | — | $ | 38 | $ | 22,999 | ||||||||||||||
Interest expense | — | — | 2,651 | — | — | — | 2,651 | |||||||||||||||||||||
Net interest income (expense) | 10,745 | — | 8,727 | 838 | — | 38 | 20,348 | |||||||||||||||||||||
Impairment | — | — | 3,756 | — | — | — | 3,756 | |||||||||||||||||||||
Other income | 61,960 | — | 58 | — | 36,164 | — | 98,182 | |||||||||||||||||||||
Operating expenses | 34 | — | 27 | 125 | — | 5,366 | 5,552 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | 72,671 | — | 5,002 | 713 | 36,164 | (5,328 | ) | 109,222 | ||||||||||||||||||||
Income tax expense | — | — | — | — | — | — | — | |||||||||||||||||||||
Net Income (Loss) | $ | 72,671 | $ | — | $ | 5,002 | $ | 713 | $ | 36,164 | $ | (5,328 | ) | $ | 109,222 | |||||||||||||
Noncontrolling interests in income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
(loss) of consolidated subsidiaries | ||||||||||||||||||||||||||||
Net income (loss) attributable to | $ | 72,671 | $ | — | $ | 5,002 | $ | 713 | $ | 36,164 | $ | (5,328 | ) | $ | 109,222 | |||||||||||||
common stockholders | ||||||||||||||||||||||||||||
Servicing Related Assets | Residential Securities and Loans | |||||||||||||||||||||||||||
Excess MSRs | Servicer Advances | Real Estate Securities | Real Estate Loans | Consumer Loans | Corporate | Total | ||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
Interest income | $ | 20,780 | $ | — | $ | 17,188 | $ | 1,184 | $ | — | $ | 38 | $ | 39,190 | ||||||||||||||
Interest expense | — | — | 3,550 | — | — | — | 3,550 | |||||||||||||||||||||
Net interest income (expense) | 20,780 | — | 13,638 | 1,184 | — | 38 | 35,640 | |||||||||||||||||||||
Impairment | — | — | 3,756 | — | — | — | 3,756 | |||||||||||||||||||||
Other income | 64,787 | — | 58 | — | 36,164 | — | 101,009 | |||||||||||||||||||||
Operating expenses | 96 | — | 22 | 130 | 1,951 | 8,397 | 10,596 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | 85,471 | — | 9,918 | 1,054 | 34,213 | (8,359 | ) | 122,297 | ||||||||||||||||||||
Income tax expense | — | — | — | — | — | — | — | |||||||||||||||||||||
Net Income (Loss) | $ | 85,471 | $ | — | $ | 9,918 | $ | 1,054 | $ | 34,213 | $ | (8,359 | ) | $ | 122,297 | |||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Net income (loss) attributable to common stockholders | $ | 85,471 | $ | — | $ | 9,918 | $ | 1,054 | $ | 34,213 | $ | (8,359 | ) | $ | 122,297 | |||||||||||||
INVESTMENTS_IN_EXCESS_MORTGAGE
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Transfers and Servicing [Abstract] | ' | ||||||||||||||||||||
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS | ' | ||||||||||||||||||||
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS | |||||||||||||||||||||
Pool 1. On December 13, 2011, Newcastle announced the completion of the first co-investment between New Residential and Nationstar in Excess MSRs related to mortgage servicing rights acquired by Nationstar. New Residential invested approximately $43.7 million to acquire a 65% interest in the Excess MSRs on a portfolio of government-sponsored enterprise (“GSE”) residential mortgage loans (“Pool 1”). Nationstar has co-invested on a pari passu basis with New Residential in 35% of the Excess MSRs and is the servicer of the loans, performing all servicing and advancing functions, and retaining the ancillary income, the servicing obligations and liabilities associated with this portfolio as the servicer. Under the terms of this investment, to the extent that any loans in the portfolio are refinanced by Nationstar, the resulting Excess MSRs are shared on a pro rata basis by New Residential and Nationstar, subject to certain limitations. | |||||||||||||||||||||
Pool 2. On June 5, 2012, Newcastle announced the completion of a co-investment between New Residential and Nationstar in Excess MSRs related to mortgage servicing rights Nationstar acquired from Bank of America. New Residential invested approximately $42.3 million to acquire a 65% interest in the Excess MSRs on a portfolio of residential mortgage loans (“Pool 2”), comprised of loans in GSE pools. Nationstar has co-invested on a pari passu basis with New Residential in 35% of the Excess MSRs and is the servicer of the loans, performing all servicing and advancing functions, and retaining the ancillary income, servicing obligations and liabilities associated with this portfolio as the servicer. Under the terms of this investment, to the extent that any loans in the portfolio are refinanced by Nationstar, the resulting Excess MSRs are shared on a pro rata basis by New Residential and Nationstar, subject to certain limitations. | |||||||||||||||||||||
Pools 3, 4 and 5. On June 29, 2012, Newcastle announced the completion of a co-investment between New Residential and Nationstar in Excess MSRs related to mortgage servicing rights Nationstar acquired from Aurora Bank FSB, a subsidiary of Lehman Brothers Bancorp Inc. New Residential invested approximately $176.5 million to acquire a 65% interest in the Excess MSRs on a portfolio of residential mortgage loans, comprised of approximately 25% conforming loans in Fannie Mae (“Pool 3”) and Freddie Mac (“Pool 4”) GSE pools as well as approximately 75% non-conforming loans in private label securitizations (“Pool 5”). Nationstar had co-invested on a pari passu basis with New Residential in 35% of the Excess MSRs and is the servicer of the loans, performing all servicing and advancing functions, and retaining the ancillary income, servicing obligations and liabilities associated with this portfolio as the servicer. In September 2013, New Residential invested an additional $26.6 million to acquire an additional 15% interest in the Excess MSRs related to Pool 5 from Nationstar. Under the terms of this investment, to the extent that any loans in the portfolio are refinanced by Nationstar, the resulting Excess MSRs are shared on a pro rata basis by New Residential and Nationstar, subject to certain limitations. In December 2013, New Residential entered into a corporate loan secured by the Excess MSRs related to Pool 5 (Note 11). New Residential, through co-investments made by its subsidiaries, has separately purchased the servicer advances and the basic fee component of the related MSRs associated with Pool 5. See Note 6 for information on New Residential’s investment in servicer advances with respect to Pool 5. | |||||||||||||||||||||
Pool 11. On May 20, 2013, New Residential entered into an excess spread agreement with Nationstar to purchase a two-thirds interest in the Excess MSRs on a portion of the loans in the pool which were eligible to be refinanced by a specific third party for a period of time for $2.4 million, with Nationstar retaining the remaining one-third interest in the Excess MSRs and all servicing rights. After this period expired, Nationstar acquired the ability to refinance all of the loans in the pool. See Note 5 for information on New Residential’s other agreements with Nationstar with respect to Excess MSRs on Pool 11. | |||||||||||||||||||||
Pool 12. On September 23, 2013, New Residential invested approximately $17.4 million to acquire a 40% interest in the Excess MSRs on a portfolio of residential mortgage loans (“Pool 12”), comprised of loans in private label securitizations. Fortress-managed funds also acquired a 40% interest in the Excess MSRs and the remaining 20% interest in the Excess MSRs is owned by Nationstar. Nationstar performs all servicing and advancing functions, and it retains the ancillary income, servicing obligations and liabilities associated with this portfolio as the servicer. Under the terms of this investment, to the extent that any loans in the portfolio are refinanced by Nationstar, the resulting Excess MSRs are shared on a pro rata basis by New Residential, the Fortress-managed funds and Nationstar, subject to certain limitations. New Residential, through co-investments made by its subsidiaries, has separately purchased the servicer advances and the basic fee component of the related MSRs associated with this portfolio. See Note 6 for information on New Residential’s investment in servicer advances with respect to Pool 12. | |||||||||||||||||||||
Pool 17. On January 17, 2014, New Residential completed an additional closing of Excess MSRs that it agreed to acquire as part of a previously committed transaction between Nationstar and First Tennessee Bank (“Pool 17”). New Residential invested approximately $19.1 million in Pool 17 on loans with an aggregate UPB of approximately $8.1 billion. | |||||||||||||||||||||
New Residential agreed to acquire a one-third interest in Excess MSRs on the portfolio. Fortress-managed funds and Nationstar each agreed to acquire a one-third interest in the Excess MSRs. Nationstar as servicer will perform all servicing and advancing functions, and retain the ancillary income, servicing obligations and liabilities as the servicer of the underlying loans in the portfolio. Under the terms of this investment, to the extent that any loans in the portfolio are refinanced by Nationstar, the resulting Excess MSRs are shared on a pro rata basis by New Residential, the Fortress-managed funds and Nationstar, subject to certain limitations. New Residential, through co-investments made by its subsidiaries, has separately purchased the servicer advances and the basic fee component of the related MSRs associated with this portfolio. See Note 6 for information on New Residential’s investment in servicer advances with respect to Pool 17. | |||||||||||||||||||||
Pool 18. In the fourth quarter of 2013, New Residential invested approximately $17.0 million to acquire a 40% interest in the Excess MSRs on a portfolio of residential mortgage loans (“Pool 18”) comprised of loans in private label securitizations. Fortress-managed funds also acquired a 40% interest in the Excess MSRs and the remaining 20% interest in the Excess MSR is owned by Nationstar. Nationstar performs all servicing and advancing functions and it retains the ancillary income, servicing obligations and liabilities associated with the portfolio as the servicer. Under the terms of this investment, to the extent that any loans in the portfolio are refinanced by Nationstar, the resulting Excess MSRs are shared on a pro rata basis by New Residential, the Fortress-managed funds and Nationstar, subject to certain limitations. New Residential, through co-investments made by its subsidiaries, has separately purchased the servicer advances and the basic fee component of the related MSRs associated with this portfolio. See Note 6 for information on New Residential’s investment in servicer advances with respect to Pool 18. | |||||||||||||||||||||
Pool 14, 16 and 19. On May 12, 2014 New Residential invested approximately $33.9 million to acquire a one-third interest in the Excess MSRs on each of three portfolios of GSE residential mortgage loans (”Pool 14," "Pool 16" and "Pool 19”) with an aggregate UPB of $12.8 billion. Fortress managed funds and Nationstar each agreed to acquire a one-third interest in the Excess MSRs. Nationstar as servicer will perform all servicing and advancing functions, and retain the ancillary income, servicing obligations and liabilities as the servicer of the underlying loans in the portfolio. Under the terms of this investment, to the extent that any loans in the portfolio are refinanced by Nationstar, the resulting Excess MSRs are shared on a pro rata basis by New Residential, the Fortress-managed funds and Nationstar, subject to certain limitations. | |||||||||||||||||||||
Pool 20. On May 13, 2014, New Residential invested approximately $2.2 million to acquire a one-third interest in the Excess MSRs on a portfolio of GSE residential mortgage loans (“Pool 20”) with an aggregate UPB of $0.7 billion. Fortress-managed funds and Nationstar each agreed to acquire a one-third interest in the Excess MSRs. Nationstar as servicer will perform all servicing and advancing functions, and retain the ancillary income, servicing obligations and liabilities as the servicer of the underlying loans in the portfolio. Under the terms of this investment, to the extent that any loans in the portfolio are refinanced by Nationstar, the resulting Excess MSRs are shared on a pro rata basis by New Residential, the Fortress-managed funds and Nationstar, subject to certain limitations. | |||||||||||||||||||||
As described above, New Residential has entered into a “Recapture Agreement” in each of the Excess MSR investments to date, including those Excess MSR investments made through investments in joint ventures (Note 5). Under the Recapture Agreements, New Residential is generally entitled to a pro rata interest in the Excess MSRs on any initial or subsequent refinancing by Nationstar of a loan in the original portfolio. These Recapture Agreements do not apply to New Residential’s investments in servicer advances (Note 6). | |||||||||||||||||||||
New Residential elected to record its investments in Excess MSRs at fair value pursuant to the fair value option for financial instruments in order to provide users of the financial statements with better information regarding the effects of prepayment risk and other market factors on the Excess MSRs. | |||||||||||||||||||||
The following is a summary of New Residential’s direct investments in Excess MSRs: | |||||||||||||||||||||
June 30, 2014 | Six Months Ended June 30, 2014 | ||||||||||||||||||||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | Interest in Excess MSR | Amortized Cost Basis(A) | Carrying Value(B) | Weighted Average Life (Years)(C) | Changes in Fair Value Recorded in Other Income(D) | ||||||||||||||||
MSR Pool 1 | $ | 6,431,132 | 65 | % | $ | 24,518 | $ | 34,313 | 5.3 | $ | (161 | ) | |||||||||
MSR Pool 1 - Recapture | — | 65 | % | 108 | 6,102 | 12 | 283 | ||||||||||||||
Agreement | |||||||||||||||||||||
MSR Pool 2 | 7,461,126 | 65 | % | 28,157 | 32,951 | 5.5 | (222 | ) | |||||||||||||
MSR Pool 2 - Recapture | — | 65 | % | 327 | 6,089 | 12.6 | 427 | ||||||||||||||
Agreement | |||||||||||||||||||||
MSR Pool 3 | 7,369,718 | 65 | % | 23,233 | 31,000 | 5.1 | (497 | ) | |||||||||||||
MSR Pool 3 - Recapture | — | 65 | % | 1,877 | 6,226 | 12.1 | 440 | ||||||||||||||
Agreement | |||||||||||||||||||||
MSR Pool 4 | 4,803,347 | 65 | % | 9,399 | 13,852 | 4.8 | 505 | ||||||||||||||
MSR Pool 4 - Recapture | — | 65 | % | 2,020 | 3,860 | 12.1 | 36 | ||||||||||||||
Agreement | |||||||||||||||||||||
MSR Pool 5(E) | 34,537,052 | 80 | % | 110,258 | 136,962 | 5.4 | 3,613 | ||||||||||||||
MSR Pool 5 - Recapture | — | 80 | % | 8,913 | 6,111 | 13 | 818 | ||||||||||||||
Agreement | |||||||||||||||||||||
MSR Pool 11 | 437,676 | 66.7 | % | 1,996 | 2,356 | 6.5 | 371 | ||||||||||||||
MSR Pool 11 - | — | 66.7 | % | 254 | 293 | 13.9 | 57 | ||||||||||||||
Recapture Agreement | |||||||||||||||||||||
MSR Pool 12(E) | 4,814,648 | 40 | % | 14,990 | 17,574 | 4.8 | 2,525 | ||||||||||||||
MSR Pool 12 - | — | 40 | % | 462 | 236 | 12.7 | 6 | ||||||||||||||
Recapture Agreement | |||||||||||||||||||||
MSR Pool 14 | 952,767 | 33.3 | % | 2,252 | 2,470 | 5.3 | 218 | ||||||||||||||
MSR Pool 14 - | — | 33.3 | % | 140 | 170 | 12.9 | 30 | ||||||||||||||
Recapture Agreement | |||||||||||||||||||||
MSR Pool 16 | 1,412,598 | 33.3 | % | 2,177 | 2,211 | 5.5 | 33 | ||||||||||||||
MSR Pool 16 - | — | 33.3 | % | 662 | 767 | 11.1 | 106 | ||||||||||||||
Recapture Agreement | |||||||||||||||||||||
MSR Pool 17(E) | 7,953,370 | 33.3 | % | 18,481 | 18,876 | 5.2 | 395 | ||||||||||||||
MSR Pool 17 - | — | 33.3 | % | 1,114 | 644 | 12.8 | (470 | ) | |||||||||||||
Recapture Agreement | |||||||||||||||||||||
MSR Pool 18(E) | 8,041,279 | 40 | % | 14,395 | 15,743 | 4.6 | 1,345 | ||||||||||||||
MSR Pool 18 - | — | 40 | % | 1,111 | 818 | 12.4 | 199 | ||||||||||||||
Recapture Agreement | |||||||||||||||||||||
MSR Pool 19 | 10,249,845 | 33.3 | % | 26,822 | 28,407 | 6.2 | 1,586 | ||||||||||||||
MSR Pool 19 - | — | 33.3 | % | 1,703 | 1,941 | 13.7 | 238 | ||||||||||||||
Recapture Agreement | |||||||||||||||||||||
MSR Pool 20 | 701,701 | 33.3 | % | 2,030 | 2,206 | 5.4 | 177 | ||||||||||||||
MSR Pool 20 - | — | 33.3 | % | 193 | 238 | 12 | 46 | ||||||||||||||
Recapture Agreement | |||||||||||||||||||||
$ | 95,166,259 | $ | 297,592 | $ | 372,416 | 5.8 | $ | 12,104 | |||||||||||||
(A) | The amortized cost basis of the Recapture Agreements is determined based on the relative fair values of the Recapture Agreements and related Excess MSRs at the time they were acquired. | ||||||||||||||||||||
(B) | Carrying Value represents the fair value of the pools or Recapture Agreements, as applicable. | ||||||||||||||||||||
(C) | Weighted Average Life represents the weighted average expected timing of the receipt of expected cash flows for this investment. | ||||||||||||||||||||
(D) | The portion of the change in fair value of the Recapture Agreements relating to loans recaptured to date is reflected in the respective pool. | ||||||||||||||||||||
(E) | Pool in which New Residential also invested in related servicer advances, including the basic fee component of the related MSR as of June 30, 2014 (Note 6). | ||||||||||||||||||||
In the second quarter of 2014, a weighted average discount rate of 12.0% was used to value New Residential's investments in Excess MSRs (directly and through equity method investees). | |||||||||||||||||||||
The table below summarizes the geographic distribution of the underlying residential mortgage loans of the direct investments in Excess MSRs: | |||||||||||||||||||||
Percentage of Total Outstanding Unpaid Principal Amount as of | |||||||||||||||||||||
State Concentration | 30-Jun-14 | 31-Dec-13 | |||||||||||||||||||
California | 30 | % | 31.5 | % | |||||||||||||||||
Florida | 8.5 | % | 9.8 | % | |||||||||||||||||
New York | 4.4 | % | 4.9 | % | |||||||||||||||||
Maryland | 4.1 | % | 3.5 | % | |||||||||||||||||
Washington | 3.9 | % | 3.9 | % | |||||||||||||||||
Texas | 3.8 | % | 4 | % | |||||||||||||||||
Virginia | 3.5 | % | 3.1 | % | |||||||||||||||||
Arizona | 3.4 | % | 3.5 | % | |||||||||||||||||
New Jersey | 3.3 | % | 3.3 | % | |||||||||||||||||
Illinois | 2.8 | % | 2.7 | % | |||||||||||||||||
Other U.S. | 32.3 | % | 29.8 | % | |||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||
Geographic concentrations of investments expose New Residential to the risk of economic downturns within the relevant states. Any such downturn in a state where New Residential holds significant investments could affect the underlying borrower’s ability to make mortgage payments and therefore could have a meaningful, negative impact on the Excess MSRs. |
INVESTMENTS_IN_EXCESS_MORTGAGE1
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||||||||
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES | ' | |||||||||||||||||||
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES | ||||||||||||||||||||
New Residential entered into investments in joint ventures (“Excess MSR joint ventures”) jointly controlled by New Residential and Fortress-managed funds investing in Excess MSRs. New Residential elected to record these investments at fair value pursuant to the fair value option for financial instruments to provide users of the financial statements with better information regarding the effects of prepayment risk and other market factors. | ||||||||||||||||||||
Pool 6. On January 4, 2013, New Residential, through a joint venture, co-invested in Excess MSRs on a portfolio of Government National Mortgage Association (“Ginnie Mae”) residential mortgage loans (“Pool 6”). Nationstar acquired the related servicing rights from Bank of America in November 2012. New Residential contributed approximately $28.9 million for a 50% interest in a joint venture which acquired an approximately 67% interest in the Excess MSRs on this portfolio. The remaining interests in the joint venture are owned by a Fortress-managed fund and the remaining interest of approximately 33% in the Excess MSRs is owned by Nationstar. Nationstar performs all servicing and advancing functions, and it retains the ancillary income, servicing obligations and liabilities associated with this portfolio as the servicer. Under the terms of this investment, to the extent that any loans in the portfolio are refinanced by Nationstar, the resulting Excess MSRs are shared on a pro rata basis by the joint venture and Nationstar, subject to certain limitations. | ||||||||||||||||||||
Pools 7, 8, 9, 10. On January 6, 2013, New Residential, through joint ventures, agreed to co-invest in Excess MSRs on a portfolio of four pools of residential mortgage loans Nationstar acquired from Bank of America. At the time of acquisition, approximately 53% of the loans in this portfolio were in private label securitizations (“Pool 10”) and the remainder were owned, insured or guaranteed by Fannie Mae (“Pool 7”), Freddie Mac (“Pool 8”) or Ginnie Mae (“Pool 9”). New Residential committed to invest approximately $340 million for a 50% interest in joint ventures which were expected to acquire an approximately 67% interest in the Excess MSRs on these portfolios. The remaining interests in the joint ventures are owned by Fortress-managed funds and the remaining interest of approximately 33% in the Excess MSRs is owned by Nationstar. In September 2013, New Residential and a Fortress-managed fund each invested an additional $13.9 million into the joint venture invested in Pool 10 to acquire an additional 10% in the Excess MSRs held by the joint venture. Nationstar performs all servicing and advancing functions, and it retains the ancillary income, servicing obligations and liabilities associated with this portfolio as the servicer. Under the terms of this investment, to the extent that any loans in the portfolio are refinanced by Nationstar, the resulting Excess MSRs are shared on a pro rata basis by the joint ventures and Nationstar, subject to certain limitations. New Residential, through co-investments made by its subsidiaries, has separately purchased the servicer advances and the basic fee component of the related MSRs associated with Pool 10. See Note 6 for information on New Residential’s investment in servicer advances with respect to Pool 10. | ||||||||||||||||||||
Pool 11. On May 20, 2013, New Residential acquired, through a joint venture, an interest in Excess MSRs from Nationstar on a portfolio of Freddie Mac residential mortgage loans (“Pool 11”). New Residential has invested approximately $37.8 million for a 50% interest in a joint venture which acquired an approximately 67% interest in the Excess MSRs on this portfolio. The remaining interests in the joint venture are owned by a Fortress-managed fund and the remaining interest of approximately 33% in the Excess MSR is owned by Nationstar. Nationstar performs all servicing and advancing functions, and it retains the ancillary income, servicing obligations and liabilities associated with this portfolio as the servicer. Under the terms of this investment, to the extent that any loans in the portfolio are refinanced by Nationstar, the resulting Excess MSRs are included in the portfolio, subject to certain limitations. See Note 4 for information on New Residential’s other agreements with respect to Pool 11. | ||||||||||||||||||||
The following tables summarize the investments in Excess MSR joint ventures, accounted for as equity method investees held by New Residential: | ||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||
Excess MSR assets | $ | 655,766 | $ | 703,681 | ||||||||||||||||
Other assets | 8,451 | 5,534 | ||||||||||||||||||
Debt | — | — | ||||||||||||||||||
Other liabilities | (3,777 | ) | (3,683 | ) | ||||||||||||||||
Equity | $ | 660,440 | $ | 705,532 | ||||||||||||||||
New Residential's investment | $ | 330,220 | $ | 352,766 | ||||||||||||||||
New Residential's ownership | 50 | % | 50 | % | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Interest income | $ | 17,292 | $ | 8,140 | $ | 35,785 | $ | 13,756 | ||||||||||||
Other income | 8,194 | 34,528 | 2,489 | 31,374 | ||||||||||||||||
Expenses | (1 | ) | (2,414 | ) | (41 | ) | (2,938 | ) | ||||||||||||
Net income | $ | 25,485 | $ | 40,254 | $ | 38,233 | $ | 42,192 | ||||||||||||
The following is a summary of New Residential’s Excess MSR investments made through equity method investees: | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
Unpaid Principal Balance | Investee Interest in Excess MSR | New Residential Interest in Investees | Amortized Cost Basis(A) | Carrying Value(B) | Weighted Average Life (Years)(C) | |||||||||||||||
MSR Pool 6 | $ | 9,050,743 | 66.7 | % | 50 | % | $ | 36,286 | $ | 45,089 | 5.1 | |||||||||
MSR Pool 6 - Recapture | — | 66.7 | % | 50 | % | 5,951 | 8,551 | 12.2 | ||||||||||||
Agreement | ||||||||||||||||||||
MSR Pool 7 | 29,547,830 | 66.7 | % | 50 | % | 94,036 | 95,882 | 5.2 | ||||||||||||
MSR Pool 7 - Recapture | — | 66.7 | % | 50 | % | 12,209 | 24,136 | 12.4 | ||||||||||||
Agreement | ||||||||||||||||||||
MSR Pool 8 | 13,043,774 | 66.7 | % | 50 | % | 52,744 | 50,716 | 5.2 | ||||||||||||
MSR Pool 8 - Recapture | — | 66.7 | % | 50 | % | 4,707 | 12,630 | 12.1 | ||||||||||||
Agreement | ||||||||||||||||||||
MSR Pool 9 | 27,924,457 | 66.7 | % | 50 | % | 97,755 | 122,440 | 4.9 | ||||||||||||
MSR Pool 9 - Recapture | — | 66.7 | % | 50 | % | 29,343 | 30,134 | 12.1 | ||||||||||||
Agreement | ||||||||||||||||||||
MSR Pool 10(D) | 63,763,048 | 66.7-77.0% | 50 | % | 189,488 | 190,143 | 5.1 | |||||||||||||
MSR Pool 10 - Recapture | — | 66.7-77.0% | 50 | % | 13,038 | 10,546 | 12.6 | |||||||||||||
Agreement | ||||||||||||||||||||
MSR Pool 11 | 16,491,872 | 66.7 | % | 50 | % | 41,115 | 55,440 | 5.6 | ||||||||||||
MSR Pool 11 - Recapture | — | 66.7 | % | 50 | % | 22,640 | 10,059 | 13.1 | ||||||||||||
Agreement | ||||||||||||||||||||
$ | 159,821,724 | $ | 599,312 | $ | 655,766 | 6.2 | ||||||||||||||
(A) | Represents the amortized cost basis of the equity method investees in which New Residential holds a 50% interest. The amortized cost basis of the Recapture Agreements is determined based on the relative fair values of the Recapture Agreements and related Excess MSRs at the time they were acquired. | |||||||||||||||||||
(B) | Represents the carrying value of the Excess MSRs held in equity method investees, in which New Residential holds a 50% interest. Carrying value represents the fair value of the pools or Recapture Agreements, as applicable. | |||||||||||||||||||
(C) | The weighted average life represents the weighted average expected timing of the receipt of cash flows of each investment. | |||||||||||||||||||
(D) | Pool in which New Residential also invested in related servicer advances, including the basic fee component of the related MSR as of June 30, 2014 (Note 6). | |||||||||||||||||||
In the second quarter of 2014, a weighted average discount rate of 12.0% was used to value New Residential's investments in Excess MSRs (directly and through equity method investees). | ||||||||||||||||||||
The table below summarizes the geographic distribution of the underlying residential mortgage loans of the Excess MSR investments made through equity method investees: | ||||||||||||||||||||
Percentage of Total Outstanding Unpaid Principal Amount as of | ||||||||||||||||||||
State Concentration | 30-Jun-14 | 31-Dec-13 | ||||||||||||||||||
California | 23.5 | % | 23.5 | % | ||||||||||||||||
Florida | 9.1 | % | 9.2 | % | ||||||||||||||||
New York | 5.5 | % | 5.3 | % | ||||||||||||||||
Texas | 4.9 | % | 4.9 | % | ||||||||||||||||
Georgia | 4 | % | 4 | % | ||||||||||||||||
New Jersey | 3.8 | % | 3.7 | % | ||||||||||||||||
Illinois | 3.5 | % | 3.5 | % | ||||||||||||||||
Maryland | 3.2 | % | 3.1 | % | ||||||||||||||||
Virginia | 3.2 | % | 3.1 | % | ||||||||||||||||
Washington | 2.8 | % | 2.8 | % | ||||||||||||||||
Other U.S. | 36.5 | % | 36.9 | % | ||||||||||||||||
100 | % | 100 | % | |||||||||||||||||
Geographic concentrations of investments expose New Residential to the risk of economic downturns within the relevant states. Any such downturn in a state where New Residential holds significant investments could affect the underlying borrower’s ability to make mortgage payments and therefore could have a meaningful, negative impact on the Excess MSRs. |
INVESTMENTS_IN_SERVICER_ADVANC
INVESTMENTS IN SERVICER ADVANCES | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | ' | |||||||||||||||||||||||||||
INVESTMENTS IN SERVICER ADVANCES | ' | |||||||||||||||||||||||||||
INVESTMENTS IN SERVICER ADVANCES | ||||||||||||||||||||||||||||
On December 17, 2013, New Residential and third-party co-investors, through a joint venture entity (Advance Purchaser LLC, the “Buyer”) consolidated by New Residential, agreed to purchase $3.2 billion of outstanding servicer advances on a portfolio of loans, which is a subset of the same portfolio of loans in which New Residential invests in a portion of the Excess MSR (Pools 10, 17 and 18) (Notes 4 and 5), including the basic fee component of the related MSRs. During the six months ended June 30, 2014, the Buyer also agreed to purchase outstanding servicer advances on a portfolio of loans underlying Pools 5 and 12. As of June 30, 2014, New Residential and third-party co-investors had settled $3.6 billion of servicer advances, net of recoveries, financed with $3.3 billion of notes payables outstanding (Note 11). A taxable wholly owned subsidiary of New Residential is the managing member of the Buyer that holds its investments in servicer advances and owned an approximately 44.5% interest in the Buyer as of June 30, 2014. As of June 30, 2014, noncontrolling third-party investors, owning the remaining interest in the Buyer have aggregate capital commitments to the Buyer of $389.6 million and New Residential had funded capital commitments to the Buyer of $312.7 million. The Buyer may call capital up to the commitment amount on unfunded commitments and recall capital to the extent the Buyer makes a distribution to the co-investors, including New Residential. As of June 30, 2014, the third-party co-investors and New Residential have previously funded their commitments however the Buyer may recall $131.3 million and $95.8 million of capital distributed to the third-party co-investors and New Residential, respectively. Neither the third-party co-investors nor New Residential is obligated to fund amounts in excess of their respective capital commitments, regardless of the capital requirements of the Buyer that holds its investment in servicer advances. | ||||||||||||||||||||||||||||
The Buyer has purchased servicer advances from Nationstar, is required to purchase all future servicer advances made with respect to these pools from Nationstar, and receives cash flows from advance recoveries and the basic fee component of the related MSRs, net of compensation paid back to Nationstar in consideration of Nationstar’s servicing activities. The compensation paid to Nationstar as of June 30, 2014 was approximately 9.2% of the basic fee component of the related MSRs plus a performance fee that represents a portion (up to 100%) of the cash flows in excess of those required for the Buyer to obtain a specified return on its equity. | ||||||||||||||||||||||||||||
New Residential elected to record its investments in servicer advances, including the right to the basic fee component of the related MSRs, at fair value pursuant to the fair value option for financial instruments to provide users of the financial statements with better information regarding the effects of market factors. | ||||||||||||||||||||||||||||
The following is a summary of the investments in servicer advances, including the right to the basic fee component of the related MSRs, made by the Buyer, which New Residential consolidates: | ||||||||||||||||||||||||||||
June 30, 2014 | Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||
Amortized Cost Basis | Carrying Value(A) | Weighted Average Discount Rate | Weighted Average Life (Years)(B) | Change in Fair Value Recorded in Other Income | ||||||||||||||||||||||||
Servicer advances | $ | 3,596,228 | $ | 3,679,105 | 5.6 | % | 3.8 | $ | 82,877 | |||||||||||||||||||
(A) | Carrying value represents the fair value of the investments in servicer advances, including the basic fee component of the related MSRs. | |||||||||||||||||||||||||||
(B) | Weighted Average Life represents the weighted average expected timing of the receipt of expected net cash flows for this investment. | |||||||||||||||||||||||||||
The following is additional information regarding the servicer advances, and related financing, of the Buyer, which New Residential consolidates: | ||||||||||||||||||||||||||||
Loan-to-Value | Cost of Funds(B) | |||||||||||||||||||||||||||
UPB of Underlying Residential Mortgage Loans | Outstanding Servicer Advances | Servicer Advances to UPB of Underlying Residential Mortgage Loans | Carrying Value of Notes Payable | Gross | Net(A) | Gross | Net | |||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||
Servicer advances(C) | $ | 102,159,164 | $ | 3,551,464 | 3.5 | % | $ | 3,265,530 | 91.9 | % | 90.8 | % | 3.3 | % | 2.2 | % | ||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Servicer advances(C) | $ | 43,444,216 | $ | 2,661,130 | 6.1 | % | $ | 2,390,778 | 89.8 | % | 88.6 | % | 4 | % | 2.3 | % | ||||||||||||
(A) | Ratio of face amount of borrowings to par amount of servicer advance collateral, net of an interest reserve maintained by the Buyer. | |||||||||||||||||||||||||||
(B) | Annualized measure of the cost associated with borrowings. Gross Cost of Funds primarily includes interest expense and facility fees. Net Cost of Funds excludes facility fees. | |||||||||||||||||||||||||||
(C) | The following types of advances comprise the investments in servicer advances: | |||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Principal and interest advances | $ | 1,282,504 | $ | 1,516,715 | ||||||||||||||||||||||||
Escrow advances (taxes and insurance advances) | 1,597,466 | 934,525 | ||||||||||||||||||||||||||
Foreclosure advances | 671,494 | 209,890 | ||||||||||||||||||||||||||
Total | $ | 3,551,464 | $ | 2,661,130 | ||||||||||||||||||||||||
Interest income recognized by New Residential related to its investments in servicer advances was comprised of the following: | ||||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||
Interest income, gross of amounts attributable to servicer compensation | $ | 153,684 | ||||||||||||||||||||||||||
Amounts attributable to base servicer compensation | (49,306 | ) | ||||||||||||||||||||||||||
Amounts attributable to incentive servicer compensation | (1,555 | ) | ||||||||||||||||||||||||||
Interest income from investments in servicer advances | $ | 102,823 | ||||||||||||||||||||||||||
INVESTMENTS_IN_REAL_ESTATE_SEC
INVESTMENTS IN REAL ESTATE SECURITIES | 6 Months Ended | |||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||||||||
INVESTMENTS IN REAL ESTATE SECURITIES | ' | |||||||||||||||||||||||||||||||||||||
INVESTMENTS IN REAL ESTATE SECURITIES | ||||||||||||||||||||||||||||||||||||||
During the six months ended June 30, 2014, New Residential acquired $1.4 billion face amount of Non-Agency RMBS for approximately $882.0 million and $297.8 million face amount of Agency ARM RMBS for approximately $316.9 million. New Residential sold Non-Agency RMBS with a face amount of approximately $1.9 billion and an amortized cost basis of approximately $1.2 billion for approximately $1.3 billion, recording a gain on sale of approximately $60.3 million. Furthermore, New Residential sold Agency ARM RMBS with a face amount of $306.0 million and an amortized cost basis of approximately $322.9 million for approximately $324.4 million, recording a gain on sale of approximately $1.5 million. | ||||||||||||||||||||||||||||||||||||||
On March 6, 2014, Merrill Lynch, Pierce, Fenner & Smith Incorporated and New Residential entered into an agreement pursuant to which New Residential agreed to purchase approximately $625 million face amount of Non-Agency residential mortgage securities for approximately $553 million. The purchased securities were issued by the American General Mortgage Loan Trust 2009-1 and represent 75% of the mezzanine and subordinate tranches (the "2009-1 Retained Certificates") of a securitization sponsored by Third Street Funding LLC, an affiliate of Springleaf. The securitization, including the 2009-1 Retained Certificates, is collateralized by residential mortgage loans with a face amount of approximately $0.9 billion. On May 30, 2014, New Residential sold the 2009-1 Retained Certificates for approximately $598.5 million and recorded a gain of approximately $39.7 million. At the time of sale, the 2009-1 Retained Certificates had an amortized cost basis of approximately $558.8 million. The purchase and sale of the 2009-1 Retained Certificates is included in the purchases and sales described above. | ||||||||||||||||||||||||||||||||||||||
On May 27, 2014, New Residential exercised its cleanup call option related to sixteen Non-Agency RMBS deals and purchased and retained performing and non-performing residential mortgage loans. New Residential owned $17.4 million face amount in these deals and received par on these securities, which had an amortized cost basis of $12.0 million prior to the repayment. See Note 8 for further details on this transaction. | ||||||||||||||||||||||||||||||||||||||
The following is a summary of New Residential’s real estate securities as of June 30, 2014, all of which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired. | ||||||||||||||||||||||||||||||||||||||
Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Gains | Losses | Carrying Value(A) | Number of Securities | Rating(B) | Coupon | Yield | Life (Years)(C) | Principal Subordination(D) | |||||||||||||||||||||||||||
Agency ARM | $ | 1,159,363 | $ | 1,244,864 | $ | 6,179 | $ | (4,031 | ) | $ | 1,247,012 | 120 | AAA | 3.12 | % | 1.5 | % | 4.7 | N/A | |||||||||||||||||||
RMBS(E)(F) | ||||||||||||||||||||||||||||||||||||||
Non-Agency | 348,232 | 210,051 | 9,186 | (2,346 | ) | 216,891 | 77 | CCC | 1.75 | % | 7.14 | % | 8.5 | 11 | % | |||||||||||||||||||||||
RMBS | ||||||||||||||||||||||||||||||||||||||
Total/Weighted | $ | 1,507,595 | $ | 1,454,915 | $ | 15,365 | $ | (6,377 | ) | $ | 1,463,903 | 197 | AA- | 2.81 | % | 2.8 | % | 5.6 | ||||||||||||||||||||
Average(G) | ||||||||||||||||||||||||||||||||||||||
(A) | Fair value, which is equal to carrying value for all securities. See Note 12 regarding the estimation of fair value. | |||||||||||||||||||||||||||||||||||||
(B) | Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. This excludes the ratings of the collateral underlying six bonds for which New Residential was unable to obtain rating information. For each security rated by multiple rating agencies, the lowest rating is used. New Residential used an implied AAA rating for the Agency ARM RMBS. Ratings provided were determined by third party rating agencies, and represent the most recent credit ratings available as of the reporting date and may not be current. | |||||||||||||||||||||||||||||||||||||
(C) | The weighted average life is based on the timing of expected principal reduction on the assets. | |||||||||||||||||||||||||||||||||||||
(D) | Percentage of the outstanding face amount of securities that is subordinate to New Residential’s investments. | |||||||||||||||||||||||||||||||||||||
(E) | Includes securities issued or guaranteed by U.S. Government agencies such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”). | |||||||||||||||||||||||||||||||||||||
(F) | Amortized cost basis and carrying value include principal receivable of $12.5 million. | |||||||||||||||||||||||||||||||||||||
(G) | The total outstanding face amount was $64.1 million for fixed rate securities and $1.4 billion for floating rate securities. | |||||||||||||||||||||||||||||||||||||
Unrealized losses that are considered other than temporary are recognized currently in earnings. During the six months ended June 30, 2014, New Residential recorded other-than-temporary impairment charges (“OTTI”) of $0.9 million with respect to real estate securities. Any remaining unrealized losses on New Residential’s securities were primarily the result of changes in market factors, rather than issue-specific credit impairment. New Residential performed analyses in relation to such securities, using management’s best estimate of their cash flows, which support its belief that the carrying values of such securities were fully recoverable over their expected holding period. New Residential has no intent to sell, and is not more likely than not to be required to sell, these securities. | ||||||||||||||||||||||||||||||||||||||
The following table summarizes New Residential’s securities in an unrealized loss position as of June 30, 2014. | ||||||||||||||||||||||||||||||||||||||
Amortized Cost Basis | Weighted Average | |||||||||||||||||||||||||||||||||||||
Securities in an Unrealized Loss Position | Outstanding Face Amount | Before Impairment | Other-Than- | After Impairment | Gross Unrealized Losses | Carrying Value | Number of Securities | Rating(B) | Coupon | Yield | Life | |||||||||||||||||||||||||||
Temporary Impairment(A) | (Years) | |||||||||||||||||||||||||||||||||||||
Less than Twelve | $ | 477,511 | $ | 450,308 | $ | (332 | ) | $ | 449,976 | $ | (4,838 | ) | $ | 445,138 | 58 | AA- | 3.15 | % | 2.92 | % | 4.9 | |||||||||||||||||
Months | ||||||||||||||||||||||||||||||||||||||
Twelve or More | 116,021 | 124,285 | (612 | ) | 123,673 | (1,539 | ) | 122,134 | 13 | AA+ | 3.34 | % | 1.51 | % | 3.3 | |||||||||||||||||||||||
Months | ||||||||||||||||||||||||||||||||||||||
Total/Weighted | $ | 593,532 | $ | 574,593 | $ | (944 | ) | $ | 573,649 | $ | (6,377 | ) | $ | 567,272 | 71 | AA | 3.19 | % | 2.65 | % | 4.6 | |||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||
(A) | This amount represents other-than-temporary impairment recorded on securities that are in an unrealized loss position as of June 30, 2014. | |||||||||||||||||||||||||||||||||||||
(B) | The weighted average rating of securities in an unrealized loss position for less than twelve months excludes the rating of five bonds for which New Residential was unable to obtain rating information. | |||||||||||||||||||||||||||||||||||||
New Residential performed an assessment of all of its debt securities that are in an unrealized loss position (an unrealized loss position exists when a security’s amortized cost basis, excluding the effect of OTTI, exceeds its fair value) and determined the following: | ||||||||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Unrealized Losses | ||||||||||||||||||||||||||||||||||||||
Fair Value | Amortized Cost Basis After Impairment | Credit(A) | Non-Credit(B) | |||||||||||||||||||||||||||||||||||
Securities New Residential intends to sell(C) | $ | 155,599 | $ | 155,871 | $ | (1,073 | ) | $ | (272 | ) | ||||||||||||||||||||||||||||
Securities New Residential is more likely than not to be | — | — | — | N/A | ||||||||||||||||||||||||||||||||||
required to sell(D) | ||||||||||||||||||||||||||||||||||||||
Securities New Residential has no intent to sell and is not | ||||||||||||||||||||||||||||||||||||||
more likely than not to be required to sell: | ||||||||||||||||||||||||||||||||||||||
Credit impaired securities | 144,118 | 145,212 | (974 | ) | (1,094 | ) | ||||||||||||||||||||||||||||||||
Non credit impaired securities | 321,508 | 326,519 | — | (5,011 | ) | |||||||||||||||||||||||||||||||||
Total debt securities in an unrealized loss position | $ | 621,225 | $ | 627,602 | $ | (2,047 | ) | $ | (6,377 | ) | ||||||||||||||||||||||||||||
(A) | This amount is required to be recorded as other-than-temporary impairment through earnings. In measuring the portion of credit losses, New Residential’s management estimates the expected cash flow for each of the securities. This evaluation includes a review of the credit status and the performance of the collateral supporting those securities, including the credit of the issuer, key terms of the securities and the effect of local, industry and broader economic trends. Significant inputs in estimating the cash flows include management’s expectations of prepayment speeds, default rates and loss severities. Credit losses are measured as the decline in the present value of the expected future cash flows discounted at the investment’s effective interest rate. | |||||||||||||||||||||||||||||||||||||
(B) | This amount represents unrealized losses on securities that are due to non-credit factors and recorded through other comprehensive income. | |||||||||||||||||||||||||||||||||||||
(C) | A portion of securities New Residential intends to sell have a fair value equal to their amortized cost basis after impairment, and, therefore do not have unrealized losses reflected in other comprehensive income as of June 30, 2014. | |||||||||||||||||||||||||||||||||||||
(D) | New Residential may, at times, be more likely than not to be required to sell certain securities for liquidity purposes. While the amount of the securities to be sold may be an estimate, and the securities to be sold have not yet been identified, New Residential must make its best estimate, which is subject to significant judgment regarding future events, and may differ materially from actual future sales. | |||||||||||||||||||||||||||||||||||||
The following table summarizes the activity related to credit losses on debt securities: | ||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Beginning balance of credit losses on debt securities for which a portion of an OTTI was | $ | 2,071 | ||||||||||||||||||||||||||||||||||||
recognized in other comprehensive income | ||||||||||||||||||||||||||||||||||||||
Increases to credit losses on securities for which an OTTI was previously recognized and a portion | 464 | |||||||||||||||||||||||||||||||||||||
of an OTTI was recognized in other comprehensive income | ||||||||||||||||||||||||||||||||||||||
