Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
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 | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Common Stock - Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 15,810,703 | |
Common Stock - Class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,629,738 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
ASSETS | |||
Cash and cash equivalents | $ 53,923 | $ 80,166 | |
Restricted cash and investments | 146,785 | 195,588 | |
VIE finance receivables, at fair value | [1] | 4,276,786 | 4,143,903 |
Other finance receivables, at fair value | 15,845 | 13,134 | |
VIE finance receivables, net of allowances for losses of $9,056 and $9,023, respectively | [1] | 79,841 | 85,325 |
Other finance receivables, net of allowances for losses of $1,946 and $2,061, respectively | 7,986 | 8,619 | |
Other receivables, net of allowances for losses of $267 and $280, respectively | 18,921 | 17,771 | |
Mortgage loans held for sale, at fair value | [2] | 230,448 | 232,770 |
Mortgage servicing rights, at fair value | [2] | 46,778 | 41,697 |
Premises and equipment, net of accumulated depreciation of $12,098 and $10,697, respectively | 3,230 | 4,005 | |
Intangible assets, net of accumulated amortization of $23,644 and $22,778, respectively | 22,002 | 22,868 | |
Goodwill | 8,369 | 8,369 | |
Marketable securities, at fair value | 78,985 | 76,687 | |
Deferred tax assets, net | 0 | 405 | |
Other assets | 54,652 | 61,600 | |
Total Assets | 5,044,551 | 4,992,907 | |
LIABILITIES AND STOCKHOLDERS' DEFICIT | |||
Accrued expenses and accounts payable | 29,315 | 28,929 | |
Accrued interest | 31,233 | 28,123 | |
Term loan payable | 436,056 | 431,872 | |
VIE derivative liabilities, at fair value | 45,916 | 50,432 | |
VIE borrowings under revolving credit facilities and other similar borrowings | 32,018 | 56,432 | |
Other borrowings under revolving credit facilities and other similar borrowings | 223,985 | 229,588 | |
VIE long-term debt | 60,509 | 62,939 | |
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 4,113,296 | 4,014,450 | |
Other liabilities | 49,126 | 52,448 | |
Deferred tax liabilities, net | 5,863 | 1,415 | |
Installment obligations payable | 78,985 | 76,687 | |
Total Liabilities | 5,106,302 | 5,033,315 | |
Commitments and contingencies (Note 18) | |||
Additional paid-in-capital | 105,879 | 105,823 | |
Accumulated deficit | (131,831) | (117,622) | |
Total stockholders' equity including treasury stock | (25,952) | (11,799) | |
Less: treasury stock at cost, 542,072 shares as of June 30, 2017 and December 31, 2016, respectively | (2,138) | (2,138) | |
Total stockholders' deficit, The J.G. Wentworth Company | (28,090) | (13,937) | |
Non-controlling interests | (33,661) | (26,471) | |
Total Stockholders' Deficit | (61,751) | (40,408) | |
Total Liabilities and Stockholders' Deficit | 5,044,551 | 4,992,907 | |
Common Stock - Class A | |||
LIABILITIES AND STOCKHOLDERS' DEFICIT | |||
Common stock | 0 | 0 | |
Common Stock - Class B | |||
LIABILITIES AND STOCKHOLDERS' DEFICIT | |||
Common stock | 0 | 0 | |
Common Stock - Class C | |||
LIABILITIES AND STOCKHOLDERS' DEFICIT | |||
Common stock | $ 0 | $ 0 | |
[1] | Refer to Note 5 "VIE and Other Finance Receivables, at Fair Value" and Note 6 "VIE and Other Finance Receivables, net of Allowance for Losses" for further details on assets pledged as collateral. | ||
[2] | Pledged as collateral to Other borrowings under revolving credit facilities and other similar borrowings. Refer to Note 7 "Mortgage Loans Held for Sale, at Fair Value" and Note 8 "Mortgage Servicing Rights, at Fair Value." |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
VIE finance receivables, allowances for losses | $ 9,056 | $ 9,023 |
Other finance receivables, allowances for losses | 1,946 | 2,061 |
Other receivables, allowance for losses | 267 | 280 |
Fixed assets, accumulated depreciation | 12,098 | 10,697 |
Accumulated amortization | $ 23,644 | $ 22,778 |
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) | 16,352,775 | 16,272,545 |
Common stock, shares outstanding (in shares) | 15,810,703 | 15,730,473 |
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) | 8,629,738 | 8,710,158 |
Common stock, shares outstanding (in shares) | 8,629,738 | 8,710,158 |
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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
REVENUES | ||||
Interest income | $ 47,997 | $ 47,561 | $ 97,358 | $ 101,220 |
Realized and unrealized gains (losses) on VIE and other finance receivables, long-term debt and derivatives | 23,728 | 6,623 | 52,831 | (3,234) |
Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | 18,481 | 20,630 | 32,035 | 37,286 |
Changes in mortgage servicing rights, net | 1,477 | 962 | 5,081 | 1,839 |
Servicing, broker, and other fees | 5,783 | 3,266 | 9,941 | 6,735 |
Loan origination fees | 2,491 | 2,273 | 4,462 | 3,909 |
Realized and unrealized gains on marketable securities, net | 1,452 | 1,409 | 4,401 | 1,546 |
Total revenues | 101,409 | 82,724 | 206,109 | 149,301 |
EXPENSES | ||||
Advertising | 16,423 | 14,325 | 31,623 | 28,298 |
Interest expense | 57,889 | 53,800 | 116,272 | 113,300 |
Compensation and benefits | 18,689 | 20,498 | 35,532 | 39,043 |
General and administrative | 7,642 | 6,979 | 13,592 | 14,088 |
Professional and consulting | 5,971 | 4,752 | 9,834 | 8,409 |
Debt issuance | 127 | 545 | 2,420 | 548 |
Securitization debt maintenance | 1,356 | 1,414 | 2,678 | 2,846 |
Provision for losses | 529 | 984 | 1,652 | 2,572 |
Direct subservicing costs | 913 | 610 | 1,809 | 1,250 |
Depreciation and amortization | 1,129 | 1,163 | 2,267 | 2,465 |
Installment obligations expense, net | 1,943 | 1,947 | 5,345 | 2,462 |
Impairment charges | 0 | 5,483 | 0 | 5,483 |
Total expenses | 112,611 | 112,500 | 223,024 | 220,764 |
Loss before income taxes | (11,202) | (29,776) | (16,915) | (71,463) |
Provision (benefit) for income taxes | 892 | (6,266) | 4,853 | (12,905) |
Net loss | (12,094) | (23,510) | (21,768) | (58,558) |
Less: net loss attributable to non-controlling interests | (5,083) | (12,716) | (7,559) | (31,678) |
Net loss attributable to The J.G. Wentworth Company | (7,011) | (10,794) | (14,209) | (26,880) |
Common Stock - Class A | ||||
EXPENSES | ||||
Net loss attributable to The J.G. Wentworth Company | $ (7,011) | $ (10,794) | $ (14,209) | $ (26,880) |
Weighted average shares of Class A common stock outstanding: | ||||
Basic (in shares) | 15,775,321 | 15,662,540 | 15,753,431 | 15,618,643 |
Diluted (in shares) | 15,775,321 | 15,662,540 | 15,753,431 | 15,618,643 |
Net loss per share attributable to stockholders of Class A common stock of The J.G. Wentworth Company | ||||
Basic (in dollars per share) | $ (0.44) | $ (0.69) | $ (0.90) | $ (1.72) |
Diluted (in dollars per share) | $ (0.44) | $ (0.69) | $ (0.90) | $ (1.72) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (12,094) | $ (23,510) | $ (21,768) | $ (58,558) |
Total comprehensive loss | (12,094) | (23,510) | (21,768) | (58,558) |
Less: comprehensive loss allocated to non-controlling interests | (5,083) | (12,716) | (7,559) | (31,678) |
Comprehensive loss attributable to The J.G. Wentworth Company | $ (7,011) | $ (10,794) | $ (14,209) | $ (26,880) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Changes in Stockholders' Deficit (Unaudited) - 6 months ended Jun. 30, 2017 - 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 |
Beginning Balance at Dec. 31, 2016 | $ (40,408) | $ 0 | $ 0 | $ 0 | $ (26,471) | $ (117,622) | $ 105,823 | $ (2,138) |
Beginning Balance (in shares) at Dec. 31, 2016 | 15,730,473 | 8,710,158 | 542,072 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net loss | (21,768) | (7,559) | (14,209) | |||||
Share-based compensation | 425 | 193 | 232 | |||||
Share-based compensation (in shares) | (9,871) | |||||||
Issuance of Class A common stock for vested equity awards | 0 | |||||||
Issuance of Class A common stock for vested equity awards (in shares) | 9,681 | |||||||
Exchange of JGW LLC common interests into Class A common stock | 0 | 176 | (176) | |||||
Exchange of JGW LLC common Interests into Class A common stock (in shares) | 70,549 | (70,549) | ||||||
Ending Balance at Jun. 30, 2017 | $ (61,751) | $ 0 | $ 0 | $ 0 | $ (33,661) | $ (131,831) | $ 105,879 | $ (2,138) |
Ending Balance (in shares) at Jun. 30, 2017 | 15,810,703 | 8,629,738 | 542,072 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (21,768) | $ (58,558) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Provision for losses | 1,652 | 2,572 |
Depreciation | 1,401 | 1,357 |
Impairment charges | 0 | 5,483 |
Changes in mortgage servicing rights, net | (5,081) | (1,839) |
Amortization of finance receivables acquisition costs | 8 | 301 |
Amortization of intangibles | 866 | 1,108 |
Amortization of debt issuance costs | 3,767 | 5,666 |
Proceeds from sale of and principal payments on mortgage loans held for sale | 1,546,446 | 1,357,105 |
Originations and purchases of mortgage loans held for sale | (1,529,730) | (1,426,472) |
Change in unrealized gains/losses on finance receivables | (169,349) | (221,770) |
Change in unrealized gains/losses on long-term debt | 121,832 | 266,517 |
Change in unrealized gains/losses on derivatives | (4,610) | 8,168 |
Net proceeds from sale of finance receivables | 5,769 | 212,122 |
Realized and unrealized gains on sale of mortgage loans held for sale, net of direct costs | (32,035) | (37,286) |
Purchases of finance receivables | (133,804) | (138,566) |
Collections on finance receivables | 261,078 | 264,428 |
Gain on sale of finance receivables | (522) | (54,219) |
Recoveries of finance receivables | 21 | 131 |
Accretion of interest income | (94,910) | (99,485) |
Accretion of interest expense | (1,262) | (13,516) |
Share-based compensation expense | 425 | 630 |
Change in marketable securities | (4,401) | (1,546) |
Installment obligations expense, net | 5,345 | 2,462 |
Deferred income taxes, net | 4,853 | (12,905) |
Decrease (increase) in operating assets: | ||
Restricted cash and investments | 48,803 | 2,203 |
Other assets | 14,626 | 6,287 |
Other receivables | (1,137) | (1,498) |
Increase (decrease) in operating liabilities: | ||
Accrued expenses and accounts payable | 386 | 9,654 |
Accrued interest | 3,110 | 2,457 |
Other liabilities | 2,089 | (889) |
Net cash provided by operating activities | 23,868 | 80,102 |
Cash flows from investing activities: | ||
Final payment on purchase of Home Lending | 0 | (7,630) |
Purchases of premises and equipment, net of sales proceeds | (626) | (491) |
Net cash used in investing activities | (626) | (8,121) |
Cash flows from financing activities: | ||
Issuance of VIE long-term debt | 136,784 | 5,670 |
Payments for debt issuance costs | 0 | (1,500) |
Payments on capital lease obligations | (22) | (21) |
Repayments of long-term debt and derivatives | (155,157) | (165,697) |
Gross proceeds from revolving credit facilities | 1,644,484 | 1,523,829 |
Repayments of revolving credit facilities | (1,675,574) | (1,453,984) |
Issuance of installment obligations payable | 5,509 | 2,206 |
Purchase of marketable securities | (5,509) | (2,206) |
Repayments of installment obligations payable | (8,556) | (10,232) |
Proceeds from sale of marketable securities | 8,556 | 10,232 |
Net cash used in financing activities | (49,485) | (91,703) |
Net decrease in cash and cash equivalents | (26,243) | (19,722) |
Cash and cash equivalents at beginning of year | 80,166 | 57,322 |
Cash and cash equivalents at end of period | 53,923 | 37,600 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 116,251 | 118,661 |
Cash paid for income taxes | 208 | 101 |
Supplemental disclosure of noncash items: | ||
Retained mortgage servicing rights in connection with sale of mortgage loans | 8,111 | 6,103 |
Mortgage loans subject to repurchase rights from Ginnie Mae | (3,577) | 12,637 |
Exchange of LLC Common Interests for shares of Class A common stock | $ (176) | $ 321 |
Background, Basis of Presentati
Background, Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
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 focused on providing direct-to-consumer access to financing solutions through a variety of avenues, including: mortgage lending, structured settlement, annuity and lottery payment purchasing, prepaid cards, and access to providers of personal loans. The Company's direct-to-consumer businesses use digital channels, television, direct mail, and other channels to offer access to financing solutions. The Company warehouses, securitizes, sells or otherwise finances the financial assets that it purchases in transactions that are structured to ultimately generate cash proceeds to the Company that exceed the purchase price paid for those assets. The Company identified the following two reportable segments in accordance with Accounting Standards Codification ("ASC") 280, Segment Reporting : (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 corporate activities, payment solutions, pre-settlements and providing (i) access to providers of personal lending and (ii) access to providers of funding for pre-settled legal claims. (ii) Home Lending - Home Lending is primarily engaged in retail mortgage lending, originating primarily Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA) and conventional mortgage 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, net of accumulated amortization; 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 2016 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, other entities in which the Company has a controlling financial interest and those entities that are considered VIEs where the Company has been determined to be the primary beneficiary in accordance with Accounting Standards Codification 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 54.9% and 45.1% , respectively, as of June 30, 2017 . The Corporation's and the non-controlling interests' economic interest in JGW LLC was 54.6% and 45.4% , respectively, as of December 31, 2016 . Net loss attributable to the non-controlling interests in the Company's condensed consolidated statements of operations represents the portion of loss attributable to the economic interest in JGW LLC held by entities and individuals other than the Corporation. The allocation of net loss attributable 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 June 30, 2017 and 2016 were 45.3% and 45.4% , respectively. The non-controlling interests' weighted average economic interests in JGW LLC for the six months ended June 30, 2017 and 2016 were 45.3% and 45.6% , respectively. The net loss attributable to The J.G. Wentworth Company in the condensed consolidated statements of operations for the three and six months ended June 30, 2017 and 2016 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 June 30, 2017 , $0.8 million of the $0.9 million total tax provision was specifically attributable to The J.G. Wentworth Company. The remaining $0.1 million tax provision relates to the Company’s subsidiaries. For the three months ended June 30, 2016 , $4.5 million of the $6.3 million total tax benefit was specifically attributable to The J.G. Wentworth Company. The remaining $1.8 million tax benefit relates to the Company’s subsidiaries. For the six months ended June 30, 2017 , $5.0 million of the $4.9 million total tax provision was specifically attributable to The J.G. Wentworth Company. The remaining $0.1 million tax benefit relates to the Company’s subsidiaries. For the six months ended June 30, 2016 , $11.0 million of the $12.9 million total tax benefit was specifically attributable to The J.G. Wentworth Company. The remaining $1.9 million tax benefit relates to the Company’s subsidiaries. Refer to Note 15 for a description of the Company's income taxes. Non-controlling interests on the Company's condensed consolidated balance sheets represent the portion of (deficit) equity attributable to the non-controlling interests of JGW LLC. The allocation of (deficit) equity to the non-controlling interests in JGW LLC is based on the weighted average 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. Going Concern In August 2014, the Financial Accounting Standards Board, (“FASB”) issued ASU 2014‑15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern ("ASU 2014-15"). Under the new standard, Management must evaluate whether there are conditions or events, considered in the aggregate, that could raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. This evaluation initially does not take into consideration the potential mitigating effect of Management’s plans that have not been fully implemented as of the date the financial statements are issued. When the relevant conditions or events, considered in the aggregate, initially indicate that substantial doubt may exist, Management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of Management’s plans, however, is only considered if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial statements are issued, and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The Company adopted this standard for the year ended December 31, 2016 and performed the required assessments in conjunction with the filing of its Form 10-K for the year ended December 31, 2016 and its Form 10-Q for the three months ended March 31, 2017 and determined, at that time, that no substantial doubt about its ability to continue as a going concern existed at each reporting period. Management’s current assessment was based on the relevant conditions that were known and reasonably knowable at the issuance date and included the Company’s current financial condition and liquidity sources, forecasted future cash flows, the Company’s contractual obligations and commitments and other conditions that could adversely affect the Company’s ability to meet its obligations through August 14, 2018. Management’s assessment considered the likelihood, magnitude and timing of the potential effects of the Company’s adverse conditions and events. However, under ASU 2014-15, Management’s initial evaluation cannot take into consideration the potential mitigating event of any plans that have not been fully implemented as of the date that the financial statements are issued. Therefore, in performing the initial step of its assessment, Management considered the availability of its warehouse credit facilities for its Structured Settlements and Home Lending Segments only for the commitment periods in place at the assessment date. Management did not assume that the warehouse credit facilities will be automatically renewed or replaced unless the renewal or replacement has been executed prior to the date the Company’s financial statements are issued or available to be issued. In conjunction with the Company’s filing of its Form 10-Q for the three months ended June 30, 2017 , the initial step of Management’s going concern analysis reflects that the Company’s current revolving warehouse credit facilities for its Structured Settlements segment expire in less than one year after the date the interim financial statements are issued. However, for the Company's Home Lending segment at least one warehouse facility will be available to the Company for more than one year after the date the interim financial statements are issued. The initial step of Management's analysis indicates that without warehouse credit facilities for its Structured Settlements segment, the Company’s ability to finance guaranteed structured settlement and annuity payment stream purchases with available cash and cash equivalents alone may not be sufficient to allow the Company to fund current operations and meet all expected liabilities and obligations within one year after the date that the interim financial statements are issued. In performing the second step of its assessment, Management evaluated whether its plans, that are intended to mitigate those conditions and events, will alleviate the substantial doubt about the Company’s ability to continue as a going concern. Historically, the Company has been able to renew, replace and refinance its existing warehouse credit facilities arrangements or enter into additional financing arrangements, for both its Structured Settlements and Home Lending segments, on terms that are commercially reasonable. Management has negotiated, on market terms, with a new lender a revolving warehouse credit facility with a $100.0 million capacity and a commitment period of two years from the date of execution, which is collateralized by structured settlement, annuity and lottery receivables. In June 2017, the Company finalized a term sheet and is presently working on executing definitive documentation. The Company believes that it is probable that the new revolving warehouse credit facility will be executed and that it is probable that, when available to the Company, the new revolving warehouse credit facility will allow the Company to operate its Structured Settlements segment in a manner expected to generate and maintain sufficient cash flows to fund the Company’s operations and meet all expected liabilities and obligations, including interest payments associated with the term loan, as they become due within one year after the date that the interim financial statements are issued. However, Management cannot predict, with certainty, the outcome of its actions to generate liquidity, including the availability of funding sources, or successfully completing the execution of the credit agreement and whether such actions would generate sufficient liquidity as anticipated. The accompanying condensed consolidated financial statements included in this Form 10-Q have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. 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, 2016 . |
Recently Adopted Accounting Pro
Recently Adopted Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2017 | |
