Document and Entity Information
Document and Entity Information - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 01, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | New Residential Investment Corp. | |
Entity Central Index Key | 1,556,593 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Par Value | $ 0.01 | |
Entity Common Stock, Shares Outstanding (in shares) | 230,458,866 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Investments in: | ||
Excess mortgage servicing rights, at fair value | $ 1,504,422 | $ 417,733 |
Excess mortgage servicing rights, equity method investees, at fair value | 216,112 | 330,876 |
Servicer advances, at fair value | 8,182,400 | 3,270,839 |
Real estate securities, available-for-sale | 1,907,961 | 2,463,163 |
Residential mortgage loans, held-for-investment | 42,741 | 47,838 |
Residential mortgage loans, held-for-sale | 523,018 | 1,126,439 |
Real estate owned | 25,327 | 61,933 |
Consumer loans, equity method investees | 0 | 0 |
Cash and cash equivalents | 432,007 | 212,985 |
Restricted cash | 134,735 | 29,418 |
Derivative assets | 1,701 | 32,597 |
Trade receivable | 986,532 | 0 |
Deferred tax asset | 159,232 | 0 |
Other assets | 278,610 | 95,423 |
Total assets | 14,394,798 | 8,089,244 |
Liabilities | ||
Repurchase agreements | 2,404,617 | 3,149,090 |
Notes payable | 7,883,061 | 2,908,763 |
Trades payable | 778,528 | 2,678 |
Due to affiliates | 9,670 | 57,424 |
Dividends payable | 89,521 | 53,745 |
Deferred tax liability | 0 | 15,114 |
Accrued expenses and other liabilities | 134,319 | 52,505 |
Total liabilities | $ 11,299,716 | $ 6,239,319 |
Commitments and Contingencies | ||
Equity | ||
Common Stock, $0.01 par value, 2,000,000,000 shares authorized, 230,438,639 and 141,434,905 issued and outstanding at June 30, 2015 and December 31, 2014, respectively | $ 2,304 | $ 1,414 |
Additional paid-in capital | 2,640,608 | 1,328,587 |
Retained earnings | 203,287 | 237,769 |
Accumulated other comprehensive income, net of tax | 17,231 | 28,319 |
Total New Residential stockholders’ equity | 2,863,430 | 1,596,089 |
Noncontrolling interests in equity of consolidated subsidiaries | 231,652 | 253,836 |
Total Equity | 3,095,082 | 1,849,925 |
Total Liabilities And Stockholders Equity | $ 14,394,798 | $ 8,089,244 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 230,438,639 | 141,434,905 |
Common stock, shares outstanding (in shares) | 230,438,639 | 141,434,905 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Interest income | $ 178,177 | $ 92,656 | $ 262,550 | $ 164,146 |
Interest expense | 81,871 | 36,512 | 115,850 | 75,509 |
Net interest income (expense) | 96,306 | 56,144 | 146,700 | 88,637 |
Impairment | ||||
Other-than-temporary impairment (“OTTI”) on securities | 649 | 615 | 1,720 | 943 |
Valuation provision on loans and real estate owned | 4,772 | 293 | 5,749 | 457 |
Total Impairment Charges | 5,421 | 908 | 7,469 | 1,400 |
Net interest income after impairment | 90,885 | 55,236 | 139,231 | 87,237 |
Other Income | ||||
Change in fair value of investments in excess mortgage servicing rights | 356 | 5,502 | (1,405) | 12,104 |
Change in fair value of investments in excess mortgage servicing rights, equity method investees | 3,095 | 12,743 | 8,016 | 19,117 |
Change in fair value of investments in servicer advances | 24,562 | 82,877 | 16,893 | 82,877 |
Earnings from investments in consumer loans, equity method investees | 0 | 21,335 | 0 | 37,695 |
Gain on settlement of investments, net | 1,201 | 52,539 | 15,968 | 56,896 |
Other income (loss), net | 8,436 | 2,893 | 10,473 | 4,250 |
Other Income | 37,650 | 177,889 | 49,945 | 212,939 |
Operating Expenses | ||||
General and administrative expenses | 21,239 | 5,397 | 29,799 | 7,383 |
Management fee to affiliate | 8,371 | 4,915 | 13,497 | 9,401 |
Incentive compensation to affiliate | 2,391 | 18,863 | 6,084 | 22,201 |
Loan servicing expense | 2,951 | 347 | 7,842 | 436 |
Total Operating Expenses | 34,952 | 29,522 | 57,222 | 39,421 |
Income (Loss) Before Income Taxes | 93,583 | 203,603 | 131,954 | 260,755 |
Income tax expense (benefit) | 14,306 | 21,395 | 10,879 | 21,682 |
Net Income (Loss) | 79,277 | 182,208 | 121,075 | 239,073 |
Noncontrolling Interests in Income of Consolidated Subsidiaries | 4,158 | 58,705 | 9,981 | 66,798 |
Net Income Attributable to Common Stockholders | $ 75,119 | $ 123,503 | $ 111,094 | $ 172,275 |
Net Income Per Share of Common Stock | ||||
Basic (in dollars per share) | $ 0.37 | $ 0.91 | $ 0.65 | $ 1.31 |
Diluted (in dollars per share) | $ 0.37 | $ 0.88 | $ 0.63 | $ 1.28 |
Weighted Average Number of Shares of Common Stock Outstanding | ||||
Basic (in shares) | 200,910,040 | 136,465,454 | 171,336,768 | 131,562,222 |
Diluted (in shares) | 205,169,099 | 139,668,128 | 175,206,662 | 134,790,790 |
Dividend declared per share (in dollars per share) | $ 0.45 | $ 0.5 | $ 0.83 | $ 0.85 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Comprehensive income (loss), net of tax | ||||
Net income | $ 79,277 | $ 182,208 | $ 121,075 | $ 239,073 |
Other comprehensive income (loss) | ||||
Net unrealized gain (loss) on securities | (21,164) | 55,729 | (6,032) | 66,607 |
Reclassification of net realized (gain) loss on securities into earnings | 18,570 | (56,669) | (5,056) | (60,833) |
Total other comprehensive income (loss) | (2,594) | (940) | (11,088) | 5,774 |
Total comprehensive income | 76,683 | 181,268 | 109,987 | 244,847 |
Comprehensive income attributable to noncontrolling interests | 4,158 | 58,705 | 9,981 | 66,798 |
Comprehensive income attributable to common stockholders | $ 72,525 | $ 122,563 | $ 100,006 | $ 178,049 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total New Residential Stockholders’ Equity [Member] | Noncontrolling Interests in Equity of Consolidated Subsidiaries [Member] |
Equity - December 31, 2014 (in shares) at Dec. 31, 2014 | 141,434,905 | ||||||
Equity - December 31, 2014 at Dec. 31, 2014 | $ 1,849,925 | $ 1,414 | $ 1,328,587 | $ 237,769 | $ 28,319 | $ 1,596,089 | $ 253,836 |
Dividends declared | (143,266) | (143,266) | (143,266) | ||||
Capital contributions | 5,161 | 5,161 | |||||
Capital distributions | (37,326) | (37,326) | |||||
Issuance of common stock (in shares) | 85,435,389 | ||||||
Issuance of common stock | 1,312,611 | $ 854 | 1,311,757 | 1,312,611 | |||
Option exercises (in shares) | 3,550,757 | ||||||
Option exercises | 0 | $ 36 | (36) | ||||
Director share grants (in shares) | 17,588 | ||||||
Director share grants | 300 | 300 | 300 | ||||
Modified retrospective adjustment for the adoption of ASU No. 2014-11 | Accounting Standards Update 2014-11 [Member] | (2,310) | (2,310) | (2,310) | ||||
Comprehensive income (loss) (net of tax) | |||||||
Net Income (Loss) | 121,075 | 111,094 | 111,094 | 9,981 | |||
Net unrealized gain (loss) on securities | (6,032) | (6,032) | (6,032) | ||||
Reclassification of net realized (gain) loss on securities into earnings | (5,056) | (5,056) | (5,056) | ||||
Total comprehensive income (loss) | 109,987 | 100,006 | 9,981 | ||||
Equity - June 30, 2015 (in shares) at Jun. 30, 2015 | 230,438,639 | ||||||
Equity - June 30, 2015 at Jun. 30, 2015 | $ 3,095,082 | $ 2,304 | $ 2,640,608 | $ 203,287 | $ 17,231 | $ 2,863,430 | $ 231,652 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows From Operating Activities | ||
Net income | $ 121,075 | $ 239,073 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Change in fair value of investments in excess mortgage servicing rights | 1,405 | (12,104) |
Change in fair value of investments in excess mortgage servicing rights, equity method investees | (8,016) | (19,117) |
Change in fair value of investments in servicer advances | (16,893) | (82,877) |
Earnings from consumer loan equity method investees | 0 | (37,695) |
Unrealized gain (loss) on derivative investments | 8,259 | 2,444 |
Accretion and other amortization | (209,137) | (138,733) |
(Gain) / loss on settlement of investments (net) | (15,968) | (56,896) |
(Gain) / loss on transfer of loans to REO | 197 | (6,694) |
(Gain) / loss on mortgage servicing rights recapture agreement | (1,577) | 0 |
Other-than-temporary impairment (OTTI) | 1,720 | 943 |
Valuation provision on loans and real estate owned | 5,749 | 457 |
Unrealized loss on other ABS | 368 | 0 |
Non-cash directors' compensation | 300 | 329 |
Deferred tax provision | 11,341 | 17,645 |
Changes in: | ||
Restricted cash | (32,737) | (3,989) |
Other assets | 145,461 | (3,213) |
Due to affiliates | (47,754) | 6,963 |
Accrued expenses and other liabilities | 31,288 | 1,800 |
Other operating cash flows: | ||
Interest received from excess mortgage servicing rights | 43,367 | 25,509 |
Interest received from servicer advance investments | 73,480 | 65,321 |
Interest received from Non-Agency RMBS | 16,657 | 4,394 |
Interest payments from residential mortgage loans, held-for-investment | 0 | 1,223 |
Distributions of earnings from consumer loan equity method investees | 0 | 2,152 |
Purchases of residential mortgage loans, held-for-sale | (388,805) | (247,097) |
Proceeds from sales of purchased residential mortgage loans, held-for-sale | 722,961 | 249,690 |
Principal repayments from purchased residential mortgage loans, held-for-sale | 34,614 | 0 |
Net cash provided by (used in) operating activities | 517,275 | 30,028 |
Cash Flows From Investing Activities | ||
Acquisition of investments in excess mortgage servicing rights | (129,098) | (55,289) |
Acquisition of HLSS, net of cash acquired | (959,616) | 0 |
Purchase of servicer advance investments | (6,306,745) | (3,955,602) |
Purchase of Agency RMBS | (1,026,586) | (354,838) |
Purchase of Non-Agency RMBS | (468,197) | (1,057,464) |
Purchase of residential mortgage loans | 0 | (486,596) |
Purchase of derivative assets | (2,877) | (70,027) |
Purchase of real estate owned | (1,289) | (3,391) |
Payments for settlement of derivatives | (36,212) | (17,273) |
Return of investments in excess mortgage servicing rights | 66,400 | 19,421 |
Principal repayments from servicer advance investments | 6,587,781 | 3,062,259 |
Principal repayments from Agency RMBS | 85,369 | 143,735 |
Principal repayments from Non-Agency RMBS | 34,687 | 49,175 |
Principal repayments from residential mortgage loans, held-for-investment and held-for-sale | 11,085 | 8,289 |
Proceeds from sale of residential mortgage loans | 646,436 | 0 |
Proceeds from sale of Agency RMBS | 1,455,221 | 324,379 |
Proceeds from sale of Non-Agency RMBS | 389,719 | 1,273,190 |
Proceeds from settlement of derivatives | 22,406 | 13,271 |
Proceeds from sale of real estate owned | 46,341 | 2,880 |
Net cash provided by (used in) investing activities | 419,427 | (1,082,718) |
Cash Flows From Financing Activities | ||
Repayments of repurchase agreements | (3,480,781) | (2,274,155) |
Margin deposits under repurchase agreements and derivatives | (284,389) | (115,961) |
Repayments of notes payable | (3,073,963) | (4,216,985) |
Payment of deferred financing fees | (34,096) | (6,530) |
Common stock dividends paid | (107,490) | (107,609) |
Borrowings under repurchase agreements | 2,651,587 | 2,473,920 |
Return of margin deposits under repurchase agreements and derivatives | 288,880 | 152,936 |
Borrowings under notes payable | 2,481,379 | 5,017,812 |
Issuance of common stock | 882,099 | 173,201 |
Costs related to issuance of common stock | (3,580) | (2,693) |
Noncontrolling interest in equity of consolidated subsidiaries - contributions | 0 | 142,082 |
Noncontrolling interest in equity of consolidated subsidiaries - distributions | (37,326) | (144,196) |
Net cash provided by (used in) financing activities | (717,680) | 1,091,822 |
Net Increase (Decrease) in Cash and Cash Equivalents | 219,022 | 39,132 |
Cash and Cash Equivalents, Beginning of Period | 212,985 | 271,994 |
Cash and Cash Equivalents, End of Period | 432,007 | 311,126 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest | 103,548 | 72,100 |
Cash paid during the period for income taxes | 535 | 3,510 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Dividends declared but not paid | 89,521 | 70,553 |
Non-cash contingent consideration | 50,000 | 0 |
Transfer from residential mortgage loans, held-for-sale to real estate owned | 19,875 | 0 |
Non-cash distribution from Consumer Loan Companies | 585 | 557 |
Portion of HLSS Acquisition (Note 1) paid in common stock | 434,092 | 0 |
Real estate securities retained from loan securitizations | 14,990 | 0 |
Agency RMBS [Member] | ||
Cash Flows From Investing Activities | ||
Purchase of Agency RMBS | (1,800,000) | |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Purchase of RMBS settled after quarter end | 771,276 | 0 |
Sale of RMBS settled after quarter end | 986,532 | $ 0 |
Non-Agency RMBS [Member] | ||
Cash Flows From Investing Activities | ||
Purchase of Non-Agency RMBS | (490,400) | |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Purchase of RMBS settled after quarter end | 7,252 | |
Excess MSRs Investees [Member] | ||
Other operating cash flows: | ||
Distributions of earnings from consumer loan equity method investees | 19,920 | $ 20,500 |
Cash Flows From Investing Activities | ||
Return of investments in excess mortgage servicing rights, equity method investees | 4,602 | 21,163 |
Accounting Standards Update 2014-11 [Member] | ||
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Reclassification resulting from the application of ASU No. 2014-11 | $ 85,955 | $ 0 |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION 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 has elected and intends to qualify to be taxed as a REIT for U.S. federal income tax purposes. 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”), pursuant to which the Manager provides for a management team and other professionals who are responsible for implementing New Residential’s business strategy, 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, 2015 , 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 2.4 million shares of New Residential’s common stock were held by Fortress, through its affiliates, and its principals as of June 30, 2015 . In addition, Fortress, through its affiliates, held options to purchase approximately 10.9 million shares of New Residential’s common stock as of June 30, 2015 . 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 condensed consolidated financial statements should be read in conjunction with New Residential’s consolidated financial statements for the year ended December 31, 2014 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, 2014 . Certain prior period amounts have been reclassified to conform to the current period’s presentation. In addition, New Residential completed a one-for-two reverse stock split in October 2014 (Note 13). The impact of this reverse stock split has been retroactively applied to all periods presented. Correction of the Financial Statements New Residential determined during the second quarter of 2015 that purchases and sales of residential mortgage loans classified as held-for-sale upon acquisition that had been reported on the condensed consolidated statements of cash flows as cash flows from investing activities should have been reported as operating activities. New Residential has corrected the previously presented condensed consolidated statement of cash flows for these loans. The effect of the adjustment on the presentation for the six months ended June 30, 2014 was to move $249.7 million of gross cash inflows and $247.1 million of gross cash outflows from investing activities to operating activities. This change resulted in a net reclassification of $2.6 million from investing cash flows to operating cash flows during this period. New Residential has evaluated the effect of the incorrect presentation, both qualitatively and quantitatively, and concluded that it did not materially misstate the previously issued financial statements. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 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 effect, companies will be required to exercise further judgment and make more estimates prospectively. 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. ASU No. 2014-09 is effective for New Residential in the first quarter of 2017. Early adoption is not permitted. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance in ASU No. 2014-09. New Residential is currently evaluating the new guidance to determine the impact it may have on its condensed consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-11, Transfers and Servicing (Topic 860): 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. ASU No. 2014-11 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. ASU No. 2014-11 was effective for New Residential in the first quarter of 2015. Early adoption is not permitted. Disclosures are not required for comparative periods presented before the effective date. New Residential has determined that, as of January 1, 2015, its linked transactions (Note 10) are accounted for as secured borrowings. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . The standard provides guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern by requiring management to assess an entity’s ability to continue as a going concern by incorporating and expanding on certain principles that are currently in U.S. auditing standards. ASU No. 2014-15 is effective for New Residential for the annual period ending on December 31, 2016. Early adoption is permitted. New Residential is currently evaluating the new guidance to determine the impact that it may have on its condensed consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . The standard amends the consolidation considerations when evaluating certain limited partnerships, variable interest entities and investment funds. ASU No. 2015-02 is effective for New Residential in the first quarter of 2016. Early adoption is permitted. New Residential does not expect the adoption of this new guidance to have an impact on its condensed consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest . The standard amends the balance sheet presentation requirements for debt issuance costs such that they are no longer recognized as deferred charges but are rather presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts. ASU No. 2015-03 is effective for New Residential in the first quarter of 2016. Early adoption is permitted. New Residential has adopted ASU No. 2015-03 in June 2015 and has determined that the adoption of ASU No. 2015-03 resulted in an immaterial reclassification of its Deferred Financing Costs, Net (Note 2) to an offset of its Notes Payable (Note 11). The FASB has recently issued or discussed a number of proposed standards on such topics as 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. Acquisition of HLSS Assets and Liabilities On February 22, 2015, New Residential entered into an Agreement and Plan of Merger (the “Initial Merger Agreement”) with Home Loan Servicing Solutions, Ltd., a Cayman Islands exempted company (“HLSS”) and Hexagon Merger Sub, Ltd., a Cayman Islands exempted company and a wholly owned subsidiary of New Residential (“Merger Sub”). HLSS was traded on the NASDAQ Stock Market LLC under the symbol “HLSS” until April 29, 2015, when its shares were delisted. On April 6, 2015, with the approval of their respective Boards of Directors, New Residential and HLSS, together with certain of their respective subsidiaries, entered into a Termination Agreement (the “Termination Agreement”) (providing for the termination of the Initial Merger Agreement) and simultaneously entered into a Share and Asset Purchase Agreement (the “Acquisition Agreement”). The parties to the Acquisition Agreement included New Residential, HLSS, HLSS Advances Acquisition Corp., a Delaware corporation and wholly owned subsidiary of New Residential (“HLSS Advances”), and HLSS MSR-EBO Acquisition LLC, a Delaware limited liability company and wholly owned subsidiary of New Residential (together with HLSS Advances, the “Buyers”). Pursuant to the Acquisition Agreement, the Buyers acquired from HLSS substantially all of the assets of HLSS (including all of the issued share capital of HLSS’s first-tier subsidiaries) and assumed (and agreed to indemnify HLSS for) the liabilities of HLSS (together, the “HLSS Acquisition”), other than post-closing liabilities in an amount up to the Retained Amount (as defined below), for aggregate consideration (net of certain transaction expenses being reimbursed by HLSS), consisting of approximately $1.0 billion in cash and 28,286,980 shares of common stock, par value $0.01 per share (“New Residential Acquisition Common Stock”), of New Residential delivered to HLSS in a private placement. The closing of the HLSS Acquisition (the “Acquisition Closing”) occurred simultaneously with the execution of the Acquisition Agreement. The Acquisition Agreement includes certain customary post-closing covenants of New Residential, the Buyers and HLSS. In addition, the Board of Directors of HLSS also approved a wind down plan (the “Distribution and Liquidation Plan”), pursuant to which HLSS sold the shares of New Residential Acquisition Common Stock received in the HLSS Acquisition on April 8, 2015 and distributed to HLSS shareholders the cash consideration from the HLSS Acquisition and the cash proceeds from the sale of shares of New Residential Acquisition Common Stock; provided that under the terms of the Distribution and Liquidation Plan, HLSS retained $50.0 million of cash (the “Retained Amount”) for wind down costs, of which $46.0 million remained as of June 30, 2015. At the Acquisition Closing, HLSS Advances entered into a Services Agreement, dated as of April 6, 2015, with HLSS (the “Services Agreement”). Pursuant to the Services Agreement, HLSS Advances has agreed to manage the assets and affairs of HLSS in accordance with terms and conditions set forth therein and, in all cases, in accordance with the Distribution and Liquidation Plan. The Services Agreement provides that HLSS Advances will be responsible for the operations of HLSS and will perform (or cause to be performed) such services and activities relating to the assets and operations of HLSS as may be appropriate, including, among other things, administering the Distribution and Liquidation Plan and handling all claims, disputes or controversies in which HLSS is a party or may otherwise be involved. HLSS Advances will not be compensated by HLSS for its services under the Services Agreement but will be reimbursed by HLSS for expenses incurred on behalf of HLSS. At the Acquisition Closing, New Residential and Merger Sub entered into an Agreement and Plan of Merger, dated April 6, 2015, with HLSS (the “New Merger Agreement”), pursuant to which, upon the terms and subject to the conditions set forth therein (including the approval of HLSS’s shareholders), HLSS (which at the time of the New Merger (as defined below) will have previously sold substantially all of its assets and transferred all liabilities to the Buyers, and have distributed the proceeds (other than the Retained Amount) received from such sale to HLSS shareholders and substantially wound-down its operations) will merge with and into Merger Sub, with Merger Sub continuing as the surviving company and a wholly owned subsidiary of New Residential (the “New Merger”). Pursuant to the New Merger Agreement, and upon the terms and conditions set forth therein, at the effective time of the New Merger (the “Effective Time”), each ordinary share of HLSS, par value $0.01 per share, issued and outstanding immediately prior to the Effective Time (other than those shares of HLSS owned by New Residential or any direct or indirect wholly-owned subsidiary of New Residential and shares of HLSS as to which dissenters’ rights have been properly exercised), will be automatically converted into the right to receive $0.704059 per share in cash, without interest. The New Merger does not require the approval of New Residential’s shareholders. However, consummation of the New Merger is subject to, among other things: (i) approval of the New Merger by the requisite vote of HLSS’s shareholders; (ii) not more than 10% of HLSS’s issued and outstanding shares properly exercising appraisal rights as of the time immediately before the closing of the New Merger (the “New Merger Closing”); and (iii) certain other customary closing conditions. Moreover, each party’s obligation to consummate the New Merger is subject to certain other conditions, including without limitation, (i) the accuracy of the other party’s representations and warranties and (ii) the other party’s compliance with its covenants and agreements contained in the New Merger Agreement (in each case subject to customary materiality qualifiers). In addition, the obligations of New Residential and Merger Sub to consummate the New Merger are subject to the absence of any Company Material Adverse Effect (as defined in the New Merger Agreement). The New Merger Agreement may be terminated by either party under certain circumstances, including, among others: (i) if the New Merger Closing has not occurred by the nine-month anniversary of the New Merger Agreement; (ii) if a court or other governmental entity has issued a final and non-appealable order prohibiting the New Merger Closing; (iii) if HLSS fails to obtain the HLSS Shareholder Approval; and (iv) upon a material uncured breach by the other party that would result in a failure of the conditions to the New Merger Closing to be satisfied. HLSS filed a preliminary proxy statement on May 1, 2015 in connection with the New Merger, and Amendment No. 1 to the preliminary proxy statement on June 2, 2015. The purchase price for the HLSS Acquisition includes the fair value of the common stock issued of $434.1 million , cash consideration paid of $622.0 million , HLSS seller financing of $385.2 million , and contingent cash consideration of $50.0 million . The total consideration is summarized as follows: Total Consideration Amount Share Issuance Consideration 28,286,980 New Residential's 4/6/2015 share price $ 15.3460 Dollar Value of Share Issuance (A) $ 434,092 Cash Consideration 621,982 HLSS Seller Financing (B) 385,174 New Merger Payment (71,016,771 $0.704059) (C) 50,000 Total Consideration $ 1,491,248 (A) Share Issuance Consideration The share issuance consideration consists of 28.3 million newly issued shares of New Residential common stock with a par value $0.01 per share. The fair value of the common stock at the date of the acquisition was $15.3460 per share, which was New Residential’s volume weighted average share price on April 6, 2015. (B) HLSS Seller Financing New Residential agreed to deliver $1.0 billion of cash purchase price, including a promise to pay an amount of $385.2 million immediately after closing from the proceeds of financing that was committed in anticipation of the HLSS Acquisition and is collateralized by certain of the HLSS assets acquired. (C) New Merger Payment The New Merger Agreement, and the $50.0 million consideration related thereto, is included as a part of the business combination in conjunction with the Share and Asset Purchase Agreement. The range of outcomes for this contingent consideration is from $0 to $50.0 million , dependent on whether the New Merger is approved by HLSS shareholders and other factors. New Residential has performed a preliminary allocation of the purchase price to HLSS’s assets and liabilities, as set forth below. The final allocation of purchase price may differ from the amounts included herein. The preliminary allocation of the total consideration, following reclassifications to conform to New Residential’s presentation, is as follows: Total Consideration ($ in millions) $ 1,491.2 Assets Cash and cash equivalents $ 51.5 Servicer advances, at fair value 5,098.2 Excess mortgage servicing rights, at fair value 919.5 Residential mortgage loans, held-for-sale (A) 418.8 Deferred tax asset (B) 186.8 Investment in HLSS Ltd. 46.0 Other assets (C) 405.3 Total Assets Acquired $ 7,126.1 Liabilities Notes payable 5,583.0 Deferred tax liabilities (0.7 ) Accrued expenses and other liabilities (D)(E) 52.6 Total Liabilities Assumed $ 5,634.9 Net Assets $ 1,491.2 (A) Represents $424.3 million UPB of GNMA early buy-out (“EBO”) residential mortgage loans not subject to ASC No. 310-30 as the contractual cash flows are guaranteed by the Federal Housing Administration (“FHA”). (B) Due to the difference between carryover historical tax basis and acquisition date fair value of one of HLSS’s first tier subsidiaries. (C) Includes restricted cash and receivables not subject to ASC No. 310-30 which New Residential has deemed fully collectible. (D) Includes liabilities arising from contingencies regarding ongoing HLSS matters (Note 14). (E) Contingencies for HLSS class action law suits have not been recognized at the acquisition date as the criteria in ASC No. 450 have not been met (Note 14). The acquisition of HLSS resulted in no goodwill as the total consideration transferred was equal to the fair value of the net assets acquired. Separately Recognized Transactions Certain transactions were recognized separately from New Residential’s acquisition of assets and assumption of liabilities in the business combination. These separately recognized transactions include 1) contingent payments to the acquiree’s employees and 2) debt issuance costs. Contingent Payment to the Acquiree’s Employees New Residential identified both retention bonus and severance arrangements for the HLSS employees. Retention bonus payments are triggered by a change in control and continued employment for a specified period post-acquisition. As future service is required, retention bonus payments totaling approximately $1.6 million have been recognized in General and administrative expenses in New Residential’s statement of income for the three months ended June 30, 2015 . Severance is triggered by a change in control and termination without cause by New Residential within a specified period post-acquisition. As the second trigger represents an action by New Residential as the acquirer, a total amount of approximately $2.8 million has been recognized in General and administrative expenses in New Residential’s statement of income for the three months ended June 30, 2015 . Debt Issuance Costs New Residential entered into new financing arrangements in connection with the HLSS Acquisition. Such arrangements resulted in New Residential incurring various commitment fees. Commitment fees are treated as a cost of financing and accounted for as debt issuance costs that are not considered a direct cost of the acquisition. Therefore, debt issuance costs totaling approximately $27.0 million have been recorded on the post-acquisition balance sheet of New Residential. Unaudited Supplemental Pro Forma Financial Information - The following table presents unaudited pro forma combined Interest income and Income Before Income Taxes for the three and six months ended June 30, 2014 and 2015 prepared as if the HLSS Acquisition had been consummated on January 1, 2014. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (unaudited) (unaudited) (unaudited) (unaudited) Pro Forma Interest income $ 184,083 $ 187,020 $ 349,138 $ 364,009 Income Before Income Taxes 100,912 252,716 172,129 356,647 The 2015 unaudited supplemental pro forma financial information has been adjusted to exclude, and the 2014 unaudited supplemental pro forma financial information has been adjusted to include, approximately $19.1 million of acquisition-related costs incurred by New Residential and HLSS in 2015. The unaudited supplemental pro forma financial information has not been adjusted for transactions other than the HLSS Acquisition, or for the conforming of accounting policies. The unaudited supplemental pro forma financial information does not include any anticipated synergies or other anticipated benefits of the HLSS Acquisition and, accordingly, the unaudited supplemental pro forma financial information is not necessarily indicative of either future results of operations or results that might have been achieved had the HLSS Acquisition occurred on January 1, 2014. New Residential’s condensed consolidated statements of income include interest income and income before income taxes of HLSS since the April 6, 2015 acquisition of $92.4 million and $39.8 million , respectively. Relationship with Ocwen HLSS and HLSS Holdings, LLC (a subsidiary of HLSS acquired by New Residential in the HLSS Acquisition) entered into a mortgage servicing rights purchase agreement (the “Purchase Agreement”) with Ocwen Financial Corporation (together with its subsidiaries, including Ocwen Loan Servicing LLC, “Ocwen”), which remains in effect following the HLSS Acquisition. Pursuant to the Purchase Agreement, HLSS and HLSS Holdings purchased, among other things, the rights to certain servicing fees under MSRs in respect of private label securitization transactions, associated servicer advances and other related assets from Ocwen from time to time. The specific terms of any acquisition of such assets are documented pursuant to separate sale supplements to the Purchase Agreement executed by the parties from time to time (each a “Sale Supplement” and together, the “Sale Supplements”). As of March 31, 2015, the UPB of the mortgage loans in respect of the related MSRs equaled $156.4 billion . Ocwen consented to HLSS’s assignment of its rights and interests in connection with the HLSS Acquisition. Because Ocwen is the servicer of the loans underlying the MSRs related to the transactions contemplated by the Purchase Agreement, New Residential pays Ocwen a monthly base fee pursuant to the applicable Sale Supplement relating to the applicable MSRs equal to 12% of the servicing fees collected thereon in any given month. This monthly base fee payable to Ocwen is expressed as a percentage of the servicing fees actually collected in any given month, which varies from month to month based on the level of collections of principal and interest for the mortgage loans serviced. Ocwen also receives a performance-based incentive fee to the extent the servicing fee revenue that it collects for any given month exceeds the sum of the monthly base fee and the retained fee. The performance-based incentive fee payable in any month is reduced if the advance ratio exceeds a predetermined level for that month. If the advance ratio is exceeded in any month, any performance-based incentive fee payable for such month will be reduced by 1-month LIBOR plus 2.75% (or 275 basis points) per annum of the amount of any such excess servicer advances. The specific terms of the fee arrangements with respect to each pool of mortgage loans may be documented pursuant to the Sale Supplements in each case having up to an eight year term (commencing on the date of the applicable Sale Supplement). If Ocwen and New Residential do not agree to revised fee arrangements at the end of such term, New Residential may direct Ocwen to transfer servicing to a third party, and New Residential may keep any proceeds of such transfer. The Purchase Agreement provides that New Residential will purchase from Ocwen servicer advances arising under specified servicing agreements as the servicer advances arise. The purchase price payable by New Residential for such servicer advances is equal to the outstanding balance thereof. As of April 6, 2015, the outstanding balance of servicer advances acquired from Ocwen equaled $5.6 billion . In addition, the Purchase Agreement contemplates that New Residential may cause Ocwen to use commercially reasonable efforts to transfer servicing of the related mortgage loans to a third-party servicer upon the occurrence of various termination events. Certain termination events may have occurred under the Purchase Agreement because of downgrades in certain of Ocwen’s servicer ratings but New Residential has agreed, subject to certain limitations, not to cause Ocwen to use commercially reasonable efforts to transfer servicing of the related mortgage loans to a third-party servicer with respect to such downgrades before April 6, 2017. The Purchase Agreement and Sale Supplements include various Ocwen warranties, representations and indemnifications relating to Ocwen’s performance of its duties as servicer. Pursuant to an amendment to the Purchase Agreement executed in connection with the consummation of the HLSS Acquisition, such Purchase Agreement and the related Sale Supplements were amended, among other things, to (i) obtain Ocwen’s consent to the assignment by HLSS of its interest under the Purchase Agreement and each sale supplement thereto, (ii) provide that HLSS Holdings will not direct the replacement of Ocwen as servicer before April 6, 2017 except under the circumstances described in the amendment, (iii) extend the scheduled term of Ocwen’s servicing appointment under each sale supplement until the earlier of 8 years from the date of the related sale supplement and April 30, 2020 (subject to an agreement to commence negotiating in good faith for an extension of the contract term no later than six months prior to the end of the applicable term), and (iv) provide that Ocwen will reimburse HLSS Holdings, subject to specified limits, for certain increased costs resulting from further S&P servicer rating downgrades of Ocwen. In addition, pursuant to such amendment Ocwen agreed to sell to New Residential the economic beneficial rights to any right of optional termination or “clean-up call” of any trust related to any servicing agreement in respect of certain servicing fees New Residential acquired from HLSS and to exercise such rights only at New Residential’s direction. New Residential agreed to pay to Ocwen a fee in an amount equal to 0.50% of the outstanding balance of the performing mortgage loans purchased in connection with any such exercise and to pay costs and expenses of Ocwen in connection with any such exercise. Optional termination or clean up call rights generally may not be exercised until the outstanding principal balance of serviced loans is reduced to a specified balance. HLSS Management, LLC (“HLSS Management”) (a subsidiary of HLSS acquired by New Residential in the HLSS Acquisition) has a professional services agreement with Ocwen that enables HLSS to provide certain services to Ocwen and for Ocwen to provide certain services to HLSS Management which remains in effect following the HLSS Acquisition. Services provided by New Residential under this agreement may include valuation and analysis of MSRs, capital markets activities, advance financing management, treasury management, legal services and other similar services. Services provided by Ocwen under this agreement may include business strategy, legal, tax, licensing and regulatory compliance support services, risk management services and other similar services. The services provided by the parties under this agreement are on an as-needed basis, and the fees represent actual costs incurred plus an additional markup of 15% . |
OTHER INCOME, ASSETS AND LIABIL
OTHER INCOME, ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2015 | |
Other Income Assets And Liabilities | |
OTHER INCOME, ASSETS AND LIABILITIES | OTHER INCOME, ASSETS AND LIABILITIES Other income, net, is comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Unrealized gain (loss) on derivative instruments $ (1,229 ) $ (3,801 ) $ (8,259 ) $ (2,444 ) Gain (loss) on transfer of loans to REO 347 6,694 (197 ) 6,694 Gain on consumer loans investment 8,510 — 18,957 — Other income (loss) 808 — (28 ) — $ 8,436 $ 2,893 $ 10,473 $ 4,250 Gain on settlement of investments, net is comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Gain (loss) on sale of real estate securities, net $ (17,921 ) $ 57,284 $ 6,776 $ 61,776 Gain (loss) on sale of residential mortgage loans, net 11,795 — 32,625 — Gain (loss) on settlement of derivatives 13,769 (3,648 ) (8,821 ) (3,783 ) Gain (loss) on liquidated residential mortgage loans, held-for-investment (277 ) — 123 — Gain (loss) on sale of REO (A) (2,201 ) (1,097 ) (7,837 ) (643 ) Other gains (losses) (3,964 ) — (6,898 ) (454 ) $ 1,201 $ 52,539 $ 15,968 $ 56,896 (A) Includes approximately $3.2 million loss on REO sold as a part of the residential mortgage loan sales described in Note 8 during the six months ended June 30, 2015 . Other assets and liabilities are comprised of the following: Other Assets Accrued Expenses and Other Liabilities June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Margin receivable, net $ 54,530 $ 59,021 Interest payable $ 15,607 $ 7,857 Other receivables (A) 23,351 1,797 Accounts payable 35,788 28,059 Deferred financing costs, net (B) — — Derivative liabilities 16,124 14,220 Principal paydown receivable 1,510 3,595 Current taxes payable 7,449 2,349 Receivable from government agency (C) 75,524 9,108 Contingent consideration (Note 1) 50,000 — Call rights 680 3,728 Other liabilities 9,351 20 Interest receivable 31,509 8,658 $ 134,319 $ 52,505 GNMA EBO servicer advance receivable (D) 69,387 — Other assets (E) 22,119 9,516 $ 278,610 $ 95,423 (A) Primarily includes advance collections that were in-transit to pay down related debt obligations. (B) Deferred financing costs were reclassified as an offset to the related debt obligation in June 2015 pursuant to ASU No. 2015-03 (Note 1). (C) Represents claims receivable from FHA on EBO and reverse mortgage loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee. (D) Represents GNMA EBO servicer advances funded by HLSS and accounted for as a financing transaction as the counterparty retained title and all other rights and rewards associated with such advances. (E) Primarily includes prepaid expenses. As reflected on the Condensed Consolidated Statements of Cash Flows, accretion and other amortization is comprised of the following: Six Months Ended June 30, 2015 2014 Accretion of servicer advance interest income $ 150,937 $ 102,823 Accretion of excess mortgage servicing rights income 49,397 24,789 Accretion of net discount on securities and loans 19,703 12,477 Amortization of deferred financing costs (10,900 ) (5,750 ) $ 209,137 $ 134,339 |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2015 | |
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 management fees and incentive compensation owed to the Manager by New Residential following the spin-off, (iii) corporate cash and related interest income, and (iv) secured corporate loans and related interest expense during the periods outstanding. 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, 2015 Interest income $ 34,359 $ 108,588 $ 23,454 $ 10,795 $ — $ 981 $ 178,177 Interest expense — 63,450 3,540 5,185 524 9,172 81,871 Net interest income (expense) 34,359 45,138 19,914 5,610 (524 ) (8,191 ) 96,306 Impairment — — 650 4,771 — — 5,421 Other income 4,298 24,115 (4,211 ) 7,817 8,510 (2,879 ) 37,650 Operating expenses 260 1,688 105 5,610 54 27,235 34,952 Income (Loss) Before Income Taxes 38,397 67,565 14,948 3,046 7,932 (38,305 ) 93,583 Income tax expense (benefit) — 15,657 — (1,351 ) — — 14,306 Net Income (Loss) $ 38,397 $ 51,908 $ 14,948 $ 4,397 $ 7,932 $ (38,305 ) $ 79,277 Noncontrolling interests in income (loss) of consolidated subsidiaries $ — $ 9,279 $ — $ — $ — $ (5,121 ) $ 4,158 Net income (loss) attributable to common stockholders $ 38,397 $ 42,629 $ 14,948 $ 4,397 $ 7,932 $ (33,184 ) $ 75,119 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, 2015 Interest income $ 49,397 $ 150,937 $ 37,715 $ 23,520 $ — $ 981 $ 262,550 Interest expense — 87,086 7,021 11,278 524 9,941 115,850 Net interest income (expense) 49,397 63,851 30,694 12,242 (524 ) (8,960 ) 146,700 Impairment — — 1,720 5,749 — — 7,469 Other income 8,188 13,389 (9,302 ) 21,592 18,957 (2,879 ) 49,945 Operating expenses 349 2,263 3 11,712 111 42,784 57,222 Income (Loss) Before Income Taxes 57,236 74,977 19,669 16,373 18,322 (54,623 ) 131,954 Income tax expense (benefit) — 12,417 — (1,538 ) — — 10,879 Net Income (Loss) $ 57,236 $ 62,560 $ 19,669 $ 17,911 $ 18,322 $ (54,623 ) $ 121,075 Noncontrolling interests in income (loss) of consolidated subsidiaries $ — $ 15,102 $ — $ — $ — $ (5,121 ) $ 9,981 Net income (loss) attributable to common stockholders $ 57,236 $ 47,458 $ 19,669 $ 17,911 $ 18,322 $ (49,502 ) $ 111,094 Servicing Related Assets Residential Securities and Loans Excess MSRs Servicer Advances Real Estate Securities Real Estate Loans Consumer Loans Corporate Total June 30, 2015 Investments $ 1,720,534 $ 8,182,400 $ 1,907,961 $ 591,086 $ — $ — $ 12,401,981 Cash and cash equivalents 3,900 95,899 16,516 6,689 2,665 306,338 432,007 Restricted cash 90 131,368 — 3,184 — 93 134,735 Derivative assets — 1,701 — — — — 1,701 Other assets 1,470 174,115 1,048,521 109,468 1,102 89,698 1,424,374 Total assets $ 1,725,994 $ 8,585,483 $ 2,972,998 $ 710,427 $ 3,767 $ 396,129 $ 14,394,798 Debt $ — $ 7,667,067 $ 1,831,989 $ 552,229 $ 42,832 $ 193,561 $ 10,287,678 Other liabilities 218 48,859 771,769 23,804 595 166,793 1,012,038 Total liabilities 218 7,715,926 2,603,758 576,033 43,427 360,354 11,299,716 Total equity 1,725,776 869,557 369,240 134,394 (39,660 ) 35,775 3,095,082 Noncontrolling interests in equity of consolidated subsidiaries — 231,652 — — — — 231,652 Total New Residential stockholders’ equity $ 1,725,776 $ 637,905 $ 369,240 $ 134,394 $ (39,660 ) $ 35,775 $ 2,863,430 Investments in equity method investees $ 216,112 $ — $ — $ — $ — $ — $ 216,112 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 (benefit) — 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 (loss) of consolidated subsidiaries $ — $ 58,705 $ — $ — $ — $ — $ 58,705 Net income (loss) attributable to common stockholders $ 28,898 $ 29,175 $ 68,237 $ 4,870 $ 19,707 $ (27,384 ) $ 123,503 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 (benefit) — 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 (loss) of consolidated subsidiaries $ — $ 66,798 $ — $ — $ — $ — $ 66,798 Net income (loss) attributable to common stockholders $ 54,334 $ 34,305 $ 80,060 $ 5,809 $ 34,561 $ (36,794 ) $ 172,275 |
INVESTMENTS IN EXCESS MORTGAGE
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS | 6 Months Ended |
Jun. 30, 2015 | |
Transfers and Servicing [Abstract] | |
