Document and Entity Information
Document and Entity Information - USD ($) $ / shares in Units, $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 18, 2016 | Jun. 30, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | New Residential Investment Corp. | ||
Entity Central Index Key | 1,556,593 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 3.5 | ||
Entity Common Stock, Par Value | $ 0.01 | ||
Entity Common Stock, Shares Outstanding | 230,471,202 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments in: | |||
Excess mortgage servicing rights, at fair value | $ 1,581,517 | $ 417,733 | |
Excess mortgage servicing rights, equity method investees, at fair value | 217,221 | 330,876 | |
Servicer advances, at fair value | [1] | 7,426,794 | 3,270,839 |
Real estate securities, available-for-sale | 2,501,881 | 2,463,163 | |
Residential mortgage loans, held-for-investment | 330,178 | 47,838 | |
Residential mortgage loans, held-for-sale | 776,681 | 1,126,439 | |
Real estate owned | 50,574 | 61,933 | |
Consumer loans, equity method investees | 0 | 0 | |
Cash and cash equivalents | 249,936 | 212,985 | |
Restricted cash | 94,702 | 29,418 | |
Derivative assets | 2,689 | 32,597 | |
Trade receivable | 1,538,481 | 0 | |
Deferred tax asset, net | 185,311 | 0 | |
Other assets | 236,757 | 95,423 | |
Total assets | 15,192,722 | 8,089,244 | |
Liabilities | |||
Repurchase agreements | 4,043,054 | 3,149,090 | |
Notes payable | [1] | 7,249,568 | 2,908,763 |
Trades payable | 725,672 | 2,678 | |
Due to affiliates | 23,785 | 57,424 | |
Dividends payable | 106,017 | 53,745 | |
Deferred tax liability | 0 | 15,114 | |
Accrued expenses and other liabilities | 58,046 | 52,505 | |
Total liabilities | $ 12,206,142 | $ 6,239,319 | |
Commitments and Contingencies | |||
Equity | |||
Common Stock, $0.01 par value, 2,000,000,000 shares authorized, 230,471,202 and 141,434,905 issued and outstanding at December 31, 2015 and December 31, 2014, respectively | $ 2,304 | $ 1,414 | |
Additional paid-in capital | 2,640,893 | 1,328,587 | |
Retained earnings | 148,800 | 237,769 | |
Accumulated other comprehensive income | 3,936 | 28,319 | |
Total New Residential stockholders’ equity | 2,795,933 | 1,596,089 | |
Noncontrolling interests in equity of consolidated subsidiaries | 190,647 | 253,836 | |
Total Equity | 2,986,580 | 1,849,925 | |
Total Liabilities And Stockholders Equity | $ 15,192,722 | $ 8,089,244 | |
[1] | New Residential’s Consolidated Balance Sheets include the assets and liabilities of a consolidated VIE, the Buyer (Note 6), which primarily holds investments in servicer advances financed with notes payable. The Buyer’s balance sheet is included in Note 6. The creditors of the Buyer do not have recourse to the general credit of New Residential and the assets of the Buyer are not directly available to satisfy New Residential’s obligations. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Equity | ||
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) | 230,471,202 | 141,434,905 |
Common stock, shares outstanding (in shares) | 230,471,202 | 141,434,905 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Income Statement [Abstract] | |||||
Interest income | $ 645,072,000 | $ 346,857,000 | $ 87,567,000 | ||
Interest expense | 274,013,000 | 140,708,000 | 15,024,000 | ||
Net interest income (expense) | 371,059,000 | 206,149,000 | 72,543,000 | ||
Impairment | |||||
Other-than-temporary impairment (OTTI) on securities | 5,788,000 | 1,391,000 | 4,993,000 | ||
Valuation provision on loans and real estate owned | 18,596,000 | 9,891,000 | 461,000 | ||
Total Impairment Charges | 24,384,000 | 11,282,000 | 5,454,000 | ||
Net interest income after impairment | 346,675,000 | 194,867,000 | 67,089,000 | ||
Other Income | |||||
Change in fair value of investments in excess mortgage servicing rights | 38,643,000 | 41,615,000 | 53,332,000 | ||
Change in fair value of investments in excess mortgage servicing rights, equity method investees | 31,160,000 | 57,280,000 | 50,343,000 | ||
Change in fair value of investments in servicer advances | (57,491,000) | 84,217,000 | 0 | ||
Earnings from investments in consumer loans, equity method investees | 0 | 53,840,000 | 82,856,000 | ||
Gain on consumer loans investment | 43,954,000 | 92,020,000 | 0 | ||
Gain (loss) on settlement of investments, net | (17,207,000) | 35,487,000 | 52,657,000 | ||
Other income (loss), net | 2,970,000 | 10,629,000 | 1,820,000 | ||
Total Other Income | 42,029,000 | [1] | 375,088,000 | [1] | 241,008,000 |
Operating Expenses | |||||
General and administrative expenses | 61,862,000 | 27,001,000 | 9,975,000 | ||
Management fee allocated by Newcastle | 0 | 0 | 4,134,000 | ||
Management fee to affiliate | 33,475,000 | 19,651,000 | 11,209,000 | ||
Incentive compensation to affiliate | 16,017,000 | 54,334,000 | 16,847,000 | ||
Loan servicing expense | 6,469,000 | 3,913,000 | 309,000 | ||
Total Operating Expenses | 117,823,000 | 104,899,000 | 42,474,000 | ||
Income (Loss) Before Income Taxes | 270,881,000 | 465,056,000 | 265,623,000 | ||
Income tax expense (benefit) | (11,001,000) | 22,957,000 | 0 | ||
Net Income (Loss) | 281,882,000 | 442,099,000 | 265,623,000 | ||
Noncontrolling Interests in Income (Loss) of Consolidated Subsidiaries | 13,246,000 | 89,222,000 | (326,000) | ||
Net income (loss) attributable to common stockholders | $ 268,636,000 | $ 352,877,000 | $ 265,949,000 | ||
Net Income Per Share of Common Stock | |||||
Basic (in dollars per share) | $ 1.34 | $ 2.59 | $ 2.10 | ||
Diluted (in dollars per share) | $ 1.32 | $ 2.53 | $ 2.07 | ||
Weighted Average Number of Shares of Common Stock Outstanding | |||||
Basic (in shares) | 200,739,809 | 136,472,865 | 126,539,024 | ||
Diluted (in shares) | 202,907,605 | 139,565,709 | 128,684,128 | ||
Dividends Declared per Share of Common Stock (in dollars per share) | $ 1.75 | $ 1.58 | $ 0.99 | ||
[1] | Earnings from investments in equity method investees is included in other income. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Comprehensive income (loss), net of tax | |||
Net income | $ 281,882 | $ 442,099 | $ 265,623 |
Other comprehensive income (loss) | |||
Net unrealized gain (loss) on securities | (17,075) | 89,415 | 35,352 |
Reclassification of net realized (gain) loss on securities into earnings | (7,308) | (64,310) | (47,664) |
Total other comprehensive income (loss) | (24,383) | 25,105 | (12,312) |
Total comprehensive income | 257,499 | 467,204 | 253,311 |
Comprehensive income (loss) attributable to noncontrolling interests | 13,246 | 89,222 | (326) |
Comprehensive income attributable to common stockholders | $ 244,253 | $ 377,982 | $ 253,637 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 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] |
Balance, beginning at Dec. 31, 2012 | $ 378,356 | $ 0 | $ 362,830 | $ 0 | $ 15,526 | $ 378,356 | $ 0 |
Balance, beginning (in shares) at Dec. 31, 2012 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared | (125,317) | (125,317) | (125,317) | ||||
Capital contributions | 1,141,017 | 893,466 | 893,466 | 247,551 | |||
Contributions in-kind | 1,093,684 | 1,093,684 | 1,093,684 | ||||
Capital distributions | (1,228,054) | (1,228,054) | (1,228,054) | ||||
Issuance of common stock | 0 | $ 1,265 | (1,265) | ||||
Issuance of common stock (in shares) | 126,512,823 | ||||||
Option exercises | 0 | $ 1 | (1) | ||||
Option exercise (in shares) | 80,317 | ||||||
Director share grants | 78 | 78 | 78 | ||||
Director share grants (in shares) | 5,847 | ||||||
Comprehensive income (loss) | |||||||
Net income (loss) | 265,623 | 37,646 | 228,303 | 265,949 | (326) | ||
Net unrealized gain (loss) on securities | 35,352 | 35,352 | 35,352 | ||||
Reclassification of net realized (gain) loss on securities into earnings | (47,664) | (47,664) | (47,664) | ||||
Total comprehensive income | 253,311 | 253,637 | (326) | ||||
Balance, ending at Dec. 31, 2013 | 1,513,075 | $ 1,266 | 1,158,384 | 102,986 | 3,214 | 1,265,850 | 247,225 |
Balance, ending (in shares) at Dec. 31, 2013 | 126,598,987 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared | (218,094) | (218,094) | (218,094) | ||||
Capital contributions | 142,082 | 142,082 | |||||
Capital distributions | (225,609) | (225,609) | |||||
Issuance of common stock | 169,905 | $ 144 | 169,761 | 169,905 | |||
Issuance of common stock (in shares) | 14,375,000 | ||||||
Option exercises | $ 909 | $ 4 | 905 | 909 | |||
Option exercise (in shares) | 648,573 | 426,102 | |||||
Dilution impact of distributions from consolidated subsidiaries | $ 0 | (916) | (916) | 916 | |||
Director share grants | 453 | 453 | 453 | ||||
Director share grants (in shares) | 34,816 | ||||||
Comprehensive income (loss) | |||||||
Net income (loss) | 442,099 | 352,877 | 352,877 | 89,222 | |||
Net unrealized gain (loss) on securities | 89,415 | 89,415 | 89,415 | ||||
Reclassification of net realized (gain) loss on securities into earnings | (64,310) | (64,310) | (64,310) | ||||
Total comprehensive income | 467,204 | 377,982 | 89,222 | ||||
Balance, ending at Dec. 31, 2014 | 1,849,925 | $ 1,414 | 1,328,587 | 237,769 | 28,319 | 1,596,089 | 253,836 |
Balance, ending (in shares) at Dec. 31, 2014 | 141,434,905 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividends declared | (355,295) | (355,295) | (355,295) | ||||
Capital contributions | 5,161 | 5,161 | |||||
Capital distributions | (81,596) | (81,596) | |||||
Issuance of common stock | 1,312,746 | $ 854 | 1,311,892 | 1,312,746 | |||
Issuance of common stock (in shares) | 85,435,389 | ||||||
Option exercises | $ 0 | $ 36 | (36) | ||||
Option exercise (in shares) | 6,734,525 | 3,570,984 | |||||
Director share grants | $ 450 | 450 | 450 | ||||
Director share grants (in shares) | 29,924 | ||||||
Modified retrospective adjustment for the adoption of ASU No. 2014-11 | ASU 2014-11 [Member] | (2,310) | (2,310) | (2,310) | ||||
Comprehensive income (loss) | |||||||
Net income (loss) | 281,882 | 268,636 | 268,636 | 13,246 | |||
Net unrealized gain (loss) on securities | (17,075) | (17,075) | (17,075) | ||||
Reclassification of net realized (gain) loss on securities into earnings | (7,308) | (7,308) | (7,308) | ||||
Total comprehensive income | 257,499 | 244,253 | 13,246 | ||||
Balance, ending at Dec. 31, 2015 | $ 2,986,580 | $ 2,304 | $ 2,640,893 | $ 148,800 | $ 3,936 | $ 2,795,933 | $ 190,647 |
Balance, ending (in shares) at Dec. 31, 2015 | 230,471,202 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Cash Flows From Operating Activities | |||
Net income | $ 281,882 | $ 442,099 | $ 265,623 |
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 | (38,643) | (41,615) | (53,332) |
Change in fair value of investments in excess mortgage servicer rights, equity method investees | (31,160) | (57,280) | (50,343) |
Change in fair value of investments in servicer advances | 57,491 | (84,217) | 0 |
Earnings from consumer loan equity method investees | 0 | (53,840) | (82,856) |
Unrealized (gain) / loss on derivative instruments | 5,957 | 13,037 | (1,820) |
Accretion and other amortization | (525,298) | (278,408) | (59,250) |
(Gain) / loss on settlement of investments (net) | 17,207 | (35,487) | (52,657) |
(Gain) / loss on transfer of loans to REO | (2,065) | (17,489) | 0 |
(Gain) / loss on Excess MSR recapture agreements | (2,999) | (1,157) | 0 |
(Gain) / loss on consumer loans investment | 0 | (92,020) | 0 |
Other-than-temporary impairment | 5,788 | 1,391 | 4,993 |
Valuation provision on loans and real estate owned | 18,596 | 9,891 | 461 |
Unrealized (gain) / loss on other ABS | (879) | 0 | 0 |
Non-cash directors’ compensation | 450 | 453 | 78 |
Deferred tax provision | (6,633) | 15,114 | 0 |
Changes in: | |||
Restricted cash | 14,270 | 3,920 | (2,790) |
Other assets | 217,468 | (14,582) | (8,274) |
Due to affiliates | (33,639) | 38,255 | 14,033 |
Accrued expenses and other liabilities | (42,494) | 31,945 | 6,360 |
Reduction of liability deemed as capital contribution by Newcastle | 0 | 0 | 11,515 |
Other operating cash flows: | |||
Interest received from excess mortgage servicing rights | 127,131 | 49,880 | 26,391 |
Interest received from servicer advance investments | 172,711 | 110,247 | 0 |
Interest received from Non-Agency RMBS | 43,824 | 6,660 | 3,988 |
Interest received from residential mortgage loans, held-for-investment | 0 | 7,969 | 2,212 |
Purchases of residential mortgage loans, held-for-sale | (1,278,322) | (1,577,933) | 0 |
Proceeds from sales of purchased residential mortgage loans, held-for-sale | 1,226,442 | 1,245,352 | 0 |
Principal repayments from purchased residential mortgage loans, held-for-sale | 55,804 | 2,413 | 0 |
Cash proceeds from investments, in excess of interest income | 0 | 0 | 41,435 |
Net cash proceeds deemed as capital distributions to Newcastle | 0 | 0 | (36,149) |
Net cash provided by (used in) operating activities | 320,763 | (168,135) | 156,928 |
Cash Flows From Investing Activities | |||
Acquisition of investments in excess mortgage servicing rights | (252,127) | (94,113) | (63,434) |
Acquisition of investments in excess mortgage servicing rights, equity method investees | 0 | 0 | (233,764) |
Acquisition of HLSS, net of cash acquired | (960,719) | 0 | 0 |
Purchase of servicer advance investments | (14,945,858) | (6,828,135) | (670,820) |
Purchase of Agency RMBS | (4,610,680) | (1,437,952) | (605,114) |
Purchase of Non-Agency RMBS | (1,252,516) | (1,690,770) | (407,689) |
Purchase of residential mortgage loans, held-for-investment | (290,652) | (884,557) | 0 |
Purchase of derivative instruments | (5,830) | (70,218) | (70,227) |
Purchase of real estate owned | (26,208) | (10,690) | 0 |
Payments for settlement of derivatives | (85,493) | (43,133) | 0 |
Return of investments in excess mortgage servicing rights | 154,777 | 42,603 | 24,735 |
Principal repayments from servicer advance investments | 16,008,741 | 6,389,154 | 103,394 |
Principal repayments from Agency RMBS | 129,112 | 271,673 | 302,920 |
Principal repayments from Non-Agency RMBS | 135,948 | 103,934 | 62,507 |
Principal repayments from residential mortgage loans | 46,496 | 40,358 | 3,809 |
Proceeds from sale of residential mortgage loans | 643,788 | 0 | 0 |
Proceeds from sale of Agency RMBS | 4,468,398 | 796,392 | 0 |
Proceeds from sale of Non-Agency RMBS | 425,761 | 1,288,980 | 521,865 |
Proceeds from settlement of derivatives | 37,938 | 87,645 | 0 |
Proceeds from sale of real estate owned | 57,699 | 16,502 | 0 |
Net cash provided by (used in) investing activities | (312,742) | (1,690,111) | (997,441) |
Cash Flows From Financing Activities | |||
Repayments of repurchase agreements | (8,798,578) | (4,869,799) | (2,271,765) |
Margin deposits under repurchase agreements and derivatives | (387,143) | (385,814) | (61,152) |
Repayments of notes payable | (7,286,860) | (5,416,883) | (59,149) |
Payment of deferred financing fees | (45,654) | (8,444) | (5,541) |
Common stock dividends paid | (303,023) | (227,646) | (62,020) |
Borrowings under repurchase agreements | 9,607,475 | 6,412,137 | 2,634,990 |
Return of margin deposits under repurchase agreements and derivatives | 391,705 | 366,925 | 21,020 |
Borrowings under notes payable | 6,053,950 | 5,841,474 | 423,515 |
Issuance of common stock | 882,166 | 173,507 | 0 |
Costs related to issuance of common stock | (3,512) | (2,693) | 0 |
Capital contributions | 0 | 0 | 245,058 |
Noncontrolling interest in equity of consolidated subsidiaries - contributions | 0 | 142,082 | 247,551 |
Noncontrolling interest in equity of consolidated subsidiaries - distributions | (81,596) | (225,609) | 0 |
Net cash provided by (used in) financing activities | 28,930 | 1,799,237 | 1,112,507 |
Net Increase (Decrease) in Cash and Cash Equivalents | 36,951 | (59,009) | 271,994 |
Cash and Cash Equivalents, Beginning of Period | 212,985 | 271,994 | 0 |
Cash and Cash Equivalents, End of Period | 249,936 | 212,985 | 271,994 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the period for interest | 244,188 | 127,998 | 10,212 |
Cash paid during the period for income taxes | 535 | 14,115 | 0 |
Supplemental Schedule of Non-Cash Investing and Financing Activities Prior to Date of Cash Contribution by Newcastle | |||
Cash proceeds from investments, in excess of interest income | 41,435 | ||
Acquisition of real estate securities | 242,750 | ||
Acquisition of residential mortgage loans, held-for-investment | 35,138 | ||
Borrowings under repurchase agreements | 1,179,068 | ||
Repayments of repurchase agreements | 3,902 | ||
Supplemental Schedule of Non-Cash Investing and Financing Activities Subsequent to Date of Cash Contribution by Newcastle | |||
Acquisition of restricted cash | 0 | 0 | 30,548 |
Acquisition of servicer advance investments | 0 | 0 | 2,093,704 |
Borrowings under notes payable--servicer advance investments | 0 | 0 | 2,124,252 |
Dividends declared but not paid | 106,017 | 53,745 | 63,297 |
Transfer from residential mortgage loans to real estate owned and other assets | 90,414 | 21,842 | 0 |
Transfer from residential mortgage loans, held-for-investment to residential mortgage loans, held-for- sale | 0 | 846,904 | 0 |
Portion of HLSS Acquisition (Note 1) paid in common stock | 434,092 | 0 | 0 |
Real estate securities retained from loan securitizations | 36,967 | 54,395 | 0 |
Newcastle [Member] | |||
Supplemental Schedule of Non-Cash Investing and Financing Activities Prior to Date of Cash Contribution by Newcastle | |||
Capital contributions | 648,408 | ||
Contributions in-kind | 1,093,684 | ||
Capital distributions | 1,228,054 | ||
HLSS [Member] | |||
Supplemental Schedule of Non-Cash Investing and Financing Activities Prior to Date of Cash Contribution by Newcastle | |||
Capital contributions | 5,161 | 0 | 0 |
Agency RMBS [Member] | |||
Supplemental Schedule of Non-Cash Investing and Financing Activities Subsequent to Date of Cash Contribution by Newcastle | |||
Purchase of investments, primarily Agency RMBS, settled after quarter end | 725,672 | 0 | 0 |
Sale of Agency RMBS settled after quarter end | 1,538,481 | 0 | 0 |
ASU 2014-11 [Member] | |||
Supplemental Schedule of Non-Cash Investing and Financing Activities Subsequent to Date of Cash Contribution by Newcastle | |||
Reclassification resulting from the application of ASU No. 2014-11 | 85,955 | 0 | 0 |
Excess MSRs Investees [Member] | |||
Other operating cash flows: | |||
Distributions of earnings, equity method investees | 37,874 | 53,427 | 44,454 |
Cash Flows From Investing Activities | |||
Return of investments, equity method investees | 8,683 | 25,743 | 4,018 |
Supplemental Schedule of Non-Cash Investing and Financing Activities Prior to Date of Cash Contribution by Newcastle | |||
Acquisition of investments in excess mortgage servicing rights, equity method investees | 125,099 | ||
Consumer Loan, Equity Method Investees [Member] | |||
Other operating cash flows: | |||
Distributions of earnings, equity method investees | 0 | 53,840 | 82,856 |
Cash Flows From Investing Activities | |||
Return of investments, equity method investees | 0 | 306,473 | 30,359 |
Supplemental Schedule of Non-Cash Investing and Financing Activities Prior to Date of Cash Contribution by Newcastle | |||
Acquisition of investments in consumer loan equity method investees | 245,121 | ||
Supplemental Schedule of Non-Cash Investing and Financing Activities Subsequent to Date of Cash Contribution by Newcastle | |||
Non-cash distribution from Consumer Loan Companies | $ 585 | $ 609 | $ 0 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 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. 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 New York Stock Exchange (“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 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 OneMain Holdings, Inc. (together with its subsidiaries, including SpringCastle Acquisition LLC, “OneMain”), managing member of the Consumer Loan Companies (Note 9). As of December 31, 2015 , New Residential conducted its business through the following segments: (i) investments in excess mortgage servicing rights (“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 December 31, 2015 . In addition, Fortress, through its affiliates, held options relating to approximately 10.9 million shares of New Residential’s common stock as of December 31, 2015 . Acquisition of HLSS Assets and Liabilities On February 22, 2015, New Residential entered into an Agreement and Plan of Merger (the “HLSS 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 (“HLSS Merger Sub”). HLSS was listed 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 (providing for the termination of the HLSS Initial Merger Agreement) and simultaneously entered into a Share and Asset Purchase Agreement (the “HLSS Acquisition Agreement”). The parties to the HLSS Acquisition Agreement included New Residential, HLSS, HLSS Advances Acquisition Corp., a Delaware corporation and wholly owned subsidiary of New Residential (“HLSS Advances Sub”), and HLSS MSR-EBO Acquisition LLC, a Delaware limited liability company and wholly owned subsidiary of New Residential (together with HLSS Advances Sub, the “HLSS Buyers”). Pursuant to the HLSS Acquisition Agreement, the HLSS 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 Balance (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 “HLSS Acquisition Closing”) occurred simultaneously with the execution of the HLSS Acquisition Agreement. The HLSS Acquisition Agreement includes certain customary post-closing covenants of New Residential, the HLSS 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 Balance”) for wind down costs, of which $45.1 million was received by New Residential at the HLSS New Merger Effective Time (as defined below). At the HLSS Acquisition Closing, HLSS Advances Sub entered into a services agreement, dated as of April 6, 2015, with HLSS (the “HLSS Services Agreement”). Pursuant to the HLSS Services Agreement, HLSS Advances Sub 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 HLSS Services Agreement provided that HLSS Advances Sub was responsible for the operations of HLSS and performed (or caused to be performed) such services and activities relating to the assets and operations of HLSS as may have been appropriate, including, among other things, administering the Distribution and Liquidation Plan and handling all claims, disputes or controversies in which HLSS was a party or may otherwise have been involved, through the consummation of the HLSS New Merger (as defined below). HLSS Advances Sub was not compensated by HLSS for its services under the HLSS Services Agreement but was reimbursed by HLSS for expenses incurred on behalf of HLSS. At the HLSS Acquisition Closing, New Residential and HLSS Merger Sub entered into an Agreement and Plan of Merger, dated April 6, 2015, with HLSS (the “HLSS 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 HLSS New Merger (as defined below) had substantially wound-down its operations) merged with and into HLSS Merger Sub, with HLSS Merger Sub continuing as the surviving company and a wholly owned subsidiary of New Residential (the “HLSS New Merger”). Following the HLSS New Merger, references to HLSS refer to HLSS Merger Sub. Pursuant to the HLSS New Merger Agreement, and upon the terms and conditions set forth therein, at the effective time of the HLSS New Merger (the “HLSS New Merger Effective Time”), each ordinary share of HLSS, par value $0.01 per share, issued and outstanding immediately prior to the HLSS New Merger 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), was automatically converted into the right to receive $0.704059 per share in cash, without interest. The HLSS New Merger Effective Time occurred on October 23, 2015, at which time New Residential paid $50.0 million to HLSS shareholders and the HLSS New Merger was completed. The HLSS New Merger did not require the approval of New Residential’s shareholders. However, consummation of the HLSS New Merger was subject to, among other things: (i) approval of the HLSS 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 HLSS New Merger; and (iii) certain other customary closing conditions. Moreover, each party’s obligation to consummate the HLSS New Merger was 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 HLSS New Merger Agreement (in each case subject to customary materiality qualifiers). In addition, the obligations of New Residential and HLSS Merger Sub to consummate the HLSS New Merger were subject to the absence of any Company Material Adverse Effect (as defined in the HLSS New Merger Agreement). The purchase price for the HLSS Acquisition included 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 HLSS 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) HLSS New Merger Payment The HLSS 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 was from $0.0 million to $50.0 million , dependent on whether the HLSS New Merger was approved by HLSS shareholders and other factors. As of the HLSS New Merger Effective Time, the net contingent consideration paid was fixed at $5.1 million . New Residential has performed a preliminary allocation of the purchase price to HLSS’s assets and liabilities, as set forth below. The final allocation of purchase price may differ from the amounts included herein. The preliminary allocation of the total consideration, following reclassifications to conform to New Residential’s presentation, is as follows: Total Consideration ($ in millions) $ 1,491.2 Assets Cash and cash equivalents $ 51.4 Servicer advances, at fair value 5,096.7 Excess mortgage servicing rights, at fair value 917.1 Residential mortgage loans, held-for-sale (A) 416.8 Deferred tax asset (B) 195.1 Investment in HLSS Ltd. 44.9 Other assets (C) 402.4 Total Assets Acquired $ 7,124.4 Liabilities Notes payable 5,580.3 Accrued expenses and other liabilities (D)(E) 52.9 Total Liabilities Assumed $ 5,633.2 Net Assets $ 1,491.2 (A) Represents $424.3 million unpaid principal balance (“UPB”) of Government National Mortgage Association (“Ginnie Mae”) early buy-out (“EBO”) residential mortgage loans not subject to Accounting Standards Codification (“ASC”) No. 310-30 as the contractual cash flows are guaranteed by the Federal Housing Administration (“FHA”). (B) Due primarily 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 had not been recognized at the acquisition date as the criteria in ASC No. 450 had 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 $3.2 million have been recognized in General and administrative expenses in New Residential’s statement of income for the year ended December 31, 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 year ended December 31, 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 years ended December 31, 2015 and 2014 prepared as if the HLSS Acquisition had been consummated on January 1, 2014. Year Ended December 31, 2015 2014 (unaudited) (unaudited) Pro Forma Interest income $ 731,660 $ 744,363 Income Before Income Taxes 322,365 647,058 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 $26.1 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 Consolidated Statements of Income include interest income and income before income taxes of HLSS since the April 6, 2015 acquisition of $282.3 million and $131.5 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 “Ocwen Purchase Agreement”) with Ocwen Loan Servicing LLC, a subsidiary of Ocwen Financial Corporation (together with its subsidiaries, including Ocwen Loan Servicing LLC, “Ocwen”), which remains in effect following the HLSS Acquisition. Pursuant to the Ocwen 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 Ocwen 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 Ocwen 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 a portion of the servicing fee economics retained by New Residential. 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 an initial term of up to eight years (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 Ocwen 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 Ocwen 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 Ocwen 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 Ocwen 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 Ocwen Purchase Agreement executed in connection with the consummation of the HLSS Acquisition, such Ocwen 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 Ocwen 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 eight 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) unless certain servicer ratings thresholds are not met on the six year anniversary of the related Sale Supplement, in which case the related term would expire on such anniversary, and (iv) provide that Ocwen will reimburse HLSS Holdings, subject to specified limits, for certain increased costs resulting from further Standard & Poor’s Rating Services (S&P) servicer rating downgrades of Ocwen. Through December 31, 2015 , New Residential has accrued $14.5 million in connection with clause (iv), which is included in Other Income, and which was received in October 2015. 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 securitized loans is reduced to a specified balance. HLSS Management, LLC (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, LLC 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% . |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting — The accompanying consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP’’). The consolidated financial statements include the accounts of New Residential and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. New Residential consolidates those entities in which it has control over significant operating, financial and investing decisions of the entity, as well as those entities deemed to be variable interest entities (“VIEs”) in which New Residential is determined to be the primary beneficiary. For entities over which New Residential exercises significant influence, but which do not meet the requirements for consolidation, New Residential uses the equity method of accounting whereby it records its share of the underlying income of such entities. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. A VIE is required to be consolidated only by its primary beneficiary, which is defined as the party who has the power to direct the activities of a VIE that most significantly impact its economic performance and who has the obligation to absorb losses or the right to receive benefits from the VIE that could be potentially significant to the VIE. To assess whether New Residential has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, New Residential considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE’s economic performance; and second, identifying which party, if any, has power over those activities. To assess whether New Residential has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, New Residential considers all of its economic interests and applies judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. New Residential has determined that, under the ASU 2015-02, Consolidation , the Buyer (Note 6) should be evaluated for consolidation under the VIE model rather than the voting interest entity model as the equity holders as a group do not have the right to direct activities that most significantly impact the entity’s economic performance. Under the VIE model, New Residential’s consolidated subsidiary, as the managing member, has both 1) the power to direct the activities of the Buyer and 2) holds a significant variable interest through its equity investment and therefore, meets the primary beneficiary criterion and continues to consolidate the Buyer. The Buyer’s summary balance sheet is included in Note 6. New Residential’s investments in Non-Agency RMBS (Note 7) are variable interests. New Residential monitors these investments and analyzes the potential need to consolidate the related securitization entities pursuant to the VIE consolidation requirements. New Residential has not consolidated the securitization entities that issued its Non-Agency RMBS. This determination is based, in part, on New Residential’s assessment that it does not have the power to direct the activities that most significantly impact the economic performance of these entities, such as through ownership of a majority of the currently controlling class. In addition, New Residential is not obligated to provide, and has not provided, any financial support to these entities. Noncontrolling interests represent the ownership interests in certain consolidated subsidiaries held by entities or persons other than New Residential. These interests are related to noncontrolling interests in consolidated entities that hold New Residential’s investment in servicer advances (Note 6). The consolidated financial statements for periods prior to May 15, 2013 have been prepared on a spin-off basis from the consolidated financial statements and accounting records of Newcastle and reflect New Residential’s historical results of operations, financial position and cash flows, in accordance with U.S. GAAP. As presented in the Consolidated Statements of Cash Flows, New Residential did not have any cash balance during periods prior to April 5, 2013, which is the first date Newcastle contributed cash to New Residential. All of its cash activity occurred in Newcastle’s accounts during these periods. The consolidated financial statements for periods prior to May 15, 2013 do not necessarily reflect what New Residential’s consolidated results of operations, financial position and cash flows would have been had New Residential operated as an independent company prior to the spin-off. Certain expenses of Newcastle, comprised primarily of a portion of its management fee, have been allocated to New Residential to the extent they were directly associated with New Residential for periods prior to the spin-off on May 15, 2013. The portion of the management fee allocated to New Residential prior to the spin-off represents the product of the management fee rate payable by Newcastle ( 1.5% ) and New Residential’s gross equity, which management believes is a reasonable method for quantifying the expense of the services provided by the employees of the Manager to New Residential. The incremental cost of certain legal, accounting and other expenses related to New Residential’s operations prior to May 15, 2013 are reflected in the accompanying consolidated financial statements. New Residential and Newcastle do not share any expenses following the spin-off. 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 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 consolidated statement of cash flows for these loans. The effects of the adjustment on the presentation for the years ended December 31, 2014 and 2013 was to move $1.3 billion and $0.0 million , respectively, of gross cash inflows and $1.6 billion and $0.0 million , respectively, of gross cash outflows from investing activities to operating activities. 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. Risks and Uncertainties — In the normal course of business, New Residential encounters primarily two significant types of economic risk: credit and market. Credit risk 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. Market risk reflects changes in the value of investments due to changes in prepayment speeds, interest rates, spreads or other market factors, including risks that impact the value of the collateral underlying New Residential’s investments. Management believes that the carrying values of its investments are reasonable taking into consideration these risks along with estimated prepayments, financings, collateral values, payment histories, and other information. Furthermore, for each of the periods presented, a significant portion of New Residential’s assets are dependent on Nationstar’s ability to perform its obligations as the servicer of residential mortgage loans underlying New Residential’s investments in Excess MSRs, servicer advances, Non-Agency RMBS and residential mortgage loans. If Nationstar is terminated as the servicer, New Residential’s right to receive its portion of the cash flows related to interests in MSRs is also terminated. New Residential is similarly dependent on OneMain as the servicer of the loans underlying its investment in the Consumer Loan Companies (Note 9) and on Ocwen subsequent to the HLSS Acquisition (Note 1). Additionally, New Residential is subject to significant tax risks. If New Residential were to fail to qualify as a REIT in any taxable year, New Residential would be subject to U.S. federal corporate income tax (including any applicable alternative minimum tax), which could be material. Unless entitled to relief under certain statutory provisions, New Residential would also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification is lost. Use of Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Comprehensive Income — Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances, excluding those resulting from investments by and distributions to owners. For New Residential’s purposes, comprehensive income represents net income, as presented in the Consolidated Statements of Income, adjusted for unrealized gains or losses on securities available for sale. INCOME RECOGNITION Investments in Excess Mortgage Servicing Rights (“Excess MSRs”) — Excess MSRs are aggregated into pools as applicable; each pool of Excess MSRs is accounted for in the aggregate. Interest income for Excess MSRs is accreted into interest income on an effective yield or “interest” method, based upon the expected excess mortgage servicing amount through the expected life of the underlying mortgages. Changes to expected cash flows result in a cumulative retrospective adjustment, which will be recorded in the period in which the change in expected cash flows occurs. Under the retrospective method, the interest income recognized for a reporting period is measured as the difference between the amortized cost basis at the end of the period and the amortized cost basis at the beginning of the period, plus any cash received during the period. The amortized cost basis is calculated as the present value of estimated future cash flows using an effective yield, which is the yield that equates all past actual and current estimated future cash flows to the initial investment. In addition, New Residential’s policy is to recognize interest income only on its Excess MSRs in existing eligible underlying mortgages. The difference between the fair value of Excess MSRs and their amortized cost basis is recorded as “Change in fair value of investments in excess mortgage servicing rights.” Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the Excess MSRs, and therefore may differ from their effective yields. Investments in Servicer Advances (“Servicer Advances”) — New Residential accounts for its investments in Servicer Advances similarly to its investments in Excess MSRs. Interest income for Servicer Advances is accreted into interest income on an effective yield or “interest” method, based upon the expected aggregate cash flows of the Servicer Advances, including the basic fee component of the related MSR (but excluding any Excess MSR component) through the expected life of the underlying mortgages, net of a portion of the basic fee component of the MSR that New Residential remits to the servicer as compensation for the servicer’s servicing activities. Changes to expected cash flows result in a cumulative retrospective adjustment, which will be recorded in the period in which the change in expected cash flows occurs. Refer to “—Investments in Excess Mortgage Servicing Rights” for a description of the retrospective method. Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the Servicer Advances, and therefore may differ from their effective yields. Investments in Real Estate Securities — Discounts or premiums are accreted into interest income on an effective yield or “interest” method, based upon a comparison of actual and expected cash flows, through the expected maturity date of the security. For securities acquired at a discount for credit quality (i.e. where it is probable at acquisition that New Residential will not collect all contractually required interest and principal repayments), the difference between contractual cash flows and expected cash flows at acquisition is not accreted (non-accretable difference). For these securities, the excess of expected cash flows over the carrying value (accretable yield) is recognized as interest income on an effective yield basis. Depending on the nature of the investment, changes to expected cash flows may result in a prospective change to yield or a retrospective change which would include a catch up adjustment. Deferred fees and costs, if any, are recognized as a reduction to the interest income over the terms of the securities using the interest method. Upon settlement of securities, the specific identification method is used to determine the excess (or deficiency) of net proceeds over the net carrying value of such security recognized as a realized gain (or loss) in the period of settlement. Investments in Residential Mortgage Loans and REO - New Residential evaluates the credit quality of its loans, as of the acquisition date, for evidence of credit quality deterioration. Loans with evidence of credit deterioration since their origination, and where it is probable that New Residential will not collect all contractually required principal and interest payments, are Purchased Credit Deteriorated (“PCD “) loans. At acquisition, New Residential aggregates PCD loans into pools based on common risk characteristics and the aggregated loans are accounted for as if each pool were a single loan with a single composite interest rate and an aggregate expectation of cash flows. The excess of the total cash flows (both principal and interest) expected to be collected over the carrying value of the PCD loans is referred to as the accretable yield. This amount is not reported on New Residential’s Consolidated Balance Sheets but is accreted into interest income at a level rate of return over the remaining estimated life of the pool of loans. Loans where New Residential expects to collect all contractually required principal and interest payments are considered performing loans. Interest income on performing loans is accrued and recognized as interest income at their effective yield, which includes contractual interest and the amortization of purchase price discount or premium and deferred fees or expenses. Loans acquired with the intent to sell and loans not acquired with the intent to sell that New Residential decides to sell are classified as held-for-sale. Loans held-for-sale are measured at the lower of cost or fair value, with valuation changes recorded in impairment. Purchase price discounts or premiums are deferred in a contra loan account until the related loan is sold. The deferred discounts or premiums are an adjustment to the basis of the loan and are included in the quarterly determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. Real estate owned (“REO”) assets are those individual properties acquired by New Residential or where New Residential receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession). New Residential measures REO assets at the lower of cost or fair value, with valuation changes recorded in other income or impairment, as applicable. Impairment of Securities - Securities are considered to be impaired when it is probable that New Residential will be unable to collect all principal or interest when due according to the contractual terms of the original agreements, or for securities purchased at a discount for credit quality or that represent retained beneficial interests in securitizations, when New Residential determines that it is probable that it will be unable to collect as anticipated. The evaluation of a security’s estimated cash flows includes the following, as applicable: (i) review of the credit of the issuer or borrower, (ii) review of the credit rating of the security, (iii) review of the key terms of the security or underlying loans, (iv) review of the performance of the underlying loans, including debt service coverage and loan to value ratios, (v) analysis of the value of the underlying loans, (vi) analysis of the effect of local, industry and broader economic factors, and (vii) analysis of historical and anticipated trends in defaults, loss severities and prepayments for similar securities or underlying loans. New Residential must record a write down if it has the intent to sell a given security in an unrealized loss position, or if it is more likely than not that it will be required to sell such a security. Upon determination of impairment, New Residential records a direct write down for securities based on the estimated fair value of the security or underlying collateral using a discounted cash flow analysis or based on an observable market value. Subsequent to a determination of impairment, and a related write down, income on securities is accrued on an effective yield method from the new carrying value to the related expected cash flows, with cash received treated as a reduction of basis. Impairment of Loans - To the extent that they are classified as held-for-investment, New Residential must periodically evaluate each of these loans or loan pools for possible impairment. Impairment is indicated when it is deemed probable that New Residential will be unable to collect all amounts due according to the contractual terms of the loan, or for PCD loans, when it is deemed probable that New Residential will be unable to collect as anticipated. Upon determination of impairment, New Residential establishes an allowance for loan losses with a corresponding charge to earnings. Performing loans are aggregated into pools for the evaluation of impairment based on like characteristics, such as loan type and acquisition date. Pools of loans are evaluated based on criteria such as an analysis of borrower performance, credit ratings of borrowers, loan to value ratios, the estimated value of the underlying collateral, the key terms of the loans and historical and anticipated trends in defaults and loss severities for the type and seasoning of loans being evaluated. This information is used to estimate provisions for estimated unidentified incurred losses on pools of loans. Significant judgment is required in determining impairment and in estimating the resulting loss allowance. For PCD loans, New Residential estimates the total cash flows expected to be collected over the remaining life of each pool. Probable decreases in expected cash flows trigger the recognition of impairment. Impairments are recognized through the provision for loans and an increase in the allowance for loan losses. Probable and significant increases in expected cash flows would first reverse any previously recorded allowance for loan losses with any remaining increases recognized prospectively as a yield adjustment over the remaining estimated lives of the underlying loans. A loan is determined to be past due when a monthly payment is due and unpaid for 30 days or more. Loans, other than PCD loans, are placed on nonaccrual status and considered non-performing when full payment of principal and interest is in doubt, which generally occurs when principal or interest is 120 days or more past due unless the loan is both well secured and in the process of collection. A loan may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loan. New Residential’s ability to recognize interest income on nonaccrual loans as cash interest payments are received rather than as a reduction of the carrying value of the loans is based on the recorded loan balance being deemed fully collectible. Loans held-for-sale are subject to the nonaccrual policy described above, however, as loans held-for-sale are recognized at the lower of cost or fair value, New Residential’s allowance for loan losses and charge-off policies do not apply to these loans. Accretion and Other Amortization — As reflected on the consolidated statements of cash flows, this item is comprised of the following: Year Ended December 31, 2015 2014 2013 Accretion of servicer advance interest income $ 352,316 $ 190,206 $ 4,421 Accretion of excess mortgage servicing rights income 134,565 49,180 40,921 Accretion of net discount on securities and loans (A) 65,925 47,793 14,676 Amortization of deferred financing costs (26,036 ) (8,771 ) (768 ) Amortization of discount on notes payable (1,472 ) — — $ 525,298 $ 278,408 $ 59,250 (A) Includes accretion of the accretable yield on PCD loans. Other Income (Loss), Net — This item is comprised of the following: Year Ended December 31, 2015 2014 2013 Unrealized gain (loss) on derivative instruments $ (5,957 ) $ (13,037 ) $ 1,820 Unrealized gain (loss) on other ABS 879 — — Gain (loss) on transfer of loans to REO 2,065 17,489 — Fee earned on deal termination — 5,000 — Gain on Excess MSR recapture agreements 2,999 1,157 — Other income (loss) 2,984 20 — $ 2,970 $ 10,629 $ 1,820 Gain (loss) on settlement of investments, net — This item is comprised of the following: Year Ended December 31, 2015 2014 2013 Gain (loss) on sale of real estate securities, net $ 13,096 $ 65,701 $ 52,657 Gain (loss) on sale of residential mortgage loans, net 33,335 — — Gain (loss) on settlement of derivatives (44,563 ) (36,210 ) — Gain (loss) on liquidated residential mortgage loans (360 ) 3,645 — Gain (loss) on sale of REO (10,742 ) (3,686 ) — Other gains (losses) (7,973 ) 6,037 $ — $ (17,207 ) $ 35,487 $ 52,657 EXPENSE RECOGNITION Interest Expense — New Residential finances certain investments using floating rate repurchase agreements and loans. Interest is expensed as incurred. General and Administrative Expenses and Loan Servicing Expense — General and administrative expenses, including legal fees, audit fees, insurance premiums, and other costs, as well as loan servicing expenses, and are expensed as incurred. Management Fee and Incentive Compensation to Affiliate — These represent amounts due to the Manager pursuant to the Management Agreement. For further information on the Management Agreement, see Note 15. BALANCE SHEET MEASUREMENT Investments in Servicing Related Assets — Servicing Related Assets consist of New Residential’s investments in Excess MSRs and Servicer Advances. Upon acquisition, New Residential has elected to record each of such investments at fair value. New Residential elected to record its investments at fair value in order to provide users of the financial statements with better information regarding the effects of prepayment risk and other market factors on Servicing Related Assets. Under this election, New Residential records a valuation adjustment on its investments in Servicing Related Assets on a quarterly basis to recognize the changes in fair value in net income as described in “Income Recognition — Investments in Excess Mortgage Servicing Rights” and “Income Recognition — Investments in Servicer Advances.” Investments in Real Estate Securities — New Residential has classified its investments in real estate securities as available for sale. Securities available for sale are carried at market value with the net unrealized gains or losses reported as a separate component of accumulated other comprehensive income, to the extent impairment losses are considered temporary. At disposition, the net realized gain or loss is determined on the basis of the amortized cost of the specific investments and is included in earnings. Unrealized losses on securities are charged to earnings if they reflect a decline in value that is other-than-temporary. Investments in Residential Mortgage Loans — Residential mortgage loans for which New Residential has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are classified as held-for-investment. Performing loans held-for-investment are presented at the aggregate unpaid principal balance adjusted for any unamortized premium or discount, deferred fees or expenses, an allowance for loan losses, charge-offs and write-down for impaired loans. PCD loans held-for-investment are initially recorded at their purchase price at acquisition and are subsequently measured net of any allowance for loan losses. To the extent that the loans are classified as held-for-investment, New Residential periodically evaluates such loans for possible impairment as described in “—Impairment of Loans.” Loans which New Residential does not have the intent or the ability to hold into the foreseeable future are considered held-for-sale and are carried at the lower of their amortized cost basis or fair value. New Residential discontinues the accretion of discounts or amortization of premiums on loans if they are reclassified from held-for-investment to held-for-sale. Cash and Cash Equivalents and Restricted Cash — New Residential considers all highly liquid short-term investments with maturities of 90 days or less when purchased to be cash equivalents. Substantially all amounts on deposit with major financial institutions exceed insured limits. As of December 31, 2015 and 2014 , New Residential held $93.8 million and $29.4 million , respectively, of restricted cash related to the financing of the Servicer Advances (Note 6) that has been pledged to the note holders for interest and fees payable. As of December 31, 2015 , New Residential also held $0.9 million of restricted cash related to financing requirements of the Secured Corporate Note. Derivatives — New Residential financed certain investments with the same counterparty from which it purchased those investments, and accounted for the contemporaneous purchase of the investments and the associated financings as “linked transactions” prior to January 1, 2015. Accordingly, New Residential recorded a non-hedge derivative instrument on a net basis, with changes in market value recorded as “—Other Income” in the Consolidated Statements of Income. In the Consolidated Statement of Cash Flows, New Residential presented the linked transactions on a gross basis with the related asset purchased reflected as an investment activity and the related financing as a financing activity. New Residential also entered into various economic hedges, as further described in Note 10, that are marked to fair value on a periodic basis through “—Other Income.” Income Taxes — New Residential operates so as to qualify as a REIT under the requirements of the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. Requirements for qualification as a REIT include various restrictions on ownership of New Residential’s stock, requirements concerning distribution of taxable income and certain restrictions on the nature of assets and sources of income. A REIT must distribute at least 90% of its taxable income to its stockholders of which 85% plus any undistributed amounts from the prior year must be distributed within the taxable year in order to avoid the imposition of an excise tax. Distribution of the remaining balance may extend until timely filing of New Residential’s tax return in the subsequent taxable year. Qualifying distributions of taxable income are deductible by a REIT in computing taxable income. Certain activities of New Residential are conducted through taxable REIT subsidiaries (“TRSs”) and therefore are subject to federal and state income taxes. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases upon the change in tax status. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. New Residential recognizes tax benefits for uncertain tax positions only if it is more likely than not that the position is sustainable based on its technical merits. Interest and penalties on uncertain tax positions are included as a component of the provision for income taxes on the consolidated statements of operations. Other Assets and Other Liabilities — Other assets and liabilities are comprised of the following: Other Assets Accrued Expenses and Other Liabilities December 31, December 31, 2015 2014 2015 2014 Margin receivable, net $ 54,459 $ 59,021 Interest payable $ 18,268 $ 7,857 Other receivables (A) 10,893 1,797 Accounts payable 18,650 28,059 Principal paydown receivable 795 3,595 Derivative liabilities 13,443 14,220 Receivable from government agency (B) 68,833 9,108 Current taxes payable 1,573 2,349 Call rights 414 3,728 Other liabilities 6,112 20 Interest receivable 36,963 8,658 $ 58,046 $ 52,505 Ginnie Mae EBO servicer advance receivable, net (C) 49,725 — Other assets (D) 14,675 9,516 $ 236,757 $ 95,423 (A) Primarily includes a receivable from Ocwen related to their servicer rating downgrade, claims receivable related to reverse mortgage loans and receivables related to residual securities owned. (B) 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. (C) Represents an HLSS loan to a counterparty collateralized by servicer advances on Ginnie Mae EBO loans. (D) Primarily includes prepaid taxes and other prepaid expenses. New Residential’s subsidiary, NRZ Insurance (Note 11), is a member of FHLBC. As a condition of its FHLBC membership, NRZ Insurance is required to maintain a FHLBC stock investment, both for membership and for the level of advances, if any, from the FHLB to NRZ Insurance. New Residential accounts for its $2.8 thousand investment in FHLBC stock as a cost method investment included in Other Assets. This stock can only be redeemed or sold at its par value, and only to the FHLBC. Repurchase Agreements and Notes Payable — New Residential’s repurchase agreements are generally short-term debt that expire within one year . Such agreements and notes payable are carried at their contractual amounts, as specified by each repurchase or financing agreement, and generally treated as collateralized financing transactions. Recent Accounting Pronouncements In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure . The standard clarifies the timing of when a creditor is considered to have taken physical possession of residential real estate collateral for a consumer mortgage loan, resulting in the reclassification of the loan receivable to real estate owned. A creditor has taken physical possession of the property when either (1) the creditor obtains legal title through foreclosure, or (2) the borrower transfers all interests in the property to the creditor via a deed in lieu of foreclosure or a similar legal agreement. The standard also requires disclosure of the amount of foreclosed resi |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 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 allocation of management fees by Newcastle until the spin-off on May 15, 2013, (iii) the management fees and incentive compensation related to the Management Agreement, (iv) corporate cash and related interest income and (v) secured corporate loans and related interest expense during the periods outstanding. Securities owned by New Residential (Note 7) that are collateralized by servicer advances are included in the Servicer Advances segment. 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 Year Ended December 31, 2015 Interest income $ 134,565 $ 354,616 $ 110,123 $ 43,180 $ 1 $ 2,587 $ 645,072 Interest expense 11,625 216,837 18,230 21,510 1,615 4,196 274,013 Net interest income (expense) 122,940 137,779 91,893 21,670 (1,614 ) (1,609 ) 371,059 Impairment — — 5,788 18,596 — — 24,384 Other income 72,802 (53,426 ) (33,604 ) 15,405 43,954 (3,102 ) 42,029 Operating expenses 1,101 14,316 1,227 13,415 228 87,536 117,823 Income (Loss) Before Income Taxes 194,641 70,037 51,274 5,064 42,112 (92,247 ) 270,881 Income tax expense (benefit) — (8,127 ) — (3,199 ) 325 — (11,001 ) Net Income (Loss) $ 194,641 $ 78,164 $ 51,274 $ 8,263 $ 41,787 $ (92,247 ) $ 281,882 Noncontrolling interests in income (loss) of consolidated subsidiaries $ — $ 18,407 $ — $ — $ — $ (5,161 ) $ 13,246 Net income (loss) attributable to common stockholders $ 194,641 $ 59,757 $ 51,274 $ 8,263 $ 41,787 $ (87,086 ) $ 268,636 Servicing Related Assets Residential Securities and Loans Excess MSRs Servicer Advances Real Estate Securities Real Estate Loans Consumer Loans Corporate Total December 31, 2015 Investments $ 1,798,738 $ 7,857,841 $ 2,070,834 $ 1,157,433 $ — $ — $ 12,884,846 Cash and cash equivalents 18,507 95,686 42,984 13,262 6,359 73,138 249,936 Restricted cash 878 93,824 — — — — 94,702 Derivative assets — 2,689 — — — — 2,689 Other assets 34 198,962 1,600,091 106,330 1,767 53,365 1,960,549 Total assets $ 1,818,157 $ 8,249,002 $ 3,713,909 $ 1,277,025 $ 8,126 $ 126,503 $ 15,192,722 Debt $ 182,978 $ 7,550,680 $ 2,513,538 $ 1,004,980 $ 40,446 $ — $ 11,292,622 Other liabilities 2,277 18,153 740,392 14,382 459 137,857 913,520 Total liabilities 185,255 7,568,833 3,253,930 1,019,362 40,905 137,857 12,206,142 Total equity 1,632,902 680,169 459,979 257,663 (32,779 ) (11,354 ) 2,986,580 Noncontrolling interests in equity of consolidated subsidiaries — 190,647 — — — — 190,647 Total New Residential stockholders’ equity $ 1,632,902 $ 489,522 $ 459,979 $ 257,663 $ (32,779 ) $ (11,354 ) $ 2,795,933 Investments in equity method investees $ 217,221 $ — $ — $ — $ — $ — $ 217,221 Servicing Related Assets Residential Securities and Loans Excess MSRs Servicer Advances Real Estate Securities Real Estate Loans Consumer Loans Corporate Total Year Ended December 31, 2014 Interest income $ 49,180 $ 190,206 $ 60,208 $ 47,262 $ — $ 1 $ 346,857 Interest expense 1,294 110,968 12,689 11,073 4,184 500 140,708 Net interest income (expense) 47,886 79,238 47,519 36,189 (4,184 ) (499 ) 206,149 Impairment — — 1,391 9,891 — — 11,282 Other income 100,052 83,828 14,589 30,759 145,860 — 375,088 Operating expenses 713 2,183 10,012 12,688 917 78,386 104,899 Income (Loss) Before Income Taxes 147,225 160,883 50,705 44,369 140,759 (78,885 ) 465,056 Income tax expense — 20,806 — 2,059 92 — 22,957 Net Income (Loss) $ 147,225 $ 140,077 $ 50,705 $ 42,310 $ 140,667 $ (78,885 ) $ 442,099 Noncontrolling interests in income (loss) of consolidated subsidiaries $ — $ 89,222 $ — $ — $ — $ — $ 89,222 Net income (loss) attributable to common stockholders $ 147,225 $ 50,855 $ 50,705 $ 42,310 $ 140,667 $ (78,885 ) $ 352,877 Servicing Related Assets Residential Securities and Loans Excess MSRs Servicer Advances Real Estate Securities Real Estate Loans Consumer Loans Corporate Total December 31, 2014 Investments $ 748,609 $ 3,270,839 $ 2,463,163 $ 1,236,210 $ — $ — $ 7,718,821 Cash and restricted cash — 59,383 43,728 7,757 — 102,117 212,985 Restricted cash — 29,418 — — — — 29,418 Derivative assets — 194 32,091 312 — — 32,597 Other assets — 10,206 69,980 14,159 609 469 95,423 Total assets $ 748,609 $ 3,370,040 $ 2,608,962 $ 1,258,438 $ 609 $ 102,586 $ 8,089,244 Debt $ — $ 2,885,784 $ 2,246,651 $ 925,418 $ — $ — $ 6,057,853 Other liabilities 215 25,467 17,511 24,141 195 113,937 181,466 Total liabilities 215 2,911,251 2,264,162 949,559 195 113,937 6,239,319 Total equity 748,394 458,789 344,800 308,879 414 (11,351 ) 1,849,925 Noncontrolling interests in equity of consolidated subsidiaries — 253,836 — — — — 253,836 Total New Residential stockholders’ equity $ 748,394 $ 204,953 $ 344,800 $ 308,879 $ 414 $ (11,351 ) $ 1,596,089 Investments in equity method investees $ 330,876 $ — $ — $ — $ — $ — $ 330,876 Servicing Related Assets Residential Securities and Loans Excess MSRs Servicer Advances Real Estate Securities Real Estate Loans Consumer Loans Corporate Total Year Ended December 31, 2013 Interest income $ 40,921 $ 4,421 $ 39,533 $ 2,650 $ — $ 42 $ 87,567 Interest expense — 3,901 10,876 — — 247 15,024 Net interest income 40,921 520 28,657 2,650 — (205 ) 72,543 Impairment — — 4,993 461 — — 5,454 Other income 103,675 — 52,645 1,832 82,856 — 241,008 Operating expenses 215 2,077 312 357 2,076 37,437 42,474 Income (Loss) Before Income Taxes 144,381 (1,557 ) 75,997 3,664 80,780 (37,642 ) 265,623 Income tax expenses — — — — — — — Net Income (Loss) $ 144,381 $ (1,557 ) $ 75,997 $ 3,664 $ 80,780 $ (37,642 ) $ 265,623 Noncontrolling interests in income of consolidated subsidiaries $ — $ (326 ) $ — $ — $ — $ — $ (326 ) Net income (loss) attributable to stockholders $ 144,381 $ (1,231 ) $ 75,997 $ 3,664 $ 80,780 $ (37,642 ) $ 265,949 |
