Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | J.G. Wentworth Co | |
Entity Central Index Key | 1,580,185 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Common Stock - Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 15,729,817 | |
Common Stock - Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,710,814 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
ASSETS | |||
Cash and cash equivalents | $ 86,678 | $ 57,322 | |
Restricted cash and investments | 144,589 | 136,780 | |
VIE finance receivables, at fair market value | [1] | 4,214,396 | 4,376,458 |
Other finance receivables, at fair value | 14,586 | 9,689 | |
VIE finance receivables, net of allowances for losses of $9,325 and $8,659, respectively | [1] | 87,312 | 99,874 |
Other finance receivables, net of allowances for losses of $1,750 and $1,707, respectively | 8,864 | 10,468 | |
Other receivables, net of allowances for losses of $280 and $273, respectively | 17,832 | 16,285 | |
Mortgage loans held for sale, at fair value | [2] | 308,490 | 124,508 |
Mortgage servicing rights, at fair value | [2] | 32,607 | 29,287 |
Premises and equipment, net of accumulated depreciation of $10,614 and $7,961, respectively | 4,376 | 5,674 | |
Intangible assets, net of accumulated amortization of $22,294 and $20,700, respectively | 23,352 | 30,429 | |
Goodwill | 8,369 | 8,369 | |
Marketable securities, at fair value | 79,779 | 84,994 | |
Deferred tax assets, net | 213 | 2,250 | |
Other assets | 73,316 | 82,577 | |
Total Assets | 5,104,759 | 5,074,964 | |
Liabilities | |||
Accrued expenses and accounts payable | 30,012 | 21,548 | |
Accrued interest | 26,314 | 22,380 | |
Term loan payable | 442,429 | 440,181 | |
VIE derivative liabilities, at fair value | 69,764 | 66,519 | |
VIE borrowings under revolving credit facilities and other similar borrowings | 32,502 | 48,828 | |
Other borrowings under revolving credit facilities and other similar borrowings | 298,199 | 122,243 | |
VIE long-term debt | 65,241 | 199,363 | |
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 4,045,633 | 3,928,818 | |
Other liabilities | 55,096 | 65,106 | |
Deferred tax liabilities, net | 0 | 18,825 | |
Installment obligations payable | 79,779 | 84,994 | |
Total Liabilities | 5,144,969 | 5,018,805 | |
Commitments and contingencies (Note 19) | |||
Equity | |||
Additional paid-in-capital | 105,577 | 104,713 | |
Accumulated deficit | (116,358) | (70,765) | |
Total stockholders' equity including treasury stock | (10,781) | 33,948 | |
Less: treasury stock at cost, 542,072 shares as of September 30, 2016 and December 31, 2015, respectively | (2,138) | (2,138) | |
Total stockholders' equity, The J.G. Wentworth Company | (12,919) | 31,810 | |
Non-controlling interests | (27,291) | 24,349 | |
Total Stockholders' (Deficit) Equity | (40,210) | 56,159 | |
Total Liabilities and Stockholders' (Deficit) Equity | 5,104,759 | 5,074,964 | |
Common Stock - Class A | |||
Equity | |||
Common stock | 0 | 0 | |
Common Stock - Class B | |||
Equity | |||
Common stock | 0 | 0 | |
Common Stock - Class C | |||
Equity | |||
Common stock | $ 0 | $ 0 | |
[1] | Pledged as collateral to VIE borrowings under revolving credit facilities and other similar borrowings. Refer to Note 6 "VIE and Other Finance Receivables, at Fair Value" and Note 7 "VIE and Other Finance Receivables, net of Allowance for Losses." | ||
[2] | Pledged as collateral to Other borrowings under revolving credit facilities and other similar borrowings. Refer to Note 8 "Mortgage Loans Held for Sale, at Fair Value" and Note 9 "Mortgage Servicing Rights, at Fair Value." |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
VIE finance receivables, allowances for losses | $ 9,325 | $ 8,659 |
Other finance receivables, allowances for losses | 1,750 | 1,707 |
Other receivables, allowance for losses | 280 | 273 |
Fixed assets, accumulated depreciation | 10,614 | 7,961 |
Accumulated amortization | $ 22,294 | $ 20,700 |
Treasury stock at cost (in shares) | 542,072 | 542,072 |
Common Stock - Class A | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized shares (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 16,271,889 | 16,076,444 |
Common stock, shares outstanding (in shares) | 15,729,817 | 15,534,372 |
Common Stock - Class B | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized shares (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 8,710,814 | 8,908,698 |
Common stock, shares outstanding (in shares) | 8,710,814 | 8,908,698 |
Common Stock - Class C | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized shares (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
REVENUES | ||||
Interest income | $ 43,991 | $ 50,170 | $ 145,211 | $ 140,129 |
Realized and unrealized (losses) gains on VIE and other finance receivables, long-term debt and derivatives | (9,104) | 7,556 | (12,339) | 62,877 |
Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | 24,495 | 8,946 | 61,781 | 8,946 |
Changes in mortgage servicing rights, net | 1,480 | 548 | 3,320 | 548 |
Servicing, broker, and other fees | 3,023 | 2,477 | 9,758 | 4,478 |
Loan origination fees | 2,536 | 1,032 | 6,445 | 1,032 |
Realized and unrealized gains (losses) on marketable securities, net | 2,376 | (6,871) | 3,921 | (5,957) |
Total Revenues | 68,797 | 63,858 | 218,097 | 212,053 |
EXPENSES | ||||
Advertising | 13,894 | 16,946 | 42,191 | 49,728 |
Interest expense | 54,561 | 55,606 | 167,861 | 154,509 |
Compensation and benefits | 20,792 | 14,210 | 59,835 | 36,426 |
General and administrative | 7,732 | 5,307 | 21,822 | 14,679 |
Professional and consulting | 3,977 | 6,542 | 12,386 | 15,841 |
Debt issuance | 2,584 | 2,220 | 3,132 | 5,092 |
Securitization debt maintenance | 1,380 | 1,463 | 4,226 | 4,453 |
Provision for losses | 2,075 | 1,653 | 4,647 | 4,610 |
Direct subservicing costs | 493 | 336 | 1,742 | 336 |
Depreciation and amortization | 1,182 | 966 | 3,646 | 2,961 |
Installment obligations expense (income), net | 2,817 | (6,372) | 5,279 | (4,300) |
Impairment charges | 0 | 29,860 | 5,483 | 29,860 |
Total Expenses | 111,487 | 128,737 | 332,250 | 314,195 |
Loss before income taxes | (42,690) | (64,879) | (114,153) | (102,142) |
Benefit for income taxes | (3,883) | (7,252) | (16,787) | (12,422) |
Net Loss | (38,807) | (57,627) | (97,366) | (89,720) |
Less net loss attributable to non-controlling interests | (20,094) | (30,930) | (51,773) | (49,382) |
Net loss attributable to The J.G. Wentworth Company | (18,713) | (26,697) | (45,593) | (40,338) |
Common Stock - Class A | ||||
EXPENSES | ||||
Net loss attributable to The J.G. Wentworth Company | $ (18,713) | $ (26,697) | $ (45,593) | $ (40,338) |
Weighted average shares of Class A common stock outstanding: | ||||
Basic (in shares) | 15,663,475 | 14,918,415 | 15,633,696 | 14,437,117 |
Diluted (in shares) | 15,663,475 | 14,918,415 | 15,633,696 | 14,437,117 |
Net loss per share attributable to stockholders of Class A common stock of The J.G. Wentworth Company | ||||
Basic (in dollars per share) | $ (1.19) | $ (1.79) | $ (2.92) | $ (2.79) |
Diluted (in dollars per share) | $ (1.19) | $ (1.79) | $ (2.92) | $ (2.79) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (38,807) | $ (57,627) | $ (97,366) | $ (89,720) |
Total comprehensive loss | (38,807) | (57,627) | (97,366) | (89,720) |
Less: comprehensive loss allocated to non-controlling interests | (20,094) | (30,930) | (51,773) | (49,382) |
Comprehensive loss attributable to The J.G. Wentworth Company | $ (18,713) | $ (26,697) | $ (45,593) | $ (40,338) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Changes in Stockholders' (Deficit) Equity (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands | Total | Common Stock - Class A | Common Stock - Class B | Accumulated Other Comprehensive Income | Non- controlling Interest | Accumulated Deficit | Additional Paid-In- Capital | Treasury Stock |
Balance at Dec. 31, 2015 | $ 56,159 | $ 0 | $ 24,349 | $ (70,765) | $ 104,713 | $ (2,138) | ||
Balance (in shares) at Dec. 31, 2015 | 15,534,372 | 8,908,698 | 542,072 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net loss | (97,366) | (51,773) | (45,593) | |||||
Share-based compensation | 997 | 454 | 543 | |||||
Share-based compensation (in shares) | (2,439) | |||||||
Exchange of JGW LLC common interests into Class A common stock | (321) | 321 | ||||||
Exchange of JGW LLC common Interests into Class A common stock (in shares) | 195,445 | (195,445) | ||||||
Balance at Sep. 30, 2016 | $ (40,210) | $ 0 | $ (27,291) | $ (116,358) | $ 105,577 | $ (2,138) | ||
Balance (in shares) at Sep. 30, 2016 | 15,729,817 | 8,710,814 | 542,072 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (97,366) | $ (89,720) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Provision for losses | 4,647 | 4,610 |
Depreciation | 2,052 | 1,677 |
Impairment charges | 5,483 | 29,860 |
Changes in mortgage servicing rights, net | (3,320) | (548) |
Amortization of finance receivables acquisition costs | 51 | 446 |
Amortization of intangibles | 1,594 | 1,284 |
Amortization of debt issuance costs | 11,063 | 5,914 |
Proceeds from sale of and principal payments on mortgage loans held for sale | 2,343,415 | 362,723 |
Originations and purchases of mortgage loans held for sale | (2,462,754) | (352,641) |
Change in unrealized gains/losses on finance receivables | (92,880) | 5,320 |
Change in unrealized gains/losses on long-term debt | 167,243 | (66,711) |
Change in unrealized gains/losses on derivatives | 3,034 | (1,168) |
Net proceeds from sale of finance receivables | 271,331 | 0 |
Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | (61,781) | (8,946) |
Purchases of finance receivables | (204,775) | (307,381) |
Collections on finance receivables | 404,520 | 417,362 |
Gain on sale of finance receivables | (69,597) | 0 |
Recoveries of finance receivables | 137 | 1 |
Accretion of interest income | (141,885) | (139,808) |
Accretion of interest expense | (23,611) | (30,677) |
Gain on extinguishment of debt | 0 | (593) |
Share-based compensation expense | 997 | 1,389 |
Change in marketable securities | (3,921) | 5,957 |
Installment obligations expense, net | 5,279 | (4,300) |
Decrease in fair value of life settlement contracts | 0 | 13 |
Premiums and other costs paid, and proceeds from sale of life settlement contracts | 0 | (13) |
Deferred income taxes, net | (16,787) | (15,698) |
(Increase) decrease in operating assets: | ||
Restricted cash and investments | (7,809) | 4,588 |
Other assets | 8,236 | (1,547) |
Other receivables | (1,547) | 16 |
Increase (decrease) in operating liabilities: | ||
Accrued expenses and accounts payable | 8,464 | 7,928 |
Accrued interest | 3,934 | 3,694 |
Other liabilities | 7 | 1,642 |
Net cash provided by (used in) operating activities | 53,454 | (165,327) |
Cash flows from investing activities: | ||
Purchase of Home Lending, net of cash acquired | (7,630) | (46,595) |
Purchases of premises and equipment, net of sales proceeds | (754) | (2,871) |
Net cash used in investing activities | (8,384) | (49,466) |
Cash flows from financing activities: | ||
Payments of equity financing costs | 0 | (61) |
Purchases of treasury stock | 0 | (14,471) |
Issuance of VIE long-term debt | 216,806 | 407,332 |
Payments for debt issuance costs | (1,133) | (703) |
Payments on capital lease obligations | (37) | 0 |
Repayments of long-term debt and derivatives | (390,980) | (244,910) |
Gross proceeds from revolving credit facilities | 2,583,134 | 538,755 |
Repayments of revolving credit facilities | (2,423,504) | (477,100) |
Issuance of installment obligations payable | 3,472 | 998 |
Purchase of marketable securities | (3,472) | (998) |
Repayments of installment obligations payable | (13,966) | (14,238) |
Proceeds from sale of marketable securities | 13,966 | 14,238 |
Net cash (used in) provided by financing activities | (15,714) | 208,842 |
Net increase (decrease) in cash and cash equivalents | 29,356 | (5,951) |
Cash and cash equivalents at beginning of year | 57,322 | 41,648 |
Cash and cash equivalents at end of period | 86,678 | 35,697 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 176,633 | 175,570 |
Cash paid for income taxes | 101 | 127 |
Retained mortgage servicing rights in connection with sale of mortgage loans | 11,404 | 1,298 |
Mortgage loans subject to repurchase rights from Ginnie Mae | 40,005 | 39,125 |
Exchange of LLC Common Interests for shares of Class A common stock | 321 | 8,448 |
Re-issuance of Treasury stock in connection with acquisition | 0 | 12,956 |
Amount due to sellers in connection with acquisition | $ 0 | $ 6,383 |
Background, Basis of Presentati
Background, Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background, Basis of Presentation and Significant Accounting Policies | Background, Basis of Presentation and Significant Accounting Policies Organization and Description of Business Activities The J.G. Wentworth Company (the "Corporation") is a Delaware holding company that was incorporated on June 21, 2013. The Corporation operates through its managing membership in The J.G. Wentworth Company, LLC ("JGW LLC"), the Corporation's sole operating asset. JGW LLC is a controlled and consolidated subsidiary of the Corporation whose sole asset is its membership interest in J.G. Wentworth, LLC. The "Company" refers collectively to the Corporation and, unless otherwise stated, all of its subsidiaries. The Company, operating through its subsidiaries and affiliates, has its principal offices in Radnor, Pennsylvania and Woodbridge, Virginia. The Company is a diversified financial services company that specializes in providing solutions to consumers in need of cash. The Company's direct-to-consumer businesses use the internet, television, direct mailing and other channels to offer a variety of solutions including structured settlement payment purchasing, mortgage origination (both purchase and refinancing), prepaid cards and provision to access personal lending. The Company warehouses, securitizes, sells or otherwise finances the financial assets that it originates or purchases in transactions that are structured to ultimately generate cash proceeds to the Company that exceed the purchase price it paid for those assets. The Company has identified the following two reportable segments: (i) Structured Settlement Payments ("Structured Settlements") - Structured Settlements provides liquidity to individuals with financial assets such as structured settlements, annuities and lottery winnings by either purchasing these financial assets for a lump-sum payment, issuing installment obligations payable over time, or serving as a broker to other purchasers of those financial assets. The Company engages in warehousing and subsequent resale or securitization of these various financial assets. Structured Settlements also includes prepaid card solutions and provision to (i) access personal lending and (ii) funding for pre-settled legal claims as well as our corporate activities. (ii) Home Lending - Home Lending is primarily engaged in retail lending, originating primarily Federal Housing Administration ("FHA"), U.S. Department of Veterans Affairs ("VA") and conventional loans, and is approved as a Title II, non-supervised direct endorsement mortgagee with the U.S. Department of Housing and Urban Development ("HUD"). In addition, Home Lending is an approved issuer with the Government National Mortgage Association ("Ginnie Mae"), Federal Home Loan Mortgage Corporation ("Freddie Mac") and U.S. Department of Agriculture ("USDA"), as well as an approved seller and servicer with the Federal National Mortgage Association ("Fannie Mae"). Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and Article 10 of Regulation S-X and do not include all of the information required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments which are necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods presented. All such adjustments are of a normal and recurring nature. The results of operations for interim periods are not necessarily indicative of the results for the entire year. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the amounts of revenues and expenses during the reporting periods. The most significant balance sheet accounts that could be affected by such estimates are variable interest entity ("VIE") finance receivables, at fair value; other finance receivables, at fair value; mortgage loans held for sale, at fair value; mortgage servicing rights, at fair value; intangible assets; goodwill; VIE derivative liabilities, at fair value; and VIE long-term debt issued by securitization and permanent financing trusts, at fair value. Actual results could differ from those estimates and such differences could be material. These interim financial statements should be read in conjunction with the Company's 2015 audited consolidated financial statements that are included in its Annual Report on Form 10-K. The accompanying condensed consolidated financial statements include the accounts of the Corporation, its wholly-owned subsidiaries, including those entities that are considered VIEs where the Company has been determined to be the primary beneficiary in accordance with Accounting Standards Codification ("ASC") 810, Consolidation ("ASC 810"). JGW LLC meets the definition of a VIE under ASC 810. Further, the Corporation is the primary beneficiary of JGW LLC as a result of its control over JGW LLC. As the primary beneficiary of JGW LLC, the Corporation consolidates the financial results of JGW LLC and records a non-controlling interest for the economic interest in JGW LLC not owned by the Corporation. The Corporation's and the non-controlling interests' economic interest in JGW LLC was 54.6% and 45.4% , respectively, as of September 30, 2016 . The Corporation's and the non-controlling interests' economic interest in JGW LLC was 53.9% and 46.1% , respectively, as of December 31, 2015 . Net loss attributable to the non-controlling interests in the condensed consolidated statements of operations represents the portion of loss attributable to the economic interest in JGW LLC held by entities other than the Corporation. The allocation of net loss to the non-controlling interests is based on the weighted average percentage of JGW LLC owned by the non-controlling interests during the reporting period. The non-controlling interests' weighted average economic interests in JGW LLC for the three months ended September 30, 2016 and 2015 were 45.4% and 47.3% , respectively. The non-controlling interests' weighted average economic interests in JGW LLC for the nine months ended September 30, 2016 and 2015 were 45.5% and 49.0% , respectively. The net loss attributable to The J.G. Wentworth Company in the condensed consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 does not necessarily reflect the Corporation's weighted average economic interests in JGW LLC for the respective periods because the majority of the benefit for income taxes was specifically attributable to the legal entity The J.G. Wentworth Company, and thus was not allocated to the non-controlling interests. For the three months ended September 30, 2016 and 2015 , $(5.5) million and $(7.8) million of the $(3.9) million and $(7.3) million total tax benefit, respectively, was specifically attributable to The J.G. Wentworth Company. For the nine months ended September 30, 2016 and 2015 , $(16.5) million and $(13.3) million of the $(16.8) million and $(12.4) million total tax benefit, respectively, was specifically attributable to The J.G. Wentworth Company. Refer to Note 16 for a description of the Company's income taxes. Non-controlling interests in the condensed consolidated balance sheets represent the portion of equity (deficit) attributable to the non-controlling interests of JGW LLC. The allocation of equity (deficit) to the non-controlling interests in JGW LLC is based on the percentage owned by the non-controlling interests in the entity. All material inter-company balances and transactions are eliminated in consolidation. Certain prior-period amounts have been reclassified to conform to current-period presentation. Significant Accounting Policies There have been no significant changes to the Company's accounting policies as previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2015 . |
Recently Adopted Accounting Pro
Recently Adopted Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements There were no accounting pronouncements adopted during the nine months ended September 30, 2016 . |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations In accordance with ASC 805, Business Combinations ("ASC 805"), the Company accounts for acquisitions by applying the acquisition method of accounting, which requires among other things, that the assets acquired and liabilities assumed in a business combination be measured at their fair values as of the closing date of the acquisition. On July 31, 2015, the Company completed its acquisition of Home Lending. The results of Home Lending are included in the Company's condensed consolidated statements of operations from the date of acquisition and are reported as a separate reportable segment. Home Lending is primarily engaged in originating, selling and servicing residential mortgage loans. Its acquisition represented a major step in the Company's strategy to become a more diversified financial services company. The final acquisition fair value of the consideration paid was $74.6 million , which consisted of $53.2 million that was initially paid in cash and $13.0 million that was paid through the issuance of 1,572,327 shares of the Company's Class A common stock. The fair value of the 1,572,327 Class A common shares issued was calculated using the closing trading price of the Company's common shares as of the acquisition date. An additional $8.4 million of consideration was accrued to reflect the estimated outcome of certain post-close adjustments included in the stock purchase agreement, of which $7.6 million and $0.8 million was paid in the three months ended March 31, 2016 and December 31, 2015, respectively, and thereby concluded our measurement-period adjustments. The excess of the consideration paid over the fair value of net assets acquired was recorded as goodwill in the amount of $8.4 million which was assigned to the Home Lending reporting segment. We elected to treat the acquisition of the stock as an asset acquisition, and, consequently, the goodwill and the intangible assets are expected to be deductible for income tax purposes under section 197 of the Internal Revenue Code of 1986. Of the $23.8 million of acquired intangible assets, $13.2 million was assigned to licenses and approvals that are not subject to amortization. The remaining $10.6 million of acquired intangible assets were assigned a weighted-average useful life of 9.3 years. These finite-lived assets included affinity relationships of $9.5 million ( 10 -year useful life) and a trade name of $1.1 million ( 3 -year useful life). The following table summarizes the supplemental pro forma information of the combined Company for the nine months ended September 30, 2015 and 2014, respectively, as if the acquisition of Home Lending occurred on January 1, 2014. Nine Months Ended September 30, 2015 2014 (In thousands) Pro forma total revenues 257,048 411,451 Pro forma net loss before income taxes (1) (92,642 ) 98,460 (1) Includes adjustments for acquisition related costs of $3.8 million for nine months ended September 30, 2014. These pro forma results are presented for illustrative purposes and are not intended to represent or be indicative of the actual consolidated results of operations of the Company that would have been achieved had the acquisition been consummated on January 1, 2014, nor are they intended to represent or be indicative of future results of operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill of $8.4 million is related to the Home Lending segment as of September 30, 2016 and December 31, 2015 . There is no goodwill related to the Structured Settlements segment. Intangible assets subject to amortization include the following as of: Structured Settlements Home Lending Cost Accumulated Amortization Cost Accumulated Amortization (In thousands) September 30, 2016 Database $ 4,609 $ (4,326 ) $ — $ — Customer relationships 16,096 (15,709 ) — — Domain names 486 (458 ) — — Trade name (1) 613 (105 ) 1,095 (582 ) Affinity relationships — — 9,547 (1,114 ) Intangible assets subject to amortization $ 21,804 $ (20,598 ) $ 10,642 $ (1,696 ) December 31, 2015 Database $ 4,609 $ (4,250 ) $ — $ — Customer relationships 18,844 (15,375 ) — — Domain names 486 (450 ) — — Trade name — — 1,095 (228 ) Affinity relationships — — 9,547 (397 ) Intangible assets subject to amortization $ 23,939 $ (20,075 ) $ 10,642 $ (625 ) (1) During the three months ended June 30, 2016, the trade name the Company acquired in connection with the Company's 2011 acquisition of Orchard Acquisition Company ("OAC") was determined to be a definite-lived asset, subject to amortization. As of September 30, 2016 and December 31, 2015 , the carrying value of this trade name was $0.5 million and $3.3 million , respectively. As of September 30, 2016 and December 31, 2015 , the carrying value of Home Lending's indefinite-lived licenses and approvals intangible asset was $13.2 million . Amortization expense for the three months ended September 30, 2016 and 2015 was $0.5 million and $0.4 million , respectively. Amortization expense for the nine months ended September 30, 2016 and 2015 was $1.6 million and $1.3 million , respectively. Amortization of intangible assets is included in depreciation and amortization in the Company's condensed consolidated statements of operations. Estimated future amortization expense for amortizable intangible assets for the three months ending December 31, 2016 and for each of the succeeding five calendar years and thereafter is as follows: Estimated Future Amortization Expense (In thousands) Remainder of 2016 $ 484 2017 1,743 2018 1,560 2019 1,035 2020 957 2021 954 Thereafter 3,419 Total future amortization expense $ 10,152 We evaluate our long-lived assets, including finite and indefinite-lived intangible assets, for impairment on an annual basis, or more frequently if events or changes in circumstances indicate a potential impairment between annual measurement dates. Management qualitatively determines whether it is more likely than not (i.e., a likelihood of greater than 50%) that the fair value of the Company's reporting units and intangible assets are less than their carrying amounts prior to performing the two-step process to evaluate the potential impairment of goodwill and intangible assets with indefinite useful lives. In the third quarter of 2016, we performed a qualitative assessment based, in part, on the factors outlined below: • Macroeconomic factors including the interest rate environment and the securitization and warehouse credit market; • Industry specific factors including significant changes in competition and regulatory impediments; • Cost related factors including an increase in labor and other operating costs; • Overall financial performance which incorporates cash flows, revenues and earnings; and • Other relevant entity-specific events such as changes in management, changes in stock price, and counterparty risks. In performing our qualitative assessment, we identified and considered all relevant events and circumstances, including the Company's reporting units' recent financial performance, projected operating results, and the Company’s market capitalization. Based on the weight of evidence and the significance of the identified factors, we determined that it was not more likely than not that the fair value of the Company's goodwill, indefinite lived intangible assets and long-lived assets were less than their carrying values. During the nine months ended September 30, 2016 , the Company determined the indefinite-lived trade name and the definite-lived customer relationships intangible assets within the Structured Settlements reporting unit were impaired and recorded impairment charges of $2.8 million for the indefinite-lived trade name and $2.7 million for the definite-lived customer relationships in its condensed consolidated statements of operations. Further, we determined that the remaining useful lives of our definite-lived intangible assets within the Structured Settlements reporting unit, namely databases and customer relationships, were less than previously assigned and consequently revised them to their currently estimated useful lives of approximately three years. During the three months ended September 30, 2015, the Company re-evaluated its internal projections for its Structured Settlements reporting unit based on lower than anticipated results, a significant decline in the stock price of the Company's Class A common stock, and a re-assessment of the reporting unit's brand strategy. Accordingly, the Company determined these events constituted a triggering event requiring the Company to perform an impairment analysis. As a result of this analysis, the Company determined the trade name within the Structured Settlements reporting unit was impaired and recorded an impairment charge of $29.9 million in its condensed consolidated statements of operations for the three and nine months ended September 30, 2015. While management believes its assumptions are reasonable and will continuously evaluate for future potential impairment indicators, there can be no assurance that estimates and assumptions made for purposes of its impairment testing will prove to be accurate predictions of the future. Less than anticipated revenues generated by our intangible assets and reporting units, an increase in discount rate, and/or a decrease in our internal projected revenues used in the discounted cash flow model could result in future impairment charges. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Under ASC 820, Fair Value Measurements and Disclosures ("ASC 820"), fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard focuses on the exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. U.S. GAAP establishes a fair value reporting hierarchy to maximize the use of observable inputs when measuring fair value and defines the three levels of inputs as noted below: • Level 1 — inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. • Level 2 — inputs to the valuation methodology include quoted prices in markets that are not active or quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 — inputs to the valuation methodology are unobservable, reflecting the entity's own assumptions about assumptions market participants would use in pricing the asset or liability. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Fair value is a market based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity specific measure. Therefore, even when market assumptions are not readily available, the Company's own assumptions are set to reflect those that market participants would use in pricing the assets or liabilities at the measurement date. The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company also evaluates various factors to determine whether certain transactions are orderly and may make adjustments to transactions or quoted prices when the volume and level of activity for an asset or liability have decreased significantly. The above conditions could cause certain assets and liabilities to be reclassified from Level 1 to Level 2 or Level 3 or reclassified from Level 2 to Level 3. The inputs or methodology used for valuing the assets or liabilities are not necessarily an indication of the risk associated with the assets and liabilities. The Company uses various valuation techniques and assumptions in estimating fair value. The assumptions used to estimate the value of the Company’s assets and liabilities have varying degrees of impact to the overall fair value. This process involves the gathering of multiple sources of information, including broker quotes, values provided by pricing services, market indices and pricing matrices. When observable market prices for the asset or liability are not available, the Company employs various modeling techniques, such as discounted cash flow analysis, to estimate the fair value of the Company’s assets and liabilities. For certain assets and liabilities, the Company developed internal models which are validated and calibrated regularly by management with assistance from third parties, as appropriate. Any models used to determine fair values, including the inputs and the assumptions therein, are reviewed as part of the Company’s model validation process. The following describes the methods used in estimating the fair values of certain financial statement items: For assets and liabilities measured at fair value in the condensed consolidated financial statements : Marketable securities, at fair value — The fair value of investments in marketable securities is based on quoted market prices. VIE and other finance receivables, at fair value, and VIE long-term debt issued by securitization and permanent financing trusts, at fair value — The estimated fair value of VIE finance receivables, at fair value, other finance receivables, at fair value, and VIE long-term debt issued by securitization and permanent financing trusts, at fair value, is determined based on a discounted cash flow model using expected future collections and payments discounted at a calculated rate as described below. For guaranteed structured settlements and annuities, the Company allocates the projected cash flows based on the waterfall of the securitization and permanent financing trusts (collectivity the "Trusts"). The waterfall includes fees to operate the Trusts (servicing fees, administrative fees, etc.), note holder principal and note holder interest. Many of the Trusts have various tranches of debt that have varying subordinations in the waterfall calculation. Refer to Note 14 for additional information. The remaining cash flows, net of those obligations, are considered a residual interest which is projected to be paid to the Company as the retained interest holder. The projected finance receivable cash flows used to pay the obligations of the Trusts are discounted using a calculated rate derived from the fair value interest rates of the debt in the Trusts. The fair value interest rate of the debt is derived using a swap curve and applying a calculated spread that is based on either: (i) market indices that are highly correlated with the spreads from the Company's previous securitizations and asset sales or (ii) the Company's most recent securitization or asset sale if it occurs within close proximity to the reporting date. The calculated spread is adjusted for the specific attributes of the debt in the Trusts, such as years to maturity and credit grade. The debt's fair value interest rates are applied to the projected future cash payments paid on the principal and interest to derive the debt's fair value. The debt's fair value interest rates are blended using the debt's principal balance to obtain a weighted average fair value interest rate which is used to determine the value of the finance receivables' asset cash flows. In addition, the Company considers transformation costs and profit margin associated with its securitizations to derive the fair value of its finance receivables' asset cash flows. The finance receivables' residual cash flows remaining after the projected obligations of the Trusts are satisfied are discounted using a separate calculated yield ( 10.36% and 8.30% as of September 30, 2016 and December 31, 2015 , respectively, with a weighted average life of 20 years as of both dates). The residual cash flows are adjusted for a loss assumption of 0.25% over the life of the finance receivables in its fair value calculation. Finance receivable cash flows, including the residual asset cash flows, are included in VIE and other finance receivables, at fair value, in the Company's condensed consolidated balance sheets. In connection with the refinancing of our Residual Term Facility, the Company issued $207.5 million in notes collateralized by the residual asset cash flows and elected the fair value option, as permitted by ASC 825, Financial Instruments ("ASC 825"). Refer to Notes13 and 14 for additional information. The associated debt's projected future cash payments for principal and interest are included in VIE long-term debt issued by securitization and permanent financing trusts, at fair value. For finance receivables not yet securitized, the Company uses the calculated spreads based on market indices, while also considering transformation costs and profit margin to determine the fair value yield adjusting for expected losses and applying the residual yield for the cash flows the Company projects would make up the retained interest in a securitization. There are no material differences in valuation techniques and inputs