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS | INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS The following table presents activity related to the carrying value of New Residential’s investments in Excess MSRs: Servicer Nationstar SLS (A) Ocwen (B) Total Balance as of December 31, 2014 $ 409,076 $ 8,657 $ — $ 417,733 Transfers from indirect ownership 98,258 — — 98,258 Purchases 129,098 — 919,531 1,048,629 Interest income 29,297 192 19,908 49,397 Other income 1,577 — — 1,577 Proceeds from repayments (59,821 ) (660 ) (49,286 ) (109,767 ) Change in fair value 2,993 (1,459 ) (2,939 ) (1,405 ) Balance as of June 30, 2015 $ 610,478 $ 6,730 $ 887,214 $ 1,504,422 (A) Specialized Loan Servicing LLC (“SLS”). See Note 6 for a description of the SLS Transaction. (B) Ocwen services the loans underlying the Excess MSRs and Servicer Advances acquired from HLSS. See Note 1. Nationstar, SLS or Ocwen, as applicable, as servicer, performs all servicing and advancing functions, and retains the ancillary income, servicing obligations and liabilities as the servicer of the underlying loans in the portfolio. On January 16, 2015, New Residential invested approximately $23.8 million to acquire a 33.3% interest in the Excess MSR on a portfolio of Freddie Mac residential mortgage loans with an aggregate UPB of $8.4 billion . On April 16, 2015, New Residential funded its remaining commitment on this portfolio of $2.6 million . Fortress-managed funds and Nationstar each agreed to acquire a 33.3% interest in the Excess MSRs. Nationstar as servicer agreed to 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 the 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. On April 6, 2015, New Residential acquired Excess MSRs in connection with the HLSS Acquisition (Note 1). On May 5, 2015, New Residential invested approximately $3.5 million to acquire a 33.3% interest in the Excess MSRs on a portfolio of Fannie Mae residential mortgage loans with an aggregate UPB of $1.6 billion . Fortress-managed funds and Nationstar each agreed to acquire a 33.3% interest in the Excess MSRs. Nationstar as servicer agreed to 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 the 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. On May 11, 2015, New Residential invested approximately $26.9 million to acquire a 33.3% interest in the Excess MSRs on a portfolio of Freddie Mac residential mortgage loans with an aggregate UPB of $8.9 billion . Fortress-managed funds and Nationstar each agreed to acquire a 33.3% interest in the Excess MSRs. Nationstar as servicer agreed to 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 the 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. On June 11, 2015, New Residential invested approximately $72.4 million to acquire a 40.0% interest in the Excess MSRs on a portfolio of Ginnie Mae residential mortgage loans with an aggregate UPB of $18.5 billion . Fortress-managed funds and Nationstar each agreed to acquire a 40.0% and 20.0% interest respectively, in the Excess MSRs. Nationstar as servicer agreed to 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 the 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 has entered into a “Recapture Agreement” in each of the Excess MSR investments serviced by Nationstar and SLS, including those Excess MSR investments made through investments in joint ventures (Note 5). Under such 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. New Residential has a similar recapture agreement with Ocwen; however, this agreement allows for Ocwen to retain the Excess MSR on recaptured loans up to a threshold and no payments have been made to New Residential under such arrangement to date. 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, 2015 December 31, 2014 Unpaid Principal Balance (“UPB”) of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis (B) Carrying Value (C) Carrying Value (C) New Residential Fortress-managed funds Nationstar Agency Original and Recaptured Pools $ 80,896,500 32.5% - 66.7% 0.0%-40.0% 20.0% - 35.0% 5.8 $ 240,981 $ 291,288 $ 188,733 Recapture Agreements — 32.5% - 66.7% 0.0%-40.0% 20.0% - 35.0% 11.5 26,945 50,239 28,786 80,896,500 6.4 267,926 341,527 217,519 Non-Agency (D) Nationstar and SLS Serviced: Original and Recaptured Pools $ 103,812,302 33.3% - 80.0% 0.0% - 50.0% 0.0% - 33.3% 4.9 $ 222,394 $ 258,729 $ 189,812 Recapture Agreements — 33.3% - 80.0% 0.0% - 50.0% 0.0% - 33.3% 11.9 15,835 16,952 10,402 Ocwen Serviced Pools 150,934,856 100.0 % — % — % 5.4 890,153 887,214 — 254,747,158 5.4 1,128,382 1,162,895 200,214 Total $ 335,643,658 5.6 $ 1,396,308 $ 1,504,422 $ 417,733 (A) Weighted Average Life represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) 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. (C) Carrying Value represents the fair value of the pools or Recapture Agreements, as applicable. (D) Excess MSR investments in which New Residential also invested in related servicer advances, including the basic fee component of the related MSR as of June 30, 2015 (Note 6). Changes in fair value recorded in other income are comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Original and Recaptured Pools $ (3,441 ) $ 2,801 $ (5,418 ) $ 9,888 Recapture Agreements 3,797 2,701 4,013 2,216 $ 356 $ 5,502 $ (1,405 ) $ 12,104 In the second quarter of 2015 , a weighted average discount rate of 9.8% 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 June 30, 2015 December 31, 2014 California 26.7 % 31.5 % Florida 9.2 % 7.7 % New York 7.0 % 4.3 % Texas 4.5 % 4.2 % New Jersey 4.0 % 3.2 % Maryland 3.8 % 4.0 % Illinois 3.4 % 3.2 % Virginia 3.2 % 3.3 % Washington 2.8 % 3.6 % Massachusetts 2.6 % 2.1 % Other U.S. 32.8 % 32.9 % 100.0 % 100.0 % 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 MORTGAG12
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES | 6 Months Ended |
Jun. 30, 2015 | |
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. During the first quarter of 2015 , New Residential and the Fortress-managed funds restructured their investments in two of the Excess MSR joint ventures and now each directly owns its share of the underlying assets of the joint ventures. The following tables summarize the financial results of the Excess MSR joint ventures, accounted for as equity method investees, held by New Residential: June 30, 2015 December 31, 2014 Excess MSR assets $ 421,673 $ 653,293 Other assets 10,551 8,472 Other liabilities — (13 ) Equity $ 432,224 $ 661,752 New Residential’s investment $ 216,112 $ 330,876 New Residential’s ownership 50.0 % 50.0 % Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Interest income $ 9,216 $ 17,292 $ 20,917 $ 35,785 Other income (loss) (3,005 ) 8,194 (4,840 ) 2,489 Expenses (22 ) (1 ) (46 ) (41 ) Net income $ 6,189 $ 25,485 $ 16,031 $ 38,233 New Residential’s investments in equity method investees changed during the six months ended June 30, 2015 as follows: Balance at December 31, 2014 $ 330,876 Contributions to equity method investees — Transfers to direct ownership (98,258 ) Distributions of earnings from equity method investees (19,920 ) Distributions of capital from equity method investees (4,602 ) Change in fair value of investments in equity method investees 8,016 Balance at June 30, 2015 $ 216,112 The following is a summary of New Residential’s Excess MSR investments made through equity method investees: June 30, 2015 Unpaid Principal Balance Investee Interest in Excess MSR (A) New Residential Interest in Investees Amortized Cost Basis (B) Carrying Value (C) Weighted Average Life (Years) (D) Agency Original and Recaptured Pools $ 79,731,703 66.7 % 50.0 % $ 279,923 $ 344,856 5.5 Recapture Agreements — 66.7 % 50.0 % 55,976 76,817 11.8 Total $ 79,731,703 $ 335,899 $ 421,673 6.6 (A) The remaining interests are held by Nationstar. (B) 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. (C) 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. (D) The weighted average life represents the weighted average expected timing of the receipt of cash flows of each investment. In the second quarter of 2015 , a weighted average discount rate of 9.8% 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 June 30, 2015 December 31, 2014 California 13.0 % 23.5 % Florida 7.4 % 8.9 % Texas 6.1 % 4.8 % New York 5.6 % 5.6 % Georgia 5.6 % 4.1 % New Jersey 4.2 % 3.9 % Illinois 4.0 % 3.5 % Virginia 3.2 % 3.2 % Maryland 3.2 % 3.3 % Pennsylvania 3.0 % 2.3 % Other U.S. 44.7 % 36.9 % 100.0 % 100.0 % 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 ADVANCE
INVESTMENTS IN SERVICER ADVANCES | 6 Months Ended |
Jun. 30, 2015 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS IN SERVICER ADVANCES | INVESTMENTS IN SERVICER ADVANCES In December 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 the 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 MSRs (Notes 4 and 5), including the basic fee component of the related MSRs. As of June 30, 2015 , the Buyer had settled $2.6 billion of servicer advances, net of recoveries, financed with $2.4 billion of notes payables outstanding (Note 11). A taxable wholly owned subsidiary of New Residential is the managing member of the Buyer and owned an approximately 44.5% interest in the Buyer as of June 30, 2015 . As of June 30, 2015 , noncontrolling third-party investors, owning the remaining interest in the Buyer, have funded capital commitments to the Buyer of $389.6 million and New Residential has 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, 2015 , the third-party co-investors and New Residential had previously funded their commitments, however the Buyer may recall $221.7 million and $177.9 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 certain residential loan 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, 2015 was approximately 9.3% 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. In December 2014, New Residential agreed to acquire (the “SLS Transaction”) 50% of the Excess MSRs, all of the servicer advances and related basic fee portion of the MSRs (the “Advance Fee”), and a portion of the call rights related to an underlying pool of residential mortgage loans with a UPB of approximately $3.0 billion which is serviced by SLS. New Residential continues to evaluate the call rights it purchased from SLS, and its ability to exercise such rights and realize the benefits therefrom are subject to a number of risks. The actual UPB of the mortgage loans on which New Residential can successfully exercise call rights and realize the benefits therefrom may differ materially from its initial assumptions. Fortress-managed funds acquired the other 50% of the Excess MSRs. The aggregate purchase price was approximately $229.7 million . The par amount of the total advance commitments for the SLS Transaction was $219.2 million (with related financing of $195.5 million ). As of December 31, 2014, the closed portion of the purchase of $93.8 million included $8.4 million for 50% of the Excess MSRs, $83.8 million for servicer advances and Advance Fee (of which $74.3 million was financed as of December 31, 2014), and $1.6 million to fund a portion of the call rights on 57 of the 99 underlying securitization trusts. The remaining portion of the purchase price of $135.9 million included servicer advances and Advance Fee unfunded commitments of approximately $133.8 million that were funded in January 2015 (with approximately $121.2 million of related financing) and $2.1 million to fund the remaining portion of the call rights on 57 of the 99 underlying securitization trusts. As of June 30, 2015 , New Residential had settled $155.2 million of servicer advances, net of recoveries, financed with $138.4 million of notes payable outstanding (Note 11). SLS will continue to service the loans in exchange for a servicing fee of 10.75 bps and an incentive fee (the “SLS Incentive Fee”) which is based on the ratio of the outstanding servicer advances to the UPB of the underlying loans. On April 6, 2015, New Residential acquired servicer advances in connection with the HLSS Acquisition (Note 1). In April 2015, New Residential acquired the call rights related to an underlying pool of residential mortgage loans with a UPB of approximately $107.1 billion from Ocwen. The pool of underlying mortgage loans represents the mortgage loans underlying the Excess MSR and Servicer Advances investments acquired from HLSS (Note 1). New Residential continues to evaluate the call rights it acquired from Ocwen, and its ability to exercise such rights and realize the benefits therefrom are subject to a number of risks. The actual UPB of the mortgage loans on which New Residential can successfully exercise call rights and realize the benefits therefrom may differ materially from its initial assumptions. 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: Amortized Cost Basis Carrying Value (A) Weighted Average Discount Rate Weighted Average Yield Weighted Average Life (Years) (B) June 30, 2015 Servicer advances $ 8,081,258 $ 8,182,400 5.5 % 5.6 % 4.3 As of December 31, 2014 Servicer advances $ 3,186,622 $ 3,270,839 5.4 % 5.4 % 4.0 (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. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Changes in Fair Value Recorded in Other Income $ 24,562 $ 82,877 $ 16,893 $ 82,877 The following is additional information regarding the servicer advances and related financing: 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 Face Amount of Notes Payable Gross Net (A) Gross Net June 30, 2015 Servicer advances (C) $ 238,526,743 $ 8,278,685 3.5 % $ 7,687,572 92.9 % 91.6 % 3.0 % 2.2 % December 31, 2014 Servicer advances (C) $ 96,547,773 $ 3,102,492 3.2 % $ 2,890,230 91.4 % 90.4 % 3.0 % 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, 2015 December 31, 2014 Principal and interest advances $ 2,467,831 $ 729,713 Escrow advances (taxes and insurance advances) 4,135,900 1,600,713 Foreclosure advances 1,674,954 772,066 Total $ 8,278,685 $ 3,102,492 Interest income recognized by New Residential related to its investments in servicer advances was comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Interest income, gross of amounts attributable to servicer compensation $ 226,961 $ 86,546 $ 290,318 $ 153,684 Amounts attributable to base servicer compensation (31,957 ) (43,026 ) (38,558 ) (49,306 ) Amounts attributable to incentive servicer compensation (86,416 ) 13,587 (100,823 ) (1,555 ) Interest income from investments in servicer advances $ 108,588 $ 57,107 $ 150,937 $ 102,823 Others’ interests in the equity of the Buyer is computed as follows: June 30, 2015 December 31, 2014 Total Advance Purchaser LLC equity $ 417,481 $ 457,545 Others’ ownership interest 55.5 % 55.5 % Others’ interest in equity of consolidated subsidiary $ 231,652 $ 253,836 Others’ interests in the Buyer’s net income is computed as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net Advance Purchaser LLC income $ 16,725 $ 105,882 $ 27,222 $ 119,393 Others’ ownership interest as a percent of total (A) 55.5 % 55.4 % 55.5 % 55.9 % Others’ interest in net income (loss) of consolidated subsidiaries (B) $ 9,279 $ 58,705 $ 15,102 $ 66,798 (A) As a result, New Residential owned 44.5% and 44.6% of the Buyer, on average during the three months ended June 30, 2015 and 2014 , respectively, and 44.5% and 44.1% of the Buyer, on average during the six months ended June 30, 2015 and 2014 , respectively. (B) Excludes HLSS shareholders’ interests in the net income (loss) of HLSS of $5.1 million , $0.0 million , $5.1 million , and $0.0 million during these periods, respectively. |
INVESTMENTS IN REAL ESTATE SECU
INVESTMENTS IN REAL ESTATE SECURITIES | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS IN REAL ESTATE SECURITIES | INVESTMENTS IN REAL ESTATE SECURITIES During the six months ended June 30, 2015 , New Residential acquired $901.4 million face amount of Non-Agency RMBS for approximately $490.4 million and $1.7 billion face amount of Agency RMBS for approximately $1.8 billion . New Residential sold Non-Agency RMBS with a face amount of approximately $441.1 million and an amortized cost basis of approximately $385.9 million for approximately $389.7 million , recording a gain on sale of approximately $3.8 million . Furthermore, New Residential sold Agency RMBS with a face amount of $2.3 billion and an amortized cost basis of approximately $2.4 billion for approximately $2.4 billion , recording a gain on sale of approximately $2.9 million . On June 25, 2015, New Residential exercised its call rights related to 18 Non-Agency RMBS trusts and purchased performing and non-performing residential mortgage loans contained in such trusts prior to their termination. New Residential owned $13.7 million face amount of securities issued by these trusts and received par on these securities, which had an amortized cost basis of $9.1 million prior to the repayment. See Note 8 for further details on this transaction. See Note 10 for a discussion of transactions formerly accounted for as linked transactions. The following is a summary of New Residential’s real estate securities, 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 and except for securities which New Residential elected to carry at fair value and record changes to valuation through the income statement. Gross Unrealized Weighted Average December 31, 2014 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) Carrying Value Agency RMBS (E)(F) $ 958,141 $ 991,514 $ 5,199 $ (2,683 ) $ 994,030 28 AAA 3.27 % 3.00 % 7.5 N/A $ 1,740,163 Non-Agency RMBS (G) (H) 2,370,202 902,005 18,668 (6,742 ) 913,931 167 B- 2.57 % 4.79 % 7.6 12.7 % 723,000 Total/ Weighted Average $ 3,328,343 $ 1,893,519 $ 23,867 $ (9,425 ) $ 1,907,961 195 A- 2.88 % 3.85 % 7.5 $ 2,463,163 (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 46 bonds which either have never been rated or for which rating information is no longer provided. For each security rated by multiple rating agencies, the lowest rating is used. New Residential used an implied AAA rating for the Agency 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) The total outstanding face amount was $753.8 million for fixed rate securities and $204.3 million for floating rate securities as of June 30, 2015 . (G) The total outstanding face amount was $1.4 billion (including $1.4 billion of residual and interest-only notional amount) for fixed rate securities and $954.6 million (including $99.8 million of residual and interest-only notional amount) for floating rate securities as of June 30, 2015 . (H) Includes Other ABS consisting primarily of interest-only securities which New Residential elected to carry at fair value and record changes to valuation through the income statement and representing 7.4% of the carrying value of the Non-Agency RMBS portfolio. Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Amortized Cost Basis Gains Losses Carrying Value Number of Securities Rating Coupon Yield Life (Years) Principal Subordination Other ABS $ 1,222,088 $ 67,980 $ 1,472 $ (1,840 ) $ 67,612 9 AA+ 1.87 % 7.64 % 3.6 N/A Unrealized losses that are considered other than temporary are recognized currently in earnings. During the six months ended June 30, 2015 , New Residential recorded other-than-temporary impairment charges (“OTTI”) of $1.7 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, 2015 . Amortized Cost Basis Weighted Average Securities in an Unrealized Loss Position Outstanding Face Amount Before Impairment Other-Than- Temporary Impairment (A) After Impairment Gross Unrealized Losses Carrying Value Number of Securities Rating (B) Coupon Yield Life (Years) Less than Twelve Months $ 1,171,377 $ 311,767 $ (1,120 ) $ 310,647 $ (6,221 ) $ 304,426 43 BB 1.43 % 4.41 % 9.3 Twelve or More Months 176,335 176,534 — 176,534 (3,204 ) 173,330 23 AAA 2.37 % 2.60 % 5.4 Total/Weighted Average $ 1,347,712 $ 488,301 $ (1,120 ) $ 487,181 $ (9,425 ) $ 477,756 66 BBB+ 1.77 % 3.75 % 7.9 (A) This amount represents other-than-temporary impairment recorded on securities that are in an unrealized loss position as of June 30, 2015 . (B) The weighted average rating of securities in an unrealized loss position for less than twelve months excludes the rating of 10 bonds which either have never been rated or for which rating information is no longer provided. 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, 2015 Unrealized Losses Fair Value Amortized Cost Basis After Impairment Credit (A) Non-Credit (B) Securities New Residential intends to sell (C) $ — $ — $ — $ — Securities New Residential is more likely than not to be required to sell (D) — — — N/A Securities New Residential has no intent to sell and is not more likely than not to be required to sell: Credit impaired securities 89,596 90,961 (1,120 ) (1,365 ) Non-credit impaired securities 388,160 396,220 — (8,060 ) Total debt securities in an unrealized loss position $ 477,756 $ 487,181 $ (1,120 ) $ (9,425 ) (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 no t have unrealized losses reflected in other comprehensive income as of June 30, 2015 . (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, 2015 Beginning balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income $ 1,127 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 6 Additions for credit losses on securities for which an OTTI was not previously recognized 1,714 Reductions for securities for which the amount previously recognized in other comprehensive 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 comprehensive income at the current measurement date — Reduction for securities sold during the period (349 ) Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income $ 2,498 The table below summarizes the geographic distribution of the collateral securing New Residential’s Non-Agency RMBS: June 30, 2015 December 31, 2014 Geographic Location Outstanding Face Amount Percentage of Total Outstanding Outstanding Face Amount Percentage of Total Outstanding Western U.S. $ 823,659 34.7 % $ 779,930 41.1 % Southeastern U.S. 604,140 25.5 % 409,755 21.6 % Northeastern U.S. 445,557 18.8 % 344,716 18.2 % Midwestern U.S. 232,262 9.8 % 190,480 10.0 % Southwestern U.S. 261,190 11.0 % 170,829 9.0 % Other (A) 3,394 0.2 % 440 0.1 % $ 2,370,202 100.0 % $ 1,896,150 100.0 % (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, 2015 , excluding residual and interest-only securities, the face amount of these real estate securities was $191.7 million , with total expected cash flows of $221.7 million and a fair value of $137.6 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, excluding residual and interest-only securities: Outstanding Face Amount Carrying Value June 30, 2015 $ 580,296 $ 366,155 December 31, 2014 536,342 414,298 The following is a summary of the changes in accretable yield for these securities: Six Months Ended June 30, 2015 Balance at December 31, 2014 $ 181,671 Adoption of ASU No. 2014-11 146,741 Additions 84,044 Accretion (13,372 ) Reclassifications from (to) non-accretable difference (27,602 ) Disposals (97,991 ) Balance at June 30, 2015 $ 273,491 See Note 18 for recent activities related to New Residential’s investments in real estate securities. |
INVESTMENTS IN RESIDENTIAL MORT
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS | INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS During the six months ended June 30, 2015 , New Residential acquired and sold several portfolios of reperforming and non-performing residential mortgage loans as discussed below: • On February 27, 2015, New Residential sold a portfolio of non-performing residential mortgage loans with a UPB of approximately $135.2 million and a carrying value of approximately $102.4 million at a price of $102.8 million and recorded a gain of $0.4 million . • On March 19, 2015, New Residential sold a portfolio of reperforming residential mortgage loans with a UPB of approximately $176.5 million and a carrying value of approximately $142.1 million at a price of $148.6 million and recorded a gain of $6.5 million . • On March 26, 2015, New Residential sold a portfolio of reperforming residential mortgage loans with a UPB of approximately $6.4 million and a carrying value of approximately $5.1 million at a price of $5.3 million and recorded a gain of $0.2 million . • On March 27, 2015, New Residential sold a portfolio of non-performing residential mortgage loans and REO with a UPB of approximately $469.6 million and a carrying value of approximately $362.0 million at a price of $373.0 million and recorded a gain of $11.0 million . • On April 2, 2015, New Residential sold a portfolio of performing residential mortgage loans with a carrying value of approximately $270.4 million at a price of $278.9 million and recorded a gain of $8.5 million . • On April 6, 2015, New Residential acquired a portfolio of non-performing GNMA EBO residential mortgage loans with a UPB of $424.3 million for approximately $418.8 million as a part of the HLSS Acquisition (Note 1). • On April 8, 2015, New Residential sold a portfolio of reperforming residential mortgage loans with a carrying value of approximately $16.8 million at a price of $19.5 million and recorded a gain of $2.7 million . • On June 16, 2015, New Residential sold $99.8 million in UPB of this EBO portfolio with a carrying value of approximately $98.3 million at a price of $98.8 million and recorded a gain of $0.5 million . • On June 25, 2015, New Residential exercised its call rights related to eighteen Non-Agency RMBS trusts and purchased performing and non-performing loans with a UPB of approximately $369.0 million at a price of approximately $388.8 million , contained in such trusts prior to their termination. New Residential securitized approximately $334.5 million in UPB of performing loans, which was recorded as a sale for accounting purposes, recognized a loss on settlement of investments of approximately $2.8 million , and paid approximately $14.9 million to acquire interest only notes representing a beneficial interest in the securitization. New Residential retained non-performing loans with a UPB of approximately $34.5 million at a price of $31.7 million . Additionally, New Residential acquired $1.3 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: • Loans Held-for-Investment: ◦ Reverse Mortgage Loans ◦ Performing Loans ◦ Purchased Credit Impaired (“PCI”) Loans • Loans Held-for-Sale (“HFS”) • Real Estate Owned (“REO”) The following table presents certain information regarding New Residential’s residential mortgage loans outstanding by loan type, excluding REO: June 30, 2015 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) Weighted Average FICO (D) December 31, 2014 Carrying Value Loan Type Reverse Mortgage Loans (E)(F) $ 39,475 $ 21,601 165 10.0 % 4.1 21.5 % 110.4 % 75.6 % N/A $ 24,965 Performing Loans (G) 22,887 21,140 699 8.9 % 5.7 17.9 % 77.8 % 10.8 % 628 22,873 Total Residential Mortgage Loans, held-for- investment $ 62,362 $ 42,741 864 9.6 % 4.7 20.1 % 98.4 % 51.9 % 628 $ 47,838 Performing Loans, held-for-sale (G) $ — $ — — — % — — % — % — % — $ 388,485 Non-performing Loans, held-for-sale (H)(I) 599,610 523,018 3,680 5.3 % 3.0 14.7 % 107.8 % 93.3 % 574 737,954 Residential Mortgage Loans, held-for-sale $ 599,610 $ 523,018 3,680 5.3 % 3.0 14.7 % 107.8 % 93.3 % 574 $ 1,126,439 (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 the total principal balance that are 60+ days delinquent. (D) The weighted average FICO score is based on the weighted average of information updated and provided by the loan servicer on a monthly basis. (E) Represents a 70% interest that New Residential holds in reverse mortgage loans. The average loan balance outstanding based on total UPB is $0.3 million . 74% 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. (F) FICO scores are not used in determining how much a borrower can access via a reverse mortgage loan. (G) Includes loans that are current or less than 30 days past due at acquisition where New Residential expects to collect all contractually required principal and interest payments. Presented net of unamortized discounts of $1.6 million . (H) Includes loans with evidence of credit deterioration since origination where it is probable that New Residential will not collect all contractually required principal and interest payments. As of June 30, 2015 , New Residential has placed all of these loans on nonaccrual status, except as described in (I) below. (I) Includes $293.2 million UPB of GNMA EBO non-performing loans on accrual status as contractual cash flows are guaranteed by the FHA. 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 60 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: Percentage of Total Outstanding Unpaid Principal Amount as of State Concentration June 30, 2015 December 31, 2014 New Jersey 17.8 % 7.0 % New York 16.5 % 12.2 % Florida 8.4 % 6.3 % California 6.4 % 15.0 % Maryland 4.1 % 3.4 % Illinois 3.7 % 4.4 % Pennsylvania 3.4 % 3.9 % Massachusetts 3.3 % 2.4 % Washington 2.9 % 3.0 % Oregon 2.7 % 1.5 % Other U.S. 30.8 % 40.9 % 100.0 % 100.0 % Reverse Mortgage Loans In February 2013, New Residential, through a subsidiary, entered into an agreement to co-invest in a portfolio of reverse mortgage loans. New Residential acquired 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 The following table provides past due information for New Residential’s Performing Loans, which is an important indicator of credit quality and the establishment of the allowance for loan losses: June 30, 2015 Days Past Due Delinquency Status (A) Current 29.3 % 30-59 59.9 % 60-89 9.2 % 90-119 (B) 0.7 % 120+ (C) 0.9 % 100.0 % (A) Represents the percentage of the total principal balance that corresponds to loans that are in each delinquency status. (B) Includes loans 90 - 119 days past due and still accruing interest because they are generally placed on nonaccrual status at 120 days or more past due. (C) Represents nonaccrual loans. Activities related to the carrying value of residential mortgage loans held-for-investment were as follows: For the Six Months Ended June 30, 2015 Reverse Mortgage Loans Performing Loans Balance at December 31, 2014 $ 24,965 $ 22,873 Purchases/additional fundings — — Proceeds from repayments (99 ) (1,514 ) Accretion of loan discount (premium) and other amortization 2,720 (101 ) Provision for loan losses (186 ) (118 ) Transfer of loans to other assets (5,762 ) — Transfer of loans to real estate owned (37 ) — Balance at June 30, 2015 $ 21,601 $ 21,140 Activities related to the valuation provision on reverse mortgage loans and allowance for loan losses on performing loans held-for-investment were as follows: For the Six Months Ended June 30, 2015 Reverse Mortgage Loans Performing Loans Balance at December 31, 2014 $ 1,518 $ 1,447 Allowance for loan losses (A) 186 118 Charge-offs (B) — (1,371 ) Balance at June 30, 2015 $ 1,704 $ 194 (A) 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. (B) 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. Purchased Credit Impaired Loans All of New Residential’s PCI loans were classified as held-for-sale at December 31, 2014 and throughout the six months ended June 30, 2015 , and therefore, are not subject to the accounting in ASC No. 310-30. Loans Held-for-Sale Activities related to the carrying value of loans held-for-sale were as follows: For the Six Months Ended June 30, 2015 Loans Held-for-Sale Balance at December 31, 2014 $ 1,126,439 Purchases (A) 807,579 Sales (1,352,158 ) Transfer of loans to real estate owned (20,034 ) Adoption of ASU No. 2014-11 (B) 1,831 Proceeds from repayments (37,903 ) Valuation provision on loans (2,736 ) Balance at June 30, 2015 $ 523,018 (A) Represents loans acquired with the intent to sell, including loans acquired in the HLSS Acquisition (Note 1). (B) Represents loans financed with the selling counterparty that were previously accounted for as linked transactions. Real estate owned (REO) During the six months ended June 30, 2015 , New Residential received properties in satisfaction of non-performing residential mortgage loans. As a result, New Residential has recognized REO assets totaling approximately $20.6 million during the six months ended June 30, 2015 . In addition, New Residential has recognized $66.4 million in claims receivable from FHA on GNMA EBO loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim (Note 2). As of June 30, 2015 , New Residential had non-performing residential mortgage loans that were in the process of foreclosure with an unpaid principal balance of $376.6 million . Linked Transactions See Note 10 for a discussion of transactions formerly accounted for as linked transactions. |
INVESTMENTS IN CONSUMER LOANS,
INVESTMENTS IN CONSUMER LOANS, EQUITY METHOD INVESTEES | 6 Months Ended |
Jun. 30, 2015 | |
Investments In Consumer Loans Equity Method Investees [Abstract] | |
INVESTMENTS IN CONSUMER LOANS, EQUITY METHOD INVESTEES | INVESTMENTS IN CONSUMER LOANS, EQUITY METHOD INVESTEES In April 2013, New Residential completed, through newly formed limited liability companies (together, the “Consumer Loan Companies”), a co-investment in a portfolio of consumer loans. The portfolio included 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 acquired 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 approximately 73% of the original purchase price with asset-backed notes. In September 2013, the Consumer Loan Companies issued and sold additional asset-backed notes that were subordinate to the 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. On October 3, 2014, the Consumer Loan Companies refinanced the outstanding asset-backed notes with an asset-backed securitization for approximately $2.6 billion . The proceeds in excess of the refinanced debt were distributed to the respective co-investors. New Residential received approximately $337.8 million , which reduced New Residential’s basis in the consumer loans investment to $0.0 million and resulted in a gain of approximately $80.1 million . Subsequent to this refinancing, New Residential has discontinued recording its share of the underlying earnings of the Consumer Loan Companies until such time as their cumulative earnings exceed their cumulative distributions. During the six months ended June 30, 2015 , the Consumer Loan Companies distributed $19.0 million to New Residential in excess of its basis, resulting in corresponding gains, and made $0.6 million in tax withholding payments on behalf of New Residential. The tax withholding payments were considered a non-cash distribution. The following tables summarize the investment in the Consumer Loan Companies held by New Residential: June 30, 2015 December 31, 2014 Consumer loan assets (amortized cost basis) $ 1,880,054 $ 2,088,330 Other assets 78,643 92,051 Debt (2,145,948 ) (2,411,421 ) Other liabilities (5,479 ) (12,340 ) Equity $ (192,730 ) $ (243,380 ) New Residential’s investment $ — $ — New Residential’s ownership 30.0 % 30.0 % Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Interest income $ 116,271 $ 135,629 $ 238,140 $ 278,444 Interest expense (22,188 ) (18,106 ) (45,295 ) (40,301 ) Provision for finance receivable losses (17,719 ) (27,663 ) (37,355 ) (61,819 ) Other expenses, net (14,798 ) (19,279 ) (30,762 ) (39,731 ) Change in fair value of debt — 535 — (16,332 ) Net income $ 61,566 $ 71,116 $ 124,728 $ 120,261 New Residential’s equity in net income (through October 3, 2014) $ — $ 21,335 $ — $ 37,695 New Residential’s ownership 30.0 % 30.0 % 30.0 % 30.0 % The following is a summary of New Residential’s consumer loan investments made through equity method investees: Unpaid Principal Balance (A) Interest in Consumer Loan Companies Carrying Value (B) Weighted Average Coupon (C) Weighted Average Yield Weighted Average Expected Life (Years) (D) June 30, 2015 $ 2,329,736 30.0 % $ 1,880,054 18.2 % 17.8 % 3.5 December 31, 2014 $ 2,589,748 30.0 % $ 2,088,330 18.1 % 16.1 % 3.6 (A) Represents the May 31, 2015 and November 30, 2014 balances, respectively. (B) Represents the carrying value of the consumer loans held by the Consumer Loan Companies. (C) Substantially all of the cash flows received on the loans is required to be used to make payments on the notes described above. (D) Weighted Average Expected Life represents the weighted average expected timing of the receipt of expected cash flows for this investment. |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES As of June 30, 2015 , New Residential’s derivative instruments included economic hedges that were not designated as hedges for accounting purposes. 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, as well as other factors. New Residential’s credit risk with respect to economic hedges 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. As of June 30, 2015 , New Residential held to-be-announced forward contract positions (“TBAs”) of $954.0 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 was entered into as an economic hedge in order to mitigate New Residential’s interest rate risk on certain specified mortgage backed securities. 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. As of June 30, 2015, New Residential separately held TBAs of $200 million in a long notional amount of Agency RMBS and any amounts or obligations owed by or to New Residential are subject to the right of setoff with the TBA counterparty. New Residential purchased these TBAs during the second quarter, but as the specific securities were not identified as of June 30, 2015, the positions are recorded as a derivative within the Accrued expenses and other liabilities line in the condensed financial statements. 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. As a result of ASU No. 2014-11 (Note 2), New Residential determined that, as of January 1, 2015, its linked transactions are accounted for as secured borrowings. As a result, $32.4 million carrying amount of derivatives was removed from the balance sheet and replaced with $116.8 million carrying amount of Non-Agency RMBS, $1.8 million carrying amount of Residential Mortgage Loans, Held-for-Investment, $86.0 million of Repurchase Agreements, and $0.2 million of other liabilities. New Residential’s derivatives are recorded at fair value on the Condensed Consolidated Balance Sheets as follows: Balance Sheet Location June 30, 2015 December 31, 2014 Derivative assets Real Estate Securities (A) Derivative assets $ — $ 32,090 Non-Performing Loans (A) Derivative assets — 312 Interest Rate Caps Derivative assets 1,701 195 $ 1,701 $ 32,597 Derivative liabilities TBAs Accrued expenses and other liabilities $ 1,800 $ 4,985 Interest Rate Swaps Accrued expenses and other liabilities 14,324 9,235 $ 16,124 $ 14,220 (A) For December 31, 2014 , investments purchased from, and financed by, the selling counterparty that New Residential accounted for as linked transactions are reflected as derivatives. Upon the adoption of ASU No. 2014-11 on January 1, 2015, these transactions are accounted for as secured borrowings. The following table summarizes notional amounts related to derivatives: June 30, 2015 December 31, 2014 Non-Performing Loans (A) $ — $ 2,931 Real Estate Securities (B) — 186,694 TBAs, short position (C) 954,000 1,234,000 TBAs, long position (C) 200,000 — Interest Rate Caps (D) 2,560,000 210,000 Interest Rate Swaps, short positions (E) 2,144,000 1,107,000 (A) For December 31, 2014 , represents the UPB of the underlying loans of the non-performing loan pools within linked transactions. (B) For December 31, 2014 , represents the face amount of the real estate securities within linked transactions. (C) Represents the notional amount of Agency RMBS, classified as derivatives. (D) Caps LIBOR at 3.0% . (E) Receive LIBOR and pay a fixed rate. 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, 2015 2014 2015 2014 Other income (loss) Non-Performing Loans (A) $ — $ (985 ) $ — $ (314 ) Real Estate Securities (A) — — — 26 TBAs 1,754 (132 ) (1,800 ) 230 Interest Rate Swaps (1,737 ) (2,276 ) (5,089 ) (2,386 ) U.S.T. Short Positions — (408 ) — — Interest Rate Caps (1,246 ) — (1,370 ) — (1,229 ) (3,801 ) (8,259 ) (2,444 ) Gain (loss) on settlement of investments Real Estate Securities (A) — — — 43 TBAs 12,529 (3,824 ) (3,504 ) (4,002 ) Interest Rate Swaps 1,240 — (5,317 ) — U.S.T. Short Positions — 176 — 176 13,769 (3,648 ) (8,821 ) (3,783 ) Total gains (losses) $ 12,540 $ (7,449 ) $ (17,080 ) $ (6,227 ) (A) For December 31, 2014 , investments purchased from, and financed by, the selling counterparty that New Residential accounted for as linked transactions are reflected as derivatives. Upon the adoption of ASU No. 2014-11 on January 1, 2015, these transactions are accounted for as secured borrowings. |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | DEBT OBLIGATIONS The following table presents certain information regarding New Residential’s debt obligations: June 30, 2015 December 31, 2014 Collateral Debt Obligations/Collateral Month Issued Outstanding Face Amount Carrying Value (A) Final Stated Maturity Weighted Average Funding Cost Weighted Average Life (Years) Outstanding Face Amortized Cost Basis Carrying Value Weighted Average Life (Years) Carrying Value (A) Repurchase Agreements (B) Agency RMBS (C) Various $ 1,172,422 $ 1,172,422 Jul-15 to Aug-15 0.40 % 0.1 $ 1,167,997 $ 1,206,770 $ 1,204,179 1.0 $ 1,707,602 Non-Agency RMBS (D) Various 659,567 659,567 Jul-15 to Sep-15 1.87 % 0.1 2,281,029 901,082 910,802 7.4 539,049 Residential Mortgage Loans (E) Various 447,940 447,012 Aug-15 to Aug-16 2.95 % 0.6 618,216 543,131 540,415 2.7 867,334 Real Estate Owned (F)(G) Various 82,946 82,784 Aug-15 to Aug-16 3.15 % 0.6 N/A N/A 89,168 N/A 35,105 Consumer Loan Investment (H) Apr-15 42,976 42,832 Oct-15 3.77 % 0.3 N/A N/A — 3.5 — Total Repurchase Agreements 2,405,851 2,404,617 1.44 % 0.2 3,149,090 Notes Payable Secured Corporate Note (I) May-15 195,590 193,561 Apr-17 5.43 % 1.8 101,243,511 230,282 268,951 4.8 — Servicer Advances (J) Various 7,687,572 7,667,067 Oct-15 to Jun-18 2.88 % 1.1 8,278,685 8,081,258 8,182,400 4.3 2,885,784 Residential Mortgage Loans (K) Oct-14 22,433 22,433 Oct-15 3.07 % 0.3 39,475 23,305 21,601 4.1 22,194 Real Estate Owned N/A — — — % — N/A N/A — N/A 785 Total Notes Payable 7,905,595 7,883,061 2.94 % 1.1 2,908,763 Total/ Weighted Average $ 10,311,446 $ 10,287,678 2.59 % 0.9 $ 6,057,853 (A) Net of deferred financing costs associated with the adoption of ASU No. 2015-03. (B) These repurchase agreements had approximately $2.5 million of associated accrued interest payable as of June 30, 2015 . (C) The counterparties of these repurchase agreements are Citibank ( $232.2 million ), Morgan Stanley ( $77.0 million ), Barclays ( $96.8 million ), Daiwa ( $377.2 million ) and Jefferies ( $389.2 million ) and were subject to customary margin call provisions. All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include related trade and other receivables. (D) The counterparties of these repurchase agreements are Barclays ( $5.4 million ), Credit Suisse ( $263.7 million ), Royal Bank of Canada ( $10.2 million ), Bank of America, N.A. ( $88.7 million ), Citibank ( $60.6 million ), Goldman Sachs ( $70.1 million ) and UBS ( $160.8 million ) and were subject to customary margin call provisions. All of the Non-Agency repurchase agreements have LIBOR-based floating interest rates. (E) The counterparties on these repurchase agreements are Barclays ( $263.4 million maturing in January 2016), Bank of America N.A. ( $61.4 million maturing in August 2016), Nomura ( $60.5 million maturing in May 2016), Citibank ( $2.7 million maturing in August 2015) and Credit Suisse ( $60.0 million maturing in November 2015). All of these repurchase agreements have LIBOR-based floating interest rates. (F) The counterparties of these repurchase agreements are Barclays ( $68.2 million ), Credit Suisse ( $0.9 million ), Bank of America, N.A. ( $3.5 million ), Citibank ( $0.6 million ) and Nomura ( $9.8 million ). All of these repurchase agreements have LIBOR-based floating interest rates. (G) Includes financing collateralized by receivables including claims from FHA on GNMA EBO loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee. (H) The repurchase agreement is payable to Bank of America, N.A. and bears interest equal to three-month LIBOR plus 3.50% and is collateralized by New Residential’s interest in consumer loans (Note 9). (I) The loan bears interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 5.25% . The outstanding face of the collateral represents the UPB of the residential mortgage loans underlying the Excess MSRs that secure this corporate loan. (J) $3.1 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 1.0% to 2.0% . (K) The note is payable to Nationstar and bears interest equal to one-month LIBOR plus 2.875% . 