INVESTMENTS IN EXCESS MORTGAGE
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS | 12 Months Ended |
Dec. 31, 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, 2013 $ 324,151 $ — $ — $ 324,151 Purchases 85,735 8,378 — 94,113 Interest income 49,143 37 — 49,180 Other income 1,157 — — 1,157 Proceeds from repayments (92,483 ) — — (92,483 ) Change in fair value 41,373 242 — 41,615 Balance as of December 31, 2014 409,076 8,657 — 417,733 Transfers from indirect ownership 98,258 — — 98,258 Purchases 254,149 — 917,078 1,171,227 Interest income 66,039 180 68,346 134,565 Other income 2,999 — — 2,999 Proceeds from repayments (131,621 ) (1,291 ) (148,996 ) (281,908 ) Change in fair value (C) (D) (596 ) (2,239 ) 41,478 38,643 Balance as of December 31, 2015 $ 698,304 $ 5,307 $ 877,906 $ 1,581,517 (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 (Note1). (C) In 2015, New Residential recorded a cumulative positive prior period adjustment of $4.2 million on its Excess MSR investments serviced by Nationstar resulting from adjustments to certain modeling assumptions. (D) In the fourth quarter of 2015, New Residential recorded a change in estimate in the calculation of fair value of $41.5 million on its Excess MSR investments serviced by Ocwen resulting from adjustments to certain modeling assumptions. 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. 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 the recapture agreements, New Residential is generally entitled to a pro rata interest in the Excess MSRs on any initial or subsequent refinancing by Nationstar of a loan in the original portfolio. 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: December 31, 2015 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis (B) Carrying Value (C) New Residential Fortress-managed funds Nationstar Agency Original and Recaptured Pools $ 93,441,696 32.5% - 66.7% 0.0% - 40.0% 20.0% - 35.0% 5.8 $ 335,478 $ 378,083 Recapture Agreements — 32.5% - 66.7% 0.0% - 40.0% 20.0% - 35.0% 12.0 36,627 59,118 93,441,696 6.4 372,105 437,201 Non-Agency (D) Nationstar and SLS Serviced: Original and Recaptured Pools $ 94,923,975 33.3% - 80.0% 0.0% - 50.0% 0.0% - 33.3% 5.2 $ 210,691 $ 250,662 Recapture Agreements — 33.3% - 80.0% 0.0% - 50.0% 0.0% - 33.3% 12.3 14,130 15,748 Ocwen Serviced Pools 141,002,300 100.0 % — % — % 6.2 836,428 877,906 235,926,275 6.1 1,061,249 1,144,316 Total $ 329,367,971 6.2 $ 1,433,354 $ 1,581,517 December 31, 2014 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis (B) Carrying Value (C) New Residential Fortress-managed funds Nationstar Agency Original and Recaptured Pools $ 48,217,901 32.5%-66.7% 0.0%-33.3% 33.3%-35% 5.7 $ 140,455 $ 188,733 Recapture Agreements — 32.5%-66.7% 0.0%-33.3% 33.3%-35% 12.3 8,887 28,786 48,217,901 6.1 149,342 217,519 Non-Agency (D) Original and Recaptured Pools $ 54,263,857 33.3%-80.0% 0.0%-50.0% 0.0%-33.3% 5.0 $ 152,763 $ 189,812 Recapture Agreements — 33.3%-80.0% 0.0%-50.0% 0.0%-33.3% 11.9 11,291 10,402 54,263,857 5.5 164,054 200,214 Total $ 102,481,758 5.8 $ 313,396 $ 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 December 31, 2015 (Note 6). Changes in fair value recorded in other income is comprised of the following: Year Ended December 31, 2015 2014 2013 Original and Recaptured Pools $ 34,936 $ 35,000 $ 37,692 Recapture Agreements 3,707 6,615 15,640 $ 38,643 $ 41,615 $ 53,332 As of December 31, 2015 and 2014 , weighted average discount rates of 9.8% and 9.6% , respectively, were 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 December 31, State Concentration 2015 2014 California 26.7 % 31.5 % Florida 8.9 % 7.7 % New York 7.8 % 4.3 % Texas 4.3 % 4.2 % New Jersey 4.1 % 3.2 % Maryland 3.8 % 4.0 % Illinois 3.4 % 3.2 % Virginia 3.1 % 3.3 % Washington 2.7 % 3.6 % Massachusetts 2.7 % 2.1 % Other U.S. 32.5 % 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 | 12 Months Ended |
Dec. 31, 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: December 31, 2015 2014 Excess MSR assets $ 421,999 $ 653,293 Other assets 12,442 8,472 Other liabilities — (13 ) Equity $ 434,441 $ 661,752 New Residential’s investment $ 217,221 $ 330,876 New Residential’s ownership 50.0 % 50.0 % Year Ended December 31, 2015 2014 2013 Interest income $ 51,811 $ 67,698 $ 50,306 Other income (loss) 10,615 46,961 53,964 Expenses (107 ) (99 ) (3,585 ) Net income $ 62,319 $ 114,560 $ 100,685 New Residential’s investments in equity method investees changed during the years ended December 31, 2015 and 2014 as follows: 2015 2014 Balance at beginning of period $ 330,876 $ 352,766 Contributions to equity method investees — — Transfers to direct ownership (98,258 ) — Distributions of earnings from equity method investees (37,874 ) (53,427 ) Distributions of capital from equity method investees (8,683 ) (25,743 ) Change in fair value of investments in equity method investees (A) 31,160 57,280 Balance at end of period $ 217,221 $ 330,876 (A) In 2015, New Residential recorded a cumulative positive prior period adjustment of $2.7 million resulting from adjustments to certain modeling assumptions. The following is a summary of New Residential’s Excess MSR investments made through equity method investees: December 31, 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 $ 73,058,050 66.7% 50.0% $ 275,338 $ 351,275 5.7 Recapture Agreements — 66.7% 50.0% 45,421 70,724 11.9 Total $ 73,058,050 $ 320,759 $ 421,999 6.6 December 31, 2014 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 $ 87,584,677 66.7% 50.0% $ 299,065 $ 370,059 5.6 Recapture Agreements — 66.7% 50.0% 67,136 86,756 11.7 87,584,677 366,201 456,815 6.7 Non-Agency (E) Original and Recaptured Pools 58,673,144 66.7%-77.0% 50.0% 173,784 181,368 5.1 Recapture Agreements — 66.7%-77.0% 50.0% 12,325 15,110 12.4 58,673,144 186,109 196,478 5.6 Total $ 146,257,821 $ 552,310 $ 653,293 6.3 (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. (E) Excess MSR investments in which New Residential also invested in related Servicer Advances, including the basic fee component of the related MSR as of December 31, 2015 (Note 6). As of December 31, 2015 and 2014 , weighted average discount rates of 9.6% and 9.6% , respectively, were 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 December 31, State Concentration 2015 2014 California 12.9 % 23.5 % Florida 7.4 % 8.9 % Texas 6.1 % 4.8 % New York 5.8 % 5.6 % Georgia 5.7 % 4.1 % New Jersey 4.3 % 3.9 % Illinois 4.0 % 3.5 % Maryland 3.2 % 3.3 % Virginia 3.2 % 3.2 % Pennsylvania 3.1 % 2.3 % Other U.S. 44.3 % 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 | 12 Months Ended |
Dec. 31, 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 MSR (Notes 4 and 5), including the basic fee component of the related MSRs. 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 December 31, 2015 . As of December 31, 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 December 31, 2015 , the third-party co-investors and New Residential had previously funded their commitments, however the Buyer may recall $253.2 million and $203.2 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. 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 December 31, 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. As discussed in Note 2, New Residential early adopted the guidance in ASU 2015-02 and, as a result, determined that the Buyer is a VIE. The following table presents information on the assets and liabilities related to this consolidated VIE. As of December 31, 2015 2014 Assets Servicer advance investments, at fair value $ 2,344,245 $ 3,186,830 Cash and cash equivalents 40,761 58,983 All other assets 25,092 31,092 Total assets (A) $ 2,410,098 $ 3,276,905 Liabilities Notes payable $ 2,060,347 $ 2,811,371 All other liabilities 6,111 7,990 Total liabilities (A) $ 2,066,458 $ 2,819,361 (A) The creditors of the Buyer do not have recourse to the general credit of New Residential and the assets of the Buyer are not directly available to satisfy New Residential’s obligations. In December 2014, New Residential agreed to acquire (the “SLS Transaction”) 50% of the Excess MSRs and all of the Servicer Advances and related basic fee portion of the MSR (the “SLS Advance Fee”) 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 the SLS 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 the SLS 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. 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 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, made by New Residential: Amortized Cost Basis Carrying Value (A) Weighted Average Discount Rate Weighted Average Yield Weighted Average Life (Years) (B) Change in Fair Value Recorded in Other Income for Year then Ended December 31, 2015 Servicer Advances (C) $ 7,400,068 $ 7,426,794 5.6 % 5.5 % 4.4 $ (57,491 ) December 31, 2014 Servicer Advances $ 3,186,622 $ 3,270,839 5.4 % 5.8 % 4.0 $ 84,217 (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. (C) Excludes asset-backed securities collateralized by Servicer Advances with an aggregate face amount of $431.0 million and an aggregate carrying value of $430.3 million as of December 31, 2015 . See Note 7 for details related to these securities. The following is additional information regarding the Servicer Advances and related financing: Loan-to-Value (A) Cost of Funds (C) 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 (B) Gross Net December 31, 2015 Servicer Advances (D) $ 220,256,804 $ 7,578,110 3.4 % $ 7,058,094 91.2 % 90.2 % 3.4 % 2.6 % December 31, 2014 Servicer Advances (D) $ 96,547,773 $ 3,102,492 3.2 % $ 2,890,230 91.4 % 90.4 % 3.0 % 2.3 % (A) Based on outstanding Servicer Advances, excluding purchased but unsettled Servicer Advances and certain deferred servicing fees (“DSF”) which New Residential receives financing on. If New Residential were to include these DSF in the servicer advance balance, gross and net LTV as of December 31, 2015 would be 86.9% and 85.9% , respectively. Also excludes retained non-agency bonds with a current face amount of $175.8 million from the outstanding servicer advances debt. If New Residential were to sell these bonds, gross and net LTV as of December 31, 2015 would be 93.4% and 92.4% , respectively. (B) Ratio of face amount of borrowings to par amount of Servicer Advance collateral, net of any general reserve. (C) 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. (D) The following types of advances comprise the investments in Servicer Advances: December 31, 2015 2014 Principal and interest advances $ 2,229,468 $ 729,713 Escrow advances (taxes and insurance advances) 3,687,559 1,600,713 Foreclosure advances 1,661,083 772,066 Total $ 7,578,110 $ 3,102,492 Interest income recognized by New Residential related to its investments in Servicer Advances was comprised of the following: Year Ended December 31, 2015 2014 2013 Interest income, gross of amounts attributable to servicer compensation $ 754,717 $ 290,309 $ 6,708 Amounts attributable to base servicer compensation (97,351 ) (26,092 ) (2,287 ) Amounts attributable to incentive servicer compensation (305,050 ) (74,011 ) — Interest income from investments in Servicer Advances $ 352,316 $ 190,206 $ 4,421 Others’ interests in the equity of the Buyer is computed as follows: December 31, 2015 2014 Total Advance Purchaser LLC equity $ 343,640 $ 457,545 Others’ ownership interest 55.5 % 55.5 % Others’ interest in equity of consolidated subsidiary $ 190,647 $ 253,836 Others’ interests in the Buyer’s net income (loss) is computed as follows: Year Ended December 31, 2015 2014 2013 Net Advance Purchaser LLC income (loss) $ 33,180 $ 159,374 $ (517 ) Others’ ownership interest as a percent of total (A) 55.5 % 56.0 % 63.1 % Others’ interest in net income (loss) of consolidated subsidiaries (B) $ 18,407 $ 89,222 (326 ) (A) As a result, New Residential owned 44.5% , 44.0% and 36.9% of the Buyer, on average during the years ended December 31, 2015 , 2014 and 2013 , respectively. (B) Excludes HLSS shareholders’ interests in the net income (loss) of HLSS of $5.2 million during the year ended December 31, 2015 . See Note 11 regarding the financing of Servicer Advances. |
INVESTMENTS IN REAL ESTATE SECU
INVESTMENTS IN REAL ESTATE SECURITIES | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS IN REAL ESTATE SECURITIES | INVESTMENTS IN REAL ESTATE SECURITIES Agency residential mortgage backed securities (“RMBS”) are RMBS issued by a government sponsored enterprise, such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”). Non-Agency RMBS are issued by either public trusts or private label securitization entities. Activities related to New Residential’s investments in real estate securities were as follows: Year Ended December 31, 2015 Year Ended December 31, 2014 (in millions) (in millions) Agency Non Agency (A) Agency Non Agency Purchases Face $ 5,140.1 $ 2,397.9 $ 1,341.0 $ 3,187.5 Purchase Price $ 5,333.7 $ 1,288.9 $ 1,399.0 $ 1,455.8 Sales Face $ 5,772.5 $ 476.4 $ 746.9 $ 2,004.3 Amortized Cost $ 5,997.5 $ 422.7 $ 791.3 $ 1,228.4 Sale Price $ 6,007.6 $ 425.7 $ 796.4 $ 1,289.0 Gain on Sale $ 10.1 $ 3.0 $ 5.1 $ 60.6 (A) Purchases include $431.0 million face of servicer advance bonds for a purchase price of $431.0 million . On December 31, 2015 , New Residential sold and purchased $1.5 billion and $0.7 billion face amount of Agency RMBS for $1.5 billion and $0.7 billion , respectively. These unsettled sales and purchases were recorded on the balance sheet on trade date as Trade Receivable and Trades Payable. New Residential has exercised its call rights with respect to Non-Agency RMBS trusts and purchased performing and non-performing residential mortgage loans, including REO, contained in such trusts prior to their termination. In certain cases, New Residential sold portions of the purchased loans through securitizations, and retained bonds issued by such securitizations. In addition, New Residential received par on the securities issued by the called trusts which it owned prior to such trusts’ termination. Refer to Note 8 for further details on these transactions. On March 6, 2014, New Residential agreed to purchase approximately $625.0 million face amount of Non-Agency RMBS for approximately $553.0 million . The purchased securities represented 75% of the mezzanine and subordinate tranches (the “2009-1 Retained Certificates”) of a securitization sponsored by Third Street Funding LLC, an affiliate of OneMain. On May 30, 2014, New Residential sold the 2009-1 Retained Certificates for approximately $598.5 million and recorded a gain of approximately $39.7 million . The purchase and sale of the 2009-1 Retained Certificates is included in the table above. 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 Asset Type Outstanding Face Amount Amortized Cost Basis Gains Losses Carrying Value (A) Number of Securities Rating (B) Coupon (C) Yield Life (Years) (D) Principal Subordination (E) December 31, 2015 Agency RMBS (F)(G) $ 884,578 $ 918,633 $ 183 $ (1,218 ) $ 917,598 28 AAA 3.28 % 2.75 % 6.6 N/A Non-Agency RMBS (H) (I) 3,533,974 1,579,445 22,964 (18,126 ) 1,584,283 240 BB+ 1.63 % 5.03 % 6.8 12.1 % Total/Weighted Average $ 4,418,552 $ 2,498,078 $ 23,147 $ (19,344 ) $ 2,501,881 268 A- 2.69 % 4.19 % 6.7 December 31, 2014 Agency RMBS (F)(G) $ 1,646,361 $ 1,724,329 $ 18,572 $ (2,738 ) $ 1,740,163 104 AAA 3.22 % 2.22 % 5.0 N/A Non-Agency RMBS (H) 1,896,150 710,515 15,327 (2,842 ) 723,000 142 CCC 1.98 % 3.37 % 6.4 17.3 % Total/Weighted Average $ 3,542,511 $ 2,434,844 $ 33,899 $ (5,580 ) $ 2,463,163 246 A 2.86 % 2.83 % 5.7 (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 89 bonds with a carrying value of $333.0 million 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) Excludes residual bonds, and certain other Non-Agency bonds, with a carrying value of $227.4 million and $0.0 million , respectively, for which no coupon payment is expected. (D) The weighted average life is based on the timing of expected principal reduction on the assets. (E) Percentage of the amortized cost basis of securities that is subordinate to New Residential’s investments, excluding interest-only bonds and servicer advance bonds. (F) Includes securities issued or guaranteed by U.S. Government agencies such as Fannie Mae or Freddie Mac. (G) The total outstanding face amount was $0.7 billion and $1.0 billion for fixed rate securities and $0.2 billion and $0.6 billion for floating rate securities as of December 31, 2015 and 2014 , respectively. (H) The total outstanding face amount was $2.3 billion (including $1.7 billion of residual and interest-only notional amount) and $1.0 billion (including $959.1 million of interest-only notional amount) for fixed rate securities and $1.3 billion (including $164.4 million of residual and interest-only notional amount) and $882.4 million (including $130.6 million of residual and interest-only notional amount) for floating rate securities as of December 31, 2015 and 2014 , respectively. (I) Includes Other ABS consisting primarily of (i) interest-only securities which New Residential elected to carry at fair value and record changes to valuation through the income statement and representing 5.2% of the carrying value of the Non-Agency RMBS portfolio and (ii) bonds backed by servicer advances representing 27.2% 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 $ 1,522,256 $ 82,101 $ 5,227 $ (4,348 ) $ 82,980 12 AA+ 1.84 % 7.11 % 4.0 N/A Servicer Advance Bonds $ 431,000 $ 430,951 $ — $ (661 ) $ 430,290 5 AA+ 2.69 % 2.70 % 1.1 N/A Unrealized losses that are considered other than temporary are recognized currently in earnings. During the year ended December 31, 2015 , New Residential recorded OTTI charges of $5.8 million with respect to real estate securities. During the year ended December 31, 2014 , New Residential recorded OTTI of $1.4 million . During the year ended December 31, 2013 , New Residential recorded OTTI of $5.0 million , of which $3.8 million was recorded with respect to real estate securities included in the spin-off on May 15, 2013. Based on Newcastle’s analysis of these securities, Newcastle determined it did not have the intent to hold the securities past May 15, 2013. New Residential also recorded OTTI of $1.0 million with respect to real estate securities sold in January 2014 that were in an unrealized loss position as of December 31, 2013 since New Residential determined that it did not have the intent to hold the securities, as well as $0.3 million with respect to expected credit loss related to real estate securities in an unrealized loss position as of December 31, 2013, based on management’s analysis of expected cash flows of these 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 December 31, 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 $ 1,697,478 $ 1,028,088 $ (5,028 ) $ 1,023,060 $ (14,508 ) $ 1,008,552 127 BBB 2.14 % 4.25 % 5.9 Twelve or More Months 766,444 192,699 — 192,699 (4,836 ) 187,863 25 AA+ 2.30 % 1.72 % 5.1 Total/Weighted Average $ 2,463,922 $ 1,220,787 $ (5,028 ) $ 1,215,759 $ (19,344 ) $ 1,196,415 152 BBB+ 2.17 % 3.85 % 5.7 (A) This amount represents other-than-temporary impairment recorded on securities that are in an unrealized loss position as of December 31, 2015 . (B) The weighted average rating of securities in an unrealized loss position for less than twelve months excludes the rating of 51 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: December 31, 2015 Unrealized Losses Fair Value Amortized Cost Basis After Impairment Credit (A) Non-Credit (B) Securities New Residential intends to sell (C) $ 19,875 $ 19,875 $ (224 ) $ — 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 172,114 174,049 (4,804 ) (1,935 ) Non-credit impaired securities 1,004,426 1,021,835 — (17,409 ) Total debt securities in an unrealized loss position $ 1,196,415 $ 1,215,759 $ (5,028 ) $ (19,344 ) (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 December 31, 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: Year Ended December 31, 2015 2014 Beginning balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income $ 1,127 $ 2,071 Increases to credit losses on securities for which an OTTI was previously recognized and a portion of an OTTI was recognized in other comprehensive income 5 568 Additions for credit losses on securities for which an OTTI was not previously recognized 5,782 823 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 — (401 ) Reduction for securities sold during the period (675 ) (1,934 ) Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income $ 6,239 $ 1,127 The table below summarizes the geographic distribution of the collateral securing New Residential’s Non-Agency RMBS: December 31, 2015 2014 Geographic Location (A) Outstanding Face Amount Percentage of Total Outstanding Outstanding Face Amount Percentage of Total Outstanding Western U.S. $ 1,097,609 35.3 % $ 779,930 41.1 % Southeastern U.S. 758,167 24.4 % 409,755 21.6 % Northeastern U.S. 583,366 18.8 % 344,716 18.2 % Midwestern U.S. 335,406 10.8 % 190,480 10.0 % Southwestern U.S. 309,236 10.0 % 170,829 9.0 % Other (B) 19,189 0.7 % 440 0.1 % $ 3,102,973 100.0 % $ 1,896,150 100.0 % (A) Excludes $431.0 million face amount of bonds backed by servicer advances. (B) 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 year ended December 31, 2015 , the face amount of these real estate securities was $583.6 million , with total expected cash flows of $502.3 million and a fair value of $329.5 million on the dates that New Residential purchased the respective securities. For those securities acquired during the year ended December 31, 2014 , the face amount was $754.6 million , the total expected cash flows were $734.9 million and the fair value was $552.1 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 December 31, 2015 $ 873,763 $ 504,659 December 31, 2014 $ 536,342 $ 414,298 The following is a summary of the changes in accretable yield for these securities: Year Ended December 31, 2015 2014 Beginning Balance $ 181,671 $ 143,067 Adoption of ASU No. 2014-11 (Note 2) 146,741 — Additions 172,828 189,252 Accretion (42,800 ) (14,035 ) Reclassifications from (to) non-accretable difference (36,326 ) 20,385 Disposals (105,593 ) (156,998 ) Ending Balance $ 316,521 $ 181,671 See Note 11 regarding the financing of real estate securities. |
INVESTMENTS IN RESIDENTIAL MORT
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS | INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS 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 ◦ PCD 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: See Note 10 for a discussion of transactions formerly accounted for as linked transactions. December 31, 2015 Outstanding Face Amount Carrying (A) Loan Weighted Average Yield Weighted Average Life (Years) (B) Floating Rate Loans as a % of Face Amount Loan to Value Ratio (“LTV”) (C) Weighted Avg. Delinquency (D) Weighted Average FICO (E) Loan Type Reverse Mortgage Loans (F)(G) $ 34,423 $ 19,560 136 10.0 % 4.2 21.8 % 112.9 % 71.3 % N/A Performing Loans (H) 21,483 19,964 671 9.1 % 6.7 17.1 % 77.4 % 7.5 % 626 Purchased Credit Deteriorated Loans (I) 450,229 290,654 2,118 5.5 % 2.5 18.7 % 115.4 % 97.6 % 578 Total Residential Mortgage Loans, held-for-investment $ 506,135 $ 330,178 2,925 6.0 % 2.8 18.8 % 113.6 % 92.0 % 580 Performing Loans, held-for-sale (H) $ 270,585 $ 277,084 1,838 4.6 % 4.9 4.6 % 57.0 % — % 702 Non-Performing Loans, held-for-sale (I) (J) 589,129 499,597 3,428 5.9 % 2.9 14.5 % 104.5 % 81.1 % 580 Total Residential Mortgage Loans, held-for-sale $ 859,714 $ 776,681 5,266 5.5 % 3.5 11.4 % 89.6 % 55.6 % 619 December 31, 2014 Loan Type Reverse Mortgage Loans (F)(G) $ 45,182 $ 24,965 198 10.2 % 3.9 21.4 % 108.2 % 82.6 % N/A Performing Loans (H) 24,399 22,873 731 7.9 % 5.9 17.4 % 72.0 % — % 628 Total Residential Mortgage Loans, held-for-investment $ 69,581 $ 47,838 929 9.4 % 4.6 20.0 % 95.5 % 53.6 % 628 Performing Loans, held-for-sale (H) $ 403,992 $ 388,485 5,809 5.6 % 7.2 23.0 % 85.0 % 5.0 % 626 Non-Performing Loans, held-for-sale (I) 960,224 737,954 5,025 5.9 % 2.6 3.7 % 104.0 % 90.0 % 571 Total Residential Mortgage Loans, held-for-sale $ 1,364,216 $ 1,126,439 10,834 5.8 % 4.0 9.4 % 98.4 % 64.8 % 587 (A) Includes residential mortgage loans with a United States federal income tax basis of $1,204.2 million and $1,159.1 million as of December 31, 2015 and 2014 , respectively. (B) The weighted average life is based on the expected timing of the receipt of cash flows. (C) LTV refers to the ratio comparing the loan’s unpaid principal balance to the value of the collateral property. (D) Represents the percentage of the total principal balance that are 60+ days delinquent. (E) The weighted average FICO score is based on the weighted average of information updated and provided by the loan servicer on a monthly basis. (F) Represents a 70% interest New Residential holds in reverse mortgage loans. The average loan balance outstanding based on total UPB was $0.4 million and $0.3 million at December 31, 2015 and 2014 , respectively, and 71% and 77% of these loans outstanding at each respective date 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. (G) FICO scores are not used in determining how much a borrower can access via a reverse mortgage loan. (H) 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 premiums of $12.0 million . (I) 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 December 31, 2015 , New Residential has placed all of these loans on nonaccrual status, except as described in (J) below. (J) Includes $246.3 million UPB of Ginnie Mae 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 30 days past due provide an early warning of borrowers who may be experiencing financial difficulties. For residential mortgage loans, the current LTV ratio is an indicator of the potential loss severity in the event of default. Finally, the geographic distribution of the loan collateral also provides insight as to the credit quality of the portfolio, as factors such as the regional economy, home price changes and specific events will affect credit quality. The table below summarizes the geographic distribution of the underlying residential mortgage loans: Percentage of Total Outstanding Unpaid Principal Amount December 31, State Concentration 2015 2014 New York 14.5 % 12.2 % New Jersey 13.1 % 7.0 % California 12.3 % 15.0 % Florida 10.7 % 6.3 % Illinois 4.3 % 4.4 % Maryland 3.5 % 3.4 % Massachusetts 3.3 % 2.4 % Texas 3.3 % 4.1 % Washington 3.2 % 3.0 % Pennsylvania 2.8 % 3.9 % Other U.S. 29.0 % 38.3 % 100.0 % 100.0 % See Note 11 regarding the financing of residential mortgage loans. New Residential has exercised its call rights with respect to the following Non-Agency RMBS trusts and purchased performing and non-performing residential mortgage loans, including REO, contained in such trusts prior to their termination. In certain cases, New Residential sold portions of the purchased loans through securitizations, and retained bonds issued by such securitizations. In addition, New Residential received par on the securities issued by the called trusts which it owned prior to such trusts’ termination. The following table summarizes these transactions (dollars in millions). Securities Owned Prior Assets Acquired Loans Sold (C) Retained Bonds Retained Assets (C) Date of Call (A) Number of Trusts Called Face Amount Amortized Cost Basis Loan UPB Loan Price (B) REO & Other Price (B) UPB Gain (Loss) Basis Type Loan UPB Loan Price REO & Other Price May 27, 2014 16 $ 17.4 $ 12.0 $ 282.2 $ 289.4 $ — $ 233.8 $ 3.5 N/A N/A $ 48.4 $ 40.1 $ 1.3 August 25, 2014 19 15.4 13.1 530.1 536.3 3.0 463.0 7.0 $ 25.8 Interest-Only 66.4 46.3 3.0 December 26, 2014 25 27.9 24.0 597.1 623.7 — 516.1 0.7 28.9 Interest-Only 81.0 71.7 4.3 June 25, 2015 18 13.7 9.1 369.0 388.8 — 334.5 (2.8 ) 15.0 Interest-Only 34.5 31.7 1.3 September 25, 2015 7 7.4 4.5 216.3 223.1 1.5 N/A (C) N/A (C) N/A (C) N/A (C) 19.4 17.2 1.5 November 25, 2015 14 3.9 3.0 345.4 351.7 1.2 511.8 2.4 22.0 Interest-Only 29.8 23.4 1.2 December 23, 2015 14 61.4 48.0 309.1 315.1 3.1 N/A (C) N/A (C) N/A (C) N/A (C) N/A (C) N/A (C) N/A (C) (A) Any related securitization may occur on the same or a subsequent date, depending on market conditions and other factors. Except as otherwise noted in (C) below, there was one securitization associated with each call. (B) Price includes par amount paid for all underlying mortgage loans of the trusts, plus the basis of the exercised call rights, plus advances and costs incurred (including MSR Fund Payments, as defined in Note 15) in exercising such call rights. (C) Loans were sold through a securitization which was treated as a sale for accounting purposes. The securitization that occurred in November 2015 primarily included loans from the September 25, 2015 and November 25, 2015 calls, but also included previously acquired loans. The retained assets disclosed for the September 25, 2015 call are net of the related loans sold in the November 2015 securitization. No loans from the December 23, 2015 call had been securitized by December 31, 2015 . Reverse Mortgage Loans In February 2013, New Residential, through a subsidiary, entered into an agreement to co-invest in 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: December 31, 2015 Days Past Due Delinquency Status (A) Current 93.5 % 30-59 5.9 % 60-89 0.3 % 90-119 (B) 0.1 % 120+ (C) 0.2 % 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 reverse mortgage loans and performing loans held-for-investment were as follows: Reverse Mortgage Loans Performing Loans Balance at December 31, 2013 $ 33,539 $ — Purchases/additional fundings — 134,818 Proceeds from repayments (2,810 ) (10,381 ) Accretion of loan discount and other amortization (A) 6,501 2,994 Provision for loan losses (1,111 ) (651 ) Transfer of loans to other assets (10,261 ) — Transfer of loans to real estate owned (947 ) — Transfer of loans to held-for-sale — (103,907 ) Reversal of valuation provision on loans transferred to other assets 54 — Balance at December 31, 2014 24,965 22,873 Purchases/additional fundings 988 — Proceeds from repayments (687 ) (2,918 ) Accretion of loan discount and other amortization (A) 5,904 52 Provision for loan losses (35 ) (43 ) Transfer of loans to other assets (11,574 ) — Transfer of loans to real estate owned (1 ) — Balance at December 31, 2015 $ 19,560 $ 19,964 (A) Includes accelerated accretion of discount on loans paid in full and on loans transferred to other assets. Activities related to the valuation provision on reverse mortgage loans and allowance for loan losses on performing loans held-for-investment were as follows: Reverse Mortgage Loans Performing Loans Balance at December 31, 2013 $ 461 $ — Provision for loan losses (A) 1,111 1,811 Charge-offs (B) — (364 ) Reversal of valuation provision on loans transferred to other assets (54 ) — Balance at December 31, 2014 1,518 1,447 Provision for loan losses (A) 35 43 Charge-offs (B) — (1,371 ) Balance at December 31, 2015 $ 1,553 $ 119 (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 PCD 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 Deteriorated Loans New Residential determined at acquisition that the PCD loans acquired would be aggregated into pools based on common risk characteristics (FICO score, delinquency status, collateral type, loan-to-value ratio). Loans aggregated into pools are accounted for as if each pool were a single loan with a single composite interest rate and an aggregate expectation of cash flows. Activities related to the carrying value of PCD loans held-for-investment were as follows: Balance at December 31, 2013 $ — Purchases/additional fundings 749,739 Sales — Proceeds from repayments (20,431 ) Accretion of loan discount and other amortization 30,361 Transfer of loans to real estate owned (21,842 ) Transfer of loans to held-for-sale (737,827 ) Balance at December 31, 2014 $ — Purchases/additional fundings 289,664 Sales — Proceeds from repayments — Accretion of loan discount and other amortization 990 Transfer of loans to real estate owned — Balance at December 31, 2015 $ 290,654 New Residential’s PCD loans were classified as held-for-sale at December 31, 2014 and, therefore, were not subject to the accounting in ASC No. 310-30. The following is the contractually required payments receivable, cash flows expected to be collected, and fair value at acquisition date for PCD loans acquired during the year ended December 31, 2015 : Contractually Required Payments Receivable Cash Flows Expected to be Collected Fair Value As of Acquisition Date 717,718 361,717 289,664 The following is the unpaid principal balance and carrying value for loans, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments: Unpaid Principal Balance Carrying Value December 31, 2015 $ 450,229 $ 290,654 December 31, 2014 $ 960,224 $ 737,954 The following is a summary of the changes in accretable yield for these loans: Balance at December 31, 2013 $ — Additions 207,231 Accretion (30,361 ) Reclassifications from non-accretable difference (A) 6,836 Disposals (B) (8,324 ) Transfer to held-for-sale (C) (175,382 ) Balance at December 31, 2014 $ — Additions 72,053 Accretion (990 ) Reclassifications from non-accretable difference (A) — Disposals (B) — Balance at December 31, 2015 $ 71,063 (A) Represents a probable and significant increase in cash flows previously expected to be uncollectible. (B) Includes sales of loans or foreclosures, which result in removal of the loan from the PCD loan pool at its carrying amount. (C) Recognition of the accretable yield ceases upon transfer of the PCD loan pools to held-for-sale. Loans Held-for-Sale Activities related to the carrying value of loans held-for-sale were as follows: Balance at December 31, 2013 $ — Purchases (A) 1,577,933 Sales (1,289,687 ) Transfers of loans from linked transactions (B) 4,595 Transfers of loans from held-for-investment (C) 841,734 Proceeds from repayments (2,413 ) Valuation provision on loans (D) (5,723 ) Balance at December 31, 2014 $ 1,126,439 Purchases (A) 1,695,124 Sales (1,871,054 ) Transfer of loans to other assets (41,752 ) Transfer of loans to real estate owned (34,139 ) Adoption of ASU No. 2014-11 (E) 1,831 Proceeds from repayments (85,698 ) Valuation provision on loans (D) (14,070 ) Balance at December 31, 2015 $ 776,681 (A) Represents loans acquired with the intent to sell, including loans acquired in the HLSS Acquisition (Note 1). (B) Represents loans previously financed with the selling counterparty and previously accounted for as linked transactions that New Residential decided to sell. (C) Represents loans not acquired with the intent to sell that New Residential decided to sell. (D) Represents the fair value adjustments to loans upon transfer to held-for-sale and provision recorded on certain purchased held-for-sale loans, including $10.5 million of provision related to the call transaction executed on December 23, 2015. (E) Represents loans financed with the selling counterparty that were previously accounted for as linked transactions (Note 10). Real estate owned (REO) New Residential recognizes REO assets at the completion of the foreclosure process or upon execution of a deed in lieu of foreclosure with the borrower. REO assets are managed for prompt sale and disposition at the best possible economic value. Real Estate Owned Balance at December 31, 2014 $ 61,933 Purchases 26,208 Transfer of loans to real estate owned 35,322 Sales (68,441 ) Valuation provision on REO (4,448 ) Balance at December 31, 2015 $ 50,574 As of December 31, 2015 , New Residential had non-performing residential mortgage loans that were in the process of foreclosure with an unpaid principal balance of $565.3 million . In addition, New Residential has recognized $68.8 million in claims receivable from FHA on Ginnie Mae EBO loans and reverse mortgage loans for which foreclosure has been completed and for which New Residential has made, or intends to make, a claim (Note 2) during the year ended December 31, 2015 . |
INVESTMENTS IN CONSUMER LOANS,
INVESTMENTS IN CONSUMER LOANS, EQUITY METHOD INVESTEES | 12 Months Ended |
Dec. 31, 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, OneMain acquired 47% and an affiliate of Blackstone Tactical Opportunities Advisors L.L.C. acquired 23% . OneMain acts as the managing member of the Consumer Loan Companies. The Consumer Loan Companies initially financed approximately 73% of the 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. All of these notes were refinanced in October 2014 as described below. 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, OneMain became the servicer of the loans and provides all servicing and advancing functions for the portfolio. New Residential accounts for its investment in the Consumer Loan Companies pursuant to the equity method of accounting because it can exercise significant influence over the Consumer Loan Companies, but the requirements for consolidation are not met. New Residential’s share of earnings and losses in these equity method investees is included in “Earnings from investments in consumer loans, equity method investees” on the Consolidated Statements of Income. Equity method investments are included in “Investments in consumer loans, equity method investees” on the Consolidated Balance Sheets. 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 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 cash distributions. The following tables summarize the investment in the Consumer Loan Companies held by New Residential: December 31, 2015 2014 Consumer Loan Assets (amortized cost basis) $ 1,698,130 $ 2,088,330 Other Assets 70,469 92,051 Debt (1,912,267 ) (2,411,421 ) Other Liabilities (5,640 ) (12,340 ) Equity $ (149,308 ) $ (243,380 ) New Residential’s investment $ — $ — New Residential’s ownership 30.0 % 30.0 % Year Ended December 31, 2015 2014 2013 Interest income $ 455,479 $ 534,990 $ 481,056 Interest expense (87,000 ) (81,706 ) (71,639 ) Provision for finance receivable losses (67,935 ) (104,921 ) (60,619 ) Other expenses, net (60,263 ) (74,781 ) (67,225 ) Change in fair value of debt — (14,810 ) — Loss on extinguishment of debt — (21,151 ) — Net income $ 240,281 $ 237,621 $ 281,573 New Residential’s equity in net income through October 3, 2014 $ — $ 53,840 $ 82,856 New Residential’s ownership 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) December 31, 2015 $ 2,094,904 30.0 % $ 1,698,130 18.2 % 18.1 % 3.1 December 31, 2014 $ 2,589,748 30.0 % $ 2,088,330 18.1 % 16.1 % 3.6 (A) Represents the November 30, 2015 and 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 was 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. New Residential’s investments in consumer loans, equity method investees changed as follows: Year Ended December 31, 2015 2014 Balance at beginning of period $ — $ 215,062 Contributions to equity method investees — — Distributions of earnings from equity method investees — (53,840 ) Distributions of capital from equity method investees — (215,062 ) Earnings from investments in consumer loan equity method investees — 53,840 Balance at end of period $ — $ — Year Ended December 31, 2015 2014 Tax withholding payments on behalf of New Residential, treated as non-cash distributions $ 585 $ 609 Distributions in excess of basis, treated as gains, excluding tax withholding payments $ 43,369 $ 91,411 |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES As of December 31, 2015 , New Residential’s derivative instruments included economic hedges that were not designated as hedges for accounting purposes. As of December 31, 2014 and 2013, New Residential’s derivative instruments also included RMBS and non-performing loans accounted for as linked transactions that were not entered into for risk management purposes or for hedging activity. New Residential uses economic hedges to hedge a portion of its interest rate risk exposure. Interest rate risk is sensitive to many factors including governmental monetary and tax policies, domestic and international economic and political considerations and other factors. New Residential’s credit risk with respect to economic hedges 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 December 31, 2015 , New Residential held to-be-announced forward contract positions (“TBAs”) of $1.5 billion 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 of December 31, 2015 , New Residential separately held TBAs of $750.0 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 set-off with the TBA counterparty. New Residential purchased these TBAs during the fourth quarter of 2015, but as the specific securities were not identified as of December 31, 2015 , the positions are recorded as derivatives within the Accrued Expenses and Other Liabilities line on the balance sheet. 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 Consolidated Balance Sheets as follows: December 31, Balance Sheet Location 2015 2014 Derivative assets Real Estate Securities (A) Derivative assets $ — $ 32,090 Non-Performing Loans (A) Derivative assets — 312 Interest Rate Caps Derivative assets 2,689 195 $ 2,689 $ 32,597 Derivative liabilities TBAs Accrued expenses and other liabilities $ 2,058 $ 4,985 Interest Rate Swaps Accrued expenses and other liabilities 11,385 9,235 $ 13,443 $ 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: December 31, 2015 2014 Non-Performing Loans (A) $ — $ 2,931 Real Estate Securities (B) — 186,694 TBAs, short position (C) 1,450,000 1,234,000 TBAs, long position (C) 750,000 — Interest Rate Caps (D) 3,400,000 210,000 Interest Rate Swaps (E) 2,444,000 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 0.50% for $650.0 million of notional, at 0.75% for $2,600.0 million of notional, and at 4.0% for $150.0 million of notional. (E) Receive LIBOR and pay a fixed rate. The following table summarizes gains (losses) recorded in relation to derivatives: Year Ended December 31, 2015 2014 2013 Other income (loss), net Non-Performing Loans (A) $ — $ (1,149 ) $ 1,831 Real Estate Securities (A) — 2,336 (11 ) TBAs (2,058 ) (4,985 ) — Interest Rate Caps (1,749 ) (4 ) — Interest Rate Swaps (2,150 ) (9,235 ) — (5,957 ) (13,037 ) 1,820 Gain (loss) on settlement of investments, net Non-Performing Loans (A) — 5,609 — Real Estate Securities (A) — 43 — TBAs (27,142 ) (33,638 ) — Interest Rate Caps (1,180 ) — — Interest Rate Swaps (16,241 ) (8,400 ) — U.S.T. Short Positions — 176 — (44,563 ) (36,210 ) — Total gains (losses) $ (50,520 ) $ (49,247 ) $ 1,820 (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 presents both gross and net information about transactions formerly accounted for as linked transactions: December 31, 2014 Non-Performing Loans Non-performing loan assets, at fair value (A) $ 1,581 Repurchase agreements (B) (1,269 ) 312 Real Estate Securities Real estate securities, at fair value (C) 116,739 Repurchase agreements (B) (84,649 ) 32,090 Net assets recognized as linked transactions $ 32,402 (A) Non-performing loans that had a UPB of $2.9 million as of December 31, 2014 , which represented the notional amount of the linked transaction and accrued interest. (B) Represents carrying amount that approximates fair value. (C) Real estate securities that had a current face amount of $186.7 million as of December 31, 2014 , which represented the notional amount of the linked transaction. |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | DEBT OBLIGATIONS The following table presents certain information regarding New Residential’s debt obligations: December 31, 2015 December 31, 2014 Collateral Debt Obligations/Collateral Month Issued Outstanding Face Amount Carrying Value (A) Final Stated Maturity (B) Weighted Average Funding Cost Weighted Average Life (Years) Outstanding Face Amortized Cost Basis Carrying Value Weighted Average Life (Years) Carrying Value (A) Repurchase Agreements (C) Agency RMBS (D) Various $ 1,683,305 $ 1,683,305 Jan-16 0.60 % 0.1 $ 1,673,125 $ 1,731,758 $ 1,730,586 0.6 $ 1,707,602 Non-Agency RMBS (E) Various 1,333,852 1,333,852 Jan-16 to May-16 1.72 % 0.1 3,233,171 1,535,350 1,538,703 7.0 539,049 Residential Mortgage Loans (F) Various 908,811 907,993 May-16 to Jan-17 2.80 % 0.8 1,318,603 1,091,523 1,075,816 3.2 867,334 Real Estate Owned (G) (H) Various 77,528 77,458 Feb-16 to Jan-17 3.05 % 0.9 N/A N/A 86,911 N/A 35,105 Consumer Loan Investment (I) Apr-15 40,446 40,446 Apr-16 3.83 % 0.3 N/A N/A — 3.1 — Total Repurchase Agreements 4,043,942 4,043,054 1.54 % 0.2 3,149,090 Notes Payable Secured Corporate Note (J) May-15 184,433 182,978 Apr-17 5.67 % 1.3 92,619,325 217,517 261,102 5.1 — Servicer Advances (K) Various 7,058,094 7,047,061 Apr-16 to Aug-18 3.39 % 1.4 7,578,110 7,400,068 7,426,794 4.4 2,885,784 Residential Mortgage Loans (L) Oct-15 19,529 19,529 Oct-16 3.08 % 0.8 34,423 21,113 19,560 4.2 22,194 Real Estate Owned — — — — — % — N/A N/A — N/A 785 Total Notes Payable 7,262,056 7,249,568 3.45 % 1.3 2,908,763 Total/Weighted Average $ 11,305,998 $ 11,292,622 2.77 % 1.0 $ 6,057,853 (A) Net of deferred financing costs associated with the adoption of ASU No. 2015-03 (Note 2). (B) All debt obligations with a stated maturity of January or February 2016 were refinanced, extended or repaid. (C) These repurchase agreements had approximately $4.8 million of associated accrued interest payable as of December 31, 2015 . (D) All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include approximately $1.5 billion of related trade and other receivables. (E) All of the Non-Agency RMBS repurchase agreements have LIBOR-based floating interest rates. This includes repurchase agreements of $145.8 million on retained servicer advance bonds. (F) All of these repurchase agreements have LIBOR-based floating interest rates. (G) All of these repurchase agreements have LIBOR-based floating interest rates. (H) Includes financing collateralized by receivables including claims from FHA on Ginnie Mae EBO loans for which foreclosure has been completed and for which New Residential have made or intend to make a claim on the FHA guarantee. (I) The repurchase agreement bears interest equal to three-month LIBOR plus 3.50% and is collateralized by New Residential’s interest in consumer loans (Note 9). (J) 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 amount of the collateral represents the UPB of the residential mortgage loans underlying the Excess MSRs that secure this corporate note. (K) $2.7 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 1.7% to 2.2% . (L) The note is payable to Nationstar and bears interest equal to one-month LIBOR plus 2.875% . As of December 31, 2015 , New Residential had no outstanding repurchase agreements where the amount at risk with any individual counterparty or group of related counterparties exceeded 10% of New Residential’s stockholders' equity. The amount at risk under repurchase agreements is defined as the excess of carrying amount (or market value, if higher than the carrying amount) of the securities or other assets sold under agreement to repurchase, including accrued interest plus any cash or other assets on deposit to secure the repurchase obligation, over the amount of the repurchase liability (adjusted for accrued interest). HLSS Servicer Advance Receivables Trust (“HSART”) On October 1, 2015, an event of default (the “Specified Default”) occurred under the indenture related to certain notes issued by HSART, a wholly-owned subsidiary of New Residential. The Specified Default occurred as a result of (and solely as a result of) Ocwen’s master servicer rating downgrade to “Below Average”, announced by S&P on September 29, 2015. After giving effect to such downgrade, Ocwen ceased to be an “Eligible Subservicer” under the indenture causing the “Collateral Test” under the indenture to not be satisfied. The continuing failure of the Collateral Test as of close of business on October 1, 2015 resulted in the occurrence of the Specified Default. The Specified Default caused $2.5 billion of term notes issued by HSART to become immediately due and payable, without premium or penalty, as of the close of business on October 1, 2015, in accordance with the terms of HSART’s indenture. New Residential had previously secured approximately $4.0 billion of surplus Servicer Advance financing commitments from HSART’s lenders. HSART repaid all $2.5 billion of the term notes on October 2, 2015 in full with the proceeds of draws by HSART on variable funding notes previously issued by HSART. The holders of the variable funding notes issued by HSART previously agreed that the Specified Default would not be deemed an “event of default” under HSART’s indenture for purposes of their variable funding notes. After giving effect to the repayment of the term notes issued by HSART, the only outstanding notes issued by HSART are variable funding notes. No other material obligation of HSART arises, increases or accelerates as a result of the transactions described herein. During the first three quarters of 2015, through their investment manager, certain bondholders (the “HSART Bondholders”) alleged that events of default had occurred under HSART and that, as a result, the HSART Bondholders were due additional interest under the related agreements. In February 2015, in response to such allegations, instead of releasing such amounts to New Residential’s subsidiary that sponsors the HSART transaction entitled thereto, the trustee of HSART began to withhold, monthly, such interest (the “Withheld Funds”) so that such amounts were reserved in the event that it was determined that any of the alleged events of default had occurred. On August 28, 2015, the trustee commenced a legal proceeding requesting instruction from the court regarding the alleged defaults and the disposition of the Withheld Funds. On October 2, 2015, as described above, the notes held by the HSART Bondholders were repaid in full. On October 14, 2015, the court ruled that no event of default had occurred under HSART, authorized the trustee to release the Withheld Funds and dismissed the legal proceeding. As a result of this ruling, $92.7 million was released from restricted cash accounts related to HSART and became available for unrestricted use by New Residential. On October 13, 2015, New Residential entered into a settlement agreement in connection with which a subsidiary of New Residential was liable for a $9.1 million payment to certain HSART Bondholders, which was recorded within General and Administrative Expenses; this agreement did not impact other former or existing bondholders of HSART. Federal Home Loan Bank of Cincinnati Membership In November 2015, New Residential’s wholly-owned captive insurance subsidiary, NRZ Insurance Holdings LLC (“NRZ Insurance”), was granted membership to the Federal Home Loan Bank of Cincinnati (“FHLBC”) . The 12 regional Federal Home Loan Banks (“FHLBs”) provide long-term and short-term secured loans, called “advances,” to their members, provided the member meets certain creditworthiness standards, pledges sufficient eligible collateral and complies with its agreements with FHLB. Each advance requires approval by the FHLB and is secured by collateral in accordance with the FHLB’s credit and collateral guidelines, as may be revised from time to time by the FHLB. FHLB members may use a variety of real estate related assets, including residential mortgage loans, Agency RMBS and certain Non-Agency RMBS, as collateral for advances. In January 2016, however, FHFA announced a final rule that will terminate the FHLB memberships of captive insurance companies. Absent the final rule being overturned, or the passage of an amendment to the Federal Home Loan Bank Act permitting captive insurance companies to be members of FHLBs, we do not expect NRZ Insurance to borrow from FHLBC, and NRZ Insurance’s FHLBC membership will terminate in February 2017. General 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 $4.0 billion of repurchase agreements as of December 31, 2015 . 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 (A) Real Estate Securities Real Estate Loans and REO Other Total Balance at December 31, 2013 (B) $ 2,390,778 $ 1,620,711 $ 22,840 $ 75,000 $ 4,109,329 Repurchase Agreements: Borrowings — 4,122,434 2,027,301 150,000 6,299,735 Repayments — (3,496,494 ) (1,124,862 ) (150,000 ) (4,771,356 ) Notes Payable: Borrowings 5,840,232 — 1,242 — 5,841,474 Retrospective adjustment for the adoption of ASU No. 2015-03 (Note 2) (4,446 ) — — — (4,446 ) Repayments (5,340,780 ) — (1,103 ) (75,000 ) (5,416,883 ) Balance at December 31, 2014 (B) $ 2,885,784 $ 2,246,651 $ 925,418 $ — $ 6,057,853 Repurchase Agreements: Borrowings — 7,649,261 1,915,056 43,158 9,607,475 Modified retrospective adjustment for the adoption of ASU No. 2014-11 (Note 2) — 84,649 1,306 — 85,955 Repayments — (6,963,404 ) (1,832,462 ) (2,712 ) (8,798,578 ) Adoption of ASU No. 2015-03 (Note 2) — — (888 ) — (888 ) Notes Payable: Borrowings 10,780,237 — 1,632 852,419 11,634,288 Repayments (6,612,372 ) — (5,082 ) (669,406 ) (7,286,860 ) Adoption of ASU No. 2015-03 (Note 2) (6,588 ) — — (35 ) (6,623 ) Balance at December 31, 2015 $ 7,047,061 $ 3,017,157 $ 1,004,980 $ 223,424 $ 11,292,622 (A) New Residential net settles daily borrowings and repayments of the Notes Payable on its Servicer Advances. (B) Excludes debt related to linked transactions (Note 10). Maturities New Residential’s debt obligations as of December 31, 2015 had contractual maturities as follows: Year Nonrecourse Recourse Total 2016 $ 2,754,360 $ 3,723,952 $ 6,478,312 2017 3,996,400 462,906 4,459,306 2018 368,380 — 368,380 $ 7,119,140 $ 4,186,858 $ 11,305,998 Borrowing Capacity The following table represents New Residential’s borrowing capacity as of December 31, 2015 : Debt Obligations/ Collateral Collateral Type Borrowing Capacity Balance Outstanding Available Financing Repurchase Agreements Residential Mortgage Loans Real Estate Loans and REO $ 2,495,000 $ 986,339 $ 1,508,661 Notes Payable Servicer Advances (A) Servicer Advances 8,524,183 7,058,094 1,466,089 $ 11,019,183 $ 8,044,433 $ 2,974,750 (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 0.5% fee on the unused borrowing capacity. Excludes borrowing capacity and outstanding debt for retained non-agency bonds with a current face amount of $175.8 million . 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, as of a quarter end, and a 4 : 1 indebtedness to tangible net worth provision. New Residential was in compliance with all of its debt covenants as of December 31, 2015 . |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS U.S. GAAP requires the categorization of the fair value of financial instruments into three broad levels which form a hierarchy based on the transparency of inputs to the valuation. Level 1 - Quoted prices in active markets for identical instruments. Level 2 - Valuations based principally on other observable market parameters, including: • Quoted prices in active markets for similar instruments, • Quoted prices in less active or inactive markets for identical or similar instruments, • Other observable inputs (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates), and • Market corroborated inputs (derived principally from or corroborated by observable market data). Level 3 - Valuations based significantly on unobservable inputs. New Residential follows this hierarchy for its financial instruments. The classifications are based on the lowest level of input that is significant to the fair value measurement. The carrying values and fair values of New Residential’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of December 31, 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) $ 329,367,971 $ 1,581,517 $ — $ — $ 1,581,517 $ 1,581,517 Excess mortgage servicing rights, equity method investees, at fair value (A) 73,058,050 217,221 — — 217,221 217,221 Servicer advances 7,578,110 7,426,794 — — 7,426,794 7,426,794 Real estate securities, available-for-sale 4,418,552 2,501,881 — 917,598 1,584,283 2,501,881 Residential mortgage loans, held-for-investment 506,135 330,178 — — 330,433 330,433 Residential mortgage loans, held-for-sale 859,714 776,681 — — 784,750 784,750 Non-hedge derivatives 3,400,000 2,689 — 2,689 — 2,689 Cash and cash equivalents 249,936 249,936 249,936 — — 249,936 Restricted cash 94,702 94,702 94,702 — — 94,702 $ 13,181,599 $ 344,638 $ 920,287 $ 11,924,998 $ 13,189,923 Liabilities: Repurchase agreements $ 4,043,942 $ 4,043,054 $ — $ 4,043,942 $ — $ 4,043,942 Notes payable 7,262,056 7,249,568 — — 7,260,909 7,260,909 Derivative liabilities 4,644,000 13,443 — 13,443 — 13,443 $ 11,306,065 $ — $ 4,057,385 $ 7,260,909 $ 11,318,294 (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. The carrying values and fair values of New Residential’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of December 31, 2014 were as follows: Fair Value Principal Balance or Notional Amount Carrying Value Level 1 Level 2 Level 3 Total Assets Investments in: Excess mortgage servicing rights, at fair value (A) $ 102,481,758 $ 417,733 $ — $ — $ 417,733 $ 417,733 Excess mortgage servicing rights, equity method investees, at fair value (A) 146,257,821 330,876 — — 330,876 330,876 Servicer advances 3,102,492 3,270,839 — — 3,270,839 3,270,839 Real estate securities, available-for-sale 3,542,511 2,463,163 — 1,740,163 723,000 2,463,163 Residential mortgage loans, held-for-investment 69,581 47,838 — — 47,913 47,913 Residential mortgage loans, held-for-sale 1,364,216 1,126,439 — — 1,140,070 1,140,070 Non-hedge derivatives (B) 399,625 32,597 — 195 32,402 32,597 Cash and cash equivalents 212,985 212,985 212,985 — — 212,985 Restricted cash 29,418 29,418 29,418 — — 29,418 $ 7,931,888 $ 242,403 $ 1,740,358 $ 5,962,833 $ 7,945,594 Liabilities Repurchase agreements $ 3,149,090 $ 3,149,090 $ — $ 2,246,651 $ 902,439 $ 3,149,090 Notes payable 2,913,209 2,908,763 — 822,587 2,092,814 2,915,401 Derivative liabilities 2,341,000 14,220 — 14,220 — 14,220 $ 6,072,073 $ — $ 3,083,458 $ 2,995,253 $ 6,078,711 (A) The notional amount represents the total unpaid principal balance of the mortgage loans underlying the Excess MSRs. New Residential does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios. (B) The notional amount for formerly linked transactions consisted of the aggregate UPB amounts of the loans and securities that comprised the asset portion of the linked transaction. New Residential has various processes and controls in place to ensure that fair value is reasonably estimated. With respect to the broker and pricing service quotations, to ensure these quotes represent a reasonable estimate of fair value, New Residential’s quarterly procedures include a comparison to quotations from different sources, outputs generated from its internal pricing models and transactions New Residential has completed with respect to these or similar securities, as well as on its knowledge and experience of these markets. With respect to fair value estimates generated based on New Residential’s internal pricing models, New Residential’s management corroborates the inputs and outputs of the internal pricing models by comparing them to available independent third party market parameters, where available, and models for reasonableness. New Residential believes its valuation methods and the assumptions used are appropriate and consistent with other market participants. Fair value measurements categorized within Level 3 are sensitive to changes in the assumptions or methodology used to determine fair value and such changes could result in a significant increase or decrease in the fair value. 