used to develop the Company’s fair value measurements for finance receivables not securitized and those that are securitized. For the Company's Life Contingent Structured Settlements ("LCSS") receivables and long-term debt issued by its related permanent financing trusts, the blended weighted average discount rate of the LCSS receivables at the time of borrowing (which occurs frequently throughout the year) is used to determine the fair value of the receivables' cash flows. The residual cash flows relating to the LCSS receivables are discounted using a separate yield based on the assumed rating of the residual tranche reflecting the life contingent feature of these receivables. Mortgage loans held for sale, at fair value — The fair value of mortgage loans held for sale is calculated using observable market information including pricing from actual market transactions, investor commitment prices, or broker quotations. Mortgage servicing rights, at fair value — The Company uses a discounted cash flow approach to estimate the fair value of MSRs incorporating assumptions management believes market participants would use in determining the fair value. The assumptions used in the estimation of the fair value of MSRs include contractual service fees, ancillary income and late fees, the cost of servicing, the discount rate, the float rate, the inflation rate, prepayment speeds and default rates. Interest rate lock commitments, at fair value — The Company estimates the fair value of interest rate lock commitments ("IRLCs") based on the value of the underlying mortgage loan, quoted mortgage backed securities ("MBS") prices and estimates of the fair value of the MSRs and the probability, commonly referred to as the "pull-through" rates, that the mortgage loan will close within the terms of the IRLCs. These "pull-through" rates are based on the Company's historical data and reflect the Company's best estimate of the likelihood that a commitment will ultimately result in a closed loan. VIE derivative liabilities, at fair value — The fair value of interest rate swaps is based on pricing models which consider current interest rates and the amount and timing of cash flows. Forward sale commitments, at fair value — The fair value of forward sale commitments is based on pricing models which consider current interest rates and the amount and timing of cash flows. Assets and liabilities for which fair value is only disclosed in the notes to the condensed consolidated financial statements : VIE and other finance receivables, net of allowances for losses — The fair value of structured settlement, annuity, and lottery receivables is estimated based on the present value of future expected cash flows using discount rates commensurate with the risks involved. The fair value of pre-settlement funding transactions and attorney cost financing is based on expected losses and historical loss experience associated with the respective receivables using management's best estimate of the key assumptions regarding credit losses. Other receivables, net of allowances for losses — The estimated fair value of advances receivable and certain other receivables, which are generally recovered in less than three months , is equal to the carrying amount. The carrying value of other receivables which have expected recoverability of greater than three months , which consist primarily of a note receivable, are estimated based on the present value of future expected cash flows using management's best estimate of certain key assumptions, including discount rates commensurate with the risks involved. Term loan payable — The estimated fair value of the term loan payable is based on recently executed transactions and market price quotations obtained from third parties. VIE borrowings under revolving credit facilities and other similar borrowings — The estimated fair value of borrowings under revolving credit facilities and other similar borrowings is based on the borrowing rates for debt with similar terms and remaining maturities. Other borrowings under revolving credit facilities and other similar borrowings — The estimated fair value of borrowings under revolving credit facilities and similar borrowings is based on the borrowing rates for debt with similar terms and remaining maturities. VIE long-term debt — The estimated fair value of VIE long-term debt is based on fair value borrowing rates available to the Company based on recently executed transactions with similar underlying collateral characteristics, reflecting the specific terms and conditions of the debt. Installment obligations payable — Installment obligations payable are reported at contract value determined based on changes in the measuring indices selected by the obligees under the terms of the obligations over the length of the obligations. The fair value of installment obligations payable is estimated to be equal to the carrying value. The following table sets forth the Company's assets and liabilities that are carried at fair value on the Company's condensed consolidated balance sheets as of: Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total at Fair Value (In thousands) September 30, 2016: Assets Marketable Securities: Equity securities US large cap $ 29,123 $ — $ — $ 29,123 US mid cap 4,994 — — 4,994 US small cap 6,467 — — 6,467 International 10,998 — — 10,998 Other equity 3,078 — — 3,078 Total equity securities 54,660 — — 54,660 Fixed income securities US fixed income 16,779 — — 16,779 International fixed income 1,048 — — 1,048 Other fixed income — — — — Total fixed income securities 17,827 — — 17,827 Other securities Cash & cash equivalents 4,105 — — 4,105 Alternative investments 913 — — 913 Annuities 2,274 — — 2,274 Total other securities 7,292 — — 7,292 Total marketable securities, at fair value 79,779 — — 79,779 VIE and other finance receivables, at fair value — — 4,228,982 4,228,982 Mortgage loans held for sale, at fair value — 308,490 — 308,490 Mortgage servicing rights, at fair value — — 32,607 32,607 Interest rate lock commitments, at fair value (1) — — 13,346 13,346 Total Assets $ 79,779 $ 308,490 $ 4,274,935 $ 4,663,204 Liabilities VIE derivative liabilities, at fair value $ — $ 69,764 $ — $ 69,764 VIE long-term debt issued by securitization and permanent financing trusts, at fair value — — 4,045,633 4,045,633 Forward sale commitments, at fair value (2) — 1,920 — 1,920 Total Liabilities $ — $ 71,684 $ 4,045,633 $ 4,117,317 (1) Included in other assets on the Company's condensed consolidated balance sheet. (2) Included in other liabilities on the Company's condensed consolidated balance sheet. Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total at Fair Value (In thousands) December 31, 2015 Assets Marketable Securities: Equity securities US large cap $ 28,670 $ — $ — $ 28,670 US mid cap 5,213 — — 5,213 US small cap 5,477 — — 5,477 International 14,068 — — 14,068 Other equity 3,308 — — 3,308 Total equity securities 56,736 — — 56,736 Fixed income securities US fixed income 16,945 — — 16,945 International fixed income 1,217 — — 1,217 Other fixed income — — — — Total fixed income securities 18,162 — — 18,162 Other securities Cash & cash equivalents 7,634 — — 7,634 Alternative investments 161 — — 161 Annuities 2,301 — — 2,301 Total other securities 10,096 — — 10,096 Total marketable securities, at fair value 84,994 — — 84,994 VIE and other finance receivables, at fair value — — 4,386,147 4,386,147 Mortgage loans held for sale, at fair value — 124,508 — 124,508 Mortgage servicing rights, at fair value — — 29,287 29,287 Interest rate lock commitments, at fair value (1) — — 4,934 4,934 Total Assets $ 84,994 $ 124,508 $ 4,420,368 $ 4,629,870 Liabilities VIE derivative liabilities, at fair value $ — $ 66,519 $ — $ 66,519 VIE long-term debt issued by securitization and permanent financing trusts, at fair value — — 3,928,818 3,928,818 Forward sale commitments, at fair value (2) — 147 — 147 Total Liabilities $ — $ 66,666 $ 3,928,818 $ 3,995,484 (1) Included in other assets on the Company's condensed consolidated balance sheet. (2) Included in other liabilities on the Company's condensed consolidated balance sheet. The following table sets forth the Company's quantitative information about its Level 3 fair value measurements as of: Fair Value Valuation Technique Significant Unobservable Input Range (Weighted Average) (In thousands) September 30, 2016 Assets VIE and other finance receivables, at fair value $ 4,228,982 Discounted cash flow Discount rate 2.72% - 11.90% (3.93%) Mortgage servicing rights, at fair value 32,607 Discounted cash flow Discount rate 9.50% - 14.07% (10.15%) Prepayment speed 6.80% - 31.22% (10.81%) Cost of servicing $65 - $90 ($73) Interest rate lock commitments, at fair value 13,346 Internal model Pull-through rate 32.88% - 91.52% (61.69%) Total Assets $ 4,274,935 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair value $ 4,045,633 Discounted cash flow Discount rate 1.48% - 11.70% (3.84%) Total Liabilities $ 4,045,633 December 31, 2015 Assets VIE and other finance receivables, at fair value $ 4,386,147 Discounted cash flow Discount rate 3.33% - 12.30% (4.47%) Mortgage servicing rights, at fair value 29,287 Discounted cash flow Discount rate 9.54% - 14.06% (10.27%) Prepayment speed 8.24% - 20.56% (9.06%) Cost of servicing $65 - $90 ($75) Interest rate lock commitments, at fair value 4,934 Internal model Pull-through rate 37.44% - 100.00% (74.91%) Total Assets $ 4,420,368 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair value $ 3,928,818 Discounted cash flow Discount rate 1.69% - 12.30% (4.13%) Total Liabilities $ 3,928,818 A significant unobservable input used in the fair value measurement of most of the Company's assets and liabilities measured at fair value using unobservable inputs (Level 3) is the discount rate. Significant increases (decreases) in the discount rate used to estimate fair value in isolation would result in a significantly lower (higher) fair value measurement of the corresponding asset or liability. An additional significant unobservable input used in the fair value measurement of mortgage servicing rights, at fair value, is prepayment speed. Significant increases (decreases) in the prepayment speed used to estimate the fair value of mortgage servicing rights in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the cost of servicing used to estimate the fair value of mortgage servicing rights in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in the pull-through rate used to estimate the fair value of IRLCs in isolation would result in a significantly higher (lower) fair value measurement. The changes in assets measured at fair value using significant unobservable inputs (Level 3) during the nine months ended September 30, 2016 and 2015 were as follows: VIE and other finance receivables, at fair value Mortgage servicing rights, at fair value Interest rate lock commitments, at fair value Total (In thousands) Balance as of December 31, 2015 $ 4,386,147 $ 29,287 $ 4,934 $ 4,420,368 Total included in earnings (losses): 0 Unrealized gains 92,880 3,320 13,346 109,546 Realized gain on sale of finance receivable 69,597 — — 69,597 Included in other comprehensive gain — — — — Purchases of finance receivables 204,775 — — 204,775 Interest accreted 131,392 — — 131,392 Payments received (384,478 ) — — (384,478 ) Sale of finance receivables (271,331 ) — — (271,331 ) Transfers to/from other balance sheet line items — — (4,934 ) (4,934 ) Transfers in and/or out of Level 3 — — — — Balance as of September 30, 2016 $ 4,228,982 $ 32,607 $ 13,346 $ 4,274,935 The amount of net gains (losses) for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held as of: September 30, 2016 $ 92,880 $ 3,320 $ 13,346 $ 109,546 Balance as of December 31, 2014 $ 4,523,835 $ — $ — $ 4,523,835 Total included in earnings (losses): 0 Unrealized (losses) gains (5,320 ) 548 7,822 3,050 Included in other comprehensive gain — — — — Purchases of finance receivables 296,468 — — 296,468 Interest accreted 124,870 — — 124,870 Payments received (384,726 ) — — (384,726 ) Transfers to/from other balance sheet line items — — (5,221 ) (5,221 ) Assets acquired in connection with the Home Lending acquisition — 27,638 5,221 32,859 Transfers in and/or out of Level 3 — — — — Balance as of September 30, 2015 $ 4,555,127 $ 28,186 $ 7,822 $ 4,591,135 The amount of net gains (losses) for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held as of: September 30, 2015 $ (5,320 ) $ 548 $ 7,822 $ 3,050 The changes in liabilities measured at fair value using significant unobservable inputs (Level 3) during the nine months ended September 30, 2016 and 2015 were as follows: VIE long-term debt issued (In thousands) Balance as of December 31, 2015 $ 3,928,818 Total included in (earnings) losses: Unrealized losses 167,243 Issuances 216,806 Interest accreted (26,894 ) Repayments (240,340 ) Transfers in and/or out of Level 3 — Balance as of September 30, 2016 $ 4,045,633 The amount of net (gains) losses for the period included in revenues attributable to the change in unrealized gains or losses relating to long-term debt still held as of: September 30, 2016 $ 167,243 Balance as of December 31, 2014 $ 4,031,864 Total included in (earnings) losses: Unrealized gains (67,305 ) Issuances 380,417 Interest accreted (33,659 ) Repayments (237,107 ) Transfers in and/or out of Level 3 — Balance as of September 30, 2015 $ 4,074,210 The amount of net (gains) losses for the period included in revenues attributable to the change in unrealized gains or losses relating to long-term debt still held as of: September 30, 2015 $ (66,712 ) Realized and unrealized gains and losses included in revenues in the accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 are reported in the following revenue categories: VIE and other finance receivables and long-term debt, at fair value Mortgage servicing rights, at fair value Interest rate lock commitments, at fair value (In thousands) Net (losses) gains included in revenues for the three months ended September 30, 2016 $ (14,238 ) $ 1,480 $ 13,346 Unrealized (losses) gains for the three months ended September 30, 2016 relating to assets and long-term debt still held as of September 30, 2016 $ (29,616 ) $ 1,480 $ 13,346 Net (losses) gains included in revenues for the nine months ended September 30, 2016 $ (4,766 ) $ 3,320 $ 13,346 Unrealized (losses) gains for the nine months ended September 30, 2016 relating to assets and long-term debt still held as of September 30, 2016 $ (74,363 ) $ 3,320 $ 13,346 Net gains included in revenues for the three months ended September 30, 2015 $ 13,952 $ 548 $ 4,934 Unrealized gains for the three months ended September 30, 2015 relating to assets and long-term debt still held as of September 30, 2015 $ 13,952 $ 548 $ 4,934 Net gains included in revenues for the nine months ended September 30, 2015 $ 61,985 $ 548 $ 4,934 Unrealized gains for the nine months ended September 30, 2015 relating to assets and long-term debt still held as of September 30, 2015 $ 61,392 $ 548 $ 4,934 The Company discloses fair value information about financial instruments, whether or not recorded at fair value in the Company's condensed consolidated balance sheets, for which it is practicable to estimate that value. As such, the estimated fair values of the Company's financial instruments are as follows: September 30, 2016 December 31, 2015 (In thousands) Estimated Carrying Estimated Carrying Financial assets: VIE and other finance receivables, at fair value $ 4,228,982 $ 4,228,892 $ 4,386,147 $ 4,386,147 VIE and other finance receivables, net of allowance for losses (1) 90,993 96,176 103,609 110,342 Other receivables, net of allowance for losses (1) 17,832 17,832 16,285 16,285 Mortgage loans held for sale, at fair value 308,490 308,490 124,508 124,508 Mortgage servicing rights, at fair value 32,607 32,607 29,287 29,287 Marketable securities, at fair value 79,779 79,779 84,994 84,994 Interest rate lock commitments, at fair value (2) 13,346 13,346 4,934 4,934 Financial liabilities: Term loan payable (1) 179,472 442,429 325,558 440,181 VIE derivative liabilities, at fair value 69,764 69,764 66,519 66,519 VIE borrowings under revolving credit facilities and other similar borrowings (1) 32,910 32,502 53,737 48,828 Other borrowings under revolving credit facilities and other similar borrowings (1) 297,616 298,199 122,243 122,243 VIE long-term debt (1) 59,611 65,241 194,211 199,363 VIE long-term debt issued by securitization and permanent financing trusts, at fair value 4,045,633 4,045,633 3,928,818 3,928,818 Forward sale commitments, at fair value (3) 1,920 1,920 147 147 Installment obligations payable (1) 79,779 79,779 84,994 84,994 (1) These represent financial instruments not recorded in the condensed consolidated balance sheets at fair value. Such financial instruments would be classified as Level 3 within the fair value hierarchy. (2) Included in the other assets on the Company's condensed consolidated balance sheets. (3) Included in the other liabilities on the Company's condensed consolidated balance sheets. |
VIE and Other Finance Receivabl
VIE and Other Finance Receivables, at Fair Value | 9 Months Ended |
Sep. 30, 2016 | |
VIE and Other Finance Receivables, at Fair Value [Abstract] | |
VIE and Other Finance Receivables, at Fair Value | VIE and Other Finance Receivables, at Fair Value The Company has elected to fair value newly originated guaranteed structured settlements in accordance with ASC 825. Additionally, as a result of the Company including lottery winning finance receivables starting with its 2013-1 asset securitization, the Company also elected to fair value newly originated lottery winnings effective January 1, 2013. VIE and other finance receivables for which the fair value option was elected consist of the following: September 30, 2016 December 31, 2015 (In thousands) Maturity value $ 6,545,534 $ 6,876,687 Unearned income (2,316,552 ) (2,490,540 ) Net carrying amount $ 4,228,982 $ 4,386,147 Encumbrances on VIE and other finance receivables, at fair value were as follows: Encumbrance September 30, 2016 December 31, 2015 (In thousands) VIE securitization debt (2) $ 4,066,953 $ 4,236,520 $100.0 million credit facility (JGW-S III) (1) 23,119 1,664 $300.0 million credit facility (JGW V) (1) 26,407 54,306 $100.0 million permanent financing related to 2011-A (2) 97,917 83,968 Encumbered VIE finance receivables, at fair value 4,214,396 4,376,458 Not encumbered 14,586 9,689 Total VIE and other finance receivables, at fair value $ 4,228,982 $ 4,386,147 (1) Refer to Note 11. (2) Refer to Note 14. As of September 30, 2016 , the residual cash flows from the Company's finance receivables, at fair value, were pledged as collateral for one of our permanent financing VIEs. Refer to Note 14 for additional information. As of December 31, 2015 , the residual cash flows from the Company's finance receivables, at fair value, were pledged as collateral for the Residual Term Facility. Refer to Note 13 for additional information. As of September 30, 2016 and December 31, 2015 , the Company held unsecuritized finance receivables, at fair value, of $162.0 million and $149.6 million , respectively. As of September 30, 2016 and December 31, 2015 , the unsecuritized finance receivables, at fair value, held in a VIE were $147.4 million and $139.9 million , respectively, and were included in VIE finance receivables, at fair value, on the Company’s condensed consolidated balance sheet. In addition, as of September 30, 2016 and December 31, 2015 , the unencumbered and unsecuritized finance receivables, at fair value, were $14.6 million and $9.7 million , respectively, and were included within other finance receivables, at fair value on the Company’s condensed consolidated balance sheet. In February 2016, the Company completed a sale of the first pool of assets associated with its 2016-1 direct asset sale in which $151.5 million of total receivable balances ("TRB") purchases were sold for $91.3 million . The Company recognized a $21.7 million gain. In April 2016, the Company completed a sale of the second pool of assets associated with its 2016-1 direct asset sale in which $115.8 million of TRB purchases were sold for $70.0 million , and the Company realized an $18.6 million gain. In June 2016, the Company completed a sale of the first pool of assets associated with its 2016-2 direct asset sale in which $81.3 million of TRB purchases were sold for $50.8 million . In conjunction with this transaction, the Company realized a $13.9 million gain. In August 2016, the Company completed a sale of the second pool of assets associated with its 2016-2 direct asset sale in which $93.6 million of TRB purchases were sold for $59.2 million , and the Company realized a $15.4 million gain. The aforementioned gains were included in realized and unrealized (losses) gains on VIE and other finance receivables, long-term debt and derivatives in the Company's condensed consolidated statements of operations. No servicing asset or liability was recognized in connection with the Company's direct asset sales. The Company is engaged to service certain finance receivables it sold to third parties. Servicing fee revenue related to those receivables is included in servicing, broker, and other fees in the Company's condensed consolidated statements of operations and was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Servicing fee income $ 245 $ 199 $ 679 $ 614 |
VIE and Other Finance Receiva14
VIE and Other Finance Receivables, net of Allowance for Losses | 9 Months Ended |
Sep. 30, 2016 | |
VIE and Other Finance Receivables, net of Allowance for Losses | |
VIE and Other Finance Receivables, net of Allowance for Losses | VIE and Other Finance Receivables, net of Allowance for Losses VIE and other finance receivables, net of allowance for losses, consist of the following: September 30, 2016 December 31, 2015 (In thousands) Structured settlements and annuities $ 68,669 $ 72,121 Less: unearned income (42,843 ) (45,825 ) 25,826 26,296 Lottery winnings 66,179 70,589 Less: unearned income (17,604 ) (20,153 ) 48,575 50,436 Pre-settlement funding transactions 32,871 44,299 Less: deferred revenue (677 ) (1,144 ) 32,194 43,155 Attorney cost financing 656 821 Less: deferred revenue — — 656 821 VIE and other finance receivables 107,251 120,708 Less: allowance for losses (11,075 ) (10,366 ) VIE and other finance receivables, net of allowances $ 96,176 $ 110,342 Encumbrances on VIE and other finance receivables, net of allowance for losses, are as follows: Encumbrance September 30, 2016 December 31, 2015 (In thousands) VIE long-term debt (2) $ 67,680 $ 69,691 $35.0 million pre-settlement credit facility (1) — 25,401 $45.1 million long-term pre-settlement facility (2) 1,919 3,533 $2.5 million long-term facility (2) 1,181 1,249 Encumbered VIE finance receivables, net of allowances 70,780 99,874 Not encumbered 25,396 10,468 Total VIE and other finance receivables, net of allowances $ 96,176 $ 110,342 (1) Refer to Note 11. (2) Refer to Note 13. As of September 30, 2016 and December 31, 2015 , the Company held unsecuritized finance receivables, net of allowance for losses, of $28.5 million and $40.7 million , respectively. As of September 30, 2016 and December 31, 2015 , the unsecuritized finance receivables, net of allowance for losses, held in a VIE were $19.6 million and $30.2 million , respectively, and were included in VIE finance receivables, net of allowance for losses, on the Company’s condensed consolidated balance sheet. In addition, as of September 30, 2016 and December 31, 2015 , the unencumbered and unsecuritized finance receivables, net of allowance for losses, were $8.9 million and $10.5 million , respectively, and were included within other finance receivables, net of allowance for losses, on the Company’s condensed consolidated balance sheet. Activity in the allowance for losses for VIE and other finance receivables is as follows : Structured settlements and annuities Lottery winnings Pre-settlement Attorney cost Total (In thousands) Three Months Ended September 30, 2016 Allowance for losses: Balance as of June 30, 2016 $ (68 ) $ — $ (9,863 ) $ (284 ) $ (10,215 ) Provision for loss (23 ) (11 ) (1,377 ) — (1,411 ) Charge-offs 1 11 544 — 556 Recoveries (5 ) — — — (5 ) Balance as of September 30, 2016 $ (95 ) $ — $ (10,696 ) $ (284 ) $ (11,075 ) Nine Months Ended September 30, 2016 Allowance for losses: Balance as of December 31, 2015 $ (69 ) $ — $ (10,013 ) $ (284 ) $ (10,366 ) Provision for loss 79 (7 ) (3,144 ) — (3,072 ) Charge-offs 32 7 2,461 — 2,500 Recoveries (137 ) — — — (137 ) Balance as of September 30, 2016 $ (95 ) $ — $ (10,696 ) $ (284 ) $ (11,075 ) Individually evaluated for impairment $ (95 ) $ — $ (2,533 ) $ (284 ) $ (2,912 ) Collectively evaluated for impairment — — (8,163 ) — (8,163 ) Balance as of September 30, 2016 $ (95 ) $ — $ (10,696 ) $ (284 ) $ (11,075 ) VIE and other finance receivables, net: Individually evaluated for impairment $ 25,731 $ 48,575 $ 32 $ 372 $ 74,710 Collectively evaluated for impairment — — 21,466 — 21,466 Balance as of September 30, 2016 $ 25,731 $ 48,575 $ 21,498 $ 372 $ 96,176 Three Months Ended September 30, 2015 Allowance for losses: Balance as of June 30, 2015 $ (50 ) $ (3 ) $ (10,632 ) $ (283 ) $ (10,968 ) Provision for loss (21 ) — (1,190 ) — (1,211 ) Charge-offs 32 — 1,057 — 1,089 Recoveries (5 ) — (3 ) (1 ) (9 ) Balance as of September 30, 2015 $ (44 ) $ (3 ) $ (10,768 ) $ (284 ) $ (11,099 ) Nine Months Ended September 30, 2015 Allowance for losses: Balance as of December 31, 2014 $ (56 ) $ (3 ) $ (9,786 ) $ (283 ) $ (10,128 ) Provision for loss (129 ) (69 ) (3,970 ) — (4,168 ) Charge-offs 149 69 2,991 — 3,209 Recoveries (8 ) — (3 ) (1 ) (12 ) Balance as of September 30, 2015 $ (44 ) $ (3 ) $ (10,768 ) $ (284 ) $ (11,099 ) Individually evaluated for impairment $ (44 ) $ (3 ) $ (2,212 ) $ (284 ) $ (2,543 ) Collectively evaluated for impairment — — (8,556 ) — (8,556 ) Balance as of September 30, 2015 $ (44 ) $ (3 ) $ (10,768 ) $ (284 ) $ (11,099 ) VIE and other finance receivables, net: Individually evaluated for impairment $ 26,328 $ 54,631 $ 184 $ 676 $ 81,819 Collectively evaluated for impairment — — 36,419 — 36,419 Balance as of September 30, 2015 $ 26,328 $ 54,631 $ 36,603 $ 676 $ 118,238 Management makes estimates in determining the allowance for losses on finance receivables. Consideration is given to a variety of factors in establishing these estimates, including current economic conditions and delinquency rates. Because the allowance for losses is dependent on general and other economic conditions beyond the Company's control, it is possible that the estimate for the allowance for losses could differ materially from the currently reported amount in the near term. The Company suspends recognizing interest income on a receivable when it is probable that the Company will be unable to collect all payments according to the contractual terms of the underlying agreement. Management considers all information available in assessing collectability. Collectability is measured on a receivable-by-receivable basis by either the present value of estimated future cash flows discounted at the effective rate, the observable market price for the receivable or the fair value of the collateral if the receivable is collateral dependent. Large groups of smaller balance homogeneous receivables, such as pre-settlement funding transactions, are collectively assessed for collectability. Payments received on past due receivables and finance receivables on which the Company has suspended recognizing revenue are applied first to principal and then to accrued interest. Additionally, the Company generally does not resume recognition of interest income once it has been suspended. As of September 30, 2016 , the Company had discontinued recognition of income on pre-settlement funding transactions in the amount of $13.1 million and attorney cost financing receivables in the amount of $0.4 million . As of December 31, 2015 , the Company had discontinued recognition of income on pre-settlement funding transactions in the amount of $12.2 million and attorney cost financing receivables in the amount of $0.4 million . Pre-settlement funding transactions and attorney cost financing are usually outstanding for a period of time exceeding one year. The Company assesses the status of the individual pre-settlement funding transactions to determine whether there are any case specific concerns that need to be addressed and included in the allowance for losses on finance receivables. The Company also analyzes pre-settlement funding transactions on a portfolio basis based on the age of the advances, as the ability to collect is correlated to the duration of time the advances are outstanding. The following table presents gross finance receivables related to pre-settlement funding transactions based on their year of origination as of: Year of Origination September 30, 2016 December 31, 2015 (In thousands) 2009 $ 945 $ 1,229 2010 2,254 2,759 2011 4,018 5,597 2012 4,413 6,212 2013 5,464 6,772 2014 13,083 17,773 2015 2,694 3,957 2016 — — Total $ 32,871 $ 44,299 Based on historical portfolio experience, the Company reserved for pre-settlement funding transactions and attorney cost financing $10.7 million and $0.3 million , respectively, as of September 30, 2016 , and $10.0 million and $0.3 million , respectively, as of December 31, 2015 . The following table presents portfolio delinquency status excluding pre-settlement funding transactions and attorney cost financing as of: 30-59 60-89 Greater Total Current VIE and Other VIE and Other (In thousands) September 30, 2016 Structured settlements and annuities $ 5 $ 2 $ 82 $ 89 $ 25,737 $ 25,826 $ — Lottery winnings — 1 340 341 48,234 48,575 — Total $ 5 $ 3 $ 422 $ 430 $ 73,971 $ 74,401 $ — December 31, 2015 Structured settlements and annuities $ 9 $ 8 $ 481 $ 498 $ 25,798 $ 26,296 $ — Lottery winnings 3 3 206 212 50,224 50,436 — Total $ 12 $ 11 $ 687 $ 710 $ 76,022 $ 76,732 $ — Pre-settlement funding transactions and attorney cost financing do not have set due dates as payment is dependent on the underlying case settling. |
Mortgage Loans Held for Sale, a
Mortgage Loans Held for Sale, at Fair Value | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Mortgage Loans, Held for Sale, at Fair Value | Mortgage Loans Held for Sale, at Fair Value Mortgage loans held for sale, at fair value, were as follows: September 30, 2016 December 31, 2015 (In thousands) Unpaid principal balance of mortgage loans held for sale $ 296,322 $ 120,253 Fair value adjustment 12,168 4,255 Mortgage loans held for sale, at fair value $ 308,490 $ 124,508 A reconciliation of the changes in mortgage loans held for sale, at fair value, is presented in the following table: Nine Months Ended September 30, 2016 Nine Months Ended (In thousands) Balance at beginning of period $ 124,508 $ — Acquired through Home Lending acquisition — 131,325 Originations and purchases of mortgage loans held for sale, net of fees 2,462,754 352,641 Proceeds from sale of and principal payments on mortgage loans held for sale (2,343,415 ) (362,723 ) Net change in fair value of mortgage loans held for sale 64,643 8,946 Balance at end of period $ 308,490 $ 130,189 As the named servicer, the Company has the option to purchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days . In accordance with ASC 860, the Company recorded an asset and a liability, included within other assets and other liabilities on the condensed consolidated balance sheets, equal to the principal amount of the loans of $40.0 million and $45.8 million as of September 30, 2016 and December 31, 2015 , respectively. For the nine months ended September 30, 2016 and 2015 , the Company purchased $13.8 million and $3.2 million , respectively, of mortgage loans from Ginnie Mae securitization pools with the intent to re-pool them into new Ginnie Mae securitizations or otherwise to sell to third-party investors. The Company did not have any mortgage loans held for sale on non-accrual status as of September 30, 2016 or December 31, 2015 . Loan Servicing and Repurchase Reserve Mortgage loans sold to investors by the Company which met investor and agency underwriting guidelines at the time of sale may be subject to repurchase in the event of specific default by the borrower, subsequent discovery that underwriting standards were not met or breach of representations and warranties made by the Company. In the event of a breach of our representations and warranties, we may be required to either repurchase the mortgage loans with identified defects or indemnify the investors. The Company has established a reserve for potential losses related to these representations and warranties. The Company has also established a reserve for potential losses related to impaired loans within its servicing portfolio. In assessing the adequacy of the reserve, the Company evaluates various factors including actual write-offs during the period, historical loss experience, known delinquent loans and GSE guidelines. Actual losses incurred are reflected as write-offs against the reserve liability. The loan servicing and repurchase reserve is included in other liabilities on the Company's condensed consolidated balance sheets. The associated expense is included in the provision for losses in the condensed consolidated statements of operations. The activity in the loan servicing and repurchase reserve was as follows: Nine Months Ended September 30, 2016 Nine Months Ended (In thousands) Balance at beginning of period $ 2,575 $ — Acquired through Home Lending acquisition — 3,031 Provision for loan servicing and repurchases 1,529 409 Write-offs, net (1,506 ) (520 ) Balance at end of period $ 2,598 $ 2,920 Due to the uncertainty in the various estimates with the loan servicing and repurchase reserve, there may be a range of losses in excess of the recorded loan servicing and repurchase reserve that is reasonably possible. The estimate of the range of possible loss does not represent a probable loss, and is based on current available information, significant judgment and a number of assumptions that are subject to change. |
Mortgage Servicing Rights, at F
Mortgage Servicing Rights, at Fair Value | 9 Months Ended |
Sep. 30, 2016 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights, at Fair Value | Mortgage Servicing Rights, at Fair Value The activity of MSRs was as follows: Nine Months Ended September 30, 2016 Nine Months Ended (In thousands) Balance at beginning of period $ 29,287 $ — Acquired through Home Lending acquisition — 27,638 Additions due to loans sold, servicing retained 11,404 1,298 Reductions due to loan payoffs and foreclosures (5,007 ) (631 ) Fair value adjustment (3,077 ) (119 ) Balance at end of period $ 32,607 $ 28,186 The unpaid principal balance of mortgage loans serviced was $3.7 billion as of September 30, 2016 and $3.0 billion as of December 31, 2015 . Conforming conventional loans serviced by the Company are sold to Fannie Mae or Freddie Mac on a non-recourse basis, whereby foreclosure losses are generally the responsibility of Fannie Mae or Freddie Mac, and not the Company. Similarly, the government loans serviced by the Company are secured through Ginnie Mae, whereby the Company is insured against loss by the FHA or partially guaranteed against loss by the VA or other GSEs. The key assumptions used in determining the fair value of the Company's MSRs were as follows: September 30, 2016 December 31, 2015 Range (Weighted Average) Discount rate 9.50% - 14.07% (10.15%) 9.54% - 14.06% (10.27%) Prepayment speed 6.80% - 31.22% (10.81%) 8.24% - 20.56% (9.06%) Cost of servicing $65 - $90 ($73) $65 - $90 ($75) The hypothetical effect of an adverse change in these key assumptions that would result in a decrease in fair values are as follows: September 30, 2016 December 31, 2015 Discount rate: Effect on value - 100 basis points adverse change $ (1,137 ) $ (1,082 ) Effect on value - 200 basis points adverse change $ (2,199 ) $ (2,088 ) Prepayment speeds: Effect on value - 5% adverse change $ (654 ) $ (542 ) Effect on value - 10% adverse change $ (1,285 ) $ (1,085 ) Cost of servicing: Effect on value - 5% adverse change $ (258 ) $ (232 ) Effect on value - 10% adverse change $ (516 ) $ (463 ) These sensitivities are hypothetical and should be used with caution. As the table demonstrates, the Company's methodology for estimating the fair value of MSRs is highly sensitive to changes in assumptions. For example, actual prepayment experience may differ and any difference may have a material effect on the fair value of MSRs. Changes in fair value resulting from changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in the table, the effect of a variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumption; however, changes in one factor may be associated with changes in another (for example, decreases in market interest rates may indicate higher prepayments; however, this may be partially offset by lower prepayment due to other factors such as a borrower's diminished opportunity to refinance), which may magnify or counteract the sensitivities. Thus, any measurement of the fair value of MSRs is limited by the conditions existing and assumptions made as of a particular point in time. Those assumptions may not be appropriate if they are applied to a different point in time. |