Additions for credit losses on securities for which an OTTI was not previously recognized | 151 | |||||||||||||||||||||||||||||||||||||
Reductions for securities for which the amount previously recognized in other comprehensive | (1,073 | ) | ||||||||||||||||||||||||||||||||||||
income was recognized in earnings because the entity intends to sell the security or more likely | ||||||||||||||||||||||||||||||||||||||
than not will be required to sell the security before recovery of its amortized cost basis | ||||||||||||||||||||||||||||||||||||||
Reduction for credit losses on securities for which no OTTI was recognized in other | (408 | ) | ||||||||||||||||||||||||||||||||||||
comprehensive income at the current measurement date | ||||||||||||||||||||||||||||||||||||||
Reduction for securities sold during the period | (231 | ) | ||||||||||||||||||||||||||||||||||||
Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized | $ | 974 | ||||||||||||||||||||||||||||||||||||
in other comprehensive income | ||||||||||||||||||||||||||||||||||||||
The table below summarizes the geographic distribution of the collateral securing New Residential’s Non-Agency RMBS as of June 30, 2014: | ||||||||||||||||||||||||||||||||||||||
Geographic Location | Outstanding Face Amount | Percentage of Total Outstanding | ||||||||||||||||||||||||||||||||||||
Western U.S. | $ | 85,243 | 24.5 | % | ||||||||||||||||||||||||||||||||||
Southeastern U.S. | 73,322 | 21 | % | |||||||||||||||||||||||||||||||||||
Northeastern U.S. | 61,194 | 17.6 | % | |||||||||||||||||||||||||||||||||||
Midwestern U.S. | 58,722 | 16.9 | % | |||||||||||||||||||||||||||||||||||
Southwestern U.S. | 32,368 | 9.3 | % | |||||||||||||||||||||||||||||||||||
Other(A) | 37,383 | 10.7 | % | |||||||||||||||||||||||||||||||||||
$ | 348,232 | 100 | % | |||||||||||||||||||||||||||||||||||
(A) | Represents collateral for which New Residential was unable to obtain geographic information. | |||||||||||||||||||||||||||||||||||||
New Residential evaluates the credit quality of its real estate securities, as of the acquisition date, for evidence of credit quality deterioration. As a result, New Residential identified a population of real estate securities for which it was determined that it was probable that New Residential would be unable to collect all contractually required payments. For securities acquired during the six months ended June 30, 2014, the face amount of these real estate securities was $361.7 million, with total expected cash flows of $339.4 million and a fair value of $258.0 million on the dates that New Residential purchased the respective securities. | ||||||||||||||||||||||||||||||||||||||
The following is the outstanding face amount and carrying value for securities, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments: | ||||||||||||||||||||||||||||||||||||||
Outstanding Face Amount | Carrying Value | |||||||||||||||||||||||||||||||||||||
June 30, 2014 | $ | 186,186 | $ | 144,836 | ||||||||||||||||||||||||||||||||||
December 31, 2013 | $ | 729,895 | $ | 483,680 | ||||||||||||||||||||||||||||||||||
The following is a summary of the changes in accretable yield for these securities: | ||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 143,067 | ||||||||||||||||||||||||||||||||||||
Additions | 81,365 | |||||||||||||||||||||||||||||||||||||
Accretion | (8,175 | ) | ||||||||||||||||||||||||||||||||||||
Reclassifications from non-accretable difference | (778 | ) | ||||||||||||||||||||||||||||||||||||
Disposals | (155,287 | ) | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2014 | $ | 60,192 | ||||||||||||||||||||||||||||||||||||
See Note 18 for recent activities related to New Residential's investments in real estate securities. |
INVESTMENTS_IN_RESIDENTIAL_MOR
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS | 6 Months Ended | |||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||||
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS | ' | |||||||||||||||||||||||||||||
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS | ||||||||||||||||||||||||||||||
During the six months ended June 30, 2014, New Residential acquired several portfolios of performing and non-performing residential mortgage loans as discussed below: | ||||||||||||||||||||||||||||||
• | On April 4, 2014, New Residential purchased a portfolio of non-performing residential mortgage loans out of a securitization trust with a UPB of approximately $17.8 million at a price of approximately $15.5 million. New Residential recognized a loss for the difference between the price paid and fair value of the loans acquired of $11.3 million. | |||||||||||||||||||||||||||||
• | On May 27, 2014, New Residential exercised its cleanup call option related to sixteen Non-Agency RMBS deals and purchased performing and non-performing residential mortgage loans with a UPB of approximately $283.6 million at a price of approximately $288.5 million. New Residential securitized approximately $233.8 million in UPB of performing loans, which was recorded as a sale for accounting purposes, and recognized a net gain on settlement of investments of approximately $2.6 million. New Residential retained performing and non-performing loans with a UPB of approximately $48.4 million at a price of $40.1 million. Additionally, New Residential acquired $1.3 million of real estate owned. | |||||||||||||||||||||||||||||
• | On May 28, 2014, New Residential purchased a portfolio of non-performing residential mortgage loans with a UPB of approximately $500.3 million at a price of approximately $373.1 million. | |||||||||||||||||||||||||||||
• | On June 24, 2014, New Residential purchased a portfolio of performing and non-performing residential mortgage loans with a UPB of approximately $82.3 million at a price of approximately $58.9 million. Additionally, New Residential acquired $2.1 million of real estate owned. | |||||||||||||||||||||||||||||
Loans are accounted for based on management’s strategy for the loan, and on whether the loan was credit-impaired at the date of acquisition. New Residential accounts for loans based on the following categories: | ||||||||||||||||||||||||||||||
• | Reverse Mortgage Loans | |||||||||||||||||||||||||||||
• | Performing Loans | |||||||||||||||||||||||||||||
• | Purchased Credit Impaired (“PCI”) Loans | |||||||||||||||||||||||||||||
• | Real Estate Owned ("REO") | |||||||||||||||||||||||||||||
• | Linked Transactions (treated as derivatives, Note 10) | |||||||||||||||||||||||||||||
The following table presents certain information regarding New Residential's residential mortgage loans outstanding by loan type, excluding REO and linked transactions, at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||
Outstanding Face Amount | Carrying | Loan | Weighted Average Yield | Weighted Average Life (Years)(A) | Floating Rate Loans as a % of Face Amount | Loan to Value Ratio ("LTV")(B) | Weighted Avg. Delinquency(C) | December 31, 2013 Carrying Value | ||||||||||||||||||||||
Value | Count | |||||||||||||||||||||||||||||
Loan Type | ||||||||||||||||||||||||||||||
Reverse Mortgage Loans(D) | $ | 53,085 | $ | 30,794 | 288 | 10.3 | % | 3.7 | 20.8 | % | 183 | % | 80.9 | % | $ | 33,539 | ||||||||||||||
Performing Loans(E)(G) | 72,056 | 61,008 | 357 | 6.4 | % | 3.9 | 10.9 | % | 107 | % | 3.5 | % | — | |||||||||||||||||
Purchased Credit Impaired ("PCI") Loans(F) | 576,777 | 425,622 | 1,880 | 7.4 | % | 2.2 | 49.8 | % | 111 | % | 93.7 | % | — | |||||||||||||||||
Total Residential Mortgage Loans | $ | 701,918 | $ | 517,424 | 2,525 | 7.5 | % | 2.5 | 43.5 | % | 115 | % | 82.3 | % | $ | 33,539 | ||||||||||||||
(A) | The weighted average life is based on the expected timing of the receipt of cash flows. | |||||||||||||||||||||||||||||
(B) | LTV refers to the ratio comparing the loan’s unpaid principal balance to the value of the collateral property. | |||||||||||||||||||||||||||||
(C) | Represents the percentage of underlying loans that are 30+ days delinquent, none of which are on non-accrual status. New Residential records REO received in satisfaction of unpaid loans within Other Assets in its Condensed Consolidated Balance Sheet (Note 2). | |||||||||||||||||||||||||||||
(D) | Represents a 70% interest New Residential holds in reverse mortgage loans. The average loan balance outstanding based on total UPB is $0.3 million. 79% of these loans have reached a termination event. As a result, the borrower can no longer make draws on these loans. Each loan matures upon the occurrence of a termination event. | |||||||||||||||||||||||||||||
(E) | Represents loans that are current or less than 30 days past due at acquisition. | |||||||||||||||||||||||||||||
(F) | Represents loans that are 30 days or more past due at acquisition. | |||||||||||||||||||||||||||||
(G) | Performing loan carrying value includes accrued interest receivable. | |||||||||||||||||||||||||||||
New Residential generally considers the delinquency status, loan-to-value ratios, and geographic area of residential mortgage loans as its credit quality indicators. Delinquency status is a primary credit quality indicator as loans that are more than 30 days past due provide an early warning of borrowers who may be experiencing financial difficulties. For residential mortgage loans, the current LTV ratio is an indicator of the potential loss severity in the event of default. Finally, the geographic distribution of the loan collateral also provides insight as to the credit quality of the portfolio, as factors such as the regional economy, home price changes and specific events will affect credit quality. | ||||||||||||||||||||||||||||||
The table below summarizes the geographic distribution of the underlying residential mortgage loans as of June 30, 2014: | ||||||||||||||||||||||||||||||
Percentage of Total Outstanding Unpaid Principal Amount as of | ||||||||||||||||||||||||||||||
State Concentration | 30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
California | 24.8 | % | 5.7 | % | ||||||||||||||||||||||||||
New York | 18.2 | % | 22 | % | ||||||||||||||||||||||||||
New Jersey | 8.5 | % | 6.9 | % | ||||||||||||||||||||||||||
Illinois | 4.5 | % | 7.7 | % | ||||||||||||||||||||||||||
Florida | 4.3 | % | 21.2 | % | ||||||||||||||||||||||||||
Maryland | 4 | % | 2.8 | % | ||||||||||||||||||||||||||
Connecticut | 3.7 | % | 3.9 | % | ||||||||||||||||||||||||||
Massachusetts | 3.5 | % | 4.1 | % | ||||||||||||||||||||||||||
Washington | 3.1 | % | 3.9 | % | ||||||||||||||||||||||||||
Pennsylvania | 2.5 | % | 0.9 | % | ||||||||||||||||||||||||||
Other U.S. | 22.9 | % | 20.9 | % | ||||||||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||||||||
Reverse Mortgage Loans | ||||||||||||||||||||||||||||||
On February 27, 2013, New Residential, through a subsidiary, entered into an agreement to co-invest in reverse mortgage loans with a UPB of approximately $83.1 million as of December 31, 2012. New Residential invested approximately $35.1 million to acquire a 70% interest in the reverse mortgage loans. Nationstar has co-invested on a pari passu basis with New Residential in 30% of the reverse mortgage loans and is the servicer of the loans performing all servicing and advancing functions and retaining the ancillary income, servicing obligations and liabilities as the servicer. | ||||||||||||||||||||||||||||||
Performing Loans | ||||||||||||||||||||||||||||||
Performing loans are carried at the aggregate unpaid principal balance adjusted for any unamortized premium or discount, deferred fees or expenses, allowance for loan losses, charge-offs and write-downs for impaired loans. Interest income on performing loans is accrued and recognized as interest income at the contractual rate of interest. | ||||||||||||||||||||||||||||||
A loan is determined to be past due when a monthly payment is due and unpaid for 30 days or more. Loans, other than PCI loans, are placed on nonaccrual status and considered non-performing when full payment of principal and interest is in doubt, which generally occurs when principal or interest is 120 days or more past due unless the loan is both well secured and in the process of collection. A loan may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loan. | ||||||||||||||||||||||||||||||
Activities related to the carrying value of reverse mortgage loans and performing loans were as follows: | ||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||
Reverse Mortgage Loans | Performing Loans | |||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 33,539 | $ | — | ||||||||||||||||||||||||||
Purchases/additional fundings | — | 60,904 | ||||||||||||||||||||||||||||
Proceeds from repayments | (1,307 | ) | — | |||||||||||||||||||||||||||
Accretion of loan discount and other amortization | 1,364 | — | ||||||||||||||||||||||||||||
Transfer of loans to REO | (2,375 | ) | — | |||||||||||||||||||||||||||
Valuation provision on loans | (427 | ) | N/A | |||||||||||||||||||||||||||
Allowance for loan losses | N/A | (30 | ) | |||||||||||||||||||||||||||
Balance at June 30, 2014 | $ | 30,794 | $ | 60,874 | ||||||||||||||||||||||||||
Impairment on loans, other than PCI loans, is indicated when it is deemed probable that New Residential will be unable to collect all amounts due according to the contractual terms of the loan and results in New Residential establishing a valuation provision or an allowance for loan losses. | ||||||||||||||||||||||||||||||
Activities related to the valuation provision on reverse mortgage loans and allowance for loan losses on performing loans were as follows: | ||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||
Reverse Mortgage Loans | Performing Loans | |||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 461 | $ | — | ||||||||||||||||||||||||||
Charge-offs(A) | — | — | ||||||||||||||||||||||||||||
Valuation provision on loans | 427 | N/A | ||||||||||||||||||||||||||||
Allowance for loan losses(B) | N/A | 30 | ||||||||||||||||||||||||||||
Balance at June 30, 2014 | $ | 888 | $ | 30 | ||||||||||||||||||||||||||
(A) | Loans, other than PCI loans, are generally charged off or charged down to the net realizable value of the collateral (i.e., fair value less costs to sell), with an offset to the allowance for loan losses, when available information confirms that loans are uncollectible. | |||||||||||||||||||||||||||||
(B) | Based on an analysis of collective borrower performance, credit ratings of borrowers, loan-to-value ratios, estimated value of the underlying collateral, key terms of the loans and historical and anticipated trends in defaults and loss severities at a pool level. | |||||||||||||||||||||||||||||
Purchased Credit Impaired Loans | ||||||||||||||||||||||||||||||
New Residential determined at acquisition that the PCI loans acquired would be aggregated into pools based on common risk characteristics (FICO score, delinquency status, collateral type, loan-to-value ratio) and aggregated a total of six pools. Loans aggregated into pools are accounted for as if each pool were a single loan with a single composite interest rate and an aggregate expectation of cash flows. | ||||||||||||||||||||||||||||||
The following is the contractually required payments receivable, cash flows expected to be collected, and fair value at acquisition date for loans acquired during the six months ended June 30, 2014: | ||||||||||||||||||||||||||||||
Contractually Required Payments Receivable | Cash Flows Expected to be Collected | Fair Value | ||||||||||||||||||||||||||||
As of Acquisition Date | $ | 1,084,324 | $ | 521,341 | $ | 422,649 | ||||||||||||||||||||||||
The following is the unpaid principal balance and carrying value for loans, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments: | ||||||||||||||||||||||||||||||
Unpaid Principal Balance | Carrying Value | |||||||||||||||||||||||||||||
June 30, 2014 | $ | 576,777 | $ | 425,622 | ||||||||||||||||||||||||||
December 31, 2013 | $ | — | $ | — | ||||||||||||||||||||||||||
The following is a summary of the changes in accretable yield for these loans: | ||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | — | ||||||||||||||||||||||||||||
Additions | 98,692 | |||||||||||||||||||||||||||||
Accretion | (4,276 | ) | ||||||||||||||||||||||||||||
Reclassifications from non-accretable difference(A) | 1,349 | |||||||||||||||||||||||||||||
Balance at June 30, 2014 | $ | 95,765 | ||||||||||||||||||||||||||||
(A) Represents a probable and significant increase in cash flows previously expected to be collected. | ||||||||||||||||||||||||||||||
Real estate owned (REO) | ||||||||||||||||||||||||||||||
REO assets are those individual properties where New Residential receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession). New Residential generally recognizes REO assets at the completion of the foreclosure process or upon execution of a deed in lieu of foreclosure with the borrower. REO assets are managed for prompt sale and disposition at the best possible economic value. See Note 2 for further details on New Residential’s REO, which is included in Other Assets on the Condensed Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||
Linked Transactions | ||||||||||||||||||||||||||||||
In the first quarter of 2014, New Residential invested in portfolios of non-performing loans and financed the transactions with the same counterparties from which it purchased them. New Residential accounts for the contemporaneous purchase of the investments and the associated financings as linked transactions. Accordingly, New Residential recorded a non-hedge derivative instrument on a net basis, with changes in market value recorded as Other Income in the Condensed Consolidated Statements of Income. For further information on the transactions, see below and Note 10. | ||||||||||||||||||||||||||||||
On January 15, 2014, New Residential purchased a portfolio of non-performing residential mortgage loans with a UPB of approximately $65.6 million at a price of approximately $33.7 million. To finance this purchase, on January 15, 2014, New Residential entered into a $25.3 million repurchase agreement with Credit Suisse ("CS"). The repurchase agreement, which contains customary covenants and event of default provisions and is subject to margin calls, matures on January 15, 2015. This purchase was accounted for as a linked transaction (Note 10). | ||||||||||||||||||||||||||||||
On March 28, 2014, New Residential purchased a portfolio of non-performing mortgage loans with a UPB of approximately $7.0 million at a price of approximately $3.8 million. The investment was financed with a $2.5 million master repurchase agreement with The Royal Bank of Scotland ("RBS"). The repurchase agreement, which contains customary covenants and event of default provisions and is subject to margin calls, matures on November 24, 2014. This acquisition is accounted for as a "linked transaction" (Note 10). | ||||||||||||||||||||||||||||||
During the six months ended June 30, 2014, New Residential received properties in satisfaction of non-performing residential mortgage loans included in the portfolios acquired from CS and RBS accounted for as “linked transactions”. As a result, New Residential has recognized REO assets totaling approximately $25.8 million, as of June 30, 2014. See Note 2 for further details. |
INVESTMENTS_IN_CONSUMER_LOANS_
INVESTMENTS IN CONSUMER LOANS EQUITY METHOD INVESTEES | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Investments In Consumer Loans Equity Method Investees | ' | ||||||||||||||||||
INVESTMENTS IN CONSUMER LOANS EQUITY METHOD INVESTEES | ' | ||||||||||||||||||
INVESTMENTS IN CONSUMER LOANS, EQUITY METHOD INVESTEES | |||||||||||||||||||
On April 1, 2013, New Residential completed, through newly formed limited liability companies (together, the “Consumer Loan Companies”), a co-investment in a portfolio of consumer loans with a UPB of approximately $4.2 billion as of December 31, 2012. The portfolio includes over 400,000 personal unsecured loans and personal homeowner loans originated through subsidiaries of HSBC Finance Corporation. The Consumer Loan Companies acquired the portfolio from HSBC Finance Corporation and its affiliates. New Residential invested approximately $250 million for 30% membership interests in each of the Consumer Loan Companies. Of the remaining 70% of the membership interests, Springleaf acquired 47% and an affiliate of Blackstone Tactical Opportunities Advisors L.L.C. acquired 23%. Springleaf acts as the managing member of the Consumer Loan Companies. The Consumer Loan Companies initially financed $2.2 billion ($1.3 billion outstanding as of June 30, 2014) of the approximately $3.0 billion purchase price with asset-backed notes. In September 2013, the Consumer Loan Companies issued and sold an additional $0.4 billion ($0.3 billion outstanding as of June 30, 2014) of asset-backed notes for 96% of par. These notes are subordinate to the $2.2 billion of debt issued in April 2013. The Consumer Loan Companies were formed on March 19, 2013, for the purpose of making this investment, and commenced operations upon the completion of the investment. After a servicing transition period, Springleaf became the servicer of the loans and provides all servicing and advancing functions for the portfolio. | |||||||||||||||||||
The following tables summarize the investment in the Consumer Loan Companies held by New Residential: | |||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||
Consumer loan assets | $ | 2,302,297 | $ | 2,572,577 | |||||||||||||||
Other assets | 172,969 | 192,830 | |||||||||||||||||
Debt(A) | (1,627,323 | ) | (2,010,433 | ) | |||||||||||||||
Other liabilities | (15,025 | ) | (32,712 | ) | |||||||||||||||
Equity | $ | 832,918 | $ | 722,262 | |||||||||||||||
New Residential's investment | $ | 250,048 | $ | 215,062 | |||||||||||||||
New Residential's ownership | 30 | % | 30 | % | |||||||||||||||
(A) | Represents the Class A asset-backed notes with a face amount of $1.3 billion, an interest rate of 3.75% and a maturity of April 2021 and the Class B asset-backed notes with a face amount of $0.3 billion, an interest rate of 4.0% and a maturity of December 2024. Substantially all of the net cash flow generated by the Consumer Loan Companies was required to be used to pay down the Class A notes. In June 2014, the balance of the outstanding Class A notes was reduced to 50% of the outstanding UPB of the performing consumer loans and the managing member was reimbursed by the Consumer Loan Companies for accumulated expenses. Prospectively, 70% of the net cash flow generated is required to be used to pay down the Class A notes, and the equity holders of the Consumer Loan Companies and holders of the Class B notes will each be entitled to receive 15% of the net cash flow of the Consumer Loan Companies on a periodic basis. | ||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | ||||||||||||||||||
Interest income | $ | 135,629 | $ | 278,444 | |||||||||||||||
Interest expense | (18,106 | ) | (40,301 | ) | |||||||||||||||
Provision for finance receivable losses | (27,663 | ) | (61,819 | ) | |||||||||||||||
Other expenses, net | (19,279 | ) | (39,731 | ) | |||||||||||||||
Change in fair value of debt | 535 | (16,332 | ) | ||||||||||||||||
Net income | $ | 71,116 | $ | 120,261 | |||||||||||||||
New Residential's equity in net income | $ | 21,335 | $ | 37,695 | |||||||||||||||
New Residential's ownership | 30 | % | 30 | % | |||||||||||||||
The following is a summary of New Residential’s consumer loan investments made through equity method investees: | |||||||||||||||||||
June 30, 2014 | |||||||||||||||||||
Unpaid Principal Balance | Interest in Consumer Loan Companies | Carrying Value(A) | Weighted Average Coupon(B) | Weighted Average Yield | Weighted Average Expected Life (Years)(C) | ||||||||||||||
Consumer Loans | $ | 2,924,133 | 30 | % | $ | 2,302,297 | 18.1 | % | 16.8 | % | 3.5 | ||||||||
(A) | Represents the carrying value of the consumer loans held by the Consumer Loan Companies. | ||||||||||||||||||
(B) | Substantially all of the cash flows received on the loans is required to be used to make payments on the notes described above. | ||||||||||||||||||
(C) | Weighted Average Life represents the weighted average expected timing of the receipt of expected cash flows for this investment. | ||||||||||||||||||
New Residential’s investments in consumer loans, equity method investees changed during the six months ended June 30, 2014 as follows: | |||||||||||||||||||
For the Six Months Ended June 30, 2014 | |||||||||||||||||||
Balance at December 31, 2013 | $ | 215,062 | |||||||||||||||||
Contributions to equity method investees | — | ||||||||||||||||||
Distributions of earnings from equity method investees(A) | (2,709 | ) | |||||||||||||||||
Distributions of capital from equity method investees | — | ||||||||||||||||||
Earnings from investments in consumer loan equity method investees | 37,695 | ||||||||||||||||||
Balance at June 30, 2014 | $ | 250,048 | |||||||||||||||||
(A) | In June 2014, the Consumer Loan Companies distributed $2.2 million in cash to, and made $0.6 million in tax withholding payments on behalf of, New Residential. The tax withholding payments were considered a non-cash distribution. |
DERIVATIVES
DERIVATIVES | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||
DERIVATIVES | ' | |||||||||
DERIVATIVES | ||||||||||
As of June 30, 2014, New Residential’s derivative instruments include both economic hedges that were not designated as hedges for accounting purposes as well as non-performing loans accounted for as linked transactions that were not entered into for risk management purposes or for hedging activity. New Residential uses economic hedges to hedge a portion of its interest rate risk exposure. Interest rate risk is sensitive to many factors including governmental monetary and tax policies, domestic and international economic and political considerations and other factors. New Residential’s credit risk with respect to economic hedges and linked transactions is the risk of default on New Residential’s investments that results from a borrower’s or counterparty’s inability or unwillingness to make contractually required payments. | ||||||||||
New Residential entered into three interest rate swap agreements during March and April 2014, where New Residential receives floating rate payments in exchange for fixed rate payments, without exchanging the notional principal amounts. The agreements represented a total notional amount of $500 million with an original maturity of three years and were settled during the second quarter. | ||||||||||
As of June 30, 2014, New Residential held to-be-announced forward contract positions (“TBAs”) of $10.0 million in a short notional amount of Agency RMBS and any amounts or obligations owed by or to New Residential are subject to the right of set-off with the TBA counterparty. New Residential’s net short position in TBAs of $10.0 million notional was entered into as an economic hedge in order to mitigate New Residential’s interest rate risk on certain residential mortgage loans. | ||||||||||
New Residential’s derivatives are recorded at fair value on the Condensed Consolidated Balance Sheets as follows: | ||||||||||
Balance Sheet Location | 30-Jun-14 | 31-Dec-13 | ||||||||
Derivative assets | ||||||||||
Real Estate Securities(A) | Derivative assets | $ | — | $ | 1,452 | |||||
Non-Performing Loans(A) | Derivative assets | 30,736 | 34,474 | |||||||
TBAs | Derivative assets | 256 | — | |||||||
$ | 30,992 | $ | 35,926 | |||||||
(A) | Investments purchased from, and financed by, the selling counterparty that New Residential accounts for as linked transactions and are reflected as derivatives. | |||||||||
The following table summarizes notional amounts related to derivatives: | ||||||||||
June 30, 2014 | December 31, 2013 | |||||||||
Non-Performing Loans(A) | $ | 186,362 | $ | 164,598 | ||||||
Real Estate Securities(B) | — | 10,000 | ||||||||
TBAs, short position(C) | 10,000 | — | ||||||||
(A) | Represents the UPB of the underlying loans of the non-performing loan pools within linked transactions. | |||||||||
(B) | Represents the face amount of the real estate securities within linked transactions. | |||||||||
(C) | Represents the notional amount of Agency RMBS, classified as derivatives. | |||||||||
The following table summarizes gains (losses) recorded in relation to derivatives: | ||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||
Other income | 2014 | 2014 | ||||||||
Non-Performing Loans(A) | $ | (985 | ) | $ | (314 | ) | ||||
Real Estate Securities(A) | — | 26 | ||||||||
TBAs | (132 | ) | 230 | |||||||
U.S.T. Short Positions | (408 | ) | — | |||||||
Interest Rate Swaps | (2,276 | ) | (2,386 | ) | ||||||
(3,801 | ) | (2,444 | ) | |||||||
Gain on settlement of investments | ||||||||||
Real Estate Securities(A) | — | 43 | ||||||||
TBAs | (3,824 | ) | (4,002 | ) | ||||||
U.S.T. Short Positions | 176 | 176 | ||||||||
(3,648 | ) | (3,783 | ) | |||||||
Total gains (losses) | $ | (7,449 | ) | $ | (6,227 | ) | ||||
(A) | Investments purchased from, and financed by, the selling counterparty that New Residential accounts for as linked transactions and are reflected as derivatives. | |||||||||
The following table presents both gross and net information about linked transactions: | ||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||
Non-Performing Loans | ||||||||||
Non-performing loan assets, at fair value(A) | $ | 104,770 | $ | 95,014 | ||||||
Repurchase agreements(B) | (74,034 | ) | (60,540 | ) | ||||||
30,736 | 34,474 | |||||||||
Real Estate Securities | ||||||||||
Real estate securities, at fair value(C) | — | 9,952 | ||||||||
Repurchase agreements(B) | — | (8,500 | ) | |||||||
— | 1,452 | |||||||||
Net assets recognized as linked transactions | $ | 30,736 | $ | 35,926 | ||||||
(A) | Non-performing loans that had a UPB of $186.4 million as of June 30, 2014, which represents the notional amount of the linked transaction and accrued interest. | |||||||||
(B) | Represents carrying amount that approximates fair value. | |||||||||
(C) | Real estate securities that had a current face amount of $10.0 million as of December 31, 2013, which represents the notional amount of the linked transaction. |
DEBT_OBLIGATIONS
DEBT OBLIGATIONS | 6 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
DEBT OBLIGATIONS | ' | |||||||||||||||||||||||||||||||
DEBT OBLIGATIONS | ||||||||||||||||||||||||||||||||
The following table presents certain information regarding New Residential’s debt obligations: | ||||||||||||||||||||||||||||||||
June 30, 2014(A) | ||||||||||||||||||||||||||||||||
Collateral | ||||||||||||||||||||||||||||||||
Debt Obligations/Collateral | Month Issued | Outstanding Face Amount | Carrying Value | Final Stated Maturity | Weighted Average Funding Cost | Weighted Average Life (Years) | Outstanding Face | Amortized Cost Basis | Carrying Value | Weighted Average Life (Years) | ||||||||||||||||||||||
Repurchase Agreements (B) | ||||||||||||||||||||||||||||||||
Agency ARM | Various | $ | 1,182,244 | $ | 1,182,244 | 14-Jul | 0.33 | % | 0.1 | $ | 1,159,363 | $ | 1,232,414 | $ | 1,234,562 | 4.7 | ||||||||||||||||
RMBS (C) | ||||||||||||||||||||||||||||||||
Non-Agency | Various | 149,110 | 149,110 | Jul-14 to Oct-14 | 1.86 | % | 0.1 | 237,191 | 186,567 | 192,413 | 9.7 | |||||||||||||||||||||
RMBS (D) | ||||||||||||||||||||||||||||||||
Residential | Various | 348,033 | 348,033 | Nov-14 to May-16 | 2.9 | % | 1.7 | 648,833 | 486,660 | 486,630 | 2.4 | |||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||
Loans(E) | ||||||||||||||||||||||||||||||||
Consumer | 14-Jan | 125,000 | 125,000 | 15-Jan | 4.16 | % | 0.6 | N/A | N/A | 250,048 | 3.5 | |||||||||||||||||||||
Loans(F) | ||||||||||||||||||||||||||||||||
Real Estate | Various | 10,795 | 10,795 | Nov-14 to Jun-15 | 2.96 | % | 0.5 | N/A | N/A | 27,830 | N/A | |||||||||||||||||||||
Owned(G) | ||||||||||||||||||||||||||||||||
Total Repurchase | 1,815,182 | 1,815,182 | 1.23 | % | 0.4 | |||||||||||||||||||||||||||
Agreements | ||||||||||||||||||||||||||||||||
Notes Payable | ||||||||||||||||||||||||||||||||
Servicer Advances(H) | Various | 3,265,530 | 3,265,530 | Sep-14 to Mar-17 | 3.26 | % | 1.4 | 3,551,464 | 3,596,228 | 3,679,105 | 3.8 | |||||||||||||||||||||
Residential | 13-Dec | 23,915 | 23,915 | 14-Sep | 3.41 | % | 0.2 | 53,085 | 31,682 | 30,794 | 3.7 | |||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||
Loans(I) | ||||||||||||||||||||||||||||||||
Total Notes | 3,289,445 | 3,289,445 | 3.26 | % | 1.4 | |||||||||||||||||||||||||||
Payable | ||||||||||||||||||||||||||||||||
Total/ Weighted | $ | 5,104,627 | $ | 5,104,627 | 2.54 | % | 1.1 | |||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||
(A) | Excludes debt related to linked transactions (Note 10). | |||||||||||||||||||||||||||||||
(B) | These repurchase agreements had approximately $0.1 million of associated accrued interest payable as of June 30, 2014. | |||||||||||||||||||||||||||||||
(C) | The counterparties of these repurchase agreements are Mizuho ($145.1 million), Morgan Stanley ($218.5 million), Daiwa ($296.5 million) and Jefferies ($522.2 million) and were subject to customary margin call provisions. | |||||||||||||||||||||||||||||||
(D) | The counterparties of these repurchase agreements are Barclays ($21.6 million), Credit Suisse ($50.7 million), Royal Bank of Scotland ($33.9 million), Bank of America ($1.9 million), Goldman Sachs ($27.6 million) and UBS ($13.5 million) and were subject to customary margin call provisions. All of the Non-Agency repurchase agreements have LIBOR-based floating interest rates. Includes $48.6 million borrowed under a master repurchase agreement, which bears interest at one-month LIBOR plus 1.75%. | |||||||||||||||||||||||||||||||
(E) | The counterparties on these repurchase agreements are Nomura ($324.5 million), Citibank ($17.1 million) and Royal Bank of Scotland ($6.4 million). All of these repurchase agreements have LIBOR-based floating interest rates. | |||||||||||||||||||||||||||||||
(F) | The repurchase agreement is payable to Credit Suisse and bears interest equal to one-month LIBOR plus 2.0%. | |||||||||||||||||||||||||||||||
(G) | The counterparties of these repurchase agreements are Royal Bank of Scotland ($7.0 million), Credit Suisse ($2.5 million) and Nomura ($1.3 million). All of these repurchase agreements have LIBOR-based floating interest rates. | |||||||||||||||||||||||||||||||
(H) | $1.1 billion face amount of the notes have a fixed rate while the remaining notes bear interest equal to the sum of (i) a floating rate index rate equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 1.3% to 2.5%. | |||||||||||||||||||||||||||||||
(I) | The note is payable to Nationstar and bears interest equal to one-month LIBOR plus 3.25%. | |||||||||||||||||||||||||||||||
Certain of the debt obligations included above are obligations of New Residential’s consolidated subsidiaries, which own the related collateral. In some cases, including the servicer advances, such collateral is not available to other creditors of New Residential. | ||||||||||||||||||||||||||||||||
New Residential has margin exposure on $1.8 billion of repurchase agreements. To the extent that the value of the collateral underlying these repurchase agreements declines, New Residential may be required to post margin, which could significantly impact its liquidity. | ||||||||||||||||||||||||||||||||
As of June 30, 2014, New Residential held TBA positions of $10.0 million in a short notional amount of Agency ARM RMBS and any amounts or obligations owed by or to New Residential are subject to the right of set-off with the TBA counterparty (Note 10). As part of executing these trades, New Residential has entered into agreements with its TBA counterparties that govern the transactions for the TBA purchases or sales made, including margin maintenance, payment and transfer, events of default, settlements, and various other provisions. New Residential has fulfilled all obligations and requirements entered into under these agreements. | ||||||||||||||||||||||||||||||||
On January 8, 2014, New Residential financed all of its ownership interest in each of the Consumer Loan Companies under a $150.0 million master repurchase agreement with Credit Suisse Securities (USA) LLC maturing on June 30, 2014. On June 30, 2014, New Residential extended this agreement to mature on January 30, 2015. Borrowings on this extension bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a spread of 2.00% (reduced from a spread of 4.00%). This facility contains customary covenants, event of default provisions, and is subject to required monthly principal payments. | ||||||||||||||||||||||||||||||||
On January 15, 2014, New Residential entered into a $25.3 million repurchase agreement with Credit Suisse Securities (USA) LLC which matures on January 14, 2015. Borrowings under the agreement bear interest equal to the sum of (i) a floating rate index rate equal to one-month LIBOR and (ii) a margin of 3.00%. The agreement contains customary covenants and event of default provisions, including event of default provisions triggered by a 50% equity decline as of the end of the corresponding period in the prior fiscal year, or a 35% equity decline as of the end of the quarter immediately preceding the most recently completed fiscal quarter and a four-to-one indebtedness to tangible net worth provision. | ||||||||||||||||||||||||||||||||
On March 6, 2014, Merrill Lynch, Pierce, Fenner & Smith Incorporated and New Residential entered into an agreement pursuant to which it agreed to purchase approximately $625 million face amount of Non-Agency residential mortgage securities for approximately $553 million. The purchased securities were issued by the American General Mortgage Loan Trust 2009-1 and represent 75% of the mezzanine and subordinate tranches (the 2009-1 Retained Certificates) of a securitization sponsored by Third Street Funding LLC, an affiliate of Springleaf. The securitization, including the 2009-1 Retained Certificates, is collateralized by residential mortgage loans with a face amount of approximately $0.9 billion. On March 31, 2014, New Residential obtained approximately $415 million in financing from Merrill Lynch, Pierce, Fenner & Smith Incorporated to settle its purchase of the 2009-1 Retained Certificates (Note 7). On May 30, 2014, New Residential sold the 2009-1 Retained Certificates for approximately $598.5 million and recorded a gain of approximately $39.7 million. At the time of sale, the 2009-1 Retained Certificates had an amortized cost basis of approximately $558.8 million. New Residential used a portion of the proceeds from the sale of the 2009-1 Retained Certificates to pay off the outstanding balance of this facility. | ||||||||||||||||||||||||||||||||
In March 2014, the Buyer prepaid all of the notes issued pursuant to one servicer advance facility and a portion of the notes issued pursuant to another servicer advance facility. The notes were prepaid with the proceeds of new notes issued pursuant to an advance receivables trust (the “NRART Master Trust”) that issued (i) variable funding notes (“VFNs”) with borrowing capacity of up to $1.1 billion and (ii) $1.0 billion of term notes (“Term Notes”) to institutional investors. The VFNs generally bear interest at a rate equal to the sum of (i) LIBOR or a cost of funds rate plus (ii) a spread of 1.375% to 2.5% depending on the class of the notes. The expected repayment date of the VFNs is March 2015. The Term Notes generally bear interest at approximately 2.0% and have expected repayment dates in March 2015 and March 2017. The VFNs and the Term Notes are secured by servicer advances, and the financing is nonrecourse to the Buyer, except for customary recourse provisions. | ||||||||||||||||||||||||||||||||
On May 2, 2014, New Residential obtained financing from Morgan Stanley to settle its purchase of $617.5 million of additional servicer advances. Borrowings under the facility bear an interest rate equal to 2.1% and have an expected repayment date in May 2016. This financing is nonrecourse to the Buyer, except for customary recourse provisions. | ||||||||||||||||||||||||||||||||
On May 15, 2014, New Residential obtained financing from Citibank to settle its purchase of $48.4 million of residential loans. Borrowings under this facility bear an interest rate equal to the sum of (i) LIBOR and (ii) 2.75% with a maturity date of May 14, 2015. The facility contains customary covenants, event of default provisions, and is subject to required monthly principal payments. | ||||||||||||||||||||||||||||||||
On May 28, 2014 and May 30, 2014 New Residential obtained financing from Nomura Corporate Funding Americas, LLC to settle its purchase of $478.7 million and $21.6 million of residential mortgage loans, respectively. Borrowings under the agreement bear interest equal to the sum of (i) a floating rate index rate equal to one-month LIBOR and (ii) a margin of 2.75% and have an expected repayment date of May 28, 2016. The agreement contains customary covenants and event of default provisions. | ||||||||||||||||||||||||||||||||
On June 24, 2014, New Residential obtained financing from Nomura to settle its purchase of $85.3 million of residential loans. Borrowings under this facility bear an interest rate equal to the sum of (i) LIBOR and (ii) 2.75% with a maturity date of June 24, 2015. This financing is nonrecourse to the buyer, except for customary recourse provisions | ||||||||||||||||||||||||||||||||
In June 2014, New Residential paid off the outstanding secured corporate loan with Credit Suisse First Boston Mortgage LLC for approximately $69.1 million. | ||||||||||||||||||||||||||||||||
See Note 18 for recent activities related to New Residential's debt obligations. | ||||||||||||||||||||||||||||||||
Maturities | ||||||||||||||||||||||||||||||||
New Residential’s debt obligations as of June 30, 2014 had contractual maturities as follows: | ||||||||||||||||||||||||||||||||
Year | Nonrecourse | Recourse(A) | Total | |||||||||||||||||||||||||||||
July 1 through December 31, 2014 | $ | 1,254,661 | $ | 1,325,641 | $ | 2,580,302 | ||||||||||||||||||||||||||
2015 | 818,146 | 166,034 | 984,180 | |||||||||||||||||||||||||||||
2016 | 1,028,545 | — | 1,028,545 | |||||||||||||||||||||||||||||
2017 | 511,600 | — | 511,600 | |||||||||||||||||||||||||||||
$ | 3,612,952 | $ | 1,491,675 | $ | 5,104,627 | |||||||||||||||||||||||||||
(A) | Excludes recourse debt related to linked transactions (Note 10). | |||||||||||||||||||||||||||||||
Borrowing Capacity | ||||||||||||||||||||||||||||||||
The following table represents New Residential’s borrowing capacity as of June 30, 2014 : | ||||||||||||||||||||||||||||||||
Debt Obligations/ Collateral | Collateral Type | Borrowing Capacity | Balance Outstanding | Available Financing | ||||||||||||||||||||||||||||
Repurchase Agreements | ||||||||||||||||||||||||||||||||
Residential Mortgage Loans(A) | Real Estate Loans | $ | 600,000 | $ | 82,151 | $ | 517,849 | |||||||||||||||||||||||||
Notes Payable | ||||||||||||||||||||||||||||||||
Servicer Advances(B) | Servicer Advances | 5,661,700 | 3,265,530 | 2,396,170 | ||||||||||||||||||||||||||||
$ | 6,261,700 | $ | 3,347,681 | $ | 2,914,019 | |||||||||||||||||||||||||||
(A) | Includes $300.0 million of borrowing capacity and $65.1 million of balance outstanding related to linked transactions (Note 10). | |||||||||||||||||||||||||||||||
(B) | New Residential’s unused borrowing capacity is available if New Residential has additional eligible collateral to pledge and meets other borrowing conditions. New Residential pays a 0.5% fee on the unused borrowing capacity. | |||||||||||||||||||||||||||||||
New Residential was in compliance with all of its debt covenants as of June 30, 2014. |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | |||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||||||||||
The carrying values and fair values of New Residential’s financial assets recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of June 30, 2014 were as follows: | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Principal Balance or Notional Amount | Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Investments in: | ||||||||||||||||||||||||||||||||
Excess mortgage servicing rights, at fair | $ | 95,166,259 | $ | 372,416 | $ | — | $ | — | $ | 372,416 | $ | 372,416 | ||||||||||||||||||||
value(A) | ||||||||||||||||||||||||||||||||
Excess mortgage servicing rights, equity | 159,821,724 | 330,220 | — | — | 330,220 | 330,220 | ||||||||||||||||||||||||||
method investees, at fair value(A) | ||||||||||||||||||||||||||||||||
Servicer advances | 3,551,464 | 3,679,105 | — | — | 3,679,105 | 3,679,105 | ||||||||||||||||||||||||||
Real estate securities, available-for-sale | 1,507,595 | 1,463,903 | — | 1,247,012 | 216,891 | 1,463,903 | ||||||||||||||||||||||||||
Residential mortgage loans, | 701,918 | 517,424 | — | — | 519,990 | 519,990 | ||||||||||||||||||||||||||
held for investment(B) | ||||||||||||||||||||||||||||||||
Non-hedge derivatives(C) | 196,362 | 30,992 | — | 256 | 30,736 | 30,992 | ||||||||||||||||||||||||||
Cash and cash equivalents | 311,126 | 311,126 | 311,126 | — | — | 311,126 | ||||||||||||||||||||||||||
Restricted cash | 37,327 | 37,327 | 37,327 | — | — | 37,327 | ||||||||||||||||||||||||||
$ | 261,293,775 | $ | 6,742,513 | $ | 348,453 | $ | 1,247,268 | $ | 5,149,358 | $ | 6,745,079 | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Repurchase agreements | $ | 1,815,182 | $ | 1,815,182 | $ | — | $ | 1,331,354 | $ | 483,828 | $ | 1,815,182 | ||||||||||||||||||||
Notes payable | 3,289,445 | 3,289,445 | — | 1,285,348 | 2,006,525 | 3,291,873 | ||||||||||||||||||||||||||
$ | 5,104,627 | $ | 5,104,627 | $ | — | $ | 2,616,702 | $ | 2,490,353 | $ | 5,107,055 | |||||||||||||||||||||