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 six months ended June 30, 2017 . The company qualifies as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 ("JOBS Act"). As a result, the Company is permitted to, and has opted to, rely on exemptions from certain disclosure requirements that are applicable to other companies that are not emerging growth companies. In particular, the Company can take advantage of an extended transition period for complying with new or revised accounting standards which allows the Company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company took advantage of the extended transition period as permitted under the JOBS Act. We will remain an emerging growth company until the earliest to occur of the following: • our reporting of $1.07 billion or more in annual gross revenues; • our issuance, in a three-year period, of more than $1 billion in non-convertible debt; • the end of the fiscal year in which the market value of our common stock held by non-affiliates exceeds $700 million on the last business day of our second fiscal quarter; or • the end of fiscal 2018. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The goodwill of the Company consists of $8.4 million related to the Home Lending segment as of June 30, 2017 and December 31, 2016 . There is no goodwill related to the Structured Settlements segment as of June 30, 2017 and December 31, 2016 . Intangible assets subject to amortization include the following as of: Structured Settlements Home Lending Cost Accumulated Amortization Cost Accumulated Amortization (In thousands) June 30, 2017 Database $ 4,609 $ (4,414 ) $ — $ — Customer relationships 16,096 (15,829 ) — — Domain names 486 (467 ) — — Trade name 613 (262 ) 1,095 (845 ) Affinity relationships — — 9,547 (1,827 ) Intangible assets subject to amortization $ 21,804 $ (20,972 ) $ 10,642 $ (2,672 ) December 31, 2016 Database $ 4,609 $ (4,356 ) $ — $ — Customer relationships 16,096 (15,750 ) — — Domain names 486 (461 ) — — Trade name 613 (157 ) 1,095 (700 ) Affinity relationships — — 9,547 (1,354 ) Intangible assets subject to amortization $ 21,804 $ (20,724 ) $ 10,642 $ (2,054 ) As of June 30, 2017 and December 31, 2016 , the carrying value of Home Lending's indefinite-lived licenses and approvals intangible asset was $13.2 million . Amortization of intangible assets is included in depreciation and amortization in the Company's condensed consolidated statements of operations. Amortization expense for the three months ended June 30, 2017 and 2016 was $0.4 million and $0.5 million , respectively. Amortization expense for the six months ended June 30, 2017 and 2016 was $0.9 million and $1.1 million , respectively. Estimated future amortization expense for amortizable intangible assets for the six months ending December 31, 2017 and for each of the succeeding five calendar years and thereafter is as follows: Estimated Future Amortization Expense (In thousands) Remainder of 2017 $ 877 2018 1,560 2019 1,035 2020 957 2021 954 2022 954 Thereafter 2,465 Total future amortization expense $ 8,802 The Company evaluates its long-lived assets, including finite and indefinite-lived intangible assets, for impairment on an annual basis during the fourth quarter, 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 second quarter of 2017 , the Company 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 the qualitative assessment, the Company identified and considered all relevant events and circumstances, including the Company's reporting units' recent financial performance and projected operating results, and the Company's market capitalization. Based on the weight of evidence and the significance of the identified factors, the Company 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 as of June 30, 2017 . During the three and six months ended June 30, 2016, the Company determined the indefinite-lived trade name and the finite-lived customer relationships intangible assets within the Structured Settlements reporting unit were impaired and recorded an intangible assets impairment charge of $5.5 million comprised of $2.8 million for the indefinite-lived trade name and $2.7 million for the finite-lived customer relationships in its condensed consolidated statements of operations. The Company also determined that its trade name asset was a finite-lived intangible asset, and, consequently, a useful life of three years was assigned to the asset, which is the period the Company expects the asset to contribute directly or indirectly to future cash flows of the Company. Further, the Company determined that the remaining useful lives of its finite-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. While management believes the assumptions used in its impairment assessment are reasonable and will continuously evaluate for future potential impairment indicators, there can be no assurance that estimates and assumptions made for purposes of impairment testing will prove to be accurate predictions of the future. Less than anticipated revenues generated by the Company's intangible assets and reporting units, an increase in the discount rate, and/or a decrease in the internal projected revenues used in the discounted cash flow model, among other items, could result in future impairment charges. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
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 Company's condensed consolidated financial statements : Marketable securities, at fair value — The fair value of investments in marketable securities, which primarily consist of equity and fixed income 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 13 for additional information. The remaining cash flows, net of those obligations, are considered a residual interest which is projected to be paid to 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 rate ( 9.47% and 9.75% as of June 30, 2017 and December 31, 2016 , respectively, with a weighted average life of 20 years as of both dates) that is derived from the fair value interest rates of the related debt. 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, on the Company's condensed consolidated balance sheets. In connection with the refinancing of the Company's residual term facility (the "Residual Term Facility"), which was completed in September of 2016, 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"). The fair value interest rate of the debt is derived using the swap curve and applying a calculated spread based on market indices that are highly correlated with the spread from the related debt issued. Refer to Notes 12 and 13 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, assumptions 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 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 Company's 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 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 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 is 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) June 30, 2017: Assets Marketable securities, at fair value $ 76,684 $ 2,301 $ — $ 78,985 VIE and other finance receivables, at fair value — — 4,292,631 4,292,631 Mortgage loans held for sale, at fair value — 230,448 — 230,448 Mortgage servicing rights, at fair value — — 46,778 46,778 Interest rate lock commitments, at fair value (1) — — 11,256 11,256 Forward sale commitments, at fair value (1) — 2,189 — 2,189 Total Assets $ 76,684 $ 234,938 $ 4,350,665 $ 4,662,287 Liabilities VIE derivative liabilities, at fair value $ — $ 45,916 $ — $ 45,916 VIE long-term debt issued by securitization and permanent financing trusts, at fair value — — 4,113,296 4,113,296 Total Liabilities $ — $ 45,916 $ 4,113,296 $ 4,159,212 (1) Included in other assets on the Company's condensed consolidated balance sheets. 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, 2016 Assets Marketable securities, at fair value $ 74,421 $ 2,266 $ — $ 76,687 VIE and other finance receivables, at fair value — — 4,157,037 4,157,037 Mortgage loans held for sale, at fair value — 232,770 — 232,770 Mortgage servicing rights, at fair value — — 41,697 41,697 Interest rate lock commitments, at fair value (1) — — 6,072 6,072 Forward sale commitments, at fair value (1) — 659 — 659 Total Assets $ 74,421 $ 235,695 $ 4,204,806 $ 4,514,922 Liabilities VIE derivative liabilities, at fair value $ — $ 50,432 $ — $ 50,432 VIE long-term debt issued by securitization and permanent financing trusts, at fair value — — 4,014,450 4,014,450 Total Liabilities $ — $ 50,432 $ 4,014,450 $ 4,064,882 (1) Included in other assets on the Company's condensed consolidated balance sheets. 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) June 30, 2017 Assets VIE and other finance receivables, at fair value $ 4,292,631 Discounted cash flow Discount rate 3.05% - 12.00% (3.95%) Mortgage servicing rights, at fair value 46,778 Discounted cash flow Discount rate 9.50% - 14.06% (10.06%) Prepayment speed 6.08% - 22.88% (8.41%) Cost of servicing $65 - $90 ($72) Interest rate lock commitments, at fair value 11,256 Internal model Pull-through rate 10.06% - 95% (79.37%) Total Assets $ 4,350,665 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair value $ 4,113,296 Discounted cash flow Discount rate 1.68% - 12.00% (3.89%) Total Liabilities $ 4,113,296 December 31, 2016 Assets VIE and other finance receivables, at fair value $ 4,157,037 Discounted cash flow Discount rate 3.16% - 12.77% (4.32%) Mortgage servicing rights, at fair value 41,697 Discounted cash flow Discount rate 9.50% - 14.06% (10.11%) Prepayment speed 6.04% - 21.82% (7.96%) Cost of servicing $65 - $90 ($73) Interest rate lock commitments, at fair value 6,072 Internal model Pull-through rate 37.25% - 97.00% (79.53%) Total Assets $ 4,204,806 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair value $ 4,014,450 Discounted cash flow Discount rate 1.47% - 11.91% (4.25%) Total Liabilities $ 4,014,450 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 decreases (increases) in the discount rate used to estimate fair value in isolation would result in a significantly higher (lower) fair value measurement of the corresponding asset or liability. Additional significant unobservable inputs used in the fair value measurement of mortgage servicing rights, at fair value, are prepayment speed, cost of servicing and pull-through rate. Significant decreases (increases) in the prepayment speed used to estimate the fair value of MSRs in isolation would result in a significantly higher (lower) fair value measurement. Significant decreases (increases) in the cost of servicing used to estimate the fair value of MSRs in isolation would result in a significantly higher (lower) 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 six months ended June 30, 2017 and 2016 were as follows: VIE and other Mortgage servicing rights, at fair value Interest rate lock commitments, at fair value Total (In thousands) Balance as of December 31, 2016 $ 4,157,037 $ 41,697 $ 6,072 $ 4,204,806 Total included in earnings (losses): 0 Unrealized gains 169,349 5,081 11,256 185,686 Realized gain on sale of finance receivable 522 — — 522 Included in other comprehensive gain — — — — Purchases of finance receivables 133,804 — — 133,804 Interest accreted 88,991 — — 88,991 Payments received (251,303 ) — — (251,303 ) Sale of finance receivables (5,769 ) — — (5,769 ) Transfers to other balance sheet line items — — (6,072 ) (6,072 ) Transfers in (out) of Level 3 — — — — Balance as of June 30, 2017 $ 4,292,631 $ 46,778 $ 11,256 $ 4,350,665 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: June 30, 2017 $ 169,349 $ 5,081 $ 11,256 $ 185,686 Balance as of December 31, 2015 $ 4,386,147 $ 29,287 $ 4,934 $ 4,420,368 Total included in earnings: 0 Unrealized gains 221,770 1,839 14,293 237,902 Realized gain on sale of finance receivable 54,219 — — 54,219 Included in other comprehensive gain — — — — Purchases of finance receivables 138,911 — — 138,911 Interest accreted 91,850 — — 91,850 Payments received (249,833 ) — — (249,833 ) Sale of finance receivables (212,122 ) — — (212,122 ) Transfers to other balance sheet line items — — (4,934 ) (4,934 ) Transfers in (out) of Level 3 — — — — Balance as of June 30, 2016 $ 4,430,942 $ 31,126 $ 14,293 $ 4,476,361 The amount of net gains for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held as of: June 30, 2016 $ 221,770 $ 1,839 $ 14,293 $ 237,902 The changes in liabilities measured at fair value using significant unobservable inputs (Level 3) during the six months ended June 30, 2017 and 2016 were as follows: VIE long-term debt issued (In thousands) Balance as of December 31, 2016 $ 4,014,450 Total included in (earnings) losses: Unrealized losses 121,832 Issuances 136,784 Interest accreted (3,354 ) Repayments (156,416 ) Transfers in (out) of Level 3 — Balance as of June 30, 2017 $ 4,113,296 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: June 30, 2017 $ 121,832 Balance as of December 31, 2015 $ 3,928,818 Total included in (earnings) losses: Unrealized losses 266,517 Issuances 5,670 Interest accreted (15,695 ) Repayments (155,004 ) Transfers in (out) of Level 3 — Balance as of June 30, 2016 $ 4,030,306 The amount of net 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: June 30, 2016 $ 266,517 Realized and unrealized gains and losses included in revenues in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2017 and 2016 are reported in the following asset line items: 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) Three Months Ended June 30, 2017 Net gains included in revenues $ 23,077 $ 1,477 $ 11,256 Unrealized gains relating to assets and long-term debt still held as of end of period $ 22,979 $ 1,477 $ 11,256 Six Months Ended June 30, 2017 Net gains included in revenues $ 48,039 $ 5,081 $ 11,256 Unrealized gains relating to assets and long-term debt still held as of end of period $ 47,517 $ 5,081 $ 11,256 Three Months Ended June 30, 2016 Net gains included in revenues $ 9,181 $ 962 $ 14,293 Unrealized (losses) gains relating to assets and long-term debt still held as of end of period $ (23,378 ) $ 962 $ 14,293 Six Months Ended June 30, 2016 Net gains included in revenues $ 9,472 $ 1,839 $ 14,293 Unrealized (losses) gains relating to assets and long-term debt still held as of end of period $ (44,747 ) $ 1,839 $ 14,293 The Company discloses fair value information about financial instruments, whether or not recorded at fair value on 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 were as follows: June 30, 2017 December 31, 2016 Estimated Carrying Estimated Carrying (In thousands) Financial assets: VIE and other finance receivables, at fair value $ 4,292,631 $ 4,292,631 $ 4,157,037 $ 4,157,037 VIE and other finance receivables, net of allowance for losses (1) 84,534 87,827 88,300 93,944 Other receivables, net of allowance for losses (1) 18,921 18,921 17,771 17,771 Mortgage loans held for sale, at fair value 230,448 230,448 232,770 232,770 Mortgage servicing rights, at fair value 46,778 46,778 41,697 41,697 Marketable securities, at fair value 78,985 78,985 76,687 76,687 Interest rate lock commitments, at fair value (2) 11,256 11,256 6,072 6,072 Forward sale commitments, at fair value (2) 2,189 2,189 659 659 Financial liabilities: Term loan payable (1) 212,029 436,056 242,730 431,872 VIE derivative liabilities, at fair value 45,916 45,916 50,432 50,432 VIE borrowings under revolving credit facilities and other similar borrowings (1) 32,452 32,018 58,798 56,432 Other borrowings under revolving credit facilities and other similar borrowings (1) 223,577 223,985 229,221 229,588 VIE long-term debt (1) 56,558 60,509 57,268 62,939 VIE long-term debt issued by securitization and permanent financing trusts, at fair value 4,113,296 4,113,296 4,014,450 4,014,450 Installment obligations payable (1) 78,985 78,985 76,687 76,687 (1) These represent financial instruments not recorded on 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 other assets on the Company's condensed consolidated balance sheets. |
VIE and Other Finance Receivabl
VIE and Other Finance Receivables, at Fair Value | 6 Months Ended |
Jun. 30, 2017 | |
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. 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: June 30, 2017 December 31, 2016 (In thousands) Maturity value $ 6,654,427 $ 6,584,344 Unearned income (2,361,796 ) (2,427,307 ) Net carrying amount $ 4,292,631 $ 4,157,037 Encumbrances on VIE and other finance receivables, at fair value were as follows: Encumbrance June 30, 2017 December 31, 2016 (In thousands) VIE long-term debt issued by securitization and permanent financing trusts (2) $ 4,220,418 $ 4,060,069 $100.0 million credit facility (JGW-S III) (1) 35,280 27,966 $300.0 million credit facility (JGW V) (1) 21,088 55,868 Encumbered VIE finance receivables 4,276,786 4,143,903 Unencumbered 15,845 13,134 Total VIE and other finance receivables, at fair value $ 4,292,631 $ 4,157,037 (1) Refer to Note 10. (2) Refer to Note 13. As of June 30, 2017 and December 31, 2016 , the unsecuritized finance receivables, at fair value, were $72.2 million and $97.0 million , respectively, and were included within VIE finance receivables, at fair value and other finance receivables, at fair value on the Company's condensed consolidated balance sheets. In March 2017, the Company entered in to our first Asset Sale Facility agreement (the "Asset Sale Facility") to sell up to $50.0 million of discounted total receivable balances ("TRB") purchases, which can be increased to $75.0 million by mutual agreement of the parties, and has a duration of one year . During the three months ended June 30, 2017 , the Company sold $2.1 million of TRB purchases pursuant to the Asset Sale Facility, which was accounted for as a direct asset sale, for $1.8 million , and the Company recognized a $0.1 million gain. During the six months ended June 30, 2017 , the Company sold $8.7 million of TRB purchases pursuant to the Asset Sale Facility, which was accounted for as a direct asset sale, for $5.8 million , and the Company recognized a $0.5 million gain. The gains were included in realized and unrealized gains (losses) 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 sale. On June 30, 2017, the Company executed a second Asset Sale Facility agreement (the "Second Asset Sale Facility") to sell up to $5.0 million of discounted TRB purchases, which can be increased to $25.0 million by mutual agreement of the parties, and has a duration of one year. As of June 30, 2017, no assets had been sold under the Second Asset Sale Facility. 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 TRB purchases were sold for $91.3 million . The Company recognized a $21.7 million gain, which was included in realized and unrealized gains (losses) on VIE and other finance receivables, long-term debt and derivatives in the Company's condensed consolidated statements of operations. 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, which is included in realized and unrealized gains (losses) on VIE and other finance receivables, long-term debt and derivatives in the Company's condensed consolidated statements of operations. 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, which is included in realized and unrealized gains (losses) 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Servicing fee income $ 243 $ 225 $ 502 $ 434 |
VIE and Other Finance Receiva13
VIE and Other Finance Receivables, net of Allowance for Losses | 6 Months Ended |
Jun. 30, 2017 | |
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 The Company did not elect the fair value option for VIE and other finance receivables, net of allowance for losses, which consist of the following: June 30, 2017 December 31, 2016 (In thousands) Structured settlements and annuities $ 66,172 $ 67,872 Less: unearned income (40,391 ) (42,030 ) 25,781 25,842 Lottery winnings 60,721 63,957 Less: unearned income (15,254 ) (16,799 ) 45,467 47,158 Pre-settlement funding transactions 27,508 31,853 Less: unearned income (340 ) (441 ) 27,168 31,412 Attorney cost financing 413 616 Less: unearned income — — 413 616 VIE and other finance receivables 98,829 105,028 Less: allowance for losses (11,002 ) (11,084 ) VIE and other finance receivables, net of allowances $ 87,827 $ 93,944 Encumbrances on VIE and other finance receivables, net of allowance for losses, were as follows: Encumbrance June 30, 2017 December 31, 2016 (In thousands) VIE long-term debt (1) $ 67,404 $ 69,354 VIE and encumbered securitized debt 67,404 69,354 VIE unencumbered assets 12,437 15,971 Non-VIE unencumbered assets 7,986 8,619 Unencumbered 20,423 24,590 Total VIE and other finance receivables, net of allowances $ 87,827 $ 93,944 (1) Refer to Note 12. 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 June 30, 2017 Allowance for losses: Balance as of March 31, 2017 $ 93 $ — $ 10,744 $ 284 $ 11,121 Provision for loss 12 — 462 — 474 Charge-offs (15 ) — (581 ) — (596 ) Recoveries 3 — — — 3 Balance as of June 30, 2017 $ 93 $ — $ 10,625 $ 284 $ 11,002 Six Months Ended June 30, 2017 Allowance for losses: Balance as of December 31, 2016 $ 93 $ — $ 10,707 $ 284 $ 11,084 Provision (credit) for loss 7 (13 ) 1,280 — 1,274 Charge-offs (15 ) — (1,362 ) — (1,377 ) Recoveries 8 13 — — 21 Balance as of June 30, 2017 $ 93 $ — $ 10,625 $ 284 $ 11,002 Individually evaluated for impairment $ 93 $ — $ 1,977 $ 284 $ 2,354 Collectively evaluated for impairment — — 8,648 — 8,648 Balance as of June 30, 2017 $ 93 $ — $ 10,625 $ 284 $ 11,002 VIE and other finance receivables, net: Individually evaluated for impairment $ 25,688 $ 45,467 $ 122 $ 129 $ 71,406 Collectively evaluated for impairment — — 16,421 — 16,421 Balance as of June 30, 2017 $ 25,688 $ 45,467 $ 16,543 $ 129 $ 87,827 Three Months Ended June 30, 2016 Allowance for losses: Balance as of March 31, 2016 $ 69 $ — $ 9,957 $ 284 $ 10,310 Provision for loss 22 4 745 — 771 Charge-offs (30 ) (4 ) (839 ) — (873 ) Recoveries 7 — — — 7 Balance as of June 30, 2016 $ 68 $ — $ 9,863 $ 284 $ 10,215 Six Months Ended June 30, 2016 Allowance for losses: Balance as of December 31, 2015 $ 69 $ — $ 10,013 $ 284 $ 10,366 (Credit) provision for loss (103 ) 4 1,767 — 1,668 Charge-offs (30 ) (4 ) (1,917 ) — (1,951 ) Recoveries 132 — — — 132 Balance as of June 30, 2016 $ 68 $ — $ 9,863 $ 284 $ 10,215 Individually evaluated for impairment $ 68 $ — $ 2,191 $ 284 $ 2,543 Collectively evaluated for impairment — — 7,672 — 7,672 Balance as of June 30, 2016 $ 68 $ — $ 9,863 $ 284 $ 10,215 VIE and other finance receivables, net: Individually evaluated for impairment $ 25,816 $ 49,164 $ 61 $ 395 $ 75,436 Collectively evaluated for impairment — — 24,593 — 24,593 Balance as of June 30, 2016 $ 25,816 $ 49,164 $ 24,654 $ 395 $ 100,029 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 interest income. Additionally, the Company generally does not resume recognition of interest income once it has been suspended. As of June 30, 2017 and December 31, 2016 , the Company had discontinued recognition of income on pre-settlement funding transactions in the amount of $13.0 million and $14.7 million , respectively, 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 Company decided, beginning in April 2015, to curtail its purchases of pre-settlement transactions and has not purchased any in 2016 or 2017. The following table presents gross finance receivables related to pre-settlement funding transactions based on their year of origination as of: Year of Origination June 30, 2017 December 31, 2016 (In thousands) 2009 $ 457 $ 690 2010 1,707 1,848 2011 3,291 3,891 2012 3,907 4,279 2013 3,446 5,390 2014 12,451 13,085 2015 2,249 2,670 Total $ 27,508 $ 31,853 Based on historical portfolio experience, the Company reserved for pre-settlement funding transactions and attorney cost financing in the amounts of $10.6 million and $0.3 million , respectively, as of June 30, 2017 , and in the amounts of $10.7 million and $0.3 million , respectively, as of December 31, 2016 . 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) June 30, 2017 Structured settlements and annuities $ 7 $ 6 $ 120 $ 133 $ 25,555 $ 25,688 $ — Lottery winnings 2 1 249 252 45,215 45,467 — Total $ 9 $ 7 $ 369 $ 385 $ 70,770 $ 71,155 $ — December 31, 2016 Structured settlements and annuities $ 11 $ 5 $ 88 $ 104 $ 25,645 $ 25,749 $ — Lottery winnings — 4 205 209 46,949 47,158 — Total $ 11 $ 9 $ 293 $ 313 $ 72,594 $ 72,907 $ — 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 | 6 Months Ended |
Jun. 30, 2017 | |
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: June 30, 2017 December 31, 2016 (In thousands) Unpaid principal balance of mortgage loans held for sale $ 223,563 $ 230,261 Fair value adjustment 6,885 2,509 Mortgage loans held for sale, at fair value $ 230,448 $ 232,770 A reconciliation of the changes in mortgage loans held for sale, at fair value, is presented in the following table: Six Months Ended June 30, 2017 2016 (In thousands) Balance at beginning of period $ 232,770 $ 124,508 Originations and purchases of mortgage loans held for sale, net of fees 1,529,730 1,426,472 Proceeds from sale of and principal payments on mortgage loans held for sale (1,546,446 ) (1,357,105 ) Net change in fair value of mortgage loans held for sale 14,394 34,354 Balance at end of period $ 230,448 $ 228,229 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, Transfers and Servicing , the Company recorded an asset and a corresponding liability, included within other assets and other liabilities on the Company's condensed consolidated balance sheets, equal to the principal amount of the loans of $36.1 million and $39.7 million as of June 30, 2017 and December 31, 2016 , respectively. For the six months ended June 30, 2017 and 2016 , the Company repurchased $7.6 million and $12.6 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 or any mortgage loans held for sale greater than 90 days past due as of June 30, 2017 or December 31, 2016 . 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 the Company's representations and warranties, the Company 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 within other liabilities on the Company's condensed consolidated balance sheets. The associated expense is included in the provision for losses in the Company's condensed consolidated statements of operations. The activity in the loan servicing and repurchase reserve was as follows: Six Months Ended June 30, 2017 2016 (In thousands) Balance at beginning of period $ 3,010 $ 2,575 Provision for loan servicing and repurchases 378 865 Write-offs, net (908 ) (964 ) Balance at end of period $ 2,480 $ 2,476 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 several assumptions that are subject to change. |
Mortgage Servicing Rights, at F
Mortgage Servicing Rights, at Fair Value | 6 Months Ended |