Term Loan Payable
Term Loan Payable | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Term Loan Payable | Term Loan Payable The Company has a senior secured credit facility (the "Credit Facility") that consists of a term loan (the "Term Loan") with an outstanding principal balance of $449.5 million as of September 30, 2016 and December 31, 2015 , and a $20.0 million revolving commitment. There are no principal payments due on the Term Loan until its maturity in February 2019. The revolving commitment matures in August 2017. Certain of the Company's subsidiaries are guarantors of the Credit Facility and substantially all of the non-securitized and non-collateralized assets of the Company are pledged as security for the repayment of borrowings outstanding under the Credit Facility. At each interest reset date, the Company has the option to elect that the Term Loan be either a Eurodollar loan or a Base Rate loan. If a Eurodollar loan, interest on the Term Loan accrues at either Libor or 1.00% (whichever is greater) plus a spread of 6.00% . If a Base Rate loan, interest accrues at Prime or 2.00% (whichever is greater) plus a spread of 5.00% . As of September 30, 2016 , the interest rate on the Term Loan was 7.00% , as it is currently a Eurodollar loan. The revolving commitment has the same interest rate terms as the Term Loan. In addition, the revolving commitment is subject to an unused fee of 0.5% per annum and provides for the issuance of letters of credit equal to $10.0 million , subject to customary terms and fees. The Credit Facility requires the Company, to the extent that as of the last day of any fiscal quarter there are outstanding balances on the revolving commitment that exceed specific thresholds (generally 15% of the $20.0 million borrowing capacity, or $3.0 million ), to comply with a maximum total leverage ratio. The total leverage ratio is calculated by dividing total funded debt (as defined in the Credit Facility) less unrestricted cash and cash equivalents by Consolidated Adjusted Earnings Before Interest Expense, Income Taxes, Depreciation and Amortization (as defined in the Credit Facility) for the period of the four fiscal quarters most recently ended. The maximum required total leverage ratio was 5.00 to 1.00 as of September 30, 2016 and December 31, 2015 , respectively. As of September 30, 2016 and December 31, 2015 , there were no outstanding borrowings under the revolving commitment, and, as a result, the maximum total leverage ratio requirement pertaining to the $20.0 million revolving commitment was not applicable. Had the leverage ratio requirement been applicable as of September 30, 2016 or December 31, 2015 , the Company would not have satisfied the maximum total leverage ratio requirement and would have been required to repay the outstanding borrowings on the revolver in excess of the specified threshold. The Credit Facility also limits the Company and certain of its subsidiaries from engaging in certain activities, including incurring additional indebtedness and liens, making investments, transacting with affiliates, disposing of assets and various other activities. In addition, the Credit Facility limits, with certain exceptions, certain of the Company's subsidiaries from paying cash dividends and making loans to the Company, the calculation of which is performed annually as of the end of each fiscal year. As of December 31, 2015, $56.2 million of the Company’s $56.2 million in stockholders’ equity was free of limitations on the payment of dividends. Interest expense relating to the Term Loan was $10.2 million for each of the three months ended September 30, 2016 and 2015 . Interest expense relating to the Term Loan for the nine months ended September 30, 2016 and 2015 was $30.4 million and $30.2 million , respectively. |
VIE Borrowings Under Revolving
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | 9 Months Ended |
Sep. 30, 2016 | |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings VIE borrowings under revolving credit facilities and other similar borrowings on the condensed consolidated balance sheets consist of the following as of: Entity September 30, 2016 December 31, 2015 (In thousands) $100.0 million variable funding note facility with interest payable monthly (6.50% as of September 30, 2016 and December 31, 2015). The commitment period ends on May 19, 2018 and is collateralized by JGW-S III, LLC's ("JGW-S III") structured settlements receivables. JGW-S III is charged monthly an unused fee (0.75% as of September 30, 2016 and December 31, 2015) per annum for the undrawn balance of its line of credit. JGW-S III $ 15,053 $ 1,024 $300.0 million multi-tranche and lender credit facility with interest payable monthly as follows: Tranche A rate is 3.30% plus either the LIBOR or the Commercial Paper rate depending on the lender (3.83% and 4.37% at September 30, 2016 and 3.24% and 3.52% at December 31, 2015); Tranche B rate is 5.80% plus LIBOR (6.33% as of September 30, 2016 and 5.74% at December 31, 2015). The commitment period ends on July 24, 2017 and is collateralized by JGW V, LLC's ("JGW V") structured settlements, annuity and lottery receivables. JGW V is charged monthly an unused fee of 0.625% per annum for the undrawn balance of its line of credit. JGW V 17,449 38,153 Term advance facility, consisting of a single class requiring minimum principal payments with interest payable monthly at the lender's "prime rate" plus 1.00%, subject to a floor of 4.50% (4.50% at December 31, 2015). The facility is collateralized by certain pre-settlement receivables. The facility was terminated on August 11, 2016. Peach One — 9,651 Total VIE borrowings under revolving credit facilities and other similar borrowings $ 32,502 $ 48,828 In January 2016, the Company terminated a $50.0 million credit facility which had no outstanding balance as of December 31, 2015 . The facility had an original maturity date of October 2, 2016 and was collateralized by JGW IV, LLC's structured settlement and annuity receivables. Interest was payable monthly at the rate of LIBOR plus an applicable margin ( 3.49% at December 31, 2015) and there was an unused fee of 0.50% per annum for the undrawn balance of this line of credit. No fees were paid to terminate this facility. The Company expensed $0 and $0.5 million of unamortized debt issuance costs during the three and nine months ended September 30, 2016 , respectively, in connection with the termination of this credit facility, which was included in interest expense in the Company's condensed consolidated statements of operations. In May 2016, the Company terminated its $100.0 million credit facility collateralized by JGW VII, LLC. The facility had an original maturity date of November 15, 2016 and was collateralized by JGW VII, LLC's structured settlement, annuity and lottery receivables. The Company expensed $0 and $1.1 million of unamortized debt issuance costs during the three and nine months ended September 30, 2016 , respectively, in connection with the termination of this credit facility, which was included in interest expense in the Company's condensed consolidated statements of operations. In May 2016, the Company modified the terms of its $300.0 million multi-tranche and lender credit facility collateralized by JGW V, extending the commitment termination date from July 24, 2016 to July 24, 2017 and changing the facility termination date to November 13, 2017. As part of the modification, the base interest rate on each tranche was increased by 0.30% . The Company incurred $1.5 million in debt issuance costs in connection with the modification which will be amortized over the life of the facility and included in interest expense in the Company's condensed consolidated statements of operations. In May 2016, the commitment period of the $100.0 million credit facility of JGW-S III, LLC was modified to end on May 19, 2018 followed by an 18 month amortization period. The facility originally had a 2 -year revolving period upon notice by the issuer or the note holder with all principal and interest outstanding payable no later than October 15, 2048. In August 2016, the Company made principal payments to fully repay its term advance facility and then terminated the facility which was collateralized by certain pre-settlement receivables. The Company incurred less than $0.1 million in fees related to the termination. Interest expense, including unused fees, for the three months ended September 30, 2016 and 2015 related to VIE borrowings under revolving credit facilities and other similar borrowings was $1.4 million and $2.3 million , respectively. Interest expense, including unused fees, for the nine months ended September 30, 2016 and 2015 related to VIE borrowings under revolving credit facilities and other similar borrowings was $6.6 million and $6.7 million , respectively. The weighted average interest rate on outstanding VIE borrowings under revolving credit facilities and other similar borrowings as of September 30, 2016 and December 31, 2015 was 5.25% and 4.15% , respectively. |
Other Borrowings Under Revolvin
Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings Lines of Credit The Company had the following lines of credit with various financial institutions, which are primarily used for funding of mortgage loans held for sale: September 30, 2016 December 31, 2015 (In thousands) $40.0 million warehouse line of credit maturing on January 6, 2017 with an interest rate of LIBOR plus 2.15%, subject to a floor of 2.40% (2.68% as of September 30, 2016 and December 31, 2015) and a non-usage fee of 0.25%. $ 32,034 $ 32,611 $95.0 million warehouse line of credit maturing on February 10, 2017 with an interest rate of LIBOR plus 2.35%, subject to a floor of 2.50% (2.88% as of September 30, 2016 and 2.68% as of December 31, 2015) and a non-usage fee of 0.25%. 82,072 33,530 $75.0 million warehouse line of credit maturing on June 16, 2017 with an interest rate of LIBOR plus 2.25%, subject to a floor of 2.50% (2.78% as of September 30, 2016 and 2.68% as of December 31, 2015). The facility does not incur a non-usage fee. 58,919 9,414 $50.0 million warehouse line of credit maturing on September 14, 2017 with an interest rate of LIBOR plus 2.60%, subject to a floor of 3.10% (3.13% as of September 30, 2016 and 3.50% as of December 31, 2015) and a non-usage fee of 0.25%. 41,243 16,031 $100.0 million warehouse line of credit maturing on September 28, 2017 with an interest rate of LIBOR plus 2.25% (2.78% as of September 30, 2016 and 2.68% as of December 31, 2015). The facility does not incur a non-usage fee. 79,931 26,657 $10.0 million operating line of credit maturing June 16, 2017 with an interest rate of Prime plus 0.50%, subject to a floor of 5.00% (5.00% as of September 30, 2016 and December 31, 2015) and a non-usage fee of 0.50%. 4,000 4,000 Total other borrowings under revolving credit facilities and other similar borrowings $ 298,199 $ 122,243 Under the credit facility terms, the committed amount of the Company's $40.0 million warehouse line credit facility will decrease to $35.0 million as of October 15, 2016 and subsequently decrease by $5.0 million each month until maturity. In August 2016, the Company increased the capacity of its $6.0 million operating line of credit to $10.0 million and extended the maturity date of this line of credit through June 16, 2017. The Company may only draw on a balance of $6.0 million until regulatory approval is obtained. In October 2016, the Company increased the capacity of its $50.0 million warehouse line of credit to $70.0 million . On January 2, 2017, the capacity on this warehouse line of credit will revert to $50.0 million . Interest expense, including unused fees, for the three months ended September 30, 2016 and 2015 related to other borrowings under revolving credit facilities and other similar borrowings was $1.7 million and $0.5 million , respectively. Interest expense, including unused fees, for the nine months ended September 30, 2016 and 2015 related to other borrowings under revolving credit facilities and other similar borrowings was $4.0 million and $0.5 million , respectively. The weighted average interest rate on outstanding other borrowings under revolving credit facilities and other similar borrowings as of September 30, 2016 and December 31, 2015 was 2.90% and 2.84% , respectively. As of September 30, 2016 , the Company had pledged mortgage loans held for sale as collateral under the above warehouse lines of credit. The above agreements also contain covenants which include certain financial requirements, including maintenance of maximum adjusted leverage ratio, minimum net worth, minimum tangible net worth, minimum liquidity, minimum current ratio, minimum unencumbered cash, positive net income, and limitations on additional indebtedness and sale of assets, as defined in the agreements. The Company was in compliance with its debt covenants as of September 30, 2016 . Additionally, as of September 30, 2016 , the Company had pledged MSRs as collateral under its operating line of credit. |
VIE Long-Term Debt
VIE Long-Term Debt | 9 Months Ended |
Sep. 30, 2016 | |
VIE Long-Term Debt | |
VIE Long-Term Debt | VIE Long-Term Debt The VIE long-term debt consisted of the following as of: September 30, 2016 December 31, 2015 (In thousands) PLMT Permanent Facility $ 39,134 $ 41,265 Residual Term Facility — 130,832 Long-Term Pre-settlement Facility 5,789 6,590 2012-A Facility 856 944 LCSS Facility (2010-C) 12,303 12,573 LCSS Facility (2010-D) 7,159 7,159 Total VIE long-term debt $ 65,241 $ 199,363 PLMT Permanent Facility The Company has a $75.0 million floating rate asset backed loan with interest payable monthly at one-month LIBOR plus 1.25% which is currently in a runoff mode with the outstanding balance being reduced by periodic cash collections on the underlying lottery receivables. The interest rate on this loan was 1.78% and 1.68% at September 30, 2016 and December 31, 2015 , respectively. The loan matures on October 30, 2040. The debt agreement with the counterparty requires Peachtree Lottery Master Trust ("PLMT") to hedge the notional amount of the debt with a pay fixed and receive variable interest rate swap with the counterparty. The swaps are included within VIE derivative liabilities, at fair value, in the Company's condensed consolidated balance sheets. Residual Term Facility The Company had a $133.0 million Residual Term Facility (the "Residual Term Facility"), that was scheduled to mature on May 15, 2021 and was collateralized by the cash flows from residual interests related to 28 securitizations. Interest accrued on the notes at a rate of 7.25% per annum with interest and principal payable monthly from cash flows from the collateralized residual interests. On September 2, 2016, the Company issued $207.5 million in notes collateralized by the residual asset cash flows and reserve cash associated with 36 of the Company's securitizations with outstanding principle balances. Proceeds from the issuance of the notes were used, in part, to repay the $131.4 million outstanding principle balance on the Residual Term Facility. The Company incurred $0.4 million in debt termination costs and expensed $3.3 million of unamortized debt issuance costs during the three months ended September 30, 2016 in connection with the termination of the Residual Term Facility, which were included in interest expense in the Company's condensed consolidated statements of operations. Long-Term Pre-settlement Facility In 2011, the Company issued three fixed rate notes totaling $45.1 million collateralized by pre-settlement funding transactions, of which $5.8 million and $6.6 million principal amount remained outstanding as of September 30, 2016 and December 31, 2015 , respectively. Interest accrues on the notes at a rate of 9.25% per annum with interest and principal payable monthly from the cash receipts of collateralized pre-settlement funding transactions. In June 2016, the maturity date of each of the notes was extended until the sale of the collateral, at which point the proceeds will be distributed to the holders of the notes in full satisfaction of the Company's debt obligations. 2012-A Facility In December 2012, the Company issued a series of notes collateralized by structured settlements. The proceeds to the Company from the issuance of the notes were $2.5 million and interest accrues on the notes at a fixed interest rate of 9.25% per annum. Interest and principal are payable monthly from cash receipts of collateralized structured settlement receivables. The notes mature on June 15, 2024. Long-Term Debt for Life Contingent Structured Settlements (2010-C & 2010-D) Long-Term Debt (2010-C) In November 2010, the Company issued a private asset class securitization note ("2010-C") registered under Rule 144A under the Securities Act of 1933, as amended ("Rule 144A"). The 2010-C bond issuance of $12.9 million is collateralized by life-contingent structured settlements. 2010-C accrues interest at 10% per annum and matures on March 15, 2039. The interest and, if available, principal payments are payable monthly from cash receipts of collateralized life-contingent structured settlements receivables. Long-Term Debt (2010-D) In December 2010, the Company paid $0.2 million to purchase the membership interests of LCSS, LLC from JLL Partners, Inc, a related party. LCSS, LLC owns 100% of the membership interests of LCSS II, LLC, which owns 100% of the membership interests of LCSS III, LLC ("LCSS III"). In November 2010, LCSS III issued $7.2 million of long-term debt ("2010-D") collateralized by life-contingent structured settlements. 2010-D accrues interest at 10% per annum and matures on July 15, 2040. The interest and, if available, principal payments are payable monthly from cash receipts of collateralized life-contingent structured settlements receivables. Interest expense for the three months ended September 30, 2016 and 2015 related to VIE long-term debt was $7.3 million and $4.3 million , respectively. Interest expense for the nine months ended September 30, 2016 and 2015 related to VIE long-term debt was $15.9 million and $12.4 million , respectively. |
VIE Long-Term Debt Issued by Se
VIE Long-Term Debt Issued by Securitization and Permanent Financing Trusts, at Fair Value | 9 Months Ended |
Sep. 30, 2016 | |
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Value | |
VIE Long-term Debt Issued by Securitization and Permanent Financing Trusts, at Fair Value | VIE Long-Term Debt Issued by Securitization and Permanent Financing Trusts, at Fair Value Securitization Debt The Company elected the fair value option under ASC 825 to measure the securitization issuer debt and related finance receivables. The Company has determined that measurement of the securitization debt issued by special purpose entities ("SPEs") at fair value better correlates with the value of the finance receivables held by SPEs, which are held to provide the cash flows for the note obligations. The debt issued by our SPEs is recourse only to the respective entities that issued the debt and is non-recourse to the Company and its other subsidiaries. Certain subsidiaries of the Company continue to receive fees for servicing the securitized assets which are eliminated upon consolidation. In addition, the risk to the Company's non-SPE subsidiaries from SPE losses is limited to cash reserves, residual interest amounts and the repurchase of structured settlement payment streams that are subsequently determined to be ineligible for inclusion in the securitization or permanent financing trusts. During the nine months ended September 30, 2016 , the Company did not complete any asset securitization transactions that were registered under Rule 144A. During the nine months ended September 30, 2015 , the Company completed two asset securitization transactions that were registered under Rule 144A. The following table summarizes these securitization transactions: 2015-2 2015-1 Issue date 7/28/2015 3/31/2015 Bond proceeds (In millions) $158.4 $214.0 Receivables securitized 2,489 3,422 Deal discount rate 4.18% 3.64% Retained interest % 5.50% 5.50% Class allocation (Moody's) Aaa 84.75% 85.25% Baa2 9.75% 9.25% The following table summarizes notes issued by securitization trusts and permanent financing trusts for which the Company has elected the fair value option and which are recorded as VIE long-term debt issued by securitization and permanent financing trusts, at fair value, in the Company's condensed consolidated balance sheets: Outstanding Fair value as of September 30, 2016 Outstanding Fair Value as of (In thousands) Securitization trusts $ 3,414,681 $ 3,600,285 $ 3,637,231 $ 3,688,639 Permanent financing VIEs 449,907 445,348 250,895 240,179 Total VIE long-term debt issued by securitization and permanent financing trusts, at fair value $ 3,864,588 $ 4,045,633 $ 3,888,126 $ 3,928,818 Interest expense for the three months ended September 30, 2016 and 2015 related to VIE long-term debt issued by securitization trusts and permanent financing facilities, at fair value, was $33.9 million and $38.2 million , respectively. Interest expense for the nine months ended September 30, 2016 and 2015 related to VIE long-term debt issued by securitization trusts and permanent financing facilities, at fair value, was $110.6 million and $104.6 million , respectively. In connection with its 2015-1 securitization, the Company repaid in February 2015 approximately $6.9 million of long-term debt issued by Structured Receivables Finance # 1, LLC and recorded a gain on debt extinguishment of approximately $0.6 million , which was included in realized and unrealized (losses) gains on VIE and other finance receivables, long-term debt and derivatives in the Company's condensed consolidated statements of operations. On September 2, 2016, the Company issued $207.5 million in notes collateralized by the residual asset cash flows and reserve cash associated with 36 of the Company's securitizations with outstanding principle balances. Proceeds from the issuance of the notes were used, in part, to repay the $131.4 million outstanding principle balance on the Residual Term Facility. The Company incurred $2.6 million of debt issuance costs which were included in debt issuance expense in the Company's condensed consolidated statements of operations. Principal and interest are paid monthly from the cash flows from these collateralized residual interests. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Interest Rate Swaps The Company utilizes interest rate swaps to manage its exposure to changes in interest rates related to borrowings on its revolving credit facilities and other similar borrowings. Hedge accounting has not been applied to any of the Company's interest rate swaps. As of September 30, 2016 , the Company did not have any outstanding interest rate swaps related to its borrowings on revolving credit facilities. The Company did not terminate any interest rate swaps during the three months ended September 30, 2016 or during the three months ended September 30, 2015 . During the nine months ended September 30, 2016 and 2015 , and in connection with its securitizations and direct asset sales, the Company terminated interest rate swaps with notional values of $75.2 million and $18.7 million , respectively. The total loss on the termination of interest rate swaps for the nine months ended September 30, 2016 and 2015 was $1.5 million and $0.3 million , respectively. There was no unrealized loss for interest rate swaps for the three months ended September 30, 2016 and 2015 . There was no unrealized loss for interest rate swaps for the nine months ended September 30, 2016 and 2015 . The realized and unrealized losses associated with these interest rate swaps were recorded in realized and unrealized (losses) gains on VIE and other finance receivables, long-term debt and derivatives in the Company's condensed consolidated statements of operations. The Company also has interest rate swaps to manage its exposure to changes in interest rates related to its VIE long-term debt issued by securitization and permanent financing trusts. As of September 30, 2016 , the Company had eight outstanding swaps for VIE long-term debt with a total notional amount of $164.6 million . The Company pays fixed rates ranging from 4.50% to 5.77% and receives floating rates equal to 1-month LIBOR plus an applicable margin. These interest rate swaps were designed to closely match the borrowings under the respective floating rate asset backed loans in amortization. As of September 30, 2016 , the terms of these interest rate swaps range from approximately 5.8 to 19.3 years . For the three months ended September 30, 2016 and 2015 , the amount of unrealized gain (loss) recognized was $2.5 million and $(1.7) million , respectively. For the nine months ended September 30, 2016 and 2015 , the amount of unrealized (loss) gain recognized was $(0.3) million and $1.8 million , respectively. These (losses) gains were recorded in realized and unrealized (losses) gains on VIE and other finance receivables, long-term debt and derivatives in the Company's condensed consolidated statements of operations. Additionally, the Company has interest rate swaps to manage its exposure to changes in interest rates related to its borrowings under Peachtree Structured Settlements, LLC ("PSS"), a permanent financing VIE, and PLMT. As of September 30, 2016 , the Company had 140 outstanding swaps for PSS and PLMT with a total notional amount of $186.3 million . The Company pays fixed rates ranging from 4.80% to 8.70% and receives floating rates equal to 1-month LIBOR rate plus an applicable margin. The PSS and PLMT interest rate swaps were designed to closely match the borrowings under the respective floating rate asset backed loans in amortization. As of September 30, 2016 , the terms of the interest rate swaps for PSS and PLMT range from less than one month to approximately 17.8 years . During the three months ended September 30, 2016 and 2015 , the Company did not terminate any interest rate swaps for PSS and PLMT. During the nine months ended September 30, 2016 , the Company terminated an interest rate swap for PSS with a notional value of $13.8 million and recorded a loss on the termination of $3.1 million . During the nine months ended September 30, 2015 , the Company did not terminate any interest rate swaps for PSS and PLMT. For the three months ended September 30, 2016 and 2015 , the amount of unrealized gain (loss) recognized was $2.6 million and $(4.7) million , respectively. For the nine months ended September 30, 2016 and 2015 , the amount of unrealized (loss) gain recognized was $(2.7) million and $(0.7) million , respectively. These gains (losses) were recorded in realized and unrealized (losses) gains on VIE and other finance receivables, long-term debt and derivatives in the Company's condensed consolidated statements of operations. The notional amounts and fair values of interest rate swaps were as follows: Entity Securitization Notional Amount Fair Value as of September 30, 2016 Notional Amount Fair Value as of December 31, 2015 (In thousands) 321 Henderson I, LLC 2004-A A-1 $ 21,402 $ (2,231 ) $ 25,859 $ (2,382 ) 321 Henderson I, LLC 2005-1 A-1 41,936 (6,074 ) 47,963 (6,186 ) 321 Henderson II, LLC 2006-1 A-1 8,476 (948 ) 10,694 (1,091 ) 322 Henderson II, LLC 2006-2 A-1 12,796 (2,180 ) 15,058 (2,239 ) 323 Henderson II, LLC 2006-3 A-1 12,575 (1,888 ) 15,798 (1,951 ) 324 Henderson II, LLC 2006-4 A-1 12,958 (1,283 ) 15,166 (1,489 ) 325 Henderson II, LLC 2007-1 A-2 23,938 (5,397 ) 26,887 (4,949 ) 326 Henderson II, LLC 2007-2 A-3 30,557 (8,817 ) 33,461 (8,085 ) JGW V, LLC — — — 31,857 59 PSS — 140,828 (31,732 ) 162,546 (29,486 ) PLMT — 45,505 (9,214 ) 48,587 (8,720 ) Total $ 350,971 $ (69,764 ) $ 433,876 $ (66,519 ) Interest Rate Lock Commitments and Forward Sale Commitments The Company enters into IRLCs to originate residential mortgage loans held for sale, at specified interest rates and within a specified period of time (generally between 30 and 90 days), with customers who have applied for a loan and meet certain credit and underwriting criteria. These IRLCs meet the definition of a derivative and are reflected in the condensed consolidated balance sheets at fair value with changes in fair value recognized in the realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs, in the condensed consolidated statements of operations. The fair value of the IRLCs are measured based on the value of the underlying mortgage loan, quoted Government Sponsored Enterprise MBS prices, estimates of the fair value of the MSRs and the probability that the mortgage loan will fund within the terms of the IRLC, net of commission expense and broker fees. The Company manages the interest rate price risk associated with its outstanding IRLCs and mortgage loans held for sale by entering into derivative loan instruments such as forward sale commitments and mandatory delivery commitments. Management expects these derivatives will experience changes in fair value opposite to changes in the fair value of the derivative loan commitments and mortgage loans held for sale, thereby reducing earnings volatility. The Company takes into account various factors and strategies in determining the portion of the mortgage pipeline (IRLCs) and mortgage loans held for sale it wants to economically hedge. The notional amounts and fair values associated with IRLCs and forward sale commitments were as follows: September 30, 2016 December 31, 2015 Notional Amount Fair Value Notional Amount Fair Value Derivative Assets: Interest rate lock commitments $ 621,422 $ 13,346 $ 222,512 $ 4,934 Total $ 621,422 $ 13,346 $ 222,512 $ 4,934 Derivative Liabilities: Forward sale commitments $ 621,000 $ 1,920 $ 248,500 $ 147 Total $ 621,000 $ 1,920 $ 248,500 $ 147 The Company has exposure to credit loss in the event of contractual non-performance by its trading counterparties in derivative financial instruments that the Company uses in its interest rate risk management activities. The Company manages this credit risk by selecting only counterparties that the Company believes to be financially strong, by spreading the risk among multiple counterparties, by placing contractual limits on the amount of unsecured credit extended to any single counterparty and by entering into netting agreements with counterparties, as appropriate. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Corporation is required to file federal and applicable state corporate income tax returns and recognizes income taxes on its pre-tax income, which to-date has consisted primarily of its share of JGW LLC's pre-tax income. JGW LLC is organized as a limited liability company which is treated as a "flow-through" entity for income tax purposes and therefore is not subject to income taxes. As a result, the Company's condensed consolidated financial statements do not reflect a benefit or provision for income taxes on the pre-tax income or loss attributable to the non-controlling interests in JGW LLC. The Company recorded a partial valuation allowance of $5.9 million , as of September 30, 2016, due to the uncertainty that it will fully utilize net operating losses generated during the quarter. The valuation allowance limits the year-to-date tax benefit on current year losses to the future reversals of existing taxable temporary differences. The deferred tax assets could not be supported by sufficient positive evidence for the realization of the additional benefits, such as: (i) taxable income in carryback years, (ii) future taxable income exclusive of reversing temporary differences and carryfowards and (iii) any prudent and feasible tax planning strategies available to the Company at this time. The Company's overall effective tax rate was 14.7% for the nine months ended September 30, 2016 , as compared to an overall effective rate of 12.2% for the nine months ended September 30, 2015 . The effective tax rate for the Corporation for the nine months ended September 30, 2016 and 2015 was 26.5% and 25.0% , respectively. The effective tax rate for JGW LLC for the nine months ended September 30, 2016 and 2015 was 0.6% and (1.7)% , respectively. The change in the Company's effective tax rates was primarily the result of: (i) the differences in the projected book and taxable income for the respective years as of the balance sheet dates; (ii) the impact of permanent differences between book and taxable income; (iii) a greater share of the Company's pre-tax book income (loss) being attributable to separate subsidiary entities that are taxed as corporations, of which most record a full valuation allowance; and (iv) the recording of the partial valuation allowance discussed above. The difference in effective tax rates between the two legal entities arises because JGW LLC is treated as a "flow-through" entity for income tax purposes and therefore is not subject to income taxes. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity On November 14, 2013, the Corporation consummated an initial public offering ("IPO") and amended and restated its certificate of incorporation to provide for, among other things, the authorization of 500,000,000 shares of Class A common stock (the "Class A common stock"), par value $0.00001 per share, 500,000,000 shares of Class B common stock (the "Class B common stock"), par value $0.00001 per share, 500,000,000 shares of Class C "non-voting" common stock, par value $0.00001 per share (the "Class C common stock") and 100,000,000 shares of blank check preferred stock. Also concurrent with the consummation of the Corporation's IPO, JGW LLC merged with and into a newly formed subsidiary of the Corporation. As of September 30, 2016 , there were 16,271,889 shares of Class A common stock issued and 15,729,817 shares outstanding. Additionally, there were 8,710,814 shares of Class B common stock issued and outstanding as of September 30, 2016 . There were no shares of Class C common stock issued or outstanding as of September 30, 2016 . Repurchases of Class A Common Stock On May 2, 2014, the Company's Board of Directors approved the repurchase of an aggregate of $15.0 million of Class A common stock (the "Stock Repurchase Program") under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. Purchases under the Stock Repurchase Program were to be made from time to time in open market purchases, privately negotiated transactions, accelerated stock repurchase programs, issuer self-tender offers or otherwise in accordance with applicable federal securities laws. The Stock Repurchase Program did not obligate the Company to acquire any particular amount of Class A common stock and the pace of repurchase activity depended on factors such as levels of cash generation from operations, cash requirements for investment in the Company's business, repayment of debt, current stock price, market conditions and other factors. The Stock Repurchase Program could be suspended, modified or discontinued at any time and had no set expiration date. Since the inception of the Stock Repurchase Program and through December 31, 2015 , the Company had repurchased 1,546,017 shares of Class A common stock for an aggregate purchase price of $15.0 million . As of December 31, 2015 , the Company had repurchased the maximum amount of shares authorized by the Board of Directors. On May 26, 2015, the Company repurchased in a privately negotiated transaction 426,332 shares of its Class A common stock held by the former President and Chief Operating Officer of the Company for an aggregate purchase price of $3.9 million . The purchase price of $9.24 per share represented a 3.0% discount from the closing price of the Company's Class A common stock on May 22, 2015, the date the parties executed the associated agreement. Class A Common Stock Holders of Class A common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Holders of Class A common stock are entitled to share ratably (based on the number of shares of Class A common stock held) if and when any dividend is declared by the Company's Board of Directors. Upon dissolution, liquidation or winding up, holders of Class A common stock are entitled to a pro rata distribution of any assets available for distribution to common stockholders, and do not have preemptive, subscription, redemption, or conversion rights. Class B Common Stock Shares of Class B common stock will only be issued in the future to the extent that additional common membership interests in JGW LLC (the "Common Interests", and the holders of such Common Interests, the "Common Interestholders") are issued by JGW LLC, in which case the Company would issue a corresponding number of shares of Class B common stock. Holders of Class B common stock are entitled to ten votes for each share held of record on all matters submitted to a vote of stockholders. Holders of Class B common stock do not have any right to receive dividends and upon liquidation, dissolution or winding up and will only be entitled to receive an amount per share equal to the $0.00001 par value. Holders of Class B common stock do not have preemptive rights to purchase additional shares of Class B common stock. Subject to the terms and conditions of the operating agreement of JGW LLC, each Common Interestholder has the right to exchange their Common Interests in JGW LLC, together with the corresponding number of shares of Class B common stock, for shares of Class A common stock or, at the option of JGW LLC, cash equal to the market value of one share of Class A common stock. Class C Common Stock Holders of Class C common stock are generally not entitled to vote on any matters. Holders of Class C common stock are entitled to share ratably (based on the number of shares of Class C common stock held) if and when any dividend is declared by the Company's Board of Directors. Upon dissolution, liquidation or winding up, holders of Class C common stock will be entitled to a pro rata distribution of any assets available for distribution to common stockholders (except the de minimis par value of the Class B common stock), and do not have preemptive rights to purchase additional shares of Class C common stock. Subject to the terms and conditions of the operating agreement of JGW LLC, Peach Group Holdings, Inc. ("PGHI Corp.") and its permitted transferees have the right to exchange the non-voting Common Interests in JGW LLC they hold for shares of Class C common stock or, at the option of JGW LLC, cash equal to the market value of Class C common stock. Each share of Class C common stock may, at the option of the holder, be converted at any time into a share of Class A common stock on a one -for- one basis. Preferred Stock The Company's certificate of incorporation provides that the Company's Board of Directors has the authority, without action by the stockholders, to designate and issue up to 100,000,000 shares of preferred stock in one or more classes or series and to fix the powers, rights, preferences, and privileges of each class or series of preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, and the number of shares constituting any class or series, which may be greater than the rights of the holders of the common stock. No preferred stock had been issued or was outstanding as of September 30, 2016 and December 31, 2015 . Warrants Issued to PGHI Corp. In connection with the IPO and the related restructuring, the Class C Profits Interests of JGW LLC held by PGHI Corp. were canceled and holders received in exchange warrants to purchase shares of Class A common stock. The warrants issued in respect of the Tranche C-1 profits interests of JGW LLC entitle the holders thereof to purchase up to 483,217 shares of Class A common stock and have an exercise price of $35.78 per share. The warrants issued in respect of the Tranche C-2 profits interests of JGW LLC also entitle the holders thereof to purchase up to 483,217 shares of Class A common stock and have an exercise price of $63.01 per share. All of the warrants issued are currently exercisable, terminate on January 8, 2022, and may not be transferred. No warrants were exercised during the nine months ended September 30, 2016 or 2015 . JGW LLC Operating Agreement Pursuant to the operating agreement of JGW LLC, the holders of JGW LLC Common Interests (other than the Company) have the right, subject to terms of the operating agreement as described therein, to exchange their Common Interests and an equal number of shares of Class B common stock for an equivalent number of shares of Class A common stock, or in the case of PGHI Corp., an equivalent number of shares of Class C common stock. During the nine months ended September 30, 2016 and 2015 , 195,445 and 947,098 Common Interests in JGW LLC, in addition to an equal number of shares of Class B common stock, were exchanged for 195,445 and 947,098 shares of the Class A common stock pursuant to the operating agreement, respectively. Home Lending Acquisition On July 31, 2015, the Company issued 1,572,327 shares of Class A common stock that was previously treasury stock as partial consideration for the acquisition of Home Lending. Amounts Reclassified Out of Accumulated Other Comprehensive Income During the nine months ended September 30, 2016 and 2015 , there were no amounts reclassified out of accumulated other comprehensive income. |