(A) | The notional amount represents the total unpaid principal balance of the mortgage loans underlying the Excess MSRs. New Residential does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios. | |||||||||||||||||||||||||||||||
(B) | The notional amount represents the total unpaid principal balance of the mortgage loans for residential mortgage loans, held for investment. | |||||||||||||||||||||||||||||||
(C) | The notional amount for linked transactions consists of the aggregate UPB amount of the loans that comprise the asset portion of the linked transaction. | |||||||||||||||||||||||||||||||
New Residential’s financial assets measured at fair value on a recurring basis using Level 3 inputs changed during the six months ended June 30, 2014 as follows: | ||||||||||||||||||||||||||||||||
Level 3 | ||||||||||||||||||||||||||||||||
Excess MSRs(A) | Excess MSRs in Equity Method Investees(A)(B) | |||||||||||||||||||||||||||||||
Agency | Non-Agency | Agency | Non-Agency | Servicer Advances | Non-Agency RMBS | Linked Transactions | Total | |||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 144,660 | $ | 179,491 | $ | 245,399 | $ | 107,367 | $ | 2,665,551 | $ | 570,425 | $ | 35,926 | $ | 3,948,819 | ||||||||||||||||
Transfers(C) | ||||||||||||||||||||||||||||||||
Transfers from Level 3 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Transfers to Level 3 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Gains (losses) included in net income | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Included in other-than-temporary | — | — | — | — | — | (479 | ) | — | (479 | ) | ||||||||||||||||||||||
impairment (“OTTI”) on securities(D) | ||||||||||||||||||||||||||||||||
Included in change in fair value of | 3,673 | 8,431 | — | — | — | — | — | 12,104 | ||||||||||||||||||||||||
investments in excess mortgage | ||||||||||||||||||||||||||||||||
servicing rights(D) | ||||||||||||||||||||||||||||||||
Included in change in fair value of | — | — | (100 | ) | 1,324 | — | — | — | 1,224 | |||||||||||||||||||||||
investments in excess mortgage | ||||||||||||||||||||||||||||||||
servicing rights, equity method | ||||||||||||||||||||||||||||||||
investees(D) | ||||||||||||||||||||||||||||||||
Included in gain on settlement of | — | — | — | — | — | 60,330 | — | 60,330 | ||||||||||||||||||||||||
investments | ||||||||||||||||||||||||||||||||
Included in other income(D) | — | — | — | — | 82,877 | — | (271 | ) | 82,606 | |||||||||||||||||||||||
Gains (losses) included in other | — | — | — | — | — | 3,174 | — | 3,174 | ||||||||||||||||||||||||
comprehensive income, net of tax(E) | ||||||||||||||||||||||||||||||||
Interest income | 9,491 | 15,298 | 12,622 | 5,271 | 102,823 | 13,812 | — | 159,317 | ||||||||||||||||||||||||
Purchases, sales and repayments | ||||||||||||||||||||||||||||||||
Purchases | 36,157 | 19,132 | — | — | 3,955,602 | 882,033 | 9,758 | 4,902,682 | ||||||||||||||||||||||||
Purchase adjustments | (59 | ) | 1,073 | — | — | — | — | — | 1,014 | |||||||||||||||||||||||
Proceeds from sales | — | — | — | — | — | (1,273,224 | ) | (1,495 | ) | (1,274,719 | ) | |||||||||||||||||||||
Proceeds from repayments | (18,470 | ) | (26,461 | ) | (28,084 | ) | (13,579 | ) | (3,127,748 | ) | (39,180 | ) | (3,508 | ) | (3,257,030 | ) | ||||||||||||||||
Transfers to REO(F) | — | — | — | — | — | — | (9,674 | ) | (9,674 | ) | ||||||||||||||||||||||
Balance at June 30, 2014 | $ | 175,452 | $ | 196,964 | $ | 229,837 | $ | 100,383 | $ | 3,679,105 | $ | 216,891 | $ | 30,736 | $ | 4,629,368 | ||||||||||||||||
(A) | Includes the Recapture Agreement for each respective pool. | |||||||||||||||||||||||||||||||
(B) | Amounts represent New Residential’s portion of the Excess MSRs held by the respective joint ventures in which New Residential has a 50% interest. | |||||||||||||||||||||||||||||||
(C) | Transfers are assumed to occur at the beginning of the respective period. | |||||||||||||||||||||||||||||||
(D) | The gains (losses) recorded in earnings during the period are attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting dates. | |||||||||||||||||||||||||||||||
(E) | These gains (losses) were included in net unrealized gain (loss) on securities in the Condensed Consolidated Statements of Comprehensive Income. | |||||||||||||||||||||||||||||||
(F) | Represents value of residential mortgage loans transferred to REO net of associated repurchase financing agreements. | |||||||||||||||||||||||||||||||
Investments in Excess MSRs Valuation | ||||||||||||||||||||||||||||||||
The following table summarizes certain information regarding the inputs used in valuing the Excess MSRs owned directly and through equity method investees as of June 30, 2014: | ||||||||||||||||||||||||||||||||
Significant Inputs | ||||||||||||||||||||||||||||||||
Held Directly (Note 4) | Prepayment Speed(A) | Delinquency(B) | Recapture Rate(C) | Excess Mortgage Servicing Amount | ||||||||||||||||||||||||||||
(bps)(D) | ||||||||||||||||||||||||||||||||
MSR Pool 1 | 12.3 | % | 8.6 | % | 36.1 | % | 26 | |||||||||||||||||||||||||
MSR Pool 1 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 21 | |||||||||||||||||||||||||
MSR Pool 2 | 12.7 | % | 9.9 | % | 36.2 | % | 22 | |||||||||||||||||||||||||
MSR Pool 2 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 21 | |||||||||||||||||||||||||
MSR Pool 3 | 12.8 | % | 11.2 | % | 35.9 | % | 22 | |||||||||||||||||||||||||
MSR Pool 3 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 21 | |||||||||||||||||||||||||
MSR Pool 4 | 15.3 | % | 13.5 | % | 36 | % | 17 | |||||||||||||||||||||||||
MSR Pool 4 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 21 | |||||||||||||||||||||||||
MSR Pool 5 | 11.4 | % | N/A(E) | 9.7 | % | 13 | ||||||||||||||||||||||||||
MSR Pool 5 - Recapture Agreement | 8 | % | N/A(E) | 35 | % | 21 | ||||||||||||||||||||||||||
MSR Pool 11 - Recapture Agreement | 7.9 | % | 5 | % | 35 | % | 19 | |||||||||||||||||||||||||
MSR Pool 12 | 14 | % | N/A(E) | 9.6 | % | 26 | ||||||||||||||||||||||||||
MSR Pool 12 - Recapture Agreement | 8 | % | N/A(E) | 35 | % | 19 | ||||||||||||||||||||||||||
MSR Pool 14 | 7.8 | % | 3.5 | % | 27.5 | % | 19 | |||||||||||||||||||||||||
MSR Pool 14 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 19 | |||||||||||||||||||||||||
MSR Pool 16 | 16.4 | % | 4.9 | % | 35 | % | 17 | |||||||||||||||||||||||||
MSR Pool 16 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 19 | |||||||||||||||||||||||||
MSR Pool 17 | 11.2 | % | N/A(E) | 11 | % | 19 | ||||||||||||||||||||||||||
MSR Pool 17 - Recapture Agreement | 8 | % | N/A(E) | 35 | % | 19 | ||||||||||||||||||||||||||
MSR Pool 18 | 14.9 | % | N/A(E) | 9.6 | % | 15 | ||||||||||||||||||||||||||
MSR Pool 18 - Recapture Agreement | 8 | % | N/A(E) | 35 | % | 19 | ||||||||||||||||||||||||||
MSR Pool 19 | 8 | % | 2.8 | % | 20 | % | 19 | |||||||||||||||||||||||||
MSR Pool 19 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 19 | |||||||||||||||||||||||||
MSR Pool 20 | 12.7 | % | 4 | % | 33.9 | % | 32 | |||||||||||||||||||||||||
MSR Pool 20 - Recapture Agreement | 8 | % | 5 | % | 34.9 | % | 19 | |||||||||||||||||||||||||
Held through Equity Method Investees (Note 5) | ||||||||||||||||||||||||||||||||
MSR Pool 6 | 14.8 | % | 7.3 | % | 30.7 | % | 25 | |||||||||||||||||||||||||
MSR Pool 6 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 23 | |||||||||||||||||||||||||
MSR Pool 7 | 12.9 | % | 7.7 | % | 35.1 | % | 15 | |||||||||||||||||||||||||
MSR Pool 7 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 19 | |||||||||||||||||||||||||
MSR Pool 8 | 14.2 | % | 7.5 | % | 35.9 | % | 19 | |||||||||||||||||||||||||
MSR Pool 8 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 19 | |||||||||||||||||||||||||
MSR Pool 9 | 15.3 | % | 5 | % | 30.2 | % | 22 | |||||||||||||||||||||||||
MSR Pool 9 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 26 | |||||||||||||||||||||||||
MSR Pool 10 | 11.9 | % | N/A(E) | 9.7 | % | 11 | ||||||||||||||||||||||||||
MSR Pool 10 - Recapture Agreement | 8 | % | N/A(E) | 35 | % | 19 | ||||||||||||||||||||||||||
MSR Pool 11 | 12.8 | % | 9.9 | % | 32.2 | % | 15 | |||||||||||||||||||||||||
MSR Pool 11 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 19 | |||||||||||||||||||||||||
(A) | Projected annualized weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. | |||||||||||||||||||||||||||||||
(B) | Projected percentage of mortgage loans in the pool that will miss their mortgage payments. | |||||||||||||||||||||||||||||||
(C) | Percentage of voluntarily prepaid loans that are expected to be refinanced by Nationstar. | |||||||||||||||||||||||||||||||
(D) | Weighted average total mortgage servicing amount in excess of the basic fee. | |||||||||||||||||||||||||||||||
(E) | The Excess MSR will be paid on the total UPB of the mortgage portfolio (including both performing and delinquent loans until REO). | |||||||||||||||||||||||||||||||
In the second quarter of 2014, a weighted average discount rate of 12.0% was used to value New Residential's investments in Excess MSRs (directly and through equity method investees). | ||||||||||||||||||||||||||||||||
Excess Mortgage Servicing Rights Equity Method Investees Valuation | ||||||||||||||||||||||||||||||||
New Residential’s investments in equity method investees measured at fair value on a recurring basis using Level 3 inputs changed during the six months ended June 30, 2014 as follows: | ||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 352,766 | ||||||||||||||||||||||||||||||
Contributions to equity method investees | — | |||||||||||||||||||||||||||||||
Distributions of earnings from equity method investees | (20,500 | ) | ||||||||||||||||||||||||||||||
Distributions of capital from equity method investees | (21,163 | ) | ||||||||||||||||||||||||||||||
Change in fair value of investments in equity method investees | 19,117 | |||||||||||||||||||||||||||||||
Balance at June 30, 2014 | $ | 330,220 | ||||||||||||||||||||||||||||||
Investments in Servicer Advances Valuation | ||||||||||||||||||||||||||||||||
The following table summarizes certain information regarding the inputs used in valuing the servicer advances: | ||||||||||||||||||||||||||||||||
Significant Inputs | ||||||||||||||||||||||||||||||||
Weighted Average | ||||||||||||||||||||||||||||||||
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | Prepayment Speed | Delinquency | Mortgage Servicing Amount | Discount Rate | ||||||||||||||||||||||||||||
June 30, 2014 | 2.2 | % | 14.6 | % | 16.3 | % | 19.6 | bps | 5.6 | % | ||||||||||||||||||||||
December 31, 2013 | 2.7 | % | 13.3 | % | 20 | % | 21.2 | bps | 5.6 | % | ||||||||||||||||||||||
Real Estate Securities Valuation | ||||||||||||||||||||||||||||||||
As of June 30, 2014, New Residential’s securities valuation methodology and results are further detailed as follows: | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Multiple Quotes(A) | Single Quote(B) | Total | Level | ||||||||||||||||||||||||||
Agency ARM RMBS | $ | 1,159,363 | $ | 1,244,864 | $ | 1,247,012 | $ | — | $ | 1,247,012 | 2 | |||||||||||||||||||||
Non-Agency RMBS | 348,232 | 210,051 | 203,373 | 13,518 | 216,891 | 3 | ||||||||||||||||||||||||||
Total | $ | 1,507,595 | $ | 1,454,915 | $ | 1,450,385 | $ | 13,518 | $ | 1,463,903 | ||||||||||||||||||||||
(A) | Management generally obtained pricing service quotations or broker quotations from two sources, one of which was generally the seller (the party that sold New Residential the security) for Non-Agency RMBS. Management selected one of the quotes received as being most representative of the fair value and did not use an average of the quotes. Even if New Residential receives two or more quotes on a particular security that come from non-selling brokers or pricing services, it does not use an average because management believes using an actual quote more closely represents a transactable price for the security than an average level. Furthermore, in some cases there is a wide disparity between the quotes New Residential receives. Management believes using an average of the quotes in these cases would not represent the fair value of the asset. Based on New Residential’s own fair value analysis, management selects one of the quotes which is believed to more accurately reflect fair value. New Residential never adjusts quotes received. These quotations are generally received via email and contain disclaimers which state that they are “indicative” and not “actionable” — meaning that the party giving the quotation is not bound to actually purchase the security at the quoted price. | |||||||||||||||||||||||||||||||
(B) | Management was unable to obtain quotations from more than one source on these securities. The one source was the seller (the party that sold New Residential the security). | |||||||||||||||||||||||||||||||
Residential Mortgage Loans for Which Fair Value is Only Disclosed | ||||||||||||||||||||||||||||||||
The fair value of New Residential’s residential mortgage loans held-for-investment are estimated based on a discounted cash flow model analysis using internal pricing models and are categorized within Level 3 of the fair value hierarchy. | ||||||||||||||||||||||||||||||||
For reverse mortgage loans, the significant inputs to these models include discount rates and the timing and amount of expected cash flows that management believes market participants would use in determining the fair values on similar pools of reverse mortgage loans. | ||||||||||||||||||||||||||||||||
The following table summarizes the inputs used in valuing reverse mortgage loans as of June 30, 2014: | ||||||||||||||||||||||||||||||||
Significant Inputs | ||||||||||||||||||||||||||||||||
Loan Type | Carrying Value(A) | Fair Value(A) | Valuation Provision/ (Reversal) In Current Year | Discount Rate | Weighted Average Life (Years)(B) | |||||||||||||||||||||||||||
Reverse Mortgage Loans | $ | 30,794 | $ | 30,794 | 427 | 10.3 | % | 3.7 | ||||||||||||||||||||||||
(A) | Represents a 70% interest New Residential holds in the reverse mortgage loans. | |||||||||||||||||||||||||||||||
(B) | The weighted average life is based on the expected timing of the receipt of cash flows. | |||||||||||||||||||||||||||||||
For performing loans, the significant inputs to these models include discount rates and market-based assumptions for prepayment speed and default. | ||||||||||||||||||||||||||||||||
Loan Type | Carrying Value(A) | Fair Value | Discount Rate | Prepayment Rate | Default Rate | |||||||||||||||||||||||||||
Performing Loans | $ | 61,008 | $ | 60,904 | 6.4 | % | 7.7 | % | 1.9 | % | ||||||||||||||||||||||
(A) Includes accrued interest receivable. | ||||||||||||||||||||||||||||||||
For non-performing loans, the significant inputs to these models include discount rates, loss severities, and market-based assumptions regarding the timing and amount of expected cash flows primarily based upon the performance of the loan pool and liquidation attributes. | ||||||||||||||||||||||||||||||||
Loan Type | Carrying Value | Fair Value | Discount Rate | Default Rate | Loss Severity | |||||||||||||||||||||||||||
Non-Performing Loans | $ | 425,622 | $ | 428,292 | 7.4 | % | 97.5 | % | 22.2 | % | ||||||||||||||||||||||
Real Estate Owned (“REO”) is initially recognized at fair value less costs to sell and the carrying value of the acquired property is reviewed on a recurring basis and adjusted, if necessary, to the lower of cost or fair value. The fair value of REO is estimated using a broker’s price opinion discounted based upon New Residential’s experience with actual liquidation values and, therefore, is categorized within Level 3 of the fair value hierarchy. | ||||||||||||||||||||||||||||||||
Derivative Valuation | ||||||||||||||||||||||||||||||||
New Residential financed certain investments with the same counterparty from which it purchased those investments, and accounts for the contemporaneous purchase of the investments and the associated financings as linked transactions (Note 10). The linked transactions are valued on a net basis considering their underlying components, the investment value and the related repurchase financing agreement value, generally determined consistently with the relevant instruments as described in this note. Values of investments in non-performing loans are estimated based on a discounted cash flow analysis using internal pricing models that employ market-based assumptions regarding the timing and amount of expected cash flows primarily based upon the performance of the loan pool and liquidation attributes. The linked transactions, which are categorized as Level 3, are recorded as a non-hedge derivative instrument on a net basis. | ||||||||||||||||||||||||||||||||
New Residential also enters into economic hedges including TBAs, which are categorized as Level 2 in the valuation hierarchy. Management generally values such derivatives using quotations, similarly to the method of valuation used for New Residential’s other assets that are categorized as Level 2. | ||||||||||||||||||||||||||||||||
Liabilities for Which Fair Value is Only Disclosed | ||||||||||||||||||||||||||||||||
Repurchase agreements and notes payable are not measured at fair value; however, management believes that their carrying value approximates fair value. Repurchase agreements and notes payable are generally considered to be Level 2 and Level 3 in the valuation hierarchy, respectively, with significant valuation variables including the amount and timing of expected cash flows, interest rates and collateral funding spreads. | ||||||||||||||||||||||||||||||||
Short-term repurchase agreements and short-term notes payable have an estimated fair value equal to their carrying value due to their short duration and generally floating interest rates. Longer-term notes payable, representing the securitized portion of the servicer advance financing, are valued based on internal models utilizing both observable and unobservable inputs. As of June 30, 2014, these longer-term notes have an estimated fair value of $1,262 million and a carrying value of $1,260 million. |
EQUITY_AND_EARNINGS_PER_SHARE
EQUITY AND EARNINGS PER SHARE | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Equity And Earnings Per Share | ' | ||||||||
EQUITY AND EARNINGS PER SHARE | ' | ||||||||
EQUITY AND EARNINGS PER SHARE | |||||||||
Equity and Dividends | |||||||||
On April 26, 2013, Newcastle announced that its board of directors had formally declared the distribution of shares of common stock of New Residential, a then wholly owned subsidiary of Newcastle. Following the spin-off, New Residential is an independent, publicly-traded REIT primarily focused on investing in residential mortgage related assets. The spin-off was completed on May 15, 2013 and New Residential began trading on the New York Stock Exchange under the symbol “NRZ.” The spin-off transaction was effected as a taxable pro rata distribution by Newcastle of all the outstanding shares of common stock of New Residential to the stockholders of record of Newcastle as of May 6, 2013. The stockholders of Newcastle as of the record date received one share of New Residential common stock for each share of Newcastle common stock held. | |||||||||
On April 29, 2013, New Residential’s certificate of incorporation was amended so that its authorized capital stock now consists of 2,000,000,000 shares of common stock, par value $0.01 per share, and 100,000,000 shares of preferred stock, par value $0.01 per share. At the time of the completion of the spin-off, there were 253,025,645 outstanding shares of common stock which was based on the number of Newcastle’s shares of common stock outstanding on May 6, 2013 and a distribution ratio of one share of New Residential common stock for each share of Newcastle common stock. | |||||||||
In April 2014, New Residential issued 27,750,000 shares of its common stock in a public offering at a price to the public of $6.10 per share for net proceeds of approximately $163.8 million. One of New Residential’s executive officers participated in this offering and purchased an additional 1,000,000 shares at the public offering price for net proceeds of approximately $6.1 million. For the purpose of compensating the Manager for its successful efforts in raising capital for New Residential, in connection with this offering, New Residential granted options to the Manager to purchase 2,875,000 shares of New Residential’s common stock at a price of $6.10, which had a fair value of approximately $1.4 million as of the grant date. The assumptions used in valuing the options were: a 2.87% risk-free rate, a 12.584% dividend yield, 25.66% volatility and a 10 year term. | |||||||||
An employee of the Manager exercised 215,000 options with a weighted average exercise price of $2.81 on May 7, 2014. Upon exercise, 215,000 shares of common stock of New Residential were issued. | |||||||||
On December 17, 2013, New Residential declared a quarterly dividend of $0.175 per common share and a special cash dividend of $0.075 per common share, totaling $63.3 million, for the quarter ended December 31, 2013. The combined dividend of $0.25 was paid on January 31, 2014. On March 19, 2014, New Residential declared a quarterly dividend of $0.175 per common share, or $44.3 million, for the quarter ended March 31, 2014, which was paid in April 2014. On June 17, 2014, New Residential declared a quarterly dividend of $0.175 per common share and a special cash dividend of $0.075 per common share, totaling $70.6 million, for the quarter ended June 30, 2014. The combined dividend of $0.25 was paid on July 31, 2014. | |||||||||
Approximately 5.3 million shares of New Residential’s common stock were held by Fortress, through its affiliates, and its principals at June 30, 2014. | |||||||||
In January and June 2014, New Residential issued an aggregate of 50,159 shares of its common stock to its independent directors as compensation. | |||||||||
Option Plan | |||||||||
New Residential’s outstanding options at June 30, 2014 consisted of the following: | |||||||||
Number of Options | Strike Price | Maturity Date | |||||||
162,500 | $ | 16.95 | 11/22/14 | ||||||
330,000 | 15.97 | 1/12/15 | |||||||
2,000 | 16.68 | 8/1/15 | |||||||
170,000 | 15.87 | 11/1/16 | |||||||
242,000 | 16.9 | 1/23/17 | |||||||
456,000 | 14.96 | 4/11/17 | |||||||
1,495,166 | 3.29 | 3/29/21 | |||||||
2,294,833 | 2.49 | 9/27/21 | |||||||
2,000 | 2.74 | 12/20/21 | |||||||
1,867,167 | 3.41 | 4/3/22 | |||||||
2,265,000 | 3.67 | 5/21/22 | |||||||
2,499,167 | 3.67 | 7/31/22 | |||||||
5,750,000 | 5.12 | 1/11/23 | |||||||
2,300,000 | 5.74 | 2/15/23 | |||||||
8,000 | 6.79 | 6/2/23 | |||||||
2,875,000 | 6.1 | 4/30/24 | |||||||
Total/Weighted Average | 22,718,833 | $ | 5.12 | ||||||
As of June 30, 2014, New Residential’s outstanding options were summarized as follows: | |||||||||
Held by the Manager | 17,925,463 | ||||||||
Issued to the Manager and subsequently transferred to certain of the Manager’s employees | 4,781,370 | ||||||||
Issued to the independent directors | 12,000 | ||||||||
Total | 22,718,833 | ||||||||
Income and Earnings Per Share | |||||||||
Net income earned prior to the spin-off is included in additional paid-in capital instead of retained earnings since the accumulation of retained earnings began as of the date of spin-off. | |||||||||
New Residential is required to present both basic and diluted earnings per share (“EPS”). Basic EPS is calculated by dividing net income by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing net income by the weighted average number of shares of common stock outstanding plus the additional dilutive effect, if any, of common stock equivalents during each period. New Residential’s common stock equivalents are its outstanding stock options. During the three and six months ended June 30, 2014, based on the treasury stock method, New Residential had 6,405,348 and 6,457,136 dilutive common stock equivalents outstanding, respectively. During the three and six months ended June 30, 2013, New Residential had 3,633,843 and 1,826,960 dilutive common stock equivalents outstanding, respectively. | |||||||||
For the purposes of computing EPS for periods prior to the spin-off on May 15, 2013, New Residential treated the common shares issued in connection with the spin-off as if they had been outstanding for all periods presented, similar to a stock split. For the purposes of computing diluted EPS for periods prior to the spin-off on May 15, 2013, New Residential treated the 21.5 million options issued on the spin-off date as a result of the conversion of Newcastle options as if they were granted on May 15, 2013 since no New Residential awards were outstanding prior to that date. | |||||||||
Noncontrolling Interests | |||||||||
Noncontrolling interests is comprised of the interests held by third parties in consolidated entities that hold New Residential’s investments in servicer advances (Note 6). |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
Litigation – New Residential may, from time to time, be a defendant in legal actions from transactions conducted in the ordinary course of business. As of June 30, 2014, New Residential is not subject to any material litigation, individually or in the aggregate, nor, to management’s knowledge, is any material litigation currently threatened against New Residential. | |
Indemnifications – In the normal course of business, New Residential and its subsidiaries enter into contracts that contain a variety of representations and warranties and that provide general indemnifications. New Residential’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against New Residential that have not yet occurred. However, based on Newcastle’s and its own experience, New Residential expects the risk of material loss to be remote. | |
Capital Commitments — As of June 30, 2014, New Residential had outstanding capital commitments related to investments in the following investment types (also refer to Note 18 for additional capital commitments entered into subsequent to June 30, 2014, including investments in Excess MSRs): | |
Servicer Advances — New Residential and third-party co-investors agreed to purchase, through the Buyer, future servicer advances related to the Non-Agency mortgage loans. The actual amount of future advances purchased will be based on: (a) the credit and prepayment performance of the underlying loans, (b) the amount of advances recoverable prior to liquidation of the related collateral and (c) the percentage of the loans with respect to which no additional advance obligations are made. The actual amount of future advances is subject to significant uncertainty. See Note 6 for information on New Residential’s investments in servicer advances. | |
Residential Mortgage Loans — As part of its investment in residential mortgage loans, New Residential may be required to outlay capital. These capital outflows primarily consist of advance escrow and tax payments, residential maintenance and property disposition fees. The actual amount of these outflows is subject to significant uncertainty. See Note 8 for information on New Residential’s investments in residential mortgage loans. | |
Debt Covenants — New Residential’s debt obligations contain various customary loan covenants (Notes 8 and 11). | |
Certain Tax-Related Covenants — If New Residential is treated as a successor to Newcastle under applicable U.S. federal income tax rules, and if Newcastle fails to qualify as a REIT, New Residential could be prohibited from electing to be a REIT. Accordingly, Newcastle has (i) represented that it has no knowledge of any fact or circumstance that would cause New Residential to fail to qualify as a REIT, (ii) covenanted to use commercially reasonable efforts to cooperate with New Residential as necessary to enable New Residential to qualify for taxation as a REIT and receive customary legal opinions concerning REIT status, including providing information and representations to New Residential and its tax counsel with respect to the composition of Newcastle’s income and assets, the composition of its stockholders, and its operation as a REIT; and (iii) covenanted to use its reasonable best efforts to maintain its REIT status for each of Newcastle’s taxable years ending on or before December 31, 2014 (unless Newcastle obtains an opinion from a nationally recognized tax counsel or a private letter ruling from the IRS to the effect that Newcastle’s failure to maintain its REIT status will not cause New Residential to fail to qualify as a REIT under the successor REIT rule referred to above). Additionally, New Residential covenanted to use its reasonable best efforts to qualify for taxation as a REIT for its taxable year ended December 31, 2013. |
TRANSACTIONS_WITH_AFFILIATES_A
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Transactions With Affiliates And Affiliated Entities | ' | |||||||||||||||
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | ' | |||||||||||||||
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | ||||||||||||||||
Due to affiliates is comprised of the following amounts: | ||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
Management fees | $ | 3,415 | $ | 1,495 | ||||||||||||
Incentive compensation | 22,201 | 16,847 | ||||||||||||||
Expense reimbursements and other | 516 | 827 | ||||||||||||||
$ | 26,132 | $ | 19,169 | |||||||||||||
Affiliate expenses and fees were comprised of: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Management fees | $ | 4,915 | $ | 4,072 | $ | 9,401 | $ | 6,397 | ||||||||
Incentive compensation | 18,863 | 878 | 22,201 | 878 | ||||||||||||
Expense reimbursements(A) | 125 | — | 250 | — | ||||||||||||
Total | $ | 23,903 | $ | 4,950 | $ | 31,852 | $ | 7,275 | ||||||||
(A) | Included in General and Administrative Expenses in the Condensed Consolidated Statements of Income. | |||||||||||||||
New Residential's board of directors approved a change in the computation of incentive compensation to exclude unrealized gains (or losses) on investments and debt (and any deferred tax impact thereof). The impact of this change on the six months ended June 30, 2014 was to reduce incentive compensation by $5.5 million. | ||||||||||||||||
See Notes 4, 5, 6, 7, 8, 11, 14 and 18 for a discussion of transactions with Nationstar. As of June 30, 2014, New Residential’s entire Non-Agency portfolio was serviced or master serviced by Nationstar. The total UPB of the loans underlying these Nationstar serviced Non-Agency RMBS was approximately $2.8 billion as of June 30, 2014. As of June 30, 2014, $17.8 million UPB of New Residential's non-performing residential mortgage loans are being serviced by Nationstar. Subsequent to June 30, 2014, $548.7 million UPB of New Residential's non-performing residential mortgage loans have transferred to be serviced by Nationstar. | ||||||||||||||||
See Note 9 for a discussion of a transaction with Springleaf. |
RECLASSIFICATION_FROM_ACCUMULA
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Reclassification From Accumulated Other Comprehensive Income Into Net Income | ' | ||||||||||||||||||
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME | ' | ||||||||||||||||||
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME | |||||||||||||||||||
The following table summarizes the amounts reclassified out of accumulated other comprehensive income into net income: | |||||||||||||||||||
Accumulated Other Comprehensive | Statement of Income Location | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Income Components | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Reclassification of net realized | Gain on settlement of | $ | (57,284 | ) | $ | (58 | ) | $ | (61,776 | ) | $ | (58 | ) | ||||||
(gain) loss on securities into | securities | ||||||||||||||||||
earnings | |||||||||||||||||||
Reclassification of net realized | Other-than-temporary | 615 | 3,756 | 943 | 3,756 | ||||||||||||||
(gain) loss on securities into | impairment on securities | ||||||||||||||||||
earnings | |||||||||||||||||||
Total reclassifications | $ | (56,669 | ) | $ | 3,698 | $ | (60,833 | ) | $ | 3,698 | |||||||||
INCOME_TAXES
INCOME TAXES | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
INCOME TAXES | ' | ||||||||||||||||
INCOME TAXES | |||||||||||||||||
The provision for income taxes consists of the following: | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 2,236 | $ | — | $ | 2,453 | $ | — | |||||||||
State and Local | 1,514 | — | 1,584 | — | |||||||||||||
Total Current Provision | 3,750 | — | 4,037 | — | |||||||||||||
Deferred: | |||||||||||||||||
Federal | 13,236 | — | 13,236 | — | |||||||||||||
State and Local | 4,409 | — | 4,409 | — | |||||||||||||
Total Deferred Provision | 17,645 | — | 17,645 | — | |||||||||||||
Total Provision for Income Taxes | $ | 21,395 | $ | — | $ | 21,682 | $ | — | |||||||||
New Residential intends to qualify as a REIT for the tax years ending December 31, 2013 and 2014. A REIT is generally not subject to U.S. federal corporate income tax on that portion of its income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. New Residential was a wholly owned subsidiary of Newcastle until May 15, 2013 and, as a qualified REIT subsidiary, was a disregarded entity until such date. As a result, no provision or liability for U.S. federal or state income taxes has been included in the accompanying consolidated financial statements for the period from January 1 through May 15, 2013. | |||||||||||||||||
New Residential has made certain investments, particularly its investments in servicer advances (Note 6), through TRSs and is subject to regular corporate income taxes on these investments. In addition, some investments are held through limited partnership interests which are subject to the New York City unincorporated business tax (“UBT”). Regular corporate income taxes on the TRSs and UBT has been provided for in the provision for income taxes. New Residential and its subsidiaries will file income tax returns with the U.S. federal government and various state and local jurisdictions for the tax years ending December 31, 2013 and 2014. Generally, these income tax returns will be subject to tax examinations by tax authorities for a period of three years after the date of filing. | |||||||||||||||||
New Residential recorded a deferred tax liability of $17.6 million in the second quarter of 2014. This deferred tax liability relates to the unrealized gains of $82.9 million from New Residential's investment in servicer advances. | |||||||||||||||||
The increase in the provision for income taxes as of June 30, 2014 is primarily due to an increase in taxable profits subject to corporate income tax rates as well as taxable profits subject to UBT. |
RECENT_ACTIVITIES
RECENT ACTIVITIES | 6 Months Ended |
Jun. 30, 2014 | |
Recent Activities | ' |
RECENT ACTIVITIES | ' |
RECENT ACTIVITIES | |
These financial statements include a discussion of material events that have occurred subsequent to June 30, 2014 (referred to as “subsequent events”) through the issuance of these condensed consolidated financial statements. Events subsequent to that date have not been considered in these financial statements. | |
Excess MSRs | |
On July 8, 2014, New Residential invested approximately $14.2 million to acquire a 32.5% interest in the Excess MSR on a portfolio of Fannie Mae residential mortgage loans ("Pool 13") with an aggregate UPB of $5.9 billion. Fortress-managed funds and Nationstar agreed to acquire a 32.5% and 35.0% interest in the Excess MSRs, respectively. New Residential also invested approximately $5.7 million to acquire a one-third interest in the Excess MSR on a portfolio of Fannie Mae residential mortgage loans ("Pool 15") with an aggregate UPB of $2.1 billion. Fortress-managed funds and Nationstar each agreed to acquire a one-third interest in the Excess MSRs. | |
Nationstar as servicer will perform all servicing and advancing functions, and retain the ancillary income, servicing obligations and liabilities as the servicer of the underlying loans in each of the portfolios. Under the terms of these investments, to the extent that any loans in the portfolios are refinanced by Nationstar, the resulting Excess MSRs are shared on a pro rata basis by New Residential, the Fortress-managed funds and Nationstar, subject to certain limitations. | |
Servicer Advances | |
Subsequent to June 30, 2014 and prior to August 4, 2014, the Buyer funded a total of $943.5 million of servicer advances and recovered $1.1 billion of existing servicer advances. Notes payable outstanding decreased by $130.9 million and restricted cash decreased approximately $3.8 million in relation to these fundings. Additionally, the Buyer received $1.0 million from Nationstar to satisfy a targeted return shortfall. | |
On July 18, 2014, the Buyer received $26.7 million in proceeds from the refinancing of the note issued under the Bank of America facility. The Bank of America note was prepaid with proceeds of a new note issued to J.P. Morgan. The note issued to J.P. Morgan has a fixed interest rate equal to 2.45% with an expected repayment date of July 2016. As of July 31, 2014, the principal balance of this note was approximately $531.9 million. | |
On July 25, 2014, the Buyer received $12.1 million in proceeds from the refinancing of the Credit Suisse syndicated debt with notes issued to Morgan Stanley and J.P. Morgan. | |
Real Estate Securities | |
Subsequent to June 30, 2014, New Residential acquired Agency RMBS with an aggregate face amount of approximately $243.0 million for approximately $251.4 million and acquired Non-Agency RMBS with an aggregate face amount of approximately $22.7 million for approximately $19.2 million, financed with repurchase agreements. New Residential sold Agency ARM RMBS with a face amount of $443.2 million and an amortized cost basis of approximately $471.1 million for approximately $474.4 million and recorded a gain of approximately $3.3 million. New Residential sold no Non-Agency RMBS. | |
Subsequent to June 30, 2014, New Residential acquired additional net short TBA positions that increased its net short notional position by $392.0 million of Agency RMBS and any amounts or obligations owed by or to New Residential are subject to the right of set-off with the TBA counterparty. | |
In July 2014, New Residential paid off $397.8 million of the Agency ARM RMBS repo facility as a result of sales and rolled $764.2 million to mature in August 2014. | |
In July 2014, New Residential rolled $87.1 million of the Non-Agency RMBS repo facility that was scheduled to mature in July 2014 to mature in August 2014 through October 2014 and received an incremental financing of $1.7 million due to more favorable financing terms on the same collateral. | |
Corporate Activities | |
On June 17, 2014, New Residential’s board of directors declared a second quarter 2014 dividend of $0.175 per common share and a special cash dividend of $0.075 per common share, or $70.6 million, which was paid on July 31, 2014 to stockholders of record as of June 27, 2014. |
OTHER_INCOME_ASSETS_AND_LIABIL1
OTHER INCOME, ASSETS AND LIABILITIES (Tables) | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Other Income Assets And Liabilities | ' | |||||||||||||||||
Schedule of other income | ' | |||||||||||||||||
Other income is comprised of the following: | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Gain (loss) on derivative instruments | $ | (3,801 | ) | $ | — | $ | (2,444 | ) | $ | — | ||||||||
Gain (loss) on transfer of loans to REO | 6,694 | — | 6,694 | — | ||||||||||||||
$ | 2,893 | $ | — | $ | 4,250 | $ | — | |||||||||||
Schedule of other assets and other liabilities | ' | |||||||||||||||||
Other assets and liabilities are comprised of the following: | ||||||||||||||||||
Other Assets | Accrued Expenses and Other Liabilities | |||||||||||||||||
30-Jun-14 | 31-Dec-13 | 30-Jun-14 | 31-Dec-13 | |||||||||||||||
Margin receivable | $ | 772 | $ | 40,132 | Interest payable | $ | 2,185 | $ | 4,010 | |||||||||
Interest and other receivables | 5,936 | 7,548 | Accounts payable | 4,950 | 2,829 | |||||||||||||
Deferred financing costs, net(A) | 5,554 | 4,773 | Derivative liability | — | 18 | |||||||||||||
Real estate owned(B) | 30,976 | — | Current taxes payable | 527 | — | |||||||||||||
Other assets | 3,517 | 689 | Other liabilities | 917 | — | |||||||||||||
$ | 46,755 | $ | 53,142 | $ | 8,579 | $ | 6,857 | |||||||||||
(A) | Deferred financing costs is net of accumulated amortization of $6,517 and $768 as of June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||
(B) | Real estate owned ("REO") assets are those individual properties New Residential purchased or received in satisfaction of a debt (e.g., by taking legal title or physical possession). REO assets are initially recognized at fair value less costs to sell and the carrying value of the acquired property is reviewed on a recurring basis and adjusted, if necessary, to the lower of cost or fair value. | |||||||||||||||||
Schedule of accretion of discount and other amortization | ' | |||||||||||||||||
As reflected on the Condensed Consolidated Statements of Cash Flows, accretion and other amortization is comprised of the following: | ||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Accretion of servicer advance interest income | $ | 102,823 | $ | — | ||||||||||||||
Accretion of excess mortgage servicing rights income | 24,789 | 20,781 | ||||||||||||||||
Accretion of net discount on securities and loans | 12,477 | 6,596 | ||||||||||||||||
Amortization of deferred financing costs | (5,750 | ) | — | |||||||||||||||
$ | 134,339 | $ | 27,377 | |||||||||||||||
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of segment reporting | ' | |||||||||||||||||||||||||||
Summary financial data on New Residential’s segments is given below, together with a reconciliation to the same data for New Residential as a whole: | ||||||||||||||||||||||||||||
Servicing Related Assets | Residential Securities and Loans | |||||||||||||||||||||||||||
Excess MSRs | Servicer Advances | Real Estate Securities | Real Estate Loans | Consumer Loans | Corporate | Total | ||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
Interest income | $ | 10,973 | $ | 57,107 | $ | 19,522 | $ | 5,054 | $ | — | $ | — | $ | 92,656 | ||||||||||||||
Interest expense | — | 29,772 | 3,512 | 1,191 | 1,538 | 499 | 36,512 | |||||||||||||||||||||
Net interest income (expense) | 10,973 | 27,335 | 16,010 | 3,863 | (1,538 | ) | (499 | ) | 56,144 | |||||||||||||||||||
Impairment | — | — | 615 | 293 | — | — | 908 | |||||||||||||||||||||
Other income | 18,245 | 82,709 | 53,413 | 2,187 | 21,335 | — | 177,889 | |||||||||||||||||||||
Operating expenses | 320 | 769 | 571 | 887 | 90 | 26,885 | 29,522 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | 28,898 | 109,275 | 68,237 | 4,870 | 19,707 | (27,384 | ) | 203,603 | ||||||||||||||||||||
Income tax expense | — | 21,395 | — | — | — | — | 21,395 | |||||||||||||||||||||
Net Income (Loss) | $ | 28,898 | $ | 87,880 | $ | 68,237 | $ | 4,870 | $ | 19,707 | $ | (27,384 | ) | $ | 182,208 | |||||||||||||
Noncontrolling interests in income | $ | — | $ | 58,705 | $ | — | $ | — | $ | — | $ | — | $ | 58,705 | ||||||||||||||
(loss) of consolidated subsidiaries | ||||||||||||||||||||||||||||
Net income (loss) attributable to | $ | 28,898 | $ | 29,175 | $ | 68,237 | $ | 4,870 | $ | 19,707 | $ | (27,384 | ) | $ | 123,503 | |||||||||||||
common stockholders | ||||||||||||||||||||||||||||
Servicing Related Assets | Residential Securities and Loans | |||||||||||||||||||||||||||
Excess MSRs | Servicer Advances | Real Estate Securities | Real Estate Loans | Consumer Loans | Corporate | Total | ||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
Interest income | $ | 24,789 | $ | 102,823 | $ | 30,760 | $ | 5,774 | $ | — | $ | — | $ | 164,146 | ||||||||||||||
Interest expense | 1,291 | 61,728 | 7,581 | 1,389 | 3,021 | 499 | 75,509 | |||||||||||||||||||||
Net interest income (expense) | 23,498 | 41,095 | 23,179 | 4,385 | (3,021 | ) | (499 | ) | 88,637 | |||||||||||||||||||
Impairment | — | — | 943 | 457 | — | — | 1,400 | |||||||||||||||||||||
Other income | 31,221 | 82,709 | 58,455 | 2,858 | 37,695 | 1 | 212,939 | |||||||||||||||||||||
Operating expenses | 385 | 1,019 | 631 | 977 | 113 | 36,296 | 39,421 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | 54,334 | 122,785 | 80,060 | 5,809 | 34,561 | (36,794 | ) | 260,755 | ||||||||||||||||||||
Income tax expense | — | 21,682 | — | — | — | — | 21,682 | |||||||||||||||||||||
Net Income (Loss) | $ | 54,334 | $ | 101,103 | $ | 80,060 | $ | 5,809 | $ | 34,561 | $ | (36,794 | ) | $ | 239,073 | |||||||||||||
Noncontrolling interests in income | $ | — | $ | 66,798 | $ | — | $ | — | $ | — | $ | — | $ | 66,798 | ||||||||||||||
(loss) of consolidated subsidiaries | ||||||||||||||||||||||||||||
Net income (loss) attributable to | $ | 54,334 | $ | 34,305 | $ | 80,060 | $ | 5,809 | $ | 34,561 | $ | (36,794 | ) | $ | 172,275 | |||||||||||||
common stockholders | ||||||||||||||||||||||||||||
Servicing Related Assets | Residential Securities and Loans | |||||||||||||||||||||||||||
Excess MSRs | Servicer Advances | Real Estate Securities | Real Estate Loans | Consumer Loans | Corporate | Total | ||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||
Investments | $ | 702,636 | $ | 3,679,105 | $ | 1,463,903 | $ | 517,424 | $ | 250,048 | $ | — | $ | 6,613,116 | ||||||||||||||
Cash and cash equivalents | 3,405 | 120,722 | 22,714 | 617 | 2,152 | 161,516 | 311,126 | |||||||||||||||||||||
Restricted cash | — | 37,327 | — | — | — | — | 37,327 | |||||||||||||||||||||
Derivative assets | — | — | 256 | 30,736 | — | — | 30,992 | |||||||||||||||||||||
Other assets | — | 7,925 | 6,499 | 31,435 | 557 | 339 | 46,755 | |||||||||||||||||||||
Total assets | $ | 706,041 | $ | 3,845,079 | $ | 1,493,372 | $ | 580,212 | $ | 252,757 | $ | 161,855 | $ | 7,039,316 | ||||||||||||||