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, 2013 $ 144,660 $ 179,491 $ 245,399 $ 107,367 $ 2,665,551 $ 570,425 $ 35,926 $ 3,948,819 Transfers (C) Transfers from Level 3 — — — — — — — — Transfers to Level 3 — — — — — — — — Gains (losses) included in net income Included in other-than-temporary impairment (OTTI) on securities (D) — — — — — (927 ) — (927 ) Included in change in fair value of investments in excess mortgage servicing rights (D) 24,265 17,350 — — — — — 41,615 Included in change in fair value of investments in excess mortgage servicing rights, equity method investees (D) — — 40,120 17,160 — — — 57,280 Included in change in fair value of investments in Servicer Advances — — — — 84,217 — — 84,217 Included in gain (loss) on settlement of investments, net — — — — — 60,553 5,652 66,205 Included in other income (loss), net (D) 1,157 — — — — — 1,187 2,344 Gains (losses) included in other comprehensive income (E) — — — — — 8,819 — 8,819 Interest income 22,451 26,729 — — 190,206 17,713 — 257,099 Purchases, sales and repayments Purchases/contributions from Newcastle 66,197 27,916 — — 6,830,266 1,455,996 39,538 8,419,913 Proceeds from sales — — — — — (1,288,980 ) (25,240 ) (1,314,220 ) Proceeds from repayments (41,211 ) (51,272 ) (52,901 ) (26,269 ) (6,499,401 ) (100,599 ) (9,069 ) (6,780,722 ) Settlements (F) — — — — — — (15,592 ) (15,592 ) 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) — — — — — (5,788 ) — (5,788 ) Included in change in fair value of investments in excess mortgage servicing rights (D) (3,080 ) 41,723 — — — — — 38,643 Included in change in fair value of investments in excess mortgage servicing rights, equity method investees (D) — — 31,160 — — — — 31,160 Included in change in fair value of investments in Servicer Advances — — — — (57,491 ) — — (57,491 ) Included in gain (loss) on settlement of investments, net — — — — — 3,061 — 3,061 Included in other income (loss), net (D) 2,852 147 — — — 879 — 3,878 Gains (losses) included in other comprehensive income (E) — — — — — (6,701 ) — (6,701 ) Interest income 30,742 103,823 — — 352,316 69,632 — 556,513 Purchases, sales, repayments and transfers Purchases 254,149 917,078 — — 20,042,582 1,288,901 — 22,502,710 Proceeds from sales — — — — — (425,761 ) — (425,761 ) Proceeds from repayments (64,981 ) (216,927 ) (46,557 ) — (16,181,452 ) (179,772 ) — (16,689,689 ) Other — — De-linked transactions (G) — — — — — 116,832 (32,402 ) 84,430 Balance at December 31, 2015 $ 437,201 $ 1,144,316 $ 217,221 $ — $ 7,426,794 $ 1,584,283 $ — $ 10,809,815 (A) Includes the recapture agreement for each respective pool. (B) Amounts represent New Residential’s portion of the Excess MSRs held by the respective joint ventures in which New Residential has a 50% interest. (C) Transfers are assumed to occur at the beginning of the respective period. (D) The gains (losses) recorded in earnings during the period are attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting dates and realized gains (losses) recorded during the period. (E) These gains (losses) were included in net unrealized gain (loss) on securities in the Consolidated Statements of Comprehensive Income. (F) Includes value of 1) residential mortgage loans transferred to REO net of associated repurchase financing agreements, and 2) residential mortgage loans no longer treated as linked transactions due to repayment of associated repurchase financing. (G) See Note 10 for a discussion of transactions formerly accounted for as linked transactions. Investments in Excess MSRs Valuation and Excess MSRs Equity Method Investees Valuation Fair value estimates of New Residential’s Excess MSRs were based on internal pricing models. The valuation technique is based on discounted cash flows. Significant inputs used in the valuations included expectations of prepayment rates, delinquency rates, recapture rates, the excess mortgage servicing amount of the underlying mortgage loans and discount rates that market participants would use in determining the fair values of mortgage servicing rights on similar pools of residential mortgage loans. In order to evaluate the reasonableness of its fair value determinations, management engages an independent valuation firm to separately measure the fair value of its Excess MSRs. The independent valuation firm determines an estimated fair value range of each pool based on its own models and issues a “fairness opinion” with this range. Management compares the range included in the opinion to the value generated by its internal models. To date, New Residential has not made any significant valuation adjustments as a result of these fairness opinions. In addition, in valuing the Excess MSRs, management considered the likelihood of Nationstar, SLS or Ocwen being removed as the servicer, which likelihood is considered to be remote. Significant increases (decreases) in the discount rates, prepayment or delinquency rates in isolation would result in a significantly lower (higher) fair value measurement, whereas significant increases (decreases) in the recapture rates or excess mortgage servicing amount in isolation would result in a significantly higher (lower) fair value measurement. Generally, a change in the delinquency rate assumption is accompanied by a directionally similar change in the assumption used for the prepayment speed. The following tables summarize certain information regarding the weighted average inputs used in valuing the Excess MSRs owned directly and through equity method investees: December 31, 2015 Significant Inputs (A) Directly Held (Note 4) Prepayment Speed (B) Delinquency (C) Recapture Rate (D) Excess Mortgage Servicing Amount (E) Agency Original Pools 10.7 % 3.5 % 29.5 % 21 Recaptured Pools 7.5 % 4.9 % 20.0 % 20 Recapture Agreement 7.6 % 4.9 % 20.0 % 22 10.0 % 3.8 % 27.4 % 21 Non-Agency (F) Nationstar and SLS Serviced: Original Pools 12.5 % N/A 10.2 % 14 Recaptured Pools 7.5 % N/A 20.0 % 20 Recapture Agreement 7.5 % N/A 20.0 % 20 Ocwen Serviced Pools 9.3 % N/A — % 14 10.0 % N/A 2.6 % 14 Total/Weighted Average--Directly Held 10.0 % 3.8 % 9.5 % 16 Held through Equity Method Investees (Note 5) Agency Original Pools 12.6 % 5.9 % 34.3 % 19 Recaptured Pools 7.7 % 5.0 % 20.0 % 23 Recapture Agreement 7.7 % 4.9 % 20.0 % 23 Total/Weighted Average--Held through Investees 10.8 % 5.6 % 29.0 % 20 Total/Weighted Average--All Pools 10.2 % 4.2 % 13.6 % 17 December 31, 2014 Significant Inputs (A) Directly Held (Note 4) Prepayment Speed (B) Delinquency (C) Recapture Rate (D) Excess Mortgage Servicing Amount (E) Agency Original and Recaptured Pools 11.0 % 5.6 % 31.6 % 22 Recapture Agreement 8.0 % 5.0 % 19.9 % 20 10.6 % 5.5 % 30.1 % 22 Non-Agency (F) Original and Recaptured Pools 12.5 % N/A 10.0 % 15 Recapture Agreement 8.0 % N/A 20.0 % 20 12.3 % N/A 10.5 % 15 Total/Weighted Average--Directly Held 11.4 % 5.5 % 20.7 % 18 Held through Equity Method Investees (Note 5) Agency Original and Recaptured Pools 13.3 % 6.6 % 33.1 % 19 Recapture Agreement 8.0 % 5.0 % 20.0 % 23 12.3 % 6.3 % 30.6 % 20 Non-Agency (F) Original and Recaptured Pools 13.4 % N/A 10.0 % 12 Recapture Agreement 8.0 % N/A 20.0 % 20 13.0 % N/A 10.8 % 12 Total/Weighted Average--Held through Investees 12.5 % 6.3 % 24.6 % 17 Total/Weighted Average--All Pools 12.1 % 6.2 % 23.1 % 18 (A) Weighted by fair value of the 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 or Ocwen, as applicable. (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 December 31, 2015 and 2014 , weighted average discount rates of 9.8% and 9.6% , respectively, were used to value New Residential’s investments in Excess MSRs (directly and through equity method investees). All of the assumptions listed have some degree of market observability, based on New Residential’s knowledge of the market, relationships with market participants, and use of common market data sources. Prepayment speed and delinquency rate projections are in the form of “curves” or “vectors” that vary over the expected life of the pool. New Residential uses assumptions that generate its best estimate of future cash flows for each investment in Excess MSRs. When valuing Excess MSRs, New Residential uses the following criteria to determine the significant inputs: • Prepayment Speed: Prepayment speed projections are in the form of a “vector” that varies over the expected life of the pool. The prepayment vector specifies the percentage of the collateral balance that is expected to prepay voluntarily (i.e., pay off) and involuntarily (i.e., default) at each point in the future. The prepayment vector is based on assumptions that reflect macroeconomic conditions and loan level factors such as the borrower’s interest rate, FICO score, loan-to-value ratio, debt-to-income ratio, vintage on a loan level basis, as well as the projected effect on loans eligible for the Home Affordable Refinance Program 2.0 (“HARP 2.0”). Management considers historical prepayment experience associated with the collateral when determining this vector and also reviews industry research on the prepayment experience of similar loan pools. This data is obtained from remittance reports, market data services and other market sources. • Delinquency Rates: For existing mortgage pools, delinquency rates are based on the recent pool-specific experience of loans that missed their latest mortgage payments. Delinquency rate projections are in the form of a “vector” that varies over the expected life of the pool. The delinquency vector specifies the percentage of the unpaid principal balance that is expected to be delinquent each month. The delinquency vector is based on assumptions that reflect macroeconomic conditions, the historical delinquency rates for the pools and the underlying borrower characteristics such as the FICO score and loan-to-value ratio. For the recapture agreements and recaptured loans, delinquency rates are based on the experience of similar loan pools originated by Nationstar, and delinquency experience over the past year. Management believes this time period provides a reasonable sample for projecting future delinquency rates while taking into account current market conditions. Additional consideration is given to loans that are expected to become 30 or more days delinquent. • Recapture Rates: Recapture rates are based on actual average recapture rates experienced by Nationstar on similar mortgage loan pools. Generally, New Residential looks to one year worth of actual recapture rates, which management believes provides a reasonable sample for projecting future recapture rates while taking into account current market conditions. Recapture rate projections are in the format of a “vector” that varies over the expected life of the pool. The recapture vector specifies the percentage of the refinanced loans that have been recaptured within the pool by the servicer. The recapture vector takes into account the nature and timeline of the relationship between the borrowers in the pool and the servicer, the customer retention programs offered by the servicer and the historical recapture rates. • Excess Mortgage Servicing Amount: For existing mortgage pools, excess mortgage servicing amount projections are based on the actual total mortgage servicing amount in excess of a base fee. For loans expected to be refinanced by Nationstar and subject to a recapture agreement, New Residential considers the excess mortgage servicing spread on loans recently originated by Nationstar over the past three months and other general market considerations. Management believes this time period provides a reasonable sample for projecting future excess mortgage servicing amounts while taking into account current market conditions. • Discount Rate: The discount rates used by New Residential are derived from market data on pricing of mortgage servicing rights backed by similar collateral. New Residential uses different prepayment and delinquency assumptions in valuing the Excess MSRs relating to the original loan pools, the recapture agreements and the Excess MSRs relating to recaptured loans. The prepayment speed and delinquency rate assumptions differ because of differences in the collateral characteristics, eligibility for HARP 2.0 and expected borrower behavior for original loans and loans which have been refinanced. The assumptions for recapture and discount rates when valuing Excess MSRs and recapture agreements are based on historical recapture experience and market pricing. Investments in Servicer Advances Valuation Management uses internal pricing models to estimate the future cash flows related to the Servicer Advance investments that incorporate significant unobservable inputs and include assumptions that are inherently subjective and imprecise. Management’s estimations of future cash flows include the combined cash flows of all of the components that comprise the Servicer Advance investments: existing advances, the requirement to purchase future advances, the recovery of advances and the right to the basic fee component of the related MSR. The factors that most significantly impact the fair value include (i) the rate at which the Servicer Advance balance changes over the term of the investment, (ii) the UPB of the underlying loans with respect to which New Residential has the obligation to make advances and owns the basic fee component of the related MSR which, in turn, is driven by prepayment speeds and (iii) the percentage of delinquent loans with respect to which New Residential owns the basic fee component of the related MSR. The valuation technique is based on discounted cash flows. Significant inputs used in the valuations included the assumptions used to establish the aforementioned cash flows and discount rates that market participants would use in determining the fair values of Servicer Advances. In order to evaluate the reasonableness of its fair value determinations, management engages an independent valuation firm to separately measure the fair value of its investment in Servicer Advances. The independent valuation firm determines an estimated fair value range based on its own models and issues a “fairness opinion” with this range. Management compares the range included in the opinion to the value generated by its internal models. To date, New Residential has not made any significant valuation adjustments as a result of these fairness opinions. In valuing the Servicer Advances, management considered the likelihood of Nationstar, SLS or Ocwen being removed as the servicer, which likelihood is considered to be remote. Significant increases (decreases) in the advance balance-to-UPB ratio, prepayment speed, delinquency rate, or discount rate, in isolation, would result in a significantly lower (higher) fair value measurement. Generally, a change in the delinquency rate assumption is accompanied by a directionally similar change in the assumption used for the advance balance-to-UPB ratio, but also a directionally opposite change in the prepayment rate. 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 (A) Delinquency Mortgage Servicing Amount (B) Discount Rate December 31, 2015 2.3 % 10.4 % 17.5 % 9.2 bps 5.6 % December 31, 2014 2.1 % 12.6 % 15.6 % 19.4 bps 5.4 % (A) Projected annual weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (B) Mortgage servicing amount excludes the amounts New Residential pays its servicers as a monthly servicing fee. The valuation of the Servicer Advances also takes into account the performance fee paid to the servicer, which in the case of the Buyer is based on its equity returns and therefore is impacted by relevant financing assumptions such as loan-to-value ratio and interest rate, and which in the case of Servicer Advances acquired from HLSS is based partially on future LIBOR estimates. All of the assumptions listed have some degree of market observability, based on New Residential’s knowledge of the market, relationships with market participants, and use of common market data sources. The prepayment speed, the delinquency rate and the advance-to-UPB ratio projections are in the form of “curves” or “vectors” that vary over the expected life of the underlying mortgages and related Servicer Advances. New Residential uses assumptions that generate its best estimate of future cash flows for each investment in Servicer Advances, including the basic fee component of the related MSR. When valuing Servicer Advances, New Residential uses the following criteria to determine the significant inputs: • Servicer advance balance: Servicer advance balance projections are in the form of a “vector” that varies over the expected life of the residential mortgage loan pool. The servicer advance balance projection is based on assumptions that reflect factors such as the borrower’s expected delinquency status, the rate at which delinquent borrowers re-perform or become current again, servicer modification offer and acceptance rates, liquidation timelines and the servicers’ stop advance and clawback policies. • Prepayment Speed: Prepayment speed projections are in the form of a “vector” that varies over the expected life of the pool. The prepayment vector specifies the percentage of the collateral balance that is expected to prepay voluntarily (i.e., pay off) and involuntarily (i.e., default) at each point in the future. The prepayment vector is based on assumptions that reflect macroeconomic conditions and factors such as the borrower’s FICO score, loan-to-value ratio, debt-to-income ratio, and vintage on a loan level basis. Management considers collateral-specific prepayment experience when determining this vector. • Delinquency Rates: For existing mortgage pools, delinquency rates are based on the recent pool-specific experience of loans that missed recent mortgage payment(s) as well as loan- and borrower-specific characteristics such as the borrower’s FICO score, the loan-to-value ratio, debt-to-income ratio, occupancy status, loan documentation, payment history and previous loan modifications. Management believes the time period utilized provides a reasonable sample for projecting future delinquency rates while taking into account current market conditions. • Mortgage Servicing Amount: Mortgage servicing amounts are contractually determined on a pool-by-pool basis. Management projects the weighted average mortgage servicing amount based on its projections for prepayment speeds. • LIBOR: The performance-based incentive fees on both Ocwen-serviced and Nationstar-serviced servicer advance portfolios are driven by LIBOR-based factors. The LIBOR curves used are widely used by market participants as reference rates for many financial instruments. • Discount Rate: The discount rates used by New Residential are derived from market data on pricing of mortgage servicing rights backed by similar collateral and the advances made thereon. Real Estate Securities Valuation 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 December 31, 2015: Agency RMBS $ 884,578 $ 918,633 $ 917,598 $ — $ 917,598 2 Non-Agency RMBS (C) 3,533,974 1,579,445 1,029,981 554,302 1,584,283 3 Total $ 4,418,552 $ 2,498,078 $ 1,947,579 $ 554,302 $ 2,501,881 December 31, 2014: Agency RMBS $ 1,646,361 $ 1,724,329 $ 1,740,163 $ — $ 1,740,163 2 Non-Agency RMBS (C) 1,896,150 710,515 709,346 13,654 723,000 3 Total $ 3,542,511 $ 2,434,844 $ 2,449,509 $ 13,654 $ 2,463,163 (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 it 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, it 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. For approximately $228.5 million in 2015 and $13.7 million in 2014 , 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. For New Residential’s investments in real estate securities categorized within Level 3 of the fair value hierarchy, the significant unobservable inputs include the discount rates, assumptions related to prepayments, default rates and loss severities. Significant increases (decreases) in any of the discount rates, default rates or loss severities in isolation would result in a significantly lower (higher) fair value measurement. The impact of changes in prepayment speeds would have differing impacts on fair value, depending on the seniority of the investment. Generally, a change in the default assumption is accompanied by directionally similar changes in the assumptions used for the loss severity and the prepayment speed. 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 December 31, 2015 and 2014 , assets measured at fair value on a nonrecurring basis were $292.4 million and $666.6 million , respectively. The $292.4 million of assets include approximately $253.0 million of residential mortgage loans held-for-sale and $39.4 million of REO. 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 are categorized within Level 3 of the fair value hierarchy. The following table summarizes the inputs used in valuing these residential mortgage loans: Fair Value Discount Rate Weighted Average Life (Years) (A) Prepayment Rate CDR (B) Loss Severity (C) December 31, 2015 Performing Loans $ 50,858 5.0 % 4.2 9.2 % 2.8 % 35.2 % Non-Performing Loans 202,155 5.7 % 3.4 2.9 % N/A 19.6 % Total/Weighted Average $ 253,013 5.6 % 3.6 4.2 % 22.7 % December 31, 2014 Performing Loans $ 36,613 4.6 % 7.5 4.2 % 4.2 % 40.2 % PCD Loans 573,510 5.7 % 2.6 2.9 % N/A 30.9 % Total/Weighted Average $ 610,123 5.6 % 2.9 3.0 % 31.5 % (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. Not applicable for PCD Loans that are not 100% in default. (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 20% . The total change in the recorded value of assets for which a fair value adjustment has been included in the Consolidated Statements of Income for the year ended December 31, 2015 was a reduction of approximately $14.1 million and $4.5 million for loans held-for-sale and REO, respectively. The total change in the recorded value of assets for which a fair value adjustment has been included in the Consolidated Statements of Income for the year ended December 31, 2014 , was a reduction of approximately $4.9 million and $2.4 million for 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: Carrying Value Fair Value Valuation Provision/ (Reversal) In Current Year Discount Rate Weighted Average Life (Years) (A) P |
EQUITY AND EARNINGS PER SHARE
EQUITY AND EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
EQUITY AND EARNINGS PER SHARE | EQUITY AND EARNINGS PER SHARE Equity and Dividends On April 26, 2013, Newcastle announced that its board of directors had formally declared the distribution of shares of common stock of New Residential, a then wholly owned subsidiary of Newcastle. Following the spin-off, New Residential is an independent, publicly-traded REIT primarily focused on investing in residential mortgage related assets. The spin-off was completed on May 15, 2013 and New Residential began trading on the New York Stock Exchange under the symbol “NRZ.” The spin-off transaction was effected as a taxable pro rata distribution by Newcastle of all the outstanding shares of common stock of New Residential to the stockholders of record of Newcastle as of May 6, 2013. The stockholders of Newcastle as of the record date received one share of New Residential common stock for each share of Newcastle common stock held. New Residential’s certificate of incorporation authorizes 2,000,000,000 shares of common stock, par value $0.01 per share, and 100,000,000 shares of preferred stock, par value $0.01 per share. At the time of the completion of the spin-off, there were 126,512,823 outstanding shares of common stock which was based on the number of Newcastle’s shares of common stock outstanding on May 6, 2013 and a distribution ratio of one share of New Residential common stock for each share of Newcastle common stock (adjusted for the reverse split described below). 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 2014, New Residential issued 13,875,000 shares of its common stock in a public offering at a price to the public of $12.20 per share for net proceeds of approximately $163.8 million . One of New Residential’s executive officers participated in this offering and purchased an additional 500,000 shares at the public offering price for net proceeds of approximately $6.1 million . For the purpose of compensating the Manager for its successful efforts in raising capital for New Residential, in connection with this offering, New Residential granted options to the Manager relating to 1,437,500 shares of New Residential’s common stock at a price of $12.20 , which had a fair value of approximately $1.4 million as of the grant date. The assumptions used in valuing the options were: a 2.87% risk-free rate, a 12.584% dividend yield, 25.66% volatility and a 10 -year term. In April 2015, New Residential issued the New Residential Acquisition Common Stock in connection with the HLSS Acquisition (Note 1). In addition, 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 relating to 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 relating to 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 6.7 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. An employee of the Manager exercised 107,500 options with a weighted average exercise price of $5.61 on May 7, 2014. Upon exercise, 107,500 shares of common stock of New Residential were issued. Employees of the Manager and one of New Residential’s directors exercised an aggregate of 498,500 options with a weighted average exercise price of $5.62 in August 2014. Upon exercise, 276,037 shares of common stock of New Residential were issued. In December 2014, a former employee of the Manager exercised 42,566 options with a weighted average exercise price of $7.19 . Upon exercise, 42,566 shares of common stock of New Residential were issued. In July 2015, one former employee of the Manager exercised an aggregate of 37,500 options with a weighted average exercise price of $7.19 and received 20,227 shares of New Residential’s common stock. On January 19, 2016, New Residential announced that its board of directors had authorized the repurchase of up to $200 million of its common stock over the next 12 months. Repurchases may be made from time to time through open market purchases or privately negotiated transactions, pursuant to one or more plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934 or by means of one or more tender offers, in each case, as permitted by securities laws and other legal requirements. The amount and timing of the purchases will depend on a number of factors including the price and availability of New Residential’s shares, trading volume, capital availability, New Residential’s performance and general economic and market conditions. No share repurchases have been made as of the date of issuance of these consolidated financial statements. The share repurchase program may be suspended or discontinued at any time. Common dividends have been declared as follows: Per Share Declaration Date Payment Date Quarterly Dividend Special Dividend Total Dividend Total Amounts Distributed (millions) June 3, 2013 July 2013 $ 0.14 $ — $ 0.14 $ 17.7 September 18, 2013 October 2013 0.35 — 0.35 44.3 December 17, 2013 January 2014 0.35 0.15 0.50 63.3 March 19, 2014 April 2014 0.35 — 0.35 44.3 June 17, 2014 July 2014 0.35 0.15 0.50 70.6 September 18, 2014 October 2014 0.35 — 0.35 49.5 December 18, 2014 January 2015 0.38 — 0.38 53.7 March 16, 2015 April 2015 0.38 — 0.38 53.7 May 14, 2015 July 2015 0.45 — 0.45 89.5 September 18, 2015 October 2015 0.46 — 0.46 106.0 December 10, 2015 January 2016 0.46 — 0.46 106.0 Approximately 2.4 million shares of New Residential’s common stock were held by Fortress, through its affiliates, and its principals at December 31, 2015 . Option Plan New Residential has a Nonqualified Stock Option and Incentive Award Plan, as amended (the “Plan”) which provides for the grant of equity-based awards, including restricted stock, options, stock appreciation rights, performance awards, tandem awards and other equity-based and non-equity based awards, in each case to the Manager, and to the directors, officers, employees, service providers, consultants and advisor of the Manager who perform services for New Residential, and to New Residential’s directors, officers, service providers, consultants and advisors. New Residential initially reserved 15,000,000 shares of its common stock for issuance under the Plan; on the first day of each fiscal year beginning during the 10 -year term of the Plan in and after calendar year 2014, that number will be increased by a number of shares of New Residential’s common stock equal to 10% of the number of shares of common stock newly issued by New Residential during the immediately preceding fiscal year (and, in the case of fiscal year 2013, after the effective date of the Plan). No adjustment was made on January 1, 2014. Increases of 8,543,539 and 1,437,500 were made on January 1, 2016 and 2015 , respectively. New Residential’s board of directors may also determine to issue options to the Manager that are not subject to the Plan, provided that the number of shares underlying any options granted to the Manager in connection with capital raising efforts would not exceed 10% of the shares sold in such offering and would be subject to NYSE rules. Upon exercise, all options will be settled in an amount of cash equal to the excess of the fair market value of a share of common stock on the date of exercise over the exercise price per share unless advance approval is made to settle options in shares of common stock. Prior to the spin-off, Newcastle had issued options to the Manager in connection with capital raising activities. In connection with the spin-off, the 10.7 million options that were held by the Manager, or by the directors, officers or employees of the Manager, were converted into an adjusted Newcastle option and a new New Residential option. The exercise price of each adjusted Newcastle option and New Residential option was set to collectively maintain the intrinsic value of the Newcastle option immediately prior to the spin-off and to maintain the ratio of the exercise price of the adjusted Newcastle option and the New Residential option, respectively, to the fair market value of the underlying shares as of the spin-off date, in each case based on the five day average closing price subsequent to the spin-off date. Upon joining the board, non-employee directors were, in accordance with the Plan, granted options relating to an aggregate of 4,000 shares of common stock. The fair value of such options was not material at the date of grant. New Residential’s outstanding options were summarized as follows: December 31, 2015 December 31, 2014 Issued Prior to 2011 Issued in 2011- 2015 Total Issued Prior to 2011 Issued in 2011 - 2014 Total Held by the Manager 345,720 10,582,860 10,928,580 473,377 8,432,597 8,905,974 Issued to the Manager and subsequently transferred to certain of the Manager’s employees 88,280 1,359,247 1,447,527 125,622 1,700,497 1,826,119 Issued to the independent directors — 4,000 4,000 1,000 4,000 5,000 Total 434,000 11,946,107 12,380,107 599,999 10,137,094 10,737,093 The following table summarizes New Residential’s outstanding options as of December 31, 2015 . The last sales price on the New York Stock Exchange for New Residential’s common stock in the year ended December 31, 2015 was $12.16 per share. Recipient Date of Grant/ Exercise (A) Number of Unexercised Options Options Exercisable as of December 31, 2015 Weighted Average Exercise Price (B) Intrinsic Value of Exercisable Options as of December 31, 2015 (millions) Directors Various 4,000 4,000 $ 13.58 $ — Manager (C) 2003 - 2007 434,000 434,000 31.36 — Manager (C) 2011 - 2012 25,000 25,000 7.19 0.1 Manager (C) 2013 1,936,068 1,936,068 10.98 2.3 Manager (C) 2014 1,437,500 958,333 12.20 — Manager (C) 2015 8,543,539 2,092,041 15.46 — Outstanding 12,380,107 5,449,442 (A) Options expire on the tenth anniversary from date of grant. (B) The exercise 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 Exercise Prices Total Unexercised Inception to Date 2004 - 2007 $29.92 to $33.80 88,280 2013 $10.24 to $11.48 1,100,497 2014 $12.20 258,750 Total 1,447,527 The following table summarizes activity in our outstanding options: Amount Weighted Average Exercise Price December 31, 2013 outstanding options 10,365,229 Options granted 1,437,500 $ 12.20 Options exercised (A) (648,573 ) $ 5.72 Options expired unexercised (417,063 ) December 31, 2014 outstanding options 10,737,093 Options granted 8,543,539 $ 15.46 Options exercised (A) (6,734,525 ) $ 7.81 Options expired unexercised (166,000 ) December 31, 2015 outstanding options 12,380,107 See table above (A) The 6.7 million and 0.6 million options that were exercised in 2015 and 2014 had an intrinsic value of approximately $59.4 million and $4.5 million , respectively, at the date of exercise. Income and Earnings Per Share Net income earned prior to the spin-off is included in additional paid-in capital instead of retained earnings since the accumulation of retained earnings began as of the date of spin-off from Newcastle. 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 options. During the years ended December 31, 2015 , 2014 and 2013 based on the treasury stock method, New Residential had 2,167,796 , 3,092,844 and 2,145,104 dilutive common stock equivalents, respectively. For the purposes of computing EPS for periods prior to the spin-off on May 15, 2013, New Residential treated the common shares issued in connection with the spin-off as if they had been outstanding for all periods presented, similar to a stock split. For the purposes of computing diluted EPS for periods prior to the spin-off on May 15, 2013, New Residential treated the 10.7 million options issued on the spin-off date as a result of the conversion of Newcastle options as if they were granted on May 15, 2013 since no New Residential awards were outstanding prior to that date. Noncontrolling Interests Noncontrolling interests is comprised of the interests held by third parties in consolidated entities that hold New Residential’s investment in Servicer Advances (Note 6), as well as HLSS for the period of April 6, 2015 through October 23, 2015. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation – Following the HLSS Acquisition (see Note 1 for related defined terms), material potential claims, lawsuits, regulatory inquiries or investigations, 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 it does not believe there is a probable and reasonably estimable loss. Furthermore, New Residential cannot reasonably estimate the range of potential loss related to these legal contingencies at this time. However, the ultimate outcome of the proceedings described below may have a material adverse effect on New Residential’s business, financial position or results of operations. In addition to the matters described below, from time to time, New Residential is or may be involved in various disputes, litigation and regulatory inquiry and investigation matters that arise in the ordinary course of business. Given the inherent unpredictability of these types of proceedings, it is possible that future adverse outcomes could have a material adverse effect on its financial results. New Residential is not aware of any unasserted claims that it believes are material and probable of assertion where the risk of loss is expected to be reasonably possible. 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 lawsuits were consolidated into a single action, which is referred to as the “Securities Action.” On April 28, 2015, lead plaintiffs, lead counsel and liaison counsel were appointed in the Securities Action. On November 9, 2015, lead plaintiffs filed an amended class action complaint. On January 27, 2016, the Securities Action was transferred to the United States District Court for the Southern District of Florida and given the Index No. 16-CV-60165 (S.D. Fla.). The Securities 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 Securities 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 Securities Action also allege that HLSS misled investors by failing to disclose, among other things, information regarding governmental investigations of Ocwen’s business practices. Lead plaintiffs seek money damages under the Securities Exchange Act in an amount to be proven at trial and reasonable costs, expenses, and fees. We intend to vigorously defend the Securities Action and consistent therewith on February 11, 2015, defendants filed motions to dismiss the Securities Action in its entirety. Two shareholder derivative actions have been filed purportedly on behalf of Ocwen 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. On January 8, 2016, two related derivative actions – Hutt v. Erbey, et al. , No. 9:15-CV-81709 (S.D. Fla.) and Lowinger v. Erbey, et al. , No. 0:15-CV-62628 (S.D. Fla.) – were consolidated with the Sokolowski Action. On February 17, 2016, the court appointed lead counsel and ordered that lead counsel file a consolidated complaint on or before March 8, 2016. 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 MSRs 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. The Ocwen Derivative Actions seek money damages from HLSS in an amount to be proven at trial. We intend to vigorously defend these lawsuits. 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, the Securities and Exchange Commission (“SEC”) instituted an investigation into HLSS’s restatement of its consolidated financial statements for the years ended December 31, 2013 and 2012 and for the quarter ended March 31, 2014 and disclosures concerning related party transactions (the “HLSS Investigation”). HLSS agreed to resolve such matter by consenting to the entry of a Cease and Desist Order, without admitting or denying that HLSS violated Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934, as amended, and Rules 12b-20, 13a-1, and 13a-13 promulgated thereunder, and to a settlement payment of $1.5 million to the SEC. On October 5, 2015, the terms of the settlement were approved and accepted by the SEC. Pursuant to the HLSS Acquisition Agreement, New Residential acquired substantially all of the assets of HLSS and assumed substantially all of the liabilities of HLSS, including the obligation for the aforementioned settlement payment. The matter giving rise to the HLSS Investigation and related settlement is unrelated to any activities of New Residential. During the first three quarters of 2015, through their investment manager, the HSART Bondholders alleged that events of default had occurred under a debt issuance (HSART, see Notes 1 and 11) secured by a portion of the Servicer Advances acquired from HLSS and that, as a result, the HSART Bondholders were due additional interest under the related agreements. In February 2015, in response to such allegations, instead of releasing such amounts to the New Residential subsidiary that sponsors the HSART transaction entitled thereto, the trustee of HSART began to withhold, monthly, such Withheld Funds so that such amounts were reserved in the event that it was determined that any of the alleged events of default had occurred. On August 28, 2015, the trustee commenced a legal proceeding requesting instruction from the court regarding the alleged defaults and the disposition of the Withheld Funds. On October 2, 2015, the notes held by the HSART Bondholders were repaid in full. On October 14, 2015, the court ruled that no event of default had occurred under HSART, authorized the trustee to release the Withheld Funds and dismissed the legal proceeding. As a result of this ruling, $92.7 million was released from restricted cash accounts related to HSART and is now available for unrestricted use by New Residential. New Residential is, from time to time, subject to inquiries by government entities. 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 December 31, 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 December 31, 2015 ): Excess MSRs — As of December 31, 2015 , New Residential had outstanding capital commitments related to the acquisition of Excess MSRs on portfolios of residential mortgage loans as discussed below. See Notes 4 and 5 for information on New Residential’s investments in Excess MSRs. On February 4, 2016 , New Residential invested the remaining $2.0 million to complete the acquisition of a 66.7% interest in the Excess MSRs on a portfolio of Fannie Mae residential mortgage loans with an aggregate UPB of $17.2 billion . Nationstar agreed to acquire a 33.3% interest in the Excess MSRs. Nationstar as servicer will perform all servicing and advancing functions, and retain the ancillary income, servicing obligations and liabilities as the servicer of the underlying loans in each of the portfolios. Under the terms of these investments, to the extent that any loans in the portfolios are refinanced by Nationstar, the resulting Excess MSRs are shared on a pro rata basis by New Residential and Nationstar, subject to certain limitations. 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. Environmental Costs — As a residential real estate owner, through its REO, New Residential is subject to potential environmental costs. At December 31, 2015 , New Residential is not aware of any environmental concerns that would have a material adverse effect on its consolidated financial position or results of operations. 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 U.S. Internal Revenue Service (“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 | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
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 date of the spin-off (Note 13), 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, plus earnings (or losses) from equity method investees invested in Excess MSRs as if such equity method investees had not made a fair value election, plus gains (or losses) from debt restructuring and gains (or losses) from sales of property, and plus non-routine items, minus amortization of non-routine items, 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: December 31, 2015 2014 Management fees $ 6,671 $ 1,710 Incentive compensation 16,017 54,334 Expense reimbursements and other 1,097 1,380 Total $ 23,785 $ 57,424 Affiliate expenses and fees were comprised of: Year Ended December 31, 2015 2014 2013 Management fees $ 33,475 $ 19,651 $ 15,343 Incentive compensation 16,017 54,334 16,847 Expense reimbursements (A) 500 500 500 Total $ 49,992 $ 74,485 $ 32,690 (A) Included in General and Administrative Expenses in the Consolidated Statements of Income. On June 27, 2013, New Residential purchased Agency ARM RMBS with an aggregate face amount of approximately $22.7 million from Newcastle for approximately $1.2 million , net of related financing. New Residential purchased the securities on the same terms as they were purchased by Newcastle and paid the $1.2 million to Newcastle during the third quarter of 2013. New Residential’s board of directors approved a change in the computation of incentive compensation to exclude unrealized gains (or losses) on investments and debt (and any deferred tax impact thereof) as of June 30, 2014. The impact of this change on the six months ended June 30, 2014 was to reduce incentive compensation by $5.5 million . 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 December 31, 2015 , 64.4% and 34.9% 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 December 31, 2015 , a total face amount of $2.4 billion of New Residential’s Non-Agency RMBS portfolio and approximately $35.3 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 $9.5 billion as of December 31, 2015 . New Residential holds a limited right to cleanup call options with respect to certain securitization trusts serviced or master serviced by Nationstar whereby, when the outstanding balance of the underlying mortgage loans falls below a pre-determined threshold, it can effectively purchase the underlying mortgage loans at par, plus unreimbursed servicer advances, and repay all of the outstanding securitization financing at par, in exchange for a 0.75% (of UPB) fee paid to Nationstar. In connection with New Residential's exercise of certain of these call rights in 2014 and 2015, New Residential has made, and expects to continue to make, payments to funds managed by an affiliate of Fortress in respect of Excess MSRs held by the funds affected by the exercise of the call rights (“MSR Fund Payments”). During 2015, New Residential made, or accrued for, MSR Fund Payments in an aggregate amount of approximately $4.4 million . 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 December 31, 2015 , $588.4 million UPB of New Residential’s residential mortgage loans and $24.8 million of New Residential’s REO were being serviced or master 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 OneMain and Note 5 regarding co-investments with Fortress-managed funds. |
RECLASSIFICATION FROM ACCUMULAT
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME | 12 Months Ended |
Dec. 31, 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 Income Components Statement of Income Location Year Ended December 31, 2015 2014 2013 Reclassification of net realized (gain) loss on securities into earnings Gain on settlement of securities $ (13,096 ) $ (65,701 ) $ (52,657 ) Reclassification of net realized (gain) loss on securities into earnings Other-than-temporary impairment on securities 5,788 1,391 4,993 Total reclassifications $ (7,308 ) $ (64,310 ) $ (47,664 ) New Residential did not allocate any income tax expense or benefit to any component of other comprehensive income for any period presented as no taxable subsidiary generated other comprehensive income. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense (benefit) consists of the following: Year Ended December 31, 2015 2014 2013 Current: Federal $ (2,737 ) $ 3,737 $ — State and Local (1,631 ) 2,799 — Total Current Income Tax Expense (Benefit) (4,368 ) 6,536 — Deferred: Federal (2,778 ) 12,853 — State and Local (3,855 ) 3,568 — Total Deferred Income Tax Expense (Benefit) (6,633 ) 16,421 — Total Income Tax Expense (Benefit) $ (11,001 ) $ 22,957 $ — New Residential intends to qualify as a REIT for each of its tax years through December 31, 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 was a wholly owned subsidiary of Newcastle until May 15, 2013 and, as a qualified REIT subsidiary, was a disregarded entity until such date. As a result, no provision or liability for U.S. federal or state income taxes has been included in the accompanying consolidated financial statements for the period from January 1, 2013 through May 15, 2013. New Residential distributed 100% of its 2013 and 2014 REIT taxable income by the prescribed dates. New Residential operates various securitization vehicles 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. The decrease in the provision for income taxes for the year ended December 31, 2015 is primarily due to the benefit of $2.3 million from reducing the reserve for unrecognized benefits to zero and a decrease in taxable profits in entities subject to corporate income tax rates. The difference between New Residential’s reported provision for income taxes and the U.S. federal statutory rate of 35% is as follows: December 31, 2015 2014 2013 Provision at the statutory rate 35.00 % 35.00 % 35.00 % Non-taxable REIT income (36.51 )% (31.12 )% (35.00 )% State and local taxes (1.16 )% 0.69 % — % Other (1.58 )% 0.37 % — % Total provision (4.25 )% 4.94 % — % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liability are presented below: December 31, 2015 2014 Deferred tax assets: Servicer Advances $ 144,842 $ — Allowance for loan losses 136 962 Unrealized mark to market 468 — Net operating losses 42,944 2,657 Other 6,330 134 Total deferred tax assets 194,720 3,753 Less valuation allowance (9,409 ) (3,619 ) Net deferred tax assets $ 185,311 $ 134 Deferred tax liabilities: Unrealized — (15,248 ) Total deferred tax (liability) $ — $ (15,248 ) Net deferred tax assets (liability) $ 185,311 $ (15,114 ) As of December 31, 2015 , New Residential’s TRSs had approximately $110.2 million of net operating loss carryforwards for federal and state income tax purposes which may be available to offset future taxable income, if and when it arises. These federal and state net operating loss carryforwards will begin to expire in 2034. The utilization of the net operating loss carryforwards to reduce future income taxes will depend on the TRSs ability to generate sufficient taxable income prior to the expiration of the carryforward period. 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 $195.1 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. New Residential 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 December 31, 2015 . In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. As of December 31, 2015 , New Residential recorded a valuation allowance related to certain net operating losses and loan loss reserves as management does not believe that it is more likely than not that the deferred tax assets will be realized. The following table summarizes the change in the deferred tax asset valuation allowance: Valuation allowance at December 31, 2013 $ 493 Increase related to net operating losses and loan loss reserves 3,126 Valuation allowance at December 31, 2014 $ 3,619 Increase related to net operating losses and loan loss reserves 6,680 Other increase (decrease) (890 ) Valuation allowance at December 31, 2015 $ 9,409 New Residential records penalties and interest related to uncertain tax positions as a component of income tax expense, where applicable. As of December 31, 2015 , New Residential did not accrue interest or penalties related to uncertain tax positions. New Residential does not believe that it is reasonably possible that the total amount of unrecognized tax benefits will significantly change within 12 months of the reporting date. A reconciliation of the unrecognized tax benefits is as follows: Balance at December 31, 2013 $ — Additions for tax positions of the 2013 tax year 2,258 Balance at December 31, 2014 2,258 Additions for tax positions of current year — Other additions (reductions) (2,258 ) Balance at December 31, 2015 $ — Common stock distributions were taxable as follows: Year Dividends per Share Ordinary Income Long-term Capital Gain Return of Capital 2015 $ 1.75 92.92 % 7.08 % — 2014 $ 1.58 84.78 % 15.22 % — 2013 $ 0.99 90.01 % 9.99 % — |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS These financial statements include a discussion of material events that have occurred subsequent to December 31, 2015 (referred to as “subsequent events”) through the issuance of these consolidated financial statements. Events subsequent to that date have not been considered in these financial statements. Corporate Activities On December 10, 2015 , New Residential’s board of directors declared a fourth quarter 2015 dividend of $0.46 per common share or $106.0 million , which was paid on January 29, 2016 to stockholders of record as of December 31, 2015 . |
SUMMARY OF QUARTERLY CONSOLIDAT
SUMMARY OF QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
SUMMARY OF QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) | SUMMARY QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) The following is an unaudited summary information on New Residential’s quarterly operations. 2015 Quarter Ended Year Ended December 31 March 31 June 30 September 30 December 31 Interest income $ 84,373 $ 178,177 $ 182,341 $ 200,181 $ 645,072 Interest expense 33,979 81,871 77,558 80,605 274,013 Net interest income 50,394 96,306 104,783 119,576 371,059 Impairment Other-than-temporary impairment (OTTI) on securities 1,071 649 1,574 2,494 5,788 Valuation allowance on loans and real estate owned 977 4,772 (3,341 ) 16,188 18,596 2,048 5,421 (1,767 ) 18,682 24,384 Net interest income after impairment 48,346 90,885 106,550 100,894 346,675 Other income (A) 12,295 37,650 (17,825 ) 9,909 42,029 Operating Expenses 22,270 34,952 32,902 27,699 117,823 Income Before Income Taxes 38,371 93,583 55,823 83,104 270,881 Income tax expense (benefit) (3,427 ) 14,306 (5,932 ) (15,948 ) (11,001 ) Net Income $ 41,798 $ 79,277 $ 61,755 $ 99,052 $ 281,882 Noncontrolling Interests in Income of Consolidated Subsidiaries $ 5,823 $ 4,158 $ 7,193 $ (3,928 ) $ 13,246 Net Income Attributable to Common Stockholders $ 35,975 $ 75,119 $ 54,562 $ 102,980 $ 268,636 Net Income Per Share of Common Stock Basic $ 0.25 $ 0.37 $ 0.24 $ 0.45 $ 1.34 Diluted $ 0.25 $ 0.37 $ 0.24 $ 0.45 $ 1.32 Weighted Average Number of Shares of Common Stock Outstanding Basic 141,434,905 200,910,040 230,455,568 230,459,000 200,739,809 Diluted 144,911,309 205,169,099 231,215,235 230,698,961 202,907,605 Dividends Declared per Share of Common Stock $ 0.38 $ 0.45 $ 0.46 $ 0.46 $ 1.75 2014 Quarter Ended Year Ended December 31 March 31 June 30 September 30 December 31 Interest income $ 71,490 $ 92,656 $ 97,587 $ 85,124 $ 346,857 Interest expense 38,997 36,512 33,307 31,892 140,708 Net interest income 32,493 56,144 64,280 53,232 206,149 Impairment Other-than-temporary impairment (OTTI) on securities 328 615 — 448 1,391 Valuation allowance on loans and real estate owned 164 293 1,134 8,300 9,891 492 908 1,134 8,748 11,282 Net interest income after impairment 32,001 55,236 63,146 44,484 194,867 Other income (A) 35,050 177,889 122,064 40,085 375,088 Operating Expenses 9,899 29,522 25,311 40,167 104,899 Income Before Income Taxes 57,152 203,603 159,899 44,402 465,056 Income tax expense (benefit) 287 21,395 7,801 (6,526 ) 22,957 Net Income $ 56,865 $ 182,208 $ 152,098 $ 50,928 $ 442,099 Noncontrolling Interests in Income (Loss) of Consolidated Subsidiaries $ 8,093 $ 58,705 $ 25,726 $ (3,302 ) $ 89,222 Net Income Attributable to Common Stockholders $ 48,772 $ 123,503 $ 126,372 $ 54,230 $ 352,877 Net Income Per Share of Common Stock Basic $ 0.39 $ 0.91 $ 0.89 $ 0.38 $ 2.59 Diluted $ 0.38 $ 0.88 $ 0.88 $ 0.38 $ 2.53 Weighted Average Number of Shares of Common Stock Outstanding Basic 126,604,510 136,465,454 141,211,580 141,395,307 136,472,865 Diluted 129,919,967 139,668,128 144,166,601 144,294,088 139,565,709 Dividends Declared per Share of Common Stock $ 0.35 $ 0.50 $ 0.35 $ 0.38 $ 1.58 (A) Earnings from investments in equity method investees is included in other income. |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP’’). The consolidated financial statements include the accounts of New Residential and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated. |
Consolidation, Variable Interest Entities | New Residential consolidates those entities in which it has control over significant operating, financial and investing decisions of the entity, as well as those entities deemed to be variable interest entities (“VIEs”) in which New Residential is determined to be the primary beneficiary. For entities over which New Residential exercises significant influence, but which do not meet the requirements for consolidation, New Residential uses the equity method of accounting whereby it records its share of the underlying income of such entities. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. A VIE is required to be consolidated only by its primary beneficiary, which is defined as the party who has the power to direct the activities of a VIE that most significantly impact its economic performance and who has the obligation to absorb losses or the right to receive benefits from the VIE that could be potentially significant to the VIE. To assess whether New Residential has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, New Residential considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE’s economic performance; and second, identifying which party, if any, has power over those activities. To assess whether New Residential has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, New Residential considers all of its economic interests and applies judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. New Residential has determined that, under the ASU 2015-02, Consolidation , the Buyer (Note 6) should be evaluated for consolidation under the VIE model rather than the voting interest entity model as the equity holders as a group do not have the right to direct activities that most significantly impact the entity’s economic performance. Under the VIE model, New Residential’s consolidated subsidiary, as the managing member, has both 1) the power to direct the activities of the Buyer and 2) holds a significant variable interest through its equity investment and therefore, meets the primary beneficiary criterion and continues to consolidate the Buyer. The Buyer’s summary balance sheet is included in Note 6. New Residential’s investments in Non-Agency RMBS (Note 7) are variable interests. New Residential monitors these investments and analyzes the potential need to consolidate the related securitization entities pursuant to the VIE consolidation requirements. New Residential has not consolidated the securitization entities that issued its Non-Agency RMBS. This determination is based, in part, on New Residential’s assessment that it does not have the power to direct the activities that most significantly impact the economic performance of these entities, such as through ownership of a majority of the currently controlling class. In addition, New Residential is not obligated to provide, and has not provided, any financial support to these entities. Noncontrolling interests represent the ownership interests in certain consolidated subsidiaries held by entities or persons other than New Residential. These interests are related to noncontrolling interests in consolidated entities that hold New Residential’s investment in servicer advances (Note 6). |
Risks and Uncertainties | In the normal course of business, New Residential encounters primarily two significant types of economic risk: credit and market. Credit risk 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. Market risk reflects changes in the value of investments due to changes in prepayment speeds, interest rates, spreads or other market factors, including risks that impact the value of the collateral underlying New Residential’s investments. Management believes that the carrying values of its investments are reasonable taking into consideration these risks along with estimated prepayments, financings, collateral values, payment histories, and other information. Furthermore, for each of the periods presented, a significant portion of New Residential’s assets are dependent on Nationstar’s ability to perform its obligations as the servicer of residential mortgage loans underlying New Residential’s investments in Excess MSRs, servicer advances, Non-Agency RMBS and residential mortgage loans. If Nationstar is terminated as the servicer, New Residential’s right to receive its portion of the cash flows related to interests in MSRs is also terminated. New Residential is similarly dependent on OneMain as the servicer of the loans underlying its investment in the Consumer Loan Companies (Note 9) and on Ocwen subsequent to the HLSS Acquisition (Note 1). |