Non-Controlling Interests
Non-Controlling Interests | 9 Months Ended |
Sep. 30, 2016 | |
Noncontrolling Interest [Abstract] | |
Non-Controlling Interests | Non-Controlling Interests The Corporation consolidates the financial results of JGW LLC whereby it records a non-controlling interest for the economic interest in JGW LLC held by the Common Interestholders. Pursuant to an agreement between the Corporation and JGW LLC, any time the Corporation cancels, issues or repurchases shares of Class A common stock, JGW LLC cancels, issues or repurchases, as applicable, an equivalent number of Common Interests. In addition, any time Common Interestholders exchange their Common Interests for shares of Class A common stock, JGW LLC is required to transfer an equal number of Common Interests to the Corporation. Changes in the non-controlling and the Corporation's interest in JGW LLC for the nine months ended September 30, 2016 are presented in the following table: Total Common Interests Held By: The J.G. Wentworth Non-controlling Total Balance as of December 31, 2015 15,534,372 13,269,321 28,803,693 Common Interests acquired by The J.G. Wentworth Company as a result of the exchange of units for shares of Class A common stock 195,445 (195,445 ) — Common Interests forfeited — (2,439 ) (2,439 ) Balance as of September 30, 2016 15,729,817 13,071,437 28,801,254 The non-controlling interests include the Common Interestholders who were issued shares of Class B common stock in connection with the IPO as well as other Common Interestholders who may convert their Common Interests into 4,360,623 shares of Class C common stock. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Arrangements The Company had an arrangement (the "Arrangement") with a counterparty for the sale of LCSS assets that met certain eligibility criteria, which expired on June 30, 2012. Pursuant to the Arrangement, the Company also had a borrowing agreement (the "Borrowing Agreement") with the counterparty that gave the counterparty a borrowing base to draw on from the Company for the purchase of LCSS assets. As of September 30, 2016 and December 31, 2015 , the amount owed from the counterparty pursuant to this Borrowing Agreement is approximately $10.6 million and $10.2 million , respectively, is earning interest at an annual rate of 5.35% and is included in Other receivables, net of allowance for losses, in the Company's condensed consolidated balance sheets. The Arrangement also has put options, which expire on December 30, 2019 and 2020, that give the counterparty the option to sell, on those dates, purchased LCSS assets back to the Company if the underlying claimant is still alive on that date. The put options, if exercised by the counterparty, require the Company to purchase LCSS assets at a target internal rate of return ("IRR") of 3.5% above the original target IRR paid by the counterparty. Tax Receivable Agreement Common Interestholders may exchange their Common Interests for shares of Class A common stock, or, in the case of PGHI Corp., shares of Class C common stock, on a one -for-one basis or, in each case, at the option of JGW LLC, cash. For income tax purposes, such exchanges are treated as sales of Common Interests in JGW LLC to the Corporation. JGW LLC made an election under Section 754 of the Internal Revenue Code of 1986 in connection with the filing of its 2014 federal income tax return which, upon each exchange, effectively treats the Corporation as having purchased an undivided interest in each of the assets owned by JGW LLC. As such, each exchange may result in increases (or decreases) in the Corporation's tax basis in the tangible and intangible assets of JGW LLC that otherwise would not have been available. Any such increases (decreases) in tax basis are, in turn, anticipated to create incremental tax deductions (income) that would reduce (increase) the amount of income tax the Corporation would otherwise be required to pay in the future. In connection with the IPO, the Corporation entered into a tax receivable agreement ("TRA") with Common Interestholders who held in excess of approximately 1% of the Common Interests outstanding immediately prior to the IPO. The TRA requires the Company to pay those Common Interestholders 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes in any tax year from increases in tax basis realized as a result of any future exchanges by Common Interestholders of their Common Interests for shares of Class A or Class C common stock (or cash). The cash savings in income tax paid to any such Common Interestholders will reduce the cash that may otherwise be available to the Corporation for operations and to make future distributions to holders of Class A common stock. For purposes of the TRA, cash savings in income tax will be computed by comparing the Corporation's actual income tax liability for a covered tax year to the amount of such taxes that the Corporation would have been required to pay for such covered tax year had there been no increase to the Corporation's share of the tax basis of the tangible and intangible assets of JGW LLC as a result of such sale and any such exchanges and had the Corporation not entered into the TRA. The TRA continues until all such tax benefits have been utilized or expired, unless the Corporation exercises its right to terminate the TRA upon a change of control for an amount based on the remaining payments expected to be made under the TRA. The exchange of Common Interests for shares of Class A common stock in 2014 resulted in a $207.0 million increase in the Corporation's share of the tax basis of JGW LLC's assets, which created current and future income tax deductions for the Corporation. The increase in tax basis, however, did not result in an income tax cash savings for the year ended December 31, 2014, because the Corporation would not have been a tax payer in the absence of such tax basis increase. Consequently, there is no liability associated with the 2014 exchanges pursuant to the TRA. The exchange of Common Interests for shares of Class A common stock in 2015 resulted in a $53.3 million increase in the Corporation's share of the tax basis of JGW LLC's assets, which created additional current and future income tax deductions for the Corporation. The Corporation computed the tax liability for the exchanges in 2015 in conjunction with the preparation of its 2015 Federal tax returns. The Corporation does not have any tax liability associated with the 2015 tax year and will not benefit from income tax cash savings related to basis adjustments associated with the 2015 exchanges pursuant to the TRA. The Corporation will compute any tax liability for similar exchanges in 2016 in conjunction with the preparation of its 2016 Federal tax returns. The Corporation, however, does not expect to have any tax liability associated with the 2016 tax year and does not expect to benefit from income tax cash savings related to basis adjustments associated with the 2016 exchanges pursuant to the TRA. Loss on Contingencies In the normal course of business, the Company is subject to various legal proceedings and claims. These proceedings and claims have not been finally resolved and the Company cannot make any assurances as to their ultimate disposition. It is management's opinion, based on the information currently available at this time, that the expected outcome of these matters will not have a material adverse effect on the financial position, the results of operations, or cash flows of the Company. Commitments to Extend Credit The Company enters into IRLCs with customers who have applied for residential mortgage loans and meet certain credit and underwriting criteria. These commitments expose the Company to market risk if interest rates change and the loan is not economically hedged or committed to an investor. The Company is also exposed to credit loss if the loan is originated and not sold to an investor and the mortgagor does not perform. The collateral upon extension of credit typically consists of a first deed of trust in the mortgagor's residential property. Commitments to originate loans do not necessarily reflect future cash requirements as some commitments are expected to expire without being drawn upon. Total commitments to originate loans approximated $621.4 million as of September 30, 2016 . |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | Share-based Compensation Under the Company's 2013 Omnibus Incentive Plan (the "Plan"), stock options, restricted stock, restricted stock units and stock appreciation rights units may be granted to officers, employees, non-employee directors and consultants of the Company. As of September 30, 2016 , 1.3 million shares of unissued Class A common stock were available for granting under this plan. As of September 30, 2016 , the Company had granted non-qualified stock options and performance-based restricted stock units to its employees and restricted stock shares to independent directors under the Plan. The Company recognizes compensation cost net of a forfeiture rate in compensation and benefits expense in the condensed consolidated statements of operations for only those awards expected to vest. The Company estimates the forfeiture rate based on historical experience taking into account its expectations about future forfeitures. Stock Options The Company has granted options to purchase Class A common stock. These stock options have exercise prices equal to the fair value of our Class A common stock on the date of grant, have a contractual term of ten years, and vest generally in equal annual installments over a five year period following the date of grant, subject to the holder's continued employment with the Company through the applicable vesting date. The fair value of stock option awards granted during the nine months ended September 30, 2016 was estimated using the Black-Scholes valuation model and included the following assumptions: Nine Months Ended September 30, 2016 Fair value $0.17 - $0.62 Risk-free interest rate 1.35% - 1.86% Expected volatility 40.84% - 44.50% Expected life of options in years 6.5 Expected dividend yield — The Company recognizes compensation expense for the fair value of the stock options on a straight-line basis over the requisite service period of the awards. During the nine months ended September 30, 2016 and 2015 , the Company recognized $0.8 million and $1.0 million of share-based compensation expense, respectively, in connection with the stock options issued under the Plan. A summary of stock option activity for the nine months ended September 30, 2016 is as follows: Shares Weighted - Weighted - Average Aggregate Outstanding as of December 31, 2015 1,363,378 $ 11.00 8.45 $ — Granted 434,500 0.80 Exercised — — Forfeited (182,140 ) 6.44 Canceled (180,000 ) 11.06 Expired (47,997 ) 12.49 Outstanding as of September 30, 2016 1,387,741 $ 5.78 7.98 $ — Outstanding, vested and expected to vest as of September 30, 2016 1,331,871 5.88 7.97 — Vested as of September 30, 2016 263,074 11.17 7.74 — During the nine months ended September 30, 2016 and 2015 , stock options representing the right to acquire 135,050 and 215,800 shares vested with an aggregate grant date fair value of $0.7 million and $1.0 million , respectively. The aggregate intrinsic value represents the total pre-tax value of the difference between the closing price of Class A common stock on the last trading day of the period and the exercise price of the options, multiplied by the number of in-the-money stock options that would have been received by the option holders had all the option holders exercised their options on September 30, 2016 . The intrinsic value of the Company's stock options changes based on the closing price of the Company's stock. As of September 30, 2016 , $3.5 million of total unrecognized compensation expense related to the outstanding stock options is expected to be recognized over a weighted average period of 2.9 years . In April 2016, the Board authorized a one-time stock modification program for 1,266,125 outstanding options that were issued prior to January 1, 2016 and held by 45 participants. The stock modification program was approved by shareholders at the Annual Meeting on June 2, 2016. On July 29, 2016, the Tender Offer and Consent Solicitation Statement was sent to 33 eligible employees, who were employed as of that date by the Company, who were given 20 business days to consent to the modification. On August 26, 2016, the solicitation period expired with 32 employees electing to participate for an aggregate of 1,195,927 shares to be modified. Pursuant to the modification approved on June 2, 2016, on August 29, 2016, the exercise price of outstanding options to purchase an aggregate of 147,963 shares of Class A common stock by all persons, other than a key executive officer of the Company as described in detail below, was determined to be $0.32 per share, which was the closing price per share of the Class A common stock on the OTCQX Market on August 29, 2016. In addition, the vesting date of such modified options was changed to August 29, 2019. Options to purchase 180,000 shares of Class A common stock held by the key executive officer were canceled and the Company simultaneously granted new stock options to purchase 180,000 shares of Class A common stock to the key executive officer, at an exercise price equal to $0.32 per share, with an expiration date of August 29, 2029. On the same date, the exercise price of outstanding options held by the key executive to purchase an aggregate of 180,000 shares of Class A common stock was was determined to be $0.32 per share, and the vesting date of such modified options was changed to August 29, 2019. Except with respect to the modified exercise price and expiration date, the modified options remain subject to all terms and conditions of their original grant agreements, including termination provisions. As provided in the Tender Offer and Consent Solicitation Statement, the remainder of the options with respect to which elections were properly tendered and not withdrawn prior to the expiration of the solicitation period will be modified on one or more future modification dates (to the extent not then exercised, expired or terminated), if the closing price of our Class A common stock on each such future modification date is less than the original exercise price of such options. There are options to purchase a maximum of 507,964 shares of Class A common stock potentially subject to modification on August 29, 2017. There are options to purchase a maximum of 180,000 shares of Class A common stock potentially subject to modification on August 29, 2018. The valuation of the options that were modified on August 29, 2016 is based on the following terms: Nine Months Ended September 30, 2016 Fair value $0.13 - $0.15 Risk-free interest rate 1.19% - 1.37% Expected volatility 43.81% - 44.52% Expected life of options in years 5.1 - 6.5 Expected dividend yield — The stock option modification resulted in an incremental compensation cost of $0.1 million which will be recognized over the 3 -year vesting period. Performance-Based Restricted Stock Units A summary of performance-based restricted stock units for the nine months ended September 30, 2016 is as follows: Performance- Based Weighted - Average Outstanding as of December 31, 2015 191,250 $ 9.48 Granted 127,250 1.14 Vested — — Forfeited (106,500 ) 6.26 Outstanding as of September 30, 2016 212,000 $ 6.09 Outstanding and expected to vest as of September 30, 2016 — — Each performance-based restricted stock unit will vest into 0 to 1.5 shares of Class A common stock depending to the degree to which the performance goals are met. Compensation expense resulting from these awards is: (i) recognized ratably from the date of the grant until the date the restrictions lapse; (ii) based on the trading price of the Class A common stock on the date of grant; and (iii) based on the probability of achievement of the specific performance-based goals. In April 2016, the Company modified the performance goals associated with the performance-based restricted stock units granted in 2014 and 2015. As of September 30, 2016 , management concluded that it was improbable that the modified performance goals associated with the performance-based units granted in 2014 and 2015 would vest and management concluded that it was improbable that the performance goals associated with the performance-based units granted in 2016 would vest. Consequently, no expense was recognized for the performance-based units in the nine months ended September 30, 2016 . During the nine months ended September 30, 2015 , the Company recognized $(0.1) million of compensation expense in connection with the performance-based restricted stock units. The negative expense recognized during the nine months ended September 30, 2015 was due to management concluding in the third quarter of 2015 that it was no longer probable that the performance goals associated with performance-based restricted stock units granted in 2014 would vest. Consequently the Company reversed the expense previously recognized in connection with the 87,750 units granted in 2014 and outstanding as of September 30, 2015 . The aggregate grant-date fair value of the performance-based restricted stock units granted during the nine months ended September 30, 2016 was $0.1 million . As of September 30, 2016 , there was $1.3 million of total unrecognized compensation cost relating to outstanding performance-based restricted stock units that is not expected to be recognized. None of the performance-based restricted stock units had vested as of September 30, 2016 . Restricted Stock A summary of restricted stock activity for the nine months ended September 30, 2016 is as follows: Restricted Stock Weighted - Average Outstanding as of December 31, 2015 66,038 $ 2.12 Granted — — Vested — — Outstanding as of September 30, 2016 66,038 $ 2.12 Restricted stock granted to independent directors under the Plan cliff vest on the first anniversary after the grant date. The fair value of restricted stock is determined based on the trading price of the Class A common stock on the date of grant. There was no restricted stock granted during the nine months ended September 30, 2016 . The aggregate grant date fair value of the restricted stock granted during the nine months ended September 30, 2015 was $0.2 million . As of September 30, 2016 , there was less than $0.1 million of total unrecognized compensation cost relating to outstanding restricted stock that is expected to be recognized over a weighted average period of 2 months . The Company recognizes compensation expense for the fair value of restricted stock on a straight-line basis over the one -year cliff vesting period. During the nine months ended September 30, 2016 and 2015 , the Company recognized less than $0.1 million of share based compensation expense in connection with the restricted stock. Unvested Restricted Common Interests in JGW LLC The following table summarizes the activities of unvested Restricted Common Interests in JGW LLC for the nine months ended September 30, 2016 : Unvested Restricted Common Interests Weighted - Average Grant - Date Fair Value Outstanding as of December 31, 2015 27,777 $ 6.30 Vested in period (15,467 ) 5.25 Forfeited (2,439 ) 1.71 Outstanding as of September 30, 2016 9,871 $ 9.06 Outstanding and expected to vest as of September 30, 2016 9,854 9.06 Vested as of September 30, 2016 — — As of September 30, 2016 , there was $0.1 million of unrecognized compensation cost related to outstanding unvested Restricted Common Interests that is expected to be recognized over a weighted average period of 1.0 year . Total share-based compensation expense recognized for the nine months ended September 30, 2016 and 2015 related to the Restricted Common Interests was less than $0.1 million and $0.4 million , respectively. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per share Basic earnings per share ("EPS") measures the performance of an entity over the reporting period. Diluted EPS measures the performance of an entity over the reporting period while giving effect to all potentially dilutive common shares that were outstanding during the period. In accordance with ASC 260, Earnings Per Share , all outstanding unvested share-based payments that contain rights to non-forfeitable dividends and participate in the undistributed earnings with the common stockholders are considered participating securities. The shares of Class B common stock do not share in the earnings of the Company and are therefore not considered participating securities. Accordingly, basic and diluted net earnings per share of Class B common stock have not been presented. In connection with the IPO, Class C Profits Interests of JGW LLC held by PGHI Corp. were exchanged for a total of 966,434 warrants to purchase shares of Class A common stock. For the three and nine months ended September 30, 2016 and 2015 , these warrants were not included in the computation of diluted loss per common share because they were antidilutive under the treasury stock method. During the nine months ended September 30, 2016 and 2015 , 1,409,328 and 1,461,407 weighted-average stock options outstanding, respectively, were not included in the computation of diluted loss per common share because they were antidilutive under the treasury stock method. During the nine months ended September 30, 2016 and 2015 , 230,919 and 183,069 weighted-average performance-based restricted stock units, respectively, were antidilutive and, therefore, excluded from the computation of diluted loss per common share. The operating agreement of JGW LLC gives Common Interestholders the right (subject to the terms of the operating agreement as described therein) to exchange their Common Interests for shares of Class A common stock on a one -for- one basis at fair value, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications. The Company applies the "if-converted" method to the Common Interests and vested Restricted Common Interests in JGW LLC to determine the dilutive weighted average shares of Class A common stock outstanding. The Company applies the treasury stock method to the unvested Restricted Common Interests and the "if-converted" method on the resulting number of additional Common Interests to determine the dilutive weighted average shares of Class A common stock outstanding represented by these interests. In computing the dilutive effect that the exchange of Common Interests and Restricted Common Interests would have on EPS, the Company considered that net loss attributable to holders of Class A common stock would decrease due to the elimination of non-controlling interests (including any tax impact). Based on these calculations, the 13,080,674 and 13,745,165 weighted average Common Interests and vested Restricted Common Interests outstanding, respectively, and the 22,474 and 124,341 weighted average unvested Restricted Common Interests outstanding, respectively, for the nine months ended September 30, 2016 and 2015 , respectively, were antidilutive and excluded from the computation of diluted loss per common share. The following table is a reconciliation of the numerator and denominator used in the basic and diluted EPS calculations: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (Dollars In thousands, except per share data) Numerator: Numerator for basic EPS - Net loss attributable to holders of The J.G. Wentworth Company Class A common stock $ (18,713 ) $ (26,697 ) $ (45,593 ) $ (40,338 ) Effect of dilutive securities: JGW LLC Common Interests and vested Restricted Common Interests — — — — JGW LLC unvested Restricted Common Interests — — — — Numerator for diluted EPS - Net loss attributable to holders of The J.G. Wentworth Company Class A common stock $ (18,713 ) $ (26,697 ) $ (45,593 ) $ (40,338 ) Denominator: Denominator for basic EPS - Weighted average shares of Class A common stock 15,663,475 14,918,415 15,633,696 14,437,117 Effect of dilutive securities: Stock options — — — — Warrants — — — — Restricted common stock and performance-based restricted stock units — — — — JGW LLC Common Interests and vested Restricted Common Interests — — — — JGW LLC unvested Restricted Common Interests — — — — Dilutive potential common shares — — — — Denominator for diluted EPS - Adjusted weighted average shares of Class A common stock 15,663,475 14,918,415 15,633,696 14,437,117 Basic loss per share of Class A common stock $ (1.19 ) $ (1.79 ) $ (2.92 ) $ (2.79 ) Diluted loss per share of Class A common stock $ (1.19 ) $ (1.79 ) $ (2.92 ) $ (2.79 ) |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company's business segments are determined based on products and services offered, as well as the nature of the related business activities, and they reflect the manner in which financial information is currently evaluated by management. The Company has identified the following two reportable segments: (i) Structured Settlements and (ii) Home Lending. The Company's Chief Operating Decision Maker ("CODM") evaluates our reportable segments using the metric below for purposes of making decisions about allocating resources and evaluating their performance. We define Segment Adjusted Earnings Before Interest Expense, Income Taxes, Depreciation and Amortization ("Segment Adjusted EBITDA") as net income (loss) under U.S. GAAP before non-cash compensation expenses, certain other expenses, provision for or benefit from income taxes, depreciation and amortization and for our Structured Settlements segment, amounts related to the consolidation of the securitization and permanent financing trusts we use to finance our business, interest expense associated with our senior secured credit facility, certain other expenses, debt issuance costs and broker and legal fees incurred in connection with sale of finance receivables. The CODM uses Segment Adjusted EBITDA as the primary means by which he evaluates our segment's performance since (i) Segment Adjusted EBITDA represents a better measure of our operating performance, especially for our Structured Settlements segment because the operations of the VIE do not impact our business segments' performance and (ii) Segment Adjusted EBITDA is the operating metric used in determining whether performance-based restricted stock units issued to management will vest. The application and development of management reporting methodologies is a dynamic process and is subject to periodic enhancements. The implementation of these enhancements to the internal management reporting methodology may materially affect the results disclosed for each segment with no impact on consolidated results. Whenever significant changes to management reporting methodologies take place, prior period information is reclassified whenever practicable. Below is a summary of Segment Adjusted EBITDA, a measure of our segments' profitability. Structured Settlements Home Lending Other Adjustments/Eliminations Subtotal Reportable Segments (In thousands) Three Months Ended September 30, 2016 Segment Adjusted EBITDA $ 4,635 $ 9,423 — $ 14,058 Three Months Ended September 30, 2015 (1) Segment Adjusted EBITDA $ 16,582 $ 1,994 — $ 18,576 Nine Months Ended September 30, 2016 Segment Adjusted EBITDA $ 9,404 $ 23,673 — $ 33,077 Nine Months Ended September 30, 2015 (1) Segment Adjusted EBITDA $ 47,381 $ 1,994 — $ 49,375 (1) Home Lending was acquired on July 31, 2015 and, therefore, the results include only two months of Home Lending’s operations. The following table presents certain information regarding the Company’s business segments. Structured Settlements Home Lending Other Adjustments/Eliminations Consolidated (In thousands) Three Months Ended September 30, 2016 Total revenues (1) $ 37,302 $ 31,495 — $ 68,797 Total assets 4,655,253 449,506 — 5,104,759 Three Months Ended September 30, 2015 Total revenues (1) $ 51,775 $ 12,083 — $ 63,858 Total assets 5,128,902 250,264 — 5,379,166 Nine Months Ended September 30, 2016 Total revenues (1) $ 137,961 $ 80,136 — $ 218,097 Total assets 4,655,253 449,506 — 5,104,759 Nine Months Ended September 30, 2015 Total revenues (1) $ 199,970 $ 12,083 — $ 212,053 Total assets 5,128,902 250,264 — 5,379,166 (1) Home Lending was acquired on July 31, 2015 and, therefore, the results include only two months of Home Lending’s operations. Below is a reconciliation of the two reportable Segments' Adjusted EBITDA to loss before income taxes for the three months ended September 30, 2016 and 2015 : Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 (In thousands) Structured Settlements Segment Adjusted EBITDA $ 4,635 $ 16,582 Home Lending Segment Adjusted EBITDA (1) 9,423 1,994 Subtotal Reportable Segments' Adjusted EBITDA $ 14,058 $ 18,576 Securitization-related adjustments: Unrealized loss on finance receivables, long-term debt and derivatives post securitization due to changes in interest rates (32,495 ) (35,063 ) Interest income from securitized finance receivables 40,610 45,823 Interest income on retained interests in finance receivables (4,041 ) (5,436 ) Servicing income on securitized finance receivables (1,280 ) (1,336 ) Interest expense on long-term debt related to securitization and permanent financing trusts (39,387 ) (40,036 ) Swap termination expense related to securitization entities — — Professional fees relating to securitizations (1,380 ) (1,464 ) Provision for losses associated with permanently financed VIEs (543 ) — Other adjustments: Share based compensation (367 ) (273 ) Impact of prefunding on unsecuritized finance receivables (2,861 ) 24 Lease termination, severance and other restructuring related expenses (747 ) (1,245 ) Merger and acquisition related expense — (419 ) Debt modification expense 97 (792 ) Impairment charges and loss on disposal of assets — (29,860 ) Term loan interest expense (10,184 ) (10,192 ) Debt issuance (2,584 ) (2,220 ) Broker and legal fees incurred in connection with sale of finance receivables (404 ) — Depreciation and amortization (1,182 ) (966 ) Loss Before Income Taxes $ (42,690 ) $ (64,879 ) (1) Home Lending was acquired on July 31, 2015 and, therefore, the results include only two months of Home Lending’s operations. Below is a reconciliation of the two reportable Segments' Adjusted EBITDA to loss before income taxes for the nine months ended September 30, 2016 and 2015 : Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 (In thousands) Structured Settlements Segment Adjusted EBITDA $ 9,404 $ 47,381 Home Lending Segment Adjusted EBITDA (1) 23,673 1,994 Subtotal Reportable Segments' Adjusted EBITDA $ 33,077 $ 49,375 Securitization-related adjustments: Unrealized loss on finance receivables, long-term debt and derivatives post securitization due to changes in interest rates (83,801 ) (67,254 ) Interest income from securitized finance receivables 134,153 127,059 Interest income on retained interests in finance receivables (15,798 ) (15,869 ) Servicing income on securitized finance receivables (3,919 ) (3,967 ) Interest expense on long-term debt related to securitization and permanent financing trusts (119,230 ) (109,923 ) Swap termination expense related to securitization entities (3,053 ) — Professional fees relating to securitizations (4,223 ) (4,454 ) Provision for losses associated with permanently financed VIEs (543 ) — Other adjustments: — Share based compensation (997 ) (1,389 ) Impact of prefunding on unsecuritized finance receivables — (1,594 ) Lease termination, severance and other restructuring related expenses (3,486 ) (3,620 ) Merger and acquisition related expense — (1,608 ) Debt modification expense (2,258 ) (792 ) Impairment charges and loss on disposal of assets (5,483 ) (29,860 ) Term loan interest expense (30,375 ) (30,193 ) Debt issuance (2,612 ) (5,092 ) Broker and legal fees incurred in connection with sale of finance receivables (1,959 ) — Depreciation and amortization (3,646 ) (2,961 ) Loss Before Income Taxes $ (114,153 ) $ (102,142 ) (1) Home Lending was acquired on July 31, 2015 and, therefore, the results include only two months of Home Lending’s operations. |