Debt | $ | — | $ | 3,265,530 | $ | 1,331,354 | $ | 382,743 | $ | 125,000 | $ | — | $ | 5,104,627 | ||||||||||||||
Other liabilities | 1,205 | 20,595 | 254 | 1,925 | 519 | 98,411 | 122,909 | |||||||||||||||||||||
Total liabilities | 1,205 | 3,286,125 | 1,331,608 | 384,668 | 125,519 | 98,411 | 5,227,536 | |||||||||||||||||||||
Total equity | 704,836 | 558,954 | 161,764 | 195,544 | 127,238 | 63,444 | 1,811,780 | |||||||||||||||||||||
Noncontrolling interests in equity | — | 313,301 | — | — | — | — | 313,301 | |||||||||||||||||||||
of consolidated subsidiaries | ||||||||||||||||||||||||||||
Total New Residential | $ | 704,836 | $ | 245,653 | $ | 161,764 | $ | 195,544 | $ | 127,238 | $ | 63,444 | $ | 1,498,479 | ||||||||||||||
stockholders’ equity | ||||||||||||||||||||||||||||
Investments in equity method | $ | 330,220 | $ | — | $ | — | $ | — | $ | 250,048 | $ | — | $ | 580,268 | ||||||||||||||
investees | ||||||||||||||||||||||||||||
Servicing Related Assets | Residential Securities and Loans | |||||||||||||||||||||||||||
Excess MSRs | Servicer Advances | Real Estate Securities | Real Estate Loans | Consumer Loans | Corporate | Total | ||||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
Interest income | $ | 10,745 | $ | — | $ | 11,378 | $ | 838 | $ | — | $ | 38 | $ | 22,999 | ||||||||||||||
Interest expense | — | — | 2,651 | — | — | — | 2,651 | |||||||||||||||||||||
Net interest income (expense) | 10,745 | — | 8,727 | 838 | — | 38 | 20,348 | |||||||||||||||||||||
Impairment | — | — | 3,756 | — | — | — | 3,756 | |||||||||||||||||||||
Other income | 61,960 | — | 58 | — | 36,164 | — | 98,182 | |||||||||||||||||||||
Operating expenses | 34 | — | 27 | 125 | — | 5,366 | 5,552 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | 72,671 | — | 5,002 | 713 | 36,164 | (5,328 | ) | 109,222 | ||||||||||||||||||||
Income tax expense | — | — | — | — | — | — | — | |||||||||||||||||||||
Net Income (Loss) | $ | 72,671 | $ | — | $ | 5,002 | $ | 713 | $ | 36,164 | $ | (5,328 | ) | $ | 109,222 | |||||||||||||
Noncontrolling interests in income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
(loss) of consolidated subsidiaries | ||||||||||||||||||||||||||||
Net income (loss) attributable to | $ | 72,671 | $ | — | $ | 5,002 | $ | 713 | $ | 36,164 | $ | (5,328 | ) | $ | 109,222 | |||||||||||||
common stockholders | ||||||||||||||||||||||||||||
Servicing Related Assets | Residential Securities and Loans | |||||||||||||||||||||||||||
Excess MSRs | Servicer Advances | Real Estate Securities | Real Estate Loans | Consumer Loans | Corporate | Total | ||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
Interest income | $ | 20,780 | $ | — | $ | 17,188 | $ | 1,184 | $ | — | $ | 38 | $ | 39,190 | ||||||||||||||
Interest expense | — | — | 3,550 | — | — | — | 3,550 | |||||||||||||||||||||
Net interest income (expense) | 20,780 | — | 13,638 | 1,184 | — | 38 | 35,640 | |||||||||||||||||||||
Impairment | — | — | 3,756 | — | — | — | 3,756 | |||||||||||||||||||||
Other income | 64,787 | — | 58 | — | 36,164 | — | 101,009 | |||||||||||||||||||||
Operating expenses | 96 | — | 22 | 130 | 1,951 | 8,397 | 10,596 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | 85,471 | — | 9,918 | 1,054 | 34,213 | (8,359 | ) | 122,297 | ||||||||||||||||||||
Income tax expense | — | — | — | — | — | — | — | |||||||||||||||||||||
Net Income (Loss) | $ | 85,471 | $ | — | $ | 9,918 | $ | 1,054 | $ | 34,213 | $ | (8,359 | ) | $ | 122,297 | |||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Net income (loss) attributable to common stockholders | $ | 85,471 | $ | — | $ | 9,918 | $ | 1,054 | $ | 34,213 | $ | (8,359 | ) | $ | 122,297 | |||||||||||||
INVESTMENTS_IN_EXCESS_MORTGAGE2
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Transfers and Servicing [Abstract] | ' | ||||||||||||||||||||
Schedule of direct investment in Excess Mortgage Servicing Rights (MSRs) | ' | ||||||||||||||||||||
The following is a summary of New Residential’s direct investments in Excess MSRs: | |||||||||||||||||||||
June 30, 2014 | Six Months Ended June 30, 2014 | ||||||||||||||||||||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | Interest in Excess MSR | Amortized Cost Basis(A) | Carrying Value(B) | Weighted Average Life (Years)(C) | Changes in Fair Value Recorded in Other Income(D) | ||||||||||||||||
MSR Pool 1 | $ | 6,431,132 | 65 | % | $ | 24,518 | $ | 34,313 | 5.3 | $ | (161 | ) | |||||||||
MSR Pool 1 - Recapture | — | 65 | % | 108 | 6,102 | 12 | 283 | ||||||||||||||
Agreement | |||||||||||||||||||||
MSR Pool 2 | 7,461,126 | 65 | % | 28,157 | 32,951 | 5.5 | (222 | ) | |||||||||||||
MSR Pool 2 - Recapture | — | 65 | % | 327 | 6,089 | 12.6 | 427 | ||||||||||||||
Agreement | |||||||||||||||||||||
MSR Pool 3 | 7,369,718 | 65 | % | 23,233 | 31,000 | 5.1 | (497 | ) | |||||||||||||
MSR Pool 3 - Recapture | — | 65 | % | 1,877 | 6,226 | 12.1 | 440 | ||||||||||||||
Agreement | |||||||||||||||||||||
MSR Pool 4 | 4,803,347 | 65 | % | 9,399 | 13,852 | 4.8 | 505 | ||||||||||||||
MSR Pool 4 - Recapture | — | 65 | % | 2,020 | 3,860 | 12.1 | 36 | ||||||||||||||
Agreement | |||||||||||||||||||||
MSR Pool 5(E) | 34,537,052 | 80 | % | 110,258 | 136,962 | 5.4 | 3,613 | ||||||||||||||
MSR Pool 5 - Recapture | — | 80 | % | 8,913 | 6,111 | 13 | 818 | ||||||||||||||
Agreement | |||||||||||||||||||||
MSR Pool 11 | 437,676 | 66.7 | % | 1,996 | 2,356 | 6.5 | 371 | ||||||||||||||
MSR Pool 11 - | — | 66.7 | % | 254 | 293 | 13.9 | 57 | ||||||||||||||
Recapture Agreement | |||||||||||||||||||||
MSR Pool 12(E) | 4,814,648 | 40 | % | 14,990 | 17,574 | 4.8 | 2,525 | ||||||||||||||
MSR Pool 12 - | — | 40 | % | 462 | 236 | 12.7 | 6 | ||||||||||||||
Recapture Agreement | |||||||||||||||||||||
MSR Pool 14 | 952,767 | 33.3 | % | 2,252 | 2,470 | 5.3 | 218 | ||||||||||||||
MSR Pool 14 - | — | 33.3 | % | 140 | 170 | 12.9 | 30 | ||||||||||||||
Recapture Agreement | |||||||||||||||||||||
MSR Pool 16 | 1,412,598 | 33.3 | % | 2,177 | 2,211 | 5.5 | 33 | ||||||||||||||
MSR Pool 16 - | — | 33.3 | % | 662 | 767 | 11.1 | 106 | ||||||||||||||
Recapture Agreement | |||||||||||||||||||||
MSR Pool 17(E) | 7,953,370 | 33.3 | % | 18,481 | 18,876 | 5.2 | 395 | ||||||||||||||
MSR Pool 17 - | — | 33.3 | % | 1,114 | 644 | 12.8 | (470 | ) | |||||||||||||
Recapture Agreement | |||||||||||||||||||||
MSR Pool 18(E) | 8,041,279 | 40 | % | 14,395 | 15,743 | 4.6 | 1,345 | ||||||||||||||
MSR Pool 18 - | — | 40 | % | 1,111 | 818 | 12.4 | 199 | ||||||||||||||
Recapture Agreement | |||||||||||||||||||||
MSR Pool 19 | 10,249,845 | 33.3 | % | 26,822 | 28,407 | 6.2 | 1,586 | ||||||||||||||
MSR Pool 19 - | — | 33.3 | % | 1,703 | 1,941 | 13.7 | 238 | ||||||||||||||
Recapture Agreement | |||||||||||||||||||||
MSR Pool 20 | 701,701 | 33.3 | % | 2,030 | 2,206 | 5.4 | 177 | ||||||||||||||
MSR Pool 20 - | — | 33.3 | % | 193 | 238 | 12 | 46 | ||||||||||||||
Recapture Agreement | |||||||||||||||||||||
$ | 95,166,259 | $ | 297,592 | $ | 372,416 | 5.8 | $ | 12,104 | |||||||||||||
(A) | The amortized cost basis of the Recapture Agreements is determined based on the relative fair values of the Recapture Agreements and related Excess MSRs at the time they were acquired. | ||||||||||||||||||||
(B) | Carrying Value represents the fair value of the pools or Recapture Agreements, as applicable. | ||||||||||||||||||||
(C) | Weighted Average Life represents the weighted average expected timing of the receipt of expected cash flows for this investment. | ||||||||||||||||||||
(D) | The portion of the change in fair value of the Recapture Agreements relating to loans recaptured to date is reflected in the respective pool. | ||||||||||||||||||||
(E) | Pool in which New Residential also invested in related servicer advances, including the basic fee component of the related MSR as of June 30, 2014 (Note 6). | ||||||||||||||||||||
Summary of the geographic distribution of the underlying residential mortgage loans of the direct investment in Excess MSRs | ' | ||||||||||||||||||||
The table below summarizes the geographic distribution of the underlying residential mortgage loans of the direct investments in Excess MSRs: | |||||||||||||||||||||
Percentage of Total Outstanding Unpaid Principal Amount as of | |||||||||||||||||||||
State Concentration | 30-Jun-14 | 31-Dec-13 | |||||||||||||||||||
California | 30 | % | 31.5 | % | |||||||||||||||||
Florida | 8.5 | % | 9.8 | % | |||||||||||||||||
New York | 4.4 | % | 4.9 | % | |||||||||||||||||
Maryland | 4.1 | % | 3.5 | % | |||||||||||||||||
Washington | 3.9 | % | 3.9 | % | |||||||||||||||||
Texas | 3.8 | % | 4 | % | |||||||||||||||||
Virginia | 3.5 | % | 3.1 | % | |||||||||||||||||
Arizona | 3.4 | % | 3.5 | % | |||||||||||||||||
New Jersey | 3.3 | % | 3.3 | % | |||||||||||||||||
Illinois | 2.8 | % | 2.7 | % | |||||||||||||||||
Other U.S. | 32.3 | % | 29.8 | % | |||||||||||||||||
100 | % | 100 | % |
INVESTMENTS_IN_EXCESS_MORTGAGE3
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||||||||
Schedule of investments in excess mortgage servicing rights equity method investees | ' | |||||||||||||||||||
The following tables summarize the investments in Excess MSR joint ventures, accounted for as equity method investees held by New Residential: | ||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||
Excess MSR assets | $ | 655,766 | $ | 703,681 | ||||||||||||||||
Other assets | 8,451 | 5,534 | ||||||||||||||||||
Debt | — | — | ||||||||||||||||||
Other liabilities | (3,777 | ) | (3,683 | ) | ||||||||||||||||
Equity | $ | 660,440 | $ | 705,532 | ||||||||||||||||
New Residential's investment | $ | 330,220 | $ | 352,766 | ||||||||||||||||
New Residential's ownership | 50 | % | 50 | % | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Interest income | $ | 17,292 | $ | 8,140 | $ | 35,785 | $ | 13,756 | ||||||||||||
Other income | 8,194 | 34,528 | 2,489 | 31,374 | ||||||||||||||||
Expenses | (1 | ) | (2,414 | ) | (41 | ) | (2,938 | ) | ||||||||||||
Net income | $ | 25,485 | $ | 40,254 | $ | 38,233 | $ | 42,192 | ||||||||||||
Schedule of Excess Mortgage Servicing Rights (MSRs) investments made through equity method investees | ' | |||||||||||||||||||
The following is a summary of New Residential’s Excess MSR investments made through equity method investees: | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
Unpaid Principal Balance | Investee Interest in Excess MSR | New Residential Interest in Investees | Amortized Cost Basis(A) | Carrying Value(B) | Weighted Average Life (Years)(C) | |||||||||||||||
MSR Pool 6 | $ | 9,050,743 | 66.7 | % | 50 | % | $ | 36,286 | $ | 45,089 | 5.1 | |||||||||
MSR Pool 6 - Recapture | — | 66.7 | % | 50 | % | 5,951 | 8,551 | 12.2 | ||||||||||||
Agreement | ||||||||||||||||||||
MSR Pool 7 | 29,547,830 | 66.7 | % | 50 | % | 94,036 | 95,882 | 5.2 | ||||||||||||
MSR Pool 7 - Recapture | — | 66.7 | % | 50 | % | 12,209 | 24,136 | 12.4 | ||||||||||||
Agreement | ||||||||||||||||||||
MSR Pool 8 | 13,043,774 | 66.7 | % | 50 | % | 52,744 | 50,716 | 5.2 | ||||||||||||
MSR Pool 8 - Recapture | — | 66.7 | % | 50 | % | 4,707 | 12,630 | 12.1 | ||||||||||||
Agreement | ||||||||||||||||||||
MSR Pool 9 | 27,924,457 | 66.7 | % | 50 | % | 97,755 | 122,440 | 4.9 | ||||||||||||
MSR Pool 9 - Recapture | — | 66.7 | % | 50 | % | 29,343 | 30,134 | 12.1 | ||||||||||||
Agreement | ||||||||||||||||||||
MSR Pool 10(D) | 63,763,048 | 66.7-77.0% | 50 | % | 189,488 | 190,143 | 5.1 | |||||||||||||
MSR Pool 10 - Recapture | — | 66.7-77.0% | 50 | % | 13,038 | 10,546 | 12.6 | |||||||||||||
Agreement | ||||||||||||||||||||
MSR Pool 11 | 16,491,872 | 66.7 | % | 50 | % | 41,115 | 55,440 | 5.6 | ||||||||||||
MSR Pool 11 - Recapture | — | 66.7 | % | 50 | % | 22,640 | 10,059 | 13.1 | ||||||||||||
Agreement | ||||||||||||||||||||
$ | 159,821,724 | $ | 599,312 | $ | 655,766 | 6.2 | ||||||||||||||
(A) | Represents the amortized cost basis of the equity method investees in which New Residential holds a 50% interest. The amortized cost basis of the Recapture Agreements is determined based on the relative fair values of the Recapture Agreements and related Excess MSRs at the time they were acquired. | |||||||||||||||||||
(B) | Represents the carrying value of the Excess MSRs held in equity method investees, in which New Residential holds a 50% interest. Carrying value represents the fair value of the pools or Recapture Agreements, as applicable. | |||||||||||||||||||
(C) | The weighted average life represents the weighted average expected timing of the receipt of cash flows of each investment. | |||||||||||||||||||
(D) | Pool in which New Residential also invested in related servicer advances, including the basic fee component of the related MSR as of June 30, 2014 (Note 6). | |||||||||||||||||||
Summary of the geographic distribution of the underlying residential mortgage loans of Excess MSRs made through equity method investees | ' | |||||||||||||||||||
The table below summarizes the geographic distribution of the underlying residential mortgage loans of the Excess MSR investments made through equity method investees: | ||||||||||||||||||||
Percentage of Total Outstanding Unpaid Principal Amount as of | ||||||||||||||||||||
State Concentration | 30-Jun-14 | 31-Dec-13 | ||||||||||||||||||
California | 23.5 | % | 23.5 | % | ||||||||||||||||
Florida | 9.1 | % | 9.2 | % | ||||||||||||||||
New York | 5.5 | % | 5.3 | % | ||||||||||||||||
Texas | 4.9 | % | 4.9 | % | ||||||||||||||||
Georgia | 4 | % | 4 | % | ||||||||||||||||
New Jersey | 3.8 | % | 3.7 | % | ||||||||||||||||
Illinois | 3.5 | % | 3.5 | % | ||||||||||||||||
Maryland | 3.2 | % | 3.1 | % | ||||||||||||||||
Virginia | 3.2 | % | 3.1 | % | ||||||||||||||||
Washington | 2.8 | % | 2.8 | % | ||||||||||||||||
Other U.S. | 36.5 | % | 36.9 | % | ||||||||||||||||
100 | % | 100 | % |
INVESTMENTS_IN_SERVICER_ADVANC1
INVESTMENTS IN SERVICER ADVANCES (Tables) | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of investment in servicer advances | ' | |||||||||||||||||||||||||||
The following is a summary of the investments in servicer advances, including the right to the basic fee component of the related MSRs, made by the Buyer, which New Residential consolidates: | ||||||||||||||||||||||||||||
June 30, 2014 | Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||
Amortized Cost Basis | Carrying Value(A) | Weighted Average Discount Rate | Weighted Average Life (Years)(B) | Change in Fair Value Recorded in Other Income | ||||||||||||||||||||||||
Servicer advances | $ | 3,596,228 | $ | 3,679,105 | 5.6 | % | 3.8 | $ | 82,877 | |||||||||||||||||||
(A) | Carrying value represents the fair value of the investments in servicer advances, including the basic fee component of the related MSRs. | |||||||||||||||||||||||||||
(B) | Weighted Average Life represents the weighted average expected timing of the receipt of expected net cash flows for this investment. | |||||||||||||||||||||||||||
The following is additional information regarding the servicer advances, and related financing, of the Buyer, which New Residential consolidates: | ||||||||||||||||||||||||||||
Loan-to-Value | Cost of Funds(B) | |||||||||||||||||||||||||||
UPB of Underlying Residential Mortgage Loans | Outstanding Servicer Advances | Servicer Advances to UPB of Underlying Residential Mortgage Loans | Carrying Value of Notes Payable | Gross | Net(A) | Gross | Net | |||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||
Servicer advances(C) | $ | 102,159,164 | $ | 3,551,464 | 3.5 | % | $ | 3,265,530 | 91.9 | % | 90.8 | % | 3.3 | % | 2.2 | % | ||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Servicer advances(C) | $ | 43,444,216 | $ | 2,661,130 | 6.1 | % | $ | 2,390,778 | 89.8 | % | 88.6 | % | 4 | % | 2.3 | % | ||||||||||||
(A) | Ratio of face amount of borrowings to par amount of servicer advance collateral, net of an interest reserve maintained by the Buyer. | |||||||||||||||||||||||||||
(B) | Annualized measure of the cost associated with borrowings. Gross Cost of Funds primarily includes interest expense and facility fees. Net Cost of Funds excludes facility fees. | |||||||||||||||||||||||||||
(C) | The following types of advances comprise the investments in servicer advances: | |||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Principal and interest advances | $ | 1,282,504 | $ | 1,516,715 | ||||||||||||||||||||||||
Escrow advances (taxes and insurance advances) | 1,597,466 | 934,525 | ||||||||||||||||||||||||||
Foreclosure advances | 671,494 | 209,890 | ||||||||||||||||||||||||||
Total | $ | 3,551,464 | $ | 2,661,130 | ||||||||||||||||||||||||
Schedule of interest income - servicer advances | ' | |||||||||||||||||||||||||||
Interest income recognized by New Residential related to its investments in servicer advances was comprised of the following: | ||||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||
Interest income, gross of amounts attributable to servicer compensation | $ | 153,684 | ||||||||||||||||||||||||||
Amounts attributable to base servicer compensation | (49,306 | ) | ||||||||||||||||||||||||||
Amounts attributable to incentive servicer compensation | (1,555 | ) | ||||||||||||||||||||||||||
Interest income from investments in servicer advances | $ | 102,823 | ||||||||||||||||||||||||||
INVESTMENTS_IN_REAL_ESTATE_SEC1
INVESTMENTS IN REAL ESTATE SECURITIES (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||||||||
Schedule of Real Estate Securities | ' | |||||||||||||||||||||||||||||||||||||
The following is a summary of New Residential’s real estate securities as of June 30, 2014, all of which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired. | ||||||||||||||||||||||||||||||||||||||
Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Gains | Losses | Carrying Value(A) | Number of Securities | Rating(B) | Coupon | Yield | Life (Years)(C) | Principal Subordination(D) | |||||||||||||||||||||||||||
Agency ARM | $ | 1,159,363 | $ | 1,244,864 | $ | 6,179 | $ | (4,031 | ) | $ | 1,247,012 | 120 | AAA | 3.12 | % | 1.5 | % | 4.7 | N/A | |||||||||||||||||||
RMBS(E)(F) | ||||||||||||||||||||||||||||||||||||||
Non-Agency | 348,232 | 210,051 | 9,186 | (2,346 | ) | 216,891 | 77 | CCC | 1.75 | % | 7.14 | % | 8.5 | 11 | % | |||||||||||||||||||||||
RMBS | ||||||||||||||||||||||||||||||||||||||
Total/Weighted | $ | 1,507,595 | $ | 1,454,915 | $ | 15,365 | $ | (6,377 | ) | $ | 1,463,903 | 197 | AA- | 2.81 | % | 2.8 | % | 5.6 | ||||||||||||||||||||
Average(G) | ||||||||||||||||||||||||||||||||||||||
(A) | Fair value, which is equal to carrying value for all securities. See Note 12 regarding the estimation of fair value. | |||||||||||||||||||||||||||||||||||||
(B) | Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. This excludes the ratings of the collateral underlying six bonds for which New Residential was unable to obtain rating information. For each security rated by multiple rating agencies, the lowest rating is used. New Residential used an implied AAA rating for the Agency ARM RMBS. Ratings provided were determined by third party rating agencies, and represent the most recent credit ratings available as of the reporting date and may not be current. | |||||||||||||||||||||||||||||||||||||
(C) | The weighted average life is based on the timing of expected principal reduction on the assets. | |||||||||||||||||||||||||||||||||||||
(D) | Percentage of the outstanding face amount of securities that is subordinate to New Residential’s investments. | |||||||||||||||||||||||||||||||||||||
(E) | Includes securities issued or guaranteed by U.S. Government agencies such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”). | |||||||||||||||||||||||||||||||||||||
(F) | Amortized cost basis and carrying value include principal receivable of $12.5 million. | |||||||||||||||||||||||||||||||||||||
(G) | The total outstanding face amount was $64.1 million for fixed rate securities and $1.4 billion for floating rate securities. | |||||||||||||||||||||||||||||||||||||
Schedule of Real Estate Securities in an Unrealized Loss Position | ' | |||||||||||||||||||||||||||||||||||||
The following table summarizes New Residential’s securities in an unrealized loss position as of June 30, 2014. | ||||||||||||||||||||||||||||||||||||||
Amortized Cost Basis | Weighted Average | |||||||||||||||||||||||||||||||||||||
Securities in an Unrealized Loss Position | Outstanding Face Amount | Before Impairment | Other-Than- | After Impairment | Gross Unrealized Losses | Carrying Value | Number of Securities | Rating(B) | Coupon | Yield | Life | |||||||||||||||||||||||||||
Temporary Impairment(A) | (Years) | |||||||||||||||||||||||||||||||||||||
Less than Twelve | $ | 477,511 | $ | 450,308 | $ | (332 | ) | $ | 449,976 | $ | (4,838 | ) | $ | 445,138 | 58 | AA- | 3.15 | % | 2.92 | % | 4.9 | |||||||||||||||||
Months | ||||||||||||||||||||||||||||||||||||||
Twelve or More | 116,021 | 124,285 | (612 | ) | 123,673 | (1,539 | ) | 122,134 | 13 | AA+ | 3.34 | % | 1.51 | % | 3.3 | |||||||||||||||||||||||
Months | ||||||||||||||||||||||||||||||||||||||
Total/Weighted | $ | 593,532 | $ | 574,593 | $ | (944 | ) | $ | 573,649 | $ | (6,377 | ) | $ | 567,272 | 71 | AA | 3.19 | % | 2.65 | % | 4.6 | |||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||
(A) | This amount represents other-than-temporary impairment recorded on securities that are in an unrealized loss position as of June 30, 2014. | |||||||||||||||||||||||||||||||||||||
(B) | The weighted average rating of securities in an unrealized loss position for less than twelve months excludes the rating of five bonds for which New Residential was unable to obtain rating information. | |||||||||||||||||||||||||||||||||||||
New Residential performed an assessment of all of its debt securities that are in an unrealized loss position (an unrealized loss position exists when a security’s amortized cost basis, excluding the effect of OTTI, exceeds its fair value) and determined the following: | ||||||||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Unrealized Losses | ||||||||||||||||||||||||||||||||||||||
Fair Value | Amortized Cost Basis After Impairment | Credit(A) | Non-Credit(B) | |||||||||||||||||||||||||||||||||||
Securities New Residential intends to sell(C) | $ | 155,599 | $ | 155,871 | $ | (1,073 | ) | $ | (272 | ) | ||||||||||||||||||||||||||||
Securities New Residential is more likely than not to be | — | — | — | N/A | ||||||||||||||||||||||||||||||||||
required to sell(D) | ||||||||||||||||||||||||||||||||||||||
Securities New Residential has no intent to sell and is not | ||||||||||||||||||||||||||||||||||||||
more likely than not to be required to sell: | ||||||||||||||||||||||||||||||||||||||
Credit impaired securities | 144,118 | 145,212 | (974 | ) | (1,094 | ) | ||||||||||||||||||||||||||||||||
Non credit impaired securities | 321,508 | 326,519 | — | (5,011 | ) | |||||||||||||||||||||||||||||||||
Total debt securities in an unrealized loss position | $ | 621,225 | $ | 627,602 | $ | (2,047 | ) | $ | (6,377 | ) | ||||||||||||||||||||||||||||
(A) | This amount is required to be recorded as other-than-temporary impairment through earnings. In measuring the portion of credit losses, New Residential’s management estimates the expected cash flow for each of the securities. This evaluation includes a review of the credit status and the performance of the collateral supporting those securities, including the credit of the issuer, key terms of the securities and the effect of local, industry and broader economic trends. Significant inputs in estimating the cash flows include management’s expectations of prepayment speeds, default rates and loss severities. Credit losses are measured as the decline in the present value of the expected future cash flows discounted at the investment’s effective interest rate. | |||||||||||||||||||||||||||||||||||||
(B) | This amount represents unrealized losses on securities that are due to non-credit factors and recorded through other comprehensive income. | |||||||||||||||||||||||||||||||||||||
(C) | A portion of securities New Residential intends to sell have a fair value equal to their amortized cost basis after impairment, and, therefore do not have unrealized losses reflected in other comprehensive income as of June 30, 2014. | |||||||||||||||||||||||||||||||||||||
(D) | New Residential may, at times, be more likely than not to be required to sell certain securities for liquidity purposes. While the amount of the securities to be sold may be an estimate, and the securities to be sold have not yet been identified, New Residential must make its best estimate, which is subject to significant judgment regarding future events, and may differ materially from actual future sales. | |||||||||||||||||||||||||||||||||||||
Schedule of credit losses on debt securities | ' | |||||||||||||||||||||||||||||||||||||
The following table summarizes the activity related to credit losses on debt securities: | ||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Beginning balance of credit losses on debt securities for which a portion of an OTTI was | $ | 2,071 | ||||||||||||||||||||||||||||||||||||
recognized in other comprehensive income | ||||||||||||||||||||||||||||||||||||||
Increases to credit losses on securities for which an OTTI was previously recognized and a portion | 464 | |||||||||||||||||||||||||||||||||||||
of an OTTI was recognized in other comprehensive income | ||||||||||||||||||||||||||||||||||||||
Additions for credit losses on securities for which an OTTI was not previously recognized | 151 | |||||||||||||||||||||||||||||||||||||
Reductions for securities for which the amount previously recognized in other comprehensive | (1,073 | ) | ||||||||||||||||||||||||||||||||||||
income was recognized in earnings because the entity intends to sell the security or more likely | ||||||||||||||||||||||||||||||||||||||
than not will be required to sell the security before recovery of its amortized cost basis | ||||||||||||||||||||||||||||||||||||||
Reduction for credit losses on securities for which no OTTI was recognized in other | (408 | ) | ||||||||||||||||||||||||||||||||||||
comprehensive income at the current measurement date | ||||||||||||||||||||||||||||||||||||||
Reduction for securities sold during the period | (231 | ) | ||||||||||||||||||||||||||||||||||||
Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized | $ | 974 | ||||||||||||||||||||||||||||||||||||
in other comprehensive income | ||||||||||||||||||||||||||||||||||||||
Schedule of geographic distribution of collateral securing non-agency RMBS | ' | |||||||||||||||||||||||||||||||||||||
The table below summarizes the geographic distribution of the collateral securing New Residential’s Non-Agency RMBS as of June 30, 2014: | ||||||||||||||||||||||||||||||||||||||
Geographic Location | Outstanding Face Amount | Percentage of Total Outstanding | ||||||||||||||||||||||||||||||||||||
Western U.S. | $ | 85,243 | 24.5 | % | ||||||||||||||||||||||||||||||||||
Southeastern U.S. | 73,322 | 21 | % | |||||||||||||||||||||||||||||||||||
Northeastern U.S. | 61,194 | 17.6 | % | |||||||||||||||||||||||||||||||||||
Midwestern U.S. | 58,722 | 16.9 | % | |||||||||||||||||||||||||||||||||||
Southwestern U.S. | 32,368 | 9.3 | % | |||||||||||||||||||||||||||||||||||
Other(A) | 37,383 | 10.7 | % | |||||||||||||||||||||||||||||||||||
$ | 348,232 | 100 | % | |||||||||||||||||||||||||||||||||||
(A) | Represents collateral for which New Residential was unable to obtain geographic information. | |||||||||||||||||||||||||||||||||||||
Schedule of Real Estate Securities with a deteriorated credit quality rating | ' | |||||||||||||||||||||||||||||||||||||
The following is the outstanding face amount and carrying value for securities, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments: | ||||||||||||||||||||||||||||||||||||||
Outstanding Face Amount | Carrying Value | |||||||||||||||||||||||||||||||||||||
June 30, 2014 | $ | 186,186 | $ | 144,836 | ||||||||||||||||||||||||||||||||||
December 31, 2013 | $ | 729,895 | $ | 483,680 | ||||||||||||||||||||||||||||||||||
Schedule of accretable yield of real estate securities | ' | |||||||||||||||||||||||||||||||||||||
INVESTMENTS IN REAL ESTATE SECURITIES | ||||||||||||||||||||||||||||||||||||||
During the six months ended June 30, 2014, New Residential acquired $1.4 billion face amount of Non-Agency RMBS for approximately $882.0 million and $297.8 million face amount of Agency ARM RMBS for approximately $316.9 million. New Residential sold Non-Agency RMBS with a face amount of approximately $1.9 billion and an amortized cost basis of approximately $1.2 billion for approximately $1.3 billion, recording a gain on sale of approximately $60.3 million. Furthermore, New Residential sold Agency ARM RMBS with a face amount of $306.0 million and an amortized cost basis of approximately $322.9 million for approximately $324.4 million, recording a gain on sale of approximately $1.5 million. | ||||||||||||||||||||||||||||||||||||||
On March 6, 2014, Merrill Lynch, Pierce, Fenner & Smith Incorporated and New Residential entered into an agreement pursuant to which New Residential agreed to purchase approximately $625 million face amount of Non-Agency residential mortgage securities for approximately $553 million. The purchased securities were issued by the American General Mortgage Loan Trust 2009-1 and represent 75% of the mezzanine and subordinate tranches (the "2009-1 Retained Certificates") of a securitization sponsored by Third Street Funding LLC, an affiliate of Springleaf. The securitization, including the 2009-1 Retained Certificates, is collateralized by residential mortgage loans with a face amount of approximately $0.9 billion. On May 30, 2014, New Residential sold the 2009-1 Retained Certificates for approximately $598.5 million and recorded a gain of approximately $39.7 million. At the time of sale, the 2009-1 Retained Certificates had an amortized cost basis of approximately $558.8 million. The purchase and sale of the 2009-1 Retained Certificates is included in the purchases and sales described above. | ||||||||||||||||||||||||||||||||||||||
On May 27, 2014, New Residential exercised its cleanup call option related to sixteen Non-Agency RMBS deals and purchased and retained performing and non-performing residential mortgage loans. New Residential owned $17.4 million face amount in these deals and received par on these securities, which had an amortized cost basis of $12.0 million prior to the repayment. See Note 8 for further details on this transaction. | ||||||||||||||||||||||||||||||||||||||
The following is a summary of New Residential’s real estate securities as of June 30, 2014, all of which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired. | ||||||||||||||||||||||||||||||||||||||
Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Gains | Losses | Carrying Value(A) | Number of Securities | Rating(B) | Coupon | Yield | Life (Years)(C) | Principal Subordination(D) | |||||||||||||||||||||||||||
Agency ARM | $ | 1,159,363 | $ | 1,244,864 | $ | 6,179 | $ | (4,031 | ) | $ | 1,247,012 | 120 | AAA | 3.12 | % | 1.5 | % | 4.7 | N/A | |||||||||||||||||||
RMBS(E)(F) | ||||||||||||||||||||||||||||||||||||||
Non-Agency | 348,232 | 210,051 | 9,186 | (2,346 | ) | 216,891 | 77 | CCC | 1.75 | % | 7.14 | % | 8.5 | 11 | % | |||||||||||||||||||||||
RMBS | ||||||||||||||||||||||||||||||||||||||
Total/Weighted | $ | 1,507,595 | $ | 1,454,915 | $ | 15,365 | $ | (6,377 | ) | $ | 1,463,903 | 197 | AA- | 2.81 | % | 2.8 | % | 5.6 | ||||||||||||||||||||
Average(G) | ||||||||||||||||||||||||||||||||||||||
(A) | Fair value, which is equal to carrying value for all securities. See Note 12 regarding the estimation of fair value. | |||||||||||||||||||||||||||||||||||||
(B) | Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. This excludes the ratings of the collateral underlying six bonds for which New Residential was unable to obtain rating information. For each security rated by multiple rating agencies, the lowest rating is used. New Residential used an implied AAA rating for the Agency ARM RMBS. Ratings provided were determined by third party rating agencies, and represent the most recent credit ratings available as of the reporting date and may not be current. | |||||||||||||||||||||||||||||||||||||
(C) | The weighted average life is based on the timing of expected principal reduction on the assets. | |||||||||||||||||||||||||||||||||||||
(D) | Percentage of the outstanding face amount of securities that is subordinate to New Residential’s investments. | |||||||||||||||||||||||||||||||||||||
(E) | Includes securities issued or guaranteed by U.S. Government agencies such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”). | |||||||||||||||||||||||||||||||||||||
(F) | Amortized cost basis and carrying value include principal receivable of $12.5 million. | |||||||||||||||||||||||||||||||||||||
(G) | The total outstanding face amount was $64.1 million for fixed rate securities and $1.4 billion for floating rate securities. | |||||||||||||||||||||||||||||||||||||
Unrealized losses that are considered other than temporary are recognized currently in earnings. During the six months ended June 30, 2014, New Residential recorded other-than-temporary impairment charges (“OTTI”) of $0.9 million with respect to real estate securities. Any remaining unrealized losses on New Residential’s securities were primarily the result of changes in market factors, rather than issue-specific credit impairment. New Residential performed analyses in relation to such securities, using management’s best estimate of their cash flows, which support its belief that the carrying values of such securities were fully recoverable over their expected holding period. New Residential has no intent to sell, and is not more likely than not to be required to sell, these securities. | ||||||||||||||||||||||||||||||||||||||
The following table summarizes New Residential’s securities in an unrealized loss position as of June 30, 2014. | ||||||||||||||||||||||||||||||||||||||
Amortized Cost Basis | Weighted Average | |||||||||||||||||||||||||||||||||||||
Securities in an Unrealized Loss Position | Outstanding Face Amount | Before Impairment | Other-Than- | After Impairment | Gross Unrealized Losses | Carrying Value | Number of Securities | Rating(B) | Coupon | Yield | Life | |||||||||||||||||||||||||||
Temporary Impairment(A) | (Years) | |||||||||||||||||||||||||||||||||||||
Less than Twelve | $ | 477,511 | $ | 450,308 | $ | (332 | ) | $ | 449,976 | $ | (4,838 | ) | $ | 445,138 | 58 | AA- | 3.15 | % | 2.92 | % | 4.9 | |||||||||||||||||
Months | ||||||||||||||||||||||||||||||||||||||
Twelve or More | 116,021 | 124,285 | (612 | ) | 123,673 | (1,539 | ) | 122,134 | 13 | AA+ | 3.34 | % | 1.51 | % | 3.3 | |||||||||||||||||||||||
Months | ||||||||||||||||||||||||||||||||||||||
Total/Weighted | $ | 593,532 | $ | 574,593 | $ | (944 | ) | $ | 573,649 | $ | (6,377 | ) | $ | 567,272 | 71 | AA | 3.19 | % | 2.65 | % | 4.6 | |||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||
(A) | This amount represents other-than-temporary impairment recorded on securities that are in an unrealized loss position as of June 30, 2014. | |||||||||||||||||||||||||||||||||||||
(B) | The weighted average rating of securities in an unrealized loss position for less than twelve months excludes the rating of five bonds for which New Residential was unable to obtain rating information. | |||||||||||||||||||||||||||||||||||||
New Residential performed an assessment of all of its debt securities that are in an unrealized loss position (an unrealized loss position exists when a security’s amortized cost basis, excluding the effect of OTTI, exceeds its fair value) and determined the following: | ||||||||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Unrealized Losses | ||||||||||||||||||||||||||||||||||||||
Fair Value | Amortized Cost Basis After Impairment | Credit(A) | Non-Credit(B) | |||||||||||||||||||||||||||||||||||
Securities New Residential intends to sell(C) | $ | 155,599 | $ | 155,871 | $ | (1,073 | ) | $ | (272 | ) | ||||||||||||||||||||||||||||
Securities New Residential is more likely than not to be | — | — | — | N/A | ||||||||||||||||||||||||||||||||||
required to sell(D) | ||||||||||||||||||||||||||||||||||||||
Securities New Residential has no intent to sell and is not | ||||||||||||||||||||||||||||||||||||||
more likely than not to be required to sell: | ||||||||||||||||||||||||||||||||||||||
Credit impaired securities | 144,118 | 145,212 | (974 | ) | (1,094 | ) | ||||||||||||||||||||||||||||||||
Non credit impaired securities | 321,508 | 326,519 | — | (5,011 | ) | |||||||||||||||||||||||||||||||||
Total debt securities in an unrealized loss position | $ | 621,225 | $ | 627,602 | $ | (2,047 | ) | $ | (6,377 | ) | ||||||||||||||||||||||||||||
(A) | This amount is required to be recorded as other-than-temporary impairment through earnings. In measuring the portion of credit losses, New Residential’s management estimates the expected cash flow for each of the securities. This evaluation includes a review of the credit status and the performance of the collateral supporting those securities, including the credit of the issuer, key terms of the securities and the effect of local, industry and broader economic trends. Significant inputs in estimating the cash flows include management’s expectations of prepayment speeds, default rates and loss severities. Credit losses are measured as the decline in the present value of the expected future cash flows discounted at the investment’s effective interest rate. | |||||||||||||||||||||||||||||||||||||
(B) | This amount represents unrealized losses on securities that are due to non-credit factors and recorded through other comprehensive income. | |||||||||||||||||||||||||||||||||||||
(C) | A portion of securities New Residential intends to sell have a fair value equal to their amortized cost basis after impairment, and, therefore do not have unrealized losses reflected in other comprehensive income as of June 30, 2014. | |||||||||||||||||||||||||||||||||||||
(D) | New Residential may, at times, be more likely than not to be required to sell certain securities for liquidity purposes. While the amount of the securities to be sold may be an estimate, and the securities to be sold have not yet been identified, New Residential must make its best estimate, which is subject to significant judgment regarding future events, and may differ materially from actual future sales. | |||||||||||||||||||||||||||||||||||||
The following table summarizes the activity related to credit losses on debt securities: | ||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Beginning balance of credit losses on debt securities for which a portion of an OTTI was | $ | 2,071 | ||||||||||||||||||||||||||||||||||||
recognized in other comprehensive income | ||||||||||||||||||||||||||||||||||||||
Increases to credit losses on securities for which an OTTI was previously recognized and a portion | 464 | |||||||||||||||||||||||||||||||||||||
of an OTTI was recognized in other comprehensive income | ||||||||||||||||||||||||||||||||||||||
Additions for credit losses on securities for which an OTTI was not previously recognized | 151 | |||||||||||||||||||||||||||||||||||||
Reductions for securities for which the amount previously recognized in other comprehensive | (1,073 | ) | ||||||||||||||||||||||||||||||||||||
income was recognized in earnings because the entity intends to sell the security or more likely | ||||||||||||||||||||||||||||||||||||||
than not will be required to sell the security before recovery of its amortized cost basis | ||||||||||||||||||||||||||||||||||||||
Reduction for credit losses on securities for which no OTTI was recognized in other | (408 | ) | ||||||||||||||||||||||||||||||||||||
comprehensive income at the current measurement date | ||||||||||||||||||||||||||||||||||||||
Reduction for securities sold during the period | (231 | ) | ||||||||||||||||||||||||||||||||||||
Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized | $ | 974 | ||||||||||||||||||||||||||||||||||||
in other comprehensive income | ||||||||||||||||||||||||||||||||||||||
The table below summarizes the geographic distribution of the collateral securing New Residential’s Non-Agency RMBS as of June 30, 2014: | ||||||||||||||||||||||||||||||||||||||
Geographic Location | Outstanding Face Amount | Percentage of Total Outstanding | ||||||||||||||||||||||||||||||||||||
Western U.S. | $ | 85,243 | 24.5 | % | ||||||||||||||||||||||||||||||||||
Southeastern U.S. | 73,322 | 21 | % | |||||||||||||||||||||||||||||||||||
Northeastern U.S. | 61,194 | 17.6 | % | |||||||||||||||||||||||||||||||||||
Midwestern U.S. | 58,722 | 16.9 | % | |||||||||||||||||||||||||||||||||||
Southwestern U.S. | 32,368 | 9.3 | % | |||||||||||||||||||||||||||||||||||
Other(A) | 37,383 | 10.7 | % | |||||||||||||||||||||||||||||||||||
$ | 348,232 | 100 | % | |||||||||||||||||||||||||||||||||||
(A) | Represents collateral for which New Residential was unable to obtain geographic information. | |||||||||||||||||||||||||||||||||||||
New Residential evaluates the credit quality of its real estate securities, as of the acquisition date, for evidence of credit quality deterioration. As a result, New Residential identified a population of real estate securities for which it was determined that it was probable that New Residential would be unable to collect all contractually required payments. For securities acquired during the six months ended June 30, 2014, the face amount of these real estate securities was $361.7 million, with total expected cash flows of $339.4 million and a fair value of $258.0 million on the dates that New Residential purchased the respective securities. | ||||||||||||||||||||||||||||||||||||||
The following is the outstanding face amount and carrying value for securities, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments: | ||||||||||||||||||||||||||||||||||||||
Outstanding Face Amount | Carrying Value | |||||||||||||||||||||||||||||||||||||
June 30, 2014 | $ | 186,186 | $ | 144,836 | ||||||||||||||||||||||||||||||||||
December 31, 2013 | $ | 729,895 | $ | 483,680 | ||||||||||||||||||||||||||||||||||
The following is a summary of the changes in accretable yield for these securities: | ||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 143,067 | ||||||||||||||||||||||||||||||||||||
Additions | 81,365 | |||||||||||||||||||||||||||||||||||||
Accretion | (8,175 | ) | ||||||||||||||||||||||||||||||||||||
Reclassifications from non-accretable difference | (778 | ) | ||||||||||||||||||||||||||||||||||||
Disposals | (155,287 | ) | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2014 | $ | 60,192 | ||||||||||||||||||||||||||||||||||||
The following is a summary of the changes in accretable yield for these loans: | ||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | — | ||||||||||||||||||||||||||||||||||||
Additions | 98,692 | |||||||||||||||||||||||||||||||||||||
Accretion | (4,276 | ) | ||||||||||||||||||||||||||||||||||||
Reclassifications from non-accretable difference(A) | 1,349 | |||||||||||||||||||||||||||||||||||||
Balance at June 30, 2014 | $ | 95,765 | ||||||||||||||||||||||||||||||||||||
(A) Represents a probable and significant increase in cash flows previously expected to be collected. |
INVESTMENTS_IN_RESIDENTIAL_MOR1
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||||||||||||
Schedule of residential mortgage loans | ' | |||||||||||||||||||||||||||||||||||||
The following table presents certain information regarding New Residential's residential mortgage loans outstanding by loan type, excluding REO and linked transactions, at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Outstanding Face Amount | Carrying | Loan | Weighted Average Yield | Weighted Average Life (Years)(A) | Floating Rate Loans as a % of Face Amount | Loan to Value Ratio ("LTV")(B) | Weighted Avg. Delinquency(C) | December 31, 2013 Carrying Value | ||||||||||||||||||||||||||||||
Value | Count | |||||||||||||||||||||||||||||||||||||
Loan Type | ||||||||||||||||||||||||||||||||||||||
Reverse Mortgage Loans(D) | $ | 53,085 | $ | 30,794 | 288 | 10.3 | % | 3.7 | 20.8 | % | 183 | % | 80.9 | % | $ | 33,539 | ||||||||||||||||||||||
Performing Loans(E)(G) | 72,056 | 61,008 | 357 | 6.4 | % | 3.9 | 10.9 | % | 107 | % | 3.5 | % | — | |||||||||||||||||||||||||
Purchased Credit Impaired ("PCI") Loans(F) | 576,777 | 425,622 | 1,880 | 7.4 | % | 2.2 | 49.8 | % | 111 | % | 93.7 | % | — | |||||||||||||||||||||||||
Total Residential Mortgage Loans | $ | 701,918 | $ | 517,424 | 2,525 | 7.5 | % | 2.5 | 43.5 | % | 115 | % | 82.3 | % | $ | 33,539 | ||||||||||||||||||||||
(A) | The weighted average life is based on the expected timing of the receipt of cash flows. | |||||||||||||||||||||||||||||||||||||
(B) | LTV refers to the ratio comparing the loan’s unpaid principal balance to the value of the collateral property. | |||||||||||||||||||||||||||||||||||||
(C) | Represents the percentage of underlying loans that are 30+ days delinquent, none of which are on non-accrual status. New Residential records REO received in satisfaction of unpaid loans within Other Assets in its Condensed Consolidated Balance Sheet (Note 2). | |||||||||||||||||||||||||||||||||||||
(D) | Represents a 70% interest New Residential holds in reverse mortgage loans. The average loan balance outstanding based on total UPB is $0.3 million. 79% of these loans have reached a termination event. As a result, the borrower can no longer make draws on these loans. Each loan matures upon the occurrence of a termination event. | |||||||||||||||||||||||||||||||||||||
(E) | Represents loans that are current or less than 30 days past due at acquisition. | |||||||||||||||||||||||||||||||||||||
(F) | Represents loans that are 30 days or more past due at acquisition. | |||||||||||||||||||||||||||||||||||||
Schedule of geographic distribution of residential mortgage loans | ' | |||||||||||||||||||||||||||||||||||||