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 $2.4 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. Activities related to the carrying value of New Residential’s debt obligations were as follows: Servicer Advances Real Estate Securities Real Estate Loans Consumer Loan Investment Other Total Balance at December 31, 2014 (A) $ 2,890,230 $ 2,246,651 $ 925,418 $ — $ — $ 6,062,299 Repurchase Agreements: Borrowings — 2,222,172 386,439 42,976 — 2,651,587 Modified retrospective adjustment for the adoption of ASU No. 2014-11 — 84,649 1,306 — — 85,955 Repayments — (2,721,483 ) (759,298 ) — — (3,480,781 ) Adoption of ASU No. 2015-03 — — (1,090 ) (144 ) — (1,234 ) Notes Payable: Retrospective adjustment for the adoption of ASU No. 2015-03 (4,446 ) — — — — (4,446 ) Borrowings 7,210,317 — 1,632 — 852,419 8,064,368 Repayments (2,412,975 ) — (2,178 ) — (658,810 ) (3,073,963 ) Adoption of ASU No. 2015-03 (16,059 ) — — — (48 ) (16,107 ) Balance at June 30, 2015 $ 7,667,067 $ 1,831,989 $ 552,229 $ 42,832 $ 193,561 $ 10,287,678 (A) Excludes debt related to linked transactions (Note 10). Servicer Advances During the six months ended June 30, 2015 , the Buyer entered into agreements to increase financing pursuant to one servicer advance facility and one of the notes, which settled in March 2015. The facility increased capacity from $500.0 million to $1.0 billion , and the note increased from $650.0 million to $800.0 million with a fixed interest rate equal to 2.50% and an expected repayment date of March 2017. In connection with the HLSS Acquisition, New Residential funded the purchase of servicer advances with notes issued under the HSART and HSART II facilities with a number of financial institutions consisting of (i) variable funding notes (“VFNs”) with a borrowing capacity of up to $5.0 billion and (ii) $2.5 billion of term notes (“Term Notes”) issued 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 1.0% to 1.6% depending on the class of the notes. The VFNs in the HSART II facility have expected repayment dates in December 2015 and the VFNs in the HSART facility have expected repayment dates in April 2016. The Term Notes generally bear interest at approximately 2.0% and have and expected repayment dates from October 2015 through June 2018. The VFN and the Term Notes are secured by servicer advances, and the financing is nonrecourse, except for customary recourse provisions. During the second quarter of 2015, New Residential repaid a portion of the VFNs pursuant to the HSART facility with proceeds of new notes issued under a new servicer advance facility. This facility issued a VFN with a borrowing capacity of $0.4 billion . The VFN has an expected repayment date of April 2017. The VFN bears interest at a rate equal to the sum of (i) LIBOR or a cost of funds rate plus (ii) a spread of 1.95% . The VFN is secured by servicer advances, and the financing is nonrecourse, except for customary recourse provisions. Residential Mortgage Loans During the second quarter of 2015 , as a part of the HLSS Acquisition, New Residential acquired a portfolio of non-performing GNMA EBO residential mortgage loans with a UPB of $424.3 million for approximately $418.8 million , financed with a $393.0 million repurchase agreement with Barclays. Borrowings on this facility bear interest equal to the sum of (i) a floating rate index rate equal to one-month LIBOR and (ii) a margin of 2.77% and have an expected repayment date in January 2016. This facility contains customary covenants and event of default provisions. Consumer Loan Investment During the second quarter of 2015 , New Residential entered into a $43.0 million repurchase agreement with Bank of America, N.A. Borrowings on this facility bear interest equal to the sum of (i) a floating rate index rate equal to three-month LIBOR and (ii) a margin of 3.50% . This facility contains customary covenants and event of default provisions. Other During the second quarter of 2015 , New Residential entered into an agreement to increase financing on a $100.0 million secured corporate loan with Credit Suisse First Boston Mortgage Capital LLC, an affiliate of Credit Suisse Securities (USA) LLC. The agreement increased capacity from $100.0 million to $205.0 million . The loan bore interest equal to the sum of (i) a floating rate index rate equal to one-month LIBOR and (ii) a margin of 3.75% . The loan agreement contained customary covenants and event of default provisions. The loan was repaid in May 2015. During the second quarter of 2015 , New Residential entered into a $165.0 million secured corporate loan with Barclays maturing in April 2016. The loan agreement contained customary covenants and event of default provisions. The loan was repaid in May 2015. During the second quarter of 2015 , New Residential entered into $265.0 million of secured corporate debt with Credit Suisse maturing in July 2015. The loan contained customary covenants and event of default provisions. The loan was repaid in June 2015. During the second quarter of 2015 , New Residential issued a $219.4 million secured corporate note maturing in April 2017. The loan bears interest equal to the sum of (i) a floating rate index rate equal to one-month LIBOR and (ii) a margin of 5.25% until May 2016, after which the loan bears interest equal to the sum of (i) a floating rate index rate equal to one-month LIBOR and (ii) a margin of 7.25% . The loan agreement contains customary covenants and event of default provisions. Maturities New Residential’s debt obligations as of June 30, 2015 had contractual maturities as follows: Year Nonrecourse Recourse Total July 1 through December 31, 2015 $ 1,203,382 $ 1,961,575 $ 3,164,957 2016 4,386,775 396,462 4,783,237 2017 1,654,662 195,590 1,850,252 2018 513,000 — 513,000 $ 7,757,819 $ 2,553,627 $ 10,311,446 Borrowing Capacity The following table represents New Residential’s borrowing capacity as of June 30, 2015 : Debt Obligations/ Collateral Collateral Type Borrowing Capacity Balance Outstanding Available Financing Repurchase Agreements Residential Mortgage Loans Real Estate Loans $ 2,275,000 $ 465,992 $ 1,809,008 Notes Payable Servicer Advances (A) Servicer Advances 11,163,000 7,687,572 3,475,428 $ 13,438,000 $ 8,153,564 $ 5,284,436 (A) New Residential’s unused borrowing capacity is available if New Residential has additional eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements, including any applicable advance rate. New Residential pays a 0.4% fee on the unused borrowing capacity. Certain of the debt obligations are subject to customary loan covenants and event of default provisions, including event of default provisions triggered by a 50% equity decline over any 12 -month period or a 35% decline over any 3 -month period and a 4 :1 indebtedness to tangible net worth provision. New Residential was in compliance with all of its debt covenants as of June 30, 2015 . |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 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 value (A) $ 335,643,658 $ 1,504,422 $ — $ — $ 1,504,422 $ 1,504,422 Excess mortgage servicing rights, equity method investees, at fair value (A) 79,731,703 216,112 — — 216,112 216,112 Servicer advances 8,278,685 8,182,400 — — 8,182,400 8,182,400 Real estate securities, available-for-sale 3,328,343 1,907,961 — 994,030 913,931 1,907,961 Residential mortgage loans, held-for-investment 62,362 42,741 — — 43,870 43,870 Residential mortgage loans, held-for-sale 599,610 523,018 — — 524,105 524,105 Non-hedge derivatives 2,560,000 1,701 — 1,701 — 1,701 Cash and cash equivalents 432,007 432,007 432,007 — — 432,007 Restricted cash 134,735 134,735 134,735 — — 134,735 $ 12,945,097 $ 566,742 $ 995,731 $ 11,384,840 $ 12,947,313 Liabilities: Repurchase agreements $ 2,405,851 $ 2,404,617 $ — $ 1,831,989 $ 573,862 $ 2,405,851 Notes payable 7,905,595 7,883,061 — — 7,908,842 7,908,842 Derivative liabilities 3,298,000 16,124 — 16,124 — 16,124 $ 10,303,802 $ — $ 1,848,113 $ 8,482,704 $ 10,330,817 (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. New Residential’s financial assets measured at fair value on a recurring basis using Level 3 inputs changed 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, 2014 $ 217,519 $ 200,214 $ 232,618 $ 98,258 $ 3,270,839 $ 723,000 $ 32,402 $ 4,774,850 Transfers (C) Transfers from Level 3 — — — — — — — — Transfers to Level 3 — — — — — — — — Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights — 98,258 — (98,258 ) — — — — Gains (losses) included in net income Included in other-than-temporary impairment (“OTTI”) on securities (D) — — — — — (1,720 ) — (1,720 ) Included in change in fair value of investments in excess mortgage servicing rights (D) 5,425 (6,830 ) — — — — — (1,405 ) Included in change in fair value of investments in excess mortgage servicing rights, equity method investees (D) — — 8,016 — — — — 8,016 Included in change in fair value of investments in servicer advances — — — — 16,893 — — 16,893 Included in gain on settlement of investments, net — — — — — 3,808 — 3,808 Included in other income (D) 1,577 — — — — — — 1,577 Gains (losses) included in other comprehensive income, net of tax (E) — — — — — (560 ) — (560 ) Interest income 13,176 36,221 — — 150,937 23,196 — 223,530 Purchases, sales, repayments and transfers Purchases 129,098 919,531 — — 11,404,992 490,438 — 12,944,059 Proceeds from sales — — — — — (389,719 ) — (389,719 ) Proceeds from repayments (25,268 ) (84,499 ) (24,522 ) — (6,661,261 ) (51,344 ) — (6,846,894 ) De-linked transactions (F) — — — — — 116,832 (32,402 ) 84,430 Balance at June 30, 2015 $ 341,527 $ 1,162,895 $ 216,112 $ — $ 8,182,400 $ 913,931 $ — $ 10,816,865 (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 each 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) See Note 10 for a discussion of transactions formerly accounted for as linked transactions. Investments in Excess MSRs and Excess MSRs Equity Method Investees Valuation The following table summarizes certain information regarding the weighted average inputs used in valuing the Excess MSRs owned directly and through equity method investees as of June 30, 2015 : Significant Inputs (A) Directly Held (Note 4) Prepayment Speed (B) Delinquency (C) Recapture Rate (D) Excess Mortgage Servicing Amount (bps) (E) Agency Original and Recaptured Pools 10.6 % 4.2 % 32.7 % 22 Recapture Agreement 7.7 % 4.6 % 20.0 % 24 10.3 % 4.2 % 31.4 % 22 Non-Agency (F) Nationstar and SLS Serviced: Original and Recaptured Pools 12.7 % N/A 10.3 % 21 Recapture Agreement 7.5 % N/A 20.0 % 20 Ocwen Serviced Pools 9.4 % N/A — % 14 10.0 % N/A 2.3 % 17 Total/Weighted Average--Directly Held 10.1 % 4.2 % 7.9 % 18 Held through Equity Method Investees (Note 5) Agency Original and Recaptured Pools 12.7 % 6.4 % 33.4 % 19 Recapture Agreement 7.7 % 4.5 % 20.0 % 23 Total/Weighted Average--Held through Investees 11.9 % 6.1 % 31.2 % 19 Total/Weighted Average--All Pools 10.4 % 4.6 % 12.4 % 18 (A) Weighted by amortized cost basis of the mortgage loan portfolio. (B) Projected annualized weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (C) Projected percentage of mortgage loans in the pool that will miss their mortgage payments. (D) Percentage of voluntarily prepaid loans that are expected to be refinanced by Nationstar. (E) Weighted average total mortgage servicing amount in excess of the basic fee. (F) For certain pools, the Excess MSR will be paid on the total UPB of the mortgage portfolio (including both performing and delinquent loans until REO). For these pools, no delinquency assumption is used. As of June 30, 2015 , a weighted average discount rate of 9.8% was used to value New Residential’s investments in Excess MSRs (directly and through equity method investees). 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 (A) Discount Rate June 30, 2015 2.4 % 10.6 % 14.2 % 19.5 bps 5.5 % (A) Mortgage servicing amount excludes the amounts New Residential pays its servicers as a monthly servicing fee. Real Estate Securities Valuation As of June 30, 2015 , 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 RMBS $ 958,141 $ 991,514 $ 994,030 $ — $ 994,030 2 Non-Agency RMBS (C) 2,370,202 902,005 901,377 12,554 913,931 3 Total $ 3,328,343 $ 1,893,519 $ 1,895,407 $ 12,554 $ 1,907,961 (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. New Residential’s investments in Agency RMBS are classified within Level 2 of the fair value hierarchy because the market for these securities is very active and market prices are readily observable. (B) Management was unable to obtain quotations from more than one source on these securities. The one source was the party that sold New Residential the security. (C) Includes New Residential’s investments in interest-only notes for which the fair value option for financial instruments was elected. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets are measured at fair value on a nonrecurring basis; that is, they are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances, such as when there is evidence of impairment. For residential mortgage loans held-for-sale and foreclosed real estate accounted for as REO, New Residential applies the lower of cost or fair value accounting and may be required, from time to time, to record a nonrecurring fair value adjustment. At June 30, 2015 and December 31, 2014 , assets measured at fair value on a nonrecurring basis were $259.2 million and $666.6 million , respectively. The $259.2 million and the $666.6 million include approximately $233.9 million and $610.1 million of residential mortgage loans held-for-sale and $25.3 million and $56.5 million of REO, respectively. The fair value of New Residential’s mortgage loans held-for-sale are estimated based on a discounted cash flow model analysis using internal pricing models and categorized within Level 3 of the fair value hierarchy. The following table summarizes the inputs used in valuing these residential mortgage loans as of June 30, 2015 : June 30, 2015 Fair Value Discount Rate Weighted Average Life (Years) (A) Prepayment Rate CDR (B) Loss Severity (C) Non-performing Loans $ 233,881 5.6 % 3.1 2.1 % N/A 29.4 % (A) The weighted average life is based on the expected timing of the receipt of cash flows. (B) Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance. (C) Loss severity is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding loan balance. 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. These discounts to the broker price opinion are generally 10% . The total change in the recorded value of assets for which a fair value adjustment was included in the Consolidated Statements of Income for the six months ended June 30, 2015 was a reduction of approximately $2.7 million and $2.9 million for residential mortgage loans held-for-sale and REO, respectively. Residential Mortgage Loans for Which Fair Value is Only Disclosed The fair value of New Residential’s residential mortgage loans 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. The following table summarizes the inputs used in valuing residential mortgage loans as of June 30, 2015 : Carrying Value Fair Value Valuation Provision/ (Reversal) In Current Year Discount Rate Weighted Average Life (Years) (A) Prepayment Rate CDR (B) Loss Severity (C) Reverse Mortgage Loans (D) $ 21,601 $ 21,601 $ 186 10.0 % 4.1 N/A N/A 6.9 % Performing Loans 21,140 22,269 118 7.9 % 5.7 5.6 % 2.9 % 56.9 % Non-performing Loans 289,137 290,224 N/A 5.0 % 3.0 — % N/A — % Total/Weighted Average $ 331,878 $ 334,094 $ 304 5.5 % 3.2 4.1 % (A) The weighted average life is based on the expected timing of the receipt of cash flows. (B) Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance. (C) Loss severity is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding loan balance. (D) Carrying value and fair value represent a 70% interest New Residential holds in the reverse mortgage loans. Derivative Valuation New Residential enters into economic hedges including interest rate swaps and 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. They 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 are valued based on internal models utilizing both observable and unobservable inputs. As of June 30, 2015 , the notes payable have an estimated fair value of $7,908.8 million and a carrying value of $7,883.1 million . |
EQUITY AND EARNINGS PER SHARE
EQUITY AND EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2015 | |
Equity and Earnings Per Share [Abstract] | |
EQUITY AND EARNINGS PER SHARE | EQUITY AND EARNINGS PER SHARE Equity and Dividends New Residential’s Board of Directors authorized a one-for-two reverse stock split on August 5, 2014, subject to stockholder approval. In a special meeting on October 15, 2014, New Residential’s stockholders approved the reverse split. On October 17, 2014, New Residential effected the one-for-two reverse stock split of its common stock. As a result of the reverse stock split, every two shares of New Residential’s common stock were converted into one share of common stock, reducing the number of issued and outstanding shares of New Residential’s common stock from approximately 282.8 million to approximately 141.4 million . The impact of this reverse stock split has been retroactively applied to all periods presented. In April 2015, New Residential issued the New Residential Acquisition Common Stock in connection with the HLSS Acquisition (Note 1). In April 2015, New Residential issued 29,213,020 shares of its common stock in a public offering at a price to the public of $15.25 per share for net proceeds of approximately $436.1 million . One of New Residential’s executive officers participated in this offering and purchased 250,000 shares at the public offering price. For the purpose of compensating the Manager for its successful efforts in raising capital for New Residential, in connection with this offering and the New Residential Acquisition Common Stock issued in the HLSS Acquisition, New Residential granted options to the Manager to purchase 5,750,000 shares of New Residential’s common stock at a price of $15.25 , which had a fair value of approximately $8.9 million as of the grant date. The assumptions used in valuing the options were: a 2.02% risk-free rate, a 6.71% dividend yield, 24.04% volatility and a 10 year term. In June 2015, New Residential issued 27.9 million shares of its common stock in a public offering at a price to the public of $15.88 per share for net proceeds of approximately $442.6 million . One of New Residential’s executive officers participated in this offering and purchased 9,100 shares at the public offering price. 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 2.8 million shares of New Residential’s common stock at the public offering price, which had a fair value of approximately $3.7 million as of the grant date. The assumptions used in valuing the options were: a 2.61% risk-free rate, a 7.81% dividend yield, 23.73% volatility and a 10 year term. In addition, the Manager and its employees exercised an aggregate of 6.2 million options and were issued an aggregate of 3.6 million shares of New Residential’s common stock in a cashless exercise, which were sold to third parties in a simultaneous secondary offering. In July 2015, one former employee of the Manager exercised an aggregate of 37,500 options and received 20,227 shares of New Residential’s common stock in a cashless exercise. On December 18, 2014, New Residential’s board of directors declared a fourth quarter 2014 dividend of $0.38 per common share or $53.7 million , which was paid on January 30, 2015 to stockholders of record as of December 30, 2014. On March 16, 2015, New Residential’s board of directors declared a first quarter 2015 dividend of $0.38 per common share or $53.7 million , which was paid on April 30, 2015 to stockholders of record as of March 26, 2015. On May 14, 2015, New Residential’s board of directors declared a second quarter 2015 dividend of $0.45 per common share or $89.5 million , which was paid on July 24, 2015 to stockholders of record as of May 26, 2015. Approximately 2.4 million shares of New Residential’s common stock were held by Fortress, through its affiliates, and its principals at June 30, 2015 . Option Plan As of June 30, 2015 , New Residential’s outstanding options were summarized as follows: Issued Prior to 2011 Issued in 2011-2015 Total Held by the Manager 343,440 10,557,860 10,901,300 Issued to the Manager and subsequently transferred to certain of the Manager’s employees 90,560 1,421,747 1,512,307 Issued to the independent directors 1,000 4,000 5,000 Total 435,000 11,983,607 12,418,607 The following table summarizes New Residential’s outstanding options as of June 30, 2015 . The last sales price on the New York Stock Exchange for New Residential’s common stock in the quarter ended June 30, 2015 was $15.24 per share. Recipient Date of Grant/ Exercise (A) Number of Options Options Exercisable as of June 30, 2015 Weighted Average Exercise Price (B) Intrinsic Value as of June 30, 2015 (millions) Directors Various 6,000 5,000 $ 17.54 $ — Manager (C) 2003 - 2007 1,226,555 434,000 31.36 — Manager (C) Mar-11 838,417 — 6.58 — Manager (C) Sep-11 1,269,917 — 4.98 — Manager (C) Apr-12 948,750 17,500 6.82 0.10 Manager (C) May-12 1,150,000 21,750 7.34 0.20 Manager (C) Jul-12 1,265,000 23,250 7.34 0.20 Manager (C) Jan-13 2,875,000 759,866 10.24 3.80 Manager (C) Feb-13 1,150,000 1,073,331 11.48 4.00 Manager (C) Apr-14 1,437,500 670,833 12.20 2.00 Manager (C) Apr-15 2,828,698 188,580 15.25 — Manager (C) Apr-15 2,921,302 194,753 15.25 — Manager (C) Jun-15 2,793,539 — 15.88 — Exercised (D) 2013-2015 (7,499,518 ) N/A 7.60 N/A Expired unexercised 2013-2015 (792,553 ) N/A N/A N/A Outstanding 12,418,607 3,388,863 (A) Options expire on the tenth anniversary from date of grant. (B) The strike prices are subject to adjustment in connection with return of capital dividends. (C) The Manager assigned certain of its options to Fortress’s employees as follows: Date of Grant Range of Strike Prices Total Unexercised Inception to Date 2005-2007 $29.92 to $33.80 90,560 2012 $6.82 to $7.34 62,501 2013 $10.24 to $11.48 1,100,496 2014 $12.20 258,750 Total 1,512,307 (D) Exercised by employees of Fortress, subsequent to their assignment, or by directors. The options exercised had an intrinsic value of $60.0 million . Income and Earnings Per Share 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, 2015 , based on the treasury stock method, New Residential had 4,259,059 and 3,869,894 dilutive common stock equivalents outstanding, respectively. During the three and six months ended June 30, 2014 , based on the treasury stock method, New Residential had 3,202,674 and 3,228,568 dilutive common stock equivalents outstanding, respectively. 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, 2015 | |
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, 2015 , 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, except as described below. Following the HLSS Acquisition (see Note 1 for related defined terms), material potential claims, lawsuits, and other proceedings, of which New Residential is currently aware, are as follows. New Residential has not accrued losses in connection with these legal contingencies because management does not believe there is probable and reasonably estimable loss. Three putative class action lawsuits have been filed against HLSS and certain of its current and former officers and directors in the United States District Court for the Southern District of New York entitled: (i) Oliveira v. Home Loan Servicing Solutions, Ltd., et al. , No. 15-CV-652 (S.D.N.Y.), filed on January 29, 2015; (ii) Berglan v. Home Loan Servicing Solutions, Ltd., et al. , No. 15-CV-947 (S.D.N.Y.), filed on February 9, 2015; and (iii) W. Palm Beach Police Pension Fund v. Home Loan Servicing Solutions, Ltd., et al. , No. 15-CV-1063 (S.D.N.Y.), filed on February 13, 2015. On April 2, 2015, these three lawsuits were consolidated into a single action, which is referred to as the “New York Action.” On April 28, 2015, lead plaintiffs, lead counsel and liaison counsel were appointed in the New York Action. On July 17, 2015, lead plaintiffs filed a consolidated class action complaint. The New York Action names as defendants HLSS, former HLSS Chairman William C. Erbey, HLSS Director, President, and Chief Executive Officer John P. Van Vlack, and HLSS Chief Financial Officer James E. Lauter. The New York Action asserts causes of action under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 based on certain public disclosures made by HLSS relating to its relationship with Ocwen and HLSS’s risk management and internal controls. More specifically, the consolidated class action complaint alleges that a series of statements in HLSS’s disclosures were materially false and misleading, including statements about (i) Ocwen’s servicing capabilities; (ii) HLSS’s contingencies and legal proceedings; (iii) its risk management and internal controls and (iv) certain related party transactions. The consolidated class action complaint also appears to allege that HLSS’s financial statements for the years ended 2012 and 2013, and the first quarter ended March 30, 2014, were false and misleading based on HLSS’s August 18, 2014 restatement. Lead plaintiffs in the New York Action also allege that HLSS misled investors by failing to disclose, among other things, information regarding governmental investigations of Ocwen’s business practices. New Residential intends to vigorously defend the New York Action. Two shareholder derivative actions have been filed purportedly on behalf of Ocwen Financial Corporation naming as defendants HLSS and certain current and former directors and officers of Ocwen, including former HLSS Chairman William C. Erbey, entitled (i) Sokolowski v. Erbey, et al. , No. 9:14-CV-81601 (S.D. Fla.), filed on December 24, 2014 (the “Sokolowski Action”), and (ii) Moncavage v. Faris, et al. , No. 2015CA003244 (Fla. Palm Beach Cty. Ct.), filed on March 20, 2015 (collectively, with the Sokolowski Action, the “Ocwen Derivative Actions”). The original complaint in the Sokolowski Action named as defendants certain current and former directors and officers of Ocwen, including former HLSS Chairman William C. Erbey. On February 11, 2015, plaintiff in the Sokolowski Action filed an amended complaint naming additional defendants, including HLSS. The Ocwen Derivative Actions assert a cause of action for aiding and abetting certain alleged breaches of fiduciary duty under Florida law against HLSS and others, and claim that HLSS (i) substantially assisted Ocwen’s alleged wrongful conduct by purchasing Ocwen’s mortgage servicing rights and (ii) received improper benefits as a result of its business dealings with Ocwen due to Mr. Erbey’s purported control over both HLSS and Ocwen. Additionally, the Sokolowski Action asserts a cause of action for unjust enrichment against HLSS and others. On March 11, 2015, plaintiff David Rattner filed a shareholder derivative action purportedly on behalf of HLSS entitled Rattner v. Van Vlack, et al. , No. 2015CA002833 (Fla. Palm Beach Cty. Ct.) (the “HLSS Derivative Action”). The lawsuit names as defendants HLSS directors John P. Van Vlack, Robert J. McGinnis, Kerry Kennedy, Richard J. Lochrie, and David B. Reiner (collectively, the “Director Defendants”), New Residential Investment Corp., and Hexagon Merger Sub, Ltd. The HLSS Derivative Action alleges that the Director Defendants breached their fiduciary duties of due care, diligence, loyalty, honesty and good faith and the duty to act in the best interests of HLSS under Cayman law and claims that the Director Defendants approved a proposed merger with New Residential Investment Corp. that (i) provided inadequate consideration to HLSS’s shareholders, (ii) included unfair deal protection devices, (iii) and was the result of an inadequate process due to conflicts of interest. On July 8, 2015, the complaint was voluntarily dismissed without prejudice. On September 15, 2014, HLSS received a subpoena from the SEC requesting that it provide certain information related to HLSS’s prior accounting conventions for and valuations of its Notes receivable - Rights to MSRs that resulted in the restatement of HLSS’s consolidated financial statements for the years ended December 31, 2013 and 2012 and for the quarter ended March 31, 2014 during August 2014. On December 22, 2014, HLSS received a subpoena from the SEC requesting that it provide information related to certain governance documents and transactions and certain communications regarding the same. New Residential and HLSS are cooperating with the SEC in these matters. HLSS has been and continues to be subject to other inquiries by government and other entities, as disclosed in HLSS’s filings with the SEC. New Residential is, from time to time, subject to inquiries by government entities in the ordinary course of business. New Residential currently does not believe any of these inquiries would result in a material adverse effect on New Residential’s business. 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, 2015 , 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, 2015 ): Excess MSRs — As of June 30, 2015 , New Residential had outstanding capital commitments related to the acquisition of Excess MSRs on portfolios of Agency residential mortgage loans as discussed in Note 18. See Notes 4 and 5 for information on New Residential’s investments in Excess MSRs. Servicer Advances — New Residential and third-party co-investors agreed to purchase future servicer advances related to 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 (Note 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 AN
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | 6 Months Ended |
Jun. 30, 2015 | |
Transactions With Affiliates And Affiliated Entities | |
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES New Residential is party to a Management Agreement with its Manager which provides for automatically renewing one-year terms subject to certain termination rights. The Manager’s performance is reviewed annually and the Management Agreement may be terminated by New Residential by payment of a termination fee, as defined in the Management Agreement, equal to the amount of management fees earned by the Manager during the twelve consecutive calendar months immediately preceding the termination, upon the affirmative vote of at least two-thirds of the independent directors, or by a majority vote of the holders of common stock. Pursuant to the Management Agreement, the Manager, under the supervision of New Residential’s board of directors, formulates investment strategies, arranges for the acquisition of assets and associated financing, monitors the performance of New Residential’s assets and provides certain advisory, administrative and managerial services in connection with the operations of New Residential. Effective May 15, 2013, the Manager is entitled to receive a management fee in an amount equal to 1.5% per annum of New Residential’s gross equity calculated and payable monthly in arrears in cash. Gross equity is generally the equity transferred by Newcastle on the distribution date, plus total net proceeds from stock offerings, plus certain capital contributions to subsidiaries, less capital distributions and repurchases of common stock. In addition, effective May 15, 2013, the Manager is entitled to receive annual incentive compensation in an amount equal to the product of (A) 25% of the dollar amount by which (1) (a) New Residential’s funds from operations before the incentive compensation, excluding funds from operations from investments in the Consumer Loan Companies and any unrealized gains or losses from mark-to-market valuation changes on investments and debt (and any deferred tax impact thereof), per share of common stock, plus (b) earnings (or losses) from the Consumer Loan Companies computed on a level-yield basis (such that the loans are treated as if they qualified as loans acquired with a discount for credit quality as set forth in ASC No. 310-30, as such codification was in effect on June 30, 2013) as if the Consumer Loan Companies had been acquired at their GAAP basis on May 15, 2013, earnings (or losses) from equity method investees invested in Excess MSRs as if such equity method investees had not made a fair value election, and gains (or losses) from debt restructuring and gains (or losses) from sales of property and other assets, in each case per share of common stock, exceed (2) an amount equal to (a) the weighted average of the book value per share of the equity transferred by Newcastle on the date of the spin-off and the prices per share of New Residential’s common stock in any offerings (adjusted for prior capital dividends or capital distributions) multiplied by (b) a simple interest rate of 10% per annum, multiplied by (B) the weighted average number of shares of common stock outstanding. “Funds from operations” means net income (computed in accordance with GAAP), excluding gains (or losses) from debt restructuring and gains (or losses) from sales of property, plus depreciation on real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. Funds from operations will be computed on an unconsolidated basis. The computation of funds from operations may be adjusted at the direction of New Residential’s independent directors based on changes in, or certain applications of, GAAP. Funds from operations is determined from the date of the spin-off and without regard to Newcastle’s prior performance. In addition to the management fee and incentive compensation, New Residential is responsible for reimbursing the Manager for certain expenses paid by the Manager on behalf of New Residential. Due to affiliates is comprised of the following amounts: June 30, 2015 December 31, 2014 Management fees $ 3,114 $ 1,710 Incentive compensation 6,084 54,334 Expense reimbursements and other 472 1,380 $ 9,670 $ 57,424 Affiliate expenses and fees were comprised of: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Management fees $ 8,371 $ 4,915 $ 13,497 $ 9,401 Incentive compensation 2,391 18,863 6,084 22,201 Expense reimbursements (A) 125 125 250 250 Total $ 10,887 $ 23,903 $ 19,831 $ 31,852 (A) Included in General and Administrative Expenses in the Condensed Consolidated Statements of Income. On May 7, 2015, New Residential entered into the Third Amended and Restated Management and Advisory Agreement with the Manager, which amends and restates the Second Amended and Restated Management and Advisory Agreement, dated as of August 5, 2014, in order to amortize certain non-capitalized transaction-related expenses over time in the computation of incentive compensation. The impact of this change on the six months ended June 30, 2015 was to increase incentive compensation by $3.3 million . See Notes 4, 5, 6, 7, 8, 11, 14 and 18 for a discussion of transactions with Nationstar. As of June 30, 2015 , 63.0% and 35.6% of the UPB of the loans underlying New Residential’s investments in Excess MSRs and servicer advances, respectively, was serviced or master serviced by Nationstar. As of June 30, 2015 , a total face amount of $2.3 billion of New Residential’s Non-Agency RMBS portfolio and approximately $29.0 million of New Residential’s Agency RMBS portfolio was serviced or master serviced by Nationstar. The total UPB of the loans underlying these Nationstar serviced Non-Agency RMBS was approximately $8.8 billion as of June 30, 2015 . New Residential holds a limited right to cleanup call options with respect to certain securitization trusts serviced or master serviced by Nationstar with an aggregate UPB of underlying mortgage loans of approximately $86.0 billion whereby, when the outstanding balance falls below a pre-determined threshold, it can effectively purchase the underlying mortgage loans by repaying all of the outstanding securitization financing at par, in exchange for a fee paid to Nationstar. New Residential continues to evaluate the call rights it purchased from Nationstar, and its ability to exercise such rights and realize the benefits therefrom are subject to a number of risks. The actual UPB of the mortgage loans on which New Residential can successfully exercise call rights and realize the benefits therefrom may differ materially from its initial assumptions. As of June 30, 2015 , $309.9 million UPB of New Residential’s residential mortgage loans and $19.3 million of New Residential’s REO were being serviced by Nationstar. As a result of these relationships, New Residential routinely has receivables from, and payables to, Nationstar, which are included in Other Assets and Accrued Expenses and Other Liabilities, respectively. See Note 9 for a discussion of a transaction with Springleaf and Note 5 regarding co-investments with Fortress-managed funds. |
RECLASSIFICATION FROM ACCUMULAT
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
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, 2015 2014 2015 2014 Reclassification of net realized (gain) loss on securities into earnings Gain on settlement of investments, net $ 17,921 $ (57,284 ) $ (6,776 ) $ (61,776 ) Reclassification of net realized (gain) loss on securities into earnings Other-than-temporary impairment on securities 649 615 1,720 943 Total reclassifications $ 18,570 $ (56,669 ) $ (5,056 ) $ (60,833 ) |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense (benefit) consists of the following: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Current: Federal $ (106 ) $ 2,236 $ 630 $ 2,453 State and Local 64 1,514 (1,092 ) 1,584 Total Current Income Tax Expense (Benefit) (42 ) 3,750 (462 ) 4,037 Deferred: Federal 13,281 13,236 11,958 13,236 State and Local 1,067 4,409 (617 ) 4,409 Total Deferred Income Tax Expense (Benefit) 14,348 17,645 11,341 17,645 Total Income Tax Expense (Benefit) $ 14,306 $ 21,395 $ 10,879 $ 21,682 New Residential intends to qualify as a REIT for the tax years ending December 31, 2014 and 2015 . 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 operates a securitization vehicle and has made certain investments, particularly its investments in servicer advances (Note 6) and REO (Note 8), through TRSs that are subject to regular corporate income taxes which have been provided for in the provision for income taxes, as applicable. New Residential and its subsidiaries file income tax returns with the U.S. federal government and various state and local jurisdictions beginning with the tax year ending December 31, 2013. 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. As of December 31, 2014 , New Residential recorded an increase to the income tax provision of $2.3 million for unrecognized tax benefits. The reserve for unrecognized tax benefits related to state and local tax positions expected to be taken on the income tax returns. As a result of information received from local tax authorities, New Residential has determined that the reserve for unrecognized tax benefits is no longer needed and has reduced the reserve for unrecognized tax benefits to zero as of March 31, 2015. As a result, New Residential recorded a benefit of $2.3 million to the income tax provision as of March 31, 2015. On April 6, 2015, as a part of the purchase price allocation related to the HLSS Acquisition (Note 1), New Residential recorded an increase to its deferred tax asset of $186.8 million . The deferred tax asset primarily relates to the difference in the book basis and tax basis of New Residential’s investment in servicer advances. Management believes that such deferred tax asset is more likely than not to be realized and, therefore, no valuation allowance has been recorded against such deferred tax asset as of June 30, 2015 . New Residential has recorded a net deferred tax asset of approximately $159.2 million as of June 30, 2015 . |
RECENT ACTIVITIES
RECENT ACTIVITIES | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
RECENT ACTIVITIES | RECENT ACTIVITIES These financial statements include a discussion of material events that have occurred subsequent to June 30, 2015 (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 16, 2015, New Residential invested approximately $2.4 million to acquire a 33.3% interest in the Excess MSRs on a portfolio of Freddie Mac residential mortgage loans with an aggregate UPB of $0.8 billion . Fortress-managed funds and Nationstar each agreed to acquire a 33.3% interest in the Excess MSRs. Nationstar as servicer agreed to 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 the 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. Servicer Advances Subsequent to June 30, 2015 and prior to August 10, 2015 , the Buyer purchased a total of $277.4 million of servicer advances and recovered $457.5 million of existing servicer advances. Notes payable outstanding decreased by $162.0 million and restricted cash decreased approximately $0.4 million in relation to these fundings. Additionally, the Buyer paid $3.8 million to Nationstar as a contractual incentive fee. Subsequent to June 30, 2015 and prior to August 10, 2015 , New Residential purchased a total of $25.8 million of SLS servicer advances and recovered $44.9 million of existing SLS servicer advances. Notes payable outstanding decreased by $16.9 million and restricted cash decreased approximately $0.05 million in relation to these fundings. Subsequent to June 30, 2015 and prior to August 10, 2015 , New Residential purchased a total of $1.3 billion of Ocwen servicer advances and recovered $1.7 billion of existing Ocwen servicer advances. Notes payable outstanding decreased by $271.5 million and restricted cash decreased approximately $15.5 million in relation to these fundings. Real Estate Securities Subsequent to June 30, 2015 , New Residential acquired Non-Agency RMBS with an aggregate face amount of approximately $157.2 million for approximately $114.1 million , financed with repurchase agreements. New Residential sold no Agency or Non-Agency RMBS. Subsequent to June 30, 2015 , New Residential financed an additional $942.0 million of Agency RMBS within various repurchase facilities as a result of the closing of prior purchases. Additionally, New Residential paid down $955.1 million of Agency RMBS repurchase facilities with proceeds from the outstanding open trades receivable. Finally, New Residential rolled $206.9 million within various repurchase facilities to mature August 2015 . Subsequent to June 30, 2015 , New Residential financed an additional $69.2 million of Non-Agency RMBS within various repurchase facilities as a result of purchases. New Residential also rolled $490.8 million of its Non-Agency RMBS repurchase facilities to mature between August 2015 and November 2015 . Derivatives Subsequent to June 30, 2015 , New Residential entered into one separate interest rate swap agreement with a single counterparty with a $300 million notional amount to further hedge a portion of its interest rate exposure. Corporate Activities On May 14, 2015, New Residential’s board of directors declared a second quarter 2015 dividend of $0.45 per common share or $89.5 million , which was paid on July 24, 2015 to stockholders of record as of May 26, 2015. |
ORGANIZATION (Policies)
ORGANIZATION (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | 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 condensed consolidated financial statements should be read in conjunction with New Residential’s consolidated financial statements for the year ended December 31, 2014 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, 2014 . Certain prior period amounts have been reclassified to conform to the current period’s presentation. In addition, New Residential completed a one-for-two reverse stock split in October 2014 (Note 13). The impact of this reverse stock split has been retroactively applied to all periods presented. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 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 effect, companies will be required to exercise further judgment and make more estimates prospectively. 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. ASU No. 2014-09 is effective for New Residential in the first quarter of 2017. Early adoption is not permitted. Entities have the option of using either a full retrospective or a modified approach to adopt the guidance in ASU No. 2014-09. New Residential is currently evaluating the new guidance to determine the impact it may have on its condensed consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-11, Transfers and Servicing (Topic 860): 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. ASU No. 2014-11 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. ASU No. 2014-11 was effective for New Residential in the first quarter of 2015. Early adoption is not permitted. Disclosures are not required for comparative periods presented before the effective date. New Residential has determined that, as of January 1, 2015, its linked transactions (Note 10) are accounted for as secured borrowings. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . The standard provides guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern by requiring management to assess an entity’s ability to continue as a going concern by incorporating and expanding on certain principles that are currently in U.S. auditing standards. ASU No. 2014-15 is effective for New Residential for the annual period ending on December 31, 2016. Early adoption is permitted. New Residential is currently evaluating the new guidance to determine the impact that it may have on its condensed consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . The standard amends the consolidation considerations when evaluating certain limited partnerships, variable interest entities and investment funds. ASU No. 2015-02 is effective for New Residential in the first quarter of 2016. Early adoption is permitted. New Residential does not expect the adoption of this new guidance to have an impact on its condensed consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest . The standard amends the balance sheet presentation requirements for debt issuance costs such that they are no longer recognized as deferred charges but are rather presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, consistent with debt discounts. ASU No. 2015-03 is effective for New Residential in the first quarter of 2016. Early adoption is permitted. New Residential has adopted ASU No. 2015-03 in June 2015 and has determined that the adoption of ASU No. 2015-03 resulted in an immaterial reclassification of its Deferred Financing Costs, Net (Note 2) to an offset of its Notes Payable (Note 11). The FASB has recently issued or discussed a number of proposed standards on such topics as 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. |
ORGANIZATION (Tables)
ORGANIZATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Consideration Paid | The total consideration is summarized as follows: Total Consideration Amount Share Issuance Consideration 28,286,980 New Residential's 4/6/2015 share price $ 15.3460 Dollar Value of Share Issuance (A) $ 434,092 Cash Consideration 621,982 HLSS Seller Financing (B) 385,174 New Merger Payment (71,016,771 $0.704059) (C) 50,000 Total Consideration $ 1,491,248 (A) Share Issuance Consideration The share issuance consideration consists of 28.3 million newly issued shares of New Residential common stock with a par value $0.01 per share. The fair value of the common stock at the date of the acquisition was $15.3460 per share, which was New Residential’s volume weighted average share price on April 6, 2015. (B) HLSS Seller Financing New Residential agreed to deliver $1.0 billion of cash purchase price, including a promise to pay an amount of $385.2 million immediately after closing from the proceeds of financing that was committed in anticipation of the HLSS Acquisition and is collateralized by certain of the HLSS assets acquired. (C) New Merger Payment The New Merger Agreement, and the $50.0 million consideration related thereto, is included as a part of the business combination in conjunction with the Share and Asset Purchase Agreement. The range of outcomes for this contingent consideration is from $0 to $50.0 million , dependent on whether the New Merger is approved by HLSS shareholders and other factors. |