Cost Savings Activities
Cost Savings Activities | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Cost Savings Activities | Cost Savings Activities In late 2015, the Company initiated a cost reduction plan to reduce excess capacity and improve efficiency within the business units. In connection with this plan, the Company recorded severance charges of $0.1 million and $2.8 million for the three and nine months ended September 30, 2016 , respectively, which was included within compensation and benefits in the condensed consolidated statements of operations. The associated workforce reductions were substantially complete as of June 30, 2016. In addition, the Company recorded lease termination charges of $0.8 million for each of the three and nine months ended September 30, 2016 , which was included within general and administrative in the condensed consolidated statements of operations. The lease termination charges relate principally to leased offices that the Company ceased using as of September 30, 2016, represent the fair value of the liability at the date use of the leased offices ceased and were determined based on the remaining lease rental payments obligation reduced by estimated sublease income that could be reasonably obtained for the property. We may incur additional severance, lease termination and other restructuring costs in future periods as we continue to undertake additional efforts to improve efficiency in our business. Both the severance liability and the lease termination costs are included in accrued expenses and accounts payable in the condensed consolidated balance sheet. A reconciliation of the liabilities associated with the cost reduction plan by reportable segment are as follows: Structured Settlements Home Lending Consolidated (In thousands) Balance at December 31, 2015 $ — $ — $ — Severance expense 2,359 495 2,854 Lease terminations 827 — 827 Payments (1,324 ) (274 ) (1,598 ) Adjustments (194 ) — (194 ) Balance at September 30, 2016 $ 1,668 $ 221 $ 1,889 |
Background, Basis of Presenta31
Background, Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and Article 10 of Regulation S-X and do not include all of the information required by U.S. GAAP for complete financial statements. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments which are necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods presented. All such adjustments are of a normal and recurring nature. The results of operations for interim periods are not necessarily indicative of the results for the entire year. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the amounts of revenues and expenses during the reporting periods. The most significant balance sheet accounts that could be affected by such estimates are variable interest entity ("VIE") finance receivables, at fair value; other finance receivables, at fair value; mortgage loans held for sale, at fair value; mortgage servicing rights, at fair value; intangible assets; goodwill; VIE derivative liabilities, at fair value; and VIE long-term debt issued by securitization and permanent financing trusts, at fair value. Actual results could differ from those estimates and such differences could be material. These interim financial statements should be read in conjunction with the Company's 2015 audited consolidated financial statements that are included in its Annual Report on Form 10-K. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Summary of pro forma information | The following table summarizes the supplemental pro forma information of the combined Company for the nine months ended September 30, 2015 and 2014, respectively, as if the acquisition of Home Lending occurred on January 1, 2014. Nine Months Ended September 30, 2015 2014 (In thousands) Pro forma total revenues 257,048 411,451 Pro forma net loss before income taxes (1) (92,642 ) 98,460 (1) Includes adjustments for acquisition related costs of $3.8 million for nine months ended September 30, 2014. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets subject to amortization | Intangible assets subject to amortization include the following as of: Structured Settlements Home Lending Cost Accumulated Amortization Cost Accumulated Amortization (In thousands) September 30, 2016 Database $ 4,609 $ (4,326 ) $ — $ — Customer relationships 16,096 (15,709 ) — — Domain names 486 (458 ) — — Trade name (1) 613 (105 ) 1,095 (582 ) Affinity relationships — — 9,547 (1,114 ) Intangible assets subject to amortization $ 21,804 $ (20,598 ) $ 10,642 $ (1,696 ) December 31, 2015 Database $ 4,609 $ (4,250 ) $ — $ — Customer relationships 18,844 (15,375 ) — — Domain names 486 (450 ) — — Trade name — — 1,095 (228 ) Affinity relationships — — 9,547 (397 ) Intangible assets subject to amortization $ 23,939 $ (20,075 ) $ 10,642 $ (625 ) (1) During the three months ended June 30, 2016, the trade name the Company acquired in connection with the Company's 2011 acquisition of Orchard Acquisition Company ("OAC") was determined to be a definite-lived asset, subject to amortization. As of September 30, 2016 and December 31, 2015 , the carrying value of this trade name was $0.5 million and $3.3 million , respectively. |
Schedule of estimated future amortization expense | Estimated future amortization expense for amortizable intangible assets for the three months ending December 31, 2016 and for each of the succeeding five calendar years and thereafter is as follows: Estimated Future Amortization Expense (In thousands) Remainder of 2016 $ 484 2017 1,743 2018 1,560 2019 1,035 2020 957 2021 954 Thereafter 3,419 Total future amortization expense $ 10,152 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets and liabilities | The following table sets forth the Company's assets and liabilities that are carried at fair value on the Company's condensed consolidated balance sheets as of: Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total at Fair Value (In thousands) September 30, 2016: Assets Marketable Securities: Equity securities US large cap $ 29,123 $ — $ — $ 29,123 US mid cap 4,994 — — 4,994 US small cap 6,467 — — 6,467 International 10,998 — — 10,998 Other equity 3,078 — — 3,078 Total equity securities 54,660 — — 54,660 Fixed income securities US fixed income 16,779 — — 16,779 International fixed income 1,048 — — 1,048 Other fixed income — — — — Total fixed income securities 17,827 — — 17,827 Other securities Cash & cash equivalents 4,105 — — 4,105 Alternative investments 913 — — 913 Annuities 2,274 — — 2,274 Total other securities 7,292 — — 7,292 Total marketable securities, at fair value 79,779 — — 79,779 VIE and other finance receivables, at fair value — — 4,228,982 4,228,982 Mortgage loans held for sale, at fair value — 308,490 — 308,490 Mortgage servicing rights, at fair value — — 32,607 32,607 Interest rate lock commitments, at fair value (1) — — 13,346 13,346 Total Assets $ 79,779 $ 308,490 $ 4,274,935 $ 4,663,204 Liabilities VIE derivative liabilities, at fair value $ — $ 69,764 $ — $ 69,764 VIE long-term debt issued by securitization and permanent financing trusts, at fair value — — 4,045,633 4,045,633 Forward sale commitments, at fair value (2) — 1,920 — 1,920 Total Liabilities $ — $ 71,684 $ 4,045,633 $ 4,117,317 (1) Included in other assets on the Company's condensed consolidated balance sheet. (2) Included in other liabilities on the Company's condensed consolidated balance sheet. Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total at Fair Value (In thousands) December 31, 2015 Assets Marketable Securities: Equity securities US large cap $ 28,670 $ — $ — $ 28,670 US mid cap 5,213 — — 5,213 US small cap 5,477 — — 5,477 International 14,068 — — 14,068 Other equity 3,308 — — 3,308 Total equity securities 56,736 — — 56,736 Fixed income securities US fixed income 16,945 — — 16,945 International fixed income 1,217 — — 1,217 Other fixed income — — — — Total fixed income securities 18,162 — — 18,162 Other securities Cash & cash equivalents 7,634 — — 7,634 Alternative investments 161 — — 161 Annuities 2,301 — — 2,301 Total other securities 10,096 — — 10,096 Total marketable securities, at fair value 84,994 — — 84,994 VIE and other finance receivables, at fair value — — 4,386,147 4,386,147 Mortgage loans held for sale, at fair value — 124,508 — 124,508 Mortgage servicing rights, at fair value — — 29,287 29,287 Interest rate lock commitments, at fair value (1) — — 4,934 4,934 Total Assets $ 84,994 $ 124,508 $ 4,420,368 $ 4,629,870 Liabilities VIE derivative liabilities, at fair value $ — $ 66,519 $ — $ 66,519 VIE long-term debt issued by securitization and permanent financing trusts, at fair value — — 3,928,818 3,928,818 Forward sale commitments, at fair value (2) — 147 — 147 Total Liabilities $ — $ 66,666 $ 3,928,818 $ 3,995,484 (1) Included in other assets on the Company's condensed consolidated balance sheet. (2) Included in other liabilities on the Company's condensed consolidated balance sheet |
Schedule of the Company's quantitative information about Level 3 fair value measurements | The following table sets forth the Company's quantitative information about its Level 3 fair value measurements as of: Fair Value Valuation Technique Significant Unobservable Input Range (Weighted Average) (In thousands) September 30, 2016 Assets VIE and other finance receivables, at fair value $ 4,228,982 Discounted cash flow Discount rate 2.72% - 11.90% (3.93%) Mortgage servicing rights, at fair value 32,607 Discounted cash flow Discount rate 9.50% - 14.07% (10.15%) Prepayment speed 6.80% - 31.22% (10.81%) Cost of servicing $65 - $90 ($73) Interest rate lock commitments, at fair value 13,346 Internal model Pull-through rate 32.88% - 91.52% (61.69%) Total Assets $ 4,274,935 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair value $ 4,045,633 Discounted cash flow Discount rate 1.48% - 11.70% (3.84%) Total Liabilities $ 4,045,633 December 31, 2015 Assets VIE and other finance receivables, at fair value $ 4,386,147 Discounted cash flow Discount rate 3.33% - 12.30% (4.47%) Mortgage servicing rights, at fair value 29,287 Discounted cash flow Discount rate 9.54% - 14.06% (10.27%) Prepayment speed 8.24% - 20.56% (9.06%) Cost of servicing $65 - $90 ($75) Interest rate lock commitments, at fair value 4,934 Internal model Pull-through rate 37.44% - 100.00% (74.91%) Total Assets $ 4,420,368 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair value $ 3,928,818 Discounted cash flow Discount rate 1.69% - 12.30% (4.13%) Total Liabilities $ 3,928,818 |
Schedule of changes in assets measured at fair value using significant unobservable inputs (Level 3) | The changes in assets measured at fair value using significant unobservable inputs (Level 3) during the nine months ended September 30, 2016 and 2015 were as follows: VIE and other finance receivables, at fair value Mortgage servicing rights, at fair value Interest rate lock commitments, at fair value Total (In thousands) Balance as of December 31, 2015 $ 4,386,147 $ 29,287 $ 4,934 $ 4,420,368 Total included in earnings (losses): 0 Unrealized gains 92,880 3,320 13,346 109,546 Realized gain on sale of finance receivable 69,597 — — 69,597 Included in other comprehensive gain — — — — Purchases of finance receivables 204,775 — — 204,775 Interest accreted 131,392 — — 131,392 Payments received (384,478 ) — — (384,478 ) Sale of finance receivables (271,331 ) — — (271,331 ) Transfers to/from other balance sheet line items — — (4,934 ) (4,934 ) Transfers in and/or out of Level 3 — — — — Balance as of September 30, 2016 $ 4,228,982 $ 32,607 $ 13,346 $ 4,274,935 The amount of net gains (losses) for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held as of: September 30, 2016 $ 92,880 $ 3,320 $ 13,346 $ 109,546 Balance as of December 31, 2014 $ 4,523,835 $ — $ — $ 4,523,835 Total included in earnings (losses): 0 Unrealized (losses) gains (5,320 ) 548 7,822 3,050 Included in other comprehensive gain — — — — Purchases of finance receivables 296,468 — — 296,468 Interest accreted 124,870 — — 124,870 Payments received (384,726 ) — — (384,726 ) Transfers to/from other balance sheet line items — — (5,221 ) (5,221 ) Assets acquired in connection with the Home Lending acquisition — 27,638 5,221 32,859 Transfers in and/or out of Level 3 — — — — Balance as of September 30, 2015 $ 4,555,127 $ 28,186 $ 7,822 $ 4,591,135 The amount of net gains (losses) for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held as of: September 30, 2015 $ (5,320 ) $ 548 $ 7,822 $ 3,050 |
Schedule of changes in liabilities measured at fair value using significant unobservable inputs (Level 3) | The changes in liabilities measured at fair value using significant unobservable inputs (Level 3) during the nine months ended September 30, 2016 and 2015 were as follows: VIE long-term debt issued (In thousands) Balance as of December 31, 2015 $ 3,928,818 Total included in (earnings) losses: Unrealized losses 167,243 Issuances 216,806 Interest accreted (26,894 ) Repayments (240,340 ) Transfers in and/or out of Level 3 — Balance as of September 30, 2016 $ 4,045,633 The amount of net (gains) losses for the period included in revenues attributable to the change in unrealized gains or losses relating to long-term debt still held as of: September 30, 2016 $ 167,243 Balance as of December 31, 2014 $ 4,031,864 Total included in (earnings) losses: Unrealized gains (67,305 ) Issuances 380,417 Interest accreted (33,659 ) Repayments (237,107 ) Transfers in and/or out of Level 3 — Balance as of September 30, 2015 $ 4,074,210 The amount of net (gains) losses for the period included in revenues attributable to the change in unrealized gains or losses relating to long-term debt still held as of: September 30, 2015 $ (66,712 ) |
Schedule of realized and unrealized gains and losses included in revenues in the accompanying consolidated statements of operations | Realized and unrealized gains and losses included in revenues in the accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 are reported in the following revenue categories: VIE and other finance receivables and long-term debt, at fair value Mortgage servicing rights, at fair value Interest rate lock commitments, at fair value (In thousands) Net (losses) gains included in revenues for the three months ended September 30, 2016 $ (14,238 ) $ 1,480 $ 13,346 Unrealized (losses) gains for the three months ended September 30, 2016 relating to assets and long-term debt still held as of September 30, 2016 $ (29,616 ) $ 1,480 $ 13,346 Net (losses) gains included in revenues for the nine months ended September 30, 2016 $ (4,766 ) $ 3,320 $ 13,346 Unrealized (losses) gains for the nine months ended September 30, 2016 relating to assets and long-term debt still held as of September 30, 2016 $ (74,363 ) $ 3,320 $ 13,346 Net gains included in revenues for the three months ended September 30, 2015 $ 13,952 $ 548 $ 4,934 Unrealized gains for the three months ended September 30, 2015 relating to assets and long-term debt still held as of September 30, 2015 $ 13,952 $ 548 $ 4,934 Net gains included in revenues for the nine months ended September 30, 2015 $ 61,985 $ 548 $ 4,934 Unrealized gains for the nine months ended September 30, 2015 relating to assets and long-term debt still held as of September 30, 2015 $ 61,392 $ 548 $ 4,934 |
Schedule of estimated fair values of financial instruments | As such, the estimated fair values of the Company's financial instruments are as follows: September 30, 2016 December 31, 2015 (In thousands) Estimated Carrying Estimated Carrying Financial assets: VIE and other finance receivables, at fair value $ 4,228,982 $ 4,228,892 $ 4,386,147 $ 4,386,147 VIE and other finance receivables, net of allowance for losses (1) 90,993 96,176 103,609 110,342 Other receivables, net of allowance for losses (1) 17,832 17,832 16,285 16,285 Mortgage loans held for sale, at fair value 308,490 308,490 124,508 124,508 Mortgage servicing rights, at fair value 32,607 32,607 29,287 29,287 Marketable securities, at fair value 79,779 79,779 84,994 84,994 Interest rate lock commitments, at fair value (2) 13,346 13,346 4,934 4,934 Financial liabilities: Term loan payable (1) 179,472 442,429 325,558 440,181 VIE derivative liabilities, at fair value 69,764 69,764 66,519 66,519 VIE borrowings under revolving credit facilities and other similar borrowings (1) 32,910 32,502 53,737 48,828 Other borrowings under revolving credit facilities and other similar borrowings (1) 297,616 298,199 122,243 122,243 VIE long-term debt (1) 59,611 65,241 194,211 199,363 VIE long-term debt issued by securitization and permanent financing trusts, at fair value 4,045,633 4,045,633 3,928,818 3,928,818 Forward sale commitments, at fair value (3) 1,920 1,920 147 147 Installment obligations payable (1) 79,779 79,779 84,994 84,994 (1) These represent financial instruments not recorded in the condensed consolidated balance sheets at fair value. Such financial instruments would be classified as Level 3 within the fair value hierarchy. (2) Included in the other assets on the Company's condensed consolidated balance sheets. (3) Included in the other liabilities on the Company's condensed consolidated balance sheets. |
VIE and Other Finance Receiva35
VIE and Other Finance Receivables, at Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
VIE and Other Finance Receivables, at Fair Value [Abstract] | |
Schedule of VIE and other finance receivables for which the fair value option was elected | VIE and other finance receivables for which the fair value option was elected consist of the following: September 30, 2016 December 31, 2015 (In thousands) Maturity value $ 6,545,534 $ 6,876,687 Unearned income (2,316,552 ) (2,490,540 ) Net carrying amount $ 4,228,982 $ 4,386,147 |
Schedule of encumbrances on VIE and other finance receivables, at fair value | Encumbrances on VIE and other finance receivables, at fair value were as follows: Encumbrance September 30, 2016 December 31, 2015 (In thousands) VIE securitization debt (2) $ 4,066,953 $ 4,236,520 $100.0 million credit facility (JGW-S III) (1) 23,119 1,664 $300.0 million credit facility (JGW V) (1) 26,407 54,306 $100.0 million permanent financing related to 2011-A (2) 97,917 83,968 Encumbered VIE finance receivables, at fair value 4,214,396 4,376,458 Not encumbered 14,586 9,689 Total VIE and other finance receivables, at fair value $ 4,228,982 $ 4,386,147 (1) Refer to Note 11. (2) Refer to Note 14. |
Schedule of servicing fee | Servicing fee revenue related to those receivables is included in servicing, broker, and other fees in the Company's condensed consolidated statements of operations and was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In thousands) Servicing fee income $ 245 $ 199 $ 679 $ 614 |
VIE and Other Finance Receiva36
VIE and Other Finance Receivables, net of Allowance for Losses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
VIE and Other Finance Receivables, net of Allowance for Losses | |
Schedule of VIE and other finance receivables, net of allowance for losses | VIE and other finance receivables, net of allowance for losses, consist of the following: September 30, 2016 December 31, 2015 (In thousands) Structured settlements and annuities $ 68,669 $ 72,121 Less: unearned income (42,843 ) (45,825 ) 25,826 26,296 Lottery winnings 66,179 70,589 Less: unearned income (17,604 ) (20,153 ) 48,575 50,436 Pre-settlement funding transactions 32,871 44,299 Less: deferred revenue (677 ) (1,144 ) 32,194 43,155 Attorney cost financing 656 821 Less: deferred revenue — — 656 821 VIE and other finance receivables 107,251 120,708 Less: allowance for losses (11,075 ) (10,366 ) VIE and other finance receivables, net of allowances $ 96,176 $ 110,342 |
Schedule of encumbrances on VIE and other finance receivables, net of allowance for losses | Encumbrances on VIE and other finance receivables, net of allowance for losses, are as follows: Encumbrance September 30, 2016 December 31, 2015 (In thousands) VIE long-term debt (2) $ 67,680 $ 69,691 $35.0 million pre-settlement credit facility (1) — 25,401 $45.1 million long-term pre-settlement facility (2) 1,919 3,533 $2.5 million long-term facility (2) 1,181 1,249 Encumbered VIE finance receivables, net of allowances 70,780 99,874 Not encumbered 25,396 10,468 Total VIE and other finance receivables, net of allowances $ 96,176 $ 110,342 (1) Refer to Note 11. (2) Refer to Note 13. |
Schedule of activity in the allowance for losses for VIE and other finance receivables | Activity in the allowance for losses for VIE and other finance receivables is as follows : Structured settlements and annuities Lottery winnings Pre-settlement Attorney cost Total (In thousands) Three Months Ended September 30, 2016 Allowance for losses: Balance as of June 30, 2016 $ (68 ) $ — $ (9,863 ) $ (284 ) $ (10,215 ) Provision for loss (23 ) (11 ) (1,377 ) — (1,411 ) Charge-offs 1 11 544 — 556 Recoveries (5 ) — — — (5 ) Balance as of September 30, 2016 $ (95 ) $ — $ (10,696 ) $ (284 ) $ (11,075 ) Nine Months Ended September 30, 2016 Allowance for losses: Balance as of December 31, 2015 $ (69 ) $ — $ (10,013 ) $ (284 ) $ (10,366 ) Provision for loss 79 (7 ) (3,144 ) — (3,072 ) Charge-offs 32 7 2,461 — 2,500 Recoveries (137 ) — — — (137 ) Balance as of September 30, 2016 $ (95 ) $ — $ (10,696 ) $ (284 ) $ (11,075 ) Individually evaluated for impairment $ (95 ) $ — $ (2,533 ) $ (284 ) $ (2,912 ) Collectively evaluated for impairment — — (8,163 ) — (8,163 ) Balance as of September 30, 2016 $ (95 ) $ — $ (10,696 ) $ (284 ) $ (11,075 ) VIE and other finance receivables, net: Individually evaluated for impairment $ 25,731 $ 48,575 $ 32 $ 372 $ 74,710 Collectively evaluated for impairment — — 21,466 — 21,466 Balance as of September 30, 2016 $ 25,731 $ 48,575 $ 21,498 $ 372 $ 96,176 Three Months Ended September 30, 2015 Allowance for losses: Balance as of June 30, 2015 $ (50 ) $ (3 ) $ (10,632 ) $ (283 ) $ (10,968 ) Provision for loss (21 ) — (1,190 ) — (1,211 ) Charge-offs 32 — 1,057 — 1,089 Recoveries (5 ) — (3 ) (1 ) (9 ) Balance as of September 30, 2015 $ (44 ) $ (3 ) $ (10,768 ) $ (284 ) $ (11,099 ) Nine Months Ended September 30, 2015 Allowance for losses: Balance as of December 31, 2014 $ (56 ) $ (3 ) $ (9,786 ) $ (283 ) $ (10,128 ) Provision for loss (129 ) (69 ) (3,970 ) — (4,168 ) Charge-offs 149 69 2,991 — 3,209 Recoveries (8 ) — (3 ) (1 ) (12 ) Balance as of September 30, 2015 $ (44 ) $ (3 ) $ (10,768 ) $ (284 ) $ (11,099 ) Individually evaluated for impairment $ (44 ) $ (3 ) $ (2,212 ) $ (284 ) $ (2,543 ) Collectively evaluated for impairment — — (8,556 ) — (8,556 ) Balance as of September 30, 2015 $ (44 ) $ (3 ) $ (10,768 ) $ (284 ) $ (11,099 ) VIE and other finance receivables, net: Individually evaluated for impairment $ 26,328 $ 54,631 $ 184 $ 676 $ 81,819 Collectively evaluated for impairment — — 36,419 — 36,419 Balance as of September 30, 2015 $ 26,328 $ 54,631 $ 36,603 $ 676 $ 118,238 |
Schedule of gross pre-settlement funding transactions based on their year of origination | The following table presents gross finance receivables related to pre-settlement funding transactions based on their year of origination as of: Year of Origination September 30, 2016 December 31, 2015 (In thousands) 2009 $ 945 $ 1,229 2010 2,254 2,759 2011 4,018 5,597 2012 4,413 6,212 2013 5,464 6,772 2014 13,083 17,773 2015 2,694 3,957 2016 — — Total $ 32,871 $ 44,299 |
Schedule of portfolio delinquency status excluding presettlement funding transactions and attorney cost financing | The following table presents portfolio delinquency status excluding pre-settlement funding transactions and attorney cost financing as of: 30-59 60-89 Greater Total Current VIE and Other VIE and Other (In thousands) September 30, 2016 Structured settlements and annuities $ 5 $ 2 $ 82 $ 89 $ 25,737 $ 25,826 $ — Lottery winnings — 1 340 341 48,234 48,575 — Total $ 5 $ 3 $ 422 $ 430 $ 73,971 $ 74,401 $ — December 31, 2015 Structured settlements and annuities $ 9 $ 8 $ 481 $ 498 $ 25,798 $ 26,296 $ — Lottery winnings 3 3 206 212 50,224 50,436 — Total $ 12 $ 11 $ 687 $ 710 $ 76,022 $ 76,732 $ — |
Mortgage Loans Held for Sale,37
Mortgage Loans Held for Sale, at Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of mortgage loans held-for-sale | Mortgage loans held for sale, at fair value, were as follows: September 30, 2016 December 31, 2015 (In thousands) Unpaid principal balance of mortgage loans held for sale $ 296,322 $ 120,253 Fair value adjustment 12,168 4,255 Mortgage loans held for sale, at fair value $ 308,490 $ 124,508 A reconciliation of the changes in mortgage loans held for sale, at fair value, is presented in the following table: Nine Months Ended September 30, 2016 Nine Months Ended (In thousands) Balance at beginning of period $ 124,508 $ — Acquired through Home Lending acquisition — 131,325 Originations and purchases of mortgage loans held for sale, net of fees 2,462,754 352,641 Proceeds from sale of and principal payments on mortgage loans held for sale (2,343,415 ) (362,723 ) Net change in fair value of mortgage loans held for sale 64,643 8,946 Balance at end of period $ 308,490 $ 130,189 |
Schedule of activity in the loan indemnification reserve | The activity in the loan servicing and repurchase reserve was as follows: Nine Months Ended September 30, 2016 Nine Months Ended (In thousands) Balance at beginning of period $ 2,575 $ — Acquired through Home Lending acquisition — 3,031 Provision for loan servicing and repurchases 1,529 409 Write-offs, net (1,506 ) (520 ) Balance at end of period $ 2,598 $ 2,920 |
Mortgage Servicing Rights, at38
Mortgage Servicing Rights, at Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Transfers and Servicing [Abstract] | |
Summary of activity of mortgage servicing rights | The activity of MSRs was as follows: Nine Months Ended September 30, 2016 Nine Months Ended (In thousands) Balance at beginning of period $ 29,287 $ — Acquired through Home Lending acquisition — 27,638 Additions due to loans sold, servicing retained 11,404 1,298 Reductions due to loan payoffs and foreclosures (5,007 ) (631 ) Fair value adjustment (3,077 ) (119 ) Balance at end of period $ 32,607 $ 28,186 |
Schedule of assumptions for fair value of mortgage servicing rights | The key assumptions used in determining the fair value of the Company's MSRs were as follows: September 30, 2016 December 31, 2015 Range (Weighted Average) Discount rate 9.50% - 14.07% (10.15%) 9.54% - 14.06% (10.27%) Prepayment speed 6.80% - 31.22% (10.81%) 8.24% - 20.56% (9.06%) Cost of servicing $65 - $90 ($73) $65 - $90 ($75) |
Schedule of sensitivity analysis of fair value of mortgage servicing rights | The hypothetical effect of an adverse change in these key assumptions that would result in a decrease in fair values are as follows: September 30, 2016 December 31, 2015 Discount rate: Effect on value - 100 basis points adverse change $ (1,137 ) $ (1,082 ) Effect on value - 200 basis points adverse change $ (2,199 ) $ (2,088 ) Prepayment speeds: Effect on value - 5% adverse change $ (654 ) $ (542 ) Effect on value - 10% adverse change $ (1,285 ) $ (1,085 ) Cost of servicing: Effect on value - 5% adverse change $ (258 ) $ (232 ) Effect on value - 10% adverse change $ (516 ) $ (463 ) |
VIE Borrowings Under Revolvin39
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | |
Schedule of VIE borrowings under revolving credit facilities and other similar borrowings | VIE borrowings under revolving credit facilities and other similar borrowings on the condensed consolidated balance sheets consist of the following as of: Entity September 30, 2016 December 31, 2015 (In thousands) $100.0 million variable funding note facility with interest payable monthly (6.50% as of September 30, 2016 and December 31, 2015). The commitment period ends on May 19, 2018 and is collateralized by JGW-S III, LLC's ("JGW-S III") structured settlements receivables. JGW-S III is charged monthly an unused fee (0.75% as of September 30, 2016 and December 31, 2015) per annum for the undrawn balance of its line of credit. JGW-S III $ 15,053 $ 1,024 $300.0 million multi-tranche and lender credit facility with interest payable monthly as follows: Tranche A rate is 3.30% plus either the LIBOR or the Commercial Paper rate depending on the lender (3.83% and 4.37% at September 30, 2016 and 3.24% and 3.52% at December 31, 2015); Tranche B rate is 5.80% plus LIBOR (6.33% as of September 30, 2016 and 5.74% at December 31, 2015). The commitment period ends on July 24, 2017 and is collateralized by JGW V, LLC's ("JGW V") structured settlements, annuity and lottery receivables. JGW V is charged monthly an unused fee of 0.625% per annum for the undrawn balance of its line of credit. JGW V 17,449 38,153 Term advance facility, consisting of a single class requiring minimum principal payments with interest payable monthly at the lender's "prime rate" plus 1.00%, subject to a floor of 4.50% (4.50% at December 31, 2015). The facility is collateralized by certain pre-settlement receivables. The facility was terminated on August 11, 2016. Peach One — 9,651 Total VIE borrowings under revolving credit facilities and other similar borrowings $ 32,502 $ 48,828 The Company had the following lines of credit with various financial institutions, which are primarily used for funding of mortgage loans held for sale: September 30, 2016 December 31, 2015 (In thousands) $40.0 million warehouse line of credit maturing on January 6, 2017 with an interest rate of LIBOR plus 2.15%, subject to a floor of 2.40% (2.68% as of September 30, 2016 and December 31, 2015) and a non-usage fee of 0.25%. $ 32,034 $ 32,611 $95.0 million warehouse line of credit maturing on February 10, 2017 with an interest rate of LIBOR plus 2.35%, subject to a floor of 2.50% (2.88% as of September 30, 2016 and 2.68% as of December 31, 2015) and a non-usage fee of 0.25%. 82,072 33,530 $75.0 million warehouse line of credit maturing on June 16, 2017 with an interest rate of LIBOR plus 2.25%, subject to a floor of 2.50% (2.78% as of September 30, 2016 and 2.68% as of December 31, 2015). The facility does not incur a non-usage fee. 58,919 9,414 $50.0 million warehouse line of credit maturing on September 14, 2017 with an interest rate of LIBOR plus 2.60%, subject to a floor of 3.10% (3.13% as of September 30, 2016 and 3.50% as of December 31, 2015) and a non-usage fee of 0.25%. 41,243 16,031 $100.0 million warehouse line of credit maturing on September 28, 2017 with an interest rate of LIBOR plus 2.25% (2.78% as of September 30, 2016 and 2.68% as of December 31, 2015). The facility does not incur a non-usage fee. 79,931 26,657 $10.0 million operating line of credit maturing June 16, 2017 with an interest rate of Prime plus 0.50%, subject to a floor of 5.00% (5.00% as of September 30, 2016 and December 31, 2015) and a non-usage fee of 0.50%. 4,000 4,000 Total other borrowings under revolving credit facilities and other similar borrowings $ 298,199 $ 122,243 |
Other Borrowings Under Revolv40
Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of warehouse lines of credit | VIE borrowings under revolving credit facilities and other similar borrowings on the condensed consolidated balance sheets consist of the following as of: Entity September 30, 2016 December 31, 2015 (In thousands) $100.0 million variable funding note facility with interest payable monthly (6.50% as of September 30, 2016 and December 31, 2015). The commitment period ends on May 19, 2018 and is collateralized by JGW-S III, LLC's ("JGW-S III") structured settlements receivables. JGW-S III is charged monthly an unused fee (0.75% as of September 30, 2016 and December 31, 2015) per annum for the undrawn balance of its line of credit. JGW-S III $ 15,053 $ 1,024 $300.0 million multi-tranche and lender credit facility with interest payable monthly as follows: Tranche A rate is 3.30% plus either the LIBOR or the Commercial Paper rate depending on the lender (3.83% and 4.37% at September 30, 2016 and 3.24% and 3.52% at December 31, 2015); Tranche B rate is 5.80% plus LIBOR (6.33% as of September 30, 2016 and 5.74% at December 31, 2015). The commitment period ends on July 24, 2017 and is collateralized by JGW V, LLC's ("JGW V") structured settlements, annuity and lottery receivables. JGW V is charged monthly an unused fee of 0.625% per annum for the undrawn balance of its line of credit. JGW V 17,449 38,153 Term advance facility, consisting of a single class requiring minimum principal payments with interest payable monthly at the lender's "prime rate" plus 1.00%, subject to a floor of 4.50% (4.50% at December 31, 2015). The facility is collateralized by certain pre-settlement receivables. The facility was terminated on August 11, 2016. Peach One — 9,651 Total VIE borrowings under revolving credit facilities and other similar borrowings $ 32,502 $ 48,828 The Company had the following lines of credit with various financial institutions, which are primarily used for funding of mortgage loans held for sale: September 30, 2016 December 31, 2015 (In thousands) $40.0 million warehouse line of credit maturing on January 6, 2017 with an interest rate of LIBOR plus 2.15%, subject to a floor of 2.40% (2.68% as of September 30, 2016 and December 31, 2015) and a non-usage fee of 0.25%. $ 32,034 $ 32,611 $95.0 million warehouse line of credit maturing on February 10, 2017 with an interest rate of LIBOR plus 2.35%, subject to a floor of 2.50% (2.88% as of September 30, 2016 and 2.68% as of December 31, 2015) and a non-usage fee of 0.25%. 82,072 33,530 $75.0 million warehouse line of credit maturing on June 16, 2017 with an interest rate of LIBOR plus 2.25%, subject to a floor of 2.50% (2.78% as of September 30, 2016 and 2.68% as of December 31, 2015). The facility does not incur a non-usage fee. 58,919 9,414 $50.0 million warehouse line of credit maturing on September 14, 2017 with an interest rate of LIBOR plus 2.60%, subject to a floor of 3.10% (3.13% as of September 30, 2016 and 3.50% as of December 31, 2015) and a non-usage fee of 0.25%. 41,243 16,031 $100.0 million warehouse line of credit maturing on September 28, 2017 with an interest rate of LIBOR plus 2.25% (2.78% as of September 30, 2016 and 2.68% as of December 31, 2015). The facility does not incur a non-usage fee. 79,931 26,657 $10.0 million operating line of credit maturing June 16, 2017 with an interest rate of Prime plus 0.50%, subject to a floor of 5.00% (5.00% as of September 30, 2016 and December 31, 2015) and a non-usage fee of 0.50%. 4,000 4,000 Total other borrowings under revolving credit facilities and other similar borrowings $ 298,199 $ 122,243 |
VIE Long-Term Debt (Tables)
VIE Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
VIE Long-Term Debt | |
Schedule of VIE long-term debt | The VIE long-term debt consisted of the following as of: September 30, 2016 December 31, 2015 (In thousands) PLMT Permanent Facility $ 39,134 $ 41,265 Residual Term Facility — 130,832 Long-Term Pre-settlement Facility 5,789 6,590 2012-A Facility 856 944 LCSS Facility (2010-C) 12,303 12,573 LCSS Facility (2010-D) 7,159 7,159 Total VIE long-term debt $ 65,241 $ 199,363 |
VIE Long-Term Debt Issued by 42
VIE Long-Term Debt Issued by Securitization and Permanent Financing Trusts, at Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Value | |
Summary of securitization SPE transaction | The following table summarizes these securitization transactions: 2015-2 2015-1 Issue date 7/28/2015 3/31/2015 Bond proceeds (In millions) $158.4 $214.0 Receivables securitized 2,489 3,422 Deal discount rate 4.18% 3.64% Retained interest % 5.50% 5.50% Class allocation (Moody's) Aaa 84.75% 85.25% Baa2 9.75% 9.25% |
Summary of notes issued by securitization trusts and permanent financing trusts for which the Company has elected the fair value option | The following table summarizes notes issued by securitization trusts and permanent financing trusts for which the Company has elected the fair value option and which are recorded as VIE long-term debt issued by securitization and permanent financing trusts, at fair value, in the Company's condensed consolidated balance sheets: Outstanding Fair value as of September 30, 2016 Outstanding Fair Value as of (In thousands) Securitization trusts $ 3,414,681 $ 3,600,285 $ 3,637,231 $ 3,688,639 Permanent financing VIEs 449,907 445,348 250,895 240,179 Total VIE long-term debt issued by securitization and permanent financing trusts, at fair value $ 3,864,588 $ 4,045,633 $ 3,888,126 $ 3,928,818 |
Derivative Financial Instrume43