Income Tax Uncertainties | Additionally, New Residential is subject to significant tax risks. If New Residential were to fail to qualify as a REIT in any taxable year, New Residential would be subject to U.S. federal corporate income tax (including any applicable alternative minimum tax), which could be material. Unless entitled to relief under certain statutory provisions, New Residential would also be disqualified from treatment as a REIT for the four taxable years following the year during which qualification is lost. |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Comprehensive Income | Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances, excluding those resulting from investments by and distributions to owners. For New Residential’s purposes, comprehensive income represents net income, as presented in the Consolidated Statements of Income, adjusted for unrealized gains or losses on securities available for sale. |
Income Recognition - Investments in Excess Mortgage Servicing Rights (''Excess MSRs'') | Excess MSRs are aggregated into pools as applicable; each pool of Excess MSRs is accounted for in the aggregate. Interest income for Excess MSRs is accreted into interest income on an effective yield or “interest” method, based upon the expected excess mortgage servicing amount through the expected life of the underlying mortgages. Changes to expected cash flows result in a cumulative retrospective adjustment, which will be recorded in the period in which the change in expected cash flows occurs. Under the retrospective method, the interest income recognized for a reporting period is measured as the difference between the amortized cost basis at the end of the period and the amortized cost basis at the beginning of the period, plus any cash received during the period. The amortized cost basis is calculated as the present value of estimated future cash flows using an effective yield, which is the yield that equates all past actual and current estimated future cash flows to the initial investment. In addition, New Residential’s policy is to recognize interest income only on its Excess MSRs in existing eligible underlying mortgages. The difference between the fair value of Excess MSRs and their amortized cost basis is recorded as “Change in fair value of investments in excess mortgage servicing rights.” Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the Excess MSRs, and therefore may differ from their effective yields. |
Income Recognition - Investments in Servicer Advances (''Servicer Advances'') | New Residential accounts for its investments in Servicer Advances similarly to its investments in Excess MSRs. Interest income for Servicer Advances is accreted into interest income on an effective yield or “interest” method, based upon the expected aggregate cash flows of the Servicer Advances, including the basic fee component of the related MSR (but excluding any Excess MSR component) through the expected life of the underlying mortgages, net of a portion of the basic fee component of the MSR that New Residential remits to the servicer as compensation for the servicer’s servicing activities. Changes to expected cash flows result in a cumulative retrospective adjustment, which will be recorded in the period in which the change in expected cash flows occurs. Refer to “—Investments in Excess Mortgage Servicing Rights” for a description of the retrospective method. Fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the Servicer Advances, and therefore may differ from their effective yields. |
Income Recognition - Investments in Real Estate Securities | Discounts or premiums are accreted into interest income on an effective yield or “interest” method, based upon a comparison of actual and expected cash flows, through the expected maturity date of the security. For securities acquired at a discount for credit quality (i.e. where it is probable at acquisition that New Residential will not collect all contractually required interest and principal repayments), the difference between contractual cash flows and expected cash flows at acquisition is not accreted (non-accretable difference). For these securities, the excess of expected cash flows over the carrying value (accretable yield) is recognized as interest income on an effective yield basis. Depending on the nature of the investment, changes to expected cash flows may result in a prospective change to yield or a retrospective change which would include a catch up adjustment. Deferred fees and costs, if any, are recognized as a reduction to the interest income over the terms of the securities using the interest method. Upon settlement of securities, the specific identification method is used to determine the excess (or deficiency) of net proceeds over the net carrying value of such security recognized as a realized gain (or loss) in the period of settlement. |
Income Recognition - Investments in Residential Mortgage Loans and REO | New Residential evaluates the credit quality of its loans, as of the acquisition date, for evidence of credit quality deterioration. Loans with evidence of credit deterioration since their origination, and where it is probable that New Residential will not collect all contractually required principal and interest payments, are Purchased Credit Deteriorated (“PCD “) loans. At acquisition, New Residential aggregates PCD loans into pools based on common risk characteristics and the aggregated loans are accounted for as if each pool were a single loan with a single composite interest rate and an aggregate expectation of cash flows. The excess of the total cash flows (both principal and interest) expected to be collected over the carrying value of the PCD loans is referred to as the accretable yield. This amount is not reported on New Residential’s Consolidated Balance Sheets but is accreted into interest income at a level rate of return over the remaining estimated life of the pool of loans. Loans where New Residential expects to collect all contractually required principal and interest payments are considered performing loans. Interest income on performing loans is accrued and recognized as interest income at their effective yield, which includes contractual interest and the amortization of purchase price discount or premium and deferred fees or expenses. Loans acquired with the intent to sell and loans not acquired with the intent to sell that New Residential decides to sell are classified as held-for-sale. Loans held-for-sale are measured at the lower of cost or fair value, with valuation changes recorded in impairment. Purchase price discounts or premiums are deferred in a contra loan account until the related loan is sold. The deferred discounts or premiums are an adjustment to the basis of the loan and are included in the quarterly determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. Real estate owned (“REO”) assets are those individual properties acquired by New Residential or where New Residential receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession). New Residential measures REO assets at the lower of cost or fair value, with valuation changes recorded in other income or impairment, as applicable. |
Impairment of Securities and Loans | Impairment of Securities - Securities are considered to be impaired when it is probable that New Residential will be unable to collect all principal or interest when due according to the contractual terms of the original agreements, or for securities purchased at a discount for credit quality or that represent retained beneficial interests in securitizations, when New Residential determines that it is probable that it will be unable to collect as anticipated. The evaluation of a security’s estimated cash flows includes the following, as applicable: (i) review of the credit of the issuer or borrower, (ii) review of the credit rating of the security, (iii) review of the key terms of the security or underlying loans, (iv) review of the performance of the underlying loans, including debt service coverage and loan to value ratios, (v) analysis of the value of the underlying loans, (vi) analysis of the effect of local, industry and broader economic factors, and (vii) analysis of historical and anticipated trends in defaults, loss severities and prepayments for similar securities or underlying loans. New Residential must record a write down if it has the intent to sell a given security in an unrealized loss position, or if it is more likely than not that it will be required to sell such a security. Upon determination of impairment, New Residential records a direct write down for securities based on the estimated fair value of the security or underlying collateral using a discounted cash flow analysis or based on an observable market value. Subsequent to a determination of impairment, and a related write down, income on securities is accrued on an effective yield method from the new carrying value to the related expected cash flows, with cash received treated as a reduction of basis. Impairment of Loans - To the extent that they are classified as held-for-investment, New Residential must periodically evaluate each of these loans or loan pools for possible impairment. Impairment is indicated when it is deemed probable that New Residential will be unable to collect all amounts due according to the contractual terms of the loan, or for PCD loans, when it is deemed probable that New Residential will be unable to collect as anticipated. Upon determination of impairment, New Residential establishes an allowance for loan losses with a corresponding charge to earnings. Performing loans are aggregated into pools for the evaluation of impairment based on like characteristics, such as loan type and acquisition date. Pools of loans are evaluated based on criteria such as an analysis of borrower performance, credit ratings of borrowers, loan to value ratios, the estimated value of the underlying collateral, the key terms of the loans and historical and anticipated trends in defaults and loss severities for the type and seasoning of loans being evaluated. This information is used to estimate provisions for estimated unidentified incurred losses on pools of loans. Significant judgment is required in determining impairment and in estimating the resulting loss allowance. For PCD loans, New Residential estimates the total cash flows expected to be collected over the remaining life of each pool. Probable decreases in expected cash flows trigger the recognition of impairment. Impairments are recognized through the provision for loans and an increase in the allowance for loan losses. Probable and significant increases in expected cash flows would first reverse any previously recorded allowance for loan losses with any remaining increases recognized prospectively as a yield adjustment over the remaining estimated lives of the underlying loans. A loan is determined to be past due when a monthly payment is due and unpaid for 30 days or more. Loans, other than PCD loans, are placed on nonaccrual status and considered non-performing when full payment of principal and interest is in doubt, which generally occurs when principal or interest is 120 days or more past due unless the loan is both well secured and in the process of collection. A loan may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loan. New Residential’s ability to recognize interest income on nonaccrual loans as cash interest payments are received rather than as a reduction of the carrying value of the loans is based on the recorded loan balance being deemed fully collectible. Loans held-for-sale are subject to the nonaccrual policy described above, however, as loans held-for-sale are recognized at the lower of cost or fair value, New Residential’s allowance for loan losses and charge-off policies do not apply to these loans. |
Expense Recognition - Interest Expense | New Residential finances certain investments using floating rate repurchase agreements and loans. Interest is expensed as incurred. |
Expense Recognition - General and Administrative Expenses and Loan Servicing Expense | General and administrative expenses, including legal fees, audit fees, insurance premiums, and other costs, as well as loan servicing expenses, and are expensed as incurred. |
Expense Recognition - Management and Incentive Compensation to Affiliate | These represent amounts due to the Manager pursuant to the Management Agreement. |
Balance Sheet Measurement - Investments in Servicing Related Assets | Servicing Related Assets consist of New Residential’s investments in Excess MSRs and Servicer Advances. Upon acquisition, New Residential has elected to record each of such investments at fair value. New Residential elected to record its investments at fair value in order to provide users of the financial statements with better information regarding the effects of prepayment risk and other market factors on Servicing Related Assets. Under this election, New Residential records a valuation adjustment on its investments in Servicing Related Assets on a quarterly basis to recognize the changes in fair value in net income as described in “Income Recognition — Investments in Excess Mortgage Servicing Rights” and “Income Recognition — Investments in Servicer Advances.” |
Balance Sheet Measurement - Investments in Real Estate Securities and Residential Mortgage Loans | Investments in Real Estate Securities — New Residential has classified its investments in real estate securities as available for sale. Securities available for sale are carried at market value with the net unrealized gains or losses reported as a separate component of accumulated other comprehensive income, to the extent impairment losses are considered temporary. At disposition, the net realized gain or loss is determined on the basis of the amortized cost of the specific investments and is included in earnings. Unrealized losses on securities are charged to earnings if they reflect a decline in value that is other-than-temporary. Investments in Residential Mortgage Loans — Residential mortgage loans for which New Residential has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are classified as held-for-investment. Performing loans held-for-investment are presented at the aggregate unpaid principal balance adjusted for any unamortized premium or discount, deferred fees or expenses, an allowance for loan losses, charge-offs and write-down for impaired loans. PCD loans held-for-investment are initially recorded at their purchase price at acquisition and are subsequently measured net of any allowance for loan losses. To the extent that the loans are classified as held-for-investment, New Residential periodically evaluates such loans for possible impairment as described in “—Impairment of Loans.” Loans which New Residential does not have the intent or the ability to hold into the foreseeable future are considered held-for-sale and are carried at the lower of their amortized cost basis or fair value. New Residential discontinues the accretion of discounts or amortization of premiums on loans if they are reclassified from held-for-investment to held-for-sale. |
Balance Sheet Measurement - Cash and Cash Equivalents and Restricted Cash | New Residential considers all highly liquid short-term investments with maturities of 90 days or less when purchased to be cash equivalents. Substantially all amounts on deposit with major financial institutions exceed insured limits. |
Balance Sheet Measurement - Derivatives | New Residential financed certain investments with the same counterparty from which it purchased those investments, and accounted for the contemporaneous purchase of the investments and the associated financings as “linked transactions” prior to January 1, 2015. Accordingly, New Residential recorded a non-hedge derivative instrument on a net basis, with changes in market value recorded as “—Other Income” in the Consolidated Statements of Income. In the Consolidated Statement of Cash Flows, New Residential presented the linked transactions on a gross basis with the related asset purchased reflected as an investment activity and the related financing as a financing activity. New Residential also entered into various economic hedges, as further described in Note 10, that are marked to fair value on a periodic basis through “—Other Income.” |
Balance Sheet Measurement - Income Taxes | New Residential operates so as to qualify as a REIT under the requirements of the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. Requirements for qualification as a REIT include various restrictions on ownership of New Residential’s stock, requirements concerning distribution of taxable income and certain restrictions on the nature of assets and sources of income. A REIT must distribute at least 90% of its taxable income to its stockholders of which 85% plus any undistributed amounts from the prior year must be distributed within the taxable year in order to avoid the imposition of an excise tax. Distribution of the remaining balance may extend until timely filing of New Residential’s tax return in the subsequent taxable year. Qualifying distributions of taxable income are deductible by a REIT in computing taxable income. Certain activities of New Residential are conducted through taxable REIT subsidiaries (“TRSs”) and therefore are subject to federal and state income taxes. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases upon the change in tax status. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. New Residential recognizes tax benefits for uncertain tax positions only if it is more likely than not that the position is sustainable based on its technical merits. Interest and penalties on uncertain tax positions are included as a component of the provision for income taxes on the consolidated statements of operations. |
Balance Sheet Measurement - Repurchase Agreements and Notes Payable | New Residential’s repurchase agreements are generally short-term debt that expire within one year . Such agreements and notes payable are carried at their contractual amounts, as specified by each repurchase or financing agreement, and generally treated as collateralized financing transactions. |
Recent Accounting Pronouncements | In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure . The standard clarifies the timing of when a creditor is considered to have taken physical possession of residential real estate collateral for a consumer mortgage loan, resulting in the reclassification of the loan receivable to real estate owned. A creditor has taken physical possession of the property when either (1) the creditor obtains legal title through foreclosure, or (2) the borrower transfers all interests in the property to the creditor via a deed in lieu of foreclosure or a similar legal agreement. The standard also requires disclosure of the amount of foreclosed residential real estate property held by the creditor and the recorded investment in residential real estate mortgage loans that are in process of foreclosure. The ASU was effective for New Residential in the first quarter of 2015. New Residential has adopted the new guidance and has determined there was no impact on its consolidated financial statements. 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 2018. 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 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. 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 consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-14, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force). The standard provides guidance on how to classify and measure certain government-guaranteed mortgage loans upon foreclosure. A mortgage loan is to be derecognized and a separate other receivable is to be recognized upon foreclosure in the amount of the loan balance (principal and interest) expected to be recovered from the guarantor if (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and 3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. The ASU is effective in the first quarter of 2015 and early adoption was permitted. New Residential adopted ASU No. 2014-14 as of September 30, 2014, as it relates to the reverse mortgage portfolio. This portfolio is comprised primarily of U.S. Department of Housing and Urban Development (HUD)-guaranteed reverse mortgage loans. Upon foreclosure of a reverse mortgage loan, New Residential receives the real estate property in satisfaction of the loan and intends to dispose of the property for the best possible economic value. To the extent the liquidation proceeds are less than the unpaid principal balance (UPB) of the loan, New Residential submits a claim to HUD for the lesser of the remaining UPB or the pre-determined HUD claim amount. New Residential’s exposure to market risk while the foreclosed property is in its possession is limited to the extent the HUD claim amount is unlikely to cover any shortfall in property disposal proceeds. After the adoption of ASU No. 2014-14, upon foreclosure of a guaranteed reverse mortgage loan, New Residential records a “receivable from government agency” for the expected liquidation proceeds, comprised of both the property disposal proceeds and the maximum HUD claim amount. New Residential used the modified retrospective transition method of adoption, that resulted in no cumulative-effect adjustment as of the beginning of the current fiscal year. 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 was permitted. New Residential adopted this new guidance in the fourth quarter of 2015 and it did not have an impact on its consolidated financial statements, other than the addition of certain disclosures. 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 to an offset of its Notes Payable (Note 11). In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805) - Simplifying the Accounting for Measurement-Period Adjustments . The standard requires that an acquirer in a business combination recognize adjustments to provisional amounts in the purchase price allocation that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU No. 2015-16 is effective for New Residential in the first quarter of 2016. Early adoption was permitted. New Residential adopted this new guidance in the fourth quarter of 2015 and applied it prospectively. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities. The standard: (i) requires that certain equity investments be measured at fair value, and modifies the assessment of impairment for certain other equity investments, (ii) changes certain disclosure requirements related to the fair value of financial instruments measured at amortized cost, (iii) changes certain disclosure requirements related to liabilities measured at fair value, (iv) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and (v) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU No. 2016-01 is effective for New Residential in the first quarter of 2018. Early adoption is generally not permitted. An entity should apply ASU No. 2016-01 by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. New Residential is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. The FASB has recently issued or discussed a number of proposed standards on such topics as 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) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Total Consideration | 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 HLSS 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) HLSS New Merger Payment The HLSS 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 was from $0.0 million to $50.0 million , dependent on whether the HLSS New Merger was approved by HLSS shareholders and other factors. As of the HLSS New Merger Effective Time, the net contingent consideration paid was fixed at $5.1 million . |
Summary of Preliminary Allocation of Total Consideration | The preliminary allocation of the total consideration, following reclassifications to conform to New Residential’s presentation, is as follows: Total Consideration ($ in millions) $ 1,491.2 Assets Cash and cash equivalents $ 51.4 Servicer advances, at fair value 5,096.7 Excess mortgage servicing rights, at fair value 917.1 Residential mortgage loans, held-for-sale (A) 416.8 Deferred tax asset (B) 195.1 Investment in HLSS Ltd. 44.9 Other assets (C) 402.4 Total Assets Acquired $ 7,124.4 Liabilities Notes payable 5,580.3 Accrued expenses and other liabilities (D)(E) 52.9 Total Liabilities Assumed $ 5,633.2 Net Assets $ 1,491.2 (A) Represents $424.3 million unpaid principal balance (“UPB”) of Government National Mortgage Association (“Ginnie Mae”) early buy-out (“EBO”) residential mortgage loans not subject to Accounting Standards Codification (“ASC”) No. 310-30 as the contractual cash flows are guaranteed by the Federal Housing Administration (“FHA”). (B) Due primarily 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 had not been recognized at the acquisition date as the criteria in ASC No. 450 had not been met (Note 14). |
Summary of Unaudited Pro Forma Combined Interest Income and Income Before Income Taxes | The following table presents unaudited pro forma combined Interest income and Income Before Income Taxes for the years ended December 31, 2015 and 2014 prepared as if the HLSS Acquisition had been consummated on January 1, 2014. Year Ended December 31, 2015 2014 (unaudited) (unaudited) Pro Forma Interest income $ 731,660 $ 744,363 Income Before Income Taxes 322,365 647,058 |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Accretion and Other Amortization | Accretion and Other Amortization — As reflected on the consolidated statements of cash flows, this item is comprised of the following: Year Ended December 31, 2015 2014 2013 Accretion of servicer advance interest income $ 352,316 $ 190,206 $ 4,421 Accretion of excess mortgage servicing rights income 134,565 49,180 40,921 Accretion of net discount on securities and loans (A) 65,925 47,793 14,676 Amortization of deferred financing costs (26,036 ) (8,771 ) (768 ) Amortization of discount on notes payable (1,472 ) — — $ 525,298 $ 278,408 $ 59,250 (A) Includes accretion of the accretable yield on PCD loans. |
Schedule of Other Income (Loss), Net | Other Income (Loss), Net — This item is comprised of the following: Year Ended December 31, 2015 2014 2013 Unrealized gain (loss) on derivative instruments $ (5,957 ) $ (13,037 ) $ 1,820 Unrealized gain (loss) on other ABS 879 — — Gain (loss) on transfer of loans to REO 2,065 17,489 — Fee earned on deal termination — 5,000 — Gain on Excess MSR recapture agreements 2,999 1,157 — Other income (loss) 2,984 20 — $ 2,970 $ 10,629 $ 1,820 |
Schedule of Gain (Loss) on Settlement of Investments, Net | Gain (loss) on settlement of investments, net — This item is comprised of the following: Year Ended December 31, 2015 2014 2013 Gain (loss) on sale of real estate securities, net $ 13,096 $ 65,701 $ 52,657 Gain (loss) on sale of residential mortgage loans, net 33,335 — — Gain (loss) on settlement of derivatives (44,563 ) (36,210 ) — Gain (loss) on liquidated residential mortgage loans (360 ) 3,645 — Gain (loss) on sale of REO (10,742 ) (3,686 ) — Other gains (losses) (7,973 ) 6,037 $ — $ (17,207 ) $ 35,487 $ 52,657 |
Schedule of Other Assets and Other Liabilities | Other assets and liabilities are comprised of the following: Other Assets Accrued Expenses and Other Liabilities December 31, December 31, 2015 2014 2015 2014 Margin receivable, net $ 54,459 $ 59,021 Interest payable $ 18,268 $ 7,857 Other receivables (A) 10,893 1,797 Accounts payable 18,650 28,059 Principal paydown receivable 795 3,595 Derivative liabilities 13,443 14,220 Receivable from government agency (B) 68,833 9,108 Current taxes payable 1,573 2,349 Call rights 414 3,728 Other liabilities 6,112 20 Interest receivable 36,963 8,658 $ 58,046 $ 52,505 Ginnie Mae EBO servicer advance receivable, net (C) 49,725 — Other assets (D) 14,675 9,516 $ 236,757 $ 95,423 (A) Primarily includes a receivable from Ocwen related to their servicer rating downgrade, claims receivable related to reverse mortgage loans and receivables related to residual securities owned. (B) 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. (C) Represents an HLSS loan to a counterparty collateralized by servicer advances on Ginnie Mae EBO loans. (D) Primarily includes prepaid taxes and other prepaid expenses. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 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 Year Ended December 31, 2015 Interest income $ 134,565 $ 354,616 $ 110,123 $ 43,180 $ 1 $ 2,587 $ 645,072 Interest expense 11,625 216,837 18,230 21,510 1,615 4,196 274,013 Net interest income (expense) 122,940 137,779 91,893 21,670 (1,614 ) (1,609 ) 371,059 Impairment — — 5,788 18,596 — — 24,384 Other income 72,802 (53,426 ) (33,604 ) 15,405 43,954 (3,102 ) 42,029 Operating expenses 1,101 14,316 1,227 13,415 228 87,536 117,823 Income (Loss) Before Income Taxes 194,641 70,037 51,274 5,064 42,112 (92,247 ) 270,881 Income tax expense (benefit) — (8,127 ) — (3,199 ) 325 — (11,001 ) Net Income (Loss) $ 194,641 $ 78,164 $ 51,274 $ 8,263 $ 41,787 $ (92,247 ) $ 281,882 Noncontrolling interests in income (loss) of consolidated subsidiaries $ — $ 18,407 $ — $ — $ — $ (5,161 ) $ 13,246 Net income (loss) attributable to common stockholders $ 194,641 $ 59,757 $ 51,274 $ 8,263 $ 41,787 $ (87,086 ) $ 268,636 Servicing Related Assets Residential Securities and Loans Excess MSRs Servicer Advances Real Estate Securities Real Estate Loans Consumer Loans Corporate Total December 31, 2015 Investments $ 1,798,738 $ 7,857,841 $ 2,070,834 $ 1,157,433 $ — $ — $ 12,884,846 Cash and cash equivalents 18,507 95,686 42,984 13,262 6,359 73,138 249,936 Restricted cash 878 93,824 — — — — 94,702 Derivative assets — 2,689 — — — — 2,689 Other assets 34 198,962 1,600,091 106,330 1,767 53,365 1,960,549 Total assets $ 1,818,157 $ 8,249,002 $ 3,713,909 $ 1,277,025 $ 8,126 $ 126,503 $ 15,192,722 Debt $ 182,978 $ 7,550,680 $ 2,513,538 $ 1,004,980 $ 40,446 $ — $ 11,292,622 Other liabilities 2,277 18,153 740,392 14,382 459 137,857 913,520 Total liabilities 185,255 7,568,833 3,253,930 1,019,362 40,905 137,857 12,206,142 Total equity 1,632,902 680,169 459,979 257,663 (32,779 ) (11,354 ) 2,986,580 Noncontrolling interests in equity of consolidated subsidiaries — 190,647 — — — — 190,647 Total New Residential stockholders’ equity $ 1,632,902 $ 489,522 $ 459,979 $ 257,663 $ (32,779 ) $ (11,354 ) $ 2,795,933 Investments in equity method investees $ 217,221 $ — $ — $ — $ — $ — $ 217,221 Servicing Related Assets Residential Securities and Loans Excess MSRs Servicer Advances Real Estate Securities Real Estate Loans Consumer Loans Corporate Total Year Ended December 31, 2014 Interest income $ 49,180 $ 190,206 $ 60,208 $ 47,262 $ — $ 1 $ 346,857 Interest expense 1,294 110,968 12,689 11,073 4,184 500 140,708 Net interest income (expense) 47,886 79,238 47,519 36,189 (4,184 ) (499 ) 206,149 Impairment — — 1,391 9,891 — — 11,282 Other income 100,052 83,828 14,589 30,759 145,860 — 375,088 Operating expenses 713 2,183 10,012 12,688 917 78,386 104,899 Income (Loss) Before Income Taxes 147,225 160,883 50,705 44,369 140,759 (78,885 ) 465,056 Income tax expense — 20,806 — 2,059 92 — 22,957 Net Income (Loss) $ 147,225 $ 140,077 $ 50,705 $ 42,310 $ 140,667 $ (78,885 ) $ 442,099 Noncontrolling interests in income (loss) of consolidated subsidiaries $ — $ 89,222 $ — $ — $ — $ — $ 89,222 Net income (loss) attributable to common stockholders $ 147,225 $ 50,855 $ 50,705 $ 42,310 $ 140,667 $ (78,885 ) $ 352,877 Servicing Related Assets Residential Securities and Loans Excess MSRs Servicer Advances Real Estate Securities Real Estate Loans Consumer Loans Corporate Total December 31, 2014 Investments $ 748,609 $ 3,270,839 $ 2,463,163 $ 1,236,210 $ — $ — $ 7,718,821 Cash and restricted cash — 59,383 43,728 7,757 — 102,117 212,985 Restricted cash — 29,418 — — — — 29,418 Derivative assets — 194 32,091 312 — — 32,597 Other assets — 10,206 69,980 14,159 609 469 95,423 Total assets $ 748,609 $ 3,370,040 $ 2,608,962 $ 1,258,438 $ 609 $ 102,586 $ 8,089,244 Debt $ — $ 2,885,784 $ 2,246,651 $ 925,418 $ — $ — $ 6,057,853 Other liabilities 215 25,467 17,511 24,141 195 113,937 181,466 Total liabilities 215 2,911,251 2,264,162 949,559 195 113,937 6,239,319 Total equity 748,394 458,789 344,800 308,879 414 (11,351 ) 1,849,925 Noncontrolling interests in equity of consolidated subsidiaries — 253,836 — — — — 253,836 Total New Residential stockholders’ equity $ 748,394 $ 204,953 $ 344,800 $ 308,879 $ 414 $ (11,351 ) $ 1,596,089 Investments in equity method investees $ 330,876 $ — $ — $ — $ — $ — $ 330,876 Servicing Related Assets Residential Securities and Loans Excess MSRs Servicer Advances Real Estate Securities Real Estate Loans Consumer Loans Corporate Total Year Ended December 31, 2013 Interest income $ 40,921 $ 4,421 $ 39,533 $ 2,650 $ — $ 42 $ 87,567 Interest expense — 3,901 10,876 — — 247 15,024 Net interest income 40,921 520 28,657 2,650 — (205 ) 72,543 Impairment — — 4,993 461 — — 5,454 Other income 103,675 — 52,645 1,832 82,856 — 241,008 Operating expenses 215 2,077 312 357 2,076 37,437 42,474 Income (Loss) Before Income Taxes 144,381 (1,557 ) 75,997 3,664 80,780 (37,642 ) 265,623 Income tax expenses — — — — — — — Net Income (Loss) $ 144,381 $ (1,557 ) $ 75,997 $ 3,664 $ 80,780 $ (37,642 ) $ 265,623 Noncontrolling interests in income of consolidated subsidiaries $ — $ (326 ) $ — $ — $ — $ — $ (326 ) Net income (loss) attributable to stockholders $ 144,381 $ (1,231 ) $ 75,997 $ 3,664 $ 80,780 $ (37,642 ) $ 265,949 |
INVESTMENTS IN EXCESS MORTGAG31
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 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, 2013 $ 324,151 $ — $ — $ 324,151 Purchases 85,735 8,378 — 94,113 Interest income 49,143 37 — 49,180 Other income 1,157 — — 1,157 Proceeds from repayments (92,483 ) — — (92,483 ) Change in fair value 41,373 242 — 41,615 Balance as of December 31, 2014 409,076 8,657 — 417,733 Transfers from indirect ownership 98,258 — — 98,258 Purchases 254,149 — 917,078 1,171,227 Interest income 66,039 180 68,346 134,565 Other income 2,999 — — 2,999 Proceeds from repayments (131,621 ) (1,291 ) (148,996 ) (281,908 ) Change in fair value (C) (D) (596 ) (2,239 ) 41,478 38,643 Balance as of December 31, 2015 $ 698,304 $ 5,307 $ 877,906 $ 1,581,517 (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 (Note1). (C) In 2015, New Residential recorded a cumulative positive prior period adjustment of $4.2 million on its Excess MSR investments serviced by Nationstar resulting from adjustments to certain modeling assumptions. (D) In the fourth quarter of 2015, New Residential recorded a change in estimate in the calculation of fair value of $41.5 million on its Excess MSR investments serviced by Ocwen resulting from adjustments to certain modeling assumptions. |
Summary of Investments in Excess MSRs | The following is a summary of New Residential’s direct investments in Excess MSRs: December 31, 2015 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis (B) Carrying Value (C) New Residential Fortress-managed funds Nationstar Agency Original and Recaptured Pools $ 93,441,696 32.5% - 66.7% 0.0% - 40.0% 20.0% - 35.0% 5.8 $ 335,478 $ 378,083 Recapture Agreements — 32.5% - 66.7% 0.0% - 40.0% 20.0% - 35.0% 12.0 36,627 59,118 93,441,696 6.4 372,105 437,201 Non-Agency (D) Nationstar and SLS Serviced: Original and Recaptured Pools $ 94,923,975 33.3% - 80.0% 0.0% - 50.0% 0.0% - 33.3% 5.2 $ 210,691 $ 250,662 Recapture Agreements — 33.3% - 80.0% 0.0% - 50.0% 0.0% - 33.3% 12.3 14,130 15,748 Ocwen Serviced Pools 141,002,300 100.0 % — % — % 6.2 836,428 877,906 235,926,275 6.1 1,061,249 1,144,316 Total $ 329,367,971 6.2 $ 1,433,354 $ 1,581,517 December 31, 2014 UPB of Underlying Mortgages Interest in Excess MSR Weighted Average Life Years (A) Amortized Cost Basis (B) Carrying Value (C) New Residential Fortress-managed funds Nationstar Agency Original and Recaptured Pools $ 48,217,901 32.5%-66.7% 0.0%-33.3% 33.3%-35% 5.7 $ 140,455 $ 188,733 Recapture Agreements — 32.5%-66.7% 0.0%-33.3% 33.3%-35% 12.3 8,887 28,786 48,217,901 6.1 149,342 217,519 Non-Agency (D) Original and Recaptured Pools $ 54,263,857 33.3%-80.0% 0.0%-50.0% 0.0%-33.3% 5.0 $ 152,763 $ 189,812 Recapture Agreements — 33.3%-80.0% 0.0%-50.0% 0.0%-33.3% 11.9 11,291 10,402 54,263,857 5.5 164,054 200,214 Total $ 102,481,758 5.8 $ 313,396 $ 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 December 31, 2015 (Note 6). Changes in fair value recorded in other income is comprised of the following: Year Ended December 31, 2015 2014 2013 Original and Recaptured Pools $ 34,936 $ 35,000 $ 37,692 Recapture Agreements 3,707 6,615 15,640 $ 38,643 $ 41,615 $ 53,332 |
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 December 31, State Concentration 2015 2014 California 26.7 % 31.5 % Florida 8.9 % 7.7 % New York 7.8 % 4.3 % Texas 4.3 % 4.2 % New Jersey 4.1 % 3.2 % Maryland 3.8 % 4.0 % Illinois 3.4 % 3.2 % Virginia 3.1 % 3.3 % Washington 2.7 % 3.6 % Massachusetts 2.7 % 2.1 % Other U.S. 32.5 % 32.9 % 100.0 % 100.0 % |
INVESTMENTS IN EXCESS MORTGAG32
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2015 2014 Excess MSR assets $ 421,999 $ 653,293 Other assets 12,442 8,472 Other liabilities — (13 ) Equity $ 434,441 $ 661,752 New Residential’s investment $ 217,221 $ 330,876 New Residential’s ownership 50.0 % 50.0 % Year Ended December 31, 2015 2014 2013 Interest income $ 51,811 $ 67,698 $ 50,306 Other income (loss) 10,615 46,961 53,964 Expenses (107 ) (99 ) (3,585 ) Net income $ 62,319 $ 114,560 $ 100,685 New Residential’s investments in equity method investees changed during the years ended December 31, 2015 and 2014 as follows: 2015 2014 Balance at beginning of period $ 330,876 $ 352,766 Contributions to equity method investees — — Transfers to direct ownership (98,258 ) — Distributions of earnings from equity method investees (37,874 ) (53,427 ) Distributions of capital from equity method investees (8,683 ) (25,743 ) Change in fair value of investments in equity method investees (A) 31,160 57,280 Balance at end of period $ 217,221 $ 330,876 (A) In 2015, New Residential recorded a cumulative positive prior period adjustment of $2.7 million resulting from adjustments to certain modeling assumptions. |
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: December 31, 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 $ 73,058,050 66.7% 50.0% $ 275,338 $ 351,275 5.7 Recapture Agreements — 66.7% 50.0% 45,421 70,724 11.9 Total $ 73,058,050 $ 320,759 $ 421,999 6.6 December 31, 2014 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 $ 87,584,677 66.7% 50.0% $ 299,065 $ 370,059 5.6 Recapture Agreements — 66.7% 50.0% 67,136 86,756 11.7 87,584,677 366,201 456,815 6.7 Non-Agency (E) Original and Recaptured Pools 58,673,144 66.7%-77.0% 50.0% 173,784 181,368 5.1 Recapture Agreements — 66.7%-77.0% 50.0% 12,325 15,110 12.4 58,673,144 186,109 196,478 5.6 Total $ 146,257,821 $ 552,310 $ 653,293 6.3 (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. (E) Excess MSR investments in which New Residential also invested in related Servicer Advances, including the basic fee component of the related MSR as of December 31, 2015 (Note 6). |
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 December 31, State Concentration 2015 2014 California 12.9 % 23.5 % Florida 7.4 % 8.9 % Texas 6.1 % 4.8 % New York 5.8 % 5.6 % Georgia 5.7 % 4.1 % New Jersey 4.3 % 3.9 % Illinois 4.0 % 3.5 % Maryland 3.2 % 3.3 % Virginia 3.2 % 3.2 % Pennsylvania 3.1 % 2.3 % Other U.S. 44.3 % 36.9 % 100.0 % 100.0 % |
INVESTMENTS IN SERVICER ADVAN33
INVESTMENTS IN SERVICER ADVANCES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, All Other Investments [Abstract] | |
Summary of Information on the Assets and Liabilities related to Consolidated VIE | The following table presents information on the assets and liabilities related to this consolidated VIE. As of December 31, 2015 2014 Assets Servicer advance investments, at fair value $ 2,344,245 $ 3,186,830 Cash and cash equivalents 40,761 58,983 All other assets 25,092 31,092 Total assets (A) $ 2,410,098 $ 3,276,905 Liabilities Notes payable $ 2,060,347 $ 2,811,371 All other liabilities 6,111 7,990 Total liabilities (A) $ 2,066,458 $ 2,819,361 (A) The creditors of the Buyer do not have recourse to the general credit of New Residential and the assets of the Buyer are not directly available to satisfy New Residential’s obligations. |
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, made by New Residential: Amortized Cost Basis Carrying Value (A) Weighted Average Discount Rate Weighted Average Yield Weighted Average Life (Years) (B) Change in Fair Value Recorded in Other Income for Year then Ended December 31, 2015 Servicer Advances (C) $ 7,400,068 $ 7,426,794 5.6 % 5.5 % 4.4 $ (57,491 ) December 31, 2014 Servicer Advances $ 3,186,622 $ 3,270,839 5.4 % 5.8 % 4.0 $ 84,217 (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. (C) Excludes asset-backed securities collateralized by Servicer Advances with an aggregate face amount of $431.0 million and an aggregate carrying value of $430.3 million as of December 31, 2015 . See Note 7 for details related to these securities. The following is additional information regarding the Servicer Advances and related financing: Loan-to-Value (A) Cost of Funds (C) 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 (B) Gross Net December 31, 2015 Servicer Advances (D) $ 220,256,804 $ 7,578,110 3.4 % $ 7,058,094 91.2 % 90.2 % 3.4 % 2.6 % December 31, 2014 Servicer Advances (D) $ 96,547,773 $ 3,102,492 3.2 % $ 2,890,230 91.4 % 90.4 % 3.0 % 2.3 % (A) Based on outstanding Servicer Advances, excluding purchased but unsettled Servicer Advances and certain deferred servicing fees (“DSF”) which New Residential receives financing on. If New Residential were to include these DSF in the servicer advance balance, gross and net LTV as of December 31, 2015 would be 86.9% and 85.9% , respectively. Also excludes retained non-agency bonds with a current face amount of $175.8 million from the outstanding servicer advances debt. If New Residential were to sell these bonds, gross and net LTV as of December 31, 2015 would be 93.4% and 92.4% , respectively. (B) Ratio of face amount of borrowings to par amount of Servicer Advance collateral, net of any general reserve. (C) 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. (D) The following types of advances comprise the investments in Servicer Advances: December 31, 2015 2014 Principal and interest advances $ 2,229,468 $ 729,713 Escrow advances (taxes and insurance advances) 3,687,559 1,600,713 Foreclosure advances 1,661,083 772,066 Total $ 7,578,110 $ 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: Year Ended December 31, 2015 2014 2013 Interest income, gross of amounts attributable to servicer compensation $ 754,717 $ 290,309 $ 6,708 Amounts attributable to base servicer compensation (97,351 ) (26,092 ) (2,287 ) Amounts attributable to incentive servicer compensation (305,050 ) (74,011 ) — Interest income from investments in Servicer Advances $ 352,316 $ 190,206 $ 4,421 Others’ interests in the equity of the Buyer is computed as follows: December 31, 2015 2014 Total Advance Purchaser LLC equity $ 343,640 $ 457,545 Others’ ownership interest 55.5 % 55.5 % Others’ interest in equity of consolidated subsidiary $ 190,647 $ 253,836 Others’ interests in the Buyer’s net income (loss) is computed as follows: Year Ended December 31, 2015 2014 2013 Net Advance Purchaser LLC income (loss) $ 33,180 $ 159,374 $ (517 ) Others’ ownership interest as a percent of total (A) 55.5 % 56.0 % 63.1 % Others’ interest in net income (loss) of consolidated subsidiaries (B) $ 18,407 $ 89,222 (326 ) (A) As a result, New Residential owned 44.5% , 44.0% and 36.9% of the Buyer, on average during the years ended December 31, 2015 , 2014 and 2013 , respectively. (B) Excludes HLSS shareholders’ interests in the net income (loss) of HLSS of $5.2 million during the year ended December 31, 2015 . |
INVESTMENTS IN REAL ESTATE SE34
INVESTMENTS IN REAL ESTATE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Real Estate Securities | Activities related to New Residential’s investments in real estate securities were as follows: Year Ended December 31, 2015 Year Ended December 31, 2014 (in millions) (in millions) Agency Non Agency (A) Agency Non Agency Purchases Face $ 5,140.1 $ 2,397.9 $ 1,341.0 $ 3,187.5 Purchase Price $ 5,333.7 $ 1,288.9 $ 1,399.0 $ 1,455.8 Sales Face $ 5,772.5 $ 476.4 $ 746.9 $ 2,004.3 Amortized Cost $ 5,997.5 $ 422.7 $ 791.3 $ 1,228.4 Sale Price $ 6,007.6 $ 425.7 $ 796.4 $ 1,289.0 Gain on Sale $ 10.1 $ 3.0 $ 5.1 $ 60.6 (A) Purchases include $431.0 million face of servicer advance bonds for a purchase price of $431.0 million . 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 Asset Type Outstanding Face Amount Amortized Cost Basis Gains Losses Carrying Value (A) Number of Securities Rating (B) Coupon (C) Yield Life (Years) (D) Principal Subordination (E) December 31, 2015 Agency RMBS (F)(G) $ 884,578 $ 918,633 $ 183 $ (1,218 ) $ 917,598 28 AAA 3.28 % 2.75 % 6.6 N/A Non-Agency RMBS (H) (I) 3,533,974 1,579,445 22,964 (18,126 ) 1,584,283 240 BB+ 1.63 % 5.03 % 6.8 12.1 % Total/Weighted Average $ 4,418,552 $ 2,498,078 $ 23,147 $ (19,344 ) $ 2,501,881 268 A- 2.69 % 4.19 % 6.7 December 31, 2014 Agency RMBS (F)(G) $ 1,646,361 $ 1,724,329 $ 18,572 $ (2,738 ) $ 1,740,163 104 AAA 3.22 % 2.22 % 5.0 N/A Non-Agency RMBS (H) 1,896,150 710,515 15,327 (2,842 ) 723,000 142 CCC 1.98 % 3.37 % 6.4 17.3 % Total/Weighted Average $ 3,542,511 $ 2,434,844 $ 33,899 $ (5,580 ) $ 2,463,163 246 A 2.86 % 2.83 % 5.7 (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 89 bonds with a carrying value of $333.0 million 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) Excludes residual bonds, and certain other Non-Agency bonds, with a carrying value of $227.4 million and $0.0 million , respectively, for which no coupon payment is expected. (D) The weighted average life is based on the timing of expected principal reduction on the assets. (E) Percentage of the amortized cost basis of securities that is subordinate to New Residential’s investments, excluding interest-only bonds and servicer advance bonds. (F) Includes securities issued or guaranteed by U.S. Government agencies such as Fannie Mae or Freddie Mac. (G) The total outstanding face amount was $0.7 billion and $1.0 billion for fixed rate securities and $0.2 billion and $0.6 billion for floating rate securities as of December 31, 2015 and 2014 , respectively. (H) The total outstanding face amount was $2.3 billion (including $1.7 billion of residual and interest-only notional amount) and $1.0 billion (including $959.1 million of interest-only notional amount) for fixed rate securities and $1.3 billion (including $164.4 million of residual and interest-only notional amount) and $882.4 million (including $130.6 million of residual and interest-only notional amount) for floating rate securities as of December 31, 2015 and 2014 , respectively. (I) Includes Other ABS consisting primarily of (i) interest-only securities which New Residential elected to carry at fair value and record changes to valuation through the income statement and representing 5.2% of the carrying value of the Non-Agency RMBS portfolio and (ii) bonds backed by servicer advances representing 27.2% 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 $ 1,522,256 $ 82,101 $ 5,227 $ (4,348 ) $ 82,980 12 AA+ 1.84 % 7.11 % 4.0 N/A Servicer Advance Bonds $ 431,000 $ 430,951 $ — $ (661 ) $ 430,290 5 AA+ 2.69 % 2.70 % 1.1 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 December 31, 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 $ 1,697,478 $ 1,028,088 $ (5,028 ) $ 1,023,060 $ (14,508 ) $ 1,008,552 127 BBB 2.14 % 4.25 % 5.9 Twelve or More Months 766,444 192,699 — 192,699 (4,836 ) 187,863 25 AA+ 2.30 % 1.72 % 5.1 Total/Weighted Average $ 2,463,922 $ 1,220,787 $ (5,028 ) $ 1,215,759 $ (19,344 ) $ 1,196,415 152 BBB+ 2.17 % 3.85 % 5.7 (A) This amount represents other-than-temporary impairment recorded on securities that are in an unrealized loss position as of December 31, 2015 . (B) The weighted average rating of securities in an unrealized loss position for less than twelve months excludes the rating of 51 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: December 31, 2015 Unrealized Losses Fair Value Amortized Cost Basis After Impairment Credit (A) Non-Credit (B) Securities New Residential intends to sell (C) $ 19,875 $ 19,875 $ (224 ) $ — 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 172,114 174,049 (4,804 ) (1,935 ) Non-credit impaired securities 1,004,426 1,021,835 — (17,409 ) Total debt securities in an unrealized loss position $ 1,196,415 $ 1,215,759 $ (5,028 ) $ (19,344 ) (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 December 31, 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: Year Ended December 31, 2015 2014 Beginning balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income $ 1,127 $ 2,071 Increases to credit losses on securities for which an OTTI was previously recognized and a portion of an OTTI was recognized in other comprehensive income 5 568 Additions for credit losses on securities for which an OTTI was not previously recognized 5,782 823 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 — (401 ) Reduction for securities sold during the period (675 ) (1,934 ) Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income $ 6,239 $ 1,127 |
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: December 31, 2015 2014 Geographic Location (A) Outstanding Face Amount Percentage of Total Outstanding Outstanding Face Amount Percentage of Total Outstanding Western U.S. $ 1,097,609 35.3 % $ 779,930 41.1 % Southeastern U.S. 758,167 24.4 % 409,755 21.6 % Northeastern U.S. 583,366 18.8 % 344,716 18.2 % Midwestern U.S. 335,406 10.8 % 190,480 10.0 % Southwestern U.S. 309,236 10.0 % 170,829 9.0 % Other (B) 19,189 0.7 % 440 0.1 % $ 3,102,973 100.0 % $ 1,896,150 100.0 % (A) Excludes $431.0 million face amount of bonds backed by servicer advances. (B) 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 December 31, 2015 $ 873,763 $ 504,659 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: Year Ended December 31, 2015 2014 Beginning Balance $ 181,671 $ 143,067 Adoption of ASU No. 2014-11 (Note 2) 146,741 — Additions 172,828 189,252 Accretion (42,800 ) (14,035 ) Reclassifications from (to) non-accretable difference (36,326 ) 20,385 Disposals (105,593 ) (156,998 ) Ending Balance $ 316,521 $ 181,671 |
INVESTMENTS IN RESIDENTIAL MO35
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS (Tables) | 12 Months Ended |
Dec. 31, 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: See Note 10 for a discussion of transactions formerly accounted for as linked transactions. December 31, 2015 Outstanding Face Amount Carrying (A) Loan Weighted Average Yield Weighted Average Life (Years) (B) Floating Rate Loans as a % of Face Amount Loan to Value Ratio (“LTV”) (C) Weighted Avg. Delinquency (D) Weighted Average FICO (E) Loan Type Reverse Mortgage Loans (F)(G) $ 34,423 $ 19,560 136 10.0 % 4.2 21.8 % 112.9 % 71.3 % N/A Performing Loans (H) 21,483 19,964 671 9.1 % 6.7 17.1 % 77.4 % 7.5 % 626 Purchased Credit Deteriorated Loans (I) 450,229 290,654 2,118 5.5 % 2.5 18.7 % 115.4 % 97.6 % 578 Total Residential Mortgage Loans, held-for-investment $ 506,135 $ 330,178 2,925 6.0 % 2.8 18.8 % 113.6 % 92.0 % 580 Performing Loans, held-for-sale (H) $ 270,585 $ 277,084 1,838 4.6 % 4.9 4.6 % 57.0 % — % 702 Non-Performing Loans, held-for-sale (I) (J) 589,129 499,597 3,428 5.9 % 2.9 14.5 % 104.5 % 81.1 % 580 Total Residential Mortgage Loans, held-for-sale $ 859,714 $ 776,681 5,266 5.5 % 3.5 11.4 % 89.6 % 55.6 % 619 December 31, 2014 Loan Type Reverse Mortgage Loans (F)(G) $ 45,182 $ 24,965 198 10.2 % 3.9 21.4 % 108.2 % 82.6 % N/A Performing Loans (H) 24,399 22,873 731 7.9 % 5.9 17.4 % 72.0 % — % 628 Total Residential Mortgage Loans, held-for-investment $ 69,581 $ 47,838 929 9.4 % 4.6 20.0 % 95.5 % 53.6 % 628 Performing Loans, held-for-sale (H) $ 403,992 $ 388,485 5,809 5.6 % 7.2 23.0 % 85.0 % 5.0 % 626 Non-Performing Loans, held-for-sale (I) 960,224 737,954 5,025 5.9 % 2.6 3.7 % 104.0 % 90.0 % 571 Total Residential Mortgage Loans, held-for-sale $ 1,364,216 $ 1,126,439 10,834 5.8 % 4.0 9.4 % 98.4 % 64.8 % 587 (A) Includes residential mortgage loans with a United States federal income tax basis of $1,204.2 million and $1,159.1 million as of December 31, 2015 and 2014 , respectively. (B) The weighted average life is based on the expected timing of the receipt of cash flows. (C) LTV refers to the ratio comparing the loan’s unpaid principal balance to the value of the collateral property. (D) Represents the percentage of the total principal balance that are 60+ days delinquent. (E) The weighted average FICO score is based on the weighted average of information updated and provided by the loan servicer on a monthly basis. (F) Represents a 70% interest New Residential holds in reverse mortgage loans. The average loan balance outstanding based on total UPB was $0.4 million and $0.3 million at December 31, 2015 and 2014 , respectively, and 71% and 77% of these loans outstanding at each respective date 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. (G) FICO scores are not used in determining how much a borrower can access via a reverse mortgage loan. (H) 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 premiums of $12.0 million . (I) 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 December 31, 2015 , New Residential has placed all of these loans on nonaccrual status, except as described in (J) below. (J) Includes $246.3 million UPB of Ginnie Mae 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 December 31, State Concentration 2015 2014 New York 14.5 % 12.2 % New Jersey 13.1 % 7.0 % California 12.3 % 15.0 % Florida 10.7 % 6.3 % Illinois 4.3 % 4.4 % Maryland 3.5 % 3.4 % Massachusetts 3.3 % 2.4 % Texas 3.3 % 4.1 % Washington 3.2 % 3.0 % Pennsylvania 2.8 % 3.9 % Other U.S. 29.0 % 38.3 % 100.0 % 100.0 % See Note 11 regarding the financing of residential mortgage loans. |
Schedule of Residential Mortgage Loan Transactions | The following table summarizes these transactions (dollars in millions). Securities Owned Prior Assets Acquired Loans Sold (C) Retained Bonds Retained Assets (C) Date of Call (A) Number of Trusts Called Face Amount Amortized Cost Basis Loan UPB Loan Price (B) REO & Other Price (B) UPB Gain (Loss) Basis Type Loan UPB Loan Price REO & Other Price May 27, 2014 16 $ 17.4 $ 12.0 $ 282.2 $ 289.4 $ — $ 233.8 $ 3.5 N/A N/A $ 48.4 $ 40.1 $ 1.3 August 25, 2014 19 15.4 13.1 530.1 536.3 3.0 463.0 7.0 $ 25.8 Interest-Only 66.4 46.3 3.0 December 26, 2014 25 27.9 24.0 597.1 623.7 — 516.1 0.7 28.9 Interest-Only 81.0 71.7 4.3 June 25, 2015 18 13.7 9.1 369.0 388.8 — 334.5 (2.8 ) 15.0 Interest-Only 34.5 31.7 1.3 September 25, 2015 7 7.4 4.5 216.3 223.1 1.5 N/A (C) N/A (C) N/A (C) N/A (C) 19.4 17.2 1.5 November 25, 2015 14 3.9 3.0 345.4 351.7 1.2 511.8 2.4 22.0 Interest-Only 29.8 23.4 1.2 December 23, 2015 14 61.4 48.0 309.1 315.1 3.1 N/A (C) N/A (C) N/A (C) N/A (C) N/A (C) N/A (C) N/A (C) (A) Any related securitization may occur on the same or a subsequent date, depending on market conditions and other factors. Except as otherwise noted in (C) below, there was one securitization associated with each call. (B) Price includes par amount paid for all underlying mortgage loans of the trusts, plus the basis of the exercised call rights, plus advances and costs incurred (including MSR Fund Payments, as defined in Note 15) in exercising such call rights. (C) Loans were sold through a securitization which was treated as a sale for accounting purposes. The securitization that occurred in November 2015 primarily included loans from the September 25, 2015 and November 25, 2015 calls, but also included previously acquired loans. The retained assets disclosed for the September 25, 2015 call are net of the related loans sold in the November 2015 securitization. No loans from the December 23, 2015 call had been securitized by December 31, 2015 . |
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: December 31, 2015 Days Past Due Delinquency Status (A) Current 93.5 % 30-59 5.9 % 60-89 0.3 % 90-119 (B) 0.1 % 120+ (C) 0.2 % 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 PCD Loans Held-for-Investment | Activities related to the carrying value of PCD loans held-for-investment were as follows: Balance at December 31, 2013 $ — Purchases/additional fundings 749,739 Sales — Proceeds from repayments (20,431 ) Accretion of loan discount and other amortization 30,361 Transfer of loans to real estate owned (21,842 ) Transfer of loans to held-for-sale (737,827 ) Balance at December 31, 2014 $ — Purchases/additional fundings 289,664 Sales — Proceeds from repayments — Accretion of loan discount and other amortization 990 Transfer of loans to real estate owned — Balance at December 31, 2015 $ 290,654 Activities related to the carrying value of reverse mortgage loans and performing loans held-for-investment were as follows: Reverse Mortgage Loans Performing Loans Balance at December 31, 2013 $ 33,539 $ — Purchases/additional fundings — 134,818 Proceeds from repayments (2,810 ) (10,381 ) Accretion of loan discount and other amortization (A) 6,501 2,994 Provision for loan losses (1,111 ) (651 ) Transfer of loans to other assets (10,261 ) — Transfer of loans to real estate owned (947 ) — Transfer of loans to held-for-sale — (103,907 ) Reversal of valuation provision on loans transferred to other assets 54 — Balance at December 31, 2014 24,965 22,873 Purchases/additional fundings 988 — Proceeds from repayments (687 ) (2,918 ) Accretion of loan discount and other amortization (A) 5,904 52 Provision for loan losses (35 ) (43 ) Transfer of loans to other assets (11,574 ) — Transfer of loans to real estate owned (1 ) — Balance at December 31, 2015 $ 19,560 $ 19,964 (A) Includes accelerated accretion of discount on loans paid in full and on loans transferred to other assets. |
Summary of Activities Related to the Valuation Provision on Reverse Mortgage Loans and Allowance for Loan Losses on Performing Loans Held-for-Investment | Activities related to the valuation provision on reverse mortgage loans and allowance for loan losses on performing loans held-for-investment were as follows: Reverse Mortgage Loans Performing Loans Balance at December 31, 2013 $ 461 $ — Provision for loan losses (A) 1,111 1,811 Charge-offs (B) — (364 ) Reversal of valuation provision on loans transferred to other assets (54 ) — Balance at December 31, 2014 1,518 1,447 Provision for loan losses (A) 35 43 Charge-offs (B) — (1,371 ) Balance at December 31, 2015 $ 1,553 $ 119 (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 PCD 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 Contractually Required Payments Receivable, Cash Flows Expected to be Collected, and Fair Value at Acquisition date for Loans Acquired During Period | The following is the contractually required payments receivable, cash flows expected to be collected, and fair value at acquisition date for PCD loans acquired during the year ended December 31, 2015 : Contractually Required Payments Receivable Cash Flows Expected to be Collected Fair Value As of Acquisition Date 717,718 361,717 289,664 |
Summary of Unpaid Principal Balance and Carrying Value for Loans Uncollectible | The following is the unpaid principal balance and carrying value for loans, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments: Unpaid Principal Balance Carrying Value December 31, 2015 $ 450,229 $ 290,654 December 31, 2014 $ 960,224 $ 737,954 |
Summary of Changes in Accretable Yield | The following is a summary of the changes in accretable yield for these loans: Balance at December 31, 2013 $ — Additions 207,231 Accretion (30,361 ) Reclassifications from non-accretable difference (A) 6,836 Disposals (B) (8,324 ) Transfer to held-for-sale (C) (175,382 ) Balance at December 31, 2014 $ — Additions 72,053 Accretion (990 ) Reclassifications from non-accretable difference (A) — Disposals (B) — Balance at December 31, 2015 $ 71,063 (A) Represents a probable and significant increase in cash flows previously expected to be uncollectible. (B) Includes sales of loans or foreclosures, which result in removal of the loan from the PCD loan pool at its carrying amount. (C) Recognition of the accretable yield ceases upon transfer of the PCD loan pools to held-for-sale. |