Summary of Preliminary Purchase Price Allocation | The preliminary allocation of the total consideration, following reclassifications to conform to New Residential’s presentation, is as follows: Total Consideration ($ in millions) $ 1,491.2 Assets Cash and cash equivalents $ 51.5 Servicer advances, at fair value 5,098.2 Excess mortgage servicing rights, at fair value 919.5 Residential mortgage loans, held-for-sale (A) 418.8 Deferred tax asset (B) 186.8 Investment in HLSS Ltd. 46.0 Other assets (C) 405.3 Total Assets Acquired $ 7,126.1 Liabilities Notes payable 5,583.0 Deferred tax liabilities (0.7 ) Accrued expenses and other liabilities (D)(E) 52.6 Total Liabilities Assumed $ 5,634.9 Net Assets $ 1,491.2 (A) Represents $424.3 million UPB of GNMA early buy-out (“EBO”) residential mortgage loans not subject to ASC No. 310-30 as the contractual cash flows are guaranteed by the Federal Housing Administration (“FHA”). (B) Due to the difference between carryover historical tax basis and acquisition date fair value of one of HLSS’s first tier subsidiaries. (C) Includes restricted cash and receivables not subject to ASC No. 310-30 which New Residential has deemed fully collectible. (D) Includes liabilities arising from contingencies regarding ongoing HLSS matters (Note 14). (E) Contingencies for HLSS class action law suits have not been recognized at the acquisition date as the criteria in ASC No. 450 have not been met (Note 14). |
Summary of Unaudited Pro Forma Combined Interest Income and Income (Loss) Before Income Taxes | The following table presents unaudited pro forma combined Interest income and Income Before Income Taxes for the three and six months ended June 30, 2014 and 2015 prepared as if the HLSS Acquisition had been consummated on January 1, 2014. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (unaudited) (unaudited) (unaudited) (unaudited) Pro Forma Interest income $ 184,083 $ 187,020 $ 349,138 $ 364,009 Income Before Income Taxes 100,912 252,716 172,129 356,647 |
OTHER INCOME, ASSETS AND LIAB28
OTHER INCOME, ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Income Assets And Liabilities | |
Schedule of Other Income | Other income, net, is comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Unrealized gain (loss) on derivative instruments $ (1,229 ) $ (3,801 ) $ (8,259 ) $ (2,444 ) Gain (loss) on transfer of loans to REO 347 6,694 (197 ) 6,694 Gain on consumer loans investment 8,510 — 18,957 — Other income (loss) 808 — (28 ) — $ 8,436 $ 2,893 $ 10,473 $ 4,250 |
Schedule of Gain on Settlement of Investments | Gain on settlement of investments, net is comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Gain (loss) on sale of real estate securities, net $ (17,921 ) $ 57,284 $ 6,776 $ 61,776 Gain (loss) on sale of residential mortgage loans, net 11,795 — 32,625 — Gain (loss) on settlement of derivatives 13,769 (3,648 ) (8,821 ) (3,783 ) Gain (loss) on liquidated residential mortgage loans, held-for-investment (277 ) — 123 — Gain (loss) on sale of REO (A) (2,201 ) (1,097 ) (7,837 ) (643 ) Other gains (losses) (3,964 ) — (6,898 ) (454 ) $ 1,201 $ 52,539 $ 15,968 $ 56,896 (A) Includes approximately $3.2 million loss on REO sold as a part of the residential mortgage loan sales described in Note 8 during the six months ended June 30, 2015 . |
Schedule of Other Assets and Other Liabilities | Other assets and liabilities are comprised of the following: Other Assets Accrued Expenses and Other Liabilities June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Margin receivable, net $ 54,530 $ 59,021 Interest payable $ 15,607 $ 7,857 Other receivables (A) 23,351 1,797 Accounts payable 35,788 28,059 Deferred financing costs, net (B) — — Derivative liabilities 16,124 14,220 Principal paydown receivable 1,510 3,595 Current taxes payable 7,449 2,349 Receivable from government agency (C) 75,524 9,108 Contingent consideration (Note 1) 50,000 — Call rights 680 3,728 Other liabilities 9,351 20 Interest receivable 31,509 8,658 $ 134,319 $ 52,505 GNMA EBO servicer advance receivable (D) 69,387 — Other assets (E) 22,119 9,516 $ 278,610 $ 95,423 (A) Primarily includes advance collections that were in-transit to pay down related debt obligations. (B) Deferred financing costs were reclassified as an offset to the related debt obligation in June 2015 pursuant to ASU No. 2015-03 (Note 1). (C) Represents claims receivable from FHA on EBO and reverse mortgage loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee. (D) Represents GNMA EBO servicer advances funded by HLSS and accounted for as a financing transaction as the counterparty retained title and all other rights and rewards associated with such advances. (E) Primarily includes prepaid expenses. |
Schedule of Accretion 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, 2015 2014 Accretion of servicer advance interest income $ 150,937 $ 102,823 Accretion of excess mortgage servicing rights income 49,397 24,789 Accretion of net discount on securities and loans 19,703 12,477 Amortization of deferred financing costs (10,900 ) (5,750 ) $ 209,137 $ 134,339 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Summary of Segment Financial Data | 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, 2015 Interest income $ 34,359 $ 108,588 $ 23,454 $ 10,795 $ — $ 981 $ 178,177 Interest expense — 63,450 3,540 5,185 524 9,172 81,871 Net interest income (expense) 34,359 45,138 19,914 5,610 (524 ) (8,191 ) 96,306 Impairment — — 650 4,771 — — 5,421 Other income 4,298 24,115 (4,211 ) 7,817 8,510 (2,879 ) 37,650 Operating expenses 260 1,688 105 5,610 54 27,235 34,952 Income (Loss) Before Income Taxes 38,397 67,565 14,948 3,046 7,932 (38,305 ) 93,583 Income tax expense (benefit) — 15,657 — (1,351 ) — — 14,306 Net Income (Loss) $ 38,397 $ 51,908 $ 14,948 $ 4,397 $ 7,932 $ (38,305 ) $ 79,277 Noncontrolling interests in income (loss) of consolidated subsidiaries $ — $ 9,279 $ — $ — $ — $ (5,121 ) $ 4,158 Net income (loss) attributable to common stockholders $ 38,397 $ 42,629 $ 14,948 $ 4,397 $ 7,932 $ (33,184 ) $ 75,119 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, 2015 Interest income $ 49,397 $ 150,937 $ 37,715 $ 23,520 $ — $ 981 $ 262,550 Interest expense — 87,086 7,021 11,278 524 9,941 115,850 Net interest income (expense) 49,397 63,851 30,694 12,242 (524 ) (8,960 ) 146,700 Impairment — — 1,720 5,749 — — 7,469 Other income 8,188 13,389 (9,302 ) 21,592 18,957 (2,879 ) 49,945 Operating expenses 349 2,263 3 11,712 111 42,784 57,222 Income (Loss) Before Income Taxes 57,236 74,977 19,669 16,373 18,322 (54,623 ) 131,954 Income tax expense (benefit) — 12,417 — (1,538 ) — — 10,879 Net Income (Loss) $ 57,236 $ 62,560 $ 19,669 $ 17,911 $ 18,322 $ (54,623 ) $ 121,075 Noncontrolling interests in income (loss) of consolidated subsidiaries $ — $ 15,102 $ — $ — $ — $ (5,121 ) $ 9,981 Net income (loss) attributable to common stockholders $ 57,236 $ 47,458 $ 19,669 $ 17,911 $ 18,322 $ (49,502 ) $ 111,094 Servicing Related Assets Residential Securities and Loans Excess MSRs Servicer Advances Real Estate Securities Real Estate Loans Consumer Loans Corporate Total June 30, 2015 Investments $ 1,720,534 $ 8,182,400 $ 1,907,961 $ 591,086 $ — $ — $ 12,401,981 Cash and cash equivalents 3,900 95,899 16,516 6,689 2,665 306,338 432,007 Restricted cash 90 131,368 — 3,184 — 93 134,735 Derivative assets — 1,701 — — — — 1,701 Other assets 1,470 174,115 1,048,521 109,468 1,102 89,698 1,424,374 Total assets $ 1,725,994 $ 8,585,483 $ 2,972,998 $ 710,427 $ 3,767 $ 396,129 $ 14,394,798 Debt $ — $ 7,667,067 $ 1,831,989 $ 552,229 $ 42,832 $ 193,561 $ 10,287,678 Other liabilities 218 48,859 771,769 23,804 595 166,793 1,012,038 Total liabilities 218 7,715,926 2,603,758 576,033 43,427 360,354 11,299,716 Total equity 1,725,776 869,557 369,240 134,394 (39,660 ) 35,775 3,095,082 Noncontrolling interests in equity of consolidated subsidiaries — 231,652 — — — — 231,652 Total New Residential stockholders’ equity $ 1,725,776 $ 637,905 $ 369,240 $ 134,394 $ (39,660 ) $ 35,775 $ 2,863,430 Investments in equity method investees $ 216,112 $ — $ — $ — $ — $ — $ 216,112 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 (benefit) — 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 (loss) of consolidated subsidiaries $ — $ 58,705 $ — $ — $ — $ — $ 58,705 Net income (loss) attributable to common stockholders $ 28,898 $ 29,175 $ 68,237 $ 4,870 $ 19,707 $ (27,384 ) $ 123,503 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 (benefit) — 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 (loss) of consolidated subsidiaries $ — $ 66,798 $ — $ — $ — $ — $ 66,798 Net income (loss) attributable to common stockholders $ 54,334 $ 34,305 $ 80,060 $ 5,809 $ 34,561 $ (36,794 ) $ 172,275 |
INVESTMENTS IN EXCESS MORTGAG30
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Transfers and Servicing [Abstract] | |
Schedule of Activity Related to the Carrying Value of Investments in Excess MSRs | The following table presents activity related to the carrying value of New Residential’s investments in Excess MSRs: Servicer Nationstar SLS (A) Ocwen (B) Total Balance as of December 31, 2014 $ 409,076 $ 8,657 $ — $ 417,733 Transfers from indirect ownership 98,258 — — 98,258 Purchases 129,098 — 919,531 1,048,629 Interest income 29,297 192 19,908 49,397 Other income 1,577 — — 1,577 Proceeds from repayments (59,821 ) (660 ) (49,286 ) (109,767 ) Change in fair value 2,993 (1,459 ) (2,939 ) (1,405 ) Balance as of June 30, 2015 $ 610,478 $ 6,730 $ 887,214 $ 1,504,422 (A) Specialized Loan Servicing LLC (“SLS”). See Note 6 for a description of the SLS Transaction. (B) Ocwen services the loans underlying the Excess MSRs and Servicer Advances acquired from HLSS. See Note 1. |
Summary of Direct Investments in Excess MSRs | The following is a summary of New Residential’s direct investments in Excess MSRs: June 30, 2015 December 31, 2014 Unpaid Principal Balance (“UPB”) of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis (B) Carrying Value (C) Carrying Value (C) New Residential Fortress-managed funds Nationstar Agency Original and Recaptured Pools $ 80,896,500 32.5% - 66.7% 0.0%-40.0% 20.0% - 35.0% 5.8 $ 240,981 $ 291,288 $ 188,733 Recapture Agreements — 32.5% - 66.7% 0.0%-40.0% 20.0% - 35.0% 11.5 26,945 50,239 28,786 80,896,500 6.4 267,926 341,527 217,519 Non-Agency (D) Nationstar and SLS Serviced: Original and Recaptured Pools $ 103,812,302 33.3% - 80.0% 0.0% - 50.0% 0.0% - 33.3% 4.9 $ 222,394 $ 258,729 $ 189,812 Recapture Agreements — 33.3% - 80.0% 0.0% - 50.0% 0.0% - 33.3% 11.9 15,835 16,952 10,402 Ocwen Serviced Pools 150,934,856 100.0 % — % — % 5.4 890,153 887,214 — 254,747,158 5.4 1,128,382 1,162,895 200,214 Total $ 335,643,658 5.6 $ 1,396,308 $ 1,504,422 $ 417,733 (A) Weighted Average Life represents the weighted average expected timing of the receipt of expected cash flows for this investment. (B) 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. (C) Carrying Value represents the fair value of the pools or Recapture Agreements, as applicable. (D) Excess MSR investments in which New Residential also invested in related servicer advances, including the basic fee component of the related MSR as of June 30, 2015 (Note 6). Changes in fair value recorded in other income are comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Original and Recaptured Pools $ (3,441 ) $ 2,801 $ (5,418 ) $ 9,888 Recapture Agreements 3,797 2,701 4,013 2,216 $ 356 $ 5,502 $ (1,405 ) $ 12,104 |
Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans of the Direct Investments 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 June 30, 2015 December 31, 2014 California 26.7 % 31.5 % Florida 9.2 % 7.7 % New York 7.0 % 4.3 % Texas 4.5 % 4.2 % New Jersey 4.0 % 3.2 % Maryland 3.8 % 4.0 % Illinois 3.4 % 3.2 % Virginia 3.2 % 3.3 % Washington 2.8 % 3.6 % Massachusetts 2.6 % 2.1 % Other U.S. 32.8 % 32.9 % 100.0 % 100.0 % |
INVESTMENTS IN EXCESS MORTGAG31
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of the Financial Results of Excess MSR Joint Ventures, Accounted for as Equity Method Investees | The following tables summarize the financial results of the Excess MSR joint ventures, accounted for as equity method investees, held by New Residential: June 30, 2015 December 31, 2014 Excess MSR assets $ 421,673 $ 653,293 Other assets 10,551 8,472 Other liabilities — (13 ) Equity $ 432,224 $ 661,752 New Residential’s investment $ 216,112 $ 330,876 New Residential’s ownership 50.0 % 50.0 % Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Interest income $ 9,216 $ 17,292 $ 20,917 $ 35,785 Other income (loss) (3,005 ) 8,194 (4,840 ) 2,489 Expenses (22 ) (1 ) (46 ) (41 ) Net income $ 6,189 $ 25,485 $ 16,031 $ 38,233 New Residential’s investments in equity method investees changed during the six months ended June 30, 2015 as follows: Balance at December 31, 2014 $ 330,876 Contributions to equity method investees — Transfers to direct ownership (98,258 ) Distributions of earnings from equity method investees (19,920 ) Distributions of capital from equity method investees (4,602 ) Change in fair value of investments in equity method investees 8,016 Balance at June 30, 2015 $ 216,112 |
Summary of Excess MSR 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, 2015 Unpaid Principal Balance Investee Interest in Excess MSR (A) New Residential Interest in Investees Amortized Cost Basis (B) Carrying Value (C) Weighted Average Life (Years) (D) Agency Original and Recaptured Pools $ 79,731,703 66.7 % 50.0 % $ 279,923 $ 344,856 5.5 Recapture Agreements — 66.7 % 50.0 % 55,976 76,817 11.8 Total $ 79,731,703 $ 335,899 $ 421,673 6.6 (A) The remaining interests are held by Nationstar. (B) 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. (C) 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. (D) The weighted average life represents the weighted average expected timing of the receipt of cash flows of each investment. |
Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans of the Excess MSR Investments 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 June 30, 2015 December 31, 2014 California 13.0 % 23.5 % Florida 7.4 % 8.9 % Texas 6.1 % 4.8 % New York 5.6 % 5.6 % Georgia 5.6 % 4.1 % New Jersey 4.2 % 3.9 % Illinois 4.0 % 3.5 % Virginia 3.2 % 3.2 % Maryland 3.2 % 3.3 % Pennsylvania 3.0 % 2.3 % Other U.S. 44.7 % 36.9 % 100.0 % 100.0 % |
INVESTMENTS IN SERVICER ADVAN32
INVESTMENTS IN SERVICER ADVANCES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments, All Other Investments [Abstract] | |
Summary of Investments 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: Amortized Cost Basis Carrying Value (A) Weighted Average Discount Rate Weighted Average Yield Weighted Average Life (Years) (B) June 30, 2015 Servicer advances $ 8,081,258 $ 8,182,400 5.5 % 5.6 % 4.3 As of December 31, 2014 Servicer advances $ 3,186,622 $ 3,270,839 5.4 % 5.4 % 4.0 (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. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Changes in Fair Value Recorded in Other Income $ 24,562 $ 82,877 $ 16,893 $ 82,877 The following is additional information regarding the servicer advances and related financing: 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 Face Amount of Notes Payable Gross Net (A) Gross Net June 30, 2015 Servicer advances (C) $ 238,526,743 $ 8,278,685 3.5 % $ 7,687,572 92.9 % 91.6 % 3.0 % 2.2 % December 31, 2014 Servicer advances (C) $ 96,547,773 $ 3,102,492 3.2 % $ 2,890,230 91.4 % 90.4 % 3.0 % 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, 2015 December 31, 2014 Principal and interest advances $ 2,467,831 $ 729,713 Escrow advances (taxes and insurance advances) 4,135,900 1,600,713 Foreclosure advances 1,674,954 772,066 Total $ 8,278,685 $ 3,102,492 |
Schedule of Interest Income Related to Investments in Servicer Advances | Interest income recognized by New Residential related to its investments in servicer advances was comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Interest income, gross of amounts attributable to servicer compensation $ 226,961 $ 86,546 $ 290,318 $ 153,684 Amounts attributable to base servicer compensation (31,957 ) (43,026 ) (38,558 ) (49,306 ) Amounts attributable to incentive servicer compensation (86,416 ) 13,587 (100,823 ) (1,555 ) Interest income from investments in servicer advances $ 108,588 $ 57,107 $ 150,937 $ 102,823 Others’ interests in the equity of the Buyer is computed as follows: June 30, 2015 December 31, 2014 Total Advance Purchaser LLC equity $ 417,481 $ 457,545 Others’ ownership interest 55.5 % 55.5 % Others’ interest in equity of consolidated subsidiary $ 231,652 $ 253,836 Others’ interests in the Buyer’s net income is computed as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net Advance Purchaser LLC income $ 16,725 $ 105,882 $ 27,222 $ 119,393 Others’ ownership interest as a percent of total (A) 55.5 % 55.4 % 55.5 % 55.9 % Others’ interest in net income (loss) of consolidated subsidiaries (B) $ 9,279 $ 58,705 $ 15,102 $ 66,798 (A) As a result, New Residential owned 44.5% and 44.6% of the Buyer, on average during the three months ended June 30, 2015 and 2014 , respectively, and 44.5% and 44.1% of the Buyer, on average during the six months ended June 30, 2015 and 2014 , respectively. (B) Excludes HLSS shareholders’ interests in the net income (loss) of HLSS of $5.1 million , $0.0 million , $5.1 million , and $0.0 million during these periods, respectively. |
INVESTMENTS IN REAL ESTATE SE33
INVESTMENTS IN REAL ESTATE SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Real Estate Securities | The following is a summary of New Residential’s real estate securities, 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 and except for securities which New Residential elected to carry at fair value and record changes to valuation through the income statement. Gross Unrealized Weighted Average December 31, 2014 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) Carrying Value Agency RMBS (E)(F) $ 958,141 $ 991,514 $ 5,199 $ (2,683 ) $ 994,030 28 AAA 3.27 % 3.00 % 7.5 N/A $ 1,740,163 Non-Agency RMBS (G) (H) 2,370,202 902,005 18,668 (6,742 ) 913,931 167 B- 2.57 % 4.79 % 7.6 12.7 % 723,000 Total/ Weighted Average $ 3,328,343 $ 1,893,519 $ 23,867 $ (9,425 ) $ 1,907,961 195 A- 2.88 % 3.85 % 7.5 $ 2,463,163 (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 46 bonds which either have never been rated or for which rating information is no longer provided. For each security rated by multiple rating agencies, the lowest rating is used. New Residential used an implied AAA rating for the Agency 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) The total outstanding face amount was $753.8 million for fixed rate securities and $204.3 million for floating rate securities as of June 30, 2015 . (G) The total outstanding face amount was $1.4 billion (including $1.4 billion of residual and interest-only notional amount) for fixed rate securities and $954.6 million (including $99.8 million of residual and interest-only notional amount) for floating rate securities as of June 30, 2015 . (H) Includes Other ABS consisting primarily of interest-only securities which New Residential elected to carry at fair value and record changes to valuation through the income statement and representing 7.4% of the carrying value of the Non-Agency RMBS portfolio. Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Amortized Cost Basis Gains Losses Carrying Value Number of Securities Rating Coupon Yield Life (Years) Principal Subordination Other ABS $ 1,222,088 $ 67,980 $ 1,472 $ (1,840 ) $ 67,612 9 AA+ 1.87 % 7.64 % 3.6 N/A |
Summary 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, 2015 . Amortized Cost Basis Weighted Average Securities in an Unrealized Loss Position Outstanding Face Amount Before Impairment Other-Than- Temporary Impairment (A) After Impairment Gross Unrealized Losses Carrying Value Number of Securities Rating (B) Coupon Yield Life (Years) Less than Twelve Months $ 1,171,377 $ 311,767 $ (1,120 ) $ 310,647 $ (6,221 ) $ 304,426 43 BB 1.43 % 4.41 % 9.3 Twelve or More Months 176,335 176,534 — 176,534 (3,204 ) 173,330 23 AAA 2.37 % 2.60 % 5.4 Total/Weighted Average $ 1,347,712 $ 488,301 $ (1,120 ) $ 487,181 $ (9,425 ) $ 477,756 66 BBB+ 1.77 % 3.75 % 7.9 (A) This amount represents other-than-temporary impairment recorded on securities that are in an unrealized loss position as of June 30, 2015 . (B) The weighted average rating of securities in an unrealized loss position for less than twelve months excludes the rating of 10 bonds which either have never been rated or for which rating information is no longer provided. 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, 2015 Unrealized Losses Fair Value Amortized Cost Basis After Impairment Credit (A) Non-Credit (B) Securities New Residential intends to sell (C) $ — $ — $ — $ — Securities New Residential is more likely than not to be required to sell (D) — — — N/A Securities New Residential has no intent to sell and is not more likely than not to be required to sell: Credit impaired securities 89,596 90,961 (1,120 ) (1,365 ) Non-credit impaired securities 388,160 396,220 — (8,060 ) Total debt securities in an unrealized loss position $ 477,756 $ 487,181 $ (1,120 ) $ (9,425 ) (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 no t have unrealized losses reflected in other comprehensive income as of June 30, 2015 . (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. |
Summary of Activity Related to Credit Losses on Debt Securities | The following table summarizes the activity related to credit losses on debt securities: Six Months Ended June 30, 2015 Beginning balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income $ 1,127 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 6 Additions for credit losses on securities for which an OTTI was not previously recognized 1,714 Reductions for securities for which the amount previously recognized in other comprehensive 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 comprehensive income at the current measurement date — Reduction for securities sold during the period (349 ) Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income $ 2,498 |
Summary of the Geographic Distribution of the Collateral Securing Non-Agency RMBS | The table below summarizes the geographic distribution of the collateral securing New Residential’s Non-Agency RMBS: June 30, 2015 December 31, 2014 Geographic Location Outstanding Face Amount Percentage of Total Outstanding Outstanding Face Amount Percentage of Total Outstanding Western U.S. $ 823,659 34.7 % $ 779,930 41.1 % Southeastern U.S. 604,140 25.5 % 409,755 21.6 % Northeastern U.S. 445,557 18.8 % 344,716 18.2 % Midwestern U.S. 232,262 9.8 % 190,480 10.0 % Southwestern U.S. 261,190 11.0 % 170,829 9.0 % Other (A) 3,394 0.2 % 440 0.1 % $ 2,370,202 100.0 % $ 1,896,150 100.0 % (A) Represents collateral for which New Residential was unable to obtain geographic information. |
Schedule of the Outstanding Face Amount and Carrying Value for Securities Uncollectible | 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, excluding residual and interest-only securities: Outstanding Face Amount Carrying Value June 30, 2015 $ 580,296 $ 366,155 December 31, 2014 536,342 414,298 |
Summary of Changes in Accretable Yield for Securities | The following is a summary of the changes in accretable yield for these securities: Six Months Ended June 30, 2015 Balance at December 31, 2014 $ 181,671 Adoption of ASU No. 2014-11 146,741 Additions 84,044 Accretion (13,372 ) Reclassifications from (to) non-accretable difference (27,602 ) Disposals (97,991 ) Balance at June 30, 2015 $ 273,491 |
INVESTMENTS IN RESIDENTIAL MO34
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO | The following table presents certain information regarding New Residential’s residential mortgage loans outstanding by loan type, excluding REO: June 30, 2015 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) Weighted Average FICO (D) December 31, 2014 Carrying Value Loan Type Reverse Mortgage Loans (E)(F) $ 39,475 $ 21,601 165 10.0 % 4.1 21.5 % 110.4 % 75.6 % N/A $ 24,965 Performing Loans (G) 22,887 21,140 699 8.9 % 5.7 17.9 % 77.8 % 10.8 % 628 22,873 Total Residential Mortgage Loans, held-for- investment $ 62,362 $ 42,741 864 9.6 % 4.7 20.1 % 98.4 % 51.9 % 628 $ 47,838 Performing Loans, held-for-sale (G) $ — $ — — — % — — % — % — % — $ 388,485 Non-performing Loans, held-for-sale (H)(I) 599,610 523,018 3,680 5.3 % 3.0 14.7 % 107.8 % 93.3 % 574 737,954 Residential Mortgage Loans, held-for-sale $ 599,610 $ 523,018 3,680 5.3 % 3.0 14.7 % 107.8 % 93.3 % 574 $ 1,126,439 (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 the total principal balance that are 60+ days delinquent. (D) The weighted average FICO score is based on the weighted average of information updated and provided by the loan servicer on a monthly basis. (E) Represents a 70% interest that New Residential holds in reverse mortgage loans. The average loan balance outstanding based on total UPB is $0.3 million . 74% 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. (F) FICO scores are not used in determining how much a borrower can access via a reverse mortgage loan. (G) Includes loans that are current or less than 30 days past due at acquisition where New Residential expects to collect all contractually required principal and interest payments. Presented net of unamortized discounts of $1.6 million . (H) Includes loans with evidence of credit deterioration since origination where it is probable that New Residential will not collect all contractually required principal and interest payments. As of June 30, 2015 , New Residential has placed all of these loans on nonaccrual status, except as described in (I) below. (I) Includes $293.2 million UPB of GNMA EBO non-performing loans on accrual status as contractual cash flows are guaranteed by the FHA. |
Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans | The table below summarizes the geographic distribution of the underlying residential mortgage loans: Percentage of Total Outstanding Unpaid Principal Amount as of State Concentration June 30, 2015 December 31, 2014 New Jersey 17.8 % 7.0 % New York 16.5 % 12.2 % Florida 8.4 % 6.3 % California 6.4 % 15.0 % Maryland 4.1 % 3.4 % Illinois 3.7 % 4.4 % Pennsylvania 3.4 % 3.9 % Massachusetts 3.3 % 2.4 % Washington 2.9 % 3.0 % Oregon 2.7 % 1.5 % Other U.S. 30.8 % 40.9 % 100.0 % 100.0 % |
Schedule of Past Due Information for Performing Loans | The following table provides past due information for New Residential’s Performing Loans, which is an important indicator of credit quality and the establishment of the allowance for loan losses: June 30, 2015 Days Past Due Delinquency Status (A) Current 29.3 % 30-59 59.9 % 60-89 9.2 % 90-119 (B) 0.7 % 120+ (C) 0.9 % 100.0 % (A) Represents the percentage of the total principal balance that corresponds to loans that are in each delinquency status. (B) Includes loans 90 - 119 days past due and still accruing interest because they are generally placed on nonaccrual status at 120 days or more past due. (C) Represents nonaccrual loans. |
Summary of Activities Related to the Carrying Value of Reverse Mortgage Loans and Performing Loans and PCI Loans Held for Investment | Activities related to the carrying value of residential mortgage loans held-for-investment were as follows: For the Six Months Ended June 30, 2015 Reverse Mortgage Loans Performing Loans Balance at December 31, 2014 $ 24,965 $ 22,873 Purchases/additional fundings — — Proceeds from repayments (99 ) (1,514 ) Accretion of loan discount (premium) and other amortization 2,720 (101 ) Provision for loan losses (186 ) (118 ) Transfer of loans to other assets (5,762 ) — Transfer of loans to real estate owned (37 ) — Balance at June 30, 2015 $ 21,601 $ 21,140 |
Summary of Activities Related to the Valuation Provision on Reverse Mortgage Loans and Allowance for Loan Losses on Performing Loans | Activities related to the valuation provision on reverse mortgage loans and allowance for loan losses on performing loans held-for-investment were as follows: For the Six Months Ended June 30, 2015 Reverse Mortgage Loans Performing Loans Balance at December 31, 2014 $ 1,518 $ 1,447 Allowance for loan losses (A) 186 118 Charge-offs (B) — (1,371 ) Balance at June 30, 2015 $ 1,704 $ 194 (A) 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. (B) 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. |
Summary of Activities Related to the Carrying Value of Loans Held-for-sale | Activities related to the carrying value of loans held-for-sale were as follows: For the Six Months Ended June 30, 2015 Loans Held-for-Sale Balance at December 31, 2014 $ 1,126,439 Purchases (A) 807,579 Sales (1,352,158 ) Transfer of loans to real estate owned (20,034 ) Adoption of ASU No. 2014-11 (B) 1,831 Proceeds from repayments (37,903 ) Valuation provision on loans (2,736 ) Balance at June 30, 2015 $ 523,018 (A) Represents loans acquired with the intent to sell, including loans acquired in the HLSS Acquisition (Note 1). (B) Represents loans financed with the selling counterparty that were previously accounted for as linked transactions. |
INVESTMENTS IN CONSUMER LOANS35
INVESTMENTS IN CONSUMER LOANS, EQUITY METHOD INVESTEES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments In Consumer Loans Equity Method Investees [Abstract] | |
Summary of the Investment in Consumer Loan Companies | The following tables summarize the investment in the Consumer Loan Companies held by New Residential: June 30, 2015 December 31, 2014 Consumer loan assets (amortized cost basis) $ 1,880,054 $ 2,088,330 Other assets 78,643 92,051 Debt (2,145,948 ) (2,411,421 ) Other liabilities (5,479 ) (12,340 ) Equity $ (192,730 ) $ (243,380 ) New Residential’s investment $ — $ — New Residential’s ownership 30.0 % 30.0 % Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Interest income $ 116,271 $ 135,629 $ 238,140 $ 278,444 Interest expense (22,188 ) (18,106 ) (45,295 ) (40,301 ) Provision for finance receivable losses (17,719 ) (27,663 ) (37,355 ) (61,819 ) Other expenses, net (14,798 ) (19,279 ) (30,762 ) (39,731 ) Change in fair value of debt — 535 — (16,332 ) Net income $ 61,566 $ 71,116 $ 124,728 $ 120,261 New Residential’s equity in net income (through October 3, 2014) $ — $ 21,335 $ — $ 37,695 New Residential’s ownership 30.0 % 30.0 % 30.0 % 30.0 % |
Summary 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: Unpaid Principal Balance (A) Interest in Consumer Loan Companies Carrying Value (B) Weighted Average Coupon (C) Weighted Average Yield Weighted Average Expected Life (Years) (D) June 30, 2015 $ 2,329,736 30.0 % $ 1,880,054 18.2 % 17.8 % 3.5 December 31, 2014 $ 2,589,748 30.0 % $ 2,088,330 18.1 % 16.1 % 3.6 (A) Represents the May 31, 2015 and November 30, 2014 balances, respectively. (B) Represents the carrying value of the consumer loans held by the Consumer Loan Companies. (C) Substantially all of the cash flows received on the loans is required to be used to make payments on the notes described above. (D) Weighted Average Expected Life represents the weighted average expected timing of the receipt of expected cash flows for this investment. |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 December 31, 2014 Derivative assets Real Estate Securities (A) Derivative assets $ — $ 32,090 Non-Performing Loans (A) Derivative assets — 312 Interest Rate Caps Derivative assets 1,701 195 $ 1,701 $ 32,597 Derivative liabilities TBAs Accrued expenses and other liabilities $ 1,800 $ 4,985 Interest Rate Swaps Accrued expenses and other liabilities 14,324 9,235 $ 16,124 $ 14,220 (A) For December 31, 2014 , investments purchased from, and financed by, the selling counterparty that New Residential accounted for as linked transactions are reflected as derivatives. Upon the adoption of ASU No. 2014-11 on January 1, 2015, these transactions are accounted for as secured borrowings. The following table summarizes notional amounts related to derivatives: June 30, 2015 December 31, 2014 Non-Performing Loans (A) $ — $ 2,931 Real Estate Securities (B) — 186,694 TBAs, short position (C) 954,000 1,234,000 TBAs, long position (C) 200,000 — Interest Rate Caps (D) 2,560,000 210,000 Interest Rate Swaps, short positions (E) 2,144,000 1,107,000 (A) For December 31, 2014 , represents the UPB of the underlying loans of the non-performing loan pools within linked transactions. (B) For December 31, 2014 , represents the face amount of the real estate securities within linked transactions. (C) Represents the notional amount of Agency RMBS, classified as derivatives. (D) Caps LIBOR at 3.0% . (E) Receive LIBOR and pay a fixed rate. 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, 2015 2014 2015 2014 Other income (loss) Non-Performing Loans (A) $ — $ (985 ) $ — $ (314 ) Real Estate Securities (A) — — — 26 TBAs 1,754 (132 ) (1,800 ) 230 Interest Rate Swaps (1,737 ) (2,276 ) (5,089 ) (2,386 ) U.S.T. Short Positions — (408 ) — — Interest Rate Caps (1,246 ) — (1,370 ) — (1,229 ) (3,801 ) (8,259 ) (2,444 ) Gain (loss) on settlement of investments Real Estate Securities (A) — — — 43 TBAs 12,529 (3,824 ) (3,504 ) (4,002 ) Interest Rate Swaps 1,240 — (5,317 ) — U.S.T. Short Positions — 176 — 176 13,769 (3,648 ) (8,821 ) (3,783 ) Total gains (losses) $ 12,540 $ (7,449 ) $ (17,080 ) $ (6,227 ) (A) For December 31, 2014 , investments purchased from, and financed by, the selling counterparty that New Residential accounted for as linked transactions are reflected as derivatives. Upon the adoption of ASU No. 2014-11 on January 1, 2015, these transactions are accounted for as secured borrowings. |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | Activities related to the carrying value of New Residential’s debt obligations were as follows: Servicer Advances Real Estate Securities Real Estate Loans Consumer Loan Investment Other Total Balance at December 31, 2014 (A) $ 2,890,230 $ 2,246,651 $ 925,418 $ — $ — $ 6,062,299 Repurchase Agreements: Borrowings — 2,222,172 386,439 42,976 — 2,651,587 Modified retrospective adjustment for the adoption of ASU No. 2014-11 — 84,649 1,306 — — 85,955 Repayments — (2,721,483 ) (759,298 ) — — (3,480,781 ) Adoption of ASU No. 2015-03 — — (1,090 ) (144 ) — (1,234 ) Notes Payable: Retrospective adjustment for the adoption of ASU No. 2015-03 (4,446 ) — — — — (4,446 ) Borrowings 7,210,317 — 1,632 — 852,419 8,064,368 Repayments (2,412,975 ) — (2,178 ) — (658,810 ) (3,073,963 ) Adoption of ASU No. 2015-03 (16,059 ) — — — (48 ) (16,107 ) Balance at June 30, 2015 $ 7,667,067 $ 1,831,989 $ 552,229 $ 42,832 $ 193,561 $ 10,287,678 (A) Excludes debt related to linked transactions (Note 10). The following table presents certain information regarding New Residential’s debt obligations: June 30, 2015 December 31, 2014 Collateral Debt Obligations/Collateral Month Issued Outstanding Face Amount Carrying Value (A) Final Stated Maturity Weighted Average Funding Cost Weighted Average Life (Years) Outstanding Face Amortized Cost Basis Carrying Value Weighted Average Life (Years) Carrying Value (A) Repurchase Agreements (B) Agency RMBS (C) Various $ 1,172,422 $ 1,172,422 Jul-15 to Aug-15 0.40 % 0.1 $ 1,167,997 $ 1,206,770 $ 1,204,179 1.0 $ 1,707,602 Non-Agency RMBS (D) Various 659,567 659,567 Jul-15 to Sep-15 1.87 % 0.1 2,281,029 901,082 910,802 7.4 539,049 Residential Mortgage Loans (E) Various 447,940 447,012 Aug-15 to Aug-16 2.95 % 0.6 618,216 543,131 540,415 2.7 867,334 Real Estate Owned (F)(G) Various 82,946 82,784 Aug-15 to Aug-16 3.15 % 0.6 N/A N/A 89,168 N/A 35,105 Consumer Loan Investment (H) Apr-15 42,976 42,832 Oct-15 3.77 % 0.3 N/A N/A — 3.5 — Total Repurchase Agreements 2,405,851 2,404,617 1.44 % 0.2 3,149,090 Notes Payable Secured Corporate Note (I) May-15 195,590 193,561 Apr-17 5.43 % 1.8 101,243,511 230,282 268,951 4.8 — Servicer Advances (J) Various 7,687,572 7,667,067 Oct-15 to Jun-18 2.88 % 1.1 8,278,685 8,081,258 8,182,400 4.3 2,885,784 Residential Mortgage Loans (K) Oct-14 22,433 22,433 Oct-15 3.07 % 0.3 39,475 23,305 21,601 4.1 22,194 Real Estate Owned N/A — — — % — N/A N/A — N/A 785 Total Notes Payable 7,905,595 7,883,061 2.94 % 1.1 2,908,763 Total/ Weighted Average $ 10,311,446 $ 10,287,678 2.59 % 0.9 $ 6,057,853 (A) Net of deferred financing costs associated with the adoption of ASU No. 2015-03. (B) These repurchase agreements had approximately $2.5 million of associated accrued interest payable as of June 30, 2015 . (C) The counterparties of these repurchase agreements are Citibank ( $232.2 million ), Morgan Stanley ( $77.0 million ), Barclays ( $96.8 million ), Daiwa ( $377.2 million ) and Jefferies ( $389.2 million ) and were subject to customary margin call provisions. All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include related trade and other receivables. (D) The counterparties of these repurchase agreements are Barclays ( $5.4 million ), Credit Suisse ( $263.7 million ), Royal Bank of Canada ( $10.2 million ), Bank of America, N.A. ( $88.7 million ), Citibank ( $60.6 million ), Goldman Sachs ( $70.1 million ) and UBS ( $160.8 million ) and were subject to customary margin call provisions. All of the Non-Agency repurchase agreements have LIBOR-based floating interest rates. (E) The counterparties on these repurchase agreements are Barclays ( $263.4 million maturing in January 2016), Bank of America N.A. ( $61.4 million maturing in August 2016), Nomura ( $60.5 million maturing in May 2016), Citibank ( $2.7 million maturing in August 2015) and Credit Suisse ( $60.0 million maturing in November 2015). All of these repurchase agreements have LIBOR-based floating interest rates. (F) The counterparties of these repurchase agreements are Barclays ( $68.2 million ), Credit Suisse ( $0.9 million ), Bank of America, N.A. ( $3.5 million ), Citibank ( $0.6 million ) and Nomura ( $9.8 million ). All of these repurchase agreements have LIBOR-based floating interest rates. (G) Includes financing collateralized by receivables including claims from FHA on GNMA EBO loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee. (H) The repurchase agreement is payable to Bank of America, N.A. and bears interest equal to three-month LIBOR plus 3.50% and is collateralized by New Residential’s interest in consumer loans (Note 9). (I) The loan bears interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 5.25% . The outstanding face of the collateral represents the UPB of the residential mortgage loans underlying the Excess MSRs that secure this corporate loan. (J) $3.1 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 1.0% to 2.0% . (K) The note is payable to Nationstar and bears interest equal to one-month LIBOR plus 2.875% . |
Schedule of Contractual Maturities of Debt Obligations | New Residential’s debt obligations as of June 30, 2015 had contractual maturities as follows: Year Nonrecourse Recourse Total July 1 through December 31, 2015 $ 1,203,382 $ 1,961,575 $ 3,164,957 2016 4,386,775 396,462 4,783,237 2017 1,654,662 195,590 1,850,252 2018 513,000 — 513,000 $ 7,757,819 $ 2,553,627 $ 10,311,446 |
Schedule of Borrowing Capacity | The following table represents New Residential’s borrowing capacity as of June 30, 2015 : Debt Obligations/ Collateral Collateral Type Borrowing Capacity Balance Outstanding Available Financing Repurchase Agreements Residential Mortgage Loans Real Estate Loans $ 2,275,000 $ 465,992 $ 1,809,008 Notes Payable Servicer Advances (A) Servicer Advances 11,163,000 7,687,572 3,475,428 $ 13,438,000 $ 8,153,564 $ 5,284,436 (A) New Residential’s unused borrowing capacity is available if New Residential has additional eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements, including any applicable advance rate. New Residential pays a 0.4% fee on the unused borrowing capacity. |
FAIR VALUE OF FINANCIAL INSTR38
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Fair Values of Financial Assets Recorded at Fair Value 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, 2015 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 value (A) $ 335,643,658 $ 1,504,422 $ — $ — $ 1,504,422 $ 1,504,422 Excess mortgage servicing rights, equity method investees, at fair value (A) 79,731,703 216,112 — — 216,112 216,112 Servicer advances 8,278,685 8,182,400 — — 8,182,400 8,182,400 Real estate securities, available-for-sale 3,328,343 1,907,961 — 994,030 913,931 1,907,961 Residential mortgage loans, held-for-investment 62,362 42,741 — — 43,870 43,870 Residential mortgage loans, held-for-sale 599,610 523,018 — — 524,105 524,105 Non-hedge derivatives 2,560,000 1,701 — 1,701 — 1,701 Cash and cash equivalents 432,007 432,007 432,007 — — 432,007 Restricted cash 134,735 134,735 134,735 — — 134,735 $ 12,945,097 $ 566,742 $ 995,731 $ 11,384,840 $ 12,947,313 Liabilities: Repurchase agreements $ 2,405,851 $ 2,404,617 $ — $ 1,831,989 $ 573,862 $ 2,405,851 Notes payable 7,905,595 7,883,061 — — 7,908,842 7,908,842 Derivative liabilities 3,298,000 16,124 — 16,124 — 16,124 $ 10,303,802 $ — $ 1,848,113 $ 8,482,704 $ 10,330,817 (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. |
Schedule of Financial Assets Measured at Fair Value 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 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, 2014 $ 217,519 $ 200,214 $ 232,618 $ 98,258 $ 3,270,839 $ 723,000 $ 32,402 $ 4,774,850 Transfers (C) Transfers from Level 3 — — — — — — — — Transfers to Level 3 — — — — — — — — Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights — 98,258 — (98,258 ) — — — — Gains (losses) included in net income Included in other-than-temporary impairment (“OTTI”) on securities (D) — — — — — (1,720 ) — (1,720 ) Included in change in fair value of investments in excess mortgage servicing rights (D) 5,425 (6,830 ) — — — — — (1,405 ) Included in change in fair value of investments in excess mortgage servicing rights, equity method investees (D) — — 8,016 — — — — 8,016 Included in change in fair value of investments in servicer advances — — — — 16,893 — — 16,893 Included in gain on settlement of investments, net — — — — — 3,808 — 3,808 Included in other income (D) 1,577 — — — — — — 1,577 Gains (losses) included in other comprehensive income, net of tax (E) — — — — — (560 ) — (560 ) Interest income 13,176 36,221 — — 150,937 23,196 — 223,530 Purchases, sales, repayments and transfers Purchases 129,098 919,531 — — 11,404,992 490,438 — 12,944,059 Proceeds from sales — — — — — (389,719 ) — (389,719 ) Proceeds from repayments (25,268 ) (84,499 ) (24,522 ) — (6,661,261 ) (51,344 ) — (6,846,894 ) De-linked transactions (F) — — — — — 116,832 (32,402 ) 84,430 Balance at June 30, 2015 $ 341,527 $ 1,162,895 $ 216,112 $ — $ 8,182,400 $ 913,931 $ — $ 10,816,865 (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 each 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) See Note 10 for a discussion of transactions formerly accounted for as linked transactions. |
Summary of Certain Information Regarding the Inputs used in Valuing the Servicer Advances | The following table summarizes certain information regarding the weighted average inputs used in valuing the Excess MSRs owned directly and through equity method investees as of June 30, 2015 : Significant Inputs (A) Directly Held (Note 4) Prepayment Speed (B) Delinquency (C) Recapture Rate (D) Excess Mortgage Servicing Amount (bps) (E) Agency Original and Recaptured Pools 10.6 % 4.2 % 32.7 % 22 Recapture Agreement 7.7 % 4.6 % 20.0 % 24 10.3 % 4.2 % 31.4 % 22 Non-Agency (F) Nationstar and SLS Serviced: Original and Recaptured Pools 12.7 % N/A 10.3 % 21 Recapture Agreement 7.5 % N/A 20.0 % 20 Ocwen Serviced Pools 9.4 % N/A — % 14 10.0 % N/A 2.3 % 17 Total/Weighted Average--Directly Held 10.1 % 4.2 % 7.9 % 18 Held through Equity Method Investees (Note 5) Agency Original and Recaptured Pools 12.7 % 6.4 % 33.4 % 19 Recapture Agreement 7.7 % 4.5 % 20.0 % 23 Total/Weighted Average--Held through Investees 11.9 % 6.1 % 31.2 % 19 Total/Weighted Average--All Pools 10.4 % 4.6 % 12.4 % 18 (A) Weighted by amortized cost basis of the mortgage loan portfolio. (B) Projected annualized weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (C) Projected percentage of mortgage loans in the pool that will miss their mortgage payments. (D) Percentage of voluntarily prepaid loans that are expected to be refinanced by Nationstar. (E) Weighted average total mortgage servicing amount in excess of the basic fee. (F) For certain pools, the Excess MSR will be paid on the total UPB of the mortgage portfolio (including both performing and delinquent loans until REO). For these pools, no delinquency assumption is used. |
Summary of Certain Information Regarding the Inputs used in Valuing the 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 (A) Discount Rate June 30, 2015 2.4 % 10.6 % 14.2 % 19.5 bps 5.5 % (A) Mortgage servicing amount excludes the amounts New Residential pays its servicers as a monthly servicing fee. |
Schedule of Securities Valuation Methodology and Results | As of June 30, 2015 , 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 RMBS $ 958,141 $ 991,514 $ 994,030 $ — $ 994,030 2 Non-Agency RMBS (C) 2,370,202 902,005 901,377 12,554 913,931 3 Total $ 3,328,343 $ 1,893,519 $ 1,895,407 $ 12,554 $ 1,907,961 (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. New Residential’s investments in Agency RMBS are classified within Level 2 of the fair value hierarchy because the market for these securities is very active and market prices are readily observable. (B) Management was unable to obtain quotations from more than one source on these securities. The one source was the party that sold New Residential the security. (C) Includes New Residential’s investments in interest-only notes for which the fair value option for financial instruments was elected. |
Schedule of Inputs Used in Valuing Residential Mortgage Loans | The following table summarizes the inputs used in valuing these residential mortgage loans as of June 30, 2015 : June 30, 2015 Fair Value Discount Rate Weighted Average Life (Years) (A) Prepayment Rate CDR (B) Loss Severity (C) Non-performing Loans $ 233,881 5.6 % 3.1 2.1 % N/A 29.4 % (A) The weighted average life is based on the expected timing of the receipt of cash flows. (B) Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance. (C) Loss severity is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding loan balance. The following table summarizes the inputs used in valuing residential mortgage loans as of June 30, 2015 : Carrying Value Fair Value Valuation Provision/ (Reversal) In Current Year Discount Rate Weighted Average Life (Years) (A) Prepayment Rate CDR (B) Loss Severity (C) Reverse Mortgage Loans (D) $ 21,601 $ 21,601 $ 186 10.0 % 4.1 N/A N/A 6.9 % Performing Loans 21,140 22,269 118 7.9 % 5.7 5.6 % 2.9 % 56.9 % Non-performing Loans 289,137 290,224 N/A 5.0 % 3.0 — % N/A — % Total/Weighted Average $ 331,878 $ 334,094 $ 304 5.5 % 3.2 4.1 % (A) The weighted average life is based on the expected timing of the receipt of cash flows. (B) Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance. (C) Loss severity is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding loan balance. (D) Carrying value and fair value represent a 70% interest New Residential holds in the reverse mortgage loans. |