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amounts and fair values of the Company's interest rate swaps | The notional amounts and fair values of interest rate swaps were as follows: Entity Securitization Notional Amount Fair Value as of September 30, 2016 Notional Amount Fair Value as of December 31, 2015 (In thousands) 321 Henderson I, LLC 2004-A A-1 $ 21,402 $ (2,231 ) $ 25,859 $ (2,382 ) 321 Henderson I, LLC 2005-1 A-1 41,936 (6,074 ) 47,963 (6,186 ) 321 Henderson II, LLC 2006-1 A-1 8,476 (948 ) 10,694 (1,091 ) 322 Henderson II, LLC 2006-2 A-1 12,796 (2,180 ) 15,058 (2,239 ) 323 Henderson II, LLC 2006-3 A-1 12,575 (1,888 ) 15,798 (1,951 ) 324 Henderson II, LLC 2006-4 A-1 12,958 (1,283 ) 15,166 (1,489 ) 325 Henderson II, LLC 2007-1 A-2 23,938 (5,397 ) 26,887 (4,949 ) 326 Henderson II, LLC 2007-2 A-3 30,557 (8,817 ) 33,461 (8,085 ) JGW V, LLC — — — 31,857 59 PSS — 140,828 (31,732 ) 162,546 (29,486 ) PLMT — 45,505 (9,214 ) 48,587 (8,720 ) Total $ 350,971 $ (69,764 ) $ 433,876 $ (66,519 ) |
Schedule of derivative instruments | The notional amounts and fair values associated with IRLCs and forward sale commitments were as follows: September 30, 2016 December 31, 2015 Notional Amount Fair Value Notional Amount Fair Value Derivative Assets: Interest rate lock commitments $ 621,422 $ 13,346 $ 222,512 $ 4,934 Total $ 621,422 $ 13,346 $ 222,512 $ 4,934 Derivative Liabilities: Forward sale commitments $ 621,000 $ 1,920 $ 248,500 $ 147 Total $ 621,000 $ 1,920 $ 248,500 $ 147 |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Noncontrolling Interest [Abstract] | |
Schedule of changes in the non-controlling and JGWPT Holdings Inc.'s interests in Holdings LLC | Changes in the non-controlling and the Corporation's interest in JGW LLC for the nine months ended September 30, 2016 are presented in the following table: Total Common Interests Held By: The J.G. Wentworth Non-controlling Total Balance as of December 31, 2015 15,534,372 13,269,321 28,803,693 Common Interests acquired by The J.G. Wentworth Company as a result of the exchange of units for shares of Class A common stock 195,445 (195,445 ) — Common Interests forfeited — (2,439 ) (2,439 ) Balance as of September 30, 2016 15,729,817 13,071,437 28,801,254 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of assumptions used to estimate the fair value of stock option awards using the Black-Scholes valuation model | The valuation of the options that were modified on August 29, 2016 is based on the following terms: Nine Months Ended September 30, 2016 Fair value $0.13 - $0.15 Risk-free interest rate 1.19% - 1.37% Expected volatility 43.81% - 44.52% Expected life of options in years 5.1 - 6.5 Expected dividend yield — The fair value of stock option awards granted during the nine months ended September 30, 2016 was estimated using the Black-Scholes valuation model and included the following assumptions: Nine Months Ended September 30, 2016 Fair value $0.17 - $0.62 Risk-free interest rate 1.35% - 1.86% Expected volatility 40.84% - 44.50% Expected life of options in years 6.5 Expected dividend yield — |
Summary of stock option activity | A summary of stock option activity for the nine months ended September 30, 2016 is as follows: Shares Weighted - Weighted - Average Aggregate Outstanding as of December 31, 2015 1,363,378 $ 11.00 8.45 $ — Granted 434,500 0.80 Exercised — — Forfeited (182,140 ) 6.44 Canceled (180,000 ) 11.06 Expired (47,997 ) 12.49 Outstanding as of September 30, 2016 1,387,741 $ 5.78 7.98 $ — Outstanding, vested and expected to vest as of September 30, 2016 1,331,871 5.88 7.97 — Vested as of September 30, 2016 263,074 11.17 7.74 — |
Summary of performance-based restricted stock units | A summary of performance-based restricted stock units for the nine months ended September 30, 2016 is as follows: Performance- Based Weighted - Average Outstanding as of December 31, 2015 191,250 $ 9.48 Granted 127,250 1.14 Vested — — Forfeited (106,500 ) 6.26 Outstanding as of September 30, 2016 212,000 $ 6.09 Outstanding and expected to vest as of September 30, 2016 — — |
Summary of restricted common interests | A summary of restricted stock activity for the nine months ended September 30, 2016 is as follows: Restricted Stock Weighted - Average Outstanding as of December 31, 2015 66,038 $ 2.12 Granted — — Vested — — Outstanding as of September 30, 2016 66,038 $ 2.12 The following table summarizes the activities of unvested Restricted Common Interests in JGW LLC for the nine months ended September 30, 2016 : Unvested Restricted Common Interests Weighted - Average Grant - Date Fair Value Outstanding as of December 31, 2015 27,777 $ 6.30 Vested in period (15,467 ) 5.25 Forfeited (2,439 ) 1.71 Outstanding as of September 30, 2016 9,871 $ 9.06 Outstanding and expected to vest as of September 30, 2016 9,854 9.06 Vested as of September 30, 2016 — — |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the numerator and denominator used in the basic and diluted EPS calculations | The following table is a reconciliation of the numerator and denominator used in the basic and diluted EPS calculations: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (Dollars In thousands, except per share data) Numerator: Numerator for basic EPS - Net loss attributable to holders of The J.G. Wentworth Company Class A common stock $ (18,713 ) $ (26,697 ) $ (45,593 ) $ (40,338 ) Effect of dilutive securities: JGW LLC Common Interests and vested Restricted Common Interests — — — — JGW LLC unvested Restricted Common Interests — — — — Numerator for diluted EPS - Net loss attributable to holders of The J.G. Wentworth Company Class A common stock $ (18,713 ) $ (26,697 ) $ (45,593 ) $ (40,338 ) Denominator: Denominator for basic EPS - Weighted average shares of Class A common stock 15,663,475 14,918,415 15,633,696 14,437,117 Effect of dilutive securities: Stock options — — — — Warrants — — — — Restricted common stock and performance-based restricted stock units — — — — JGW LLC Common Interests and vested Restricted Common Interests — — — — JGW LLC unvested Restricted Common Interests — — — — Dilutive potential common shares — — — — Denominator for diluted EPS - Adjusted weighted average shares of Class A common stock 15,663,475 14,918,415 15,633,696 14,437,117 Basic loss per share of Class A common stock $ (1.19 ) $ (1.79 ) $ (2.92 ) $ (2.79 ) Diluted loss per share of Class A common stock $ (1.19 ) $ (1.79 ) $ (2.92 ) $ (2.79 ) |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Operating data by reportable segment | Structured Settlements Home Lending Other Adjustments/Eliminations Subtotal Reportable Segments (In thousands) Three Months Ended September 30, 2016 Segment Adjusted EBITDA $ 4,635 $ 9,423 — $ 14,058 Three Months Ended September 30, 2015 (1) Segment Adjusted EBITDA $ 16,582 $ 1,994 — $ 18,576 Nine Months Ended September 30, 2016 Segment Adjusted EBITDA $ 9,404 $ 23,673 — $ 33,077 Nine Months Ended September 30, 2015 (1) Segment Adjusted EBITDA $ 47,381 $ 1,994 — $ 49,375 (1) Home Lending was acquired on July 31, 2015 and, therefore, the results include only two months of Home Lending’s operations. The following table presents certain information regarding the Company’s business segments. Structured Settlements Home Lending Other Adjustments/Eliminations Consolidated (In thousands) Three Months Ended September 30, 2016 Total revenues (1) $ 37,302 $ 31,495 — $ 68,797 Total assets 4,655,253 449,506 — 5,104,759 Three Months Ended September 30, 2015 Total revenues (1) $ 51,775 $ 12,083 — $ 63,858 Total assets 5,128,902 250,264 — 5,379,166 Nine Months Ended September 30, 2016 Total revenues (1) $ 137,961 $ 80,136 — $ 218,097 Total assets 4,655,253 449,506 — 5,104,759 Nine Months Ended September 30, 2015 Total revenues (1) $ 199,970 $ 12,083 — $ 212,053 Total assets 5,128,902 250,264 — 5,379,166 (1) Home Lending was acquired on July 31, 2015 and, therefore, the results include only two months of Home Lending’s operations. Below is a reconciliation of the two reportable Segments' Adjusted EBITDA to loss before income taxes for the three months ended September 30, 2016 and 2015 : Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 (In thousands) Structured Settlements Segment Adjusted EBITDA $ 4,635 $ 16,582 Home Lending Segment Adjusted EBITDA (1) 9,423 1,994 Subtotal Reportable Segments' Adjusted EBITDA $ 14,058 $ 18,576 Securitization-related adjustments: Unrealized loss on finance receivables, long-term debt and derivatives post securitization due to changes in interest rates (32,495 ) (35,063 ) Interest income from securitized finance receivables 40,610 45,823 Interest income on retained interests in finance receivables (4,041 ) (5,436 ) Servicing income on securitized finance receivables (1,280 ) (1,336 ) Interest expense on long-term debt related to securitization and permanent financing trusts (39,387 ) (40,036 ) Swap termination expense related to securitization entities — — Professional fees relating to securitizations (1,380 ) (1,464 ) Provision for losses associated with permanently financed VIEs (543 ) — Other adjustments: Share based compensation (367 ) (273 ) Impact of prefunding on unsecuritized finance receivables (2,861 ) 24 Lease termination, severance and other restructuring related expenses (747 ) (1,245 ) Merger and acquisition related expense — (419 ) Debt modification expense 97 (792 ) Impairment charges and loss on disposal of assets — (29,860 ) Term loan interest expense (10,184 ) (10,192 ) Debt issuance (2,584 ) (2,220 ) Broker and legal fees incurred in connection with sale of finance receivables (404 ) — Depreciation and amortization (1,182 ) (966 ) Loss Before Income Taxes $ (42,690 ) $ (64,879 ) (1) Home Lending was acquired on July 31, 2015 and, therefore, the results include only two months of Home Lending’s operations. Below is a reconciliation of the two reportable Segments' Adjusted EBITDA to loss before income taxes for the nine months ended September 30, 2016 and 2015 : Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 (In thousands) Structured Settlements Segment Adjusted EBITDA $ 9,404 $ 47,381 Home Lending Segment Adjusted EBITDA (1) 23,673 1,994 Subtotal Reportable Segments' Adjusted EBITDA $ 33,077 $ 49,375 Securitization-related adjustments: Unrealized loss on finance receivables, long-term debt and derivatives post securitization due to changes in interest rates (83,801 ) (67,254 ) Interest income from securitized finance receivables 134,153 127,059 Interest income on retained interests in finance receivables (15,798 ) (15,869 ) Servicing income on securitized finance receivables (3,919 ) (3,967 ) Interest expense on long-term debt related to securitization and permanent financing trusts (119,230 ) (109,923 ) Swap termination expense related to securitization entities (3,053 ) — Professional fees relating to securitizations (4,223 ) (4,454 ) Provision for losses associated with permanently financed VIEs (543 ) — Other adjustments: — Share based compensation (997 ) (1,389 ) Impact of prefunding on unsecuritized finance receivables — (1,594 ) Lease termination, severance and other restructuring related expenses (3,486 ) (3,620 ) Merger and acquisition related expense — (1,608 ) Debt modification expense (2,258 ) (792 ) Impairment charges and loss on disposal of assets (5,483 ) (29,860 ) Term loan interest expense (30,375 ) (30,193 ) Debt issuance (2,612 ) (5,092 ) Broker and legal fees incurred in connection with sale of finance receivables (1,959 ) — Depreciation and amortization (3,646 ) (2,961 ) Loss Before Income Taxes $ (114,153 ) $ (102,142 ) |
Cost Savings Activities (Tables
Cost Savings Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | A reconciliation of the liabilities associated with the cost reduction plan by reportable segment are as follows: Structured Settlements Home Lending Consolidated (In thousands) Balance at December 31, 2015 $ — $ — $ — Severance expense 2,359 495 2,854 Lease terminations 827 — 827 Payments (1,324 ) (274 ) (1,598 ) Adjustments (194 ) — (194 ) Balance at September 30, 2016 $ 1,668 $ 221 $ 1,889 |
Background, Basis of Presenta49
Background, Basis of Presentation and Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)segment | Sep. 30, 2015USD ($) | Dec. 31, 2015 | |
Basis of Presentation [Line Items] | |||||
Number of reportable segments | segment | 2 | ||||
Tax (benefit) attributable to The J.G. Wentworth Company | $ (5,500) | $ (7,800) | $ (16,500) | $ (13,300) | |
Total tax (benefit) | $ (3,883) | $ (7,252) | $ (16,787) | $ (12,422) | |
Merger Sub | |||||
Basis of Presentation [Line Items] | |||||
Voting interest acquired (as a percent) | 54.60% | 54.60% | 53.90% | ||
Non-controlling interest (as a percent) | 45.40% | 45.40% | 46.10% | ||
Weighted average economic interests by non-controlling owners (as a percent) | 45.40% | 47.30% | 45.50% | 49.00% |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | Jul. 31, 2015 | Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 8,369 | $ 8,369 | $ 8,369 | |||||
Business Acquisition, Pro Forma Information [Abstract] | ||||||||
Net loss | $ (38,807) | $ (57,627) | $ (97,366) | $ (89,720) | ||||
Home Lending | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair value of total consideration | $ 74,600 | |||||||
Cash consideration paid | 53,200 | |||||||
Equity instruments issued for consideration | 13,000 | |||||||
Post close adjustment liabilities | 8,400 | |||||||
Contingent consideration amount paid during period | $ 7,600 | $ 800 | ||||||
Goodwill | 8,400 | |||||||
Intangible assets | 23,800 | |||||||
Intangible assets acquired - finite lived | $ 10,600 | |||||||
Weighted average useful life (in years) | 9 years 3 months 18 days | |||||||
Business Acquisition, Pro Forma Information [Abstract] | ||||||||
Pro forma total revenues | 257,048 | $ 411,451 | ||||||
Pro forma net loss before income taxes | $ (92,642) | 98,460 | ||||||
Home Lending | Acquisition-related Costs | ||||||||
Business Acquisition, Pro Forma Information [Abstract] | ||||||||
Net loss | $ 3,800 | |||||||
Home Lending | Affinity Relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted average useful life (in years) | 10 years | |||||||
Finite-lived intangible assets | $ 9,500 | |||||||
Home Lending | Trade name | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted average useful life (in years) | 3 years | |||||||
Finite-lived intangible assets | $ 1,100 | |||||||
Home Lending | Licensing Agreements | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets acquired - indefinite lived | $ 13,200 | |||||||
Home Lending | Common Stock - Class A | ||||||||
Business Acquisition [Line Items] | ||||||||
Equity instruments issued for consideration (in shares) | 1,572,327 |
Goodwill and Intangible Asset51
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Goodwill [Line Items] | ||
Goodwill | $ 8,369,000 | $ 8,369,000 |
Home Lending | ||
Goodwill [Line Items] | ||
Goodwill | 8,400,000 | $ 8,400,000 |
Structured Settlements | ||
Goodwill [Line Items] | ||
Goodwill | $ 0 |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets - Intangible assets subject to amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Accumulated Amortization | $ (22,294) | $ (22,294) | $ (20,700) | ||
Finite-lived intangible assets | 10,152 | 10,152 | |||
Amortization of intangibles | 500 | $ 400 | 1,594 | $ 1,284 | |
Impairment charges | 0 | 29,860 | 5,483 | 29,860 | |
Trade name | Orchard Acquisition Company | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets | 500 | 500 | 3,300 | ||
Structured Settlements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 21,804 | 21,804 | 23,939 | ||
Accumulated Amortization | (20,598) | (20,598) | (20,075) | ||
Structured Settlements | Trade name | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment charges | $ 29,900 | 2,800 | $ 29,900 | ||
Structured Settlements | Database | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 4,609 | 4,609 | 4,609 | ||
Accumulated Amortization | (4,326) | (4,326) | (4,250) | ||
Structured Settlements | Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 16,096 | 16,096 | 18,844 | ||
Accumulated Amortization | (15,709) | (15,709) | (15,375) | ||
Impairment charges | $ 2,700 | ||||
Amortization period | 3 years | ||||
Structured Settlements | Domain names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 486 | $ 486 | 486 | ||
Accumulated Amortization | (458) | (458) | (450) | ||
Structured Settlements | Trade name | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 613 | 613 | |||
Accumulated Amortization | (105) | (105) | |||
Structured Settlements | Affinity Relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 0 | ||||
Accumulated Amortization | 0 | ||||
Home Lending | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 10,642 | 10,642 | 10,642 | ||
Accumulated Amortization | (1,696) | (1,696) | (625) | ||
Home Lending | Licensing Agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Carrying value of indefinite-lived licenses and approvals | 13,200 | 13,200 | 13,200 | ||
Home Lending | Trade name | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 1,095 | 1,095 | 1,095 | ||
Accumulated Amortization | (582) | (582) | (228) | ||
Home Lending | Affinity Relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 9,547 | 9,547 | 9,547 | ||
Accumulated Amortization | $ (1,114) | $ (1,114) | $ (397) |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2016 | $ 484 |
2,017 | 1,743 |
2,018 | 1,560 |
2,019 | 1,035 |
2,020 | 957 |
2,021 | 954 |
Thereafter | 3,419 |
Total future amortization expense | $ 10,152 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2016 | Dec. 31, 2015 | Sep. 02, 2016 | Sep. 30, 2015 | Dec. 31, 2014 | ||||
Assets and liabilities that are carried at fair value | ||||||||
Maximum recovery period of other receivables | 3 months | |||||||
Marketable securities: | ||||||||
Total marketable securities, at fair value | $ 79,779 | $ 84,994 | ||||||
VIE and other finance receivables, at fair value | 4,228,982 | 4,386,147 | ||||||
Mortgage loans held for sale, at fair value | 308,490 | [1] | 124,508 | [1] | $ 130,189 | $ 0 | ||
Mortgage servicing rights, at fair value | [1] | 32,607 | 29,287 | |||||
Liabilities | ||||||||
VIE derivative liabilities, at fair value | 69,764 | 66,519 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 4,045,633 | 3,928,818 | ||||||
Total at Fair Value | ||||||||
Marketable securities: | ||||||||
Total equity securities | 54,660 | 56,736 | ||||||
Total fixed income securities | 17,827 | 18,162 | ||||||
Total other securities | 7,292 | 10,096 | ||||||
Total marketable securities, at fair value | 79,779 | 84,994 | ||||||
VIE and other finance receivables, at fair value | 4,228,982 | 4,386,147 | ||||||
Mortgage loans held for sale, at fair value | 308,490 | 124,508 | ||||||
Mortgage servicing rights, at fair value | 32,607 | 29,287 | ||||||
Interest rate lock commitments, at fair value | 13,346 | 4,934 | ||||||
Total Assets | 4,663,204 | 4,629,870 | ||||||
Liabilities | ||||||||
VIE derivative liabilities, at fair value | 69,764 | 66,519 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 4,045,633 | 3,928,818 | ||||||
Forward sale commitments, at fair value | 1,920 | 147 | ||||||
Total Liabilities | 4,117,317 | 3,995,484 | ||||||
Quoted Prices in Active Markets for Identical Assets Level 1 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 54,660 | 56,736 | ||||||
Total fixed income securities | 17,827 | 18,162 | ||||||
Total other securities | 7,292 | 10,096 | ||||||
Total marketable securities, at fair value | 79,779 | 84,994 | ||||||
VIE and other finance receivables, at fair value | 0 | 0 | ||||||
Mortgage loans held for sale, at fair value | 0 | 0 | ||||||
Mortgage servicing rights, at fair value | 0 | 0 | ||||||
Interest rate lock commitments, at fair value | 0 | 0 | ||||||
Total Assets | 79,779 | 84,994 | ||||||
Liabilities | ||||||||
VIE derivative liabilities, at fair value | 0 | 0 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 0 | 0 | ||||||
Forward sale commitments, at fair value | 0 | 0 | ||||||
Total Liabilities | 0 | 0 | ||||||
Significant Other Observable Inputs Level 2 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 0 | 0 | ||||||
Total fixed income securities | 0 | 0 | ||||||
Total other securities | 0 | 0 | ||||||
Total marketable securities, at fair value | 0 | 0 | ||||||
VIE and other finance receivables, at fair value | 0 | 0 | ||||||
Mortgage loans held for sale, at fair value | 308,490 | 124,508 | ||||||
Mortgage servicing rights, at fair value | 0 | 0 | ||||||
Interest rate lock commitments, at fair value | 0 | 0 | ||||||
Total Assets | 308,490 | 124,508 | ||||||
Liabilities | ||||||||
VIE derivative liabilities, at fair value | 69,764 | 66,519 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 0 | 0 | ||||||
Forward sale commitments, at fair value | 1,920 | 147 | ||||||
Total Liabilities | 71,684 | 66,666 | ||||||
Significant Unobservable Inputs Level 3 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 0 | 0 | ||||||
Total fixed income securities | 0 | 0 | ||||||
Total other securities | 0 | 0 | ||||||
Total marketable securities, at fair value | 0 | 0 | ||||||
VIE and other finance receivables, at fair value | 4,228,982 | 4,386,147 | ||||||
Mortgage loans held for sale, at fair value | 0 | 0 | ||||||
Mortgage servicing rights, at fair value | 32,607 | 29,287 | ||||||
Interest rate lock commitments, at fair value | 13,346 | 4,934 | ||||||
Total Assets | 4,274,935 | 4,420,368 | ||||||
Liabilities | ||||||||
VIE derivative liabilities, at fair value | 0 | 0 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 4,045,633 | 3,928,818 | ||||||
Forward sale commitments, at fair value | 0 | 0 | ||||||
Total Liabilities | 4,045,633 | 3,928,818 | ||||||
VIE | ||||||||
Liabilities | ||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 4,045,633 | 3,928,818 | ||||||
VIE | VIE long-term debt issued by securitization and permanent financing trusts, at fair value | ||||||||
Assets and liabilities that are carried at fair value | ||||||||
Loan amount | $ 207,500 | |||||||
US large cap | Total at Fair Value | ||||||||
Marketable securities: | ||||||||
Total equity securities | 29,123 | 28,670 | ||||||
US large cap | Quoted Prices in Active Markets for Identical Assets Level 1 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 29,123 | 28,670 | ||||||
US large cap | Significant Other Observable Inputs Level 2 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 0 | 0 | ||||||
US large cap | Significant Unobservable Inputs Level 3 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 0 | 0 | ||||||
US mid cap | Total at Fair Value | ||||||||
Marketable securities: | ||||||||
Total equity securities | 4,994 | 5,213 | ||||||
US mid cap | Quoted Prices in Active Markets for Identical Assets Level 1 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 4,994 | 5,213 | ||||||
US mid cap | Significant Other Observable Inputs Level 2 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 0 | 0 | ||||||
US mid cap | Significant Unobservable Inputs Level 3 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 0 | 0 | ||||||
US small cap | Total at Fair Value | ||||||||
Marketable securities: | ||||||||
Total equity securities | 6,467 | 5,477 | ||||||
US small cap | Quoted Prices in Active Markets for Identical Assets Level 1 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 6,467 | 5,477 | ||||||
US small cap | Significant Other Observable Inputs Level 2 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 0 | 0 | ||||||
US small cap | Significant Unobservable Inputs Level 3 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 0 | 0 | ||||||
International | Total at Fair Value | ||||||||
Marketable securities: | ||||||||
Total equity securities | 10,998 | 14,068 | ||||||
International | Quoted Prices in Active Markets for Identical Assets Level 1 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 10,998 | 14,068 | ||||||
International | Significant Other Observable Inputs Level 2 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 0 | 0 | ||||||
International | Significant Unobservable Inputs Level 3 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 0 | 0 | ||||||
Other equity | Total at Fair Value | ||||||||
Marketable securities: | ||||||||
Total equity securities | 3,078 | 3,308 | ||||||
Other equity | Quoted Prices in Active Markets for Identical Assets Level 1 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 3,078 | 3,308 | ||||||
Other equity | Significant Other Observable Inputs Level 2 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 0 | 0 | ||||||
Other equity | Significant Unobservable Inputs Level 3 | ||||||||
Marketable securities: | ||||||||
Total equity securities | 0 | 0 | ||||||
US fixed income | Total at Fair Value | ||||||||
Marketable securities: | ||||||||
Total fixed income securities | 16,779 | 16,945 | ||||||
US fixed income | Quoted Prices in Active Markets for Identical Assets Level 1 | ||||||||
Marketable securities: | ||||||||
Total fixed income securities | 16,779 | 16,945 | ||||||
US fixed income | Significant Other Observable Inputs Level 2 | ||||||||
Marketable securities: | ||||||||
Total fixed income securities | 0 | 0 | ||||||
US fixed income | Significant Unobservable Inputs Level 3 | ||||||||
Marketable securities: | ||||||||
Total fixed income securities | 0 | 0 | ||||||
International fixed income | Total at Fair Value | ||||||||
Marketable securities: | ||||||||
Total fixed income securities | 1,048 | 1,217 | ||||||
International fixed income | Quoted Prices in Active Markets for Identical Assets Level 1 | ||||||||
Marketable securities: | ||||||||
Total fixed income securities | 1,048 | 1,217 | ||||||
International fixed income | Significant Other Observable Inputs Level 2 | ||||||||
Marketable securities: | ||||||||
Total fixed income securities | 0 | 0 | ||||||
International fixed income | Significant Unobservable Inputs Level 3 | ||||||||
Marketable securities: | ||||||||
Total fixed income securities | 0 | 0 | ||||||
Other fixed income | Total at Fair Value | ||||||||
Marketable securities: | ||||||||
Total fixed income securities | 0 | 0 | ||||||
Other fixed income | Quoted Prices in Active Markets for Identical Assets Level 1 | ||||||||
Marketable securities: | ||||||||
Total fixed income securities | 0 | 0 | ||||||
Other fixed income | Significant Other Observable Inputs Level 2 | ||||||||
Marketable securities: | ||||||||
Total fixed income securities | 0 | 0 | ||||||
Other fixed income | Significant Unobservable Inputs Level 3 | ||||||||
Marketable securities: | ||||||||
Total fixed income securities | 0 | 0 | ||||||
Cash & cash equivalents | Total at Fair Value | ||||||||
Marketable securities: | ||||||||
Total other securities | 4,105 | 7,634 | ||||||
Cash & cash equivalents | Quoted Prices in Active Markets for Identical Assets Level 1 | ||||||||
Marketable securities: | ||||||||
Total other securities | 4,105 | 7,634 | ||||||
Cash & cash equivalents | Significant Other Observable Inputs Level 2 | ||||||||
Marketable securities: | ||||||||
Total other securities | 0 | 0 | ||||||
Cash & cash equivalents | Significant Unobservable Inputs Level 3 | ||||||||
Marketable securities: | ||||||||
Total other securities | 0 | 0 | ||||||
Alternative investments | Total at Fair Value | ||||||||
Marketable securities: | ||||||||
Total other securities | 913 | 161 | ||||||
Alternative investments | Quoted Prices in Active Markets for Identical Assets Level 1 | ||||||||
Marketable securities: | ||||||||
Total other securities | 913 | 161 | ||||||
Alternative investments | Significant Other Observable Inputs Level 2 | ||||||||
Marketable securities: | ||||||||
Total other securities | 0 | 0 | ||||||
Alternative investments | Significant Unobservable Inputs Level 3 | ||||||||
Marketable securities: | ||||||||
Total other securities | 0 | 0 | ||||||
Annuities | Total at Fair Value | ||||||||
Marketable securities: | ||||||||
Total other securities | 2,274 | 2,301 | ||||||
Annuities | Quoted Prices in Active Markets for Identical Assets Level 1 | ||||||||
Marketable securities: | ||||||||
Total other securities | 2,274 | 2,301 | ||||||
Annuities | Significant Other Observable Inputs Level 2 | ||||||||
Marketable securities: | ||||||||
Total other securities | 0 | 0 | ||||||
Annuities | Significant Unobservable Inputs Level 3 | ||||||||
Marketable securities: | ||||||||
Total other securities | $ 0 | $ 0 | ||||||
VIE and other finance receivables, at fair value | ||||||||
Assets and liabilities that are carried at fair value | ||||||||
Discount rate for discounting residual cash flows (as a percent) | 10.36% | 8.30% | ||||||
Expected weighted average life (in years) | 20 years | 20 years | ||||||
Loss assumption (as a percent) | 0.25% | |||||||
[1] | Pledged as collateral to Other borrowings under revolving credit facilities and other similar borrowings. Refer to Note 8 "Mortgage Loans Held for Sale, at Fair Value" and Note 9 "Mortgage Servicing Rights, at Fair Value." |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information About Level 3 Fair Value Measurements (Details) - Level 3 - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Quantitative information about fair value measurements | ||
Fair value of assets | $ 4,274,935,000 | $ 4,420,368,000 |
Interest rate lock commitments, at fair value | 4,274,935,000 | 4,420,368,000 |
Fair value of liabilities | 4,045,633,000 | 3,928,818,000 |
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | ||
Quantitative information about fair value measurements | ||
Fair value of liabilities | $ 4,045,633,000 | $ 3,928,818,000 |
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | Discounted cash flow | Minimum | ||
Unobservable Input | ||
Discount rate (as a percent) | 1.48% | 1.69% |
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | Discounted cash flow | Maximum | ||
Unobservable Input | ||
Discount rate (as a percent) | 11.70% | 12.30% |
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | Discounted cash flow | Weighted Average | ||
Unobservable Input | ||
Discount rate (as a percent) | 3.84% | 4.13% |
VIE and other finance receivables, at fair value | ||
Quantitative information about fair value measurements | ||
Fair value of assets | $ 4,228,982,000 | $ 4,386,147,000 |
VIE and other finance receivables, at fair value | Discounted cash flow | Minimum | ||
Unobservable Input | ||
Discount rate (as a percent) | 2.72% | 3.33% |
VIE and other finance receivables, at fair value | Discounted cash flow | Maximum | ||
Unobservable Input | ||
Discount rate (as a percent) | 11.90% | 12.30% |
VIE and other finance receivables, at fair value | Discounted cash flow | Weighted Average | ||
Unobservable Input | ||
Discount rate (as a percent) | 3.93% | 4.47% |
Mortgage servicing rights, at fair value | ||
Quantitative information about fair value measurements | ||
Fair value of assets | $ 32,607,000 | $ 29,287,000 |
Mortgage servicing rights, at fair value | Discounted cash flow | Minimum | ||
Unobservable Input | ||
Discount rate (as a percent) | 9.50% | 9.54% |
Prepayment rate (as a percent) | 6.80% | 8.24% |
Cost of servicing | $ 65 | $ 65 |
Mortgage servicing rights, at fair value | Discounted cash flow | Maximum | ||
Unobservable Input | ||
Discount rate (as a percent) | 14.07% | 14.06% |
Prepayment rate (as a percent) | 31.22% | 20.56% |
Cost of servicing | $ 90 | $ 90 |
Mortgage servicing rights, at fair value | Discounted cash flow | Weighted Average | ||
Unobservable Input | ||
Discount rate (as a percent) | 10.15% | 10.27% |
Prepayment rate (as a percent) | 10.81% | 9.06% |
Cost of servicing | $ 73 | $ 75 |
Interest rate lock commitments, at fair value | ||
Quantitative information about fair value measurements | ||
Interest rate lock commitments, at fair value | $ 13,346,000 | $ 4,934,000 |
Interest rate lock commitments, at fair value | Internal model | Minimum | ||
Unobservable Input | ||
Pull through rate (as a percent) | 32.88% | 37.44% |
Interest rate lock commitments, at fair value | Internal model | Maximum | ||
Unobservable Input | ||
Pull through rate (as a percent) | 91.52% | 100.00% |
Interest rate lock commitments, at fair value | Internal model | Weighted Average | ||
Unobservable Input | ||
Pull through rate (as a percent) | 61.69% | 74.91% |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Assets Measured At Level 3 (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Changes in assets | ||
Balance at the beginning of the period | $ 4,420,368 | $ 4,523,835 |
Unrealized gains | 109,546 | 3,050 |
Realized gain on sale of finance receivable | 69,597 | |
Included in other comprehensive gain | 0 | 0 |
Purchases of finance receivables | 204,775 | 296,468 |
Interest accreted | 131,392 | 124,870 |
Payments received | (384,478) | (384,726) |
Sale of finance receivables | (271,331) | |
Transfers to/from other balance sheet line items | (4,934) | (5,221) |
Assets acquired in connection with the Home Lending acquisition | 32,859 | |
Transfers in and/or out of Level 3 | 0 | 0 |
Balance at the end of the period | 4,274,935 | 4,591,135 |
Amount of net gains (losses) for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held at the end of the period | 109,546 | 3,050 |
VIE and other finance receivables, at fair value | ||
Changes in assets | ||
Balance at the beginning of the period | 4,386,147 | 4,523,835 |
Unrealized gains | 92,880 | (5,320) |
Realized gain on sale of finance receivable | 69,597 | |
Included in other comprehensive gain | 0 | 0 |
Purchases of finance receivables | 204,775 | 296,468 |
Interest accreted | 131,392 | 124,870 |
Payments received | (384,478) | (384,726) |
Sale of finance receivables | (271,331) | |
Transfers to/from other balance sheet line items | 0 | 0 |
Assets acquired in connection with the Home Lending acquisition | 0 | |
Transfers in and/or out of Level 3 | 0 | 0 |
Balance at the end of the period | 4,228,982 | 4,555,127 |
Amount of net gains (losses) for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held at the end of the period | 92,880 | (5,320) |
Mortgage servicing rights, at fair value | ||
Changes in assets | ||
Balance at the beginning of the period | 29,287 | 0 |
Unrealized gains | 3,320 | 548 |
Realized gain on sale of finance receivable | 0 | |
Included in other comprehensive gain | 0 | 0 |
Purchases of finance receivables | 0 | 0 |
Interest accreted | 0 | 0 |
Payments received | 0 | 0 |
Sale of finance receivables | 0 | |
Transfers to/from other balance sheet line items | 0 | 0 |
Assets acquired in connection with the Home Lending acquisition | 27,638 | |
Transfers in and/or out of Level 3 | 0 | 0 |
Balance at the end of the period | 32,607 | 28,186 |
Amount of net gains (losses) for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held at the end of the period | 3,320 | 548 |
Interest rate lock commitments, at fair value | ||
Changes in assets | ||
Balance at the beginning of the period | 4,934 | 0 |
Unrealized gains | 13,346 | 7,822 |
Realized gain on sale of finance receivable | 0 | |
Included in other comprehensive gain | 0 | 0 |
Purchases of finance receivables | 0 | 0 |
Interest accreted | 0 | 0 |
Payments received | 0 | 0 |
Sale of finance receivables | 0 | |
Transfers to/from other balance sheet line items | (4,934) | (5,221) |
Assets acquired in connection with the Home Lending acquisition | 5,221 | |
Transfers in and/or out of Level 3 | 0 | 0 |
Balance at the end of the period | 13,346 | 7,822 |
Amount of net gains (losses) for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held at the end of the period | $ 13,346 | $ 7,822 |
Fair Value Measurements - Cha57
Fair Value Measurements - Changes in Liabilities Measured At Level 3 (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Changes in liabilities | ||
Assets acquired in connection with the Home Lending acquisition | $ 32,859 | |
Transfers in and/or out of Level 3 | $ 0 | 0 |
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | ||
Changes in liabilities | ||
Balance at the beginning of the period | 3,928,818 | 4,031,864 |
Unrealized (gain) loss | (167,243) | 67,305 |
Issuances | 216,806 | 380,417 |
Interest accreted | (26,894) | (33,659) |
Repayments | (240,340) | (237,107) |
Transfers in and/or out of Level 3 | 0 | 0 |
Balance at the end of the period | 4,045,633 | 4,074,210 |
The amount of net (gains) losses for the period included in revenues attributable to the change in unrealized gains or losses relating to long-term debt still held at the end of the period | $ 167,243 | $ (66,712) |
Fair Value Measurements - Reali
Fair Value Measurements - Realized and Unrealized Gain Included in Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
VIE and other finance receivables and long-term debt, at fair value | ||||
Realized and unrealized gains and losses included in earnings | ||||
Net (loss) gains included in revenues | $ (14,238) | $ 13,952 | $ (4,766) | $ 61,985 |
Unrealized (losses) gains relating to assets and long-term debt still held | (29,616) | 13,952 | (74,363) | 61,392 |
Mortgage servicing rights, at fair value | ||||
Realized and unrealized gains and losses included in earnings | ||||
Net (loss) gains included in revenues | 1,480 | 548 | 3,320 | 548 |
Unrealized (losses) gains relating to assets and long-term debt still held | 1,480 | 548 | 3,320 | 548 |