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: Balance at December 31, 2013 $ — Purchases (A) 1,577,933 Sales (1,289,687 ) Transfers of loans from linked transactions (B) 4,595 Transfers of loans from held-for-investment (C) 841,734 Proceeds from repayments (2,413 ) Valuation provision on loans (D) (5,723 ) Balance at December 31, 2014 $ 1,126,439 Purchases (A) 1,695,124 Sales (1,871,054 ) Transfer of loans to other assets (41,752 ) Transfer of loans to real estate owned (34,139 ) Adoption of ASU No. 2014-11 (E) 1,831 Proceeds from repayments (85,698 ) Valuation provision on loans (D) (14,070 ) Balance at December 31, 2015 $ 776,681 (A) Represents loans acquired with the intent to sell, including loans acquired in the HLSS Acquisition (Note 1). (B) Represents loans previously financed with the selling counterparty and previously accounted for as linked transactions that New Residential decided to sell. (C) Represents loans not acquired with the intent to sell that New Residential decided to sell. (D) Represents the fair value adjustments to loans upon transfer to held-for-sale and provision recorded on certain purchased held-for-sale loans, including $10.5 million of provision related to the call transaction executed on December 23, 2015. (E) Represents loans financed with the selling counterparty that were previously accounted for as linked transactions (Note 10). |
Schedule of Real Estate Owned | New Residential recognizes REO assets at the completion of the foreclosure process or upon execution of a deed in lieu of foreclosure with the borrower. REO assets are managed for prompt sale and disposition at the best possible economic value. Real Estate Owned Balance at December 31, 2014 $ 61,933 Purchases 26,208 Transfer of loans to real estate owned 35,322 Sales (68,441 ) Valuation provision on REO (4,448 ) Balance at December 31, 2015 $ 50,574 |
INVESTMENTS IN CONSUMER LOANS36
INVESTMENTS IN CONSUMER LOANS, EQUITY METHOD INVESTEES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments In Consumer Loans Equity Method Investees [Abstract] | |
Summary of the Investment in the Consumer Loan Companies | The following tables summarize the investment in the Consumer Loan Companies held by New Residential: December 31, 2015 2014 Consumer Loan Assets (amortized cost basis) $ 1,698,130 $ 2,088,330 Other Assets 70,469 92,051 Debt (1,912,267 ) (2,411,421 ) Other Liabilities (5,640 ) (12,340 ) Equity $ (149,308 ) $ (243,380 ) New Residential’s investment $ — $ — New Residential’s ownership 30.0 % 30.0 % Year Ended December 31, 2015 2014 2013 Interest income $ 455,479 $ 534,990 $ 481,056 Interest expense (87,000 ) (81,706 ) (71,639 ) Provision for finance receivable losses (67,935 ) (104,921 ) (60,619 ) Other expenses, net (60,263 ) (74,781 ) (67,225 ) Change in fair value of debt — (14,810 ) — Loss on extinguishment of debt — (21,151 ) — Net income $ 240,281 $ 237,621 $ 281,573 New Residential’s equity in net income through October 3, 2014 $ — $ 53,840 $ 82,856 New Residential’s ownership 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) December 31, 2015 $ 2,094,904 30.0 % $ 1,698,130 18.2 % 18.1 % 3.1 December 31, 2014 $ 2,589,748 30.0 % $ 2,088,330 18.1 % 16.1 % 3.6 (A) Represents the November 30, 2015 and 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 was 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. |
Summary of Changes in Investments in Consumer Loans, Equity Method Investees | New Residential’s investments in consumer loans, equity method investees changed as follows: Year Ended December 31, 2015 2014 Balance at beginning of period $ — $ 215,062 Contributions to equity method investees — — Distributions of earnings from equity method investees — (53,840 ) Distributions of capital from equity method investees — (215,062 ) Earnings from investments in consumer loan equity method investees — 53,840 Balance at end of period $ — $ — Year Ended December 31, 2015 2014 Tax withholding payments on behalf of New Residential, treated as non-cash distributions $ 585 $ 609 Distributions in excess of basis, treated as gains, excluding tax withholding payments $ 43,369 $ 91,411 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives | New Residential’s derivatives are recorded at fair value on the Consolidated Balance Sheets as follows: December 31, Balance Sheet Location 2015 2014 Derivative assets Real Estate Securities (A) Derivative assets $ — $ 32,090 Non-Performing Loans (A) Derivative assets — 312 Interest Rate Caps Derivative assets 2,689 195 $ 2,689 $ 32,597 Derivative liabilities TBAs Accrued expenses and other liabilities $ 2,058 $ 4,985 Interest Rate Swaps Accrued expenses and other liabilities 11,385 9,235 $ 13,443 $ 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: December 31, 2015 2014 Non-Performing Loans (A) $ — $ 2,931 Real Estate Securities (B) — 186,694 TBAs, short position (C) 1,450,000 1,234,000 TBAs, long position (C) 750,000 — Interest Rate Caps (D) 3,400,000 210,000 Interest Rate Swaps (E) 2,444,000 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 0.50% for $650.0 million of notional, at 0.75% for $2,600.0 million of notional, and at 4.0% for $150.0 million of notional. (E) Receive LIBOR and pay a fixed rate. The following table summarizes gains (losses) recorded in relation to derivatives: Year Ended December 31, 2015 2014 2013 Other income (loss), net Non-Performing Loans (A) $ — $ (1,149 ) $ 1,831 Real Estate Securities (A) — 2,336 (11 ) TBAs (2,058 ) (4,985 ) — Interest Rate Caps (1,749 ) (4 ) — Interest Rate Swaps (2,150 ) (9,235 ) — (5,957 ) (13,037 ) 1,820 Gain (loss) on settlement of investments, net Non-Performing Loans (A) — 5,609 — Real Estate Securities (A) — 43 — TBAs (27,142 ) (33,638 ) — Interest Rate Caps (1,180 ) — — Interest Rate Swaps (16,241 ) (8,400 ) — U.S.T. Short Positions — 176 — (44,563 ) (36,210 ) — Total gains (losses) $ (50,520 ) $ (49,247 ) $ 1,820 (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 presents both gross and net information about transactions formerly accounted for as linked transactions: December 31, 2014 Non-Performing Loans Non-performing loan assets, at fair value (A) $ 1,581 Repurchase agreements (B) (1,269 ) 312 Real Estate Securities Real estate securities, at fair value (C) 116,739 Repurchase agreements (B) (84,649 ) 32,090 Net assets recognized as linked transactions $ 32,402 (A) Non-performing loans that had a UPB of $2.9 million as of December 31, 2014 , which represented the notional amount of the linked transaction and accrued interest. (B) Represents carrying amount that approximates fair value. (C) Real estate securities that had a current face amount of $186.7 million as of December 31, 2014 , which represented the notional amount of the linked transaction. |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 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 (A) Real Estate Securities Real Estate Loans and REO Other Total Balance at December 31, 2013 (B) $ 2,390,778 $ 1,620,711 $ 22,840 $ 75,000 $ 4,109,329 Repurchase Agreements: Borrowings — 4,122,434 2,027,301 150,000 6,299,735 Repayments — (3,496,494 ) (1,124,862 ) (150,000 ) (4,771,356 ) Notes Payable: Borrowings 5,840,232 — 1,242 — 5,841,474 Retrospective adjustment for the adoption of ASU No. 2015-03 (Note 2) (4,446 ) — — — (4,446 ) Repayments (5,340,780 ) — (1,103 ) (75,000 ) (5,416,883 ) Balance at December 31, 2014 (B) $ 2,885,784 $ 2,246,651 $ 925,418 $ — $ 6,057,853 Repurchase Agreements: Borrowings — 7,649,261 1,915,056 43,158 9,607,475 Modified retrospective adjustment for the adoption of ASU No. 2014-11 (Note 2) — 84,649 1,306 — 85,955 Repayments — (6,963,404 ) (1,832,462 ) (2,712 ) (8,798,578 ) Adoption of ASU No. 2015-03 (Note 2) — — (888 ) — (888 ) Notes Payable: Borrowings 10,780,237 — 1,632 852,419 11,634,288 Repayments (6,612,372 ) — (5,082 ) (669,406 ) (7,286,860 ) Adoption of ASU No. 2015-03 (Note 2) (6,588 ) — — (35 ) (6,623 ) Balance at December 31, 2015 $ 7,047,061 $ 3,017,157 $ 1,004,980 $ 223,424 $ 11,292,622 (A) New Residential net settles daily borrowings and repayments of the Notes Payable on its Servicer Advances. (B) Excludes debt related to linked transactions (Note 10). The following table presents certain information regarding New Residential’s debt obligations: December 31, 2015 December 31, 2014 Collateral Debt Obligations/Collateral Month Issued Outstanding Face Amount Carrying Value (A) Final Stated Maturity (B) Weighted Average Funding Cost Weighted Average Life (Years) Outstanding Face Amortized Cost Basis Carrying Value Weighted Average Life (Years) Carrying Value (A) Repurchase Agreements (C) Agency RMBS (D) Various $ 1,683,305 $ 1,683,305 Jan-16 0.60 % 0.1 $ 1,673,125 $ 1,731,758 $ 1,730,586 0.6 $ 1,707,602 Non-Agency RMBS (E) Various 1,333,852 1,333,852 Jan-16 to May-16 1.72 % 0.1 3,233,171 1,535,350 1,538,703 7.0 539,049 Residential Mortgage Loans (F) Various 908,811 907,993 May-16 to Jan-17 2.80 % 0.8 1,318,603 1,091,523 1,075,816 3.2 867,334 Real Estate Owned (G) (H) Various 77,528 77,458 Feb-16 to Jan-17 3.05 % 0.9 N/A N/A 86,911 N/A 35,105 Consumer Loan Investment (I) Apr-15 40,446 40,446 Apr-16 3.83 % 0.3 N/A N/A — 3.1 — Total Repurchase Agreements 4,043,942 4,043,054 1.54 % 0.2 3,149,090 Notes Payable Secured Corporate Note (J) May-15 184,433 182,978 Apr-17 5.67 % 1.3 92,619,325 217,517 261,102 5.1 — Servicer Advances (K) Various 7,058,094 7,047,061 Apr-16 to Aug-18 3.39 % 1.4 7,578,110 7,400,068 7,426,794 4.4 2,885,784 Residential Mortgage Loans (L) Oct-15 19,529 19,529 Oct-16 3.08 % 0.8 34,423 21,113 19,560 4.2 22,194 Real Estate Owned — — — — — % — N/A N/A — N/A 785 Total Notes Payable 7,262,056 7,249,568 3.45 % 1.3 2,908,763 Total/Weighted Average $ 11,305,998 $ 11,292,622 2.77 % 1.0 $ 6,057,853 (A) Net of deferred financing costs associated with the adoption of ASU No. 2015-03 (Note 2). (B) All debt obligations with a stated maturity of January or February 2016 were refinanced, extended or repaid. (C) These repurchase agreements had approximately $4.8 million of associated accrued interest payable as of December 31, 2015 . (D) All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include approximately $1.5 billion of related trade and other receivables. (E) All of the Non-Agency RMBS repurchase agreements have LIBOR-based floating interest rates. This includes repurchase agreements of $145.8 million on retained servicer advance bonds. (F) All of these repurchase agreements have LIBOR-based floating interest rates. (G) All of these repurchase agreements have LIBOR-based floating interest rates. (H) Includes financing collateralized by receivables including claims from FHA on Ginnie Mae EBO loans for which foreclosure has been completed and for which New Residential have made or intend to make a claim on the FHA guarantee. (I) The repurchase agreement bears interest equal to three-month LIBOR plus 3.50% and is collateralized by New Residential’s interest in consumer loans (Note 9). (J) 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 amount of the collateral represents the UPB of the residential mortgage loans underlying the Excess MSRs that secure this corporate note. (K) $2.7 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 1.7% to 2.2% . (L) 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 December 31, 2015 had contractual maturities as follows: Year Nonrecourse Recourse Total 2016 $ 2,754,360 $ 3,723,952 $ 6,478,312 2017 3,996,400 462,906 4,459,306 2018 368,380 — 368,380 $ 7,119,140 $ 4,186,858 $ 11,305,998 |
Schedule of Borrowing Capacity | The following table represents New Residential’s borrowing capacity as of December 31, 2015 : Debt Obligations/ Collateral Collateral Type Borrowing Capacity Balance Outstanding Available Financing Repurchase Agreements Residential Mortgage Loans Real Estate Loans and REO $ 2,495,000 $ 986,339 $ 1,508,661 Notes Payable Servicer Advances (A) Servicer Advances 8,524,183 7,058,094 1,466,089 $ 11,019,183 $ 8,044,433 $ 2,974,750 (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 0.5% fee on the unused borrowing capacity. Excludes borrowing capacity and outstanding debt for retained non-agency bonds with a current face amount of $175.8 million . |
FAIR VALUE OF FINANCIAL INSTR39
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Fair Values of Financial Assets and Liabilities Recorded at Fair Value on a Recurring Basis | The carrying values and fair values of New Residential’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of December 31, 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) $ 329,367,971 $ 1,581,517 $ — $ — $ 1,581,517 $ 1,581,517 Excess mortgage servicing rights, equity method investees, at fair value (A) 73,058,050 217,221 — — 217,221 217,221 Servicer advances 7,578,110 7,426,794 — — 7,426,794 7,426,794 Real estate securities, available-for-sale 4,418,552 2,501,881 — 917,598 1,584,283 2,501,881 Residential mortgage loans, held-for-investment 506,135 330,178 — — 330,433 330,433 Residential mortgage loans, held-for-sale 859,714 776,681 — — 784,750 784,750 Non-hedge derivatives 3,400,000 2,689 — 2,689 — 2,689 Cash and cash equivalents 249,936 249,936 249,936 — — 249,936 Restricted cash 94,702 94,702 94,702 — — 94,702 $ 13,181,599 $ 344,638 $ 920,287 $ 11,924,998 $ 13,189,923 Liabilities: Repurchase agreements $ 4,043,942 $ 4,043,054 $ — $ 4,043,942 $ — $ 4,043,942 Notes payable 7,262,056 7,249,568 — — 7,260,909 7,260,909 Derivative liabilities 4,644,000 13,443 — 13,443 — 13,443 $ 11,306,065 $ — $ 4,057,385 $ 7,260,909 $ 11,318,294 (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. The carrying values and fair values of New Residential’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of December 31, 2014 were as follows: Fair Value Principal Balance or Notional Amount Carrying Value Level 1 Level 2 Level 3 Total Assets Investments in: Excess mortgage servicing rights, at fair value (A) $ 102,481,758 $ 417,733 $ — $ — $ 417,733 $ 417,733 Excess mortgage servicing rights, equity method investees, at fair value (A) 146,257,821 330,876 — — 330,876 330,876 Servicer advances 3,102,492 3,270,839 — — 3,270,839 3,270,839 Real estate securities, available-for-sale 3,542,511 2,463,163 — 1,740,163 723,000 2,463,163 Residential mortgage loans, held-for-investment 69,581 47,838 — — 47,913 47,913 Residential mortgage loans, held-for-sale 1,364,216 1,126,439 — — 1,140,070 1,140,070 Non-hedge derivatives (B) 399,625 32,597 — 195 32,402 32,597 Cash and cash equivalents 212,985 212,985 212,985 — — 212,985 Restricted cash 29,418 29,418 29,418 — — 29,418 $ 7,931,888 $ 242,403 $ 1,740,358 $ 5,962,833 $ 7,945,594 Liabilities Repurchase agreements $ 3,149,090 $ 3,149,090 $ — $ 2,246,651 $ 902,439 $ 3,149,090 Notes payable 2,913,209 2,908,763 — 822,587 2,092,814 2,915,401 Derivative liabilities 2,341,000 14,220 — 14,220 — 14,220 $ 6,072,073 $ — $ 3,083,458 $ 2,995,253 $ 6,078,711 (A) The notional amount represents the total unpaid principal balance of the mortgage loans underlying the Excess MSRs. New Residential does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios. (B) The notional amount for formerly linked transactions consisted of the aggregate UPB amounts of the loans and securities that comprised the asset portion of the linked transaction. |
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, 2013 $ 144,660 $ 179,491 $ 245,399 $ 107,367 $ 2,665,551 $ 570,425 $ 35,926 $ 3,948,819 Transfers (C) Transfers from Level 3 — — — — — — — — Transfers to Level 3 — — — — — — — — Gains (losses) included in net income Included in other-than-temporary impairment (OTTI) on securities (D) — — — — — (927 ) — (927 ) Included in change in fair value of investments in excess mortgage servicing rights (D) 24,265 17,350 — — — — — 41,615 Included in change in fair value of investments in excess mortgage servicing rights, equity method investees (D) — — 40,120 17,160 — — — 57,280 Included in change in fair value of investments in Servicer Advances — — — — 84,217 — — 84,217 Included in gain (loss) on settlement of investments, net — — — — — 60,553 5,652 66,205 Included in other income (loss), net (D) 1,157 — — — — — 1,187 2,344 Gains (losses) included in other comprehensive income (E) — — — — — 8,819 — 8,819 Interest income 22,451 26,729 — — 190,206 17,713 — 257,099 Purchases, sales and repayments Purchases/contributions from Newcastle 66,197 27,916 — — 6,830,266 1,455,996 39,538 8,419,913 Proceeds from sales — — — — — (1,288,980 ) (25,240 ) (1,314,220 ) Proceeds from repayments (41,211 ) (51,272 ) (52,901 ) (26,269 ) (6,499,401 ) (100,599 ) (9,069 ) (6,780,722 ) Settlements (F) — — — — — — (15,592 ) (15,592 ) 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) — — — — — (5,788 ) — (5,788 ) Included in change in fair value of investments in excess mortgage servicing rights (D) (3,080 ) 41,723 — — — — — 38,643 Included in change in fair value of investments in excess mortgage servicing rights, equity method investees (D) — — 31,160 — — — — 31,160 Included in change in fair value of investments in Servicer Advances — — — — (57,491 ) — — (57,491 ) Included in gain (loss) on settlement of investments, net — — — — — 3,061 — 3,061 Included in other income (loss), net (D) 2,852 147 — — — 879 — 3,878 Gains (losses) included in other comprehensive income (E) — — — — — (6,701 ) — (6,701 ) Interest income 30,742 103,823 — — 352,316 69,632 — 556,513 Purchases, sales, repayments and transfers Purchases 254,149 917,078 — — 20,042,582 1,288,901 — 22,502,710 Proceeds from sales — — — — — (425,761 ) — (425,761 ) Proceeds from repayments (64,981 ) (216,927 ) (46,557 ) — (16,181,452 ) (179,772 ) — (16,689,689 ) Other — — De-linked transactions (G) — — — — — 116,832 (32,402 ) 84,430 Balance at December 31, 2015 $ 437,201 $ 1,144,316 $ 217,221 $ — $ 7,426,794 $ 1,584,283 $ — $ 10,809,815 (A) Includes the recapture agreement for each respective pool. (B) Amounts represent New Residential’s portion of the Excess MSRs held by the respective joint ventures in which New Residential has a 50% interest. (C) Transfers are assumed to occur at the beginning of the respective period. (D) The gains (losses) recorded in earnings during the period are attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting dates and realized gains (losses) recorded during the period. (E) These gains (losses) were included in net unrealized gain (loss) on securities in the Consolidated Statements of Comprehensive Income. (F) Includes value of 1) residential mortgage loans transferred to REO net of associated repurchase financing agreements, and 2) residential mortgage loans no longer treated as linked transactions due to repayment of associated repurchase financing. (G) See Note 10 for a discussion of transactions formerly accounted for as linked transactions. |
Summary of Certain Information Regarding Weighted Average Inputs used in Valuing Excess MSRs Owned Directly and through Equity Method Investees | The following tables summarize certain information regarding the weighted average inputs used in valuing the Excess MSRs owned directly and through equity method investees: December 31, 2015 Significant Inputs (A) Directly Held (Note 4) Prepayment Speed (B) Delinquency (C) Recapture Rate (D) Excess Mortgage Servicing Amount (E) Agency Original Pools 10.7 % 3.5 % 29.5 % 21 Recaptured Pools 7.5 % 4.9 % 20.0 % 20 Recapture Agreement 7.6 % 4.9 % 20.0 % 22 10.0 % 3.8 % 27.4 % 21 Non-Agency (F) Nationstar and SLS Serviced: Original Pools 12.5 % N/A 10.2 % 14 Recaptured Pools 7.5 % N/A 20.0 % 20 Recapture Agreement 7.5 % N/A 20.0 % 20 Ocwen Serviced Pools 9.3 % N/A — % 14 10.0 % N/A 2.6 % 14 Total/Weighted Average--Directly Held 10.0 % 3.8 % 9.5 % 16 Held through Equity Method Investees (Note 5) Agency Original Pools 12.6 % 5.9 % 34.3 % 19 Recaptured Pools 7.7 % 5.0 % 20.0 % 23 Recapture Agreement 7.7 % 4.9 % 20.0 % 23 Total/Weighted Average--Held through Investees 10.8 % 5.6 % 29.0 % 20 Total/Weighted Average--All Pools 10.2 % 4.2 % 13.6 % 17 December 31, 2014 Significant Inputs (A) Directly Held (Note 4) Prepayment Speed (B) Delinquency (C) Recapture Rate (D) Excess Mortgage Servicing Amount (E) Agency Original and Recaptured Pools 11.0 % 5.6 % 31.6 % 22 Recapture Agreement 8.0 % 5.0 % 19.9 % 20 10.6 % 5.5 % 30.1 % 22 Non-Agency (F) Original and Recaptured Pools 12.5 % N/A 10.0 % 15 Recapture Agreement 8.0 % N/A 20.0 % 20 12.3 % N/A 10.5 % 15 Total/Weighted Average--Directly Held 11.4 % 5.5 % 20.7 % 18 Held through Equity Method Investees (Note 5) Agency Original and Recaptured Pools 13.3 % 6.6 % 33.1 % 19 Recapture Agreement 8.0 % 5.0 % 20.0 % 23 12.3 % 6.3 % 30.6 % 20 Non-Agency (F) Original and Recaptured Pools 13.4 % N/A 10.0 % 12 Recapture Agreement 8.0 % N/A 20.0 % 20 13.0 % N/A 10.8 % 12 Total/Weighted Average--Held through Investees 12.5 % 6.3 % 24.6 % 17 Total/Weighted Average--All Pools 12.1 % 6.2 % 23.1 % 18 (A) Weighted by fair value of the 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 or Ocwen, as applicable. (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 (A) Delinquency Mortgage Servicing Amount (B) Discount Rate December 31, 2015 2.3 % 10.4 % 17.5 % 9.2 bps 5.6 % December 31, 2014 2.1 % 12.6 % 15.6 % 19.4 bps 5.4 % (A) Projected annual weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. (B) Mortgage servicing amount excludes the amounts New Residential pays its servicers as a monthly servicing fee. |
Schedule of Securities Valuation Methodology and Results | 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 December 31, 2015: Agency RMBS $ 884,578 $ 918,633 $ 917,598 $ — $ 917,598 2 Non-Agency RMBS (C) 3,533,974 1,579,445 1,029,981 554,302 1,584,283 3 Total $ 4,418,552 $ 2,498,078 $ 1,947,579 $ 554,302 $ 2,501,881 December 31, 2014: Agency RMBS $ 1,646,361 $ 1,724,329 $ 1,740,163 $ — $ 1,740,163 2 Non-Agency RMBS (C) 1,896,150 710,515 709,346 13,654 723,000 3 Total $ 3,542,511 $ 2,434,844 $ 2,449,509 $ 13,654 $ 2,463,163 (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 it 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, it 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. For approximately $228.5 million in 2015 and $13.7 million in 2014 , 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 residential mortgage loans: Carrying Value Fair Value Valuation Provision/ (Reversal) In Current Year Discount Rate Weighted Average Life (Years) (A) Prepayment Rate CDR (B) Loss Severity (C) December 31, 2015 Reverse Mortgage Loans (D) $ 19,560 $ 19,560 $ 35 10.0 % 4.2 N/A N/A 8.1 % Performing Loans 246,190 248,858 43 4.8 % 5.2 6.6 % 1.2 % 14.3 % Non-Performing Loans 588,096 593,754 N/A 5.4 % 2.5 1.4 % N/A 13.1 % Total/Weighted Average $ 853,846 $ 862,172 $ 78 5.3 % 3.3 13.3 % December 31, 2014 Reverse Mortgage Loans (D) $ 24,965 $ 24,965 $ 1,057 10.2 % 3.9 N/A N/A 5.9 % Performing Loans 374,745 383,689 N/A 4.6 % 7.0 5.7 % 2.2 % 44.9 % Non-Performing Loans 164,444 169,206 N/A 5.5 % 2.8 2.3 % N/A 25.8 % Total/Weighted Average $ 564,154 $ 577,860 $ 1,057 5.1 % 5.6 37.6 % (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. The following table summarizes the inputs used in valuing these residential mortgage loans: Fair Value Discount Rate Weighted Average Life (Years) (A) Prepayment Rate CDR (B) Loss Severity (C) December 31, 2015 Performing Loans $ 50,858 5.0 % 4.2 9.2 % 2.8 % 35.2 % Non-Performing Loans 202,155 5.7 % 3.4 2.9 % N/A 19.6 % Total/Weighted Average $ 253,013 5.6 % 3.6 4.2 % 22.7 % December 31, 2014 Performing Loans $ 36,613 4.6 % 7.5 4.2 % 4.2 % 40.2 % PCD Loans 573,510 5.7 % 2.6 2.9 % N/A 30.9 % Total/Weighted Average $ 610,123 5.6 % 2.9 3.0 % 31.5 % (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. Not applicable for PCD Loans that are not 100% in default. (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. |
EQUITY AND EARNINGS PER SHARE (
EQUITY AND EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Summary of Common Dividends Declared | Common dividends have been declared as follows: Per Share Declaration Date Payment Date Quarterly Dividend Special Dividend Total Dividend Total Amounts Distributed (millions) June 3, 2013 July 2013 $ 0.14 $ — $ 0.14 $ 17.7 September 18, 2013 October 2013 0.35 — 0.35 44.3 December 17, 2013 January 2014 0.35 0.15 0.50 63.3 March 19, 2014 April 2014 0.35 — 0.35 44.3 June 17, 2014 July 2014 0.35 0.15 0.50 70.6 September 18, 2014 October 2014 0.35 — 0.35 49.5 December 18, 2014 January 2015 0.38 — 0.38 53.7 March 16, 2015 April 2015 0.38 — 0.38 53.7 May 14, 2015 July 2015 0.45 — 0.45 89.5 September 18, 2015 October 2015 0.46 — 0.46 106.0 December 10, 2015 January 2016 0.46 — 0.46 106.0 |
Summary of Outstanding Options | New Residential’s outstanding options were summarized as follows: December 31, 2015 December 31, 2014 Issued Prior to 2011 Issued in 2011- 2015 Total Issued Prior to 2011 Issued in 2011 - 2014 Total Held by the Manager 345,720 10,582,860 10,928,580 473,377 8,432,597 8,905,974 Issued to the Manager and subsequently transferred to certain of the Manager’s employees 88,280 1,359,247 1,447,527 125,622 1,700,497 1,826,119 Issued to the independent directors — 4,000 4,000 1,000 4,000 5,000 Total 434,000 11,946,107 12,380,107 599,999 10,137,094 10,737,093 The following table summarizes New Residential’s outstanding options as of December 31, 2015 . The last sales price on the New York Stock Exchange for New Residential’s common stock in the year ended December 31, 2015 was $12.16 per share. Recipient Date of Grant/ Exercise (A) Number of Unexercised Options Options Exercisable as of December 31, 2015 Weighted Average Exercise Price (B) Intrinsic Value of Exercisable Options as of December 31, 2015 (millions) Directors Various 4,000 4,000 $ 13.58 $ — Manager (C) 2003 - 2007 434,000 434,000 31.36 — Manager (C) 2011 - 2012 25,000 25,000 7.19 0.1 Manager (C) 2013 1,936,068 1,936,068 10.98 2.3 Manager (C) 2014 1,437,500 958,333 12.20 — Manager (C) 2015 8,543,539 2,092,041 15.46 — Outstanding 12,380,107 5,449,442 (A) Options expire on the tenth anniversary from date of grant. (B) The exercise 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 Exercise Prices Total Unexercised Inception to Date 2004 - 2007 $29.92 to $33.80 88,280 2013 $10.24 to $11.48 1,100,497 2014 $12.20 258,750 Total 1,447,527 The following table summarizes activity in our outstanding options: Amount Weighted Average Exercise Price December 31, 2013 outstanding options 10,365,229 Options granted 1,437,500 $ 12.20 Options exercised (A) (648,573 ) $ 5.72 Options expired unexercised (417,063 ) December 31, 2014 outstanding options 10,737,093 Options granted 8,543,539 $ 15.46 Options exercised (A) (6,734,525 ) $ 7.81 Options expired unexercised (166,000 ) December 31, 2015 outstanding options 12,380,107 See table above (A) The 6.7 million and 0.6 million options that were exercised in 2015 and 2014 had an intrinsic value of approximately $59.4 million and $4.5 million , respectively, at the date of exercise. |
TRANSACTIONS WITH AFFILIATES 41
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Affiliate Transactions | Due to affiliates is comprised of the following amounts: December 31, 2015 2014 Management fees $ 6,671 $ 1,710 Incentive compensation 16,017 54,334 Expense reimbursements and other 1,097 1,380 Total $ 23,785 $ 57,424 Affiliate expenses and fees were comprised of: Year Ended December 31, 2015 2014 2013 Management fees $ 33,475 $ 19,651 $ 15,343 Incentive compensation 16,017 54,334 16,847 Expense reimbursements (A) 500 500 500 Total $ 49,992 $ 74,485 $ 32,690 (A) Included in General and Administrative Expenses in the Consolidated Statements of Income. |
RECLASSIFICATION FROM ACCUMUL42
RECLASSIFICATION FROM ACCUMULATED OTHER COMPREHENSIVE INCOME INTO NET INCOME (Tables) | 12 Months Ended |
Dec. 31, 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 Income Components Statement of Income Location Year Ended December 31, 2015 2014 2013 Reclassification of net realized (gain) loss on securities into earnings Gain on settlement of securities $ (13,096 ) $ (65,701 ) $ (52,657 ) Reclassification of net realized (gain) loss on securities into earnings Other-than-temporary impairment on securities 5,788 1,391 4,993 Total reclassifications $ (7,308 ) $ (64,310 ) $ (47,664 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of the following: Year Ended December 31, 2015 2014 2013 Current: Federal $ (2,737 ) $ 3,737 $ — State and Local (1,631 ) 2,799 — Total Current Income Tax Expense (Benefit) (4,368 ) 6,536 — Deferred: Federal (2,778 ) 12,853 — State and Local (3,855 ) 3,568 — Total Deferred Income Tax Expense (Benefit) (6,633 ) 16,421 — Total Income Tax Expense (Benefit) $ (11,001 ) $ 22,957 $ — |
Schedule of Reported Provision for Income Taxes and the U.S. Federal Statutory Rate | The difference between New Residential’s reported provision for income taxes and the U.S. federal statutory rate of 35% is as follows: December 31, 2015 2014 2013 Provision at the statutory rate 35.00 % 35.00 % 35.00 % Non-taxable REIT income (36.51 )% (31.12 )% (35.00 )% State and local taxes (1.16 )% 0.69 % — % Other (1.58 )% 0.37 % — % Total provision (4.25 )% 4.94 % — % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liability are presented below: December 31, 2015 2014 Deferred tax assets: Servicer Advances $ 144,842 $ — Allowance for loan losses 136 962 Unrealized mark to market 468 — Net operating losses 42,944 2,657 Other 6,330 134 Total deferred tax assets 194,720 3,753 Less valuation allowance (9,409 ) (3,619 ) Net deferred tax assets $ 185,311 $ 134 Deferred tax liabilities: Unrealized — (15,248 ) Total deferred tax (liability) $ — $ (15,248 ) Net deferred tax assets (liability) $ 185,311 $ (15,114 ) |
Summary of Changes in Deferred Tax Asset Valuation Allowance | The following table summarizes the change in the deferred tax asset valuation allowance: Valuation allowance at December 31, 2013 $ 493 Increase related to net operating losses and loan loss reserves 3,126 Valuation allowance at December 31, 2014 $ 3,619 Increase related to net operating losses and loan loss reserves 6,680 Other increase (decrease) (890 ) Valuation allowance at December 31, 2015 $ 9,409 |
Schedule of the Reconciliation of Unrecognized Tax Benefits | A reconciliation of the unrecognized tax benefits is as follows: Balance at December 31, 2013 $ — Additions for tax positions of the 2013 tax year 2,258 Balance at December 31, 2014 2,258 Additions for tax positions of current year — Other additions (reductions) (2,258 ) Balance at December 31, 2015 $ — |
Schedule of Taxable Common Stock Distributions | Common stock distributions were taxable as follows: Year Dividends per Share Ordinary Income Long-term Capital Gain Return of Capital 2015 $ 1.75 92.92 % 7.08 % — 2014 $ 1.58 84.78 % 15.22 % — 2013 $ 0.99 90.01 % 9.99 % — |
SUMMARY OF QUARTERLY CONSOLID44
SUMMARY OF QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Unaudited Summary Information | The following is an unaudited summary information on New Residential’s quarterly operations. 2015 Quarter Ended Year Ended December 31 March 31 June 30 September 30 December 31 Interest income $ 84,373 $ 178,177 $ 182,341 $ 200,181 $ 645,072 Interest expense 33,979 81,871 77,558 80,605 274,013 Net interest income 50,394 96,306 104,783 119,576 371,059 Impairment Other-than-temporary impairment (OTTI) on securities 1,071 649 1,574 2,494 5,788 Valuation allowance on loans and real estate owned 977 4,772 (3,341 ) 16,188 18,596 2,048 5,421 (1,767 ) 18,682 24,384 Net interest income after impairment 48,346 90,885 106,550 100,894 346,675 Other income (A) 12,295 37,650 (17,825 ) 9,909 42,029 Operating Expenses 22,270 34,952 32,902 27,699 117,823 Income Before Income Taxes 38,371 93,583 55,823 83,104 270,881 Income tax expense (benefit) (3,427 ) 14,306 (5,932 ) (15,948 ) (11,001 ) Net Income $ 41,798 $ 79,277 $ 61,755 $ 99,052 $ 281,882 Noncontrolling Interests in Income of Consolidated Subsidiaries $ 5,823 $ 4,158 $ 7,193 $ (3,928 ) $ 13,246 Net Income Attributable to Common Stockholders $ 35,975 $ 75,119 $ 54,562 $ 102,980 $ 268,636 Net Income Per Share of Common Stock Basic $ 0.25 $ 0.37 $ 0.24 $ 0.45 $ 1.34 Diluted $ 0.25 $ 0.37 $ 0.24 $ 0.45 $ 1.32 Weighted Average Number of Shares of Common Stock Outstanding Basic 141,434,905 200,910,040 230,455,568 230,459,000 200,739,809 Diluted 144,911,309 205,169,099 231,215,235 230,698,961 202,907,605 Dividends Declared per Share of Common Stock $ 0.38 $ 0.45 $ 0.46 $ 0.46 $ 1.75 2014 Quarter Ended Year Ended December 31 March 31 June 30 September 30 December 31 Interest income $ 71,490 $ 92,656 $ 97,587 $ 85,124 $ 346,857 Interest expense 38,997 36,512 33,307 31,892 140,708 Net interest income 32,493 56,144 64,280 53,232 206,149 Impairment Other-than-temporary impairment (OTTI) on securities 328 615 — 448 1,391 Valuation allowance on loans and real estate owned 164 293 1,134 8,300 9,891 492 908 1,134 8,748 11,282 Net interest income after impairment 32,001 55,236 63,146 44,484 194,867 Other income (A) 35,050 177,889 122,064 40,085 375,088 Operating Expenses 9,899 29,522 25,311 40,167 104,899 Income Before Income Taxes 57,152 203,603 159,899 44,402 465,056 Income tax expense (benefit) 287 21,395 7,801 (6,526 ) 22,957 Net Income $ 56,865 $ 182,208 $ 152,098 $ 50,928 $ 442,099 Noncontrolling Interests in Income (Loss) of Consolidated Subsidiaries $ 8,093 $ 58,705 $ 25,726 $ (3,302 ) $ 89,222 Net Income Attributable to Common Stockholders $ 48,772 $ 123,503 $ 126,372 $ 54,230 $ 352,877 Net Income Per Share of Common Stock Basic $ 0.39 $ 0.91 $ 0.89 $ 0.38 $ 2.59 Diluted $ 0.38 $ 0.88 $ 0.88 $ 0.38 $ 2.53 Weighted Average Number of Shares of Common Stock Outstanding Basic 126,604,510 136,465,454 141,211,580 141,395,307 136,472,865 Diluted 129,919,967 139,668,128 144,166,601 144,294,088 139,565,709 Dividends Declared per Share of Common Stock $ 0.35 $ 0.50 $ 0.35 $ 0.38 $ 1.58 (A) Earnings from investments in equity method investees is included in other income. |
ORGANIZATION - Narrative (Detai
ORGANIZATION - Narrative (Details) | Oct. 23, 2015USD ($) | Apr. 06, 2015USD ($)$ / shares$ / rightshares | Oct. 17, 2014shares | Oct. 31, 2014 | Dec. 31, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($)$ / sharesshares | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)shares | Apr. 08, 2015USD ($) | May. 14, 2013shares | May. 06, 2013shares | ||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Common stock, shares outstanding (in shares) | shares | 141,400,000 | 230,471,202 | 141,434,905 | 230,471,202 | 230,471,202 | 141,434,905 | 126,512,823 | ||||||||||||||
Stock options outstanding (in shares) | shares | 12,380,107 | 10,737,093 | 12,380,107 | 12,380,107 | 10,737,093 | 10,365,229 | 0 | ||||||||||||||
Reverse stock split | 0.5 | 0.5 | |||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||
Amount retained | $ 94,702,000 | $ 29,418,000 | $ 94,702,000 | $ 94,702,000 | $ 29,418,000 | ||||||||||||||||
Compensation expense | 450,000 | 453,000 | $ 78,000 | ||||||||||||||||||
Interest income | 119,576,000 | $ 104,783,000 | $ 96,306,000 | $ 50,394,000 | 53,232,000 | $ 64,280,000 | $ 56,144,000 | $ 32,493,000 | 371,059,000 | 206,149,000 | 72,543,000 | ||||||||||
Income before income taxes | 83,104,000 | $ 55,823,000 | $ 93,583,000 | 38,371,000 | 44,402,000 | $ 159,899,000 | $ 203,603,000 | $ 57,152,000 | 270,881,000 | 465,056,000 | $ 265,623,000 | ||||||||||
Servicer advances, at fair value | [1] | 7,426,794,000 | $ 3,270,839,000 | 7,426,794,000 | 7,426,794,000 | $ 3,270,839,000 | |||||||||||||||
HLSS [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Interest income | 282,300,000 | ||||||||||||||||||||
Income before income taxes | 131,500,000 | ||||||||||||||||||||
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 | ||||||||||||||||||||
Non-cash contingent consideration | $ 50,000,000 | $ 50,000,000 | [2] | ||||||||||||||||||
Fair value of stock issued | [3] | 434,092,000 | |||||||||||||||||||
Cash consideration | 621,982,000 | ||||||||||||||||||||
HLSS Seller Financing | [4] | 385,174,000 | |||||||||||||||||||
Goodwill | 0 | ||||||||||||||||||||
Debt issuance costs | 27,000,000 | ||||||||||||||||||||
Acquisition related costs incurred | $ 26,100,000 | ||||||||||||||||||||
HLSS [Member] | Minimum [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Non-cash contingent consideration | 0 | ||||||||||||||||||||
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% | ||||||||||||||||||||
Fee arrangement, term | 8 years | ||||||||||||||||||||
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] | Ocwen [Member] | Other Income [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Purchase agreement contract clause accrual | $ 14,500,000 | $ 14,500,000 | $ 14,500,000 | ||||||||||||||||||
HLSS [Member] | Ocwen [Member] | Minimum [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Contractual term | 6 years | ||||||||||||||||||||
HLSS [Member] | Retention Bonus Payments [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Compensation expense | 3,200,000 | ||||||||||||||||||||
HLSS [Member] | Employee Severance Payments [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Compensation expense | $ 2,800,000 | ||||||||||||||||||||
HLSS [Member] | HLSS [Member] | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||||||||||||||
Amount retained | $ 45,100,000 | $ 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% | ||||||||||||||||||||
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] | New Residential’s Consolidated Balance Sheets include the assets and liabilities of a consolidated VIE, the Buyer (Note 6), which primarily holds investments in servicer advances financed with notes payable. The Buyer’s balance sheet is included in Note 6. The creditors of the Buyer do not have recourse to the general credit of New Residential and the assets of the Buyer are not directly available to satisfy New Residential’s obligations. | ||||||||||||||||||||
[2] | HLSS New Merger PaymentThe HLSS 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 was from $0.0 million to $50.0 million, dependent on whether the HLSS New Merger was approved by HLSS shareholders and other factors. As of the HLSS New Merger Effective Time, the net contingent consideration paid was fixed at $5.1 million. | ||||||||||||||||||||
[3] | 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. | ||||||||||||||||||||
[4] | HLSS Seller FinancingNew Residential agreed to deliver $1.0 billion of cash purchase price, including a promise to pay an amount of $385.2 million immediately after closing from the proceeds of financing that was committed in anticipation of the HLSS Acquisition and is collateralized by certain of the HLSS assets acquired. |
ORGANIZATION - Summary of Total
ORGANIZATION - Summary of Total Consideration (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 23, 2015 | Apr. 06, 2015 | Dec. 31, 2015 | ||
Business Combination, Separately Recognized Transactions [Line Items] | |||||
New Residential's 4/6/2015 share price (in dollars per share) | $ 12.16 | ||||
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 | |||
HLSS New Merger Payment (71,016,771 @ $0.704059) | $ 50,000 | 50,000 | [3] | ||
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] | HLSS New Merger PaymentThe HLSS 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 was from $0.0 million to $50.0 million, dependent on whether the HLSS New Merger was approved by HLSS shareholders and other factors. As of the HLSS New Merger Effective Time, the net contingent consideration paid was fixed at $5.1 million. |
ORGANIZATION - Summary of Tot47
ORGANIZATION - Summary of Total Consideration (Parenthetical) (Details) - HLSS [Member] | Apr. 06, 2015right$ / right |
Business Acquisition [Line Items] | |
Number of rights exercisable | right | 71,016,771 |
Exercisable rights, per right amount in cash (in dollars per share) | $ / right | 0.704059 |
ORGANIZATION - Summary of Tot48
ORGANIZATION - Summary of Total Consideration (Footnote) (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 23, 2015 | Apr. 06, 2015 | Dec. 31, 2015 | 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) | $ 12.16 | |||||
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 | $ 50,000 | 50,000 | [2] | |||
Contingent consideration paid | $ 5,100 | |||||
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] | HLSS New Merger PaymentThe HLSS 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 was from $0.0 million to $50.0 million, dependent on whether the HLSS New Merger was approved by HLSS shareholders and other factors. As of the HLSS New Merger Effective Time, the net contingent consideration paid was fixed at $5.1 million. |
ORGANIZATION - Summary of Preli
ORGANIZATION - Summary of Preliminary Allocation of Total Consideration (Details) - HLSS [Member] $ in Thousands | Apr. 06, 2015USD ($) | |
Business Acquisition [Line Items] | ||
Total Consideration | $ 1,491,248 | |
Assets | ||
Cash and cash equivalents | 51,400 | |
Servicer advances, at fair value | 5,096,700 | |
Excess mortgage servicing rights, at fair value | 917,100 | |
Residential mortgage loans, held-for-sale | 416,800 | [1] |
Deferred tax asset | 195,100 | [2] |
Investment in HLSS Ltd. | 44,900 | |
Other assets | 402,400 | [3] |
Total Assets Acquired | 7,124,400 | |
Liabilities | ||
Notes payable | 5,580,300 | |
Accrued expenses and other liabilities | 52,900 | [4],[5] |
Total Liabilities Assumed | 5,633,200 | |
Net Assets | $ 1,491,200 | |
[1] | Represents $424.3 million unpaid principal balance (“UPB”) of Government National Mortgage Association (“Ginnie Mae”) early buy-out (“EBO”) residential mortgage loans not subject to Accounting Standards Codification (“ASC”) No. 310-30 as the contractual cash flows are guaranteed by the Federal Housing Administration (“FHA”). | |
[2] | Due primarily 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 had not been recognized at the acquisition date as the criteria in ASC No. 450 had not been met (Note 14). | |
[5] | Includes liabilities arising from contingencies regarding ongoing HLSS matters (Note 14). |
ORGANIZATION - Summary of Pre50
ORGANIZATION - Summary of Preliminary Allocation of Total Consideration (Footnote) (Details) $ in Millions | Apr. 06, 2015USD ($)subsidiary |
HLSS [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Number first tier subsidiaries | subsidiary | 1 |
Non-Performing Loans [Member] | Residential Mortgage Loans [Member] | GNMA EBO [Member] | |
Financing Receivable, Recorded Investment [Line Items] | |
Unpaid Principal Balance | $ | $ 424.3 |
ORGANIZATION - Summary of Unaud
ORGANIZATION - Summary of Unaudited Pro Forma Combined Interest Income and Income Before Income Taxes (Details) - HLSS [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Interest income | $ 731,660 | $ 744,363 |
Income Before Income Taxes | $ 322,365 | $ 647,058 |
SUMMARY OF SIGNIFICANT ACCOUN52
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | Oct. 17, 2014 | Oct. 31, 2014 | Dec. 31, 2015USD ($)risk | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | May. 15, 2013 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Management fee rate payable | 1.50% | |||||
Reverse stock split | 0.5 | 0.5 | ||||
Number of significant types of economic risk | risk | 2 | |||||
Monthly payment threshold period to determine whether loan is past due | 30 days | |||||
Principal or interest past due threshold period | 120 days | |||||
Restricted cash | $ 94,702,000 | $ 29,418,000 | ||||
General maturity term of repurchase agreements and notes payable | 1 year | |||||
Secured Corporate Note [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Restricted cash | $ 900,000 | |||||
Servicer Advances [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Restricted cash | 93,800,000 | 29,400,000 | ||||
FHLBC Stock [Member] | Other Assets [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Cost method investment | $ (2,800) | |||||
Restatement Adjustment [Member] | Cash Flow Reclassification, Investing to Operating [Member] | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Gross cash inflows | 1,300,000,000 | $ 0 | ||||
Gross cash outflows | $ 1,600,000,000 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accretion and Other Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Accretion of discount and other amortization: | ||||
Accretion of servicer advance interest income | $ 352,316 | $ 190,206 | $ 4,421 | |
Accretion of excess mortgage servicing rights income | 134,565 | 49,180 | 40,921 | |
Accretion of net discount on securities and loans | [1] | 65,925 | 47,793 | 14,676 |
Amortization of deferred financing costs | (26,036) | (8,771) | (768) | |
Amortization of discount on notes payable | (1,472) | 0 | 0 | |
Accretion and other amortization | $ 525,298 | $ 278,408 | $ 59,250 | |
[1] | Includes accretion of the accretable yield on PCD loans. |
SUMMARY OF SIGNIFICANT ACCOUN54
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Other Income (Loss), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other income (loss), net | |||
Unrealized gain (loss) on derivative instruments | $ (5,957) | $ (13,037) | $ 1,820 |
Unrealized gain (loss) on other ABS | 879 | 0 | 0 |
Gain (loss) on transfer of loans to REO | 2,065 | 17,489 | 0 |
Fee earned on deal termination | 0 | 5,000 | 0 |
Gain on Excess MSR recapture agreements | 2,999 | 1,157 | 0 |
Other income (loss) | 2,984 | 20 | 0 |
Total Other income (loss), net | $ 2,970 | $ 10,629 | $ 1,820 |
SUMMARY OF SIGNIFICANT ACCOUN55
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Gain (Loss) on Settlement of Investments, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Gain (loss) on sale of real estate securities, net | $ 13,096 | $ 65,701 | $ 52,657 |
Gain (loss) on sale of residential mortgage loans, net | 33,335 | 0 | 0 |
Gain (loss) on settlement of derivatives | (44,563) | (36,210) | 0 |
Gain (loss) on liquidated residential mortgage loans | (360) | 3,645 | 0 |
Gain (loss) on sale of REO | (10,742) | (3,686) | 0 |
Other gains (losses) | (7,973) | 6,037 | 0 |
Gain on settlement of investments | $ (17,207) | $ 35,487 | $ 52,657 |
SUMMARY OF SIGNIFICANT ACCOUN56
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Other Assets and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Assets | |||
Margin receivable, net | $ 54,459 | $ 59,021 | |
Other receivables | [1] | 10,893 | 1,797 |
Principal paydown receivable | 795 | 3,595 | |
Receivable from government agency | [2] | 68,833 | 9,108 |
Call rights | 414 | 3,728 | |
Interest receivable | 36,963 | 8,658 | |
Servicer advances, at fair value | [3] | 7,426,794 | 3,270,839 |
Other assets | [4] | 14,675 | 9,516 |
Other Assets | 236,757 | 95,423 | |
Accrued Expenses and Other Liabilities | |||
Interest payable | 18,268 | 7,857 | |
Accounts payable | 18,650 | 28,059 | |
Derivative liabilities | 13,443 | 14,220 | |
Current taxes payable | 1,573 | 2,349 | |
Other liabilities | 6,112 | 20 | |
Accrued Expenses and Other Liabilities | 58,046 | 52,505 | |
Ginnie Mae EBO [Member] | |||
Other Assets | |||
Servicer advances, at fair value | [5] | $ 49,725 | $ 0 |
[1] | Primarily includes a receivable from Ocwen related to their servicer rating downgrade, claims receivable related to reverse mortgage loans and receivables related to residual securities owned. | ||
[2] | 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. | ||
[3] | New Residential’s Consolidated Balance Sheets include the assets and liabilities of a consolidated VIE, the Buyer (Note 6), which primarily holds investments in servicer advances financed with notes payable. The Buyer’s balance sheet is included in Note 6. The creditors of the Buyer do not have recourse to the general credit of New Residential and the assets of the Buyer are not directly available to satisfy New Residential’s obligations. | ||
[4] | Primarily includes prepaid taxes and other prepaid expenses. | ||
[5] | Represents an HLSS loan to a counterparty collateralized by servicer advances on Ginnie Mae EBO loans. |
SEGMENT REPORTING - Summary of
SEGMENT REPORTING - Summary of Segment Financial Data (Details) - USD ($) | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | May. 15, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Interest income | $ 200,181,000 | $ 182,341,000 | $ 178,177,000 | $ 84,373,000 | $ 85,124,000 | $ 97,587,000 | $ 92,656,000 | $ 71,490,000 | $ 645,072,000 | $ 346,857,000 | $ 87,567,000 | |||||||||||||
Interest expense | 80,605,000 | 77,558,000 | 81,871,000 | 33,979,000 | 31,892,000 | 33,307,000 | 36,512,000 | 38,997,000 | 274,013,000 | 140,708,000 | 15,024,000 | |||||||||||||
Net interest income (expense) | 119,576,000 | 104,783,000 | 96,306,000 | 50,394,000 | 53,232,000 | 64,280,000 | 56,144,000 | 32,493,000 | 371,059,000 | 206,149,000 | 72,543,000 | |||||||||||||
Impairment | 18,682,000 | (1,767,000) | 5,421,000 | 2,048,000 | 8,748,000 | 1,134,000 | 908,000 | 492,000 | 24,384,000 | 11,282,000 | 5,454,000 | |||||||||||||
Other income | 9,909,000 | [1] | (17,825,000) | [1] | 37,650,000 | [1] | 12,295,000 | [1] | 40,085,000 | [1] | 122,064,000 | [1] | 177,889,000 | [1] | 35,050,000 | [1] | 42,029,000 | [1] | 375,088,000 | [1] | 241,008,000 | |||
Operating expenses | 27,699,000 | 32,902,000 | 34,952,000 | 22,270,000 | 40,167,000 | 25,311,000 | 29,522,000 | 9,899,000 | 117,823,000 | 104,899,000 | 42,474,000 | |||||||||||||
Income (Loss) Before Income Taxes | 83,104,000 | 55,823,000 | 93,583,000 | 38,371,000 | 44,402,000 | 159,899,000 | 203,603,000 | 57,152,000 | 270,881,000 | 465,056,000 | 265,623,000 | |||||||||||||
Income tax expense (benefit) | (15,948,000) | (5,932,000) | 14,306,000 | (3,427,000) | (6,526,000) | 7,801,000 | 21,395,000 | 287,000 | $ 0 | (11,001,000) | 22,957,000 | 0 | ||||||||||||
Net Income (Loss) | 99,052,000 | 61,755,000 | 79,277,000 | 41,798,000 | 50,928,000 | 152,098,000 | 182,208,000 | 56,865,000 | 281,882,000 | 442,099,000 | 265,623,000 | |||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | (3,928,000) | 7,193,000 | 4,158,000 | 5,823,000 | (3,302,000) | 25,726,000 | 58,705,000 | 8,093,000 | 13,246,000 | 89,222,000 | (326,000) | |||||||||||||
Net income (loss) attributable to common stockholders | 102,980,000 | $ 54,562,000 | $ 75,119,000 | $ 35,975,000 | 54,230,000 | $ 126,372,000 | $ 123,503,000 | $ 48,772,000 | 268,636,000 | 352,877,000 | 265,949,000 | |||||||||||||
Investments | 12,884,846,000 | 7,718,821,000 | 12,884,846,000 | 7,718,821,000 | ||||||||||||||||||||
Cash and cash equivalents | 249,936,000 | 212,985,000 | 249,936,000 | 212,985,000 | ||||||||||||||||||||
Restricted cash | 94,702,000 | 29,418,000 | 94,702,000 | 29,418,000 | ||||||||||||||||||||
Derivative assets | 2,689,000 | 32,597,000 | 2,689,000 | 32,597,000 | ||||||||||||||||||||
Other assets | 1,960,549,000 | 95,423,000 | 1,960,549,000 | 95,423,000 | ||||||||||||||||||||
Total assets | 15,192,722,000 | 8,089,244,000 | 15,192,722,000 | 8,089,244,000 | ||||||||||||||||||||
Debt | 11,292,622,000 | [2] | 6,057,853,000 | [2],[3] | 11,292,622,000 | [2] | 6,057,853,000 | [2],[3] | 4,109,329,000 | [3] | ||||||||||||||
Other liabilities | 913,520,000 | 181,466,000 | 913,520,000 | 181,466,000 | ||||||||||||||||||||
Total liabilities | 12,206,142,000 | 6,239,319,000 | 12,206,142,000 | 6,239,319,000 | ||||||||||||||||||||
Total Equity | 2,986,580,000 | 1,849,925,000 | 2,986,580,000 | 1,849,925,000 | 1,513,075,000 | $ 378,356,000 | ||||||||||||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 190,647,000 | 253,836,000 | 190,647,000 | 253,836,000 | ||||||||||||||||||||
Total New Residential stockholders’ equity | 2,795,933,000 | 1,596,089,000 | 2,795,933,000 | 1,596,089,000 | ||||||||||||||||||||
Investments in equity method investees | 217,221,000 | 330,876,000 | 217,221,000 | 330,876,000 | ||||||||||||||||||||
Operating Segments [Member] | Excess MSRs [Member] | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Interest income | 134,565,000 | 49,180,000 | 40,921,000 | |||||||||||||||||||||
Interest expense | 11,625,000 | 1,294,000 | 0 | |||||||||||||||||||||
Net interest income (expense) | 122,940,000 | 47,886,000 | 40,921,000 | |||||||||||||||||||||
Impairment | 0 | 0 | 0 | |||||||||||||||||||||
Other income | 72,802,000 | 100,052,000 | 103,675,000 | |||||||||||||||||||||
Operating expenses | 1,101,000 | 713,000 | 215,000 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | 194,641,000 | 147,225,000 | 144,381,000 | |||||||||||||||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||||||||||||||
Net Income (Loss) | 194,641,000 | 147,225,000 | 144,381,000 | |||||||||||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | |||||||||||||||||||||
Net income (loss) attributable to common stockholders | 194,641,000 | 147,225,000 | 144,381,000 | |||||||||||||||||||||
Investments | 1,798,738,000 | 748,609,000 | 1,798,738,000 | 748,609,000 | ||||||||||||||||||||
Cash and cash equivalents | 18,507,000 | 0 | 18,507,000 | 0 | ||||||||||||||||||||
Restricted cash | 878,000 | 0 | 878,000 | 0 | ||||||||||||||||||||
Derivative assets | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Other assets | 34,000 | 0 | 34,000 | 0 | ||||||||||||||||||||
Total assets | 1,818,157,000 | 748,609,000 | 1,818,157,000 | 748,609,000 | ||||||||||||||||||||
Debt | 182,978,000 | 0 | 182,978,000 | 0 | ||||||||||||||||||||
Other liabilities | 2,277,000 | 215,000 | 2,277,000 | 215,000 | ||||||||||||||||||||
Total liabilities | 185,255,000 | 215,000 | 185,255,000 | 215,000 | ||||||||||||||||||||
Total Equity | 1,632,902,000 | 748,394,000 | 1,632,902,000 | 748,394,000 | ||||||||||||||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Total New Residential stockholders’ equity | 1,632,902,000 | 748,394,000 | 1,632,902,000 | 748,394,000 | ||||||||||||||||||||
Investments in equity method investees | 217,221,000 | 330,876,000 | 217,221,000 | 330,876,000 | ||||||||||||||||||||
Operating Segments [Member] | Servicer Advances [Member] | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Interest income | 354,616,000 | 190,206,000 | 4,421,000 | |||||||||||||||||||||
Interest expense | 216,837,000 | 110,968,000 | 3,901,000 | |||||||||||||||||||||
Net interest income (expense) | 137,779,000 | 79,238,000 | 520,000 | |||||||||||||||||||||
Impairment | 0 | 0 | 0 | |||||||||||||||||||||
Other income | (53,426,000) | 83,828,000 | 0 | |||||||||||||||||||||
Operating expenses | 14,316,000 | 2,183,000 | 2,077,000 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | 70,037,000 | 160,883,000 | (1,557,000) | |||||||||||||||||||||
Income tax expense (benefit) | (8,127,000) | 20,806,000 | 0 | |||||||||||||||||||||
Net Income (Loss) | 78,164,000 | 140,077,000 | (1,557,000) | |||||||||||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 18,407,000 | 89,222,000 | (326,000) | |||||||||||||||||||||
Net income (loss) attributable to common stockholders | 59,757,000 | 50,855,000 | (1,231,000) | |||||||||||||||||||||
Investments | 7,857,841,000 | 3,270,839,000 | 7,857,841,000 | 3,270,839,000 | ||||||||||||||||||||
Cash and cash equivalents | 95,686,000 | 59,383,000 | 95,686,000 | 59,383,000 | ||||||||||||||||||||
Restricted cash | 93,824,000 | 29,418,000 | 93,824,000 | 29,418,000 | ||||||||||||||||||||
Derivative assets | 2,689,000 | 194,000 | 2,689,000 | 194,000 | ||||||||||||||||||||
Other assets | 198,962,000 | 10,206,000 | 198,962,000 | 10,206,000 | ||||||||||||||||||||
Total assets | 8,249,002,000 | 3,370,040,000 | 8,249,002,000 | 3,370,040,000 | ||||||||||||||||||||
Debt | 7,550,680,000 | 2,885,784,000 | 7,550,680,000 | 2,885,784,000 | ||||||||||||||||||||
Other liabilities | 18,153,000 | 25,467,000 | 18,153,000 | 25,467,000 | ||||||||||||||||||||
Total liabilities | 7,568,833,000 | 2,911,251,000 | 7,568,833,000 | 2,911,251,000 | ||||||||||||||||||||
Total Equity | 680,169,000 | 458,789,000 | 680,169,000 | 458,789,000 | ||||||||||||||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 190,647,000 | 253,836,000 | 190,647,000 | 253,836,000 | ||||||||||||||||||||
Total New Residential stockholders’ equity | 489,522,000 | 204,953,000 | 489,522,000 | 204,953,000 | ||||||||||||||||||||
Investments in equity method investees | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Operating Segments [Member] | Real Estate Securities [Member] | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Interest income | 110,123,000 | 60,208,000 | 39,533,000 | |||||||||||||||||||||
Interest expense | 18,230,000 | 12,689,000 | 10,876,000 | |||||||||||||||||||||
Net interest income (expense) | 91,893,000 | 47,519,000 | 28,657,000 | |||||||||||||||||||||
Impairment | 5,788,000 | 1,391,000 | 4,993,000 | |||||||||||||||||||||
Other income | (33,604,000) | 14,589,000 | 52,645,000 | |||||||||||||||||||||
Operating expenses | 1,227,000 | 10,012,000 | 312,000 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | 51,274,000 | 50,705,000 | 75,997,000 | |||||||||||||||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||||||||||||||
Net Income (Loss) | 51,274,000 | 50,705,000 | 75,997,000 | |||||||||||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | |||||||||||||||||||||
Net income (loss) attributable to common stockholders | 51,274,000 | 50,705,000 | 75,997,000 | |||||||||||||||||||||
Investments | 2,070,834,000 | 2,463,163,000 | 2,070,834,000 | 2,463,163,000 | ||||||||||||||||||||
Cash and cash equivalents | 42,984,000 | 43,728,000 | 42,984,000 | 43,728,000 | ||||||||||||||||||||
Restricted cash | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Derivative assets | 0 | 32,091,000 | 0 | 32,091,000 | ||||||||||||||||||||
Other assets | 1,600,091,000 | 69,980,000 | 1,600,091,000 | 69,980,000 | ||||||||||||||||||||
Total assets | 3,713,909,000 | 2,608,962,000 | 3,713,909,000 | 2,608,962,000 | ||||||||||||||||||||
Debt | 2,513,538,000 | 2,246,651,000 | 2,513,538,000 | 2,246,651,000 | ||||||||||||||||||||
Other liabilities | 740,392,000 | 17,511,000 | 740,392,000 | 17,511,000 | ||||||||||||||||||||
Total liabilities | 3,253,930,000 | 2,264,162,000 | 3,253,930,000 | 2,264,162,000 | ||||||||||||||||||||
Total Equity | 459,979,000 | 344,800,000 | 459,979,000 | 344,800,000 | ||||||||||||||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Total New Residential stockholders’ equity | 459,979,000 | 344,800,000 | 459,979,000 | 344,800,000 | ||||||||||||||||||||
Investments in equity method investees | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Operating Segments [Member] | Real Estate Loans [Member] | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Interest income | 43,180,000 | 47,262,000 | 2,650,000 | |||||||||||||||||||||
Interest expense | 21,510,000 | 11,073,000 | 0 | |||||||||||||||||||||
Net interest income (expense) | 21,670,000 | 36,189,000 | 2,650,000 | |||||||||||||||||||||
Impairment | 18,596,000 | 9,891,000 | 461,000 | |||||||||||||||||||||
Other income | 15,405,000 | 30,759,000 | 1,832,000 | |||||||||||||||||||||
Operating expenses | 13,415,000 | 12,688,000 | 357,000 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | 5,064,000 | 44,369,000 | 3,664,000 | |||||||||||||||||||||
Income tax expense (benefit) | (3,199,000) | 2,059,000 | 0 | |||||||||||||||||||||
Net Income (Loss) | 8,263,000 | 42,310,000 | 3,664,000 | |||||||||||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | |||||||||||||||||||||
Net income (loss) attributable to common stockholders | 8,263,000 | 42,310,000 | 3,664,000 | |||||||||||||||||||||
Investments | 1,157,433,000 | 1,236,210,000 | 1,157,433,000 | 1,236,210,000 | ||||||||||||||||||||
Cash and cash equivalents | 13,262,000 | 7,757,000 | 13,262,000 | 7,757,000 | ||||||||||||||||||||
Restricted cash | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Derivative assets | 0 | 312,000 | 0 | 312,000 | ||||||||||||||||||||
Other assets | 106,330,000 | 14,159,000 | 106,330,000 | 14,159,000 | ||||||||||||||||||||
Total assets | 1,277,025,000 | 1,258,438,000 | 1,277,025,000 | 1,258,438,000 | ||||||||||||||||||||
Debt | 1,004,980,000 | 925,418,000 | 1,004,980,000 | 925,418,000 | ||||||||||||||||||||
Other liabilities | 14,382,000 | 24,141,000 | 14,382,000 | 24,141,000 | ||||||||||||||||||||
Total liabilities | 1,019,362,000 | 949,559,000 | 1,019,362,000 | 949,559,000 | ||||||||||||||||||||
Total Equity | 257,663,000 | 308,879,000 | 257,663,000 | 308,879,000 | ||||||||||||||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Total New Residential stockholders’ equity | 257,663,000 | 308,879,000 | 257,663,000 | 308,879,000 | ||||||||||||||||||||
Investments in equity method investees | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Operating Segments [Member] | Consumer Loans [Member] | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Interest income | 1,000 | 0 | 0 | |||||||||||||||||||||
Interest expense | 1,615,000 | 4,184,000 | 0 | |||||||||||||||||||||
Net interest income (expense) | (1,614,000) | (4,184,000) | 0 | |||||||||||||||||||||
Impairment | 0 | 0 | 0 | |||||||||||||||||||||