EQUITY AND EARNINGS PER SHARE (
EQUITY AND EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity and Earnings Per Share [Abstract] | |
Summary of Outstanding Options | As of June 30, 2015 , New Residential’s outstanding options were summarized as follows: Issued Prior to 2011 Issued in 2011-2015 Total Held by the Manager 343,440 10,557,860 10,901,300 Issued to the Manager and subsequently transferred to certain of the Manager’s employees 90,560 1,421,747 1,512,307 Issued to the independent directors 1,000 4,000 5,000 Total 435,000 11,983,607 12,418,607 The following table summarizes New Residential’s outstanding options as of June 30, 2015 . The last sales price on the New York Stock Exchange for New Residential’s common stock in the quarter ended June 30, 2015 was $15.24 per share. Recipient Date of Grant/ Exercise (A) Number of Options Options Exercisable as of June 30, 2015 Weighted Average Exercise Price (B) Intrinsic Value as of June 30, 2015 (millions) Directors Various 6,000 5,000 $ 17.54 $ — Manager (C) 2003 - 2007 1,226,555 434,000 31.36 — Manager (C) Mar-11 838,417 — 6.58 — Manager (C) Sep-11 1,269,917 — 4.98 — Manager (C) Apr-12 948,750 17,500 6.82 0.10 Manager (C) May-12 1,150,000 21,750 7.34 0.20 Manager (C) Jul-12 1,265,000 23,250 7.34 0.20 Manager (C) Jan-13 2,875,000 759,866 10.24 3.80 Manager (C) Feb-13 1,150,000 1,073,331 11.48 4.00 Manager (C) Apr-14 1,437,500 670,833 12.20 2.00 Manager (C) Apr-15 2,828,698 188,580 15.25 — Manager (C) Apr-15 2,921,302 194,753 15.25 — Manager (C) Jun-15 2,793,539 — 15.88 — Exercised (D) 2013-2015 (7,499,518 ) N/A 7.60 N/A Expired unexercised 2013-2015 (792,553 ) N/A N/A N/A Outstanding 12,418,607 3,388,863 (A) Options expire on the tenth anniversary from date of grant. (B) The strike prices are subject to adjustment in connection with return of capital dividends. (C) The Manager assigned certain of its options to Fortress’s employees as follows: Date of Grant Range of Strike Prices Total Unexercised Inception to Date 2005-2007 $29.92 to $33.80 90,560 2012 $6.82 to $7.34 62,501 2013 $10.24 to $11.48 1,100,496 2014 $12.20 258,750 Total 1,512,307 (D) Exercised by employees of Fortress, subsequent to their assignment, or by directors. The options exercised had an intrinsic value of $60.0 million . |
TRANSACTIONS WITH AFFILIATES 40
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Transactions With Affiliates And Affiliated Entities | |
Schedule of Affiliate Transactions | Due to affiliates is comprised of the following amounts: June 30, 2015 December 31, 2014 Management fees $ 3,114 $ 1,710 Incentive compensation 6,084 54,334 Expense reimbursements and other 472 1,380 $ 9,670 $ 57,424 Affiliate expenses and fees were comprised of: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Management fees $ 8,371 $ 4,915 $ 13,497 $ 9,401 Incentive compensation 2,391 18,863 6,084 22,201 Expense reimbursements (A) 125 125 250 250 Total $ 10,887 $ 23,903 $ 19,831 $ 31,852 (A) Included in General and Administrative Expenses in the Condensed Consolidated Statements of Income. |
RECLASSIFICATION FROM ACCUMUL41
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Summary of Amounts Reclassified out of 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, 2015 2014 2015 2014 Reclassification of net realized (gain) loss on securities into earnings Gain on settlement of investments, net $ 17,921 $ (57,284 ) $ (6,776 ) $ (61,776 ) Reclassification of net realized (gain) loss on securities into earnings Other-than-temporary impairment on securities 649 615 1,720 943 Total reclassifications $ 18,570 $ (56,669 ) $ (5,056 ) $ (60,833 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of the following: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Current: Federal $ (106 ) $ 2,236 $ 630 $ 2,453 State and Local 64 1,514 (1,092 ) 1,584 Total Current Income Tax Expense (Benefit) (42 ) 3,750 (462 ) 4,037 Deferred: Federal 13,281 13,236 11,958 13,236 State and Local 1,067 4,409 (617 ) 4,409 Total Deferred Income Tax Expense (Benefit) 14,348 17,645 11,341 17,645 Total Income Tax Expense (Benefit) $ 14,306 $ 21,395 $ 10,879 $ 21,682 |
ORGANIZATION - Narrative (Detai
ORGANIZATION - Narrative (Details) | Apr. 06, 2015USD ($)$ / shares$ / rightshares | Oct. 17, 2014shares | Oct. 31, 2014 | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Apr. 08, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($)$ / sharesshares | |
Related Party Transaction [Line Items] | ||||||||||||
Common stock, shares outstanding (in shares) | shares | 141,400,000 | 230,438,639 | 230,438,639 | 230,438,639 | 141,434,905 | |||||||
Reverse stock split | 0.5 | 0.5 | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Amount retained | $ 134,735,000 | $ 134,735,000 | $ 134,735,000 | $ 29,418,000 | ||||||||
HLSS Seller Financing | 138,400,000 | |||||||||||
Non-cash contingent consideration | 50,000,000 | $ 0 | ||||||||||
Compensation expense | 300,000 | 329,000 | ||||||||||
Debt issuance costs | [1] | 0 | 0 | 0 | 0 | |||||||
Interest income | 96,306,000 | $ 56,144,000 | 146,700,000 | 88,637,000 | ||||||||
Income before income taxes | 93,583,000 | $ 203,603,000 | 131,954,000 | $ 260,755,000 | ||||||||
Servicer advances, at fair value | 8,182,400,000 | 8,182,400,000 | 8,182,400,000 | $ 3,270,839,000 | ||||||||
HLSS [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Purchase price | $ 1,000,000,000 | |||||||||||
Shares issued (in shares) | shares | 28,286,980 | |||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||
Exercisable rights, per right amount in cash (in dollars per share) | $ / right | 0.704059 | |||||||||||
Fair value of stock issued | [2] | $ 434,092,000 | ||||||||||
Cash consideration | 621,982,000 | |||||||||||
HLSS Seller Financing | [3] | 385,174,000 | ||||||||||
Non-cash contingent consideration | [4] | 50,000,000 | ||||||||||
Goodwill | 0 | |||||||||||
Debt issuance costs | 27,000,000 | |||||||||||
Acquisition related costs incurred | 19,100,000 | |||||||||||
HLSS [Member] | Ocwen [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Unpaid Principal Balance | $ 156,400,000,000 | |||||||||||
Servicer basic fee, percent | 12.00% | |||||||||||
Servicing fee basis points | 2.75% | |||||||||||
Servicer advances, at fair value | $ 5,600,000,000 | |||||||||||
Contractual term | 8 years | |||||||||||
Contract extension notification period, prior to end of term | 6 months | |||||||||||
Outstanding loan balance fee, percent | 0.50% | |||||||||||
Professional and contract services fee, additional markup percent | 15.00% | |||||||||||
HLSS [Member] | Retention Bonus Payments [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Compensation expense | 1,600,000 | |||||||||||
HLSS [Member] | Employee Severance Payments [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Compensation expense | 2,800,000 | |||||||||||
HLSS [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Interest income | 92,400,000 | |||||||||||
Income before income taxes | 39,800,000 | |||||||||||
HLSS [Member] | HLSS [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||
Amount retained | $ 46,000,000 | $ 46,000,000 | 46,000,000 | $ 50,000,000 | ||||||||
Exercisable rights, per right amount in cash (in dollars per share) | $ / right | 0.704059 | |||||||||||
Percentage of HLSS's issued and outstanding shares | 10.00% | |||||||||||
Cash Flow Reclassification, Investing To Operating [Member] | Restatement Adjustment [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Gross cash inflows | 249,700,000 | |||||||||||
Gross cash outflows | 247,100,000 | |||||||||||
Net cash inflow | $ 2,600,000 | |||||||||||
Fortress [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Common stock, shares outstanding (in shares) | shares | 2,400,000 | 2,400,000 | 2,400,000 | |||||||||
Stock options outstanding (in shares) | shares | 10,900,000 | 10,900,000 | 10,900,000 | |||||||||
[1] | Deferred financing costs were reclassified as an offset to the related debt obligation in June 2015 pursuant to ASU No. 2015-03 (Note 1). | |||||||||||
[2] | Share Issuance ConsiderationThe share issuance consideration consists of 28.3 million newly issued shares of New Residential common stock with a par value $0.01 per share. The fair value of the common stock at the date of the acquisition was $15.3460 per share, which was New Residential’s volume weighted average share price on April 6, 2015. | |||||||||||
[3] | HLSS Seller FinancingNew Residential agreed to deliver $1.0 billion of cash purchase price, including a promise to pay an amount of $385.2 million immediately after closing from the proceeds of financing that was committed in anticipation of the HLSS Acquisition and is collateralized by certain of the HLSS assets acquired. | |||||||||||
[4] | New Merger PaymentThe New Merger Agreement, and the $50.0 million consideration related thereto, is included as a part of the business combination in conjunction with the Share and Asset Purchase Agreement. The range of outcomes for this contingent consideration is from $0 to $50.0 million, dependent on whether the New Merger is approved by HLSS shareholders and other factors. |
ORGANIZATION - Summary of Consi
ORGANIZATION - Summary of Consideration Paid (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 06, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Business Combination, Separately Recognized Transactions [Line Items] | ||||
New Residential's 4/6/2015 share price (in dollars per share) | $ 15.24 | |||
HLSS Seller Financing | $ 138,400 | |||
New Merger Payment (71,016,771 @ $0.704059) | $ 50,000 | $ 0 | ||
HLSS [Member] | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Share Issuance Consideration (in shares) | 28,286,980 | |||
New Residential's 4/6/2015 share price (in dollars per share) | $ 15.3460 | |||
Dollar Value of Share Issuance | [1] | $ 434,092 | ||
Cash Consideration | 621,982 | |||
HLSS Seller Financing | [2] | 385,174 | ||
New Merger Payment (71,016,771 @ $0.704059) | [3] | 50,000 | ||
Total Consideration | $ 1,491,248 | |||
[1] | Share Issuance ConsiderationThe share issuance consideration consists of 28.3 million newly issued shares of New Residential common stock with a par value $0.01 per share. The fair value of the common stock at the date of the acquisition was $15.3460 per share, which was New Residential’s volume weighted average share price on April 6, 2015. | |||
[2] | HLSS Seller FinancingNew Residential agreed to deliver $1.0 billion of cash purchase price, including a promise to pay an amount of $385.2 million immediately after closing from the proceeds of financing that was committed in anticipation of the HLSS Acquisition and is collateralized by certain of the HLSS assets acquired. | |||
[3] | New Merger PaymentThe New Merger Agreement, and the $50.0 million consideration related thereto, is included as a part of the business combination in conjunction with the Share and Asset Purchase Agreement. The range of outcomes for this contingent consideration is from $0 to $50.0 million, dependent on whether the New Merger is approved by HLSS shareholders and other factors. |
ORGANIZATION - Summary of Con45
ORGANIZATION - Summary of Consideration Paid (Parenthetical) (Details) - Apr. 06, 2015 - HLSS [Member] | right$ / right |
Business Acquisition [Line Items] | |
Number of rights exercisable | 71,016,771 |
Exercisable rights, per right amount in cash (in dollars per share) | $ / right | 0.704059 |
ORGANIZATION - Summary of Con46
ORGANIZATION - Summary of Consideration Paid (Footnote) (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 06, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Share price (in dollars per share) | $ 15.24 | ||||
Note payable | $ 138,400 | ||||
Non-cash contingent consideration | $ 50,000 | $ 0 | |||
HLSS [Member] | |||||
Business Acquisition [Line Items] | |||||
Shares issued (in shares) | 28,286,980 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Share price (in dollars per share) | $ 15.3460 | ||||
Purchase price | $ 1,000,000 | ||||
Note payable | [1] | 385,174 | |||
Non-cash contingent consideration | [2] | 50,000 | |||
HLSS [Member] | Upper Range [Member] | |||||
Business Acquisition [Line Items] | |||||
Non-cash contingent consideration | 50,000 | ||||
HLSS [Member] | Lower Range [Member] | |||||
Business Acquisition [Line Items] | |||||
Non-cash contingent consideration | $ 0 | ||||
[1] | HLSS Seller FinancingNew Residential agreed to deliver $1.0 billion of cash purchase price, including a promise to pay an amount of $385.2 million immediately after closing from the proceeds of financing that was committed in anticipation of the HLSS Acquisition and is collateralized by certain of the HLSS assets acquired. | ||||
[2] | New Merger PaymentThe New Merger Agreement, and the $50.0 million consideration related thereto, is included as a part of the business combination in conjunction with the Share and Asset Purchase Agreement. The range of outcomes for this contingent consideration is from $0 to $50.0 million, dependent on whether the New Merger is approved by HLSS shareholders and other factors. |
ORGANIZATION - Summary of Preli
ORGANIZATION - Summary of Preliminary Purchase Price Allocation (Details) - Apr. 06, 2015 - HLSS [Member] - USD ($) $ in Thousands | Total | |
Business Acquisition [Line Items] | ||
Total Consideration | $ 1,491,248 | |
Assets | ||
Cash and cash equivalents | 51,500 | |
Servicer advances, at fair value | 5,098,200 | |
Excess mortgage servicing rights, at fair value | 919,500 | |
Residential mortgage loans, held-for-sale | [1] | 418,800 |
Deferred tax asset | [2] | 186,800 |
Restricted cash | 46,000 | |
Other assets | [3] | 405,300 |
Total Assets Acquired | 7,126,100 | |
Liabilities | ||
Notes payable | 5,583,000 | |
Deferred tax liabilities | (700) | |
Accrued expenses and other liabilities(D)(E) | [4],[5] | 52,600 |
Total Liabilities Assumed | 5,634,900 | |
Net Assets | $ 1,491,200 | |
[1] | Represents $424.3 million UPB of GNMA early buy-out (“EBO”) residential mortgage loans not subject to ASC No. 310-30 as the contractual cash flows are guaranteed by the Federal Housing Administration (“FHA”). | |
[2] | Due to the difference between carryover historical tax basis and acquisition date fair value of one of HLSS’s first tier subsidiaries. | |
[3] | Includes restricted cash and receivables not subject to ASC No. 310-30 which New Residential has deemed fully collectible. | |
[4] | Contingencies for HLSS class action law suits have not been recognized at the acquisition date as the criteria in ASC No. 450 have not been met (Note 14). | |
[5] | Includes liabilities arising from contingencies regarding ongoing HLSS matters (Note 14). |
ORGANIZATION - Summary of Pre48
ORGANIZATION - Summary of Preliminary Purchase Price Allocation (Footnote) (Details) - Residential Mortgage [Member] - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 25, 2015 | Jun. 16, 2015 | Apr. 06, 2015 | Feb. 27, 2015 |
Financing Receivable, Recorded Investment [Line Items] | |||||
Unpaid Principal Balance | $ 369 | ||||
Non-Performing Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Unpaid Principal Balance | $ 34.5 | $ 135.2 | |||
Non-Performing Loans [Member] | GNMA EBO [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Unpaid Principal Balance | $ 424.3 | $ 99.8 | $ 424.3 |
ORGANIZATION - Summary of Unaud
ORGANIZATION - Summary of Unaudited Pro Forma Combined Interest Income and Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Interest income | $ 184,083 | $ 187,020 | $ 349,138 | $ 364,009 |
Income Before Income Taxes | $ 100,912 | $ 252,716 | $ 172,129 | $ 356,647 |
OTHER INCOME, ASSETS AND LIAB50
OTHER INCOME, ASSETS AND LIABILITIES - Schedule of Other Income (Details) - USD ($) $ in Thousands | Oct. 03, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Other income (loss), net | |||||
Unrealized gain (loss) on derivative instruments | $ (1,229) | $ (3,801) | $ (8,259) | $ (2,444) | |
Gain (loss) on transfer of loans to REO | 347 | 6,694 | (197) | 6,694 | |
Gain on consumer loans investment | $ 80,100 | 8,510 | 0 | 18,957 | 0 |
Other income (loss) | 808 | 0 | (28) | 0 | |
Total Other income (loss), net | $ 8,436 | $ 2,893 | $ 10,473 | $ 4,250 |
OTHER INCOME, ASSETS AND LIAB51
OTHER INCOME, ASSETS AND LIABILITIES - Schedule of Gain on Settlement of Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Other Income Assets And Liabilities | |||||
Gain (loss) on sale of real estate securities, net | $ (17,921) | $ 57,284 | $ 6,776 | $ 61,776 | |
Gain (loss) on sale of residential mortgage loans, net | 11,795 | 0 | 32,625 | 0 | |
Gain (loss) on settlement of derivatives | 13,769 | (3,648) | (8,821) | (3,783) | |
Gain (loss) on liquidated residential mortgage loans, held-for-investment | (277) | 0 | 123 | 0 | |
Gain (loss) on sale of REO | [1] | (2,201) | (1,097) | (7,837) | (643) |
Other gains (losses) | (3,964) | 0 | (6,898) | (454) | |
Gain on settlement of investments | $ 1,201 | $ 52,539 | $ 15,968 | $ 56,896 | |
[1] | Includes approximately $3.2 million loss on REO sold as a part of the residential mortgage loan sales described in Note 8 during the six months ended June 30, 2015. |
OTHER INCOME, ASSETS AND LIAB52
OTHER INCOME, ASSETS AND LIABILITIES - Schedule of Gain on Settlement of Investments (Footnote) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Investment [Line Items] | |||||
Loss on REO sold as part of residential mortgage loan sales | [1] | $ 2,201 | $ 1,097 | $ 7,837 | $ 643 |
Residential Mortgage Loan Sales [Member] | |||||
Investment [Line Items] | |||||
Loss on REO sold as part of residential mortgage loan sales | $ 3,200 | ||||
[1] | Includes approximately $3.2 million loss on REO sold as a part of the residential mortgage loan sales described in Note 8 during the six months ended June 30, 2015. |
OTHER INCOME, ASSETS AND LIAB53
OTHER INCOME, ASSETS AND LIABILITIES - Schedule of Other Assets and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Other Assets | |||
Margin receivable, net | $ 54,530 | $ 59,021 | |
Other receivables | [1] | 23,351 | 1,797 |
Deferred financing costs, net | [2] | 0 | 0 |
Principal paydown receivable | 1,510 | 3,595 | |
Receivable from government agency | [3] | 75,524 | 9,108 |
Call rights | 680 | 3,728 | |
Interest receivable | 31,509 | 8,658 | |
Servicer advances, at fair value | 8,182,400 | 3,270,839 | |
Other assets | [4] | 22,119 | 9,516 |
Other Assets | 278,610 | 95,423 | |
Other Liabilities | |||
Interest payable | 15,607 | 7,857 | |
Accounts payable | 35,788 | 28,059 | |
Derivative liabilities | 16,124 | 14,220 | |
Current taxes payable | 7,449 | 2,349 | |
Contingent consideration | 50,000 | 0 | |
Other liabilities | 9,351 | 20 | |
Accrued Expenses and Other Liabilities | 134,319 | 52,505 | |
GNMA EBO [Member] | |||
Other Assets | |||
Servicer advances, at fair value | [5] | $ 69,387 | $ 0 |
[1] | Primarily includes advance collections that were in-transit to pay down related debt obligations. | ||
[2] | Deferred financing costs were reclassified as an offset to the related debt obligation in June 2015 pursuant to ASU No. 2015-03 (Note 1). | ||
[3] | Represents claims receivable from FHA on EBO and reverse mortgage loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee. | ||
[4] | Primarily includes prepaid expenses. | ||
[5] | Represents GNMA EBO servicer advances funded by HLSS and accounted for as a financing transaction as the counterparty retained title and all other rights and rewards associated with such advances. |
OTHER INCOME, ASSETS AND LIAB54
OTHER INCOME, ASSETS AND LIABILITIES - Schedule of Accretion and Other Amortization (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Accretion of discount and other amortization: | ||
Accretion of servicer advance interest income | $ 150,937 | $ 102,823 |
Accretion of excess mortgage servicing rights income | 49,397 | 24,789 |
Accretion of net discount on securities and loans | 19,703 | 12,477 |
Amortization of deferred financing costs | (10,900) | (5,750) |
Accretion and other amortization | $ 209,137 | $ 134,339 |
SEGMENT REPORTING - Summary of
SEGMENT REPORTING - Summary of Segment Financial Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||
Interest income | $ 178,177 | $ 92,656 | $ 262,550 | $ 164,146 | ||
Interest expense | 81,871 | 36,512 | 115,850 | 75,509 | ||
Net interest income (expense) | 96,306 | 56,144 | 146,700 | 88,637 | ||
Impairment | 5,421 | 908 | 7,469 | 1,400 | ||
Other income | 37,650 | 177,889 | 49,945 | 212,939 | ||
Operating expenses | 34,952 | 29,522 | 57,222 | 39,421 | ||
Income (Loss) Before Income Taxes | 93,583 | 203,603 | 131,954 | 260,755 | ||
Income tax expense (benefit) | 14,306 | 21,395 | 10,879 | 21,682 | ||
Net Income (Loss) | 79,277 | 182,208 | 121,075 | 239,073 | ||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 4,158 | 58,705 | 9,981 | 66,798 | ||
Net income (loss) attributable to common stockholders | 75,119 | 123,503 | 111,094 | 172,275 | ||
Investments | 12,401,981 | 12,401,981 | ||||
Cash and cash equivalents | 432,007 | 432,007 | ||||
Restricted cash | 134,735 | 134,735 | $ 29,418 | |||
Derivative assets | 1,701 | 1,701 | 32,597 | |||
Other assets | 1,424,374 | 1,424,374 | ||||
Total assets | 14,394,798 | 14,394,798 | 8,089,244 | |||
Debt | [1] | 10,287,678 | 10,287,678 | 6,057,853 | ||
Other liabilities | 1,012,038 | 1,012,038 | ||||
Total liabilities | 11,299,716 | 11,299,716 | 6,239,319 | |||
Total equity | 3,095,082 | 3,095,082 | 1,849,925 | |||
Noncontrolling interests in equity of consolidated subsidiaries | 231,652 | 231,652 | 253,836 | |||
Total New Residential stockholders’ equity | 2,863,430 | 2,863,430 | $ 1,596,089 | |||
Investments in equity method investees | 216,112 | 216,112 | ||||
Operating Segments [Member] | Excess MSRs [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 34,359 | 10,973 | 49,397 | 24,789 | ||
Interest expense | 0 | 0 | 0 | 1,291 | ||
Net interest income (expense) | 34,359 | 10,973 | 49,397 | 23,498 | ||
Impairment | 0 | 0 | 0 | 0 | ||
Other income | 4,298 | 18,245 | 8,188 | 31,221 | ||
Operating expenses | 260 | 320 | 349 | 385 | ||
Income (Loss) Before Income Taxes | 38,397 | 28,898 | 57,236 | 54,334 | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Net Income (Loss) | 38,397 | 28,898 | 57,236 | 54,334 | ||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to common stockholders | 38,397 | 28,898 | 57,236 | 54,334 | ||
Investments | 1,720,534 | 1,720,534 | ||||
Cash and cash equivalents | 3,900 | 3,900 | ||||
Restricted cash | 90 | 90 | ||||
Derivative assets | 0 | 0 | ||||
Other assets | 1,470 | 1,470 | ||||
Total assets | 1,725,994 | 1,725,994 | ||||
Debt | 0 | 0 | ||||
Other liabilities | 218 | 218 | ||||
Total liabilities | 218 | 218 | ||||
Total equity | 1,725,776 | 1,725,776 | ||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | ||||
Total New Residential stockholders’ equity | 1,725,776 | 1,725,776 | ||||
Investments in equity method investees | 216,112 | 216,112 | ||||
Operating Segments [Member] | Servicer Advances [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 108,588 | 57,107 | 150,937 | 102,823 | ||
Interest expense | 63,450 | 29,772 | 87,086 | 61,728 | ||
Net interest income (expense) | 45,138 | 27,335 | 63,851 | 41,095 | ||
Impairment | 0 | 0 | 0 | 0 | ||
Other income | 24,115 | 82,709 | 13,389 | 82,709 | ||
Operating expenses | 1,688 | 769 | 2,263 | 1,019 | ||
Income (Loss) Before Income Taxes | 67,565 | 109,275 | 74,977 | 122,785 | ||
Income tax expense (benefit) | 15,657 | 21,395 | 12,417 | 21,682 | ||
Net Income (Loss) | 51,908 | 87,880 | 62,560 | 101,103 | ||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 9,279 | 58,705 | 15,102 | 66,798 | ||
Net income (loss) attributable to common stockholders | 42,629 | 29,175 | 47,458 | 34,305 | ||
Investments | 8,182,400 | 8,182,400 | ||||
Cash and cash equivalents | 95,899 | 95,899 | ||||
Restricted cash | 131,368 | 131,368 | ||||
Derivative assets | 1,701 | 1,701 | ||||
Other assets | 174,115 | 174,115 | ||||
Total assets | 8,585,483 | 8,585,483 | ||||
Debt | 7,667,067 | 7,667,067 | ||||
Other liabilities | 48,859 | 48,859 | ||||
Total liabilities | 7,715,926 | 7,715,926 | ||||
Total equity | 869,557 | 869,557 | ||||
Noncontrolling interests in equity of consolidated subsidiaries | 231,652 | 231,652 | ||||
Total New Residential stockholders’ equity | 637,905 | 637,905 | ||||
Investments in equity method investees | 0 | 0 | ||||
Operating Segments [Member] | Real Estate Securities [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 23,454 | 19,522 | 37,715 | 30,760 | ||
Interest expense | 3,540 | 3,512 | 7,021 | 7,581 | ||
Net interest income (expense) | 19,914 | 16,010 | 30,694 | 23,179 | ||
Impairment | 650 | 615 | 1,720 | 943 | ||
Other income | (4,211) | 53,413 | (9,302) | 58,455 | ||
Operating expenses | 105 | 571 | 3 | 631 | ||
Income (Loss) Before Income Taxes | 14,948 | 68,237 | 19,669 | 80,060 | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Net Income (Loss) | 14,948 | 68,237 | 19,669 | 80,060 | ||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to common stockholders | 14,948 | 68,237 | 19,669 | 80,060 | ||
Investments | 1,907,961 | 1,907,961 | ||||
Cash and cash equivalents | 16,516 | 16,516 | ||||
Restricted cash | 0 | 0 | ||||
Derivative assets | 0 | 0 | ||||
Other assets | 1,048,521 | 1,048,521 | ||||
Total assets | 2,972,998 | 2,972,998 | ||||
Debt | 1,831,989 | 1,831,989 | ||||
Other liabilities | 771,769 | 771,769 | ||||
Total liabilities | 2,603,758 | 2,603,758 | ||||
Total equity | 369,240 | 369,240 | ||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | ||||
Total New Residential stockholders’ equity | 369,240 | 369,240 | ||||
Investments in equity method investees | 0 | 0 | ||||
Operating Segments [Member] | Real Estate Loans [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 10,795 | 5,054 | 23,520 | 5,774 | ||
Interest expense | 5,185 | 1,191 | 11,278 | 1,389 | ||
Net interest income (expense) | 5,610 | 3,863 | 12,242 | 4,385 | ||
Impairment | 4,771 | 293 | 5,749 | 457 | ||
Other income | 7,817 | 2,187 | 21,592 | 2,858 | ||
Operating expenses | 5,610 | 887 | 11,712 | 977 | ||
Income (Loss) Before Income Taxes | 3,046 | 4,870 | 16,373 | 5,809 | ||
Income tax expense (benefit) | (1,351) | 0 | (1,538) | 0 | ||
Net Income (Loss) | 4,397 | 4,870 | 17,911 | 5,809 | ||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to common stockholders | 4,397 | 4,870 | 17,911 | 5,809 | ||
Investments | 591,086 | 591,086 | ||||
Cash and cash equivalents | 6,689 | 6,689 | ||||
Restricted cash | 3,184 | 3,184 | ||||
Derivative assets | 0 | 0 | ||||
Other assets | 109,468 | 109,468 | ||||
Total assets | 710,427 | 710,427 | ||||
Debt | 552,229 | 552,229 | ||||
Other liabilities | 23,804 | 23,804 | ||||
Total liabilities | 576,033 | 576,033 | ||||
Total equity | 134,394 | 134,394 | ||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | ||||
Total New Residential stockholders’ equity | 134,394 | 134,394 | ||||
Investments in equity method investees | 0 | 0 | ||||
Operating Segments [Member] | Consumer Loans [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 0 | 0 | 0 | 0 | ||
Interest expense | 524 | 1,538 | 524 | 3,021 | ||
Net interest income (expense) | (524) | (1,538) | (524) | (3,021) | ||
Impairment | 0 | 0 | 0 | 0 | ||
Other income | 8,510 | 21,335 | 18,957 | 37,695 | ||
Operating expenses | 54 | 90 | 111 | 113 | ||
Income (Loss) Before Income Taxes | 7,932 | 19,707 | 18,322 | 34,561 | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Net Income (Loss) | 7,932 | 19,707 | 18,322 | 34,561 | ||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to common stockholders | 7,932 | 19,707 | 18,322 | 34,561 | ||
Investments | 0 | 0 | ||||
Cash and cash equivalents | 2,665 | 2,665 | ||||
Restricted cash | 0 | 0 | ||||
Derivative assets | 0 | 0 | ||||
Other assets | 1,102 | 1,102 | ||||
Total assets | 3,767 | 3,767 | ||||
Debt | 42,832 | 42,832 | ||||
Other liabilities | 595 | 595 | ||||
Total liabilities | 43,427 | 43,427 | ||||
Total equity | (39,660) | (39,660) | ||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | ||||
Total New Residential stockholders’ equity | (39,660) | (39,660) | ||||
Investments in equity method investees | 0 | 0 | ||||
Operating Segments [Member] | Corporate [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 981 | 0 | 981 | 0 | ||
Interest expense | 9,172 | 499 | 9,941 | 499 | ||
Net interest income (expense) | (8,191) | (499) | (8,960) | (499) | ||
Impairment | 0 | 0 | 0 | 0 | ||
Other income | (2,879) | 0 | (2,879) | 1 | ||
Operating expenses | 27,235 | 26,885 | 42,784 | 36,296 | ||
Income (Loss) Before Income Taxes | (38,305) | (27,384) | (54,623) | (36,794) | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Net Income (Loss) | (38,305) | (27,384) | (54,623) | (36,794) | ||
Noncontrolling interests in income (loss) of consolidated subsidiaries | (5,121) | 0 | (5,121) | 0 | ||
Net income (loss) attributable to common stockholders | (33,184) | $ (27,384) | (49,502) | $ (36,794) | ||
Investments | 0 | 0 | ||||
Cash and cash equivalents | 306,338 | 306,338 | ||||
Restricted cash | 93 | 93 | ||||
Derivative assets | 0 | 0 | ||||
Other assets | 89,698 | 89,698 | ||||
Total assets | 396,129 | 396,129 | ||||
Debt | 193,561 | 193,561 | ||||
Other liabilities | 166,793 | 166,793 | ||||
Total liabilities | 360,354 | 360,354 | ||||
Total equity | 35,775 | 35,775 | ||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | ||||
Total New Residential stockholders’ equity | 35,775 | 35,775 | ||||
Investments in equity method investees | $ 0 | $ 0 | ||||
[1] | Net of deferred financing costs associated with the adoption of ASU No. 2015-03. |
INVESTMENTS IN EXCESS MORTGAG56
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Activity Related to the Carrying Value of Investments in Excess MSRs (Details) - Excess MSRs [Member] $ in Thousands | 6 Months Ended | |
Jun. 30, 2015USD ($) | ||
Carrying Value of Investments in Excess MSRs | ||
Beginning balance | [1] | $ 417,733 |
Transfers from indirect ownership | 98,258 | |
Purchases | 1,048,629 | |
Interest income | 49,397 | |
Other income | 1,577 | |
Proceeds from repayments | (109,767) | |
Change in fair value | (1,405) | |
Ending balance | [1] | 1,504,422 |
Nationstar [Member] | ||
Carrying Value of Investments in Excess MSRs | ||
Beginning balance | 409,076 | |
Transfers from indirect ownership | 98,258 | |
Purchases | 129,098 | |
Interest income | 29,297 | |
Other income | 1,577 | |
Proceeds from repayments | (59,821) | |
Change in fair value | 2,993 | |
Ending balance | 610,478 | |
SLS [Member] | ||
Carrying Value of Investments in Excess MSRs | ||
Beginning balance | [2] | 8,657 |
Transfers from indirect ownership | 0 | |
Purchases | 0 | |
Interest income | 192 | |
Other income | 0 | |
Proceeds from repayments | (660) | |
Change in fair value | (1,459) | |
Ending balance | [2] | 6,730 |
Ocwen [Member] | ||
Carrying Value of Investments in Excess MSRs | ||
Beginning balance | [3] | 0 |
Transfers from indirect ownership | 0 | |
Purchases | 919,531 | |
Interest income | 19,908 | |
Other income | 0 | |
Proceeds from repayments | (49,286) | |
Change in fair value | (2,939) | |
Ending balance | [3] | $ 887,214 |
[1] | Carrying Value represents the fair value of the pools or Recapture Agreements, as applicable. | |
[2] | Specialized Loan Servicing LLC (“SLS”). See Note 6 for a description of the SLS Transaction. | |
[3] | Ocwen services the loans underlying the Excess MSRs and Servicer Advances acquired from HLSS. See Note 1. |
INVESTMENTS IN EXCESS MORTGAG57
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Summary of Direct Investments in Excess MSRs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Investment [Line Items] | ||||||
Weighted Average Life (Years) | 11 months 2 days | |||||
Change in fair value of investments in excess mortgage servicing rights | $ 356 | $ 5,502 | $ (1,405) | $ 12,104 | ||
Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
Change in fair value of investments in excess mortgage servicing rights | (3,441) | 2,801 | (5,418) | 9,888 | ||
Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
Change in fair value of investments in excess mortgage servicing rights | 3,797 | $ 2,701 | 4,013 | $ 2,216 | ||
Excess MSRs [Member] | ||||||
Investment [Line Items] | ||||||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | 335,643,658 | $ 335,643,658 | ||||
Weighted Average Life (Years) | 5 years 7 months 6 days | |||||
Amortized Cost Basis | [1] | 1,396,308 | $ 1,396,308 | |||
Carrying Value | [2] | 1,504,422 | 1,504,422 | $ 417,733 | ||
Excess MSRs [Member] | Agency [Member] | ||||||
Investment [Line Items] | ||||||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | 80,896,500 | $ 80,896,500 | ||||
Weighted Average Life (Years) | 6 years 4 months 24 days | |||||
Amortized Cost Basis | [1] | 267,926 | $ 267,926 | |||
Carrying Value | [2] | 341,527 | 341,527 | 217,519 | ||
Excess MSRs [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | 80,896,500 | $ 80,896,500 | ||||
Weighted Average Life (Years) | 5 years 9 months 18 days | |||||
Amortized Cost Basis | [1] | 240,981 | $ 240,981 | |||
Carrying Value | [2] | 291,288 | 291,288 | 188,733 | ||
Excess MSRs [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | 0 | $ 0 | ||||
Weighted Average Life (Years) | 11 years 6 months | |||||
Amortized Cost Basis | [1] | 26,945 | $ 26,945 | |||
Carrying Value | [2] | 50,239 | 50,239 | 28,786 | ||
Excess MSRs [Member] | Non-Agency [Member] | ||||||
Investment [Line Items] | ||||||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | 254,747,158 | $ 254,747,158 | ||||
Weighted Average Life (Years) | 5 years 4 months 24 days | |||||
Amortized Cost Basis | [1] | 1,128,382 | $ 1,128,382 | |||
Carrying Value | [2] | 1,162,895 | 1,162,895 | 200,214 | ||
Excess MSRs [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | [3] | 103,812,302 | $ 103,812,302 | |||
Weighted Average Life (Years) | 4 years 10 months 24 days | |||||
Amortized Cost Basis | [1],[3] | 222,394 | $ 222,394 | |||
Carrying Value | [2],[3] | 258,729 | 258,729 | 189,812 | ||
Excess MSRs [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | [3] | 0 | $ 0 | |||
Weighted Average Life (Years) | 11 years 10 months 24 days | |||||
Amortized Cost Basis | [1],[3] | 15,835 | $ 15,835 | |||
Carrying Value | [2],[3] | 16,952 | 16,952 | 10,402 | ||
Excess MSRs [Member] | Non-Agency [Member] | Ocwen Serviced Pools [Member] | ||||||
Investment [Line Items] | ||||||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | [3] | $ 150,934,856 | $ 150,934,856 | |||
Interest in Excess MSR | [3] | 100.00% | 100.00% | |||
Weighted Average Life (Years) | 5 years 4 months 24 days | |||||
Amortized Cost Basis | [1],[3] | $ 890,153 | $ 890,153 | |||
Carrying Value | [2],[3] | $ 887,214 | $ 887,214 | 0 | ||
Excess MSRs [Member] | Lower Range [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 32.50% | 32.50% | ||||
Excess MSRs [Member] | Lower Range [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 32.50% | 32.50% | ||||
Excess MSRs [Member] | Lower Range [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [3] | 33.30% | 33.30% | |||
Excess MSRs [Member] | Lower Range [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [3] | 33.30% | 33.30% | |||
Excess MSRs [Member] | Upper Range [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 66.70% | 66.70% | ||||
Excess MSRs [Member] | Upper Range [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 66.70% | 66.70% | ||||
Excess MSRs [Member] | Upper Range [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [3] | 80.00% | 80.00% | |||
Excess MSRs [Member] | Upper Range [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [3] | 80.00% | 80.00% | |||
Fortress [Member] | Excess MSRs [Member] | Non-Agency [Member] | Ocwen Serviced Pools [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [3] | 0.00% | 0.00% | |||
Fortress [Member] | Excess MSRs [Member] | Lower Range [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 0.00% | 0.00% | ||||
Fortress [Member] | Excess MSRs [Member] | Lower Range [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 0.00% | 0.00% | ||||
Fortress [Member] | Excess MSRs [Member] | Lower Range [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [3] | 0.00% | 0.00% | |||
Fortress [Member] | Excess MSRs [Member] | Lower Range [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [3] | 0.00% | 0.00% | |||
Fortress [Member] | Excess MSRs [Member] | Upper Range [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 40.00% | 40.00% | ||||
Fortress [Member] | Excess MSRs [Member] | Upper Range [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 40.00% | 40.00% | ||||
Fortress [Member] | Excess MSRs [Member] | Upper Range [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [3] | 50.00% | 50.00% | |||
Fortress [Member] | Excess MSRs [Member] | Upper Range [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [3] | 50.00% | 50.00% | |||
Nationstar [Member] | Excess MSRs [Member] | ||||||
Investment [Line Items] | ||||||
Carrying Value | $ 610,478 | $ 610,478 | $ 409,076 | |||
Nationstar [Member] | Excess MSRs [Member] | Non-Agency [Member] | Ocwen Serviced Pools [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [3] | 0.00% | 0.00% | |||
Nationstar [Member] | Excess MSRs [Member] | Lower Range [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 20.00% | 20.00% | ||||
Nationstar [Member] | Excess MSRs [Member] | Lower Range [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 20.00% | 20.00% | ||||
Nationstar [Member] | Excess MSRs [Member] | Lower Range [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [3] | 0.00% | 0.00% | |||
Nationstar [Member] | Excess MSRs [Member] | Lower Range [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [3] | 0.00% | 0.00% | |||
Nationstar [Member] | Excess MSRs [Member] | Upper Range [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 35.00% | 35.00% | ||||
Nationstar [Member] | Excess MSRs [Member] | Upper Range [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 35.00% | 35.00% | ||||
Nationstar [Member] | Excess MSRs [Member] | Upper Range [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [3] | 33.30% | 33.30% | |||
Nationstar [Member] | Excess MSRs [Member] | Upper Range [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [3] | 33.30% | 33.30% | |||
[1] | 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] | Carrying Value represents the fair value of the pools or Recapture Agreements, as applicable. | |||||
[3] | Excess MSR investments in which New Residential also invested in related servicer advances, including the basic fee component of the related MSR as of June 30, 2015 (Note 6). |
INVESTMENTS IN EXCESS MORTGAG58
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Narrative (Details) - USD ($) $ in Thousands | Jun. 11, 2015 | May. 11, 2015 | May. 05, 2015 | Apr. 16, 2015 | Jan. 16, 2015 | Jun. 30, 2015 | Jun. 30, 2015 |
Excess MSRs Investees [Member] | |||||||
Investment [Line Items] | |||||||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | $ 79,731,703 | $ 79,731,703 | |||||
Excess MSRs Investees [Member] | MSRs [Member] | |||||||
Investment [Line Items] | |||||||
Weighted average discount rate, used to value investments in excess MSRs | 9.80% | 9.80% | |||||
Excess MSRs [Member] | |||||||
Investment [Line Items] | |||||||
Purchase of servicer advance investments | $ 72,400 | $ 26,900 | $ 3,500 | $ 2,600 | $ 23,800 | ||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | $ 18,500,000 | $ 8,900,000 | $ 1,600,000 | $ 8,400,000 | |||
Excess MSRs [Member] | Freddie Mac [Member] | |||||||
Investment [Line Items] | |||||||
Percentage of Excess MSRs acquired | 33.30% | 33.30% | |||||
Excess MSRs [Member] | Freddie Mac [Member] | Nationstar [Member] | |||||||
Investment [Line Items] | |||||||
Percentage of Excess MSRs acquired | 33.30% | 33.30% | |||||
Excess MSRs [Member] | Fannie Mae [Member] | |||||||
Investment [Line Items] | |||||||
Percentage of Excess MSRs acquired | 33.30% | ||||||
Excess MSRs [Member] | Fannie Mae [Member] | Nationstar [Member] | |||||||
Investment [Line Items] | |||||||
Percentage of Excess MSRs acquired | 33.30% | ||||||
Excess MSRs [Member] | Ginnie Mae [Member] | |||||||
Investment [Line Items] | |||||||
Percentage of Excess MSRs acquired | 40.00% | ||||||
Excess MSRs [Member] | Ginnie Mae [Member] | Nationstar [Member] | |||||||
Investment [Line Items] | |||||||
Percentage of Excess MSRs acquired | 20.00% |
INVESTMENTS IN EXCESS MORTGAG59
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans of the Direct Investments in Excess MSRs (Details) - Mortgage Loans [Member] - MSRs [Member] | Jun. 30, 2015 | Dec. 31, 2014 |
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 100.00% | 100.00% |
California [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 26.70% | 31.50% |
Florida [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 9.20% | 7.70% |
New York [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 7.00% | 4.30% |
Texas [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 4.50% | 4.20% |
New Jersey [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 4.00% | 3.20% |
Maryland [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 3.80% | 4.00% |
Illinois [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 3.40% | 3.20% |
Virginia [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 3.20% | 3.30% |
Washington [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 2.80% | 3.60% |
Massachusetts [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 2.60% | 2.10% |
Other U.S. [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 32.80% | 32.90% |
INVESTMENTS IN EXCESS MORTGAG60
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Summary of the Financial Results of Excess MSR Joint Ventures, Accounted for as Equity Method Investees (Details) - Excess MSRs Investees [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||
Excess MSR assets | $ 421,673 | $ 421,673 | $ 653,293 | ||
Other assets | 10,551 | 10,551 | 8,472 | ||
Other liabilities | 0 | 0 | (13) | ||
Equity | 432,224 | 432,224 | 661,752 | ||
New Residential’s investment | $ 216,112 | $ 216,112 | $ 330,876 | ||
New Residential’s ownership | 50.00% | 50.00% | 50.00% | ||
Interest income | $ 9,216 | $ 17,292 | $ 20,917 | $ 35,785 | |
Other income (loss) | (3,005) | 8,194 | (4,840) | 2,489 | |
Expenses | (22) | (1) | (46) | (41) | |
Net income | $ 6,189 | $ 25,485 | $ 16,031 | $ 38,233 |
INVESTMENTS IN EXCESS MORTGAG61
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Summary of the Financial Results of Excess MSR Joint Ventures, Accounted for as Equity Method Investees - Roll Forward (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||
Distributions of earnings from equity method investees | $ 0 | $ (2,152) |
Recurring Basis [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Beginning balance | 330,876 | |
Contributions to equity method investees | 0 | |
Transfers to direct ownership | (98,258) | |
Distributions of earnings from equity method investees | (19,920) | |
Distributions of capital from equity method investees | (4,602) | |
Change in fair value of investments in equity method investees | 8,016 | |
Ending balance | $ 216,112 |
INVESTMENTS IN EXCESS MORTGAG62
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Summary of Excess MSR Investments made through Equity Method Investees (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | ||
Schedule of Equity Method Investments [Line Items] | |||
Weighted Average Life (Years) | 11 months 2 days | ||
Excess MSRs Investees [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unpaid Principal Balance | $ 79,731,703 | ||
New Residential Interest in Investees | 50.00% | 50.00% | |
Amortized Cost Basis | [1] | $ 335,899 | |
Carrying Value | [2] | $ 421,673 | |
Excess MSRs Investees [Member] | Agency [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Weighted Average Life (Years) | [3] | 6 years 7 months 2 days | |
Excess MSRs Investees [Member] | Agency [Member] | Original and Recaptured Pools [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unpaid Principal Balance | $ 79,731,703 | ||
Investee Interest in Excess MSR | [4] | 66.70% | |
New Residential Interest in Investees | 50.00% | ||
Amortized Cost Basis | [1] | $ 279,923 | |
Carrying Value | [2] | $ 344,856 | |
Weighted Average Life (Years) | [3] | 5 years 6 months 18 days | |
Excess MSRs Investees [Member] | Agency [Member] | Recapture Agreements [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unpaid Principal Balance | $ 0 | ||
Investee Interest in Excess MSR | [4] | 66.70% | |
New Residential Interest in Investees | 50.00% | ||
Amortized Cost Basis | [1] | $ 55,976 | |
Carrying Value | [2] | $ 76,817 | |
Weighted Average Life (Years) | [3] | 11 years 9 months 14 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. | ||
[3] | The weighted average life represents the weighted average expected timing of the receipt of cash flows of each investment. | ||
[4] | The remaining interests are held by Nationstar. |
INVESTMENTS IN EXCESS MORTGAG63
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Summary of Excess MSR Investments made through Equity Method Investees (Footnote) (Details) - Excess MSRs Investees [Member] | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
New Residential Interest in Investees | 50.00% | 50.00% |
MSRs [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
New Residential Interest in Investees | 50.00% |
INVESTMENTS IN EXCESS MORTGAG64
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Narrative (Details) - Jun. 30, 2015 | Total | Total |
Excess MSRs Investees [Member] | MSRs [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Weighted average discount rate, used to value investments in excess MSRs | 9.80% | 9.80% |
INVESTMENTS IN EXCESS MORTGAG65
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans of the Excess MSR Investments made through Equity Method Investees (Details) - Mortgage Loans [Member] - Excess MSRs Investees [Member] | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 100.00% | 100.00% |
California [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 13.00% | 23.50% |
Florida [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 7.40% | 8.90% |
Texas [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 6.10% | 4.80% |
New York [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 5.60% | 5.60% |