Jun. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights, at Fair Value | Mortgage Servicing Rights, at Fair Value The activity of MSRs was as follows: Six Months Ended June 30, 2017 2016 (In thousands) Balance at beginning of period $ 41,697 $ 29,287 Additions due to loans sold, servicing retained 8,111 6,103 Reductions due to loan payoffs and foreclosures (3,963 ) (2,939 ) Fair value adjustment 933 (1,325 ) Balance at end of period $ 46,778 $ 31,126 The unpaid principal balance of mortgage loans serviced was $4.5 billion as of June 30, 2017 and $4.1 billion as of December 31, 2016 . The key assumptions used in determining the fair value of the Company's MSRs were as follows: June 30, 2017 December 31, 2016 Range (Weighted Average) Discount rate 9.50% - 14.06% (10.06%) 9.50% - 14.06% (10.11%) Prepayment speed 6.08% - 22.88% (8.41%) 6.04% - 21.82% (7.96%) Cost of servicing $65 - $90 ($72) $65 - $90 ($73) The hypothetical effect of an adverse change in these key assumptions that would result in a decrease in fair values are as follows: June 30, 2017 December 31, 2016 (In thousands) Discount rate: Effect on value - 100 basis points adverse change $ (1,785 ) $ (1,612 ) Effect on value - 200 basis points adverse change $ (3,444 ) $ (3,109 ) Prepayment speed: Effect on value - 5% adverse change $ (820 ) $ (686 ) Effect on value - 10% adverse change $ (1,605 ) $ (1,370 ) Cost of servicing: Effect on value - 5% adverse change $ (351 ) $ (327 ) Effect on value - 10% adverse change $ (702 ) $ (653 ) 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 | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and December 31, 2016 , 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 matured in August 2017 and was not renewed. 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 June 30, 2017 and December 31, 2016 , the interest rate on the Term Loan was 7.13% and 7.00% , respectively, 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 4.75 to 1.00 as of June 30, 2017 and December 31, 2016 . As of June 30, 2017 and December 31, 2016 , 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 June 30, 2017 or December 31, 2016 , 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. Under the terms of the calculation, $0.3 million of the Company's $40.4 million in stockholders' deficit as of December 31, 2016 was free of limitations on the payment of dividends. Interest expense relating to the Term Loan for the three months ended June 30, 2017 and 2016 was $10.2 million and $10.1 million , respectively. Interest expense relating to the Term Loan for the six months ended June 30, 2017 and 2016 was $20.2 million and $20.2 million , respectively. |
VIE Borrowings Under Revolving
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | 6 Months Ended |
Jun. 30, 2017 | |
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 Company's condensed consolidated balance sheets consist of the following as of: Entity June 30, 2017 December 31, 2016 (In thousands) $100.0 million variable funding note facility with interest payable monthly (6.50% as of June 30, 2017 and December 31, 2016). 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 of 0.75% per annum for the undrawn balance of its line of credit. JGW-S III $ 20,704 $ 18,912 $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 (4.35% and 4.69% at June 30, 2017 and 3.92% and 4.43% at December 31, 2016); Tranche B rate is 5.80% plus LIBOR (6.85% as of June 30, 2017 and 6.42% at December 31, 2016). 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 11,314 37,520 Total VIE borrowings under revolving credit facilities and other similar borrowings $ 32,018 $ 56,432 In July 2017, the Company decreased the capacity of its $300.0 million credit facility to $200.0 million and extended the commitment period of this credit facility through November 30, 2017. The Company incurred $0.4 million in debt issuance costs in connection with the modification. There were no changes to the used or unused interest rates. Interest expense, including unused fees, for the three months ended June 30, 2017 and 2016 related to VIE borrowings under revolving credit facilities and other borrowings was $1.7 million and $2.7 million , respectively. Interest expense, including unused fees, for the six months ended June 30, 2017 and 2016 related to VIE borrowings under revolving credit facilities and other similar borrowings was $3.4 million and $5.2 million , respectively. 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 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 $0.5 million of unamortized debt issuance costs during the six months ended June 30, 2016 , 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 for JGW VII. 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 $1.1 million of unamortized debt issuance costs during the three months ended June 30, 2016 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, 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. The weighted average interest rate on outstanding VIE borrowings under revolving credit facilities and other similar borrowings as of June 30, 2017 and December 31, 2016 was 5.83% and 5.00% , respectively. |
Other Borrowings Under Revolvin
Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings The Company had the following lines of credit with various financial institutions, which primarily are used for the funding of mortgage loans held for sale, as of: June 30, 2017 December 31, 2016 (In thousands) $100.0 million warehouse line of credit maturing on August 15, 2018 with an interest rate of LIBOR plus 2.25%, subject to a floor of 2.50% (3.42% as of June 30, 2017 and 2.97% as of December 31, 2016). The facility does not incur a non-usage fee. $ 61,227 $ 39,140 $90.0 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% (3.77% as of June 30, 2017 and 3.32% as of December 31, 2016) and a non-usage fee of 0.25%. 54,832 39,347 $95.0 million warehouse line of credit maturing on February 9, 2018 with an interest rate of LIBOR plus 2.35%, subject to a floor of 2.50% (3.52% as of June 30, 2017 and 3.07% as of December 31, 2016) and a non-usage fee of 0.25%. 63,354 65,565 $50.0 million warehouse line of credit maturing on May 11, 2018 with an interest rate of LIBOR plus 2.45% (3.62% as of June 30, 2017) and a non-usage fee of 0.25%. 40,572 — $25.0 million warehouse line of credit with an interest rate of LIBOR plus 2.15%, subject to a floor of 2.50% (2.87% as of December 31, 2016) and a non-usage fee of 0.25%. The facility matured on February 5, 2017. — 13,057 $100.0 million warehouse line of credit with an interest rate of LIBOR plus 2.25% (2.97% as of December 31, 2016). The facility did not incur a non-usage fee. The facility was terminated in March 2017. — 68,479 $10.0 million operating line of credit maturing August 15, 2018 with an interest rate of Prime plus 0.50%, subject to a floor of 5.00% (5.00% as of June 30, 2017 and December 31, 2016) and a non-usage fee of 0.50%. 4,000 4,000 Total other borrowings under revolving credit facilities and other similar borrowings $ 223,985 $ 229,588 In August 2016, the Company increased the capacity of its $6.0 million operating line of credit to $10.0 million . The Company may only draw on a balance of $4.0 million until regulatory approval is obtained, which is not expected prior to the current maturity date. In July 2017, the Company decreased the capacity of its $90.0 million warehouse line of credit to $80.0 million . On September 15, 2017, the capacity of the $90.0 million warehouse line of credit will revert to $50.0 million and all other terms remain unchanged. Interest expense, including unused fees, for the three months ended June 30, 2017 and 2016 related to other borrowings under revolving credit facilities and other similar borrowings was $1.8 million and $1.5 million , respectively. Interest expense, including non-usage fees, for the six months ended June 30, 2017 and 2016 related to other borrowings under revolving credit facilities and other similar borrowings was $3.0 million and $2.3 million , respectively. The weighted average interest rate on outstanding other borrowings under revolving credit facilities and other similar borrowings as of June 30, 2017 and December 31, 2016 was 3.60% and 2.86% , respectively. As of June 30, 2017 , 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 June 30, 2017 . Additionally, as of June 30, 2017 , the Company had pledged MSRs as collateral under its operating line of credit. |
VIE Long-Term Debt
VIE Long-Term Debt | 6 Months Ended |
Jun. 30, 2017 | |
VIE Long-Term Debt | |
VIE Long-Term Debt | VIE Long-Term Debt The debt issued by the Company's special purpose entities ("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. The VIE long-term debt consisted of the following as of: June 30, 2017 December 31, 2016 (In thousands) PLMT Permanent Facility $ 35,743 $ 37,630 Long-Term Pre-settlement Facility 5,158 5,427 2012-A Facility 680 708 LCSS Facility (2010-C) 11,769 12,015 LCSS Facility (2010-D) 7,159 7,159 Total VIE long-term debt $ 60,509 $ 62,939 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 2.30% and 1.87% at June 30, 2017 and December 31, 2016 , 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, on the Company's condensed consolidated balance sheets. 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 $5.2 million and $5.4 million principal amount remained outstanding as of June 30, 2017 and December 31, 2016 , respectively. 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. To the extent that there are sufficient cash receipts from collateralized pre-settlement funding transactions to pay for interest and principal due on the notes, interest expense will be recognized monthly on the notes at a rate of 9.25% per annum. 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 ("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 III, LLC, which owns 100% of the membership interests of LCSS II, LLC ("LCSS II"). In November 2010, LCSS II 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 June 30, 2017 and 2016 related to VIE long-term debt was $1.5 million and $4.3 million , respectively. Interest expense for the six months ended June 30, 2017 and 2016 related to VIE long-term debt was $3.1 million and $8.6 million , respectively. |
VIE Long-Term Debt Issued by Se
VIE Long-Term Debt Issued by Securitization and Permanent Financing Trusts, at Fair Value | 6 Months Ended |
Jun. 30, 2017 | |
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 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 the Company's 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 six months ended June 30, 2017 , the Company completed the pre-funding associated with the 2016-1 securitization and the initial close and pre-funding associated with the 2017-1 securitization transaction which were registered under Rule 144A. The following table summarizes these securitization transactions: 2017-1 2016-1 (Bonds issued in millions) Issue date 3/22/2017 10/26/2016 Bonds issued $131.8 $117.3 Receivables securitized 2,129 1,943 Deal discount rate 4.35% 3.89% Retained interest % 5.50% 5.50% Class allocation (Moody's) 0 Aaa 84.75% 84.00% Baa2 9.75% 10.50% During the six months ended June 30, 2016 , the Company did no t complete any asset securitization transactions that were registered under Rule 144A. 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, on the Company's condensed consolidated balance sheets: June 30, 2017 December 31, 2016 Outstanding Principal Fair Value Outstanding Principal Fair Value (In thousands) Securitization trusts $ 3,448,320 $ 3,635,429 $ 3,460,820 $ 3,550,503 Permanent financing VIEs 438,207 477,867 445,339 463,947 Total VIE long-term debt issued by securitization and permanent financing trusts, at fair value $ 3,886,527 $ 4,113,296 $ 3,906,159 $ 4,014,450 Interest expense for the three months ended June 30, 2017 and 2016 related to VIE long-term debt issued by securitization trusts and permanent financing facilities, at fair value, was $42.7 million and $35.2 million , respectively. Interest expense for the six months ended June 30, 2017 and 2016 related to VIE long-term debt issued by securitization trusts and permanent financing facilities, at fair value, was $86.5 million and $76.7 million , respectively. In connection with the refinancing of the Residual Term Facility, which was completed 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 principal balances. Proceeds from the issuance of the notes were used, in part, to repay the $131.4 million outstanding principal balance on the Residual Term Facility. In March 2017, the Company issued $2.3 million in notes collateralized by the residual asset cash flows and reserve cash associated with one of the Company's securitizations with an outstanding principal balance. The Company incurred $0.2 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 the collateralized residual interests. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and December 31, 2016 , the Company did no t have any outstanding interest rate swaps related to its borrowings on revolving credit facilities. During the three months ended June 30, 2017 , the Company did no t terminate any interest rate swaps. During the three months ended June 30, 2016, and in connection with its securitizations and direct asset sales, the Company terminated interest rate swaps with notional values of $21.2 million and the loss on termination of these swaps was $0.2 million . During the six months ended June 30, 2017 and 2016 , and in connection with its securitizations and direct asset sales, the Company terminated interest rate swaps with notional values of $21.8 million and $75.2 million , respectively. The total gain (loss) on the termination of interest rate swaps for the six months ended June 30, 2017 and 2016 was $0.2 million and $(1.5) million , respectively. There was no unrealized loss for interest rate swaps for the three and six months ended June 30, 2017 and 2016 . The realized and unrealized gains (losses) associated with these interest rate swaps were recorded in realized and unrealized gains (losses) 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 June 30, 2017 and December 31, 2016 , the Company had eight outstanding swaps for VIE long-term debt with a total notional amount of $140.9 million and $156.6 million , respectively. The Company pays fixed rates ranging from 4.50% to 5.77% and receives floating rates equal to one-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 June 30, 2017 , the terms of these interest rate swaps range from approximately 5.0 to 18.6 years . For the three months ended June 30, 2017 and 2016 , the amount of unrealized gain (loss) recognized was $0.7 million and $(0.3) million , respectively. For the six months ended June 30, 2017 and 2016 , the amount of unrealized gain (loss) recognized was $2.6 million and $(2.8) million , respectively. These gains (losses) were recorded in realized and unrealized gains (losses) 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 June 30, 2017 , the Company had 135 outstanding swaps for PSS and PLMT with a total notional amount of $173.7 million . As of December 31, 2016 , the Company had 137 outstanding swaps for PSS and PLMT with a total notional amount of $181.2 million . The Company pays fixed rates ranging from 4.90% to 8.70% and receives floating rates equal to one-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 June 30, 2017 , the terms of the interest rate swaps for PSS and PLMT range from less than one month to approximately 17.1 years . During the three months ended June 30, 2017 and 2016 , the Company did not terminate any interest rate swaps for PSS and PLMT. During the six months ended June 30, 2017 , the Company did no t terminate any interest rate swap for PSS. During the six months ended June 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 . For the three months ended June 30, 2017 and 2016 , the amount of unrealized loss recognized was less than $0.1 million and $2.1 million , respectively. For the six months ended June 30, 2017 and 2016 , the amount of unrealized gain (loss) recognized was $2.0 million and $(5.3) million , respectively. These gains (losses) were recorded in realized and unrealized gains (losses) 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 as of: June 30, 2017 December 31, 2016 Entity Securitization Notional Amount Fair Value Notional Amount Fair Value (In thousands) 321 Henderson I, LLC 2004-A A-1 $ 17,690 $ (1,311 ) $ 20,265 $ (1,610 ) 321 Henderson I, LLC 2005-1 A-1 35,366 (3,849 ) 39,548 (4,495 ) 321 Henderson II, LLC 2006-1 A-1 6,615 (571 ) 7,969 (714 ) 321 Henderson II, LLC 2006-2 A-1 10,623 (1,437 ) 12,011 (1,654 ) 321 Henderson II, LLC 2006-3 A-1 9,997 (1,200 ) 11,832 (1,394 ) 321 Henderson II, LLC 2006-4 A-1 10,509 (746 ) 12,378 (965 ) 321 Henderson II, LLC 2007-1 A-2 21,731 (3,643 ) 22,942 (3,965 ) 321 Henderson II, LLC 2007-2 A-3 28,364 (6,190 ) 29,606 (6,664 ) PSS — 132,239 (20,814 ) 137,361 (22,190 ) PLMT — 41,863 (6,155 ) 43,792 (6,781 ) Total $ 314,997 $ (45,916 ) $ 337,704 $ (50,432 ) 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 other assets or other liabilities on the Company's 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 Company's condensed consolidated statements of operations. The fair value of the IRLCs are measured based on the value of the underlying mortgage loan, quoted GSE MBS prices, estimates of the fair value of the MSRs and the pull-through rate, 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 as of: June 30, 2017 December 31, 2016 Notional Amount Fair Value Notional Amount Fair Value (In thousands) Derivative Assets: Interest rate lock commitments $ 633,568 $ 11,256 $ 355,870 $ 6,072 Forward sale commitments 571,000 2,189 406,000 659 Total $ 1,204,568 $ 13,445 $ 761,870 $ 6,731 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 | 6 Months Ended |
Jun. 30, 2017 | |
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 historically 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's overall effective tax rate was (28.7)% for the six months ended June 30, 2017 , as compared to an overall effective rate of 18.1% for the six months ended June 30, 2016 . The effective tax rate for the Corporation for the six months ended June 30, 2017 and 2016 was (54.0)% and 28.3% , respectively. The effective tax rate for JGW LLC for the six months ended June 30, 2017 and 2016 was 1.4% and 5.9% , respectively. The change in the Company's effective tax rate 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 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; (iv) the recording of a valuation allowance in the three months ended September 30, 2016 due to the expectation that some of the deferred tax assets are not more likely than not to be realized due to the insufficient future reversals of existing taxable temporary differences; and (v) a state limitation on the utilization of net operating losses expected to be generated during the current year that are not more likely than not to be realized. 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 corporate-level income taxes. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 , there were 16,352,775 shares of Class A common stock issued and 15,810,703 shares outstanding. Additionally, there were 8,629,738 shares of Class B common stock issued and outstanding as of June 30, 2017 . There were no shares of Class C common stock issued or outstanding as of June 30, 2017 . 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 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 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 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 June 30, 2017 and December 31, 2016 . 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 six months ended June 30, 2017 or 2016 . 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 six months ended June 30, 2017 and 2016 , 70,549 and 194,780 Common Interests in JGW LLC, in addition to an equal number of shares of Class B common stock, were exchanged for 70,549 and 194,780 shares of the Class A common stock pursuant to the operating agreement, respectively. |
Non-Controlling Interests
Non-Controlling Interests | 6 Months Ended |
Jun. 30, 2017 | |
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 six months ended June 30, 2017 are presented in the following table: Total Common Interests Held By: The J.G. Wentworth Non-controlling Total Balance as of December 31, 2016 15,730,473 13,070,781 28,801,254 Common Interests acquired by The J.G. Wentworth Company as a result of the exchange of units for shares of Class A common stock 70,549 (70,549 ) — Issuance of Class A common stock for vested equity awards 9,681 — 9,681 Common Interests forfeited — (9,871 ) (9,871 ) Balance as of June 30, 2017 15,810,703 12,990,361 28,801,064 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 | 6 Months Ended |
Jun. 30, 2017 | |
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 has 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 June 30, 2017 and December 31, 2016 , the amount owed from the counterparty pursuant to this Borrowing Agreement is $11.1 million and $10.8 million , respectively, is earning interest at an annual rate of 5.35% and is included in Other receivables, net of allowance for losses, on 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 2015 and 2014 resulted in a $53.3 million and $207.0 million increase, respectively, 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 years ended December 31, 2015 and 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 2015 or 2014 exchanges pursuant to the TRA. The Corporation will compute any tax liability for similar exchanges for 2016 and 2017 in conjunction with the preparation of its 2016 and 2017 Federal tax returns. The Corporation, however, does not expect to have any tax liability associated with the 2016 and 2017 tax years and does not expect to benefit from income tax cash savings related to basis adjustments associated with the 2016 and 2017 exchanges pursuant to the TRA, or have any liability in connection with exchanges pursuant to the TRA made in 2016 and 2017 . 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 as of June 30, 2017 and December 31, 2016 approximated $633.6 million and $355.9 million , respectively. |
Share-based Compensation