Other income | 43,954,000 | 145,860,000 | 82,856,000 | |||||||||||||||||||||
Operating expenses | 228,000 | 917,000 | 2,076,000 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | 42,112,000 | 140,759,000 | 80,780,000 | |||||||||||||||||||||
Income tax expense (benefit) | 325,000 | 92,000 | 0 | |||||||||||||||||||||
Net Income (Loss) | 41,787,000 | 140,667,000 | 80,780,000 | |||||||||||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 0 | 0 | 0 | |||||||||||||||||||||
Net income (loss) attributable to common stockholders | 41,787,000 | 140,667,000 | 80,780,000 | |||||||||||||||||||||
Investments | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Cash and cash equivalents | 6,359,000 | 0 | 6,359,000 | 0 | ||||||||||||||||||||
Restricted cash | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Derivative assets | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Other assets | 1,767,000 | 609,000 | 1,767,000 | 609,000 | ||||||||||||||||||||
Total assets | 8,126,000 | 609,000 | 8,126,000 | 609,000 | ||||||||||||||||||||
Debt | 40,446,000 | 0 | 40,446,000 | 0 | ||||||||||||||||||||
Other liabilities | 459,000 | 195,000 | 459,000 | 195,000 | ||||||||||||||||||||
Total liabilities | 40,905,000 | 195,000 | 40,905,000 | 195,000 | ||||||||||||||||||||
Total Equity | (32,779,000) | 414,000 | (32,779,000) | 414,000 | ||||||||||||||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Total New Residential stockholders’ equity | (32,779,000) | 414,000 | (32,779,000) | 414,000 | ||||||||||||||||||||
Investments in equity method investees | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Operating Segments [Member] | Corporate [Member] | ||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||
Interest income | 2,587,000 | 1,000 | 42,000 | |||||||||||||||||||||
Interest expense | 4,196,000 | 500,000 | 247,000 | |||||||||||||||||||||
Net interest income (expense) | (1,609,000) | (499,000) | (205,000) | |||||||||||||||||||||
Impairment | 0 | 0 | 0 | |||||||||||||||||||||
Other income | (3,102,000) | 0 | 0 | |||||||||||||||||||||
Operating expenses | 87,536,000 | 78,386,000 | 37,437,000 | |||||||||||||||||||||
Income (Loss) Before Income Taxes | (92,247,000) | (78,885,000) | (37,642,000) | |||||||||||||||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||||||||||||||
Net Income (Loss) | (92,247,000) | (78,885,000) | (37,642,000) | |||||||||||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | (5,161,000) | 0 | 0 | |||||||||||||||||||||
Net income (loss) attributable to common stockholders | (87,086,000) | (78,885,000) | $ (37,642,000) | |||||||||||||||||||||
Investments | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Cash and cash equivalents | 73,138,000 | 102,117,000 | 73,138,000 | 102,117,000 | ||||||||||||||||||||
Restricted cash | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Derivative assets | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Other assets | 53,365,000 | 469,000 | 53,365,000 | 469,000 | ||||||||||||||||||||
Total assets | 126,503,000 | 102,586,000 | 126,503,000 | 102,586,000 | ||||||||||||||||||||
Debt | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Other liabilities | 137,857,000 | 113,937,000 | 137,857,000 | 113,937,000 | ||||||||||||||||||||
Total liabilities | 137,857,000 | 113,937,000 | 137,857,000 | 113,937,000 | ||||||||||||||||||||
Total Equity | (11,354,000) | (11,351,000) | (11,354,000) | (11,351,000) | ||||||||||||||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||||||||||||||||||
Total New Residential stockholders’ equity | (11,354,000) | (11,351,000) | (11,354,000) | (11,351,000) | ||||||||||||||||||||
Investments in equity method investees | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||||||||||
[1] | Earnings from investments in equity method investees is included in other income. | |||||||||||||||||||||||
[2] | Net of deferred financing costs associated with the adoption of ASU No. 2015-03 (Note 2). | |||||||||||||||||||||||
[3] | Excludes debt related to linked transactions (Note 10). |
INVESTMENTS IN EXCESS MORTGAG58
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Activity Related to the Carrying Value of Investments in Excess MSRs (Details) - Excess MSRs [Member] - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | ||||
Carrying Value of Investments in Excess MSRs | |||||
Beginning balance | $ 417,733 | [1],[2] | $ 324,151 | ||
Transfers from indirect ownership | 98,258 | ||||
Purchases | 1,171,227 | 94,113 | |||
Interest income | 134,565 | 49,180 | |||
Other income | 2,999 | 1,157 | |||
Proceeds from repayments | (281,908) | (92,483) | |||
Change in fair value | 38,643 | [3],[4] | 41,615 | ||
Ending balance | [1] | 1,581,517 | 417,733 | [2] | |
Nationstar [Member] | |||||
Carrying Value of Investments in Excess MSRs | |||||
Beginning balance | 409,076 | 324,151 | |||
Transfers from indirect ownership | 98,258 | ||||
Purchases | 254,149 | 85,735 | |||
Interest income | 66,039 | 49,143 | |||
Other income | 2,999 | 1,157 | |||
Proceeds from repayments | (131,621) | (92,483) | |||
Change in fair value | (596) | [3],[4] | 41,373 | ||
Ending balance | 698,304 | 409,076 | |||
SLS [Member] | |||||
Carrying Value of Investments in Excess MSRs | |||||
Beginning balance | [5] | 8,657 | 0 | ||
Transfers from indirect ownership | [5] | 0 | |||
Purchases | [5] | 0 | 8,378 | ||
Interest income | [5] | 180 | 37 | ||
Other income | [5] | 0 | 0 | ||
Proceeds from repayments | [5] | (1,291) | 0 | ||
Change in fair value | [5] | (2,239) | [3],[4] | 242 | |
Ending balance | [5] | 5,307 | 8,657 | ||
Ocwen [Member] | |||||
Carrying Value of Investments in Excess MSRs | |||||
Beginning balance | [6] | 0 | 0 | ||
Transfers from indirect ownership | [6] | 0 | |||
Purchases | [6] | 917,078 | 0 | ||
Interest income | [6] | 68,346 | 0 | ||
Other income | [6] | 0 | 0 | ||
Proceeds from repayments | [6] | (148,996) | 0 | ||
Change in fair value | [6] | 41,478 | [3],[4] | 0 | |
Ending balance | [6] | $ 877,906 | $ 0 | ||
[1] | Carrying Value represents the fair value of the pools or recapture agreements, as applicable. | ||||
[2] | Excess MSR investments in which New Residential also invested in related Servicer Advances, including the basic fee component of the related MSR, as of December 31, 2015 (Note 6). | ||||
[3] | In 2015, New Residential recorded a cumulative positive prior period adjustment of $4.2 million on its Excess MSR investments serviced by Nationstar resulting from adjustments to certain modeling assumptions. | ||||
[4] | In the fourth quarter of 2015, New Residential recorded a change in estimate in the calculation of fair value of $41.5 million on its Excess MSR investments serviced by Ocwen resulting from adjustments to certain modeling assumptions. | ||||
[5] | Specialized Loan Servicing LLC (“SLS”). See Note 6 for a description of the SLS Transaction. | ||||
[6] | Ocwen services the loans underlying the Excess MSRs and Servicer Advances acquired from HLSS (Note1). |
INVESTMENTS IN EXCESS MORTGAG59
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Schedule of Activity Related to the Carrying Value of Investments in Excess MSRs (Footnote) (Details) - Excess MSRs [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Servicing Assets at Fair Value [Line Items] | ||||
Change in fair value, prior period adjustment | $ 38,643 | [1],[2] | $ 41,615 | |
Prior Period Adjustment [Member] | Nationstar [Member] | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Change in fair value, prior period adjustment | $ 4,200 | |||
Fair Value Adjustment [Member] | Ocwen [Member] | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Change in fair value, prior period adjustment | $ 41,500 | |||
[1] | In 2015, New Residential recorded a cumulative positive prior period adjustment of $4.2 million on its Excess MSR investments serviced by Nationstar resulting from adjustments to certain modeling assumptions. | |||
[2] | In the fourth quarter of 2015, New Residential recorded a change in estimate in the calculation of fair value of $41.5 million on its Excess MSR investments serviced by Ocwen resulting from adjustments to certain modeling assumptions. |
INVESTMENTS IN EXCESS MORTGAG60
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Summary of Investments in Excess MSRs (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Investment [Line Items] | ||||||
Weighted Average Life (Years) | 11 months 14 days | |||||
Change in fair value of investments in excess mortgage servicing rights | $ 38,643 | $ 41,615 | $ 53,332 | |||
Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
Change in fair value of investments in excess mortgage servicing rights | 34,936 | 35,000 | 37,692 | |||
Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
Change in fair value of investments in excess mortgage servicing rights | 3,707 | 6,615 | 15,640 | |||
Excess MSRs [Member] | ||||||
Investment [Line Items] | ||||||
UPB of Underlying Mortgages | $ 329,367,971 | $ 102,481,758 | [1] | |||
Weighted Average Life (Years) | [2] | 6 years 2 months 12 days | 5 years 9 months 14 days | [1] | ||
Amortized Cost Basis | [3] | $ 1,433,354 | $ 313,396 | [1] | ||
Carrying Value | 1,581,517 | [4] | 417,733 | [1],[4] | 324,151 | |
Excess MSRs [Member] | Nationstar [Member] | ||||||
Investment [Line Items] | ||||||
Carrying Value | 698,304 | 409,076 | $ 324,151 | |||
Excess MSRs [Member] | Agency [Member] | ||||||
Investment [Line Items] | ||||||
UPB of Underlying Mortgages | $ 93,441,696 | $ 48,217,901 | ||||
Weighted Average Life (Years) | [2] | 6 years 4 months 24 days | 6 years 1 month 16 days | |||
Amortized Cost Basis | [3] | $ 372,105 | $ 149,342 | |||
Carrying Value | [4] | 437,201 | 217,519 | |||
Excess MSRs [Member] | Agency [Member] | Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
UPB of Underlying Mortgages | $ 93,441,696 | $ 48,217,901 | ||||
Weighted Average Life (Years) | [2] | 5 years 9 months 18 days | 5 years 8 months 25 days | |||
Amortized Cost Basis | [3] | $ 335,478 | $ 140,455 | |||
Carrying Value | [4] | $ 378,083 | $ 188,733 | |||
Excess MSRs [Member] | Agency [Member] | Original and Recaptured Pools [Member] | Lower Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 32.50% | 32.50% | ||||
Excess MSRs [Member] | Agency [Member] | Original and Recaptured Pools [Member] | Upper Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 66.70% | 66.70% | ||||
Excess MSRs [Member] | Agency [Member] | Original and Recaptured Pools [Member] | Fortress [Member] | Lower Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 0.00% | 0.00% | ||||
Excess MSRs [Member] | Agency [Member] | Original and Recaptured Pools [Member] | Fortress [Member] | Upper Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 40.00% | 33.30% | ||||
Excess MSRs [Member] | Agency [Member] | Original and Recaptured Pools [Member] | Nationstar [Member] | Lower Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 20.00% | 33.30% | ||||
Excess MSRs [Member] | Agency [Member] | Original and Recaptured Pools [Member] | Nationstar [Member] | Upper Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 35.00% | 35.00% | ||||
Excess MSRs [Member] | Agency [Member] | Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
UPB of Underlying Mortgages | $ 0 | $ 0 | ||||
Weighted Average Life (Years) | [2] | 12 years | 12 years 4 months 3 days | |||
Amortized Cost Basis | [3] | $ 36,627 | $ 8,887 | |||
Carrying Value | [4] | $ 59,118 | $ 28,786 | |||
Excess MSRs [Member] | Agency [Member] | Recapture Agreements [Member] | Lower Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 32.50% | 32.50% | ||||
Excess MSRs [Member] | Agency [Member] | Recapture Agreements [Member] | Upper Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 66.70% | 66.70% | ||||
Excess MSRs [Member] | Agency [Member] | Recapture Agreements [Member] | Fortress [Member] | Lower Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 0.00% | 0.00% | ||||
Excess MSRs [Member] | Agency [Member] | Recapture Agreements [Member] | Fortress [Member] | Upper Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 40.00% | 33.30% | ||||
Excess MSRs [Member] | Agency [Member] | Recapture Agreements [Member] | Nationstar [Member] | Lower Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 20.00% | 33.30% | ||||
Excess MSRs [Member] | Agency [Member] | Recapture Agreements [Member] | Nationstar [Member] | Upper Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 35.00% | 35.00% | ||||
Excess MSRs [Member] | Agency [Member] | Ocwen Serviced Pools [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 100.00% | |||||
Excess MSRs [Member] | Agency [Member] | Ocwen Serviced Pools [Member] | Fortress [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 0.00% | |||||
Excess MSRs [Member] | Agency [Member] | Ocwen Serviced Pools [Member] | Nationstar [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | 0.00% | |||||
Excess MSRs [Member] | Non-Agency [Member] | ||||||
Investment [Line Items] | ||||||
UPB of Underlying Mortgages | [1] | $ 235,926,275 | $ 54,263,857 | |||
Weighted Average Life (Years) | [1],[2] | 6 years 1 month 6 days | 5 years 5 months 23 days | |||
Amortized Cost Basis | [1],[3] | $ 1,061,249 | $ 164,054 | |||
Carrying Value | [1],[4] | 1,144,316 | 200,214 | |||
Excess MSRs [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | ||||||
Investment [Line Items] | ||||||
UPB of Underlying Mortgages | $ 94,923,975 | [1] | $ 54,263,857 | |||
Weighted Average Life (Years) | 5 years 2 months 12 days | [1],[2] | 5 years 1 day | |||
Amortized Cost Basis | $ 210,691 | [1],[3] | $ 152,763 | |||
Carrying Value | $ 250,662 | [1],[4] | $ 189,812 | |||
Excess MSRs [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | Lower Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [1] | 33.30% | 33.30% | |||
Excess MSRs [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | Upper Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [1] | 80.00% | 80.00% | |||
Excess MSRs [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | Fortress [Member] | Lower Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [1] | 0.00% | 0.00% | |||
Excess MSRs [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | Fortress [Member] | Upper Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [1] | 50.00% | 50.00% | |||
Excess MSRs [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | Nationstar [Member] | Lower Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [1] | 0.00% | 0.00% | |||
Excess MSRs [Member] | Non-Agency [Member] | Original and Recaptured Pools [Member] | Nationstar [Member] | Upper Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [1] | 33.30% | 33.30% | |||
Excess MSRs [Member] | Non-Agency [Member] | Recapture Agreements [Member] | ||||||
Investment [Line Items] | ||||||
UPB of Underlying Mortgages | [1] | $ 0 | $ 0 | |||
Weighted Average Life (Years) | [1],[2] | 12 years 3 months 18 days | 11 years 11 months 7 days | |||
Amortized Cost Basis | [1],[3] | $ 14,130 | $ 11,291 | |||
Carrying Value | [1],[4] | $ 15,748 | $ 10,402 | |||
Excess MSRs [Member] | Non-Agency [Member] | Recapture Agreements [Member] | Lower Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [1] | 33.30% | 33.30% | |||
Excess MSRs [Member] | Non-Agency [Member] | Recapture Agreements [Member] | Upper Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [1] | 80.00% | 80.00% | |||
Excess MSRs [Member] | Non-Agency [Member] | Recapture Agreements [Member] | Fortress [Member] | Lower Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [1] | 0.00% | 0.00% | |||
Excess MSRs [Member] | Non-Agency [Member] | Recapture Agreements [Member] | Fortress [Member] | Upper Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [1] | 50.00% | 50.00% | |||
Excess MSRs [Member] | Non-Agency [Member] | Recapture Agreements [Member] | Nationstar [Member] | Lower Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [1] | 0.00% | 0.00% | |||
Excess MSRs [Member] | Non-Agency [Member] | Recapture Agreements [Member] | Nationstar [Member] | Upper Range [Member] | ||||||
Investment [Line Items] | ||||||
Interest in Excess MSR | [1] | 33.30% | 33.30% | |||
Excess MSRs [Member] | Non-Agency [Member] | Ocwen Serviced Pools [Member] | ||||||
Investment [Line Items] | ||||||
UPB of Underlying Mortgages | [1] | $ 141,002,300 | ||||
Weighted Average Life (Years) | [1],[2] | 6 years 2 months 12 days | ||||
Amortized Cost Basis | [1],[3] | $ 836,428 | ||||
Carrying Value | [1],[4] | $ 877,906 | ||||
[1] | Excess MSR investments in which New Residential also invested in related Servicer Advances, including the basic fee component of the related MSR, as of December 31, 2015 (Note 6). | |||||
[2] | Weighted Average Life represents the weighted average expected timing of the receipt of expected cash flows for this investment. | |||||
[3] | 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. | |||||
[4] | Carrying Value represents the fair value of the pools or recapture agreements, as applicable. |
INVESTMENTS IN EXCESS MORTGAG61
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS - Narrative (Details) - MSRs [Member] - Excess MSRs Investees [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investment [Line Items] | ||
Weighted average discount rate, used to value investments in excess MSRs | 9.80% | 9.60% |
Ocwen [Member] | ||
Investment [Line Items] | ||
Proceeds from recapture agreement | $ 0 |
INVESTMENTS IN EXCESS MORTGAG62
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] | Dec. 31, 2015 | Dec. 31, 2014 |
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 100.00% | 100.00% |
California [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 26.70% | 31.50% |
Florida [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 8.90% | 7.70% |
New York [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 7.80% | 4.30% |
Texas [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.30% | 4.20% |
New Jersey [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.10% | 3.20% |
Maryland [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.80% | 4.00% |
Illinois [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.40% | 3.20% |
Virginia [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.10% | 3.30% |
Washington [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 2.70% | 3.60% |
Massachusetts [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 2.70% | 2.10% |
Other U.S. [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 32.50% | 32.90% |
INVESTMENTS IN EXCESS MORTGAG63
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Narrative (Details) - Excess MSRs Investees [Member] - Investment | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
MSRs [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of investments | 2 | ||
Weighted average discount rate, used to value investments in excess MSRs | 9.80% | 9.60% | |
EMSRs [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Weighted average discount rate, used to value investments in excess MSRs | 9.60% | 9.60% |
INVESTMENTS IN EXCESS MORTGAG64
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 | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||
Excess MSR assets | $ 421,999 | $ 653,293 | |
Other assets | 12,442 | 8,472 | |
Other liabilities | 0 | (13) | |
Equity | 434,441 | 661,752 | |
New Residential’s investment | $ 217,221 | $ 330,876 | |
New Residential’s ownership | 50.00% | 50.00% | |
Interest income | $ 51,811 | $ 67,698 | $ 50,306 |
Other income (loss) | 10,615 | 46,961 | 53,964 |
Expenses | (107) | (99) | (3,585) |
Net income | $ 62,319 | $ 114,560 | $ 100,685 |
INVESTMENTS IN EXCESS MORTGAG65
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) - Recurring Basis [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Equity Method Investments, Excess Mortgage Servicing Rights [Roll Forward] | |||
Beginning balance | $ 330,876 | $ 352,766 | |
Contributions to equity method investees | 0 | 0 | |
Transfers to direct ownership | (98,258) | 0 | |
Distributions of earnings from equity method investees | (37,874) | (53,427) | |
Distributions of capital from equity method investees | (8,683) | (25,743) | |
Change in fair value of investments in equity method investees | [1] | 31,160 | 57,280 |
Ending balance | $ 217,221 | $ 330,876 | |
[1] | In 2015, New Residential recorded a cumulative positive prior period adjustment of $2.7 million resulting from adjustments to certain modeling assumptions. |
INVESTMENTS IN EXCESS MORTGAG66
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Summary of the Financial Results of Excess MSR Joint Ventures, Accounted for as Equity Method Investees - Roll Forward (Footnote) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||
Change in fair value, prior period adjustment | $ 38,643 | $ 41,615 | $ 53,332 |
Excess MSRs Investees [Member] | Prior Period Adjustment [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Change in fair value, prior period adjustment | $ 2,700 |
INVESTMENTS IN EXCESS MORTGAG67
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES - Summary of Excess MSR Investments made through Equity Method Investees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Equity Method Investments [Line Items] | |||
Weighted Average Life (Years) | 11 months 14 days | ||
Excess MSRs Investees [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unpaid Principal Balance | $ 146,257,821 | ||
New Residential Interest in Investees | 50.00% | 50.00% | |
Amortized Cost Basis | [1] | $ 552,310 | |
Carrying Value | [2] | $ 653,293 | |
Weighted Average Life (Years) | [3] | 6 years 3 months 25 days | |
Agency [Member] | Excess MSRs Investees [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unpaid Principal Balance | $ 73,058,050 | $ 87,584,677 | |
Amortized Cost Basis | [1] | 320,759 | 366,201 |
Carrying Value | [2] | $ 421,999 | $ 456,815 |
Weighted Average Life (Years) | [3] | 6 years 7 months | 6 years 8 months 9 days |
Agency [Member] | Excess MSRs Investees [Member] | Original and Recaptured Pools [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unpaid Principal Balance | $ 73,058,050 | $ 87,584,677 | |
Investee Interest in Excess MSR | [4] | 66.70% | 66.70% |
New Residential Interest in Investees | 50.00% | 50.00% | |
Amortized Cost Basis | [1] | $ 275,338 | $ 299,065 |
Carrying Value | [2] | $ 351,275 | $ 370,059 |
Weighted Average Life (Years) | [3] | 5 years 8 months 15 days | 5 years 6 months 21 days |
Agency [Member] | Excess MSRs Investees [Member] | Recapture Agreements [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unpaid Principal Balance | $ 0 | $ 0 | |
Investee Interest in Excess MSR | [4] | 66.70% | 66.70% |
New Residential Interest in Investees | 50.00% | 50.00% | |
Amortized Cost Basis | [1] | $ 45,421 | $ 67,136 |
Carrying Value | [2] | $ 70,724 | $ 86,756 |
Weighted Average Life (Years) | [3] | 11 years 10 months 25 days | 11 years 8 months 27 days |
Non-Agency [Member] | Excess MSRs Investees [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unpaid Principal Balance | [5] | $ 58,673,144 | |
Amortized Cost Basis | [1],[5] | 186,109 | |
Carrying Value | [2],[5] | $ 196,478 | |
Weighted Average Life (Years) | [3],[5] | 5 years 7 months 2 days | |
Non-Agency [Member] | Excess MSRs Investees [Member] | Original and Recaptured Pools [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unpaid Principal Balance | [5] | $ 58,673,144 | |
New Residential Interest in Investees | [5] | 50.00% | |
Amortized Cost Basis | [1],[5] | $ 173,784 | |
Carrying Value | [2],[5] | $ 181,368 | |
Weighted Average Life (Years) | [3],[5] | 5 years 1 month 8 days | |
Non-Agency [Member] | Excess MSRs Investees [Member] | Original and Recaptured Pools [Member] | Lower Range [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investee Interest in Excess MSR | [4],[5] | 66.70% | |
Non-Agency [Member] | Excess MSRs Investees [Member] | Original and Recaptured Pools [Member] | Upper Range [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investee Interest in Excess MSR | [4],[5] | 77.00% | |
Non-Agency [Member] | Excess MSRs Investees [Member] | Recapture Agreements [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unpaid Principal Balance | [5] | $ 0 | |
New Residential Interest in Investees | [5] | 50.00% | |
Amortized Cost Basis | [1],[5] | $ 12,325 | |
Carrying Value | [2],[5] | $ 15,110 | |
Weighted Average Life (Years) | [3],[5] | 12 years 5 months 2 days | |
Non-Agency [Member] | Excess MSRs Investees [Member] | Recapture Agreements [Member] | Lower Range [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investee Interest in Excess MSR | [4],[5] | 66.70% | |
Non-Agency [Member] | Excess MSRs Investees [Member] | Recapture Agreements [Member] | Upper Range [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investee Interest in Excess MSR | [4],[5] | 77.00% | |
[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. | ||
[5] | Excess MSR investments in which New Residential also invested in related Servicer Advances, including the basic fee component of the related MSR as of December 31, 2015 (Note 6). |
INVESTMENTS IN EXCESS MORTGAG68
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] | Dec. 31, 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 MORTGAG69
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] | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 100.00% | 100.00% |
California [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 12.90% | 23.50% |
Florida [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 7.40% | 8.90% |
Texas [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 6.10% | 4.80% |
New York [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 5.80% | 5.60% |
Georgia [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 5.70% | 4.10% |
New Jersey [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.30% | 3.90% |
Illinois [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.00% | 3.50% |
Maryland [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.20% | 3.30% |
Virginia [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.20% | 3.20% |
Pennsylvania [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.10% | 2.30% |
Other U.S. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 44.30% | 36.90% |
INVESTMENTS IN SERVICER ADVAN70
INVESTMENTS IN SERVICER ADVANCES - Narrative (Details) $ in Thousands | Dec. 31, 2014USD ($)securitized_trust | Dec. 31, 2014USD ($)securitized_trust | Dec. 31, 2015USD ($) | Jan. 31, 2015USD ($) |
Investment [Line Items] | ||||
Call rights | $ 3,728 | $ 3,728 | $ 414 | |
Advance Purchaser LLC [Member] | ||||
Investment [Line Items] | ||||
Capital distributed to third-party co-investors | 253,200 | |||
Capital distributed to New Residential | $ 203,200 | |||
Nationstar [Member] | ||||
Investment [Line Items] | ||||
Servicer basic fee, percent | 9.30% | |||
Performance fee, percent (up to) | 100.00% | |||
SLS [Member] | ||||
Investment [Line Items] | ||||
Servicing fee basis points | 0.1075% | |||
SLS [Member] | Residential Mortgage Loans [Member] | ||||
Investment [Line Items] | ||||
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] | ||||
Servicing asset 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] | Maximum [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% | ||
Servicing asset purchases | $ 8,400 | |||
Fortress [Member] | Servicer Advances and Fees [Member] | ||||
Investment [Line Items] | ||||
Servicing asset purchases | $ 135,900 | |||
Call rights | $ 2,100 | |||
Servicer Advance Joint Venture [Member] | ||||
Investment [Line Items] | ||||
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 ADVAN71
INVESTMENTS IN SERVICER ADVANCES - Summary of Information on the Assets and Liabilities related to Consolidated VIE (Details) - VIE [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets | |||
Servicer advances, at fair value | $ 2,344,245 | $ 3,186,830 | |
Cash and cash equivalents | 40,761 | 58,983 | |
All other assets | 25,092 | 31,092 | |
Total assets | [1] | 2,410,098 | 3,276,905 |
Liabilities | |||
Notes payable | 2,060,347 | 2,811,371 | |
All other liabilities | 6,111 | 7,990 | |
Total liabilities | $ 2,066,458 | $ 2,819,361 | |
[1] | The creditors of the Buyer do not have recourse to the general credit of New Residential and the assets of the Buyer are not directly available to satisfy New Residential’s obligations. |
INVESTMENTS IN SERVICER ADVAN72
INVESTMENTS IN SERVICER ADVANCES - Summary of Investments in Servicer Advances (Details) - Servicer Advance Joint Venture [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | [1] | Dec. 31, 2014 | ||
Investments in and Advances to Affiliates [Line Items] | ||||
Amortized Cost Basis | $ 7,400,068 | $ 3,186,622 | ||
Carrying Value | [2] | $ 7,426,794 | $ 3,270,839 | |
Weighted Average Discount Rate | 5.60% | 5.40% | ||
Weighted Average Yield | 5.50% | 5.80% | ||
Weighted Average Life (Years) | [3] | 4 years 4 months 27 days | 4 years 6 days | |
Change in Fair Value Recorded in Other Income for Year then Ended | $ (57,491) | $ 84,217 | ||
[1] | Excludes asset-backed securities collateralized by Servicer Advances with an aggregate face amount of $431.0 million and an aggregate carrying value of $430.3 million as of December 31, 2015. See Note 7 for details related to these securities. | |||
[2] | Carrying value represents the fair value of the investments in Servicer Advances, including the basic fee component of the related MSRs. | |||
[3] | Weighted Average Life represents the weighted average expected timing of the receipt of expected net cash flows for this investment. |
INVESTMENTS IN SERVICER ADVAN73
INVESTMENTS IN SERVICER ADVANCES - Summary of Investments in Servicer Advances (Footnote) (Details) - Servicer Advance Joint Venture [Member] $ in Millions | Dec. 31, 2015USD ($) |
Investments in and Advances to Affiliates [Line Items] | |
Face Amount | $ 431 |
Aggregate carrying value | $ 430.3 |
INVESTMENTS IN SERVICER ADVAN74
INVESTMENTS IN SERVICER ADVANCES - Summary of Investments in Servicer Advances - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments in and Advances to Affiliates [Line Items] | |||
Outstanding Servicer Advances | [1] | $ 7,426,794 | $ 3,270,839 |
Face Amount of Notes Payable | 11,305,998 | ||
Servicer Advance Joint Venture [Member] | Servicer Advances [Member] | |||
Investments in and Advances to Affiliates [Line Items] | |||
UPB of Underlying Mortgages | [2] | 220,256,804 | 96,547,773 |
Outstanding Servicer Advances | [2] | $ 7,578,110 | $ 3,102,492 |
Servicer Advances to UPB of Underlying Residential Mortgage Loans | [2] | 3.40% | 3.20% |
Face Amount of Notes Payable | [2] | $ 7,058,094 | $ 2,890,230 |
Gross Loan-to-Value | [2],[3] | 91.20% | 91.40% |
Net Loan-to-Value | [2],[3],[4] | 90.20% | 90.40% |
Gross Cost of Funds | [2],[5] | 3.40% | 3.00% |
Net Cost of Funds | [2],[5] | 2.60% | 2.30% |
[1] | New Residential’s Consolidated Balance Sheets include the assets and liabilities of a consolidated VIE, the Buyer (Note 6), which primarily holds investments in servicer advances financed with notes payable. The Buyer’s balance sheet is included in Note 6. The creditors of the Buyer do not have recourse to the general credit of New Residential and the assets of the Buyer are not directly available to satisfy New Residential’s obligations. | ||
[2] | The following types of advances comprise the investments in Servicer Advances: December 31, 2015 2014Principal and interest advances$2,229,468 $729,713Escrow advances (taxes and insurance advances)3,687,559 1,600,713Foreclosure advances1,661,083 772,066 Total$7,578,110 $3,102,492 | ||
[3] | Based on outstanding Servicer Advances, excluding purchased but unsettled Servicer Advances and certain deferred servicing fees (“DSF”) which New Residential receives financing on. If New Residential were to include these DSF in the servicer advance balance, gross and net LTV as of December 31, 2015 would be 86.9% and 85.9%, respectively. Also excludes retained non-agency bonds with a current face amount of $175.8 million from the outstanding servicer advances debt. If New Residential were to sell these bonds, gross and net LTV as of December 31, 2015 would be 93.4% and 92.4%, respectively. | ||
[4] | Ratio of face amount of borrowings to par amount of Servicer Advance collateral, net of any general reserve. | ||
[5] | Annualized measure of the cost associated with borrowings. Gross Cost of Funds primarily includes interest expense and facility fees. Net Cost of Funds excludes facility fees. |
INVESTMENTS IN SERVICER ADVAN75
INVESTMENTS IN SERVICER ADVANCES - Summary of Investments in Servicer Advances - Additional Information (Footnote) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments in and Advances to Affiliates [Line Items] | ||
Investments | $ 12,884,846 | $ 7,718,821 |
Servicer Advance Joint Venture [Member] | Servicer Advances [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Gross LTV, if sold | 93.40% | |
Net LTV, if sold | 92.40% | |
Gross LTV, including deferred servicing fees | 86.90% | |
Net LTV, including deferred servicing fees | 85.90% | |
Non-Agency Bonds [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Investments | $ 0 | |
Non-Agency Bonds [Member] | Servicer Advance Joint Venture [Member] | Servicer Advances [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Investments | $ 175,800 |
INVESTMENTS IN SERVICER ADVAN76
INVESTMENTS IN SERVICER ADVANCES - Summary of Investments in Servicer Advances - Components of Funded Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Investment [Line Items] | |||
Total | [1] | $ 7,426,794 | $ 3,270,839 |
Servicer Advance Joint Venture [Member] | Servicer Advances [Member] | |||
Investment [Line Items] | |||
Principal and interest advances | 2,229,468 | 729,713 | |
Escrow advances (taxes and insurance advances) | 3,687,559 | 1,600,713 | |
Foreclosure advances | 1,661,083 | 772,066 | |
Total | [2] | $ 7,578,110 | $ 3,102,492 |
[1] | New Residential’s Consolidated Balance Sheets include the assets and liabilities of a consolidated VIE, the Buyer (Note 6), which primarily holds investments in servicer advances financed with notes payable. The Buyer’s balance sheet is included in Note 6. The creditors of the Buyer do not have recourse to the general credit of New Residential and the assets of the Buyer are not directly available to satisfy New Residential’s obligations. | ||
[2] | The following types of advances comprise the investments in Servicer Advances: December 31, 2015 2014Principal and interest advances$2,229,468 $729,713Escrow advances (taxes and insurance advances)3,687,559 1,600,713Foreclosure advances1,661,083 772,066 Total$7,578,110 $3,102,492 |
INVESTMENTS IN SERVICER ADVAN77
INVESTMENTS IN SERVICER ADVANCES - Schedule of Interest Income Related to Investments in Servicer Advances (Details) - Servicer Advance Investments [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment [Line Items] | |||
Interest income, gross of amounts attributable to servicer compensation | $ 754,717 | $ 290,309 | $ 6,708 |
Amounts attributable to base servicer compensation | (97,351) | (26,092) | (2,287) |
Amounts attributable to incentive servicer compensation | (305,050) | (74,011) | 0 |
Interest income from investments in Servicer Advances | $ 352,316 | $ 190,206 | $ 4,421 |
INVESTMENTS IN SERVICER ADVAN78
INVESTMENTS IN SERVICER ADVANCES - Schedule of Interest Income Related to Investments in Servicer Advances - Others' Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Servicer Advance Joint Venture [Member] | ||||
Investment [Line Items] | ||||
New Residential’s investment | $ 343,640 | $ 457,545 | ||
Others’ ownership interest | 44.50% | |||
Net income in joint venture | $ 33,180 | 159,374 | $ (517) | |
Others [Member] | ||||
Investment [Line Items] | ||||
New Residential’s investment | $ 190,647 | $ 253,836 | ||
Others’ ownership interest | 55.50% | 55.50% | ||
Net income in joint venture | [1] | $ 18,407 | $ 89,222 | $ (326) |
Others' ownership interest as a percent of total | [2] | 55.50% | 56.00% | 63.10% |
[1] | Excludes HLSS shareholders’ interests in the net income (loss) of HLSS of $5.2 million during the year ended December 31, 2015. | |||
[2] | As a result, New Residential owned 44.5%, 44.0% and 36.9% of the Buyer, on average during the years ended December 31, 2015, 2014 and 2013, respectively. |
INVESTMENTS IN SERVICER ADVAN79
INVESTMENTS IN SERVICER ADVANCES - Schedule of Interest Income Related to Investments in Servicer Advances - Others' Interests (Footnote) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment [Line Items] | |||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | $ (3,928) | $ 7,193 | $ 4,158 | $ 5,823 | $ (3,302) | $ 25,726 | $ 58,705 | $ 8,093 | $ 13,246 | $ 89,222 | $ (326) |
Servicer Advance Joint Venture [Member] | |||||||||||
Investment [Line Items] | |||||||||||
Average ownership percentage | 44.50% | 44.00% | 36.90% | ||||||||
HLSS [Member] | |||||||||||
Investment [Line Items] | |||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | $ 5,200 |
INVESTMENTS IN REAL ESTATE SE80
INVESTMENTS IN REAL ESTATE SECURITIES - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | May. 30, 2014 | Mar. 06, 2014 | Jun. 27, 2013 | Jan. 31, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||||
Purchase of Non-Agency RMBS | $ 1,252,516 | $ 1,690,770 | $ 407,689 | ||||||||||||||
Proceeds from sale of Non-Agency RMBS | 425,761 | 1,288,980 | 521,865 | ||||||||||||||
Other-than-temporary impairment (OTTI) on securities | $ 1,000 | $ 2,494 | $ 1,574 | $ 649 | $ 1,071 | $ 448 | $ 0 | $ 615 | $ 328 | 5,788 | 1,391 | 4,993 | |||||
Other-than-temporary (OTTI) credit loss related to securities in an unrealized loss position | 300 | ||||||||||||||||
Real estate securities acquired during the period with credit quality deterioration, face amount | 583,600 | 754,600 | |||||||||||||||
Real estate securities acquired during the period with credit quality deterioration, expected cash flows | $ 502,300 | 502,300 | 734,900 | 502,300 | 734,900 | ||||||||||||
Real estate securities acquired during the period with credit quality deterioration, fair value | 329,500 | $ 329,500 | $ 552,100 | 329,500 | 552,100 | ||||||||||||
Assets Held Prior to Spin-Off [Member] | |||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||||
Other-than-temporary impairment (OTTI) on securities | $ 3,800 | ||||||||||||||||
Non-Agency RMBS [Member] | |||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||||
Face amount of securities sold | 476,400 | [1] | 2,004,300 | ||||||||||||||
Face amount of securities purchased | $ 625,000 | 2,397,900 | [1] | 3,187,500 | |||||||||||||
Sale price of securities sold | 425,700 | [1] | 1,289,000 | ||||||||||||||
Purchases/additional fundings | 1,288,900 | [1] | 1,455,800 | ||||||||||||||
Purchase of Non-Agency RMBS | $ 553,000 | ||||||||||||||||
Percentage of mezzanine and subordinate tranche purchased | 75.00% | ||||||||||||||||
Proceeds from sale of Non-Agency RMBS | $ 598,500 | ||||||||||||||||
Gain on sale of debt investments | $ 39,700 | 3,000 | [1] | 60,600 | |||||||||||||
Agency RMBS [Member] | |||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||||
Face amount of securities sold | 1,500,000 | 5,772,500 | 746,900 | ||||||||||||||
Face amount of securities purchased | 700,000 | $ 22,700 | 5,140,100 | 1,341,000 | |||||||||||||
Sale price of securities sold | 1,500,000 | 6,007,600 | 796,400 | ||||||||||||||
Purchases/additional fundings | $ 700,000 | 5,333,700 | 1,399,000 | ||||||||||||||
Gain on sale of debt investments | $ 10,100 | $ 5,100 | |||||||||||||||
[1] | Purchases include $431.0 million face of servicer advance bonds for a purchase price of $431.0 million. |
INVESTMENTS IN REAL ESTATE SE81
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities (Details) $ in Thousands | Dec. 31, 2015USD ($)security | May. 30, 2014USD ($) | Mar. 06, 2014USD ($) | Jun. 27, 2013USD ($) | Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security | |||
Schedule of Available-for-sale Securities [Line Items] | |||||||||
Outstanding Face Amount | $ 4,418,552 | $ 4,418,552 | $ 3,542,511 | ||||||
Amortized Cost Basis | 2,498,078 | 2,498,078 | 2,434,844 | ||||||
Carrying Value | 2,501,881 | $ 2,501,881 | 2,463,163 | ||||||
Weighted Average Life (Years) | 11 months 14 days | ||||||||
Agency RMBS [Member] | |||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||
Face Amount of Securities Purchased | 700,000 | $ 22,700 | $ 5,140,100 | 1,341,000 | |||||
Purchase Price of Securities Purchased | 700,000 | 5,333,700 | 1,399,000 | ||||||
Face amount of securities sold | 1,500,000 | 5,772,500 | 746,900 | ||||||
Amortized Cost of Securities Sold | 5,997,500 | 791,300 | |||||||
Sale Price of Securities Sold | 1,500,000 | 6,007,600 | 796,400 | ||||||
Gain on Sale of Securities Sold | 10,100 | 5,100 | |||||||
Outstanding Face Amount | [1],[2] | 884,578 | 884,578 | 1,646,361 | |||||
Amortized Cost Basis | [1],[2] | 918,633 | 918,633 | 1,724,329 | |||||
Gross Unrealized Gains | [1],[2] | 183 | 183 | 18,572 | |||||
Gross Unrealized Losses | [1],[2] | (1,218) | (1,218) | (2,738) | |||||
Carrying Value | [1],[2],[3] | $ 917,598 | $ 917,598 | $ 1,740,163 | |||||
Number of Securities | security | [1],[2] | 28 | 28 | 104 | |||||
Weighted Average Rating | [1],[2],[4] | AAA | AAA | ||||||
Weighted Average Coupon | [1],[2],[5] | 3.28% | 3.28% | 3.22% | |||||
Weighted Average Yield | [1],[2] | 2.75% | 2.75% | 2.22% | |||||
Weighted Average Life (Years) | [1],[2],[6] | 6 years 7 months 18 days | 4 years 11 months 19 days | ||||||
Non-Agency RMBS [Member] | |||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||
Face Amount of Securities Purchased | $ 625,000 | $ 2,397,900 | [7] | $ 3,187,500 | |||||
Purchase Price of Securities Purchased | 1,288,900 | [7] | 1,455,800 | ||||||
Face amount of securities sold | 476,400 | [7] | 2,004,300 | ||||||
Amortized Cost of Securities Sold | 422,700 | [7] | 1,228,400 | ||||||
Sale Price of Securities Sold | 425,700 | [7] | 1,289,000 | ||||||
Gain on Sale of Securities Sold | $ 39,700 | 3,000 | [7] | 60,600 | |||||
Outstanding Face Amount | [8],[10] | $ 3,533,974 | [9] | 3,533,974 | [9] | 1,896,150 | |||
Amortized Cost Basis | [8],[10] | 1,579,445 | [9] | 1,579,445 | [9] | 710,515 | |||
Gross Unrealized Gains | [10] | 22,964 | [9] | 22,964 | [9] | 15,327 | |||
Gross Unrealized Losses | [10] | (18,126) | [9] | (18,126) | [9] | (2,842) | |||
Carrying Value | [3],[10] | $ 1,584,283 | [9] | $ 1,584,283 | [9] | $ 723,000 | |||
Number of Securities | security | [10] | 240 | [9] | 240 | [9] | 142 | |||
Weighted Average Rating | [4],[10] | BB+ | [9] | CCC | |||||
Weighted Average Coupon | [5],[10] | 1.63% | [9] | 1.63% | [9] | 1.98% | |||
Weighted Average Yield | [10] | 5.03% | [9] | 5.03% | [9] | 3.37% | |||
Weighted Average Life (Years) | [6],[10] | 6 years 9 months 7 days | [9] | 6 years 4 months 27 days | |||||
Weighted Average Principal Subordination | [10],[11] | 12.10% | [9] | 12.10% | [9] | 17.30% | |||
Investments in Real Estate Securities [Member] | |||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||
Outstanding Face Amount | $ 4,418,552 | $ 4,418,552 | $ 3,542,511 | ||||||
Amortized Cost Basis | 2,498,078 | 2,498,078 | 2,434,844 | ||||||
Gross Unrealized Gains | 23,147 | 23,147 | 33,899 | ||||||
Gross Unrealized Losses | (19,344) | (19,344) | (5,580) | ||||||
Carrying Value | [3] | $ 2,501,881 | $ 2,501,881 | $ 2,463,163 | |||||
Number of Securities | security | 268 | 268 | 246 | ||||||
Weighted Average Rating | [4] | A- | A | ||||||
Weighted Average Coupon | [5] | 2.69% | 2.69% | 2.86% | |||||
Weighted Average Yield | 4.19% | 4.19% | 2.83% | ||||||
Weighted Average Life (Years) | [6] | 6 years 8 months 19 days | 5 years 8 months 26 days | ||||||
Other ABS [Member] | |||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||
Outstanding Face Amount | $ 1,522,256 | $ 1,522,256 | |||||||
Amortized Cost Basis | 82,101 | 82,101 | |||||||
Gross Unrealized Gains | 5,227 | 5,227 | |||||||
Gross Unrealized Losses | (4,348) | (4,348) | |||||||
Carrying Value | $ 82,980 | $ 82,980 | |||||||
Number of Securities | security | 12 | 12 | |||||||
Weighted Average Rating | AA+ | ||||||||
Weighted Average Coupon | 1.84% | 1.84% | |||||||
Weighted Average Yield | 7.11% | 7.11% | |||||||
Weighted Average Life (Years) | 4 years 6 days | ||||||||
Servicer Advances [Member] | |||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||
Outstanding Face Amount | $ 431,000 | $ 431,000 | |||||||
Amortized Cost Basis | 430,951 | 430,951 | |||||||
Gross Unrealized Gains | 0 | 0 | |||||||
Gross Unrealized Losses | (661) | (661) | |||||||
Carrying Value | $ 430,290 | $ 430,290 | |||||||
Number of Securities | security | 5 | 5 | |||||||
Weighted Average Rating | AA+ | ||||||||
Weighted Average Coupon | 2.69% | 2.69% | |||||||
Weighted Average Yield | 2.70% | 2.70% | |||||||
Weighted Average Life (Years) | 1 year 23 days | ||||||||
[1] | Includes securities issued or guaranteed by U.S. Government agencies such as Fannie Mae or Freddie Mac. | ||||||||
[2] | The total outstanding face amount was $0.7 billion and $1.0 billion for fixed rate securities and $0.2 billion and $0.6 billion for floating rate securities as of December 31, 2015 and 2014, respectively. | ||||||||
[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 89 bonds with a carrying value of $333.0 million 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] | Excludes residual bonds, and certain other Non-Agency bonds, with a carrying value of $227.4 million and $0.0 million, respectively, for which no coupon payment is expected. | ||||||||
[6] | The weighted average life is based on the timing of expected principal reduction on the assets. | ||||||||
[7] | Purchases include $431.0 million face of servicer advance bonds for a purchase price of $431.0 million. | ||||||||
[8] | Includes New Residential’s investments in interest-only notes for which the fair value option for financial instruments was elected. | ||||||||
[9] | Includes Other ABS consisting primarily of (i) interest-only securities which New Residential elected to carry at fair value and record changes to valuation through the income statement and representing 5.2% of the carrying value of the Non-Agency RMBS portfolio and (ii) bonds backed by servicer advances representing 27.2% 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 $1,522,256 $82,101 $5,227 $(4,348) $82,980 12 AA+ 1.84% 7.11% 4.0 N/AServicer Advance Bonds $431,000 $430,951 $— $(661) $430,290 5 AA+ 2.69% 2.70% 1.1 N/A | ||||||||
[10] | The total outstanding face amount was $2.3 billion (including $1.7 billion of residual and interest-only notional amount) and $1.0 billion (including $959.1 million of interest-only notional amount) for fixed rate securities and $1.3 billion (including $164.4 million of residual and interest-only notional amount) and $882.4 million (including $130.6 million of residual and interest-only notional amount) for floating rate securities as of December 31, 2015 and 2014, respectively. | ||||||||
[11] | Percentage of the amortized cost basis of securities that is subordinate to New Residential’s investments, excluding interest-only bonds and servicer advance bonds. |
INVESTMENTS IN REAL ESTATE SE82
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities (Footnote) (Details) $ in Thousands | Dec. 31, 2015USD ($)bond | Mar. 06, 2014USD ($) | Jun. 27, 2013USD ($) | Dec. 31, 2015USD ($)bond | Dec. 31, 2014USD ($) | |||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Carrying value of investment | $ 12,884,846 | $ 12,884,846 | $ 7,718,821 | |||||
Outstanding face amount | $ 4,418,552 | $ 4,418,552 | 3,542,511 | |||||
Bonds [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Number of bonds which New Residential was unable to obtain rating information | bond | 89 | 89 | ||||||
Carrying value of investment | $ 333,000 | $ 333,000 | ||||||
Residual Bonds [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Carrying value of investment | 227,400 | 227,400 | ||||||
Non-Agency Bonds [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Carrying value of investment | 0 | 0 | ||||||
Non-Agency RMBS [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Face amount of securities purchased | $ 625,000 | 2,397,900 | [1] | 3,187,500 | ||||
Purchases/additional fundings | 1,288,900 | [1] | 1,455,800 | |||||
Outstanding face amount | [2],[4] | 3,533,974 | [3] | 3,533,974 | [3] | 1,896,150 | ||
Non-Agency RMBS [Member] | Fixed Rate Residential Mortgage [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Outstanding face amount | 2,300,000 | 2,300,000 | 1,000,000 | |||||
Residual and interest - only notional amount | 1,700,000 | 1,700,000 | 959,100 | |||||
Non-Agency RMBS [Member] | Floating Rate Residential Mortgage [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Outstanding face amount | 1,300,000 | 1,300,000 | 882,400 | |||||
Residual and interest - only notional amount | 164,400 | 164,400 | 130,600 | |||||
Non-Agency RMBS [Member] | Servicer Advances [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Face amount of securities purchased | [1] | 431,000 | ||||||
Purchases/additional fundings | [1] | 431,000 | ||||||
Agency RMBS [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Face amount of securities purchased | 700,000 | $ 22,700 | 5,140,100 | 1,341,000 | ||||
Purchases/additional fundings | 700,000 | 5,333,700 | 1,399,000 | |||||
Outstanding face amount | [5],[6] | 884,578 | 884,578 | 1,646,361 | ||||
Agency RMBS [Member] | Fixed Rate Residential Mortgage [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Outstanding face amount | 700,000 | 700,000 | 1,000,000 | |||||
Agency RMBS [Member] | Floating Rate Residential Mortgage [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Outstanding face amount | 200,000 | 200,000 | $ 600,000 | |||||
Other ABS [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Outstanding face amount | $ 1,522,256 | $ 1,522,256 | ||||||
Percent of other RMBS representing carrying value of Non-Agency RMBS portfolio | 5.20% | 5.20% | ||||||
Other ABS [Member] | Servicer Advances [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Percent of other RMBS representing carrying value of Non-Agency RMBS portfolio | 27.20% | 27.20% | ||||||
[1] | Purchases include $431.0 million face of servicer advance bonds for a purchase price of $431.0 million. | |||||||
[2] | Includes New Residential’s investments in interest-only notes for which the fair value option for financial instruments was elected. | |||||||
[3] | Includes Other ABS consisting primarily of (i) interest-only securities which New Residential elected to carry at fair value and record changes to valuation through the income statement and representing 5.2% of the carrying value of the Non-Agency RMBS portfolio and (ii) bonds backed by servicer advances representing 27.2% 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 $1,522,256 $82,101 $5,227 $(4,348) $82,980 12 AA+ 1.84% 7.11% 4.0 N/AServicer Advance Bonds $431,000 $430,951 $— $(661) $430,290 5 AA+ 2.69% 2.70% 1.1 N/A | |||||||
[4] | The total outstanding face amount was $2.3 billion (including $1.7 billion of residual and interest-only notional amount) and $1.0 billion (including $959.1 million of interest-only notional amount) for fixed rate securities and $1.3 billion (including $164.4 million of residual and interest-only notional amount) and $882.4 million (including $130.6 million of residual and interest-only notional amount) for floating rate securities as of December 31, 2015 and 2014, respectively. | |||||||
[5] | Includes securities issued or guaranteed by U.S. Government agencies such as Fannie Mae or Freddie Mac. | |||||||
[6] | The total outstanding face amount was $0.7 billion and $1.0 billion for fixed rate securities and $0.2 billion and $0.6 billion for floating rate securities as of December 31, 2015 and 2014, respectively. |
INVESTMENTS IN REAL ESTATE SE83
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | $ 4,418,552 | $ 3,542,511 | ||
Other Than Temporary Impairment - Amortized Cost Basis | (6,239) | (1,127) | $ (2,071) | |
After Impairment - Amortized Cost Basis | 2,498,078 | 2,434,844 | ||
Carrying Value - Total/Weighted Average | $ 2,501,881 | $ 2,463,163 | ||
Weighted Average Life (Years) | 11 months 14 days | |||
Securities in an Unrealized Loss Position Less than Twelve Months [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | $ 1,697,478 | |||
Before Impairment - Amortized Cost Basis | 1,028,088 | |||
Other Than Temporary Impairment - Amortized Cost Basis | [1] | (5,028) | ||
After Impairment - Amortized Cost Basis | 1,023,060 | |||
Gross Unrealized Losses - Less than Twelve Months | (14,508) | |||
Carrying Value - Less than Twelve Months | $ 1,008,552 | |||
Number of Securities - Less than Twelve Months | security | 127 | |||
Weighted Average Rating | [2] | BBB | ||
Weighted Average Coupon | 2.14% | |||
Weighted Average Yield | 4.25% | |||
Weighted Average Life (Years) | 5 years 10 months 14 days | |||
Securities in an Unrealized Loss Position Twelve or More Months [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | $ 766,444 | |||
Before Impairment - Amortized Cost Basis | 192,699 | |||
Other Than Temporary Impairment - Amortized Cost Basis | [1] | 0 | ||
After Impairment - Amortized Cost Basis | 192,699 | |||
Gross Unrealized Losses - Twelve or More Months | (4,836) | |||
Carrying Value - Twelve or More Months | $ 187,863 | |||
Number of Securities - Twelve or More Months | security | 25 | |||
Weighted Average Rating | [2] | AA+ | ||
Weighted Average Coupon | 2.30% | |||
Weighted Average Yield | 1.72% | |||
Weighted Average Life (Years) | 5 years 1 month 5 days | |||
Securities in a Loss Position [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Outstanding Face Amount | $ 2,463,922 | |||
Before Impairment - Amortized Cost Basis | 1,220,787 | |||
Other Than Temporary Impairment - Amortized Cost Basis | [1] | (5,028) | ||
After Impairment - Amortized Cost Basis | 1,215,759 | |||
Gross Unrealized Losses - Total/Weighted Average | (19,344) | |||
Carrying Value - Total/Weighted Average | $ 1,196,415 | |||
Number of Securities - Total/Weighted Average | security | 152 | |||
Weighted Average Rating | [2] | BBB+ | ||
Weighted Average Coupon | 2.17% | |||
Weighted Average Yield | 3.85% | |||
Weighted Average Life (Years) | 5 years 8 months 30 days | |||
[1] | This amount represents other-than-temporary impairment recorded on securities that are in an unrealized loss position as of December 31, 2015. | |||
[2] | The weighted average rating of securities in an unrealized loss position for less than twelve months excludes the rating of 51 bonds which either have never been rated or for which rating information is no longer provided. |
INVESTMENTS IN REAL ESTATE SE84
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position (Footnote) (Details) | Dec. 31, 2015bond |
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 | 51 |
INVESTMENTS IN REAL ESTATE SE85
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position - Associated Intent to Sell (Details) $ in Thousands | Dec. 31, 2015USD ($) | |
Securities Intended To Sell [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 19,875 | [1] |
Amortized Cost Basis After Impairment | 19,875 | [1] |
Unrealized Credit Losses | (224) | [1],[2] |
Unrealized Non-Credit Losses | 0 | [1],[3] |
Securities More Likely Than Not Required to be Sold [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 0 | [4] |
Amortized Cost Basis After Impairment | 0 | [4] |
Unrealized Credit Losses | 0 | [2],[4] |
Securities No Intent To Sell and Not More Likely Than Not to be Required to Sell- Credit Impaired [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 172,114 | |
Amortized Cost Basis After Impairment | 174,049 | |
Unrealized Credit Losses | (4,804) | [2] |
Unrealized Non-Credit Losses | (1,935) | [3] |
Securities No Intent To Sell and Not More Likely Than Not to be Required to Sell - Non-Credit Impaired [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 1,004,426 | |
Amortized Cost Basis After Impairment | 1,021,835 | |
Unrealized Credit Losses | 0 | [2] |
Unrealized Non-Credit Losses | (17,409) | [3] |
Securities in an Unrealized Loss Position [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 1,196,415 | |
Amortized Cost Basis After Impairment | 1,215,759 | |
Unrealized Credit Losses | (5,028) | [2] |
Unrealized Non-Credit Losses | $ (19,344) | [3] |
[1] | A portion of securities New Residential intends to sell have a fair value equal to their amortized cost basis after impairment, and, therefore do not have unrealized losses reflected in other comprehensive income as of December 31, 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 SE86
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Real Estate Securities in an Unrealized Loss Position - Associated Intent to Sell (Footnote) (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized losses reflected in other comprehensive income | $ 0 |
INVESTMENTS IN REAL ESTATE SE87
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Activity Related to Credit Losses on Debt Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Beginning balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income | $ 1,127 | $ 2,071 |
Increases to credit losses on securities for which an OTTI was previously recognized and a portion of an OTTI was recognized in other comprehensive income | 5 | 568 |
Additions for credit losses on securities for which an OTTI was not previously recognized | 5,782 | 823 |
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 | 0 |
Reduction for credit losses on securities for which no OTTI was recognized in other comprehensive income at the current measurement date | 0 | (401) |
Reduction for securities sold during the period | (675) | (1,934) |
Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized in other comprehensive income | $ 6,239 | $ 1,127 |
INVESTMENTS IN REAL ESTATE SE88
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of the Geographic Distribution of the Collateral Securing Non-Agency RMBS (Details) - Non-Agency RMBS [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Outstanding Face Amount | [1] | $ 3,102,973 | $ 1,896,150 |
Percentage of Total Outstanding | [1] | 100.00% | 100.00% |
Western U.S. [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Outstanding Face Amount | [1] | $ 1,097,609 | $ 779,930 |
Percentage of Total Outstanding | [1] | 35.30% | 41.10% |
Southeastern U.S. [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Outstanding Face Amount | [1] | $ 758,167 | $ 409,755 |
Percentage of Total Outstanding | [1] | 24.40% | 21.60% |
Northeastern U.S. [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Outstanding Face Amount | [1] | $ 583,366 | $ 344,716 |
Percentage of Total Outstanding | [1] | 18.80% | 18.20% |
Midwestern U.S. [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Outstanding Face Amount | [1] | $ 335,406 | $ 190,480 |
Percentage of Total Outstanding | [1] | 10.80% | 10.00% |
Southwestern U.S. [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Outstanding Face Amount | [1] | $ 309,236 | $ 170,829 |
Percentage of Total Outstanding | [1] | 10.00% | 9.00% |
Other U.S. [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Outstanding Face Amount | [1],[2] | $ 19,189 | $ 440 |
Percentage of Total Outstanding | [1],[2] | 0.70% | 0.10% |
[1] | Excludes $431.0 million face amount of bonds backed by servicer advances. | ||
[2] | Represents collateral for which New Residential was unable to obtain geographic information. |
INVESTMENTS IN REAL ESTATE SE89
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of the Geographic Distributions of the Collateral Securing Non-Agency RMBS (Footnote) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Servicer Advances [Member] | Bonds [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Face amount | $ 431 |
INVESTMENTS IN REAL ESTATE SE90
INVESTMENTS IN REAL ESTATE SECURITIES - Schedule of the Outstanding Face Amount and Carrying Value for Securities Uncollectible (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Investments, Debt and Equity Securities [Abstract] | ||
Outstanding Face Amount | $ 873,763 | $ 536,342 |
Carrying Value | $ 504,659 | $ 414,298 |
INVESTMENTS IN REAL ESTATE SE91
INVESTMENTS IN REAL ESTATE SECURITIES - Summary of Changes in Accretable Yield for Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Certain Loans Acquired in Transfer Accounted for as Available-for-sale Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning Balance | $ 181,671 | $ 143,067 |
Additions | 172,828 | 189,252 |
Accretion | (42,800) | (14,035) |
Reclassifications from (to) non-accretable difference | (36,326) | 20,385 |
Disposals | (105,593) | (156,998) |
Ending Balance | 316,521 | 181,671 |
ASU 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 | $ 0 |
INVESTMENTS IN RESIDENTIAL MO92