Interest rate lock commitments, at fair value | ||||
Realized and unrealized gains and losses included in earnings | ||||
Net (loss) gains included in revenues | 13,346 | 4,934 | 13,346 | 4,934 |
Unrealized (losses) gains relating to assets and long-term debt still held | $ 13,346 | $ 4,934 | $ 13,346 | $ 4,934 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Value and Carrying Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |||
Financial assets | |||||||
VIE and other finance receivables, at fair value | $ 4,228,982 | $ 4,386,147 | |||||
Other receivables, net of allowance for losses (1) | 17,832 | 16,285 | |||||
Mortgage loans held for sale, at fair value | 308,490 | [1] | 124,508 | [1] | $ 130,189 | $ 0 | |
Mortgage servicing rights, at fair value | [1] | 32,607 | 29,287 | ||||
Marketable securities, at fair value | 79,779 | 84,994 | |||||
Financial liabilities | |||||||
Term loan payable | 442,429 | 440,181 | |||||
VIE derivative liabilities, at fair value | 69,764 | 66,519 | |||||
VIE borrowings under revolving credit facilities and other similar borrowings | 32,502 | 48,828 | |||||
Other borrowings under revolving credit facilities and other similar borrowings | 298,199 | 122,243 | |||||
VIE long-term debt | 65,241 | 199,363 | |||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 4,045,633 | 3,928,818 | |||||
Installment obligations payable | 79,779 | 84,994 | |||||
Estimated Fair Value | |||||||
Financial assets | |||||||
VIE and other finance receivables, at fair value | 4,228,982 | 4,386,147 | |||||
VIE and other finance receivables, net of allowance for losses | 90,993 | 103,609 | |||||
Other receivables, net of allowance for losses (1) | 17,832 | 16,285 | |||||
Mortgage loans held for sale, at fair value | 308,490 | 124,508 | |||||
Mortgage servicing rights, at fair value | 32,607 | 29,287 | |||||
Marketable securities, at fair value | 79,779 | 84,994 | |||||
Interest rate lock commitments, at fair value | 13,346 | 4,934 | |||||
Financial liabilities | |||||||
Term loan payable | 179,472 | 325,558 | |||||
VIE derivative liabilities, at fair value | 69,764 | 66,519 | |||||
VIE borrowings under revolving credit facilities and other similar borrowings | 32,910 | 53,737 | |||||
Other borrowings under revolving credit facilities and other similar borrowings | 297,616 | 122,243 | |||||
VIE long-term debt | 59,611 | 194,211 | |||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 4,045,633 | 3,928,818 | |||||
Forward sale commitments, at fair value | 1,920 | 147 | |||||
Installment obligations payable | 79,779 | 84,994 | |||||
Carrying Amount | |||||||
Financial assets | |||||||
VIE and other finance receivables, at fair value | 4,228,892 | 4,386,147 | |||||
VIE and other finance receivables, net of allowance for losses | 96,176 | 110,342 | |||||
Other receivables, net of allowance for losses (1) | 17,832 | 16,285 | |||||
Mortgage loans held for sale, at fair value | 308,490 | 124,508 | |||||
Mortgage servicing rights, at fair value | 32,607 | 29,287 | |||||
Marketable securities, at fair value | 79,779 | 84,994 | |||||
Interest rate lock commitments, at fair value | 13,346 | 4,934 | |||||
Financial liabilities | |||||||
Term loan payable | 442,429 | 440,181 | |||||
VIE derivative liabilities, at fair value | 69,764 | 66,519 | |||||
VIE borrowings under revolving credit facilities and other similar borrowings | 32,502 | 48,828 | |||||
Other borrowings under revolving credit facilities and other similar borrowings | 298,199 | 122,243 | |||||
VIE long-term debt | 65,241 | 199,363 | |||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 4,045,633 | 3,928,818 | |||||
Forward sale commitments, at fair value | 1,920 | 147 | |||||
Installment obligations payable | $ 79,779 | $ 84,994 | |||||
[1] | Pledged as collateral to Other borrowings under revolving credit facilities and other similar borrowings. Refer to Note 8 "Mortgage Loans Held for Sale, at Fair Value" and Note 9 "Mortgage Servicing Rights, at Fair Value." |
VIE and Other Finance Receiva60
VIE and Other Finance Receivables, at Fair Value (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Aug. 31, 2016 | Jun. 30, 2016 | Apr. 30, 2016 | Feb. 29, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||
VIE and other finance receivables, at fair market value | ||||||||||
Maturity value | $ 6,545,534,000 | $ 6,545,534,000 | $ 6,876,687,000 | |||||||
Unearned income | (2,316,552,000) | (2,316,552,000) | (2,490,540,000) | |||||||
Total VIE finance receivables at fair value | [1] | 4,214,396,000 | 4,214,396,000 | 4,376,458,000 | ||||||
Not encumbered | 14,586,000 | 14,586,000 | 9,689,000 | |||||||
Total VIE and other finance receivables at fair value | 4,228,982,000 | 4,228,982,000 | 4,386,147,000 | |||||||
Unsecuritized finance receivables | 162,000,000 | 162,000,000 | 149,600,000 | |||||||
Gain on sale of finance receivables | 271,331,000 | $ 0 | ||||||||
Realized and unrealized (losses) gains on VIE and other finance receivables, long-term debt and derivatives | (9,104,000) | $ 7,556,000 | (12,339,000) | 62,877,000 | ||||||
Servicing fee income | 245,000 | $ 199,000 | 679,000 | $ 614,000 | ||||||
Other Finance Receivables | ||||||||||
VIE and other finance receivables, at fair market value | ||||||||||
Not encumbered | 14,586,000 | 14,586,000 | 9,689,000 | |||||||
VIE | ||||||||||
VIE and other finance receivables, at fair market value | ||||||||||
Unsecuritized finance receivables | 147,400,000 | 147,400,000 | 139,900,000 | |||||||
VIE and other finance receivables, at fair value | ||||||||||
VIE and other finance receivables, at fair market value | ||||||||||
Balance of Total Receivable Balance Purchases | $ 93,600,000 | $ 81,300,000 | $ 115,800,000 | $ 151,500,000 | ||||||
Gain on sale of finance receivables | 59,200,000 | 50,800,000 | 70,000,000 | 91,300,000 | ||||||
Realized and unrealized (losses) gains on VIE and other finance receivables, long-term debt and derivatives | $ 15,400,000 | $ 13,900,000 | $ 18,600,000 | $ 21,700,000 | ||||||
VIE securitization debt | ||||||||||
VIE and other finance receivables, at fair market value | ||||||||||
Total VIE finance receivables at fair value | 4,066,953,000 | 4,066,953,000 | 4,236,520,000 | |||||||
$100.0 million credit facility (JGW-S III) | ||||||||||
VIE and other finance receivables, at fair market value | ||||||||||
Total VIE finance receivables at fair value | 23,119,000 | 23,119,000 | 1,664,000 | |||||||
$100.0 million credit facility (JGW-S III) | JGW-S III | ||||||||||
VIE and other finance receivables, at fair market value | ||||||||||
Maximum borrowing capacity | 100,000,000 | 100,000,000 | 100,000,000 | |||||||
$300.0 million credit facility (JGW V) | ||||||||||
VIE and other finance receivables, at fair market value | ||||||||||
Total VIE finance receivables at fair value | 26,407,000 | 26,407,000 | 54,306,000 | |||||||
$300.0 million credit facility (JGW V) | JGW V | ||||||||||
VIE and other finance receivables, at fair market value | ||||||||||
Maximum borrowing capacity | 300,000,000 | 300,000,000 | 300,000,000 | |||||||
$100.0 million permanent financing related to 2011-A | ||||||||||
VIE and other finance receivables, at fair market value | ||||||||||
Total VIE finance receivables at fair value | 97,917,000 | 97,917,000 | 83,968,000 | |||||||
Maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | |||||||
[1] | Pledged as collateral to VIE borrowings under revolving credit facilities and other similar borrowings. Refer to Note 6 "VIE and Other Finance Receivables, at Fair Value" and Note 7 "VIE and Other Finance Receivables, net of Allowance for Losses." |
VIE and Other Finance Receiva61
VIE and Other Finance Receivables, net of Allowance for Losses (Details) - VIE and Other Finance Receivables, net - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivables, gross | $ 107,251 | $ 120,708 | ||||
Less: allowance for losses | (11,075) | $ (10,215) | (10,366) | $ (11,099) | $ (10,968) | $ (10,128) |
Finance receivables, net | 96,176 | 110,342 | 118,238 | |||
Structured settlements and annuities | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivable before unearned income or deferred revenue | 68,669 | 72,121 | ||||
Less: unearned income or deferred revenue | (42,843) | (45,825) | ||||
Finance receivables, gross | 25,826 | 26,296 | ||||
Less: allowance for losses | (95) | (68) | (69) | (44) | (50) | (56) |
Finance receivables, net | 25,731 | 26,328 | ||||
Lottery winnings | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivable before unearned income or deferred revenue | 66,179 | 70,589 | ||||
Less: unearned income or deferred revenue | (17,604) | (20,153) | ||||
Finance receivables, gross | 48,575 | 50,436 | ||||
Less: allowance for losses | 0 | 0 | 0 | (3) | (3) | (3) |
Finance receivables, net | 48,575 | 54,631 | ||||
Pre-settlement funding transactions | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivable before unearned income or deferred revenue | 32,871 | 44,299 | ||||
Less: unearned income or deferred revenue | (677) | (1,144) | ||||
Finance receivables, gross | 32,194 | 43,155 | ||||
Less: allowance for losses | (10,696) | (9,863) | (10,013) | (10,768) | (10,632) | (9,786) |
Finance receivables, net | 21,498 | 36,603 | ||||
Attorney cost financing | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivable before unearned income or deferred revenue | 656 | 821 | ||||
Less: unearned income or deferred revenue | 0 | 0 | ||||
Finance receivables, gross | 656 | 821 | ||||
Less: allowance for losses | (284) | $ (284) | $ (284) | (284) | $ (283) | $ (283) |
Finance receivables, net | $ 372 | $ 676 |
VIE and Other Finance Receiva62
VIE and Other Finance Receivables, net of Allowance for Losses - Encumbrances (Details) - VIE and Other Finance Receivables, net - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Encumbrances on financing receivable | |||
Total VIE finance receivables, net of allowances | $ 70,780,000 | $ 99,874,000 | |
Not encumbered | 25,396,000 | 10,468,000 | |
Finance receivables, net | 96,176,000 | 110,342,000 | $ 118,238,000 |
VIE securitization debt | |||
Encumbrances on financing receivable | |||
Total VIE finance receivables, net of allowances | 67,680,000 | 69,691,000 | |
Credit facility | Peach One | |||
Encumbrances on financing receivable | |||
Total VIE finance receivables, net of allowances | 0 | 25,401,000 | |
Maximum borrowing capacity | 35,000,000 | 35,000,000 | |
$45.1 million long-term pre-settlement facility | |||
Encumbrances on financing receivable | |||
Total VIE finance receivables, net of allowances | 1,919,000 | 3,533,000 | |
Maximum borrowing capacity | 45,100,000 | 45,100,000 | |
$2.5 Long-term facility | |||
Encumbrances on financing receivable | |||
Total VIE finance receivables, net of allowances | 1,181,000 | 1,249,000 | |
Maximum borrowing capacity | $ 2,500,000 | $ 2,500,000 |
VIE and Other Finance Receiva63
VIE and Other Finance Receivables, net of Allowance for Losses - Summary of Activity in Allowances for Losses (Details) - VIE and Other Finance Receivables, net - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Activity in the allowance for losses | |||||
Balance at beginning of year | $ (10,215) | $ (10,968) | $ (10,366) | $ (10,128) | |
Provision for loss | (1,411) | (1,211) | (3,072) | (4,168) | |
Charge-offs | 556 | 1,089 | 2,500 | 3,209 | |
Recoveries | (5) | (9) | (137) | (12) | |
Balance at end of year | (11,075) | (11,099) | (11,075) | (11,099) | |
Individually evaluated for impairment | (2,912) | (2,543) | (2,912) | (2,543) | |
Collectively evaluated for impairment | (8,163) | (8,556) | (8,163) | (8,556) | |
Individually evaluated for impairment | 74,710 | 81,819 | 74,710 | 81,819 | |
Collectively evaluated for impairment | 21,466 | 36,419 | 21,466 | 36,419 | |
Finance receivables, net | 96,176 | 118,238 | 96,176 | 118,238 | $ 110,342 |
Structured settlements and annuities | |||||
Activity in the allowance for losses | |||||
Balance at beginning of year | (68) | (50) | (69) | (56) | |
Provision for loss | (23) | (21) | 79 | (129) | |
Charge-offs | 1 | 32 | 32 | 149 | |
Recoveries | (5) | (5) | (137) | (8) | |
Balance at end of year | (95) | (44) | (95) | (44) | |
Individually evaluated for impairment | (95) | (44) | (95) | (44) | |
Collectively evaluated for impairment | 0 | 0 | 0 | 0 | |
Individually evaluated for impairment | 25,731 | 26,328 | 25,731 | 26,328 | |
Collectively evaluated for impairment | 0 | 0 | 0 | 0 | |
Finance receivables, net | 25,731 | 26,328 | 25,731 | 26,328 | |
Lottery winnings | |||||
Activity in the allowance for losses | |||||
Balance at beginning of year | 0 | (3) | 0 | (3) | |
Provision for loss | (11) | 0 | (7) | (69) | |
Charge-offs | 11 | 0 | 7 | 69 | |
Recoveries | 0 | 0 | 0 | 0 | |
Balance at end of year | 0 | (3) | 0 | (3) | |
Individually evaluated for impairment | 0 | (3) | 0 | (3) | |
Collectively evaluated for impairment | 0 | 0 | 0 | 0 | |
Individually evaluated for impairment | 48,575 | 54,631 | 48,575 | 54,631 | |
Collectively evaluated for impairment | 0 | 0 | 0 | 0 | |
Finance receivables, net | 48,575 | 54,631 | 48,575 | 54,631 | |
Pre-settlement funding transactions | |||||
Activity in the allowance for losses | |||||
Balance at beginning of year | (9,863) | (10,632) | (10,013) | (9,786) | |
Provision for loss | (1,377) | (1,190) | (3,144) | (3,970) | |
Charge-offs | 544 | 1,057 | 2,461 | 2,991 | |
Recoveries | 0 | (3) | 0 | (3) | |
Balance at end of year | (10,696) | (10,768) | (10,696) | (10,768) | |
Individually evaluated for impairment | (2,533) | (2,212) | (2,533) | (2,212) | |
Collectively evaluated for impairment | (8,163) | (8,556) | (8,163) | (8,556) | |
Individually evaluated for impairment | 32 | 184 | 32 | 184 | |
Collectively evaluated for impairment | 21,466 | 36,419 | 21,466 | 36,419 | |
Finance receivables, net | 21,498 | 36,603 | 21,498 | 36,603 | |
Attorney cost financing | |||||
Activity in the allowance for losses | |||||
Balance at beginning of year | (284) | (283) | (284) | (283) | |
Provision for loss | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | (1) | 0 | (1) | |
Balance at end of year | (284) | (284) | (284) | (284) | |
Individually evaluated for impairment | (284) | (284) | (284) | (284) | |
Collectively evaluated for impairment | 0 | 0 | 0 | 0 | |
Individually evaluated for impairment | 372 | 676 | 372 | 676 | |
Collectively evaluated for impairment | 0 | 0 | 0 | 0 | |
Finance receivables, net | $ 372 | $ 676 | $ 372 | $ 676 |
VIE and Other Finance Receiva64
VIE and Other Finance Receivables, net of Allowance for Losses - Finance Receivables by Year of Origination (Details) - VIE and Other Finance Receivables, net - Pre-settlement funding transactions - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | $ 32,871 | $ 44,299 |
2,009 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 945 | 1,229 |
2,010 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 2,254 | 2,759 |
2,011 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 4,018 | 5,597 |
2,012 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 4,413 | 6,212 |
2,013 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 5,464 | 6,772 |
2,014 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 13,083 | 17,773 |
2,015 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 2,694 | 3,957 |
2,016 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | $ 0 | $ 0 |
VIE and Other Finance Receiva65
VIE and Other Finance Receivables, net of Allowance for Losses - Summary of Portfolio Delinquency Status (Details) - VIE and Other Finance Receivables, net - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 430 | $ 710 |
Current | 73,971 | 76,022 |
VIE and Other Finance Receivables, net | 74,401 | 76,732 |
VIE and Other Finance Receivables, net 90 days accruing | 0 | 0 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5 | 12 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3 | 11 |
Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 422 | 687 |
Structured settlements and annuities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 89 | 498 |
Current | 25,737 | 25,798 |
VIE and Other Finance Receivables, net | 25,826 | 26,296 |
VIE and Other Finance Receivables, net 90 days accruing | 0 | 0 |
Structured settlements and annuities | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5 | 9 |
Structured settlements and annuities | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2 | 8 |
Structured settlements and annuities | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 82 | 481 |
Lottery winnings | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 341 | 212 |
Current | 48,234 | 50,224 |
VIE and Other Finance Receivables, net | 48,575 | 50,436 |
VIE and Other Finance Receivables, net 90 days accruing | 0 | 0 |
Lottery winnings | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 3 |
Lottery winnings | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | 3 |
Lottery winnings | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 340 | $ 206 |
VIE and Other Finance Receiva66
VIE and Other Finance Receivables, net of Allowance for Losses - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Unsecuritized finance receivables | $ 28,500 | $ 40,700 | ||||
VIE and Other Finance Receivables, net | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Not encumbered and not securitized | 8,900 | |||||
Not encumbered | 25,396 | 10,468 | ||||
Receivable allowance | 11,075 | $ 10,215 | 10,366 | $ 11,099 | $ 10,968 | $ 10,128 |
VIE and Other Finance Receivables, net | Pre-settlement funding transactions | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Recorded investment | 13,100 | 12,200 | ||||
Receivable allowance | 10,696 | 9,863 | 10,013 | 10,768 | 10,632 | 9,786 |
VIE and Other Finance Receivables, net | Attorney cost financing | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Recorded investment | 400 | 400 | ||||
Receivable allowance | $ 284 | $ 284 | 284 | $ 284 | $ 283 | $ 283 |
VIE and Other Finance Receivables, net | Pre-settlement funding transactions and attorney cost financing | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Minimum receivable term | 1 year | |||||
VIE | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Unsecuritized finance receivables | $ 19,600 | $ 30,200 |
Mortgage Loans Held for Sale,67
Mortgage Loans Held for Sale, at Fair Value (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Receivables [Abstract] | ||||||||||
Unpaid principal balance of mortgage loans held for sale | $ 296,322 | $ 120,253 | ||||||||
Fair value adjustment | $ 12,168 | $ 4,255 | ||||||||
Mortgage loans held for sale, at fair value | 124,508 | [1] | $ 0 | 0 | $ 308,490 | [1] | 124,508 | [1] | $ 0 | |
Increase (Decrease) in Mortgage Loans Held-for-sale [Roll Forward] | ||||||||||
Balance at beginning of period | 124,508 | [1] | 0 | 0 | ||||||
Acquired through Home Lending acquisition | 0 | 131,325 | ||||||||
Originations and purchases of mortgage loans held for sale, net of fees | 2,462,754 | 352,641 | ||||||||
Proceeds from sale of and principal payments on mortgage loans held for sale | (2,343,415) | (362,723) | ||||||||
Net change in fair value of mortgage loans held for sale | 64,643 | 8,946 | ||||||||
Balance at end of period | $ 308,490 | [1] | 130,189 | $ 124,508 | [1] | |||||
Real Estate Loan | Government National Mortgage Association (GNMA) Insured Loans | ||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||||||
Duration for delinquency consideration for Ginne Mae pools | 90 days | |||||||||
Principal amount outstanding of Ginnie Mae loans | $ 40,000 | $ 45,800 | ||||||||
Mortgage loans considered delinquent or defaulted | $ 13,800 | $ 3,200 | ||||||||
[1] | Pledged as collateral to Other borrowings under revolving credit facilities and other similar borrowings. Refer to Note 8 "Mortgage Loans Held for Sale, at Fair Value" and Note 9 "Mortgage Servicing Rights, at Fair Value." |
Mortgage Loans Held for Sale,68
Mortgage Loans Held for Sale, at Fair Value - Loan Indemnification Activity (Details) - Indemnification Agreement - Other Liabilities - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Indemnification Asset [Roll Forward] | ||
Balance at beginning of period | $ 2,575 | $ 0 |
Acquired through Home Lending acquisition | 0 | 3,031 |
Provision for loan servicing and repurchases | 1,529 | 409 |
Write-offs, net | (1,506) | (520) |
Balance at end of period | $ 2,598 | $ 2,920 |
Mortgage Servicing Rights, at69
Mortgage Servicing Rights, at Fair Value (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Balance at beginning of period | [1] | $ 29,287,000 | ||
Balance at end of period | [1] | 32,607,000 | $ 29,287,000 | |
Unpaid principal balance of mortgage loans serviced | $ 3,700,000,000 | $ 3,000,000,000 | ||
Minimum | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Discount rates (in percent) | 9.50% | 9.54% | ||
Annual prepayment speeds (in percent) | 6.80% | 8.24% | ||
Cost of servicing | $ 65 | $ 65 | ||
Maximum | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Discount rates (in percent) | 14.07% | 14.06% | ||
Annual prepayment speeds (in percent) | 31.22% | 20.56% | ||
Cost of servicing | $ 90 | $ 90 | ||
Weighted Average | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Discount rates (in percent) | 10.15% | 10.27% | ||
Annual prepayment speeds (in percent) | 10.81% | 9.06% | ||
Cost of servicing | $ 73 | $ 75 | ||
Mortgage servicing rights, at fair value | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Balance at beginning of period | 29,287,000 | $ 0 | 0 | |
Acquired through Home Lending acquisition | 0 | 27,638,000 | ||
Additions due to loans sold, servicing retained | 11,404,000 | 1,298,000 | ||
Reductions due to loan payoffs and foreclosures | (5,007,000) | (631,000) | ||
Fair value adjustment | (3,077,000) | (119,000) | ||
Balance at end of period | $ 32,607,000 | $ 28,186,000 | $ 29,287,000 | |
[1] | Pledged as collateral to Other borrowings under revolving credit facilities and other similar borrowings. Refer to Note 8 "Mortgage Loans Held for Sale, at Fair Value" and Note 9 "Mortgage Servicing Rights, at Fair Value." |
Mortgage Servicing Rights, at70
Mortgage Servicing Rights, at Fair Value - Sensitivity Analysis (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Transfers and Servicing [Abstract] | ||
Discount Rate: Effect on value - 100 basis points adverse change | $ (1,137) | $ (1,082) |
Discount Rate: Effect on value - 100 basis points adverse change, percent | 1.00% | |
Discount Rate: Effect on value - 200 basis points adverse change | $ (2,199) | (2,088) |
Prepayment Speeds: Effect on value - 5% adverse change | $ (654) | (542) |
Prepayment Speeds: Effect on value - 5% adverse change, percent | 5.00% | |
Prepayment Speeds: Effect on value - 10% adverse change | $ (1,285) | (1,085) |
Cost of Servicing: Effect on value - 5% adverse change | $ (258) | (232) |
Cost of Servicing: Effect on value - 5% adverse change, percent | 5.00% | |
Cost of Servicing: Effect on value - 10% adverse change | $ (516) | $ (463) |
Cost of Servicing: Effect on value - 10% adverse change, percent | 10.00% |
Term Loan Payable (Details)
Term Loan Payable (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Term loan payable | |||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 298,199,000 | $ 298,199,000 | $ 122,243,000 | ||
Stockholders' equity free from limitations | $ (40,210,000) | $ (40,210,000) | 56,159,000 | ||
Retained Earnings, Unappropriated | |||||
Term loan payable | |||||
Stockholders' equity free from limitations | $ 56,200,000 | ||||
Maximum | |||||
Term loan payable | |||||
Leverage Ratio | 5 | 5 | 5 | ||
New term loan | |||||
Term loan payable | |||||
Loan amount | $ 449,500,000 | $ 449,500,000 | $ 449,500,000 | ||
Interest rate (as a percent) | 7.00% | 7.00% | |||
Interest expense | $ 10,200,000 | $ 10,200,000 | $ 30,400,000 | $ 30,200,000 | |
New term loan | LIBOR | |||||
Term loan payable | |||||
Interest rate floor (as a percent) | 1.00% | 1.00% | |||
Margin on variable rate (as a percent) | 6.00% | ||||
New term loan | Base rate | |||||
Term loan payable | |||||
Interest rate floor (as a percent) | 2.00% | 2.00% | |||
Margin on variable rate (as a percent) | 5.00% | ||||
Revolving Credit Facility | |||||
Term loan payable | |||||
Revolving commitment | $ 20,000,000 | $ 20,000,000 | 20,000,000 | ||
Unused fee (as a percent) | 0.50% | ||||
Percent of borrowing capacity, threshold (as a percent) | 15.00% | ||||
Line of credit, borrowing capacity leverage ratio, amount | 3,000,000 | $ 3,000,000 | |||
Other borrowings under revolving credit facilities and other similar borrowings | $ 0 | $ 0 | $ 0 | ||
Revolving Credit Facility | LIBOR | |||||
Term loan payable | |||||
Interest rate floor (as a percent) | 1.00% | 1.00% | |||
Margin on variable rate (as a percent) | 6.00% | ||||
Revolving Credit Facility | Base rate | |||||
Term loan payable | |||||
Interest rate floor (as a percent) | 2.00% | 2.00% | |||
Margin on variable rate (as a percent) | 5.00% | ||||
Letters of credit | |||||
Term loan payable | |||||
Revolving commitment | $ 10,000,000 | $ 10,000,000 |
VIE Borrowings Under Revolvin72
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 4 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Aug. 31, 2016 | May 31, 2016 | Jan. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Apr. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | |||||||||
Total VIE borrowings under revolving credit facilities and other similar borrowings | $ 32,502,000 | $ 32,502,000 | $ 48,828,000 | ||||||
Credit facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, termination fee | $ 100,000 | ||||||||
JGW-S III | Variable funding note facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Total VIE borrowings under revolving credit facilities and other similar borrowings | 15,053,000 | 15,053,000 | 1,024,000 | ||||||
JGW V | Multi-tranche and lender credit facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Total VIE borrowings under revolving credit facilities and other similar borrowings | 17,449,000 | 17,449,000 | 38,153,000 | ||||||
Peach One | Credit facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Total VIE borrowings under revolving credit facilities and other similar borrowings | 0 | 0 | $ 9,651,000 | ||||||
VIE | Revolving credit facilities and other similar borrowings | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest expense related to borrowings | $ 1,400,000 | $ 2,300,000 | $ 6,600,000 | $ 6,700,000 | |||||
Weighted average interest rate on outstanding borrowings (as a percent) | 5.25% | 5.25% | 4.15% | ||||||
VIE | JGW-S III | Variable funding note facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | |||||
Interest payable monthly (as a percent) | 6.50% | 6.50% | 6.50% | ||||||
Monthly unused fee (as a percent) | 0.75% | 0.75% | |||||||
Revolving period | 18 months | 2 years | |||||||
VIE | JGW V | Multi-tranche and lender credit facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum borrowing capacity | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | |||||
Monthly unused fee (as a percent) | 0.625% | 0.625% | |||||||
Debt issuance costs incurred | $ 1,500,000 | ||||||||
VIE | JGW V | Multi-tranche and lender credit facility | Base rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Increase in base rate (as a percent) | 0.30% | ||||||||
VIE | JGW V | Multi-tranche and lender credit facility | Tranche A | LIBOR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Margin added to variable interest rate basis (as a percent) | 3.30% | 3.30% | |||||||
Interest rate (as a percent) | 3.83% | 3.83% | 3.24% | ||||||
VIE | JGW V | Multi-tranche and lender credit facility | Tranche A | Commercial Paper rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest rate (as a percent) | 4.37% | 4.37% | 3.52% | ||||||
VIE | JGW V | Multi-tranche and lender credit facility | Tranche B | LIBOR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Margin added to variable interest rate basis (as a percent) | 5.80% | 5.80% | |||||||
Interest rate (as a percent) | 6.33% | 6.33% | 5.74% | ||||||
VIE | Peach One | Credit facility | Prime Rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Margin added to variable interest rate basis (as a percent) | 1.00% | 1.00% | |||||||
Interest rate (as a percent) | 4.50% | 4.50% | 4.50% | ||||||
Interest rate floor (as a percent) | 4.50% | 4.50% | 4.50% | ||||||
VIE | JGW IV LLC | Credit facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Total VIE borrowings under revolving credit facilities and other similar borrowings | $ 0 | ||||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||||
Monthly unused fee (as a percent) | 0.50% | ||||||||
Margin added to variable interest rate basis (as a percent) | 3.49% | ||||||||
Debt instrument, termination fee | $ 0 | ||||||||
Unamortized debt issuance costs | $ 0 | $ 500,000 | |||||||
VIE | JGW VII LLC | Credit facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||||
Unamortized debt issuance costs | $ 0 | $ 1,100,000 |
Other Borrowings Under Revolv73
Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Oct. 31, 2016 | Oct. 15, 2016 | Aug. 31, 2016 | Jul. 31, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | |||||||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 298,199,000 | $ 298,199,000 | $ 122,243,000 | ||||||
Revolving Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest rate (as a percent) | 2.90% | 2.90% | 2.84% | ||||||
Interest expense | $ 1,700,000 | $ 500,000 | $ 4,000,000 | $ 500,000 | |||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring January 6, 2017 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Other borrowings under revolving credit facilities and other similar borrowings | 32,034,000 | 32,034,000 | $ 32,611,000 | ||||||
Revolving commitment | $ 40,000,000 | $ 40,000,000 | |||||||
Interest rate (as a percent) | 2.68% | 2.68% | 2.68% | ||||||
Interest rate floor (as a percent) | 2.40% | 2.40% | |||||||
Non-usage fee (as a percent) | 0.25% | ||||||||
Line of credit, monthly decrease | $ 5,000,000 | $ 5,000,000 | |||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring January 6, 2017 | Subsequent Event | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Revolving commitment | $ 35,000,000 | ||||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring January 6, 2017 | LIBOR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Margin on variable rate (as a percent) | 2.15% | ||||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring February 10, 2017 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Other borrowings under revolving credit facilities and other similar borrowings | 82,072,000 | $ 82,072,000 | $ 33,530,000 | ||||||
Revolving commitment | $ 95,000,000 | $ 95,000,000 | |||||||
Interest rate (as a percent) | 2.88% | 2.88% | 2.68% | ||||||
Interest rate floor (as a percent) | 2.50% | 2.50% | |||||||
Non-usage fee (as a percent) | 0.25% | ||||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring February 10, 2017 | LIBOR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Margin on variable rate (as a percent) | 2.35% | ||||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring June 16, 2017, at $75.0 million | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 58,919,000 | $ 58,919,000 | $ 9,414,000 | ||||||
Revolving commitment | $ 75,000,000 | $ 75,000,000 | |||||||
Interest rate (as a percent) | 2.78% | 2.78% | 2.68% | ||||||
Interest rate floor (as a percent) | 2.50% | 2.50% | |||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring June 16, 2017, at $75.0 million | LIBOR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Margin on variable rate (as a percent) | 2.25% | ||||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring September 14, 2017 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 41,243,000 | $ 41,243,000 | $ 16,031,000 | ||||||
Revolving commitment | $ 50,000,000 | $ 50,000,000 | |||||||
Interest rate (as a percent) | 3.13% | 3.13% | 3.50% | ||||||
Interest rate floor (as a percent) | 3.10% | 3.10% | |||||||
Non-usage fee (as a percent) | 0.25% | ||||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring September 14, 2017 | Subsequent Event | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Revolving commitment | $ 70,000,000 | ||||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring September 14, 2017 | LIBOR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Margin on variable rate (as a percent) | 2.60% | ||||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring September 28, 2017 at $100.0 million | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 79,931,000 | $ 79,931,000 | $ 26,657,000 | ||||||
Revolving commitment | $ 100,000,000 | $ 100,000,000 | |||||||
Interest rate (as a percent) | 2.78% | 2.78% | 2.68% | ||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring September 28, 2017 at $100.0 million | LIBOR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Margin on variable rate (as a percent) | 2.25% | ||||||||
Operating Line Of Credit | Credit facility | Line Of Credit Agreement Expiring July 16, 2017 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 | ||||||
Revolving commitment | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | $ 6,000,000 | |||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | ||||||
Interest rate floor (as a percent) | 5.00% | 5.00% | |||||||
Non-usage fee (as a percent) | 0.50% | ||||||||
Operating Line Of Credit | Credit facility | Line Of Credit Agreement Expiring July 16, 2017 | Prime Rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Margin on variable rate (as a percent) | 0.50% |
VIE Long-Term Debt (Details)
VIE Long-Term Debt (Details) | Sep. 02, 2016USD ($)securitization | Dec. 31, 2012USD ($) | Dec. 31, 2010USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)securitizationtransaction | Sep. 30, 2015USD ($)transaction | Dec. 31, 2011USD ($)note | Dec. 31, 2015USD ($) | Nov. 30, 2010USD ($) |
VIE long-term debt | ||||||||||
VIE long-term debt | $ 65,241,000 | $ 65,241,000 | $ 199,363,000 | |||||||
VIE | ||||||||||
VIE long-term debt | ||||||||||
Number of asset securitization transactions completed | transaction | 0 | 2 | ||||||||
VIE | LCSS II | LCSS, LLC | ||||||||||
VIE long-term debt | ||||||||||
Ownership (as a percent) | 100.00% | |||||||||
VIE | LCSS III | LCSS II | ||||||||||
VIE long-term debt | ||||||||||
Ownership (as a percent) | 100.00% | |||||||||
VIE | LCSS, LLC | ||||||||||
VIE long-term debt | ||||||||||
Cash | $ 200,000 | |||||||||
VIE long-term debt | ||||||||||
VIE long-term debt | ||||||||||
Interest expense related to borrowings | 7,300,000 | $ 4,300,000 | $ 15,900,000 | $ 12,400,000 | ||||||
PLMT Permanent Facility | ||||||||||
VIE long-term debt | ||||||||||
VIE long-term debt | 39,134,000 | 39,134,000 | $ 41,265,000 | |||||||
PLMT Permanent Facility | VIE | ||||||||||
VIE long-term debt | ||||||||||
Face amount of debt | $ 75,000,000 | $ 75,000,000 | ||||||||
Interest rate (as a percent) | 1.78% | 1.78% | 1.68% | |||||||
PLMT Permanent Facility | VIE | LIBOR | ||||||||||
VIE long-term debt | ||||||||||
Margin added to variable interest rate basis (as a percent) | 1.25% | |||||||||
Residual Term Facility | ||||||||||
VIE long-term debt | ||||||||||
VIE long-term debt | $ 0 | $ 0 | $ 130,832,000 | |||||||
Residual Term Facility | VIE | ||||||||||
VIE long-term debt | ||||||||||
Face amount of debt | $ 207,500,000 | $ 133,000,000 | $ 133,000,000 | |||||||
Number of asset securitization transactions completed | securitization | 36 | 28 | ||||||||
Interest rate (as a percent) | 7.25% | 7.25% | ||||||||
Repayments of lines of credit | $ 131,400,000 | |||||||||
Debt instrument, termination fee | $ 400,000 | |||||||||
Unamortized debt issuance costs | $ 3,300,000 | |||||||||
Long-Term Pre-settlement Facility | ||||||||||
VIE long-term debt | ||||||||||
VIE long-term debt | $ 5,789,000 | $ 5,789,000 | 6,590,000 | |||||||
Long-Term Pre-settlement Facility | VIE | ||||||||||
VIE long-term debt | ||||||||||
Face amount of debt | $ 45,100,000 | |||||||||
Interest rate (as a percent) | 9.25% | 9.25% | ||||||||
Number of fixed rate notes issued (in number of notes) | note | 3 | |||||||||
2012-A Facility | ||||||||||
VIE long-term debt | ||||||||||
VIE long-term debt | $ 856,000 | $ 856,000 | 944,000 | |||||||
2012-A Facility | VIE | ||||||||||
VIE long-term debt | ||||||||||
Interest rate (as a percent) | 9.25% | |||||||||
Proceeds from issuance of notes | $ 2,500,000 | |||||||||
LCSS Facility (2010-C) | ||||||||||
VIE long-term debt | ||||||||||
VIE long-term debt | 12,303,000 | 12,303,000 | 12,573,000 | |||||||
LCSS Facility (2010-C) | VIE | ||||||||||
VIE long-term debt | ||||||||||
Face amount of debt | $ 12,900,000 | |||||||||
Interest rate (as a percent) | 10.00% | |||||||||
LCSS Facility (2010-D) | ||||||||||
VIE long-term debt | ||||||||||
VIE long-term debt | $ 7,159,000 | $ 7,159,000 | $ 7,159,000 | |||||||
LCSS Facility (2010-D) | VIE | LCSS III | ||||||||||