The table below summarizes the geographic distribution of the underlying residential mortgage loans as of June 30, 2014: | ||||||||||||||||||||||||||||||||||||||
Percentage of Total Outstanding Unpaid Principal Amount as of | ||||||||||||||||||||||||||||||||||||||
State Concentration | 30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||
California | 24.8 | % | 5.7 | % | ||||||||||||||||||||||||||||||||||
New York | 18.2 | % | 22 | % | ||||||||||||||||||||||||||||||||||
New Jersey | 8.5 | % | 6.9 | % | ||||||||||||||||||||||||||||||||||
Illinois | 4.5 | % | 7.7 | % | ||||||||||||||||||||||||||||||||||
Florida | 4.3 | % | 21.2 | % | ||||||||||||||||||||||||||||||||||
Maryland | 4 | % | 2.8 | % | ||||||||||||||||||||||||||||||||||
Connecticut | 3.7 | % | 3.9 | % | ||||||||||||||||||||||||||||||||||
Massachusetts | 3.5 | % | 4.1 | % | ||||||||||||||||||||||||||||||||||
Washington | 3.1 | % | 3.9 | % | ||||||||||||||||||||||||||||||||||
Pennsylvania | 2.5 | % | 0.9 | % | ||||||||||||||||||||||||||||||||||
Other U.S. | 22.9 | % | 20.9 | % | ||||||||||||||||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||||||||||||||||
Schedule of activity in carrying value and valuation allowance of residential mortgage loans | ' | |||||||||||||||||||||||||||||||||||||
Activities related to the carrying value of reverse mortgage loans and performing loans were as follows: | ||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Reverse Mortgage Loans | Performing Loans | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 33,539 | $ | — | ||||||||||||||||||||||||||||||||||
Purchases/additional fundings | — | 60,904 | ||||||||||||||||||||||||||||||||||||
Proceeds from repayments | (1,307 | ) | — | |||||||||||||||||||||||||||||||||||
Accretion of loan discount and other amortization | 1,364 | — | ||||||||||||||||||||||||||||||||||||
Transfer of loans to REO | (2,375 | ) | — | |||||||||||||||||||||||||||||||||||
Valuation provision on loans | (427 | ) | N/A | |||||||||||||||||||||||||||||||||||
Allowance for loan losses | N/A | (30 | ) | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2014 | $ | 30,794 | $ | 60,874 | ||||||||||||||||||||||||||||||||||
Allowance for credit losses | ' | |||||||||||||||||||||||||||||||||||||
Activities related to the valuation provision on reverse mortgage loans and allowance for loan losses on performing loans were as follows: | ||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Reverse Mortgage Loans | Performing Loans | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 461 | $ | — | ||||||||||||||||||||||||||||||||||
Charge-offs(A) | — | — | ||||||||||||||||||||||||||||||||||||
Valuation provision on loans | 427 | N/A | ||||||||||||||||||||||||||||||||||||
Allowance for loan losses(B) | N/A | 30 | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2014 | $ | 888 | $ | 30 | ||||||||||||||||||||||||||||||||||
(A) | Loans, other than PCI loans, are generally charged off or charged down to the net realizable value of the collateral (i.e., fair value less costs to sell), with an offset to the allowance for loan losses, when available information confirms that loans are uncollectible. | |||||||||||||||||||||||||||||||||||||
(B) | Based on an analysis of collective borrower performance, credit ratings of borrowers, loan-to-value ratios, estimated value of the underlying collateral, key terms of the loans and historical and anticipated trends in defaults and loss severities at a pool level. | |||||||||||||||||||||||||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Table Text Block] | ' | |||||||||||||||||||||||||||||||||||||
The following is the contractually required payments receivable, cash flows expected to be collected, and fair value at acquisition date for loans acquired during the six months ended June 30, 2014: | ||||||||||||||||||||||||||||||||||||||
Contractually Required Payments Receivable | Cash Flows Expected to be Collected | Fair Value | ||||||||||||||||||||||||||||||||||||
As of Acquisition Date | $ | 1,084,324 | $ | 521,341 | $ | 422,649 | ||||||||||||||||||||||||||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Information about Loans | ' | |||||||||||||||||||||||||||||||||||||
The following is the unpaid principal balance and carrying value for loans, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments: | ||||||||||||||||||||||||||||||||||||||
Unpaid Principal Balance | Carrying Value | |||||||||||||||||||||||||||||||||||||
June 30, 2014 | $ | 576,777 | $ | 425,622 | ||||||||||||||||||||||||||||||||||
December 31, 2013 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Schedule of accretable yield of real estate securities | ' | |||||||||||||||||||||||||||||||||||||
INVESTMENTS IN REAL ESTATE SECURITIES | ||||||||||||||||||||||||||||||||||||||
During the six months ended June 30, 2014, New Residential acquired $1.4 billion face amount of Non-Agency RMBS for approximately $882.0 million and $297.8 million face amount of Agency ARM RMBS for approximately $316.9 million. New Residential sold Non-Agency RMBS with a face amount of approximately $1.9 billion and an amortized cost basis of approximately $1.2 billion for approximately $1.3 billion, recording a gain on sale of approximately $60.3 million. Furthermore, New Residential sold Agency ARM RMBS with a face amount of $306.0 million and an amortized cost basis of approximately $322.9 million for approximately $324.4 million, recording a gain on sale of approximately $1.5 million. | ||||||||||||||||||||||||||||||||||||||
On March 6, 2014, Merrill Lynch, Pierce, Fenner & Smith Incorporated and New Residential entered into an agreement pursuant to which New Residential agreed to purchase approximately $625 million face amount of Non-Agency residential mortgage securities for approximately $553 million. The purchased securities were issued by the American General Mortgage Loan Trust 2009-1 and represent 75% of the mezzanine and subordinate tranches (the "2009-1 Retained Certificates") of a securitization sponsored by Third Street Funding LLC, an affiliate of Springleaf. The securitization, including the 2009-1 Retained Certificates, is collateralized by residential mortgage loans with a face amount of approximately $0.9 billion. On May 30, 2014, New Residential sold the 2009-1 Retained Certificates for approximately $598.5 million and recorded a gain of approximately $39.7 million. At the time of sale, the 2009-1 Retained Certificates had an amortized cost basis of approximately $558.8 million. The purchase and sale of the 2009-1 Retained Certificates is included in the purchases and sales described above. | ||||||||||||||||||||||||||||||||||||||
On May 27, 2014, New Residential exercised its cleanup call option related to sixteen Non-Agency RMBS deals and purchased and retained performing and non-performing residential mortgage loans. New Residential owned $17.4 million face amount in these deals and received par on these securities, which had an amortized cost basis of $12.0 million prior to the repayment. See Note 8 for further details on this transaction. | ||||||||||||||||||||||||||||||||||||||
The following is a summary of New Residential’s real estate securities as of June 30, 2014, all of which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired. | ||||||||||||||||||||||||||||||||||||||
Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Gains | Losses | Carrying Value(A) | Number of Securities | Rating(B) | Coupon | Yield | Life (Years)(C) | Principal Subordination(D) | |||||||||||||||||||||||||||
Agency ARM | $ | 1,159,363 | $ | 1,244,864 | $ | 6,179 | $ | (4,031 | ) | $ | 1,247,012 | 120 | AAA | 3.12 | % | 1.5 | % | 4.7 | N/A | |||||||||||||||||||
RMBS(E)(F) | ||||||||||||||||||||||||||||||||||||||
Non-Agency | 348,232 | 210,051 | 9,186 | (2,346 | ) | 216,891 | 77 | CCC | 1.75 | % | 7.14 | % | 8.5 | 11 | % | |||||||||||||||||||||||
RMBS | ||||||||||||||||||||||||||||||||||||||
Total/Weighted | $ | 1,507,595 | $ | 1,454,915 | $ | 15,365 | $ | (6,377 | ) | $ | 1,463,903 | 197 | AA- | 2.81 | % | 2.8 | % | 5.6 | ||||||||||||||||||||
Average(G) | ||||||||||||||||||||||||||||||||||||||
(A) | Fair value, which is equal to carrying value for all securities. See Note 12 regarding the estimation of fair value. | |||||||||||||||||||||||||||||||||||||
(B) | Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. This excludes the ratings of the collateral underlying six bonds for which New Residential was unable to obtain rating information. For each security rated by multiple rating agencies, the lowest rating is used. New Residential used an implied AAA rating for the Agency ARM RMBS. Ratings provided were determined by third party rating agencies, and represent the most recent credit ratings available as of the reporting date and may not be current. | |||||||||||||||||||||||||||||||||||||
(C) | The weighted average life is based on the timing of expected principal reduction on the assets. | |||||||||||||||||||||||||||||||||||||
(D) | Percentage of the outstanding face amount of securities that is subordinate to New Residential’s investments. | |||||||||||||||||||||||||||||||||||||
(E) | Includes securities issued or guaranteed by U.S. Government agencies such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”). | |||||||||||||||||||||||||||||||||||||
(F) | Amortized cost basis and carrying value include principal receivable of $12.5 million. | |||||||||||||||||||||||||||||||||||||
(G) | The total outstanding face amount was $64.1 million for fixed rate securities and $1.4 billion for floating rate securities. | |||||||||||||||||||||||||||||||||||||
Unrealized losses that are considered other than temporary are recognized currently in earnings. During the six months ended June 30, 2014, New Residential recorded other-than-temporary impairment charges (“OTTI”) of $0.9 million with respect to real estate securities. Any remaining unrealized losses on New Residential’s securities were primarily the result of changes in market factors, rather than issue-specific credit impairment. New Residential performed analyses in relation to such securities, using management’s best estimate of their cash flows, which support its belief that the carrying values of such securities were fully recoverable over their expected holding period. New Residential has no intent to sell, and is not more likely than not to be required to sell, these securities. | ||||||||||||||||||||||||||||||||||||||
The following table summarizes New Residential’s securities in an unrealized loss position as of June 30, 2014. | ||||||||||||||||||||||||||||||||||||||
Amortized Cost Basis | Weighted Average | |||||||||||||||||||||||||||||||||||||
Securities in an Unrealized Loss Position | Outstanding Face Amount | Before Impairment | Other-Than- | After Impairment | Gross Unrealized Losses | Carrying Value | Number of Securities | Rating(B) | Coupon | Yield | Life | |||||||||||||||||||||||||||
Temporary Impairment(A) | (Years) | |||||||||||||||||||||||||||||||||||||
Less than Twelve | $ | 477,511 | $ | 450,308 | $ | (332 | ) | $ | 449,976 | $ | (4,838 | ) | $ | 445,138 | 58 | AA- | 3.15 | % | 2.92 | % | 4.9 | |||||||||||||||||
Months | ||||||||||||||||||||||||||||||||||||||
Twelve or More | 116,021 | 124,285 | (612 | ) | 123,673 | (1,539 | ) | 122,134 | 13 | AA+ | 3.34 | % | 1.51 | % | 3.3 | |||||||||||||||||||||||
Months | ||||||||||||||||||||||||||||||||||||||
Total/Weighted | $ | 593,532 | $ | 574,593 | $ | (944 | ) | $ | 573,649 | $ | (6,377 | ) | $ | 567,272 | 71 | AA | 3.19 | % | 2.65 | % | 4.6 | |||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||
(A) | This amount represents other-than-temporary impairment recorded on securities that are in an unrealized loss position as of June 30, 2014. | |||||||||||||||||||||||||||||||||||||
(B) | The weighted average rating of securities in an unrealized loss position for less than twelve months excludes the rating of five bonds for which New Residential was unable to obtain rating information. | |||||||||||||||||||||||||||||||||||||
New Residential performed an assessment of all of its debt securities that are in an unrealized loss position (an unrealized loss position exists when a security’s amortized cost basis, excluding the effect of OTTI, exceeds its fair value) and determined the following: | ||||||||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Unrealized Losses | ||||||||||||||||||||||||||||||||||||||
Fair Value | Amortized Cost Basis After Impairment | Credit(A) | Non-Credit(B) | |||||||||||||||||||||||||||||||||||
Securities New Residential intends to sell(C) | $ | 155,599 | $ | 155,871 | $ | (1,073 | ) | $ | (272 | ) | ||||||||||||||||||||||||||||
Securities New Residential is more likely than not to be | — | — | — | N/A | ||||||||||||||||||||||||||||||||||
required to sell(D) | ||||||||||||||||||||||||||||||||||||||
Securities New Residential has no intent to sell and is not | ||||||||||||||||||||||||||||||||||||||
more likely than not to be required to sell: | ||||||||||||||||||||||||||||||||||||||
Credit impaired securities | 144,118 | 145,212 | (974 | ) | (1,094 | ) | ||||||||||||||||||||||||||||||||
Non credit impaired securities | 321,508 | 326,519 | — | (5,011 | ) | |||||||||||||||||||||||||||||||||
Total debt securities in an unrealized loss position | $ | 621,225 | $ | 627,602 | $ | (2,047 | ) | $ | (6,377 | ) | ||||||||||||||||||||||||||||
(A) | This amount is required to be recorded as other-than-temporary impairment through earnings. In measuring the portion of credit losses, New Residential’s management estimates the expected cash flow for each of the securities. This evaluation includes a review of the credit status and the performance of the collateral supporting those securities, including the credit of the issuer, key terms of the securities and the effect of local, industry and broader economic trends. Significant inputs in estimating the cash flows include management’s expectations of prepayment speeds, default rates and loss severities. Credit losses are measured as the decline in the present value of the expected future cash flows discounted at the investment’s effective interest rate. | |||||||||||||||||||||||||||||||||||||
(B) | This amount represents unrealized losses on securities that are due to non-credit factors and recorded through other comprehensive income. | |||||||||||||||||||||||||||||||||||||
(C) | A portion of securities New Residential intends to sell have a fair value equal to their amortized cost basis after impairment, and, therefore do not have unrealized losses reflected in other comprehensive income as of June 30, 2014. | |||||||||||||||||||||||||||||||||||||
(D) | New Residential may, at times, be more likely than not to be required to sell certain securities for liquidity purposes. While the amount of the securities to be sold may be an estimate, and the securities to be sold have not yet been identified, New Residential must make its best estimate, which is subject to significant judgment regarding future events, and may differ materially from actual future sales. | |||||||||||||||||||||||||||||||||||||
The following table summarizes the activity related to credit losses on debt securities: | ||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Beginning balance of credit losses on debt securities for which a portion of an OTTI was | $ | 2,071 | ||||||||||||||||||||||||||||||||||||
recognized in other comprehensive income | ||||||||||||||||||||||||||||||||||||||
Increases to credit losses on securities for which an OTTI was previously recognized and a portion | 464 | |||||||||||||||||||||||||||||||||||||
of an OTTI was recognized in other comprehensive income | ||||||||||||||||||||||||||||||||||||||
Additions for credit losses on securities for which an OTTI was not previously recognized | 151 | |||||||||||||||||||||||||||||||||||||
Reductions for securities for which the amount previously recognized in other comprehensive | (1,073 | ) | ||||||||||||||||||||||||||||||||||||
income was recognized in earnings because the entity intends to sell the security or more likely | ||||||||||||||||||||||||||||||||||||||
than not will be required to sell the security before recovery of its amortized cost basis | ||||||||||||||||||||||||||||||||||||||
Reduction for credit losses on securities for which no OTTI was recognized in other | (408 | ) | ||||||||||||||||||||||||||||||||||||
comprehensive income at the current measurement date | ||||||||||||||||||||||||||||||||||||||
Reduction for securities sold during the period | (231 | ) | ||||||||||||||||||||||||||||||||||||
Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized | $ | 974 | ||||||||||||||||||||||||||||||||||||
in other comprehensive income | ||||||||||||||||||||||||||||||||||||||
The table below summarizes the geographic distribution of the collateral securing New Residential’s Non-Agency RMBS as of June 30, 2014: | ||||||||||||||||||||||||||||||||||||||
Geographic Location | Outstanding Face Amount | Percentage of Total Outstanding | ||||||||||||||||||||||||||||||||||||
Western U.S. | $ | 85,243 | 24.5 | % | ||||||||||||||||||||||||||||||||||
Southeastern U.S. | 73,322 | 21 | % | |||||||||||||||||||||||||||||||||||
Northeastern U.S. | 61,194 | 17.6 | % | |||||||||||||||||||||||||||||||||||
Midwestern U.S. | 58,722 | 16.9 | % | |||||||||||||||||||||||||||||||||||
Southwestern U.S. | 32,368 | 9.3 | % | |||||||||||||||||||||||||||||||||||
Other(A) | 37,383 | 10.7 | % | |||||||||||||||||||||||||||||||||||
$ | 348,232 | 100 | % | |||||||||||||||||||||||||||||||||||
(A) | Represents collateral for which New Residential was unable to obtain geographic information. | |||||||||||||||||||||||||||||||||||||
New Residential evaluates the credit quality of its real estate securities, as of the acquisition date, for evidence of credit quality deterioration. As a result, New Residential identified a population of real estate securities for which it was determined that it was probable that New Residential would be unable to collect all contractually required payments. For securities acquired during the six months ended June 30, 2014, the face amount of these real estate securities was $361.7 million, with total expected cash flows of $339.4 million and a fair value of $258.0 million on the dates that New Residential purchased the respective securities. | ||||||||||||||||||||||||||||||||||||||
The following is the outstanding face amount and carrying value for securities, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments: | ||||||||||||||||||||||||||||||||||||||
Outstanding Face Amount | Carrying Value | |||||||||||||||||||||||||||||||||||||
June 30, 2014 | $ | 186,186 | $ | 144,836 | ||||||||||||||||||||||||||||||||||
December 31, 2013 | $ | 729,895 | $ | 483,680 | ||||||||||||||||||||||||||||||||||
The following is a summary of the changes in accretable yield for these securities: | ||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 143,067 | ||||||||||||||||||||||||||||||||||||
Additions | 81,365 | |||||||||||||||||||||||||||||||||||||
Accretion | (8,175 | ) | ||||||||||||||||||||||||||||||||||||
Reclassifications from non-accretable difference | (778 | ) | ||||||||||||||||||||||||||||||||||||
Disposals | (155,287 | ) | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2014 | $ | 60,192 | ||||||||||||||||||||||||||||||||||||
The following is a summary of the changes in accretable yield for these loans: | ||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | — | ||||||||||||||||||||||||||||||||||||
Additions | 98,692 | |||||||||||||||||||||||||||||||||||||
Accretion | (4,276 | ) | ||||||||||||||||||||||||||||||||||||
Reclassifications from non-accretable difference(A) | 1,349 | |||||||||||||||||||||||||||||||||||||
Balance at June 30, 2014 | $ | 95,765 | ||||||||||||||||||||||||||||||||||||
(A) Represents a probable and significant increase in cash flows previously expected to be collected. |
INVESTMENTS_IN_CONSUMER_LOANS_1
INVESTMENTS IN CONSUMER LOANS EQUITY METHOD INVESTEES (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Investments In Consumer Loans Equity Method Investees | ' | ||||||||||||||||||
Schedule of investments in consumer loan equity method investees | ' | ||||||||||||||||||
The following tables summarize the investment in the Consumer Loan Companies held by New Residential: | |||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||
Consumer loan assets | $ | 2,302,297 | $ | 2,572,577 | |||||||||||||||
Other assets | 172,969 | 192,830 | |||||||||||||||||
Debt(A) | (1,627,323 | ) | (2,010,433 | ) | |||||||||||||||
Other liabilities | (15,025 | ) | (32,712 | ) | |||||||||||||||
Equity | $ | 832,918 | $ | 722,262 | |||||||||||||||
New Residential's investment | $ | 250,048 | $ | 215,062 | |||||||||||||||
New Residential's ownership | 30 | % | 30 | % | |||||||||||||||
(A) | Represents the Class A asset-backed notes with a face amount of $1.3 billion, an interest rate of 3.75% and a maturity of April 2021 and the Class B asset-backed notes with a face amount of $0.3 billion, an interest rate of 4.0% and a maturity of December 2024. Substantially all of the net cash flow generated by the Consumer Loan Companies was required to be used to pay down the Class A notes. In June 2014, the balance of the outstanding Class A notes was reduced to 50% of the outstanding UPB of the performing consumer loans and the managing member was reimbursed by the Consumer Loan Companies for accumulated expenses. Prospectively, 70% of the net cash flow generated is required to be used to pay down the Class A notes, and the equity holders of the Consumer Loan Companies and holders of the Class B notes will each be entitled to receive 15% of the net cash flow of the Consumer Loan Companies on a periodic basis. | ||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | ||||||||||||||||||
Interest income | $ | 135,629 | $ | 278,444 | |||||||||||||||
Interest expense | (18,106 | ) | (40,301 | ) | |||||||||||||||
Provision for finance receivable losses | (27,663 | ) | (61,819 | ) | |||||||||||||||
Other expenses, net | (19,279 | ) | (39,731 | ) | |||||||||||||||
Change in fair value of debt | 535 | (16,332 | ) | ||||||||||||||||
Net income | $ | 71,116 | $ | 120,261 | |||||||||||||||
New Residential's equity in net income | $ | 21,335 | $ | 37,695 | |||||||||||||||
New Residential's ownership | 30 | % | 30 | % | |||||||||||||||
Schedule of consumer loan investments made through equity method investees | ' | ||||||||||||||||||
The following is a summary of New Residential’s consumer loan investments made through equity method investees: | |||||||||||||||||||
June 30, 2014 | |||||||||||||||||||
Unpaid Principal Balance | Interest in Consumer Loan Companies | Carrying Value(A) | Weighted Average Coupon(B) | Weighted Average Yield | Weighted Average Expected Life (Years)(C) | ||||||||||||||
Consumer Loans | $ | 2,924,133 | 30 | % | $ | 2,302,297 | 18.1 | % | 16.8 | % | 3.5 | ||||||||
(A) | Represents the carrying value of the consumer loans held by the Consumer Loan Companies. | ||||||||||||||||||
(B) | Substantially all of the cash flows received on the loans is required to be used to make payments on the notes described above. | ||||||||||||||||||
(C) | Weighted Average Life represents the weighted average expected timing of the receipt of expected cash flows for this investment. | ||||||||||||||||||
Schedule of change in investments in consumer loan equity method investees | ' | ||||||||||||||||||
New Residential’s investments in consumer loans, equity method investees changed during the six months ended June 30, 2014 as follows: | |||||||||||||||||||
For the Six Months Ended June 30, 2014 | |||||||||||||||||||
Balance at December 31, 2013 | $ | 215,062 | |||||||||||||||||
Contributions to equity method investees | — | ||||||||||||||||||
Distributions of earnings from equity method investees(A) | (2,709 | ) | |||||||||||||||||
Distributions of capital from equity method investees | — | ||||||||||||||||||
Earnings from investments in consumer loan equity method investees | 37,695 | ||||||||||||||||||
Balance at June 30, 2014 | $ | 250,048 | |||||||||||||||||
(A) | In June 2014, the Consumer Loan Companies distributed $2.2 million in cash to, and made $0.6 million in tax withholding payments on behalf of, New Residential. The tax withholding payments were considered a non-cash distribution. |
DERIVATIVES_Tables
DERIVATIVES (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||
Schedule of Derivatives | ' | |||||||||
New Residential’s derivatives are recorded at fair value on the Condensed Consolidated Balance Sheets as follows: | ||||||||||
Balance Sheet Location | 30-Jun-14 | 31-Dec-13 | ||||||||
Derivative assets | ||||||||||
Real Estate Securities(A) | Derivative assets | $ | — | $ | 1,452 | |||||
Non-Performing Loans(A) | Derivative assets | 30,736 | 34,474 | |||||||
TBAs | Derivative assets | 256 | — | |||||||
$ | 30,992 | $ | 35,926 | |||||||
(A) | Investments purchased from, and financed by, the selling counterparty that New Residential accounts for as linked transactions and are reflected as derivatives. | |||||||||
The following table summarizes notional amounts related to derivatives: | ||||||||||
June 30, 2014 | December 31, 2013 | |||||||||
Non-Performing Loans(A) | $ | 186,362 | $ | 164,598 | ||||||
Real Estate Securities(B) | — | 10,000 | ||||||||
TBAs, short position(C) | 10,000 | — | ||||||||
(A) | Represents the UPB of the underlying loans of the non-performing loan pools within linked transactions. | |||||||||
(B) | Represents the face amount of the real estate securities within linked transactions. | |||||||||
(C) | Represents the notional amount of Agency RMBS, classified as derivatives. | |||||||||
The following table summarizes gains (losses) recorded in relation to derivatives: | ||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||
Other income | 2014 | 2014 | ||||||||
Non-Performing Loans(A) | $ | (985 | ) | $ | (314 | ) | ||||
Real Estate Securities(A) | — | 26 | ||||||||
TBAs | (132 | ) | 230 | |||||||
U.S.T. Short Positions | (408 | ) | — | |||||||
Interest Rate Swaps | (2,276 | ) | (2,386 | ) | ||||||
(3,801 | ) | (2,444 | ) | |||||||
Gain on settlement of investments | ||||||||||
Real Estate Securities(A) | — | 43 | ||||||||
TBAs | (3,824 | ) | (4,002 | ) | ||||||
U.S.T. Short Positions | 176 | 176 | ||||||||
(3,648 | ) | (3,783 | ) | |||||||
Total gains (losses) | $ | (7,449 | ) | $ | (6,227 | ) | ||||
(A) | Investments purchased from, and financed by, the selling counterparty that New Residential accounts for as linked transactions and are reflected as derivatives. | |||||||||
The following table presents both gross and net information about linked transactions: | ||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||
Non-Performing Loans | ||||||||||
Non-performing loan assets, at fair value(A) | $ | 104,770 | $ | 95,014 | ||||||
Repurchase agreements(B) | (74,034 | ) | (60,540 | ) | ||||||
30,736 | 34,474 | |||||||||
Real Estate Securities | ||||||||||
Real estate securities, at fair value(C) | — | 9,952 | ||||||||
Repurchase agreements(B) | — | (8,500 | ) | |||||||
— | 1,452 | |||||||||
Net assets recognized as linked transactions | $ | 30,736 | $ | 35,926 | ||||||
(A) | Non-performing loans that had a UPB of $186.4 million as of June 30, 2014, which represents the notional amount of the linked transaction and accrued interest. | |||||||||
(B) | Represents carrying amount that approximates fair value. | |||||||||
(C) | Real estate securities that had a current face amount of $10.0 million as of December 31, 2013, which represents the notional amount of the linked transaction. |
DEBT_OBLIGATIONS_Tables
DEBT OBLIGATIONS (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of debt obligations | ' | |||||||||||||||||||||||||||||||
The following table presents certain information regarding New Residential’s debt obligations: | ||||||||||||||||||||||||||||||||
June 30, 2014(A) | ||||||||||||||||||||||||||||||||
Collateral | ||||||||||||||||||||||||||||||||
Debt Obligations/Collateral | Month Issued | Outstanding Face Amount | Carrying Value | Final Stated Maturity | Weighted Average Funding Cost | Weighted Average Life (Years) | Outstanding Face | Amortized Cost Basis | Carrying Value | Weighted Average Life (Years) | ||||||||||||||||||||||
Repurchase Agreements (B) | ||||||||||||||||||||||||||||||||
Agency ARM | Various | $ | 1,182,244 | $ | 1,182,244 | 14-Jul | 0.33 | % | 0.1 | $ | 1,159,363 | $ | 1,232,414 | $ | 1,234,562 | 4.7 | ||||||||||||||||
RMBS (C) | ||||||||||||||||||||||||||||||||
Non-Agency | Various | 149,110 | 149,110 | Jul-14 to Oct-14 | 1.86 | % | 0.1 | 237,191 | 186,567 | 192,413 | 9.7 | |||||||||||||||||||||
RMBS (D) | ||||||||||||||||||||||||||||||||
Residential | Various | 348,033 | 348,033 | Nov-14 to May-16 | 2.9 | % | 1.7 | 648,833 | 486,660 | 486,630 | 2.4 | |||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||
Loans(E) | ||||||||||||||||||||||||||||||||
Consumer | 14-Jan | 125,000 | 125,000 | 15-Jan | 4.16 | % | 0.6 | N/A | N/A | 250,048 | 3.5 | |||||||||||||||||||||
Loans(F) | ||||||||||||||||||||||||||||||||
Real Estate | Various | 10,795 | 10,795 | Nov-14 to Jun-15 | 2.96 | % | 0.5 | N/A | N/A | 27,830 | N/A | |||||||||||||||||||||
Owned(G) | ||||||||||||||||||||||||||||||||
Total Repurchase | 1,815,182 | 1,815,182 | 1.23 | % | 0.4 | |||||||||||||||||||||||||||
Agreements | ||||||||||||||||||||||||||||||||
Notes Payable | ||||||||||||||||||||||||||||||||
Servicer Advances(H) | Various | 3,265,530 | 3,265,530 | Sep-14 to Mar-17 | 3.26 | % | 1.4 | 3,551,464 | 3,596,228 | 3,679,105 | 3.8 | |||||||||||||||||||||
Residential | 13-Dec | 23,915 | 23,915 | 14-Sep | 3.41 | % | 0.2 | 53,085 | 31,682 | 30,794 | 3.7 | |||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||
Loans(I) | ||||||||||||||||||||||||||||||||
Total Notes | 3,289,445 | 3,289,445 | 3.26 | % | 1.4 | |||||||||||||||||||||||||||
Payable | ||||||||||||||||||||||||||||||||
Total/ Weighted | $ | 5,104,627 | $ | 5,104,627 | 2.54 | % | 1.1 | |||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||
(A) | Excludes debt related to linked transactions (Note 10). | |||||||||||||||||||||||||||||||
(B) | These repurchase agreements had approximately $0.1 million of associated accrued interest payable as of June 30, 2014. | |||||||||||||||||||||||||||||||
(C) | The counterparties of these repurchase agreements are Mizuho ($145.1 million), Morgan Stanley ($218.5 million), Daiwa ($296.5 million) and Jefferies ($522.2 million) and were subject to customary margin call provisions. | |||||||||||||||||||||||||||||||
(D) | The counterparties of these repurchase agreements are Barclays ($21.6 million), Credit Suisse ($50.7 million), Royal Bank of Scotland ($33.9 million), Bank of America ($1.9 million), Goldman Sachs ($27.6 million) and UBS ($13.5 million) and were subject to customary margin call provisions. All of the Non-Agency repurchase agreements have LIBOR-based floating interest rates. Includes $48.6 million borrowed under a master repurchase agreement, which bears interest at one-month LIBOR plus 1.75%. | |||||||||||||||||||||||||||||||
(E) | The counterparties on these repurchase agreements are Nomura ($324.5 million), Citibank ($17.1 million) and Royal Bank of Scotland ($6.4 million). All of these repurchase agreements have LIBOR-based floating interest rates. | |||||||||||||||||||||||||||||||
(F) | The repurchase agreement is payable to Credit Suisse and bears interest equal to one-month LIBOR plus 2.0%. | |||||||||||||||||||||||||||||||
(G) | The counterparties of these repurchase agreements are Royal Bank of Scotland ($7.0 million), Credit Suisse ($2.5 million) and Nomura ($1.3 million). All of these repurchase agreements have LIBOR-based floating interest rates. | |||||||||||||||||||||||||||||||
(H) | $1.1 billion face amount of the notes have a fixed rate while the remaining notes bear interest equal to the sum of (i) a floating rate index rate equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 1.3% to 2.5%. | |||||||||||||||||||||||||||||||
(I) | The note is payable to Nationstar and bears interest equal to one-month LIBOR plus 3.25%. | |||||||||||||||||||||||||||||||
Schedule of contractual maturities of debt | ' | |||||||||||||||||||||||||||||||
New Residential’s debt obligations as of June 30, 2014 had contractual maturities as follows: | ||||||||||||||||||||||||||||||||
Year | Nonrecourse | Recourse(A) | Total | |||||||||||||||||||||||||||||
July 1 through December 31, 2014 | $ | 1,254,661 | $ | 1,325,641 | $ | 2,580,302 | ||||||||||||||||||||||||||
2015 | 818,146 | 166,034 | 984,180 | |||||||||||||||||||||||||||||
2016 | 1,028,545 | — | 1,028,545 | |||||||||||||||||||||||||||||
2017 | 511,600 | — | 511,600 | |||||||||||||||||||||||||||||
$ | 3,612,952 | $ | 1,491,675 | $ | 5,104,627 | |||||||||||||||||||||||||||
(A) | Excludes recourse debt related to linked transactions (Note 10). | |||||||||||||||||||||||||||||||
Schedule of borrowing capacity | ' | |||||||||||||||||||||||||||||||
The following table represents New Residential’s borrowing capacity as of June 30, 2014 : | ||||||||||||||||||||||||||||||||
Debt Obligations/ Collateral | Collateral Type | Borrowing Capacity | Balance Outstanding | Available Financing | ||||||||||||||||||||||||||||
Repurchase Agreements | ||||||||||||||||||||||||||||||||
Residential Mortgage Loans(A) | Real Estate Loans | $ | 600,000 | $ | 82,151 | $ | 517,849 | |||||||||||||||||||||||||
Notes Payable | ||||||||||||||||||||||||||||||||
Servicer Advances(B) | Servicer Advances | 5,661,700 | 3,265,530 | 2,396,170 | ||||||||||||||||||||||||||||
$ | 6,261,700 | $ | 3,347,681 | $ | 2,914,019 | |||||||||||||||||||||||||||
(A) | Includes $300.0 million of borrowing capacity and $65.1 million of balance outstanding related to linked transactions (Note 10). | |||||||||||||||||||||||||||||||
(B) | New Residential’s unused borrowing capacity is available if New Residential has additional eligible collateral to pledge and meets other borrowing conditions. New Residential pays a 0.5% fee on the unused borrowing capacity. |
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of fair value of assets measured on a recurring basis | ' | |||||||||||||||||||||||||||||||
The carrying values and fair values of New Residential’s financial assets recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of June 30, 2014 were as follows: | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Principal Balance or Notional Amount | Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Investments in: | ||||||||||||||||||||||||||||||||
Excess mortgage servicing rights, at fair | $ | 95,166,259 | $ | 372,416 | $ | — | $ | — | $ | 372,416 | $ | 372,416 | ||||||||||||||||||||
value(A) | ||||||||||||||||||||||||||||||||
Excess mortgage servicing rights, equity | 159,821,724 | 330,220 | — | — | 330,220 | 330,220 | ||||||||||||||||||||||||||
method investees, at fair value(A) | ||||||||||||||||||||||||||||||||
Servicer advances | 3,551,464 | 3,679,105 | — | — | 3,679,105 | 3,679,105 | ||||||||||||||||||||||||||
Real estate securities, available-for-sale | 1,507,595 | 1,463,903 | — | 1,247,012 | 216,891 | 1,463,903 | ||||||||||||||||||||||||||
Residential mortgage loans, | 701,918 | 517,424 | — | — | 519,990 | 519,990 | ||||||||||||||||||||||||||
held for investment(B) | ||||||||||||||||||||||||||||||||
Non-hedge derivatives(C) | 196,362 | 30,992 | — | 256 | 30,736 | 30,992 | ||||||||||||||||||||||||||
Cash and cash equivalents | 311,126 | 311,126 | 311,126 | — | — | 311,126 | ||||||||||||||||||||||||||
Restricted cash | 37,327 | 37,327 | 37,327 | — | — | 37,327 | ||||||||||||||||||||||||||
$ | 261,293,775 | $ | 6,742,513 | $ | 348,453 | $ | 1,247,268 | $ | 5,149,358 | $ | 6,745,079 | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Repurchase agreements | $ | 1,815,182 | $ | 1,815,182 | $ | — | $ | 1,331,354 | $ | 483,828 | $ | 1,815,182 | ||||||||||||||||||||
Notes payable | 3,289,445 | 3,289,445 | — | 1,285,348 | 2,006,525 | 3,291,873 | ||||||||||||||||||||||||||
$ | 5,104,627 | $ | 5,104,627 | $ | — | $ | 2,616,702 | $ | 2,490,353 | $ | 5,107,055 | |||||||||||||||||||||
(A) | The notional amount represents the total unpaid principal balance of the mortgage loans underlying the Excess MSRs. New Residential does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios. | |||||||||||||||||||||||||||||||
(B) | The notional amount represents the total unpaid principal balance of the mortgage loans for residential mortgage loans, held for investment. | |||||||||||||||||||||||||||||||
(C) | The notional amount for linked transactions consists of the aggregate UPB amount of the loans that comprise the asset portion of the linked transaction. | |||||||||||||||||||||||||||||||
Schedule of fair value of assets valued on a recurring basis using Level 3 inputs | ' | |||||||||||||||||||||||||||||||
New Residential’s financial assets measured at fair value on a recurring basis using Level 3 inputs changed during the six months ended June 30, 2014 as follows: | ||||||||||||||||||||||||||||||||
Level 3 | ||||||||||||||||||||||||||||||||
Excess MSRs(A) | Excess MSRs in Equity Method Investees(A)(B) | |||||||||||||||||||||||||||||||
Agency | Non-Agency | Agency | Non-Agency | Servicer Advances | Non-Agency RMBS | Linked Transactions | Total | |||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 144,660 | $ | 179,491 | $ | 245,399 | $ | 107,367 | $ | 2,665,551 | $ | 570,425 | $ | 35,926 | $ | 3,948,819 | ||||||||||||||||
Transfers(C) | ||||||||||||||||||||||||||||||||
Transfers from Level 3 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Transfers to Level 3 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Gains (losses) included in net income | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Included in other-than-temporary | — | — | — | — | — | (479 | ) | — | (479 | ) | ||||||||||||||||||||||
impairment (“OTTI”) on securities(D) | ||||||||||||||||||||||||||||||||
Included in change in fair value of | 3,673 | 8,431 | — | — | — | — | — | 12,104 | ||||||||||||||||||||||||
investments in excess mortgage | ||||||||||||||||||||||||||||||||
servicing rights(D) | ||||||||||||||||||||||||||||||||
Included in change in fair value of | — | — | (100 | ) | 1,324 | — | — | — | 1,224 | |||||||||||||||||||||||
investments in excess mortgage | ||||||||||||||||||||||||||||||||
servicing rights, equity method | ||||||||||||||||||||||||||||||||
investees(D) | ||||||||||||||||||||||||||||||||
Included in gain on settlement of | — | — | — | — | — | 60,330 | — | 60,330 | ||||||||||||||||||||||||
investments | ||||||||||||||||||||||||||||||||
Included in other income(D) | — | — | — | — | 82,877 | — | (271 | ) | 82,606 | |||||||||||||||||||||||
Gains (losses) included in other | — | — | — | — | — | 3,174 | — | 3,174 | ||||||||||||||||||||||||
comprehensive income, net of tax(E) | ||||||||||||||||||||||||||||||||
Interest income | 9,491 | 15,298 | 12,622 | 5,271 | 102,823 | 13,812 | — | 159,317 | ||||||||||||||||||||||||
Purchases, sales and repayments | ||||||||||||||||||||||||||||||||
Purchases | 36,157 | 19,132 | — | — | 3,955,602 | 882,033 | 9,758 | 4,902,682 | ||||||||||||||||||||||||
Purchase adjustments | (59 | ) | 1,073 | — | — | — | — | — | 1,014 | |||||||||||||||||||||||
Proceeds from sales | — | — | — | — | — | (1,273,224 | ) | (1,495 | ) | (1,274,719 | ) | |||||||||||||||||||||
Proceeds from repayments | (18,470 | ) | (26,461 | ) | (28,084 | ) | (13,579 | ) | (3,127,748 | ) | (39,180 | ) | (3,508 | ) | (3,257,030 | ) | ||||||||||||||||
Transfers to REO(F) | — | — | — | — | — | — | (9,674 | ) | (9,674 | ) | ||||||||||||||||||||||
Balance at June 30, 2014 | $ | 175,452 | $ | 196,964 | $ | 229,837 | $ | 100,383 | $ | 3,679,105 | $ | 216,891 | $ | 30,736 | $ | 4,629,368 | ||||||||||||||||
(A) | Includes the Recapture Agreement for each respective pool. | |||||||||||||||||||||||||||||||
(B) | Amounts represent New Residential’s portion of the Excess MSRs held by the respective joint ventures in which New Residential has a 50% interest. | |||||||||||||||||||||||||||||||
(C) | Transfers are assumed to occur at the beginning of the respective period. | |||||||||||||||||||||||||||||||
(D) | The gains (losses) recorded in earnings during the period are attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting dates. | |||||||||||||||||||||||||||||||
(E) | These gains (losses) were included in net unrealized gain (loss) on securities in the Condensed Consolidated Statements of Comprehensive Income. | |||||||||||||||||||||||||||||||
Schedule of inputs used in valuing Excess MSRs owned directly and through equity method investees | ' | |||||||||||||||||||||||||||||||
The following table summarizes certain information regarding the inputs used in valuing the Excess MSRs owned directly and through equity method investees as of June 30, 2014: | ||||||||||||||||||||||||||||||||
Significant Inputs | ||||||||||||||||||||||||||||||||
Held Directly (Note 4) | Prepayment Speed(A) | Delinquency(B) | Recapture Rate(C) | Excess Mortgage Servicing Amount | ||||||||||||||||||||||||||||
(bps)(D) | ||||||||||||||||||||||||||||||||
MSR Pool 1 | 12.3 | % | 8.6 | % | 36.1 | % | 26 | |||||||||||||||||||||||||
MSR Pool 1 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 21 | |||||||||||||||||||||||||
MSR Pool 2 | 12.7 | % | 9.9 | % | 36.2 | % | 22 | |||||||||||||||||||||||||
MSR Pool 2 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 21 | |||||||||||||||||||||||||
MSR Pool 3 | 12.8 | % | 11.2 | % | 35.9 | % | 22 | |||||||||||||||||||||||||
MSR Pool 3 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 21 | |||||||||||||||||||||||||
MSR Pool 4 | 15.3 | % | 13.5 | % | 36 | % | 17 | |||||||||||||||||||||||||
MSR Pool 4 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 21 | |||||||||||||||||||||||||
MSR Pool 5 | 11.4 | % | N/A(E) | 9.7 | % | 13 | ||||||||||||||||||||||||||
MSR Pool 5 - Recapture Agreement | 8 | % | N/A(E) | 35 | % | 21 | ||||||||||||||||||||||||||
MSR Pool 11 - Recapture Agreement | 7.9 | % | 5 | % | 35 | % | 19 | |||||||||||||||||||||||||
MSR Pool 12 | 14 | % | N/A(E) | 9.6 | % | 26 | ||||||||||||||||||||||||||
MSR Pool 12 - Recapture Agreement | 8 | % | N/A(E) | 35 | % | 19 | ||||||||||||||||||||||||||
MSR Pool 14 | 7.8 | % | 3.5 | % | 27.5 | % | 19 | |||||||||||||||||||||||||
MSR Pool 14 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 19 | |||||||||||||||||||||||||
MSR Pool 16 | 16.4 | % | 4.9 | % | 35 | % | 17 | |||||||||||||||||||||||||
MSR Pool 16 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 19 | |||||||||||||||||||||||||
MSR Pool 17 | 11.2 | % | N/A(E) | 11 | % | 19 | ||||||||||||||||||||||||||
MSR Pool 17 - Recapture Agreement | 8 | % | N/A(E) | 35 | % | 19 | ||||||||||||||||||||||||||
MSR Pool 18 | 14.9 | % | N/A(E) | 9.6 | % | 15 | ||||||||||||||||||||||||||
MSR Pool 18 - Recapture Agreement | 8 | % | N/A(E) | 35 | % | 19 | ||||||||||||||||||||||||||
MSR Pool 19 | 8 | % | 2.8 | % | 20 | % | 19 | |||||||||||||||||||||||||
MSR Pool 19 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 19 | |||||||||||||||||||||||||
MSR Pool 20 | 12.7 | % | 4 | % | 33.9 | % | 32 | |||||||||||||||||||||||||
MSR Pool 20 - Recapture Agreement | 8 | % | 5 | % | 34.9 | % | 19 | |||||||||||||||||||||||||
Held through Equity Method Investees (Note 5) | ||||||||||||||||||||||||||||||||
MSR Pool 6 | 14.8 | % | 7.3 | % | 30.7 | % | 25 | |||||||||||||||||||||||||
MSR Pool 6 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 23 | |||||||||||||||||||||||||
MSR Pool 7 | 12.9 | % | 7.7 | % | 35.1 | % | 15 | |||||||||||||||||||||||||
MSR Pool 7 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 19 | |||||||||||||||||||||||||
MSR Pool 8 | 14.2 | % | 7.5 | % | 35.9 | % | 19 | |||||||||||||||||||||||||
MSR Pool 8 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 19 | |||||||||||||||||||||||||
MSR Pool 9 | 15.3 | % | 5 | % | 30.2 | % | 22 | |||||||||||||||||||||||||
MSR Pool 9 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 26 | |||||||||||||||||||||||||
MSR Pool 10 | 11.9 | % | N/A(E) | 9.7 | % | 11 | ||||||||||||||||||||||||||
MSR Pool 10 - Recapture Agreement | 8 | % | N/A(E) | 35 | % | 19 | ||||||||||||||||||||||||||
MSR Pool 11 | 12.8 | % | 9.9 | % | 32.2 | % | 15 | |||||||||||||||||||||||||
MSR Pool 11 - Recapture Agreement | 8 | % | 5 | % | 35 | % | 19 | |||||||||||||||||||||||||
(A) | Projected annualized weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. | |||||||||||||||||||||||||||||||
(B) | Projected percentage of mortgage loans in the pool that will miss their mortgage payments. | |||||||||||||||||||||||||||||||
(C) | Percentage of voluntarily prepaid loans that are expected to be refinanced by Nationstar. | |||||||||||||||||||||||||||||||
(D) | Weighted average total mortgage servicing amount in excess of the basic fee. | |||||||||||||||||||||||||||||||
(E) | The Excess MSR will be paid on the total UPB of the mortgage portfolio (including both performing and delinquent loans until REO). | |||||||||||||||||||||||||||||||
Schedule of investments in equity method investees valued on a recurring basis using Level 3 inputs | ' | |||||||||||||||||||||||||||||||
New Residential’s investments in equity method investees measured at fair value on a recurring basis using Level 3 inputs changed during the six months ended June 30, 2014 as follows: | ||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 352,766 | ||||||||||||||||||||||||||||||
Contributions to equity method investees | — | |||||||||||||||||||||||||||||||
Distributions of earnings from equity method investees | (20,500 | ) | ||||||||||||||||||||||||||||||
Distributions of capital from equity method investees | (21,163 | ) | ||||||||||||||||||||||||||||||
Change in fair value of investments in equity method investees | 19,117 | |||||||||||||||||||||||||||||||