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Mortgage Loans on Real Estate [Line Items] | |||
Threshold period past due | 30 days | ||
Government Guaranteed Mortgage Loans upon Foreclosure Receivable [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Claims receivable | $ 68.8 | ||
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] | |||
Interest in reverse mortgage loans | 70.00% | 70.00% | |
Unpaid principal balance | $ 0.4 | $ 0.3 | |
Residential Mortgage Loans [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Unpaid principal balance | $ 565.3 |
INVESTMENTS IN RESIDENTIAL MO93
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | |||
Mortgage Loans on Real Estate [Line Items] | ||||
Weighted Average Life (Years) | 11 months 14 days | |||
Reverse Mortgage Loans [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | [1],[2] | $ 34,423 | $ 45,182 | |
Carrying Value | [1],[2],[3] | $ 19,560 | $ 24,965 | |
Loan Count | loan | [1],[2] | 136 | 198 | |
Weighted Average Yield | [1],[2] | 10.00% | 10.20% | |
Weighted Average Life (Years) | [1],[2],[4] | 4 years 2 months 14 days | 3 years 10 months 26 days | |
Floating Rate Loans as a % of Face Amount | [1],[2] | 21.80% | 21.40% | |
Loan to Value Ratio (LTV) | [1],[2],[5] | 112.90% | 108.20% | |
Weighted Average Delinquency | [1],[2],[6] | 71.30% | 82.60% | |
Performing Loans [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | [7] | $ 21,483 | $ 24,399 | |
Carrying Value | [3],[7] | $ 19,964 | $ 22,873 | |
Loan Count | loan | [7] | 671 | 731 | |
Weighted Average Yield | [7] | 9.10% | 7.90% | |
Weighted Average Life (Years) | [4],[7] | 6 years 8 months | 5 years 10 months 24 days | |
Floating Rate Loans as a % of Face Amount | [7] | 17.10% | 17.40% | |
Loan to Value Ratio (LTV) | [5],[7] | 77.40% | 72.00% | |
Weighted Average Delinquency | [6],[7] | 7.50% | 0.00% | |
Weighted Average FICO | [7],[8] | 626 | 628 | |
Purchased Credit Deteriorated Loans [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | [9] | $ 450,229 | ||
Carrying Value | [3],[9] | $ 290,654 | ||
Loan Count | loan | [9] | 2,118 | ||
Weighted Average Yield | [9] | 5.50% | ||
Weighted Average Life (Years) | [4],[9] | 2 years 6 months 18 days | ||
Floating Rate Loans as a % of Face Amount | [9] | 18.70% | ||
Loan to Value Ratio (LTV) | [5],[9] | 115.40% | ||
Weighted Average Delinquency | [6],[9] | 97.60% | ||
Weighted Average FICO | [9] | 578 | ||
Residential Mortgage Loans, held-for-investment [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | $ 506,135 | $ 69,581 | ||
Carrying Value | [3] | $ 330,178 | $ 47,838 | |
Loan Count | loan | 2,925 | 929 | ||
Weighted Average Yield | 6.00% | 9.40% | ||
Weighted Average Life (Years) | [4] | 2 years 10 months 1 day | 4 years 7 months 8 days | |
Floating Rate Loans as a % of Face Amount | 18.80% | 20.00% | ||
Loan to Value Ratio (LTV) | [5] | 113.60% | 95.50% | |
Weighted Average Delinquency | [6] | 92.00% | 53.60% | |
Weighted Average FICO | [8] | 580 | 628 | |
Performing Loans, held-for-sale [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | [7] | $ 270,585 | $ 403,992 | |
Carrying Value | [3],[7] | $ 277,084 | $ 388,485 | |
Loan Count | loan | [7] | 1,838 | 5,809 | |
Weighted Average Yield | [7] | 4.60% | 5.60% | |
Weighted Average Life (Years) | [4],[7] | 4 years 10 months 14 days | 7 years 2 months 12 days | |
Floating Rate Loans as a % of Face Amount | [7] | 4.60% | 23.00% | |
Loan to Value Ratio (LTV) | [5],[7] | 57.00% | 85.00% | |
Weighted Average Delinquency | [6],[7] | 0.00% | 5.00% | |
Weighted Average FICO | [7],[8] | 702 | 626 | |
Non-Performing Loans, held-for-sale [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | [9] | $ 589,129 | [10] | $ 960,224 |
Carrying Value | [3],[9] | $ 499,597 | [10] | $ 737,954 |
Loan Count | loan | [9] | 3,428 | [10] | 5,025 |
Weighted Average Yield | [9] | 5.90% | [10] | 5.90% |
Weighted Average Life (Years) | [4],[9] | 2 years 10 months 16 days | [10] | 2 years 7 months 6 days |
Floating Rate Loans as a % of Face Amount | [9] | 14.50% | [10] | 3.70% |
Loan to Value Ratio (LTV) | [5],[9] | 104.50% | [10] | 104.00% |
Weighted Average Delinquency | [6],[9] | 81.10% | [10] | 90.00% |
Weighted Average FICO | [8],[9] | 580 | [10] | 571 |
Residential Mortgage Loans Held-for-Sale [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | $ 859,714 | $ 1,364,216 | ||
Carrying Value | [3] | $ 776,681 | $ 1,126,439 | |
Loan Count | loan | 5,266 | 10,834 | ||
Weighted Average Yield | 5.50% | 5.80% | ||
Weighted Average Life (Years) | [4] | 3 years 6 months 2 days | 3 years 11 months 17 days | |
Floating Rate Loans as a % of Face Amount | 11.40% | 9.40% | ||
Loan to Value Ratio (LTV) | [5] | 89.60% | 98.40% | |
Weighted Average Delinquency | [6] | 55.60% | 64.80% | |
Weighted Average FICO | [8] | 619 | 587 | |
[1] | FICO scores are not used in determining how much a borrower can access via a reverse mortgage loan. | |||
[2] | Represents a 70% interest New Residential holds in reverse mortgage loans. The average loan balance outstanding based on total UPB was $0.4 million and $0.3 million at December 31, 2015 and 2014, respectively, and 71% and 77% of these loans outstanding at each respective date 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] | Includes residential mortgage loans with a United States federal income tax basis of $1,204.2 million and $1,159.1 million as of December 31, 2015 and 2014, respectively. | |||
[4] | The weighted average life is based on the expected timing of the receipt of cash flows. | |||
[5] | LTV refers to the ratio comparing the loan’s unpaid principal balance to the value of the collateral property. | |||
[6] | Represents the percentage of the total principal balance that are 60+ days delinquent | |||
[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 premiums of $12.0 million. | |||
[8] | The weighted average FICO score is based on the weighted average of information updated and provided by the loan servicer on a monthly basis. | |||
[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 December 31, 2015, New Residential has placed all of these loans on nonaccrual status, except as described in (J) below. | |||
[10] | Includes $246.3 million UPB of Ginnie Mae EBO non-performing loans on accrual status as contractual cash flows are guaranteed by the FHA. |
INVESTMENTS IN RESIDENTIAL MO94
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO (Footnote) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Mortgage Loans on Real Estate [Line Items] | |||
Threshold period past due | 30 days | ||
Net unamortized discounts and premiums | $ 12 | ||
Residential Mortgage Loan [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Residential mortgage loans, federal income tax basis | $ 1,204.2 | $ 1,159.1 | |
Reverse Mortgage Loans [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Interest in reverse mortgage loans | 70.00% | 70.00% | |
Total unpaid principal balance | $ 0.4 | $ 0.3 | |
Percentage of loans that have reached a termination event | 71.00% | 77.00% | |
Non-Performing Loans [Member] | Ginnie Mae EBO [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
UPB of Underlying Mortgages | $ 246.3 | ||
Maximum [Member] | Performing Loans [Member] | |||
Mortgage Loans on Real Estate [Line Items] | |||
Threshold period past due | 30 days |
INVESTMENTS IN RESIDENTIAL MO95
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans (Details) - Residential Mortgage Loans, held-for-investment [Member] | Dec. 31, 2015 | Dec. 31, 2014 |
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 100.00% | 100.00% |
New York [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 14.50% | 12.20% |
New Jersey [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 13.10% | 7.00% |
California [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 12.30% | 15.00% |
Florida [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 10.70% | 6.30% |
Illinois [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 4.30% | 4.40% |
Maryland [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.50% | 3.40% |
Massachusetts [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.30% | 2.40% |
Texas [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.30% | 4.10% |
Washington [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 3.20% | 3.00% |
Pennsylvania [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 2.80% | 3.90% |
Other U.S. [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Percentage of Total Outstanding Unpaid Principal Amount | 29.00% | 38.30% |
INVESTMENTS IN RESIDENTIAL MO96
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Residential Mortgage Loan Transactions (Details) - Residential Mortgage Loans [Member] $ in Millions | Nov. 25, 2015USD ($)trust | Jun. 25, 2015USD ($)trust | Dec. 26, 2014USD ($)trust | Aug. 25, 2014USD ($)trust | May. 27, 2014USD ($)trust | Dec. 23, 2015USD ($)trust | Sep. 25, 2015USD ($)trust | |
Investment [Line Items] | ||||||||
Number of Trusts Called | trust | 14 | 18 | 25 | 19 | 16 | 14 | 7 | |
Securities Owned Prior [Member] | ||||||||
Investment [Line Items] | ||||||||
Face Amount | $ 3.9 | $ 13.7 | $ 27.9 | $ 15.4 | $ 17.4 | $ 61.4 | $ 7.4 | |
Amortized Cost Basis | 3 | 9.1 | 24 | 13.1 | 12 | 48 | 4.5 | |
Assets Acquired [Member] | ||||||||
Investment [Line Items] | ||||||||
Unpaid Principal Balance | 345.4 | 369 | 597.1 | 530.1 | 282.2 | 309.1 | 216.3 | |
Loan Price | [1] | 351.7 | 388.8 | 623.7 | 536.3 | 289.4 | 315.1 | 223.1 |
REO & Other Price | [1] | 1.2 | 0 | 0 | 3 | 0 | $ 3.1 | 1.5 |
Loans Sold [Member] | ||||||||
Investment [Line Items] | ||||||||
Unpaid Principal Balance | [2] | 511.8 | 334.5 | 516.1 | 463 | 233.8 | ||
Gain (Loss) | [2] | 2.4 | (2.8) | 0.7 | 7 | 3.5 | ||
Bonds Retained [Member] | ||||||||
Investment [Line Items] | ||||||||
Basis | 22 | 15 | 28.9 | 25.8 | ||||
Retained Assets [Member] | ||||||||
Investment [Line Items] | ||||||||
Unpaid Principal Balance | [2] | 29.8 | 34.5 | 81 | 66.4 | 48.4 | 19.4 | |
Loan Price | [2] | 23.4 | 31.7 | 71.7 | 46.3 | 40.1 | 17.2 | |
REO & Other Price | [2] | $ 1.2 | $ 1.3 | $ 4.3 | $ 3 | $ 1.3 | $ 1.5 | |
[1] | Price includes par amount paid for all underlying mortgage loans of the trusts, plus the basis of the exercised call rights, plus advances and costs incurred (including MSR Fund Payments, as defined in Note 15) in exercising such call rights. | |||||||
[2] | Loans were sold through a securitization which was treated as a sale for accounting purposes. The securitization that occurred in November 2015 primarily included loans from the September 25, 2015 and November 25, 2015 calls, but also included previously acquired loans. The retained assets disclosed for the September 25, 2015 call are net of the related loans sold in the November 2015 securitization. No loans from the December 23, 2015 call had been securitized by December 31, 2015. |
INVESTMENTS IN RESIDENTIAL MO97
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Past Due Information for Performing Loans (Details) - Delinquency Status [Member] | Dec. 31, 2015 | [1] |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 93.50% | |
30-59 | 5.90% | |
60-89 | 0.30% | |
90-119 | 0.10% | [2] |
120 and greater | 0.20% | [3] |
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 MO98
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Past Due Information for Performing Loans (Footnote) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Threshold period past due | 30 days |
Equal to Greater than 90 Days Past Due [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Threshold period past due | 120 days |
Equal to Greater than 90 Days Past Due [Member] | Lower Range [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Threshold period past due | 90 days |
Equal to Greater than 90 Days Past Due [Member] | Upper Range [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Threshold period past due | 119 days |
INVESTMENTS IN RESIDENTIAL MO99
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of Activities Related to the Carrying Value of Reverse Mortgage Loans and Performing Loans and PCD Loans Held-for-Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Transfer of loans to real estate owned | $ (35,322) | ||
Reverse Mortgage Loans [Member] | |||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance, beginning | 24,965 | $ 33,539 | |
Purchases/additional fundings | 988 | 0 | |
Proceeds from repayments | (687) | (2,810) | |
Accretion of loan discount and other amortization | [1] | 5,904 | 6,501 |
Provision for loan losses | (35) | (1,111) | |
Transfer of loans to other assets | (11,574) | (10,261) | |
Transfer of loans to real estate owned | (1) | (947) | |
Transfer of loans to held-for-sale | 0 | ||
Reversal of valuation provision on loans transferred to other assets | 54 | ||
Balance, ending | 19,560 | 24,965 | |
Performing Loans [Member] | |||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance, beginning | 22,873 | 0 | |
Purchases/additional fundings | 0 | 134,818 | |
Proceeds from repayments | (2,918) | (10,381) | |
Accretion of loan discount and other amortization | [1] | 52 | 2,994 |
Provision for loan losses | (43) | (651) | |
Transfer of loans to other assets | 0 | 0 | |
Transfer of loans to real estate owned | 0 | 0 | |
Transfer of loans to held-for-sale | (103,907) | ||
Reversal of valuation provision on loans transferred to other assets | 0 | ||
Balance, ending | 19,964 | 22,873 | |
PCD Loans [Member] | |||
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance, beginning | 0 | 0 | |
Purchases/additional fundings | 289,664 | 749,739 | |
Sales | 0 | 0 | |
Proceeds from repayments | 0 | (20,431) | |
Accretion of loan discount and other amortization | 990 | 30,361 | |
Transfer of loans to real estate owned | 0 | (21,842) | |
Transfer of loans to held-for-sale | (737,827) | ||
Balance, ending | $ 290,654 | $ 0 | |
[1] | Includes accelerated accretion of discount on loans paid in full and on loans transferred to other assets. |
INVESTMENTS IN RESIDENTIAL M100
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) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Reverse Mortgage Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning, balance | $ 1,518 | $ 461 | |
Provision for loan losses | [1] | 35 | 1,111 |
Charge-offs | [2] | 0 | 0 |
Reversal of valuation provision on loans transferred to other assets | (54) | ||
Ending, balance | 1,553 | 1,518 | |
Performing Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning, balance | 1,447 | 0 | |
Provision for loan losses | [1] | 43 | 1,811 |
Charge-offs | [2] | (1,371) | (364) |
Reversal of valuation provision on loans transferred to other assets | 0 | ||
Ending, balance | $ 119 | $ 1,447 | |
[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 PCD 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 M101
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of Contractually Required Payments Receivable, Cash Flows Expected to be Collected, and Fair Value at Acquisition Date for Loans Acquired during the Period (Details) - PCD Loans [Member] $ in Thousands | Dec. 31, 2015USD ($) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |
Contractually Required Payments Receivable | $ 717,718 |
Cash Flows Expected to be Collected | 361,717 |
Fair Value | $ 289,664 |
INVESTMENTS IN RESIDENTIAL M102
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of Unpaid Principal Balance and Carrying Value for Loans Uncollectible (Details) - PCD Loans [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Mortgage Loans on Real Estate [Line Items] | ||
Unpaid Principal Balance | $ 450,229 | $ 960,224 |
Carrying Value | $ 290,654 | $ 737,954 |
INVESTMENTS IN RESIDENTIAL M103
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of Changes in Accretable Yield (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Beginning balance | $ 0 | $ 0 | |
Additions | 72,053 | 207,231 | |
Accretion | (990) | (30,361) | |
Reclassifications from non-accretable difference | [1] | 0 | 6,836 |
Disposals | [2] | 0 | (8,324) |
Transfer to held-for-sale | [3] | (175,382) | |
Ending balance | $ 71,063 | $ 0 | |
[1] | Represents a probable and significant increase in cash flows previously expected to be uncollectible. | ||
[2] | Includes sales of loans or foreclosures, which result in removal of the loan from the PCD loan pool at its carrying amount. | ||
[3] | Recognition of the accretable yield ceases upon transfer of the PCD loan pools to held-for-sale. |
INVESTMENTS IN RESIDENTIAL M104
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of Activities Related to the Carrying Value of Loans Held-for-sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Loans Held-for-sale, Reconciliation [Roll Forward] | ||||
Transfers of loans from held-for-investment | $ 0 | $ 846,904 | $ 0 | |
Transfer of loans to real estate owned | (35,322) | |||
ASU 2014-11 [Member] | ||||
Loans Held-for-sale, Reconciliation [Roll Forward] | ||||
Adoption of ASU No. 2014-11 | 146,741 | 0 | ||
Loans Held-for-sale [Member] | ||||
Loans Held-for-sale, Reconciliation [Roll Forward] | ||||
Beginning balance, loans held-for-sale | 1,126,439 | 0 | ||
Purchases | [1] | 1,695,124 | 1,577,933 | |
Sales | (1,871,054) | (1,289,687) | ||
Transfers of loans from linked transactions | [2] | 4,595 | ||
Transfers of loans from held-for-investment | [3] | 841,734 | ||
Transfer of loans to other assets | (41,752) | |||
Transfer of loans to real estate owned | (34,139) | |||
Proceeds from repayments | (85,698) | (2,413) | ||
Valuation provision on loans | [4] | (14,070) | (5,723) | |
Ending balance, loans held-for-sale | 776,681 | $ 1,126,439 | $ 0 | |
Loans Held-for-sale [Member] | ASU 2014-11 [Member] | ||||
Loans Held-for-sale, Reconciliation [Roll Forward] | ||||
Adoption of ASU No. 2014-11 | [5] | $ 1,831 | ||
[1] | Represents loans acquired with the intent to sell, including loans acquired in the HLSS Acquisition (Note 1). | |||
[2] | Represents loans previously financed with the selling counterparty and previously accounted for as linked transactions that New Residential decided to sell. | |||
[3] | Represents loans not acquired with the intent to sell that New Residential decided to sell. | |||
[4] | Represents the fair value adjustments to loans upon transfer to held-for-sale and provision recorded on certain purchased held-for-sale loans, including $10.5 million of provision related to the call transaction executed on December 23, 2015. | |||
[5] | Represents loans financed with the selling counterparty that were previously accounted for as linked transactions (Note 10). |
INVESTMENTS IN RESIDENTIAL M105
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Summary of Activities Related to the Carrying Value of Loans Held-for-sale (Footnote) (Details) $ in Millions | Dec. 23, 2015USD ($) |
Loans Held-for-sale [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Provision on call transaction on loans held-for-sale | $ 10.5 |
INVESTMENTS IN RESIDENTIAL M106
INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS - Schedule of Real Estate Owned (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Real Estate Owned [Roll Forward] | |
Balance at December 31, 2014 | $ 61,933 |
Purchases | 26,208 |
Transfer of loans to real estate owned | 35,322 |
Sales | (68,441) |
Valuation provision on REO | (4,448) |
Balance at December 31, 2015 | $ 50,574 |
INVESTMENTS IN CONSUMER LOAN107
INVESTMENTS IN CONSUMER LOANS, EQUITY METHOD INVESTEES - Narrative (Details) - USD ($) $ in Thousands | Oct. 03, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | 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 | $ 43,954 | $ 92,020 | $ 0 | |
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 or portfolio financed by other parties | 73.00% | ||||
OneMain [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% | |
Percentage of portfolio co-invested by other parties | 70.00% |
INVESTMENTS IN CONSUMER LOAN108
INVESTMENTS IN CONSUMER LOANS, EQUITY METHOD INVESTEES - Summary of the Investment in Consumer Loan Companies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2013 | |
Schedule of Equity Method Investments [Line Items] | ||||
New Residential’s investment | $ 0 | $ 0 | ||
Consumer Loan Investees [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Consumer Loan Assets (amortized cost basis) | 1,698,130 | 2,088,330 | ||
Other Assets | 70,469 | 92,051 | ||
Debt | (1,912,267) | (2,411,421) | ||
Other Liabilities | (5,640) | (12,340) | ||
Equity | (149,308) | (243,380) | ||
New Residential’s investment | $ 0 | $ 0 | $ 215,062 | |
New Residential’s ownership | 30.00% | 30.00% | 30.00% | 30.00% |
Interest income | $ 455,479 | $ 534,990 | $ 481,056 | |
Interest expense | (87,000) | (81,706) | (71,639) | |
Provision for finance receivable losses | (67,935) | (104,921) | (60,619) | |
Other expenses, net | (60,263) | (74,781) | (67,225) | |
Change in fair value of debt | 0 | (14,810) | 0 | |
Loss on extinguishment of debt | 0 | (21,151) | 0 | |
Net income | 240,281 | 237,621 | 281,573 | |
New Residential’s equity in net income through October 3, 2014 | $ 0 | $ 53,840 | $ 82,856 |
INVESTMENTS IN CONSUMER LOAN109
INVESTMENTS IN CONSUMER LOANS, EQUITY METHOD INVESTEES - Summary of Consumer Loan Investments made through Equity Method Investees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Equity Method Investments [Line Items] | |||
Weighted Average Expected Life (Years) | 11 months 14 days | ||
Consumer Loan Investees [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unpaid Principal Balance | [1] | $ 2,094,904 | $ 2,589,748 |
New Residential Interest in Investees | 30.00% | 30.00% | |
Carrying value | [2] | $ 1,698,130 | $ 2,088,330 |
Weighted Average Coupon | [3] | 18.20% | 18.10% |
Weighted Average Yield | 18.10% | 16.10% | |
Weighted Average Expected Life (Years) | [4] | 3 years 1 month 22 days | 3 years 6 months 29 days |
[1] | Represents the November 30, 2015 and 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 was 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. |
INVESTMENTS IN CONSUMER LOAN110
INVESTMENTS IN CONSUMER LOANS, EQUITY METHOD INVESTEES - Summary of Changes in Investments in Consumer Loans, Equity Method Investees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Method Investments, Consumer Loans [Roll Forward] | |||
Balance at beginning of period | $ 0 | ||
Balance at end of period | 0 | $ 0 | |
Consumer Loan, Equity Method Investees [Member] | |||
Equity Method Investments, Consumer Loans [Roll Forward] | |||
Distributions of earnings from equity method investees | 0 | (53,840) | $ (82,856) |
Tax withholding payments on behalf of New Residential, treated as non-cash distributions | 585 | 609 | |
Distributions in excess of basis, treated as gains, excluding tax withholding payments | 43,369 | 91,411 | |
Consumer Loan Investees [Member] | |||
Equity Method Investments, Consumer Loans [Roll Forward] | |||
Balance at beginning of period | 0 | 215,062 | |
Contributions to equity method investees | 0 | 0 | |
Distributions of earnings from equity method investees | 0 | (53,840) | |
Distributions of capital from equity method investees | 0 | (215,062) | |
Earnings from investments in consumer loan equity method investees | 0 | 53,840 | 82,856 |
Balance at end of period | $ 0 | $ 0 | $ 215,062 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) | Dec. 31, 2015 | Jan. 01, 2015 |
Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Secured borrowings | $ 200,000 | |
Repurchase Agreements [Member] | ||
Derivative [Line Items] | ||
Secured borrowings | 86,000,000 | |
Residential Mortgage Loans [Member] | ||
Derivative [Line Items] | ||
Secured borrowings | 1,800,000 | |
Non-agency RMBS Repurchase Agreements [Member] | Residential Mortgage Loans [Member] | ||
Derivative [Line Items] | ||
Secured borrowings | 116,800,000 | |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Carrying amount of derivatives | $ 32,400,000 | |
Not Designated as Hedging Instrument [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | $ 1,500,000,000 | |
Not Designated as Hedging Instrument [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | $ 750,000,000 |
DERIVATIVES - Schedule of Deriv
DERIVATIVES - Schedule of Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Derivative assets | $ 2,689 | $ 32,597 | |
Derivative liabilities | 13,443 | 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 Caps [Member] | |||
Derivative [Line Items] | |||
Derivative assets | 2,689 | 195 | |
TBAs [Member] | |||
Derivative [Line Items] | |||
Derivative liabilities | 2,058 | 4,985 | |
Interest Rate Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative liabilities | $ 11,385 | $ 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 De113
DERIVATIVES - Schedule of Derivatives - Notional Amount (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Real Estate Securities [Member] | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | $ 186,700 | ||
Not Designated as Hedging Instrument [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative liability, notional amount | $ 1,500,000 | ||
Not Designated as Hedging Instrument [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative liability, notional amount | 750,000 | ||
Not Designated as Hedging Instrument [Member] | Non-Performing Loans [Member] | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | [1] | 0 | 2,931 |
Not Designated as Hedging Instrument [Member] | Real Estate Securities [Member] | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | [2] | 0 | 186,694 |
Not Designated as Hedging Instrument [Member] | TBAs [Member] | Short [Member] | |||
Derivative [Line Items] | |||
Derivative liability, notional amount | [3] | 1,450,000 | 1,234,000 |
Not Designated as Hedging Instrument [Member] | TBAs [Member] | Long [Member] | |||
Derivative [Line Items] | |||
Derivative liability, notional amount | [3] | 750,000 | 0 |
Not Designated as Hedging Instrument [Member] | Interest Rate Caps [Member] | |||
Derivative [Line Items] | |||
Derivative asset, notional amount | [4] | 3,400,000 | 210,000 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | |||
Derivative [Line Items] | |||
Derivative liability, notional amount | [5] | $ 2,444,000 | $ 1,107,000 |
[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 0.50% for $650.0 million of notional, at 0.75% for $2,600.0 million of notional, and at 4.0% for $150.0 million of notional. | ||
[5] | Receive LIBOR and pay a fixed rate. |
DERIVATIVES - Schedule of De114
DERIVATIVES - Schedule of Derivatives - Notional Amount (Footnote) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) | Dec. 31, 2015 | Jan. 01, 2015 |
Derivative [Line Items] | ||
Notional amount of derivatives | $ 32,400,000 | |
Interest Rate Cap, 0.50% [Member] | ||
Derivative [Line Items] | ||
Derivative, cap interest rate | 0.50% | |
Notional amount of derivatives | $ 650,000,000 | |
Interest Rate Cap, 0.75% [Member] | ||
Derivative [Line Items] | ||
Derivative, cap interest rate | 0.75% | |
Notional amount of derivatives | $ 2,600,000,000 | |
Interest Rate Cap, 3.0% [Member] | ||
Derivative [Line Items] | ||
Derivative, cap interest rate | 4.00% | |
Notional amount of derivatives | $ 150,000,000 |
DERIVATIVES - Schedule of De115
DERIVATIVES - Schedule of Derivatives - Gain (Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Derivative [Line Items] | ||||
Other income (loss), net | $ (5,957) | $ (13,037) | $ 1,820 | |
Gain (loss) on settlement of investments, net | (44,563) | (36,210) | 0 | |
Total gains (losses) | (50,520) | (49,247) | 1,820 | |
Non-Performing Loans [Member] | ||||
Derivative [Line Items] | ||||
Other income (loss), net | [1] | 0 | (1,149) | 1,831 |
Gain (loss) on settlement of investments, net | [1] | 0 | 5,609 | 0 |
Real Estate Securities [Member] | ||||
Derivative [Line Items] | ||||
Other income (loss), net | [1] | 0 | 2,336 | (11) |
Gain (loss) on settlement of investments, net | [1] | 0 | 43 | 0 |
TBAs [Member] | ||||
Derivative [Line Items] | ||||
Other income (loss), net | (2,058) | (4,985) | 0 | |
Gain (loss) on settlement of investments, net | (27,142) | (33,638) | 0 | |
Interest Rate Caps [Member] | ||||
Derivative [Line Items] | ||||
Other income (loss), net | (1,749) | (4) | 0 | |
Gain (loss) on settlement of investments, net | (1,180) | 0 | 0 | |
Interest Rate Swaps [Member] | ||||
Derivative [Line Items] | ||||
Other income (loss), net | (2,150) | (9,235) | 0 | |
Gain (loss) on settlement of investments, net | (16,241) | (8,400) | 0 | |
U.S.T. Short Positions [Member] | ||||
Derivative [Line Items] | ||||
Gain (loss) on settlement of investments, net | $ 0 | $ 176 | $ 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. |
DERIVATIVES - Schedule of De116
DERIVATIVES - Schedule of Derivatives - Linked Transactions (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Linked transactions | $ 32,402 | ||
Derivative assets | $ 2,689 | 32,597 | |
Non-Performing Loans [Member] | |||
Derivative [Line Items] | |||
Linked transactions | [1] | 1,581 | |
Derivative assets | [2] | 0 | 312 |
Non-Performing Loans Repurchase Agreements Derivatives [Member] | |||
Derivative [Line Items] | |||
Linked transactions | [3] | (1,269) | |
Real Estate Securities [Member] | |||
Derivative [Line Items] | |||
Linked transactions | [4] | 116,739 | |
Derivative assets | [2] | $ 0 | 32,090 |
Real Estate Securities Repurchase Agreements Derivatives [Member] | |||
Derivative [Line Items] | |||
Linked transactions | [3] | $ (84,649) | |
[1] | Non-performing loans that had a UPB of $2.9 million as of December 31, 2014, which represented the notional amount of the linked transaction and accrued interest. | ||
[2] | 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. | ||
[3] | Represents carrying amount that approximates fair value. | ||
[4] | Real estate securities that had a current face amount of $186.7 million as of December 31, 2014, which represented the notional amount of the linked transaction. |
DERIVATIVES - Schedule of De117
DERIVATIVES - Schedule of Derivatives - Linked Transactions (Footnote) (Details) $ in Millions | Dec. 31, 2014USD ($) |
Non-Performing Loans [Member] | |
Derivative [Line Items] | |
UPB of Underlying Mortgages | $ 2.9 |
Real Estate Securities [Member] | |
Derivative [Line Items] | |
Face amount of real estate securities | $ 186.7 |
DEBT OBLIGATIONS - Schedule of
DEBT OBLIGATIONS - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | [2] | ||||
Debt Instrument [Line Items] | |||||||
Outstanding Face Amount | $ 11,305,998 | ||||||
Carrying Value | $ 11,292,622 | [1] | $ 6,057,853 | [1],[2] | $ 4,109,329 | ||
Weighted Average Funding Cost | 2.77% | ||||||
Weighted Average Life (Years) | 11 months 14 days | ||||||
Residential Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Value | $ 1,004,980 | 925,418 | [2] | 22,840 | |||
Servicer Advances [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Value | [3] | 7,047,061 | 2,885,784 | [2] | $ 2,390,778 | ||
Repurchase Agreements [Member] | Agency RMBS [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding Face Amount | [4],[5] | 1,683,305 | |||||
Carrying Value | [1],[4],[5] | $ 1,683,305 | 1,707,602 | ||||
Weighted Average Funding Cost | [4],[5] | 0.60% | |||||
Weighted Average Life (Years) | [4],[5] | 22 days | |||||
Repurchase Agreements [Member] | Agency RMBS [Member] | Collateral [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Weighted Average Life (Years) | [4],[5] | 7 months 12 days | |||||
Outstanding Face Amount of Collateral | [4],[5] | $ 1,673,125 | |||||
Amortized Cost Basis of Collateral | [4],[5] | 1,731,758 | |||||
Carrying Value of Collateral | [4],[5] | 1,730,586 | |||||
Repurchase Agreements [Member] | Non-Agency RMBS [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding Face Amount | [5],[6] | 1,333,852 | |||||
Carrying Value | [1],[5],[6] | $ 1,333,852 | 539,049 | ||||
Weighted Average Funding Cost | [5],[6] | 1.72% | |||||
Weighted Average Life (Years) | [5],[6] | 30 days | |||||
Repurchase Agreements [Member] | Non-Agency RMBS [Member] | Collateral [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Weighted Average Life (Years) | [5],[6] | 6 years 11 months 17 days | |||||
Outstanding Face Amount of Collateral | [5],[6] | $ 3,233,171 | |||||
Amortized Cost Basis of Collateral | [5],[6] | 1,535,350 | |||||
Carrying Value of Collateral | [5],[6] | 1,538,703 | |||||
Repurchase Agreements [Member] | Residential Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding Face Amount | [5],[7] | 908,811 | |||||
Carrying Value | [1],[5],[7] | $ 907,993 | 867,334 | ||||
Weighted Average Funding Cost | [5],[7] | 2.80% | |||||
Weighted Average Life (Years) | [5],[7] | 9 months 16 days | |||||
Repurchase Agreements [Member] | Residential Mortgage Loans [Member] | Collateral [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Weighted Average Life (Years) | [5],[7] | 3 years 2 months 24 days | |||||
Outstanding Face Amount of Collateral | [5],[7] | $ 1,318,603 | |||||
Amortized Cost Basis of Collateral | [5],[7] | 1,091,523 | |||||
Carrying Value of Collateral | [5],[7] | 1,075,816 | |||||
Repurchase Agreements [Member] | Real Estate Owned [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding Face Amount | [5],[8],[9] | 77,528 | |||||
Carrying Value | [1],[5],[8],[9] | $ 77,458 | 35,105 | ||||
Weighted Average Funding Cost | [5],[8],[9] | 3.05% | |||||
Weighted Average Life (Years) | [5],[8],[9] | 10 months 9 days | |||||
Repurchase Agreements [Member] | Real Estate Owned [Member] | Collateral [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Value of Collateral | [5],[8],[9] | $ 86,911 | |||||
Repurchase Agreements [Member] | Consumer Loan Investment [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding Face Amount | [10] | 40,446 | |||||
Carrying Value | [1],[10] | $ 40,446 | 0 | ||||
Weighted Average Funding Cost | [10] | 3.83% | |||||
Weighted Average Life (Years) | 3 months 3 days | ||||||
Repurchase Agreements [Member] | Consumer Loan Investment [Member] | Collateral [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Weighted Average Life (Years) | 3 years 1 month 22 days | ||||||
Carrying Value of Collateral | [10] | $ 0 | |||||
Repurchase Agreements [Member] | Total Repurchase Agreements [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding Face Amount | [10] | 4,043,942 | |||||
Carrying Value | [5] | $ 4,043,054 | 3,149,090 | [1] | |||
Weighted Average Funding Cost | [5] | 1.54% | |||||
Weighted Average Life (Years) | [5] | 2 months 30 days | |||||
Notes Payable [Member] | Residential Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding Face Amount | [11] | $ 19,529 | |||||
Carrying Value | [1],[11] | $ 19,529 | 22,194 | ||||
Weighted Average Funding Cost | [11] | 3.08% | |||||
Weighted Average Life (Years) | [11] | 9 months 16 days | |||||
Notes Payable [Member] | Residential Mortgage Loans [Member] | Collateral [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Weighted Average Life (Years) | [11] | 4 years 2 months 14 days | |||||
Outstanding Face Amount of Collateral | [11] | $ 34,423 | |||||
Amortized Cost Basis of Collateral | [11] | 21,113 | |||||
Carrying Value of Collateral | [11] | 19,560 | |||||
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% | ||||||
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 | [12] | 184,433 | |||||
Carrying Value | [1],[12] | $ 182,978 | 0 | ||||
Weighted Average Funding Cost | [12] | 5.67% | |||||
Weighted Average Life (Years) | 1 year 3 months 24 days | ||||||
Notes Payable [Member] | Secured Corporate Note [Member] | Collateral [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Weighted Average Life (Years) | 5 years 1 month 6 days | ||||||
Outstanding Face Amount of Collateral | [12] | $ 92,619,325 | |||||
Amortized Cost Basis of Collateral | [12] | 217,517 | |||||
Carrying Value of Collateral | [12] | 261,102 | |||||
Notes Payable [Member] | Servicer Advances [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding Face Amount | [13] | 7,058,094 | |||||
Carrying Value | [1],[13] | $ 7,047,061 | 2,885,784 | ||||
Weighted Average Funding Cost | [13] | 3.39% | |||||
Weighted Average Life (Years) | [13] | 1 year 4 months 7 days | |||||
Notes Payable [Member] | Servicer Advances [Member] | Collateral [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Weighted Average Life (Years) | [13] | 4 years 5 months 9 days | |||||
Outstanding Face Amount of Collateral | [13] | $ 7,578,110 | |||||
Amortized Cost Basis of Collateral | [13] | 7,400,068 | |||||
Carrying Value of Collateral | [13] | 7,426,794 | |||||
Notes Payable [Member] | Total Notes Payable [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding Face Amount | 7,262,056 | ||||||
Carrying Value | [1] | $ 7,249,568 | $ 2,908,763 | ||||
Weighted Average Funding Cost | 3.45% | ||||||
Weighted Average Life (Years) | 1 year 4 months 6 days | ||||||
[1] | Net of deferred financing costs associated with the adoption of ASU No. 2015-03 (Note 2). | ||||||
[2] | Excludes debt related to linked transactions (Note 10). | ||||||
[3] | New Residential net settles daily borrowings and repayments of the Notes Payable on its Servicer Advances. | ||||||
[4] | All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include approximately $1.5 billion of related trade and other receivables. | ||||||
[5] | These repurchase agreements had approximately $4.8 million of associated accrued interest payable as of December 31, 2015. | ||||||
[6] | All of the Non-Agency RMBS repurchase agreements have LIBOR-based floating interest rates. This includes repurchase agreements of $145.8 million on retained servicer advance bonds. | ||||||
[7] | All of these repurchase agreements have LIBOR-based floating interest rates. | ||||||
[8] | All of these repurchase agreements have LIBOR-based floating interest rates. | ||||||
[9] | Includes financing collateralized by receivables including claims from FHA on Ginnie Mae EBO loans for which foreclosure has been completed and for which New Residential have made or intend to make a claim on the FHA guarantee. | ||||||
[10] | The repurchase agreement bears interest equal to three-month LIBOR plus 3.50% and is collateralized by New Residential’s interest in consumer loans (Note 9). | ||||||
[11] | The note is payable to Nationstar and bears interest equal to one-month LIBOR plus 2.875%. | ||||||
[12] | 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 amount of the collateral represents the UPB of the residential mortgage loans underlying the Excess MSRs that secure this corporate note. | ||||||
[13] | $2.7 billion face amount of the notes have a fixed rate while the remaining notes bear interest equal to the sum of (i) a floating rate index rate equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 1.7% to 2.2%. |
DEBT OBLIGATIONS - Schedule 119
DEBT OBLIGATIONS - Schedule of Debt Obligations (Footnote) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | [2] | ||||
Debt Instrument [Line Items] | |||||||
Accrued interest payable | $ 18,268 | $ 7,857 | |||||
Carrying Value | 11,292,622 | [1] | 6,057,853 | [1],[2] | $ 4,109,329 | ||
Servicer Advances [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Value | [3] | 7,047,061 | 2,885,784 | [2] | 2,390,778 | ||
Residential Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Value | 1,004,980 | 925,418 | [2] | $ 22,840 | |||
Repurchase Agreements [Member] | Total Repurchase Agreements [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Accrued interest payable | 4,800 | ||||||
Carrying Value | [4] | 4,043,054 | 3,149,090 | [1] | |||
Repurchase Agreements [Member] | Agency RMBS Repurchase Agreements [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Value | [1],[4],[5] | 1,683,305 | 1,707,602 | ||||
Repurchase Agreements [Member] | Agency RMBS Repurchase Agreements [Member] | Trade and Other Receivables [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Collateral amount | 1,500,000 | ||||||
Repurchase Agreements [Member] | Non-Agency RMBS [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Value | [1],[4],[6] | 1,333,852 | 539,049 | ||||
Repurchase Agreements [Member] | Non-Agency RMBS [Member] | Retained Servicer Advance Bonds [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Value | 145,800 | ||||||
Repurchase Agreements [Member] | Consumer Loan Investment [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Value | [1],[7] | $ 40,446 | 0 | ||||
Repurchase Agreements [Member] | Consumer Loan Investment [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate spread | 3.50% | ||||||
Repurchase Agreements [Member] | Residential Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Value | [1],[4],[8] | $ 907,993 | 867,334 | ||||
Notes Payable [Member] | Secured Corporate Note [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Value | [1],[9] | $ 182,978 | 0 | ||||
Notes Payable [Member] | Secured Corporate Note [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] | |||||||
Carrying Value | [1],[10] | $ 7,047,061 | 2,885,784 | ||||
Face amount of fixed rate debt | $ 2,700,000 | ||||||
Notes Payable [Member] | Servicer Advances [Member] | London Interbank Offered Rate (LIBOR) [Member] | Lower Range [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate spread | 1.70% | ||||||
Notes Payable [Member] | Servicer Advances [Member] | London Interbank Offered Rate (LIBOR) [Member] | Upper Range [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate spread | 2.20% | ||||||
Notes Payable [Member] | Residential Mortgage Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Carrying Value | [1],[11] | $ 19,529 | $ 22,194 | ||||
Notes Payable [Member] | Residential Mortgage Loans [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate spread | 2.875% | ||||||
[1] | Net of deferred financing costs associated with the adoption of ASU No. 2015-03 (Note 2). | ||||||
[2] | Excludes debt related to linked transactions (Note 10). | ||||||
[3] | New Residential net settles daily borrowings and repayments of the Notes Payable on its Servicer Advances. | ||||||
[4] | These repurchase agreements had approximately $4.8 million of associated accrued interest payable as of December 31, 2015. | ||||||
[5] | All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include approximately $1.5 billion of related trade and other receivables. | ||||||
[6] | All of the Non-Agency RMBS repurchase agreements have LIBOR-based floating interest rates. This includes repurchase agreements of $145.8 million on retained servicer advance bonds. | ||||||
[7] | The repurchase agreement bears interest equal to three-month LIBOR plus 3.50% and is collateralized by New Residential’s interest in consumer loans (Note 9). | ||||||
[8] | All of these repurchase agreements have LIBOR-based floating interest rates. | ||||||
[9] | 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 amount of the collateral represents the UPB of the residential mortgage loans underlying the Excess MSRs that secure this corporate note. | ||||||
[10] | $2.7 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 1.7% to 2.2%. | ||||||
[11] | The note is payable to Nationstar and bears interest equal to one-month LIBOR plus 2.875%. |
DEBT OBLIGATIONS - Narrative (D
DEBT OBLIGATIONS - Narrative (Details) $ in Thousands | Oct. 02, 2015USD ($) | Dec. 31, 2015USD ($)agreement | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Oct. 13, 2015USD ($) | Oct. 01, 2015USD ($) | ||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 11,292,622 | [1] | $ 6,057,853 | [1],[2] | $ 4,109,329 | [2] | ||||
Amount released from restricted cash accounts | 14,270 | 3,920 | $ (2,790) | |||||||
Margin exposure | $ 11,305,998 | |||||||||
Percent decline in equity, first period | 50.00% | |||||||||
Decline in equity, first period | 12 months | |||||||||
Percent decline in equity, second period | 35.00% | |||||||||
Decline in equity, second period | 3 months | |||||||||
Ratio of indebtedness to tangible net worth | 4 | |||||||||
Total Repurchase Agreements [Member] | Repurchase Agreements [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | [3] | $ 4,043,054 | $ 3,149,090 | [1] | ||||||
Margin exposure | [4] | 4,043,942 | ||||||||
HSART [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Surplus servicer advance commitments | $ 4,000,000 | |||||||||
Amount released from restricted cash accounts | $ 92,700 | |||||||||
HSART [Member] | General and Administrative Expense [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Liability for settlement agreement | $ 9,100 | |||||||||
HSART [Member] | Term Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 2,500,000 | $ 2,500,000 | ||||||||
Stockholders' Equity, Total [Member] | Counterpary Concentration Risk Exceeding 10% [Member] | Repurchase Agreements [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of outstanding repurchase agreements | agreement | 0 | |||||||||
[1] | Net of deferred financing costs associated with the adoption of ASU No. 2015-03 (Note 2). | |||||||||
[2] | Excludes debt related to linked transactions (Note 10). | |||||||||
[3] | These repurchase agreements had approximately $4.8 million of associated accrued interest payable as of December 31, 2015. | |||||||||
[4] | The repurchase agreement bears interest equal to three-month LIBOR plus 3.50% and is collateralized by New Residential’s interest in consumer loans (Note 9). |
DEBT OBLIGATIONS - Schedule 121
DEBT OBLIGATIONS - Schedule of Debt Obligations - Carrying Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Debt Instrument [Roll Forward] | |||||||
Beginning balance | [1] | $ 6,057,853 | [2] | $ 4,109,329 | |||
Borrowings | 9,607,475 | 6,412,137 | $ 2,634,990 | ||||
Repayments | (8,798,578) | (4,869,799) | (2,271,765) | ||||
Ending balance | 11,292,622 | [2] | 6,057,853 | [1],[2] | 4,109,329 | [1] | |
Servicer Advances [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Beginning balance | [1],[3] | 2,885,784 | 2,390,778 | ||||
Ending balance | [3] | 7,047,061 | 2,885,784 | [1] | 2,390,778 | [1] | |
Real Estate Securities [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Beginning balance | [1] | 2,246,651 | 1,620,711 | ||||
Ending balance | 3,017,157 | 2,246,651 | [1] | 1,620,711 | [1] | ||
Real Estate Loans and REO [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Beginning balance | [1] | 925,418 | 22,840 | ||||
Ending balance | 1,004,980 | 925,418 | [1] | 22,840 | [1] | ||
Other Debt [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Beginning balance | [1] | 0 | 75,000 | ||||
Ending balance | 223,424 | 0 | [1] | $ 75,000 | [1] | ||
ASU 2014-11 [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Retrospective adjustment for adoption of ASU | 2,310 | ||||||
Adoption of ASU | (146,741) | 0 | |||||
Repurchase Agreements [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Borrowings | 9,607,475 | 6,299,735 | |||||
Repayments | (8,798,578) | (4,771,356) | |||||
Repurchase Agreements [Member] | Servicer Advances [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Borrowings | [3] | 0 | 0 | ||||
Repayments | [3] | 0 | 0 | ||||
Repurchase Agreements [Member] | Real Estate Securities [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Borrowings | 7,649,261 | 4,122,434 | |||||
Repayments | (6,963,404) | (3,496,494) | |||||
Repurchase Agreements [Member] | Real Estate Loans and REO [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Beginning balance | [2],[4],[5] | 867,334 | |||||
Borrowings | 1,915,056 | 2,027,301 | |||||
Repayments | (1,832,462) | (1,124,862) | |||||
Ending balance | [2],[4],[5] | 907,993 | 867,334 | ||||
Repurchase Agreements [Member] | Other Debt [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Borrowings | 43,158 | 150,000 | |||||
Repayments | (2,712) | (150,000) | |||||
Repurchase Agreements [Member] | ASU 2015-03 [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Adoption of ASU | (888) | ||||||
Repurchase Agreements [Member] | ASU 2015-03 [Member] | Servicer Advances [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Adoption of ASU | [3] | 0 | |||||
Repurchase Agreements [Member] | ASU 2015-03 [Member] | Real Estate Securities [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Adoption of ASU | 0 | ||||||
Repurchase Agreements [Member] | ASU 2015-03 [Member] | Real Estate Loans and REO [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Adoption of ASU | (888) | ||||||
Repurchase Agreements [Member] | ASU 2015-03 [Member] | Other Debt [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Adoption of ASU | 0 | ||||||
Repurchase Agreements [Member] | ASU 2014-11 [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Modified retrospective adjustment for adoption of ASU | 85,955 | ||||||
Repurchase Agreements [Member] | ASU 2014-11 [Member] | Servicer Advances [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Modified retrospective adjustment for adoption of ASU | [3] | 0 | |||||
Repurchase Agreements [Member] | ASU 2014-11 [Member] | Real Estate Securities [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Modified retrospective adjustment for adoption of ASU | 84,649 | ||||||
Repurchase Agreements [Member] | ASU 2014-11 [Member] | Real Estate Loans and REO [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Modified retrospective adjustment for adoption of ASU | 1,306 | ||||||
Repurchase Agreements [Member] | ASU 2014-11 [Member] | Other Debt [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Modified retrospective adjustment for adoption of ASU | 0 | ||||||
Notes Payable [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Borrowings | 11,634,288 | 5,841,474 | |||||
Repayments | (7,286,860) | (5,416,883) | |||||
Notes Payable [Member] | Servicer Advances [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Beginning balance | [2],[6] | 2,885,784 | |||||
Borrowings | [3] | 10,780,237 | 5,840,232 | ||||
Repayments | [3] | (6,612,372) | (5,340,780) | ||||
Ending balance | [2],[6] | 7,047,061 | 2,885,784 | ||||
Notes Payable [Member] | Real Estate Securities [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Borrowings | 0 | 0 | |||||
Repayments | 0 | 0 | |||||
Notes Payable [Member] | Real Estate Loans and REO [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Beginning balance | [2],[7] | 22,194 | |||||
Borrowings | 1,632 | 1,242 | |||||
Repayments | (5,082) | (1,103) | |||||
Ending balance | [2],[7] | 19,529 | 22,194 | ||||
Notes Payable [Member] | Other Debt [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Borrowings | 852,419 | 0 | |||||
Repayments | (669,406) | (75,000) | |||||
Notes Payable [Member] | ASU 2015-03 [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Retrospective adjustment for adoption of ASU | (4,446) | ||||||
Adoption of ASU | (6,623) | ||||||
Notes Payable [Member] | ASU 2015-03 [Member] | Servicer Advances [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Retrospective adjustment for adoption of ASU | [3] | (4,446) | |||||
Adoption of ASU | [3] | (6,588) | |||||
Notes Payable [Member] | ASU 2015-03 [Member] | Real Estate Securities [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Retrospective adjustment for adoption of ASU | 0 | ||||||
Adoption of ASU | 0 | ||||||
Notes Payable [Member] | ASU 2015-03 [Member] | Real Estate Loans and REO [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Retrospective adjustment for adoption of ASU | 0 | ||||||
Adoption of ASU | 0 | ||||||
Notes Payable [Member] | ASU 2015-03 [Member] | Other Debt [Member] | |||||||
Debt Instrument [Roll Forward] | |||||||
Retrospective adjustment for adoption of ASU | $ 0 | ||||||
Adoption of ASU | $ (35) | ||||||
[1] | Excludes debt related to linked transactions (Note 10). | ||||||
[2] | Net of deferred financing costs associated with the adoption of ASU No. 2015-03 (Note 2). | ||||||
[3] | New Residential net settles daily borrowings and repayments of the Notes Payable on its Servicer Advances. | ||||||
[4] | All of these repurchase agreements have LIBOR-based floating interest rates. | ||||||
[5] | These repurchase agreements had approximately $4.8 million of associated accrued interest payable as of December 31, 2015. | ||||||
[6] | $2.7 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 1.7% to 2.2%. | ||||||
[7] | The note is payable to Nationstar and bears interest equal to one-month LIBOR plus 2.875%. |
DEBT OBLIGATIONS - Schedule 122
DEBT OBLIGATIONS - Schedule of Contractual Maturities of Debt Obligations (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Debt maturing in: | |
2,016 | $ 6,478,312 |
2,017 | 4,459,306 |
2,018 | 368,380 |
Total | 11,305,998 |
Nonrecourse [Member] | |
Debt maturing in: | |
2,016 | 2,754,360 |
2,017 | 3,996,400 |
2,018 | 368,380 |
Total | 7,119,140 |
Recourse [Member] | |
Debt maturing in: | |
2,016 | 3,723,952 |
2,017 | 462,906 |
2,018 | 0 |
Total | $ 4,186,858 |
DEBT OBLIGATIONS - Schedule 123
DEBT OBLIGATIONS - Schedule of Borrowing Capacity (Details) $ in Thousands | Dec. 31, 2015USD ($) | |
Real Estate Loans and REO [Member] | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 2,495,000 | |
Balance Outstanding | 986,339 | |
Available Financing | 1,508,661 | |
Servicer Advances [Member] | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | 8,524,183 | [1] |
Balance Outstanding | 7,058,094 | [1] |
Available Financing | 1,466,089 | [1] |
Debt Borrowing Capacity [Member] | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | 11,019,183 | |
Balance Outstanding | 8,044,433 | |
Available Financing | $ 2,974,750 | |
[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 0.5% fee on the unused borrowing capacity. Excludes borrowing capacity and outstanding debt for retained non-agency bonds with a current face amount of $175.8 million. |
DEBT OBLIGATIONS - Schedule 124
DEBT OBLIGATIONS - Schedule of Borrowing Capacity (Footnote) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |
Outstanding Face Amount | $ 11,305,998 |
Non-Agency Bonds [Member] | |
Debt Instrument [Line Items] | |
Outstanding Face Amount | $ 175,800 |
Servicer Advances [Member] | |
Debt Instrument [Line Items] | |
Unused borrowing capacity fee | 0.50% |
FAIR VALUE OF FINANCIAL INST125
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Carrying Values and Fair Values of Financial Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | ||
Investments in: | ||||
Real estate securities, available-for-sale | $ 2,501,881 | $ 2,463,163 | ||
Non-hedge derivatives | 2,689 | 32,597 | ||
Restricted cash | 94,702 | 29,418 | ||
Liabilities: | ||||
Repurchase agreements | 4,043,054 | 3,149,090 | ||
Derivative liabilities | 13,443 | 14,220 | ||
Recurring Basis [Member] | ||||
Investments in: | ||||
Excess mortgage servicing rights, at fair value, principal balance | 329,367,971 | [1] | 102,481,758 | [2] |
Excess mortgage servicing rights, equity method investees, at fair value, principal balance | 73,058,050 | [1] | 146,257,821 | [2] |
Servicer advances, principal balance | 7,578,110 | 3,102,492 | ||
Real estate securities, available-for-sale, principal balance | 4,418,552 | 3,542,511 | ||
Residential mortgage loans, held-for-investment, principal balance | 506,135 | 69,581 | ||
Residential mortgage loans, held-for-sale, principal balance | 859,714 | 1,364,216 | ||
Non-hedge derivatives, notional amount | 3,400,000 | 399,625 | [3] | |
Cash and cash equivalents, principal balance | 249,936 | 212,985 | ||
Restricted cash, principal balance | 94,702 | 29,418 | ||
Liabilities: | ||||
Repurchase agreements, principal balance | 4,043,942 | 3,149,090 | ||
Notes payable, principal balance | 7,262,056 | 2,913,209 | ||
Derivative liabilities, notional amount | 4,644,000 | 2,341,000 | ||
Recurring Basis [Member] | Level 1 [Member] | ||||
Investments in: | ||||
Excess mortgage servicing rights, at fair value | 0 | [1] | 0 | [2] |
Excess mortgage servicing rights, equity method investees, at fair value | 0 | [1] | 0 | [2] |
Servicer advances | 0 | 0 | ||
Real estate securities, available-for-sale | 0 | 0 | ||
Residential mortgage loans, held-for-investment | 0 | 0 | ||
Residential mortgage loans, held-for-sale | 0 | 0 | ||
Non-hedge derivatives | 0 | 0 | [3] | |
Cash and cash equivalents | 249,936 | 212,985 | ||
Restricted cash | 94,702 | 29,418 | ||
Assets, fair value | 344,638 | 242,403 | ||
Liabilities: | ||||
Repurchase agreements | 0 | 0 | ||
Notes payable | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Liabilities, fair value | 0 | 0 | ||
Recurring Basis [Member] | Level 2 [Member] | ||||
Investments in: | ||||
Excess mortgage servicing rights, at fair value | 0 | [1] | 0 | [2] |
Excess mortgage servicing rights, equity method investees, at fair value | 0 | [1] | 0 | [2] |
Servicer advances | 0 | 0 | ||
Real estate securities, available-for-sale | 917,598 | 1,740,163 | ||
Residential mortgage loans, held-for-investment | 0 | 0 | ||
Residential mortgage loans, held-for-sale | 0 | 0 | ||
Non-hedge derivatives | 2,689 | 195 | [3] | |
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Assets, fair value | 920,287 | 1,740,358 | ||
Liabilities: | ||||
Repurchase agreements | 4,043,942 | 2,246,651 | ||
Notes payable | 0 | 822,587 | ||
Derivative liabilities | 13,443 | 14,220 | ||
Liabilities, fair value | 4,057,385 | 3,083,458 | ||
Recurring Basis [Member] | Level 3 [Member] | ||||
Investments in: | ||||
Excess mortgage servicing rights, at fair value | 1,581,517 | [1] | 417,733 | [2] |
Excess mortgage servicing rights, equity method investees, at fair value | 217,221 | [1] | 330,876 | [2] |
Servicer advances | 7,426,794 | 3,270,839 | ||
Real estate securities, available-for-sale | 1,584,283 | 723,000 | ||
Residential mortgage loans, held-for-investment | 330,433 | 47,913 | ||
Residential mortgage loans, held-for-sale | 784,750 | 1,140,070 | ||
Non-hedge derivatives | 0 | 32,402 | [3] | |
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Assets, fair value | 11,924,998 | 5,962,833 | ||
Liabilities: | ||||
Repurchase agreements | 0 | 902,439 | ||
Notes payable | 7,260,909 | 2,092,814 | ||
Derivative liabilities | 0 | 0 | ||
Liabilities, fair value | 7,260,909 | 2,995,253 | ||
Recurring Basis [Member] | Carrying Value [Member] | ||||
Investments in: | ||||
Excess mortgage servicing rights, at fair value | 1,581,517 | [1] | 417,733 | [2] |
Excess mortgage servicing rights, equity method investees, at fair value | 217,221 | [1] | 330,876 | [2] |
Servicer advances | 7,426,794 | 3,270,839 | ||
Real estate securities, available-for-sale | 2,501,881 | 2,463,163 | ||
Residential mortgage loans, held-for-investment | 330,178 | 47,838 | ||
Residential mortgage loans, held-for-sale | 776,681 | 1,126,439 | ||
Non-hedge derivatives | 2,689 | 32,597 | [3] | |
Cash and cash equivalents | 249,936 | 212,985 | ||
Restricted cash | 94,702 | 29,418 | ||
Assets, fair value | 13,181,599 | 7,931,888 | ||
Liabilities: | ||||
Repurchase agreements | 4,043,054 | 3,149,090 | ||
Notes payable | 7,249,568 | 2,908,763 | ||
Derivative liabilities | 13,443 | 14,220 | ||
Liabilities, fair value | 11,306,065 | 6,072,073 | ||
Recurring Basis [Member] | Fair Value [Member] | ||||
Investments in: | ||||
Excess mortgage servicing rights, at fair value | 1,581,517 | [1] | 417,733 | [2] |
Excess mortgage servicing rights, equity method investees, at fair value | 217,221 | [1] | 330,876 | [2] |
Servicer advances | 7,426,794 | 3,270,839 | ||
Real estate securities, available-for-sale | 2,501,881 | 2,463,163 | ||
Residential mortgage loans, held-for-investment | 330,433 | 47,913 | ||
Residential mortgage loans, held-for-sale | 784,750 | 1,140,070 | ||
Non-hedge derivatives | 2,689 | 32,597 | [3] | |
Cash and cash equivalents | 249,936 | 212,985 | ||
Restricted cash | 94,702 | 29,418 | ||
Assets, fair value | 13,189,923 | 7,945,594 | ||
Liabilities: | ||||
Repurchase agreements | 4,043,942 | 3,149,090 | ||
Notes payable | 7,260,909 | 2,915,401 | ||
Derivative liabilities | 13,443 | 14,220 | ||
Liabilities, fair value | $ 11,318,294 | $ 6,078,711 | ||
[1] | The notional amount represents the total unpaid principal balance of the mortgage loans underlying the Excess MSRs. New Residential does not receive an excess mortgage servicing amount on non-performing loans in Agency portfolios. | |||
[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. | |||
[3] | The notional amount for formerly linked transactions consisted of the aggregate UPB amounts of the loans and securities that comprised the asset portion of the linked transaction. |
FAIR VALUE OF FINANCIAL INST126
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 | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Gains (losses) included in net income | |||||||
Included in gain (loss) on settlement of investments, net | $ (17,207) | $ 35,487 | $ 52,657 | ||||
Recurring Basis [Member] | Level 3 [Member] | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||
Balance, beginning | 4,774,850 | 3,948,819 | |||||
Transfers from Level 3 | [1] | 0 | 0 | ||||
Transfers to Level 3 | [1] | 0 | 0 | ||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [1] | 0 | |||||
Gains (losses) included in net income | |||||||
Included in other-than-temporary impairment (''OTTI'') on securities | [2] | (5,788) | (927) | ||||
Included in change in fair value of investments in excess mortgage servicing rights | [2] | 38,643 | 41,615 | ||||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | [2] | 31,160 | 57,280 | ||||
Included in change in fair value of investments in Servicer Advances | (57,491) | 84,217 | |||||
Included in gain (loss) on settlement of investments, net | 3,061 | 66,205 | |||||
Included in other income (loss), net | [2] | 3,878 | 2,344 | ||||
Gains (losses) included in other comprehensive income | [3] | (6,701) | 8,819 | ||||
Interest income | 556,513 | 257,099 | |||||
Purchases, sales, repayments and transfers | |||||||
Purchases/contributions | 22,502,710 | 8,419,913 | |||||
Proceeds from sales | (425,761) | (1,314,220) | |||||
Proceeds from repayments | (16,689,689) | (6,780,722) | |||||
Settlements | [4] | (15,592) | |||||
Other | 0 | ||||||
Balance, ending | 10,809,815 | 4,774,850 | 3,948,819 | ||||
Recurring Basis [Member] | Level 3 [Member] | De-linked transactions [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 | [5] | 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 | 35,926 | |||||
Transfers from Level 3 | [1] | 0 | 0 | ||||
Transfers to Level 3 | [1] | $ 0 | 0 | ||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [1] | ||||||
Gains (losses) included in net income | |||||||
Included in other-than-temporary impairment (''OTTI'') on securities | [2] | $ 0 | 0 | ||||
Included in change in fair value of investments in excess mortgage servicing rights | [2] | 0 | 0 | ||||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | [2] | 0 | 0 | ||||
Included in change in fair value of investments in Servicer Advances | 0 | 0 | |||||
Included in gain (loss) on settlement of investments, net | 0 | 5,652 | |||||
Included in other income (loss), net | [2] | 0 | 1,187 | ||||
Gains (losses) included in other comprehensive income | [3] | 0 | 0 | ||||
Interest income | 0 | 0 | |||||
Purchases, sales, repayments and transfers | |||||||
Purchases/contributions | 0 | 39,538 | |||||
Proceeds from sales | 0 | (25,240) | |||||
Proceeds from repayments | $ 0 | (9,069) | |||||
Settlements | [4] | (15,592) | |||||
Other | |||||||
Balance, ending | $ 0 | 32,402 | 35,926 | ||||
Recurring Basis [Member] | Level 3 [Member] | Linked Transactions [Member] | De-linked transactions [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 | [5] | (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 | 570,425 | |||||
Transfers from Level 3 | [1] | 0 | 0 | ||||
Transfers to Level 3 | [1] | $ 0 | 0 | ||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [1] | ||||||
Gains (losses) included in net income | |||||||
Included in other-than-temporary impairment (''OTTI'') on securities | [2] | $ (5,788) | (927) | ||||
Included in change in fair value of investments in excess mortgage servicing rights | [2] | 0 | 0 | ||||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | [2] | 0 | 0 | ||||
Included in change in fair value of investments in Servicer Advances | 0 | 0 | |||||
Included in gain (loss) on settlement of investments, net | 3,061 | 60,553 | |||||
Included in other income (loss), net | [2] | 879 | 0 | ||||
Gains (losses) included in other comprehensive income | [3] | (6,701) | 8,819 | ||||
Interest income | 69,632 | 17,713 | |||||
Purchases, sales, repayments and transfers | |||||||
Purchases/contributions | 1,288,901 | 1,455,996 | |||||
Proceeds from sales | (425,761) | (1,288,980) | |||||
Proceeds from repayments | (179,772) | (100,599) | |||||
Settlements | [4] | 0 | |||||
Other | 0 | ||||||
Balance, ending | 1,584,283 | 723,000 | 570,425 | ||||
Recurring Basis [Member] | Level 3 [Member] | Non-Agency RMBS [Member] | De-linked transactions [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 | [5] | 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 | 2,665,551 | |||||
Transfers from Level 3 | [1] | 0 | 0 | ||||
Transfers to Level 3 | [1] | $ 0 | 0 | ||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [1] | ||||||
Gains (losses) included in net income | |||||||
Included in other-than-temporary impairment (''OTTI'') on securities | [2] | $ 0 | 0 | ||||
Included in change in fair value of investments in excess mortgage servicing rights | [2] | 0 | 0 | ||||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | [2] | 0 | 0 | ||||
Included in change in fair value of investments in Servicer Advances | (57,491) | 84,217 | |||||
Included in gain (loss) on settlement of investments, net | 0 | 0 | |||||
Included in other income (loss), net | [2] | 0 | 0 | ||||
Gains (losses) included in other comprehensive income | [3] | 0 | 0 | ||||
Interest income | 352,316 | 190,206 | |||||
Purchases, sales, repayments and transfers | |||||||
Purchases/contributions | 20,042,582 | 6,830,266 | |||||
Proceeds from sales | 0 | 0 | |||||
Proceeds from repayments | $ (16,181,452) | (6,499,401) | |||||
Settlements | [4] | 0 | |||||
Other | |||||||
Balance, ending | $ 7,426,794 | 3,270,839 | 2,665,551 | ||||
Recurring Basis [Member] | Level 3 [Member] | Servicer Advances [Member] | De-linked transactions [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 | [5] | 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 | [6] | 217,519 | 144,660 | ||||
Transfers from Level 3 | [1],[6] | 0 | 0 | ||||
Transfers to Level 3 | [1],[6] | 0 | 0 | ||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [1],[6] | 0 | |||||
Gains (losses) included in net income | |||||||
Included in other-than-temporary impairment (''OTTI'') on securities | [2],[6] | 0 | 0 | ||||
Included in change in fair value of investments in excess mortgage servicing rights | [2],[6] | (3,080) | 24,265 | ||||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | [2],[6] | 0 | 0 | ||||
Included in change in fair value of investments in Servicer Advances | [6] | 0 | 0 | ||||
Included in gain (loss) on settlement of investments, net | [6] | 0 | 0 | ||||
Included in other income (loss), net | [2],[6] | 2,852 | 1,157 | ||||
Gains (losses) included in other comprehensive income | [3],[6] | 0 | 0 | ||||
Interest income | [6] | 30,742 | 22,451 | ||||
Purchases, sales, repayments and transfers | |||||||
Purchases/contributions | [6] | 254,149 | 66,197 | ||||
Proceeds from sales | [6] | 0 | 0 | ||||
Proceeds from repayments | [6] | $ (64,981) | (41,211) | ||||
Settlements | [4],[6] | 0 | |||||
Other | [6] | ||||||
Balance, ending | $ 437,201 | 217,519 | [6] | 144,660 | [6] | ||
Recurring Basis [Member] | Level 3 [Member] | MSRs Agency [Member] | De-linked transactions [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 | [5],[6] | 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 | [6],[7] | 232,618 | [4] | 245,399 | |||
Transfers from Level 3 | [1],[6],[7] | 0 | 0 | ||||
Transfers to Level 3 | [1],[6],[7] | 0 | 0 | ||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [1],[6],[7] | 0 | |||||
Gains (losses) included in net income | |||||||
Included in other-than-temporary impairment (''OTTI'') on securities | [2],[6],[7] | 0 | 0 | ||||
Included in change in fair value of investments in excess mortgage servicing rights | [2],[6],[7] | 0 | 0 | ||||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | [2],[6],[7] | 31,160 | 40,120 | ||||
Included in change in fair value of investments in Servicer Advances | [6],[7] | 0 | 0 | ||||
Included in gain (loss) on settlement of investments, net | [6],[7] | 0 | 0 | ||||
Included in other income (loss), net | [2],[6],[7] | 0 | 0 | ||||
Gains (losses) included in other comprehensive income | [3],[6],[7] | 0 | 0 | ||||
Interest income | [6],[7] | 0 | 0 | ||||
Purchases, sales, repayments and transfers | |||||||
Purchases/contributions | [6],[7] | 0 | 0 | ||||
Proceeds from sales | [6],[7] | 0 | 0 | ||||
Proceeds from repayments | [6],[7] | $ (46,557) | (52,901) | ||||
Settlements | [4],[6],[7] | 0 | |||||
Other | [6],[7] | ||||||
Balance, ending | $ 217,221 | 232,618 | [4],[6],[7] | 245,399 | [6],[7] | ||
Recurring Basis [Member] | Level 3 [Member] | MSRs Agency [Member] | Excess MSRs Investees [Member] | De-linked transactions [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 | [5],[6],[7] | 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 | [6] | 200,214 | 179,491 | ||||
Transfers from Level 3 | [1],[6] | 0 | 0 | ||||
Transfers to Level 3 | [1],[6] | 0 | 0 | ||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [1],[6] | 98,258 | |||||
Gains (losses) included in net income | |||||||
Included in other-than-temporary impairment (''OTTI'') on securities | [2],[6] | 0 | 0 | ||||
Included in change in fair value of investments in excess mortgage servicing rights | [2],[6] | 41,723 | 17,350 | ||||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | [2],[6] | 0 | 0 | ||||
Included in change in fair value of investments in Servicer Advances | [6] | 0 | 0 | ||||
Included in gain (loss) on settlement of investments, net | [6] | 0 | 0 | ||||
Included in other income (loss), net | [2],[6] | 147 | 0 | ||||
Gains (losses) included in other comprehensive income | [3],[6] | 0 | 0 | ||||
Interest income | [6] | 103,823 | 26,729 | ||||
Purchases, sales, repayments and transfers | |||||||
Purchases/contributions | [6] | 917,078 | 27,916 | ||||
Proceeds from sales | [6] | 0 | 0 | ||||
Proceeds from repayments | [6] | $ (216,927) | (51,272) | ||||
Settlements | [4],[6] | 0 | |||||
Other | [6] | ||||||
Balance, ending | $ 1,144,316 | 200,214 | [6] | 179,491 | [6] | ||
Recurring Basis [Member] | Level 3 [Member] | MSRs Non-Agency [Member] | De-linked transactions [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 | [5],[6] | 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 | [6],[7] | 98,258 | [4] | 107,367 | |||
Transfers from Level 3 | [1],[6],[7] | 0 | 0 | ||||
Transfers to Level 3 | [1],[6],[7] | 0 | 0 | ||||
Transfers from investments in excess mortgage servicing rights, equity method investees, to investments in excess mortgage servicing rights | [1],[6],[7] | (98,258) | |||||
Gains (losses) included in net income | |||||||
Included in other-than-temporary impairment (''OTTI'') on securities | [2],[6],[7] | 0 | 0 | ||||
Included in change in fair value of investments in excess mortgage servicing rights | [2],[6],[7] | 0 | 0 | ||||
Included in change in fair value of investments in excess mortgage servicing rights, equity method investees | [2],[6],[7] | 0 | 17,160 | ||||
Included in change in fair value of investments in Servicer Advances | [6],[7] | 0 | 0 | ||||
Included in gain (loss) on settlement of investments, net | [6],[7] | 0 | 0 | ||||
Included in other income (loss), net | [2],[6],[7] | 0 | 0 | ||||
Gains (losses) included in other comprehensive income | [3],[6],[7] | 0 | 0 | ||||
Interest income | [6],[7] | 0 | 0 | ||||
Purchases, sales, repayments and transfers | |||||||
Purchases/contributions | [6],[7] | 0 | 0 | ||||
Proceeds from sales | [6],[7] | 0 | 0 | ||||
Proceeds from repayments | [6],[7] | $ 0 | (26,269) | ||||
Settlements | [4],[6],[7] | 0 | |||||
Other | [6],[7] | ||||||
Balance, ending | $ 0 | $ 98,258 | [4],[6],[7] | $ 107,367 | [6],[7] | ||
Recurring Basis [Member] | Level 3 [Member] | MSRs Non-Agency [Member] | Excess MSRs Investees [Member] | De-linked transactions [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 | [5],[6],[7] | $ 0 | |||||
[1] | Transfers are assumed to occur at the beginning of the respective period. | ||||||
[2] | 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 and realized gains (losses) recorded during the period. | ||||||
[3] | These gains (losses) were included in net unrealized gain (loss) on securities in the Consolidated Statements of Comprehensive Income. | ||||||
[4] | Includes value of 1) residential mortgage loans transferred to REO net of associated repurchase financing agreements, and 2) residential mortgage loans no longer treated as linked transactions due to repayment of associated repurchase financing. | ||||||
[5] | See Note 10 for a discussion of transactions formerly accounted for as linked transactions. | ||||||
[6] | Includes the recapture agreement for each respective pool. | ||||||
[7] | 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 INST127
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Financial Assets Measured at Fair Value on a Recurring Basis using Level 3 Inputs (Footnote) (Details) | Dec. 31, 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 INST128
FAIR VALUE OF FINANCIAL INSTRUMENTS - Summary of Certain Information Regarding Weighted Average Inputs used in Valuing Excess MSRs Owned Directly and through Equity Method Investees (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
MSRs [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2] | 10.20% | 12.10% |
Delinquency | [2],[3] | 4.20% | 6.20% |
Recapture Rate | [2],[4] | 13.60% | 23.10% |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 0.0017 | 0.0018 |
Directly Held [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2] | 10.00% | 11.40% |
Delinquency | [2],[3] | 3.80% | 5.50% |
Recapture Rate | [2],[4] | 9.50% | 20.70% |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 0.0016 | 0.0018 |
Held through Equity Method Investees [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2] | 10.80% | 12.50% |
Delinquency | [2],[3] | 5.60% | 6.30% |
Recapture Rate | [2],[4] | 29.00% | 24.60% |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 0.0020 | 0.0017 |
Agency [Member] | Directly Held [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2] | 10.00% | 10.60% |
Delinquency | [2],[3] | 3.80% | 5.50% |
Recapture Rate | [2],[4] | 27.40% | 30.10% |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 0.0021 | 0.0022 |
Agency [Member] | Directly Held [Member] | Original Pools [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2] | 10.70% | |
Delinquency | [2],[3] | 3.50% | |
Recapture Rate | [2],[4] | 29.50% | |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 0.0021 | |
Agency [Member] | Directly Held [Member] | Recaptured Pools [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2] | 7.50% | |
Delinquency | [2],[3] | 4.90% | |
Recapture Rate | [2],[4] | 20.00% | |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 0.0020 | |
Agency [Member] | Directly Held [Member] | Original and Recaptured Pools [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2] | 11.00% | |
Delinquency | [2],[3] | 5.60% | |
Recapture Rate | [2],[4] | 31.60% | |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 0.0022 | |
Agency [Member] | Directly Held [Member] | Recapture Agreement [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2] | 7.60% | 8.00% |
Delinquency | [2],[3] | 4.90% | 5.00% |
Recapture Rate | [2],[4] | 20.00% | 19.90% |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 0.0022 | 0.0020 |
Agency [Member] | Held through Equity Method Investees [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2] | 12.30% | |
Delinquency | [2],[3] | 6.30% | |
Recapture Rate | [2],[4] | 30.60% | |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 0.0020 | |
Agency [Member] | Held through Equity Method Investees [Member] | Original Pools [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2] | 12.60% | |
Delinquency | [2],[3] | 5.90% | |
Recapture Rate | [2],[4] | 34.30% | |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 0.0019 | |
Agency [Member] | Held through Equity Method Investees [Member] | Recaptured Pools [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2] | 7.70% | |
Delinquency | [2],[3] | 5.00% | |
Recapture Rate | [2],[4] | 20.00% | |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 0.0023 | |
Agency [Member] | Held through Equity Method Investees [Member] | Original and Recaptured Pools [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2] | 13.30% | |
Delinquency | [2],[3] | 6.60% | |
Recapture Rate | [2],[4] | 33.10% | |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 0.0019 | |
Agency [Member] | Held through Equity Method Investees [Member] | Recapture Agreement [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2] | 7.70% | 8.00% |
Delinquency | [2],[3] | 4.90% | 5.00% |
Recapture Rate | [2],[4] | 20.00% | 20.00% |
Excess Mortgage Servicing Amount (bps) | [2],[5] | 0.0023 | 0.0023 |
Non-Agency [Member] | Directly Held [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2],[6] | 10.00% | 12.30% |
Recapture Rate | [2],[4],[6] | 2.60% | 10.50% |
Excess Mortgage Servicing Amount (bps) | [2],[5],[6] | 0.0014 | 0.0015 |
Non-Agency [Member] | Directly Held [Member] | Original Pools [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2],[6] | 12.50% | |
Recapture Rate | [2],[4],[6] | 10.20% | |
Excess Mortgage Servicing Amount (bps) | [2],[5],[6] | 0.0014 | |
Non-Agency [Member] | Directly Held [Member] | Recaptured Pools [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2],[6] | 7.50% | |
Recapture Rate | [2],[4],[6] | 20.00% | |
Excess Mortgage Servicing Amount (bps) | [2],[5],[6] | 0.0020 | |
Non-Agency [Member] | Directly Held [Member] | Original and Recaptured Pools [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2],[6] | 12.50% | |
Recapture Rate | [2],[4],[6] | 10.00% | |
Excess Mortgage Servicing Amount (bps) | [2],[5],[6] | 0.0015 | |
Non-Agency [Member] | Directly Held [Member] | Recapture Agreement [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2],[6] | 7.50% | 8.00% |
Recapture Rate | [2],[4],[6] | 20.00% | 20.00% |
Excess Mortgage Servicing Amount (bps) | [2],[5],[6] | 0.0020 | 0.0020 |
Non-Agency [Member] | Directly Held [Member] | Ocwen Serviced Pools [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2],[6] | 9.30% | |
Recapture Rate | [2],[4],[6] | 0.00% | |
Excess Mortgage Servicing Amount (bps) | [2],[5],[6] | 0.0014 | |
Non-Agency [Member] | Held through Equity Method Investees [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2],[6] | 13.00% | |
Recapture Rate | [2],[4],[6] | 10.80% | |
Excess Mortgage Servicing Amount (bps) | [2],[5],[6] | 0.0012 | |
Non-Agency [Member] | Held through Equity Method Investees [Member] | Original and Recaptured Pools [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2],[6] | 13.40% | |
Recapture Rate | [2],[4],[6] | 10.00% | |
Excess Mortgage Servicing Amount (bps) | [2],[5],[6] | 0.0012 | |
Non-Agency [Member] | Held through Equity Method Investees [Member] | Recapture Agreement [Member] | |||
Held Directly (Note 4): | |||
Prepayment Speed | [1],[2],[6] | 8.00% | |
Recapture Rate | [2],[4],[6] | 20.00% | |
Excess Mortgage Servicing Amount (bps) | [2],[5],[6] | 0.0020 | |
[1] | Projected annualized weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. | ||
[2] | Weighted by fair value of the 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 or Ocwen, as applicable. | ||
[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 INST129
FAIR VALUE OF FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||
Recapture rate, term | 1 year | |
Assets measured at fair value on a nonrecurring basis | $ 292.4 | $ 666.6 |
Broker price discount | 20.00% | |
Residential Mortgage Loan [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 253 | |
Real Estate Acquired in Satisfaction of Debt [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 39.4 | |
Reduction of value of assets due to fair value adjustment | 4.5 | 2.4 |
Loans Held-for-sale [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Reduction of value of assets due to fair value adjustment | $ 14.1 | $ 4.9 |
Maturity Greater than 30 Days [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Days delinquent | 30 days | |
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% | 9.60% |
FAIR VALUE OF FINANCIAL INST130
FAIR VALUE OF FINANCIAL INSTRUMENTS - Summary of Certain Information Regarding the Inputs used in Valuing the Servicer Advances (Details) - Servicer Advances [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |||
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | 2.30% | 2.10% | |
Prepayment Speed | [1] | 10.40% | 12.60% |
Delinquency | 17.50% | 15.60% | |
Mortgage Servicing Amount (bps) | [2] | 9.2 | 19.4 |
Discount Rate | 5.60% | 5.40% | |
[1] | Projected annual weighted average lifetime voluntary and involuntary prepayment rate using a prepayment vector. | ||
[2] | Mortgage servicing amount excludes the amounts New Residential pays its servicers as a monthly servicing fee. |
FAIR VALUE OF FINANCIAL INST131
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Securities Valuation Methodology and Results (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Outstanding Face Amount | $ 4,418,552 | $ 3,542,511 | ||
Amortized Cost Basis | 2,498,078 | 2,434,844 | ||
Total Fair Value | 2,501,881 | 2,463,163 | ||
Multiple Quotes [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Total Fair Value | [1] | 1,947,579 | 2,449,509 | |
Single Quote [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Total Fair Value | [2] | 554,302 | ||
Agency RMBS [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Outstanding Face Amount | [3],[4] | 884,578 | 1,646,361 | |
Amortized Cost Basis | [3],[4] | 918,633 | 1,724,329 | |
Agency RMBS [Member] | Level 2 [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Total Fair Value | 917,598 | 1,740,163 | ||
Agency RMBS [Member] | Level 2 [Member] | Multiple Quotes [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Total Fair Value | [1] | 917,598 | 1,740,163 | |
Agency RMBS [Member] | Level 2 [Member] | Single Quote [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Total Fair Value | [2] | 0 | 0 | |
Non-Agency RMBS [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Outstanding Face Amount | [5],[7] | 3,533,974 | [6] | 1,896,150 |
Amortized Cost Basis | [5],[7] | 1,579,445 | [6] | 710,515 |
Non-Agency RMBS [Member] | Level 3 [Member] | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||||
Total Fair Value | [5] | 1,584,283 | 723,000 | |
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] | 1,029,981 | 709,346 | |
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] | $ 554,302 | $ 13,654 | |
[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 it 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, it 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. For approximately $228.5 million in 2015 and $13.7 million in 2014, 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 Fannie Mae or Freddie Mac. | |||
[4] | The total outstanding face amount was $0.7 billion and $1.0 billion for fixed rate securities and $0.2 billion and $0.6 billion for floating rate securities as of December 31, 2015 and 2014, respectively. | |||
[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 (i) interest-only securities which New Residential elected to carry at fair value and record changes to valuation through the income statement and representing 5.2% of the carrying value of the Non-Agency RMBS portfolio and (ii) bonds backed by servicer advances representing 27.2% 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 $1,522,256 $82,101 $5,227 $(4,348) $82,980 12 AA+ 1.84% 7.11% 4.0 N/AServicer Advance Bonds $431,000 $430,951 $— $(661) $430,290 5 AA+ 2.69% 2.70% 1.1 N/A | |||
[7] | The total outstanding face amount was $2.3 billion (including $1.7 billion of residual and interest-only notional amount) and $1.0 billion (including $959.1 million of interest-only notional amount) for fixed rate securities and $1.3 billion (including $164.4 million of residual and interest-only notional amount) and $882.4 million (including $130.6 million of residual and interest-only notional amount) for floating rate securities as of December 31, 2015 and 2014, respectively. |
FAIR VALUE OF FINANCIAL INST132
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Securities Valuation Methodology and Results (Footnote) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)source | Dec. 31, 2014USD ($) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of broker quotation sources | source | 2 | ||
Real estate securities | $ 2,501,881 | $ 2,463,163 | |
Single Quote [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Real estate securities | [1] | 554,302 | |
Selling Party [Member] | Single Quote [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Real estate securities | $ 228,500 | $ 13,654 | |
[1] | Management was unable to obtain quotations from more than one source on these securities. For approximately $228.5 million in 2015 and $13.7 million in 2014, the one source was the party that sold New Residential the security. |
FAIR VALUE OF FINANCIAL INST133
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Inputs Used in Valuing Residential Mortgage Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Valuation Provision/ (Reversal) In Current Year | $ 16,188 | $ (3,341) | $ 4,772 | $ 977 | $ 8,300 | $ 1,134 | $ 293 | $ 164 | $ 18,596 | $ 9,891 | $ 461 | |
Weighted Average Life (Years) | 11 months 14 days | |||||||||||
Reverse Mortgage Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Weighted Average Life (Years) | [1],[2],[3] | 4 years 2 months 14 days | 3 years 10 months 26 days | |||||||||
Performing Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Weighted Average Life (Years) | [3],[4] | 6 years 8 months | 5 years 10 months 24 days | |||||||||
PCD Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Carrying Value | 290,654 | 737,954 | $ 290,654 | $ 737,954 | ||||||||
Residential Mortgage Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Valuation Provision/ (Reversal) In Current Year | $ 78 | $ 1,057 | ||||||||||
Discount Rate | 5.30% | 5.10% | ||||||||||
Weighted Average Life (Years) | [5] | 3 years 3 months 19 days | 5 years 7 months 20 days | |||||||||
Loss Severity(C) | [6] | 13.30% | 37.60% | |||||||||
Residential Mortgage Loans [Member] | Reverse Mortgage Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Valuation Provision/ (Reversal) In Current Year | [7] | $ 35 | $ 1,057 | |||||||||
Discount Rate | [7] | 10.00% | 10.20% | |||||||||
Weighted Average Life (Years) | [5],[7] | 4 years 2 months 14 days | 3 years 10 months 26 days | |||||||||
Loss Severity(C) | [6],[7] | 8.10% | 5.90% | |||||||||
Residential Mortgage Loans [Member] | Performing Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Valuation Provision/ (Reversal) In Current Year | $ 43 | |||||||||||
Discount Rate | 4.80% | 4.60% | ||||||||||
Weighted Average Life (Years) | [5] | 5 years 2 months 5 days | 7 years | |||||||||
Prepayment Rate | 6.60% | 5.70% | ||||||||||
CDR | [8] | 1.20% | 2.20% | |||||||||
Loss Severity(C) | [6] | 14.30% | 44.90% | |||||||||
Residential Mortgage Loans [Member] | Non-Performing Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Discount Rate | 5.40% | 5.50% | ||||||||||
Weighted Average Life (Years) | [5] | 2 years 5 months 25 days | 2 years 9 months 18 days | |||||||||
Prepayment Rate | 1.40% | 2.30% | ||||||||||
Loss Severity(C) | [6] | 13.10% | 25.80% | |||||||||
Residential Mortgage Loans [Member] | Carrying Value [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Carrying Value | 853,846 | 564,154 | $ 853,846 | $ 564,154 | ||||||||
Residential Mortgage Loans [Member] | Carrying Value [Member] | Reverse Mortgage Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Carrying Value | [7] | 19,560 | 24,965 | 19,560 | 24,965 | |||||||
Residential Mortgage Loans [Member] | Carrying Value [Member] | Performing Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Carrying Value | 246,190 | 374,745 | 246,190 | 374,745 | ||||||||
Residential Mortgage Loans [Member] | Carrying Value [Member] | Non-Performing Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Carrying Value | 588,096 | 164,444 | 588,096 | 164,444 | ||||||||
Residential Mortgage Loans [Member] | Fair Value [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Fair Value | 862,172 | 577,860 | 862,172 | 577,860 | ||||||||
Residential Mortgage Loans [Member] | Fair Value [Member] | Reverse Mortgage Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Fair Value | [7] | 19,560 | 24,965 | 19,560 | 24,965 | |||||||
Residential Mortgage Loans [Member] | Fair Value [Member] | Performing Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Fair Value | 248,858 | 383,689 | 248,858 | 383,689 | ||||||||
Residential Mortgage Loans [Member] | Fair Value [Member] | Non-Performing Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Fair Value | 593,754 | 169,206 | $ 593,754 | $ 169,206 | ||||||||
Nonrecurring [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Discount Rate | 5.60% | 5.60% | ||||||||||
Weighted Average Life (Years) | [9] | 3 years 7 months 7 days | 2 years 10 months 14 days | |||||||||
Prepayment Rate | 4.20% | 3.00% | ||||||||||
Loss Severity(C) | [10] | 22.70% | 31.50% | |||||||||
Nonrecurring [Member] | Performing Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Discount Rate | 5.00% | 4.60% | ||||||||||
Weighted Average Life (Years) | [9] | 4 years 2 months 18 days | 7 years 5 months 26 days | |||||||||
Prepayment Rate | 9.20% | 4.20% | ||||||||||
CDR | [11] | 2.80% | 4.20% | |||||||||
Loss Severity(C) | [10] | 35.20% | 40.20% | |||||||||
Nonrecurring [Member] | Non-Performing Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Discount Rate | 5.70% | |||||||||||
Weighted Average Life (Years) | [9] | 3 years 5 months 12 days | ||||||||||
Prepayment Rate | 2.90% | |||||||||||
Loss Severity(C) | [10] | 19.60% | ||||||||||
Nonrecurring [Member] | PCD Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Discount Rate | 5.70% | |||||||||||
Weighted Average Life (Years) | [9] | 2 years 6 months 28 days | ||||||||||
Prepayment Rate | 2.90% | |||||||||||
Loss Severity(C) | [10] | 30.90% | ||||||||||
Nonrecurring [Member] | Fair Value [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Fair Value | 253,013 | 610,123 | $ 253,013 | $ 610,123 | ||||||||
Nonrecurring [Member] | Fair Value [Member] | Performing Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Fair Value | 50,858 | 36,613 | 50,858 | 36,613 | ||||||||
Nonrecurring [Member] | Fair Value [Member] | Non-Performing Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Fair Value | $ 202,155 | $ 202,155 | ||||||||||
Nonrecurring [Member] | Fair Value [Member] | PCD Loans [Member] | ||||||||||||
Mortgage Loans on Real Estate [Line Items] | ||||||||||||
Fair Value | $ 573,510 | $ 573,510 | ||||||||||
[1] | FICO scores are not used in determining how much a borrower can access via a reverse mortgage loan. | |||||||||||
[2] | Represents a 70% interest New Residential holds in reverse mortgage loans. The average loan balance outstanding based on total UPB was $0.4 million and $0.3 million at December 31, 2015 and 2014, respectively, and 71% and 77% of these loans outstanding at each respective date 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] | 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 premiums of $12.0 million. | |||||||||||
[5] | The weighted average life is based on the expected timing of the receipt of cash flows. | |||||||||||
[6] | 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. | |||||||||||
[7] | Carrying value and fair value represent a 70% interest New Residential holds in the reverse mortgage loans. | |||||||||||
[8] | Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance. | |||||||||||
[9] | The weighted average life is based on the expected timing of the receipt of cash flows. | |||||||||||
[10] | 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. | |||||||||||
[11] | Represents the annualized rate of the involuntary prepayments (defaults) as a percentage of the total principal balance. Not applicable for PCD Loans that are not 100% in default. |
FAIR VALUE OF FINANCIAL INST134
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Inputs Used in Valuing Residential Mortgage Loans (Footnote) (Details) | 1 Months Ended | 12 Months Ended |
Feb. 28, 2013 | Dec. 31, 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 | Jan. 01, 2016shares | Jan. 01, 2015shares | Dec. 05, 2014shares | Oct. 17, 2014shares | May. 07, 2014$ / sharesshares | Jan. 01, 2014shares | May. 15, 2013shares | Jul. 31, 2015$ / sharesshares | Jun. 30, 2015USD ($)employee$ / sharesshares | Apr. 30, 2015USD ($)employee$ / sharesshares | Oct. 31, 2014 | Aug. 31, 2014$ / sharesshares | Apr. 30, 2014USD ($)employee$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)shares | Jan. 19, 2016USD ($) | May. 14, 2013shares | May. 06, 2013shares |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||||||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||||||||||||
Preferred stock, shares authorized (in shares) | 100,000,000 | ||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||||||||||||
Common stock, shares outstanding (in shares) | 141,400,000 | 230,471,202 | 141,434,905 | 126,512,823 | |||||||||||||||
Reverse stock split | 0.5 | 0.5 | |||||||||||||||||
Common stock outstanding, prior to stock split (in shares) | 282,800,000 | ||||||||||||||||||
Proceeds from issuance of common stock | $ | $ 442,600 | $ 436,100 | $ 163,800 | $ 882,166 | $ 173,507 | $ 0 | |||||||||||||
Risk-free interest rate | 2.61% | 2.02% | 2.87% | ||||||||||||||||
Dividend yield | 7.81% | 6.71% | 12.584% | ||||||||||||||||
Volatility | 23.73% | 24.04% | 25.66% | ||||||||||||||||
Term | 10 years | 10 years | 10 years | ||||||||||||||||
Option exercise (in shares) | 6,734,525 | 648,573 | |||||||||||||||||
Reserved shares of common stock for issuance (in shares) | 15,000,000 | ||||||||||||||||||
Stock option plan term | 10 years | ||||||||||||||||||
Yearly increase in number of shares available for options | 10.00% | ||||||||||||||||||
Number of additional shares authorized (in shares) | 1,437,500 | 0 | |||||||||||||||||
Threshold percentage for options that may be issued to the Manager | 10.00% | ||||||||||||||||||
Stock options outstanding (in shares) | 12,380,107 | ||||||||||||||||||
Number of days to determine average closing price | 5 days | ||||||||||||||||||
Options granted to non-employee directors upon joining the board (in shares) | 8,543,539 | 1,437,500 | |||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 12.16 | ||||||||||||||||||
Dilutive common stock equivalents (in shares) | 2,167,796 | 3,092,844 | 2,145,104 | ||||||||||||||||
Awards outstanding (in shares) | 12,380,107 | 10,737,093 | 10,365,229 | 0 | |||||||||||||||
Subsequent Event [Member] | |||||||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||||||
Common stock repurchase amount authorized | $ | $ 200,000 | ||||||||||||||||||
Number of additional shares authorized (in shares) | 8,543,539 | ||||||||||||||||||
Executive Officer [Member] | |||||||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||||||
Number of employees | employee | 1 | 1 | 1 | ||||||||||||||||
Employee of Manager [Member] | |||||||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||||||
Option exercise (in shares) | 107,500 | ||||||||||||||||||
Exercise price of options exercised (in dollars per share) | $ / shares | $ 5.61 | ||||||||||||||||||
Employees of Manager and New Residential Director [Member] | |||||||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||||||
Option exercise (in shares) | 498,500 | ||||||||||||||||||
Exercise price of options exercised (in dollars per share) | $ / shares | $ 5.62 | ||||||||||||||||||
Former Employee of Manager [Member] | |||||||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||||||
Option exercise (in shares) | 37,500 | 42,566 | |||||||||||||||||
Exercise price of options exercised (in dollars per share) | $ / shares | $ 7.19 | $ 7.19 | |||||||||||||||||
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 | ||||||||||||||||||
Awards outstanding (in shares) | 10,900,000 | ||||||||||||||||||
Independent Directors [Member] | |||||||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||||||
Stock options outstanding (in shares) | 4,000 | 5,000 | |||||||||||||||||
Independent Directors [Member] | Equity Option [Member] | |||||||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||||||
Stock options outstanding (in shares) | 4,000 | ||||||||||||||||||
Options granted to non-employee directors upon joining the board (in shares) | 4,000 | ||||||||||||||||||
Total Affiliates [Member] | |||||||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||||||
Stock options outstanding (in shares) | 10,700,000 | 12,380,107 | 10,737,093 | ||||||||||||||||
Common Stock [Member] | |||||||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||||||
Issuance of common stock (in shares) | 27,900,000 | 29,213,020 | 13,875,000 | ||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 15.88 | $ 15.25 | $ 12.20 | ||||||||||||||||
Options granted to Manager (in shares) | 2,800,000 | 5,750,000 | 1,437,500 | ||||||||||||||||
Fair value of options granted to Manager | $ | $ 3,700 | $ 8,900 | $ 1,400 | ||||||||||||||||
Option exercise (in shares) | 6,700,000 | ||||||||||||||||||
Aggregate shares in cashless exercise (in shares) | 3,600,000 | ||||||||||||||||||
Issuance of common stock (in shares) | 107,500 | 276,037 | |||||||||||||||||
Common Stock [Member] | Executive Officer [Member] | |||||||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||||||
Issuance of common stock (in shares) | 9,100 | 250,000 | 500,000 | ||||||||||||||||
Proceeds from issuance of common stock | $ | $ 6,100 | ||||||||||||||||||
Common Stock [Member] | Former Employee of Manager [Member] | |||||||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||||||
Issuance of common stock (in shares) | 42,566 | 20,227 | |||||||||||||||||
Newcastle [Member] | |||||||||||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||||||||||||||||
Spin-off distribution ratio (in shares) | 1 |
EQUITY AND EARNINGS PER SHAR136
EQUITY AND EARNINGS PER SHARE - Summary of Common Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 10, 2015 | Sep. 18, 2015 | May. 14, 2015 | Mar. 16, 2015 | Dec. 18, 2014 | Sep. 18, 2014 | Jun. 17, 2014 | Mar. 19, 2014 | Dec. 17, 2013 | Sep. 18, 2013 | Jun. 03, 2013 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Dividends Payable [Line Items] | ||||||||||||||||||||||
Dividends Declared per Share of Common Stock (in dollars per share) | $ 0.46 | $ 0.46 | $ 0.45 | $ 0.38 | $ 0.38 | $ 0.35 | $ 0.5 | $ 0.35 | $ 0.5 | $ 0.35 | $ 0.14 | $ 0.46 | $ 0.46 | $ 0.45 | $ 0.38 | $ 0.38 | $ 0.35 | $ 0.5 | $ 0.35 | $ 1.75 | $ 1.58 | $ 0.99 |
Total Amounts Distributed | $ 106,000 | $ 106,000 | $ 89,500 | $ 53,700 | $ 53,700 | $ 49,500 | $ 70,600 | $ 44,300 | $ 63,300 | $ 44,300 | $ 17,700 | $ 355,295 | $ 218,094 | $ 125,317 | ||||||||
Quarterly Dividend [Member] | ||||||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||||||
Dividends Declared per Share of Common Stock (in dollars per share) | $ 0.46 | $ 0.46 | $ 0.45 | $ 0.38 | $ 0.38 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.14 | |||||||||||
Special Dividend [Member] | ||||||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||||||
Dividends Declared per Share of Common Stock (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.15 | $ 0 | $ 0.15 | $ 0 | $ 0 |
EQUITY AND EARNINGS PER SHAR137
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | May. 15, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 12,380,107 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning balance, Outstanding options (in shares) | 10,737,093 | 10,365,229 | |
Options granted (in shares) | 8,543,539 | 1,437,500 | |
Options exercised (in shares) | (6,734,525) | (648,573) | |
Options expired unexercised (in shares) | (166,000) | (417,063) | |
Ending balance, Outstanding options (in shares) | 12,380,107 | 10,737,093 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted Average Exercise Price, Options granted (in dollars per share) | $ 15.46 | $ 12.20 | |
Weighted Average Exercise Price, Options exercised (in dollars per share) | $ 7.81 | $ 5.72 | |
Manager [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 10,928,580 | 8,905,974 | |
Manager's Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 1,447,527 | 1,826,119 | |
Independent Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 4,000 | 5,000 | |
Total Affiliates [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 12,380,107 | 10,737,093 | 10,700,000 |
Issued Prior to 2011 [Member] | Manager [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 345,720 | 473,377 | |
Issued Prior to 2011 [Member] | Manager's Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 88,280 | 125,622 | |
Issued Prior to 2011 [Member] | Independent Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 0 | 1,000 | |
Issued Prior to 2011 [Member] | Total Affiliates [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 434,000 | 599,999 | |
Issued in 2011 - 2015 [Member] | Manager [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 10,582,860 | ||
Issued in 2011 - 2015 [Member] | Manager's Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 1,359,247 | ||
Issued in 2011 - 2015 [Member] | Independent Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 4,000 | ||
Issued in 2011 - 2015 [Member] | Total Affiliates [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 11,946,107 | ||
Issued in 2011 - 2014 [Member] | Manager [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 8,432,597 | ||
Issued in 2011 - 2014 [Member] | Manager's Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 1,700,497 | ||
Issued in 2011 - 2014 [Member] | Independent Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 4,000 | ||
Issued in 2011 - 2014 [Member] | Total Affiliates [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 10,137,094 |
EQUITY AND EARNINGS PER SHAR138
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options (Footnote) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | ||
Option exercise (in shares) | 6,734,525 | 648,573 |
Intrinsic value of options exercised | $ 59.4 | $ 4.5 |
EQUITY AND EARNINGS PER SHAR139
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options - Period End (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 12,380,107 | ||
Options exercisable (in shares) | 5,449,442 | ||
Independent Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 4,000 | 5,000 | |
Stock Options [Member] | Independent Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | Directors | ||
Date of grant | [1] | Various | |
Stock options outstanding (in shares) | 4,000 | ||
Options exercisable (in shares) | 4,000 | ||
Weighted average exercise price (in dollars per share) | [2] | $ 13.58 | |
Intrinsic value of exercisable options | $ 0 | ||
Stock Options [Member] | Manager [Member] | 2003 - 2007 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [3] | Manager | |
Date of grant | [1],[3] | 2003 - 2007 | |
Stock options outstanding (in shares) | [3] | 434,000 | |
Options exercisable (in shares) | [3] | 434,000 | |
Weighted average exercise price (in dollars per share) | [2],[3] | $ 31.36 | |
Intrinsic value of exercisable options | [3] | $ 0 | |
Stock Options [Member] | Manager [Member] | 2011 - 2012 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [3] | Manager | |
Date of grant | [1],[3] | 2011 - 2012 | |
Stock options outstanding (in shares) | [3] | 25,000 | |
Options exercisable (in shares) | [3] | 25,000 | |
Weighted average exercise price (in dollars per share) | [2],[3] | $ 7.19 | |
Intrinsic value of exercisable options | [3] | $ 0.1 | |
Stock Options [Member] | Manager [Member] | 2013 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [3] | Manager | |
Date of grant | [1],[3] | 2,013 | |
Stock options outstanding (in shares) | [3] | 1,936,068 | |
Options exercisable (in shares) | [3] | 1,936,068 | |
Weighted average exercise price (in dollars per share) | [2],[3] | $ 10.98 | |
Intrinsic value of exercisable options | [3] | $ 2.3 | |
Stock Options [Member] | Manager [Member] | 2014 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [3] | Manager | |
Date of grant | [1],[3] | 2,014 | |
Stock options outstanding (in shares) | [3] | 1,437,500 | |
Options exercisable (in shares) | [3] | 958,333 | |
Weighted average exercise price (in dollars per share) | [2],[3] | $ 12.20 | |
Intrinsic value of exercisable options | [3] | $ 0 | |
Stock Options [Member] | Manager [Member] | 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recipient | [3] | Manager | |
Date of grant | [1],[3] | 2,015 | |
Stock options outstanding (in shares) | [3] | 8,543,539 | |
Options exercisable (in shares) | [3] | 2,092,041 | |
Weighted average exercise price (in dollars per share) | [2],[3] | $ 15.46 | |
Intrinsic value of exercisable options | [3] | $ 0 | |
[1] | Options expire on the tenth anniversary from date of grant. | ||
[2] | The exercise prices are subject to adjustment in connection with return of capital dividends. | ||
[3] | The Manager assigned certain of its options to Fortress’s employees as follows:Date of Grant Range of Exercise Prices Total UnexercisedInception to Date2004 - 2007 $29.92 to $33.80 88,2802013 $10.24 to $11.48 1,100,4972014 $12.20 258,750Total 1,447,527 |
EQUITY AND EARNINGS PER SHAR140
EQUITY AND EARNINGS PER SHARE - Summary of Outstanding Options - Options Assigned (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Unexercised Inception to Date (in shares) | shares | 12,380,107 |
2004 - 2007 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Unexercised Inception to Date (in shares) | shares | 88,280 |
2004 - 2007 [Member] | Lower Range [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Date of Grant | 2,004 |
Range of Strike Prices (in dollars per share) | $ / shares | $ 29.92 |
2004 - 2007 [Member] | Upper Range [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Date of Grant | 2,007 |
Range of Strike Prices (in dollars per share) | $ / shares | $ 33.80 |
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) | shares | 1,100,498 |
2013 [Member] | Lower Range [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Strike Prices (in dollars per share) | $ / shares | $ 10.24 |
2013 [Member] | Upper Range [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Strike Prices (in dollars per share) | $ / shares | $ 11.48 |
2014 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Date of Grant | 2,014 |
Range of Strike Prices (in dollars per share) | $ / shares | $ 12.20 |
Total Unexercised Inception to Date (in shares) | shares | 258,750 |
Options Granted [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total Unexercised Inception to Date (in shares) | shares | 1,447,528 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | Feb. 04, 2016USD ($) | Oct. 02, 2015USD ($) | Sep. 15, 2014USD ($) | Feb. 13, 2015lawsuit | Mar. 20, 2015lawsuit |
Excess MSRs [Member] | Fannie Mae [Member] | Subsequent Event [Member] | |||||
Loss Contingencies [Line Items] | |||||
Purchase of servicer advance investments | $ 2 | ||||
Percentage of Excess MSRs acquired | 66.70% | ||||
Unpaid Principal Balance | $ 17,200 | ||||
Nationstar [Member] | Excess MSRs [Member] | Fannie Mae [Member] | Subsequent Event [Member] | |||||
Loss Contingencies [Line Items] | |||||
Percentage of Excess MSRs acquired | 33.30% | ||||
Putative Class Action Lawsuits [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of claims | lawsuit | 3 | ||||
Shareholder Derivative Actions [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of claims | lawsuit | 2 | ||||
HLSS Investigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Litigation settlement | $ 1.5 | ||||
HSART Bondholders [Member] | |||||
Loss Contingencies [Line Items] | |||||
Amount released from restricted cash to unrestricted use | $ 92.7 |
TRANSACTIONS WITH AFFILIATES142
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Mar. 06, 2014 | Jun. 27, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | May. 15, 2013 | |
Related Party Transaction [Line Items] | ||||||||||
Management agreement, renewal term | 1 year | |||||||||
Majority vote, percent | 66.70% | |||||||||
Management fee rate | 1.50% | |||||||||
Decrease in incentive compensation | $ 5.5 | |||||||||
Payments or accruals for MSR Fund Payments | $ 4.4 | |||||||||
Nationstar [Member] | Customer Concentration Risk [Member] | UPB - Excess MSRs [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of UPB of loans underlying investments | 64.40% | |||||||||
Nationstar [Member] | Customer Concentration Risk [Member] | UPB - Servicer Advances [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of UPB of loans underlying investments | 34.90% | |||||||||
Agency RMBS [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Face amount of securities purchased | $ 700 | $ 22.7 | $ 5,140.1 | $ 1,341 | ||||||
Purchase of real estate securities | $ 1.2 | $ 1.2 | ||||||||
Non-Agency RMBS [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Face amount of securities purchased | $ 625 | $ 2,397.9 | [1] | $ 3,187.5 | ||||||
FIG LLC [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Management fee rate | 1.50% | |||||||||
Incentive compensation percentage | 25.00% | |||||||||
Interest rate for incentive compensation | 10.00% | |||||||||
Increase in incentive compensation to affiliate | $ 3.3 | |||||||||
Nationstar [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Unpaid principal balance fee | 0.75% | |||||||||
Nationstar [Member] | Residential Mortgage Loans [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Unpaid Principal Balance | 588.4 | $ 588.4 | ||||||||
Nationstar [Member] | Real Estate Owned [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Unpaid balance of real estate owned | 24.8 | 24.8 | ||||||||
Nationstar [Member] | Agency RMBS [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Face amount | 35.3 | 35.3 | ||||||||
Nationstar [Member] | Non-Agency RMBS [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Face amount | 2,400 | 2,400 | ||||||||
Unpaid Principal Balance | $ 9,500 | $ 9,500 | ||||||||
[1] | Purchases include $431.0 million face of servicer advance bonds for a purchase price of $431.0 million. |
TRANSACTIONS WITH AFFILIATES143
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES - Schedule of Affiliate Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Due to Related Parties [Abstract] | ||||
Total | $ 23,785 | $ 57,424 | ||
Management fees | 33,475 | 19,651 | $ 11,209 | |
Incentive compensation | 16,017 | 54,334 | 16,847 | |
FIG LLC [Member] | ||||
Due to Related Parties [Abstract] | ||||
Management fees | 6,671 | 1,710 | ||
Incentive compensation | 16,017 | 54,334 | ||
Expense reimbursements and other | 1,097 | 1,380 | ||
Total | 23,785 | 57,424 | ||
Management fees | 33,475 | 19,651 | 15,343 | |
Incentive compensation | 16,017 | 54,334 | 16,847 | |
Expense reimbursements | [1] | 500 | 500 | 500 |
Total | $ 49,992 | $ 74,485 | $ 32,690 | |
[1] | Included in General and Administrative Expenses in the Consolidated Statements of Income. |
RECLASSIFICATION FROM ACCUMU144
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 | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Other-than-temporary impairment (OTTI) on securities | $ 1,000 | $ 2,494 | $ 1,574 | $ 649 | $ 1,071 | $ 448 | $ 0 | $ 615 | $ 328 | $ 5,788 | $ 1,391 | $ 4,993 |
Total reclassifications | $ (99,052) | $ (61,755) | $ (79,277) | $ (41,798) | $ (50,928) | $ (152,098) | $ (182,208) | $ (56,865) | (281,882) | (442,099) | (265,623) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Gain on settlement of securities | (13,096) | (65,701) | (52,657) | |||||||||
Other-than-temporary impairment (OTTI) on securities | 5,788 | 1,391 | 4,993 | |||||||||
Total reclassifications | $ (7,308) | $ (64,310) | $ (47,664) |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | May. 15, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | ||||||||||||
Federal | $ (2,737,000) | $ 3,737,000 | $ 0 | |||||||||
State and Local | (1,631,000) | 2,799,000 | 0 | |||||||||
Total Current Income Tax Expense (Benefit) | (4,368,000) | 6,536,000 | 0 | |||||||||
Deferred: | ||||||||||||
Federal | (2,778,000) | 12,853,000 | 0 | |||||||||
State and Local | (3,855,000) | 3,568,000 | 0 | |||||||||
Total Deferred Income Tax Expense (Benefit) | (6,633,000) | 16,421,000 | 0 | |||||||||
Total Income Tax Expense (Benefit) | $ (15,948,000) | $ (5,932,000) | $ 14,306,000 | $ (3,427,000) | $ (6,526,000) | $ 7,801,000 | $ 21,395,000 | $ 287,000 | $ 0 | $ (11,001,000) | $ 22,957,000 | $ 0 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | Apr. 06, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | May. 15, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Loss Carryforwards [Line Items] | |||||||||||||
Provision for U.S. federal or state income taxes | $ (15,948,000) | $ (5,932,000) | $ 14,306,000 | $ (3,427,000) | $ (6,526,000) | $ 7,801,000 | $ 21,395,000 | $ 287,000 | $ 0 | $ (11,001,000) | $ 22,957,000 | $ 0 | |
REIT taxable income distribution | 100.00% | 100.00% | |||||||||||
Increase to income tax provision | 0 | $ 2,258,000 | |||||||||||
Reserve for unrecognized tax benefits | 0 | $ 0 | 2,258,000 | 0 | $ 2,258,000 | $ 0 | |||||||
Benefit to income tax provision | $ 2,300,000 | ||||||||||||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% | ||||||||||
Valuation allowance | 9,409,000 | $ 3,619,000 | $ 9,409,000 | $ 3,619,000 | $ 493,000 | ||||||||
HLSS [Member] | |||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||
Increase in deferred tax asset | $ 195,100,000 | ||||||||||||
Valuation allowance | 0 | 0 | |||||||||||
TRSs [Member] | |||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||
Net operating loss carryforwards | $ 110,200,000 | $ 110,200,000 |
INCOME TAXES - Schedule of Repo
INCOME TAXES - Schedule of Reported Provision for Income Taxes and the U.S. Federal Statutory Rate (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Provision at the statutory rate | 35.00% | 35.00% | 35.00% |
Non-taxable REIT income | (36.51%) | (31.12%) | (35.00%) |
State and local taxes | (1.16%) | 0.69% | 0.00% |
Other | (1.58%) | 0.37% | 0.00% |
Total provision | (4.25%) | 4.94% | 0.00% |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets: | |||
Servicer Advances | $ 144,842 | $ 0 | |
Allowance for loan losses | 136 | 962 | |
Unrealized mark to market | 468 | 0 | |
Net operating losses | 42,944 | 2,657 | |
Other | 6,330 | 134 | |
Total deferred tax assets | 194,720 | 3,753 | |
Less valuation allowance | (9,409) | (3,619) | $ (493) |
Net deferred tax assets | 185,311 | 134 | |
Deferred tax liabilities: | |||
Unrealized gains on servicer advances | 0 | (15,248) | |
Total deferred tax liability | 0 | (15,248) | |
Net deferred tax assets | 185,311 | 0 | |
Net deferred tax liability | $ 0 | $ (15,114) |
INCOME TAXES - Summary of Chang
INCOME TAXES - Summary of Changes in Deferred Tax Asset Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Tax Assets, Valuation Allowance [Roll Forward] | ||
Valuation allowance at December 31, 2014 | $ 3,619 | $ 493 |
Increase related to net operating losses and loan loss reserves | 6,680 | 3,126 |
Other increase (decrease) | (890) | |
Valuation allowance at December 31, 2015 | $ 9,409 | $ 3,619 |
INCOME TAXES - Summary of the R
INCOME TAXES - Summary of the Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 2,258 | $ 0 |
Additions for tax positions of current year | 0 | 2,258 |
Other additions (reductions) | (2,258) | |
Ending balance | $ 0 | $ 2,258 |
INCOME TAXES - Schedule of Taxa
INCOME TAXES - Schedule of Taxable Common Stock Distributions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Dividends per Share (in dollars per share) | $ 1.75 | $ 1.58 | $ 0.99 |
Ordinary Income | 92.92% | 84.78% | 90.01% |
Long-term Capital Gain | 7.08% | 15.22% | 9.99% |
Return of Capital | 0.00% | 0.00% | 0.00% |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 10, 2015 | Sep. 18, 2015 | May. 14, 2015 | Mar. 16, 2015 | Dec. 18, 2014 | Sep. 18, 2014 | Jun. 17, 2014 | Mar. 19, 2014 | Dec. 17, 2013 | Sep. 18, 2013 | Jun. 03, 2013 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event [Line Items] | ||||||||||||||||||||||
Dividend declared per share (in dollars per share) | $ 0.46 | $ 0.46 | $ 0.45 | $ 0.38 | $ 0.38 | $ 0.35 | $ 0.5 | $ 0.35 | $ 0.5 | $ 0.35 | $ 0.14 | $ 0.46 | $ 0.46 | $ 0.45 | $ 0.38 | $ 0.38 | $ 0.35 | $ 0.5 | $ 0.35 | $ 1.75 | $ 1.58 | $ 0.99 |
Dividends | $ 106,000 | $ 106,000 | $ 89,500 | $ 53,700 | $ 53,700 | $ 49,500 | $ 70,600 | $ 44,300 | $ 63,300 | $ 44,300 | $ 17,700 | $ 355,295 | $ 218,094 | $ 125,317 |
SUMMARY OF QUARTERLY CONSOLI153
SUMMARY OF QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) - Schedule of Quarterly Unaudited Summary Information (Details) - USD ($) | Dec. 10, 2015 | Sep. 18, 2015 | May. 14, 2015 | Mar. 16, 2015 | Dec. 18, 2014 | Sep. 18, 2014 | Jun. 17, 2014 | Mar. 19, 2014 | Dec. 17, 2013 | Sep. 18, 2013 | Jun. 03, 2013 | Jan. 31, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | May. 15, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||
Interest income | $ 200,181,000 | $ 182,341,000 | $ 178,177,000 | $ 84,373,000 | $ 85,124,000 | $ 97,587,000 | $ 92,656,000 | $ 71,490,000 | $ 645,072,000 | $ 346,857,000 | $ 87,567,000 | |||||||||||||||||||||||
Interest expense | 80,605,000 | 77,558,000 | 81,871,000 | 33,979,000 | 31,892,000 | 33,307,000 | 36,512,000 | 38,997,000 | 274,013,000 | 140,708,000 | 15,024,000 | |||||||||||||||||||||||
Net interest income (expense) | 119,576,000 | 104,783,000 | 96,306,000 | 50,394,000 | 53,232,000 | 64,280,000 | 56,144,000 | 32,493,000 | 371,059,000 | 206,149,000 | 72,543,000 | |||||||||||||||||||||||
Impairment | ||||||||||||||||||||||||||||||||||
Other-than-temporary impairment (OTTI) on securities | $ 1,000,000 | 2,494,000 | 1,574,000 | 649,000 | 1,071,000 | 448,000 | 0 | 615,000 | 328,000 | 5,788,000 | 1,391,000 | 4,993,000 | ||||||||||||||||||||||
Valuation provision on loans and real estate owned | 16,188,000 | (3,341,000) | 4,772,000 | 977,000 | 8,300,000 | 1,134,000 | 293,000 | 164,000 | 18,596,000 | 9,891,000 | 461,000 | |||||||||||||||||||||||
Total Impairment Charges | 18,682,000 | (1,767,000) | 5,421,000 | 2,048,000 | 8,748,000 | 1,134,000 | 908,000 | 492,000 | 24,384,000 | 11,282,000 | 5,454,000 | |||||||||||||||||||||||
Net interest income after impairment | 100,894,000 | 106,550,000 | 90,885,000 | 48,346,000 | 44,484,000 | 63,146,000 | 55,236,000 | 32,001,000 | 346,675,000 | 194,867,000 | 67,089,000 | |||||||||||||||||||||||
Other income | 9,909,000 | [1] | (17,825,000) | [1] | 37,650,000 | [1] | 12,295,000 | [1] | 40,085,000 | [1] | 122,064,000 | [1] | 177,889,000 | [1] | 35,050,000 | [1] | 42,029,000 | [1] | 375,088,000 | [1] | 241,008,000 | |||||||||||||
Operating expenses | 27,699,000 | 32,902,000 | 34,952,000 | 22,270,000 | 40,167,000 | 25,311,000 | 29,522,000 | 9,899,000 | 117,823,000 | 104,899,000 | 42,474,000 | |||||||||||||||||||||||
Income (Loss) Before Income Taxes | 83,104,000 | 55,823,000 | 93,583,000 | 38,371,000 | 44,402,000 | 159,899,000 | 203,603,000 | 57,152,000 | 270,881,000 | 465,056,000 | 265,623,000 | |||||||||||||||||||||||
Income tax expense (benefit) | (15,948,000) | (5,932,000) | 14,306,000 | (3,427,000) | (6,526,000) | 7,801,000 | 21,395,000 | 287,000 | $ 0 | (11,001,000) | 22,957,000 | 0 | ||||||||||||||||||||||
Net Income (Loss) | 99,052,000 | 61,755,000 | 79,277,000 | 41,798,000 | 50,928,000 | 152,098,000 | 182,208,000 | 56,865,000 | 281,882,000 | 442,099,000 | 265,623,000 | |||||||||||||||||||||||
Noncontrolling Interests in Income (Loss) of Consolidated Subsidiaries | (3,928,000) | 7,193,000 | 4,158,000 | 5,823,000 | (3,302,000) | 25,726,000 | 58,705,000 | 8,093,000 | 13,246,000 | 89,222,000 | (326,000) | |||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ 102,980,000 | $ 54,562,000 | $ 75,119,000 | $ 35,975,000 | $ 54,230,000 | $ 126,372,000 | $ 123,503,000 | $ 48,772,000 | $ 268,636,000 | $ 352,877,000 | $ 265,949,000 | |||||||||||||||||||||||
Net Income Per Share of Common Stock | ||||||||||||||||||||||||||||||||||
Basic (in dollars per share) | $ 0.45 | $ 0.24 | $ 0.37 | $ 0.25 | $ 0.38 | $ 0.89 | $ 0.91 | $ 0.39 | $ 1.34 | $ 2.59 | $ 2.10 | |||||||||||||||||||||||
Diluted (in dollars per share) | $ 0.45 | $ 0.24 | $ 0.37 | $ 0.25 | $ 0.38 | $ 0.88 | $ 0.88 | $ 0.38 | $ 1.32 | $ 2.53 | $ 2.07 | |||||||||||||||||||||||
Weighted Average Number of Shares of Common Stock Outstanding | ||||||||||||||||||||||||||||||||||
Basic (in shares) | 230,459,000 | 230,455,568 | 200,910,040 | 141,434,905 | 141,395,307 | 141,211,580 | 136,465,454 | 126,604,510 | 200,739,809 | 136,472,865 | 126,539,024 | |||||||||||||||||||||||
Diluted (in shares) | 230,698,961 | 231,215,235 | 205,169,099 | 144,911,309 | 144,294,088 | 144,166,601 | 139,668,128 | 129,919,967 | 202,907,605 | 139,565,709 | 128,684,128 | |||||||||||||||||||||||
Dividends Declared per Share of Common Stock (in dollars per share) | $ 0.46 | $ 0.46 | $ 0.45 | $ 0.38 | $ 0.38 | $ 0.35 | $ 0.5 | $ 0.35 | $ 0.5 | $ 0.35 | $ 0.14 | $ 0.46 | $ 0.46 | $ 0.45 | $ 0.38 | $ 0.38 | $ 0.35 | $ 0.5 | $ 0.35 | $ 1.75 | $ 1.58 | $ 0.99 | ||||||||||||
[1] | Earnings from investments in equity method investees is included in other income. |