Georgia [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 5.60% | 4.10% |
New Jersey [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 4.20% | 3.90% |
Illinois [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 4.00% | 3.50% |
Virginia [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 3.20% | 3.20% |
Maryland [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 3.20% | 3.30% |
Pennsylvania [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 3.00% | 2.30% |
Other U.S. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 44.70% | 36.90% |
INVESTMENTS IN SERVICER ADVAN66
INVESTMENTS IN SERVICER ADVANCES - Narrative (Details) $ in Thousands | Dec. 31, 2014USD ($)securitized_trust | Dec. 31, 2014USD ($)securitized_trust | Jun. 30, 2015USD ($) | Jun. 25, 2015USD ($) | Jun. 11, 2015USD ($) | May. 11, 2015USD ($) | May. 05, 2015USD ($) | Apr. 30, 2015USD ($) | Jan. 31, 2015USD ($) | Jan. 16, 2015USD ($) |
Investment [Line Items] | ||||||||||
Servicer advances, net of recoveries | $ 155,200 | |||||||||
Note payable | 138,400 | |||||||||
Call rights | $ 3,728 | $ 3,728 | 680 | |||||||
Residential Mortgage [Member] | ||||||||||
Investment [Line Items] | ||||||||||
Unpaid Principal Balance | $ 369,000 | |||||||||
Excess MSRs [Member] | ||||||||||
Investment [Line Items] | ||||||||||
Unpaid Principal Balance | $ 18,500,000 | $ 8,900,000 | $ 1,600,000 | $ 8,400,000 | ||||||
Advance Purchaser LLC [Member] | ||||||||||
Investment [Line Items] | ||||||||||
Capital distributed to third-party co-investors | 221,700 | |||||||||
Capital distributed to New Residential | $ 177,900 | |||||||||
Nationstar [Member] | ||||||||||
Investment [Line Items] | ||||||||||
Servicer basic fee, percent | 9.30% | |||||||||
Performance fee percent | 100.00% | |||||||||
SLS [Member] | ||||||||||
Investment [Line Items] | ||||||||||
Servicing fee basis points | 0.1075% | |||||||||
SLS [Member] | Residential Mortgage [Member] | ||||||||||
Investment [Line Items] | ||||||||||
Unpaid Principal Balance | 3,000,000 | 3,000,000 | ||||||||
Total advance commitments | 219,200 | |||||||||
Debt | $ 195,500 | $ 195,500 | ||||||||
SLS [Member] | Excess MSRs [Member] | ||||||||||
Investment [Line Items] | ||||||||||
Percentage of Excess MSRs acquired | 50.00% | 50.00% | ||||||||
Fortress [Member] | ||||||||||
Investment [Line Items] | ||||||||||
Excess MSR purchases | $ 93,800 | $ 229,700 | ||||||||
Service advances and fees | 83,800 | 83,800 | $ 133,800 | |||||||
Financed service advances | 74,300 | 74,300 | 121,200 | |||||||
Call rights | $ 1,600 | $ 1,600 | ||||||||
Number of securitized trusts | securitized_trust | 57 | 57 | ||||||||
Fortress [Member] | Upper Range [Member] | ||||||||||
Investment [Line Items] | ||||||||||
Number of securitized trusts | securitized_trust | 99 | 99 | ||||||||
Fortress [Member] | Excess MSRs [Member] | ||||||||||
Investment [Line Items] | ||||||||||
Percentage of Excess MSRs acquired | 50.00% | 50.00% | ||||||||
Percentage of additional Excess MSRs acquired | 50.00% | 50.00% | ||||||||
Excess MSR purchases | $ 8,400 | |||||||||
Fortress [Member] | Servicer Advances and Fees [Member] | ||||||||||
Investment [Line Items] | ||||||||||
Excess MSR purchases | $ 135,900 | |||||||||
Call rights | $ 2,100 | |||||||||
Ocwen [Member] | Residential Mortgage [Member] | ||||||||||
Investment [Line Items] | ||||||||||
Unpaid Principal Balance | $ 107,100,000 | |||||||||
Servicer Advance Joint Venture [Member] | ||||||||||
Investment [Line Items] | ||||||||||
Servicer advances, net of recoveries | $ 2,600,000 | |||||||||
Note payable | $ 2,400,000 | |||||||||
New Residential’s ownership | 44.50% | |||||||||
Funded capital commitments | $ 312,700 | |||||||||
Servicer Advance Joint Venture [Member] | Noncontrolling Third-party Investors [Member] | ||||||||||
Investment [Line Items] | ||||||||||
Funded capital commitments | $ 389,600 |
INVESTMENTS IN SERVICER ADVAN67
INVESTMENTS IN SERVICER ADVANCES - Summary of Investments in Servicer Advances (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Investments in and Advances to Affiliates [Line Items] | ||||||
Carrying Value | $ 8,182,400 | $ 8,182,400 | $ 3,270,839 | |||
Servicer Advance Joint Venture [Member] | ||||||
Investments in and Advances to Affiliates [Line Items] | ||||||
Amortized Cost Basis | 8,081,258 | 8,081,258 | 3,186,622 | |||
Carrying Value | [1] | $ 8,182,400 | $ 8,182,400 | $ 3,270,839 | ||
Weighted Average Discount Rate | 5.50% | 5.50% | 5.40% | |||
Weighted Average Yield | 5.60% | 5.60% | 5.40% | |||
Weighted Average Life (Years) | [2] | 4 years 4 months 1 day | 4 years | |||
Changes in Fair Value Recorded in Other Income | $ 24,562 | $ 82,877 | $ 16,893 | $ 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 ADVAN68
INVESTMENTS IN SERVICER ADVANCES - Summary of Investments in Servicer Advances - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Investments in and Advances to Affiliates [Line Items] | |||
Carrying Value | $ 8,182,400 | $ 3,270,839 | |
Servicer Advance Joint Venture [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Carrying Value | [1] | 8,182,400 | 3,270,839 |
Servicer Advance Joint Venture [Member] | Servicer Advances [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | [2] | 238,526,743 | 96,547,773 |
Carrying Value | [2] | $ 8,278,685 | $ 3,102,492 |
Servicer Advances to UPB of Underlying Residential Mortgage Loans | [2] | 3.50% | 3.20% |
Face Amount of Notes Payable | [2] | $ 7,687,572 | $ 2,890,230 |
Gross Loan-to-Value | [2] | 92.90% | 91.40% |
Net Loan-to-Value | [2],[3] | 91.60% | 90.40% |
Gross Cost of Funds | [2],[4] | 3.00% | 3.00% |
Net Cost of Funds | [2],[4] | 2.20% | 2.30% |
[1] | Carrying value represents the fair value of the investments in servicer advances, including the basic fee component of the related MSRs. | ||
[2] | The following types of advances comprise the investments in servicer advances: June 30, 2015December 31, 2014Principal and interest advances$2,467,831$729,713Escrow advances (taxes and insurance advances)4,135,9001,600,713Foreclosure advances1,674,954772,066Total$8,278,685 $3,102,492 | ||
[3] | Ratio of face amount of borrowings to par amount of servicer advance collateral, net of an interest reserve maintained by the Buyer. | ||
[4] | Annualized measure of the cost associated with borrowings. Gross Cost of Funds primarily includes interest expense and facility fees. Net Cost of Funds excludes facility fees. |
INVESTMENTS IN SERVICER ADVAN69
INVESTMENTS IN SERVICER ADVANCES - Summary of Investments in Servicer Advances - Components of Funded Advances (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Investment [Line Items] | |||
Total | $ 8,182,400 | $ 3,270,839 | |
Servicer Advance Joint Venture [Member] | |||
Investment [Line Items] | |||
Total | [1] | 8,182,400 | 3,270,839 |
Servicer Advance Joint Venture [Member] | Servicer Advances [Member] | |||
Investment [Line Items] | |||
Principal and interest advances | 2,467,831 | 729,713 | |
Escrow advances (taxes and insurance advances) | 4,135,900 | 1,600,713 | |
Foreclosure advances | 1,674,954 | 772,066 | |
Total | [2] | $ 8,278,685 | $ 3,102,492 |
[1] | Carrying value represents the fair value of the investments in servicer advances, including the basic fee component of the related MSRs. | ||
[2] | The following types of advances comprise the investments in servicer advances: June 30, 2015December 31, 2014Principal and interest advances$2,467,831$729,713Escrow advances (taxes and insurance advances)4,135,9001,600,713Foreclosure advances1,674,954772,066Total$8,278,685 $3,102,492 |
INVESTMENTS IN SERVICER ADVAN70
INVESTMENTS IN SERVICER ADVANCES - Schedule of Interest Income Related to Investments in Servicer Advances (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Investment [Line Items] | ||||
Interest income from investments in servicer advances | $ 178,177 | $ 92,656 | $ 262,550 | $ 164,146 |
Servicer Advance Investments [Member] | ||||
Investment [Line Items] | ||||
Interest income, gross of amounts attributable to servicer compensation | 226,961 | 86,546 | 290,318 | 153,684 |
Amounts attributable to base servicer compensation | (31,957) | (43,026) | (38,558) | (49,306) |
Amounts attributable to incentive servicer compensation | (86,416) | 13,587 | (100,823) | (1,555) |
Interest income from investments in servicer advances | $ 108,588 | $ 57,107 | $ 150,937 | $ 102,823 |
INVESTMENTS IN SERVICER ADVAN71
INVESTMENTS IN SERVICER ADVANCES - Schedule of Interest Income Related to Investments in Servicer Advances - Others' Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Servicer Advance Joint Venture [Member] | ||||||
Investment [Line Items] | ||||||
New Residential’s investment | $ 417,481 | $ 417,481 | $ 457,545 | |||
Others’ ownership interest | 44.50% | 44.50% | ||||
Net income in joint venture | $ 16,725 | $ 105,882 | $ 27,222 | $ 119,393 | ||
Others [Member] | ||||||
Investment [Line Items] | ||||||
New Residential’s investment | $ 231,652 | $ 231,652 | $ 253,836 | |||
Others’ ownership interest | 55.50% | 55.50% | 55.50% | |||
Net income in joint venture | [1] | $ 9,279 | $ 58,705 | $ 15,102 | $ 66,798 | |
Others' ownership interest as a percent of total | [2] | 55.50% | 55.40% | 55.50% | 56.00% | |
[1] | Excludes HLSS shareholders’ interests in the net income (loss) of HLSS of $5.1 million, $0.0 million, $5.1 million, and $0.0 million during these periods, respectively. | |||||
[2] | As a result, New Residential owned 44.5% and 44.6% of the Buyer, on average during the three months ended June 30, 2015 and 2014, respectively, and 44.5% and 44.1% of the Buyer, on average during the six months ended June 30, 2015 and 2014, respectively. |
INVESTMENTS IN SERVICER ADVAN72
INVESTMENTS IN SERVICER ADVANCES - Schedule of Interest Income Related to Investments in Servicer Advances - Others' Interests (Footnote) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Investment [Line Items] | ||||
Noncontrolling Interests in Income of Consolidated Subsidiaries | $ 4,158 | $ 58,705 | $ 9,981 | $ 66,798 |
Others [Member] | ||||
Investment [Line Items] | ||||
Average ownership percentage | 44.50% | 44.60% | 44.50% | 44.10% |
HLSS [Member] | ||||
Investment [Line Items] | ||||
Noncontrolling Interests in Income of Consolidated Subsidiaries | $ 5,100 | $ 0 | $ 5,100 | $ 0 |
INVESTMENTS IN REAL ESTATE SE73
INVESTMENTS IN REAL ESTATE SECURITIES - Narrative (Details) | Jun. 25, 2015USD ($)loan | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |||
Purchase of Non-Agency RMBS | $ 468,197,000 | $ 1,057,464,000 | |
Purchase of Agency RMBS | 1,026,586,000 | $ 354,838,000 | |
Other-than-temporary impairment (OTTI) losses | 1,700,000 | ||
Real estate securities acquired during the period with credit quality deterioration, face amount | 191,700,000 | ||
Real estate securities acquired during the period with credit quality deterioration, expected cash flows | 221,700,000 | ||
Real estate securities acquired during the period with credit quality deterioration, fair value | 137,600,000 | ||
Non-Agency RMBS [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Face amount of securities purchased | 901,400,000 | ||
Purchase of Non-Agency RMBS | 490,400,000 | ||
Face amount of securities sold | 441,100,000 | ||
Amortized cost basis of securities sold | 385,900,000 | ||
Proceeds from sale of real estate securities | 389,700,000 | ||
Gain (loss) on sale of debt investments | 3,800,000 | ||
Number of trusts | loan | 18 | ||
Outstanding Face Amount | $ 13,700,000 | ||
Amortized cost basis of loans | $ 9,100,000 | ||
Agency RMBS [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Face amount of securities purchased | 1,700,000,000 | ||
Purchase of Agency RMBS | 1,800,000,000 | ||
Face amount of securities sold | 2,300,000,000 | ||
Amortized cost basis of securities sold | 2,400,000,000 | ||
Proceeds from sale of real estate securities | 2,400,000,000 | ||
Gain (loss) on sale of debt investments | $ 2,900,000 |
INVESTMENTS IN REAL ESTATE SE74
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities (Details) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2015USD ($)security | Dec. 31, 2014USD ($) | |||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | $ 3,328,343 | |||
Amortized Cost Basis | 1,893,519 | |||
Carrying Value | $ 1,907,961 | $ 2,463,163 | ||
Weighted Average Life (Years) | 11 months 2 days | |||
Agency RMBS [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | [1],[2] | $ 958,141 | ||
Amortized Cost Basis | [1],[2] | 991,514 | ||
Gross Unrealized Gains | [1],[2] | 5,199 | ||
Gross Unrealized Losses | [1],[2] | (2,683) | ||
Carrying Value | [1],[2] | $ 994,030 | [3] | 1,740,163 |
Number of Securities | security | [1],[2] | 28 | ||
Weighted Average Rating | [1],[2],[4] | AAA | ||
Weighted Average Coupon | [1],[2] | 3.27% | ||
Weighted Average Yield | [1],[2] | 3.00% | ||
Weighted Average Life (Years) | [1],[2],[5] | 7 years 5 months 19 days | ||
Non-Agency RMBS [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | $ 2,370,202 | [6],[7],[8] | 1,896,150 | |
Amortized Cost Basis | [6],[7],[8] | 902,005 | ||
Gross Unrealized Gains | [7],[8] | 18,668 | ||
Gross Unrealized Losses | [7],[8] | (6,742) | ||
Carrying Value | [7],[8] | $ 913,931 | [3] | 723,000 |
Number of Securities | security | [7],[8] | 167 | ||
Weighted Average Rating | [4],[7],[8] | B- | ||
Weighted Average Coupon | [7],[8] | 2.57% | ||
Weighted Average Yield | [7],[8] | 4.79% | ||
Weighted Average Life (Years) | [5],[7],[8] | 7 years 7 months 6 days | ||
Weighted Average Principal Subordination | [7],[8],[9] | 12.70% | ||
Investments in Real Estate Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | $ 3,328,343 | |||
Amortized Cost Basis | 1,893,519 | |||
Gross Unrealized Gains | 23,867 | |||
Gross Unrealized Losses | (9,425) | |||
Carrying Value | $ 1,907,961 | [3] | $ 2,463,163 | |
Number of Securities | security | 195 | |||
Weighted Average Rating | [4] | A- | ||
Weighted Average Coupon | 2.88% | |||
Weighted Average Yield | 3.85% | |||
Weighted Average Life (Years) | [5] | 7 years 6 months 12 days | ||
Other ABS [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | $ 1,222,088 | |||
Amortized Cost Basis | 67,980 | |||
Gross Unrealized Gains | 1,472 | |||
Gross Unrealized Losses | (1,840) | |||
Carrying Value | $ 67,612 | |||
Number of Securities | security | 9 | |||
Weighted Average Rating | AA+ | |||
Weighted Average Coupon | 1.87% | |||
Weighted Average Yield | 7.64% | |||
Weighted Average Life (Years) | 3 years 6 months 22 days | |||
[1] | 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”). | |||
[2] | The total outstanding face amount was $753.8 million for fixed rate securities and $204.3 million for floating rate securities as of June 30, 2015. | |||
[3] | Fair value, which is equal to carrying value for all securities. See Note 12 regarding the estimation of fair value. | |||
[4] | 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 46 bonds which either have never been rated or for which rating information is no longer provided. For each security rated by multiple rating agencies, the lowest rating is used. New Residential used an implied AAA rating for the Agency 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. | |||
[5] | The weighted average life is based on the timing of expected principal reduction on the assets. | |||
[6] | Includes New Residential’s investments in interest-only notes for which the fair value option for financial instruments was elected. | |||
[7] | Includes Other ABS consisting primarily of interest-only securities which New Residential elected to carry at fair value and record changes to valuation through the income statement and representing 7.4% of the carrying value of the Non-Agency RMBS portfolio. Gross Unrealized Weighted AverageAsset Type Outstanding Face Amount Amortized Cost Basis Gains Losses Carrying Value Number of Securities Rating Coupon Yield Life (Years) Principal SubordinationOther ABS $1,222,088 $67,980 $1,472 $(1,840) $67,612 9 AA+ 1.87% 7.64% 3.6 N/A | |||
[8] | The total outstanding face amount was $1.4 billion (including $1.4 billion of residual and interest-only notional amount) for fixed rate securities and $954.6 million (including $99.8 million of residual and interest-only notional amount) for floating rate securities as of June 30, 2015. | |||
[9] | Percentage of the outstanding face amount of securities that is subordinate to New Residential’s investments. |
INVESTMENTS IN REAL ESTATE SE75
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities (Footnote) (Details) $ in Thousands | Jun. 30, 2015USD ($)bond | Dec. 31, 2014USD ($) | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Number of bonds which New Residential was unable to obtain rating information | bond | 46 | |||
Outstanding face amount | $ 3,328,343 | |||
Agency RMBS [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding face amount | [1],[2] | 958,141 | ||
Non-Agency RMBS [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding face amount | 2,370,202 | [3],[4],[5] | $ 1,896,150 | |
Other ABS [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding face amount | $ 1,222,088 | |||
Percent of other RMBS representing carrying value of Non-Agency RMBS portfolio | 7.40% | |||
Fixed Rate Residential Mortgage [Member] | Agency RMBS [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding face amount | $ 753,800 | |||
Fixed Rate Residential Mortgage [Member] | Non-Agency RMBS [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding face amount | 1,400,000 | |||
Residual and interest - only notional amount | 1,400,000 | |||
Floating Rate Residential Mortgage [Member] | Agency RMBS [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding face amount | 204,300 | |||
Floating Rate Residential Mortgage [Member] | Non-Agency RMBS [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding face amount | 954,600 | |||
Residual and interest - only notional amount | $ 99,800 | |||
[1] | 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”). | |||
[2] | The total outstanding face amount was $753.8 million for fixed rate securities and $204.3 million for floating rate securities as of June 30, 2015. | |||
[3] | Includes New Residential’s investments in interest-only notes for which the fair value option for financial instruments was elected. | |||
[4] | Includes Other ABS consisting primarily of interest-only securities which New Residential elected to carry at fair value and record changes to valuation through the income statement and representing 7.4% of the carrying value of the Non-Agency RMBS portfolio. Gross Unrealized Weighted AverageAsset Type Outstanding Face Amount Amortized Cost Basis Gains Losses Carrying Value Number of Securities Rating Coupon Yield Life (Years) Principal SubordinationOther ABS $1,222,088 $67,980 $1,472 $(1,840) $67,612 9 AA+ 1.87% 7.64% 3.6 N/A | |||
[5] | The total outstanding face amount was $1.4 billion (including $1.4 billion of residual and interest-only notional amount) for fixed rate securities and $954.6 million (including $99.8 million of residual and interest-only notional amount) for floating rate securities as of June 30, 2015. |
INVESTMENTS IN REAL ESTATE SE76
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015USD ($)security | Dec. 31, 2014USD ($) | ||
Schedule of Available-for-sale Securities [Line Items] | |||
Outstanding Face Amount | $ 3,328,343 | ||
Other Than Temporary Impairment - Amortized Cost Basis | (2,498) | $ (1,127) | |
After Impairment | 1,893,519 | ||
Carrying Value - Total | $ 1,907,961 | ||
Weighted Average Life (Years) | 11 months 2 days | ||
Securities in an Unrealized Loss Position Less than Twelve Months [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Outstanding Face Amount | $ 1,171,377 | ||
Before Impairment - Amortized Cost Basis | 311,767 | ||
Other Than Temporary Impairment - Amortized Cost Basis | [1] | (1,120) | |
After Impairment | 310,647 | ||
Gross Unrealized Losses - Less than Twelve Months | (6,221) | ||
Carrying Value - Less than Twelve Months | $ 304,426 | ||
Number of Securities - Less than Twelve Months | security | 43 | ||
Weighted Average Rating | [2] | BB | |
Weighted Average Coupon | 1.43% | ||
Weighted Average Yield | 4.41% | ||
Weighted Average Life (Years) | 9 years 3 months 22 days | ||
Securities in an Unrealized Loss Position Twelve Months or Greater [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Outstanding Face Amount | $ 176,335 | ||
Before Impairment - Amortized Cost Basis | 176,534 | ||
Other Than Temporary Impairment - Amortized Cost Basis | [1] | 0 | |
After Impairment | 176,534 | ||
Gross Unrealized Losses - Twelve or More Months | (3,204) | ||
Carrying Value - Twelve or More Months | $ 173,330 | ||
Number of Securities - Twelve or More Months | security | 23 | ||
Weighted Average Rating | [2] | AAA | |
Weighted Average Coupon | 2.37% | ||
Weighted Average Yield | 2.60% | ||
Weighted Average Life (Years) | 5 years 4 months 8 days | ||
Securities in a Loss Position [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Outstanding Face Amount | $ 1,347,712 | ||
Before Impairment - Amortized Cost Basis | 488,301 | ||
Other Than Temporary Impairment - Amortized Cost Basis | [1] | (1,120) | |
After Impairment | 487,181 | ||
Gross Unrealized Losses - Total | (9,425) | ||
Carrying Value - Total | $ 477,756 | ||
Number of Securities - Total | security | 66 | ||
Weighted Average Rating | [2] | BBB+ | |
Weighted Average Coupon | 1.77% | ||
Weighted Average Yield | 3.75% | ||
Weighted Average Life (Years) | 7 years 10 months 16 days | ||
[1] | This amount represents other-than-temporary impairment recorded on securities that are in an unrealized loss position as of June 30, 2015. | ||
[2] | The weighted average rating of securities in an unrealized loss position for less than twelve months excludes the rating of 10 bonds which either have never been rated or for which rating information is no longer provided. |
INVESTMENTS IN REAL ESTATE SE77
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position (Footnote) (Details) | Jun. 30, 2015bond |
Schedule of Available-for-sale Securities [Line Items] | |
Number of bonds which New Residential was unable to obtain rating information | 46 |
Securities in an Unrealized Loss Position Less than Twelve Months [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Number of bonds which New Residential was unable to obtain rating information | 10 |
INVESTMENTS IN REAL ESTATE SE78
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position - Associated Intent to Sell (Details) $ in Thousands | Jun. 30, 2015USD ($) | |
Securities Intended to Sell [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | [1] | $ 0 |
Amortized Cost Basis After Impairment | [1] | 0 |
Unrealized Credit Losses | [1],[2] | 0 |
Unrealized Non-Credit Losses | [1],[3] | 0 |
Securities More Likely Than Not Required to be Sold [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | [4] | 0 |
Amortized Cost Basis After Impairment | [4] | 0 |
Unrealized Credit Losses | [2],[4] | 0 |
Securities No Intent to Sell and Not More Like Than Not to be Required to Sell - Credit Impaired [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 89,596 | |
Amortized Cost Basis After Impairment | 90,961 | |
Unrealized Credit Losses | [2] | (1,120) |
Unrealized Non-Credit Losses | [3] | (1,365) |
Securities No Intent to Sell and Not More Like Than Not to be Required to Sell - Non-Credit Impaired [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 388,160 | |
Amortized Cost Basis After Impairment | 396,220 | |
Unrealized Credit Losses | [2] | 0 |
Unrealized Non-Credit Losses | [3] | (8,060) |
Securities in an Unrealized Loss Position [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 477,756 | |
Amortized Cost Basis After Impairment | 487,181 | |
Unrealized Credit Losses | [2] | (1,120) |
Unrealized Non-Credit Losses | [3] | $ (9,425) |
[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, 2015. | |
[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. | |
[4] | 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. |
INVESTMENTS IN REAL ESTATE SE79
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position - Associated Intent to Sell (Footnote) (Details) | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized losses reflected in other comprehensive income | $ 0 |
INVESTMENTS IN REAL ESTATE SE80
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Activity Related to Credit Losses on Debt Securities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
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 | $ 1,127 |
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 | 6 |
Additions for credit losses on securities for which an OTTI was not previously recognized | 1,714 |
Reductions for securities for which the amount previously recognized in other comprehensive 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 | 0 |
Reduction for credit losses on securities for which no OTTI was recognized in other comprehensive income at the current measurement date | 0 |
Reduction for securities sold during the period | (349) |
Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income | $ 2,498 |
INVESTMENTS IN REAL ESTATE SE81
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of the Geographic Distribution of the Collateral Securing Non-Agency RMBS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | $ 3,328,343 | |||
Non-Agency RMBS [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | $ 2,370,202 | [1],[2],[3] | $ 1,896,150 | |
Percentage of Total Outstanding | 100.00% | 100.00% | ||
Non-Agency RMBS [Member] | Western U.S. [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | $ 823,659 | $ 779,930 | ||
Percentage of Total Outstanding | 34.70% | 41.10% | ||
Non-Agency RMBS [Member] | Southeastern U.S. [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | $ 604,140 | $ 409,755 | ||
Percentage of Total Outstanding | 25.50% | 21.60% | ||
Non-Agency RMBS [Member] | Northeastern U.S. [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | $ 445,557 | $ 344,716 | ||
Percentage of Total Outstanding | 18.80% | 18.20% | ||
Non-Agency RMBS [Member] | Midwestern U.S. [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | $ 232,262 | $ 190,480 | ||
Percentage of Total Outstanding | 9.80% | 10.00% | ||
Non-Agency RMBS [Member] | Southwestern U.S. [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | $ 261,190 | $ 170,829 | ||
Percentage of Total Outstanding | 11.00% | 9.00% | ||
Non-Agency RMBS [Member] | Other U.S. [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | [4] | $ 3,394 | $ 440 | |
Percentage of Total Outstanding | [4] | 0.20% | 0.10% | |
[1] | Includes New Residential’s investments in interest-only notes for which the fair value option for financial instruments was elected. | |||
[2] | Includes Other ABS consisting primarily of interest-only securities which New Residential elected to carry at fair value and record changes to valuation through the income statement and representing 7.4% of the carrying value of the Non-Agency RMBS portfolio. Gross Unrealized Weighted AverageAsset Type Outstanding Face Amount Amortized Cost Basis Gains Losses Carrying Value Number of Securities Rating Coupon Yield Life (Years) Principal SubordinationOther ABS $1,222,088 $67,980 $1,472 $(1,840) $67,612 9 AA+ 1.87% 7.64% 3.6 N/A | |||
[3] | The total outstanding face amount was $1.4 billion (including $1.4 billion of residual and interest-only notional amount) for fixed rate securities and $954.6 million (including $99.8 million of residual and interest-only notional amount) for floating rate securities as of June 30, 2015. | |||
[4] | Represents collateral for which New Residential was unable to obtain geographic information. |
INVESTMENTS IN REAL ESTATE SE82
INVESTMENTS IN REAL ESTATE SECURITIES - Schedule of the Outstanding Face Amount and Carrying Value for Securities Uncollectible (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Outstanding Face Amount | $ 580,296 | $ 536,342 |
Carrying Value | $ 366,155 | $ 414,298 |
INVESTMENTS IN REAL ESTATE SE83
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Changes in Accretable Yield for Securities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Certain Loans Acquired in Transfer Accounted for as Available-for-sale Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Balance, beginning | $ 181,671 |
Additions | 84,044 |
Accretion | (13,372) |
Reclassifications from (to) non-accretable difference | (27,602) |
Disposals | (97,991) |
Balance, ending | 273,491 |
Accounting Standards Update 2014-11 [Member] | |
Certain Loans Acquired in Transfer Accounted for as Available-for-sale Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Adoption of ASU No. 2014-11 | $ 146,741 |
INVESTMENTS IN RESIDENTIAL MO84
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Narrative (Details) $ in Thousands | Jun. 25, 2015USD ($)loan | Jun. 16, 2015USD ($) | Apr. 08, 2015USD ($) | Apr. 06, 2015USD ($) | Apr. 02, 2015USD ($) | Mar. 27, 2015USD ($) | Mar. 26, 2015USD ($) | Mar. 19, 2015USD ($) | Feb. 27, 2015USD ($) | Feb. 28, 2013 | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)loan | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Oct. 03, 2014USD ($) | |
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||
Proceeds from sales of purchased residential mortgage loans, held-for-sale | $ 722,961 | $ 249,690 | |||||||||||||||
Gain (loss) on sale of residential mortgage loans, net | $ 11,795 | $ 0 | 32,625 | 0 | |||||||||||||
Purchase of residential mortgage loans | $ 0 | $ 486,596 | |||||||||||||||
Securitized loan amount | $ 2,600,000 | ||||||||||||||||
Acquired real estate owned | $ 1,300 | ||||||||||||||||
Threshold period past due | 60 days | ||||||||||||||||
Real Estate Owned assets total | 20,600 | $ 20,600 | |||||||||||||||
Government Guaranteed Mortgage Loans upon Foreclosure Receivable [Member] | |||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||
Loans receivable | 66,400 | 66,400 | |||||||||||||||
Nationstar [Member] | |||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||
Interest in reverse mortgage loans | 30.00% | ||||||||||||||||
Reverse Mortgage Loans [Member] | |||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||
Carrying value of mortgage loans | 21,601 | $ 21,601 | $ 24,965 | ||||||||||||||
Number of loans | loan | [1],[2] | 165 | |||||||||||||||
Interest in reverse mortgage loans | 70.00% | 70.00% | |||||||||||||||
PCI residential mortgage loans in the process of foreclosure, unpaid principal balance | 300 | $ 300 | |||||||||||||||
Residential Mortgage [Member] | |||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||
PCI residential mortgage loans in the process of foreclosure, unpaid principal balance | 376,600 | 376,600 | |||||||||||||||
Non-Agency RMBS [Member] | |||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||
Carrying value of mortgage loans | $ 9,100 | ||||||||||||||||
Number of loans | loan | 18 | ||||||||||||||||
Residential Mortgage [Member] | |||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | $ 369,000 | ||||||||||||||||
Purchase of residential mortgage loans | 388,800 | ||||||||||||||||
Non-Performing Loans [Member] | Residential Mortgage [Member] | |||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | 34,500 | $ 135,200 | |||||||||||||||
Carrying value of mortgage loans | 102,400 | ||||||||||||||||
Proceeds from sales of purchased residential mortgage loans, held-for-sale | 102,800 | ||||||||||||||||
Gain (loss) on sale of residential mortgage loans, net | $ 400 | ||||||||||||||||
Payments to retain loans | 31,700 | ||||||||||||||||
Non-Performing Loans [Member] | Residential Mortgage [Member] | GNMA EBO [Member] | |||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | $ 99,800 | $ 424,300 | 424,300 | $ 424,300 | |||||||||||||
Carrying value of mortgage loans | 98,300 | ||||||||||||||||
Proceeds from sales of purchased residential mortgage loans, held-for-sale | 98,800 | ||||||||||||||||
Gain (loss) on sale of residential mortgage loans, net | $ 500 | ||||||||||||||||
Purchase of residential mortgage loans | $ 418,800 | $ 418,800 | |||||||||||||||
Non-Performing Loans [Member] | Residential Mortgage and Real Estate Owned [Member] | |||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | $ 469,600 | ||||||||||||||||
Carrying value of mortgage loans | 362,000 | ||||||||||||||||
Proceeds from sales of purchased residential mortgage loans, held-for-sale | 373,000 | ||||||||||||||||
Gain (loss) on sale of residential mortgage loans, net | $ 11,000 | ||||||||||||||||
Reperforming Financial Instruments [Member] | Residential Mortgage [Member] | |||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||
Unpaid Principal Balance (“UPB”) of Underlying Mortgages | $ 6,400 | $ 176,500 | |||||||||||||||
Carrying value of mortgage loans | $ 16,800 | 5,100 | 142,100 | ||||||||||||||
Proceeds from sales of purchased residential mortgage loans, held-for-sale | 19,500 | 5,300 | 148,600 | ||||||||||||||
Gain (loss) on sale of residential mortgage loans, net | $ 2,700 | $ 200 | $ 6,500 | ||||||||||||||
Performing Loans [Member] | Residential Mortgage [Member] | |||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | |||||||||||||||||
Carrying value of mortgage loans | $ 270,400 | ||||||||||||||||
Proceeds from sales of purchased residential mortgage loans, held-for-sale | 278,900 | ||||||||||||||||
Gain (loss) on sale of residential mortgage loans, net | $ 8,500 | ||||||||||||||||
Securitized loan amount | 334,500 | ||||||||||||||||
Loss on securitization | 2,800 | ||||||||||||||||
Payments to acquire interest only notes | $ 14,900 | ||||||||||||||||
[1] | FICO scores are not used in determining how much a borrower can access via a reverse mortgage loan. | ||||||||||||||||
[2] | Represents a 70% interest that New Residential holds in reverse mortgage loans. The average loan balance outstanding based on total UPB is $0.3 million. 74% 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. |
INVESTMENTS IN RESIDENTIAL MO85
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015USD ($)loan | Dec. 31, 2014USD ($) | ||
Mortgage Loans on Real Estate [Line Items] | |||
Weighted Average Life (Years) | 11 months 2 days | ||
Reverse Mortgage Loans [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Outstanding Face Amount | [1],[2] | $ 39,475 | |
Carrying Value | [1],[2] | $ 21,601 | $ 24,965 |
Loan Count | loan | [1],[2] | 165 | |
Weighted Average Yield | [1],[2] | 10.00% | |
Weighted Average Life (Years) | [1],[2],[3] | 4 years 27 days | |
Floating Rate Loans as a % of Face Amount | [1],[2] | 21.50% | |
Loan to Value Ratio | [1],[2],[4] | 110.40% | |
Weighted Average Delinquency | [1],[2],[5] | 75.60% | |
Performing Loans [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Outstanding Face Amount | [6] | $ 22,887 | |
Carrying Value | [6] | $ 21,140 | 22,873 |
Loan Count | loan | [6] | 699 | |
Weighted Average Yield | [6] | 8.90% | |
Weighted Average Life (Years) | [3],[6] | 5 years 8 months 28 days | |
Floating Rate Loans as a % of Face Amount | [6] | 17.90% | |
Loan to Value Ratio | [4],[6] | 77.80% | |
Weighted Average Delinquency | [5],[6] | 10.80% | |
Weighted Average FICO | [6],[7] | 628 | |
Residential Mortgage Loans Held-for-Investment [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Outstanding Face Amount | $ 62,362 | ||
Carrying Value | $ 42,741 | 47,838 | |
Loan Count | loan | 864 | ||
Weighted Average Yield | 9.60% | ||
Weighted Average Life (Years) | [3] | 4 years 8 months 8 days | |
Floating Rate Loans as a % of Face Amount | 20.10% | ||
Loan to Value Ratio | [4] | 98.40% | |
Weighted Average Delinquency | [5] | 51.90% | |
Weighted Average FICO | [7] | 628 | |
Performing Loans, Held-for-sale [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Outstanding Face Amount | [6] | $ 0 | |
Carrying Value | [6] | $ 0 | 388,485 |
Loan Count | loan | [6] | 0 | |
Weighted Average Yield | [6] | 0.00% | |
Weighted Average Life (Years) | |||
Floating Rate Loans as a % of Face Amount | [6] | 0.00% | |
Loan to Value Ratio | [4],[6] | 0.00% | |
Weighted Average Delinquency | [5],[6] | 0.00% | |
Weighted Average FICO | [6],[7] | 0 | |
Purchase Credit Impaired Loans, Held-for-sale [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Outstanding Face Amount | [8],[9] | $ 599,610 | |
Carrying Value | [8],[9] | $ 523,018 | 737,954 |
Loan Count | loan | [8],[9] | 3,680 | |
Weighted Average Yield | [8],[9] | 5.30% | |
Weighted Average Life (Years) | [3],[8],[9] | 3 years 11 days | |
Floating Rate Loans as a % of Face Amount | [8],[9] | 14.70% | |
Loan to Value Ratio | [4],[8],[9] | 107.80% | |
Weighted Average Delinquency | [5],[8],[9] | 93.30% | |
Weighted Average FICO | [7],[8],[9] | 574 | |
Residential Mortgage Loans Held-for-Sale [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Outstanding Face Amount | $ 599,610 | ||
Carrying Value | $ 523,018 | $ 1,126,439 | |
Loan Count | loan | 3,680 | ||
Weighted Average Yield | 5.30% | ||
Weighted Average Life (Years) | [3] | 3 years 11 days | |
Floating Rate Loans as a % of Face Amount | 14.70% | ||
Loan to Value Ratio | [4] | 107.80% | |
Weighted Average Delinquency | [5] | 93.30% | |
Weighted Average FICO | [7] | 574 | |
[1] | FICO scores are not used in determining how much a borrower can access via a reverse mortgage loan. | ||
[2] | Represents a 70% interest that New Residential holds in reverse mortgage loans. The average loan balance outstanding based on total UPB is $0.3 million. 74% 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. | ||
[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 the total principal balance that are 60+ days delinquent. | ||
[6] | Includes loans that are current or less than 30 days past due at acquisition where New Residential expects to collect all contractually required principal and interest payments. Presented net of unamortized discounts of $1.6 million. | ||
[7] | The weighted average FICO score is based on the weighted average of information updated and provided by the loan servicer on a monthly basis. | ||
[8] | Includes $293.2 million UPB of GNMA EBO non-performing loans on accrual status as contractual cash flows are guaranteed by the FHA. | ||
[9] | Includes loans with evidence of credit deterioration since origination where it is probable that New Residential will not collect all contractually required principal and interest payments. As of June 30, 2015, New Residential has placed all of these loans on nonaccrual status, except as described in (I) below. |
INVESTMENTS IN RESIDENTIAL MO86
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO (Footnote) (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended |
Feb. 28, 2013 | Jun. 30, 2015 | |
Mortgage Loans on Real Estate [Line Items] | ||
Threshold period past due | 60 days | |
Net unamortized discounts and premiums | $ 1.6 | |
Reverse Mortgage Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest in reverse mortgage loans | 70.00% | 70.00% |
Total unpaid principal balance | $ 0.3 | |
Percentage of loans that have reached a termination event | 74.00% | |
Upper Range [Member] | Performing Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Threshold period past due | 30 days | |
GNMA EBO [Member] | Non-Performing Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | $ 293.2 |
INVESTMENTS IN RESIDENTIAL MO87
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans (Details) - Residential Mortgage Loans Held-for-Investment [Member] | Jun. 30, 2015 | Dec. 31, 2014 |
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 100.00% | 100.00% |
New Jersey [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 17.80% | 7.00% |
New York [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 16.50% | 12.20% |
Florida [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 8.40% | 6.30% |
California [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 6.40% | 15.00% |
Maryland [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 4.10% | 3.40% |
Illinois [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 3.70% | 4.40% |
Pennsylvania [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 3.40% | 3.90% |
Massachusetts [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 3.30% | 2.40% |
Washington [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 2.90% | 3.00% |
Oregon [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 2.70% | 1.50% |
Other U.S. [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount as of | 30.80% | 40.90% |
INVESTMENTS IN RESIDENTIAL MO88
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Past Due Information for Performing Loans (Details) - Delinquency Status [Member] | Jun. 30, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | [1] | 29.30% |
30-59 | [1] | 59.90% |
60-89 | [1] | 9.20% |
90-119 | [1],[2] | 0.70% |
120 and greater | [1],[3] | 0.90% |
Total Loans | 100.00% | |
[1] | Represents the percentage of the total principal balance that corresponds to loans that are in each delinquency status. | |
[2] | Includes loans 90-119 days past due and still accruing interest because they are generally placed on nonaccrual status at 120 days or more past due. | |
[3] | Represents nonaccrual loans. |
INVESTMENTS IN RESIDENTIAL MO89
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Past Due Information for Performing Loans (Footnote) (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Threshold period past due | 60 days |
Equal to Greater than 90 Days Past Due [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Threshold period past due | 120 days |
Lower Range [Member] | Equal to Greater than 90 Days Past Due [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Threshold period past due | 90 days |
Upper Range [Member] | Equal to Greater than 90 Days Past Due [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Threshold period past due | 119 days |
INVESTMENTS IN RESIDENTIAL MO90
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of Activities Related to the Carrying Value of Reverse Mortgage Loans and Performing Loans and PCI Loans Held for Investment (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Movement in Mortgage Loans on Real Estate [Roll Forward] | ||
Transfer of loans to real estate owned | $ (19,875) | $ 0 |
Reverse Mortgage Loans [Member] | ||
Movement in Mortgage Loans on Real Estate [Roll Forward] | ||
Balance, beginning | 24,965 | |
Purchases/additional fundings | 0 | |
Proceeds from repayments | (99) | |
Accretion of loan discount (premium) and other amortization | 2,720 | |
Provision for loan losses | (186) | |
Transfer of loans to other assets | (5,762) | |
Transfer of loans to real estate owned | (37) | |
Balance, ending | 21,601 | |
Performing Loans [Member] | ||
Movement in Mortgage Loans on Real Estate [Roll Forward] | ||
Balance, beginning | 22,873 | |
Purchases/additional fundings | 0 | |
Proceeds from repayments | (1,514) | |
Accretion of loan discount (premium) and other amortization | (101) | |
Provision for loan losses | (118) | |
Transfer of loans to other assets | 0 | |
Transfer of loans to real estate owned | 0 | |
Balance, ending | $ 21,140 |
INVESTMENTS IN RESIDENTIAL MO91
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of Activities Related to the Valuation Provision on Reverse Mortgage Loans and Allowance for Loan Losses on Performing Loans (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015USD ($) | ||
Reverse Mortgage Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning, balance | $ 1,518 | |
Allowance for loan losses | [1] | 186 |
Charge-offs | [2] | 0 |
Ending, balance | 1,704 | |
Performing Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning, balance | 1,447 | |
Allowance for loan losses | [1] | 118 |
Charge-offs | [2] | (1,371) |
Ending, balance | $ 194 | |
[1] | 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. | |
[2] | 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. |
INVESTMENTS IN RESIDENTIAL MO92
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of Activities Related to the Carrying Value of Loans Held-for-sale (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Loans Held-for-sale, Reconciliation [Roll Forward] | |||
Transfer of loans to real estate owned | $ (19,875) | $ 0 | |
Loans Held-for-sale [Member] | |||
Loans Held-for-sale, Reconciliation [Roll Forward] | |||
Beginning balance, loans held-for-sale | 1,126,439 | ||
Purchases | [1] | 807,579 | |
Sales | (1,352,158) | ||
Transfer of loans to real estate owned | (20,034) | ||
Proceeds from repayments | (37,903) | ||
Valuation provision on loans | (2,736) | ||
Ending balance, loans held-for-sale | 523,018 | ||
Accounting Standards Update 2014-11 [Member] | |||
Loans Held-for-sale, Reconciliation [Roll Forward] | |||
Adoption of ASU No. 2014-11 | 146,741 | ||
Accounting Standards Update 2014-11 [Member] | Loans Held-for-sale [Member] | |||
Loans Held-for-sale, Reconciliation [Roll Forward] | |||
Adoption of ASU No. 2014-11 | [2] | $ 1,831 | |
[1] | Represents loans acquired with the intent to sell, including loans acquired in the HLSS Acquisition (Note 1). | ||
[2] | Represents loans financed with the selling counterparty that were previously accounted for as linked transactions. |
INVESTMENTS IN CONSUMER LOANS93
INVESTMENTS IN CONSUMER LOANS, EQUITY METHOD INVESTEES - Narrative (Details) - USD ($) $ in Thousands | Oct. 03, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Apr. 30, 2013 |
Schedule of Equity Method Investments [Line Items] | |||||||
Refinanced outstanding asset-backed notes | $ 2,600,000 | ||||||
Proceeds from refinancing asset backed notes | 337,800 | ||||||
Basis in consumer loans investment | 0 | ||||||
Gain on consumer loans investment | $ 80,100 | $ 8,510 | $ 0 | $ 18,957 | $ 0 | ||
Distributions in excess to New Residential | 0 | $ 2,152 | |||||
Consumer Loan Companies [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Tax withholding payments | $ 600 | ||||||
Blackstone Tactical Opportunities Advisors LLC [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of portfolio co-invested by other parties | 23.00% | ||||||
Consumer Loan Companies [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of portfolio financed by other parties | 73.00% | ||||||
Springleaf [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of portfolio co-invested by other parties | 47.00% | ||||||
Consumer Loan Investees [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
New Residential’s ownership | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Percentage of portfolio co-invested by other parties | 70.00% | ||||||
Distributions in excess to New Residential | $ 19,000 |