Balance at June 30, 2014 | $ | 330,220 | ||||||||||||||||||||||||||||||
Schedule of inputs in valuing servicer advances | ' | |||||||||||||||||||||||||||||||
The following table summarizes certain information regarding the inputs used in valuing the servicer advances: | ||||||||||||||||||||||||||||||||
Significant Inputs | ||||||||||||||||||||||||||||||||
Weighted Average | ||||||||||||||||||||||||||||||||
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | Prepayment Speed | Delinquency | Mortgage Servicing Amount | Discount Rate | ||||||||||||||||||||||||||||
June 30, 2014 | 2.2 | % | 14.6 | % | 16.3 | % | 19.6 | bps | 5.6 | % | ||||||||||||||||||||||
December 31, 2013 | 2.7 | % | 13.3 | % | 20 | % | 21.2 | bps | 5.6 | % | ||||||||||||||||||||||
Schedule of real estate securities valuation methodology and results | ' | |||||||||||||||||||||||||||||||
As of June 30, 2014, New Residential’s securities valuation methodology and results are further detailed as follows: | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Multiple Quotes(A) | Single Quote(B) | Total | Level | ||||||||||||||||||||||||||
Agency ARM RMBS | $ | 1,159,363 | $ | 1,244,864 | $ | 1,247,012 | $ | — | $ | 1,247,012 | 2 | |||||||||||||||||||||
Non-Agency RMBS | 348,232 | 210,051 | 203,373 | 13,518 | 216,891 | 3 | ||||||||||||||||||||||||||
Total | $ | 1,507,595 | $ | 1,454,915 | $ | 1,450,385 | $ | 13,518 | $ | 1,463,903 | ||||||||||||||||||||||
(A) | Management generally obtained pricing service quotations or broker quotations from two sources, one of which was generally the seller (the party that sold New Residential the security) for Non-Agency RMBS. Management selected one of the quotes received as being most representative of the fair value and did not use an average of the quotes. Even if New Residential receives two or more quotes on a particular security that come from non-selling brokers or pricing services, it does not use an average because management believes using an actual quote more closely represents a transactable price for the security than an average level. Furthermore, in some cases there is a wide disparity between the quotes New Residential receives. Management believes using an average of the quotes in these cases would not represent the fair value of the asset. Based on New Residential’s own fair value analysis, management selects one of the quotes which is believed to more accurately reflect fair value. New Residential never adjusts quotes received. These quotations are generally received via email and contain disclaimers which state that they are “indicative” and not “actionable” — meaning that the party giving the quotation is not bound to actually purchase the security at the quoted price. | |||||||||||||||||||||||||||||||
Schedule of inputs used in valuing reverse mortgage loans | ' | |||||||||||||||||||||||||||||||
The following table summarizes the inputs used in valuing reverse mortgage loans as of June 30, 2014: | ||||||||||||||||||||||||||||||||
Significant Inputs | ||||||||||||||||||||||||||||||||
Loan Type | Carrying Value(A) | Fair Value(A) | Valuation Provision/ (Reversal) In Current Year | Discount Rate | Weighted Average Life (Years)(B) | |||||||||||||||||||||||||||
Reverse Mortgage Loans | $ | 30,794 | $ | 30,794 | 427 | 10.3 | % | 3.7 | ||||||||||||||||||||||||
(A) | Represents a 70% interest New Residential holds in the reverse mortgage loans. | |||||||||||||||||||||||||||||||
(B) | The weighted average life is based on the expected timing of the receipt of cash flows. | |||||||||||||||||||||||||||||||
For performing loans, the significant inputs to these models include discount rates and market-based assumptions for prepayment speed and default. | ||||||||||||||||||||||||||||||||
Loan Type | Carrying Value(A) | Fair Value | Discount Rate | Prepayment Rate | Default Rate | |||||||||||||||||||||||||||
Performing Loans | $ | 61,008 | $ | 60,904 | 6.4 | % | 7.7 | % | 1.9 | % | ||||||||||||||||||||||
(A) Includes accrued interest receivable. | ||||||||||||||||||||||||||||||||
For non-performing loans, the significant inputs to these models include discount rates, loss severities, and market-based assumptions regarding the timing and amount of expected cash flows primarily based upon the performance of the loan pool and liquidation attributes. | ||||||||||||||||||||||||||||||||
Loan Type | Carrying Value | Fair Value | Discount Rate | Default Rate | Loss Severity | |||||||||||||||||||||||||||
Non-Performing Loans | $ | 425,622 | $ | 428,292 | 7.4 | % | 97.5 | % | 22.2 | % | ||||||||||||||||||||||
EQUITY_AND_EARNINGS_PER_SHARE_
EQUITY AND EARNINGS PER SHARE (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Equity And Earnings Per Share | ' | ||||||||
Schedule of outstanding options | ' | ||||||||
New Residential’s outstanding options at June 30, 2014 consisted of the following: | |||||||||
Number of Options | Strike Price | Maturity Date | |||||||
162,500 | $ | 16.95 | 11/22/14 | ||||||
330,000 | 15.97 | 1/12/15 | |||||||
2,000 | 16.68 | 8/1/15 | |||||||
170,000 | 15.87 | 11/1/16 | |||||||
242,000 | 16.9 | 1/23/17 | |||||||
456,000 | 14.96 | 4/11/17 | |||||||
1,495,166 | 3.29 | 3/29/21 | |||||||
2,294,833 | 2.49 | 9/27/21 | |||||||
2,000 | 2.74 | 12/20/21 | |||||||
1,867,167 | 3.41 | 4/3/22 | |||||||
2,265,000 | 3.67 | 5/21/22 | |||||||
2,499,167 | 3.67 | 7/31/22 | |||||||
5,750,000 | 5.12 | 1/11/23 | |||||||
2,300,000 | 5.74 | 2/15/23 | |||||||
8,000 | 6.79 | 6/2/23 | |||||||
2,875,000 | 6.1 | 4/30/24 | |||||||
Total/Weighted Average | 22,718,833 | $ | 5.12 | ||||||
As of June 30, 2014, New Residential’s outstanding options were summarized as follows: | |||||||||
Held by the Manager | 17,925,463 | ||||||||
Issued to the Manager and subsequently transferred to certain of the Manager’s employees | 4,781,370 | ||||||||
Issued to the independent directors | 12,000 | ||||||||
Total | 22,718,833 | ||||||||
TRANSACTIONS_WITH_AFFILIATES_A1
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Transactions With Affiliates And Affiliated Entities | ' | |||||||||||||||
Schedule of affiliate transactions | ' | |||||||||||||||
Due to affiliates is comprised of the following amounts: | ||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
Management fees | $ | 3,415 | $ | 1,495 | ||||||||||||
Incentive compensation | 22,201 | 16,847 | ||||||||||||||
Expense reimbursements and other | 516 | 827 | ||||||||||||||
$ | 26,132 | $ | 19,169 | |||||||||||||
Affiliate expenses and fees were comprised of: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Management fees | $ | 4,915 | $ | 4,072 | $ | 9,401 | $ | 6,397 | ||||||||
Incentive compensation | 18,863 | 878 | 22,201 | 878 | ||||||||||||
Expense reimbursements(A) | 125 | — | 250 | — | ||||||||||||
Total | $ | 23,903 | $ | 4,950 | $ | 31,852 | $ | 7,275 | ||||||||
(A) | Included in General and Administrative Expenses in the Condensed Consolidated Statements of Income. |
RECLASSIFICATION_FROM_ACCUMULA1
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Reclassification From Accumulated Other Comprehensive Income Into Net Income | ' | ||||||||||||||||||
Schedule of reclassification from accumulated other comprehensive income into net income | ' | ||||||||||||||||||
The following table summarizes the amounts reclassified out of accumulated other comprehensive income into net income: | |||||||||||||||||||
Accumulated Other Comprehensive | Statement of Income Location | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Income Components | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Reclassification of net realized | Gain on settlement of | $ | (57,284 | ) | $ | (58 | ) | $ | (61,776 | ) | $ | (58 | ) | ||||||
(gain) loss on securities into | securities | ||||||||||||||||||
earnings | |||||||||||||||||||
Reclassification of net realized | Other-than-temporary | 615 | 3,756 | 943 | 3,756 | ||||||||||||||
(gain) loss on securities into | impairment on securities | ||||||||||||||||||
earnings | |||||||||||||||||||
Total reclassifications | $ | (56,669 | ) | $ | 3,698 | $ | (60,833 | ) | $ | 3,698 | |||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of components of income taxes | ' | ||||||||||||||||
The provision for income taxes consists of the following: | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 2,236 | $ | — | $ | 2,453 | $ | — | |||||||||
State and Local | 1,514 | — | 1,584 | — | |||||||||||||
Total Current Provision | 3,750 | — | 4,037 | — | |||||||||||||
Deferred: | |||||||||||||||||
Federal | 13,236 | — | 13,236 | — | |||||||||||||
State and Local | 4,409 | — | 4,409 | — | |||||||||||||
Total Deferred Provision | 17,645 | — | 17,645 | — | |||||||||||||
Total Provision for Income Taxes | $ | 21,395 | $ | — | $ | 21,682 | $ | — | |||||||||
GENERAL_Details_Narrative
GENERAL (Details Narrative) | Jun. 30, 2014 | 15-May-13 |
Related Party Transaction [Line Items] | ' | ' |
REIT Distribution Threshold for Nontaxation | 90.00% | ' |
Shares held by Fortress and affiliates in Newcastle | 5,300,000 | ' |
Stock Options outstanding | 22,718,833 | ' |
Management fee rate (percent) | 1.50% | ' |
Manager | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Stock Options outstanding | 17,925,463 | 21,500,000 |
OTHER_INCOME_ASSETS_AND_LIABIL2
OTHER INCOME, ASSETS AND LIABILITIES - Other Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Other income (loss), net | ' | ' | ' | ' |
Gain (loss) on derivative instruments | ($3,801) | $0 | ($2,444) | $0 |
Gain (loss) on transfer of loans to REO | 6,694 | 0 | 6,694 | 0 |
Total Other income (loss), net | $2,893 | $0 | $4,250 | $0 |
OTHER_INCOME_ASSETS_AND_LIABIL3
OTHER INCOME, ASSETS AND LIABILITIES - Other Assets and Other Liabilities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Other Assets | ' | ' | ||
Margin receivable | $772 | $40,132 | ||
Interest and other receivables | 5,936 | 7,548 | ||
Deferred financing costs, net | 5,554 | [1] | 4,773 | [1] |
Real Estate Owned | 30,976 | [2] | 0 | [2] |
Other Assets | 3,517 | 689 | ||
Other assets | 46,755 | 53,142 | ||
Amortization of deferred financing costs | 6,517 | 768 | ||
Other Liabilities | ' | ' | ||
Interest payable | 2,185 | 4,010 | ||
Accounts payable | 4,950 | 2,829 | ||
Derivative liability | 0 | 18 | ||
Current taxes payable | 527 | 0 | ||
Other liabilities | 917 | 0 | ||
Accrued expenses and other liabilities | $8,579 | $6,857 | ||
[1] | Deferred financing costs is net of accumulated amortization of $6,517 and $768 as of June 30, 2014 and December 31, 2013, respectively. | |||
[2] | Real estate owned ("REO") assets are those individual properties New Residential purchased or received in satisfaction of a debt (e.g., by taking legal title or physical possession). REO assets are initially recognized at fair value less costs to sell and the carrying value of the acquired property is reviewed on a recurring basis and adjusted, if necessary, to the lower of cost or fair value. |
OTHER_INCOME_ASSETS_AND_LIABIL4
OTHER INCOME, ASSETS AND LIABILITIES - Accretion of Discount and Other Amortization (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Accretion of discount and other amortization: | ' | ' |
Accretion of servicer advance interest income | $102,823 | $0 |
Accretion of excess mortgage servicing rights income | 24,789 | 20,781 |
Accretion of net discount on securities and loans | 12,477 | 6,596 |
Amortization of deferred financing costs | -5,750 | 0 |
Accretion of net discount on securities and loans | $134,339 | $27,377 |
SEGMENT_REPORTING_Details
SEGMENT REPORTING (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Interest income | $92,656 | $22,999 | $164,146 | $39,190 | ' |
Interest expense | 36,512 | 2,651 | 75,509 | 3,550 | ' |
Net Interest Income | 56,144 | 20,348 | 88,637 | 35,640 | ' |
Impairment | 908 | 3,756 | 1,400 | 3,756 | ' |
Other income | 177,889 | 98,182 | 212,939 | 101,009 | ' |
Operating expenses | 29,522 | 5,552 | 39,421 | 10,596 | ' |
Income (Loss) Before Income Taxes | 203,603 | 109,222 | 260,755 | 122,297 | ' |
Income tax expense | 21,395 | 0 | 21,682 | 0 | ' |
Net income (loss) | 182,208 | 109,222 | 239,073 | 122,297 | ' |
Noncontrolling interests in Income (Loss) of Consolidated Subsidiaries | 58,705 | 0 | 66,798 | 0 | ' |
Net income (loss) attributable to common stockholders | 123,503 | 109,222 | 172,275 | 122,297 | ' |
Investments | 6,613,116 | ' | 6,613,116 | ' | ' |
Cash and cash equivalents | 311,126 | ' | 311,126 | ' | ' |
Restricted cash | 37,327 | ' | 37,327 | ' | 33,338 |
Derivative assets | 30,992 | ' | 30,992 | ' | 35,926 |
Other assets | 46,755 | ' | 46,755 | ' | 53,142 |
Total assets | 7,039,316 | ' | 7,039,316 | ' | 5,958,658 |
Debt | 5,104,627 | ' | 5,104,627 | ' | ' |
Other liabilities | 122,909 | ' | 122,909 | ' | ' |
Total liabilities | 5,227,536 | ' | 5,227,536 | ' | 4,445,583 |
Total equity | 1,811,780 | ' | 1,811,780 | ' | 1,513,075 |
Noncontrolling interests in equity of consolidated subsidiaries | 313,301 | ' | 313,301 | ' | 247,225 |
Total New Residential stockholders’ equity | 1,498,479 | ' | 1,498,479 | ' | 1,265,850 |
Investments in equity method investees | 580,268 | ' | 580,268 | ' | ' |
Excess MSRs | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Interest income | 10,973 | 10,745 | 24,789 | 20,780 | ' |
Interest expense | 0 | 0 | 1,291 | 0 | ' |
Net Interest Income | 10,973 | 10,745 | 23,498 | 20,780 | ' |
Impairment | 0 | 0 | 0 | 0 | ' |
Other income | 18,245 | 61,960 | 31,221 | 64,787 | ' |
Operating expenses | 320 | 34 | 385 | 96 | ' |
Income (Loss) Before Income Taxes | 28,898 | 72,671 | 54,334 | 85,471 | ' |
Income tax expense | 0 | 0 | 0 | 0 | ' |
Net income (loss) | 28,898 | 72,671 | 54,334 | 85,471 | ' |
Noncontrolling interests in Income (Loss) of Consolidated Subsidiaries | 0 | 0 | 0 | 0 | ' |
Net income (loss) attributable to common stockholders | 28,898 | 72,671 | 54,334 | 85,471 | ' |
Investments | 702,636 | ' | 702,636 | ' | ' |
Cash and cash equivalents | 3,405 | ' | 3,405 | ' | ' |
Restricted cash | 0 | ' | 0 | ' | ' |
Derivative assets | 0 | ' | 0 | ' | ' |
Other assets | 0 | ' | 0 | ' | ' |
Total assets | 706,041 | ' | 706,041 | ' | ' |
Debt | 0 | ' | 0 | ' | ' |
Other liabilities | 1,205 | ' | 1,205 | ' | ' |
Total liabilities | 1,205 | ' | 1,205 | ' | ' |
Total equity | 704,836 | ' | 704,836 | ' | ' |
Noncontrolling interests in equity of consolidated subsidiaries | 0 | ' | 0 | ' | ' |
Total New Residential stockholders’ equity | 704,836 | ' | 704,836 | ' | ' |
Investments in equity method investees | 330,220 | ' | 330,220 | ' | ' |
Servicer Advances | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Interest income | 57,107 | 0 | 102,823 | 0 | ' |
Interest expense | 29,772 | 0 | 61,728 | 0 | ' |
Net Interest Income | 27,335 | 0 | 41,095 | 0 | ' |
Impairment | 0 | 0 | 0 | 0 | ' |
Other income | 82,709 | 0 | 82,709 | 0 | ' |
Operating expenses | 769 | 0 | 1,019 | 0 | ' |
Income (Loss) Before Income Taxes | 109,275 | 0 | 122,785 | 0 | ' |
Income tax expense | 21,395 | 0 | 21,682 | 0 | ' |
Net income (loss) | 87,880 | 0 | 101,103 | 0 | ' |
Noncontrolling interests in Income (Loss) of Consolidated Subsidiaries | 58,705 | 0 | 66,798 | 0 | ' |
Net income (loss) attributable to common stockholders | 29,175 | 0 | 34,305 | 0 | ' |
Investments | 3,679,105 | ' | 3,679,105 | ' | ' |
Cash and cash equivalents | 120,722 | ' | 120,722 | ' | ' |
Restricted cash | 37,327 | ' | 37,327 | ' | ' |
Derivative assets | 0 | ' | 0 | ' | ' |
Other assets | 7,925 | ' | 7,925 | ' | ' |
Total assets | 3,845,079 | ' | 3,845,079 | ' | ' |
Debt | 3,265,530 | ' | 3,265,530 | ' | ' |
Other liabilities | 20,595 | ' | 20,595 | ' | ' |
Total liabilities | 3,286,125 | ' | 3,286,125 | ' | ' |
Total equity | 558,954 | ' | 558,954 | ' | ' |
Noncontrolling interests in equity of consolidated subsidiaries | 313,301 | ' | 313,301 | ' | ' |
Total New Residential stockholders’ equity | 245,653 | ' | 245,653 | ' | ' |
Investments in equity method investees | 0 | ' | 0 | ' | ' |
Real Estate Securities | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Interest income | 19,522 | 11,378 | 30,760 | 17,188 | ' |
Interest expense | 3,512 | 2,651 | 7,581 | 3,550 | ' |
Net Interest Income | 16,010 | 8,727 | 23,179 | 13,638 | ' |
Impairment | 615 | 3,756 | 943 | 3,756 | ' |
Other income | 53,413 | 58 | 58,455 | 58 | ' |
Operating expenses | 571 | 27 | 631 | 22 | ' |
Income (Loss) Before Income Taxes | 68,237 | 5,002 | 80,060 | 9,918 | ' |
Income tax expense | 0 | 0 | 0 | 0 | ' |
Net income (loss) | 68,237 | 5,002 | 80,060 | 9,918 | ' |
Noncontrolling interests in Income (Loss) of Consolidated Subsidiaries | 0 | 0 | 0 | 0 | ' |
Net income (loss) attributable to common stockholders | 68,237 | 5,002 | 80,060 | 9,918 | ' |
Investments | 1,463,903 | ' | 1,463,903 | ' | ' |
Cash and cash equivalents | 22,714 | ' | 22,714 | ' | ' |
Restricted cash | 0 | ' | 0 | ' | ' |
Derivative assets | 256 | ' | 256 | ' | ' |
Other assets | 6,499 | ' | 6,499 | ' | ' |
Total assets | 1,493,372 | ' | 1,493,372 | ' | ' |
Debt | 1,331,354 | ' | 1,331,354 | ' | ' |
Other liabilities | 254 | ' | 254 | ' | ' |
Total liabilities | 1,331,608 | ' | 1,331,608 | ' | ' |
Total equity | 161,764 | ' | 161,764 | ' | ' |
Noncontrolling interests in equity of consolidated subsidiaries | 0 | ' | 0 | ' | ' |
Total New Residential stockholders’ equity | 161,764 | ' | 161,764 | ' | ' |
Investments in equity method investees | 0 | ' | 0 | ' | ' |
Real Estate Loans | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Interest income | 5,054 | 838 | 5,774 | 1,184 | ' |
Interest expense | 1,191 | 0 | 1,389 | 0 | ' |
Net Interest Income | 3,863 | 838 | 4,385 | 1,184 | ' |
Impairment | 293 | 0 | 457 | 0 | ' |
Other income | 2,187 | 0 | 2,858 | 0 | ' |
Operating expenses | 887 | 125 | 977 | 130 | ' |
Income (Loss) Before Income Taxes | 4,870 | 713 | 5,809 | 1,054 | ' |
Income tax expense | 0 | 0 | 0 | 0 | ' |
Net income (loss) | 4,870 | 713 | 5,809 | 1,054 | ' |
Noncontrolling interests in Income (Loss) of Consolidated Subsidiaries | 0 | 0 | 0 | 0 | ' |
Net income (loss) attributable to common stockholders | 4,870 | 713 | 5,809 | 1,054 | ' |
Investments | 517,424 | ' | 517,424 | ' | ' |
Cash and cash equivalents | 617 | ' | 617 | ' | ' |
Restricted cash | 0 | ' | 0 | ' | ' |
Derivative assets | 30,736 | ' | 30,736 | ' | ' |
Other assets | 31,435 | ' | 31,435 | ' | ' |
Total assets | 580,212 | ' | 580,212 | ' | ' |
Debt | 382,743 | ' | 382,743 | ' | ' |
Other liabilities | 1,925 | ' | 1,925 | ' | ' |
Total liabilities | 384,668 | ' | 384,668 | ' | ' |
Total equity | 195,544 | ' | 195,544 | ' | ' |
Noncontrolling interests in equity of consolidated subsidiaries | 0 | ' | 0 | ' | ' |
Total New Residential stockholders’ equity | 195,544 | ' | 195,544 | ' | ' |
Investments in equity method investees | 0 | ' | 0 | ' | ' |
Consumer Loans | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Interest income | 0 | 0 | 0 | 0 | ' |
Interest expense | 1,538 | 0 | 3,021 | 0 | ' |
Net Interest Income | -1,538 | 0 | -3,021 | 0 | ' |
Impairment | 0 | 0 | 0 | 0 | ' |
Other income | 21,335 | 36,164 | 37,695 | 36,164 | ' |
Operating expenses | 90 | 0 | 113 | 1,951 | ' |
Income (Loss) Before Income Taxes | 19,707 | 36,164 | 34,561 | 34,213 | ' |
Income tax expense | 0 | 0 | 0 | 0 | ' |
Net income (loss) | 19,707 | 36,164 | 34,561 | 34,213 | ' |
Noncontrolling interests in Income (Loss) of Consolidated Subsidiaries | 0 | 0 | 0 | 0 | ' |
Net income (loss) attributable to common stockholders | 19,707 | 36,164 | 34,561 | 34,213 | ' |
Investments | 250,048 | ' | 250,048 | ' | ' |
Cash and cash equivalents | 2,152 | ' | 2,152 | ' | ' |
Restricted cash | 0 | ' | 0 | ' | ' |
Derivative assets | 0 | ' | 0 | ' | ' |
Other assets | 557 | ' | 557 | ' | ' |
Total assets | 252,757 | ' | 252,757 | ' | ' |
Debt | 125,000 | ' | 125,000 | ' | ' |
Other liabilities | 519 | ' | 519 | ' | ' |
Total liabilities | 125,519 | ' | 125,519 | ' | ' |
Total equity | 127,238 | ' | 127,238 | ' | ' |
Noncontrolling interests in equity of consolidated subsidiaries | 0 | ' | 0 | ' | ' |
Total New Residential stockholders’ equity | 127,238 | ' | 127,238 | ' | ' |
Investments in equity method investees | 250,048 | ' | 250,048 | ' | ' |
Corporate | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Interest income | 0 | 38 | 0 | 38 | ' |
Interest expense | 499 | 0 | 499 | 0 | ' |
Net Interest Income | -499 | 38 | -499 | 38 | ' |
Impairment | 0 | 0 | 0 | 0 | ' |
Other income | 0 | 0 | 1 | 0 | ' |
Operating expenses | 26,885 | 5,366 | 36,296 | 8,397 | ' |
Income (Loss) Before Income Taxes | -27,384 | -5,328 | -36,794 | -8,359 | ' |
Income tax expense | 0 | 0 | 0 | 0 | ' |
Net income (loss) | -27,384 | -5,328 | -36,794 | -8,359 | ' |
Noncontrolling interests in Income (Loss) of Consolidated Subsidiaries | 0 | 0 | 0 | 0 | ' |
Net income (loss) attributable to common stockholders | -27,384 | -5,328 | -36,794 | -8,359 | ' |
Investments | 0 | ' | 0 | ' | ' |
Cash and cash equivalents | 161,516 | ' | 161,516 | ' | ' |
Restricted cash | 0 | ' | 0 | ' | ' |
Derivative assets | 0 | ' | 0 | ' | ' |
Other assets | 339 | ' | 339 | ' | ' |
Total assets | 161,855 | ' | 161,855 | ' | ' |
Debt | 0 | ' | 0 | ' | ' |
Other liabilities | 98,411 | ' | 98,411 | ' | ' |
Total liabilities | 98,411 | ' | 98,411 | ' | ' |
Total equity | 63,444 | ' | 63,444 | ' | ' |
Noncontrolling interests in equity of consolidated subsidiaries | 0 | ' | 0 | ' | ' |
Total New Residential stockholders’ equity | 63,444 | ' | 63,444 | ' | ' |
Investments in equity method investees | $0 | ' | $0 | ' | ' |
INVESTMENTS_IN_EXCESS_MORTGAGE4
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS (Details Narrative) (USD $) | Jun. 30, 2014 | Dec. 13, 2011 | Jun. 30, 2014 | Jun. 05, 2012 | Jun. 30, 2014 | Jun. 29, 2012 | Sep. 30, 2013 | Jun. 30, 2014 | 20-May-13 | Jun. 30, 2014 | Sep. 23, 2013 | Jun. 30, 2014 | Jan. 17, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | 12-May-14 | 12-May-14 | 13-May-14 | Jun. 30, 2014 | 13-May-14 | Jun. 30, 2014 | 20-May-13 | Jun. 30, 2014 |
MSR Pool 1 | MSR Pool 1 | MSR Pool 2 | MSR Pool 2 | MSR Pools 3, 4 and 5 | MSR Pool 5 | MSR Pool 5 | MSR Pool 11 | MSR Pool 11 | MSR Pool 12 | MSR Pool 12 | MSR Pool 17 | MSR Pool 17 | MSR Pool 18 | MSR Pool 18 | MSRs Pool 14, 16 and 19 | MSRs Pool 14, 16 and 19 | MSR Pool 20 | MSR Pool 20 | MSR Pool 20 | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | ||
MSR Pool 11 | MSR Pool 11 | MSRs | ||||||||||||||||||||||
Investment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Discount Rate, Percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% |
Amount invested | ' | $43,700,000 | ' | $42,300,000 | ' | $176,500,000 | $26,600,000 | ' | $2,400,000 | ' | $17,400,000 | ' | $19,100,000 | ' | $17,000,000 | ' | $33,900,000 | ' | $2,200,000 | ' | ' | ' | ' | ' |
Percentage of Investment owned by New Residential | ' | 65.00% | 65.00% | 65.00% | 65.00% | 65.00% | ' | 80.00% | 66.70% | 66.70% | 40.00% | 40.00% | 33.30% | 33.30% | ' | 40.00% | ' | ' | ' | 33.30% | ' | ' | 67.00% | ' |
Percentage of Investment co-owned by Nationstar | ' | 35.00% | ' | 35.00% | ' | 35.00% | ' | ' | 33.30% | ' | 20.00% | ' | 33.30% | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | 33.00% | ' |
Conforming loans in GSE pools of portfolio (percent) | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of loans in private label securitizations portfolio | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional percentage of investment purchased by New Residential | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Investment owned by counterparty | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance of underlying loans | $95,166,259,000 | ' | $6,431,132,000 | ' | $7,461,126,000 | ' | ' | $34,537,052,000 | ' | $437,676,000 | ' | $4,814,648,000 | $8,100,000,000 | $7,953,370,000 | ' | $8,041,279,000 | ' | $12,800,000,000 | ' | $701,701,000 | $700,000,000 | $16,491,872,000 | ' | $159,821,724,000 |
INVESTMENTS_IN_EXCESS_MORTGAGE5
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Direct Investments (Details) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 13, 2011 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 05, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | 20-May-13 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 23, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jan. 17, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | 13-May-14 | Jun. 30, 2014 |
MSR Pool 1 | MSR Pool 1 | MSR Pool 1 - Recapture Agreement | MSR Pool 2 | MSR Pool 2 | MSR Pool 2 - Recapture Agreement | MSR Pool 3 | MSR Pool 3 - Recapture Agreement | MSR Pool 4 | MSR Pool 4 - Recapture Agreement | MSR Pool 5 | MSR Pool 5 - Recapture Agreement | MSR Pool 11 | MSR Pool 11 | MSR Pool 11 - Recapture Agreement | MSR Pool 12 | MSR Pool 12 | MSR Pool 12 - Recapture Agreement | MSR Pool 14 | MSR Pool 14 - Recapture Agreement | MSR Pool 16 | MSR Pool 16 - Recapture Agreement | MSR Pool 17 | MSR Pool 17 | MSR Pool 17 - Recapture Agreement | MSR Pool 18 | MSR Pool 18 - Recapture Agreement | MSR Pool 19 | MSR Pool 19 - Recapture Agreement | MSR Pool 20 | MSR Pool 20 | MSR Pool 20 - Recapture Agreement | |||||
Investment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance of underlying loans | $95,166,259 | ' | $95,166,259 | ' | $6,431,132 | ' | $0 | $7,461,126 | ' | $0 | $7,369,718 | $0 | $4,803,347 | $0 | $34,537,052 | $0 | $437,676 | ' | $0 | $4,814,648 | ' | $0 | $952,767 | $0 | $1,412,598 | $0 | $7,953,370 | $8,100,000 | $0 | $8,041,279 | $0 | $10,249,845 | $0 | $701,701 | $700,000 | $0 |
Percentage of Investment owned by New Residential | ' | ' | ' | ' | 65.00% | 65.00% | 65.00% | 65.00% | 65.00% | 65.00% | 65.00% | 65.00% | 65.00% | 65.00% | 80.00% | 80.00% | 66.70% | 66.70% | 66.70% | 40.00% | 40.00% | 40.00% | 33.30% | 33.30% | 33.30% | 33.30% | 33.30% | 33.30% | 33.30% | 40.00% | 40.00% | 33.30% | 33.30% | 33.30% | ' | 33.30% |
Amortized Cost Basis | 297,592 | ' | 297,592 | ' | 24,518 | ' | 108 | 28,157 | ' | 327 | 23,233 | 1,877 | 9,399 | 2,020 | 110,258 | 8,913 | 1,996 | ' | 254 | 14,990 | ' | 462 | 2,252 | 140 | 2,177 | 662 | 18,481 | ' | 1,114 | 14,395 | 1,111 | 26,822 | 1,703 | 2,030 | ' | 193 |
Carrying Value | 372,416 | ' | 372,416 | ' | 34,313 | ' | 6,102 | 32,951 | ' | 6,089 | 31,000 | 6,226 | 13,852 | 3,860 | 136,962 | 6,111 | 2,356 | ' | 293 | 17,574 | ' | 236 | 2,470 | 170 | 2,211 | 767 | 18,876 | ' | 644 | 15,743 | 818 | 28,407 | 1,941 | 2,206 | ' | 238 |
Weighted average life | ' | ' | '5 years 9 months 18 days | ' | '5 years 3 months 18 days | ' | '12 years | '5 years 6 months | ' | '12 years 7 months 6 days | '5 years 1 month 6 days | '12 years 1 month 6 days | '4 years 9 months 18 days | '12 years 1 month 6 days | '5 years 4 months 24 days | '13 years | '6 years 6 months | ' | '13 years 10 months 24 days | '4 years 9 months 18 days | ' | '12 years 8 months 12 days | '5 years 3 months 18 days | '12 years 10 months 24 days | '5 years 6 months | '11 years 1 month 6 days | '5 years 2 months 12 days | ' | '12 years 9 months 18 days | '4 years 7 months 6 days | '12 years 4 months 24 days | '6 years 2 months 12 days | '13 years 8 months 12 days | '5 years 4 months 24 days | ' | '12 years |
Change in fair value of investments recorded in other income | $5,502 | $41,833 | $12,104 | $43,691 | ($161) | ' | $283 | ($222) | ' | $427 | ($497) | $440 | $505 | $36 | $3,613 | $818 | $371 | ' | $57 | $2,525 | ' | $6 | $218 | $30 | $33 | $106 | $395 | ' | ($470) | $1,345 | $199 | $1,586 | $238 | $177 | ' | $46 |
INVESTMENTS_IN_EXCESS_MORTGAGE6
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Geographic Distribution (Details) (MSRs) | Jun. 30, 2014 | Dec. 31, 2013 |
Concentration Risk [Line Items] | ' | ' |
Percentage of UPB | 100.00% | 100.00% |
California | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of UPB | 30.00% | 31.50% |
Florida | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of UPB | 8.50% | 9.80% |
New York | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of UPB | 4.40% | 4.90% |
Maryland | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of UPB | 4.10% | 3.50% |
Washington | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of UPB | 3.90% | 3.90% |
Texas | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of UPB | 3.80% | 4.00% |
Virginia | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of UPB | 3.50% | 3.10% |
Arizona | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of UPB | 3.40% | 3.50% |
New Jersey | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of UPB | 3.30% | 3.30% |
Illinois | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of UPB | 2.80% | 2.70% |
Other U.S. | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Percentage of UPB | 32.30% | 29.80% |
INVESTMENTS_IN_EXCESS_MORTGAGE7
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS EQUITY, METHOD INVESTEES (Details Narrative) (USD $) | 0 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||
In Millions, unless otherwise specified | 20-May-13 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jan. 04, 2013 | Jun. 30, 2014 | Jan. 06, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | 20-May-13 | Jun. 30, 2014 |
MSR Pool 11 | MSR Pool 11 | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | |
MSRs Pool 6 | MSRs Pool 6 | MSR Pools 7, 8, 9, 10 | MSRs Pool 10 | MSRs Pool 10 | MSRs Pool 10 | MSR Pool 11 | MSR Pool 11 | MSRs | |||||
Fortress-managed Affiliate | |||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount contributed to acquire joint venture | ' | ' | ' | ' | $28.90 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount committed to invest in joint venture | ' | ' | ' | ' | ' | ' | 340 | ' | ' | ' | ' | 37.8 | ' |
Percentage ownership acquired in joint venture | ' | ' | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | ' | 50.00% | ' | 50.00% | 50.00% | 50.00% |
Percentage of Investment co-owned by Nationstar | 33.30% | ' | ' | ' | 33.00% | ' | 33.00% | ' | ' | ' | ' | 33.00% | ' |
Percentage of Investment owned by New Residential | 66.70% | 66.70% | ' | ' | 67.00% | ' | 67.00% | ' | ' | ' | ' | 67.00% | ' |
Percentage of loans in private label securitizations portfolio | ' | ' | ' | ' | ' | ' | 53.00% | ' | ' | ' | ' | ' | ' |
Amount invested | $2.40 | ' | ' | ' | ' | ' | ' | $13.90 | ' | $13.90 | ' | ' | ' |
Additional percentage interest acquired by New Residential | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | 10.00% | ' | ' | ' |
Weighted Average Discount Rate, Percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% |
INVESTMENTS_IN_EXCESS_MORTGAGE8
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Summary of Investments (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
New Residential's investment | $330,220 | ' | $330,220 | ' | $352,766 |
Excess Mortgage Servicing Rights Investees | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Excess MSR assets | 655,766 | ' | 655,766 | ' | 703,681 |
Other assets | 8,451 | ' | 8,451 | ' | 5,534 |
Other liabilities | 3,777 | ' | 3,777 | ' | 3,683 |
Equity | 660,440 | ' | 660,440 | ' | 705,532 |
New Residential's investment | 330,220 | ' | 330,220 | ' | 352,766 |
New Residential's ownership | 50.00% | ' | 50.00% | ' | 50.00% |
Interest income | 17,292 | 8,140 | 35,785 | 13,756 | ' |
Other income | 8,194 | 34,528 | 2,489 | 31,374 | ' |
Expenses | -1 | -2,414 | -41 | -2,938 | ' |
Net income | $25,485 | $40,254 | $38,233 | $42,192 | ' |
INVESTMENTS_IN_EXCESS_MORTGAGE9
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Excess MSR Investments (Details) (USD $) | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jan. 04, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | 20-May-13 | Jun. 30, 2014 | Jun. 30, 2014 | |||||||||||||
MSR Pool 11 | MSR Pool 11 - Recapture Agreement | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | |||||||||||||||
MSRs Pool 6 | MSRs Pool 6 | MSR Pool 6 Recapture Agreement | MSRs Pool 7 | MSR Pool 7 Recapture Agreement | MSRs Pool 8 | MSR Pool 8 Recapture Agreement | MSRs Pool 9 | MSR Pool 9 Recapture Agreement | MSRs Pool 10 | MSRs Pool 10 | MSRs Pool 10 | MSR Pool 10 Recapture Agreement | MSR Pool 10 Recapture Agreement | MSR Pool 10 Recapture Agreement | MSR Pool 11 | MSR Pool 11 | MSR Pool 11 - Recapture Agreement | MSRs | |||||||||||||||||||
Lower Range | Upper Range | Lower Range | Upper Range | ||||||||||||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Unpaid principal balance of underlying loans | $95,166,259 | $437,676 | $0 | ' | ' | $9,050,743 | ' | ' | $29,547,830 | ' | $13,043,774 | ' | $27,924,457 | ' | $63,763,048 | ' | ' | ' | ' | ' | $16,491,872 | ' | ' | $159,821,724 | |||||||||||||
Investee Interest in Excess MSR | ' | ' | ' | ' | ' | 66.70% | ' | 66.70% | 66.70% | 66.70% | 66.70% | 66.70% | 66.70% | 66.70% | ' | 66.70% | 77.00% | ' | 66.70% | 77.00% | 66.70% | ' | 66.70% | ' | |||||||||||||
New Residential's ownership | ' | ' | ' | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | ' | ' | 50.00% | ' | ' | 50.00% | 50.00% | 50.00% | 50.00% | |||||||||||||
Amortized Cost Basis | 297,592 | 1,996 | 254 | ' | ' | 36,286 | [1] | ' | 5,951 | [1] | 94,036 | [1] | 12,209 | [1] | 52,744 | [1] | 4,707 | [1] | 97,755 | [1] | 29,343 | [1] | 189,488 | [1] | ' | ' | 13,038 | [1] | ' | ' | 41,115 | [1] | ' | 22,640 | [1] | 599,312 | [1] |
Carrying Value | $372,416 | $2,356 | $293 | ' | ' | $45,089 | [2] | ' | $8,551 | [2] | $95,882 | [2] | $24,136 | [2] | $50,716 | [2] | $12,630 | [2] | $122,440 | [2] | $30,134 | [2] | $190,143 | [2] | ' | ' | $10,546 | [2] | ' | ' | $55,440 | [2] | ' | $10,059 | [2] | $655,766 | [2] |
Weighted average life | '5 years 9 months 18 days | '6 years 6 months | '13 years 10 months 24 days | ' | ' | '5 years 1 month 6 days | ' | '12 years 2 months 12 days | '5 years 2 months 12 days | '12 years 4 months 24 days | '5 years 2 months 12 days | '12 years 1 month 6 days | '4 years 10 months 24 days | '12 years 1 month 6 days | '5 years 1 month 6 days | ' | ' | '12 years 7 months 6 days | ' | ' | '5 years 7 months 6 days | ' | '13 years 1 month 6 days | '6 years 2 months 12 days | |||||||||||||
[1] | Represents the amortized cost basis of the equity method investees in which New Residential holds a 50% interest. The amortized cost basis of the Recapture Agreements is determined based on the relative fair values of the Recapture Agreements and related Excess MSRs at the time they were acquired. | ||||||||||||||||||||||||||||||||||||
[2] | Represents the carrying value of the Excess MSRs held in equity method investees, in which New Residential holds a 50% interest. Carrying value represents the fair value of the pools or Recapture Agreements, as applicable. |
Recovered_Sheet1
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Geographic Distribution (Details) (Excess Mortgage Servicing Rights Investees) | Jun. 30, 2014 | Dec. 31, 2013 |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Percentage of UPB | 100.00% | 100.00% |
California | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Percentage of UPB | 23.50% | 23.50% |
Florida | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Percentage of UPB | 9.10% | 9.20% |
New York | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Percentage of UPB | 5.50% | 5.30% |
Texas | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Percentage of UPB | 4.90% | 4.90% |
Georgia | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Percentage of UPB | 4.00% | 4.00% |
New Jersey | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Percentage of UPB | 3.80% | 3.70% |
Illinois | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Percentage of UPB | 3.50% | 3.50% |
Maryland | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Percentage of UPB | 3.20% | 3.10% |
Virginia | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Percentage of UPB | 3.20% | 3.10% |
Washington | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Percentage of UPB | 2.80% | 2.80% |
Other U.S. | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Percentage of UPB | 36.50% | 36.90% |
INVESTMENTS_IN_SERVICER_ADVANC2
INVESTMENTS IN SERVICER ADVANCES (Details Narrative) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2014 | Dec. 17, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
Servicer Advance Joint Venture | Servicer Advance Joint Venture | Servicer Advance Joint Venture | Servicer Advance Joint Venture | Advance Purchaser LLC [Member] | ||||
Noncontrolling third-party investors | ||||||||
Investment [Line Items] | ' | ' | ' | ' | ' | ' | ' | |
Servicer advances, at fair value | $3,679,105,000 | $2,665,551,000 | ' | $3,679,105,000 | [1] | $3,200,000,000 | ' | ' |
Notes payable issued for purchase | ' | ' | 3,300,000,000 | ' | ' | ' | ' | |
New Residential's ownership | ' | ' | ' | 44.50% | ' | ' | ' | |
Amount committed to invest in joint venture | ' | ' | ' | 312,700,000 | ' | 389,600,000 | ' | |
Equity Method Investment, Amount of Distributed Capital Recallable From Co-Investor | ' | ' | ' | ' | ' | ' | 131,000,000 | |
Equity Method Investment, Amount of Distributed Capital Recallable | ' | ' | ' | ' | ' | ' | 95,800,000 | |
Amount invested in joint venture | ' | ' | ' | $197,900,000 | ' | $390,300,000 | ' | |
Servicer base fee to be paid to Nationstar | 9.20% | ' | ' | ' | ' | ' | ' | |
[1] | Carrying value represents the fair value of the investments in servicer advances, including the basic fee component of the related MSRs. |
INVESTMENTS_IN_SERVICER_ADVANC3
INVESTMENTS IN SERVICER ADVANCES - Investment in Servicer Advances (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 17, 2013 | |
In Thousands, unless otherwise specified | Servicer Advance Joint Venture | Servicer Advance Joint Venture | |||
Investments in and Advances to Affiliates [Line Items] | ' | ' | ' | ' | |
Servicer advance fee, amortized cost basis | ' | ' | $3,596,228 | ' | |
Servicer advances, at fair value | 3,679,105 | 2,665,551 | 3,679,105 | [1] | 3,200,000 |
Servicer advances, weighted average yield | ' | ' | 5.60% | ' | |
Servicer advance, weighted average life | ' | ' | '3 years 9 months 18 days | [2] | ' |
Change in fair value of investments in servicer advances | ' | ' | $82,877 | ' | |
[1] | Carrying value represents the fair value of the investments in servicer advances, including the basic fee component of the related MSRs. | ||||
[2] | Weighted Average Life represents the weighted average expected timing of the receipt of expected net cash flows for this investment. |
INVESTMENTS_IN_SERVICER_ADVANC4
INVESTMENTS IN SERVICER ADVANCES - JV Investment in Servicer Advances (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 17, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |||
In Thousands, unless otherwise specified | Servicer Advance Joint Venture | Servicer Advance Joint Venture | Servicer Advance Joint Venture | Servicer Advance Joint Venture | |||||
Servicer Advances | Servicer Advances | ||||||||
Investment [Line Items] | ' | ' | ' | ' | ' | ' | |||
Unpaid principal balance of underlying loans | $95,166,259 | ' | ' | ' | $102,159,164 | [1] | $43,444,216 | [1] | |
Servicer advances, at fair value | 3,679,105 | 2,665,551 | 3,679,105 | [2] | 3,200,000 | 3,551,464 | [1] | 2,661,130 | [1] |
Servicer Advances to UPB of underlying loans | ' | ' | ' | ' | 3.50% | [1] | 6.10% | [1] | |
Notes payable | ' | ' | ' | ' | $3,265,530 | [1] | $2,390,778 | [1] | |
Gross Loan-to-Value | ' | ' | ' | ' | 91.90% | [1] | 89.80% | [1] | |
Net Loan-to-Value | ' | ' | ' | ' | 90.80% | [1],[3] | 88.60% | [1],[3] | |
Gross cost of funds | ' | ' | ' | ' | 3.30% | [1],[4] | 4.00% | [1],[4] | |
Net cost of funds | ' | ' | ' | ' | 2.20% | [1],[4] | 2.30% | [1],[4] | |
[1] | The following types of advances comprise the investments in servicer advances: June 30, 2014 December 31, 2013Principal and interest advances $1,282,504 $1,516,715Escrow advances (taxes and insurance advances) 1,597,466 934,525Foreclosure advances 671,494 209,890 Total $3,551,464 $2,661,130 | ||||||||
[2] | Carrying value represents the fair value of the investments in servicer advances, including the basic fee component of the related MSRs. | ||||||||
[3] | Ratio of face amount of borrowings to par amount of servicer advance collateral, net of an interest reserve maintained by the Buyer. | ||||||||
[4] | Annualized measure of the cost associated with borrowings. Gross Cost of Funds primarily includes interest expense and facility fees. Net Cost of Funds excludes facility fees. |
INVESTMENTS_IN_SERVICER_ADVANC5
INVESTMENTS IN SERVICER ADVANCES - Components of Funded Advances (Details) (Servicer Advance Joint Venture, Servicer Advances, USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Servicer Advance Joint Venture | Servicer Advances | ' | ' |
Investment [Line Items] | ' | ' |
Principal and interest advances | $1,282,504 | $1,516,715 |
Escrow advances (taxes and insurance advances) | 1,597,466 | 934,525 |
Foreclosure advances | 671,494 | 209,890 |
Match funded advances | $3,551,464 | $2,661,130 |
INVESTMENTS_IN_SERVICER_ADVANC6
INVESTMENTS IN SERVICER ADVANCES - Interest Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Investment [Line Items] | ' | ' | ' | ' |
Interest income from investments in servicer advances | $92,656 | $22,999 | $164,146 | $39,190 |
Servicer Advance Investments [Member] | ' | ' | ' | ' |
Investment [Line Items] | ' | ' | ' | ' |
Interest income, gross of amounts attributable to servicer compensation | ' | ' | 153,684 | ' |
Amounts attributable to base servicer compensation | ' | ' | -49,306 | ' |
Amounts attributable to incentive servicer compensation | ' | ' | -1,555 | ' |
Interest income from investments in servicer advances | ' | ' | $102,823 | ' |
INVESTMENTS_IN_REAL_ESTATE_SEC2
INVESTMENTS IN REAL ESTATE SECURITIES (Details Narrative) (USD $) | 6 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | 30-May-14 | 27-May-14 | Mar. 30, 2014 | Mar. 06, 2014 | Jun. 30, 2014 | 27-May-14 | Jun. 30, 2014 | |
Non-Agency RMBS | Non-Agency RMBS | Non-Agency RMBS | Non-Agency RMBS | Non-Agency RMBS | Non-Agency RMBS | Agency RMBS | |||
Investment | |||||||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of securities purchased | ' | ' | ' | ' | ' | $625,000,000 | $1,400,000,000 | ' | $297,800,000 |
Purchase of Non-Agency RMBS | -1,057,464,000 | -124,176,000 | ' | ' | ' | -553,000,000 | -882,000,000 | ' | -316,900,000 |
Face amount of securities sold | ' | ' | ' | ' | ' | ' | 1,900,000,000 | ' | 306,000,000 |
Amortized cost basis of securities sold | ' | ' | ' | ' | 558,800,000 | ' | 1,200,000,000 | ' | 322,900,000 |
Proceeds from sale of real estate securities | ' | ' | ' | ' | ' | ' | 1,300,000,000 | ' | 324,400,000 |
Gain (loss) on sale of debt investments | ' | ' | 39,700,000 | ' | ' | ' | 60,300,000 | ' | 1,500,000 |
Percentage of mezzanine and subordinate tranche purchased | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' |
Mortgage loans pledged | ' | ' | ' | ' | ' | 900,000,000 | ' | ' | ' |
Proceeds from sale of Non-Agency RMBS | 1,273,190,000 | 4,421,000 | 598,500,000 | ' | ' | ' | ' | ' | ' |
Loan count | ' | ' | ' | 16 | ' | ' | ' | ' | ' |
Face amount of mortgage loans | ' | ' | ' | ' | ' | ' | ' | 17,400,000 | ' |
Investment Owned, at Cost | ' | ' | ' | ' | ' | ' | ' | 12,000,000 | ' |
Other than temporary impairment losses | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Real estate securities acquired during the period with credit quality deterioration, face amount | 361,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Real estate securities acquired during the period with credit quality deterioration, expected cash flows | 339,400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Real estate securities acquired during the period with credit quality deterioration, fair value | $258,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
INVESTMENTS_IN_REAL_ESTATE_SEC3
INVESTMENTS IN REAL ESTATE SECURITIES - Available for Sale (Details) (USD $) | 6 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 06, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | ||||
Agency RMBS | Non-Agency RMBS | Non-Agency RMBS | Investments in Real Estate Securities | Fixed Rate Securities | Floating Rate Securities | |||||||
Securities | Securities | Securities | ||||||||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Outstanding face amount | $1,507,595,000 | ' | ' | $1,159,363,000 | [1],[2] | ' | $348,232,000 | $1,507,595,000 | [3] | $64,100,000 | $1,400,000,000 | |
Amortized cost basis | 1,454,915,000 | ' | ' | 1,244,864,000 | [1],[2] | ' | 210,051,000 | 1,454,915,000 | [3] | ' | ' | |
Gains - gross unrealized | ' | ' | ' | 6,179,000 | [1],[2] | ' | 9,186,000 | 15,365,000 | [3] | ' | ' | |
Losses - gross unrealized | ' | ' | ' | -4,031,000 | [1],[2] | ' | -2,346,000 | -6,377,000 | [3] | ' | ' | |
Carrying value | 1,463,903,000 | ' | 1,973,189,000 | 1,247,012,000 | [1],[2],[4] | ' | 216,891,000 | [4] | 1,463,903,000 | [3],[4] | ' | ' |
Number of securities | ' | ' | ' | 120 | [1],[2] | ' | 77 | 197 | [3] | ' | ' | |
Weighted average rating | ' | ' | ' | 'AAA | [1],[2],[5] | ' | 'CCC | [5] | 'AA- | [3],[5] | ' | ' |
Weighted average coupon | ' | ' | ' | 3.12% | [1],[2] | ' | 1.75% | 2.81% | [3] | ' | ' | |
Weighted average yield | ' | ' | ' | 1.50% | [1],[2] | ' | 7.14% | 2.80% | [3] | ' | ' | |
Weighted average life | '5 years 9 months 18 days | ' | ' | '4 years 8 months 12 days | [1],[2],[6] | ' | '8 years 6 months | [6] | '5 years 7 months 6 days | [3],[6] | ' | ' |
Principal Subordination - Weighted Average | ' | ' | ' | ' | ' | 11.00% | [7] | ' | ' | ' | ||
Purchase of Non-Agency RMBS | -1,057,464,000 | -124,176,000 | ' | -316,900,000 | -553,000,000 | -882,000,000 | ' | ' | ' | |||
RMBS principal receivable | $12,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | Amortized cost basis and carrying value include principal receivable of $12.5 million. | |||||||||||
[2] | Includes securities issued or guaranteed by U.S. Government agencies such as the Federal National Mortgage Association (“Fannie Maeâ€) or the Federal Home Loan Mortgage Corporation (“Freddie Macâ€). | |||||||||||