Share-based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 , 1.1 million shares of unissued Class A common stock were available to grant under the Plan. During the six months ended June 30, 2017 , the Company granted non-qualified stock options and performance-based restricted stock units to its employees. The Company recognizes compensation cost, net of a forfeiture rate, in compensation and benefits expense in the Company's condensed consolidated statements of operations only for those awards that are expected to vest. The forfeiture rate is estimated 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 the Class A common stock on the date of grant, 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 six months ended June 30, 2017 was estimated using the Black-Scholes valuation model and included the following assumptions: Six Months Ended June 30, 2017 Fair value $ 0.19 Risk-free interest rate 2.07 % Expected volatility 43.58 % 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 six months ended June 30, 2017 and 2016 , the Company recognized $0.6 million and $0.5 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 six months ended June 30, 2017 is as follows: Shares Weighted - Weighted - Average Aggregate Outstanding as of December 31, 2016 1,376,549 $ 5.77 7.73 $ — Granted 206,500 0.41 Forfeited (72,415 ) 1.04 Expired (2,366 ) 11.69 Outstanding as of June 30, 2017 1,508,268 $ 5.25 7.46 $ — Expected to vest as of June 30, 2017 1,464,822 5.36 7.45 — Vested as of June 30, 2017 318,500 10.04 7.13 — During the six months ended June 30, 2017 and 2016 , stock options representing the right to acquire 54,250 and 44,100 shares, respectively, vested with an aggregate grant date fair value of $0.1 million and $0.2 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 June 30, 2017 . The intrinsic value of the Company's stock options changes based on the closing price of the Company's stock. As of June 30, 2017 , $2.6 million of total unrecognized compensation expense related to the outstanding stock options is expected to be recognized over a weighted average period of 2.2 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 participants were offered the opportunity to participate in the modification under a Tender Offer and Consent Solicitation Statement and were given 20 business days to consent to the modification. After the 20 business day solicitation period expired, participants who elected to participate had their stock option exercise prices modified to the closing stock price of the Company's Class A common stock on the first business day subsequent to the 20 day period. The stock modification program did not impact the stock compensation expense recognized in the six months ended June 30, 2016 since the Tender Offer and Consent Solicitation Statement were not sent to the participants until July 29, 2016. Performance-Based Restricted Stock Units A summary of performance-based restricted stock units for the six months ended June 30, 2017 is as follows: Performance- Based Weighted - Average Outstanding as of December 31, 2016 207,500 $ 1.18 Granted 103,250 0.41 Vested (9,681 ) 1.23 Forfeited (68,819 ) 6.38 Outstanding as of June 30, 2017 232,250 $ 1.53 Expected to vest as of June 30, 2017 98,603 0.41 Each performance-based restricted stock unit will vest into 0 to 1.5 shares of Class A common stock depending on 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 February 2017, the Company modified the performance goals associated with the performance-based restricted stock units granted in 2015 and 2016. As of June 30, 2017 , management concluded that it was (i) improbable that the modified performance goals associated with the performance-based restricted stock units granted in 2015 and 2016 would vest and (ii) probable that the performance goals associated with the performance-based restricted stock units granted in 2017 would be met and the corresponding performance-based restricted stock units would vest. During the six months ended June 30, 2017 and 2016 , the Company recognized less than $0.1 million of compensation expense in connection with the performance-based restricted stock units. In April 2016, the Company modified the performance goals associated with the performance-based restricted stock units granted in 2014 and 2015. During the second quarter of 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, consequently, no expense was recognized for the modified options in the six months ended June 30, 2016 . The aggregate grant-date fair value of the performance-based restricted stock units granted during the six months ended June 30, 2017 was less than $0.1 million . As of June 30, 2017 , there was less than $0.1 million of total unrecognized compensation cost relating to outstanding performance-based restricted stock units that is expected to be recognized over a weighted-average period of 2.5 years. As of June 30, 2017 , 9,681 of the performance-based restricted stock units had vested. Restricted Stock 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 six months ended June 30, 2017 or 2016 . As of June 30, 2017 , there was no restricted stock outstanding. 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 six months ended June 30, 2017 and 2016 , the Company did no t recognize any expense and recognized less than $0.1 million , respectively, 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 six months ended June 30, 2017 : Unvested Restricted Common Interests Weighted - Average Grant - Date Fair Value Outstanding as of December 31, 2016 9,871 $ 9.06 Vested in period — — Forfeited (9,871 ) 9.06 Outstanding as of June 30, 2017 — $ — Expected to vest as of June 30, 2017 — — As of June 30, 2017 , there was no unrecognized compensation cost related to outstanding unvested Restricted Common Interests. Total share-based compensation expense recognized for the six months ended June 30, 2017 and 2016 related to the Restricted Common Interests was less than $0.1 million . |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2017 | |
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 six months ended June 30, 2017 and 2016 , 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 three months ended June 30, 2017 and 2016 , 1,546,444 and 1,473,893 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 three months ended June 30, 2017 and 2016 , 349,052 and 246,651 weighted average performance-based restricted stock units, respectively, were antidilutive and, therefore, excluded from the computation of diluted loss per common share. During the six months ended June 30, 2017 and 2016 , 1,513,052 and 1,404,909 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 six months ended June 30, 2017 and 2016 , 253,906 and 227,867 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 13,025,743 and 13,047,338 weighted average Common Interests and vested Restricted Common Interests outstanding, respectively, and the 4,971 and 27,777 weighted average unvested Restricted Common Interests outstanding, respectively, for the three months ended June 30, 2017 and 2016 , respectively, were antidilutive and excluded from the computation of diluted loss per common share. Based on these calculations, the 13,043,033 and 13,091,235 weighted average Common Interests and vested Restricted Common Interests outstanding, respectively, and the 7,407 and 27,777 weighted average unvested Restricted Common Interests outstanding, respectively, for the six months ended June 30, 2017 and 2016 , 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 for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (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 $ (7,011 ) $ (10,794 ) $ (14,209 ) $ (26,880 ) 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 $ (7,011 ) $ (10,794 ) $ (14,209 ) $ (26,880 ) Denominator: Denominator for basic EPS - Weighted average shares of Class A common stock 15,775,321 15,662,540 15,753,431 15,618,643 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 15,775,321 15,662,540 15,753,431 15,618,643 Basic loss per share of Class A common stock $ (0.44 ) $ (0.69 ) $ (0.90 ) $ (1.72 ) Diluted loss per share of Class A common stock $ (0.44 ) $ (0.69 ) $ (0.90 ) $ (1.72 ) |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2017 | |
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 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 reportable segments using Segment Adjusted Earnings Before Interest Expense, Income Taxes, Depreciation and Amortization ("Segment Adjusted EBITDA") for purposes of making decisions about allocating resources and evaluating their performance. The Company defines 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 the Structured Settlements segment, amounts related to the consolidation of the securitization and permanent financing trusts the Company uses to finance its business, interest expense associated with its senior secured credit facility, debt issuance costs and broker and legal fees incurred in connection with sales of finance receivables. During 2016, the CODM began using Segment Adjusted EBITDA as the primary means by which he evaluates segment performance since (i) Segment Adjusted EBITDA represents a better measure of the Company's operating performance, especially for the Structured Settlements segment because the operations of the VIEs do not impact the business segments' performance and (ii) Segment Adjusted EBITDA is the metric used in determining whether performance-based restricted stock units issued to management will vest. Prior periods have been adjusted to reflect the current measurement method. 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. Additionally, Segment Adjusted EBITDA is not indicative of cash flow generation. Below is a summary of Segment Adjusted EBITDA, a measure of the Company's segments' profitability. Structured Settlements Home Lending Other Adjustments/Eliminations Subtotal Reportable Segments (In thousands) Three Months Ended June 30, 2017 Segment Adjusted EBITDA $ 3,978 $ 3,643 — $ 7,621 Three Months Ended June 30, 2016 Segment Adjusted EBITDA $ 3,069 $ 7,969 — $ 11,038 Six Months Ended June 30, 2017 Segment Adjusted EBITDA $ 4,846 $ 7,747 — $ 12,593 Six Months Ended June 30, 2016 Segment Adjusted EBITDA $ 4,777 $ 14,247 — $ 19,024 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 June 30, 2017 Total revenues $ 75,034 $ 26,375 — $ 101,409 Total assets 4,663,791 380,760 — 5,044,551 Three Months Ended June 30, 2016 Total revenues $ 55,962 $ 26,762 — $ 82,724 Total assets 4,807,618 366,078 — 5,173,696 Six Months Ended June 30, 2017 Total revenues $ 156,986 $ 49,123 — $ 206,109 Total assets 4,663,791 380,760 — 5,044,551 Six Months Ended June 30, 2016 Total revenues $ 100,661 $ 48,640 — $ 149,301 Total assets 4,807,618 366,078 — 5,173,696 Below is a reconciliation of Segments' Adjusted EBITDA, a measure of the Company's segments' profitability for the Company's two reportable segments, to loss before income taxes for the three months ended June 30, 2017 and 2016 : Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 (In thousands) Structured Settlements Segment Adjusted EBITDA $ 3,978 $ 3,069 Home Lending Segment Adjusted EBITDA 3,643 7,969 Subtotal Segment Adjusted EBITDA for Reportable Segments $ 7,621 $ 11,038 Securitization-related adjustments: Unrealized gain (loss) on finance receivables, long-term debt and derivatives post securitization due to changes in interest rates $ 391 $ (16,468 ) Interest income from securitized finance receivables 44,459 43,729 Interest income on retained interests in finance receivables (425 ) (5,923 ) Servicing income on securitized finance receivables (1,261 ) (1,299 ) Interest expense on long-term debt related to securitization and permanent financing trusts (44,257 ) (36,790 ) Professional fees relating to securitizations (1,368 ) (1,414 ) Credit (provision) for losses associated with permanently financed VIEs 239 (12 ) Subtotal of securitization related adjustments $ (2,222 ) $ (18,177 ) Other adjustments: Share based compensation $ (233 ) $ (323 ) Impact of pre-funding on unsecuritized finance receivables 29 (1,392 ) Lease termination, severance and other restructuring related expenses (4,900 ) (1,499 ) Debt modification expense — (1,807 ) Impairment charges and loss on disposal of assets — (5,483 ) Term loan interest expense (10,238 ) (10,104 ) Debt issuance (130 ) (25 ) Broker and legal fees incurred in connection with sale of finance receivables — (841 ) Depreciation and amortization (1,129 ) (1,163 ) Loss before income taxes $ (11,202 ) $ (29,776 ) Below is a reconciliation of Segments' Adjusted EBITDA, a measure of the Company's segments' profitability for the Company's two reportable segments, to loss before income taxes for the six months ended June 30, 2017 and 2016 : Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 (In thousands) Structured Settlements Segment Adjusted EBITDA $ 4,846 $ 4,777 Home Lending Segment Adjusted EBITDA 7,747 14,247 Subtotal Segment Adjusted EBITDA for Reportable Segments $ 12,593 $ 19,024 Securitization-related adjustments: Unrealized gain (loss) on finance receivables, long-term debt and derivatives post securitization due to changes in interest rates $ 3,974 $ (51,306 ) Interest income from securitized finance receivables 90,380 93,544 Interest income on retained interests in finance receivables (830 ) (11,757 ) Servicing income on securitized finance receivables (2,526 ) (2,639 ) Interest expense on long-term debt related to securitization and permanent financing trusts (89,668 ) (79,827 ) Swap termination expense related to securitization entities — (3,053 ) Professional fees relating to securitizations (2,706 ) (2,846 ) Credit (provision) for losses associated with permanently financed VIEs 197 (17 ) Subtotal of securitization related adjustments $ (1,179 ) $ (57,901 ) Other adjustments: Share based compensation $ (425 ) $ (630 ) Impact of pre-funding on unsecuritized finance receivables 3,199 2,861 Lease termination, severance and other restructuring related expenses (6,167 ) (2,739 ) Debt modification expense — (2,355 ) Impairment charges and loss on disposal of assets — (5,483 ) Term loan interest expense (20,246 ) (20,192 ) Debt issuance — (28 ) Broker and legal fees incurred in connection with sale of finance receivables (2,423 ) (1,555 ) Depreciation and amortization (2,267 ) (2,465 ) Loss before income taxes $ (16,915 ) $ (71,463 ) |
Cost Savings Activities
Cost Savings Activities | 6 Months Ended |
Jun. 30, 2017 | |
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. The associated workforce reductions in connection with the Company's cost savings activities were substantially complete as of June 30, 2016. During the three and six months ended June 30, 2016 , the Company incurred $1.5 million and $2.7 million , respectively, in severance charges, which were included within compensation and benefits in the condensed consolidated statements of operations. The Company recorded lease termination charges of $1.5 million for each of the three and six months ended June 30, 2017 , which were 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 June 30, 2017, 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. The Company may incur additional severance, lease termination and other restructuring costs in future periods as the Company continues to undertake additional efforts to improve efficiency in its business. Both the severance liability and the lease termination costs are included in accrued expenses and accounts payable on the Company's condensed consolidated balance sheets. 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, 2016 $ 1,201 $ 90 $ 1,291 Payments (669 ) (90 ) (759 ) Adjustments 1,480 1,480 Balance at June 30, 2017 $ 2,012 $ — $ 2,012 |
Background, Basis of Presenta30
Background, Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
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, net of accumulated amortization; 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 2016 audited consolidated financial statements that are included in its Annual Report on Form 10-K. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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) June 30, 2017 Database $ 4,609 $ (4,414 ) $ — $ — Customer relationships 16,096 (15,829 ) — — Domain names 486 (467 ) — — Trade name 613 (262 ) 1,095 (845 ) Affinity relationships — — 9,547 (1,827 ) Intangible assets subject to amortization $ 21,804 $ (20,972 ) $ 10,642 $ (2,672 ) December 31, 2016 Database $ 4,609 $ (4,356 ) $ — $ — Customer relationships 16,096 (15,750 ) — — Domain names 486 (461 ) — — Trade name 613 (157 ) 1,095 (700 ) Affinity relationships — — 9,547 (1,354 ) Intangible assets subject to amortization $ 21,804 $ (20,724 ) $ 10,642 $ (2,054 ) |
Schedule of estimated future amortization expense | Estimated future amortization expense for amortizable intangible assets for the six months ending December 31, 2017 and for each of the succeeding five calendar years and thereafter is as follows: Estimated Future Amortization Expense (In thousands) Remainder of 2017 $ 877 2018 1,560 2019 1,035 2020 957 2021 954 2022 954 Thereafter 2,465 Total future amortization expense $ 8,802 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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) June 30, 2017: Assets Marketable securities, at fair value $ 76,684 $ 2,301 $ — $ 78,985 VIE and other finance receivables, at fair value — — 4,292,631 4,292,631 Mortgage loans held for sale, at fair value — 230,448 — 230,448 Mortgage servicing rights, at fair value — — 46,778 46,778 Interest rate lock commitments, at fair value (1) — — 11,256 11,256 Forward sale commitments, at fair value (1) — 2,189 — 2,189 Total Assets $ 76,684 $ 234,938 $ 4,350,665 $ 4,662,287 Liabilities VIE derivative liabilities, at fair value $ — $ 45,916 $ — $ 45,916 VIE long-term debt issued by securitization and permanent financing trusts, at fair value — — 4,113,296 4,113,296 Total Liabilities $ — $ 45,916 $ 4,113,296 $ 4,159,212 (1) Included in other assets on the Company's condensed consolidated balance sheets. 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, 2016 Assets Marketable securities, at fair value $ 74,421 $ 2,266 $ — $ 76,687 VIE and other finance receivables, at fair value — — 4,157,037 4,157,037 Mortgage loans held for sale, at fair value — 232,770 — 232,770 Mortgage servicing rights, at fair value — — 41,697 41,697 Interest rate lock commitments, at fair value (1) — — 6,072 6,072 Forward sale commitments, at fair value (1) — 659 — 659 Total Assets $ 74,421 $ 235,695 $ 4,204,806 $ 4,514,922 Liabilities VIE derivative liabilities, at fair value $ — $ 50,432 $ — $ 50,432 VIE long-term debt issued by securitization and permanent financing trusts, at fair value — — 4,014,450 4,014,450 Total Liabilities $ — $ 50,432 $ 4,014,450 $ 4,064,882 (1) Included in other assets on the Company's condensed consolidated balance sheets. |
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) June 30, 2017 Assets VIE and other finance receivables, at fair value $ 4,292,631 Discounted cash flow Discount rate 3.05% - 12.00% (3.95%) Mortgage servicing rights, at fair value 46,778 Discounted cash flow Discount rate 9.50% - 14.06% (10.06%) Prepayment speed 6.08% - 22.88% (8.41%) Cost of servicing $65 - $90 ($72) Interest rate lock commitments, at fair value 11,256 Internal model Pull-through rate 10.06% - 95% (79.37%) Total Assets $ 4,350,665 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair value $ 4,113,296 Discounted cash flow Discount rate 1.68% - 12.00% (3.89%) Total Liabilities $ 4,113,296 December 31, 2016 Assets VIE and other finance receivables, at fair value $ 4,157,037 Discounted cash flow Discount rate 3.16% - 12.77% (4.32%) Mortgage servicing rights, at fair value 41,697 Discounted cash flow Discount rate 9.50% - 14.06% (10.11%) Prepayment speed 6.04% - 21.82% (7.96%) Cost of servicing $65 - $90 ($73) Interest rate lock commitments, at fair value 6,072 Internal model Pull-through rate 37.25% - 97.00% (79.53%) Total Assets $ 4,204,806 Liabilities VIE long-term debt issued by securitization and permanent financing trusts, at fair value $ 4,014,450 Discounted cash flow Discount rate 1.47% - 11.91% (4.25%) Total Liabilities $ 4,014,450 |
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 six months ended June 30, 2017 and 2016 were as follows: VIE and other Mortgage servicing rights, at fair value Interest rate lock commitments, at fair value Total (In thousands) Balance as of December 31, 2016 $ 4,157,037 $ 41,697 $ 6,072 $ 4,204,806 Total included in earnings (losses): 0 Unrealized gains 169,349 5,081 11,256 185,686 Realized gain on sale of finance receivable 522 — — 522 Included in other comprehensive gain — — — — Purchases of finance receivables 133,804 — — 133,804 Interest accreted 88,991 — — 88,991 Payments received (251,303 ) — — (251,303 ) Sale of finance receivables (5,769 ) — — (5,769 ) Transfers to other balance sheet line items — — (6,072 ) (6,072 ) Transfers in (out) of Level 3 — — — — Balance as of June 30, 2017 $ 4,292,631 $ 46,778 $ 11,256 $ 4,350,665 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: June 30, 2017 $ 169,349 $ 5,081 $ 11,256 $ 185,686 Balance as of December 31, 2015 $ 4,386,147 $ 29,287 $ 4,934 $ 4,420,368 Total included in earnings: 0 Unrealized gains 221,770 1,839 14,293 237,902 Realized gain on sale of finance receivable 54,219 — — 54,219 Included in other comprehensive gain — — — — Purchases of finance receivables 138,911 — — 138,911 Interest accreted 91,850 — — 91,850 Payments received (249,833 ) — — (249,833 ) Sale of finance receivables (212,122 ) — — (212,122 ) Transfers to other balance sheet line items — — (4,934 ) (4,934 ) Transfers in (out) of Level 3 — — — — Balance as of June 30, 2016 $ 4,430,942 $ 31,126 $ 14,293 $ 4,476,361 The amount of net gains for the period included in revenues attributable to the change in unrealized gains or losses relating to assets still held as of: June 30, 2016 $ 221,770 $ 1,839 $ 14,293 $ 237,902 |
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 six months ended June 30, 2017 and 2016 were as follows: VIE long-term debt issued (In thousands) Balance as of December 31, 2016 $ 4,014,450 Total included in (earnings) losses: Unrealized losses 121,832 Issuances 136,784 Interest accreted (3,354 ) Repayments (156,416 ) Transfers in (out) of Level 3 — Balance as of June 30, 2017 $ 4,113,296 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: June 30, 2017 $ 121,832 Balance as of December 31, 2015 $ 3,928,818 Total included in (earnings) losses: Unrealized losses 266,517 Issuances 5,670 Interest accreted (15,695 ) Repayments (155,004 ) Transfers in (out) of Level 3 — Balance as of June 30, 2016 $ 4,030,306 The amount of net 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: June 30, 2016 $ 266,517 |
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 six months ended June 30, 2017 and 2016 are reported in the following asset line items: 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) Three Months Ended June 30, 2017 Net gains included in revenues $ 23,077 $ 1,477 $ 11,256 Unrealized gains relating to assets and long-term debt still held as of end of period $ 22,979 $ 1,477 $ 11,256 Six Months Ended June 30, 2017 Net gains included in revenues $ 48,039 $ 5,081 $ 11,256 Unrealized gains relating to assets and long-term debt still held as of end of period $ 47,517 $ 5,081 $ 11,256 Three Months Ended June 30, 2016 Net gains included in revenues $ 9,181 $ 962 $ 14,293 Unrealized (losses) gains relating to assets and long-term debt still held as of end of period $ (23,378 ) $ 962 $ 14,293 Six Months Ended June 30, 2016 Net gains included in revenues $ 9,472 $ 1,839 $ 14,293 Unrealized (losses) gains relating to assets and long-term debt still held as of end of period $ (44,747 ) $ 1,839 $ 14,293 |
Schedule of estimated fair values of financial instruments | The Company discloses fair value information about financial instruments, whether or not recorded at fair value on 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 were as follows: June 30, 2017 December 31, 2016 Estimated Carrying Estimated Carrying (In thousands) Financial assets: VIE and other finance receivables, at fair value $ 4,292,631 $ 4,292,631 $ 4,157,037 $ 4,157,037 VIE and other finance receivables, net of allowance for losses (1) 84,534 87,827 88,300 93,944 Other receivables, net of allowance for losses (1) 18,921 18,921 17,771 17,771 Mortgage loans held for sale, at fair value 230,448 230,448 232,770 232,770 Mortgage servicing rights, at fair value 46,778 46,778 41,697 41,697 Marketable securities, at fair value 78,985 78,985 76,687 76,687 Interest rate lock commitments, at fair value (2) 11,256 11,256 6,072 6,072 Forward sale commitments, at fair value (2) 2,189 2,189 659 659 Financial liabilities: Term loan payable (1) 212,029 436,056 242,730 431,872 VIE derivative liabilities, at fair value 45,916 45,916 50,432 50,432 VIE borrowings under revolving credit facilities and other similar borrowings (1) 32,452 32,018 58,798 56,432 Other borrowings under revolving credit facilities and other similar borrowings (1) 223,577 223,985 229,221 229,588 VIE long-term debt (1) 56,558 60,509 57,268 62,939 VIE long-term debt issued by securitization and permanent financing trusts, at fair value 4,113,296 4,113,296 4,014,450 4,014,450 Installment obligations payable (1) 78,985 78,985 76,687 76,687 (1) These represent financial instruments not recorded on 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 other assets on the Company's condensed consolidated balance sheets. |
VIE and Other Finance Receiva33
VIE and Other Finance Receivables, at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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: June 30, 2017 December 31, 2016 (In thousands) Maturity value $ 6,654,427 $ 6,584,344 Unearned income (2,361,796 ) (2,427,307 ) Net carrying amount $ 4,292,631 $ 4,157,037 |
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 June 30, 2017 December 31, 2016 (In thousands) VIE long-term debt issued by securitization and permanent financing trusts (2) $ 4,220,418 $ 4,060,069 $100.0 million credit facility (JGW-S III) (1) 35,280 27,966 $300.0 million credit facility (JGW V) (1) 21,088 55,868 Encumbered VIE finance receivables 4,276,786 4,143,903 Unencumbered 15,845 13,134 Total VIE and other finance receivables, at fair value $ 4,292,631 $ 4,157,037 (1) Refer to Note 10. (2) Refer to Note 13. |