INVESTMENTS IN CONSUMER LOANS94
INVESTMENTS IN CONSUMER LOANS, EQUITY METHOD INVESTEES - Summary of the Investment in Consumer Loan Companies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Apr. 30, 2013 | |
Schedule of Equity Method Investments [Line Items] | ||||||
New Residential’s investment | $ 0 | $ 0 | $ 0 | |||
Consumer Loan Investees [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Consumer loan assets (amortized cost basis) | 1,880,054 | 1,880,054 | 2,088,330 | |||
Other assets | 78,643 | 78,643 | 92,051 | |||
Debt | (2,145,948) | (2,145,948) | (2,411,421) | |||
Other liabilities | (5,479) | (5,479) | (12,340) | |||
Equity | (192,730) | (192,730) | (243,380) | |||
New Residential’s investment | $ 0 | $ 0 | $ 0 | |||
New Residential’s ownership | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% |
Interest income | $ 116,271 | $ 135,629 | $ 238,140 | $ 278,444 | ||
Interest expense | (22,188) | (18,106) | (45,295) | (40,301) | ||
Provision for finance receivable losses | (17,719) | (27,663) | (37,355) | (61,819) | ||
Other expenses, net | (14,798) | (19,279) | (30,762) | (39,731) | ||
Change in fair value of debt | 0 | 535 | 0 | (16,332) | ||
Net income | 61,566 | 71,116 | 124,728 | 120,261 | ||
New Residential’s equity in net income (through October 3, 2014) | $ 0 | $ 21,335 | $ 0 | $ 37,695 |
INVESTMENTS IN CONSUMER LOANS95
INVESTMENTS IN CONSUMER LOANS, EQUITY METHOD INVESTEES - Summary of Consumer Loan Investments made through Equity Method Investees (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | ||
Schedule of Equity Method Investments [Line Items] | |||
Weighted Average Expected Life (Years) | 11 months 2 days | ||
Consumer Loan Investees [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unpaid Principal Balance | [1] | $ 2,329,736 | $ 2,589,748 |
New Residential Interest in Investees | 30.00% | 30.00% | |
Carrying value | [2] | $ 1,880,054 | $ 2,088,330 |
Weighted Average Coupon | [3] | 18.20% | 18.10% |
Weighted Average Yield | 17.80% | 16.10% | |
Weighted Average Expected Life (Years) | [4] | 3 years 5 months 21 days | 3 years 7 months 6 days |
[1] | Represents the May 31, 2015 and November 30, 2014 balances, respectively. | ||
[2] | Represents the carrying value of the consumer loans held by the Consumer Loan Companies. | ||
[3] | Substantially all of the cash flows received on the loans is required to be used to make payments on the notes described above. | ||
[4] | Weighted Average Expected Life represents the weighted average expected timing of the receipt of expected cash flows for this investment. |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) | Jun. 30, 2015 | Jan. 01, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||||
Carrying amount of derivatives | $ 32,400,000 | |||
Other Liabilities [Member] | ||||
Derivative [Line Items] | ||||
Secured borrowings | 200,000 | |||
Repurchase Agreements [Member] | ||||
Derivative [Line Items] | ||||
Secured borrowings | 86,000,000 | |||
Residential Mortgage [Member] | ||||
Derivative [Line Items] | ||||
Secured borrowings | 1,800,000 | |||
Non-agency RMBS Repurchase Agreements [Member] | Residential Mortgage [Member] | ||||
Derivative [Line Items] | ||||
Secured borrowings | $ 116,800,000 | |||
Short [Member] | ||||
Derivative [Line Items] | ||||
Derivative asset, notional amount | $ 954,000,000 | |||
Short [Member] | TBAs [Member] | ||||
Derivative [Line Items] | ||||
Derivative asset, notional amount | [1] | 954,000,000 | $ 1,234,000,000 | |
Long [Member] | ||||
Derivative [Line Items] | ||||
Derivative asset, notional amount | 200,000,000 | |||
Long [Member] | TBAs [Member] | ||||
Derivative [Line Items] | ||||
Derivative asset, notional amount | [1] | $ 200,000,000 | $ 0 | |
[1] | Represents the notional amount of Agency RMBS, classified as derivatives. |
DERIVATIVES - Schedule of Deriv
DERIVATIVES - Schedule of Derivatives - Recorded at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Derivative assets | $ 1,701 | $ 32,597 | |
Derivative liabilities | 16,124 | 14,220 | |
Real Estate Securities [Member] | |||
Derivative [Line Items] | |||
Derivative assets | [1] | 0 | 32,090 |
Non-Performing Loans [Member] | |||
Derivative [Line Items] | |||
Derivative assets | [1] | 0 | 312 |
Interest Rate Cap [Member] | |||
Derivative [Line Items] | |||
Derivative assets | 1,701 | 195 | |
TBAs [Member] | |||
Derivative [Line Items] | |||
Derivative liabilities | 1,800 | 4,985 | |
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative liabilities | $ 14,324 | $ 9,235 | |
[1] | For December 31, 2014, investments purchased from, and financed by, the selling counterparty that New Residential accounted for as linked transactions are reflected as derivatives. Upon the adoption of ASU No. 2014-11 on January 1, 2015, these transactions are accounted for as secured borrowings. |
DERIVATIVES - Schedule of Der98
DERIVATIVES - Schedule of Derivatives - Notional Amount (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | |
Short [Member] | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 954,000,000 | ||
Long [Member] | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | 200,000,000 | ||
Non-Performing Loans [Member] | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | [1] | 0 | $ 2,931,000 |
Real Estate Securities [Member] | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | [2] | 0 | 186,694,000 |
TBAs [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | [3] | 954,000,000 | 1,234,000,000 |
TBAs [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | [3] | 200,000,000 | 0 |
Interest Rate Cap [Member] | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | [4] | 2,560,000,000 | 210,000,000 |
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | [5] | $ 2,144,000,000 | $ 1,107,000,000 |
[1] | For December 31, 2014, represents the UPB of the underlying loans of the non-performing loan pools within linked transactions. | ||
[2] | For December 31, 2014, represents the face amount of the real estate securities within linked transactions. | ||
[3] | Represents the notional amount of Agency RMBS, classified as derivatives. | ||
[4] | Caps LIBOR at 3.0%. | ||
[5] | Receive LIBOR and pay a fixed rate. |
DERIVATIVES - Schedule of Der99
DERIVATIVES - Schedule of Derivatives - Notional Amount (Footnote) (Details) | Jun. 30, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative, cap interest rate | 3.00% |
DERIVATIVES - Schedule of De100
DERIVATIVES - Schedule of Derivatives - Gain (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Derivative [Line Items] | |||||
Unrealized gain (loss) on derivative instruments | $ (1,229) | $ (3,801) | $ (8,259) | $ (2,444) | |
Gain (loss) on settlement of derivatives | 13,769 | (3,648) | (8,821) | (3,783) | |
Total gains (losses) | 12,540 | (7,449) | (17,080) | (6,227) | |
Non-Performing Loans [Member] | |||||
Derivative [Line Items] | |||||
Unrealized gain (loss) on derivative instruments | [1] | 0 | (985) | 0 | (314) |
Real Estate Securities [Member] | |||||
Derivative [Line Items] | |||||
Unrealized gain (loss) on derivative instruments | [1] | 0 | 0 | 0 | 26 |
Gain (loss) on settlement of derivatives | [1] | 0 | 0 | 0 | 43 |
TBAs [Member] | |||||
Derivative [Line Items] | |||||
Unrealized gain (loss) on derivative instruments | 1,754 | (132) | (1,800) | 230 | |
Gain (loss) on settlement of derivatives | 12,529 | (3,824) | (3,504) | (4,002) | |
Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Unrealized gain (loss) on derivative instruments | (1,737) | (2,276) | (5,089) | (2,386) | |
Gain (loss) on settlement of derivatives | 1,240 | 0 | (5,317) | 0 | |
U.S.T. Short Position [Member] | |||||
Derivative [Line Items] | |||||
Unrealized gain (loss) on derivative instruments | 0 | (408) | 0 | 0 | |
Gain (loss) on settlement of derivatives | 0 | 176 | 0 | 176 | |
Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Unrealized gain (loss) on derivative instruments | $ (1,246) | $ 0 | $ (1,370) | $ 0 | |
[1] | For December 31, 2014, investments purchased from, and financed by, the selling counterparty that New Residential accounted for as linked transactions are reflected as derivatives. Upon the adoption of ASU No. 2014-11 on January 1, 2015, these transactions are accounted for as secured borrowings. |
DEBT OBLIGATIONS - Schedule of
DEBT OBLIGATIONS - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | $ 10,311,446 | ||
Carrying Value | [1] | $ 10,287,678 | $ 6,057,853 |
Weighted Average Funding Cost | 2.59% | ||
Weighted Average Life (Years) | 11 months 2 days | ||
Servicer Advances [Member] | |||
Debt Instrument [Line Items] | |||
Carrying Value | $ 7,667,067 | ||
Repurchase Agreements [Member] | Agency RMBS [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | [2],[3] | 1,172,422 | |
Carrying Value | [1],[2],[3] | $ 1,172,422 | 1,707,602 |
Weighted Average Funding Cost | [2],[3] | 0.40% | |
Weighted Average Life (Years) | [2],[3] | 22 days | |
Repurchase Agreements [Member] | Agency RMBS [Member] | Collateral [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | [2],[3] | 1 year 4 days | |
Outstanding Face Amount of Collateral | [2],[3] | $ 1,167,997 | |
Amortized Cost Basis of Collateral | [2],[3] | 1,206,770 | |
Carrying Value of Collateral | [2],[3] | 1,204,179 | |
Repurchase Agreements [Member] | Non-Agency RMBS [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | [3],[4] | 659,567 | |
Carrying Value | [1],[3],[4] | $ 659,567 | 539,049 |
Weighted Average Funding Cost | [3],[4] | 1.87% | |
Weighted Average Life (Years) | [3],[4] | 28 days | |
Repurchase Agreements [Member] | Non-Agency RMBS [Member] | Collateral [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | [3],[4] | 7 years 5 months 9 days | |
Outstanding Face Amount of Collateral | [3],[4] | $ 2,281,029 | |
Amortized Cost Basis of Collateral | [3],[4] | 901,082 | |
Carrying Value of Collateral | [3],[4] | 910,802 | |
Repurchase Agreements [Member] | Residential Mortgage [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | [3],[5] | 447,940 | |
Carrying Value | [1],[3],[5] | $ 447,012 | 867,334 |
Weighted Average Funding Cost | [3],[5] | 2.95% | |
Weighted Average Life (Years) | [3],[5] | 7 months 15 days | |
Repurchase Agreements [Member] | Residential Mortgage [Member] | Collateral [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | [3],[5] | 2 years 8 months 14 days | |
Outstanding Face Amount of Collateral | [3],[5] | $ 618,216 | |
Amortized Cost Basis of Collateral | [3],[5] | 543,131 | |
Carrying Value of Collateral | [3],[5] | 540,415 | |
Repurchase Agreements [Member] | Real Estate Owned [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | [3],[6],[7] | 82,946 | |
Carrying Value | [1],[3],[6],[7] | $ 82,784 | 35,105 |
Weighted Average Funding Cost | [3],[6],[7] | 3.15% | |
Weighted Average Life (Years) | [3],[6],[7] | 6 months 29 days | |
Repurchase Agreements [Member] | Real Estate Owned [Member] | Collateral [Member] | |||
Debt Instrument [Line Items] | |||
Carrying Value of Collateral | [3],[6],[7] | $ 89,168 | |
Repurchase Agreements [Member] | Consumer Loan Investment [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | [3],[8] | 42,976 | |
Carrying Value | [1],[3],[8] | $ 42,832 | 0 |
Weighted Average Funding Cost | [3],[8] | 3.77% | |
Weighted Average Life (Years) | [3],[8] | 3 months 2 days | |
Repurchase Agreements [Member] | Consumer Loan Investment [Member] | Collateral [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | [3],[8] | 3 years 5 months 21 days | |
Carrying Value of Collateral | [3],[8] | $ 0 | |
Repurchase Agreements [Member] | Total Repurchase Agreements [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | [3] | 2,405,851 | |
Carrying Value | [1],[3] | $ 2,404,617 | 3,149,090 |
Weighted Average Funding Cost | [3] | 1.44% | |
Weighted Average Life (Years) | [3] | 2 months 9 days | |
Notes Payable [Member] | Residential Mortgage [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | [9] | $ 22,433 | |
Carrying Value | [1],[9] | $ 22,433 | 22,194 |
Weighted Average Funding Cost | [9] | 3.07% | |
Weighted Average Life (Years) | [9] | 3 months 19 days | |
Notes Payable [Member] | Residential Mortgage [Member] | Collateral [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | [9] | 4 years 27 days | |
Outstanding Face Amount of Collateral | [9] | $ 39,475 | |
Amortized Cost Basis of Collateral | [9] | 23,305 | |
Carrying Value of Collateral | [9] | 21,601 | |
Notes Payable [Member] | Real Estate Owned [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 0 | ||
Carrying Value | [1] | $ 0 | 785 |
Weighted Average Funding Cost | 0.00% | ||
Weighted Average Life (Years) | |||
Notes Payable [Member] | Real Estate Owned [Member] | Collateral [Member] | |||
Debt Instrument [Line Items] | |||
Carrying Value of Collateral | $ 0 | ||
Notes Payable [Member] | Secured Corporate Note [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | [10] | 195,600 | |
Carrying Value | [1],[10] | $ 193,600 | 0 |
Weighted Average Funding Cost | [10] | 5.43% | |
Weighted Average Life (Years) | [10] | 1 year 9 months 25 days | |
Notes Payable [Member] | Secured Corporate Note [Member] | Collateral [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | [10] | 4 years 10 months 3 days | |
Outstanding Face Amount of Collateral | [10] | $ 101,243,511 | |
Amortized Cost Basis of Collateral | [10] | 230,282 | |
Carrying Value of Collateral | [10] | 268,951 | |
Notes Payable [Member] | Servicer Advances [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | [11] | 7,687,600 | |
Carrying Value | [1],[11] | $ 7,667,100 | 2,885,784 |
Weighted Average Funding Cost | [11] | 2.88% | |
Weighted Average Life (Years) | [11] | 1 year 1 month 17 days | |
Notes Payable [Member] | Servicer Advances [Member] | Collateral [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average Life (Years) | [11] | 4 years 4 months 1 day | |
Outstanding Face Amount of Collateral | [11] | $ 8,278,685 | |
Amortized Cost Basis of Collateral | [11] | 8,081,258 | |
Carrying Value of Collateral | [11] | 8,182,400 | |
Notes Payable [Member] | Total Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Face Amount | 7,905,595 | ||
Carrying Value | [1] | $ 7,883,061 | $ 2,908,763 |
Weighted Average Funding Cost | 2.94% | ||
Weighted Average Life (Years) | 1 year 1 month 22 days | ||
[1] | Net of deferred financing costs associated with the adoption of ASU No. 2015-03. | ||
[2] | The counterparties of these repurchase agreements are Citibank ($232.2 million), Morgan Stanley ($77.0 million), Barclays ($96.8 million), Daiwa ($377.2 million) and Jefferies ($389.2 million) and were subject to customary margin call provisions. All of the Agency RMBS repurchase agreements have a fixed rate. | ||
[3] | These repurchase agreements had approximately $2.5 million of associated accrued interest payable as of June 30, 2015. | ||
[4] | The counterparties of these repurchase agreements are Barclays ($5.4 million), Credit Suisse ($263.7 million), Royal Bank of Canada ($10.2 million), Bank of America, N.A. ($88.7 million), Citibank ($60.6 million), Goldman Sachs ($70.1 million) and UBS ($160.8 million) and were subject to customary margin call provisions. All of the Non-Agency repurchase agreements have LIBOR-based floating interest rates. | ||
[5] | The counterparties on these repurchase agreements are Barclays ($263.4 million maturing in January 2016), Bank of America N.A. ($61.4 million maturing in August 2016), Nomura ($60.5 million maturing in May 2016), Citibank ($2.7 million maturing in August 2015) and Credit Suisse ($60.0 million maturing in November 2015). All of these repurchase agreements have LIBOR-based floating interest rates. | ||
[6] | Includes financing collateralized by receivables including claims from FHA on GNMA EBO loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee. | ||
[7] | The counterparties of these repurchase agreements are Barclays ($68.2 million), Credit Suisse ($0.9 million), Bank of America, N.A. ($3.5 million), Citibank ($0.6 million) and Nomura ($9.8 million). All of these repurchase agreements have LIBOR-based floating interest rates. | ||
[8] | The repurchase agreement is payable to Bank of America, N.A. and bears interest equal to three-month LIBOR plus 3.50% and is collateralized by New Residential’s interest in consumer loans (Note 9). | ||
[9] | The note is payable to Nationstar and bears interest equal to one-month LIBOR plus 2.875%. | ||
[10] | The loan bears interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 5.25%. The outstanding face of the collateral represents the UPB of the residential mortgage loans underlying the Excess MSRs that secure this corporate loan. | ||
[11] | $3.1 billion face amount of the notes have a fixed rate while the remaining notes bear interest equal to the sum of (i) a floating rate index rate equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 1.0% to 2.0%. |
DEBT OBLIGATIONS - Schedule 102
DEBT OBLIGATIONS - Schedule of Debt Obligations (Footnote) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Accrued interest payable | $ 15,607 | $ 7,857 |
Repurchase Agreements [Member] | Total Repurchase Agreements [Member] | ||
Debt Instrument [Line Items] | ||
Accrued interest payable | $ 2,500 | |
Repurchase Agreements [Member] | Consumer Loan Investment [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 3.50% | |
Notes Payable [Member] | Residential Mortgage [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 2.875% | |
Notes Payable [Member] | Secured Corporate Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 5.25% | |
Notes Payable [Member] | Servicer Advances [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of fixed rate debt | $ 3,100,000 | |
Notes Payable [Member] | Servicer Advances [Member] | London Interbank Offered Rate (LIBOR) [Member] | Lower Range [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 1.00% | |
Notes Payable [Member] | Servicer Advances [Member] | London Interbank Offered Rate (LIBOR) [Member] | Upper Range [Member] | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread | 2.00% | |
Citibank [Member] | Repurchase Agreements [Member] | Agency RMBS [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | $ 232,200 | |
Citibank [Member] | Repurchase Agreements [Member] | Non-Agency RMBS [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 60,600 | |
Citibank [Member] | Repurchase Agreements [Member] | Residential Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 2,700 | |
Citibank [Member] | Repurchase Agreements [Member] | Real Estate Owned [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 600 | |
Morgan Stanley [Member] | Repurchase Agreements [Member] | Agency RMBS [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 77,000 | |
Barclays [Member] | Repurchase Agreements [Member] | Agency RMBS [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 96,800 | |
Barclays [Member] | Repurchase Agreements [Member] | Non-Agency RMBS [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 5,400 | |
Barclays [Member] | Repurchase Agreements [Member] | Residential Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 263,400 | |
Barclays [Member] | Repurchase Agreements [Member] | Real Estate Owned [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 68,200 | |
Daiwa [Member] | Repurchase Agreements [Member] | Agency RMBS [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 377,200 | |
Jefferies [Member] | Repurchase Agreements [Member] | Agency RMBS [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 389,200 | |
Credit Suisse [Member] | Repurchase Agreements [Member] | Non-Agency RMBS [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 263,700 | |
Credit Suisse [Member] | Repurchase Agreements [Member] | Residential Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 60,000 | |
Credit Suisse [Member] | Repurchase Agreements [Member] | Real Estate Owned [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 900 | |
Royal Bank of Canada [Member] | Repurchase Agreements [Member] | Non-Agency RMBS [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 10,200 | |
Bank of America [Member] | Repurchase Agreements [Member] | Non-Agency RMBS [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 88,700 | |
Bank of America [Member] | Repurchase Agreements [Member] | Residential Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 61,400 | |
Bank of America [Member] | Repurchase Agreements [Member] | Real Estate Owned [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 3,500 | |
Goldman Sachs [Member] | Repurchase Agreements [Member] | Non-Agency RMBS [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 70,100 | |
UBS [Member] | Repurchase Agreements [Member] | Non-Agency RMBS [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 160,800 | |
Nomura [Member] | Repurchase Agreements [Member] | Residential Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | 60,500 | |
Nomura [Member] | Repurchase Agreements [Member] | Real Estate Owned [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase agreements | $ 9,800 |
DEBT OBLIGATIONS - Narrative (D
DEBT OBLIGATIONS - Narrative (Details) | Jun. 25, 2015USD ($) | Apr. 06, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 29, 2015USD ($) | Jun. 16, 2015USD ($) | Mar. 31, 2015USD ($) | Feb. 27, 2015USD ($) |
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 10,311,446,000 | $ 10,311,446,000 | |||||||
Purchase of residential mortgage loans | $ 0 | $ 486,596,000 | |||||||
Percent decline in equity, first period | 50.00% | 50.00% | |||||||
Decline in equity, first period | 12 months | ||||||||
Percent decline in equity, second period | 35.00% | 35.00% | |||||||
Decline in equity, second period | 3 months | ||||||||
Ratio of indebtedness to tangible net worth | 4 | 4 | |||||||
Residential Mortgage [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Unpaid Principal Balance | $ 369,000,000 | ||||||||
Purchase of residential mortgage loans | 388,800,000 | ||||||||
Residential Mortgage [Member] | Non-Performing Loans [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Unpaid Principal Balance | $ 34,500,000 | $ 135,200,000 | |||||||
GNMA EBO [Member] | Residential Mortgage [Member] | Non-Performing Loans [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Unpaid Principal Balance | $ 424,300,000 | $ 424,300,000 | $ 424,300,000 | $ 99,800,000 | |||||
Purchase of residential mortgage loans | $ 418,800,000 | 418,800,000 | |||||||
March 2015 Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 1,000,000,000 | 1,000,000,000 | $ 500,000,000 | ||||||
Servicer Advance Note [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 800,000,000 | $ 800,000,000 | $ 650,000,000 | ||||||
Interest rate | 2.50% | 2.50% | |||||||
Variable Funding Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 400,000,000 | $ 400,000,000 | |||||||
Variable Funding Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest rate spread | 1.95% | ||||||||
Variable Funding Notes [Member] | HLSS [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 5,000,000,000 | $ 5,000,000,000 | |||||||
Variable Funding Notes [Member] | HLSS [Member] | Lower Range [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest rate spread | 1.00% | ||||||||
Variable Funding Notes [Member] | HLSS [Member] | Upper Range [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest rate spread | 1.60% | ||||||||
Term Notes [Member] | HLSS [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 2,500,000,000 | $ 2,500,000,000 | |||||||
Interest rate | 2.00% | 2.00% | |||||||
Residential Mortgage Loans [Member] | Barclays [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repurchase agreement, amount | $ 393,000,000 | $ 393,000,000 | |||||||
Residential Mortgage Loans [Member] | London Interbank Offered Rate (LIBOR) [Member] | Barclays [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest rate spread | 2.77% | ||||||||
Consumer Loans [Member] | Bank of America [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repurchase agreement, amount | $ 43,000,000 | 43,000,000 | |||||||
Consumer Loans [Member] | London Interbank Offered Rate (LIBOR) [Member] | Bank of America [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest rate spread | 3.50% | ||||||||
Repurchase Agreements [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Margin exposure on repurchase agreements | 2,400,000,000 | ||||||||
Secured Corporate Loan [Member] | Credit Suisse First Boston Mortgage Capital, LLC [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 205,000,000 | 205,000,000 | $ 100,000,000 | ||||||
Secured Corporate Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | Credit Suisse First Boston Mortgage Capital, LLC [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest rate spread | 3.75% | ||||||||
Secured Corporate Loan [Member] | Secured Corporate Loan, April 2016 Maturity [Member] | Barclays [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 165,000,000 | 165,000,000 | |||||||
Secured Corporate Loan [Member] | Secured Corporate Loan, April 2016 Maturity [Member] | Credit Suisse First Boston Mortgage Capital, LLC [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | 265,000,000 | 265,000,000 | |||||||
Secured Corporate Loan [Member] | Secured Corporate Note, April 2017 Maturity [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 219,400,000 | $ 219,400,000 | |||||||
Secured Corporate Loan [Member] | Secured Corporate Note, April 2017 Maturity [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest rate spread | 5.25% | ||||||||
Secured Corporate Loan [Member] | Secured Corporate Note, April 2017 Maturity, Adjusted May 2016 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest rate spread | 7.25% |
DEBT OBLIGATIONS - Schedule 104
DEBT OBLIGATIONS - Schedule of Debt Obligations - Carrying Value (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Debt Instrument [Roll Forward] | |||
Beginning balance | [1] | $ 6,057,853 | |
Borrowings | 2,651,587 | $ 2,473,920 | |
Repayments | (3,480,781) | $ (2,274,155) | |
Ending balance | [1] | 10,287,678 | |
Servicer Advances [Member] | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | |||
Ending balance | 7,667,067 | ||
Real Estate Securities [Member] | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | |||
Ending balance | 1,831,989 | ||
Real Estate Loans [Member] | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | |||
Ending balance | 552,229 | ||
Consumer Loan Investment [Member] | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | |||
Ending balance | 42,832 | ||
Other [Member] | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | |||
Ending balance | 193,561 | ||
Repurchase Agreements [Member] | |||
Debt Instrument [Roll Forward] | |||
Borrowings | 2,651,587 | ||
Repayments | (3,480,781) | ||
Repurchase Agreements [Member] | Servicer Advances [Member] | |||
Debt Instrument [Roll Forward] | |||
Borrowings | 0 | ||
Repayments | 0 | ||
Repurchase Agreements [Member] | Real Estate Securities [Member] | |||
Debt Instrument [Roll Forward] | |||
Borrowings | 2,222,172 | ||
Repayments | (2,721,483) | ||
Repurchase Agreements [Member] | Real Estate Loans [Member] | |||
Debt Instrument [Roll Forward] | |||
Borrowings | 386,439 | ||
Repayments | (759,298) | ||
Repurchase Agreements [Member] | Consumer Loan Investment [Member] | |||
Debt Instrument [Roll Forward] | |||
Borrowings | 42,976 | ||
Repayments | 0 | ||
Repurchase Agreements [Member] | Other [Member] | |||
Debt Instrument [Roll Forward] | |||
Borrowings | 0 | ||
Repayments | 0 | ||
Notes Payable [Member] | |||
Debt Instrument [Roll Forward] | |||
Borrowings | 8,064,368 | ||
Repayments | (3,073,963) | ||
Notes Payable [Member] | Servicer Advances [Member] | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | [1],[2] | 2,885,784 | |
Borrowings | 7,210,317 | ||
Repayments | (2,412,975) | ||
Ending balance | [1],[2] | 7,667,100 | |
Notes Payable [Member] | Real Estate Securities [Member] | |||
Debt Instrument [Roll Forward] | |||
Borrowings | 0 | ||
Repayments | 0 | ||
Notes Payable [Member] | Real Estate Loans [Member] | |||
Debt Instrument [Roll Forward] | |||
Borrowings | 1,632 | ||
Repayments | (2,178) | ||
Notes Payable [Member] | Consumer Loan Investment [Member] | |||
Debt Instrument [Roll Forward] | |||
Borrowings | 0 | ||
Repayments | 0 | ||
Notes Payable [Member] | Other [Member] | |||
Debt Instrument [Roll Forward] | |||
Borrowings | 852,419 | ||
Repayments | (658,810) | ||
Accounting Standards Update 2014-11 [Member] | |||
Debt Instrument [Roll Forward] | |||
Retrospective adjustment for adption of ASU | 2,310 | ||
Adoption of ASU | (146,741) | ||
Accounting Standards Update 2014-11 [Member] | Repurchase Agreements [Member] | |||
Debt Instrument [Roll Forward] | |||
Retrospective adjustment for adption of ASU | 85,955 | ||
Accounting Standards Update 2014-11 [Member] | Repurchase Agreements [Member] | Servicer Advances [Member] | |||
Debt Instrument [Roll Forward] | |||
Retrospective adjustment for adption of ASU | 0 | ||
Accounting Standards Update 2014-11 [Member] | Repurchase Agreements [Member] | Real Estate Securities [Member] | |||
Debt Instrument [Roll Forward] | |||
Retrospective adjustment for adption of ASU | 84,649 | ||
Accounting Standards Update 2014-11 [Member] | Repurchase Agreements [Member] | Real Estate Loans [Member] | |||
Debt Instrument [Roll Forward] | |||
Retrospective adjustment for adption of ASU | 1,306 | ||
Accounting Standards Update 2014-11 [Member] | Repurchase Agreements [Member] | Consumer Loan Investment [Member] | |||
Debt Instrument [Roll Forward] | |||
Retrospective adjustment for adption of ASU | 0 | ||
Accounting Standards Update 2014-11 [Member] | Repurchase Agreements [Member] | Other [Member] | |||
Debt Instrument [Roll Forward] | |||
Retrospective adjustment for adption of ASU | 0 | ||
Accounting Standards Update 2015-03 [Member] | Repurchase Agreements [Member] | |||
Debt Instrument [Roll Forward] | |||
Retrospective adjustment for adption of ASU | (4,446) | ||
Adoption of ASU | (1,234) | ||
Accounting Standards Update 2015-03 [Member] | Repurchase Agreements [Member] | Servicer Advances [Member] | |||
Debt Instrument [Roll Forward] | |||
Retrospective adjustment for adption of ASU | (4,446) | ||
Adoption of ASU | 0 | ||
Accounting Standards Update 2015-03 [Member] | Repurchase Agreements [Member] | Real Estate Securities [Member] | |||
Debt Instrument [Roll Forward] | |||
Retrospective adjustment for adption of ASU | 0 | ||
Adoption of ASU | 0 | ||
Accounting Standards Update 2015-03 [Member] | Repurchase Agreements [Member] | Real Estate Loans [Member] | |||
Debt Instrument [Roll Forward] | |||
Retrospective adjustment for adption of ASU | 0 | ||
Adoption of ASU | (1,090) | ||
Accounting Standards Update 2015-03 [Member] | Repurchase Agreements [Member] | Consumer Loan Investment [Member] | |||
Debt Instrument [Roll Forward] | |||
Retrospective adjustment for adption of ASU | 0 | ||
Adoption of ASU | (144) | ||
Accounting Standards Update 2015-03 [Member] | Repurchase Agreements [Member] | Other [Member] | |||
Debt Instrument [Roll Forward] | |||
Retrospective adjustment for adption of ASU | 0 | ||
Adoption of ASU | 0 | ||
Accounting Standards Update 2015-03 [Member] | Notes Payable [Member] | |||
Debt Instrument [Roll Forward] | |||
Adoption of ASU | (16,107) | ||
Accounting Standards Update 2015-03 [Member] | Notes Payable [Member] | Servicer Advances [Member] | |||
Debt Instrument [Roll Forward] | |||
Adoption of ASU | (16,059) | ||
Accounting Standards Update 2015-03 [Member] | Notes Payable [Member] | Real Estate Securities [Member] | |||
Debt Instrument [Roll Forward] | |||
Adoption of ASU | 0 | ||
Accounting Standards Update 2015-03 [Member] | Notes Payable [Member] | Real Estate Loans [Member] | |||
Debt Instrument [Roll Forward] | |||
Adoption of ASU | 0 | ||
Accounting Standards Update 2015-03 [Member] | Notes Payable [Member] | Consumer Loan Investment [Member] | |||
Debt Instrument [Roll Forward] | |||
Adoption of ASU | 0 | ||
Accounting Standards Update 2015-03 [Member] | Notes Payable [Member] | Other [Member] | |||
Debt Instrument [Roll Forward] | |||
Adoption of ASU | (48) | ||
Previously Reported [Member] | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | 6,062,299 | ||
Previously Reported [Member] | Servicer Advances [Member] | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | [3] | 2,890,230 | |
Previously Reported [Member] | Real Estate Securities [Member] | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | [3] | 2,246,651 | |
Previously Reported [Member] | Real Estate Loans [Member] | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | [3] | 925,418 | |
Previously Reported [Member] | Consumer Loan Investment [Member] | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | [3] | 0 | |
Previously Reported [Member] | Other [Member] | |||
Debt Instrument [Roll Forward] | |||
Beginning balance | [3] | $ 0 | |
[1] | Net of deferred financing costs associated with the adoption of ASU No. 2015-03. | ||
[2] | $3.1 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 1.0% to 2.0%. | ||
[3] | Excludes debt related to linked transactions (Note 10). |
DEBT OBLIGATIONS - Schedule 105
DEBT OBLIGATIONS - Schedule of Contractual Maturities of Debt Obligations (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Debt maturing in: | |
July 1 through December 31, 2015 | $ 3,164,957 |
2,016 | 4,783,237 |
2,017 | 1,850,252 |
2,018 | 513,000 |
Total | 10,311,446 |
Nonrecourse [Member] | |
Debt maturing in: | |
July 1 through December 31, 2015 | 1,203,382 |
2,016 | 4,386,775 |
2,017 | 1,654,662 |
2,018 | 513,000 |
Total | 7,757,819 |
Recourse [Member] | |
Debt maturing in: | |
July 1 through December 31, 2015 | 1,961,575 |
2,016 | 396,462 |
2,017 | 195,590 |
2,018 | 0 |
Total | $ 2,553,627 |
DEBT OBLIGATIONS - Schedule 106
DEBT OBLIGATIONS - Schedule of Borrowing Capacity (Details) $ in Thousands | Jun. 30, 2015USD ($) | |
Residential Mortgage Loans [Member] | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 2,275,000 | |
Balance Outstanding | 465,992 | |
Available Financing | 1,809,008 | |
Servicer Advances [Member] | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | [1] | 11,163,000 |
Balance Outstanding | [1] | 7,687,572 |
Available Financing | [1] | 3,475,428 |
Debt Excess Borrowing Capacity [Member] | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | 13,438,000 | |
Balance Outstanding | 8,153,564 | |
Available Financing | $ 5,284,436 | |
[1] | New Residential’s unused borrowing capacity is available if New Residential has additional eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements, including any applicable advance rate. New Residential pays a 0.4% fee on the unused borrowing capacity. |
DEBT OBLIGATIONS - Schedule 107
DEBT OBLIGATIONS - Schedule of Borrowing Capacity (Footnote) (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Servicer Advances [Member] | |
Debt Instrument [Line Items] | |
Unused borrowing capacity percent fee | 0.40% |
FAIR VALUE OF FINANCIAL INST108
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Carrying Values and Fair Values of Financial Assets Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Investments in: | |||||
Real estate securities, available-for-sale | $ 1,907,961 | $ 2,463,163 | |||
Non-hedge derivatives | 1,701 | 32,597 | |||
Cash and cash equivalents | 432,007 | 212,985 | $ 311,126 | $ 271,994 | |
Restricted cash | 134,735 | 29,418 | |||
Liabilities: | |||||
Repurchase agreements | 2,404,617 | 3,149,090 | |||
Notes payable | 7,883,061 | 2,908,763 | |||
Carrying Value | [1] | 10,287,678 | 6,057,853 | ||
Derivative liabilities | 16,124 | $ 14,220 | |||
Recurring Basis [Member] | |||||
Investments in: | |||||
Excess mortgage servicing rights, at fair value | [2] | 335,643,658 | |||
Excess mortgage servicing rights, equity method investees, at fair value | [2] | 79,731,703 | |||
Servicer advances | 8,278,685 | ||||
Real estate securities, available-for-sale | 3,328,343 | ||||
Residential mortgage loans, held-for-investment | 62,362 | ||||
Residential mortgage loans, held-for-sale | 599,610 | ||||
Non-hedge derivatives | 2,560,000 | ||||
Cash and cash equivalents | 432,007 | ||||
Restricted cash | 134,735 | ||||
Liabilities: | |||||
Repurchase agreements | 2,405,851 | ||||
Notes payable | 7,905,595 | ||||
Derivative liabilities | 3,298,000 | ||||
Recurring Basis [Member] | Level 1 [Member] | |||||
Investments in: | |||||
Excess mortgage servicing rights, at fair value | [2] | 0 | |||
Excess mortgage servicing rights, equity method investees, at fair value | [2] | 0 | |||
Servicer advances | 0 | ||||
Real estate securities, available-for-sale | 0 | ||||
Residential mortgage loans, held-for-investment | 0 | ||||
Residential mortgage loans, held-for-sale | 0 | ||||
Non-hedge derivatives | 0 | ||||
Cash and cash equivalents | 432,007 | ||||
Restricted cash | 134,735 | ||||
Assets, fair value | 566,742 | ||||
Liabilities: | |||||
Repurchase agreements | 0 | ||||
Notes payable | 0 | ||||
Derivative liabilities | 0 | ||||
Liabilities, fair value | 0 | ||||
Recurring Basis [Member] | Level 2 [Member] | |||||
Investments in: | |||||
Excess mortgage servicing rights, at fair value | [2] | 0 | |||
Excess mortgage servicing rights, equity method investees, at fair value | [2] | 0 | |||
Servicer advances | 0 | ||||
Real estate securities, available-for-sale | 994,030 | ||||
Residential mortgage loans, held-for-investment | 0 | ||||
Residential mortgage loans, held-for-sale | 0 | ||||
Non-hedge derivatives | 1,701 | ||||
Cash and cash equivalents | 0 | ||||
Restricted cash | 0 | ||||
Assets, fair value | 995,731 | ||||
Liabilities: | |||||
Repurchase agreements | 1,831,989 | ||||
Notes payable | 0 | ||||
Derivative liabilities | 16,124 | ||||
Liabilities, fair value | 1,848,113 | ||||
Recurring Basis [Member] | Level 3 [Member] | |||||
Investments in: | |||||
Excess mortgage servicing rights, at fair value | [2] | 1,504,422 | |||
Excess mortgage servicing rights, equity method investees, at fair value | [2] | 216,112 | |||
Servicer advances | 8,182,400 | ||||
Real estate securities, available-for-sale | 913,931 | ||||
Residential mortgage loans, held-for-investment | 43,870 | ||||
Residential mortgage loans, held-for-sale | 524,105 | ||||
Non-hedge derivatives | 0 | ||||
Cash and cash equivalents | 0 | ||||
Restricted cash | 0 | ||||
Assets, fair value | 11,384,840 | ||||
Liabilities: | |||||
Repurchase agreements | 573,862 | ||||
Notes payable | 7,908,842 | ||||
Derivative liabilities | 0 | ||||
Liabilities, fair value | 8,482,704 | ||||
Recurring Basis [Member] | Carrying Value [Member] | |||||
Investments in: | |||||
Excess mortgage servicing rights, at fair value | [2] | 1,504,422 | |||
Excess mortgage servicing rights, equity method investees, at fair value | [2] | 216,112 | |||
Servicer advances | 8,182,400 | ||||
Real estate securities, available-for-sale | 1,907,961 | ||||
Residential mortgage loans, held-for-investment | 42,741 | ||||
Residential mortgage loans, held-for-sale | 523,018 | ||||
Non-hedge derivatives | 1,701 | ||||
Cash and cash equivalents | 432,007 | ||||
Restricted cash | 134,735 | ||||
Assets, fair value | 12,945,097 | ||||
Liabilities: | |||||
Repurchase agreements | 2,404,617 | ||||
Derivative liabilities | 16,124 | ||||
Liabilities, fair value | 10,303,802 | ||||
Recurring Basis [Member] | Fair Value [Member] | |||||
Investments in: | |||||
Excess mortgage servicing rights, at fair value | 1,504,422 | ||||
Excess mortgage servicing rights, equity method investees, at fair value | 216,112 | ||||
Servicer advances | 8,182,400 | ||||
Real estate securities, available-for-sale | 1,907,961 | ||||
Residential mortgage loans, held-for-investment | 43,870 | ||||
Residential mortgage loans, held-for-sale | 524,105 | ||||
Non-hedge derivatives | 1,701 | ||||
Cash and cash equivalents | 432,007 | ||||
Restricted cash | 134,735 | ||||
Assets, fair value | 12,947,313 | ||||
Liabilities: | |||||
Repurchase agreements | 2,405,851 | ||||
Notes payable | 7,908,842 | ||||
Derivative liabilities | 16,124 | ||||
Liabilities, fair value | $ 10,330,817 | ||||
[1] | Net of deferred financing costs associated with the adoption of ASU No. 2015-03. | ||||
[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 INST109
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Financial Assets Measured at Fair Value on a Recurring Basis using Level 3 Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Gains (losses) included in net income | |||||
Included in gain on settlement of investments, net | $ 1,201 | $ 52,539 | $ 15,968 | $ 56,896 | |
Recurring Basis [Member] | Level 3 [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | 4,774,850 | ||||
Transfers from Level 3 | 0 | ||||
Transfers to Level 3 | 0 | ||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | 0 | ||||
Gains (losses) included in net income | |||||
Included in other-than-temporary impairment (''OTTI'') on securities | [1] | (1,720) | |||
Included in change in fair value of investments in excess mortgage servicing rights | [1] | (1,405) | |||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | [1] | 8,016 | |||
Included in change in fair value of investments in servicer advances | 16,893 | ||||
Included in gain on settlement of investments, net | 3,808 | ||||
Included in other income | [1] | 1,577 | |||
Gains (losses) included in other comprehensive income, net of tax | [2] | (560) | |||
Interest income | 223,530 | ||||
Purchases, sales, repayments and transfers | |||||
Purchases | 12,944,059 | ||||
Proceeds from sales | (389,719) | ||||
Proceeds from repayments | (6,846,894) | ||||
De-linked transactions | 0 | ||||
Balance, ending | 10,816,865 | 10,816,865 | |||
Recurring Basis [Member] | Level 3 [Member] | Accounting Standards Update 2014-11 [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [3] | 84,430 | |||
Purchases, sales, repayments and transfers | |||||
De-linked transactions | [3] | 84,430 | |||
Recurring Basis [Member] | Level 3 [Member] | Linked Transactions [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | 32,402 | ||||
Transfers from Level 3 | [4] | 0 | |||
Transfers to Level 3 | [4] | 0 | |||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [4] | 0 | |||
Gains (losses) included in net income | |||||
Included in other-than-temporary impairment (''OTTI'') on securities | [1] | 0 | |||
Included in change in fair value of investments in excess mortgage servicing rights | [1] | 0 | |||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | [1] | 0 | |||
Included in change in fair value of investments in servicer advances | 0 | ||||
Included in gain on settlement of investments, net | 0 | ||||
Included in other income | [1] | 0 | |||
Gains (losses) included in other comprehensive income, net of tax | [2] | 0 | |||
Interest income | 0 | ||||
Purchases, sales, repayments and transfers | |||||
Purchases | 0 | ||||
Proceeds from sales | 0 | ||||
Proceeds from repayments | 0 | ||||
De-linked transactions | [4] | 0 | |||
Balance, ending | 0 | 0 | |||
Recurring Basis [Member] | Level 3 [Member] | Linked Transactions [Member] | Accounting Standards Update 2014-11 [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [3] | (32,402) | |||
Purchases, sales, repayments and transfers | |||||
De-linked transactions | [3] | (32,402) | |||
Recurring Basis [Member] | Level 3 [Member] | Non-Agency RMBS [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | 723,000 | ||||
Transfers from Level 3 | [4] | 0 | |||
Transfers to Level 3 | [4] | 0 | |||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [4] | 0 | |||
Gains (losses) included in net income | |||||
Included in other-than-temporary impairment (''OTTI'') on securities | [1] | (1,720) | |||
Included in change in fair value of investments in excess mortgage servicing rights | [1] | 0 | |||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | [1] | 0 | |||
Included in change in fair value of investments in servicer advances | 0 | ||||
Included in gain on settlement of investments, net | 3,808 | ||||
Included in other income | [1] | 0 | |||
Gains (losses) included in other comprehensive income, net of tax | [2] | (560) | |||
Interest income | 23,196 | ||||
Purchases, sales, repayments and transfers | |||||
Purchases | 490,438 | ||||
Proceeds from sales | (389,719) | ||||
Proceeds from repayments | (51,344) | ||||
De-linked transactions | [4] | 0 | |||
Balance, ending | 913,931 | 913,931 | |||
Recurring Basis [Member] | Level 3 [Member] | Non-Agency RMBS [Member] | Accounting Standards Update 2014-11 [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [3] | 116,832 | |||
Purchases, sales, repayments and transfers | |||||
De-linked transactions | [3] | 116,832 | |||
Recurring Basis [Member] | Level 3 [Member] | Servicer Advances [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | 3,270,839 | ||||
Transfers from Level 3 | [4] | 0 | |||
Transfers to Level 3 | [4] | 0 | |||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [4] | 0 | |||
Gains (losses) included in net income | |||||
Included in other-than-temporary impairment (''OTTI'') on securities | [1] | 0 | |||
Included in change in fair value of investments in excess mortgage servicing rights | [1] | 0 | |||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | [1] | 0 | |||
Included in change in fair value of investments in servicer advances | 16,893 | ||||
Included in gain on settlement of investments, net | 0 | ||||
Included in other income | [1] | 0 | |||
Gains (losses) included in other comprehensive income, net of tax | [2] | 0 | |||
Interest income | 150,937 | ||||
Purchases, sales, repayments and transfers | |||||
Purchases | 11,404,992 | ||||
Proceeds from sales | 0 | ||||
Proceeds from repayments | (6,661,261) | ||||
De-linked transactions | [4] | 0 | |||
Balance, ending | 8,182,400 | 8,182,400 | |||
Recurring Basis [Member] | Level 3 [Member] | Servicer Advances [Member] | Accounting Standards Update 2014-11 [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [3] | 0 | |||
Purchases, sales, repayments and transfers | |||||
De-linked transactions | [3] | 0 | |||
Recurring Basis [Member] | Level 3 [Member] | MSRs Agency [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | [5] | 217,519 | |||
Transfers from Level 3 | [4],[5] | 0 | |||
Transfers to Level 3 | [4],[5] | 0 | |||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [4],[5] | 0 | |||
Gains (losses) included in net income | |||||
Included in other-than-temporary impairment (''OTTI'') on securities | [1],[5] | 0 | |||
Included in change in fair value of investments in excess mortgage servicing rights | [1],[5] | 5,425 | |||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | [1],[5] | 0 | |||
Included in change in fair value of investments in servicer advances | [5] | 0 | |||
Included in gain on settlement of investments, net | [5] | 0 | |||
Included in other income | [1],[5] | 1,577 | |||
Gains (losses) included in other comprehensive income, net of tax | [2],[5] | 0 | |||
Interest income | [5] | 13,176 | |||
Purchases, sales, repayments and transfers | |||||
Purchases | [5] | 129,098 | |||
Proceeds from sales | [5] | 0 | |||
Proceeds from repayments | [5] | (25,268) | |||
De-linked transactions | [4],[5] | 0 | |||
Balance, ending | [5] | 341,527 | 341,527 | ||
Recurring Basis [Member] | Level 3 [Member] | MSRs Agency [Member] | Accounting Standards Update 2014-11 [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [3],[5] | 0 | |||
Purchases, sales, repayments and transfers | |||||
De-linked transactions | [3],[5] | 0 | |||
Recurring Basis [Member] | Level 3 [Member] | MSRs Agency [Member] | Excess MSRs Investees [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | [5],[6] | 232,618 | |||
Transfers from Level 3 | [4],[5],[6] | 0 | |||
Transfers to Level 3 | [4],[5],[6] | 0 | |||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [4],[5],[6] | 0 | |||
Gains (losses) included in net income | |||||
Included in other-than-temporary impairment (''OTTI'') on securities | [1],[5],[6] | 0 | |||
Included in change in fair value of investments in excess mortgage servicing rights | [1],[5],[6] | 0 | |||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | [1],[5],[6] | 8,016 | |||
Included in change in fair value of investments in servicer advances | [5],[6] | 0 | |||
Included in gain on settlement of investments, net | [5],[6] | 0 | |||
Included in other income | [1],[5],[6] | 0 | |||
Gains (losses) included in other comprehensive income, net of tax | [2],[5],[6] | 0 | |||
Interest income | [5],[6] | 0 | |||
Purchases, sales, repayments and transfers | |||||
Purchases | [5],[6] | 0 | |||
Proceeds from sales | [5],[6] | 0 | |||
Proceeds from repayments | [5],[6] | (24,522) | |||
De-linked transactions | [4],[5],[6] | 0 | |||
Balance, ending | [5],[6] | 216,112 | 216,112 | ||
Recurring Basis [Member] | Level 3 [Member] | MSRs Agency [Member] | Excess MSRs Investees [Member] | Accounting Standards Update 2014-11 [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [3],[5],[6] | 0 | |||
Purchases, sales, repayments and transfers | |||||
De-linked transactions | [3],[5],[6] | 0 | |||
Recurring Basis [Member] | Level 3 [Member] | MSRs Non-Agency [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | [5] | 200,214 | |||
Transfers from Level 3 | [4],[5] | 0 | |||
Transfers to Level 3 | [4],[5] | 0 | |||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [4],[5] | 98,258 | |||
Gains (losses) included in net income | |||||
Included in other-than-temporary impairment (''OTTI'') on securities | [1],[5] | 0 | |||
Included in change in fair value of investments in excess mortgage servicing rights | [1],[5] | (6,830) | |||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | [1],[5] | 0 | |||
Included in change in fair value of investments in servicer advances | [5] | 0 | |||
Included in gain on settlement of investments, net | [5] | 0 | |||
Included in other income | [1],[5] | 0 | |||
Gains (losses) included in other comprehensive income, net of tax | [2],[5] | 0 | |||
Interest income | [5] | 36,221 | |||
Purchases, sales, repayments and transfers | |||||
Purchases | [5] | 919,531 | |||
Proceeds from sales | [5] | 0 | |||
Proceeds from repayments | [5] | (84,499) | |||
De-linked transactions | [4],[5] | 98,258 | |||
Balance, ending | [5] | 1,162,895 | 1,162,895 | ||
Recurring Basis [Member] | Level 3 [Member] | MSRs Non-Agency [Member] | Accounting Standards Update 2014-11 [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [3],[5] | 0 | |||
Purchases, sales, repayments and transfers | |||||
De-linked transactions | [3],[5] | 0 | |||
Recurring Basis [Member] | Level 3 [Member] | MSRs Non-Agency [Member] | Excess MSRs Investees [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning | [5],[6] | 98,258 | |||
Transfers from Level 3 | [4],[5],[6] | 0 | |||
Transfers to Level 3 | [4],[5],[6] | 0 | |||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [4],[5],[6] | (98,258) | |||
Gains (losses) included in net income | |||||
Included in other-than-temporary impairment (''OTTI'') on securities | [1],[5],[6] | 0 | |||
Included in change in fair value of investments in excess mortgage servicing rights | [1],[5],[6] | 0 | |||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | [1],[5],[6] | 0 | |||
Included in change in fair value of investments in servicer advances | [5],[6] | 0 | |||
Included in gain on settlement of investments, net | [5],[6] | 0 | |||
Included in other income | [1],[5],[6] | 0 | |||
Gains (losses) included in other comprehensive income, net of tax | [2],[5],[6] | 0 | |||
Interest income | [5],[6] | 0 | |||
Purchases, sales, repayments and transfers | |||||
Purchases | [5],[6] | 0 | |||
Proceeds from sales | [5],[6] | 0 | |||
Proceeds from repayments | [5],[6] | 0 | |||
De-linked transactions | [4],[5],[6] | (98,258) | |||
Balance, ending | [5],[6] | $ 0 | 0 | ||
Recurring Basis [Member] | Level 3 [Member] | MSRs Non-Agency [Member] | Excess MSRs Investees [Member] | Accounting Standards Update 2014-11 [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [3],[5],[6] | 0 | |||
Purchases, sales, repayments and transfers | |||||
De-linked transactions | [3],[5],[6] | $ 0 | |||
[1] | 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. | ||||
[2] | These gains (losses) were included in net unrealized gain (loss) on securities in the Condensed Consolidated Statements of Comprehensive Income. | ||||
[3] | See Note 10 for a discussion of transactions formerly accounted for as linked transactions. | ||||
[4] | Transfers are assumed to occur at the beginning of each respective period. | ||||
[5] | Includes the Recapture Agreement for each respective pool. | ||||
[6] | Amounts represent New Residential’s portion of the Excess MSRs held by the respective joint ventures in which New Residential has a 50% interest. |
FAIR VALUE OF FINANCIAL INST110
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Financial Assets Measured at Fair Value on a Recurring Basis using Level 3 Inputs (Footnote) (Details) | Jun. 30, 2015 | Dec. 31, 2014 |
Excess MSRs Investees [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
New Residential’s ownership | 50.00% | 50.00% |
FAIR VALUE OF FINANCIAL INST111
FAIR VALUE OF FINANCIAL INSTRUMENTS - Summary of Certain Information Regarding Inputs used in Valuing Excess MSRs Owned Directly and through Equity Method Investees (Details) | 6 Months Ended | |
Jun. 30, 2015 | ||
Directly Held (Note 4) | ||
Prepayment Speed | [1],[2] | 10.40% |
Delinquency | [2],[3] | 4.60% |
Recapture Rate | [2],[4] | 12.40% |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 18 |
Directly Held [Member] | ||
Directly Held (Note 4) | ||
Prepayment Speed | [1],[2] | 10.10% |
Delinquency | [2],[3] | 4.20% |
Recapture Rate | [2],[4] | 7.90% |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 18 |
Directly Held [Member] | Agency [Member] | ||
Directly Held (Note 4) | ||
Prepayment Speed | [1],[2] | 10.30% |
Delinquency | [2],[3] | 4.20% |
Recapture Rate | [2],[4] | 31.40% |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 22 |
Directly Held [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||
Directly Held (Note 4) | ||
Prepayment Speed | [1],[2] | 10.60% |
Delinquency | [2],[3] | 4.20% |
Recapture Rate | [2],[4] | 32.70% |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 22 |
Directly Held [Member] | Agency [Member] | Recapture Agreements [Member] | ||
Directly Held (Note 4) | ||
Prepayment Speed | [1],[2] | 7.70% |
Delinquency | [2],[3] | 4.60% |
Recapture Rate | [2],[4] | 20.00% |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 24 |
Directly Held [Member] | Non-Agency [Member] | ||
Directly Held (Note 4) | ||
Prepayment Speed | [1],[2],[6] | 10.00% |
Recapture Rate | [2],[4],[6] | 2.30% |
Excess Mortgage Servicing Amount (bps) | [2],[5],[6] | 17 |
Directly Held [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | ||
Directly Held (Note 4) | ||
Prepayment Speed | [1],[2],[6] | 12.70% |
Recapture Rate | [2],[4],[6] | 10.30% |
Excess Mortgage Servicing Amount (bps) | [2],[5],[6] | 21 |
Directly Held [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||
Directly Held (Note 4) | ||
Prepayment Speed | [1],[2],[6] | 7.50% |
Recapture Rate | [2],[4],[6] | 20.00% |
Excess Mortgage Servicing Amount (bps) | [2],[5],[6] | 20 |
Directly Held [Member] | Non-Agency [Member] | Ocwen Serviced Pools [Member] | ||
Directly Held (Note 4) | ||
Prepayment Speed | [1],[2],[6] | 9.40% |
Recapture Rate | [2],[4],[6] | 0.00% |
Excess Mortgage Servicing Amount (bps) | [2],[5],[6] | 14 |
Held through Equity Method Investees [Member] | Agency [Member] | ||
Directly Held (Note 4) | ||
Prepayment Speed | [1],[2] | 11.90% |
Delinquency | [2],[3] | 6.10% |
Recapture Rate | [2],[4] | 31.20% |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 19 |
Held through Equity Method Investees [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||
Directly Held (Note 4) | ||
Prepayment Speed | [1],[2] | 12.70% |
Delinquency | [2],[3] | 6.40% |
Recapture Rate | [2],[4] | 33.40% |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 19 |
Held through Equity Method Investees [Member] | Agency [Member] | Recapture Agreements [Member] | ||
Directly Held (Note 4) | ||
Prepayment Speed | [1],[2] | 7.70% |
Delinquency | [2],[3] | 4.50% |
Recapture Rate | [2],[4] | 20.00% |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 23 |
[1] | Projected annualized weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. | |
[2] | Weighted by amortized cost basis of the mortgage loan portfolio. | |
[3] | Projected percentage of mortgage loans in the pool that will miss their mortgage payments. | |
[4] | Percentage of voluntarily prepaid loans that are expected to be refinanced by Nationstar. | |
[5] | Weighted average total mortgage servicing amount in excess of the basic fee. | |
[6] | For certain pools, the Excess MSR will be paid on the total UPB of the mortgage portfolio (including both performing and delinquent loans until REO). For these pools, no delinquency assumption is used. |
FAIR VALUE OF FINANCIAL INST112
FAIR VALUE OF FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Assets measured at fair value on a nonrecurring basis | $ 259,200 | $ 259,200 | $ 666,600 | |
Broker price discount | 10.00% | 10.00% | ||
Notes payable | $ 7,883,061 | $ 7,883,061 | 2,908,763 | |
Servicer Advances [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Estimated fair value of note payable | [1] | 7,908,800 | 7,908,800 | |
Notes payable | [1],[2] | 7,883,100 | 7,883,100 | |
Residential Mortgage Loans [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Assets measured at fair value on a nonrecurring basis | 233,900 | 233,900 | 610,100 | |
Real Estate Acquired in Satisfaction of Debt [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Assets measured at fair value on a nonrecurring basis | $ 25,300 | 25,300 | $ 56,500 | |
Loans Held-for-sale [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Asset fair value reduction | 2,700 | |||
Real Estate Owned [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Asset fair value reduction | $ 2,900 | |||
MSRs [Member] | Excess MSRs Investees [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Weighted average discount rate, used to value investments in excess MSRs | 9.80% | 9.80% | ||
[1] | $3.1 billion face amount of the notes have a fixed rate while the remaining notes bear interest equal to the sum of (i) a floating rate index rate equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 1.0% to 2.0%. | |||
[2] | Net of deferred financing costs associated with the adoption of ASU No. 2015-03. |
FAIR VALUE OF FINANCIAL INST113
FAIR VALUE OF FINANCIAL INSTRUMENTS - Summary of Certain Information Regarding the Inputs used in Valuing the Servicer Advances (Details) - Jun. 30, 2015 | Total | |
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Prepayment Speed | [1],[2] | 10.40% |
Delinquency | [2],[3] | 4.60% |
Mortgage Servicing Amount (bps) | [2],[4] | 18 |
Servicer Advances [Member] | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2.40% | |
Prepayment Speed | 10.60% | |
Delinquency | 14.20% | |
Mortgage Servicing Amount (bps) | [5] | 19.54 |
Discount Rate | 5.50% | |
[1] | Projected annualized weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. | |
[2] | Weighted by amortized cost basis of the mortgage loan portfolio. | |
[3] | Projected percentage of mortgage loans in the pool that will miss their mortgage payments. | |
[4] | Weighted average total mortgage servicing amount in excess of the basic fee. | |
[5] | Mortgage servicing amount excludes the amounts New Residential pays its servicers as a monthly servicing fee. |
FAIR VALUE OF FINANCIAL INST114
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Securities Valuation Methodology and Results (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Outstanding Face Amount | $ 3,328,343 | |||
Amortized Cost Basis | 1,893,519 | |||
Total Fair Value | 1,907,961 | |||
Multiple Quotes [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Total Fair Value | [1] | 1,895,407 | ||
Single Quote [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Total Fair Value | [2] | 12,554 | ||
Agency RMBS [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Outstanding Face Amount | [3],[4] | 958,141 | ||
Amortized Cost Basis | [3],[4] | 991,514 | ||
Agency RMBS [Member] | Level 2 [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Total Fair Value | 994,030 | |||
Agency RMBS [Member] | Level 2 [Member] | Multiple Quotes [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Total Fair Value | [1] | 994,030 | ||
Agency RMBS [Member] | Level 2 [Member] | Single Quote [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Total Fair Value | [2] | 0 | ||
Non-Agency RMBS [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Outstanding Face Amount | 2,370,202 | [5],[6],[7] | $ 1,896,150 | |
Amortized Cost Basis | [5],[6],[7] | 902,005 | ||
Non-Agency RMBS [Member] | Level 3 [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Total Fair Value | [5] | 913,931 | ||
Non-Agency RMBS [Member] | Level 3 [Member] | Multiple Quotes [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Total Fair Value | [1],[5] | 901,377 | ||
Non-Agency RMBS [Member] | Level 3 [Member] | Single Quote [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Total Fair Value | [2],[5] | $ 12,554 | ||
[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. New Residential’s investments in Agency RMBS are classified within Level 2 of the fair value hierarchy because the market for these securities is very active and market prices are readily observable. | |||
[2] | Management was unable to obtain quotations from more than one source on these securities. The one source was the party that sold New Residential the security. | |||
[3] | 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”). | |||
[4] | The total outstanding face amount was $753.8 million for fixed rate securities and $204.3 million for floating rate securities as of June 30, 2015. | |||
[5] | Includes New Residential’s investments in interest-only notes for which the fair value option for financial instruments was elected. | |||
[6] | Includes Other ABS consisting primarily of interest-only securities which New Residential elected to carry at fair value and record changes to valuation through the income statement and representing 7.4% of the carrying value of the Non-Agency RMBS portfolio. Gross Unrealized Weighted AverageAsset Type Outstanding Face Amount Amortized Cost Basis Gains Losses Carrying Value Number of Securities Rating Coupon Yield Life (Years) Principal SubordinationOther ABS $1,222,088 $67,980 $1,472 $(1,840) $67,612 9 AA+ 1.87% 7.64% 3.6 N/A | |||
[7] | The total outstanding face amount was $1.4 billion (including $1.4 billion of residual and interest-only notional amount) for fixed rate securities and $954.6 million (including $99.8 million of residual and interest-only notional amount) for floating rate securities as of June 30, 2015. |
FAIR VALUE OF FINANCIAL INST115
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Inputs Used in Valuing Residential Mortgage Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Mortgage Loans on Real Estate [Line Items] | |||||
Valuation Provision/ (Reversal) In Current Year | $ 4,772 | $ 293 | $ 5,749 | $ 457 | |
Weighted Average Life (Years) | 11 months 2 days | ||||
Prepayment Rate | [1],[2] | 10.40% | |||
CDR | [2],[3] | 4.60% | |||
Reverse Mortgage Loans [Member] | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Weighted Average Life (Years) | [4],[5],[6] | 4 years 27 days | |||
Performing Loans [Member] | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Weighted Average Life (Years) | [6],[7] | 5 years 8 months 28 days | |||
Residential Mortgage [Member] | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Valuation Provision/ (Reversal) In Current Year | $ 304 | ||||
Discount Rate | 5.50% | ||||
Weighted Average Life (Years) | [8] | 3 years 2 months 29 days | |||
Loss Severity | [9] | 4.10% | |||
Residential Mortgage [Member] | Reverse Mortgage Loans [Member] | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Valuation Provision/ (Reversal) In Current Year | [10] | $ 186 | |||
Discount Rate | [10] | 10.00% | |||
Weighted Average Life (Years) | [8],[10] | 4 years 27 days | |||
Loss Severity | [9],[10] | 6.90% | |||
Residential Mortgage [Member] | Performing Loans [Member] | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Valuation Provision/ (Reversal) In Current Year | $ 118 | ||||
Discount Rate | 7.90% | ||||
Weighted Average Life (Years) | [8] | 5 years 8 months 28 days | |||
Prepayment Rate | 5.60% | ||||
CDR | [11] | 2.90% | |||
Loss Severity | [9] | 56.90% | |||
Residential Mortgage [Member] | Non-Performing Loans [Member] | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Discount Rate | 5.00% | ||||
Weighted Average Life (Years) | [8] | 3 years | |||
Prepayment Rate | 0.00% | ||||
Loss Severity | [9] | 0.00% | |||
Residential Mortgage [Member] | Carrying Value [Member] | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Carrying Value | 331,878 | $ 331,878 | |||
Residential Mortgage [Member] | Carrying Value [Member] | Reverse Mortgage Loans [Member] | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Carrying Value | [10] | 21,601 | 21,601 | ||
Residential Mortgage [Member] | Carrying Value [Member] | Performing Loans [Member] | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Carrying Value | 21,140 | 21,140 | |||
Residential Mortgage [Member] | Carrying Value [Member] | Non-Performing Loans [Member] | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Carrying Value | 289,137 | 289,137 | |||
Residential Mortgage [Member] | Fair Value [Member] | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Fair Value | 334,094 | 334,094 | |||
Residential Mortgage [Member] | Fair Value [Member] | Reverse Mortgage Loans [Member] | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Fair Value | [10] | 21,601 | 21,601 | ||
Residential Mortgage [Member] | Fair Value [Member] | Performing Loans [Member] | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Fair Value | 22,269 | 22,269 | |||
Residential Mortgage [Member] | Fair Value [Member] | Non-Performing Loans [Member] | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Fair Value | 290,224 | $ 290,224 | |||
Fair Value, Measurements, Nonrecurring [Member] | Non-Performing Loans [Member] | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Discount Rate | 5.60% | ||||
Weighted Average Life (Years) | 3 years 21 days | ||||
Prepayment Rate | 2.10% | ||||
Loss Severity | 29.40% | ||||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value [Member] | Non-Performing Loans [Member] | |||||
Mortgage Loans on Real Estate [Line Items] | |||||
Fair Value | $ 233,881 | $ 233,881 | |||
[1] | Projected annualized weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. | ||||
[2] | Weighted by amortized cost basis of the mortgage loan portfolio. | ||||
[3] | Projected percentage of mortgage loans in the pool that will miss their mortgage payments. | ||||
[4] | FICO scores are not used in determining how much a borrower can access via a reverse mortgage loan. | ||||
[5] | Represents a 70% interest that New Residential holds in reverse mortgage loans. The average loan balance outstanding based on total UPB is $0.3 million. 74% 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. | ||||
[6] | The weighted average life is based on the expected timing of the receipt of cash flows. | ||||
[7] | Includes loans that are current or less than 30 days past due at acquisition where New Residential expects to collect all contractually required principal and interest payments. Presented net of unamortized discounts of $1.6 million. | ||||
[8] | The weighted average life is based on the expected timing of the receipt of cash flows. | ||||
[9] | Loss severity is the expected amount of future realized losses resulting from the ultimate liquidation of a particular loan, expressed as the net amount of loss relative to the outstanding loan balance. | ||||
[10] | Carrying value and fair value represent a 70% interest New Residential holds in the reverse mortgage loans. | ||||
[11] | Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance. |
FAIR VALUE OF FINANCIAL INST116
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Inputs Used in Valuing Residential Mortgage Loans (Footnote) (Details) | 1 Months Ended | 6 Months Ended |
Feb. 28, 2013 | Jun. 30, 2015 | |
Reverse Mortgage Loans [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest in reverse mortgage loans | 70.00% | 70.00% |
EQUITY AND EARNINGS PER SHARE -
EQUITY AND EARNINGS PER SHARE - Narrative (Details) $ / shares in Units, $ in Thousands | May. 14, 2015USD ($)$ / shares | Mar. 16, 2015USD ($)$ / shares | Dec. 18, 2014USD ($)$ / shares | Oct. 17, 2014shares | Jul. 31, 2015employeeshares | Jun. 30, 2015USD ($)employee$ / sharesshares | Apr. 30, 2015USD ($)employee$ / sharesshares | Oct. 31, 2014 | Jun. 30, 2015employee$ / sharesshares | Jun. 30, 2014$ / sharesshares | Jun. 30, 2015USD ($)employee$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | Jun. 30, 2015employee$ / sharesshares | Dec. 31, 2014shares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||
Reverse stock split | 0.5 | 0.5 | |||||||||||||
Common stock outstanding, prior to stock split (in shares) | 282,800,000 | ||||||||||||||
Common stock, shares outstanding (in shares) | 141,400,000 | 230,438,639 | 230,438,639 | 230,438,639 | 230,438,639 | 141,434,905 | |||||||||
Issuance of common stock | $ | $ 442,600 | $ 436,100 | $ 882,099 | $ 173,201 | |||||||||||
Fair value assumption, risk free rate | 2.61% | 2.02% | |||||||||||||
Fair value assumption, dividend yield | 7.81% | 6.71% | |||||||||||||
Fair value assumption, volatility | 23.73% | 24.04% | |||||||||||||
Fair value assumption term | 10 years | 10 years | |||||||||||||
Options exercised (in shares) | [1] | 7,499,518 | |||||||||||||
Dividend declared per share (in dollars per share) | $ / shares | $ 0.45 | $ 0.38 | $ 0.38 | $ 0.45 | $ 0.5 | $ 0.83 | $ 0.85 | ||||||||
Dividends | $ | $ 89,500 | $ 53,700 | $ 53,700 | $ 143,266 | |||||||||||
Share price (in dollars per share) | $ / shares | $ 15.24 | $ 15.24 | $ 15.24 | $ 15.24 | |||||||||||
Dilutive common stock equivalents (in shares) | 4,259,059 | 3,869,894 | |||||||||||||
Dilutive Securities, Common Stock Equivalents, Number Of Shares Outstanding | 3,202,674 | 3,228,568 | |||||||||||||
Executive Officer [Member] | |||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||
Number of employees | employee | 1 | 1 | 1 | 1 | 1 | ||||||||||
Former Employee Of Manager [Member] | Subsequent Event [Member] | |||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||
Number of employees | employee | 1 | ||||||||||||||
Fortress [Member] | |||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||
Common stock, shares outstanding (in shares) | 2,400,000 | 2,400,000 | 2,400,000 | 2,400,000 | |||||||||||
Common Stock [Member] | |||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||
Common stock issued in public offering (in shares) | 27,900,000 | 29,213,020 | |||||||||||||
Public offering share price (in dollars per share) | $ / shares | $ 15.88 | $ 15.25 | $ 15.88 | $ 15.88 | $ 15.88 | ||||||||||
Options granted to purchase number of shares (in shares) | 2,800,000 | 5,750,000 | |||||||||||||
Fair value of options granted to purchase shares | $ | $ 3,700 | $ 8,900 | |||||||||||||
Options exercised (in shares) | 6,200,000 | ||||||||||||||
Aggregate shares in cashless exercise (in shares) | 3,600,000 | ||||||||||||||
Common Stock [Member] | Executive Officer [Member] | |||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||
Common stock issued in public offering (in shares) | 9,100 | 250,000 | |||||||||||||
Common Stock [Member] | Former Employee Of Manager [Member] | Subsequent Event [Member] | |||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||
Options exercised (in shares) | 37,500 | ||||||||||||||
Aggregate shares in cashless exercise (in shares) | 20,227 | ||||||||||||||
[1] | Exercised by employees of Fortress, subsequent to their assignment, or by directors. The options exercised had an intrinsic value of $60.0 million. |
EQUITY AND EARNINGS PER SHAR118
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options (Details) | Jun. 30, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 12,418,607 |
Manager [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 10,901,300 |
Manager's Employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 1,512,307 |
Independent Directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 5,000 |
Total Affiliates [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 12,418,607 |
Issued Prior to 2011 [Member] | Manager [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 343,440 |
Issued Prior to 2011 [Member] | Manager's Employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 90,560 |
Issued Prior to 2011 [Member] | Independent Directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 1,000 |
Issued Prior to 2011 [Member] | Total Affiliates [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 435,000 |
Issued in 2011 - 2015 [Member] | Manager [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 10,557,860 |
Issued in 2011 - 2015 [Member] | Manager's Employees [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 1,421,747 |
Issued in 2011 - 2015 [Member] | Independent Directors [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 4,000 |
Issued in 2011 - 2015 [Member] | Total Affiliates [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of options (in shares) | 11,983,607 |
EQUITY AND EARNINGS PER SHAR119
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options - Period End (Details) - Jun. 30, 2015 - USD ($) $ / shares in Units, $ in Millions | Total | Total | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Date of grant of exercised options | [1],[2] | ||
Date of grant of expired options | [2] | ||
Number of options (in shares) | 12,418,607 | 12,418,607 | |
Exercised (in shares) | [1] | (7,499,518) | |
Expired unexercised (in shares) | (792,553) | ||
Options Exercisable (in shares) | 3,388,863 | 3,388,863 | |
Weighted Average Exercise Price, Exercised (in dollars per share) | [1],[3] | $ 7.60 | |
Independent Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options (in shares) | 5,000 | 5,000 | |
Independent Directors [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | Directors | ||
Date of Grant | [2] | Various | |
Number of options (in shares) | 6,000 | 6,000 | |
Options Exercisable (in shares) | 5,000 | 5,000 | |
Weighted Average Exercise Price (in dollars per share) | [3] | $ 17.54 | $ 17.54 |
Intrinsic Value | $ 0 | $ 0 | |
2003 - 2007 [Member] | Manager [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [4] | Manager | |
Date of Grant | [2],[4] | 2003 - 2007 | |
Number of options (in shares) | [4] | 1,226,555 | 1,226,555 |
Options Exercisable (in shares) | [4] | 434,000 | 434,000 |
Weighted Average Exercise Price (in dollars per share) | [3],[4] | $ 31.36 | $ 31.36 |
Intrinsic Value | [4] | $ 0 | $ 0 |
March 2011 [Member] | Manager [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [4] | Manager | |
Date of Grant | [2],[4] | Mar11 | |
Number of options (in shares) | [4] | 838,417 | 838,417 |
Options Exercisable (in shares) | [4] | 0 | 0 |
Weighted Average Exercise Price (in dollars per share) | [3],[4] | $ 6.58 | $ 6.58 |
Intrinsic Value | [4] | $ 0 | $ 0 |
September 2011 [Member] | Manager [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [4] | Manager | |
Date of Grant | [2],[4] | Sep11 | |
Number of options (in shares) | [4] | 1,269,917 | 1,269,917 |
Options Exercisable (in shares) | [4] | 0 | 0 |
Weighted Average Exercise Price (in dollars per share) | [3],[4] | $ 4.98 | $ 4.98 |
Intrinsic Value | [4] | $ 0 | $ 0 |
April 2012 [Member] | Manager [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [4] | Manager | |
Date of Grant | [2],[4] | Apr12 | |
Number of options (in shares) | [4] | 948,750 | 948,750 |
Options Exercisable (in shares) | [4] | 17,500 | 17,500 |
Weighted Average Exercise Price (in dollars per share) | [3],[4] | $ 6.82 | $ 6.82 |
Intrinsic Value | [4] | $ 0.1 | $ 0.1 |
May 2012 [Member] | Manager [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [4] | Manager | |
Date of Grant | [2],[4] | May12 | |
Number of options (in shares) | [4] | 1,150,000 | 1,150,000 |
Options Exercisable (in shares) | [4] | 21,750 | 21,750 |
Weighted Average Exercise Price (in dollars per share) | [3],[4] | $ 7.34 | $ 7.34 |
Intrinsic Value | [4] | $ 0.2 | $ 0.2 |
July 2012 [Member] | Manager [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [4] | Manager | |
Date of Grant | [2],[4] | Jul12 | |
Number of options (in shares) | [4] | 1,265,000 | 1,265,000 |
Options Exercisable (in shares) | [4] | 23,250 | 23,250 |
Weighted Average Exercise Price (in dollars per share) | [3],[4] | $ 7.34 | $ 7.34 |
Intrinsic Value | [4] | $ 0.2 | $ 0.2 |
January 2013 [Member] | Manager [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [4] | Manager | |
Date of Grant | [2],[4] | Jan13 | |
Number of options (in shares) | [4] | 2,875,000 | 2,875,000 |
Options Exercisable (in shares) | [4] | 759,866 | 759,866 |
Weighted Average Exercise Price (in dollars per share) | [3],[4] | $ 10.24 | $ 10.24 |
Intrinsic Value | [4] | $ 3.8 | $ 3.8 |
February 2013 [Member] | Manager [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [4] | Manager | |
Date of Grant | [2],[4] | Feb13 | |
Number of options (in shares) | [4] | 1,150,000 | 1,150,000 |
Options Exercisable (in shares) | [4] | 1,073,331 | 1,073,331 |
Weighted Average Exercise Price (in dollars per share) | [3],[4] | $ 11.48 | $ 11.48 |
Intrinsic Value | [4] | $ 4 | $ 4 |
April 2014 [Member] | Manager [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [4] | Manager | |
Date of Grant | [2],[4] | Apr14 | |
Number of options (in shares) | [4] | 1,437,500 | 1,437,500 |
Options Exercisable (in shares) | [4] | 670,833 | 670,833 |
Weighted Average Exercise Price (in dollars per share) | [3],[4] | $ 12.20 | $ 12.20 |
Intrinsic Value | [4] | $ 2 | $ 2 |
April 2015 [Member] | Manager [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [4] | Manager | |
Date of Grant | [2],[4] | Apr15 | |
Number of options (in shares) | [4] | 2,828,698 | 2,828,698 |
Options Exercisable (in shares) | [4] | 188,580 | 188,580 |
Weighted Average Exercise Price (in dollars per share) | [3],[4] | $ 15.25 | $ 15.25 |
Intrinsic Value | [4] | $ 0 | $ 0 |
April 2015 [Member] | Manager [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [4] | Manager | |
Date of Grant | [2],[4] | Apr15 | |
Number of options (in shares) | [4] | 2,921,302 | 2,921,302 |
Options Exercisable (in shares) | [4] | 194,753 | 194,753 |
Weighted Average Exercise Price (in dollars per share) | [3],[4] | $ 15.25 | $ 15.25 |
Intrinsic Value | [4] | $ 0 | $ 0 |
June 2015 [Member] | Manager [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [4] | Manager | |
Date of Grant | [2],[4] | Jun15 | |
Number of options (in shares) | [4] | 2,793,539 | 2,793,539 |
Options Exercisable (in shares) | [4] | 0 | 0 |
Weighted Average Exercise Price (in dollars per share) | [3],[4] | $ 15.88 | $ 15.88 |
Intrinsic Value | [4] | $ 0 | $ 0 |
[1] | Exercised by employees of Fortress, subsequent to their assignment, or by directors. The options exercised had an intrinsic value of $60.0 million. | ||
[2] | Options expire on the tenth anniversary from date of grant. | ||
[3] | The strike prices are subject to adjustment in connection with return of capital dividends. | ||
[4] | The Manager assigned certain of its options to Fortress’s employees as follows: Date of Grant Range of StrikePrices Total UnexercisedInception to Date2005-2007 $29.92 to $33.80 90,5602012 $6.82 to $7.34 62,5012013 $10.24 to $11.48 1,100,4962014 $12.20 258,750Total 1,512,307 |
EQUITY AND EARNINGS PER SHAR120
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options - Period End (Footnote) (Details) $ in Millions | 30 Months Ended |
Jun. 30, 2015USD ($) | |
Equity and Earnings Per Share [Abstract] | |
Intrinsic value of options exercised | $ 60 |
EQUITY AND EARNINGS PER SHAR121
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options - Options Assigned (Details) - Jun. 30, 2015 - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Unexercised Inception to Date (in shares) | 12,418,607 |
Options Granted in 2005 to 2007 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Unexercised Inception to Date (in shares) | 90,560 |
Options Granted in 2005 to 2007 [Member] | Lower Range [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Date of Grant | 2,005 |
Strike Price (in dollars per share) | $ 29.92 |
Options Granted in 2005 to 2007 [Member] | Upper Range [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Date of Grant | 2,007 |
Strike Price (in dollars per share) | $ 33.80 |
Options Granted in 2012 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Date of Grant | 2,012 |
Total Unexercised Inception to Date (in shares) | 62,501 |
Options Granted in 2012 [Member] | Lower Range [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Strike Price (in dollars per share) | $ 6.82 |
Options Granted in 2012 [Member] | Upper Range [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Strike Price (in dollars per share) | $ 7.34 |
Options Granted in 2013 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Date of Grant | 2,013 |
Total Unexercised Inception to Date (in shares) | 1,100,496 |
Options Granted in 2013 [Member] | Lower Range [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Strike Price (in dollars per share) | $ 10.24 |
Options Granted in 2013 [Member] | Upper Range [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Strike Price (in dollars per share) | $ 11.48 |
Options Granted in 2014 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Date of Grant | 2,014 |
Strike Price (in dollars per share) | $ 12.20 |
Total Unexercised Inception to Date (in shares) | 258,750 |
Options Assigned [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Unexercised Inception to Date (in shares) | 1,512,307 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - lawsuit | 1 Months Ended | 3 Months Ended |
Feb. 13, 2015 | Mar. 20, 2015 | |
Putative Class Action Lawsuits [Member] | ||
Loss Contingencies [Line Items] | ||
Number of claims | 3 | |
Shareholder Derivative Actions [Member] | ||
Loss Contingencies [Line Items] | ||
Number of claims | 2 |
TRANSACTIONS WITH AFFILIATES123
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES - Schedule of Affiliate Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||||
Due to Affiliate, Total | $ 9,670 | $ 9,670 | $ 57,424 | |||
Management fees | 8,371 | $ 4,915 | 13,497 | $ 9,401 | ||
Incentive compensation | 2,391 | 18,863 | 6,084 | 22,201 | ||
FIG LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Management fees | 3,114 | 3,114 | 1,710 | |||
Incentive compensation | 6,084 | 6,084 | 54,334 | |||
Expense reimbursements and other | 472 | 472 | 1,380 | |||
Due to Affiliate, Total | 9,670 | 9,670 | $ 57,424 | |||
Management fees | 8,371 | 4,915 | 13,497 | 9,401 | ||
Incentive compensation | 2,391 | 18,863 | 6,084 | 22,201 | ||
Expense reimbursements | [1] | 125 | 125 | 250 | 250 | |
Total payments to affiliate | $ 10,887 | $ 23,903 | $ 19,831 | $ 31,852 | ||
[1] | Included in General and Administrative Expenses in the Condensed Consolidated Statements of Income. |
TRANSACTIONS WITH AFFILIATES124
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | May. 15, 2013 | |
Related Party Transaction [Line Items] | ||
Face amount of debt | $ 10,311,446 | |
Nationstar [Member] | Credit Concentration Risk [Member] | Investment Interest Income - Excess MSRs [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage of UPB of loans underlying investments | 63.00% | |
Nationstar [Member] | Credit Concentration Risk [Member] | Investment Interest Income - Servicer Advances [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage of UPB of loans underlying investments | 35.60% | |
FIG LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Management fee rate (percent) | 1.50% | |
Incentive compensation percentage | 25.00% | |
Interest rate for incentive compensation | 10.00% | |
Increase in incentive compensation to affiliate | $ 3,300 | |
Nationstar [Member] | ||
Related Party Transaction [Line Items] | ||
Unpaid Principal Balance | 86,000,000 | |
Nationstar [Member] | Residential Mortgage [Member] | ||
Related Party Transaction [Line Items] | ||
Unpaid Principal Balance | 309,900 | |
Nationstar [Member] | Real Estate Owned [Member] | ||
Related Party Transaction [Line Items] | ||
Unpaid Balance of Real Estate Owned | 19,300 | |
Nationstar [Member] | Non-Agency RMBS [Member] | ||
Related Party Transaction [Line Items] | ||
Face amount of debt | 2,300,000 | |
Unpaid Principal Balance | 8,800,000 | |
Nationstar [Member] | Agency RMBS [Member] | ||
Related Party Transaction [Line Items] | ||
Face amount of debt | $ 29,000 |
RECLASSIFICATION FROM ACCUMU125
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME - Summary of Amounts Reclassified out of Accumulated Other Comprehensive Income into Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain on settlement of investments, net | $ (1,201) | $ (52,539) | $ (15,968) | $ (56,896) |
Other-than-temporary impairment (“OTTI”) on securities | 649 | 615 | 1,720 | 943 |
Total reclassifications | (79,277) | (182,208) | (121,075) | (239,073) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain on settlement of investments, net | 17,921 | (57,284) | (6,776) | (61,776) |
Other-than-temporary impairment (“OTTI”) on securities | 649 | 615 | 1,720 | 943 |
Total reclassifications | $ 18,570 | $ (56,669) | $ (5,056) | $ (60,833) |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Current: | ||||
Federal | $ (106) | $ 2,236 | $ 630 | $ 2,453 |
State and Local | 64 | 1,514 | (1,092) | 1,584 |
Total Current Income Tax Expense (Benefit) | (42) | 3,750 | (462) | 4,037 |
Deferred: | ||||
Federal | 13,281 | 13,236 | 11,958 | 13,236 |
State and Local | 1,067 | 4,409 | (617) | 4,409 |
Total Deferred Income Tax Expense (Benefit) | 14,348 | 17,645 | 11,341 | 17,645 |
Total Income Tax Expense (Benefit) | $ 14,306 | $ 21,395 | $ 10,879 | $ 21,682 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | Apr. 06, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 |
Income Tax Disclosure [Abstract] | ||||
Increase to income tax provision | $ 2,300,000 | |||
Reserve for unrecognized tax benefits | $ 0 | |||
Benefit to income tax provision | $ 2,300,000 | |||
Increase in deferred tax asset | $ 186,800,000 | |||
Valuation allowance | $ 0 | |||
Deferred tax asset, net | $ 0 | $ 159,232,000 |
RECENT ACTIVITIES - Narrative (
RECENT ACTIVITIES - Narrative (Details) | Jul. 16, 2015USD ($) | Jun. 11, 2015USD ($) | May. 14, 2015USD ($)$ / shares | May. 11, 2015USD ($) | May. 05, 2015USD ($) | Apr. 16, 2015USD ($) | Mar. 16, 2015USD ($)$ / shares | Jan. 16, 2015USD ($) | Dec. 18, 2014USD ($)$ / shares | Aug. 09, 2015USD ($)agreement | Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2014$ / shares | Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares | Jan. 01, 2015USD ($) | Dec. 31, 2014 |
Subsequent Event [Line Items] | ||||||||||||||||
Recovered existing servicer advances | $ 6,587,781,000 | $ 3,062,259,000 | ||||||||||||||
Note payable | 138,400,000 | |||||||||||||||
Decrease in restricted cash | (32,737,000) | (3,989,000) | ||||||||||||||
Face amount of debt | $ 10,311,446,000 | 10,311,446,000 | ||||||||||||||
Repayments of repurchase agreements | $ 3,480,781,000 | $ 2,274,155,000 | ||||||||||||||
Notional amount of derivatives | $ 32,400,000 | |||||||||||||||
Dividend declared per share (in dollars per share) | $ / shares | $ 0.45 | $ 0.38 | $ 0.38 | $ 0.45 | $ 0.5 | $ 0.83 | $ 0.85 | |||||||||
Dividends | $ 89,500,000 | $ 53,700,000 | $ 53,700,000 | $ 143,266,000 | ||||||||||||
Servicer Advance Joint Venture [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Note payable | $ 2,400,000,000 | |||||||||||||||
Excess MSRs [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Total servicer advances funded | $ 72,400,000 | $ 26,900,000 | $ 3,500,000 | $ 2,600,000 | $ 23,800,000 | |||||||||||
Unpaid Principal Balance | $ 18,500,000,000 | $ 8,900,000,000 | $ 1,600,000,000 | $ 8,400,000,000 | ||||||||||||
Excess MSRs [Member] | Freddie Mac [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Percentage of Excess MSRs acquired | 33.30% | 33.30% | ||||||||||||||
Excess MSRs [Member] | Freddie Mac [Member] | Nationstar [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Percentage of Excess MSRs acquired | 33.30% | 33.30% | ||||||||||||||
Excess MSRs [Member] | SLS [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Percentage of Excess MSRs acquired | 50.00% | |||||||||||||||
Subsequent Event [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Number of interest rate swap agreements | agreement | 1 | |||||||||||||||
Notional amount of derivatives | $ 300,000,000 | |||||||||||||||
Subsequent Event [Member] | Non-Agency RMBS [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Face amount of securities purchased | 157,200,000 | |||||||||||||||
Purchase of real estate securities financed with repurchase agreements | 114,100,000 | |||||||||||||||
Face amount of instrument with extended maturity date | 490,800,000 | |||||||||||||||
Subsequent Event [Member] | Non-Agency RMBS [Member] | Repurchase Agreements [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Face amount of debt | 69,200,000 | |||||||||||||||
Subsequent Event [Member] | Agency RMBS Repurchase Agreements [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Face amount of instrument with extended maturity date | 206,900,000 | |||||||||||||||
Subsequent Event [Member] | Agency RMBS Repurchase Agreements [Member] | Repurchase Agreements [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Face amount of debt | 942,000,000 | |||||||||||||||
Repayments of repurchase agreements | 955,100,000 | |||||||||||||||
Subsequent Event [Member] | Servicer Advance Joint Venture [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Total servicer advances funded | 277,400,000 | |||||||||||||||
Recovered existing servicer advances | 457,500,000 | |||||||||||||||
Note payable | 162,000,000 | |||||||||||||||
Decrease in restricted cash | 400,000 | |||||||||||||||
Subsequent Event [Member] | Nationstar [Member] | Servicer Advance Joint Venture [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Nationstar payment made as contractual incentive fee | 3,800,000 | |||||||||||||||
Subsequent Event [Member] | SLS [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Total servicer advances funded | 25,800,000 | |||||||||||||||
Recovered existing servicer advances | 44,900,000 | |||||||||||||||
Note payable | 16,900,000 | |||||||||||||||
Decrease in restricted cash | 50,000 | |||||||||||||||
Subsequent Event [Member] | Ocwen [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Total servicer advances funded | 1,300,000,000 | |||||||||||||||
Recovered existing servicer advances | 1,700,000,000 | |||||||||||||||
Note payable | 271,500,000 | |||||||||||||||
Decrease in restricted cash | $ 15,500,000 | |||||||||||||||
Subsequent Event [Member] | Excess MSRs [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Total servicer advances funded | $ 2,400,000 | |||||||||||||||
Unpaid Principal Balance | $ 800,000,000 | |||||||||||||||
Subsequent Event [Member] | Excess MSRs [Member] | Freddie Mac [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Percentage of Excess MSRs acquired | 33.30% | |||||||||||||||
Subsequent Event [Member] | Excess MSRs [Member] | Freddie Mac [Member] | Nationstar [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Percentage of Excess MSRs acquired | 33.30% |
Uncategorized Items - nrz-20150
Label | Element | Value |
Income (Loss) From Investments In Consumer Loans, Equity Method Investees | nrz_IncomeLossFromInvestmentsInConsumerLoansEquityMethodInvestees | $ 0 |
Income (Loss) From Investments In Consumer Loans, Equity Method Investees | nrz_IncomeLossFromInvestmentsInConsumerLoansEquityMethodInvestees | 21,335 |
Investments In Excess Mortgage Servicing Rights, Change In Fair Value | nrz_InvestmentsInExcessMortgageServicingRightsChangeInFairValue | 356 |
Investments In Excess Mortgage Servicing Rights, Change In Fair Value | nrz_InvestmentsInExcessMortgageServicingRightsChangeInFairValue | 5,502 |
Investments In Excess Mortgage Servicing Rights, Change In Fair Value, Equity Method Investees | nrz_InvestmentsInExcessMortgageServicingRightsChangeInFairValueEquityMethodInvestees | 12,743 |
Investments In Excess Mortgage Servicing Rights, Change In Fair Value, Equity Method Investees | nrz_InvestmentsInExcessMortgageServicingRightsChangeInFairValueEquityMethodInvestees | 3,095 |
Investments In Servicer Advances, Change In Fair Value | nrz_InvestmentsInServicerAdvancesChangeInFairValue | 24,562 |
Investments In Servicer Advances, Change In Fair Value | nrz_InvestmentsInServicerAdvancesChangeInFairValue | $ 82,877 |