[3] | The total outstanding face amount was $64.1 million for fixed rate securities and $1.4 billion for floating rate securities. | |||||||||||
[4] | Fair value, which is equal to carrying value for all securities. See Note 12 regarding the estimation of fair value. | |||||||||||
[5] | Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. This excludes the ratings of the collateral underlying six bonds for which New Residential was unable to obtain rating information. For each security rated by multiple rating agencies, the lowest rating is used. New Residential used an implied AAA rating for the Agency ARM RMBS. Ratings provided were determined by third party rating agencies, and represent the most recent credit ratings available as of the reporting date and may not be current. | |||||||||||
[6] | The weighted average life is based on the timing of expected principal reduction on the assets. | |||||||||||
[7] | Percentage of the outstanding face amount of securities that is subordinate to New Residential’s investments. |
INVESTMENTS_IN_REAL_ESTATE_SEC4
INVESTMENTS IN REAL ESTATE SECURITIES - Holdings in an Unrealized Loss Position (Details) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Outstanding face amount | $1,507,595 | ' | |
Other Than Temporary Impairment | -974 | -2,071 | |
Amortized cost basis | 1,454,915 | ' | |
Carrying value | 1,463,903 | ' | |
Weighted average life | '5 years 9 months 18 days | ' | |
Securities in an Unrealized Loss Position Less than Twelve Months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Outstanding face amount | 477,511 | ' | |
Before Impairment - Amortized Cost Basis | 450,308 | ' | |
Other Than Temporary Impairment | 332 | [1] | ' |
Amortized cost basis | 449,976 | ' | |
Gross unrealized losses - less than twelve months | -4,838 | ' | |
Carrying value - less than twelve months | 445,138 | ' | |
Number of securities, less than twelve months | 58 | ' | |
Weighted average rating | 'AA- | [2] | ' |
Weighted average coupon | 3.15% | ' | |
Weighted average yield | 2.92% | ' | |
Weighted average life | '4 years 10 months 24 days | ' | |
Securities in an Unrealized Loss Position Greater than Twelve Months | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Outstanding face amount | 116,021 | ' | |
Before Impairment - Amortized Cost Basis | 124,285 | ' | |
Other Than Temporary Impairment | 612 | [1] | ' |
Amortized cost basis | 123,673 | ' | |
Gross unrealized losses - twelve months or more | -1,539 | ' | |
Carrying value - twelve months or more | 122,134 | ' | |
Number of securities, greater than twelve months | 13 | ' | |
Weighted average rating | 'AA+ | [2] | ' |
Weighted average coupon | 3.34% | ' | |
Weighted average yield | 1.51% | ' | |
Weighted average life | '3 years 3 months 18 days | ' | |
Securities in a Loss Position [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Outstanding face amount | 593,532 | ' | |
Before Impairment - Amortized Cost Basis | 574,593 | ' | |
Other Than Temporary Impairment | -944 | [1] | ' |
Amortized cost basis | 573,649 | ' | |
Total gross unrealized losses | -6,377 | ' | |
Carrying value | $567,272 | ' | |
Number of securities | 71 | ' | |
Weighted average rating | 'AA | [2] | ' |
Weighted average coupon | 3.19% | ' | |
Weighted average yield | 2.65% | ' | |
Weighted average life | '4 years 7 months 6 days | ' | |
[1] | This amount represents other-than-temporary impairment recorded on securities that are in an unrealized loss position as of June 30, 2014. | ||
[2] | The weighted average rating of securities in an unrealized loss position for less than twelve months excludes the rating of five bonds for which New Residential was unable to obtain rating information. |
INVESTMENTS_IN_REAL_ESTATE_SEC5
INVESTMENTS IN REAL ESTATE SECURITIES - Holdings in an Unrealized Loss Position and the Associated Intent to Sell (Details) (USD $) | Jun. 30, 2014 | |
In Thousands, unless otherwise specified | ||
Securities Intended To Sell | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Fair Value | $155,599 | [1] |
Amortized Cost Basis after impairment | 155,871 | [1] |
Unrealized Credit Losses | -1,073 | [1],[2] |
Unrealized Non-Credit Losses | -272 | [1],[3] |
Securities More Likely Than Not Required to be Sold [Member] | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Fair Value | 0 | [1] |
Amortized Cost Basis after impairment | 0 | [1] |
Unrealized Credit Losses | 0 | [1],[2] |
Securities No Intent To Sell - Credit Impaired | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Fair Value | 144,118 | |
Amortized Cost Basis after impairment | 145,212 | |
Unrealized Credit Losses | -974 | [2] |
Unrealized Non-Credit Losses | -1,094 | [3] |
Securities No Intent To Sell - Non-Credit Impaired | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Fair Value | 321,508 | |
Amortized Cost Basis after impairment | 326,519 | |
Unrealized Non-Credit Losses | -5,011 | [3] |
Securities in an Unrealized Loss Position | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Fair Value | 621,225 | |
Amortized Cost Basis after impairment | 627,602 | |
Unrealized Credit Losses | -2,047 | [2] |
Unrealized Non-Credit Losses | ($6,377) | [3] |
[1] | A portion of securities New Residential intends to sell have a fair value equal to their amortized cost basis after impairment, and, therefore do not have unrealized losses reflected in other comprehensive income as of June 30, 2014. | |
[2] | This amount is required to be recorded as other-than-temporary impairment through earnings. In measuring the portion of credit losses, New Residential’s management estimates the expected cash flow for each of the securities. This evaluation includes a review of the credit status and the performance of the collateral supporting those securities, including the credit of the issuer, key terms of the securities and the effect of local, industry and broader economic trends. Significant inputs in estimating the cash flows include management’s expectations of prepayment speeds, default rates and loss severities. Credit losses are measured as the decline in the present value of the expected future cash flows discounted at the investment’s effective interest rate. | |
[3] | This amount represents unrealized losses on securities that are due to non-credit factors and recorded through other comprehensive income. |
INVESTMENTS_IN_REAL_ESTATE_SEC6
INVESTMENTS IN REAL ESTATE SECURITIES - Credit Losses on Debt Securities (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ' |
Beginning balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income | $2,071 |
Increases to credit losses on securities for which an OTTI was previously recognized and a portion of an OTTI was recognized in other comprehensive income | 464 |
Additions for credit losses on securities for which an OTTI was not previously recognized | 151 |
Reduction for credit losses on securities for which no OTTI was recognized in other comprehensive income at the current measurement date | -1,073 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Remeasurement | 408 |
Reduction for securities sold during the period | -231 |
Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income | $974 |
INVESTMENTS_IN_REAL_ESTATE_SEC7
INVESTMENTS IN REAL ESTATE SECURITIES - Geographic Distribution of Collateral (Details) (USD $) | Jun. 30, 2014 | |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | |
Outstanding face amount | $1,507,595 | |
Non-Agency RMBS Excluding Other ABS | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Outstanding face amount | 348,232 | |
Percentage of total outstanding | 100.00% | |
Non-Agency RMBS Excluding Other ABS | Western U.S. | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Outstanding face amount | 85,243 | |
Percentage of total outstanding | 24.50% | |
Non-Agency RMBS Excluding Other ABS | Southeastern U.S. | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Outstanding face amount | 73,322 | |
Percentage of total outstanding | 21.00% | |
Non-Agency RMBS Excluding Other ABS | Northeastern U.S. | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Outstanding face amount | 61,194 | |
Percentage of total outstanding | 17.60% | |
Non-Agency RMBS Excluding Other ABS | Midwestern U.S. | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Outstanding face amount | 58,722 | |
Percentage of total outstanding | 16.90% | |
Non-Agency RMBS Excluding Other ABS | Southwestern U.S. | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Outstanding face amount | 32,368 | |
Percentage of total outstanding | 9.30% | |
Non-Agency RMBS Excluding Other ABS | Other U.S. | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Outstanding face amount | $37,383 | [1] |
Percentage of total outstanding | 10.70% | [1] |
[1] | Represents collateral for which New Residential was unable to obtain geographic information. |
INVESTMENTS_IN_REAL_ESTATE_SEC8
INVESTMENTS IN REAL ESTATE SECURITIES - Credit Quality (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Real estate securities acquired with credit quality deterioration, face amount | $186,186 | $729,895 |
Real estate securities acquired with credit quality deterioration, carrying value | $144,836 | $483,680 |
INVESTMENTS_IN_REAL_ESTATE_SEC9
INVESTMENTS IN REAL ESTATE SECURITIES - Changes in Accretable Yields (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Investments, Debt and Equity Securities [Abstract] | ' |
Balance, beginning | $143,067 |
Additions | 81,365 |
Accretion | -8,175 |
Reclassifications from non-accretable difference | 778 |
Disposals | -155,287 |
Balance, ending | $60,192 |
INVESTMENTS_IN_RESIDENTIAL_MOR2
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Narrative (Details) (USD $) | 6 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Feb. 27, 2013 | Dec. 31, 2012 | 28-May-14 | 27-May-14 | Apr. 04, 2014 | Mar. 28, 2014 | Jan. 15, 2014 | 28-May-14 | 27-May-14 | Apr. 04, 2014 | Jan. 15, 2014 | Mar. 28, 2014 | Jun. 24, 2014 | 27-May-14 | Jun. 24, 2014 | 27-May-14 | Jun. 30, 2014 | 27-May-14 | Jun. 30, 2014 | Jun. 30, 2014 | 27-May-14 | |
Reverse Mortgage Loans | Reverse Mortgage Loans | Reverse Mortgage Loans | Non-Performing Loans Held-For-Investment | Non-Performing Loans Held-For-Investment | Non-Performing Loans Held-For-Investment | Non-Performing Loans Held-For-Investment | Non-Performing Loans Held-For-Investment | Non-Performing Loans Held-For-Investment | Non-Performing Loans Held-For-Investment | Non-Performing Loans Held-For-Investment | Non-Performing Loans Held-For-Investment | Non-Performing Loans Held-For-Investment | Performing and Non-Performing Loans Held-For-Investment | Performing and Non-Performing Loans Held-For-Investment | Performing and Non-Performing Loans Held-For-Investment | Performing and Non-Performing Loans Held-For-Investment | Performing Loans | Performing Loans | Purchased Credit Impaired Loans | Residential Mortgage Loans(E) | Non-Agency RMBS | ||||
Credit Suisse | Royal Bank of Scotland | pools | Investment | ||||||||||||||||||||||
Repurchase Agreements | Repurchase Agreements | ||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan portfolio, amount | ' | ' | ' | ' | ' | $83,100,000 | ' | ' | ' | ' | ' | $500,300,000 | $48,400,000 | $17,800,000 | ' | ' | ' | ' | $82,300,000 | $283,600,000 | ' | ' | ' | ' | ' |
Payments to acquire loans | 733,693,000 | 0 | ' | ' | ' | ' | 373,100,000 | 40,100,000 | 15,500,000 | ' | ' | ' | ' | ' | ' | ' | 58,900,000 | 288,500,000 | ' | ' | ' | ' | ' | ' | ' |
Payments to acquire other real estate | 3,391,000 | 0 | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (Loss) on Securitization of Financial Assets | ' | ' | ' | ' | ' | ' | ' | ' | 11,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' |
Loan count | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16 |
Principal Amount Outstanding on Loans Securitized or Asset-backed Financing Arrangement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 233,800,000 | ' | ' | ' |
Percentage of Investment co-owned by Nationstar | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Residential mortgage loans, held-for-investment | 517,424,000 | ' | 33,539,000 | ' | 35,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest in Excess MSR | ' | ' | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases of non-performing loans | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 3,800,000 | 33,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,904,000 | ' | ' | ' | ' |
Mortgage Loans on Real Estate, Number of Pools | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' |
Percentage of loans that have reached a termination event | ' | ' | ' | 79.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,300,000 | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance of underlying mortgage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | 65,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold Period Past Due for Write-off of Financing Receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | '30 days | '30 days | ' |
Real Estate Owned From Linked Transactions | $25,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INVESTMENTS_IN_RESIDENTIAL_MOR3
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Residential Mortgage Loans (Details) (USD $) | 6 Months Ended | ||||
Jun. 30, 2014 | Dec. 31, 2013 | Feb. 27, 2013 | |||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ||
Weighted average life | '5 years 9 months 18 days | ' | ' | ||
Reverse Mortgage Loans | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ||
Outstanding face amount | $53,085,000 | [1] | ' | ' | |
Mortgage Loans on Real Estate, Carrying Amount of Mortgages, Including Interest | 30,794,000 | [1] | ' | ' | |
Carrying value | 30,794,000 | [2] | 33,539,000 | [1] | ' |
Loan count | 288 | [1] | ' | ' | |
Weighted average yield | 10.30% | [1] | ' | ' | |
Weighted average life | '3 years 8 months 12 days | [1],[3] | ' | ' | |
Floating rate loans as a percent of face amount | 20.80% | [1] | ' | ' | |
Gross Loan-to-Value | 183.00% | [1],[4] | ' | ' | |
Weighted Average Delinquency | 80.90% | [1],[5] | ' | ' | |
Interest in Excess MSR | ' | ' | 70.00% | ||
Average Balance During Period of Loans Held-in-portfolio | 300,000 | ' | ' | ||
Percentage of loans that have reached a termination event | 79.00% | ' | ' | ||
Performing Loans | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ||
Outstanding face amount | 72,056,000 | [6],[7] | ' | ' | |
Mortgage Loans on Real Estate, Carrying Amount of Mortgages, Including Interest | 61,008,000 | [6],[7] | ' | ' | |
Carrying value | 60,874,000 | 0 | [6],[7] | ' | |
Loan count | 357 | [6],[7] | ' | ' | |
Weighted average yield | 6.40% | [6],[7] | ' | ' | |
Weighted average life | '3 years 10 months 24 days | [3],[6],[7] | ' | ' | |
Floating rate loans as a percent of face amount | 10.90% | [6],[7] | ' | ' | |
Gross Loan-to-Value | 107.00% | [4],[6],[7] | ' | ' | |
Weighted Average Delinquency | 3.50% | [5],[6],[7] | ' | ' | |
Threshold Period Past Due for Write-off of Financing Receivable | '30 days | ' | ' | ||
Purchased Credit Impaired Loans | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ||
Outstanding face amount | 576,777,000 | [8] | ' | ' | |
Mortgage Loans on Real Estate, Carrying Amount of Mortgages, Including Interest | 425,622,000 | [8] | ' | ' | |
Carrying value | ' | 0 | [8] | ' | |
Loan count | 1,880 | [8] | ' | ' | |
Weighted average yield | 7.40% | [8] | ' | ' | |
Weighted average life | '2 years 2 months 12 days | [3],[8] | ' | ' | |
Floating rate loans as a percent of face amount | 49.80% | [8] | ' | ' | |
Gross Loan-to-Value | 111.00% | [4],[8] | ' | ' | |
Weighted Average Delinquency | 93.70% | [5],[8] | ' | ' | |
Threshold Period Past Due for Write-off of Financing Receivable | '30 days | ' | ' | ||
Residential Mortgage Loans Held-for-Investment | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ||
Outstanding face amount | 701,918,000 | ' | ' | ||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages, Including Interest | 517,424,000 | ' | ' | ||
Carrying value | ' | $33,539,000 | ' | ||
Loan count | 2,525 | ' | ' | ||
Weighted average yield | 7.50% | ' | ' | ||
Weighted average life | '2 years 6 months | [3] | ' | ' | |
Floating rate loans as a percent of face amount | 43.50% | ' | ' | ||
Gross Loan-to-Value | 115.00% | [4] | ' | ' | |
Weighted Average Delinquency | 82.30% | [5] | ' | ' | |
[1] | Represents a 70% interest New Residential holds in reverse mortgage loans. The average loan balance outstanding based on total UPB is $0.3 million. 79% of these loans have reached a termination event. As a result, the borrower can no longer make draws on these loans. Each loan matures upon the occurrence of a termination event. | ||||
[2] | Represents a 70% interest New Residential holds in the reverse mortgage loans. | ||||
[3] | The weighted average life is based on the expected timing of the receipt of cash flows. | ||||
[4] | LTV refers to the ratio comparing the loan’s unpaid principal balance to the value of the collateral property. | ||||
[5] | Represents the percentage of underlying loans that are 30+ days delinquent, none of which are on non-accrual status. New Residential records REO received in satisfaction of unpaid loans within Other Assets in its Condensed Consolidated Balance Sheet (Note 2). | ||||
[6] | Represents loans that are current or less than 30 days past due at acquisition. | ||||
[7] | Performing loan carrying value includes accrued interest receivable. | ||||
[8] | Represents loans that are 30 days or more past due at acquisition. |
INVESTMENTS_IN_RESIDENTIAL_MOR4
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Geographic Distribution of Residential Mortgage Loans (Details) (Residential Mortgage Loans Held-for-Investment) | Jun. 30, 2014 | Dec. 31, 2013 |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Total outstanding (percent) | 100.00% | 100.00% |
California | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Total outstanding (percent) | 24.80% | 5.70% |
New York | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Total outstanding (percent) | 18.20% | 22.00% |
New Jersey | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Total outstanding (percent) | 8.50% | 6.90% |
Illinois | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Total outstanding (percent) | 4.50% | 7.70% |
Florida | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Total outstanding (percent) | 4.30% | 21.20% |
Maryland | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Total outstanding (percent) | 4.00% | 2.80% |
Connecticut | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Total outstanding (percent) | 3.70% | 3.90% |
Massachusetts | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Total outstanding (percent) | 3.50% | 4.10% |
Washington | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Total outstanding (percent) | 3.10% | 3.90% |
Pennsylvania | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Total outstanding (percent) | 2.50% | 0.90% |
Other U.S. | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Total outstanding (percent) | 22.90% | 20.90% |
INVESTMENTS_IN_RESIDENTIAL_MOR5
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Carrying Value of Residential Mortgage Loans (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | |
Reverse Mortgage Loans | ' | |
Movement in Mortgage Loans on Real Estate [Roll Forward] | ' | |
Balance, beginning | $33,539 | [1] |
Purchases / additional fundings | 0 | |
Proceeds from repayments | -1,307 | |
Accretion of loan discount and other amortization | 1,364 | |
Real Estate Owned, Transfer to Real Estate Owned | -2,375 | |
Valuation allowance | -427 | |
Balance, ending | 30,794 | [2] |
Performing Loans | ' | |
Movement in Mortgage Loans on Real Estate [Roll Forward] | ' | |
Balance, beginning | 0 | [3],[4] |
Purchases / additional fundings | 60,904 | |
Proceeds from repayments | 0 | |
Accretion of loan discount and other amortization | 0 | |
Real Estate Owned, Transfer to Real Estate Owned | 0 | |
Valuation allowance | -30 | |
Balance, ending | $60,874 | |
[1] | Represents a 70% interest New Residential holds in reverse mortgage loans. The average loan balance outstanding based on total UPB is $0.3 million. 79% of these loans have reached a termination event. As a result, the borrower can no longer make draws on these loans. Each loan matures upon the occurrence of a termination event. | |
[2] | Represents a 70% interest New Residential holds in the reverse mortgage loans. | |
[3] | Represents loans that are current or less than 30 days past due at acquisition. | |
[4] | Performing loan carrying value includes accrued interest receivable. |
INVESTMENTS_IN_RESIDENTIAL_MOR6
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Valuation Allowance on Residential Mortgage Loans (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Valuation provision on loans | $293 | $0 | $457 | $0 |
Reverse Mortgage Loans | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Valuation allowance | ' | ' | -461 | ' |
Charge-offs | 0 | ' | ' | ' |
Valuation provision on loans | 427 | ' | 427 | ' |
Valuation allowance | -888 | ' | -888 | ' |
Performing Loans | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ' | ' | ' | ' |
Valuation allowance | ' | ' | 0 | ' |
Charge-offs | 0 | ' | ' | ' |
Valuation provision on loans | ' | ' | 30 | ' |
Valuation allowance | ($30) | ' | ($30) | ' |
INVESTMENTS_IN_RESIDENTIAL_MOR7
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Required Payment Receivables (Details) (Purchased Credit Impaired Loans, USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Purchased Credit Impaired Loans | ' |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' |
Contractually Required Payments Receivable | $1,084,324 |
Cash Flows Expected to be Collected | 521,341 |
Fair Value | $422,649 |
INVESTMENTS_IN_RESIDENTIAL_MOR8
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Unpaid Principal and Carrying Value (Details) (Purchased Credit Impaired Loans, USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Purchased Credit Impaired Loans | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Unpaid principal balance | $576,777 | $0 |
Carrying value | $425,622 | $0 |
INVESTMENTS_IN_RESIDENTIAL_MOR9
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Accretable Yield Movement (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ' | |
Beginning balance | $0 | |
Additions | 98,692 | |
Accretion | -4,276 | |
Reclassifications from non-accretable difference(A) | 1,349 | [1] |
Ending balance | $95,765 | |
[1] | Represents a probable and significant increase in cash flows previously expected to be collected. |
INVESTMENTS_IN_CONSUMER_LOANS_2
INVESTMENTS IN CONSUMER LOANS EQUITY METHOD INVESTEES (Details Narrative) (USD $) | Jun. 30, 2014 | Apr. 01, 2014 | Apr. 01, 2014 | Apr. 01, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Apr. 01, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Affilate of Blackstone Tactical Opportunities Advisors LLC [Member] | Fortress-managed Affiliate | Consumer Loan Investees | Consumer Loan Investees | Consumer Loan Investees | Consumer Loan Investees | Consumer Loan Investees | Consumer Loan Investees | Consumer Loan Investees | |
unsecured_loan | Class A Asset Backed Notes | Class B Asset Backed Notes | Class B Asset Backed Notes | |||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance of underlying loans | $95,166,259 | ' | ' | ' | ' | $2,924,133 | $4,200,000 | ' | ' | ' |
Number of loans in portfolio | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' |
Acquisitions of investments in consumer loan equity method investees | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' |
Ownership percentage in equity method investees | ' | ' | ' | ' | 30.00% | 30.00% | 30.00% | ' | ' | ' |
Percentage of portfolio co-invested by other parties | ' | 23.00% | 47.00% | ' | ' | ' | 70.00% | ' | ' | ' |
Purchase price of portfolio financed by asset-backed notes | ' | ' | ' | 2,200,000 | ' | ' | ' | ' | ' | ' |
Purchase price of portfolio | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' |
Percentage of par at which notes were sold | ' | ' | ' | ' | 96.00% | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | $5,104,627 | ' | ' | ' | ' | ' | ' | $1,300,000 | $300,000 | $400,000 |
Interest Rate | ' | ' | ' | ' | ' | ' | ' | 3.75% | 4.00% | ' |
Percentage of UPB of loans against outstanding debt where cash can be released | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' |
Percentage of cash flows required to be paid against notes when threshold is reached | ' | ' | ' | ' | ' | ' | ' | 70.00% | 15.00% | ' |
INVESTMENTS_IN_CONSUMER_LOANS_3
INVESTMENTS IN CONSUMER LOANS EQUITY METHOD INVESTEES - Summary of Investments (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 01, 2014 | Dec. 31, 2013 | |||
Consumer Loan Investees | Consumer Loan Investees | Consumer Loan Investees | Consumer Loan Investees | |||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Consumer loan assets | ' | ' | ' | ' | ' | $2,302,297 | $2,302,297 | ' | $2,572,577 | |||
Other assets | ' | ' | ' | ' | ' | 172,969 | 172,969 | ' | 192,830 | |||
Debt | ' | ' | ' | ' | ' | -1,627,323 | [1] | -1,627,323 | [1] | ' | -2,010,433 | [1] |
Other liabilities | ' | ' | ' | ' | ' | -15,025 | -15,025 | ' | -32,712 | |||
Equity | ' | ' | ' | ' | ' | 832,918 | 832,918 | ' | 722,262 | |||
New Residential's investment | 250,048 | ' | 250,048 | ' | 215,062 | 250,048 | 250,048 | ' | 215,062 | |||
New Residential's ownership | ' | ' | ' | ' | ' | 30.00% | 30.00% | 30.00% | 30.00% | |||
Interest income | ' | ' | ' | ' | ' | 135,629 | 278,444 | ' | ' | |||
Interest expense | ' | ' | ' | ' | ' | -18,106 | -40,301 | ' | ' | |||
Provision for finance receivable losses | ' | ' | ' | ' | ' | -27,663 | -61,819 | ' | ' | |||
Other expenses, net | ' | ' | ' | ' | ' | -19,279 | -39,731 | ' | ' | |||
Change in fair value of debt | ' | ' | ' | ' | ' | 535 | -16,332 | ' | ' | |||
Net income | ' | ' | ' | ' | ' | 71,116 | 120,261 | ' | ' | |||
New Residential's equity in net income | $21,335 | $36,164 | $37,695 | $36,164 | ' | $21,335 | $37,695 | ' | ' | |||
[1] | Represents the Class A asset-backed notes with a face amount of $1.3 billion, an interest rate of 3.75% and a maturity of April 2021 and the Class B asset-backed notes with a face amount of $0.3 billion, an interest rate of 4.0% and a maturity of December 2024. Substantially all of the net cash flow generated by the Consumer Loan Companies was required to be used to pay down the Class A notes. In June 2014, the balance of the outstanding Class A notes was reduced to 50% of the outstanding UPB of the performing consumer loans and the managing member was reimbursed by the Consumer Loan Companies for accumulated expenses. Prospectively, 70% of the net cash flow generated is required to be used to pay down the Class A notes, and the equity holders of the Consumer Loan Companies and holders of the Class B notes will each be entitled to receive 15% of the net cash flow of the Consumer Loan Companies on a periodic basis. |
INVESTMENTS_IN_CONSUMER_LOANS_4
INVESTMENTS IN CONSUMER LOANS EQUITY METHOD INVESTEES - Consumer Loans (Details) (USD $) | 6 Months Ended | |||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 01, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | |
Consumer Loan Investees | Consumer Loan Investees | Consumer Loan Investees | Class A Asset Backed Notes | Class B Asset Backed Notes | Class B Asset Backed Notes | |||
Consumer Loan Investees | Consumer Loan Investees | Consumer Loan Investees | ||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | |
Debt Instrument, Face Amount | $5,104,627 | ' | ' | ' | $1,300,000 | $300,000 | $400,000 | |
Unpaid principal balance of underlying loans | 95,166,259 | 2,924,133 | 4,200,000 | ' | ' | ' | ' | |
New Residential's ownership | ' | 30.00% | 30.00% | 30.00% | ' | ' | ' | |
Carrying value | ' | $2,302,297 | [1] | ' | ' | ' | ' | ' |
Weighted average coupon | ' | 18.10% | [2] | ' | ' | ' | ' | ' |
Weighted Average Yield | ' | 16.80% | ' | ' | ' | ' | ' | |
Weighted average life | '5 years 9 months 18 days | '3 years 6 months | [3] | ' | ' | ' | ' | ' |
[1] | Represents the carrying value of the consumer loans held by the Consumer Loan Companies. | |||||||
[2] | Substantially all of the cash flows received on the loans is required to be used to make payments on the notes described above. | |||||||
[3] | Weighted Average Life represents the weighted average expected timing of the receipt of expected cash flows for this investment. |
INVESTMENTS_IN_CONSUMER_LOANS_5
INVESTMENTS IN CONSUMER LOANS EQUITY METHOD INVESTEES - Rollforward (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Consumer Loan Investees | Consumer Loan Investees | Consumer Loan, Equity Method Investees | Consumer Loan, Equity Method Investees | Consumer Loan, Equity Method Investees | ||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Balance at December 31, 2013 | ' | ' | $215,062,000 | ' | ' | $215,062,000 | ' | ' | ' | |
Contributions to equity method investees | ' | ' | ' | ' | ' | 0 | ' | ' | ' | |
Distributions of earnings from equity method investees | ' | ' | ' | ' | ' | -2,709,000 | [1] | -2,200,000 | -2,152,000 | -769,000 |
Distributions of earnings from consumer loan equity method investees | ' | ' | ' | ' | ' | 0 | ' | ' | ' | |
Earnings from investments in consumer loans, equity method investees | 21,335,000 | 36,164,000 | 37,695,000 | 36,164,000 | 21,335,000 | 37,695,000 | ' | ' | ' | |
Balance at June 30, 2014 | 250,048,000 | ' | 250,048,000 | ' | 250,048,000 | 250,048,000 | ' | ' | ' | |
Non-cash tax witholding payment | ' | ' | ' | ' | ' | ' | $600,000 | ' | ' | |
[1] | In June 2014, the Consumer Loan Companies distributed $2.2 million in cash to, and made $0.6 million in tax withholding payments on behalf of, New Residential. The tax withholding payments were considered a non-cash distribution. |
DERIVATIVES_Details
DERIVATIVES (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | ||||||||||||||
Non-Performing Loans | Non-Performing Loans | Non-Performing Loans | Real Estate Securities | Real Estate Securities | Real Estate Securities | TBAs | TBAs | TBAs | TBA Short Positions | TBA Short Positions | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Non-Performing Loans Repurchase Agreements Derivatives | Non-Performing Loans Repurchase Agreements Derivatives | Real Estate Securities Repurchase Agreements Derivatives | Real Estate Securities Repurchase Agreements Derivatives | U.S.T. Short Positions | U.S.T. Short Positions | |||||||||||||||||||
interest_rate_swap | ||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Number of Interest Rate Swap Agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Notional Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Debt Instrument, Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Derivative Asset, Notional Amount | ' | ' | ' | ' | ' | 186,362,000 | [1] | 186,362,000 | [1] | 164,598,000 | [1] | 0 | [2] | 0 | [2] | 10,000,000 | [2] | 10,000,000 | [3] | 10,000,000 | [3] | 0 | [3] | 10,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Gain (loss) on derivative instruments | -3,801,000 | 0 | -2,444,000 | 0 | ' | -985,000 | [4] | -314,000 | [4] | ' | 0 | [4],[5] | 26,000 | [4],[5] | ' | -132,000 | 230,000 | ' | -408,000 | 0 | ' | -2,276,000 | -2,386,000 | ' | ' | ' | ' | ' | ' | |||||||||
Derivative assets at fair value | 30,992,000 | ' | 30,992,000 | ' | 35,926,000 | 30,736,000 | [4] | 30,736,000 | [4] | 34,474,000 | [4] | 0 | [4] | 0 | [4] | 1,452,000 | [4] | 256,000 | 256,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Gain (loss) on derivative instruments | -3,648,000 | ' | -3,783,000 | ' | ' | ' | ' | ' | 0 | 43,000 | ' | -3,824,000 | -4,002,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 176,000 | 176,000 | |||||||||||||
Linked Transactions Derivatives | 30,736,000 | ' | 30,736,000 | ' | 35,926,000 | 104,770,000 | [6] | 104,770,000 | [6] | 95,014,000 | [6] | 0 | [7] | 0 | [7] | 9,952,000 | [7] | ' | ' | ' | ' | ' | ' | ' | ' | -74,034,000 | [8] | -60,540,000 | [8] | 0 | [8] | -8,500,000 | [8] | ' | ' | |||
Unpaid principal balance of underlying loans | 95,166,259,000 | ' | 95,166,259,000 | ' | ' | 186,400,000 | 186,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
Total gains (losses) | ($7,449,000) | ' | ($6,227,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||
[1] | Represents the UPB of the underlying loans of the non-performing loan pools within linked transactions. | |||||||||||||||||||||||||||||||||||||
[2] | Represents the face amount of the real estate securities within linked transactions. | |||||||||||||||||||||||||||||||||||||
[3] | Represents the notional amount of Agency RMBS, classified as derivatives. | |||||||||||||||||||||||||||||||||||||
[4] | Investments purchased from, and financed by, the selling counterparty that New Residential accounts for as linked transactions and are reflected as derivatives. | |||||||||||||||||||||||||||||||||||||
[5] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmE0ZDE1M2ZlZjJmODQ4NjQ5ZmY3YTVlOTBiNDA0Y2VjfFRleHRTZWxlY3Rpb246NTI2M0I3NDBEOTNCM0NGMjAxOEFBNzIxRUZDMkRCQzMM} | |||||||||||||||||||||||||||||||||||||
[6] | Non-performing loans that had a UPB of $186.4 million as of June 30, 2014, which represents the notional amount of the linked transaction and accrued interest. | |||||||||||||||||||||||||||||||||||||
[7] | Real estate securities that had a current face amount of $10.0 million as of December 31, 2013, which represents the notional amount of the linked transaction. | |||||||||||||||||||||||||||||||||||||
[8] | Represents carrying amount that approximates fair value. |
DEBT_OBLIGATIONS_Debt_Obligati
DEBT OBLIGATIONS - Debt Obligations (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | |
Debt Instrument [Line Items] | ' | |
Outstanding Face Amount | $5,104,627 | |
Carrying Value | 5,104,627 | |
Weighted Average Funding Cost | 2.54% | |
Weighted Average Life (Years) | '5 years 9 months 18 days | |
Residential Mortgage Loans(E) | ' | |
Debt Instrument [Line Items] | ' | |
Variable Interest Rate Spread | 3.25% | |
Consumer Loans | ' | |
Debt Instrument [Line Items] | ' | |
Variable Interest Rate Spread | 2.00% | |
Servicer Advances | ' | |
Debt Instrument [Line Items] | ' | |
Carrying Value | 3,265,530 | [1] |
Secured Corporate Loan | Lower Range | ' | |
Debt Instrument [Line Items] | ' | |
Variable Interest Rate Spread | 1.30% | |
Secured Corporate Loan | Upper Range | ' | |
Debt Instrument [Line Items] | ' | |
Variable Interest Rate Spread | 2.50% | |
Debt [Member] | ' | |
Debt Instrument [Line Items] | ' | |
Weighted Average Life (Years) | '1 year 1 month 6 days | |
Repurchase Agreements | Agency ARM RMBS | ' | |
Debt Instrument [Line Items] | ' | |
Outstanding Face Amount | 1,182,244 | [2] |
Carrying Value | 1,182,244 | [2] |
Weighted Average Funding Cost | 0.33% | [2] |
Weighted Average Life (Years) | '1 month 6 days | [2] |
Repurchase Agreements | Agency ARM RMBS | Collateral | ' | |
Debt Instrument [Line Items] | ' | |
Weighted Average Life (Years) | '4 years 8 months 12 days | [2] |
Outstanding Face Amount of Collateral | 1,159,363 | [2] |
Amortized Cost Basis of Collateral | 1,232,414 | [2] |
Carrying Value of Collateral | 1,234,562 | [2] |
Repurchase Agreements | Non-Agency RMBS | ' | |
Debt Instrument [Line Items] | ' | |
Outstanding Face Amount | 149,110 | [3] |
Carrying Value | 149,110 | [3] |
Weighted Average Funding Cost | 1.86% | [3] |
Weighted Average Life (Years) | '1 month 6 days | [3] |
Repurchase Agreements | Non-Agency RMBS | Collateral | ' | |
Debt Instrument [Line Items] | ' | |
Weighted Average Life (Years) | '9 years 8 months 12 days | [3] |
Outstanding Face Amount of Collateral | 237,191 | [3] |
Amortized Cost Basis of Collateral | 186,567 | [3] |
Carrying Value of Collateral | 192,413 | [3] |
Repurchase Agreements | Residential Mortgage Loans(E) | ' | |
Debt Instrument [Line Items] | ' | |
Outstanding Face Amount | 348,033 | [4] |
Carrying Value | 348,033 | |
Weighted Average Funding Cost | 2.90% | |
Weighted Average Life (Years) | '1 year 8 months 12 days | |
Repurchase Agreements | Residential Mortgage Loans(E) | Collateral | ' | |
Debt Instrument [Line Items] | ' | |
Weighted Average Life (Years) | '2 years 4 months 24 days | [4] |
Outstanding Face Amount of Collateral | 648,833 | |
Amortized Cost Basis of Collateral | 486,660 | |
Carrying Value of Collateral | 486,630 | |
Repurchase Agreements | Consumer Loans | ' | |
Debt Instrument [Line Items] | ' | |
Outstanding Face Amount | 125,000 | [5] |
Carrying Value | 125,000 | [5] |
Weighted Average Funding Cost | 4.16% | [5] |
Weighted Average Life (Years) | '7 months 6 days | [5] |
Repurchase Agreements | Consumer Loans | Collateral | ' | |
Debt Instrument [Line Items] | ' | |
Weighted Average Life (Years) | '3 years 6 months | [5] |
Carrying Value of Collateral | 250,048 | [5] |
Repurchase Agreements | Real Estate Owned(G) | ' | |
Debt Instrument [Line Items] | ' | |
Outstanding Face Amount | 10,795 | [6] |
Carrying Value | 10,795 | [6] |
Weighted Average Funding Cost | 2.96% | [6] |
Weighted Average Life (Years) | '6 months | [6] |
Repurchase Agreements | Real Estate Owned(G) | Collateral | ' | |
Debt Instrument [Line Items] | ' | |
Carrying Value of Collateral | 27,830 | [6] |
Repurchase Agreements | Total Repurchase Agreements | ' | |
Debt Instrument [Line Items] | ' | |
Outstanding Face Amount | 1,815,182 | [7] |
Carrying Value | 1,815,182 | [7] |
Weighted Average Funding Cost | 1.23% | [7] |
Weighted Average Life (Years) | '4 months 24 days | [7] |
Notes Payable, Other Payables | Residential Mortgage Loans(E) | ' | |
Debt Instrument [Line Items] | ' | |
Outstanding Face Amount | 23,915 | [8] |
Carrying Value | 23,915 | [8] |
Weighted Average Funding Cost | 3.41% | [8] |
Weighted Average Life (Years) | '2 months 12 days | [8] |
Notes Payable, Other Payables | Residential Mortgage Loans(E) | Collateral | ' | |
Debt Instrument [Line Items] | ' | |
Weighted Average Life (Years) | '3 years 8 months 12 days | [8] |
Outstanding Face Amount of Collateral | 53,085 | [8] |
Amortized Cost Basis of Collateral | 31,682 | [8] |
Carrying Value of Collateral | 30,794 | [8] |
Notes Payable, Other Payables | Servicer Advances | ' | |
Debt Instrument [Line Items] | ' | |
Outstanding Face Amount | 3,265,530 | [9] |
Carrying Value | 3,265,530 | [9] |
Weighted Average Funding Cost | 3.26% | [9] |
Weighted Average Life (Years) | '1 year 4 months 24 days | [9] |
Notes Payable, Other Payables | Servicer Advances | Collateral | ' | |
Debt Instrument [Line Items] | ' | |
Weighted Average Life (Years) | '3 years 9 months 18 days | [9] |
Outstanding Face Amount of Collateral | 3,551,464 | [9] |
Amortized Cost Basis of Collateral | 3,596,228 | [9] |
Carrying Value of Collateral | 3,679,105 | [9] |
Notes Payable, Other Payables | Total Notes Payable | ' | |
Debt Instrument [Line Items] | ' | |
Outstanding Face Amount | 3,289,445 | |
Carrying Value | $3,289,445 | |
Weighted Average Funding Cost | 3.26% | |
Weighted Average Life (Years) | '1 year 4 months 24 days | |
[1] | New Residential’s unused borrowing capacity is available if New Residential has additional eligible collateral to pledge and meets other borrowing conditions. New Residential pays a 0.5% fee on the unused borrowing capacity. | |
[2] | The counterparties of these repurchase agreements are Mizuho ($145.1 million), Morgan Stanley ($218.5 million), Daiwa ($296.5 million) and Jefferies ($522.2 million) and were subject to customary margin call provisions. | |
[3] | The counterparties of these repurchase agreements are Barclays ($21.6 million), Credit Suisse ($50.7 million), Royal Bank of Scotland ($33.9 million), Bank of America ($1.9 million), Goldman Sachs ($27.6 million) and UBS ($13.5 million) and were subject to customary margin call provisions. All of the Non-Agency repurchase agreements have LIBOR-based floating interest rates. Includes $48.6 million borrowed under a master repurchase agreement, which bears interest at one-month LIBOR plus 1.75%. | |
[4] | The counterparties on these repurchase agreements are Nomura ($324.5 million), Citibank ($17.1 million) and Royal Bank of Scotland ($6.4 million). All of these repurchase agreements have LIBOR-based floating interest rates. | |
[5] | The repurchase agreement is payable to Credit Suisse and bears interest equal to one-month LIBOR plus 2.0%. | |
[6] | The counterparties of these repurchase agreements are Royal Bank of Scotland ($7.0 million), Credit Suisse ($2.5 million) and Nomura ($1.3 million). All of these repurchase agreements have LIBOR-based floating interest rates. | |
[7] | These repurchase agreements had approximately $0.1 million of associated accrued interest payable as of June 30, 2014. | |
[8] | The note is payable to Nationstar and bears interest equal to one-month LIBOR plus 3.25%. | |
[9] | $1.1 billion face amount of the notes have a fixed rate while the remaining notes bear interest equal to the sum of (i)Â a floating rate index rate equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii)Â a margin ranging from 1.3% to 2.5%. |
DEBT_OBLIGATIONS_Details_Narra
DEBT OBLIGATIONS (Details Narrative) (USD $) | 6 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | 30-May-14 | Mar. 06, 2014 | Jun. 30, 2014 | 30-May-14 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jan. 08, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jan. 15, 2014 | Jun. 30, 2014 | Jan. 08, 2014 | Jan. 15, 2014 | 15-May-14 | 2-May-14 | 15-May-14 | 15-May-14 | 30-May-14 | 30-May-14 | 28-May-14 | Jun. 24, 2014 | Jun. 24, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | ||||||||||||
Repurchase Agreements | NRART Master Trust | NRART Master Trust | Non-Agency RMBS | Non-Agency RMBS | Non-Agency RMBS | Non-Agency RMBS | Lower Range | Upper Range | Total Repurchase Agreements | Total Repurchase Agreements | Agency RMBS Repurchase Agreements | Agency RMBS Repurchase Agreements | Agency RMBS Repurchase Agreements | Agency RMBS Repurchase Agreements | Agency RMBS Repurchase Agreements | Non-agency RMBS Repurchase Agreements | Non-agency RMBS Repurchase Agreements | Non-agency RMBS Repurchase Agreements | Non-agency RMBS Repurchase Agreements | Non-agency RMBS Repurchase Agreements | Non-agency RMBS Repurchase Agreements | Non-agency RMBS Repurchase Agreements | Non-agency RMBS Master Repurchase Agreement | Consumer Loans Repurchase Agreements | Consumer Loans Repurchase Agreements | Real Estate Owned(G) | Real Estate Owned(G) | Real Estate Owned(G) | Real Estate Owned(G) | Secured Corporate Loan | Secured Corporate Loan | Residential Mortgage Loans(E) | Residential Mortgage Loans(E) | Residential Mortgage Loans(E) | Residential Mortgage Loans(E) | Residential Mortgage Loans(E) | Residential Mortgage Loans(E) | Residential Mortgage Loans | Master Credit Suisse Repurchase Agreement | Servicer Advance Notes | Servicer Advance Notes | Repurchase Agreement Maturing January 14, 2015 | Repurchase Agreement Maturing January 14, 2015 | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | Merrill Lynch, Pierce Fenner & Smith [Member] | Morgan Stanley | Citibank | Citibank | Nomura | Nomura | Nomura | Nomura | Nomura | Credit Suisse | Linked transactions [Member] | TBA Short Positions | |||||||||||||||
Prepaid Variable Funding Notes | Prepaid Term Notes | NRART Master Trust | NRART Master Trust | Repurchase Agreements | Repurchase Agreements | Mizuho | Morgan Stanley | Daiwa | Jefferies | Repurchase Agreements | Barclays | Credit Suisse | Royal Bank of Scotland | Bank of America | Goldman Sachs | UBS | Repurchase Agreements | Repurchase Agreements | Credit Suisse | Royal Bank of Scotland | Nomura | Lower Range | Upper Range | Notes Payable, Other Payables | Repurchase Agreements | Royal Bank of Scotland | Citibank | Nomura | Notes Payable, Other Payables | Master Credit Suisse Repurchase Agreement | Master Credit Suisse Repurchase Agreement | Repurchase Agreement Maturing January 14, 2015 | Non-agency RMBS Repurchase Agreements | Servicer Advances | Residential Mortgage Loans(E) | London Interbank Offered Rate (LIBOR) | Repurchase Agreements | Repurchase Agreements | Repurchase Agreements | Residential Mortgage Loans(E) | Residential Mortgage Loans(E) | Residential Mortgage Loans | |||||||||||||||||||||||||||||||
Prepaid Variable Funding Notes | Prepaid Variable Funding Notes | Residential Mortgage Loans(E) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Interest payable | $2,185,000 | ' | $4,010,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Repurchase agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 145,100,000 | 218,500,000 | 296,500,000 | 522,200,000 | ' | 21,600,000 | 50,700,000 | 33,900,000 | 1,900,000 | 27,600,000 | 13,500,000 | ' | ' | ' | ' | 2,500,000 | 7,000,000 | 1,300,000 | ' | ' | ' | ' | ' | 6,400,000 | 17,100,000 | 324,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Outstanding Face Amount | 5,104,627,000 | ' | ' | ' | 1,100,000,000 | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | 1,815,182,000 | [1] | 1,182,244,000 | [2] | ' | ' | ' | ' | 149,110,000 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | 125,000,000 | [4] | 10,795,000 | [5] | ' | ' | ' | ' | ' | ' | 23,915,000 | [6] | 348,033,000 | [7] | ' | ' | ' | ' | 150,000,000 | ' | 3,265,530,000 | [8] | ' | 25,300,000 | ' | ' | ' | 415,000,000 | 617,500,000 | 48,400,000 | ' | ' | 21,600,000 | 478,700,000 | ' | 85,300,000 | ' | ' | ' | |||
Proceeds from sale of Non-Agency RMBS | 1,273,190,000 | 4,421,000 | ' | ' | ' | ' | 598,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Carrying Value | 5,104,627,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,815,182,000 | [1] | 1,182,244,000 | [2] | ' | ' | ' | ' | 149,110,000 | [3] | ' | ' | ' | ' | ' | ' | 48,600,000 | ' | 125,000,000 | [4] | 10,795,000 | [5] | ' | ' | ' | ' | ' | ' | 23,915,000 | [6] | 348,033,000 | ' | ' | ' | 82,151,000 | [9] | ' | 3,265,530,000 | [10] | 3,265,530,000 | [8] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,100,000 | [9] | ' | |