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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 (In thousands) Servicing fee income $ 243 $ 225 $ 502 $ 434 |
VIE and Other Finance Receiva34
VIE and Other Finance Receivables, net of Allowance for Losses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
VIE and Other Finance Receivables, net of Allowance for Losses | |
Schedule of VIE and other finance receivables, net of allowance for losses | The Company did not elect the fair value option for VIE and other finance receivables, net of allowance for losses, which consist of the following: June 30, 2017 December 31, 2016 (In thousands) Structured settlements and annuities $ 66,172 $ 67,872 Less: unearned income (40,391 ) (42,030 ) 25,781 25,842 Lottery winnings 60,721 63,957 Less: unearned income (15,254 ) (16,799 ) 45,467 47,158 Pre-settlement funding transactions 27,508 31,853 Less: unearned income (340 ) (441 ) 27,168 31,412 Attorney cost financing 413 616 Less: unearned income — — 413 616 VIE and other finance receivables 98,829 105,028 Less: allowance for losses (11,002 ) (11,084 ) VIE and other finance receivables, net of allowances $ 87,827 $ 93,944 |
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, were as follows: Encumbrance June 30, 2017 December 31, 2016 (In thousands) VIE long-term debt (1) $ 67,404 $ 69,354 VIE and encumbered securitized debt 67,404 69,354 VIE unencumbered assets 12,437 15,971 Non-VIE unencumbered assets 7,986 8,619 Unencumbered 20,423 24,590 Total VIE and other finance receivables, net of allowances $ 87,827 $ 93,944 (1) Refer to Note 12. |
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 June 30, 2017 Allowance for losses: Balance as of March 31, 2017 $ 93 $ — $ 10,744 $ 284 $ 11,121 Provision for loss 12 — 462 — 474 Charge-offs (15 ) — (581 ) — (596 ) Recoveries 3 — — — 3 Balance as of June 30, 2017 $ 93 $ — $ 10,625 $ 284 $ 11,002 Six Months Ended June 30, 2017 Allowance for losses: Balance as of December 31, 2016 $ 93 $ — $ 10,707 $ 284 $ 11,084 Provision (credit) for loss 7 (13 ) 1,280 — 1,274 Charge-offs (15 ) — (1,362 ) — (1,377 ) Recoveries 8 13 — — 21 Balance as of June 30, 2017 $ 93 $ — $ 10,625 $ 284 $ 11,002 Individually evaluated for impairment $ 93 $ — $ 1,977 $ 284 $ 2,354 Collectively evaluated for impairment — — 8,648 — 8,648 Balance as of June 30, 2017 $ 93 $ — $ 10,625 $ 284 $ 11,002 VIE and other finance receivables, net: Individually evaluated for impairment $ 25,688 $ 45,467 $ 122 $ 129 $ 71,406 Collectively evaluated for impairment — — 16,421 — 16,421 Balance as of June 30, 2017 $ 25,688 $ 45,467 $ 16,543 $ 129 $ 87,827 Three Months Ended June 30, 2016 Allowance for losses: Balance as of March 31, 2016 $ 69 $ — $ 9,957 $ 284 $ 10,310 Provision for loss 22 4 745 — 771 Charge-offs (30 ) (4 ) (839 ) — (873 ) Recoveries 7 — — — 7 Balance as of June 30, 2016 $ 68 $ — $ 9,863 $ 284 $ 10,215 Six Months Ended June 30, 2016 Allowance for losses: Balance as of December 31, 2015 $ 69 $ — $ 10,013 $ 284 $ 10,366 (Credit) provision for loss (103 ) 4 1,767 — 1,668 Charge-offs (30 ) (4 ) (1,917 ) — (1,951 ) Recoveries 132 — — — 132 Balance as of June 30, 2016 $ 68 $ — $ 9,863 $ 284 $ 10,215 Individually evaluated for impairment $ 68 $ — $ 2,191 $ 284 $ 2,543 Collectively evaluated for impairment — — 7,672 — 7,672 Balance as of June 30, 2016 $ 68 $ — $ 9,863 $ 284 $ 10,215 VIE and other finance receivables, net: Individually evaluated for impairment $ 25,816 $ 49,164 $ 61 $ 395 $ 75,436 Collectively evaluated for impairment — — 24,593 — 24,593 Balance as of June 30, 2016 $ 25,816 $ 49,164 $ 24,654 $ 395 $ 100,029 |
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 June 30, 2017 December 31, 2016 (In thousands) 2009 $ 457 $ 690 2010 1,707 1,848 2011 3,291 3,891 2012 3,907 4,279 2013 3,446 5,390 2014 12,451 13,085 2015 2,249 2,670 Total $ 27,508 $ 31,853 |
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) June 30, 2017 Structured settlements and annuities $ 7 $ 6 $ 120 $ 133 $ 25,555 $ 25,688 $ — Lottery winnings 2 1 249 252 45,215 45,467 — Total $ 9 $ 7 $ 369 $ 385 $ 70,770 $ 71,155 $ — December 31, 2016 Structured settlements and annuities $ 11 $ 5 $ 88 $ 104 $ 25,645 $ 25,749 $ — Lottery winnings — 4 205 209 46,949 47,158 — Total $ 11 $ 9 $ 293 $ 313 $ 72,594 $ 72,907 $ — |
Mortgage Loans Held for Sale,35
Mortgage Loans Held for Sale, at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of mortgage loans held-for-sale | Mortgage loans held for sale, at fair value, were as follows: June 30, 2017 December 31, 2016 (In thousands) Unpaid principal balance of mortgage loans held for sale $ 223,563 $ 230,261 Fair value adjustment 6,885 2,509 Mortgage loans held for sale, at fair value $ 230,448 $ 232,770 A reconciliation of the changes in mortgage loans held for sale, at fair value, is presented in the following table: Six Months Ended June 30, 2017 2016 (In thousands) Balance at beginning of period $ 232,770 $ 124,508 Originations and purchases of mortgage loans held for sale, net of fees 1,529,730 1,426,472 Proceeds from sale of and principal payments on mortgage loans held for sale (1,546,446 ) (1,357,105 ) Net change in fair value of mortgage loans held for sale 14,394 34,354 Balance at end of period $ 230,448 $ 228,229 |
Schedule of activity in the loan indemnification reserve | The activity in the loan servicing and repurchase reserve was as follows: Six Months Ended June 30, 2017 2016 (In thousands) Balance at beginning of period $ 3,010 $ 2,575 Provision for loan servicing and repurchases 378 865 Write-offs, net (908 ) (964 ) Balance at end of period $ 2,480 $ 2,476 |
Mortgage Servicing Rights, at36
Mortgage Servicing Rights, at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Summary of activity of mortgage servicing rights | The activity of MSRs was as follows: Six Months Ended June 30, 2017 2016 (In thousands) Balance at beginning of period $ 41,697 $ 29,287 Additions due to loans sold, servicing retained 8,111 6,103 Reductions due to loan payoffs and foreclosures (3,963 ) (2,939 ) Fair value adjustment 933 (1,325 ) Balance at end of period $ 46,778 $ 31,126 |
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: June 30, 2017 December 31, 2016 Range (Weighted Average) Discount rate 9.50% - 14.06% (10.06%) 9.50% - 14.06% (10.11%) Prepayment speed 6.08% - 22.88% (8.41%) 6.04% - 21.82% (7.96%) Cost of servicing $65 - $90 ($72) $65 - $90 ($73) |
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: June 30, 2017 December 31, 2016 (In thousands) Discount rate: Effect on value - 100 basis points adverse change $ (1,785 ) $ (1,612 ) Effect on value - 200 basis points adverse change $ (3,444 ) $ (3,109 ) Prepayment speed: Effect on value - 5% adverse change $ (820 ) $ (686 ) Effect on value - 10% adverse change $ (1,605 ) $ (1,370 ) Cost of servicing: Effect on value - 5% adverse change $ (351 ) $ (327 ) Effect on value - 10% adverse change $ (702 ) $ (653 ) |
VIE Borrowings Under Revolvin37
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 Company's condensed consolidated balance sheets consist of the following as of: Entity June 30, 2017 December 31, 2016 (In thousands) $100.0 million variable funding note facility with interest payable monthly (6.50% as of June 30, 2017 and December 31, 2016). 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 of 0.75% per annum for the undrawn balance of its line of credit. JGW-S III $ 20,704 $ 18,912 $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 (4.35% and 4.69% at June 30, 2017 and 3.92% and 4.43% at December 31, 2016); Tranche B rate is 5.80% plus LIBOR (6.85% as of June 30, 2017 and 6.42% at December 31, 2016). 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 11,314 37,520 Total VIE borrowings under revolving credit facilities and other similar borrowings $ 32,018 $ 56,432 The Company had the following lines of credit with various financial institutions, which primarily are used for the funding of mortgage loans held for sale, as of: June 30, 2017 December 31, 2016 (In thousands) $100.0 million warehouse line of credit maturing on August 15, 2018 with an interest rate of LIBOR plus 2.25%, subject to a floor of 2.50% (3.42% as of June 30, 2017 and 2.97% as of December 31, 2016). The facility does not incur a non-usage fee. $ 61,227 $ 39,140 $90.0 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% (3.77% as of June 30, 2017 and 3.32% as of December 31, 2016) and a non-usage fee of 0.25%. 54,832 39,347 $95.0 million warehouse line of credit maturing on February 9, 2018 with an interest rate of LIBOR plus 2.35%, subject to a floor of 2.50% (3.52% as of June 30, 2017 and 3.07% as of December 31, 2016) and a non-usage fee of 0.25%. 63,354 65,565 $50.0 million warehouse line of credit maturing on May 11, 2018 with an interest rate of LIBOR plus 2.45% (3.62% as of June 30, 2017) and a non-usage fee of 0.25%. 40,572 — $25.0 million warehouse line of credit with an interest rate of LIBOR plus 2.15%, subject to a floor of 2.50% (2.87% as of December 31, 2016) and a non-usage fee of 0.25%. The facility matured on February 5, 2017. — 13,057 $100.0 million warehouse line of credit with an interest rate of LIBOR plus 2.25% (2.97% as of December 31, 2016). The facility did not incur a non-usage fee. The facility was terminated in March 2017. — 68,479 $10.0 million operating line of credit maturing August 15, 2018 with an interest rate of Prime plus 0.50%, subject to a floor of 5.00% (5.00% as of June 30, 2017 and December 31, 2016) and a non-usage fee of 0.50%. 4,000 4,000 Total other borrowings under revolving credit facilities and other similar borrowings $ 223,985 $ 229,588 |
Other Borrowings Under Revolv38
Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of warehouse lines of credit | VIE borrowings under revolving credit facilities and other similar borrowings on the Company's condensed consolidated balance sheets consist of the following as of: Entity June 30, 2017 December 31, 2016 (In thousands) $100.0 million variable funding note facility with interest payable monthly (6.50% as of June 30, 2017 and December 31, 2016). 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 of 0.75% per annum for the undrawn balance of its line of credit. JGW-S III $ 20,704 $ 18,912 $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 (4.35% and 4.69% at June 30, 2017 and 3.92% and 4.43% at December 31, 2016); Tranche B rate is 5.80% plus LIBOR (6.85% as of June 30, 2017 and 6.42% at December 31, 2016). 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 11,314 37,520 Total VIE borrowings under revolving credit facilities and other similar borrowings $ 32,018 $ 56,432 The Company had the following lines of credit with various financial institutions, which primarily are used for the funding of mortgage loans held for sale, as of: June 30, 2017 December 31, 2016 (In thousands) $100.0 million warehouse line of credit maturing on August 15, 2018 with an interest rate of LIBOR plus 2.25%, subject to a floor of 2.50% (3.42% as of June 30, 2017 and 2.97% as of December 31, 2016). The facility does not incur a non-usage fee. $ 61,227 $ 39,140 $90.0 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% (3.77% as of June 30, 2017 and 3.32% as of December 31, 2016) and a non-usage fee of 0.25%. 54,832 39,347 $95.0 million warehouse line of credit maturing on February 9, 2018 with an interest rate of LIBOR plus 2.35%, subject to a floor of 2.50% (3.52% as of June 30, 2017 and 3.07% as of December 31, 2016) and a non-usage fee of 0.25%. 63,354 65,565 $50.0 million warehouse line of credit maturing on May 11, 2018 with an interest rate of LIBOR plus 2.45% (3.62% as of June 30, 2017) and a non-usage fee of 0.25%. 40,572 — $25.0 million warehouse line of credit with an interest rate of LIBOR plus 2.15%, subject to a floor of 2.50% (2.87% as of December 31, 2016) and a non-usage fee of 0.25%. The facility matured on February 5, 2017. — 13,057 $100.0 million warehouse line of credit with an interest rate of LIBOR plus 2.25% (2.97% as of December 31, 2016). The facility did not incur a non-usage fee. The facility was terminated in March 2017. — 68,479 $10.0 million operating line of credit maturing August 15, 2018 with an interest rate of Prime plus 0.50%, subject to a floor of 5.00% (5.00% as of June 30, 2017 and December 31, 2016) and a non-usage fee of 0.50%. 4,000 4,000 Total other borrowings under revolving credit facilities and other similar borrowings $ 223,985 $ 229,588 |
VIE Long-Term Debt (Tables)
VIE Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
VIE Long-Term Debt | |
Schedule of VIE long-term debt | The VIE long-term debt consisted of the following as of: June 30, 2017 December 31, 2016 (In thousands) PLMT Permanent Facility $ 35,743 $ 37,630 Long-Term Pre-settlement Facility 5,158 5,427 2012-A Facility 680 708 LCSS Facility (2010-C) 11,769 12,015 LCSS Facility (2010-D) 7,159 7,159 Total VIE long-term debt $ 60,509 $ 62,939 |
VIE Long-Term Debt Issued by 40
VIE Long-Term Debt Issued by Securitization and Permanent Financing Trusts, at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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: 2017-1 2016-1 (Bonds issued in millions) Issue date 3/22/2017 10/26/2016 Bonds issued $131.8 $117.3 Receivables securitized 2,129 1,943 Deal discount rate 4.35% 3.89% Retained interest % 5.50% 5.50% Class allocation (Moody's) 0 Aaa 84.75% 84.00% Baa2 9.75% 10.50% |
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, on the Company's condensed consolidated balance sheets: June 30, 2017 December 31, 2016 Outstanding Principal Fair Value Outstanding Principal Fair Value (In thousands) Securitization trusts $ 3,448,320 $ 3,635,429 $ 3,460,820 $ 3,550,503 Permanent financing VIEs 438,207 477,867 445,339 463,947 Total VIE long-term debt issued by securitization and permanent financing trusts, at fair value $ 3,886,527 $ 4,113,296 $ 3,906,159 $ 4,014,450 |
Derivative Financial Instrume41
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 as of: June 30, 2017 December 31, 2016 Entity Securitization Notional Amount Fair Value Notional Amount Fair Value (In thousands) 321 Henderson I, LLC 2004-A A-1 $ 17,690 $ (1,311 ) $ 20,265 $ (1,610 ) 321 Henderson I, LLC 2005-1 A-1 35,366 (3,849 ) 39,548 (4,495 ) 321 Henderson II, LLC 2006-1 A-1 6,615 (571 ) 7,969 (714 ) 321 Henderson II, LLC 2006-2 A-1 10,623 (1,437 ) 12,011 (1,654 ) 321 Henderson II, LLC 2006-3 A-1 9,997 (1,200 ) 11,832 (1,394 ) 321 Henderson II, LLC 2006-4 A-1 10,509 (746 ) 12,378 (965 ) 321 Henderson II, LLC 2007-1 A-2 21,731 (3,643 ) 22,942 (3,965 ) 321 Henderson II, LLC 2007-2 A-3 28,364 (6,190 ) 29,606 (6,664 ) PSS — 132,239 (20,814 ) 137,361 (22,190 ) PLMT — 41,863 (6,155 ) 43,792 (6,781 ) Total $ 314,997 $ (45,916 ) $ 337,704 $ (50,432 ) |
Schedule of derivative instruments | The notional amounts and fair values associated with IRLCs and forward sale commitments were as follows as of: June 30, 2017 December 31, 2016 Notional Amount Fair Value Notional Amount Fair Value (In thousands) Derivative Assets: Interest rate lock commitments $ 633,568 $ 11,256 $ 355,870 $ 6,072 Forward sale commitments 571,000 2,189 406,000 659 Total $ 1,204,568 $ 13,445 $ 761,870 $ 6,731 |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Noncontrolling Interest [Abstract] | |
Schedule of changes in the non-controlling and JGWPT Holdings Inc. interest in Holdings LLC | Changes in the non-controlling and the Corporation's interest in JGW LLC for the six months ended June 30, 2017 are presented in the following table: Total Common Interests Held By: The J.G. Wentworth Non-controlling Total Balance as of December 31, 2016 15,730,473 13,070,781 28,801,254 Common Interests acquired by The J.G. Wentworth Company as a result of the exchange of units for shares of Class A common stock 70,549 (70,549 ) — Issuance of Class A common stock for vested equity awards 9,681 — 9,681 Common Interests forfeited — (9,871 ) (9,871 ) Balance as of June 30, 2017 15,810,703 12,990,361 28,801,064 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 fair value of stock option awards granted during the six months ended June 30, 2017 was estimated using the Black-Scholes valuation model and included the following assumptions: Six Months Ended June 30, 2017 Fair value $ 0.19 Risk-free interest rate 2.07 % Expected volatility 43.58 % Expected life of options in years 6.5 Expected dividend yield — |
Summary of stock option activity | A summary of stock option activity for the six months ended June 30, 2017 is as follows: Shares Weighted - Weighted - Average Aggregate Outstanding as of December 31, 2016 1,376,549 $ 5.77 7.73 $ — Granted 206,500 0.41 Forfeited (72,415 ) 1.04 Expired (2,366 ) 11.69 Outstanding as of June 30, 2017 1,508,268 $ 5.25 7.46 $ — Expected to vest as of June 30, 2017 1,464,822 5.36 7.45 — Vested as of June 30, 2017 318,500 10.04 7.13 — |
Summary of performance-based restricted stock units | A summary of performance-based restricted stock units for the six months ended June 30, 2017 is as follows: Performance- Based Weighted - Average Outstanding as of December 31, 2016 207,500 $ 1.18 Granted 103,250 0.41 Vested (9,681 ) 1.23 Forfeited (68,819 ) 6.38 Outstanding as of June 30, 2017 232,250 $ 1.53 Expected to vest as of June 30, 2017 98,603 0.41 |
Summary of restricted common interests | The following table summarizes the activities of unvested Restricted Common Interests in JGW LLC for the six months ended June 30, 2017 : Unvested Restricted Common Interests Weighted - Average Grant - Date Fair Value Outstanding as of December 31, 2016 9,871 $ 9.06 Vested in period — — Forfeited (9,871 ) 9.06 Outstanding as of June 30, 2017 — $ — Expected to vest as of June 30, 2017 — — |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (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 $ (7,011 ) $ (10,794 ) $ (14,209 ) $ (26,880 ) 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 $ (7,011 ) $ (10,794 ) $ (14,209 ) $ (26,880 ) Denominator: Denominator for basic EPS - Weighted average shares of Class A common stock 15,775,321 15,662,540 15,753,431 15,618,643 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 15,775,321 15,662,540 15,753,431 15,618,643 Basic loss per share of Class A common stock $ (0.44 ) $ (0.69 ) $ (0.90 ) $ (1.72 ) Diluted loss per share of Class A common stock $ (0.44 ) $ (0.69 ) $ (0.90 ) $ (1.72 ) |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Operating data by reportable segment | Below is a summary of Segment Adjusted EBITDA, a measure of the Company's segments' profitability. Structured Settlements Home Lending Other Adjustments/Eliminations Subtotal Reportable Segments (In thousands) Three Months Ended June 30, 2017 Segment Adjusted EBITDA $ 3,978 $ 3,643 — $ 7,621 Three Months Ended June 30, 2016 Segment Adjusted EBITDA $ 3,069 $ 7,969 — $ 11,038 Six Months Ended June 30, 2017 Segment Adjusted EBITDA $ 4,846 $ 7,747 — $ 12,593 Six Months Ended June 30, 2016 Segment Adjusted EBITDA $ 4,777 $ 14,247 — $ 19,024 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 June 30, 2017 Total revenues $ 75,034 $ 26,375 — $ 101,409 Total assets 4,663,791 380,760 — 5,044,551 Three Months Ended June 30, 2016 Total revenues $ 55,962 $ 26,762 — $ 82,724 Total assets 4,807,618 366,078 — 5,173,696 Six Months Ended June 30, 2017 Total revenues $ 156,986 $ 49,123 — $ 206,109 Total assets 4,663,791 380,760 — 5,044,551 Six Months Ended June 30, 2016 Total revenues $ 100,661 $ 48,640 — $ 149,301 Total assets 4,807,618 366,078 — 5,173,696 Below is a reconciliation of Segments' Adjusted EBITDA, a measure of the Company's segments' profitability for the Company's two reportable segments, to loss before income taxes for the three months ended June 30, 2017 and 2016 : Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 (In thousands) Structured Settlements Segment Adjusted EBITDA $ 3,978 $ 3,069 Home Lending Segment Adjusted EBITDA 3,643 7,969 Subtotal Segment Adjusted EBITDA for Reportable Segments $ 7,621 $ 11,038 Securitization-related adjustments: Unrealized gain (loss) on finance receivables, long-term debt and derivatives post securitization due to changes in interest rates $ 391 $ (16,468 ) Interest income from securitized finance receivables 44,459 43,729 Interest income on retained interests in finance receivables (425 ) (5,923 ) Servicing income on securitized finance receivables (1,261 ) (1,299 ) Interest expense on long-term debt related to securitization and permanent financing trusts (44,257 ) (36,790 ) Professional fees relating to securitizations (1,368 ) (1,414 ) Credit (provision) for losses associated with permanently financed VIEs 239 (12 ) Subtotal of securitization related adjustments $ (2,222 ) $ (18,177 ) Other adjustments: Share based compensation $ (233 ) $ (323 ) Impact of pre-funding on unsecuritized finance receivables 29 (1,392 ) Lease termination, severance and other restructuring related expenses (4,900 ) (1,499 ) Debt modification expense — (1,807 ) Impairment charges and loss on disposal of assets — (5,483 ) Term loan interest expense (10,238 ) (10,104 ) Debt issuance (130 ) (25 ) Broker and legal fees incurred in connection with sale of finance receivables — (841 ) Depreciation and amortization (1,129 ) (1,163 ) Loss before income taxes $ (11,202 ) $ (29,776 ) Below is a reconciliation of Segments' Adjusted EBITDA, a measure of the Company's segments' profitability for the Company's two reportable segments, to loss before income taxes for the six months ended June 30, 2017 and 2016 : Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 (In thousands) Structured Settlements Segment Adjusted EBITDA $ 4,846 $ 4,777 Home Lending Segment Adjusted EBITDA 7,747 14,247 Subtotal Segment Adjusted EBITDA for Reportable Segments $ 12,593 $ 19,024 Securitization-related adjustments: Unrealized gain (loss) on finance receivables, long-term debt and derivatives post securitization due to changes in interest rates $ 3,974 $ (51,306 ) Interest income from securitized finance receivables 90,380 93,544 Interest income on retained interests in finance receivables (830 ) (11,757 ) Servicing income on securitized finance receivables (2,526 ) (2,639 ) Interest expense on long-term debt related to securitization and permanent financing trusts (89,668 ) (79,827 ) Swap termination expense related to securitization entities — (3,053 ) Professional fees relating to securitizations (2,706 ) (2,846 ) Credit (provision) for losses associated with permanently financed VIEs 197 (17 ) Subtotal of securitization related adjustments $ (1,179 ) $ (57,901 ) Other adjustments: Share based compensation $ (425 ) $ (630 ) Impact of pre-funding on unsecuritized finance receivables 3,199 2,861 Lease termination, severance and other restructuring related expenses (6,167 ) (2,739 ) Debt modification expense — (2,355 ) Impairment charges and loss on disposal of assets — (5,483 ) Term loan interest expense (20,246 ) (20,192 ) Debt issuance — (28 ) Broker and legal fees incurred in connection with sale of finance receivables (2,423 ) (1,555 ) Depreciation and amortization (2,267 ) (2,465 ) Loss before income taxes $ (16,915 ) $ (71,463 ) |
Cost Savings Activities (Tables
Cost Savings Activities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2016 $ 1,201 $ 90 $ 1,291 Payments (669 ) (90 ) (759 ) Adjustments 1,480 1,480 Balance at June 30, 2017 $ 2,012 $ — $ 2,012 |
Background, Basis of Presenta47
Background, Basis of Presentation and Significant Accounting Policies (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Number of reportable segments (in segments) | segment | 2 | ||||
Basis of Presentation [Line Items] | |||||
Total tax (benefit) | $ 892,000 | $ (6,266,000) | $ 4,853,000 | $ (12,905,000) | |
Revolving Credit Facility | New Warehouse Credit Facility | |||||
Basis of Presentation [Line Items] | |||||
Maximum borrowing capacity | 100,000,000 | $ 100,000,000 | |||
Commitment period (in years) | 2 years | ||||
The J.G. Wentworth Company | |||||
Basis of Presentation [Line Items] | |||||
Total tax (benefit) | 800,000 | (4,500,000) | $ 5,000,000 | (11,000,000) | |
Subsidiaries | |||||
Basis of Presentation [Line Items] | |||||
Total tax (benefit) | $ 100,000 | $ (1,800,000) | $ (100,000) | $ (1,900,000) | |
Merger Sub | |||||
Basis of Presentation [Line Items] | |||||
Voting interest acquired (as a percent) | 54.90% | 54.90% | 54.60% | ||
Non-controlling interest (as a percent) | 45.10% | 45.10% | 45.40% | ||
Weighted average economic interests by non-controlling owners (as a percent) | 45.30% | 45.40% | 45.30% | 45.60% |
Goodwill and Intangible Asset48
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
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 | $ 0 |
Goodwill and Intangible Asset49
Goodwill and Intangible Assets - Intangible assets subject to amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Accumulated Amortization | $ (23,644) | $ (23,644) | $ (22,778) | ||
Amortization of intangibles | 400 | $ 500 | 866 | $ 1,108 | |
Impairment charges | 0 | $ 5,483 | 0 | $ 5,483 | |
Structured Settlements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 21,804 | 21,804 | 21,804 | ||
Accumulated Amortization | (20,972) | (20,972) | (20,724) | ||
Impairment charges | 5,500 | ||||
Structured Settlements | Trade name | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of indefinite-lived intangible assets | 2,800 | ||||
Structured Settlements | Database | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 4,609 | 4,609 | 4,609 | ||
Accumulated Amortization | $ (4,414) | $ (4,414) | (4,356) | ||
Intangible assets, remaining amortization period (in years) | 3 years | ||||
Structured Settlements | Database And Customer Relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, remaining amortization period (in years) | 3 years | ||||
Structured Settlements | Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | $ 16,096 | $ 16,096 | 16,096 | ||
Accumulated Amortization | (15,829) | (15,829) | (15,750) | ||
Impairment charges | 2,700 | ||||
Impairment of definite-lived intangible assets | $ 2,700 | ||||
Intangible assets, remaining amortization period (in years) | 3 years | ||||
Structured Settlements | Domain names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | $ 486 | 486 | 486 | ||
Accumulated Amortization | (467) | (467) | (461) | ||
Structured Settlements | Trade name | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 613 | 613 | 613 | ||
Accumulated Amortization | (262) | (262) | (157) | ||
Impairment charges | $ 2,700 | ||||
Intangible assets, remaining amortization period (in years) | 3 years | ||||
Structured Settlements | Affinity relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 0 | $ 0 | 0 | ||
Accumulated Amortization | 0 | 0 | 0 | ||
Home Lending | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 10,642 | 10,642 | 10,642 | ||
Accumulated Amortization | (2,672) | (2,672) | (2,054) | ||
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 | Database | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 0 | 0 | 0 | ||
Accumulated Amortization | 0 | 0 | 0 | ||
Home Lending | Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 0 | 0 | 0 | ||
Accumulated Amortization | 0 | 0 | 0 | ||
Home Lending | Domain names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 0 | 0 | 0 | ||
Accumulated Amortization | 0 | 0 | 0 | ||
Home Lending | Trade name | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 1,095 | 1,095 | 1,095 | ||
Accumulated Amortization | (845) | (845) | (700) | ||
Home Lending | Affinity relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 9,547 | 9,547 | 9,547 | ||
Accumulated Amortization | $ (1,827) | $ (1,827) | $ (1,354) |
Goodwill and Intangible Asset50
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2017 | $ 877 |
2,018 | 1,560 |
2,019 | 1,035 |
2,020 | 957 |
2,021 | 954 |
2,022 | 954 |
Thereafter | 2,465 |
Total future amortization expense | $ 8,802 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2017 | Dec. 31, 2016 | Sep. 02, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | ||||
Assets and liabilities that are carried at fair value | ||||||||
Maximum recovery period of other receivables (in months) | 3 months | |||||||
Assets | ||||||||
Marketable securities, at fair value | $ 78,985,000 | $ 76,687,000 | ||||||
VIE and other finance receivables, at fair value | 4,292,631,000 | 4,157,037,000 | ||||||
Mortgage loans held for sale, at fair value | 230,448,000 | [1] | 232,770,000 | [1] | $ 228,229,000 | $ 124,508,000 | ||
Mortgage servicing rights, at fair value | [1] | 46,778,000 | 41,697,000 | |||||
Liabilities | ||||||||
VIE derivative liabilities, at fair value | 45,916,000 | 50,432,000 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 4,113,296,000 | 4,014,450,000 | ||||||
Total at Fair Value | ||||||||
Assets | ||||||||
Marketable securities, at fair value | 78,985,000 | 76,687,000 | ||||||
VIE and other finance receivables, at fair value | 4,292,631,000 | 4,157,037,000 | ||||||
Mortgage loans held for sale, at fair value | 230,448,000 | 232,770,000 | ||||||
Mortgage servicing rights, at fair value | 46,778,000 | 41,697,000 | ||||||
Total Assets | 4,662,287,000 | 4,514,922,000 | ||||||
Liabilities | ||||||||
VIE derivative liabilities, at fair value | 45,916,000 | 50,432,000 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 4,113,296,000 | 4,014,450,000 | ||||||
Total Liabilities | 4,159,212,000 | 4,064,882,000 | ||||||
Total at Fair Value | Interest rate lock commitments, at fair value | ||||||||
Assets | ||||||||
Derivative assets, at fair value | 11,256,000 | 6,072,000 | ||||||
Total at Fair Value | Forward sale commitments | ||||||||
Assets | ||||||||
Derivative assets, at fair value | 2,189,000 | 659,000 | ||||||
Quoted Prices in Active Markets for Identical Assets Level 1 | ||||||||
Assets | ||||||||
Marketable securities, at fair value | 76,684,000 | 74,421,000 | ||||||
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 | ||||||
Total Assets | 76,684,000 | 74,421,000 | ||||||
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 | ||||||
Total Liabilities | 0 | 0 | ||||||
Quoted Prices in Active Markets for Identical Assets Level 1 | Interest rate lock commitments, at fair value | ||||||||
Assets | ||||||||
Derivative assets, at fair value | 0 | 0 | ||||||
Quoted Prices in Active Markets for Identical Assets Level 1 | Forward sale commitments | ||||||||
Assets | ||||||||
Derivative assets, at fair value | 0 | 0 | ||||||
Significant Other Observable Inputs Level 2 | ||||||||
Assets | ||||||||
Marketable securities, at fair value | 2,301,000 | 2,266,000 | ||||||
VIE and other finance receivables, at fair value | 0 | 0 | ||||||
Mortgage loans held for sale, at fair value | 230,448,000 | 232,770,000 | ||||||
Mortgage servicing rights, at fair value | 0 | 0 | ||||||
Total Assets | 234,938,000 | 235,695,000 | ||||||
Liabilities | ||||||||
VIE derivative liabilities, at fair value | 45,916,000 | 50,432,000 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 0 | 0 | ||||||
Total Liabilities | 45,916,000 | 50,432,000 | ||||||
Significant Other Observable Inputs Level 2 | Interest rate lock commitments, at fair value | ||||||||
Assets | ||||||||
Derivative assets, at fair value | 0 | 0 | ||||||
Significant Other Observable Inputs Level 2 | Forward sale commitments | ||||||||
Assets | ||||||||
Derivative assets, at fair value | 2,189,000 | 659,000 | ||||||
Significant Unobservable Inputs Level 3 | ||||||||
Assets | ||||||||
Marketable securities, at fair value | 0 | 0 | ||||||
VIE and other finance receivables, at fair value | 4,292,631,000 | 4,157,037,000 | ||||||
Mortgage loans held for sale, at fair value | 0 | 0 | ||||||
Mortgage servicing rights, at fair value | 46,778,000 | 41,697,000 | ||||||
Total Assets | 4,350,665,000 | 4,204,806,000 | ||||||
Liabilities | ||||||||
VIE derivative liabilities, at fair value | 0 | 0 | ||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 4,113,296,000 | 4,014,450,000 | ||||||
Total Liabilities | 4,113,296,000 | 4,014,450,000 | ||||||
Significant Unobservable Inputs Level 3 | Interest rate lock commitments, at fair value | ||||||||
Assets | ||||||||
Derivative assets, at fair value | 11,256,000 | 6,072,000 | ||||||
Significant Unobservable Inputs Level 3 | Forward sale commitments | ||||||||
Assets | ||||||||
Derivative assets, at fair value | 0 | 0 | ||||||
VIE | ||||||||
Liabilities | ||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | $ 4,113,296,000 | $ 4,014,450,000 | ||||||
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 | $ 207,500,000 | |||||||
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) | 9.47% | 9.75% | ||||||
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 7 "Mortgage Loans Held for Sale, at Fair Value" and Note 8 "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 ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Quantitative information about fair value measurements | ||
Fair value of assets | $ 4,350,665,000 | $ 4,204,806,000 |
Interest rate lock commitments, at fair value | 4,350,665,000 | 4,204,806,000 |
Fair value of liabilities | 4,113,296,000 | 4,014,450,000 |
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | ||
Quantitative information about fair value measurements | ||
Fair value of liabilities | $ 4,113,296,000 | $ 4,014,450,000 |
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) | 1.68% | 1.47% |
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) | 12.00% | 11.91% |
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) | 3.89% | 4.25% |
VIE and other finance receivables, at fair value | ||
Quantitative information about fair value measurements | ||
Fair value of assets | $ 4,292,631,000 | $ 4,157,037,000 |
VIE and other finance receivables, at fair value | Discounted cash flow | Minimum | ||
Unobservable Input | ||
Discount rate (as a percent) | 3.05% | 3.16% |
VIE and other finance receivables, at fair value | Discounted cash flow | Maximum | ||
Unobservable Input | ||
Discount rate (as a percent) | 12.00% | 12.77% |
VIE and other finance receivables, at fair value | Discounted cash flow | Weighted Average | ||
Unobservable Input | ||
Discount rate (as a percent) | 3.95% | 4.32% |
Mortgage servicing rights, at fair value | ||
Quantitative information about fair value measurements | ||
Fair value of assets | $ 46,778,000 | $ 41,697,000 |
Mortgage servicing rights, at fair value | Discounted cash flow | Minimum | ||
Unobservable Input | ||
Discount rate (as a percent) | 9.50% | 9.50% |
Prepayment rate (as a percent) | 6.08% | 6.04% |
Cost of servicing | $ 65 | $ 65 |
Mortgage servicing rights, at fair value | Discounted cash flow | Maximum | ||
Unobservable Input | ||
Discount rate (as a percent) | 14.06% | 14.06% |
Prepayment rate (as a percent) | 22.88% | 21.82% |
Cost of servicing | $ 90 | $ 90 |
Mortgage servicing rights, at fair value | Discounted cash flow | Weighted Average | ||
Unobservable Input | ||
Discount rate (as a percent) | 10.06% | 10.11% |
Prepayment rate (as a percent) | 8.41% | 7.96% |
Cost of servicing | $ 72 | $ 73 |
Interest rate lock commitments, at fair value | ||
Quantitative information about fair value measurements | ||
Interest rate lock commitments, at fair value | $ 11,256,000 | $ 6,072,000 |
Interest rate lock commitments, at fair value | Internal model | Minimum | ||
Unobservable Input | ||
Pull through rate (as a percent) | 10.06% | 37.25% |
Interest rate lock commitments, at fair value | Internal model | Maximum | ||
Unobservable Input | ||
Pull through rate (as a percent) | 95.00% | 97.00% |
Interest rate lock commitments, at fair value | Internal model | Weighted Average | ||
Unobservable Input | ||
Pull through rate (as a percent) | 79.37% | 79.53% |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Assets Measured At Level 3 (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Changes in assets | ||
Balance at the beginning of the period | $ 4,204,806 | $ 4,420,368 |
Total included in earnings (losses): | ||
Unrealized gains | 185,686 | 237,902 |
Realized gain on sale of finance receivable | 522 | 54,219 |
Included in other comprehensive gain | 0 | 0 |
Purchases of finance receivables | 133,804 | 138,911 |
Interest accreted | 88,991 | 91,850 |
Payments received | (251,303) | (249,833) |
Sale of finance receivables | (5,769) | (212,122) |
Transfers to other balance sheet line items | (6,072) | (4,934) |
Transfers in (out) of Level 3 | 0 | 0 |
Balance at the end of the period | 4,350,665 | 4,476,361 |
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 | 185,686 | 237,902 |
VIE and other finance receivables, at fair value | ||
Changes in assets | ||
Balance at the beginning of the period | 4,157,037 | 4,386,147 |
Total included in earnings (losses): | ||
Unrealized gains | 169,349 | 221,770 |
Realized gain on sale of finance receivable | 522 | 54,219 |
Included in other comprehensive gain | 0 | 0 |
Purchases of finance receivables | 133,804 | 138,911 |
Interest accreted | 88,991 | 91,850 |
Payments received | (251,303) | (249,833) |
Sale of finance receivables | (5,769) | (212,122) |
Transfers to other balance sheet line items | 0 | 0 |
Transfers in (out) of Level 3 | 0 | 0 |
Balance at the end of the period | 4,292,631 | 4,430,942 |
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 | 169,349 | 221,770 |
Mortgage servicing rights, at fair value | ||
Changes in assets | ||
Balance at the beginning of the period | 41,697 | 29,287 |
Total included in earnings (losses): | ||
Unrealized gains | 5,081 | 1,839 |
Realized gain on sale of finance receivable | 0 | 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 | 0 |
Transfers to other balance sheet line items | 0 | 0 |
Transfers in (out) of Level 3 | 0 | 0 |
Balance at the end of the period | 46,778 | 31,126 |
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 | 5,081 | 1,839 |
Interest rate lock commitments, at fair value | ||
Changes in assets | ||
Balance at the beginning of the period | 6,072 | 4,934 |
Total included in earnings (losses): | ||
Unrealized gains | 11,256 | 14,293 |
Realized gain on sale of finance receivable | 0 | 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 | 0 |
Transfers to other balance sheet line items | (6,072) | (4,934) |
Transfers in (out) of Level 3 | 0 | 0 |
Balance at the end of the period | 11,256 | 14,293 |
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 | $ 11,256 | $ 14,293 |
Fair Value Measurements - Cha54
Fair Value Measurements - Changes in Liabilities Measured At Level 3 (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Changes in liabilities | ||
Transfers in (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 | 4,014,450 | 3,928,818 |
Unrealized losses | 121,832 | 266,517 |
Issuances | 136,784 | 5,670 |
Interest accreted | (3,354) | (15,695) |
Repayments | (156,416) | (155,004) |
Transfers in (out) of Level 3 | 0 | 0 |
Balance at the end of the period | 4,113,296 | 4,030,306 |
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 | $ 121,832 | $ 266,517 |
Fair Value Measurements - Reali
Fair Value Measurements - Realized and Unrealized Gain Included in Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
VIE and other finance receivables and long-term debt, at fair value | ||||
Realized and unrealized gains and losses included in earnings | ||||
Net gains included in revenues | $ 23,077 | $ 9,181 | $ 48,039 | $ 9,472 |
Unrealized (losses) gains relating to assets and long-term debt still held | 22,979 | (23,378) | 47,517 | (44,747) |
Mortgage servicing rights, at fair value | ||||
Realized and unrealized gains and losses included in earnings | ||||
Net gains included in revenues | 1,477 | 962 | 5,081 | 1,839 |
Unrealized (losses) gains relating to assets and long-term debt still held | 1,477 | 962 | 5,081 | 1,839 |
Interest rate lock commitments, at fair value | ||||
Realized and unrealized gains and losses included in earnings | ||||
Net gains included in revenues | 11,256 | 14,293 | 11,256 | 14,293 |
Unrealized (losses) gains relating to assets and long-term debt still held | $ 11,256 | $ 14,293 | $ 11,256 | $ 14,293 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Value and Carrying Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |||
Financial assets | |||||||
VIE and other finance receivables, at fair value | $ 4,292,631 | $ 4,157,037 | |||||
Other receivables, net of allowance for losses | 18,921 | 17,771 | |||||
Mortgage loans held for sale, at fair value | 230,448 | [1] | 232,770 | [1] | $ 228,229 | $ 124,508 | |
Mortgage servicing rights, at fair value | [1] | 46,778 | 41,697 | ||||
Marketable securities, at fair value | 78,985 | 76,687 | |||||
Financial liabilities | |||||||
Term loan payable | 436,056 | 431,872 | |||||
VIE derivative liabilities, at fair value | 45,916 | 50,432 | |||||
VIE borrowings under revolving credit facilities and other similar borrowings | 32,018 | 56,432 | |||||
Other borrowings under revolving credit facilities and other similar borrowings | 223,985 | 229,588 | |||||
VIE long-term debt | 60,509 | 62,939 | |||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 4,113,296 | 4,014,450 | |||||
Installment obligations payable | 78,985 | 76,687 | |||||
Estimated Fair Value | |||||||
Financial assets | |||||||
VIE and other finance receivables, at fair value | 4,292,631 | 4,157,037 | |||||
VIE and other finance receivables, net of allowance for losses | 84,534 | 88,300 | |||||
Other receivables, net of allowance for losses | 18,921 | 17,771 | |||||
Mortgage loans held for sale, at fair value | 230,448 | 232,770 | |||||
Mortgage servicing rights, at fair value | 46,778 | 41,697 | |||||
Marketable securities, at fair value | 78,985 | 76,687 | |||||
Financial liabilities | |||||||
Term loan payable | 212,029 | 242,730 | |||||
VIE derivative liabilities, at fair value | 45,916 | 50,432 | |||||
VIE borrowings under revolving credit facilities and other similar borrowings | 32,452 | 58,798 | |||||
Other borrowings under revolving credit facilities and other similar borrowings | 223,577 | 229,221 | |||||
VIE long-term debt | 56,558 | 57,268 | |||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 4,113,296 | 4,014,450 | |||||
Installment obligations payable | 78,985 | 76,687 | |||||
Estimated Fair Value | Interest rate lock commitments, at fair value | |||||||
Financial assets | |||||||
Derivative assets, at fair value | 11,256 | 6,072 | |||||
Estimated Fair Value | Forward sale commitments | |||||||
Financial assets | |||||||
Derivative assets, at fair value | 2,189 | 659 | |||||
Carrying Amount | |||||||
Financial assets | |||||||
VIE and other finance receivables, at fair value | 4,292,631 | 4,157,037 | |||||
VIE and other finance receivables, net of allowance for losses | 87,827 | 93,944 | |||||
Other receivables, net of allowance for losses | 18,921 | 17,771 | |||||
Mortgage loans held for sale, at fair value | 230,448 | 232,770 | |||||
Mortgage servicing rights, at fair value | 46,778 | 41,697 | |||||
Marketable securities, at fair value | 78,985 | 76,687 | |||||
Financial liabilities | |||||||
Term loan payable | 436,056 | 431,872 | |||||
VIE derivative liabilities, at fair value | 45,916 | 50,432 | |||||
VIE borrowings under revolving credit facilities and other similar borrowings | 32,018 | 56,432 | |||||
Other borrowings under revolving credit facilities and other similar borrowings | 223,985 | 229,588 | |||||
VIE long-term debt | 60,509 | 62,939 | |||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | 4,113,296 | 4,014,450 | |||||
Installment obligations payable | 78,985 | 76,687 | |||||
Carrying Amount | Interest rate lock commitments, at fair value | |||||||
Financial assets | |||||||
Derivative assets, at fair value | 11,256 | 6,072 | |||||
Carrying Amount | Forward sale commitments | |||||||
Financial assets | |||||||
Derivative assets, at fair value | $ 2,189 | $ 659 | |||||
[1] | Pledged as collateral to Other borrowings under revolving credit facilities and other similar borrowings. Refer to Note 7 "Mortgage Loans Held for Sale, at Fair Value" and Note 8 "Mortgage Servicing Rights, at Fair Value." |
VIE and Other Finance Receiva57
VIE and Other Finance Receivables, at Fair Value (Details) - USD ($) | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Apr. 30, 2016 | Feb. 29, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
VIE and other finance receivables, at fair market value | |||||||||||
Maturity value | $ 6,654,427,000 | $ 6,654,427,000 | $ 6,654,427,000 | $ 6,584,344,000 | |||||||
Unearned income | (2,361,796,000) | (2,361,796,000) | (2,361,796,000) | (2,427,307,000) | |||||||
Total VIE finance receivables at fair value | [1] | 4,276,786,000 | 4,276,786,000 | 4,276,786,000 | 4,143,903,000 | ||||||
Total VIE and other finance receivables, at fair value | 4,292,631,000 | 4,292,631,000 | 4,292,631,000 | 4,157,037,000 | |||||||
Unsecuritized finance receivables | 72,200,000 | 72,200,000 | 72,200,000 | 97,000,000 | |||||||
Gain on sale of finance receivables | 5,769,000 | $ 212,122,000 | |||||||||
Realized and unrealized gains (losses) on VIE and other finance receivables, long-term debt and derivatives | 23,728,000 | $ 6,623,000 | 52,831,000 | (3,234,000) | |||||||
Servicing fee income | 243,000 | $ 225,000 | 502,000 | $ 434,000 | |||||||
TRB Under Asset Sale Facility | |||||||||||
VIE and other finance receivables, at fair market value | |||||||||||
Maximum receivables to be sold under Asset Sale Facility | $ 50,000,000 | ||||||||||
Maximum receivables to be sold under Asset Sale Facility, increased amount to be sold upon mutual agreement | $ 75,000,000 | ||||||||||
Asset sale agreement, term (in years) | 1 year | ||||||||||
Balance of total receivable balance purchases | 2,100,000 | 8,700,000 | |||||||||
Gain on sale of finance receivables | 1,800,000 | 5,800,000 | |||||||||
Realized and unrealized gains (losses) on VIE and other finance receivables, long-term debt and derivatives | 100,000 | 500,000 | |||||||||
TRB Under Second Asset Sale Facility | |||||||||||
VIE and other finance receivables, at fair market value | |||||||||||
Maximum receivables to be sold under Asset Sale Facility | 5,000,000 | 5,000,000 | 5,000,000 | ||||||||
Maximum receivables to be sold under Asset Sale Facility, increased amount to be sold upon mutual agreement | $ 25,000,000 | 25,000,000 | 25,000,000 | ||||||||
Asset sale agreement, term (in years) | 1 year | ||||||||||
VIE and other finance receivables, at fair value | |||||||||||
VIE and other finance receivables, at fair market value | |||||||||||
Balance of total receivable balance purchases | $ 81,300,000 | $ 115,800,000 | $ 151,500,000 | ||||||||
Gain on sale of finance receivables | 50,800,000 | 70,000,000 | 91,300,000 | ||||||||
Realized and unrealized gains (losses) on VIE and other finance receivables, long-term debt and derivatives | $ 13,900,000 | $ 18,600,000 | $ 21,700,000 | ||||||||
Other Finance Receivables | |||||||||||
VIE and other finance receivables, at fair market value | |||||||||||
Unencumbered | $ 15,845,000 | 15,845,000 | 15,845,000 | 13,134,000 | |||||||
$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) | JGW V | |||||||||||
VIE and other finance receivables, at fair market value | |||||||||||
Maximum borrowing capacity | 300,000,000 | 300,000,000 | 300,000,000 | ||||||||
VIE | |||||||||||
VIE and other finance receivables, at fair market value | |||||||||||
Total VIE finance receivables at fair value | 4,276,786,000 | 4,276,786,000 | 4,276,786,000 | 4,143,903,000 | |||||||
VIE | VIE securitization debt | |||||||||||
VIE and other finance receivables, at fair market value | |||||||||||
Total VIE finance receivables at fair value | 4,220,418,000 | 4,220,418,000 | 4,220,418,000 | 4,060,069,000 | |||||||
VIE | $100.0 million credit facility (JGW-S III) | |||||||||||
VIE and other finance receivables, at fair market value | |||||||||||
Total VIE finance receivables at fair value | 35,280,000 | 35,280,000 | 35,280,000 | 27,966,000 | |||||||
VIE | $300.0 million credit facility (JGW V) | |||||||||||
VIE and other finance receivables, at fair market value | |||||||||||
Total VIE finance receivables at fair value | $ 21,088,000 | $ 21,088,000 | $ 21,088,000 | $ 55,868,000 | |||||||
[1] | Refer to Note 5 "VIE and Other Finance Receivables, at Fair Value" and Note 6 "VIE and Other Finance Receivables, net of Allowance for Losses" for further details on assets pledged as collateral. |
VIE and Other Finance Receiva58
VIE and Other Finance Receivables, net of Allowance for Losses (Details) - VIE and Other Finance Receivables, net - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivables, gross | $ 98,829 | $ 105,028 | ||||
Less: allowance for losses | (11,002) | $ (11,121) | (11,084) | $ (10,215) | $ (10,310) | $ (10,366) |
Finance receivables, net | 87,827 | 93,944 | 100,029 | |||
Structured settlements and annuities | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivable before unearned income or deferred revenue | 66,172 | 67,872 | ||||
Less: unearned income or deferred revenue | (40,391) | (42,030) | ||||
Finance receivables, gross | 25,781 | 25,842 | ||||
Less: allowance for losses | (93) | (93) | (93) | (68) | (69) | (69) |
Finance receivables, net | 25,688 | 25,816 | ||||
Lottery winnings | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivable before unearned income or deferred revenue | 60,721 | 63,957 | ||||
Less: unearned income or deferred revenue | (15,254) | (16,799) | ||||
Finance receivables, gross | 45,467 | 47,158 | ||||
Less: allowance for losses | 0 | 0 | 0 | 0 | 0 | 0 |
Finance receivables, net | 45,467 | 49,164 | ||||
Pre-settlement funding transactions | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivable before unearned income or deferred revenue | 27,508 | 31,853 | ||||
Less: unearned income or deferred revenue | (340) | (441) | ||||
Finance receivables, gross | 27,168 | 31,412 | ||||
Less: allowance for losses | (10,625) | (10,744) | (10,707) | (9,863) | (9,957) | (10,013) |
Finance receivables, net | 16,543 | 24,654 | ||||
Attorney cost financing | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivable before unearned income or deferred revenue | 413 | 616 | ||||
Less: unearned income or deferred revenue | 0 | 0 | ||||
Finance receivables, gross | 413 | 616 | ||||
Less: allowance for losses | (284) | $ (284) | $ (284) | (284) | $ (284) | $ (284) |
Finance receivables, net | $ 129 | $ 395 |
VIE and Other Finance Receiva59
VIE and Other Finance Receivables, net of Allowance for Losses - Encumbrances (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Encumbrances on financing receivable | |||
Not encumbered | $ 20,423 | $ 24,590 | |
VIE and Other Finance Receivables, net | |||
Encumbrances on financing receivable | |||
Finance receivables, net | 87,827 | 93,944 | $ 100,029 |
Non-VIE unencumbered assets | |||
Encumbrances on financing receivable | |||
Not encumbered | 7,986 | 8,619 | |
VIE | VIE and Other Finance Receivables, net | |||
Encumbrances on financing receivable | |||
Total VIE finance receivables, net of allowances | 67,404 | 69,354 | |
Not encumbered | 12,437 | 15,971 | |
VIE | VIE and Other Finance Receivables, net | VIE securitization debt | |||
Encumbrances on financing receivable | |||
Total VIE finance receivables, net of allowances | $ 67,404 | $ 69,354 |
VIE and Other Finance Receiva60
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 | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Activity in the allowance for losses | |||||
Balance at beginning of year | $ 11,121 | $ 10,310 | $ 11,084 | $ 10,366 | |
Provision (credit) for loss | 474 | 771 | 1,274 | 1,668 | |
Charge-offs | (596) | (873) | (1,377) | (1,951) | |
Recoveries | 3 | 7 | 21 | 132 | |
Balance at end of year | 11,002 | 10,215 | 11,002 | 10,215 | |
Individually evaluated for impairment | 2,354 | 2,543 | 2,354 | 2,543 | |
Collectively evaluated for impairment | 8,648 | 7,672 | 8,648 | 7,672 | |
Individually evaluated for impairment | 71,406 | 75,436 | 71,406 | 75,436 | |
Collectively evaluated for impairment | 16,421 | 24,593 | 16,421 | 24,593 | |
Finance receivables, net | 87,827 | 100,029 | 87,827 | 100,029 | $ 93,944 |
Structured settlements and annuities | |||||
Activity in the allowance for losses | |||||
Balance at beginning of year | 93 | 69 | 93 | 69 | |
Provision (credit) for loss | 12 | 22 | 7 | (103) | |
Charge-offs | (15) | (30) | (15) | (30) | |
Recoveries | 3 | 7 | 8 | 132 | |
Balance at end of year | 93 | 68 | 93 | 68 | |
Individually evaluated for impairment | 93 | 68 | 93 | 68 | |
Collectively evaluated for impairment | 0 | 0 | 0 | 0 | |
Individually evaluated for impairment | 25,688 | 25,816 | 25,688 | 25,816 | |
Collectively evaluated for impairment | 0 | 0 | 0 | 0 | |
Finance receivables, net | 25,688 | 25,816 | 25,688 | 25,816 | |
Lottery winnings | |||||
Activity in the allowance for losses | |||||
Balance at beginning of year | 0 | 0 | 0 | 0 | |
Provision (credit) for loss | 0 | 4 | (13) | 4 | |
Charge-offs | 0 | (4) | 0 | (4) | |
Recoveries | 0 | 0 | 13 | 0 | |
Balance at end of year | 0 | 0 | 0 | 0 | |
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Collectively evaluated for impairment | 0 | 0 | 0 | 0 | |
Individually evaluated for impairment | 45,467 | 49,164 | 45,467 | 49,164 | |
Collectively evaluated for impairment | 0 | 0 | 0 | 0 | |
Finance receivables, net | 45,467 | 49,164 | 45,467 | 49,164 | |
Pre-settlement funding transactions | |||||
Activity in the allowance for losses | |||||
Balance at beginning of year | 10,744 | 9,957 | 10,707 | 10,013 | |
Provision (credit) for loss | 462 | 745 | 1,280 | 1,767 | |
Charge-offs | (581) | (839) | (1,362) | (1,917) | |
Recoveries | 0 | 0 | 0 | 0 | |
Balance at end of year | 10,625 | 9,863 | 10,625 | 9,863 | |
Individually evaluated for impairment | 1,977 | 2,191 | 1,977 | 2,191 | |
Collectively evaluated for impairment | 8,648 | 7,672 | 8,648 | 7,672 | |
Individually evaluated for impairment | 122 | 61 | 122 | 61 | |
Collectively evaluated for impairment | 16,421 | 24,593 | 16,421 | 24,593 | |
Finance receivables, net | 16,543 | 24,654 | 16,543 | 24,654 | |
Attorney cost financing | |||||
Activity in the allowance for losses | |||||
Balance at beginning of year | 284 | 284 | 284 | 284 | |
Provision (credit) for loss | 0 | 0 | 0 | 0 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
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 | 129 | 395 | 129 | 395 | |
Collectively evaluated for impairment | 0 | 0 | 0 | 0 | |
Finance receivables, net | $ 129 | $ 395 | $ 129 | $ 395 |
VIE and Other Finance Receiva61
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | $ 27,508 | $ 31,853 |
2,009 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 457 | 690 |
2,010 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 1,707 | 1,848 |
2,011 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 3,291 | 3,891 |
2,012 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 3,907 | 4,279 |
2,013 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 3,446 | 5,390 |
2,014 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | 12,451 | 13,085 |
2,015 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross financing receivable | $ 2,249 | $ 2,670 |
VIE and Other Finance Receiva62
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 385 | $ 313 |
Current | 70,770 | 72,594 |
VIE and Other Finance Receivables, net | 71,155 | 72,907 |
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 | 9 | 11 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7 | 9 |
Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 369 | 293 |
Structured settlements and annuities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 133 | 104 |
Current | 25,555 | 25,645 |
VIE and Other Finance Receivables, net | 25,688 | 25,749 |
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 | 7 | 11 |
Structured settlements and annuities | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6 | 5 |
Structured settlements and annuities | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 120 | 88 |
Lottery winnings | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 252 | 209 |
Current | 45,215 | 46,949 |
VIE and Other Finance Receivables, net | 45,467 | 47,158 |
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 | 2 | 0 |
Lottery winnings | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | 4 |
Lottery winnings | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 249 | $ 205 |
VIE and Other Finance Receiva63
VIE and Other Finance Receivables, net of Allowance for Losses - Narrative (Details) - VIE and Other Finance Receivables, net - USD ($) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Receivable allowance | $ 11,002 | $ 11,121 | $ 11,084 | $ 10,215 | $ 10,310 | $ 10,366 |
Pre-settlement funding transactions | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Recorded investment | 13,000 | 14,700 | ||||
Receivable allowance | 10,625 | 10,744 | 10,707 | 9,863 | 9,957 | 10,013 |
Attorney cost financing | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Recorded investment | 400 | 400 | ||||
Receivable allowance | $ 284 | $ 284 | $ 284 | $ 284 | $ 284 | $ 284 |
Pre-settlement funding transactions and attorney cost financing | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Minimum receivable term (in years) | 1 year |
Mortgage Loans Held for Sale,64
Mortgage Loans Held for Sale, at Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | ||||
Receivables [Abstract] | |||||||
Unpaid principal balance of mortgage loans held for sale | $ 223,563 | $ 230,261 | |||||
Fair value adjustment | 6,885 | 2,509 | |||||
Mortgage loans held for sale, at fair value | $ 232,770 | [1] | $ 124,508 | 230,448 | [1] | 232,770 | [1] |
Increase (Decrease) in Mortgage Loans Held-for-sale [Roll Forward] | |||||||
Balance at beginning of period | 232,770 | [1] | 124,508 | ||||
Originations and purchases of mortgage loans held for sale, net of fees | 1,529,730 | 1,426,472 | |||||
Proceeds from sale of and principal payments on mortgage loans held for sale | (1,546,446) | (1,357,105) | |||||
Net change in fair value of mortgage loans held for sale | 14,394 | 34,354 | |||||
Balance at end of period | $ 230,448 | [1] | 228,229 | ||||
Real Estate Loan | Government National Mortgage Association (GNMA) Insured Loans | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Duration for delinquency consideration for Ginnie Mae pools (in days) | 90 days | ||||||
Principal amount outstanding of Ginnie Mae loans | $ 36,100 | $ 39,700 | |||||
Mortgage loans considered delinquent or defaulted | $ 7,600 | $ 12,600 | |||||
[1] | Pledged as collateral to Other borrowings under revolving credit facilities and other similar borrowings. Refer to Note 7 "Mortgage Loans Held for Sale, at Fair Value" and Note 8 "Mortgage Servicing Rights, at Fair Value." |
Mortgage Loans Held for Sale,65
Mortgage Loans Held for Sale, at Fair Value - Loan Indemnification Activity (Details) - Indemnification Agreement - Other Liabilities - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Indemnification Asset [Roll Forward] | ||
Balance at beginning of period | $ 3,010 | $ 2,575 |
Provision for loan servicing and repurchases | 378 | 865 |
Write-offs, net | (908) | (964) |
Balance at end of period | $ 2,480 | $ 2,476 |
Mortgage Servicing Rights, at66
Mortgage Servicing Rights, at Fair Value (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Balance at beginning of period | [1] | $ 41,697,000 | ||
Balance at end of period | [1] | 46,778,000 | $ 41,697,000 | |
Unpaid principal balance of mortgage loans serviced | $ 4,500,000,000 | $ 4,100,000,000 | ||
Minimum | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Discount rates (as a percent) | 9.50% | 9.50% | ||
Annual prepayment speeds (as a percent) | 6.08% | 6.04% | ||
Cost of servicing | $ 65 | $ 65 | ||
Maximum | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Discount rates (as a percent) | 14.06% | 14.06% | ||
Annual prepayment speeds (as a percent) | 22.88% | 21.82% | ||
Cost of servicing | $ 90 | $ 90 | ||
Weighted Average | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Discount rates (as a percent) | 10.06% | 10.11% | ||
Annual prepayment speeds (as a percent) | 8.41% | 7.96% | ||
Cost of servicing | $ 72 | $ 73 | ||
Mortgage servicing rights, at fair value | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Balance at beginning of period | 41,697,000 | $ 29,287,000 | 29,287,000 | |
Additions due to loans sold, servicing retained | 8,111,000 | 6,103,000 | ||
Reductions due to loan payoffs and foreclosures | (3,963,000) | (2,939,000) | ||
Fair value adjustment | 933,000 | (1,325,000) | ||
Balance at end of period | $ 46,778,000 | $ 31,126,000 | $ 41,697,000 | |
[1] | Pledged as collateral to Other borrowings under revolving credit facilities and other similar borrowings. Refer to Note 7 "Mortgage Loans Held for Sale, at Fair Value" and Note 8 "Mortgage Servicing Rights, at Fair Value." |
Mortgage Servicing Rights, at67
Mortgage Servicing Rights, at Fair Value - Sensitivity Analysis (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Transfers and Servicing [Abstract] | ||
Discount Rate: Effect on value - 100 basis points adverse change | $ (1,785) | $ (1,612) |
Discount Rate: Effect on value - 100 basis points adverse change (as a percent) | 1.00% | |
Discount Rate: Effect on value - 200 basis points adverse change | $ (3,444) | (3,109) |
Prepayment Speeds: Effect on value - 5% adverse change | $ (820) | (686) |
Prepayment Speeds: Effect on value - 5% adverse change (as a percent) | 5.00% | |
Prepayment Speeds: Effect on value - 10% adverse change | $ (1,605) | (1,370) |
Cost of Servicing: Effect on value - 5% adverse change | (351) | (327) |
Cost of Servicing: Effect on value - 10% adverse change | $ (702) | $ (653) |
Term Loan Payable (Details)
Term Loan Payable (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Term loan payable | |||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 223,985,000 | $ 223,985,000 | $ 229,588,000 | ||
Equity free from limitations on the payment of dividends | 300,000 | ||||
Total stockholders' equity | $ (61,751,000) | $ (61,751,000) | $ (40,408,000) | ||
Maximum | |||||
Term loan payable | |||||
Leverage Ratio | 4.75 | 4.75 | 4.75 | ||
New term loan | |||||
Term loan payable | |||||
Loan amount | $ 449,500,000 | $ 449,500,000 | $ 449,500,000 | ||
Interest rate (as a percent) | 7.13% | 7.13% | 7.00% | ||
Interest expense | $ 10,200,000 | $ 10,100,000 | $ 20,200,000 | $ 20,200,000 | |
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 Revolvin69
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2017 | May 31, 2016 | Jan. 31, 2016 | May 31, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Apr. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | |||||||||||
Total VIE borrowings under revolving credit facilities and other similar borrowings | $ 32,018,000 | $ 32,018,000 | $ 56,432,000 | ||||||||
Debt issuance costs | 0 | $ 1,500,000 | |||||||||
JGW-S III | Variable funding note facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Total VIE borrowings under revolving credit facilities and other similar borrowings | 20,704,000 | 20,704,000 | 18,912,000 | ||||||||
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 | 11,314,000 | 11,314,000 | $ 37,520,000 | ||||||||
VIE | Revolving credit facilities and other similar borrowings | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest expense related to borrowings | $ 1,700,000 | $ 2,700,000 | $ 3,400,000 | 5,200,000 | |||||||
Weighted average interest rate on outstanding borrowings (as a percent) | 5.83% | 5.83% | 5.00% | ||||||||
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% | |||||||||
Borrowings, 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 | ||||||||
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 | Subsequent Event | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 200,000,000 | ||||||||||
Debt issuance costs | $ 400,000 | ||||||||||
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 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate floor (as a percent) | 3.30% | 3.30% | 3.30% | ||||||||
VIE | JGW V | Multi-tranche and lender credit facility | Tranche A | LIBOR | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate (as a percent) | 4.35% | 4.35% | 3.92% | ||||||||
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) | 4.69% | 4.69% | 4.43% | ||||||||
VIE | JGW V | Multi-tranche and lender credit facility | Tranche B | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate floor (as a percent) | 5.80% | 5.80% | 5.80% | ||||||||
VIE | JGW V | Multi-tranche and lender credit facility | Tranche B | LIBOR | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate (as a percent) | 6.85% | 6.85% | 6.42% | ||||||||
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% | ||||||||||
Debt instrument, termination fee | $ 0 | ||||||||||
Unamortized debt issuance costs | $ 500,000 | ||||||||||
VIE | JGW VII | Credit facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||||||
Unamortized debt issuance costs | $ 1,100,000 |
Other Borrowings Under Revolv70
Other Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Sep. 15, 2017 | Jul. 31, 2017 | Aug. 31, 2016 | Jul. 31, 2016 | |
Line of Credit Facility [Line Items] | |||||||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 223,985,000 | $ 223,985,000 | $ 229,588,000 | ||||||
Revolving Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest rate (as a percent) | 3.60% | 3.60% | 2.86% | ||||||
Interest expense | $ 1,800,000 | $ 1,500,000 | $ 3,000,000 | $ 2,300,000 | |||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring August 15, 2018, at $100.0 million | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Other borrowings under revolving credit facilities and other similar borrowings | 61,227,000 | 61,227,000 | $ 39,140,000 | ||||||
Revolving commitment | $ 100,000,000 | $ 100,000,000 | |||||||
Interest rate floor (as a percent) | 2.50% | 2.50% | |||||||
Interest rate (as a percent) | 3.42% | 3.42% | 2.97% | ||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring August 15, 2018, at $100.0 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 | $ 54,832,000 | $ 54,832,000 | $ 39,347,000 | ||||||
Revolving commitment | $ 90,000,000 | $ 90,000,000 | |||||||
Interest rate floor (as a percent) | 3.10% | 3.10% | |||||||
Interest rate (as a percent) | 3.77% | 3.77% | 3.32% | ||||||
Non-usage fee (as a percent) | 0.25% | ||||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring September 14, 2017 | Scenario, Forecast | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Revolving commitment | $ 50,000,000 | ||||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring September 14, 2017 | Subsequent Event | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Revolving commitment | $ 80,000,000 | ||||||||
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 February 9, 2018 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 63,354,000 | $ 63,354,000 | $ 65,565,000 | ||||||
Revolving commitment | $ 95,000,000 | $ 95,000,000 | |||||||
Interest rate floor (as a percent) | 0.00% | 0.00% | |||||||
Interest rate (as a percent) | 3.52% | 3.52% | 3.07% | ||||||
Non-usage fee (as a percent) | 0.25% | ||||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring February 9, 2018 | 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 May 11, 2018 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 40,572,000 | $ 40,572,000 | $ 0 | ||||||
Revolving commitment | $ 50,000,000 | $ 50,000,000 | |||||||
Interest rate (as a percent) | 3.62% | 3.62% | |||||||
Non-usage fee (as a percent) | 0.25% | ||||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring May 11, 2018 | LIBOR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Margin on variable rate (as a percent) | 2.45% | ||||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring February 5, 2017 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Other borrowings under revolving credit facilities and other similar borrowings | $ 0 | $ 0 | 13,057,000 | ||||||
Revolving commitment | $ 25,000,000 | ||||||||
Interest rate floor (as a percent) | 2.50% | ||||||||
Interest rate (as a percent) | 2.87% | ||||||||
Non-usage fee (as a percent) | 0.25% | ||||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Expiring February 5, 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 Terminated in March 2017 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Other borrowings under revolving credit facilities and other similar borrowings | 0 | 0 | $ 68,479,000 | ||||||
Revolving commitment | $ 100,000,000 | ||||||||
Interest rate (as a percent) | 2.97% | ||||||||
Warehouse Line of Credit | Credit facility | Line Of Credit Agreement Terminated in March 2017 | 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 August 15, 2018 | |||||||||
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 floor (as a percent) | 5.00% | 5.00% | |||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | ||||||
Non-usage fee (as a percent) | 0.50% | ||||||||
Current borrowing capacity | $ 4,000,000 | $ 4,000,000 | |||||||
Operating Line Of Credit | Credit facility | Line Of Credit Agreement Expiring August 15, 2018 | 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) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2012USD ($) | Dec. 31, 2010USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2011USD ($)note | Dec. 31, 2016USD ($) | Nov. 30, 2010USD ($) | |
VIE long-term debt | |||||||||
VIE long-term debt | $ 60,509,000 | $ 60,509,000 | $ 62,939,000 | ||||||
VIE | LCSS III, LLC | LCSS, LLC | |||||||||
VIE long-term debt | |||||||||
Ownership (as a percent) | 100.00% | ||||||||
VIE | LCSS II | LCSS III, LLC | |||||||||
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 | 1,500,000 | $ 4,300,000 | 3,100,000 | $ 8,600,000 | |||||
PLMT Permanent Facility | |||||||||
VIE long-term debt | |||||||||
VIE long-term debt | 35,743,000 | 35,743,000 | $ 37,630,000 | ||||||
PLMT Permanent Facility | VIE | |||||||||
VIE long-term debt | |||||||||
Face amount of debt | $ 75,000,000 | $ 75,000,000 | |||||||
Interest rate (as a percent) | 2.30% | 2.30% | 1.87% | ||||||
PLMT Permanent Facility | VIE | LIBOR | |||||||||
VIE long-term debt | |||||||||
Margin added to variable interest rate basis (as a percent) | 1.25% | ||||||||
Long-Term Pre-settlement Facility | |||||||||
VIE long-term debt | |||||||||
VIE long-term debt | $ 5,158,000 | $ 5,158,000 | $ 5,427,000 | ||||||
Long-Term Pre-settlement Facility | VIE | |||||||||
VIE long-term debt | |||||||||
Face amount of debt | $ 45,100,000 | ||||||||
Number of fixed rate notes issued (in notes) | note | 3 | ||||||||
Interest rate (as a percent) | 9.25% | 9.25% | |||||||
2012-A Facility | |||||||||
VIE long-term debt | |||||||||
VIE long-term debt | 680,000 | 680,000 | 708,000 | ||||||
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 | 11,769,000 | 11,769,000 | 12,015,000 | ||||||
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 II | |||||||||
VIE long-term debt | |||||||||
Face amount of debt | $ 7,200,000 | ||||||||
Interest rate (as a percent) | 10.00% |
VIE Long-Term Debt Issued by 72
VIE Long-Term Debt Issued by Securitization and Permanent Financing Trusts, at Fair Value (Details) | Mar. 22, 2017USD ($) | Oct. 26, 2016USD ($) | Sep. 02, 2016USD ($)securitization | Mar. 31, 2017USD ($)securitization | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($)securitization | Dec. 31, 2016USD ($) |
Term loan payable | |||||||||
Number of asset securitization transactions completed (in securitizations) | securitization | 0 | ||||||||
Fair Value | $ 4,113,296,000 | $ 4,113,296,000 | $ 4,014,450,000 | ||||||
Debt issuance | 127,000 | $ 545,000 | 2,420,000 | $ 548,000 | |||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair value | |||||||||
Term loan payable | |||||||||
Interest expense related to borrowings | 42,700,000 | $ 35,200,000 | 86,500,000 | $ 76,700,000 | |||||
VIE | |||||||||
Term loan payable | |||||||||
Outstanding Principal | 3,886,527,000 | 3,886,527,000 | 3,906,159,000 | ||||||
Fair Value | 4,113,296,000 | 4,113,296,000 | 4,014,450,000 | ||||||
VIE | Securitization trusts | |||||||||
Term loan payable | |||||||||
Outstanding Principal | 3,448,320,000 | 3,448,320,000 | 3,460,820,000 | ||||||
Fair Value | 3,635,429,000 | 3,635,429,000 | 3,550,503,000 | ||||||
VIE | Permanent financing VIEs | |||||||||
Term loan payable | |||||||||
Outstanding Principal | 438,207,000 | 438,207,000 | 445,339,000 | ||||||
Fair Value | $ 477,867,000 | $ 477,867,000 | $ 463,947,000 | ||||||
VIE | Securitization Debt 2017-1 | |||||||||
Term loan payable | |||||||||
Bonds issued | $ 131,800,000 | ||||||||
Receivables securitized | $ 2,129,000 | ||||||||
Deal discount rate (as a percent) | 4.35% | ||||||||
Retained interest (as a percent) | 5.50% | ||||||||
VIE | Securitization Debt 2017-1 | Aaa | |||||||||
Term loan payable | |||||||||
Class allocation (as a percent) | 84.75% | ||||||||
VIE | Securitization Debt 2017-1 | Baa2 | |||||||||
Term loan payable | |||||||||
Class allocation (as a percent) | 9.75% | ||||||||
VIE | Securitization Debt 2016-1 | |||||||||
Term loan payable | |||||||||
Bonds issued | $ 117,300,000 | ||||||||
Receivables securitized | $ 1,943,000 | ||||||||
Deal discount rate (as a percent) | 3.89% | ||||||||
Retained interest (as a percent) | 5.50% | ||||||||
VIE | Securitization Debt 2016-1 | Aaa | |||||||||
Term loan payable | |||||||||
Class allocation (as a percent) | 84.00% | ||||||||
VIE | Securitization Debt 2016-1 | Baa2 | |||||||||
Term loan payable | |||||||||
Class allocation (as a percent) | 10.50% | ||||||||
VIE | VIE long-term debt issued by securitization and permanent financing trusts, at fair value | |||||||||
Term loan payable | |||||||||
Number of asset securitization transactions completed (in securitizations) | securitization | 36 | ||||||||
Face amount of debt | $ 207,500,000 | ||||||||
Debt issuance | $ 200,000 | ||||||||
VIE | Residual Term Facility | |||||||||
Term loan payable | |||||||||
Number of asset securitization transactions completed (in securitizations) | securitization | 1 | ||||||||
Face amount of debt | $ 2,300,000 | ||||||||
Repayments of lines of credit | $ 131,400,000 |
Derivative Financial Instrume73
Derivative Financial Instruments - Interest Rate Swaps (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($)swap | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)swap | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)swap | |
Derivative [Line Items] | |||||
Unrealized gain (loss) | $ 4,610,000 | $ (8,168,000) | |||
Fair Market Value | $ (45,916,000) | (45,916,000) | $ (50,432,000) | ||
Interest Rate Swaps | |||||
Derivative [Line Items] | |||||
Notional | 314,997,000 | 314,997,000 | 337,704,000 | ||
Fair Market Value | $ (45,916,000) | $ (45,916,000) | $ (50,432,000) | ||
Interest Rate Swaps | Long-term debt issued by securitization and permanent financing trusts | VIE | |||||
Derivative [Line Items] | |||||
Number of derivatives held (in swaps) | swap | 8 | 8 | 8 | ||
Interest Rate Swaps | Hedge accounting has not been applied | |||||
Derivative [Line Items] | |||||
Number of outstanding interest rate swaps (in swaps) | swap | 0 | 0 | 0 | ||
Terminated notional value | $ 0 | $ 21,200,000 | $ 21,800,000 | 75,200,000 | |
Total gain (loss) on termination of derivative | 200,000 | (1,500,000) | |||
Unrealized gain (loss) | (200,000) | 0 | 0 | ||
Interest Rate Swaps | Hedge accounting has not been applied | PLMT | |||||
Derivative [Line Items] | |||||
Notional | 41,863,000 | 41,863,000 | $ 43,792,000 | ||
Fair Market Value | (6,155,000) | (6,155,000) | (6,781,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | VIE | PSS | |||||
Derivative [Line Items] | |||||
Notional | 132,239,000 | 132,239,000 | 137,361,000 | ||
Fair Market Value | (20,814,000) | (20,814,000) | (22,190,000) | ||
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) | 700,000 | (300,000) | 2,600,000 | (2,800,000) | |
Notional | $ 140,900,000 | $ 140,900,000 | $ 156,600,000 | ||
Floating rate basis | one-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 | ||||
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 | 18 years 7 months | ||||
Interest Rate Swaps | Hedge accounting has not been applied | Borrowings under PSS and PLMT | |||||
Derivative [Line Items] | |||||
Terminated notional value | $ 0 | 13,800,000 | |||
Total gain (loss) on termination of derivative | (3,100,000) | ||||
Unrealized gain (loss) | $ (100,000) | $ (2,100,000) | $ 2,000,000 | $ (5,300,000) | |
Number of derivatives held (in swaps) | swap | 135 | 135 | 137 | ||
Notional | $ 173,700,000 | $ 173,700,000 | $ 181,200,000 | ||
Floating rate basis | one-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) | 4.90% | 4.90% | |||
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 1 month | ||||
Interest Rate Swaps | Hedge accounting has not been applied | 2004-A A-1 | 321 Henderson I | |||||
Derivative [Line Items] | |||||
Notional | $ 17,690,000 | $ 17,690,000 | 20,265,000 | ||
Fair Market Value | (1,311,000) | (1,311,000) | (1,610,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 2005-1 A-1 | 321 Henderson I | |||||
Derivative [Line Items] | |||||
Notional | 35,366,000 | 35,366,000 | 39,548,000 | ||
Fair Market Value | (3,849,000) | (3,849,000) | (4,495,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 2006-1 A-1 | 321 Henderson II | |||||
Derivative [Line Items] | |||||
Notional | 6,615,000 | 6,615,000 | 7,969,000 | ||
Fair Market Value | (571,000) | (571,000) | (714,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 2006-2 A-1 | 321 Henderson II | |||||
Derivative [Line Items] | |||||
Notional | 10,623,000 | 10,623,000 | 12,011,000 | ||
Fair Market Value | (1,437,000) | (1,437,000) | (1,654,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 2006-3 A-1 | 321 Henderson II | |||||
Derivative [Line Items] | |||||
Notional | 9,997,000 | 9,997,000 | 11,832,000 | ||
Fair Market Value | (1,200,000) | (1,200,000) | (1,394,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 2006-4 A-1 | 321 Henderson II | |||||
Derivative [Line Items] | |||||
Notional | 10,509,000 | 10,509,000 | 12,378,000 | ||
Fair Market Value | (746,000) | (746,000) | (965,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 2007-1 A-2 | 321 Henderson II | |||||
Derivative [Line Items] | |||||
Notional | 21,731,000 | 21,731,000 | 22,942,000 | ||
Fair Market Value | (3,643,000) | (3,643,000) | (3,965,000) | ||
Interest Rate Swaps | Hedge accounting has not been applied | 2007-2 A-3 | 321 Henderson II | |||||
Derivative [Line Items] | |||||
Notional | 28,364,000 | 28,364,000 | 29,606,000 | ||
Fair Market Value | $ (6,190,000) | $ (6,190,000) | $ (6,664,000) | ||
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 |
Derivative Financial Instrume74
Derivative Financial Instruments - Home Lending Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Derivative asset, notional amount | $ 1,204,568 | $ 761,870 |
Derivative asset, fair value | 13,445 | 6,731 |
Interest rate lock commitments, at fair value | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | 633,568 | 355,870 |
Derivative asset, fair value | 11,256 | 6,072 |
Forward sale commitments | ||
Derivative [Line Items] | ||
Derivative asset, notional amount | 571,000 | 406,000 |
Derivative asset, fair value | $ 2,189 | $ 659 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Income Taxes | ||
Effective income tax rate (as a percent) | (28.70%) | 18.10% |
Effective income tax rate for parent (as a percent) | (54.00%) | 28.30% |
The J.G. Wentworth Company, LLC | ||
Income Taxes | ||
Effective income tax rate (as a percent) | 1.40% | 5.90% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Nov. 14, 2013vote$ / sharesshares | Jun. 30, 2017$ / sharesshares | Jun. 30, 2016shares | Dec. 31, 2016$ / sharesshares |
The J.G. Wentworth Company, LLC | ||||
Stockholders' Equity | ||||
Common stock exchanged (in shares) | 70,549 | 194,780 | ||
PGHI Corp | ||||
Stockholders' Equity | ||||
Warrants exercised during period (in shares) | 0 | 0 | ||
PGHI Corp | Tranche C-1 profit interests | ||||
Stockholders' Equity | ||||
Number of shares entitled by warrants (in shares) | 483,217 | |||
Exercise price of warrants issued (in dollars per share) | $ / shares | $ 35.78 | |||
PGHI Corp | Tranche C-2 profits interests | ||||
Stockholders' Equity | ||||
Number of shares entitled by warrants (in shares) | 483,217 | |||
Exercise price of warrants issued (in dollars per share) | $ / shares | $ 63.01 | |||
Preferred Stock | ||||
Stockholders' Equity | ||||
Preferred stock, authorized shares (in shares) | 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) | 16,352,775 | 16,272,545 | ||
Common stock, shares outstanding (in shares) | 15,810,703 | 15,730,473 | ||
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) | 70,549 | 194,780 | ||
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) | 8,629,738 | 8,710,158 | ||
Common stock, shares outstanding (in shares) | 8,629,738 | 8,710,158 | ||
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) | (70,549) | |||
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) | 6 Months Ended |
Jun. 30, 2017shares | |
Common Stock - Class C | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Number of shares entitled by warrants (in shares) | 4,360,623 |
The J.G. Wentworth Company, LLC | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Beginning Balance (in shares) | 28,801,254 |
Common Interests acquired by The J.G. Wentworth Company as a result of the exchange of units for shares of Class A common stock (in shares) | 0 |
Issuance of Class A common stock for vested equity awards (in shares) | 9,681 |
Common Interest forfeited (in shares) | (9,871) |
Ending Balance (in shares) | 28,801,064 |
The J.G. Wentworth Company, LLC | The J.G. Wentworth Company | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Beginning Balance (in shares) | 15,730,473 |
Common Interests acquired by The J.G. Wentworth Company as a result of the exchange of units for shares of Class A common stock (in shares) | 70,549 |
Issuance of Class A common stock for vested equity awards (in shares) | 9,681 |
Ending Balance (in shares) | 15,810,703 |
The J.G. Wentworth Company, LLC | Non- controlling Interest | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |
Beginning Balance (in shares) | 13,070,781 |
Common Interests acquired by The J.G. Wentworth Company as a result of the exchange of units for shares of Class A common stock (in shares) | (70,549) |
Issuance of Class A common stock for vested equity awards (in shares) | 0 |
Common Interest forfeited (in shares) | (9,871) |
Ending Balance (in shares) | 12,990,361 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Nov. 14, 2013 | Jun. 30, 2017USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($) |
Loan Origination Commitments | |||||
Commitments and contingencies | |||||
Commitments to originate loans | $ 633.6 | $ 355.9 | |||
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 | $ 11.1 | $ 10.8 | |||
Annual rate of interest for counterparty borrowing (as a percent) | 5.35% | ||||
Arrangement with Counterparty for Sale of Life Contingent Structured Settlement Assets | Counterparty under agreement to purchase LCSS assets | |||||
Commitments and contingencies | |||||
Percentage of target IRR above original target IRR paid by counterparty (as a percent) | 3.50% | ||||
Tax Receivable Agreement | |||||
Commitments and contingencies | |||||
Income tax, cash savings percentage to be paid to common interestholders (as a percent) | 85.00% | ||||
Tax Receivable Agreement | The J.G. Wentworth Company, LLC | |||||
Commitments and contingencies | |||||
Common interestholders, ownership percentage (as a percent) | 1.00% |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) | 1 Months Ended | 6 Months Ended | ||
Apr. 30, 2016participantshares | Jun. 30, 2017USD ($)shares | Jun. 30, 2016USD ($)shares | Dec. 31, 2016shares | |
Share-based compensation | ||||
Vested (in shares) | shares | 54,250 | 44,100 | ||
Aggregate grant date fair value | $ | $ 100,000 | $ 200,000 | ||
Total unrecognized compensation expense | $ | $ 2,600,000 | |||
Weighted average period for recognizing unrecognized compensation expense (in years) | 2 years 2 months 2 days | |||
Stock options | ||||
Share-based compensation | ||||
Share based compensation | $ | $ 600,000 | 500,000 | ||
Vested (in shares) | shares | 318,500 | |||
Stock options | Stock Modification Program | ||||
Share-based compensation | ||||
Stock modification program, options outstanding (in shares) | shares | 1,266,125 | |||
Stock modification program, number of participants in program (in participants) | participant | 45 | |||
Stock modification program, consent period (in days) | 20 days | |||
Performance-based restricted stock units | ||||
Share-based compensation | ||||
Share based compensation | $ | $ 100,000 | 100,000 | ||
Weighted average period for recognizing unrecognized compensation expense (in years) | 2 years 6 months | |||
Aggregate grant date fair value of awards granted | $ | $ 100,000 | |||
Share-based compensation expense expected to recognize | $ | $ 100,000 | |||
Awards vested (in shares) | shares | 9,681 | |||
Non-option shares outstanding (in shares) | shares | 232,250 | 207,500 | ||
Performance-based restricted stock units | Minimum | ||||
Share-based compensation | ||||
Number of shares in to which award will vest (in shares) | shares | 0 | |||
Performance-based restricted stock units | Maximum | ||||
Share-based compensation | ||||
Number of shares in to which award will vest (in shares) | shares | 1.5 | |||
Performance-based restricted stock units | Stock Modification Program | ||||
Share-based compensation | ||||
Share based compensation | $ | 0 | |||
Restricted Stock | ||||
Share-based compensation | ||||
Award vesting period (in years) | 1 year | |||
Share based compensation | $ | $ 0 | 100,000 | ||
Grants during the period, grant date fair value | $ | $ 0 | 0 | ||
Non-option shares outstanding (in shares) | shares | 0 | |||
Restricted Common Interests | ||||
Share-based compensation | ||||
Share based compensation | $ | $ 100,000 | $ 100,000 | ||
Share-based compensation expense expected to recognize | $ | $ 0 | |||
Awards vested (in shares) | shares | 0 | |||
Non-option shares outstanding (in shares) | shares | 0 | 9,871 | ||
Common Stock - Class A | ||||
Share-based compensation | ||||
Number of awards available for grant (in shares) | shares | 1,100,000 | |||
Common Stock - Class A | Stock options | ||||
Share-based compensation | ||||
Award expiration period (in years) | 10 years | |||
Award vesting period (in years) | 5 years |
Share-based Compensation - Valu
Share-based Compensation - Valuation Assumptions (Details) - Stock options | 6 Months Ended |
Jun. 30, 2017$ / shares | |
Share-based compensation | |
Fair value of grant (in dollars per share) | $ 0.19 |
Risk-free interest rate (as a percent) | 2.07% |
Expected volatility (as a percent) | 43.58% |
Expected life of options (in years) | 6 years 6 months |
Expected dividend yield (as a percent) | 0.00% |
Share-based Compensation - Summ
Share-based Compensation - Summary of Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Vested (in shares) | 54,250 | 44,100 | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at the beginning of the period (in shares) | 1,376,549 | ||
Granted (in shares) | 206,500 | ||
Forfeited (in shares) | (72,415) | ||
Expired (in shares) | (2,366) | ||
Outstanding at the end of the period (in shares) | 1,508,268 | 1,376,549 | |
Expected to vest (in shares) | 1,464,822 | ||
Vested (in shares) | 318,500 | ||
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) | $ 5.77 | ||
Granted (in dollars per share) | 0.41 | ||
Forfeited (in dollars per share) | 1.04 | ||
Expired (in dollars per share) | 11.69 | ||
Outstanding at the end of the period (in dollars per share) | 5.25 | $ 5.77 | |
Expected to vest (in dollars per share) | 5.36 | ||
Vested (in dollars per share) | $ 10.04 | ||
Weighted average remaining contractual term outstanding (in years) | 7 years 5 months 15 days | 7 years 8 months 24 days | |
Weighted average remaining contractual term outstanding expected to vest (in years) | 7 years 5 months 13 days | ||
Weighted average remaining contractual term,vested (in years) | 7 years 1 month 16 days | ||
Aggregate intrinsic value | $ 0 | $ 0 | |
Aggregate intrinsic value, outstanding 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 at the beginning of the period (in shares) | 207,500 | ||
Granted (in shares) | 103,250 | ||
Vested (in shares) | (9,681) | ||
Forfeited (in shares) | (68,819) | ||
Outstanding at the end of the period (in shares) | 232,250 | 207,500 | |
Expected to vest at the end of the period (in shares) | 98,603 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding at the beginning of the period (in dollars per share) | $ 1.18 | ||
Granted (in dollars per share) | 0.41 | ||
Vested (in dollars per share) | 1.23 | ||
Forfeited (in dollars per share) | 6.38 | ||
Outstanding at the end of the period (in dollars per share) | 1.53 | $ 1.18 | |
Expected to vest at the end of the period (in dollars per share) | $ 0.41 | ||
Restricted Common Interests | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Outstanding at the beginning of the period (in shares) | 9,871 | ||
Vested (in shares) | 0 | ||
Forfeited (in shares) | (9,871) | ||
Outstanding at the end of the period (in shares) | 0 | 9,871 | |
Expected to vest at the end of the period (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 at the beginning of the period (in dollars per share) | $ 9.06 | ||
Vested (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 9.06 | ||
Outstanding at the end of the period (in dollars per share) | 0 | $ 9.06 | |
Expected to vest at the end of the period (in dollars per share) | $ 0 |
Earnings per share - Narrative
Earnings per share - Narrative (Details) | Nov. 14, 2013shares | Jun. 30, 2017shares | Jun. 30, 2016shares | Jun. 30, 2017shares | Jun. 30, 2016shares |
Common interest and vested restricted common interests | |||||
Earnings per share | |||||
Antidilutive shares excluded from computation of diluted earnings per share (in shares) | 13,025,743 | 13,047,338 | 13,043,033 | 13,091,235 | |
Unvested restricted common interests | |||||
Earnings per share | |||||
Antidilutive shares excluded from computation of diluted earnings per share (in shares) | 4,971 | 27,777 | 7,407 | 27,777 | |
Common Stock - Class A | Stock options | |||||
Earnings per share | |||||
Antidilutive shares excluded from computation of diluted earnings per share (in shares) | 1,546,444 | 1,473,893 | 1,513,052 | 1,404,909 | |
Common Stock - Class A | Performance-based restricted stock units | |||||
Earnings per share | |||||
Antidilutive shares excluded from computation of diluted earnings per share (in shares) | 349,052 | 246,651 | 253,906 | 227,867 | |
Common Stock - Class A | The J.G. Wentworth Company, LLC | |||||
Earnings per share | |||||
Conversion ratio of common stock | 1 | ||||
Class C Profits Interests | Common Stock - Class A | PGHI Corp | |||||
Earnings per share | |||||
Number of shares entitled by warrants (in shares) | 966,434 |
Earnings per share - Reconcilia
Earnings per share - Reconciliation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator | ||||
Numerator for basic EPS - Net loss attributable to holders of The J.G. Wentworth Company Class A common stock | $ (7,011) | $ (10,794) | $ (14,209) | $ (26,880) |
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 | $ (7,011) | $ (10,794) | $ (14,209) | $ (26,880) |
Numerator for diluted EPS - Net loss attributable to holders of The J.G. Wentworth Company Class A common stock | $ (7,011) | $ (10,794) | $ (14,209) | $ (26,880) |
Denominator | ||||
Denominator for basic EPS - Weighted average shares of Class A common stock (in shares) | 15,775,321 | 15,662,540 | 15,753,431 | 15,618,643 |
Effect of dilutive securities | ||||
Denominator for diluted EPS - Adjusted weighted average shares of Class A common stock (in shares) | 15,775,321 | 15,662,540 | 15,753,431 | 15,618,643 |
Basic income per share computation | ||||
Basic loss per share of Class A common stock (in dollars per share) | $ (0.44) | $ (0.69) | $ (0.90) | $ (1.72) |
Diluted income per share computation | ||||
Diluted loss per share of Class A common stock (in dollars per share) | $ (0.44) | $ (0.69) | $ (0.90) | $ (1.72) |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting [Abstract] | |||||
Number of reportable segments (in segments) | segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Segment Adjusted EBITDA | $ 7,621 | $ 11,038 | $ 12,593 | $ 19,024 | |
Total revenues | 101,409 | 82,724 | 206,109 | 149,301 | |
Total assets | 5,044,551 | 5,173,696 | 5,044,551 | 5,173,696 | $ 4,992,907 |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Segment Adjusted EBITDA | 7,621 | 11,038 | 12,593 | 19,024 | |
Operating Segments | Structured Settlements | |||||
Segment Reporting Information [Line Items] | |||||
Segment Adjusted EBITDA | 3,978 | 3,069 | 4,846 | 4,777 | |
Total revenues | 75,034 | 55,962 | 156,986 | 100,661 | |
Total assets | 4,663,791 | 4,807,618 | 4,663,791 | 4,807,618 | |
Operating Segments | Home Lending | |||||
Segment Reporting Information [Line Items] | |||||
Segment Adjusted EBITDA | 3,643 | 7,969 | 7,747 | 14,247 | |
Total revenues | 26,375 | 26,762 | 49,123 | 48,640 | |
Total assets | 380,760 | 366,078 | 380,760 | 366,078 | |
Other Adjustments/Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Segment 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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | $ 7,621 | $ 11,038 | $ 12,593 | $ 19,024 |
Securitization-related adjustments: | ||||
Unrealized loss on finance receivables, long-term debt and derivatives post securitization due to changes in interest rates | 23,728 | 6,623 | 52,831 | (3,234) |
Servicing income on securitized finance receivables | 5,783 | 3,266 | 9,941 | 6,735 |
Professional fees relating to securitizations | (5,971) | (4,752) | (9,834) | (8,409) |
Provision for losses associated with permanently financed VIEs | (529) | (984) | (1,652) | (2,572) |
Other adjustments: | ||||
Impairment charges and loss on disposal of assets | 0 | (5,483) | 0 | (5,483) |
Debt issuance | (127) | (545) | (2,420) | (548) |
Depreciation and amortization | (1,129) | (1,163) | (2,267) | (2,465) |
Loss before income taxes | (11,202) | (29,776) | (16,915) | (71,463) |
Structured Settlements | ||||
Other adjustments: | ||||
Impairment charges and loss on disposal of assets | (5,500) | |||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 7,621 | 11,038 | 12,593 | 19,024 |
Operating Segments | Structured Settlements | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 3,978 | 3,069 | 4,846 | 4,777 |
Operating Segments | Home Lending | ||||
Segment Reporting Information [Line Items] | ||||
Segment Adjusted EBITDA | 3,643 | 7,969 | 7,747 | 14,247 |
Other Adjustments | ||||
Securitization-related adjustments: | ||||
Unrealized loss on finance receivables, long-term debt and derivatives post securitization due to changes in interest rates | 391 | (16,468) | 3,974 | (51,306) |
Interest income from securitized finance receivables | 44,459 | 43,729 | 90,380 | 93,544 |
Interest income on retained interests in finance receivables | (425) | (5,923) | (830) | (11,757) |
Servicing income on securitized finance receivables | (1,261) | (1,299) | (2,526) | (2,639) |
Interest expense on long-term debt related to securitization and permanent financing trusts | (44,257) | (36,790) | (89,668) | (79,827) |
Swap termination expense related to securitization entities | 0 | (3,053) | ||
Professional fees relating to securitizations | (1,368) | (1,414) | (2,706) | (2,846) |
Provision for losses associated with permanently financed VIEs | 239 | (12) | 197 | (17) |
Subtotal of securitization related adjustments | (2,222) | (18,177) | (1,179) | (57,901) |
Other adjustments: | ||||
Share based compensation | (233) | (323) | (425) | (630) |
Impact of prefunding on unsecuritized finance receivables | 29 | (1,392) | 3,199 | 2,861 |
Lease termination, severance and other restructuring related expenses | (4,900) | (1,499) | (6,167) | (2,739) |
Debt modification expense | 0 | (1,807) | 0 | (2,355) |
Impairment charges and loss on disposal of assets | 0 | (5,483) | 0 | (5,483) |
Term loan interest expense | (10,238) | (10,104) | (20,246) | (20,192) |
Debt issuance | (130) | (25) | 0 | (28) |
Broker and legal fees incurred in connection with sale of finance receivables | 0 | (841) | (2,423) | (1,555) |
Depreciation and amortization | $ (1,129) | $ (1,163) | $ (2,267) | $ (2,465) |
Cost Savings Activities (Detail
Cost Savings Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring Reserve [Roll Forward] | ||||
Balance at December 31, 2016 | $ 1,291 | |||
Payments | (759) | |||
Adjustments | 1,480 | |||
Balance at June 30, 2017 | $ 2,012 | 2,012 | ||
Structured Settlements | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at December 31, 2016 | 1,201 | |||
Payments | (669) | |||
Adjustments | 1,480 | |||
Balance at June 30, 2017 | 2,012 | 2,012 | ||
Home Lending | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance at December 31, 2016 | 90 | |||
Payments | (90) | |||
Adjustments | ||||
Balance at June 30, 2017 | 0 | 0 | ||
Lease terminations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 1,500 | $ 1,500 | $ 1,500 | $ 2,700 |