VIE long-term debt | ||||||||||
Face amount of debt | $ 7,200,000 | |||||||||
Interest rate (as a percent) | 10.00% |
VIE Long-Term Debt Issued by 75
VIE Long-Term Debt Issued by Securitization and Permanent Financing Trusts, at Fair Value (Details) | Sep. 02, 2016USD ($)securitization | Feb. 28, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)securitizationtransaction | Sep. 30, 2015USD ($)transaction | Dec. 31, 2015USD ($) |
Term loan payable | |||||||
Fair Value | $ 4,045,633,000 | $ 4,045,633,000 | $ 3,928,818,000 | ||||
Gain on extinguishment of debt | 0 | $ 593,000 | |||||
Debt issuance | 2,584,000 | $ 2,220,000 | 3,132,000 | 5,092,000 | |||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | |||||||
Term loan payable | |||||||
Interest expense related to borrowings | 33,900,000 | 38,200,000 | $ 110,600,000 | $ 104,600,000 | |||
VIE | |||||||
Term loan payable | |||||||
Number of asset securitization transactions completed | transaction | 0 | 2 | |||||
Outstanding Principal | 3,864,588,000 | $ 3,864,588,000 | 3,888,126,000 | ||||
Fair Value | 4,045,633,000 | 4,045,633,000 | 3,928,818,000 | ||||
VIE | Securitization trusts | |||||||
Term loan payable | |||||||
Outstanding Principal | 3,414,681,000 | 3,414,681,000 | 3,637,231,000 | ||||
Fair Value | 3,600,285,000 | 3,600,285,000 | 3,688,639,000 | ||||
VIE | Permanent financing VIEs | |||||||
Term loan payable | |||||||
Outstanding Principal | 449,907,000 | 449,907,000 | 250,895,000 | ||||
Fair Value | 445,348,000 | $ 445,348,000 | $ 240,179,000 | ||||
VIE | 2015-2 | |||||||
Term loan payable | |||||||
Bond proceeds | $ 158,400,000 | ||||||
Receivables securitized | 2,489,000 | $ 2,489,000 | |||||
Deal discount rate (as a percent) | 4.18% | ||||||
Retained interest (as a percent) | 5.50% | ||||||
VIE | 2015-2 | Aaa | |||||||
Term loan payable | |||||||
Class allocation (as a percent) | 84.75% | ||||||
VIE | 2015-2 | Baa2 | |||||||
Term loan payable | |||||||
Class allocation (as a percent) | 9.75% | ||||||
VIE | 2015-1 | |||||||
Term loan payable | |||||||
Bond proceeds | $ 214,000,000 | ||||||
Receivables securitized | $ 3,422,000 | $ 3,422,000 | |||||
Deal discount rate (as a percent) | 3.64% | ||||||
Retained interest (as a percent) | 5.50% | ||||||
VIE | 2015-1 | Aaa | |||||||
Term loan payable | |||||||
Class allocation (as a percent) | 85.25% | ||||||
VIE | 2015-1 | Baa2 | |||||||
Term loan payable | |||||||
Class allocation (as a percent) | 9.25% | ||||||
VIE | VIE long-term debt issued by securitization and permanent financing trusts, at fair value | |||||||
Term loan payable | |||||||
Number of asset securitization transactions completed | securitization | 36 | ||||||
Face amount of debt | $ 207,500,000 | ||||||
Debt issuance | $ 2,600,000 | ||||||
VIE | Securitization Transaction 2015-1 | |||||||
Term loan payable | |||||||
Repayments of debt | $ 6,900,000 | ||||||
Gain on extinguishment of debt | $ 600,000 | ||||||
VIE | Residual Term Facility | |||||||
Term loan payable | |||||||
Number of asset securitization transactions completed | securitization | 36 | 28 | |||||
Face amount of debt | $ 207,500,000 | $ 133,000,000 | $ 133,000,000 | ||||
Repayments of lines of credit | $ 131,400,000 |
Derivative Financial Instrume76
Derivative Financial Instruments - Interest Rate Swaps (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)swap | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)swap | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Derivative [Line Items] | |||||
Unrealized gain (loss) | $ (3,034,000) | $ 1,168,000 | |||
Notional | $ 621,000,000 | 621,000,000 | $ 248,500,000 | ||
Fair Market Value | (69,764,000) | (69,764,000) | (66,519,000) | ||
Interest Rate Swaps | |||||
Derivative [Line Items] | |||||
Notional | 350,971,000 | 350,971,000 | 433,876,000 | ||
Fair Market Value | $ (69,764,000) | $ (69,764,000) | (66,519,000) | ||
Interest Rate Swaps | Long-term debt issued by securitization and permanent financing trusts | VIE | |||||
Derivative [Line Items] | |||||
Number of derivatives held | swap | 8 | 8 | |||
Interest Rate Swaps | Hedge accounting has not been applied | |||||
Derivative [Line Items] | |||||
Terminated notional value | $ 0 | $ 75,200,000 | 18,700,000 | ||
Total gain (loss) on termination of derivative | (1,500,000) | (300,000) | |||
Unrealized gain (loss) | $ 0 | 0 | 0 | 0 | |
Interest Rate Swaps | Hedge accounting has not been applied | JGW V | |||||
Derivative [Line Items] | |||||
Notional | 0 | 0 | 31,857,000 | ||
Fair Market Value | 0 | 0 | 59,000 | ||
Interest Rate Swaps | Hedge accounting has not been applied | PLMT | |||||
Derivative [Line Items] | |||||
Notional | 45,505,000 | 45,505,000 | 48,587,000 | ||
Fair Market Value | (9,214,000) | (9,214,000) | (8,720,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | VIE | PSS | |||||
Derivative [Line Items] | |||||
Notional | 140,828,000 | 140,828,000 | 162,546,000 | ||
Fair Market Value | (31,732,000) | (31,732,000) | (29,486,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | Long-term debt issued by securitization and permanent financing trusts | |||||
Derivative [Line Items] | |||||
Unrealized gain (loss) | 2,500,000 | (1,700,000) | (300,000) | 1,800,000 | |
Notional | $ 164,600,000 | $ 164,600,000 | |||
Floating rate basis | 1-month LIBOR | ||||
Interest Rate Swaps | Hedge accounting has not been applied | Long-term debt issued by securitization and permanent financing trusts | Minimum | |||||
Derivative [Line Items] | |||||
Fixed interest rate (as a percent) | 4.50% | 4.50% | |||
Term of contract | 5 years 9 months 15 days | ||||
Interest Rate Swaps | Hedge accounting has not been applied | Long-term debt issued by securitization and permanent financing trusts | Maximum | |||||
Derivative [Line Items] | |||||
Fixed interest rate (as a percent) | 5.77% | 5.77% | |||
Term of contract | 19 years 4 months | ||||
Interest Rate Swaps | Hedge accounting has not been applied | Borrowings under PSS and PLMT | |||||
Derivative [Line Items] | |||||
Terminated notional value | $ 0 | 0 | $ 13,800,000 | 0 | |
Total gain (loss) on termination of derivative | (3,100,000) | ||||
Unrealized gain (loss) | $ 2,600,000 | $ (4,700,000) | $ (2,700,000) | $ (700,000) | |
Number of derivatives held | swap | 140 | 140 | |||
Notional | $ 186,300,000 | $ 186,300,000 | |||
Floating rate basis | 1-month LIBOR | ||||
Interest Rate Swaps | Hedge accounting has not been applied | Borrowings under PSS and PLMT | Minimum | |||||
Derivative [Line Items] | |||||
Fixed interest rate (as a percent) | 4.80% | 4.80% | |||
Term of contract | 1 month | ||||
Interest Rate Swaps | Hedge accounting has not been applied | Borrowings under PSS and PLMT | Maximum | |||||
Derivative [Line Items] | |||||
Fixed interest rate (as a percent) | 8.70% | 8.70% | |||
Term of contract | 17 years 9 months 15 days | ||||
Interest Rate Swaps | Hedge accounting has not been applied | 2004-A A-1 | 321 Henderson I | |||||
Derivative [Line Items] | |||||
Notional | $ 21,402,000 | $ 21,402,000 | 25,859,000 | ||
Fair Market Value | (2,231,000) | (2,231,000) | (2,382,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 2005-1 A-1 | 321 Henderson I | |||||
Derivative [Line Items] | |||||
Notional | 41,936,000 | 41,936,000 | 47,963,000 | ||
Fair Market Value | (6,074,000) | (6,074,000) | (6,186,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 2006-1 A-1 | 321 Henderson II | |||||
Derivative [Line Items] | |||||
Notional | 8,476,000 | 8,476,000 | 10,694,000 | ||
Fair Market Value | (948,000) | (948,000) | (1,091,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 2006-2 A-1 | 321 Henderson II | |||||
Derivative [Line Items] | |||||
Notional | 12,796,000 | 12,796,000 | 15,058,000 | ||
Fair Market Value | (2,180,000) | (2,180,000) | (2,239,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 2006-3 A-1 | 321 Henderson II | |||||
Derivative [Line Items] | |||||
Notional | 12,575,000 | 12,575,000 | 15,798,000 | ||
Fair Market Value | (1,888,000) | (1,888,000) | (1,951,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 2006-4 A-1 | 321 Henderson II | |||||
Derivative [Line Items] | |||||
Notional | 12,958,000 | 12,958,000 | 15,166,000 | ||
Fair Market Value | (1,283,000) | (1,283,000) | (1,489,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 2007-1 A-2 | 321 Henderson II | |||||
Derivative [Line Items] | |||||
Notional | 23,938,000 | 23,938,000 | 26,887,000 | ||
Fair Market Value | (5,397,000) | (5,397,000) | (4,949,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 2007-2 A-3 | 321 Henderson II | |||||
Derivative [Line Items] | |||||
Notional | 30,557,000 | 30,557,000 | 33,461,000 | ||
Fair Market Value | $ (8,817,000) | $ (8,817,000) | $ (8,085,000) |
Derivative Financial Instrume77
Derivative Financial Instruments - Home Lending Derivatives (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 621,422 | $ 222,512 |
Derivative asset, fair value | 13,346 | 4,934 |
Derivative liability, notional amount | 621,000 | 248,500 |
Derivative liability, fair value | 1,920 | 147 |
Interest rate lock commitments, at fair value | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | 621,422 | 222,512 |
Derivative asset, fair value | $ 13,346 | 4,934 |
Interest rate lock commitments, at fair value | Minimum | ||
Derivative [Line Items] | ||
Term of contract | 30 days | |
Interest rate lock commitments, at fair value | Maximum | ||
Derivative [Line Items] | ||
Term of contract | 90 days | |
Forward sale commitments | ||
Derivative [Line Items] | ||
Derivative liability, notional amount | $ 621,000 | 248,500 |
Derivative liability, fair value | $ 1,920 | $ 147 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Partial valuation allowance | $ 5.9 | |
Income Taxes | ||
Effective income tax rate (as a percent) | 14.70% | 12.20% |
Effective income tax rate for parent (as a percent) | 26.50% | 25.00% |
The J.G. Wentworth Company, LLC | ||
Income Taxes | ||
Effective income tax rate (as a percent) | 0.60% | (1.70%) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Jul. 31, 2015shares | May 26, 2015USD ($)$ / sharesshares | Nov. 14, 2013vote$ / sharesshares | Sep. 30, 2016$ / sharesshares | Sep. 30, 2015shares | Dec. 31, 2015USD ($)$ / sharesshares | May 02, 2014USD ($) |
The J.G. Wentworth Company, LLC | |||||||
Stockholders' Equity | |||||||
Common stock exchanged (in shares) | 195,445 | 947,098 | |||||
PGHI Corp | |||||||
Stockholders' Equity | |||||||
Warrants exercised during period (in warrants) | 0 | 0 | |||||
PGHI Corp | Tranche C-1 profit interests | |||||||
Stockholders' Equity | |||||||
Exercise price of warrants issued (in dollars per share) | $ / shares | $ 35.78 | ||||||
PGHI Corp | Tranche C-1 profit interests | Maximum | |||||||
Stockholders' Equity | |||||||
Number of shares entitled by warrants (in shares) | 483,217 | ||||||
PGHI Corp | Tranche C-2 profits interests | |||||||
Stockholders' Equity | |||||||
Exercise price of warrants issued (in dollars per share) | $ / shares | $ 63.01 | ||||||
PGHI Corp | Tranche C-2 profits interests | Maximum | |||||||
Stockholders' Equity | |||||||
Number of shares entitled by warrants (in shares) | 483,217 | ||||||
Preferred Stock | |||||||
Stockholders' Equity | |||||||
Preferred stock, authorized shares (in shares) | 100,000,000 | 100,000,000 | |||||
Preferred stock, shares issued (in shares) | 0 | 0 | |||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||||
Common Stock - Class A | |||||||
Stockholders' Equity | |||||||
Common stock, authorized shares (in shares) | 500,000,000 | 500,000,000 | 500,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||
Common stock, shares issued (in shares) | 16,271,889 | 16,076,444 | |||||
Common stock, shares outstanding (in shares) | 15,729,817 | 15,534,372 | |||||
Aggregate value of shares repurchased | $ | $ 15,000,000 | ||||||
Number of votes per share of common stock held (in votes) | vote | 1 | ||||||
Exchange of JGW LLC Common Interests into Class A common stock (in shares) | 195,445 | 947,098 | |||||
Common Stock - Class A | Home Lending | |||||||
Stockholders' Equity | |||||||
Equity instruments issued for consideration (in shares) | 1,572,327 | ||||||
Common Stock - Class A | Stock Repurchase Program 2014 | |||||||
Stockholders' Equity | |||||||
Treasury stock, shares, acquired (in shares) | 1,546,017 | ||||||
Aggregate purchase price of shares repurchased under Stock Repurchase Program | $ | $ 15,000,000 | ||||||
Common Stock - Class A | Private Repurchase | |||||||
Stockholders' Equity | |||||||
Treasury stock, shares, acquired (in shares) | 426,332 | ||||||
Aggregate purchase price of shares repurchased under Stock Repurchase Program | $ | $ 3,900,000 | ||||||
Shares repurchase price (in dollars per share) | $ / shares | $ 9.24 | ||||||
Treasury stock, discount on repurchase, percent of common stock closing price (as a percent) | 3.00% | ||||||
Common Stock - Class B | |||||||
Stockholders' Equity | |||||||
Common stock, authorized shares (in shares) | 500,000,000 | 500,000,000 | 500,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||
Common stock, shares issued (in shares) | 8,710,814 | 8,908,698 | |||||
Common stock, shares outstanding (in shares) | 8,710,814 | 8,908,698 | |||||
Number of votes per share of common stock held (in votes) | vote | 10 | ||||||
Number of shares of Class A common stock whose market value is given as cash on optional exchange of common interests (in shares) | 1 | ||||||
Exchange of JGW LLC Common Interests into Class A common stock (in shares) | (195,445) | ||||||
Common Stock - Class C | |||||||
Stockholders' Equity | |||||||
Common stock, authorized shares (in shares) | 500,000,000 | 500,000,000 | 500,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||
Common stock, shares issued (in shares) | 0 | 0 | |||||
Common stock, shares outstanding (in shares) | 0 | 0 | |||||
Conversion ratio of common stock | 1 | 1 | |||||
Number of shares entitled by warrants (in shares) | 4,360,623 |
Non-Controlling Interests (Deta
Non-Controlling Interests (Details) | 9 Months Ended |
Sep. 30, 2016shares | |
Common Stock - Class C | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Number of shares entitled by warrants | 4,360,623 |
The J.G. Wentworth Company, LLC | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Balance at the beginning of period | 28,803,693 |
Common Interests forfeited | (2,439) |
Balance at the end of period | 28,801,254 |
The J.G. Wentworth Company, LLC | The J.G. Wentworth Company | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Balance at the beginning of period | 15,534,372 |
Balance at the end of period | 15,729,817 |
The J.G. Wentworth Company, LLC | The J.G. Wentworth Company | Common Stock - Class A | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Common Interests acquired by The J.G. Wentworth Company as a result of the issuance of restricted common stock granted to independent directors | 195,445 |
The J.G. Wentworth Company, LLC | Non- controlling Interest | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Balance at the beginning of period | 13,269,321 |
Common Interests forfeited | (2,439) |
Balance at the end of period | 13,071,437 |
The J.G. Wentworth Company, LLC | Non- controlling Interest | Common Stock - Class A | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Common Interests acquired by The J.G. Wentworth Company as a result of the issuance of restricted common stock granted to independent directors | (195,445) |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Nov. 14, 2013 | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Loan Origination Commitments | ||||
Commitments and contingencies | ||||
Commitments to originate loans | $ 621.4 | |||
The J.G. Wentworth Company, LLC | ||||
Commitments and contingencies | ||||
Increase in share of tax basis | $ 53.3 | $ 207 | ||
Common Stock - Class C | ||||
Commitments and contingencies | ||||
Conversion ratio of common stock | 1 | 1 | ||
Borrowing Agreement | Counterparty under agreement to purchase LCSS assets | ||||
Commitments and contingencies | ||||
Amount owed by counterparty | $ 10.6 | $ 10.2 | ||
Annual rate of interest for counterparty borrowing (as a percent) | 5.35% | |||
Arrangement | Counterparty under agreement to purchase LCSS assets | ||||
Commitments and contingencies | ||||
Percentage of target IRR above original target IRR paid by counterparty | 3.50% | |||
Tax Receivable Agreement | ||||
Commitments and contingencies | ||||
Income tax, cash savings percentage to be paid to common interestholders | 85.00% | |||
Tax Receivable Agreement | The J.G. Wentworth Company, LLC | ||||
Commitments and contingencies | ||||
Common interestholders, ownership percentage | 1.00% |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) | Aug. 29, 2016$ / sharesshares | Jul. 29, 2016participant | Apr. 30, 2016participantshares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015USD ($)shares | Dec. 31, 2014shares | Aug. 26, 2016participantshares | Dec. 31, 2015shares |
Share-based compensation | ||||||||
Vested (in shares) | 135,050 | 215,800 | ||||||
Aggregate grant date fair value | $ | $ 700,000 | $ 1,000,000 | ||||||
Total unrecognized compensation expense | $ | $ 3,500,000 | |||||||
Weighted average period for recognizing unrecognized compensation expense (in years) | 2 years 11 months | |||||||
Stock options | ||||||||
Share-based compensation | ||||||||
Share based compensation | $ | $ 800,000 | 1,000,000 | ||||||
Vested (in shares) | 263,074 | |||||||
Stock options | Minimum | ||||||||
Share-based compensation | ||||||||
Fair value of grant (in dollars per share) | $ / shares | $ 0.17 | |||||||
Risk-free interest rate (as a percent) | 1.35% | |||||||
Expected volatility (as a percent) | 40.84% | |||||||
Stock options | Maximum | ||||||||
Share-based compensation | ||||||||
Fair value of grant (in dollars per share) | $ / shares | $ 0.62 | |||||||
Risk-free interest rate (as a percent) | 1.86% | |||||||
Expected volatility (as a percent) | 44.50% | |||||||
Stock options | Stock Modification Program | ||||||||
Share-based compensation | ||||||||
Award vesting period (in years) | 3 years | |||||||
Share based compensation | $ | $ 100,000 | |||||||
Stock modification program, options outstanding (in shares) | 1,266,125 | |||||||
Stock modification program, number of participants in program | participant | 33 | 45 | ||||||
Stock modification program, consent period | 20 days | |||||||
Stock modification program, number of employees electing modification | participant | 32 | |||||||
Stock modification program, shares to be modified (in shares) | 1,195,927 | |||||||
Stock options | Stock Modification Program | Minimum | ||||||||
Share-based compensation | ||||||||
Fair value of grant (in dollars per share) | $ / shares | $ 0.13 | |||||||
Risk-free interest rate (as a percent) | 1.19% | |||||||
Expected volatility (as a percent) | 43.81% | |||||||
Stock options | Stock Modification Program | Maximum | ||||||||
Share-based compensation | ||||||||
Fair value of grant (in dollars per share) | $ / shares | $ 0.15 | |||||||
Risk-free interest rate (as a percent) | 1.37% | |||||||
Expected volatility (as a percent) | 44.52% | |||||||
Performance-based restricted stock units | ||||||||
Share-based compensation | ||||||||
Share based compensation | $ | $ 0 | $ (100,000) | ||||||
Granted (in shares) | 127,250 | 87,750 | ||||||
Performance shares outstanding (in shares) | 212,000 | 87,750 | 191,250 | |||||
Aggregate grant date fair value of awards granted | $ | $ 100,000 | |||||||
Share-based compensation expense expected to recognize | $ | $ 1,300,000 | |||||||
Awards vested (in shares) | 0 | |||||||
Performance-based restricted stock units | Minimum | ||||||||
Share-based compensation | ||||||||
Number of shares in to which award will vest | 0 | |||||||
Performance-based restricted stock units | Maximum | ||||||||
Share-based compensation | ||||||||
Number of shares in to which award will vest | 1.5 | |||||||
Restricted Stock | ||||||||
Share-based compensation | ||||||||
Award vesting period (in years) | 1 year | |||||||
Weighted average period for recognizing unrecognized compensation expense (in years) | 2 months | |||||||
Granted (in shares) | 0 | |||||||
Performance shares outstanding (in shares) | 66,038 | 66,038 | ||||||
Share-based compensation expense expected to recognize | $ | $ 100,000 | |||||||
Awards vested (in shares) | 0 | |||||||
Grants during the period, grant date fair value | $ | $ 0 | $ 200,000 | ||||||
Restricted Stock | Maximum | ||||||||
Share-based compensation | ||||||||
Share based compensation | $ | 100,000 | 100,000 | ||||||
Restricted Common Interests | ||||||||
Share-based compensation | ||||||||
Share based compensation | $ | $ 100,000 | $ 400,000 | ||||||
Weighted average period for recognizing unrecognized compensation expense (in years) | 1 year | |||||||
Performance shares outstanding (in shares) | 9,871 | 27,777 | ||||||
Share-based compensation expense expected to recognize | $ | $ 100,000 | |||||||
Awards vested (in shares) | 15,467 | |||||||
Common Stock - Class A | ||||||||
Share-based compensation | ||||||||
Number of awards available for grant (in shares) | 1,300,000 | |||||||
Common Stock - Class A | Stock options | ||||||||
Share-based compensation | ||||||||
Award expiration period (in years) | 10 years | |||||||
Award vesting period (in years) | 5 years | |||||||
Common Stock - Class A | Stock options | Stock Modification Program | ||||||||
Share-based compensation | ||||||||
Stock modification program, options outstanding (in shares) | 507,964 | |||||||
Stock modification program, options, additional options granted for a key executive officer | 180,000 | |||||||
Common Stock - Class A | Stock options | Stock Modification Program | Non-officer | ||||||||
Share-based compensation | ||||||||
Stock modification program, number of options for all persons other than a key executive officer | 147,963 | |||||||
Share price (in dollars per share) | $ / shares | $ 0.32 | |||||||
Common Stock - Class A | Stock options | Stock Modification Program | Executive Officer | ||||||||
Share-based compensation | ||||||||
Share price (in dollars per share) | $ / shares | $ 0.32 | |||||||
Stock modification program, number of executive officer options canceled | 180,000 | |||||||
Stock modification program, options, additional options granted for a key executive officer | 180,000 |
Share-based Compensation - Valu
Share-based Compensation - Valuation Assumptions (Details) - Stock options | 9 Months Ended |
Sep. 30, 2016$ / shares | |
Share-based compensation | |
Expected life of options (in years) | 6 years 6 months |
Expected dividend yield (as a percent) | 0.00% |
Minimum | |
Share-based compensation | |
Fair value of grant (in dollars per share) | $ 0.17 |
Risk-free interest rate (as a percent) | 1.35% |
Expected volatility (as a percent) | 40.84% |
Maximum | |
Share-based compensation | |
Fair value of grant (in dollars per share) | $ 0.62 |
Risk-free interest rate (as a percent) | 1.86% |
Expected volatility (as a percent) | 44.50% |
Stock Modification Program | |
Share-based compensation | |
Expected dividend yield (as a percent) | 0.00% |
Stock Modification Program | Minimum | |
Share-based compensation | |
Fair value of grant (in dollars per share) | $ 0.13 |
Risk-free interest rate (as a percent) | 1.19% |
Expected volatility (as a percent) | 43.81% |
Expected life of options (in years) | 5 years 1 month 6 days |
Stock Modification Program | Maximum | |
Share-based compensation | |
Fair value of grant (in dollars per share) | $ 0.15 |
Risk-free interest rate (as a percent) | 1.37% |
Expected volatility (as a percent) | 44.52% |
Expected life of options (in years) | 6 years 6 months |
Share-based Compensation - Summ
Share-based Compensation - Summary of Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Vested (in shares) | 135,050 | 215,800 | ||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding at the beginning of the period (in shares) | 1,363,378 | |||
Granted (in shares) | 434,500 | |||
Exercised (in shares) | 0 | |||
Forfeited (in shares) | (182,140) | |||
Canceled (in shares) | (180,000) | |||
Expired (in shares) | (47,997) | |||
Outstanding at the end of the period (in shares) | 1,387,741 | 1,363,378 | ||
Outstanding, vested and expected to vest (in shares) | 1,331,871 | |||
Vested (in shares) | 263,074 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 11 | |||
Granted (in dollars per share) | 0.80 | |||
Exercised (in dollars per share) | 0 | |||
Forfeited (in dollars per share) | 6.44 | |||
Canceled (in dollars per share) | 11.06 | |||
Expired (in dollars per share) | 12.49 | |||
Outstanding at the end of the period (in dollars per share) | 5.78 | $ 11 | ||
Outstanding, vested and expected to vest (in dollars per share) | 5.88 | |||
Vested (in dollars per share) | $ 11.17 | |||
Weighted average remaining contractual term outstanding (in years) | 7 years 11 months 24 days | 8 years 5 months 12 days | ||
Weighted average remaining contractual term outstanding, vested and expected to vest (in years) | 7 years 11 months 20 days | |||
Weighted average remaining contractual term, granted (in years) | 7 years 8 months 26 days | |||
Aggregate intrinsic value | $ 0 | $ 0 | ||
Aggregate intrinsic value, outstanding, vested and expected to vest | 0 | |||
Aggregate intrinsic value, vested | $ 0 | |||
Performance-based restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Outstanding as of December 31, 2015 (in shares) | 191,250 | |||
Granted (in shares) | 127,250 | 87,750 | ||
Vested (in shares) | 0 | |||
Forfeited (in shares) | (106,500) | |||
Outstanding as of September 30, 2016 (in shares) | 212,000 | 87,750 | 191,250 | |
Outstanding and expected to vest as of June 30, 2016 (in shares) | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Outstanding as of December 31, 2015 (in dollars per share) | $ 9.48 | |||
Granted (in dollars per share) | 1.14 | |||
Vested (in dollars per share) | 0 | |||
Forfeited (in dollars per share) | 6.26 | |||
Outstanding as of September 30, 2016 (in dollars per share) | 6.09 | $ 9.48 | ||
Outstanding and expected to vest as of June 30, 2016 (in dollars per share) | $ 0 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Outstanding as of December 31, 2015 (in shares) | 66,038 | |||
Granted (in shares) | 0 | |||
Vested (in shares) | 0 | |||
Outstanding as of September 30, 2016 (in shares) | 66,038 | 66,038 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Outstanding as of December 31, 2015 (in dollars per share) | $ 2.12 | |||
Granted (in dollars per share) | 0 | |||
Vested (in dollars per share) | 0 | |||
Outstanding as of September 30, 2016 (in dollars per share) | $ 2.12 | $ 2.12 | ||
Restricted Common Interests | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Outstanding as of December 31, 2015 (in shares) | 27,777 | |||
Vested (in shares) | (15,467) | |||
Forfeited (in shares) | (2,439) | |||
Outstanding as of September 30, 2016 (in shares) | 9,871 | 27,777 | ||
Outstanding and expected to vest as of June 30, 2016 (in shares) | 9,854 | |||
Shares vested (in shares) | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Outstanding as of December 31, 2015 (in dollars per share) | $ 6.30 | |||
Granted (in dollars per share) | 5.25 | |||
Forfeited (in dollars per share) | 1.71 | |||
Outstanding as of September 30, 2016 (in dollars per share) | 9.06 | $ 6.30 | ||
Outstanding and expected to vest as of June 30, 2016 (in dollars per share) | 9.06 | |||
Shares vested (in dollars per share) | $ 0 |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator: | ||||
Numerator for basic EPS - Net loss attributable to holders of The J.G. Wentworth Company Class A common stock | $ (18,713) | $ (26,697) | $ (45,593) | $ (40,338) |
Effect of dilutive securities: | ||||
Dilutive potential common shares (in shares) | 0 | 0 | 0 | 0 |
Stock options | ||||
Effect of dilutive securities: | ||||
Dilutive securities, effect on diluted earnings per share (in shares) | 0 | 0 | 0 | 0 |
Warrants | ||||
Effect of dilutive securities: | ||||
Dilutive securities, effect on diluted earnings per share (in shares) | 0 | 0 | 0 | 0 |
Restricted common stock and performance-based restricted stock units | ||||
Effect of dilutive securities: | ||||
Dilutive securities, effect on diluted earnings per share (in shares) | 0 | 0 | 0 | 0 |
JGW LLC Common Interests and vested Restricted Common Interests | ||||
Numerator: | ||||
Dilutive securities, effect on basic earnings per share | $ 0 | $ 0 | $ 0 | $ 0 |
Effect of dilutive securities: | ||||
Dilutive securities, effect on diluted earnings per share (in shares) | 0 | 0 | 0 | 0 |
JGW LLC unvested Restricted Common Interests | ||||
Numerator: | ||||
Dilutive securities, effect on basic earnings per share | $ 0 | $ 0 | $ 0 | $ 0 |
Effect of dilutive securities: | ||||
Dilutive securities, effect on diluted earnings per share (in shares) | 0 | 0 | 0 | 0 |
Common Stock - Class A | ||||
Numerator: | ||||
Numerator for basic EPS - Net loss attributable to holders of The J.G. Wentworth Company Class A common stock | $ (18,713) | $ (26,697) | $ (45,593) | $ (40,338) |
Numerator for diluted EPS - Net loss attributable to holders of The J.G. Wentworth Company Class A common stock | $ (18,713) | $ (26,697) | $ (45,593) | $ (40,338) |
Denominator: | ||||
Denominator for basic EPS - Weighted average shares of Class A common stock (in shares) | 15,663,475 | 14,918,415 | 15,633,696 | 14,437,117 |
Effect of dilutive securities: | ||||
Denominator for diluted EPS - Adjusted weighted average shares of Class A common stock (in shares) | 15,663,475 | 14,918,415 | 15,633,696 | 14,437,117 |
Basic income per share computation: | ||||
Basic loss per share of Class A common stock (in dollars per share) | $ (1.19) | $ (1.79) | $ (2.92) | $ (2.79) |
Diluted income per share computation: | ||||
Diluted loss per share of Class A common stock (in dollars per share) | $ (1.19) | $ (1.79) | $ (2.92) | $ (2.79) |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) | 9 Months Ended | ||
Sep. 30, 2016shares | Sep. 30, 2015shares | Nov. 14, 2013shares | |
The J.G. Wentworth Company, LLC | Common Stock - Class A | |||
Earnings per share | |||
Conversion ratio of common stock | 1 | ||
Class C Profits Interests | PGHI Corp | Common Stock - Class A | |||
Earnings per share | |||
Number of shares entitled by warrants (in shares) | 966,434 | ||
Stock options | Common Stock - Class A | |||
Earnings per share | |||
Antidilutive shares excluded from computation of diluted earnings per share (in shares) | 1,409,328 | 1,461,407 | |
Performance-based restricted stock units | Common Stock - Class A | |||
Earnings per share | |||
Antidilutive shares excluded from computation of diluted earnings per share (in shares) | 230,919 | 183,069 | |
Common interest and vested restricted common interests | |||
Earnings per share | |||
Antidilutive shares excluded from computation of diluted earnings per share (in shares) | 13,080,674 | 13,745,165 | |
Unvested restricted common interests | |||
Earnings per share | |||
Antidilutive shares excluded from computation of diluted earnings per share (in shares) | 22,474 | 124,341 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)segment | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |||||
Number of reportable segments | segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Adjusted EBITDA | $ 14,058 | $ 18,576 | $ 33,077 | $ 49,375 | |
Total revenues | 68,797 | 63,858 | 218,097 | 212,053 | |
Total assets | 5,104,759 | 5,379,166 | 5,104,759 | 5,379,166 | $ 5,074,964 |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted EBITDA | 33,077 | 49,375 | |||
Operating Segments | Structured Settlements | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted EBITDA | 4,635 | 16,582 | 9,404 | 47,381 | |
Total revenues | 37,302 | 51,775 | 137,961 | 199,970 | |
Total assets | 4,655,253 | 5,128,902 | 4,655,253 | 5,128,902 | |
Operating Segments | Home Lending | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted EBITDA | 9,423 | 1,994 | 23,673 | 1,994 | |
Total revenues | 31,495 | 12,083 | 80,136 | 12,083 | |
Total assets | 449,506 | 250,264 | 449,506 | 250,264 | |
Other Adjustments/Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Adjusted EBITDA | 0 | 0 | 0 | 0 | |
Total revenues | 0 | 0 | 0 | 0 | |
Total assets | $ 0 | $ 0 | $ 0 | $ 0 |
Business Segments - Reconciliat
Business Segments - Reconciliation of EBITDA to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | $ 14,058 | $ 18,576 | $ 33,077 | $ 49,375 |
Unrealized loss on finance receivables, long-term debt and derivatives post securitization due to changes in interest rates | (9,104) | 7,556 | (12,339) | 62,877 |
Servicing income on securitized finance receivables | 3,023 | 2,477 | 9,758 | 4,478 |
Professional fees relating to securitizations | (3,977) | (6,542) | (12,386) | (15,841) |
Provision for losses associated with permanently financed VIEs | (2,075) | (1,653) | (4,647) | (4,610) |
Impairment charges and loss on disposal of assets | 0 | (29,860) | (5,483) | (29,860) |
Debt issuance | (2,584) | (2,220) | (3,132) | (5,092) |
Depreciation and amortization | (1,182) | (966) | (3,646) | (2,961) |
Loss before income taxes | (42,690) | (64,879) | (114,153) | (102,142) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 33,077 | 49,375 | ||
Operating Segments | Structured Settlements | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 4,635 | 16,582 | 9,404 | 47,381 |
Operating Segments | Home Lending | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 9,423 | 1,994 | 23,673 | 1,994 |
Other Adjustments/Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Unrealized loss on finance receivables, long-term debt and derivatives post securitization due to changes in interest rates | (32,495) | (35,063) | (83,801) | (67,254) |
Interest income from securitized finance receivables | 40,610 | 45,823 | 134,153 | 127,059 |
Interest income on retained interests in finance receivables | (4,041) | (5,436) | (15,798) | (15,869) |
Servicing income on securitized finance receivables | (1,280) | (1,336) | (3,919) | (3,967) |
Interest expense on long-term debt related to securitization and permanent financing trusts | (39,387) | (40,036) | (119,230) | (109,923) |
Swap termination expense related to securitization entities | 0 | 0 | (3,053) | 0 |
Professional fees relating to securitizations | (1,380) | (1,464) | (4,223) | (4,454) |
Provision for losses associated with permanently financed VIEs | (543) | 0 | (543) | 0 |
Share based compensation | (367) | (273) | (997) | (1,389) |
Impact of prefunding on unsecuritized finance receivables | (2,861) | 24 | 0 | (1,594) |
Lease termination, severance and other restructuring related expenses | (747) | (1,245) | (3,486) | (3,620) |
Merger and acquisition related expense | 0 | (419) | 0 | (1,608) |
Debt modification expense | 97 | (792) | (2,258) | (792) |
Impairment charges and loss on disposal of assets | 0 | (29,860) | (5,483) | (29,860) |
Term loan interest expense | (10,184) | (10,192) | (30,375) | (30,193) |
Debt issuance | (2,584) | (2,220) | (2,612) | (5,092) |
Broker and legal fees incurred in connection with sale of finance receivables | (404) | 0 | (1,959) | 0 |
Depreciation and amortization | $ (1,182) | $ (966) | $ (3,646) | $ (2,961) |
Cost Savings Activities (Detail
Cost Savings Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Restructuring Reserve [Roll Forward] | ||
Balance at December 31, 2015 | $ 0 | |
Payments | (1,598) | |
Adjustments | (194) | |
Balance at September 30, 2016 | $ 1,889 | 1,889 |
Structured Settlements | ||
Restructuring Reserve [Roll Forward] | ||
Balance at December 31, 2015 | 0 | |
Payments | (1,324) | |
Adjustments | (194) | |
Balance at September 30, 2016 | 1,668 | 1,668 |
Home Lending | ||
Restructuring Reserve [Roll Forward] | ||
Balance at December 31, 2015 | 0 | |
Payments | (274) | |
Adjustments | 0 | |
Balance at September 30, 2016 | 221 | 221 |
Employee Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring expense | 2,854 | |
Employee Severance | Structured Settlements | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring expense | 2,359 | |
Employee Severance | Home Lending | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring expense | 495 | |
Employee Severance | Compensation And Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring expense | 100 | 2,800 |
Lease terminations | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring expense | 827 | |
Lease terminations | Structured Settlements | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring expense | 827 | |
Lease terminations | Home Lending | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring expense | 0 | |
Lease terminations | General and Administrative Expense | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring expense | $ 827 | |
Adjustments | General and Administrative Expense | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring expense | $ 800 |