Variable Interest Rate Spread | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.38% | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | 2.00% | ' | ' | ' | ' | ' | 1.30% | 2.50% | 3.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 4.00% | 3.00% | ' | ' | ' | 2.75% | 2.75% | ' | ' | 2.75% | ' | ' | ' | ' | |||||||||||
Debt Instrument, Debt Covenant, Default Provision, Equity, Percentage Decline With No Tangible Net Equity Provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Debt Instrument, Debt Covenant, Default Provision, Equity, Percentage Decline With Tangible Net Equity Provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Debt Instrument, Debt Covenant, Default Provision, Tangible Net Equity Provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure | ' | ' | ' | 1,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Face amount of fixed rate debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Face amount of securities purchased | ' | ' | ' | ' | ' | ' | ' | 625,000,000 | 1,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Derivative Asset, Notional Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | |||||||||||
Interest rate | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Purchase of Non-Agency RMBS | 1,057,464,000 | 124,176,000 | ' | ' | ' | ' | ' | 553,000,000 | 882,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Percentage of mezzanine and subordinate tranche purchased | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Mortgage loans pledged | ' | ' | ' | ' | ' | ' | ' | 900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Unused borrowing capacity fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Payments of secured corporate loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 69,100,000 | ' | ' | |||||||||||
Borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000,000 | [9] | ' | 5,661,700,000 | [10] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | [9] | ' | ||||||||
Gain (Loss) on Sale of Investments | ' | ' | ' | ' | ' | ' | 39,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Amortized cost basis of securities sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | $558,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
[1] | These repurchase agreements had approximately $0.1 million of associated accrued interest payable as of June 30, 2014. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | The counterparties of these repurchase agreements are Mizuho ($145.1 million), Morgan Stanley ($218.5 million), Daiwa ($296.5 million) and Jefferies ($522.2 million) and were subject to customary margin call provisions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | The counterparties of these repurchase agreements are Barclays ($21.6 million), Credit Suisse ($50.7 million), Royal Bank of Scotland ($33.9 million), Bank of America ($1.9 million), Goldman Sachs ($27.6 million) and UBS ($13.5 million) and were subject to customary margin call provisions. All of the Non-Agency repurchase agreements have LIBOR-based floating interest rates. Includes $48.6 million borrowed under a master repurchase agreement, which bears interest at one-month LIBOR plus 1.75%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | The repurchase agreement is payable to Credit Suisse and bears interest equal to one-month LIBOR plus 2.0%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | The counterparties of these repurchase agreements are Royal Bank of Scotland ($7.0 million), Credit Suisse ($2.5 million) and Nomura ($1.3 million). All of these repurchase agreements have LIBOR-based floating interest rates. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | The note is payable to Nationstar and bears interest equal to one-month LIBOR plus 3.25%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[7] | The counterparties on these repurchase agreements are Nomura ($324.5 million), Citibank ($17.1 million) and Royal Bank of Scotland ($6.4 million). All of these repurchase agreements have LIBOR-based floating interest rates. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[8] | $1.1 billion face amount of the notes have a fixed rate while the remaining notes bear interest equal to the sum of (i)Â a floating rate index rate equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii)Â a margin ranging from 1.3% to 2.5%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[9] | Includes $300.0 million of borrowing capacity and $65.1 million of balance outstanding related to linked transactions (Note 10). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[10] | New Residential’s unused borrowing capacity is available if New Residential has additional eligible collateral to pledge and meets other borrowing conditions. New Residential pays a 0.5% fee on the unused borrowing capacity. |
DEBT_OBLIGATIONS_Contractual_M
DEBT OBLIGATIONS - Contractual Maturity of Debt (Details) (USD $) | Jun. 30, 2014 | |
In Thousands, unless otherwise specified | ||
Debt maturing in: | ' | |
July 1 through December 31, 2014 | $2,580,302 | |
2015 | 984,180 | |
2016 | 1,028,545 | |
2017 | 511,600 | |
Total | 5,104,627 | |
Nonrecourse | ' | |
Debt maturing in: | ' | |
July 1 through December 31, 2014 | 1,254,661 | |
2015 | 818,146 | |
2016 | 1,028,545 | |
2017 | 511,600 | |
Total | 3,612,952 | |
Recourse | ' | |
Debt maturing in: | ' | |
July 1 through December 31, 2014 | 1,325,641 | [1] |
2015 | 166,034 | [1] |
2016 | 0 | [1] |
2017 | 0 | [1] |
Total | $1,491,675 | [1] |
[1] | Excludes recourse debt related to linked transactions (Note 10). |
DEBT_OBLIGATIONS_Borrowing_Cap
DEBT OBLIGATIONS - Borrowing Capacity (Details) (USD $) | Jun. 30, 2014 | |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | |
Balance oustanding | $5,104,627 | |
Residential Mortgage Loans | ' | |
Debt Instrument [Line Items] | ' | |
Borrowing capacity | 600,000 | [1] |
Balance oustanding | 82,151 | [1] |
Available financing | 517,849 | [1] |
Servicer Advance Notes | ' | |
Debt Instrument [Line Items] | ' | |
Borrowing capacity | 5,661,700 | [2] |
Balance oustanding | 3,265,530 | [2] |
Available financing | 2,396,170 | [2] |
Debt Excess Borrowing Capacity | ' | |
Debt Instrument [Line Items] | ' | |
Borrowing capacity | 6,261,700 | |
Balance oustanding | 3,347,681 | |
Available financing | $2,914,019 | |
[1] | Includes $300.0 million of borrowing capacity and $65.1 million of balance outstanding related to linked transactions (Note 10). | |
[2] | New Residential’s unused borrowing capacity is available if New Residential has additional eligible collateral to pledge and meets other borrowing conditions. New Residential pays a 0.5% fee on the unused borrowing capacity. |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring Basis (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||||
Investments in: | ' | ' | ' | ' | |
Excess mortgage servicing rights, at fair value | $372,416 | $324,151 | ' | ' | |
Excess mortgage servicing rights, equity method investees, at fair value | 330,220 | 352,766 | ' | ' | |
Servicer advances | 3,679,105 | 2,665,551 | ' | ' | |
Real estate securities, available-for-sale | 1,463,903 | 1,973,189 | ' | ' | |
Residential mortgage loans, held-for-investment | 517,424 | 33,539 | ' | ' | |
Derivative assets | 30,992 | 35,926 | ' | ' | |
Cash and cash equivalents | 311,126 | 271,994 | 209,699 | 0 | |
Restricted cash | 37,327 | 33,338 | ' | ' | |
Liabilities | ' | ' | ' | ' | |
Repurchase agreements | 1,815,182 | 1,620,711 | ' | ' | |
Notes payable | 3,289,445 | 2,488,618 | ' | ' | |
Recurring Basis | Level 1 | ' | ' | ' | ' | |
Investments in: | ' | ' | ' | ' | |
Cash and cash equivalents | 311,126 | ' | ' | ' | |
Restricted cash | 37,327 | ' | ' | ' | |
Assets, fair value | 348,453 | ' | ' | ' | |
Recurring Basis | Level 2 | ' | ' | ' | ' | |
Investments in: | ' | ' | ' | ' | |
Real estate securities, available-for-sale | 1,247,012 | ' | ' | ' | |
Derivative assets | 256 | [1] | ' | ' | ' |
Assets, fair value | 1,247,268 | ' | ' | ' | |
Liabilities | ' | ' | ' | ' | |
Repurchase agreements | 1,331,354 | ' | ' | ' | |
Notes payable | 1,285,348 | ' | ' | ' | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 2,616,702 | ' | ' | ' | |
Recurring Basis | Level 3 | ' | ' | ' | ' | |
Investments in: | ' | ' | ' | ' | |
Excess mortgage servicing rights, at fair value | 372,416 | [2] | ' | ' | ' |
Excess mortgage servicing rights, equity method investees, at fair value | 330,220 | [2] | 352,766 | ' | ' |
Servicer advances | 3,679,105 | ' | ' | ' | |
Real estate securities, available-for-sale | 216,891 | ' | ' | ' | |
Residential mortgage loans, held-for-investment | 519,990 | ' | ' | ' | |
Derivative assets | 30,736 | [1] | ' | ' | ' |
Assets, fair value | 5,149,358 | ' | ' | ' | |
Liabilities | ' | ' | ' | ' | |
Repurchase agreements | 483,828 | ' | ' | ' | |
Notes payable | 2,006,525 | ' | ' | ' | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 2,490,353 | ' | ' | ' | |
Recurring Basis | Principal Balance or Notional Amount | ' | ' | ' | ' | |
Investments in: | ' | ' | ' | ' | |
Excess mortgage servicing rights, at fair value | 95,166,259 | [2] | ' | ' | ' |
Excess mortgage servicing rights, equity method investees, at fair value | 159,821,724 | [2] | ' | ' | ' |
Servicer advances | 3,551,464 | ' | ' | ' | |
Real estate securities, available-for-sale | 1,507,595 | ' | ' | ' | |
Residential mortgage loans, held-for-investment | 701,918 | ' | ' | ' | |
Derivative assets | 196,362 | [1] | ' | ' | ' |
Cash and cash equivalents | 311,126 | ' | ' | ' | |
Restricted cash | 37,327 | ' | ' | ' | |
Assets, fair value | 261,293,775 | ' | ' | ' | |
Liabilities | ' | ' | ' | ' | |
Repurchase agreements | 1,815,182 | ' | ' | ' | |
Notes payable | 3,289,445 | ' | ' | ' | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 5,104,627 | ' | ' | ' | |
Recurring Basis | Carrying Value | ' | ' | ' | ' | |
Investments in: | ' | ' | ' | ' | |
Excess mortgage servicing rights, at fair value | 372,416 | [2] | ' | ' | ' |
Excess mortgage servicing rights, equity method investees, at fair value | 330,220 | [2] | ' | ' | ' |
Servicer advances | 3,679,105 | ' | ' | ' | |
Real estate securities, available-for-sale | 1,463,903 | ' | ' | ' | |
Residential mortgage loans, held-for-investment | 517,424 | ' | ' | ' | |
Derivative assets | 30,992 | [1] | ' | ' | ' |
Cash and cash equivalents | 311,126 | ' | ' | ' | |
Restricted cash | 37,327 | ' | ' | ' | |
Assets, fair value | 6,742,513 | ' | ' | ' | |
Liabilities | ' | ' | ' | ' | |
Repurchase agreements | 1,815,182 | ' | ' | ' | |
Notes payable | 3,289,445 | ' | ' | ' | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 5,104,627 | ' | ' | ' | |
Recurring Basis | Fair Value | ' | ' | ' | ' | |
Investments in: | ' | ' | ' | ' | |
Excess mortgage servicing rights, at fair value | 372,416 | [2] | ' | ' | ' |
Excess mortgage servicing rights, equity method investees, at fair value | 330,220 | [2] | ' | ' | ' |
Servicer advances | 3,679,105 | ' | ' | ' | |
Real estate securities, available-for-sale | 1,463,903 | ' | ' | ' | |
Residential mortgage loans, held-for-investment | 519,990 | ' | ' | ' | |
Derivative assets | 30,992 | [1] | ' | ' | ' |
Cash and cash equivalents | 311,126 | ' | ' | ' | |
Restricted cash | 37,327 | ' | ' | ' | |
Assets, fair value | 6,745,079 | ' | ' | ' | |
Liabilities | ' | ' | ' | ' | |
Repurchase agreements | 1,815,182 | ' | ' | ' | |
Notes payable | 3,291,873 | ' | ' | ' | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $5,107,055 | ' | ' | ' | |
[1] | The notional amount represents the total unpaid principal balance of the mortgage loans for residential mortgage loans, held for investment. | ||||
[2] | The notional amount represents the total unpaid principal balance of the mortgage loans underlying the Excess MSRs. New Residential does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios. |
FAIR_VALUE_OF_FINANCIAL_INSTRU3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Level 3 Rollforward (Details) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |||||||||
Excess Mortgage Servicing Rights Investees | Level 3 | Recurring Basis | Recurring Basis | Recurring Basis | Recurring Basis | Recurring Basis | Recurring Basis | Recurring Basis | Recurring Basis | MSRs Agency | |||||||||||||
Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Recurring Basis | |||||||||||||||
Linked Transactions | Non-Agency RMBS | Servicer Advances | MSRs Agency | MSRs Agency | MSRs Non-Agency | MSRs Non-Agency | Level 3 | ||||||||||||||||
Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | Excess Mortgage Servicing Rights Investees | |||||||||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Balance, beginning | ' | ' | ' | ' | ' | $4,629,368,000 | $3,948,819,000 | $35,926,000 | $570,425,000 | $2,665,551,000 | $144,660,000 | [1] | $245,399,000 | [1],[2] | $179,491,000 | [1] | $107,367,000 | [1],[2] | ' | ||||
Gains (losses) included in net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Included in other-than-temporary impairment (“OTTIâ€) on securities | ' | ' | ' | ' | ' | ' | -479,000 | [3] | ' | -479,000 | [3] | ' | ' | ' | ' | ' | ' | ||||||
Included in change in fair value of investments in excess mortgage servicing rights | ' | ' | ' | ' | ' | ' | 12,104,000 | [3] | ' | ' | ' | 3,673,000 | [1],[3] | ' | 8,431,000 | [1],[3] | ' | ' | |||||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | ' | ' | ' | ' | ' | ' | 1,224,000 | [3] | ' | ' | ' | ' | ' | ' | 1,324,000 | [1],[2],[3] | -100,000 | [1],[2],[3] | |||||
Included in gain on settlement of investments | 52,539,000 | 58,000 | 56,896,000 | 58,000 | ' | ' | 60,330,000 | 0 | 60,330,000 | ' | ' | ' | ' | ' | ' | ||||||||
Included in other income | ' | ' | ' | ' | ' | ' | 82,606,000 | [3] | -271,000 | ' | 82,877,000 | [3] | ' | ' | ' | ' | ' | ||||||
Gains (losses) included in other comprehensive income, net of tax | ' | ' | ' | ' | ' | ' | 3,174,000 | [4] | ' | 3,174,000 | [4] | ' | ' | ' | ' | ' | ' | ||||||
Interest income | ' | ' | ' | ' | ' | ' | 159,317,000 | ' | 13,812,000 | 102,823,000 | 9,491,000 | [1] | ' | 15,298,000 | [1] | 5,271,000 | [1],[2] | 12,622,000 | [1],[2] | ||||
Purchases, sales and repayments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Purchases | ' | ' | ' | ' | ' | ' | 4,902,682,000 | 9,758,000 | 882,033,000 | 3,955,602,461 | 36,157,000 | [1] | ' | 19,132,000 | [1] | ' | ' | ||||||
Purchase adjustments | ' | ' | ' | ' | ' | ' | 1,014,000 | 0 | ' | ' | -59,000 | [1] | ' | 1,073,000 | [1] | ' | ' | ||||||
Proceeds from sales | ' | ' | ' | ' | ' | ' | -1,274,719,000 | -1,495,000 | -1,273,224,000 | ' | ' | ' | ' | ' | ' | ||||||||
Proceeds from repayments | ' | ' | ' | ' | ' | ' | -3,257,030,000 | -3,508,000 | -39,180,000 | -3,127,748,000 | -18,470,000 | [1] | ' | -26,461,000 | [1] | -13,579,000 | [1],[2] | -28,084,000 | [1],[2] | ||||
Transfers to REO | ' | ' | ' | ' | ' | ' | -9,674,000 | -9,674,000 | ' | ' | ' | ' | ' | ' | ' | ||||||||
Balance, ending | ' | ' | ' | ' | ' | $4,629,368,000 | ' | $30,736,000 | $216,891,000 | $3,679,105,000 | $175,452,000 | [1] | $245,399,000 | [1],[2] | $196,964,000 | [1] | $100,383,000 | [1],[2] | $229,837,000 | [1],[2] | |||
New Residential's ownership | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
[1] | Includes the Recapture Agreement for each respective pool. | ||||||||||||||||||||||
[2] | Amounts represent New Residential’s portion of the Excess MSRs held by the respective joint ventures in which New Residential has a 50% interest. | ||||||||||||||||||||||
[3] | The gains (losses) recorded in earnings during the period are attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting dates. | ||||||||||||||||||||||
[4] | These gains (losses) were included in net unrealized gain (loss) on securities in the Condensed Consolidated Statements of Comprehensive Income. |
FAIR_VALUE_OF_FINANCIAL_INSTRU4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Inputs Excess MSRs (Details) | 6 Months Ended | |
Jun. 30, 2014 | ||
MSR Pool 1 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 12.30% | [1] |
Delinquency | 8.60% | [2] |
Recapture rate | 36.10% | [3] |
Excess Mortgage Servicing Amount (bps) | 2600.00% | [4] |
MSR Pool 1 - Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Delinquency | 5.00% | [2] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 2100.00% | [4] |
MSR Pool 2 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 12.70% | [1] |
Delinquency | 9.90% | [2] |
Recapture rate | 36.20% | [3] |
Excess Mortgage Servicing Amount (bps) | 2200.00% | [4] |
MSR Pool 2 - Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Delinquency | 5.00% | [2] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 2100.00% | [4] |
MSR Pool 3 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 12.80% | [1] |
Delinquency | 11.20% | [2] |
Recapture rate | 35.90% | [3] |
Excess Mortgage Servicing Amount (bps) | 2200.00% | [4] |
MSR Pool 3 - Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Delinquency | 5.00% | [2] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 2100.00% | [4] |
MSR Pool 4 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 15.30% | [1] |
Delinquency | 13.50% | [2] |
Recapture rate | 36.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 1700.00% | [4] |
MSR Pool 4 - Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Delinquency | 5.00% | [2] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 2100.00% | [4] |
MSR Pool 5 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 11.40% | [1] |
Recapture rate | 9.70% | [3] |
Excess Mortgage Servicing Amount (bps) | 1300.00% | [4] |
MSR Pool 5 - Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 2100.00% | [4] |
MSR Pool 11 - Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 7.90% | [1] |
Delinquency | 5.00% | [2] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 1900.00% | [4] |
MSR Pool 12 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 14.00% | [1] |
Recapture rate | 9.60% | [3] |
Excess Mortgage Servicing Amount (bps) | 2600.00% | [4] |
MSR Pool 12 - Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 1900.00% | [4] |
MSR Pool 14 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 7.80% | [1] |
Delinquency | 3.50% | [2] |
Recapture rate | 27.50% | [3] |
Excess Mortgage Servicing Amount (bps) | 1900.00% | [4] |
MSR Pool 14 Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Delinquency | 5.00% | [2] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 1900.00% | [4] |
MSR Pool 16 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 16.40% | [1] |
Delinquency | 4.90% | [2] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 1700.00% | [4] |
MSR Pool 16 - Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Delinquency | 5.00% | [2] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 1900.00% | [4] |
MSR Pool 17 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 11.20% | [1] |
Recapture rate | 11.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 1900.00% | [4] |
MSR Pool 17 - Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 1900.00% | [4] |
MSR Pool 18 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 14.90% | [1] |
Recapture rate | 9.60% | [3] |
Excess Mortgage Servicing Amount (bps) | 1500.00% | [4] |
MSR Pool 18 - Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 1900.00% | [4] |
MSR Pool 19 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Delinquency | 2.80% | [2] |
Recapture rate | 20.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 1900.00% | [4] |
MSR Pool 19 - Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Delinquency | 5.00% | [2] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 1900.00% | [4] |
MSR Pool 20 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 12.70% | [1] |
Delinquency | 4.00% | [2] |
Recapture rate | 33.90% | [3] |
Excess Mortgage Servicing Amount (bps) | 3200.00% | [4] |
MSR Pool 20 - Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Delinquency | 5.00% | [2] |
Recapture rate | 34.90% | [3] |
Excess Mortgage Servicing Amount (bps) | 1900.00% | [4] |
Excess Mortgage Servicing Rights Investees | MSR Pool 11 - Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Delinquency | 5.00% | [2] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 1900.00% | [4] |
Excess Mortgage Servicing Rights Investees | MSRs Pool 6 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 14.80% | [1] |
Delinquency | 7.30% | [2] |
Recapture rate | 30.70% | [3] |
Excess Mortgage Servicing Amount (bps) | 2500.00% | [4] |
Excess Mortgage Servicing Rights Investees | MSR Pool 6 Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Delinquency | 5.00% | [2] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 2250.00% | [4] |
Excess Mortgage Servicing Rights Investees | MSRs Pool 7 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 12.90% | [1] |
Delinquency | 7.70% | [2] |
Recapture rate | 35.10% | [3] |
Excess Mortgage Servicing Amount (bps) | 1500.00% | [4] |
Excess Mortgage Servicing Rights Investees | MSR Pool 7 Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Delinquency | 5.00% | [2] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 1900.00% | [4] |
Excess Mortgage Servicing Rights Investees | MSRs Pool 8 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 14.20% | [1] |
Delinquency | 7.50% | [2] |
Recapture rate | 35.90% | [3] |
Excess Mortgage Servicing Amount (bps) | 1900.00% | [4] |
Excess Mortgage Servicing Rights Investees | MSR Pool 8 Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Delinquency | 5.00% | [2] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 1900.00% | [4] |
Excess Mortgage Servicing Rights Investees | MSRs Pool 9 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 15.30% | [1] |
Delinquency | 5.00% | [2] |
Recapture rate | 30.20% | [3] |
Excess Mortgage Servicing Amount (bps) | 2200.00% | [4] |
Excess Mortgage Servicing Rights Investees | MSR Pool 9 Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Delinquency | 5.00% | [2] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 2550.00% | [4] |
Excess Mortgage Servicing Rights Investees | MSRs Pool 10 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 11.90% | [1] |
Recapture rate | 9.70% | [3] |
Excess Mortgage Servicing Amount (bps) | 1100.00% | [4] |
Excess Mortgage Servicing Rights Investees | MSR Pool 10 Recapture Agreement | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 8.00% | [1] |
Recapture rate | 35.00% | [3] |
Excess Mortgage Servicing Amount (bps) | 1900.00% | [4] |
Excess Mortgage Servicing Rights Investees | MSR Pool 11 | ' | |
Held Directly (Note 3): | ' | |
Prepayment speed | 12.80% | [1] |
Delinquency | 9.90% | [2] |
Recapture rate | 32.20% | [3] |
Excess Mortgage Servicing Amount (bps) | 1500.00% | [4] |
[1] | Projected annualized weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. | |
[2] | Projected percentage of mortgage loans in the pool that will miss their mortgage payments. | |
[3] | Percentage of voluntarily prepaid loans that are expected to be refinanced by Nationstar. | |
[4] | Weighted average total mortgage servicing amount in excess of the basic fee. |
FAIR_VALUE_OF_FINANCIAL_INSTRU5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Investments in Equity Method Investees Fair Value (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||
Balance at December 31, 2013 | ' | ' | $352,766 | ' | ||
Distributions of capital from equity method investees | ' | ' | -21,163 | -4,018 | ||
Change in fair value of investments in equity method investees | 12,743 | 20,127 | 19,117 | 21,096 | ||
Balance at June 30, 2014 | 330,220 | ' | 330,220 | ' | ||
Recurring Basis | Level 3 | ' | ' | ' | ' | ||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||
Balance at December 31, 2013 | ' | ' | 352,766 | ' | ||
Distributions of earnings from equity method investees | ' | ' | -20,500 | ' | ||
Distributions of capital from equity method investees | ' | ' | -21,163 | ' | ||
Change in fair value of investments in equity method investees | ' | ' | 19,117 | ' | ||
Balance at June 30, 2014 | $330,220 | [1] | ' | $330,220 | [1] | ' |
[1] | The notional amount represents the total unpaid principal balance of the mortgage loans underlying the Excess MSRs. New Residential does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios. |
FAIR_VALUE_OF_FINANCIAL_INSTRU6
FAIR VALUE OF FINANCIAL INSTRUMENTS - Inputs Servicer Advances (Details) (Servicer Advances) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Servicer Advances | ' | ' |
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ' | ' |
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2.20% | 2.70% |
Prepayment Speed | 14.60% | 13.30% |
Delinquency | 16.30% | 20.00% |
Mortgage Servicing Amount | 1960.00% | 2120.00% |
Discount Rate | 5.60% | 5.60% |
FAIR_VALUE_OF_FINANCIAL_INSTRU7
FAIR VALUE OF FINANCIAL INSTRUMENTS - Real Estate Securities Valuation (Details) (USD $) | Jun. 30, 2014 | |
In Thousands, unless otherwise specified | ||
Outstanding face amount | $1,507,595 | |
Amortized cost basis | 1,454,915 | |
Total Fair Value | 1,463,903 | |
Multiple Quotes | ' | |
Total Fair Value | 1,450,385 | [1] |
Single Quote | ' | |
Total Fair Value | 13,518 | [2] |
Agency RMBS | ' | |
Outstanding face amount | 1,159,363 | [3],[4] |
Amortized cost basis | 1,244,864 | [3],[4] |
Agency RMBS | Level 2 | ' | |
Total Fair Value | 1,247,012 | |
Agency RMBS | Multiple Quotes | Level 2 | ' | |
Total Fair Value | 1,247,012 | [1] |
Non-Agency RMBS | ' | |
Outstanding face amount | 348,232 | |
Amortized cost basis | 210,051 | |
Non-Agency RMBS | Level 3 | ' | |
Total Fair Value | 216,891 | |
Non-Agency RMBS | Multiple Quotes | Level 3 | ' | |
Total Fair Value | 203,373 | [1] |
Non-Agency RMBS | Single Quote | Level 3 | ' | |
Total Fair Value | $13,518 | [2] |
[1] | Management generally obtained pricing service quotations or broker quotations from two sources, one of which was generally the seller (the party that sold New Residential the security) for Non-Agency RMBS. Management selected one of the quotes received as being most representative of the fair value and did not use an average of the quotes. Even if New Residential receives two or more quotes on a particular security that come from non-selling brokers or pricing services, it does not use an average because management believes using an actual quote more closely represents a transactable price for the security than an average level. Furthermore, in some cases there is a wide disparity between the quotes New Residential receives. Management believes using an average of the quotes in these cases would not represent the fair value of the asset. Based on New Residential’s own fair value analysis, management selects one of the quotes which is believed to more accurately reflect fair value. New Residential never adjusts quotes received. These quotations are generally received via email and contain disclaimers which state that they are “indicative†and not “actionable†— meaning that the party giving the quotation is not bound to actually purchase the security at the quoted price. | |
[2] | Management was unable to obtain quotations from more than one source on these securities. The one source was the seller (the party that sold New Residential the security). | |
[3] | Amortized cost basis and carrying value include principal receivable of $12.5 million. | |
[4] | Includes securities issued or guaranteed by U.S. Government agencies such as the Federal National Mortgage Association (“Fannie Maeâ€) or the Federal Home Loan Mortgage Corporation (“Freddie Macâ€). |
FAIR_VALUE_OF_FINANCIAL_INSTRU8
FAIR VALUE OF FINANCIAL INSTRUMENTS - Reverse Mortgage Loans (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' | ||
Valuation allowance/(reversal) in current year | $293 | $0 | $457 | $0 | ||
Weighted average life | ' | ' | '5 years 9 months 18 days | ' | ||
Reverse Mortgage Loans | ' | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' | ||
Fair value | 30,794 | [1] | ' | 30,794 | [1] | ' |
Valuation allowance/(reversal) in current year | 427 | ' | 427 | ' | ||
Discount rate | ' | ' | 10.30% | ' | ||
Interest in Reverse mortgage loans | ' | ' | 70.00% | ' | ||
Weighted average life | ' | ' | '3 years 8 months 12 days | [2],[3] | ' | |
Performing Loans | ' | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' | ||
Valuation allowance/(reversal) in current year | ' | ' | 30 | ' | ||
Discount rate | ' | ' | 6.40% | ' | ||
Delinquency | ' | ' | 1.90% | ' | ||
Weighted average life | ' | ' | '3 years 10 months 24 days | [2],[4],[5] | ' | |
Prepayment speed | ' | ' | 7.70% | ' | ||
Non-Performing Loans | ' | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' | ||
Discount rate | ' | ' | 7.40% | ' | ||
Delinquency | ' | ' | 97.50% | ' | ||
Fair Value Inputs, Loss Severity | ' | ' | 22.20% | ' | ||
Carrying Value | Performing Loans | ' | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' | ||
Fair value | 61,008 | ' | 61,008 | ' | ||
Carrying Value | Non-Performing Loans | ' | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' | ||
Fair value | 425,622 | ' | 425,622 | ' | ||
Fair Value | Performing Loans | ' | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' | ||
Fair value | 60,904 | ' | 60,904 | ' | ||
Fair Value | Non-Performing Loans | ' | ' | ' | ' | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' | ||
Fair value | $428,292 | ' | $428,292 | ' | ||
[1] | Represents a 70% interest New Residential holds in the reverse mortgage loans. | |||||
[2] | The weighted average life is based on the expected timing of the receipt of cash flows. | |||||
[3] | Represents a 70% interest New Residential holds in reverse mortgage loans. The average loan balance outstanding based on total UPB is $0.3 million. 79% of these loans have reached a termination event. As a result, the borrower can no longer make draws on these loans. Each loan matures upon the occurrence of a termination event. | |||||
[4] | Represents loans that are current or less than 30 days past due at acquisition. | |||||
[5] | Performing loan carrying value includes accrued interest receivable. |
FAIR_VALUE_OF_FINANCIAL_INSTRU9
FAIR VALUE OF FINANCIAL INSTRUMENTS - Narrative (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Excess Mortgage Servicing Rights Investees | MSRs | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Weighted Average Discount Rate, Percent | 12.00% |
Fair Value | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Fair value | 1,262,000 |
Carrying Value | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Fair value | 1,260,000 |
EQUITY_AND_EARNINGS_PER_SHARE_1
EQUITY AND EARNINGS PER SHARE (Details Narrative) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||||
Jun. 17, 2014 | Mar. 19, 2014 | Jan. 31, 2014 | Dec. 17, 2013 | Apr. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | 6-May-13 | Apr. 29, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | 15-May-13 | Jun. 30, 2014 | Jun. 30, 2014 | 7-May-14 | Apr. 30, 2014 | 7-May-14 | Apr. 30, 2014 | Jul. 31, 2014 | |
Common Stock | Executive Officer | Executive Officer | Manager | Manager | Manager | Manager | Manager | Independent Directors | Independent Directors | FIG LLC | FIG LLC | FIG LLC | FIG LLC | Subsequent Event | ||||||||||||||
Common Stock | Common Stock | Common Stock | Common Stock | |||||||||||||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | ' | ' | ' | ' | 2,000,000,000 | ' | 2,000,000,000 | ' | 2,000,000,000 | ' | ' | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | ' | ' | ' | ' | ' | $0.01 | ' | $0.01 | ' | $0.01 | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding | ' | ' | ' | ' | ' | 282,213,133 | ' | 253,197,974 | ' | 282,213,133 | ' | 253,025,645 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Per share exchange ratio in spin-off | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,750,000 | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | 50,159 | ' | ' | ' | ' | ' |
Share price (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.10 | ' |
Issuance of common stock | ' | ' | ' | ' | $163,800,000 | ' | ' | ' | ' | $173,201,000 | $0 | ' | ' | ' | $6,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted to Manager | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,875,000 | ' | ' | ' |
Fair value of options granted to Manager | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | ' | ' | ' |
Risk-free interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.87% | ' | ' | ' |
Dividend yield | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.58% | ' | ' | ' |
Volatility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.66% | ' | ' | ' |
Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Option exercise (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 215,000 | ' | ' | ' | ' |
Exercise price of options exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.81 | ' | ' | ' | ' |
Option exercise (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 215,000 | ' | ' |
Dividend declared per share | $0.18 | ' | $0.25 | $0.18 | ' | $0.25 | ' | ' | $0.07 | $0.43 | $0.07 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 |
Dividends | ' | ' | ' | ' | ' | $70,600,000 | $44,300,000 | $63,300,000 | ' | $114,865,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $70,600,000 |
Quarterly dividend declared, prior to any special dividends | ' | $0.18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special cash dividend | $0.08 | ' | ' | $0.08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares held by Fortress and affiliates in Newcastle | ' | ' | ' | ' | ' | 5,300,000 | ' | ' | ' | 5,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dilutive Common Stock Equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,405,348 | 3,633,843 | 6,457,136 | 1,826,960 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Options outstanding | ' | ' | ' | ' | ' | 22,718,833 | ' | ' | ' | 22,718,833 | ' | ' | ' | ' | ' | ' | 17,925,463 | ' | 17,925,463 | ' | 21,500,000 | 12,000 | ' | ' | ' | ' | ' | ' |
EQUITY_AND_EARNINGS_PER_SHARE_2
EQUITY AND EARNINGS PER SHARE - Outstanding Options (Details) (USD $) | 0 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | 22,718,833 | 22,718,833 |
Strike Price | $5.12 | $5.12 |
Options - Strike Price 16.95 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | ' | 162,500 |
Strike Price | ' | $16.95 |
Maturity Date | 22-Nov-14 | ' |
Options - Strike Price 15.97 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | ' | 330,000 |
Strike Price | ' | $15.97 |
Maturity Date | 12-Jan-15 | ' |
Options - Strike Price 16.68 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | ' | 2,000 |
Strike Price | ' | $16.68 |
Maturity Date | 1-Aug-15 | ' |
Options - Strike Price 15.87 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | ' | 170,000 |
Strike Price | ' | $15.87 |
Maturity Date | 1-Nov-16 | ' |
Options - Strike Price 16.90 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | ' | 242,000 |
Strike Price | ' | $16.90 |
Maturity Date | 23-Jan-17 | ' |
Options - Strike Price 14.96 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | ' | 456,000 |
Strike Price | ' | $14.96 |
Maturity Date | 11-Apr-17 | ' |
Options - Strike Price 3.29 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | ' | 1,495,166 |
Strike Price | ' | $3.29 |
Maturity Date | 29-Mar-21 | ' |
Options - Strike Price 2.49 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | ' | 2,294,833 |
Strike Price | ' | $2.49 |
Maturity Date | 27-Sep-21 | ' |
Options - Strike Price 2.74 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | ' | 2,000 |
Strike Price | ' | $2.74 |
Maturity Date | 20-Dec-21 | ' |
Options - Strike Price 3.41 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | ' | 1,867,167 |
Strike Price | ' | $3.41 |
Maturity Date | 3-Apr-22 | ' |
Options - Strike Price 3.67 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | ' | 2,265,000 |
Strike Price | ' | $3.67 |
Maturity Date | 21-May-22 | ' |
Options - Strike Price 3.67 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | ' | 2,499,167 |
Strike Price | ' | $3.67 |
Maturity Date | 31-Jul-22 | ' |
Options - Strike Price 5.12 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | ' | 5,750,000 |
Strike Price | ' | $5.12 |
Maturity Date | 11-Jan-23 | ' |
Options - Strike Price 5.74 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | ' | 2,300,000 |
Strike Price | ' | $5.74 |
Maturity Date | 15-Feb-23 | ' |
Options - Strike Price 6.79 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | ' | 8,000 |
Strike Price | ' | $6.79 |
Maturity Date | 2-Jun-23 | ' |
Options - Strike Price 6.10 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | ' | 2,875,000 |
Strike Price | ' | $6.10 |
Maturity Date | 30-Apr-24 | ' |
EQUITY_AND_EARNINGS_PER_SHARE_3
EQUITY AND EARNINGS PER SHARE - Outstanding Options Summary (Details) | Jun. 30, 2014 | 15-May-13 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | 22,718,833 | ' |
Held by the Manager | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | 17,925,463 | 21,500,000 |
Issued to the Manager and subsequently transferred to certain of the Manager’s employees | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | 4,781,370 | ' |
Issued to the independent directors | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options outstanding | 12,000 | ' |
TRANSACTIONS_WITH_AFFILIATES_A2
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES - Affiliate Transactions (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ||||
Due to Affiliate, Total | $26,132 | ' | $26,132 | ' | $19,169 | ||||
Management fees | 4,915 | 2,263 | 9,401 | 2,263 | ' | ||||
Incentive compensation | 18,863 | 878 | 22,201 | 878 | ' | ||||
Manager | ' | ' | ' | ' | ' | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ||||
Management fees | 3,415 | ' | 3,415 | ' | 1,495 | ||||
Incentive compensation | 22,201 | ' | 22,201 | ' | 16,847 | ||||
Expense reimbursements and other | 516 | ' | 516 | ' | 827 | ||||
Due to Affiliate, Total | 26,132 | ' | 26,132 | ' | 19,169 | ||||
Management fees | 4,915 | 4,072 | 9,401 | 6,397 | ' | ||||
Incentive compensation | 18,863 | 878 | 22,201 | 878 | ' | ||||
Expense reimbursements | 125 | [1] | 0 | [1] | 250 | [1] | 0 | [1] | ' |
Total payments to affiliate | $23,903 | $4,950 | $31,852 | $7,275 | ' | ||||
[1] | Included in General and Administrative Expenses in the Condensed Consolidated Statements of Income. |
TRANSACTIONS_WITH_AFFILIATES_A3
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES (Details Narrative) (USD $) | 6 Months Ended | 1 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Aug. 06, 2014 | |
Nationstar | Nationstar | Subsequent Event | ||
Non-Agency RMBS | Non-Performing Loans | Nationstar | ||
Non-Performing Loans | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Change in incentive compensation to affiliate | $5,500,000 | ' | ' | ' |
Unpaid principal balance of underlying loans | 95,166,259,000 | 2,800,000,000 | 17,800,000 | ' |
Principal Amount Outstanding on Transfers of Loans to Servicer During Period | ' | ' | ' | $548,700,000 |
RECLASSIFICATION_FROM_ACCUMULA2
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Reclassification of net realized (gain) loss on securities into earnings | ($56,669) | $3,698 | ($60,833) | $3,698 |
Gain on settlement of securities | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Reclassification of net realized (gain) loss on securities into earnings | -57,284 | -58 | -61,776 | -58 |
Other-Than-Temporary Investment | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Reclassification of net realized (gain) loss on securities into earnings | $615 | $3,756 | $943 | $3,756 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Current: | ' | ' | ' | ' |
Federal | $2,236 | $0 | $2,453 | $0 |
State and Local | 1,514 | 0 | 1,584 | 0 |
Total Current Provision | 3,750 | 0 | 4,037 | 0 |
Deferred: | ' | ' | ' | ' |
Federal | 13,236 | 0 | 13,236 | 0 |
State and Local | 4,409 | 0 | 4,409 | 0 |
Total Deferred Provision | 17,645 | 0 | 17,645 | 0 |
Total Provision for Income Taxes | 21,395 | 0 | 21,682 | 0 |
Servicer Advances | ' | ' | ' | ' |
Servicing Assets at Fair Value [Line Items] | ' | ' | ' | ' |
Change in fair value of investments in servicer advances | $82,900 | ' | ' | ' |
RECENT_ACTIVITIES_Details_Narr
RECENT ACTIVITIES (Details Narrative) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||||||||||||||
Jun. 17, 2014 | Jan. 31, 2014 | Dec. 17, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jul. 31, 2014 | Jul. 01, 2014 | Jun. 30, 2014 | Jul. 01, 2014 | Jul. 01, 2014 | 30-May-14 | Jun. 30, 2014 | 30-May-14 | Mar. 06, 2014 | Jul. 01, 2014 | Jul. 01, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Jul. 25, 2014 | Jul. 27, 2014 | Jul. 08, 2014 | Jul. 08, 2014 | Jul. 08, 2014 | Jul. 08, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 18, 2014 | Jul. 31, 2014 | Jul. 18, 2014 | Jul. 08, 2014 | Jul. 08, 2014 | Jul. 27, 2014 | Jul. 08, 2014 | Jul. 08, 2014 | |
Subsequent Event | Subsequent Event | Agency RMBS | Agency RMBS | Agency RMBS | Non-Agency RMBS | Non-Agency RMBS | Non-Agency RMBS | Non-Agency RMBS | Non-Agency RMBS | Non-Agency RMBS | Servicer Advance Joint Venture | Servicer Advance Joint Venture | Servicer Advance Joint Venture | Servicer Advance Joint Venture | MSRs Pool 13 | MSRs Pool 13 | MSRs Pool 15 | MSRs Pool 15 | Agency RMBS Repurchase Agreements | Non-agency RMBS Repurchase Agreements | J.P. Morgan Bank | J.P. Morgan Bank | J.P. Morgan Bank | Fortress-Managed Funds | Fortress-Managed Funds | Nationstar | Nationstar | Nationstar | ||||||||||
Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Repurchase Agreements | Repurchase Agreements | Servicer Advance Joint Venture | Servicer Advance Joint Venture | Servicer Advance Joint Venture | MSRs Pool 13 | MSRs Pool 15 | Servicer Advance Joint Venture | MSRs Pool 13 | MSRs Pool 15 | |||||||||||||||||||
Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | |||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to acquire equity method investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14,200,000 | ' | $5,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Investment owned by New Residential | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44.50% | ' | ' | ' | 32.50% | ' | 33.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance of underlying loans | ' | ' | ' | 95,166,259,000 | ' | ' | ' | 95,166,259,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,900,000,000 | ' | 2,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Investment owned by counterparty | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32.50% | 33.30% | ' | 35.00% | 33.30% |
Purchase of servicer advance investments | ' | ' | ' | ' | ' | ' | ' | 3,955,602,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 943,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal repayments from servicing advance investments | ' | ' | ' | ' | ' | ' | ' | 3,062,259,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes payable issued for purchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,300,000,000 | ' | ' | 130,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in restricted cash | ' | ' | ' | ' | ' | ' | ' | 3,989,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nationstar payment made for targeted return shortfall | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.45% | ' | ' | ' | ' | ' |
Notes payable to bank | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 531,900,000 | ' | ' | ' | ' | ' | ' |
Face amount of securities purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 297,800,000 | ' | 243,000,000 | ' | 1,400,000,000 | ' | 625,000,000 | ' | 22,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of real estate securities | ' | ' | ' | ' | ' | ' | ' | 354,838,000 | 140,924,000 | ' | ' | ' | 251,400,000 | ' | ' | ' | ' | ' | 19,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of securities sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 306,000,000 | ' | 443,200,000 | ' | 1,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortized cost basis of securities sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 471,100,000 | ' | ' | 558,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of real estate securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 324,400,000 | 474,400,000 | ' | ' | 1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of real estate securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,300,000 | ' | 39,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
TBA agreements acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 392,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Short-term Debt | ' | ' | ' | ' | ' | ' | ' | 2,274,155,000 | 290,747,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 397,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount of Instrument with Extended Maturity Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 764,200,000 | 87,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Increase, Change in Financing Terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend declared per share | $0.18 | $0.25 | $0.18 | $0.25 | ' | ' | $0.07 | $0.43 | $0.07 | $0.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends | ' | ' | ' | 70,600,000 | 44,300,000 | 63,300,000 | ' | 114,865,000 | ' | 70,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings under notes payable | ' | ' | ' | ' | ' | ' | ' | 5,017,812,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,700,000 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Credit Suisse | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special cash dividend | $0.08 | ' | $0.08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |