Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 30, 2024 | |
Name Change Event [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-13219 | |
Entity Registrant Name | Onity Group Inc. | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 65-0039856 | |
Entity Address, Address Line One | 1661 Worthington Road, Suite 100 | |
Entity Address, City or Town | West Palm Beach, | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33409 | |
City Area Code | 561 | |
Local Phone Number | 682-8000 | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | ONIT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,845,055 | |
Entity Central Index Key | 0000873860 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Name Change Event Date [Axis]: 2024-06-10 | ||
Name Change Event [Line Items] | ||
Entity Information, Former Legal or Registered Name | Ocwen Financial Corporation |
UNAUDITED CONSOLIDATED BALANCE
UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and cash equivalents | $ 203.1 | $ 201.6 |
Restricted cash ($22.5 and $24.2 related to variable interest entities (VIEs)) | 46.3 | 53.5 |
Mortgage servicing rights (MSRs), at fair value | 2,327.7 | 2,272.2 |
Advances, net ($467.9 and $573.0 related to VIEs) | 550.6 | 678.8 |
Loans held for sale ($1,103.9 and $674.2 carried at fair value) ($428.8 and $269.6 related to VIEs) | 1,107 | 677.3 |
Loans held for investment, at fair value ($5.4 and $5.6 related to VIEs) | 8,227.8 | 7,975.5 |
Receivables, net ($33.1 and $19.9 related to VIEs) | 153.4 | 154.8 |
Investment in equity method investee | 31.3 | 37.8 |
Premises and equipment, net | 12.3 | 13.1 |
Other assets | 84.3 | 106.2 |
Contingent loan repurchase asset | 341 | 343 |
Total assets | 13,084.7 | 12,513.7 |
Liabilities | ||
Home Equity Conversion Mortgage-Backed Securities (HMBS) related borrowings, at fair value | 8,035.4 | 7,797.3 |
Other financing liabilities, at fair value ($333.1 and $409.2 due to related party) ($5.4 and $5.6 related to VIEs) | 845.9 | 900 |
Advance match funded liabilities ($404.3 and $498.9 related to VIEs) | 405 | 499.7 |
Mortgage loan financing facilities, net ($280.1 and $143.4 related to VIEs) | 1,190.5 | 710.6 |
MSR financing facilities, net | 927.7 | 916.2 |
Senior notes, net ($245.3 and $239.7 due to related parties) | 555.2 | 595.8 |
Other liabilities ($10.1 and $7.2 carried at fair value) | 337.9 | 349.3 |
Contingent loan repurchase liability | 341 | 343 |
Total liabilities | 12,638.4 | 12,111.9 |
Commitments and Contingencies (Notes 20 and 21) | ||
Stockholders’ Equity | ||
Common stock, $.01 par value; 13,333,333 shares authorized; 7,845,055 and 7,684,401 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 0.1 | 0.1 |
Additional paid-in capital | 556.9 | 554.5 |
Accumulated deficit | (111) | (151.6) |
Accumulated other comprehensive loss, net of income taxes | 0.2 | (1.2) |
Total stockholders’ equity | 446.2 | 401.8 |
Total liabilities and stockholders’ equity | $ 13,084.7 | $ 12,513.7 |
UNAUDITED CONSOLIDATED BALANC_2
UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Restricted cash | $ 46.3 | $ 53.5 |
Advances, net | 550.6 | 678.8 |
Loans held for sale, at fair value | 1,103.9 | 674.2 |
Loans held for sale | 1,107 | 677.3 |
Loans held for investment, at fair value | 8,227.8 | 7,975.5 |
Receivables, net ($33.1 and $19.9 related to VIEs) | 153.4 | 154.8 |
Other assets, at fair value | 12.8 | 22 |
Other assets | 84.3 | 106.2 |
Other financing liabilities, at fair value | 845.9 | 900 |
Advance match funded liabilities | 405 | 499.7 |
Mortgage loan financing facilities, net ($280.1 and $143.4 related to VIEs) | 1,190.5 | 710.6 |
Senior notes, net ($245.3 and $239.7 due to related parties) | 555.2 | 595.8 |
Other liabilities, fair value | $ 10.1 | $ 7.2 |
Common stock, par value per share (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 13,333,333 | 13,333,333 |
Common stock, shares, issued (in shares) | 7,845,055 | 7,684,401 |
Common stock, shares, outstanding (in shares) | 7,845,055 | 7,684,401 |
Affiliated Entity | ||
Other financing liabilities, at fair value | $ 333.1 | $ 409.2 |
Senior notes, net ($245.3 and $239.7 due to related parties) | 245.3 | 239.7 |
Variable Interest Entity, Primary Beneficiary | ||
Restricted cash | 22.5 | 24.2 |
Advances, net | 467.9 | 573 |
Loans held for sale | 428.8 | 269.6 |
Loans held for investment, at fair value | 5.4 | 5.6 |
Receivables, net ($33.1 and $19.9 related to VIEs) | 33.1 | 19.9 |
Other assets | 22.4 | 18.6 |
Other financing liabilities, at fair value | 5.4 | 5.6 |
Advance match funded liabilities | 404.3 | 498.9 |
Mortgage loan financing facilities, net ($280.1 and $143.4 related to VIEs) | $ 280.1 | $ 143.4 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue | ||||
Servicing and subservicing fees | $ 210.8 | $ 237.6 | $ 415.3 | $ 469.7 |
Gain on reverse loans held for investment and HMBS-related borrowings, net | 8.5 | 0.7 | 23.9 | 21.9 |
Gain on loans held for sale, net | 16.5 | 25.3 | 27.4 | 28.1 |
Other revenue, net | 10.6 | 8.5 | 18.8 | 14.1 |
Total revenue | 246.4 | 272 | 485.5 | 533.9 |
MSR valuation adjustments, net | (32.7) | (48.9) | (44.3) | (117.9) |
Operating expenses | ||||
Compensation and benefits | 55 | 57.7 | 108.6 | 115.7 |
Servicing and origination | 13.9 | 17.6 | 29 | 33.3 |
Technology and communications | 13 | 13 | 25.7 | 26.4 |
Professional Fees (Income) | 10.7 | (16.9) | 22.8 | (3.6) |
Occupancy, equipment and mailing | 7.5 | 7.7 | 15.2 | 16.5 |
Other expenses | 3.9 | 5.1 | 7.2 | 10.1 |
Total operating expenses | 104 | 84.3 | 208.4 | 198.4 |
Other income (expense) | ||||
Interest income | 22.5 | 20.3 | 40 | 34.4 |
Interest expense ($11.4, $10.9, 22.6 and 21.7 on amounts due to related parties) | (73.1) | (68.3) | (140.5) | (130.5) |
Pledged MSR liability expense ($15.3, $13.2, $30.7 and $27.3 on amounts due to related party) | (46.1) | (73) | (91) | (143.3) |
Earnings of equity method investee | 3.1 | 2.9 | 5.8 | 3.1 |
Gain on extinguishment of debt | 0 | 0 | 1.4 | 0 |
Other, net | (2.7) | (4.4) | (3.4) | (3.2) |
Other income (expense), net | (96.2) | (122.5) | (187.5) | (239.5) |
Income (loss) before income taxes | 13.5 | 16.3 | 45.3 | (22) |
Income tax expense | 3 | 0.9 | 4.7 | 2.7 |
Net income (loss) | $ 10.5 | $ 15.5 | $ 40.6 | $ (24.7) |
Earnings (loss) per share | ||||
Basic (in USD per share) | $ 1.34 | $ 2.02 | $ 5.23 | $ (3.25) |
Diluted (in USD per share) | $ 1.33 | $ 1.95 | $ 5.09 | $ (3.25) |
Weighted average common shares outstanding | ||||
Basic (in shares) | 7,821,128 | 7,652,563 | 7,766,331 | 7,593,391 |
Diluted (in shares) | 7,918,672 | 7,919,587 | 7,982,429 | 7,593,391 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 10.5 | $ 15.5 | $ 40.6 | $ (24.7) |
Other comprehensive income (loss), net of income taxes: | ||||
Change in unfunded pension plan obligation liability | 1.3 | 0 | 1.4 | 0 |
Other | 0 | 0 | 0 | 0.1 |
Comprehensive income (loss) | $ 11.8 | $ 15.5 | $ 42 | $ (24.6) |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Income Taxes |
Beginning balance (in shares) at Dec. 31, 2022 | 7,526,117 | ||||
Beginning balance at Dec. 31, 2022 | $ 456.6 | $ 0.1 | $ 547 | $ (87.9) | $ (2.5) |
Net income (loss) | (24.7) | (24.7) | |||
Equity-based compensation and other (in shares) | 150,891 | ||||
Equity-based compensation and other | 1.7 | $ 0 | 1.7 | ||
Other comprehensive income, net of income taxes | 0.1 | 0.1 | |||
Ending balance (in shares) at Jun. 30, 2023 | 7,677,008 | ||||
Ending balance at Jun. 30, 2023 | 433.8 | $ 0.1 | 548.7 | (112.6) | (2.4) |
Beginning balance (in shares) at Mar. 31, 2023 | 7,638,611 | ||||
Beginning balance at Mar. 31, 2023 | 416.3 | $ 0.1 | 546.7 | (128.1) | (2.4) |
Net income (loss) | 15.5 | 15.5 | |||
Equity-based compensation and other (in shares) | 38,397 | ||||
Equity-based compensation and other | 2 | $ 0 | 2 | ||
Other comprehensive income, net of income taxes | 0 | 0 | |||
Ending balance (in shares) at Jun. 30, 2023 | 7,677,008 | ||||
Ending balance at Jun. 30, 2023 | $ 433.8 | $ 0.1 | 548.7 | (112.6) | (2.4) |
Beginning balance (in shares) at Dec. 31, 2023 | 7,684,401 | 7,684,401 | |||
Beginning balance at Dec. 31, 2023 | $ 401.8 | $ 0.1 | 554.5 | (151.6) | (1.2) |
Net income (loss) | 40.6 | ||||
Equity-based compensation and other (in shares) | 160,654 | ||||
Equity-based compensation and other | 2.4 | $ 0 | 2.4 | ||
Other comprehensive income, net of income taxes | $ 1.4 | 1.4 | |||
Ending balance (in shares) at Jun. 30, 2024 | 7,845,055 | 7,845,055 | |||
Ending balance at Jun. 30, 2024 | $ 446.2 | $ 0.1 | 556.9 | (111) | 0.2 |
Beginning balance (in shares) at Mar. 31, 2024 | 7,784,253 | ||||
Beginning balance at Mar. 31, 2024 | 432.1 | $ 0.1 | 554.6 | (121.5) | (1.1) |
Net income (loss) | 10.5 | ||||
Equity-based compensation and other (in shares) | 60,802 | ||||
Equity-based compensation and other | 2.3 | $ 0 | 2.3 | ||
Other comprehensive income, net of income taxes | $ 1.3 | 1.3 | |||
Ending balance (in shares) at Jun. 30, 2024 | 7,845,055 | 7,845,055 | |||
Ending balance at Jun. 30, 2024 | $ 446.2 | $ 0.1 | $ 556.9 | $ (111) | $ 0.2 |
UNAUDITED CONSOLIDATED STATEM_4
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||
Net income (loss) | $ 40.6 | $ (24.7) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
MSR valuation adjustment, net increase (decrease) | 81.5 | 162.9 |
Provision for bad debts (advances and receivables) | 14.2 | 12.5 |
Provision for (reversal of) representation and warranty obligations | 2 | 3.3 |
Depreciation | 2.8 | 3.4 |
Amortization of debt issuance costs and discount | 17.9 | 6.1 |
Amortization of intangibles | 1.7 | 2.9 |
Gain on extinguishment of debt | (1.4) | 0 |
Equity-based compensation expense | 4.8 | 4.1 |
Gain on reverse loans held for investment and HMBS-related borrowings, net | (16) | (13.7) |
Gain on loans held for sale, net | (27.4) | (28.1) |
Origination and purchase of loans held for sale | (7,409.4) | (5,412.3) |
Proceeds from sale and collections of loans held for sale | 6,888.1 | 4,624.3 |
Changes in assets and liabilities: | ||
Decrease in advances | 112.8 | 114 |
Decrease in receivables and other assets | 23.2 | 12.5 |
Increase (Decrease) in Derivative Assets and Liabilities | (78.8) | (49.7) |
Decrease in other liabilities | (17.1) | (56.8) |
Other, net | (14.6) | (9.3) |
Net cash used in operating activities | (375) | (648.7) |
Cash flows from investing activities | ||
Origination of loans held for investment | (520.3) | (507.4) |
Principal payments received on loans held for investment | 599.1 | 528 |
Purchase of MSRs | (62.1) | (52.3) |
Proceeds from sale of MSRs | 96 | 0.3 |
Proceeds from sale of advances | 9.3 | 5.1 |
Purchase of real estate | (12.1) | (10.2) |
Proceeds from sale of real estate | 12.3 | 8.1 |
Additions to premises and equipment | (0.2) | (1.8) |
Proceeds from sale of premises and equipment | 0 | 0.1 |
Distribution from (investment in) equity method investee, net | 6.5 | 7.6 |
Net cash provided by (used in) investing activities | 128.4 | (22.5) |
Cash flows from financing activities | ||
Repayment of advance match funded liabilities, net | (94.7) | (83.2) |
Repayment of other financing liabilities | (37.4) | (45.7) |
Proceeds from mortgage loan financing facilities, net | 471.9 | 816 |
Proceeds from MSR financing facilities | 605.4 | 443.4 |
Repayment of MSR financing facilities | (592.7) | (531.8) |
Repurchase of Senior notes | (45.5) | 0 |
Payment of debt issuance costs | (3.4) | (3.4) |
Proceeds from other financing liabilities - Sale of MSRs accounted for as secured financing | 17.7 | 88.3 |
Proceeds from other financing liabilities - Excess Servicing Spread (ESS) liability | 0 | 68.7 |
Proceeds from sale of Home Equity Conversion Mortgages (HECM, or reverse mortgages) accounted for as a financing (HMBS-related borrowings) | 507.7 | 502.3 |
Repayment of HMBS-related borrowings | (588.1) | (525.1) |
Net cash provided by financing activities | 240.8 | 729.5 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (5.7) | 58.3 |
Cash, cash equivalents and restricted cash at beginning of year | 255.1 | 274.2 |
Cash, cash equivalents and restricted cash at end of period | 249.4 | 332.5 |
Supplemental non-cash investing and financing activities: | ||
Right-of-use asset | 1.9 | (1.5) |
Lease liability | 1.9 | (1.5) |
Loans held for investment, at fair value | 1.9 | 3.1 |
Transfers of loans held for sale to real estate owned (REO) | 7.3 | 11.5 |
MSRs | (85.7) | (32.5) |
Financing liability - MSRs pledged | (85.7) | (32.5) |
Supplemental information - Sale and deconsolidation of subsidiary | ||
Cash and cash equivalents | 203.1 | 213.4 |
Debt service accounts | 27 | 71.2 |
Other restricted cash | 19.3 | 47.9 |
Total cash, cash equivalents and restricted cash reported in the statements of cash flows | $ 249.4 | $ 332.5 |
UNAUDITED CONSOLIDATED STATEM_5
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest expense | $ 73.1 | $ 68.3 | $ 140.5 | $ 130.5 |
MSR Pledged liability expense | 46.1 | 73 | 91 | 143.3 |
Affiliated Entity | ||||
MSR Pledged liability expense | 15.3 | 13.2 | 30.7 | 27.3 |
OFC Senior Secured Notes | ||||
Interest expense | $ 11.4 | $ 10.9 | $ 22.6 | $ 21.7 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Note 1 - Organization and Basis of Presentation Organization Onity Group Inc. (formerly Ocwen Financial Corporation) (Onity, we, us and our) is a non-bank mortgage servicer and originator providing solutions to homeowners, clients, investors and others through its primary operating subsidiary, PHH Mortgage Corporation (PHH, formerly referred to as PMC). We are headquartered in West Palm Beach, Florida with offices and operations in the United States (U.S.), the United States Virgin Islands (USVI), India and the Philippines. Onity is a Florida corporation organized in February 1988. On June 10, 2024, Ocwen Financial Corporation changed its name to Onity Group Inc. and continued to be publicly traded on the New York Stock Exchange under the new ticker symbol “ONIT” (formerly “OCN"). Onity directly or indirectly owns all of the outstanding common stock of its operating subsidiaries, including PHH since its acquisition on October 4, 2018, Ocwen Financial Solutions Private Limited (OFSPL) and Ocwen USVI Services, LLC (OVIS). Onity holds a 15% equity interest in MAV Canopy HoldCo I, LLC (MAV Canopy) that invests in mortgage servicing assets through its licensed mortgage subsidiary MSR Asset Vehicle LLC (MAV). We perform servicing activities related to our own MSR portfolio (primary) and on behalf of other servicers (subservicing), and investors (primary and master servicing), including the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively referred to as GSEs), the Government National Mortgage Association (Ginnie Mae, and together with the GSEs, the Agencies) and private-label securitizations (PLS, or non-Agency). We source our servicing portfolio through multiple channels, including retail, wholesale, correspondent, flow MSR purchase agreements, the Agency Cash Window programs and bulk MSR purchases. We originate, sell and securitize conventional (conforming to the GSE underwriting standards) loans and government-insured (Federal Housing Administration (FHA), Department of Veterans Affairs (VA) or United States Department of Agriculture (USDA)) forward mortgage loans, generally with servicing retained. The GSEs or Ginnie Mae guarantee these mortgage securitizations. We originate and purchase Home Equity Conversion Mortgage (HECM) loans, or reverse mortgages, which are mostly insured by the FHA and we are an approved issuer of Home Equity Conversion Mortgage-Backed Securities (HMBS) that are guaranteed by Ginnie Mae. We had a total of approximately 4,300 employees at June 30, 2024 of which approximately 2,900 were located in India and approximately 400 were based in the Philippines. Our operations in India and the Philippines provide internal support services to our loan servicing and originations businesses and our corporate functions. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with the instructions of the Securities and Exchange Commission (SEC) to Form 10-Q and SEC Regulation S-X, Article 10, Rule 10-01 for interim financial statements. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) for complete financial statements. In our opinion, the accompanying unaudited consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation. The results of operations and other data for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2024. The unaudited consolidated financial statements presented herein should be read in conjunction with the audited consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. Amounts may not add in certain tables due to rounding. Change in Presentation Effective June 30, 2024, in our consolidated balance sheets we now present Contingent loan repurchase asset and Contingent loan repurchase liability as separate line items (previously reported in Other assets and Other liabilities, respectively). In connection with the Ginnie Mae early buyout program, our servicing agreements provide that we have the right, but not the obligation, to repurchase previously transferred mortgage loans under certain conditions, including the mortgage loans becoming unpaid for more than three consecutive months. Once these conditions are met, we have effectively regained control over the mortgage loans, and under GAAP, must re-recognize the loans on our consolidated balance sheets and establish a corresponding repurchase liability. The separate presentation of such assets and offsetting liabilities on the face of the balance sheet provides increased transparency as compared to a presentation within Other assets and Other liabilities. The consolidated balance sheet as of December 31, 2023 has been recast to conform to the current period presentation. This presentation change had no impact on total assets or total liabilities in our consolidated balance sheets, no impact on the consolidated statements of cash flows, nor any other financial statements. Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions include, but are not limited to, those that relate to fair value measurements, income taxes and the provision for losses that may arise from contingencies including litigation proceedings. In developing estimates and assumptions, management uses all available information; however, actual results could materially differ from those estimates and assumptions. Recently Adopted Accounting Standards Leases (ASC 842) Common Control Arrangements (ASU 2023-01) Prior to the issuance of this ASU, ASC 842 required all lessees to amortize leasehold improvements over the shorter of their useful life or the remaining term of the lease. For leases between entities under common control, the amendment in this ASU requires amortization of leasehold improvements over the useful life of those assets to the common control group, regardless of the lease term. When the lessee no longer controls the use of the asset underlying the common control lease, the leasehold improvements are accounted for as a transfer between entities under common control whereby the lessee records a distribution to the common control lessor through an adjustment to equity. Our adoption of this standard on January 1, 2024 did not have a material impact on our consolidated financial statements. Accounting Standards Issued but Not Yet Adopted Business Combinations - Joint Venture Formations (ASC 805-60): Recognition and Initial Measurement (ASU 2023-05) The amendments in this ASU require a joint venture to apply a new basis of accounting upon formation for the initial contribution of nonmonetary and monetary assets, initially measured at fair value (with exceptions to fair value measurement consistent with business combinations guidance). This ASU does not amend the definition of a joint venture, the accounting by an equity method investor for its investment in a joint venture, or the accounting by a joint venture for contributions received after its formation. The amendments in this ASU are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025, with early adoption permitted. A joint venture formed prior to the adoption date may elect to apply the new guidance retrospectively back to the original formation date. We do not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements. Segment Reporting (ASC 280) Improvements to Reportable Segment Disclosures (ASU 2023-07) The amendments in this ASU were issued to improve annual and interim reportable segment disclosure requirements, primarily through enhanced disclosures about expenses that are significant to the segment, regularly provided to or easily computed from information regularly provided to the chief operating decision maker (CODM), and included in the reported measure of segment profit or loss. This ASU also requires disclosure of the title and position of the individual or the name of the group identified as the CODM in the consolidated financial statements, as well as how the CODM uses each reported measure of segment profit or loss to assess performance and allocate resources to the segment. The ASU allows the disclosure of additional optional measures of a segment’s profit or loss for each reportable segment if used by the CODM, subject to additional segment disclosures and the SEC’s non-GAAP financial measures requirements. The amended disclosures in this ASU are effective in the 2024 annual period and in 2025 for interim periods, and shall be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. Income Taxes (ASC 740) Improvements to Income Tax Disclosures (ASU 2023-09) The amendments in this ASU require disaggregated information about a reporting entity’s effective tax rate reconciliation, including a tabular rate reconciliation for specified categories and additional information for reconciling items that meet a quantitative threshold. The ASU also requires additional disaggregated information on income taxes paid to an individual jurisdiction equal to or greater than 5% of total income taxes paid. |
Securitizations and Variable In
Securitizations and Variable Interest Entities | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing [Abstract] | |
Securitizations and Variable Interest Entities | Note 2 – Securitizations and Variable Interest Entities We securitize, sell and service forward and reverse residential mortgage loans and regularly transfer financial assets in connection with asset-backed financing arrangements. We have aggregated these transfers of financial assets and asset-backed financing arrangements using special purpose entities (SPEs) or variable interest entities (VIEs) into the following groups: (1) securitizations of residential mortgage loans, (2) financings of loans held for sale, (3) financings of advances and (4) MSR financings. Financing transactions that do not use SPEs or VIEs are disclosed in Note 13 – Borrowings. Securitizations of Residential Mortgage Loans Transfers of Forward Loans We sell or securitize forward loans that we originate or purchase from third parties, generally in the form of mortgage-backed securities guaranteed by the GSEs or Ginnie Mae. Securitization typically occurs within 30 days of loan closing or purchase. We act only as a fiduciary and do not have a variable interest in the securitization trusts. As a result, we account for these transactions as sales upon transfer. The following table presents a summary of cash flows received from and paid to securitization trusts related to transfers of loans accounted for as sales that were outstanding: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Proceeds received from securitizations $ 4,249.2 $ 2,298.1 $ 6,808.1 $ 4,614.9 Servicing fees collected (1) 40.2 28.2 78.5 55.2 Purchases of previously transferred assets, net of claims reimbursed (3.7) (4.0) (6.2) (7.1) $ 4,285.7 $ 2,322.4 $ 6,880.3 $ 4,663.0 (1) We receive servicing fees based upon the securitized loan balances and certain ancillary fees, all of which are reported in Servicing and subservicing fees in the unaudited consolidated statements of operations. In connection with these transfers, we retained MSRs of $67.7 million and $102.4 million during the three and six months ended June 30, 2024, respectively, and $31.5 million and $62.6 million during the three and six months ended June 30, 2023, respectively. Certain obligations arise from the agreements associated with our transfers of loans. Under these agreements, we may be obligated to repurchase the loans, or otherwise indemnify or reimburse the investor or insurer for losses incurred due to material breach of contractual representations and warranties. We receive customary origination representations and warranties from our network of approved correspondent lenders. To the extent that we have recourse against a third-party originator, we may recover part or all of any loss we incur. Also refer to the Loan Put-Back and Related Contingencies section of Note 21 – Contingencies. The following table presents the carrying amounts of our assets that relate to our continuing involvement with forward loans that we have transferred with servicing rights retained as well as an estimate of our maximum exposure to loss including the UPB of the transferred loans: June 30, 2024 December 31, 2023 Carrying value of assets MSRs, at fair value $ 690.6 $ 636.5 Advances 85.1 99.0 UPB of loans transferred (1) 47,658.7 46,810.1 Maximum exposure to loss (2) $ 48,434.3 $ 47,545.6 (1) Includes $10.5 billion and $10.5 billion of loans delivered to Ginnie Mae as of June 30, 2024 and December 31, 2023, respectively, and includes loan modifications repurchased and delivered through the Ginnie Mae Early Buyout Program (EBO). (2) The maximum exposure to loss in the table above is primarily based on the remaining UPB of loans serviced and assumes all loans were deemed worthless as of the reporting date. It does not take into consideration the proceeds from the underlying collateral liquidation, recoveries or any other recourse available to us, including from mortgage insurance, guarantees or correspondent sellers. We do not believe the maximum exposure to loss from our involvement with these previously transferred loans is representative of the actual loss we are likely to incur based on our contractual rights and historical loss experience and projections. Also, refer to the Loan Put-Back and Related Contingencies section in Note 21 – Contingencies. At June 30, 2024 and December 31, 2023, 2.5% and 2.8%, respectively, of the transferred residential loans that we service were 60 days or more past due, including 60 days or more past due loans under forbearance. This includes 7.3% and 8.0%, respectively, of loans delivered to Ginnie Mae that are 60 days or more past due. Transfers of Reverse Mortgages We pool HECM loans into HMBS that we sell into the secondary market with servicing rights retained. As the transfers of the HECM loans do not qualify for sale accounting, we account for these transfers as secured financings, with the HECM loans classified as Loans held for investment, at fair value, on our unaudited consolidated balance sheets. Financing of Loans Held for Sale, Receivables and Other Assets using SPEs We consolidate an SPE (trust) in connection with a warehouse mortgage loan financing facility structured as a gestation repurchase facility whereby Agency mortgage loans are transferred by PHH to the trust for collateralization purposes. As of June 30, 2024 and December 31, 2023, $200.1 million and $150.1 million, respectively, loans held for sale were pledged as collateral for $200.0 million and $150.0 million, respectively, debt certificates issued by the trust. See Note 13 – Borrowings. We finance certain reverse mortgage buyouts that are insured by the FHA, including loans held for sale, receivables and REO properties, through private placement securitizations, referred to as OLIT transactions (Ocwen Loan Investment Trust). The securitization trusts issued senior and mezzanine class Notes to third party investors. We retain certain mezzanine class Notes and ownership interests and service the underlying assets. We determined we were the primary beneficiary, and thus consolidate the securitization trusts and related depositor. Recourse for the Notes is limited to the assets of the respective securitization trusts. The table below presents the carrying value and classification of the assets and liabilities reported on our consolidated balance sheet that are associated with the securitized reverse mortgage loans buyouts and financing liabilities: June 30, 2024 December 31, 2023 Mortgage loans (Loans held for sale) $ 228.7 $ 119.5 Receivables, net 33.1 19.9 REO (Other assets) 17.9 12.5 Debt service and Interest reserve accounts (Restricted cash) 10.2 6.8 Total assets $ 290.0 $ 158.6 Outstanding borrowings (Mortgage loan financing facilities, net) 314.0 164.4 Unamortized discount and debt issuance costs (Mortgage loan financing facilities, net) (33.9) (21.0) Accrued expenses and Accrued interest (Other liabilities) 0.9 0.5 Total liabilities $ 281.0 $ 143.8 Financings of Advances using SPEs We pledged certain servicing advances as collateral to our advance financing facilities, referred to as advance match funded liabilities, with the use of SPEs that we consolidate and include in our consolidated financial statements. The table below presents the carrying value and classification of the assets and liabilities of the advance financing facilities: June 30, 2024 December 31, 2023 Match funded advances (Advances, net) $ 467.9 $ 573.0 Debt service accounts (Restricted cash) 10.6 15.7 Advance match funded liabilities 404.3 498.9 MSR Financings using SPEs We consolidate two SPEs (PMC ESR Trusts) in connection with a third-party financing facility secured by certain of PHH’s Fannie Mae and Freddie Mac MSRs (GSE MSRs) and one SPE (PMC PLS ESR Issuer LLC) in connection with our PLS MSR financing facility (Ocwen Excess Spread-Collateralized Notes, Series 2022-PLS1 Class A). The table below presents the carrying value and classification of the assets and liabilities of the GSE MSR financing facility and the PLS Notes facility: June 30, 2024 December 31, 2023 MSRs pledged (MSRs, at fair value) $ 518.9 $ 449.6 Debt service account (Restricted cash) 1.7 1.7 Outstanding borrowings (MSR financing facilities, net) 277.2 282.1 Unamortized debt issuance costs (MSR financing facilities, net) (0.2) (0.4) |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 3 – Fair Value Fair value is estimated based on a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are inputs that reflect the assumptions that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy prioritizes the inputs to valuation techniques into three broad levels whereby the highest priority is given to Level 1 inputs and the lowest to Level 3 inputs. The carrying amounts and the estimated fair values of our financial instruments and certain of our nonfinancial assets measured at fair value on a recurring or non-recurring basis or disclosed, but not measured, at fair value are as follows: June 30, 2024 December 31, 2023 Level Carrying Value Fair Value Carrying Value Fair Value Financial assets Loans held for sale Loans held for sale, at fair value (a) (e) 3, 2 $ 1,103.9 $ 1,103.9 $ 674.2 $ 674.2 Loans held for sale, at lower of cost or fair value (b) 3 3.1 3.1 3.1 3.1 Total Loans held for sale $ 1,107.0 $ 1,107.0 $ 677.3 $ 677.3 Loans held for investment, at fair value Loans held for investment - Reverse mortgages (a) 3 $ 8,222.4 $ 8,222.4 $ 7,970.0 $ 7,970.0 Loans held for investment - Restricted for securitization investors (a) 3 5.4 5.4 5.6 5.6 Total Loans held for investment, at fair value $ 8,227.8 $ 8,227.8 $ 7,975.5 $ 7,975.5 Advances, net (c) 3 $ 550.6 $ 550.6 $ 678.8 $ 678.8 Receivables, net (c) 3 $ 153.4 $ 153.4 $ 154.8 $ 154.8 June 30, 2024 December 31, 2023 Level Carrying Value Fair Value Carrying Value Fair Value Financial liabilities Advance match funded liabilities (c) 3 $ 405.0 $ 405.0 $ 499.7 $ 499.7 Financing liabilities, at fair value: HMBS-related borrowings (a) 3 $ 8,035.4 $ 8,035.4 $ 7,797.3 $ 7,797.3 Other financing liabilities 3 845.9 845.9 900.0 900.0 Mortgage loan financing facilities (c) (d) 3 $ 1,190.5 $ 1,196.5 $ 710.6 $ 717.6 MSR financing facilities (c) (d) 3 $ 927.7 $ 914.0 $ 916.2 $ 900.3 Senior notes PMC Senior secured notes due 2026 (c) (d) 2 $ 309.9 $ 305.3 $ 356.1 $ 326.0 OFC Senior secured notes due 2027 (c) (d) 3 245.3 256.3 239.7 230.5 Total Senior notes $ 555.2 $ 561.6 $ 595.8 $ 556.5 Derivative financial instrument assets (liabilities), net Interest rate lock commitments (IRLCs) (a) 3 $ 4.1 $ 4.1 $ 5.6 $ 5.6 Other derivatives (a) 1 (1.4) (1.4) 9.1 9.1 Other commitments (a) 3 — — (0.1) (0.1) MSRs (a) 3 $ 2,327.7 $ 2,327.7 $ 2,272.2 $ 2,272.2 (a) Measured at fair value on a recurring basis in our financial statements. (b) Measured at fair value on a non-recurring basis in our financial statements. (c) Disclosed, but not measured at fair value in our financial statements. (d) The carrying values are net of unamortized debt issuance costs and discount. See Note 13 – Borrowings for additional information . (e) The newly originated portfolio of GSE and forward Ginnie Mae loans held for sale pending securitization with the Agencies is classified as Level 2; all other loans are classified as Level 3. The following tables present a reconciliation of the changes in fair value of certain Level 3 assets and liabilities that we measure at fair value on a recurring basis (refer to the respective notes for other Level 3 assets and liabilities): Loans Held for Sale - Fair Value ESS Financing Liability IRLCs Three months ended June 30, 2024 Beginning balance $ 284.0 $ (253.4) $ 5.0 Purchases, issuances, sales and settlements Purchases and other 80.5 — — Issuances (1) — — 4.0 Sales (38.7) — — Settlements (2) (25.1) 7.0 — Transfers from (to) Loans held for investment, at fair value 0.8 — — Loans held for sale, at fair value (1) — — 8.6 REO (Other assets) (4.3) — — Receivables, net (7.6) — — Advances (capitalization upon Ginnie Mae modification) 2.8 — — Net addition (disposition/derecognition) 8.3 7.0 12.6 Included in earnings: Change in fair value (1) 4.4 (4.1) (13.5) Ending balance $ 296.7 $ (250.5) $ 4.1 Loans Held for Sale - Fair Value ESS Financing Liability IRLCs Three months ended June 30, 2023 Beginning balance $ 23.3 $ (263.1) $ 4.8 Purchases, issuances, sales and settlements Purchases and other 240.4 — — Issuances (1) — — 4.4 Sales (38.5) — — Settlements (2) (25.8) 8.1 — Transfers from (to) Loans held for investment, at fair value 1.5 — — Loans held for sale, at fair value (1) — — (10.8) REO (Other assets) (7.1) — — Receivables, net (15.6) — — Advances (capitalization upon Ginnie Mae modification) 1.7 — — Other 2.8 — — Net addition (disposition/derecognition) 159.5 8.2 (6.5) Included in earnings: Change in fair value (1) 14.6 (3.6) 3.0 Ending balance $ 197.4 $ (258.5) $ 1.4 Loans Held for Sale - Fair Value ESS Financing Liability IRLCs Six Months Ended June 30, 2024 Beginning balance $ 203.1 $ (248.9) $ 5.6 Purchases, issuances, sales and settlements Purchases and other 225.5 — — Issuances (1) — — 21.2 Sales (76.7) — — Settlements (2) (47.3) 14.4 — Transfers from (to) Loans held for investment, at fair value 1.9 — — Loans held for sale, at fair value (1) — — 2.8 REO (Other assets) (7.3) — — Receivables, net (18.2) — — Advances - (capitalization upon Ginnie Mae modification) 4.9 — — Net addition (disposition/derecognition) 82.8 14.4 24.0 Included in earnings: Change in fair value (1) 10.9 (16.0) (25.5) Ending balance $ 296.7 $ (250.5) $ 4.1 Loans Held for Sale - Fair Value ESS Financing Liability IRLCs Six Months Ended June 30, 2023 Beginning balance $ 32.1 $ (199.0) $ (0.7) Purchases, issuances, sales and settlements Purchases and other 252.8 — Issuances (1) — (68.7) 10.1 Sales (58.7) — — Settlements (2) (25.8) 14.9 — Transfers from (to) Loans held for investment, at fair value 1.5 — — Loans held for sale, at fair value (1) — — (31.2) REO (Other assets) (7.1) — — Receivables, net (16.1) — — Advances - (capitalization upon Ginnie Mae modification) 1.7 — — Other 2.8 — — Net addition (disposition/derecognition) 151.3 (53.8) (21.0) Included in earnings: Change in fair value (1) 14.0 (5.6) 23.1 Ending balance $ 197.4 $ (258.5) $ 1.4 (1) IRLC activity (issuances and transfers) represent changes in fair value included in earnings. This activity is presented on a gross basis in the table for disclosure purposes. Total net change in fair value included in earnings attributed to IRLCs is a gain (loss) of $(0.9) million and $(1.5) million for the three and six months ended June 30, 2024, respectively, and $(3.4) million and $2.1 million for the three and six months ended June 30, 2023, respectively. See Note 15 – Derivative Financial Instruments and Hedging Activities. (2) ESS financing liability settlement is determined based on collections on reference pools of the related mortgage loans. A reconciliation from the beginning balances to the ending balances of Loans held for investment and HMBS-related borrowings, MSRs and Pledged MSR liabilities that we measure at fair value on a recurring basis is disclosed in Note 5 - Reverse Mortgages, Note 7 – Mortgage Servicing and Note 8 — Other Financing Liabilities, at Fair Value, respectively. The significant unobservable assumptions that we make to estimate the fair value of certain assets and liabilities classified as Level 3 and measured at fair value on a recurring basis are provided below. Loans Held for Sale The fair value of residential forward and reverse mortgage loans we purchased from Ginnie Mae guaranteed securitizations or from third parties (including government insured reverse buyouts previously purchased from Ginnie Mae guaranteed securitizations) is estimated using both observable and unobservable inputs, including published Ginnie Mae prices or expected collateral values, as well as estimated default, prepayment, and discount rates. Significant unobservable inputs in estimating fair value include the estimated default rate and, for reverse loans the prepayment rate and liquidation timeline. Accordingly, these repurchased Ginnie Mae forward and reverse loans are classified as Level 3 within the valuation hierarchy. Loans Held for Investment - Reverse Mortgages Reverse mortgage loans held for investment are carried at fair value and classified as Level 3 within the valuation hierarchy. We measure these loans at fair value based on the expected future cash flows discounted over the expected life of the loans at a rate commensurate with the risk of the estimated cash flows, including future draw commitments for HECM loans. We engage third-party valuation experts in the determination of fair value. Significant unobservable assumptions include conditional prepayment rate and discount rate. The conditional prepayment rate assumption displayed in the table below is inclusive of voluntary (repayment or payoff) and involuntary (inactive/delinquent status and default) prepayments. The discount rate assumption is primarily based on an assessment of current market yields on reverse mortgage loan and tail securitizations, expected duration of the asset and current market interest rates. Significant unobservable assumptions June 30, December 31, Life in years Range 0.7 to 7.9 0.8 to 7.9 Weighted average 5.1 5.2 Conditional prepayment rate, including voluntary and involuntary prepayments Range 11.6% to 32.9% 12.0% to 35.4% Weighted average 17.7 % 17.2 % Discount rate 5.2 % 4.9 % Significant changes in any of these assumptions in isolation could result in a significant change in fair value. The effects of changes in the assumptions used to value the securitized loans held for investment, excluding future draw commitments, are partially offset by the effects of changes in the assumptions used to value the HMBS-related borrowings that are associated with these loans. MSRs MSRs are carried at fair value and classified within Level 3 of the valuation hierarchy. The fair value is equal to the fair value mark provided by the third-party valuation experts, without adjustment, except in the event we have a potential or completed sale, including transactions where we have executed letters of intent, in which case the fair value of the MSRs is recorded at the estimated sale price. We engage third-party valuation experts who generally utilize: (a) transactions involving instruments with similar collateral and risk profiles, adjusted as necessary based on specific characteristics of the asset or liability being valued; and/or (b) industry-standard modeling, such as a discounted cash flow model and prepayment model, in arriving at their estimate of fair value. The prices provided by the valuation experts reflect their observations and assumptions related to market activity, generally the bulk market, incorporating available industry survey results, client feedback and our actual trade activity, and including risk premiums and liquidity adjustments. While interest rates are a key value driver, MSR fair value may change for other market-driven factors, including but not limited to the supply and demand of the market or the required yield or perceived value by investors of such MSRs. While the models and related assumptions used by the valuation experts are proprietary to them, we understand the methodologies and assumptions used to develop the prices based on our ongoing due diligence, which includes regular discussions with the valuation experts. We believe that the procedures executed by the valuation experts, supported by our verification and analytical procedures, provide reasonable assurance that the prices used in our consolidated financial statements comply with the accounting guidance for fair value measurements and disclosures and reflect the assumptions that a market participant would use. We evaluate the reasonableness of our third-party experts’ assumptions using historical experience adjusted for prevailing market conditions and benchmarks of assumptions and value estimates. A change in the valuation inputs or assumptions may result in a significantly higher or lower fair value measurement. Changes in market interest rates predominantly impact the fair value of Agency MSRs via prepayment speeds by altering the borrower refinance incentive and the non-Agency MSRs due to the impact on advance funding costs. In addition, changes in market interest rates impact float income. The significant unobservable assumptions used in the valuation of these MSRs include prepayment speeds, delinquency rates, cost to service and discount rates. Significant unobservable assumptions June 30, 2024 December 31, 2023 Agency Non-Agency Agency Non-Agency Weighted average prepayment speed 6.3 % 7.8% 7.7 % 7.9 % Weighted average lifetime delinquency rate 1.2 % 10.1% 1.3 % 10.0 % Weighted average discount rate 9.9 % 10.9% 9.2 % 11.4 % Weighted average cost to service (in dollars) $ 71 $ 192 $ 71 $ 192 Because the mortgages underlying these MSRs permit the borrowers to prepay the loans, the value of the MSRs generally tends to diminish in periods of declining interest rates, an improving housing market or expanded product availability (as prepayments increase) and increase in periods of rising interest rates, a deteriorating housing market or reduced product availability (as prepayments decrease). The following table summarizes the estimated change in the value of the MSRs as of June 30, 2024 given hypothetical increases in lifetime prepayments and yield assumptions: Adverse change in fair value 10% 20% Change in weighted average prepayment speeds (in percentage points) 0.7 1.5 Change in fair value due to change in weighted average prepayment speeds $ (56.3) $ (111.3) Change in weighted average discount rate (in percentage points) 1.0 2.0 Change in fair value due to change in weighted average discount rate $ (79.7) $ (152.9) Financing Liabilities HMBS-Related Borrowings HMBS-related borrowings are carried at fair value and classified as Level 3 within the valuation hierarchy. These borrowings are not actively traded, and therefore, quoted market prices are not available. We determine fair value using a discounted cash flow approach, by discounting the projected recovery of principal and interest over the estimated life of the borrowing at a market rate commensurate with the risk of the estimated cash flows. We engage third-party valuation experts to support our valuation and provide observations and assumptions related to market activities. The fair value is equal to the fair value mark provided by a third-party valuation expert. We evaluate the reasonableness of our fair value estimate and assumptions using historical experience, or cash flow backtesting, adjusted for prevailing market conditions and benchmarks of assumptions and value estimates. Significant unobservable assumptions include yield spread and discount rate. The yield spread and discount rate assumption for these liabilities are primarily based on an assessment of current market yields for newly issued HMBS, expected duration and current market interest rates. Significant unobservable assumptions June 30, December 31, Life in years Range 0.7 to 7.9 0.8 to 7.9 Weighted average 5.1 5.2 Conditional prepayment rate Range 11.6% to 32.9% 12.0% to 35.4% Weighted average 17.7 % 17.2 % Discount rate 5.2 % 4.9 % Significant changes in any of these assumptions in isolation could result in a significant change in fair value. The effects of changes in the assumptions used to value the HMBS-related borrowings are partially offset by the effects of changes in the assumptions used to value the associated pledged loans held for investment, excluding future draw commitments. Pledged MSR Liabilities Pledged MSR liabilities are carried at fair value and classified as Level 3 within the valuation hierarchy. We determine the fair value of the pledged MSR liability following a similar approach as for the associated transferred MSRs. Fair value of the pledged MSR liability in connection with the MSR capital partner transactions (including MAV) is determined using the fair value mark provided by third-party valuation expert, consistent with the associated MSR, using the same methodology and assumptions, while considering cash flows contractually retained by PHH and expected life of subservicing agreement, when applicable. Fair value for the portion of the borrowing attributable to the MSRs underlying the Rights to MSRs in connection with Rithm transactions is determined using the fair value mark provided by the third-party valuation experts. Significant unobservable assumptions June 30, December 31, Weighted average prepayment speed 5.3 % 6.5 % Weighted average delinquency rate 3.0 % 2.8 % Weighted average subservicing life (in years) 4.7 4.3 Weighted average discount rate 10.4 % 9.6 % Weighted average cost to service (in dollars) $ 134 $ 130 Significant increases or decreases in these assumptions in isolation would result in a significantly higher or lower fair value. ESS Financing Liability The Excess Servicing Spread (ESS) financing liability consists of the obligation to remit to a third party a specified percentage of future servicing fee collections on reference pools of mortgage loans, which we are entitled to as owner of the related MSRs. We have elected to carry the ESS financing liability at fair value and have classified it as Level 3 within the valuation hierarchy. The fair value represents the net present value of the expected servicing spread cash flows, consistent with the valuation model and behavioral projections of the underlying MSR, as applicable. The fair value of the ESS financing liability is determined using a third-party valuation expert. The significant unobservable assumptions used in the valuation of the ESS financing liability include prepayment speeds, delinquency rates, and discount rates. The discount rate is initially determined based on the expected cash flows and the proceeds from each issuance, and is subsequently updated, at each issuance level, to incorporate discount rate assumption updates for the underlying MSR or other factors, as provided by third-party valuation expert. At June 30, 2024 and December 31, 2023, the weighted average discount rate of the ESS financing liability was 9.4% and 9.4%, respectively. Refer to MSRs above for a description of other significant unobservable assumptions. Also see Note 8 — Other Financing Liabilities, at Fair Value. Derivative Financial Instruments |
Loans Held for Sale - Fair Valu
Loans Held for Sale - Fair Value | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Loans Held for Sale - Fair Value | Note 4 – Loans Held for Sale - Fair Value The following table presents the estimated fair value of Loans held for sale for which we elected the fair value option: June 30, 2024 December 31, 2023 Unpaid principal balance $ 1,139.8 $ 678.8 Premium (discount) (28.7) (2.4) Unrealized gain (loss) (7.2) (2.2) Total fair value $ 1,103.9 $ 674.2 The following table presents the composition of Loans held for sale, at fair value by type: June 30, 2024 December 31, 2023 GSE loans $ 558.0 $ 219.3 Government- Forward loans 263.0 254.0 Forward loans repurchased from Ginnie Mae guaranteed securitization (1) 23.9 19.1 Reverse loans (2) 249.8 166.6 Other residential mortgage loans 9.2 15.2 Total $ 1,103.9 $ 674.2 (1) Pursuant to Ginnie Mae servicing guidelines. (2) Includes government-insured inactive reverse mortgage loans purchased from Ginnie Mae securitization pools that reached the 98% of maximum claim amount and are generally liquidated through foreclosure and subsequent sale of the REO properties. As of June 30, 2024 and December 31, 2023, the balance includes $228.7 million and $119.5 million, respectively, of loans pledged as collateral for the Asset-Backed Notes issued by OLIT. Also see Note 2 – Securitizations and Variable Interest Entities and Note 13 – Borrowings. The following table presents the activity of Loans held for sale, at fair value: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning balance $ 1,025.7 $ 845.2 $ 674.2 $ 617.8 Originations and purchases 4,420.5 2,859.9 7,409.4 5,412.3 Proceeds from sales (4,256.4) (2,279.6) (6,837.4) (4,575.8) Principal collections (27.5) (31.6) (50.6) (47.0) Transfers from (to): Loans held for investment, at fair value 0.8 1.5 1.9 3.1 Receivables, net (7.6) (15.6) (18.2) (14.5) REO (Other assets) (4.3) (7.1) (7.3) (11.2) Advances (capitalization upon Ginnie Mae modifications) 2.8 1.7 4.9 3.7 Fair value gain (loss) on loans held for sale, at fair value (1) (54.7) (23.9) (82.2) (41.1) Other 4.5 2.3 9.2 5.5 Ending balance $ 1,103.9 $ 1,352.9 $ 1,103.9 $ 1,352.9 (1) Excludes retained MSR upon securitization. See below table of gain (loss) on loans held for sale, net. The following table presents the components of Gain (loss) of loans held for sale at fair value, net: Gain (Loss) on Loans Held for Sale, Net Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 MSRs retained on transfers of forward mortgage loans $ 67.7 $ 31.5 $ 102.4 $ 62.6 Gain (loss) on sale of mortgage loans (1) (53.6) (28.1) (77.8) (50.2) Gain (loss) on sale of repurchased Ginnie Mae loans (1) (0.2) (0.1) (1.0) 0.1 Change in fair value of loans held for sale (0.9) 4.3 (3.4) 9.1 Gain on loans held for sale, at fair value 13.0 7.6 20.2 21.5 Gain (loss) on economic hedge derivative instruments 5.0 21.2 9.7 4.8 Change in fair value of IRLCs (1.0) (3.2) (1.6) 2.4 Provision for representation and warranty obligations (0.6) (0.3) (0.9) (0.6) $ 16.5 $ 25.3 $ 27.4 $ 28.1 (1) Realized gain (loss) on sale of loans, excluding retained MSRs. |
Reverse Mortgages
Reverse Mortgages | 3 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Reverse Mortgages | Note 5 - Reverse Mortgages The following table presents the estimated fair value of reverse mortgage loans held for investment for which we elected the fair value option: June 30, 2024 December 31, 2023 Unpaid principal balance $ 7,846.3 $ 7,664.7 Fair value adjustments 376.1 305.3 Total fair value $ 8,222.4 $ 7,970.0 The following table presents the composition of reverse mortgage loans held for investment, at fair value by type: June 30, 2024 December 31, 2023 HECM loans - securitized, pledged to HMBS-related borrowings (1) $ 8,109.4 $ 7,868.5 New HECM loan originations and HECM loan tails (2) - unsecuritized 113.0 101.5 Total fair value $ 8,222.4 $ 7,970.0 (1) The Ginnie Mae securitization of conventional, HECM loans does not qualify for sale accounting treatment and is accounted for as a secured financing transaction, with the recognition of both loans and HMBS-related borrowing on the consolidated balance sheets. (2) Tails represent the fair value of future scheduled and unscheduled draw commitments for HECM loans, mortgage insurance premium, servicing fee and other advances which we subsequently securitize. The following table summarizes the activity in reverse mortgage loans held for investment and HMBS related borrowings that do not qualify for sale accounting and for which we elected the fair value option: Three Months Ended June 30, 2024 2023 Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings Beginning balance $ 8,125.0 $ (7,945.0) $ 7,662.9 $ (7,470.6) Originations 269.9 — 272.2 — Securitization of HECM loans accounted for as a financing — (260.3) — (271.1) Additional proceeds from securitization of HECM loans and tails — (3.0) — 0.1 Repayments (principal payments received) (322.0) 316.0 (291.8) 289.8 Transfers to: Loans held for sale, at fair value (0.8) — (1.5) — Receivables, net (0.5) — (1.0) — REO (Other assets) (0.1) — — — Fair value gains (losses) included in earnings (1) 150.9 (143.0) 34.1 (34.5) Ending balance $ 8,222.4 $ (8,035.4) $ 7,674.8 $ (7,486.4) Six Months Ended June 30, 2024 2023 Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings Beginning balance $ 7,970.0 $ (7,797.3) $ 7,504.1 $ (7,326.8) Originations 520.3 — 507.4 — Securitization of HECM loans accounted for as a financing (including realized fair value changes) — (507.7) — (502.3) Additional proceeds from securitization of HECM loans and tails — (6.4) — (6.1) Acquisition — — — — Repayments (principal payments received) (598.9) 588.1 (527.3) 525.1 Transfers to: Loans held for sale, at fair value (1.9) — (3.1) — Receivables, net (1.4) — (2.0) — REO (Other assets) (0.1) — (0.1) — Fair value gains (losses) included in earnings (1) 334.4 (312.0) 195.7 (176.2) Ending balance $ 8,222.4 $ (8,035.4) $ 7,674.8 $ (7,486.4) Securitized loans (pledged to HMBS-related borrowings) $ 8,109.4 $ (8,035.4) $ 7,553.7 $ (7,486.4) Unsecuritized loans 113.0 121.0 Total $ 8,222.4 $ 7,674.8 (1) See further breakdown of the net gain (loss) in the table below. Gain (Loss) on Reverse Loans Held for Investment and HMBS-related Borrowings, Net Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Gain on new originations (1) $ 5.1 $ 4.2 $ 11.0 $ 10.5 Net interest income (servicing fee) (2) 6.1 5.8 12.0 11.7 Other change in fair value of securitized loans held for investment and HMBS-related borrowings, net (3) (3.3) (9.9) (0.7) (1.8) Fair value gains (losses) included in earnings (3) (4) 7.9 0.1 22.4 20.5 Loan fees and other 0.6 0.7 1.5 1.5 $ 8.5 $ 0.7 $ 23.9 $ 21.9 (1) Includes the changes in fair value of newly originated loans held for investment in the period from interest rate lock commitment date through securitization date. (2) Includes the interest income on loans held for investment less the interest expense on HMBS-related borrowings. The net interest income includes the servicing fee Onity is contractually entitled to on securitized loans. (3) Includes the cash realized gains upon securitization of tails (previously reported separately in the table above). (4) See breakdown between Loans held for investment and HMBS-related borrowings in the table above within Fair value gains (losses) included in earnings. |
Advances
Advances | 6 Months Ended |
Jun. 30, 2024 | |
Advances [Abstract] | |
Advances | Note 6 – Advances June 30, 2024 December 31, 2023 Principal and interest $ 180.0 $ 212.5 Taxes and insurance 253.6 343.3 Foreclosures, bankruptcy, REO and other (1) 125.9 130.3 Total advances, before allowance for losses 559.5 686.1 Allowance for losses (8.9) (7.3) Advances, net $ 550.6 $ 678.8 (1) Balance at June 30, 2024 includes servicing advances of $34.8 million (New York), $9.7 million (Florida), $8.8 million (California), $6.2 million (Pennsylvania) and $5.9 million (New Jersey) based on the underlying property location of the related mortgage loans. The following table summarizes the activity in net advances: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning balance - before Allowance for Losses $ 610.5 $ 663.1 $ 686.1 $ 725.1 New advances 204.2 146.5 403.6 335.3 Transfer from (to) Receivables 2.1 2.2 5.0 11.1 Sales of advances (8.3) (0.6) (9.3) (4.9) Collections of advances and other (248.9) (201.1) (525.8) (456.6) Ending balance - before Allowance for Losses 559.5 610.0 559.5 610.0 Beginning balance - Allowance for Losses (7.7) $ (6.2) (7.3) (6.2) Provision expense (4.2) (2.8) (7.1) (4.6) Net charge-offs and other 3.0 1.6 5.5 3.4 Ending balance - Allowance for Losses (8.9) (7.4) (8.9) (7.4) Ending balance, net $ 550.6 $ 602.7 $ 550.6 $ 602.7 |
Mortgage Servicing
Mortgage Servicing | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing | Note 7 – Mortgage Servicing The following table presents the composition of our MSR portfolio: MSR UPB and Fair Value June 30, 2024 December 31, 2023 Fair Value UPB ($ billions) Fair Value UPB ($ billions) Owned MSRs $ 1,720.1 $ 122.0 $ 1,604.6 $ 122.7 Rithm and others transferred MSRs (1) 264.0 18.6 244.8 18.1 MAV transferred MSRs (1) 343.6 22.3 422.8 28.8 Total transferred MSR, subject to Pledged MSR liability, at fair value (1) 607.6 40.9 667.6 46.9 Total MSRs $ 2,327.7 $ 162.9 $ 2,272.2 $ 169.7 (1) MSRs subject to sale agreements that do not meet sale accounting criteria. See Note 8 — Other Financing Liabilities, at Fair Value. Mortgage Servicing Rights – At Fair Value Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning balance $ 2,374.7 $ 2,580.6 $ 2,272.2 $ 2,665.2 Sales (100.9) — (100.9) — Additions: Recognized on the sale of residential mortgage loans 67.7 31.5 102.4 62.6 Purchases of MSRs 34.9 19.1 61.8 44.0 Servicing transfers and adjustments (1) (85.7) (32.5) (87.0) (32.5) Net additions (sales) (84.1) 18.1 (23.7) 74.1 Changes in fair value recognized in earnings: Changes in valuation inputs or assumptions 92.6 136.8 194.4 53.2 Realization of cash flows (55.4) (59.7) (115.2) (116.8) Fair value gains (losses) recognized in earnings 37.2 77.1 79.2 (63.6) Ending balance $ 2,327.7 $ 2,675.7 $ 2,327.7 $ 2,675.7 (1) Servicing transfers and adjustments for the three months ended June 30, 2024 and 2023 include a $85.8 million and a $32.5 million, respectively, derecognition of GSE MSRs previously sold to MAV in a transaction which did not qualify for sale accounting treatment. We derecognized the MSRs with a UPB of $5.5 billion and $2.3 billion, from our June 30, 2024 and June 30, 2023 balance sheets, respectively, together with the associated Pledged MSR liability upon the sale of the MSRs by MAV to a third party. See Note 8 — Other Financing Liabilities, at Fair Value for further information. The following table summarizes the delinquency status of the loans underlying our MSRs: June 30, 2024 December 31, 2023 Delinquent loans GSE GNMA Non - Agency Total GSE GNMA Non - Agency Total Total MSR UPB (in billions) $ 122.9 $ 17.5 $ 22.4 $ 162.9 $ 127.3 $ 18.6 $ 23.8 $ 169.7 30 days 1.3 % 6.2 % 9.4 % 3.7 % 1.2 % 6.1 % 9.4 % 3.7 % 60 days 0.2 2.0 3.5 1.2 0.2 2.0 3.6 1.2 90 days or more 0.5 4.2 7.3 2.5 0.5 3.7 8.2 2.6 Total 30-60-90 days or more 2.0 % 12.5 % 20.2 % 7.3 % 1.9 % 11.8 % 21.2 % 7.5 % The following table summarizes the components of our servicing and subservicing fee revenue: Servicing Revenue Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Loan servicing and subservicing fees Servicing fee $ 91.7 $ 89.4 $ 182.1 $ 179.3 Subservicing fee (4) 26.8 18.4 54.3 38.0 MAV Subservicing fee 1.9 2.0 3.8 3.8 MAV Servicing fee / Transferred MSR (1) 17.8 15.5 35.8 31.9 Rithm and Others Servicing fee / Transferred MSR (1) (3) 19.1 59.2 37.8 118.8 157.2 184.4 313.8 371.8 Ancillary income Custodial accounts (float earnings) 31.9 26.2 59.1 46.4 Late charges 8.7 9.5 16.7 19.0 Reverse subservicing ancillary fees 6.2 9.8 12.9 18.0 Loan collection fees 1.8 2.3 3.6 4.9 Recording fees 1.4 1.3 2.6 2.5 Boarding and deboarding fees 1.0 0.9 1.7 1.8 GSE forbearance fees 0.1 0.3 0.2 0.5 Other, net 2.5 2.9 4.8 4.8 53.6 53.2 101.5 97.9 Total Servicing and subservicing fees $ 210.8 $ 237.6 $ 415.3 $ 469.7 Owned MSR and Subservicing 169.7 157.6 334.0 308.6 Transferred MSR (1) (2) 41.1 80.0 81.3 161.1 (1) Includes servicing fees collected on behalf of respective parties related to transferred MSRs that do not achieve sale accounting. See Note 8 — Other Financing Liabilities, at Fair Value . (2) Includes $4.2 million and $7.8 million for the three and six months ended June 30, 2024, respectively, and $5.3 million and $10.4 million for the three and six months ended June 30, 2023, respectively, of ancillary income associated with transferred MSRs that do not achieve sale accounting. (3) Includes $45.2 million and $90.9 million of servicing fees in the three and six months ended June 30, 2023, respectively, related to MSRs previously sold to Rithm for which the sale accounting criteria were met effective December 31, 2023. See Note 8 — Other Financing Liabilities, at Fair Value . (4) Includes $11.5 million and $23.4 million of subservicing fees in the three and six months ended June 30, 2024 , respectively, related to MSRs previously sold to Rithm for which the sale accounting criteria were met effective December 31, 2023. See Note 8 — Other Financing Liabilities, at Fair Value . Float balances, on which we earn interest referred to as float earnings (balances in custodial accounts, which represent collections of principal and interest that we receive from borrowers on behalf of investors and tax and insurance payments) are held in escrow by unaffiliated banks and are excluded from our unaudited consolidated balance sheets. Float balances amounted to $2.06 billion and $1.56 billion at June 30, 2024 and December 31, 2023, respectively. |
Other Financing Liabilities, at
Other Financing Liabilities, at Fair Value | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing [Abstract] | |
Other Financing Liabilities, at Fair Value | Note 8 — Other Financing Liabilities, at Fair Value The following table presents financing liabilities carried at fair value which include pledged MSR liabilities recorded in connection with MSR transfers, subservicing retained, that do not qualify for sale accounting, liabilities of consolidated mortgage-backed securitization trusts and MSR excess servicing spread (ESS) financing liability carried at fair value (see Note 13 – Borrowings for ESS financing liability carried at amortized cost). Outstanding Balance Borrowing Type Collateral Maturity June 30, 2024 December 31, 2023 MSR transfers not qualifying for sale accounting (1): Pledged MSR liability, at fair value - MAV MSRs (1) $ 333.1 $ 409.2 Rights to MSRs Agreements, at fair value - Rithm MSRs (1) 121.6 121.0 Pledged MSR liability, at fair value - Others MSRs (1) 135.3 115.3 Total Pledged MSR liability, at fair value 590.0 645.5 Financing liability - Owed to securitization investors, at fair value: Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) (2) Loans held for investment October 2033 5.4 5.6 ESS financing liability, at fair value (3) MSRs (3) (3) 250.5 248.9 Total Other financing liabilities, at fair value $ 845.9 $ 900.0 (1) MSRs transferred, subservicing retained, or sold in transactions which do not qualify for sale accounting treatment are accounted for as secured financings. Until such time as the transaction qualifies as a sale for accounting purposes, we continue to recognize the MSRs and the related financing liability (referred as Pledged MSR liability) on our consolidated balance sheets, as well as the full amount of servicing fee collected as revenue and the servicing fee remitted as Pledged MSR liability expense in our consolidated statements of operations. Fair value gains and losses of the Pledged MSR liability are recognized in MSR valuation adjustments, net in the consolidated statements of operations - See Note 7 – Mortgage Servicing and Note 9 – MSR Valuation Adjustments, Net. (2) Consists of securitization debt certificates due to third parties that represent beneficial interests in trusts that are consolidated. (3) Consists of the obligation to remit to a third party a specified percentage of future servicing fee collections (servicing spread) on reference pools of MSRs, which we are entitled to as owner of the related MSRs. The servicing spread remittance is reported in Pledged MSR liability expense and fair value gains and losses of the ESS financing liability are reported in MSR valuation adjustment, net. $33.4 billion UPB of MSR and Pledged MSR liability associated with Rithm servicing agreements were derecognized on December 31, 2023 as MSR sale accounting criteria were met. Effective January 1, 2024, as PHH continues to subservice the portfolio, the statement of operations reflects subservicing fee revenue as opposed to the gross presentation of servicing fee revenue and separate offsetting presentation of servicing fee remittances within Pledged MSR liability expense prior to January 1, 2024. The following tables present the activity of the pledged MSR liability recorded in connection with the MSR transfer agreements with MAV and other unrelated parties, including Rithm, that do not qualify for sale accounting. Three Months Ended June 30, Six Months Ended June 30, Pledged MSR Liability 2024 2023 2024 2023 Beginning balance $ 647.9 $ 883.3 $ 645.5 $ 931.7 MSR transfers MSR transfers to MAV — 0.1 — 0.2 MSR transfers to others 5.8 93.3 12.7 97.6 Total MSR transfers 5.8 93.4 12.7 97.8 Derecognition of financing liability Derecognition of financing liability - MAV (2) (85.7) (32.5) (85.7) (32.5) Total derecognition of financing liability (85.7) (32.5) (85.7) (32.5) Fair value (gain) loss Changes in fair value due to inputs and assumptions 32.5 81.0 40.3 42.7 Realization of expected cash flows (10.4) (15.6) (22.9) (30.1) Total fair value (gain) loss 22.1 65.4 17.4 12.6 Ending balance (1) $ 590.0 $ 1,009.5 $ 590.0 $ 1,009.5 (1) The fair value of the Pledged MSR liability differs from the fair value of the associated transferred MSR asset mostly due to the portion of ancillary income that is contractually retained by PHH (shared between PHH and MAV) and other contractual cash flows. (2) During the three months ended June 30, 2024 and June 30, 2023, we derecognized a portion of the MAV Pledged MSR liability upon sale of the related MSRs by MAV to third parties with a UPB of $5.5 billion and $2.3 billion, respectively. The following tables present the Pledged MSR liability expense recorded in connection with the MSR sale agreements with MAV and other unrelated parties (including Rithm) that do not qualify for sale accounting and the ESS financing liabilities. Three Months Ended June 30, 2024 2023 Rithm and Others MAV Total Rithm and Others (1) MAV Total Servicing fees collected on behalf of MAV, Rithm and others $ 19.1 $ 17.8 $ 36.9 $ 59.2 $ 15.5 $ 74.7 Less: Subservicing fee retained by Onity (4.4) (2.3) (6.8) (16.9) (2.1) (19.1) Ancillary fee/income and other settlement (including expense reimbursement) 3.1 (0.2) 3.0 3.6 (0.2) 3.5 Transferred MSR net servicing fee remittance $ 17.8 $ 15.3 33.1 $ 45.9 $ 13.2 59.1 ESS servicing spread remittance 13.0 13.9 Pledged MSR liability expense $ 46.1 $ 73.0 (1) Includes $45.2 million of servicing fees collected on behalf of Rithm, $12.8 million of subservicing fee retained and $32.4 million of net servicing fee remittance in the three months ended June 30, 2023 related to MSRs previously sold to Rithm for which the sale accounting criteria were met effective December 31, 2023. Six Months Ended June 30, 2024 2023 Rithm and Others MAV Total Rithm and Others (1) MAV Total Servicing fees collected on behalf of Rithm, MAV and others $ 37.8 $ 35.8 $ 73.6 $ 118.8 $ 31.9 $ 150.7 Less: Subservicing fee retained by Onity (9.0) (4.9) (13.9) (34.2) (4.4) (38.6) Ancillary fee/income and other settlement (including expense reimbursement) 5.5 (0.3) 5.3 6.9 (0.2) 6.7 Transferred MSR net servicing fee remittance $ 34.3 $ 30.7 65.0 $ 91.5 $ 27.3 118.8 ESS servicing spread remittance 26.1 24.5 Pledged MSR liability expense $ 91.0 $ 143.3 (1) Includes $90.9 million of servicing fees collected on behalf of Rithm, $25.9 million of subservicing fee retained and $65.0 million of net servicing fee remittance in the six months ended June 30, 2023 related to MSRs previously sold to Rithm for which the sale accounting criteria were met effective December 31, 2023. MAV (Related Party) Transactions PHH entered into agreements to sell MSR portfolios to its related party MAV, on a bulk and flow basis, for which PHH has been retained as subservicer. While MSR legal title has transferred to MAV, the transactions do not qualify for sale accounting treatment primarily due to the termination restrictions of the subservicing agreement. See Note 11 - Investment in Equity Method Investee and Related Party Transactions. Accordingly, we continue to report the MSR and an associated Pledged MSR liability on our consolidated balance sheet. Rithm Transactions Starting in 2012, Onity and PHH entered into agreements to sell MSRs and the related servicing advances to Rithm, and in all cases have been retained by Rithm as subservicer. As of June 30, 2024, all transactions met sale accounting treatment except for the agreement to sell a $9.5 billion MSR portfolio to Rithm, referred to as Rights to MSRs (or RMSR). While most of the economics and risks of the MSR and related advances have contractually transferred to Rithm, the MSR legal title was retained by Onity and the third-party consents required for title transfer were not obtained, causing the transactions to be accounted for as secured financings. Accordingly, we continue to report the MSR and an associated Pledged MSR liability on our consolidated balance sheet. Prior to December 31, 2023, while MSR legal title had transferred to Rithm, other MSR sale transactions with a UPB of $33.4 billion did not qualify for sale accounting treatment, primarily due to the length of the non-cancellable term of the subservicing agreements. On December 31, 2023, we derecognized $421.7 million non-Agency MSRs and Pledged MSR liability associated with Rithm servicing agreements with a UPB of $33.4 billion for which MSR sale accounting criteria was met. Specifically, with the amendments described below, starting on December 31, 2023, the parties have the right to cancel or decline to renew the servicing agreements within a reasonable period of time. On May 2, 2022, Onity entered into amendments to its servicing agreements with Rithm to extend their terms to December 31, 2023 and provide for subsequent, automatic one-year renewals, unless Onity provides six months’ advance notice of termination (by July 1), or Rithm provides three months’ advance notice of termination (by October 1), among other changes. Onity and Rithm did not provide notice of termination by July 1, 2024 and October 1, 2023, respectively. Accordingly, all servicing agreements with Rithm, including the $9.5 billion of RMSR and $33.6 billion of subservicing, are extended through December 31, 2024, with subsequent, automatic one-year renewals. Rithm has the right to terminate the $9.5 billion RMSRs for convenience, in whole but not in part, subject to three months’ advance notice of termination. If Rithm exercises this termination right, Rithm has the option of seeking (i) the transfer of the MSRs through a sale to a third party of its Rights to MSRs (together with a transfer of Onity’s title to those MSRs) or (ii) a substitute RMSR arrangement that substantially replicates the Rights to MSRs structure under which we would transfer title to the MSRs to a successor servicer and Rithm would continue to own the economic rights and obligations related to the MSRs. In the case of option (i), we have a purchase option, as specified in the RMSR Agreements. If Rithm is not able to sell the Rights to MSRs or establish a substitute RMSR arrangement with another servicer, Rithm has the right to revoke its termination notice and re-instate the applicable servicing addendum or to establish a subservicing arrangement whereby the MSRs remaining subject to the RMSR Agreements would be transferred to up to three subservicers who would subservice under Onity’s oversight. If such a subservicing arrangement were established, Onity would receive an oversight fee and reimbursement of expenses. We may also agree on alternative arrangements that are not contemplated under our existing agreements or that are variations of those contemplated under our existing agreements. Other MSR Capital Partner Transactions PHH entered into agreements to sell MSR portfolios to different unrelated third parties, referred to as MSR capital partners, on a bulk and flow basis, for which PHH has been retained as subservicer. While MSR legal title has transferred to the MSR capital partners, the transactions do not qualify for sale accounting treatment primarily due to the termination restrictions of the subservicing agreements. Accordingly, we continue to report the MSR and an associated Pledged MSR liability on our consolidated balance sheet. |
MSR Valuation Allowance, Net
MSR Valuation Allowance, Net | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing [Abstract] | |
MSR Valuation Adjustments, Net | Note 9 – MSR Valuation Adjustments, Net The table below presents the components of MSR valuation adjustments, net, that include four MSR related instruments which we account for at fair value with changes in fair value recorded in earnings: (i) the fair value changes of the total MSR portfolio (Total MSRs) recorded on our consolidated balance sheets ($2.3 billion fair value asset at June 30, 2024). Total MSRs include owned MSRs and MSRs that have been sold or transferred to third parties in transactions that do not achieve sale accounting criteria. Owned MSRs include MSRs subject to ESS financing transactions; (ii) the fair value changes of the Pledged MSR liabilities recorded as liabilities on our consolidated balance sheets when MSR sale accounting criteria are not achieved ($590.0 million fair value liability at June 30, 2024); (iii) the fair value changes of the ESS financing liabilities for which we elected the fair value option ($250.5 million fair value liability at June 30, 2024); and (iv) the fair value changes of the derivative instruments economically hedging the MSR exposure. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Total MSRs (1) $ 37.2 $ 77.2 $ 79.2 $ (63.3) Pledged MSR liabilities (2) (3) (22.1) (65.4) (17.5) (12.7) ESS financing liabilities (2) 2.9 4.6 (1.7) 9.3 Derivative fair value gain (loss) (MSR economic hedges) (4) (50.6) (65.2) (104.3) (51.1) MSR valuation adjustments, net $ (32.7) $ (48.9) $ (44.3) $ (117.9) (1) Also refer to Note 7 – Mortgage Servicing. (2) Also refer to Note 8 — Other Financing Liabilities, at Fair Value for additional information related to the ESS financing liability and Pledged MSR liability, including a tabular presentation of activity of the Pledged MSR liability for the reported years. (3) MSR transfers that do not achieve sale accounting. (4) Also refer to Note 15 – Derivative Financial Instruments and Hedging Activities. |
Receivables
Receivables | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Receivables | Note 10 – Receivables June 30, 2024 December 31, 2023 Servicing-related receivables: Government-insured loan claims - Forward $ 37.2 $ 43.6 Government-insured loan claims - Reverse 60.8 64.5 Due from custodial accounts 14.8 13.8 Subservicing fees and reimbursable expenses 14.9 14.3 Receivable from sale of MSRs (holdback) 6.3 5.1 Subservicing fees, reimbursable expenses and other - Due from MAV 0.8 3.4 Other 6.4 4.5 141.3 149.2 Income taxes receivable (1) 27.8 27.1 Other receivables 4.7 3.6 173.8 179.9 Allowance for losses (20.4) (25.1) $ 153.4 $ 154.8 (1) Includes $26.0 million and $25.2 million at June 30, 2024 and December 31, 2023, respectively, from the USVI Bureau of Internal Revenue (BIR) for a refund of income taxes paid in prior years. In December 2022, we executed an agreement with the BIR for payment of the income tax refunds related to tax years 2013 through 2015, plus accrued interest, over a two-year period ending December 31, 2024. The BIR did not make the payment that was due on December 31, 2023 nor any subsequent payments pursuant to the agreement. On February 8, 2024, we filed a lawsuit against the USVI for the refund of income taxes paid in prior years and for the USVI’s breach of the above-referenced agreement. Allowance for Losses Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning balance $ 22.7 $ 29.5 $ 25.1 $ 34.3 Provision 3.1 4.0 7.1 7.9 Charge-offs and other, net (5.4) (6.1) (11.8) (14.9) Ending balance $ 20.4 $ 27.4 $ 20.4 $ 27.4 |
Investment in Equity Method Inv
Investment in Equity Method Investee and Related Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Equity Method Investee and Related Party Transactions | Note 11 - Investment in Equity Method Investee and Related Party Transactions We account for our 15% investment in MAV Canopy under the equity method. Under the Amended & Restated Limited Liability Company Agreement with MAV Canopy, Onity is entitled to receive its 15% percentage interest share of MAV Canopy’s earnings, subject to certain adjustments. In addition, upon MAV Canopy liquidation or upon determination of the MAV Canopy Board of Directors to make advance distributions, Onity is entitled to receive a specified portion of the distribution amount available (Promote Distribution), after satisfaction of required distribution thresholds, including a specified internal rate of return threshold on the Oaktree member’s gross adjusted capital contributions. We determined that the Promote Distribution represents an incentive fee under our various service agreements with MAV with a variable consideration and is recognized in earnings when it is probable that a significant reversal will not occur. As of June 30, 2024, Onity has not recognized any such Promote Distribution income. PHH entered into a Subservicing Agreement with MAV for exclusive rights to service the mortgage loans underlying MSRs owned by MAV. The Subservicing Agreement will continue until terminated by mutual agreement of the parties or for cause, as defined. MAV is permitted to sell the underlying MSR, in whole or in part, without Onity’s consent after May 3, 2024. As of June 30, 2024, PHH subserviced a total of $52.9 billion UPB on behalf of MAV under the Subservicing Agreement, of which $22.3 billion of MSRs were previously sold by PHH to MAV and do not qualify for sale accounting and thus remain reported on the consolidated balance sheet of PHH, with a fair value of $343.6 million MSR and $333.1 million Pledged MSR liability - see Note 8 — Other Financing Liabilities, at Fair Value. The fair value of the Pledged MSR liability is determined using the fair value mark provided by third-party valuation experts, consistent with the associated MSR, using the same methodology and assumptions, while considering cash flows contractually retained by PHH during the expected life of the Subservicing Agreement. We are exposed to a risk of loss of this net $10.6 million asset value if, and to the extent that MAV sells the $22.3 billion MSR portfolio, in whole or in part at a faster pace than anticipated or if prepayments exceeds expectations, among other factors. If MAV sells its whole portfolio, we would be entitled to a Promote Distribution, if any, depending on the then return distribution thresholds, as discussed above. During the six months ended June 30, 2024 and 2023, PHH transferred UPB of $30.1 million and $17.9 million under a flow MSR sale agreement (Recapture Agreement), respectively. During the six months ended June 30, 2024 and 2023, PHH transferred no MSRs to MAV under the various MSR purchase and sale agreements. These MSR sale transactions between PHH and MAV do not qualify for sale accounting primarily due to the termination restrictions of the subservicing agreement, and are accounted for as secured financings. See Note 8 — Other Financing Liabilities, at Fair Value. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2024 | |
Other Assets [Abstract] | |
Other Assets | Note 12 – Other Assets June 30, 2024 December 31, 2023 Prepaid expenses (including prepaid lender fees) $ 24.9 $ 34.3 REO 20.9 18.3 Derivatives, at fair value 12.6 21.6 Derivative margin deposit 8.6 12.8 Prepaid representation, warranty and indemnification claims - Agency MSR sale 5.0 5.0 Intangible assets, net (net of accumulated amortization of $11.8 million and $10.1 million) 4.6 6.2 Deferred tax asset, net 3.4 3.1 Other 4.3 5.0 $ 84.3 $ 106.2 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 13 – Borrowings Advance Match Funded Liabilities Available Borrowing Capacity Outstanding Balance Borrowing Type Expected Repayment Date (1) Uncommitted Committed June 30, 2024 December 31, 2023 $500 million Ocwen Master Advance Receivables Trust (OMART) - Advance Receivables Backed Notes - Series 2015-Variable Funding (VF) 5 (2) August 2025 $ 50.0 $ 96.7 $ 353.3 $ 409.8 $200 million Ocwen GSE Advance Funding (OGAF) - Advance Receivables Backed Notes, Series 2015-VF1 (2) August 2025 — 149.0 51.0 89.1 $14.4 million EBO Advance facility (3) May 2026 13.7 — 0.7 0.9 Total Advance match funded liabilities $ 63.7 $ 245.7 $ 405.0 $ 499.7 Weighted average interest rate (4) 7.88 % 8.07 % (1) The Expected Repayment Date of our facilities, as defined, is the date on which the revolving period ends under each advance facility note and repayment of the outstanding balance is required if the note is not renewed or extended. In certain of our advance facilities, there are multiple notes outstanding. (2) The committed borrowing capacity under the OMART and OGAF facilities is available to us provided that we have sufficient eligible collateral to pledge. At June 30, 2024, none of the available borrowing capacity of the OMART and OGAF advance financing notes could be used based on the amount of eligible collateral. (3) At June 30, 2024, none of the available borrowing capacity of the facility could be used based on the amount of eligible collateral. (4) The weighted average interest rate excludes the effect of the amortization of prepaid lender fees. At June 30, 2024 and December 31, 2023, the balance of unamortized prepaid lender fees was $3.8 million and $5.5 million, respectively, and are included in Other assets in our consolidated balance sheets. At June 30, 2024 and December 31, 2023, 1-Month (1M) Term Secured Overnight Financing Rate (SOFR) was 5.34% and5.35%, respectively. Mortgage Loan Financing Facilities Available Borrowing Capacity Outstanding Balance Borrowing Type Collateral Maturity Uncommitted Committed (1) June 30, 2024 December 31, 2023 $200 million Master repurchase agreement (2) LHFS, April 2024 $ — $ — $ — $ — $50 million Loan and security agreement (3) LHFS and Receivables June 2024 — — — — $40 million Mortgage warehouse agreement (4) LHFI September 2024 — 40.0 — — Master repurchase agreement LHFS September 2024 — 1.0 — — $400 million Participation agreement LHFS September 2024 139.1 — 260.9 83.9 $200 million Master repurchase agreement LHFS, LHFI and Receivables September 2024 — 161.6 38.4 64.2 $30 million Loan and security agreement LHFI September 2024 — 18.4 11.6 — $175 million Master repurchase agreement Loans held for sale (LHFS), Receivables and REO October 2024 125.0 45.3 4.7 15.7 $500 million Master repurchase agreement (5) LHFS and LHFI January 2025 204.5 — 295.5 168.4 $205 million Mortgage warehouse agreement (6) LHFS and LHFI May 2025 117.0 — 88.0 71.1 Mortgage Loan Financing Facilities Available Borrowing Capacity Outstanding Balance Borrowing Type Collateral Maturity Uncommitted Committed (1) June 30, 2024 December 31, 2023 OLIT Asset-Backed Notes, Series 2023-HB1 (7) Reverse LHFS, June 2036 — — 127.0 164.4 OLIT Asset-Backed Notes, Series 2024-HB1 (7) Reverse LHFS, February 2037 — — 187.1 — $350 million Mortgage warehouse agreement (8) LHFS N/A 350.0 — — — $230 million Mortgage warehouse agreement (9) LHFS and Receivables (9) 219.4 — 10.6 12.2 Master repurchase agreement (10) LHFS (10) — — 200.7 151.7 Total Mortgage loan financing facilities $ 1,155.1 $ 266.3 $ 1,224.3 $ 731.6 Unamortized discount and debt issuance costs - OLIT Notes (33.9) (21.0) Total Mortgage loan financing facilities, net $ 1,190.5 $ 710.6 Weighted average interest rate (11) 5.90 % 6.15 % (1) Of the borrowing capacity on mortgage loan financing facilities extended on a committed basis, none of the available borrowing capacity could be used at June 30, 2024 based on the amount of eligible collateral that could be pledged on a committed basis. (2) On April 1, 2024, we voluntarily allowed the facility to mature. (3) This revolving facility agreement provides committed borrowing capacity secured by eligible HECM loans that are active buyouts, as defined in the agreement. On June 28,2024, we voluntarily allowed the facility to mature. (4) In June 2024, the maturity date was extended to September 30, 2024 . (5) In January 2024, the maturity date was extended to January 3, 2025. (6) In May 2024, the maturity date was extended to May 31, 2025 and the total maximum borrowing under this agreement was increased to $205.0 million. (7) In June 2023 and February 2024, OLIT issued different classes of Asset-Backed Notes with an initial principal amount of $264.9 million and $268.6 million, at a discount and a mandatory call date of June 2026 and February 2027, respectively, both with a stated interest rate of 3.0%. Payments of interest and principal are made from available funds from a pool of reverse mortgage buyout loans and REOs in accordance with the indenture priority of payments. Also see Note 2 – Securitizations and Variable Interest Entities. (8) This agreement has no stated maturity dat e. (9) The agreement has no stated maturity date, however each transaction has a maximum duration of four years. (10) This repurchase agreement provides borrowing at our discretion up to a certain maximum amount of capacity on a rolling 90-day committed basis. This facility is structured as a gestation repurchase facility whereby dry Agency mortgage loans are transferred to a trust which issues a trust certificate that is pledged as the collateral for the borrowings. Each certificate is renewed monthly. In April 2024, we voluntarily increased the trust certificates by $50.0 million to $200.0 million. See Note 2 – Securitizations and Variable Interest Entities for additional information. (11) The weighted average interest rate excludes the effect of the amortization of discount, debt issuance costs and prepaid lender fees. At June 30, 2024 and December 31, 2023, unamortized prepaid lender fees were $0.6 million and $1.0 million, respectively, and are included in Other assets in our consolidated balance sheets. MSR Financing Facilities Available Borrowing Capacity Outstanding Balance Borrowing Type Collateral Maturity Uncommitted Committed (1) June 30, 2024 December 31, 2023 $365 million GSE MSR financing facility (2) MSRs August 2024 $ — $ 119.9 $ 245.1 $ 242.9 $300 million Ginnie Mae MSR financing facility (3) MSRs, Advances February 2025 93.0 — 207.0 212.5 Ocwen Excess Spread-Collateralized Notes, Series 2022-PLS1 (4) MSRs February 2025 — — 32.1 39.2 2022-PLS1 Notes Issuer Membership Interest Master repurchase agreement (5) MSRs February 2025 — — 34.0 — $400 million GSE MSR financing facility (6) MSRs December 2025 — 15.5 384.5 393.9 Secured Notes, Ocwen Asset Servicing Income Series Notes, Series 2014-1 MSRs February 2028 — — 25.5 28.1 Total MSR financing facilities $ 93.0 $ 135.4 $ 928.2 $ 916.6 Unamortized debt issuance costs - PLS facilities (7) (0.5) (0.4) Total MSR financing facilities, net $ 927.7 $ 916.2 Weighted average interest rate (8) 8.26% 8.18% (1) Of the borrowing capacity on MSR financing facilities extended on a committed basis, $28.2 million of the available borrowing capacity could be used at June 30, 2024 based on the amount of eligible collateral that could be pledged on a committed basis. (2) PHH’s obligations under this facility are secured by a lien on certain related MSRs. Onity guarantees the obligations of PHH under this facility. See Note 2 – Securitizations and Variable Interest Entities for additional information. We are subject to daily margining requirements under the terms of the facility. In June 2024, the maturity date was extended to August 28, 2024 . (3) PHH’s obligations under this facility are secured by a lien on the related Ginnie Mae MSRs and servicing advances. Onity guarantees the obligations of PHH under the facility. We are subject to daily margining requirements under the terms of the facility. In March 2024, the maturity date was extended to February 25, 2025 and the uncommitted borrowing capacity was increased to $300.0 million. (4) The single class PLS Notes are an amortizing debt instrument with an original principal amount of $75.0 million and a fixed interest rate of 5.114%. The PLS Notes are issued by a trust (PLS Issuer) that is included in our consolidated financial statements, and PLS Issuer’s obligations under the facility are secured by a lien on the related PLS MSRs. Onity guarantees the obligations of PLS Issuer under the facility. The principal balance amortizes in accordance with a predetermined schedule subject to modification under certain events, with a final payment due in February 2025. See Note 2 – Securitizations and Variable Interest Entities for additional information. (5) On March 4, 2024, PHH entered into a $34.0 million repurchase agreement pursuant to which PHH sold the membership interest certificate representing 100% of the limited liability company interests in PLS Issuer and has agreed to repurchase such membership interest certificate at a specified future date at the price set forth in the repurchase agreement. Onity guarantees the obligations of PHH under the facility subject to the terms and conditions set forth in the guaranty. We are subject to daily margining requirements under the terms of the facility. Refer to Note 2 – Securitizations and Variable Interest Entities for additional information regarding PLS Issuer and the PLS Notes. (6) This facility is secured by a lien on certain of PHH’s Agency MSRs and is subject to daily margining requirements. Any outstanding borrowings on the revolving loan will convert into a term loan in November 2024. (7) At June 30, 2024 and December 31, 2023, unamortized prepaid lender fees related to revolving-type MSR financing facilities were $2.4 million and $3.6 million, respectively, and are included in Other assets in our consolidated balance sheets. (8) Weighted average interest rate excludes the effect of the amortization of debt issuance costs and prepaid lender fees. Senior Notes Interest Rate (1) Maturity Outstanding Balance June 30, 2024 December 31, 2023 PMC Senior Secured Notes (2) 7.875% March 2026 $ 312.6 $ 360.0 OFC Senior Secured Notes (due to related parties) (3) 12% paid in cash or 13.25% paid-in-kind (see below) March 2027 285.0 285.0 Principal balance 597.6 645.0 Unamortized discount (0.6) (0.9) Unamortized debt issuance costs (2.1) (3.0) PMC Senior Secured Notes (2.7) (3.9) Unamortized discount (34.3) (39.1) Unamortized debt issuance costs (5.4) (6.2) OFC Senior Secured Notes (39.7) (45.3) $ 555.2 $ 595.8 (1) Excludes the effect of the amortization of debt issuance costs and discount. (2) Redeemable at 101.969% before March 15, 2025, at par thereafter. The Indenture contains customary covenants for debt securities of this type that limit the ability of PHH Corporation and its restricted subsidiaries (including PHH) to, among other things, (i) incur or guarantee additional indebtedness, (ii) incur liens, (iii) pay dividends on or make distributions in respect of PHH Corporation’s capital stock or make other restricted payments, (iv) make investments, (v) consolidate, merge, sell or otherwise dispose of certain assets, and (vi) enter into transactions with Onity’s affiliates. (3) Redeemable at par plus a make-whole premium prior to March 4, 2026, at par thereafter. The make-whole premium represents the present value of all scheduled interest payments due through March 4, 2026. The Notes are solely the obligation of Onity and are secured by a pledge of substantially all of the assets of Onity, including a pledge of the equity of Onity’s directly held subsidiaries. During March 2024, we repurchased a total of $47.4 million of the PMC Senior Secured Notes in the open market for a price of $45.5 million and recognized a $1.4 million gain on debt extinguishment, net of the respective write-off of unamortized discount and debt issuance costs. Credit Ratings Credit ratings are intended to be an indicator of the creditworthiness of a company’s debt obligations. On January 25, 2024, S&P affirmed the issuer credit rating for Onity of “B-” and the “B” rating of the PMC Senior Secured Notes. On April 12, 2024, Moody’s upgraded PHH’s long-term corporate family ratings to “B3" from “Caa1” and revised their outlook to Stable from Positive. Moody’s also affirmed its “B2” rating of the PMC Senior Secured Notes. Covenants Under the terms of our debt agreements, we are subject to various affirmative and negative covenants. Collectively, these covenants include: • Financial covenants, including, but not limited to, specified levels of net worth, liquidity and leverage; • Covenants to operate in material compliance with applicable laws; • Restrictions on our ability to engage in various activities, including but not limited to incurring or guarantying additional forms of debt, paying dividends or making distributions on or purchasing equity interests of Onity and its subsidiaries, repurchasing or redeeming capital stock or junior capital, repurchasing or redeeming subordinated debt prior to maturity, issuing preferred stock, selling or transferring assets or making loans or investments or other restricted payments, entering into mergers or consolidations or sales of all or substantially all of the assets of Onity and its subsidiaries or of PHH Corporation or PHH and their respective subsidiaries, creating liens on assets to secure debt, and entering into transactions with affiliates; • Monitoring and reporting of various specified transactions or events, including specific reporting on defined events affecting collateral underlying certain debt agreements; and • Requirements to provide audited financial statements within specified timeframes, including requirements that Onity’s financial statements and the related audit report be unqualified as to going concern. The most restrictive consolidated net worth requirement contained in our debt agreements with borrowings outstanding at June 30, 2024, excluding additional Agency minimum requirements, is a minimum of $275.0 million and $300.0 million, tangible net worth for Onity and PHH, respectively. The most restrictive liquidity requirement under our debt agreements with borrowings outstanding at June 30, 2024, excluding additional Agency minimum requirements, is for a minimum of $75.0 million for both Onity and PHH consolidated liquidity. The minimum tangible net worth and liquidity requirements at PHH contained in some debt agreements are also subject to the minimum requirements set forth by the Agencies. See Note 19 – Regulatory Requirements. We believe we were in compliance with all of the covenants in our debt agreements as of the date of these unaudited consolidated financial statements. Collateral Our assets held as collateral for secured borrowings and other unencumbered assets which may be subject to a lien under various collateralized borrowings are as follows at June 30, 2024: Assets Pledged Collateralized Borrowings Unencumbered Assets (1) Cash $ 203.1 $ — $ — $ 203.1 Restricted cash 46.3 46.3 9.4 — Loans held for sale 1,107.0 1,063.7 1,063.6 43.3 Loans held for investment - securitized (2) 8,109.4 8,109.4 8,035.4 — Loans held for investment - unsecuritized 113.0 81.9 71.8 31.2 MSRs (3) 1,720.1 1,729.1 1,147.7 — Advances, net 550.6 469.2 435.8 81.5 Receivables, net 153.4 56.4 60.3 97.0 REO 20.9 17.9 19.3 3.0 Total (4) $ 12,023.8 $ 11,573.9 $ 10,843.1 $ 458.9 (1) Certain assets are pledged as collateral to the PMC Senior Secured Notes and OFC Senior Secured (second lien) Notes. (2) Reverse mortgage loans and real estate owned are pledged as collateral to the HMBS beneficial interest holders, and are not available to satisfy the claims of our creditors. Ginnie Mae, as guarantor of the HMBS, is obligated to the holders of the HMBS in an instance of PHH’s default on its servicing obligations, or if the proceeds realized on HECMs are insufficient to repay all outstanding HMBS related obligations. Ginnie Mae has recourse to PHH in connection with certain claims relating to the performance and obligations of PHH as both issuer of HMBS and servicer of HECMs underlying HMBS. (3) Excludes MSRs transferred to MAV, Rithm and others, and associated Pledged MSR liability recorded as sale accounting criteria are not met. Pledged assets exceed the MSR asset balance primarily due to the netting of certain PLS MSR portfolios with negative and positive fair values as eligible collateral. (4) The total of selected assets disclosed in the above table does not represent the total consolidated assets of Onity. For example, the total excludes premises and equipment and certain other assets. The OFC Senior Secured Notes due 2027 have a second lien priority on specified security interests, as defined under the OFC Senior Secured Note Agreement and summarized in the table below, and have a priority lien on the following assets: investments by OFC in subsidiaries not guaranteeing the PMC Senior Secured Notes, including PHH Corporation and MAV; cash and investment accounts at OFC; and certain other assets, including receivables. June 30, 2024 Specified net servicing advances $ 153.0 Specified deferred servicing fee 5.4 Specified MSR value less borrowings 674.5 Specified unrestricted cash balances 127.3 Specified advance facility reserves 10.6 Specified loan value 78.0 Specified residual value — Total $ 1,048.7 |
Other Liabilities
Other Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Note 14 – Other Liabilities June 30, 2024 December 31, 2023 Due to Rithm - Advance collections and servicing fees $ 54.2 $ 50.3 Checks held for escheat 53.3 52.0 Other accrued expenses 48.5 67.5 Servicing-related obligations 47.4 48.4 Liability for indemnification obligations 36.1 35.5 Accrued interest payable 15.3 14.3 Accrued legal fees and settlements 15.1 8.3 Liability for uncertain tax positions 12.8 12.2 Derivative related payables 12.1 10.7 Lease liability 10.2 10.2 Derivatives, at fair value 9.9 7.0 Liability for unfunded pension obligation and India gratuity plan 7.8 9.2 Mortgage insurance premium payable 5.1 5.0 MSR purchase price holdback 3.6 3.8 Income taxes payable 2.1 8.2 Excess servicing fee spread payable 1.8 3.6 Other 2.7 3.2 $ 337.9 $ 349.3 |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Note 15 – Derivative Financial Instruments and Hedging Activities The table below summarizes the fair value, notional and maturity of our derivative instruments. The notional amount of our contracts does not represent our exposure to credit loss. None of the derivatives were designated as a hedge for accounting purposes as of or during the six months ended June 30, 2024 and 2023. June 30, 2024 December 31, 2023 Maturities Notional Fair value Maturities Notional Fair value Derivative Assets (Other assets) Forward sales of Reverse loans July 2024 $ 20.0 $ — N/A $ — $ — Forward loans IRLCs July - October 2024 1,532.4 3.5 January - May 2024 592.5 5.1 Reverse loans IRLCs September 2024 22.2 0.6 February 2024 22.1 0.6 TBA forward MBS trades July - September 2024 2,269.7 7.5 January - March 2024 1,818.6 10.1 Forward sales of Forward loans N/A — — January 2024 5.5 — Interest rate swap futures September 2024 250.0 0.5 March 2024 790.0 3.9 Interest rate option contracts July 2024 250.0 0.2 January 2024 750.0 1.9 Treasury futures contracts September 2024 75.0 0.1 N/A — — Total $ 4,419.2 $ 12.6 $ 3,978.7 $ 21.6 Derivative Liabilities (Other liabilities) Forward sales of Reverse loans July 2024 20.0 — January 2024 50.0 (0.1) TBA forward MBS trades July - August 2024 2,110.5 (8.2) January - March 2024 854.9 (6.8) Interest rate swap futures September 2024 350.0 (1.5) N/A — — Interest rate option contracts July 2024 250.0 (0.2) N/A — — Other N/A — — N/A 15.3 (0.1) Total $ 2,730.5 $ (9.9) $ 920.2 $ (7.0) The table below summarizes the net gains and losses of our derivative instruments recognized in our consolidated statements of operations. Three Months Ended June 30, Six Months Ended June 30, Financial Statement Line Gain (Loss) 2024 2023 2024 2023 Derivative Instruments Forward loans IRLCs $ (1.0) $ (3.2) $ (1.6) $ 2.4 Gain on loans held for sale, net Reverse loans IRLCs 0.1 (0.2) 0.1 (0.3) Gain on reverse loans held for investment and HMBS-related borrowings, net Forward trades (economically hedging forward pipeline trades and EBO pipeline) 0.3 — — — Gain on loans held for sale, net (Economic hedge) TBA trades (economically hedging forward pipeline trades and EBO pipeline) 4.8 21.2 9.7 4.8 Gain on loans held for sale, net (Economic hedge) Interest rate futures, TBA trades and interest rate option contracts (economically hedging MSR) (50.6) (65.2) (104.3) (51.1) MSR valuation adjustments, net Forward sales of Reverse loans (0.2) — 0.1 — Gain on reverse loans held for investment and HMBS-related borrowings, net Other — — — 0.3 Other, net Total $ (46.7) $ (47.4) $ (96.0) $ (44.0) Interest Rate Risk MSR Hedging MSRs are carried at fair value with changes in fair value being recorded in earnings in the period in which the changes occur. The fair value of MSRs is subject to changes in market interest rates among other inputs and assumptions. The objective of our MSR interest rate risk management and hedging policy is to protect shareholders’ equity and earnings against the fair value volatility of interest-rate sensitive MSR portfolio exposure, considering market, liquidity, cost and other conditions. The interest-rate sensitive MSR portfolio exposure is defined as follows: • Agency MSR portfolio, • expected Agency MSR bulk transactions subject to letters of intent (LOI), • less the Agency MSRs subject to our sale agreements with MAV, Rithm and others, also referred to as Pledged MSR liabilities (See Note 8 — Other Financing Liabilities, at Fair Value), • less the asset value for securitized HECM loans, net of the corresponding HMBS-related borrowings, • other interest-rate sensitive exposures, including our ESS financing liabilities, as deemed appropriate by the Market Risk Committee. The hedge coverage ratio, defined as the ratio of hedge and asset rate sensitivity (referred to as DV01) is subject to lower and upper target thresholds under our policy. We regularly evaluate the hedge coverage ratio at the intended shock interval to determine if it is relevant or warrants adjustment based on market conditions, symmetry of interest rate risk exposure, liquidity impacts under shock scenarios and other factors. As the market dictates, management may choose to maintain the hedge coverage ratio at different thresholds, with approval of the Market Risk Committee, in order to preserve liquidity and/or optimize asset returns. Effective September 2022, a minimum 25% and 30% hedge coverage ratios were required for interest rate declines less than, and more than 50 basis points, respectively. During the second quarter of 2023, management raised its minimum hedge coverage ratio to 60%. Effective December 2023, we established a targeted hedge coverage ratio range between 95% and 105%. In April 2024, we changed the risk measure to a dollar DV01 that resulted in an equivalent range of approximately 90% to 110%. With a partial hedge coverage ratio, the changes in fair value of our hedging instruments may not fully offset the changes in fair value of our net MSR portfolio exposure attributable to interest rate changes. In addition, while DV01 measures may remain within the range of our hedging strategy’s objective, actual changes in fair value of the derivatives and MSR portfolio may not offset to the same extent, due to many factors. These factors include non-parallel changes in the interest rate curve, the convexity of the MSR, the basis risk inherent in the MSR profile and hedging instruments, model risk observed between actual vs. expected fair value changes, and hedge costs. We continuously evaluate the use of hedging instruments with the objective of enhancing the effectiveness of our interest rate hedging strategy. Our derivative instruments include forward trades of MBS or Agency TBAs with different banking counterparties, exchange-traded interest rate futures and interest rate options. These derivative instruments are not designated as accounting hedges. TBAs, or To-Be-Announced securities, are actively traded, forward contracts to purchase or sell Agency MBS on a specific future date. From time-to-time, we enter into exchange-traded options contracts with purchased put options financed by written call options. We report changes in fair value of these derivative instruments in MSR valuation adjustments, net in our consolidated statements of operations, within the Servicing segment. We may, from time to time, establish inter-segment derivative instruments between the MSR and pipeline hedging strategies to minimize the use of third-party derivatives. The fair value gains and losses of such inter-segment derivatives effectively reclassify certain derivative gains and losses between MSR valuation adjustments, net within the Servicing segment and Gain on loans held for sale, net within the Originations segment to reflect the performance of these economic hedging strategies in the appropriate segments (see Note 18 – Business Segment Reporting for the amount of such reclassification). Such inter-segment derivatives are eliminated in our consolidated financial statements. The derivative instruments are subject to margin requirements, posted as either initial or variation margin. Onity may be required to post or may be entitled to receive cash collateral with its counterparties through margin calls, based on daily value changes of the instruments. Changes in market factors, including interest rates, and our credit rating may require us to post additional cash collateral and could have a material adverse impact on our financial condition and liquidity. Pipeline Hedging - Interest Rate Lock Commitments and Loans Held for Sale, at Fair Value In our Originations business, we are exposed to interest rate risk and related price risk during the period from the date of the interest rate lock commitment through (i) the lock commitment cancellation or expiration date or (ii) through the date of sale or securitization of the resulting loan into the secondary mortgage market. Loan commitments for forward loans generally range from 5 to 75 days, with the majority of our commitments to borrowers for 40 to 60 days and our commitments to correspondent |
Interest Expense
Interest Expense | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Interest Expense | Note 16 – Interest Expense Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Mortgage loan financing facilities $ 24.8 $ 19.8 $ 43.5 $ 33.4 MSR financing facilities 19.6 17.8 37.5 35.3 OFC Senior Secured Notes (1) 11.4 10.9 22.6 21.7 Advance match funded liabilities 9.3 10.4 19.8 21.1 PMC Senior Secured Notes 6.5 7.8 13.9 15.5 Escrow 1.4 1.6 3.2 3.5 $ 73.1 $ 68.3 $ 140.5 $ 130.5 (1) Notes issued to Oaktree affiliates, inclusive of amortization of debt issuance costs and discount of $2.8 million and $5.6 million for the three and six months ended June 30, 2024, respectively, and $2.4 million and $4.7 million for the three and six months ended June 30, 2023, respectively. |
Basic and Diluted Earnings per
Basic and Diluted Earnings per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings per Share | Note 17 – Basic and Diluted Earnings (Loss) per Share Basic earnings or loss per share excludes common stock equivalents and is calculated by dividing net income or loss attributable to Onity common stockholders by the weighted average number of common shares outstanding during the period. We calculate diluted earnings or loss per share by dividing net income or loss attributable to Onity by the weighted average number of common shares outstanding including the potential dilutive common shares related to outstanding restricted stock awards, stock options and warrants as determined using the treasury stock method. For the six months ended June 30, 2023, we have excluded the effect of all stock options, common stock awards, and warrants from the computation of diluted loss per share because of the anti-dilutive effect of our reported net loss. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Basic earnings (loss) per share Net income (loss) $ 10.5 $ 15.5 $ 40.6 $ (24.7) Weighted average shares of common stock outstanding 7,821,128 7,652,563 7,766,331 7,593,391 Basic earnings (loss) per share $ 1.34 $ 2.02 $ 5.23 $ (3.25) Diluted earnings (loss) per share Net income (loss) $ 10.5 $ 15.5 $ 40.6 $ (24.7) Weighted average shares of common stock outstanding 7,821,128 7,652,563 7,766,331 7,593,391 Effect of dilutive elements Common stock warrants 3,713 115,977 36,148 — Common stock awards 93,831 151,047 179,950 — Dilutive weighted average shares of common stock 7,918,672 7,919,587 7,982,429 7,593,391 Diluted earnings (loss) per share $ 1.33 $ 1.95 $ 5.09 $ (3.25) Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share Anti-dilutive (1) 264,110 84,748 148,027 59,703 Market-based (2) 64,085 61,354 64,085 61,354 (1) Includes stock options and stock awards that are anti-dilutive based on the application of the treasury stock method. (2) Shares that are issuable upon the achievement of certain market-based performance criteria related to Onity’s stock price. |
Business Segment Reporting
Business Segment Reporting | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | Note 18 – Business Segment Reporting Our business segments reflect the internal reporting that our Chief Executive Officer uses to evaluate our operating and financial performance and to assess the allocation of our resources. Our current reportable business segments consist of Servicing, Originations, and Corporate Items and Other. During the three months ended June 30, 2024, there have been no changes to our business segments as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023. Effective in the fourth quarter of 2023, the Servicing segment includes CR Limited (CRL), our wholly-owned captive reinsurance subsidiary previously included in the Corporate Items and Other segment. Segment results for the three and six months ended June 30, 2023 have been recast to conform to the current segment presentation. Financial information for our segments is as follows: Three Months Ended June 30, 2024 Results of Operations Servicing Originations Corporate Items and Other Business Segments Consolidated Servicing and subservicing fees $ 210.1 $ 0.7 $ — $ 210.8 Gain on reverse loans held for investment and HMBS-related borrowings, net 2.8 5.7 — 8.5 Gain on loans held for sale, net (0.2) 16.7 — 16.5 Other revenue, net 4.4 6.2 — 10.6 Revenue 217.2 29.2 — 246.4 MSR valuation adjustments, net (35.8) 3.1 — (32.7) Operating expenses Compensation and benefits 24.5 11.3 19.2 55.0 Servicing and origination 11.2 2.3 0.5 13.9 Technology and communications 6.2 1.7 5.0 13.0 Professional services 2.8 0.5 7.4 10.7 Occupancy, equipment and mailing 6.6 0.5 0.4 7.5 Corporate overhead allocations 10.8 4.3 (15.0) — Other expenses 0.9 1.4 1.5 3.9 Operating expenses 63.1 22.0 18.9 104.0 Other income (expense): Interest income 7.2 14.2 1.1 22.5 Interest expense (47.0) (14.9) (11.2) (73.1) Pledged MSR liability expense (46.1) — — (46.1) Earnings of equity method investee 3.1 — — 3.1 Gain on extinguishment of debt — — — — Other, net (2.9) (0.2) 0.4 (2.7) Other income (expense), net (85.7) (0.9) (9.6) (96.2) Income (loss) before income taxes $ 32.6 $ 9.4 $ (28.5) $ 13.5 Three Months Ended June 30, 2023 Results of Operations Servicing Originations Corporate Items and Other Business Segments Consolidated Servicing and subservicing fees $ 237.2 $ 0.4 $ — 237.6 Gain on reverse loans held for investment and HMBS-related borrowings, net (4.1) 4.8 — 0.7 Gain (loss) on loans held for sale, net 15.1 10.2 — 25.3 Other revenue, net 4.5 4.0 — 8.5 Revenue 252.7 19.3 — 272.0 MSR valuation adjustments, net (50.5) 1.6 — (48.9) Operating expenses Compensation and benefits 26.7 10.9 20.1 57.7 Servicing and origination 16.4 1.0 0.2 17.6 Technology and communications 6.1 1.8 5.1 13.0 Professional services 11.3 0.4 (28.6) (16.9) Occupancy, equipment and mailing 7.2 0.5 — 7.7 Corporate overhead allocations 11.1 5.0 (16.2) — Other expenses 2.2 1.5 1.4 5.1 Operating expenses 81.1 21.1 (17.8) 84.3 Other income (expense): Interest income 5.9 13.1 1.2 20.3 Interest expense (43.3) (14.1) (10.9) (68.3) Pledged MSR liability expense (73.1) — — (73.0) Earnings of equity method investee 2.9 — — 2.9 Gain on extinguishment of debt — — — — Other, net (4.5) (0.2) 0.4 (4.4) Other income (expense), net (112.1) (1.2) (9.2) (122.5) Income (loss) before income taxes $ 9.0 $ (1.3) $ 8.7 $ 16.3 Six Months Ended June 30, 2024 Results of Operations Servicing Originations Corporate Items and Other Business Segments Consolidated Servicing and subservicing fees $ 414.3 $ 1.0 $ — $ 415.3 Gain on reverse loans held for investment and HMBS-related borrowings, net 11.4 12.5 — 23.9 Gain on loans held for sale, net (1) 1.7 25.7 — 27.4 Other revenue, net 8.8 10.0 — 18.8 Revenue 436.2 49.3 — 485.5 MSR valuation adjustments, net (1) (48.3) 4.0 — (44.3) Operating expenses Compensation and benefits 49.8 21.5 37.3 108.6 Servicing and origination 24.4 3.7 0.8 29.0 Technology and communications 12.3 3.4 9.9 25.7 Professional services 9.9 0.8 12.0 22.8 Occupancy, equipment and mailing 13.5 1.0 0.8 15.2 Corporate overhead allocations 21.7 8.2 (29.9) — Other expenses 2.0 2.4 2.8 7.2 Operating expenses 133.6 41.0 33.7 208.4 Other income (expense): Interest income 13.9 23.8 2.3 40.0 Interest expense (92.8) (25.3) (22.4) (140.5) Pledged MSR liability expense (91.1) — 0.1 (91.0) Earnings of equity method investee 5.8 — — 5.8 Gain on extinguishment of debt — — 1.4 1.4 Other (3.4) (0.3) 0.4 (3.4) Other income (expense), net (167.6) (1.7) (18.2) (187.5) Income (loss) before income taxes $ 86.7 $ 10.5 $ (51.9) $ 45.3 Six months ended June 30, 2023 Results of Operations Servicing Originations Corporate Items and Other Business Segments Consolidated Servicing and subservicing fees $ 469.0 $ 0.8 $ — $ 469.7 Gain (loss) on reverse loans held for investment and HMBS-related borrowings, net 9.9 12.0 — 21.9 Gain (loss) on loans held for sale, net (1) 13.8 14.3 — 28.1 Other revenue, net 7.0 7.1 — 14.1 Revenue 499.8 34.1 — 533.9 MSR valuation adjustments, net (1) (121.4) 3.5 — (117.9) Operating expenses Compensation and benefits 56.1 20.5 39.2 115.7 Servicing and origination 31.6 1.1 0.5 33.3 Technology and communications 12.5 3.5 10.5 26.4 Professional services 19.3 0.8 (23.7) (3.6) Occupancy, equipment and mailing 14.9 1.0 0.6 16.5 Corporate overhead allocations 22.6 9.9 (32.4) — Other expenses 4.5 3.0 2.7 10.1 Operating expenses 161.4 39.8 (2.7) 198.4 Other income (expense): Interest income 10.1 22.1 2.2 34.4 Interest expense (84.8) (24.0) (21.7) (130.5) Pledged MSR liability expense (143.4) — 0.1 (143.3) Earnings of equity method investee 3.1 — — 3.1 Gain on extinguishment of debt — — — — Other (4.9) — 1.8 (3.2) Other income (expense), net (220.0) (1.9) (17.6) (239.5) Income (loss) before income taxes $ (3.0) $ (4.0) $ (15.0) $ (22.0) Total Assets Servicing Originations Corporate Items and Other Business Segments Consolidated June 30, 2024 $ 11,904.4 $ 913.5 $ 266.8 $ 13,084.7 December 31, 2023 11,687.6 551.9 274.3 12,513.7 |
Regulatory Requirements
Regulatory Requirements | 6 Months Ended |
Jun. 30, 2024 | |
Broker-Dealer [Abstract] | |
Regulatory Requirements | Note 19 – Regulatory Requirements Our business is subject to extensive regulation and supervision by federal, state, local and foreign governmental authorities, including the Consumer Financial Protection Bureau (CFPB), the Department of Housing and Urban Development (HUD), the SEC and various state agencies that license our servicing and lending activities. Accordingly, we are regularly subject to examinations, inquiries and requests, including civil investigative demands and subpoenas. The GSEs and their conservator, the Federal Housing Finance Agency (FHFA), Ginnie Mae, the United States Treasury Department, various investors, non-Agency securitization trustees and others also subject us to periodic reviews and audits. We must comply with a large number of federal, state and local consumer protection and other laws and regulations, including, among others, the CARES Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), the Telephone Consumer Protection Act (TCPA), the Gramm-Leach-Bliley Act, the Fair Debt Collection Practices Act (FDCPA), the Real Estate Settlement Procedures Act (RESPA), the Truth in Lending Act (TILA), the Servicemembers Civil Relief Act, the Homeowners Protection Act, the Home Mortgage Disclosure Act (HMDA), the Federal Trade Commission Act, the Fair Credit Reporting Act, the Equal Credit Opportunity Act, as well as individual state and local laws, and federal and local bankruptcy rules. These laws and regulations apply to all facets of our business, including, but not limited to, licensing, loan originations, consumer disclosures, default servicing and collections, foreclosure, filing of claims, registration of vacant or foreclosed properties, handling of escrow accounts, payment application, interest rate adjustments, assessment of fees, loss mitigation, use of credit reports, handling of unclaimed property, safeguarding of non-public personally identifiable information about our customers, and the ability of our employees to work remotely. These complex requirements can and do change as laws and regulations are enacted, promulgated, amended, interpreted and enforced. The general trend among federal, state and local legislative bodies and regulatory agencies as well as state attorneys general has been toward increasing laws, regulations, investigative proceedings and enforcement actions with regard to residential real estate lenders and servicers, which could increase the possibility of adverse regulatory action against us. In addition, a number of foreign laws and regulations apply to our operations outside of the U.S., including laws and regulations that govern licensing, privacy, employment, safety, payroll and other taxes and insurance and laws and regulations that govern the creation, continuation and the winding up of companies as well as the relationships between shareholders, our corporate entities, the public and the government in these countries. Our foreign subsidiaries are subject to inquiries and examinations from foreign governmental regulators in the countries in which we operate outside of the U.S. Our licensed entities are required to renew their licenses, typically on an annual basis, and to do so they must satisfy the license renewal requirements of each jurisdiction, which generally include financial requirements such as providing audited financial statements and satisfying minimum net worth requirements and non-financial requirements such as satisfactory completion of examinations relating to the licensee’s compliance with applicable laws and regulations. We are also subject to seller/servicer obligations under agreements with the GSEs, HUD, FHA, VA and Ginnie Mae, including capital requirements related to tangible net worth, as defined by the applicable agency, liquidity requirements, an obligation to provide audited financial statements within 90 days of the applicable entity’s fiscal year end as well as extensive requirements regarding servicing, selling and other matters. PHH’s minimum financial eligibility requirements for GSE seller/servicers and Ginnie Mae issuers were updated by the GSEs and Ginnie Mae effective September 30, 2023. We believe our licensed entities were in compliance with all of their minimum net worth and liquidity requirements at June 30, 2024. Our non-Agency servicing agreements also contain requirements regarding servicing practices and other matters, and a failure to comply with these requirements could have a material adverse impact on our business. The most restrictive of the various net worth and liquidity requirements for licensing and seller/servicer obligations referenced above are mostly based on the UPB of assets serviced by PHH. Under the applicable formula, the required minimum net worth was $445.5 million at June 30, 2024. PHH’s adjusted net worth was $558.1 million at June 30, 2024. The most restrictive of the various liquidity requirements for licensing and seller/servicer obligations referenced above pertains to PHH and the required minimum liquidity was $119.5 million at June 30, 2024. PHH’s eligible liquidity, as defined, for licensing and seller/servicer obligations was $248.4 million at June 30, 2024. Ginnie Mae announced a new risk-based capital ratio effective on December 31, 2024 for Ginnie Mae issuers. PHH would not be in compliance with the upcoming risk-based capital requirements if they were in effect as of June 30, 2024. We are currently implementing certain actions intended to achieve compliance with the requirements. We intend to operate our Ginnie Mae issuer activities through a wholly owned subsidiary subject to, and in compliance with, the risk-based capital rules. We are in the process of applying for regulatory and Agency approvals necessary to separately operate GSE and Ginnie Mae businesses. If we are unable to execute this solution in a manner satisfactory to Ginnie Mae and other regulators, we may be required to sell Ginnie Mae or other related forward mortgage assets under uncertain conditions before December 31, 2024 and incur transition costs, or our status as an approved issuer may be suspended or terminated; as a result, our financial results, liquidity, financing activities and reputation could be negatively impacted. As of June 30, 2024, our forward owned servicing portfolio included government-insured loans with a UPB of $17.2 billion, 11% of our total forward owned MSR servicing portfolio or 6% of our total UPB serviced and subserviced. New York Department of Financial Services (NY DFS). We operate pursuant to certain regulatory requirements with the NY DFS, including obligations arising under a consent order entered into in March 2017 (the NY Consent Order) and the terms of the NY DFS’ conditional approval in September 2018 of our acquisition of PHH Corporation. The conditional approval restricts our ability to acquire MSRs with respect to New York loans, so that Onity may not increase its aggregate portfolio of New York loans serviced or subserviced by Onity by more than 2% per year. This restriction will remain in place until the NY DFS determines that all loans serviced on the Onity legacy REALServicing system have been successfully migrated to Black Knight MSP and that Onity has developed a satisfactory infrastructure to board sizable portfolios of MSRs. We transferred all loans onto Black Knight MSP in 2019 and have not serviced any loans on the REALServicing system since then. We continue to work with the NY DFS to address matters they raise with us as well as to fulfill our commitments under the NY Consent Order and PHH Corporation acquisition conditional approval. We believe we have complied with all terms of the PHH Corporation acquisition conditional approval and the NY Consent Order to date. |
Commitments
Commitments | 6 Months Ended |
Jun. 30, 2024 | |
Other Commitments [Abstract] | |
Commitments | Note 20 — Commitments Unfunded Lending Commitments We have originated floating-rate reverse mortgage loans under which the borrowers have additional borrowing capacity of $1.8 billion at June 30, 2024. This additional borrowing capacity is available on a scheduled or unscheduled payment basis. During the six months ended June 30, 2024, we funded $119.5 million out of the $1.8 billion borrowing capacity as of December 31, 2023. We also had short-term commitments to lend $1.5 billion and $22.2 million in connection with our forward and reverse mortgage loan IRLCs, respectively, outstanding at June 30, 2024. We finance originated and purchased forward and reverse mortgage loans with repurchase and participation agreements, also referred to as warehouse lines. HMBS Issuer Obligations As an HMBS issuer, we assume certain obligations related to each security issued. The most significant obligation is the requirement to purchase loans out of the Ginnie Mae securitization pools once the outstanding principal balance of a reverse mortgage loan is equal to or greater than 98% of the maximum claim amount (MCA repurchases). The table below provides the breakdown of the portfolio UPB with respect to the percentage of the MCA at June 30, 2024. Securitized HECM loans at less than 92% MCA $ 7,204.0 Securitized HECM loans at equal to or greater than 92% and less than 95% MCA 256.2 Securitized HECM loans at equal to or greater than 95% MCA and less than 98% MCA 241.6 Total Securitized HECM loans UPB $ 7,701.9 For the six months ended June 30, 2024 and 2023, we repurchased HECM loans from Ginnie Mae securitizations in the amount of $81.2 million and $181.3 million, respectively. Activity with regard to HMBS repurchases for the six months ended June 30, 2024 is as follows: Active Inactive Total Beginning balance $ 55.4 $ 130.6 $ 186.0 Additions 50.7 30.5 81.2 Recoveries, net (1) (58.1) (32.0) (90.0) Transfers 0.1 (0.1) — Changes in value 0.1 (2.0) (1.9) Ending balance $ 48.2 $ 127.1 $ 175.3 (1) Includes amounts received upon assignment of loan to HUD, loan payoff, REO liquidation and claim proceeds less any amounts charged off as unrecoverable. Our subservicing clients bear the financial obligation and risks associated with purchasing loans out of securitization pools within the portfolio of loans we subservice. Client Concentration Our Servicing segment has exposure to concentration risk and client retention risk. For the six months ended June 30, 2024, servicing and subservicing fees from Rithm amounted to $49.5 million, or 16% of total servicing and subservicing fees (excluding ancillary income). As of June 30, 2024, Rithm represented 14% and 25%, respectively, of UPB and loan count of our total servicing and subservicing portfolio, and approximately 64% of all delinquent loans that Onity services. Our Subservicing Agreements and Servicing Addendum with Rithm provide for automatic one-year renewals, unless Onity or Rithm provide advance notice of termination. Onity and Rithm did not provide their respective notice of termination by July 1, 2024 and October 1, 2023. Accordingly, the servicing agreements with Rithm are extended through December 31, 2024, with subsequent, automatic one-year renewals. If Rithm exercises its right to terminate all or some of the agreements (for convenience by October 2024 or for cause at any time), we might need to right-size certain aspects of our servicing business as well as the related corporate support functions, and we may need to adjust our daily liquidity management due to the reduction of servicing float balances associated with the Rithm servicing agreements. The impacts to our consolidated statements of operations in connection with our Rithm agreements are disclosed in Note 8 — Other Financing Liabilities, at Fair Value. Other liabilities recorded on our consolidated balance sheets are disclosed in Note 14 – Other Liabilities. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Loss Contingency [Abstract] | |
Contingencies | Note 21 – Contingencies When we become aware of a matter involving uncertainty for which we may incur a loss, we assess the likelihood of any loss. If a loss contingency is probable and the amount of the loss can be reasonably estimated, we record an accrual for the loss. In such cases, there may be an exposure to potential loss in excess of the amount accrued. Where a loss is not probable but is reasonably possible or where a loss in excess of the amount accrued is reasonably possible, we disclose an estimate of the amount of the loss or range of possible losses for the claim if a reasonable estimate can be made, unless the amount of such reasonably possible loss is not material to our financial position, results of operations or cash flows. If a reasonable estimate of loss cannot be made, we do not accrue for any loss or disclose any estimate of exposure to potential loss even if the potential loss could be material and adverse to our business, reputation, financial condition and results of operations. An assessment regarding the ultimate outcome of any such matter involves judgments about future events, actions and circumstances that are inherently uncertain. The actual outcome could differ materially. Where we have retained external legal counsel or other professional advisers, such advisers assist us in making such assessments. Litigation In the ordinary course of business, we are a defendant in, or a party or potential party to, many threatened and pending legal proceedings, including proceedings brought by borrowers, regulatory agencies (discussed further under “Regulatory” below), current or former employees, those brought on behalf of various classes of claimants, and those brought derivatively on behalf of Onity against certain current or former officers and directors or others, and those brought under the False Claims Act by private citizens on behalf of the U.S. In addition, we may be a party or potential party to threatened or pending legal proceedings involving fair-housing advocates, current and former commercial counterparties and market competitors, including, among others, claims related to the sale or purchase of loans, MSRs or other assets, and breach of contract actions, parties on whose behalf we service or serviced mortgage loans, parties who provide ancillary services including property preservation and other post-foreclosure related services, applicable taxing authorities, and parties who provide or provided consulting, subservicing, or other services to Onity. The majority of these proceedings are based on alleged violations of federal, state and local laws and regulations governing our mortgage servicing and lending activities, including, among others, the Dodd-Frank Act, the Gramm-Leach-Bliley Act, the FDCPA, the RESPA, the TILA, the Fair Credit Reporting Act, the Servicemembers Civil Relief Act, the Homeowners Protection Act, the Federal Trade Commission Act, the TCPA, the Equal Credit Opportunity Act, as well as individual state licensing and foreclosure laws, federal and local bankruptcy rules, federal and local tax regulations, and state deceptive trade practices laws. Such proceedings include wrongful foreclosure and eviction actions, bankruptcy violation actions, payment misapplication actions, allegations of wrongdoing in connection with lender-placed insurance and mortgage reinsurance arrangements, claims relating to our property preservation activities, claims related to REO management, claims relating to our written and telephonic communications with our borrowers such as claims under the TCPA and individual state laws, claims related to our payment, escrow and other processing operations, claims relating to fees imposed on borrowers relating to inspection fees, foreclosure attorneys’ fees, reinstatement fees, foreclosure registration fees, payment processing, payment facilitation or payment convenience fees, claims related to ancillary products marketed and sold to borrowers, claims related to loan modifications and loan assumptions, claims related to call recordings, claims regarding certifications of our legal compliance related to our participation in certain government programs, claims related to improper occupancy inspections, claims related to untimely recording of mortgage satisfactions, and claims related to tax deficiencies owed by and tax refunds due to us. In some of these proceedings, claims for substantial monetary damages are asserted against us. For example, we are currently a defendant in various matters alleging that (1) certain fees imposed on borrowers relating to payment processing, payment facilitation or payment convenience violate the FDCPA and similar state laws, (2) certain fees we assess on borrowers are improperly assessed and/or marked up improperly in violation of applicable state and federal law, (3) we breached fiduciary duties we purportedly owe to benefit plans due to the discretion we exercise in servicing certain securitized mortgage loans, (4) certain legacy mortgage reinsurance arrangements violated RESPA, (5) we failed to subservice loans appropriately pursuant to subservicing and other agreements, and (6) we did not comply with specific state and federal wage and hour laws for certain non-exempt employees. In the future, we are likely to become subject to other private legal proceedings alleging failures to comply with applicable laws and regulations, including putative class actions, in the ordinary course of our business. In view of the inherent difficulty of predicting the outcome of any threatened or pending legal proceedings, particularly where the claimants seek very large or indeterminate damages, including punitive damages, or where the matters present novel legal theories or involve a large number of parties, we generally cannot predict what the eventual outcome of such proceedings will be, what the timing of the ultimate resolution will be, or what the eventual loss, if any, will be. Any material adverse resolution could materially and adversely affect our business, reputation, financial condition, liquidity, and results of operations. Where we determine that a loss contingency is probable in connection with a pending or threatened legal proceeding and the amount of our loss can be reasonably estimated, we record an accrual for the loss. We have accrued for losses relating to threatened and pending litigation that we believe are probable and reasonably estimable based on current information regarding these matters. Where we determine that a loss is not probable but is reasonably possible or where a loss in excess of the amount accrued is reasonably possible, we disclose an estimate of the amount of the loss or range of possible losses for the claim if a reasonable estimate can be made, unless the amount of such reasonably possible loss is not material to our financial position, results of operations or cash flows. It is possible that we will incur losses relating to threatened and pending litigation that materially exceed the amount accrued. Our accrual for probable and estimable legal and regulatory matters, including accrued legal fees, was $15.1 million at June 30, 2024. We cannot currently estimate the amount, if any, of reasonably possible losses above amounts that have been recorded at June 30, 2024. As previously disclosed, we are subject to individual lawsuits relating to our FDCPA compliance and putative state law class actions based on the FDCPA and similar state statutes. We are currently defending a class action lawsuit challenging, under state and federal law, our practice of charging borrowers a fee to use certain optional payment methods, in Jones v. PHH Mortg. Corp., et al. (D. NJ), which we have filed a motion to dismiss. In addition, between November 2022 and June 2023, we settled the previously disclosed cases of Morris v. PHH Mortg. Corp., et al. (S.D. FL), Torliatt v. PHH Mortg. Corp., et al. (N.D. CA), Thacker v. PHH Mortg. Corp., et al. (N.D. WV), Forest v. PHH Mortg. Corp., et al. (D. RI), and Williams v. PHH Mortg. Corp., et al. (S.D. TX). In addition, we continue to be involved in legacy matters arising prior to Onity’s October 2018 acquisition of PHH Corporation, including a putative class action filed in 2008 in the United States District Court for the Eastern District of California against PHH and related entities alleging that PHH Corporation’s legacy mortgage reinsurance arrangements between its captive reinsurer, Atrium Insurance Corporation, and certain mortgage insurance providers violated RESPA. See Munoz v. PHH Mortgage Corp. et al. (Eastern District of California). In June 2015, the court certified a class of borrowers who obtained loans with private mortgage insurance through PHH’s captive reinsurance arrangement between June 2007 and December 2009. PHH asserted numerous defenses to the merits of the case. Following pre-trial developments in August 2020, the only issues remaining for trial were whether the plaintiffs had standing to bring their claims and whether the reinsurance services provided by PHH Corporation’s captive reinsurance subsidiary, Atrium, were actually provided in order for the safe harbor provision of RESPA to apply. In January 2022, the Court denied a motion by the plaintiffs to enter new evidence and a motion by PHH to decertify the class, which motion PHH may renew if the case ultimately goes to trial. Following the entry of this order, at the request of the parties, the Court dismissed all of the plaintiffs’ claims for lack of standing and entered judgment in favor of PHH. The plaintiffs appealed to the United States Court of Appeals for the Ninth Circuit, and in February 2023 that court reversed and remanded for further proceedings. Onity will continue to vigorously defend itself. Our current accrual with respect to this matter is included in the $15.1 million legal and regulatory accrual referenced above. At this time, Onity is unable to predict the outcome of this lawsuit or the possible loss or range of loss, if any, associated with the resolution of such lawsuit. If our efforts to defend this lawsuit are not successful, our business, reputation, financial condition, liquidity and results of operations could be materially and adversely affected. Onity is a defendant in a certified class action in the U.S. District Court in the Eastern District of California where the plaintiffs claim Onity marked up fees for property valuations and title searches in violation of California state law. See Weiner v. Ocwen Financial Corp., et al . In May 2020, the court ruled that plaintiff’s recoverable damages are limited to out-of-pocket costs, i.e. , the amount of marked-up fees actually paid, rather than the entire cost of the valuation that plaintiffs sought. In October 2023, the parties reached a tentative settlement to resolve the lawsuit prior to trial. A hearing on the parties’ motion for preliminary approval was scheduled for February 29, 2024, but the court postponed that hearing pending the submission of certain additional briefing, which the parties filed on March 8, 2024. On March 29, 2024, the district court entered an order granting preliminary approval of the parties’ settlement agreement, and directing notice to the settlement class. The notice process began on April 29, 2024, and continues until September 29, 2025. The Court also set a Final Fairness Hearing for September 19, 2024. If the proposed settlement is not ultimately approved, Onity will vigorously defend itself. Onity is unable to predict the outcome of this lawsuit, the possible loss or range of loss, if any, associated with the resolution of such lawsuit or the potential impact on us or our operations. If our efforts to settle or defend this lawsuit are not successful, our business, financial condition liquidity and results of operations could be materially and adversely affected. Onity may have affirmative indemnification rights and/or other claims against third parties related to the allegations in the lawsuit. Although we may pursue these claims, we cannot currently estimate the amount, if any, of recoveries from these third parties. We have settled in principle a dispute with a former subservicing client, HSBC Bank USA, N.A. (HSBC). See HSBC Bank USA, N.A. v. PHH Mortgage Corp. (Supreme Court of the State of New York). HSBC’s claims related to alleged breaches of agreements entered into under a prior subservicing arrangement and origination assistance agreement. In its complaint, HSBC also asserted a claim for fraud, which was dismissed by the Court. PHH answered the complaint and asserted counterclaims against HSBC for breach of contract. PHH filed a motion for summary judgment on December 19, 2022. In June 2024, PHH and HSBC agreed to settle HSBC’s claims for $3.0 million, which amount was previously accrued. Over the past several years, lawsuits have been filed by RMBS trust investors alleging that the trustees and master servicers breached their contractual and statutory duties by (i) failing to require loan servicers to abide by their contractual obligations; (ii) failing to declare that certain alleged servicing events of default under the applicable contracts occurred; and (iii) failing to demand that loan sellers repurchase allegedly defective loans, among other things. Onity has received several letters from trustees and master servicers purporting to put Onity on notice that the trustees and master servicers may ultimately seek indemnification from Onity in connection with the litigations. Onity has not yet been impleaded into any of these cases, but it has produced and continues to produce documents to the parties in response to third-party subpoenas. Onity has, however, been impleaded as a third-party defendant into five consolidated loan repurchase cases first filed against Nomura Credit & Capital, Inc. in 2012 and 2013. Onity is vigorously defending itself in those cases against allegations by the mortgage loan seller-defendant that Onity failed to inform its contractual counterparties that it had discovered defective loans in the course of servicing them and had otherwise failed to service the loans in accordance with accepted standards. In September 2023, the Court granted in part Onity’s motion for summary judgment, dismissing Nomura’s “failure to notify” claim in its entirety; the Court, however, denied Onity’s motion with respect to Nomura’s second claim alleging failure to service loans in accordance with accepted standards. In May 2024, Onity filed its opening brief in its appeal of the Court’s partial denial of Onity’s summary judgment motion. The scope of any resulting trial is uncertain, and thus Onity is unable at this time to predict the ultimate outcome of these matters, the possible loss or range of loss, if any, associated with the resolution of these matters or any potential impact they may have on us or our operations. If, however, we were required to compensate claimants for losses related to the alleged loan servicing breaches, then our business, reputation, financial condition, liquidity and results of operations could be adversely affected. In addition, several RMBS trustees have received notices of events of default alleging material failures by servicers to comply with applicable servicing agreements. Although Onity has not been sued by an RMBS trustee in response to an event of default notice, there is a risk that Onity could be replaced as servicer as a result of said notices, that the trustees could take legal action on behalf of the trust certificate holders, or, under certain circumstances, that the RMBS investors who issue notices of event of default could seek to press their allegations against Onity, independent of the trustees. We are unable at this time to predict what, if any, actions any trustee will take in response to an event of default notice, nor can we predict at this time the potential loss or range of loss, if any, associated with the resolution of any event of default notice or the potential impact on our operations. If Onity were to be terminated as servicer, or other related legal actions were pursued against Onity, it could have an adverse effect on Onity’s business, reputation, financial condition, liquidity, and results of operations. Regulatory We are subject to a number of ongoing federal and state regulatory examinations, orders, inquiries, subpoenas, civil investigative demands, requests for information and other actions. We may also on occasion be subject to foreign regulatory actions in the countries where we operate outside the U.S. Where we determine that a loss contingency is probable in connection with a regulatory matter and the amount of our loss can be reasonably estimated, we record an accrual for the loss. Where we determine that a loss is not probable but is reasonably possible or where a loss in excess of the amount accrued is reasonably possible, we disclose an estimate of the amount of the loss or range of possible losses for the claim if a reasonable estimate can be made, unless the amount of such reasonably possible loss is not material to our financial position, results of operations or cash flows. It is possible that we will incur losses relating to regulatory matters that materially exceed any accrued amount. Predicting the outcome of any regulatory matter is inherently difficult and we generally cannot predict the eventual outcome of any regulatory matter or the eventual loss, if any, associated with the outcome. To the extent that an examination, audit or other regulatory engagement results in an alleged failure by us to comply with applicable laws, regulations or licensing requirements, or if allegations are made that we have failed to comply with applicable laws, regulations or licensing requirements or the commitments we have made in connection with our regulatory settlements (whether such allegations are made through administrative actions such as cease and desist orders, through legal proceedings or otherwise) or if other regulatory actions of a similar or different nature are taken in the future against us, this could lead to (i) administrative fines and penalties and litigation, (ii) loss of our licenses and approvals to engage in our servicing and lending businesses, (iii) governmental investigations and enforcement actions, (iv) civil and criminal liability, including class action lawsuits and actions to recover incentive and other payments made by governmental entities, (v) breaches of covenants and representations under our servicing, debt or other agreements, (vi) damage to our reputation, (vii) inability to raise capital or otherwise fund our operations and (viii) inability to execute on our business strategy. Any of these occurrences could increase our operating expenses and reduce our revenues, hamper our ability to grow or otherwise materially and adversely affect our business, reputation, financial condition, liquidity and results of operations. We regularly receive information requests and other inquiries, both formal and informal in nature, from our state financial regulators as part of their general regulatory oversight of our licensed servicing and lending businesses, as well as from state attorneys general, the CFPB and other federal agencies, including the Department of Justice, HUD and various inspectors general. For example, we have received requests regarding the charging of certain fees to borrowers (including our practice of charging borrowers a fee to use certain optional payment methods, or “convenience fees”); the post-boarding process to verify loan and payment terms are properly implemented, calculated, and applied; bankruptcy practices; COVID-19-related forbearance and post-forbearance options; and Homeowner Assistance Fund participation and implementation. Many of our regulatory engagements arise from a complaint that the entity is investigating, although some are formal investigations or proceedings. The GSEs (and their conservator, FHFA), HUD, FHA, VA, Ginnie Mae, the United States Treasury Department, and others also subject us to periodic reviews and audits, and engage with us on various matters. For example, we are currently engaged with several regulators on guidance and applicable law related to borrower convenience fees. We have in the past resolved, and may in the future resolve, matters via consent orders, payments of monetary amounts and other agreements in order to settle issues identified in connection with examinations or other oversight activities, and such resolutions could have material and adverse effects on our business, reputation, operations, results of operations and financial condition. Our current accrual with respect to these matters is included in the $15.1 million legal and regulatory accrual referenced above. Loan Put-Back and Related Contingencies We have exposure to representation, warranty and indemnification obligations relating to our lending, loan sales and securitization activities, and servicing practices. We received origination representations and warranties from our network of approved originators in connection with loans we purchased through our correspondent lending channel. To the extent that we have recourse against a third-party originator, we may recover part or all of any loss we may incur. We do not provide or assume any origination representations and warranties in connection with our MSR purchases. At June 30, 2024 and June 30, 2023, we had outstanding representation and warranty repurchase demands of $24.5 million UPB (69 loans) and $39.1 million UPB (142 loans), respectively. We review each demand and monitor through resolution, primarily through rescission, loan repurchase or make-whole payment. The following table presents the changes in our liability for representation and warranty obligations and similar indemnification obligations: Six Months Ended June 30, 2024 2023 Beginning balance (1) $ 32.9 $ 41.6 Provision for (reversal of) representation and warranty obligations (1.0) 2.1 Provision for representation and warranty obligations - New production liability 0.9 0.6 Charge-offs and other (2) 0.2 (6.2) Ending balance (1) $ 33.0 $ 38.1 (1) The liability for representation and warranty obligations and compensatory fees for foreclosures is reported in Other liabilities (a component of Liability for indemnification obligations) on our unaudited consolidated balance sheets. (2) Includes reclassification of principal and interest losses in connection with repurchased loans, make-whole, indemnification and fee payments and settlements net of recoveries, if any. We believe that it is reasonably possible that losses beyond amounts currently recorded for potential representation and warranty obligations and other claims described above could occur, and such losses could have an adverse impact on our results of operations, financial condition or cash flows. However, based on currently available information, we are unable to estimate a range of reasonably possible losses above amounts that have been recorded at June 30, 2024 . Other We may, from time to time, have affirmative indemnification and other claims against service providers, parties from whom we purchased MSRs or other assets, investors or other parties. Although we pursue these claims, we cannot currently estimate the amount, if any, of further recoveries. Similarly, from time to time, indemnification and other claims are made against us by parties to whom we sold MSRs or other assets or by parties on whose behalf we service mortgage loans. We cannot currently estimate the amount, if any, of reasonably possible loss above amounts recorded. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 22 – Subsequent Events On July 26, 2 024, Onity entered into a letter of intent with Waterfall Asset Management, LLC on behalf of managed investment funds (collectively “Waterfall”) to acquire certain reverse mortgage assets of Mortgage Assets Management, LLC (“MAM”) , among other related transactions, including certain financing arrangements to be provided by Waterfall . MAM’s equity interest is held by an investment fund managed by Waterfall. The assets expected to be acquired are currently subserviced by PHH and include HECM reverse mortgage loans together with HMBS related borrowings with a projected unpaid principal balance of approximately $3 billion, and certain related reverse mortgage assets, with a target aggregate net asset value of $55 million. In consideration of the asset acquisition, Onity will issue Waterfall shares of a newly designated series of preferred stock with a liquidation preference and par amount of $51.7 million, subject to certain adjustments, and a 7.875% dividend rate for five years, increasing 2.5% each year thereafter up to a 15% cap. The preferred stock is non-convertible, cumulative, and callable at our option after four years. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in conformity with the instructions of the Securities and Exchange Commission (SEC) to Form 10-Q and SEC Regulation S-X, Article 10, Rule 10-01 for interim financial statements. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) for complete financial statements. In our opinion, the accompanying unaudited consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation. The results of operations and other data for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, 2024. The unaudited consolidated financial statements presented herein should be read in conjunction with the audited consolidated financial statements and related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. Amounts may not add in certain tables due to rounding. Change in Presentation Effective June 30, 2024, in our consolidated balance sheets we now present Contingent loan repurchase asset and Contingent loan repurchase liability as separate line items (previously reported in Other assets and Other liabilities, respectively). In connection with the Ginnie Mae early buyout program, our servicing agreements provide that we have the right, but not the obligation, to repurchase previously transferred mortgage loans under certain conditions, including the mortgage loans becoming unpaid for more than three consecutive months. Once these conditions are met, we have effectively regained control over the mortgage loans, and under GAAP, must re-recognize the loans on our consolidated balance sheets and establish a corresponding repurchase liability. The separate presentation of such assets and offsetting liabilities on the face of the balance sheet provides increased transparency as compared to a presentation within Other assets and Other liabilities. The consolidated balance sheet as of December 31, 2023 has been recast to conform to the current period presentation. This presentation change had no impact on total assets or total liabilities in our consolidated balance sheets, no impact on the consolidated statements of cash flows, nor any other financial statements. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions include, but are not limited to, those that relate to fair value measurements, income taxes and the provision for losses that may arise from contingencies including litigation proceedings. In developing estimates and assumptions, management uses all available information; however, actual results could materially differ from those estimates and assumptions. |
Recently Adopted Accounting Standards And Accounting Standards Issued but Not Yet Adopted | Recently Adopted Accounting Standards Leases (ASC 842) Common Control Arrangements (ASU 2023-01) Prior to the issuance of this ASU, ASC 842 required all lessees to amortize leasehold improvements over the shorter of their useful life or the remaining term of the lease. For leases between entities under common control, the amendment in this ASU requires amortization of leasehold improvements over the useful life of those assets to the common control group, regardless of the lease term. When the lessee no longer controls the use of the asset underlying the common control lease, the leasehold improvements are accounted for as a transfer between entities under common control whereby the lessee records a distribution to the common control lessor through an adjustment to equity. Our adoption of this standard on January 1, 2024 did not have a material impact on our consolidated financial statements. Accounting Standards Issued but Not Yet Adopted Business Combinations - Joint Venture Formations (ASC 805-60): Recognition and Initial Measurement (ASU 2023-05) The amendments in this ASU require a joint venture to apply a new basis of accounting upon formation for the initial contribution of nonmonetary and monetary assets, initially measured at fair value (with exceptions to fair value measurement consistent with business combinations guidance). This ASU does not amend the definition of a joint venture, the accounting by an equity method investor for its investment in a joint venture, or the accounting by a joint venture for contributions received after its formation. The amendments in this ASU are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025, with early adoption permitted. A joint venture formed prior to the adoption date may elect to apply the new guidance retrospectively back to the original formation date. We do not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements. Segment Reporting (ASC 280) Improvements to Reportable Segment Disclosures (ASU 2023-07) The amendments in this ASU were issued to improve annual and interim reportable segment disclosure requirements, primarily through enhanced disclosures about expenses that are significant to the segment, regularly provided to or easily computed from information regularly provided to the chief operating decision maker (CODM), and included in the reported measure of segment profit or loss. This ASU also requires disclosure of the title and position of the individual or the name of the group identified as the CODM in the consolidated financial statements, as well as how the CODM uses each reported measure of segment profit or loss to assess performance and allocate resources to the segment. The ASU allows the disclosure of additional optional measures of a segment’s profit or loss for each reportable segment if used by the CODM, subject to additional segment disclosures and the SEC’s non-GAAP financial measures requirements. The amended disclosures in this ASU are effective in the 2024 annual period and in 2025 for interim periods, and shall be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. Income Taxes (ASC 740) Improvements to Income Tax Disclosures (ASU 2023-09) The amendments in this ASU require disaggregated information about a reporting entity’s effective tax rate reconciliation, including a tabular rate reconciliation for specified categories and additional information for reconciling items that meet a quantitative threshold. The ASU also requires additional disaggregated information on income taxes paid to an individual jurisdiction equal to or greater than 5% of total income taxes paid. |
Securitizations and Variable _2
Securitizations and Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing [Abstract] | |
Schedule of Cash Flows Related to Transfers Accounted for as Sales | The following table presents a summary of cash flows received from and paid to securitization trusts related to transfers of loans accounted for as sales that were outstanding: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Proceeds received from securitizations $ 4,249.2 $ 2,298.1 $ 6,808.1 $ 4,614.9 Servicing fees collected (1) 40.2 28.2 78.5 55.2 Purchases of previously transferred assets, net of claims reimbursed (3.7) (4.0) (6.2) (7.1) $ 4,285.7 $ 2,322.4 $ 6,880.3 $ 4,663.0 (1) |
Schedule of Assets That Relate to Continuing Involvement with Transferred Financial Assets with Servicing Rights and Maximum Exposure to Loss Including the Unpaid Principal Balance | The following table presents the carrying amounts of our assets that relate to our continuing involvement with forward loans that we have transferred with servicing rights retained as well as an estimate of our maximum exposure to loss including the UPB of the transferred loans: June 30, 2024 December 31, 2023 Carrying value of assets MSRs, at fair value $ 690.6 $ 636.5 Advances 85.1 99.0 UPB of loans transferred (1) 47,658.7 46,810.1 Maximum exposure to loss (2) $ 48,434.3 $ 47,545.6 (1) Includes $10.5 billion and $10.5 billion of loans delivered to Ginnie Mae as of June 30, 2024 and December 31, 2023, respectively, and includes loan modifications repurchased and delivered through the Ginnie Mae Early Buyout Program (EBO). (2) The maximum exposure to loss in the table above is primarily based on the remaining UPB of loans serviced and assumes all loans were deemed worthless as of the reporting date. It does not take into consideration the proceeds from the underlying collateral liquidation, recoveries or any other recourse available to us, including from mortgage insurance, guarantees or correspondent sellers. We do not believe the maximum exposure to loss from our involvement with these previously transferred loans is representative of the actual loss we are likely to incur based on our contractual rights and historical loss experience and projections. Also, refer to the Loan Put-Back and Related Contingencies section in Note 21 – Contingencies. |
Schedule Of Securitization Reverse Mortgage Loans Buyouts And Financing Liabilities | The table below presents the carrying value and classification of the assets and liabilities reported on our consolidated balance sheet that are associated with the securitized reverse mortgage loans buyouts and financing liabilities: June 30, 2024 December 31, 2023 Mortgage loans (Loans held for sale) $ 228.7 $ 119.5 Receivables, net 33.1 19.9 REO (Other assets) 17.9 12.5 Debt service and Interest reserve accounts (Restricted cash) 10.2 6.8 Total assets $ 290.0 $ 158.6 Outstanding borrowings (Mortgage loan financing facilities, net) 314.0 164.4 Unamortized discount and debt issuance costs (Mortgage loan financing facilities, net) (33.9) (21.0) Accrued expenses and Accrued interest (Other liabilities) 0.9 0.5 Total liabilities $ 281.0 $ 143.8 |
Carrying Value And Classification Of Assets And Liabilities Of Advance Financing Facilities | The table below presents the carrying value and classification of the assets and liabilities of the advance financing facilities: June 30, 2024 December 31, 2023 Match funded advances (Advances, net) $ 467.9 $ 573.0 Debt service accounts (Restricted cash) 10.6 15.7 Advance match funded liabilities 404.3 498.9 |
Carrying Value And Classification Of Assets And Liabilities Of PLS Notes Facility | The table below presents the carrying value and classification of the assets and liabilities of the GSE MSR financing facility and the PLS Notes facility: June 30, 2024 December 31, 2023 MSRs pledged (MSRs, at fair value) $ 518.9 $ 449.6 Debt service account (Restricted cash) 1.7 1.7 Outstanding borrowings (MSR financing facilities, net) 277.2 282.1 Unamortized debt issuance costs (MSR financing facilities, net) (0.2) (0.4) |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities | The carrying amounts and the estimated fair values of our financial instruments and certain of our nonfinancial assets measured at fair value on a recurring or non-recurring basis or disclosed, but not measured, at fair value are as follows: June 30, 2024 December 31, 2023 Level Carrying Value Fair Value Carrying Value Fair Value Financial assets Loans held for sale Loans held for sale, at fair value (a) (e) 3, 2 $ 1,103.9 $ 1,103.9 $ 674.2 $ 674.2 Loans held for sale, at lower of cost or fair value (b) 3 3.1 3.1 3.1 3.1 Total Loans held for sale $ 1,107.0 $ 1,107.0 $ 677.3 $ 677.3 Loans held for investment, at fair value Loans held for investment - Reverse mortgages (a) 3 $ 8,222.4 $ 8,222.4 $ 7,970.0 $ 7,970.0 Loans held for investment - Restricted for securitization investors (a) 3 5.4 5.4 5.6 5.6 Total Loans held for investment, at fair value $ 8,227.8 $ 8,227.8 $ 7,975.5 $ 7,975.5 Advances, net (c) 3 $ 550.6 $ 550.6 $ 678.8 $ 678.8 Receivables, net (c) 3 $ 153.4 $ 153.4 $ 154.8 $ 154.8 June 30, 2024 December 31, 2023 Level Carrying Value Fair Value Carrying Value Fair Value Financial liabilities Advance match funded liabilities (c) 3 $ 405.0 $ 405.0 $ 499.7 $ 499.7 Financing liabilities, at fair value: HMBS-related borrowings (a) 3 $ 8,035.4 $ 8,035.4 $ 7,797.3 $ 7,797.3 Other financing liabilities 3 845.9 845.9 900.0 900.0 Mortgage loan financing facilities (c) (d) 3 $ 1,190.5 $ 1,196.5 $ 710.6 $ 717.6 MSR financing facilities (c) (d) 3 $ 927.7 $ 914.0 $ 916.2 $ 900.3 Senior notes PMC Senior secured notes due 2026 (c) (d) 2 $ 309.9 $ 305.3 $ 356.1 $ 326.0 OFC Senior secured notes due 2027 (c) (d) 3 245.3 256.3 239.7 230.5 Total Senior notes $ 555.2 $ 561.6 $ 595.8 $ 556.5 Derivative financial instrument assets (liabilities), net Interest rate lock commitments (IRLCs) (a) 3 $ 4.1 $ 4.1 $ 5.6 $ 5.6 Other derivatives (a) 1 (1.4) (1.4) 9.1 9.1 Other commitments (a) 3 — — (0.1) (0.1) MSRs (a) 3 $ 2,327.7 $ 2,327.7 $ 2,272.2 $ 2,272.2 (a) Measured at fair value on a recurring basis in our financial statements. (b) Measured at fair value on a non-recurring basis in our financial statements. (c) Disclosed, but not measured at fair value in our financial statements. (d) The carrying values are net of unamortized debt issuance costs and discount. See Note 13 – Borrowings for additional information . (e) |
Schedule of Reconciliation of Changes in Fair Value of Level 3 Assets and Liabilities | The following tables present a reconciliation of the changes in fair value of certain Level 3 assets and liabilities that we measure at fair value on a recurring basis (refer to the respective notes for other Level 3 assets and liabilities): Loans Held for Sale - Fair Value ESS Financing Liability IRLCs Three months ended June 30, 2024 Beginning balance $ 284.0 $ (253.4) $ 5.0 Purchases, issuances, sales and settlements Purchases and other 80.5 — — Issuances (1) — — 4.0 Sales (38.7) — — Settlements (2) (25.1) 7.0 — Transfers from (to) Loans held for investment, at fair value 0.8 — — Loans held for sale, at fair value (1) — — 8.6 REO (Other assets) (4.3) — — Receivables, net (7.6) — — Advances (capitalization upon Ginnie Mae modification) 2.8 — — Net addition (disposition/derecognition) 8.3 7.0 12.6 Included in earnings: Change in fair value (1) 4.4 (4.1) (13.5) Ending balance $ 296.7 $ (250.5) $ 4.1 Loans Held for Sale - Fair Value ESS Financing Liability IRLCs Three months ended June 30, 2023 Beginning balance $ 23.3 $ (263.1) $ 4.8 Purchases, issuances, sales and settlements Purchases and other 240.4 — — Issuances (1) — — 4.4 Sales (38.5) — — Settlements (2) (25.8) 8.1 — Transfers from (to) Loans held for investment, at fair value 1.5 — — Loans held for sale, at fair value (1) — — (10.8) REO (Other assets) (7.1) — — Receivables, net (15.6) — — Advances (capitalization upon Ginnie Mae modification) 1.7 — — Other 2.8 — — Net addition (disposition/derecognition) 159.5 8.2 (6.5) Included in earnings: Change in fair value (1) 14.6 (3.6) 3.0 Ending balance $ 197.4 $ (258.5) $ 1.4 Loans Held for Sale - Fair Value ESS Financing Liability IRLCs Six Months Ended June 30, 2024 Beginning balance $ 203.1 $ (248.9) $ 5.6 Purchases, issuances, sales and settlements Purchases and other 225.5 — — Issuances (1) — — 21.2 Sales (76.7) — — Settlements (2) (47.3) 14.4 — Transfers from (to) Loans held for investment, at fair value 1.9 — — Loans held for sale, at fair value (1) — — 2.8 REO (Other assets) (7.3) — — Receivables, net (18.2) — — Advances - (capitalization upon Ginnie Mae modification) 4.9 — — Net addition (disposition/derecognition) 82.8 14.4 24.0 Included in earnings: Change in fair value (1) 10.9 (16.0) (25.5) Ending balance $ 296.7 $ (250.5) $ 4.1 Loans Held for Sale - Fair Value ESS Financing Liability IRLCs Six Months Ended June 30, 2023 Beginning balance $ 32.1 $ (199.0) $ (0.7) Purchases, issuances, sales and settlements Purchases and other 252.8 — Issuances (1) — (68.7) 10.1 Sales (58.7) — — Settlements (2) (25.8) 14.9 — Transfers from (to) Loans held for investment, at fair value 1.5 — — Loans held for sale, at fair value (1) — — (31.2) REO (Other assets) (7.1) — — Receivables, net (16.1) — — Advances - (capitalization upon Ginnie Mae modification) 1.7 — — Other 2.8 — — Net addition (disposition/derecognition) 151.3 (53.8) (21.0) Included in earnings: Change in fair value (1) 14.0 (5.6) 23.1 Ending balance $ 197.4 $ (258.5) $ 1.4 (1) IRLC activity (issuances and transfers) represent changes in fair value included in earnings. This activity is presented on a gross basis in the table for disclosure purposes. Total net change in fair value included in earnings attributed to IRLCs is a gain (loss) of $(0.9) million and $(1.5) million for the three and six months ended June 30, 2024, respectively, and $(3.4) million and $2.1 million for the three and six months ended June 30, 2023, respectively. See Note 15 – Derivative Financial Instruments and Hedging Activities. (2) ESS financing liability settlement is determined based on collections on reference pools of the related mortgage loans. |
Schedule of Significant Assumptions used in Valuation | Significant unobservable assumptions June 30, December 31, Life in years Range 0.7 to 7.9 0.8 to 7.9 Weighted average 5.1 5.2 Conditional prepayment rate, including voluntary and involuntary prepayments Range 11.6% to 32.9% 12.0% to 35.4% Weighted average 17.7 % 17.2 % Discount rate 5.2 % 4.9 % Significant unobservable assumptions June 30, 2024 December 31, 2023 Agency Non-Agency Agency Non-Agency Weighted average prepayment speed 6.3 % 7.8% 7.7 % 7.9 % Weighted average lifetime delinquency rate 1.2 % 10.1% 1.3 % 10.0 % Weighted average discount rate 9.9 % 10.9% 9.2 % 11.4 % Weighted average cost to service (in dollars) $ 71 $ 192 $ 71 $ 192 Significant unobservable assumptions June 30, December 31, Life in years Range 0.7 to 7.9 0.8 to 7.9 Weighted average 5.1 5.2 Conditional prepayment rate Range 11.6% to 32.9% 12.0% to 35.4% Weighted average 17.7 % 17.2 % Discount rate 5.2 % 4.9 % Significant unobservable assumptions June 30, December 31, Weighted average prepayment speed 5.3 % 6.5 % Weighted average delinquency rate 3.0 % 2.8 % Weighted average subservicing life (in years) 4.7 4.3 Weighted average discount rate 10.4 % 9.6 % Weighted average cost to service (in dollars) $ 134 $ 130 |
Summary of Estimated Change in the Value of MSRs Carried at Fair Value | The following table summarizes the estimated change in the value of the MSRs as of June 30, 2024 given hypothetical increases in lifetime prepayments and yield assumptions: Adverse change in fair value 10% 20% Change in weighted average prepayment speeds (in percentage points) 0.7 1.5 Change in fair value due to change in weighted average prepayment speeds $ (56.3) $ (111.3) Change in weighted average discount rate (in percentage points) 1.0 2.0 Change in fair value due to change in weighted average discount rate $ (79.7) $ (152.9) |
Loans Held for Sale - Fair Va_2
Loans Held for Sale - Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Loans Held for Sale Fair Value | The following table presents the estimated fair value of Loans held for sale for which we elected the fair value option: June 30, 2024 December 31, 2023 Unpaid principal balance $ 1,139.8 $ 678.8 Premium (discount) (28.7) (2.4) Unrealized gain (loss) (7.2) (2.2) Total fair value $ 1,103.9 $ 674.2 The following table presents the composition of Loans held for sale, at fair value by type: June 30, 2024 December 31, 2023 GSE loans $ 558.0 $ 219.3 Government- Forward loans 263.0 254.0 Forward loans repurchased from Ginnie Mae guaranteed securitization (1) 23.9 19.1 Reverse loans (2) 249.8 166.6 Other residential mortgage loans 9.2 15.2 Total $ 1,103.9 $ 674.2 (1) Pursuant to Ginnie Mae servicing guidelines. (2) Includes government-insured inactive reverse mortgage loans purchased from Ginnie Mae securitization pools that reached the 98% of maximum claim amount and are generally liquidated through foreclosure and subsequent sale of the REO properties. As of June 30, 2024 and December 31, 2023, the balance includes $228.7 million and $119.5 million, respectively, of loans pledged as collateral for the Asset-Backed Notes issued by OLIT. Also see Note 2 – Securitizations and Variable Interest Entities and Note 13 – Borrowings. The following table presents the activity of Loans held for sale, at fair value: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning balance $ 1,025.7 $ 845.2 $ 674.2 $ 617.8 Originations and purchases 4,420.5 2,859.9 7,409.4 5,412.3 Proceeds from sales (4,256.4) (2,279.6) (6,837.4) (4,575.8) Principal collections (27.5) (31.6) (50.6) (47.0) Transfers from (to): Loans held for investment, at fair value 0.8 1.5 1.9 3.1 Receivables, net (7.6) (15.6) (18.2) (14.5) REO (Other assets) (4.3) (7.1) (7.3) (11.2) Advances (capitalization upon Ginnie Mae modifications) 2.8 1.7 4.9 3.7 Fair value gain (loss) on loans held for sale, at fair value (1) (54.7) (23.9) (82.2) (41.1) Other 4.5 2.3 9.2 5.5 Ending balance $ 1,103.9 $ 1,352.9 $ 1,103.9 $ 1,352.9 (1) Excludes retained MSR upon securitization. See below table of gain (loss) on loans held for sale, net. |
Schedule of Gains on Loans Held for Sale, Net | The following table presents the components of Gain (loss) of loans held for sale at fair value, net: Gain (Loss) on Loans Held for Sale, Net Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 MSRs retained on transfers of forward mortgage loans $ 67.7 $ 31.5 $ 102.4 $ 62.6 Gain (loss) on sale of mortgage loans (1) (53.6) (28.1) (77.8) (50.2) Gain (loss) on sale of repurchased Ginnie Mae loans (1) (0.2) (0.1) (1.0) 0.1 Change in fair value of loans held for sale (0.9) 4.3 (3.4) 9.1 Gain on loans held for sale, at fair value 13.0 7.6 20.2 21.5 Gain (loss) on economic hedge derivative instruments 5.0 21.2 9.7 4.8 Change in fair value of IRLCs (1.0) (3.2) (1.6) 2.4 Provision for representation and warranty obligations (0.6) (0.3) (0.9) (0.6) $ 16.5 $ 25.3 $ 27.4 $ 28.1 (1) Realized gain (loss) on sale of loans, excluding retained MSRs. |
Reverse Mortgages (Tables)
Reverse Mortgages (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Loans Held For Investment and HMBS Related Borrowings | The following table presents the estimated fair value of reverse mortgage loans held for investment for which we elected the fair value option: June 30, 2024 December 31, 2023 Unpaid principal balance $ 7,846.3 $ 7,664.7 Fair value adjustments 376.1 305.3 Total fair value $ 8,222.4 $ 7,970.0 The following table presents the composition of reverse mortgage loans held for investment, at fair value by type: June 30, 2024 December 31, 2023 HECM loans - securitized, pledged to HMBS-related borrowings (1) $ 8,109.4 $ 7,868.5 New HECM loan originations and HECM loan tails (2) - unsecuritized 113.0 101.5 Total fair value $ 8,222.4 $ 7,970.0 (1) The Ginnie Mae securitization of conventional, HECM loans does not qualify for sale accounting treatment and is accounted for as a secured financing transaction, with the recognition of both loans and HMBS-related borrowing on the consolidated balance sheets. (2) Tails represent the fair value of future scheduled and unscheduled draw commitments for HECM loans, mortgage insurance premium, servicing fee and other advances which we subsequently securitize. The following table summarizes the activity in reverse mortgage loans held for investment and HMBS related borrowings that do not qualify for sale accounting and for which we elected the fair value option: Three Months Ended June 30, 2024 2023 Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings Beginning balance $ 8,125.0 $ (7,945.0) $ 7,662.9 $ (7,470.6) Originations 269.9 — 272.2 — Securitization of HECM loans accounted for as a financing — (260.3) — (271.1) Additional proceeds from securitization of HECM loans and tails — (3.0) — 0.1 Repayments (principal payments received) (322.0) 316.0 (291.8) 289.8 Transfers to: Loans held for sale, at fair value (0.8) — (1.5) — Receivables, net (0.5) — (1.0) — REO (Other assets) (0.1) — — — Fair value gains (losses) included in earnings (1) 150.9 (143.0) 34.1 (34.5) Ending balance $ 8,222.4 $ (8,035.4) $ 7,674.8 $ (7,486.4) Six Months Ended June 30, 2024 2023 Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings Loans Held for Investment - Reverse Mortgages HMBS - Related Borrowings Beginning balance $ 7,970.0 $ (7,797.3) $ 7,504.1 $ (7,326.8) Originations 520.3 — 507.4 — Securitization of HECM loans accounted for as a financing (including realized fair value changes) — (507.7) — (502.3) Additional proceeds from securitization of HECM loans and tails — (6.4) — (6.1) Acquisition — — — — Repayments (principal payments received) (598.9) 588.1 (527.3) 525.1 Transfers to: Loans held for sale, at fair value (1.9) — (3.1) — Receivables, net (1.4) — (2.0) — REO (Other assets) (0.1) — (0.1) — Fair value gains (losses) included in earnings (1) 334.4 (312.0) 195.7 (176.2) Ending balance $ 8,222.4 $ (8,035.4) $ 7,674.8 $ (7,486.4) Securitized loans (pledged to HMBS-related borrowings) $ 8,109.4 $ (8,035.4) $ 7,553.7 $ (7,486.4) Unsecuritized loans 113.0 121.0 Total $ 8,222.4 $ 7,674.8 (1) See further breakdown of the net gain (loss) in the table below. |
Schedule of Reverse Mortgage Revenue, Net | Gain (Loss) on Reverse Loans Held for Investment and HMBS-related Borrowings, Net Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Gain on new originations (1) $ 5.1 $ 4.2 $ 11.0 $ 10.5 Net interest income (servicing fee) (2) 6.1 5.8 12.0 11.7 Other change in fair value of securitized loans held for investment and HMBS-related borrowings, net (3) (3.3) (9.9) (0.7) (1.8) Fair value gains (losses) included in earnings (3) (4) 7.9 0.1 22.4 20.5 Loan fees and other 0.6 0.7 1.5 1.5 $ 8.5 $ 0.7 $ 23.9 $ 21.9 (1) Includes the changes in fair value of newly originated loans held for investment in the period from interest rate lock commitment date through securitization date. (2) Includes the interest income on loans held for investment less the interest expense on HMBS-related borrowings. The net interest income includes the servicing fee Onity is contractually entitled to on securitized loans. (3) Includes the cash realized gains upon securitization of tails (previously reported separately in the table above). (4) See breakdown between Loans held for investment and HMBS-related borrowings in the table above within Fair value gains (losses) included in earnings. |
Advances (Tables)
Advances (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Advances [Abstract] | |
Schedule of Advances Paid on Behalf of Borrowers or on Foreclosed Properties | June 30, 2024 December 31, 2023 Principal and interest $ 180.0 $ 212.5 Taxes and insurance 253.6 343.3 Foreclosures, bankruptcy, REO and other (1) 125.9 130.3 Total advances, before allowance for losses 559.5 686.1 Allowance for losses (8.9) (7.3) Advances, net $ 550.6 $ 678.8 (1) Balance at June 30, 2024 includes servicing advances of $34.8 million (New York), $9.7 million (Florida), $8.8 million (California), $6.2 million (Pennsylvania) and $5.9 million (New Jersey) based on the underlying property location of the related mortgage loans. |
Schedule of Activity in Advances | The following table summarizes the activity in net advances: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning balance - before Allowance for Losses $ 610.5 $ 663.1 $ 686.1 $ 725.1 New advances 204.2 146.5 403.6 335.3 Transfer from (to) Receivables 2.1 2.2 5.0 11.1 Sales of advances (8.3) (0.6) (9.3) (4.9) Collections of advances and other (248.9) (201.1) (525.8) (456.6) Ending balance - before Allowance for Losses 559.5 610.0 559.5 610.0 Beginning balance - Allowance for Losses (7.7) $ (6.2) (7.3) (6.2) Provision expense (4.2) (2.8) (7.1) (4.6) Net charge-offs and other 3.0 1.6 5.5 3.4 Ending balance - Allowance for Losses (8.9) (7.4) (8.9) (7.4) Ending balance, net $ 550.6 $ 602.7 $ 550.6 $ 602.7 |
Mortgage Servicing (Tables)
Mortgage Servicing (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing [Abstract] | |
Schedule of Activity Related to MSRs - Fair Value Measurement Method | The following table presents the composition of our MSR portfolio: MSR UPB and Fair Value June 30, 2024 December 31, 2023 Fair Value UPB ($ billions) Fair Value UPB ($ billions) Owned MSRs $ 1,720.1 $ 122.0 $ 1,604.6 $ 122.7 Rithm and others transferred MSRs (1) 264.0 18.6 244.8 18.1 MAV transferred MSRs (1) 343.6 22.3 422.8 28.8 Total transferred MSR, subject to Pledged MSR liability, at fair value (1) 607.6 40.9 667.6 46.9 Total MSRs $ 2,327.7 $ 162.9 $ 2,272.2 $ 169.7 (1) MSRs subject to sale agreements that do not meet sale accounting criteria. See Note 8 — Other Financing Liabilities, at Fair Value. Mortgage Servicing Rights – At Fair Value Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning balance $ 2,374.7 $ 2,580.6 $ 2,272.2 $ 2,665.2 Sales (100.9) — (100.9) — Additions: Recognized on the sale of residential mortgage loans 67.7 31.5 102.4 62.6 Purchases of MSRs 34.9 19.1 61.8 44.0 Servicing transfers and adjustments (1) (85.7) (32.5) (87.0) (32.5) Net additions (sales) (84.1) 18.1 (23.7) 74.1 Changes in fair value recognized in earnings: Changes in valuation inputs or assumptions 92.6 136.8 194.4 53.2 Realization of cash flows (55.4) (59.7) (115.2) (116.8) Fair value gains (losses) recognized in earnings 37.2 77.1 79.2 (63.6) Ending balance $ 2,327.7 $ 2,675.7 $ 2,327.7 $ 2,675.7 (1) Servicing transfers and adjustments for the three months ended June 30, 2024 and 2023 include a $85.8 million and a $32.5 million, respectively, derecognition of GSE MSRs previously sold to MAV in a transaction which did not qualify for sale accounting treatment. We derecognized the MSRs with a UPB of $5.5 billion and $2.3 billion, from our June 30, 2024 and June 30, 2023 balance sheets, respectively, together with the associated Pledged MSR liability upon the sale of the MSRs by MAV to a third party. See Note 8 — Other Financing Liabilities, at Fair Value for further information. |
Financing Receivable, Past Due | The following table summarizes the delinquency status of the loans underlying our MSRs: June 30, 2024 December 31, 2023 Delinquent loans GSE GNMA Non - Agency Total GSE GNMA Non - Agency Total Total MSR UPB (in billions) $ 122.9 $ 17.5 $ 22.4 $ 162.9 $ 127.3 $ 18.6 $ 23.8 $ 169.7 30 days 1.3 % 6.2 % 9.4 % 3.7 % 1.2 % 6.1 % 9.4 % 3.7 % 60 days 0.2 2.0 3.5 1.2 0.2 2.0 3.6 1.2 90 days or more 0.5 4.2 7.3 2.5 0.5 3.7 8.2 2.6 Total 30-60-90 days or more 2.0 % 12.5 % 20.2 % 7.3 % 1.9 % 11.8 % 21.2 % 7.5 % |
Schedule of Components of Servicing and Subservicing Fees | The following table summarizes the components of our servicing and subservicing fee revenue: Servicing Revenue Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Loan servicing and subservicing fees Servicing fee $ 91.7 $ 89.4 $ 182.1 $ 179.3 Subservicing fee (4) 26.8 18.4 54.3 38.0 MAV Subservicing fee 1.9 2.0 3.8 3.8 MAV Servicing fee / Transferred MSR (1) 17.8 15.5 35.8 31.9 Rithm and Others Servicing fee / Transferred MSR (1) (3) 19.1 59.2 37.8 118.8 157.2 184.4 313.8 371.8 Ancillary income Custodial accounts (float earnings) 31.9 26.2 59.1 46.4 Late charges 8.7 9.5 16.7 19.0 Reverse subservicing ancillary fees 6.2 9.8 12.9 18.0 Loan collection fees 1.8 2.3 3.6 4.9 Recording fees 1.4 1.3 2.6 2.5 Boarding and deboarding fees 1.0 0.9 1.7 1.8 GSE forbearance fees 0.1 0.3 0.2 0.5 Other, net 2.5 2.9 4.8 4.8 53.6 53.2 101.5 97.9 Total Servicing and subservicing fees $ 210.8 $ 237.6 $ 415.3 $ 469.7 Owned MSR and Subservicing 169.7 157.6 334.0 308.6 Transferred MSR (1) (2) 41.1 80.0 81.3 161.1 (1) Includes servicing fees collected on behalf of respective parties related to transferred MSRs that do not achieve sale accounting. See Note 8 — Other Financing Liabilities, at Fair Value . (2) Includes $4.2 million and $7.8 million for the three and six months ended June 30, 2024, respectively, and $5.3 million and $10.4 million for the three and six months ended June 30, 2023, respectively, of ancillary income associated with transferred MSRs that do not achieve sale accounting. (3) Includes $45.2 million and $90.9 million of servicing fees in the three and six months ended June 30, 2023, respectively, related to MSRs previously sold to Rithm for which the sale accounting criteria were met effective December 31, 2023. See Note 8 — Other Financing Liabilities, at Fair Value . (4) Includes $11.5 million and $23.4 million of subservicing fees in the three and six months ended June 30, 2024 , respectively, related to MSRs previously sold to Rithm for which the sale accounting criteria were met effective December 31, 2023. See Note 8 — Other Financing Liabilities, at Fair Value . |
Other Financing Liabilities, _2
Other Financing Liabilities, at Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing [Abstract] | |
Schedule of Activity Related to Financing Liability - MSRs Pledged | The following tables present the activity of the pledged MSR liability recorded in connection with the MSR transfer agreements with MAV and other unrelated parties, including Rithm, that do not qualify for sale accounting. Three Months Ended June 30, Six Months Ended June 30, Pledged MSR Liability 2024 2023 2024 2023 Beginning balance $ 647.9 $ 883.3 $ 645.5 $ 931.7 MSR transfers MSR transfers to MAV — 0.1 — 0.2 MSR transfers to others 5.8 93.3 12.7 97.6 Total MSR transfers 5.8 93.4 12.7 97.8 Derecognition of financing liability Derecognition of financing liability - MAV (2) (85.7) (32.5) (85.7) (32.5) Total derecognition of financing liability (85.7) (32.5) (85.7) (32.5) Fair value (gain) loss Changes in fair value due to inputs and assumptions 32.5 81.0 40.3 42.7 Realization of expected cash flows (10.4) (15.6) (22.9) (30.1) Total fair value (gain) loss 22.1 65.4 17.4 12.6 Ending balance (1) $ 590.0 $ 1,009.5 $ 590.0 $ 1,009.5 (1) The fair value of the Pledged MSR liability differs from the fair value of the associated transferred MSR asset mostly due to the portion of ancillary income that is contractually retained by PHH (shared between PHH and MAV) and other contractual cash flows. (2) During the three months ended June 30, 2024 and June 30, 2023, we derecognized a portion of the MAV Pledged MSR liability upon sale of the related MSRs by MAV to third parties with a UPB of $5.5 billion and $2.3 billion, respectively. |
Schedule of Assets, Liabilities Related to MSR Transfer Agreements | The following table presents financing liabilities carried at fair value which include pledged MSR liabilities recorded in connection with MSR transfers, subservicing retained, that do not qualify for sale accounting, liabilities of consolidated mortgage-backed securitization trusts and MSR excess servicing spread (ESS) financing liability carried at fair value (see Note 13 – Borrowings for ESS financing liability carried at amortized cost). Outstanding Balance Borrowing Type Collateral Maturity June 30, 2024 December 31, 2023 MSR transfers not qualifying for sale accounting (1): Pledged MSR liability, at fair value - MAV MSRs (1) $ 333.1 $ 409.2 Rights to MSRs Agreements, at fair value - Rithm MSRs (1) 121.6 121.0 Pledged MSR liability, at fair value - Others MSRs (1) 135.3 115.3 Total Pledged MSR liability, at fair value 590.0 645.5 Financing liability - Owed to securitization investors, at fair value: Residential Asset Securitization Trust 2003-A11 (RAST 2003-A11) (2) Loans held for investment October 2033 5.4 5.6 ESS financing liability, at fair value (3) MSRs (3) (3) 250.5 248.9 Total Other financing liabilities, at fair value $ 845.9 $ 900.0 (1) MSRs transferred, subservicing retained, or sold in transactions which do not qualify for sale accounting treatment are accounted for as secured financings. Until such time as the transaction qualifies as a sale for accounting purposes, we continue to recognize the MSRs and the related financing liability (referred as Pledged MSR liability) on our consolidated balance sheets, as well as the full amount of servicing fee collected as revenue and the servicing fee remitted as Pledged MSR liability expense in our consolidated statements of operations. Fair value gains and losses of the Pledged MSR liability are recognized in MSR valuation adjustments, net in the consolidated statements of operations - See Note 7 – Mortgage Servicing and Note 9 – MSR Valuation Adjustments, Net. (2) Consists of securitization debt certificates due to third parties that represent beneficial interests in trusts that are consolidated. (3) |
Schedule of Results of Operations in Connection With MSR Transfer Agreements that Do Not Qualify for Sale Accounting | Three Months Ended June 30, 2024 2023 Rithm and Others MAV Total Rithm and Others (1) MAV Total Servicing fees collected on behalf of MAV, Rithm and others $ 19.1 $ 17.8 $ 36.9 $ 59.2 $ 15.5 $ 74.7 Less: Subservicing fee retained by Onity (4.4) (2.3) (6.8) (16.9) (2.1) (19.1) Ancillary fee/income and other settlement (including expense reimbursement) 3.1 (0.2) 3.0 3.6 (0.2) 3.5 Transferred MSR net servicing fee remittance $ 17.8 $ 15.3 33.1 $ 45.9 $ 13.2 59.1 ESS servicing spread remittance 13.0 13.9 Pledged MSR liability expense $ 46.1 $ 73.0 (1) Includes $45.2 million of servicing fees collected on behalf of Rithm, $12.8 million of subservicing fee retained and $32.4 million of net servicing fee remittance in the three months ended June 30, 2023 related to MSRs previously sold to Rithm for which the sale accounting criteria were met effective December 31, 2023. Six Months Ended June 30, 2024 2023 Rithm and Others MAV Total Rithm and Others (1) MAV Total Servicing fees collected on behalf of Rithm, MAV and others $ 37.8 $ 35.8 $ 73.6 $ 118.8 $ 31.9 $ 150.7 Less: Subservicing fee retained by Onity (9.0) (4.9) (13.9) (34.2) (4.4) (38.6) Ancillary fee/income and other settlement (including expense reimbursement) 5.5 (0.3) 5.3 6.9 (0.2) 6.7 Transferred MSR net servicing fee remittance $ 34.3 $ 30.7 65.0 $ 91.5 $ 27.3 118.8 ESS servicing spread remittance 26.1 24.5 Pledged MSR liability expense $ 91.0 $ 143.3 (1) Includes $90.9 million of servicing fees collected on behalf of Rithm, $25.9 million of subservicing fee retained and $65.0 million of net servicing fee remittance in the six months ended June 30, 2023 related to MSRs previously sold to Rithm for which the sale accounting criteria were met effective December 31, 2023. |
MSR Valuation Allowance, Net (T
MSR Valuation Allowance, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing [Abstract] | |
Schedule Of MSR Valuation Allowance, Net | The table below presents the components of MSR valuation adjustments, net, that include four MSR related instruments which we account for at fair value with changes in fair value recorded in earnings: (i) the fair value changes of the total MSR portfolio (Total MSRs) recorded on our consolidated balance sheets ($2.3 billion fair value asset at June 30, 2024). Total MSRs include owned MSRs and MSRs that have been sold or transferred to third parties in transactions that do not achieve sale accounting criteria. Owned MSRs include MSRs subject to ESS financing transactions; (ii) the fair value changes of the Pledged MSR liabilities recorded as liabilities on our consolidated balance sheets when MSR sale accounting criteria are not achieved ($590.0 million fair value liability at June 30, 2024); (iii) the fair value changes of the ESS financing liabilities for which we elected the fair value option ($250.5 million fair value liability at June 30, 2024); and (iv) the fair value changes of the derivative instruments economically hedging the MSR exposure. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Total MSRs (1) $ 37.2 $ 77.2 $ 79.2 $ (63.3) Pledged MSR liabilities (2) (3) (22.1) (65.4) (17.5) (12.7) ESS financing liabilities (2) 2.9 4.6 (1.7) 9.3 Derivative fair value gain (loss) (MSR economic hedges) (4) (50.6) (65.2) (104.3) (51.1) MSR valuation adjustments, net $ (32.7) $ (48.9) $ (44.3) $ (117.9) (1) Also refer to Note 7 – Mortgage Servicing. (2) Also refer to Note 8 — Other Financing Liabilities, at Fair Value for additional information related to the ESS financing liability and Pledged MSR liability, including a tabular presentation of activity of the Pledged MSR liability for the reported years. (3) MSR transfers that do not achieve sale accounting. (4) Also refer to Note 15 – Derivative Financial Instruments and Hedging Activities. |
Receivables (Tables)
Receivables (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Receivables | June 30, 2024 December 31, 2023 Servicing-related receivables: Government-insured loan claims - Forward $ 37.2 $ 43.6 Government-insured loan claims - Reverse 60.8 64.5 Due from custodial accounts 14.8 13.8 Subservicing fees and reimbursable expenses 14.9 14.3 Receivable from sale of MSRs (holdback) 6.3 5.1 Subservicing fees, reimbursable expenses and other - Due from MAV 0.8 3.4 Other 6.4 4.5 141.3 149.2 Income taxes receivable (1) 27.8 27.1 Other receivables 4.7 3.6 173.8 179.9 Allowance for losses (20.4) (25.1) $ 153.4 $ 154.8 (1) Includes $26.0 million and $25.2 million at June 30, 2024 and December 31, 2023, respectively, from the USVI Bureau of Internal Revenue (BIR) for a refund of income taxes paid in prior years. In December 2022, we executed an agreement with the BIR for payment of the income tax refunds related to tax years 2013 through 2015, plus accrued interest, over a two-year period ending December 31, 2024. The BIR did not make the payment that was due on December 31, 2023 nor any subsequent payments pursuant to the agreement. On February 8, 2024, we filed a lawsuit against the USVI for the refund of income taxes paid in prior years and for the USVI’s breach of the above-referenced agreement. |
Schedule of Changes in Allowance For Losses | Allowance for Losses Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning balance $ 22.7 $ 29.5 $ 25.1 $ 34.3 Provision 3.1 4.0 7.1 7.9 Charge-offs and other, net (5.4) (6.1) (11.8) (14.9) Ending balance $ 20.4 $ 27.4 $ 20.4 $ 27.4 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Assets [Abstract] | |
Schedule of Other Assets | June 30, 2024 December 31, 2023 Prepaid expenses (including prepaid lender fees) $ 24.9 $ 34.3 REO 20.9 18.3 Derivatives, at fair value 12.6 21.6 Derivative margin deposit 8.6 12.8 Prepaid representation, warranty and indemnification claims - Agency MSR sale 5.0 5.0 Intangible assets, net (net of accumulated amortization of $11.8 million and $10.1 million) 4.6 6.2 Deferred tax asset, net 3.4 3.1 Other 4.3 5.0 $ 84.3 $ 106.2 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Match Funded Liabilities | Advance Match Funded Liabilities Available Borrowing Capacity Outstanding Balance Borrowing Type Expected Repayment Date (1) Uncommitted Committed June 30, 2024 December 31, 2023 $500 million Ocwen Master Advance Receivables Trust (OMART) - Advance Receivables Backed Notes - Series 2015-Variable Funding (VF) 5 (2) August 2025 $ 50.0 $ 96.7 $ 353.3 $ 409.8 $200 million Ocwen GSE Advance Funding (OGAF) - Advance Receivables Backed Notes, Series 2015-VF1 (2) August 2025 — 149.0 51.0 89.1 $14.4 million EBO Advance facility (3) May 2026 13.7 — 0.7 0.9 Total Advance match funded liabilities $ 63.7 $ 245.7 $ 405.0 $ 499.7 Weighted average interest rate (4) 7.88 % 8.07 % (1) The Expected Repayment Date of our facilities, as defined, is the date on which the revolving period ends under each advance facility note and repayment of the outstanding balance is required if the note is not renewed or extended. In certain of our advance facilities, there are multiple notes outstanding. (2) The committed borrowing capacity under the OMART and OGAF facilities is available to us provided that we have sufficient eligible collateral to pledge. At June 30, 2024, none of the available borrowing capacity of the OMART and OGAF advance financing notes could be used based on the amount of eligible collateral. (3) At June 30, 2024, none of the available borrowing capacity of the facility could be used based on the amount of eligible collateral. (4) The weighted average interest rate excludes the effect of the amortization of prepaid lender fees. At June 30, 2024 and December 31, 2023, the balance of unamortized prepaid lender fees was $3.8 million and $5.5 million, respectively, and are included in Other assets in our consolidated balance sheets. At June 30, 2024 and December 31, 2023, 1-Month (1M) Term Secured Overnight Financing Rate (SOFR) was 5.34% and5.35%, respectively. Mortgage Loan Financing Facilities Available Borrowing Capacity Outstanding Balance Borrowing Type Collateral Maturity Uncommitted Committed (1) June 30, 2024 December 31, 2023 $200 million Master repurchase agreement (2) LHFS, April 2024 $ — $ — $ — $ — $50 million Loan and security agreement (3) LHFS and Receivables June 2024 — — — — $40 million Mortgage warehouse agreement (4) LHFI September 2024 — 40.0 — — Master repurchase agreement LHFS September 2024 — 1.0 — — $400 million Participation agreement LHFS September 2024 139.1 — 260.9 83.9 $200 million Master repurchase agreement LHFS, LHFI and Receivables September 2024 — 161.6 38.4 64.2 $30 million Loan and security agreement LHFI September 2024 — 18.4 11.6 — $175 million Master repurchase agreement Loans held for sale (LHFS), Receivables and REO October 2024 125.0 45.3 4.7 15.7 $500 million Master repurchase agreement (5) LHFS and LHFI January 2025 204.5 — 295.5 168.4 $205 million Mortgage warehouse agreement (6) LHFS and LHFI May 2025 117.0 — 88.0 71.1 Mortgage Loan Financing Facilities Available Borrowing Capacity Outstanding Balance Borrowing Type Collateral Maturity Uncommitted Committed (1) June 30, 2024 December 31, 2023 OLIT Asset-Backed Notes, Series 2023-HB1 (7) Reverse LHFS, June 2036 — — 127.0 164.4 OLIT Asset-Backed Notes, Series 2024-HB1 (7) Reverse LHFS, February 2037 — — 187.1 — $350 million Mortgage warehouse agreement (8) LHFS N/A 350.0 — — — $230 million Mortgage warehouse agreement (9) LHFS and Receivables (9) 219.4 — 10.6 12.2 Master repurchase agreement (10) LHFS (10) — — 200.7 151.7 Total Mortgage loan financing facilities $ 1,155.1 $ 266.3 $ 1,224.3 $ 731.6 Unamortized discount and debt issuance costs - OLIT Notes (33.9) (21.0) Total Mortgage loan financing facilities, net $ 1,190.5 $ 710.6 Weighted average interest rate (11) 5.90 % 6.15 % (1) Of the borrowing capacity on mortgage loan financing facilities extended on a committed basis, none of the available borrowing capacity could be used at June 30, 2024 based on the amount of eligible collateral that could be pledged on a committed basis. (2) On April 1, 2024, we voluntarily allowed the facility to mature. (3) This revolving facility agreement provides committed borrowing capacity secured by eligible HECM loans that are active buyouts, as defined in the agreement. On June 28,2024, we voluntarily allowed the facility to mature. (4) In June 2024, the maturity date was extended to September 30, 2024 . (5) In January 2024, the maturity date was extended to January 3, 2025. (6) In May 2024, the maturity date was extended to May 31, 2025 and the total maximum borrowing under this agreement was increased to $205.0 million. (7) In June 2023 and February 2024, OLIT issued different classes of Asset-Backed Notes with an initial principal amount of $264.9 million and $268.6 million, at a discount and a mandatory call date of June 2026 and February 2027, respectively, both with a stated interest rate of 3.0%. Payments of interest and principal are made from available funds from a pool of reverse mortgage buyout loans and REOs in accordance with the indenture priority of payments. Also see Note 2 – Securitizations and Variable Interest Entities. (8) This agreement has no stated maturity dat e. (9) The agreement has no stated maturity date, however each transaction has a maximum duration of four years. (10) This repurchase agreement provides borrowing at our discretion up to a certain maximum amount of capacity on a rolling 90-day committed basis. This facility is structured as a gestation repurchase facility whereby dry Agency mortgage loans are transferred to a trust which issues a trust certificate that is pledged as the collateral for the borrowings. Each certificate is renewed monthly. In April 2024, we voluntarily increased the trust certificates by $50.0 million to $200.0 million. See Note 2 – Securitizations and Variable Interest Entities for additional information. (11) The weighted average interest rate excludes the effect of the amortization of discount, debt issuance costs and prepaid lender fees. At June 30, 2024 and December 31, 2023, unamortized prepaid lender fees were $0.6 million and $1.0 million, respectively, and are included in Other assets in our consolidated balance sheets. MSR Financing Facilities Available Borrowing Capacity Outstanding Balance Borrowing Type Collateral Maturity Uncommitted Committed (1) June 30, 2024 December 31, 2023 $365 million GSE MSR financing facility (2) MSRs August 2024 $ — $ 119.9 $ 245.1 $ 242.9 $300 million Ginnie Mae MSR financing facility (3) MSRs, Advances February 2025 93.0 — 207.0 212.5 Ocwen Excess Spread-Collateralized Notes, Series 2022-PLS1 (4) MSRs February 2025 — — 32.1 39.2 2022-PLS1 Notes Issuer Membership Interest Master repurchase agreement (5) MSRs February 2025 — — 34.0 — $400 million GSE MSR financing facility (6) MSRs December 2025 — 15.5 384.5 393.9 Secured Notes, Ocwen Asset Servicing Income Series Notes, Series 2014-1 MSRs February 2028 — — 25.5 28.1 Total MSR financing facilities $ 93.0 $ 135.4 $ 928.2 $ 916.6 Unamortized debt issuance costs - PLS facilities (7) (0.5) (0.4) Total MSR financing facilities, net $ 927.7 $ 916.2 Weighted average interest rate (8) 8.26% 8.18% (1) Of the borrowing capacity on MSR financing facilities extended on a committed basis, $28.2 million of the available borrowing capacity could be used at June 30, 2024 based on the amount of eligible collateral that could be pledged on a committed basis. (2) PHH’s obligations under this facility are secured by a lien on certain related MSRs. Onity guarantees the obligations of PHH under this facility. See Note 2 – Securitizations and Variable Interest Entities for additional information. We are subject to daily margining requirements under the terms of the facility. In June 2024, the maturity date was extended to August 28, 2024 . (3) PHH’s obligations under this facility are secured by a lien on the related Ginnie Mae MSRs and servicing advances. Onity guarantees the obligations of PHH under the facility. We are subject to daily margining requirements under the terms of the facility. In March 2024, the maturity date was extended to February 25, 2025 and the uncommitted borrowing capacity was increased to $300.0 million. (4) The single class PLS Notes are an amortizing debt instrument with an original principal amount of $75.0 million and a fixed interest rate of 5.114%. The PLS Notes are issued by a trust (PLS Issuer) that is included in our consolidated financial statements, and PLS Issuer’s obligations under the facility are secured by a lien on the related PLS MSRs. Onity guarantees the obligations of PLS Issuer under the facility. The principal balance amortizes in accordance with a predetermined schedule subject to modification under certain events, with a final payment due in February 2025. See Note 2 – Securitizations and Variable Interest Entities for additional information. (5) On March 4, 2024, PHH entered into a $34.0 million repurchase agreement pursuant to which PHH sold the membership interest certificate representing 100% of the limited liability company interests in PLS Issuer and has agreed to repurchase such membership interest certificate at a specified future date at the price set forth in the repurchase agreement. Onity guarantees the obligations of PHH under the facility subject to the terms and conditions set forth in the guaranty. We are subject to daily margining requirements under the terms of the facility. Refer to Note 2 – Securitizations and Variable Interest Entities for additional information regarding PLS Issuer and the PLS Notes. (6) This facility is secured by a lien on certain of PHH’s Agency MSRs and is subject to daily margining requirements. Any outstanding borrowings on the revolving loan will convert into a term loan in November 2024. (7) At June 30, 2024 and December 31, 2023, unamortized prepaid lender fees related to revolving-type MSR financing facilities were $2.4 million and $3.6 million, respectively, and are included in Other assets in our consolidated balance sheets. (8) |
Schedule of Senior Notes | Senior Notes Interest Rate (1) Maturity Outstanding Balance June 30, 2024 December 31, 2023 PMC Senior Secured Notes (2) 7.875% March 2026 $ 312.6 $ 360.0 OFC Senior Secured Notes (due to related parties) (3) 12% paid in cash or 13.25% paid-in-kind (see below) March 2027 285.0 285.0 Principal balance 597.6 645.0 Unamortized discount (0.6) (0.9) Unamortized debt issuance costs (2.1) (3.0) PMC Senior Secured Notes (2.7) (3.9) Unamortized discount (34.3) (39.1) Unamortized debt issuance costs (5.4) (6.2) OFC Senior Secured Notes (39.7) (45.3) $ 555.2 $ 595.8 (1) Excludes the effect of the amortization of debt issuance costs and discount. (2) Redeemable at 101.969% before March 15, 2025, at par thereafter. The Indenture contains customary covenants for debt securities of this type that limit the ability of PHH Corporation and its restricted subsidiaries (including PHH) to, among other things, (i) incur or guarantee additional indebtedness, (ii) incur liens, (iii) pay dividends on or make distributions in respect of PHH Corporation’s capital stock or make other restricted payments, (iv) make investments, (v) consolidate, merge, sell or otherwise dispose of certain assets, and (vi) enter into transactions with Onity’s affiliates. (3) Redeemable at par plus a make-whole premium prior to March 4, 2026, at par thereafter. The make-whole premium represents the present value of all scheduled interest payments due through March 4, 2026. The Notes are solely the obligation of Onity and are secured by a pledge of substantially all of the assets of Onity, including a pledge of the equity of Onity’s directly held subsidiaries. |
Schedule of Assets Held as Collateral Related to Secured Borrowings | Our assets held as collateral for secured borrowings and other unencumbered assets which may be subject to a lien under various collateralized borrowings are as follows at June 30, 2024: Assets Pledged Collateralized Borrowings Unencumbered Assets (1) Cash $ 203.1 $ — $ — $ 203.1 Restricted cash 46.3 46.3 9.4 — Loans held for sale 1,107.0 1,063.7 1,063.6 43.3 Loans held for investment - securitized (2) 8,109.4 8,109.4 8,035.4 — Loans held for investment - unsecuritized 113.0 81.9 71.8 31.2 MSRs (3) 1,720.1 1,729.1 1,147.7 — Advances, net 550.6 469.2 435.8 81.5 Receivables, net 153.4 56.4 60.3 97.0 REO 20.9 17.9 19.3 3.0 Total (4) $ 12,023.8 $ 11,573.9 $ 10,843.1 $ 458.9 (1) Certain assets are pledged as collateral to the PMC Senior Secured Notes and OFC Senior Secured (second lien) Notes. (2) Reverse mortgage loans and real estate owned are pledged as collateral to the HMBS beneficial interest holders, and are not available to satisfy the claims of our creditors. Ginnie Mae, as guarantor of the HMBS, is obligated to the holders of the HMBS in an instance of PHH’s default on its servicing obligations, or if the proceeds realized on HECMs are insufficient to repay all outstanding HMBS related obligations. Ginnie Mae has recourse to PHH in connection with certain claims relating to the performance and obligations of PHH as both issuer of HMBS and servicer of HECMs underlying HMBS. (3) Excludes MSRs transferred to MAV, Rithm and others, and associated Pledged MSR liability recorded as sale accounting criteria are not met. Pledged assets exceed the MSR asset balance primarily due to the netting of certain PLS MSR portfolios with negative and positive fair values as eligible collateral. (4) |
Schedule of Second Lien Priority on Specified Assets Carried on Balance Sheet | The OFC Senior Secured Notes due 2027 have a second lien priority on specified security interests, as defined under the OFC Senior Secured Note Agreement and summarized in the table below, and have a priority lien on the following assets: investments by OFC in subsidiaries not guaranteeing the PMC Senior Secured Notes, including PHH Corporation and MAV; cash and investment accounts at OFC; and certain other assets, including receivables. June 30, 2024 Specified net servicing advances $ 153.0 Specified deferred servicing fee 5.4 Specified MSR value less borrowings 674.5 Specified unrestricted cash balances 127.3 Specified advance facility reserves 10.6 Specified loan value 78.0 Specified residual value — Total $ 1,048.7 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | June 30, 2024 December 31, 2023 Due to Rithm - Advance collections and servicing fees $ 54.2 $ 50.3 Checks held for escheat 53.3 52.0 Other accrued expenses 48.5 67.5 Servicing-related obligations 47.4 48.4 Liability for indemnification obligations 36.1 35.5 Accrued interest payable 15.3 14.3 Accrued legal fees and settlements 15.1 8.3 Liability for uncertain tax positions 12.8 12.2 Derivative related payables 12.1 10.7 Lease liability 10.2 10.2 Derivatives, at fair value 9.9 7.0 Liability for unfunded pension obligation and India gratuity plan 7.8 9.2 Mortgage insurance premium payable 5.1 5.0 MSR purchase price holdback 3.6 3.8 Income taxes payable 2.1 8.2 Excess servicing fee spread payable 1.8 3.6 Other 2.7 3.2 $ 337.9 $ 349.3 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Activity | The table below summarizes the fair value, notional and maturity of our derivative instruments. The notional amount of our contracts does not represent our exposure to credit loss. None of the derivatives were designated as a hedge for accounting purposes as of or during the six months ended June 30, 2024 and 2023. June 30, 2024 December 31, 2023 Maturities Notional Fair value Maturities Notional Fair value Derivative Assets (Other assets) Forward sales of Reverse loans July 2024 $ 20.0 $ — N/A $ — $ — Forward loans IRLCs July - October 2024 1,532.4 3.5 January - May 2024 592.5 5.1 Reverse loans IRLCs September 2024 22.2 0.6 February 2024 22.1 0.6 TBA forward MBS trades July - September 2024 2,269.7 7.5 January - March 2024 1,818.6 10.1 Forward sales of Forward loans N/A — — January 2024 5.5 — Interest rate swap futures September 2024 250.0 0.5 March 2024 790.0 3.9 Interest rate option contracts July 2024 250.0 0.2 January 2024 750.0 1.9 Treasury futures contracts September 2024 75.0 0.1 N/A — — Total $ 4,419.2 $ 12.6 $ 3,978.7 $ 21.6 Derivative Liabilities (Other liabilities) Forward sales of Reverse loans July 2024 20.0 — January 2024 50.0 (0.1) TBA forward MBS trades July - August 2024 2,110.5 (8.2) January - March 2024 854.9 (6.8) Interest rate swap futures September 2024 350.0 (1.5) N/A — — Interest rate option contracts July 2024 250.0 (0.2) N/A — — Other N/A — — N/A 15.3 (0.1) Total $ 2,730.5 $ (9.9) $ 920.2 $ (7.0) The table below summarizes the net gains and losses of our derivative instruments recognized in our consolidated statements of operations. Three Months Ended June 30, Six Months Ended June 30, Financial Statement Line Gain (Loss) 2024 2023 2024 2023 Derivative Instruments Forward loans IRLCs $ (1.0) $ (3.2) $ (1.6) $ 2.4 Gain on loans held for sale, net Reverse loans IRLCs 0.1 (0.2) 0.1 (0.3) Gain on reverse loans held for investment and HMBS-related borrowings, net Forward trades (economically hedging forward pipeline trades and EBO pipeline) 0.3 — — — Gain on loans held for sale, net (Economic hedge) TBA trades (economically hedging forward pipeline trades and EBO pipeline) 4.8 21.2 9.7 4.8 Gain on loans held for sale, net (Economic hedge) Interest rate futures, TBA trades and interest rate option contracts (economically hedging MSR) (50.6) (65.2) (104.3) (51.1) MSR valuation adjustments, net Forward sales of Reverse loans (0.2) — 0.1 — Gain on reverse loans held for investment and HMBS-related borrowings, net Other — — — 0.3 Other, net Total $ (46.7) $ (47.4) $ (96.0) $ (44.0) |
Interest Expense (Tables)
Interest Expense (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Components of Interest Expense | Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Mortgage loan financing facilities $ 24.8 $ 19.8 $ 43.5 $ 33.4 MSR financing facilities 19.6 17.8 37.5 35.3 OFC Senior Secured Notes (1) 11.4 10.9 22.6 21.7 Advance match funded liabilities 9.3 10.4 19.8 21.1 PMC Senior Secured Notes 6.5 7.8 13.9 15.5 Escrow 1.4 1.6 3.2 3.5 $ 73.1 $ 68.3 $ 140.5 $ 130.5 (1) Notes issued to Oaktree affiliates, inclusive of amortization of debt issuance costs and discount of $2.8 million and $5.6 million for the three and six months ended June 30, 2024, respectively, and $2.4 million and $4.7 million for the three and six months ended June 30, 2023, respectively. |
Basic and Diluted Earnings pe_2
Basic and Diluted Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Calculation of Basic Loss per Share to Diluted Loss per Share | Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Basic earnings (loss) per share Net income (loss) $ 10.5 $ 15.5 $ 40.6 $ (24.7) Weighted average shares of common stock outstanding 7,821,128 7,652,563 7,766,331 7,593,391 Basic earnings (loss) per share $ 1.34 $ 2.02 $ 5.23 $ (3.25) Diluted earnings (loss) per share Net income (loss) $ 10.5 $ 15.5 $ 40.6 $ (24.7) Weighted average shares of common stock outstanding 7,821,128 7,652,563 7,766,331 7,593,391 Effect of dilutive elements Common stock warrants 3,713 115,977 36,148 — Common stock awards 93,831 151,047 179,950 — Dilutive weighted average shares of common stock 7,918,672 7,919,587 7,982,429 7,593,391 Diluted earnings (loss) per share $ 1.33 $ 1.95 $ 5.09 $ (3.25) Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share Anti-dilutive (1) 264,110 84,748 148,027 59,703 Market-based (2) 64,085 61,354 64,085 61,354 (1) Includes stock options and stock awards that are anti-dilutive based on the application of the treasury stock method. (2) Shares that are issuable upon the achievement of certain market-based performance criteria related to Onity’s stock price. |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Three Months Ended June 30, 2024 Results of Operations Servicing Originations Corporate Items and Other Business Segments Consolidated Servicing and subservicing fees $ 210.1 $ 0.7 $ — $ 210.8 Gain on reverse loans held for investment and HMBS-related borrowings, net 2.8 5.7 — 8.5 Gain on loans held for sale, net (0.2) 16.7 — 16.5 Other revenue, net 4.4 6.2 — 10.6 Revenue 217.2 29.2 — 246.4 MSR valuation adjustments, net (35.8) 3.1 — (32.7) Operating expenses Compensation and benefits 24.5 11.3 19.2 55.0 Servicing and origination 11.2 2.3 0.5 13.9 Technology and communications 6.2 1.7 5.0 13.0 Professional services 2.8 0.5 7.4 10.7 Occupancy, equipment and mailing 6.6 0.5 0.4 7.5 Corporate overhead allocations 10.8 4.3 (15.0) — Other expenses 0.9 1.4 1.5 3.9 Operating expenses 63.1 22.0 18.9 104.0 Other income (expense): Interest income 7.2 14.2 1.1 22.5 Interest expense (47.0) (14.9) (11.2) (73.1) Pledged MSR liability expense (46.1) — — (46.1) Earnings of equity method investee 3.1 — — 3.1 Gain on extinguishment of debt — — — — Other, net (2.9) (0.2) 0.4 (2.7) Other income (expense), net (85.7) (0.9) (9.6) (96.2) Income (loss) before income taxes $ 32.6 $ 9.4 $ (28.5) $ 13.5 Three Months Ended June 30, 2023 Results of Operations Servicing Originations Corporate Items and Other Business Segments Consolidated Servicing and subservicing fees $ 237.2 $ 0.4 $ — 237.6 Gain on reverse loans held for investment and HMBS-related borrowings, net (4.1) 4.8 — 0.7 Gain (loss) on loans held for sale, net 15.1 10.2 — 25.3 Other revenue, net 4.5 4.0 — 8.5 Revenue 252.7 19.3 — 272.0 MSR valuation adjustments, net (50.5) 1.6 — (48.9) Operating expenses Compensation and benefits 26.7 10.9 20.1 57.7 Servicing and origination 16.4 1.0 0.2 17.6 Technology and communications 6.1 1.8 5.1 13.0 Professional services 11.3 0.4 (28.6) (16.9) Occupancy, equipment and mailing 7.2 0.5 — 7.7 Corporate overhead allocations 11.1 5.0 (16.2) — Other expenses 2.2 1.5 1.4 5.1 Operating expenses 81.1 21.1 (17.8) 84.3 Other income (expense): Interest income 5.9 13.1 1.2 20.3 Interest expense (43.3) (14.1) (10.9) (68.3) Pledged MSR liability expense (73.1) — — (73.0) Earnings of equity method investee 2.9 — — 2.9 Gain on extinguishment of debt — — — — Other, net (4.5) (0.2) 0.4 (4.4) Other income (expense), net (112.1) (1.2) (9.2) (122.5) Income (loss) before income taxes $ 9.0 $ (1.3) $ 8.7 $ 16.3 Six Months Ended June 30, 2024 Results of Operations Servicing Originations Corporate Items and Other Business Segments Consolidated Servicing and subservicing fees $ 414.3 $ 1.0 $ — $ 415.3 Gain on reverse loans held for investment and HMBS-related borrowings, net 11.4 12.5 — 23.9 Gain on loans held for sale, net (1) 1.7 25.7 — 27.4 Other revenue, net 8.8 10.0 — 18.8 Revenue 436.2 49.3 — 485.5 MSR valuation adjustments, net (1) (48.3) 4.0 — (44.3) Operating expenses Compensation and benefits 49.8 21.5 37.3 108.6 Servicing and origination 24.4 3.7 0.8 29.0 Technology and communications 12.3 3.4 9.9 25.7 Professional services 9.9 0.8 12.0 22.8 Occupancy, equipment and mailing 13.5 1.0 0.8 15.2 Corporate overhead allocations 21.7 8.2 (29.9) — Other expenses 2.0 2.4 2.8 7.2 Operating expenses 133.6 41.0 33.7 208.4 Other income (expense): Interest income 13.9 23.8 2.3 40.0 Interest expense (92.8) (25.3) (22.4) (140.5) Pledged MSR liability expense (91.1) — 0.1 (91.0) Earnings of equity method investee 5.8 — — 5.8 Gain on extinguishment of debt — — 1.4 1.4 Other (3.4) (0.3) 0.4 (3.4) Other income (expense), net (167.6) (1.7) (18.2) (187.5) Income (loss) before income taxes $ 86.7 $ 10.5 $ (51.9) $ 45.3 Six months ended June 30, 2023 Results of Operations Servicing Originations Corporate Items and Other Business Segments Consolidated Servicing and subservicing fees $ 469.0 $ 0.8 $ — $ 469.7 Gain (loss) on reverse loans held for investment and HMBS-related borrowings, net 9.9 12.0 — 21.9 Gain (loss) on loans held for sale, net (1) 13.8 14.3 — 28.1 Other revenue, net 7.0 7.1 — 14.1 Revenue 499.8 34.1 — 533.9 MSR valuation adjustments, net (1) (121.4) 3.5 — (117.9) Operating expenses Compensation and benefits 56.1 20.5 39.2 115.7 Servicing and origination 31.6 1.1 0.5 33.3 Technology and communications 12.5 3.5 10.5 26.4 Professional services 19.3 0.8 (23.7) (3.6) Occupancy, equipment and mailing 14.9 1.0 0.6 16.5 Corporate overhead allocations 22.6 9.9 (32.4) — Other expenses 4.5 3.0 2.7 10.1 Operating expenses 161.4 39.8 (2.7) 198.4 Other income (expense): Interest income 10.1 22.1 2.2 34.4 Interest expense (84.8) (24.0) (21.7) (130.5) Pledged MSR liability expense (143.4) — 0.1 (143.3) Earnings of equity method investee 3.1 — — 3.1 Gain on extinguishment of debt — — — — Other (4.9) — 1.8 (3.2) Other income (expense), net (220.0) (1.9) (17.6) (239.5) Income (loss) before income taxes $ (3.0) $ (4.0) $ (15.0) $ (22.0) Total Assets Servicing Originations Corporate Items and Other Business Segments Consolidated June 30, 2024 $ 11,904.4 $ 913.5 $ 266.8 $ 13,084.7 December 31, 2023 11,687.6 551.9 274.3 12,513.7 |
Commitments (Tables)
Commitments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Commitments [Abstract] | |
Schedule of Activity Related to HMBS Repurchases | The table below provides the breakdown of the portfolio UPB with respect to the percentage of the MCA at June 30, 2024. Securitized HECM loans at less than 92% MCA $ 7,204.0 Securitized HECM loans at equal to or greater than 92% and less than 95% MCA 256.2 Securitized HECM loans at equal to or greater than 95% MCA and less than 98% MCA 241.6 Total Securitized HECM loans UPB $ 7,701.9 Active Inactive Total Beginning balance $ 55.4 $ 130.6 $ 186.0 Additions 50.7 30.5 81.2 Recoveries, net (1) (58.1) (32.0) (90.0) Transfers 0.1 (0.1) — Changes in value 0.1 (2.0) (1.9) Ending balance $ 48.2 $ 127.1 $ 175.3 (1) Includes amounts received upon assignment of loan to HUD, loan payoff, REO liquidation and claim proceeds less any amounts charged off as unrecoverable. |
Contingencies (Tables)
Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Loss Contingency [Abstract] | |
Schedule of Indemnification Obligations | The following table presents the changes in our liability for representation and warranty obligations and similar indemnification obligations: Six Months Ended June 30, 2024 2023 Beginning balance (1) $ 32.9 $ 41.6 Provision for (reversal of) representation and warranty obligations (1.0) 2.1 Provision for representation and warranty obligations - New production liability 0.9 0.6 Charge-offs and other (2) 0.2 (6.2) Ending balance (1) $ 33.0 $ 38.1 (1) The liability for representation and warranty obligations and compensatory fees for foreclosures is reported in Other liabilities (a component of Liability for indemnification obligations) on our unaudited consolidated balance sheets. (2) Includes reclassification of principal and interest losses in connection with repurchased loans, make-whole, indemnification and fee payments and settlements net of recoveries, if any. |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Narrative (Details) | Jun. 30, 2024 numberOfEmployees employee |
Description of Business and Basis of Presentation [Line Items] | |
Total number of employees | 4,300 |
MAV Canopy HoldCo I, LLC | |
Description of Business and Basis of Presentation [Line Items] | |
Ownership percentage | 15% |
INDIA | |
Description of Business and Basis of Presentation [Line Items] | |
Total number of employees | employee | 2,900 |
PHILIPPINES | |
Description of Business and Basis of Presentation [Line Items] | |
Total number of employees | 400 |
Securitizations and Variable _3
Securitizations and Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||||||
Average period to securitization | 30 days | |||||
MSRs retained | $ 67.7 | $ 31.5 | $ 102.4 | $ 62.6 | ||
Percentage of loan transferred through securitization 60 days or more past due | 2.50% | 2.80% | ||||
Threshold period past due | 60 days | 60 days | 60 days | |||
Mortgage Warehouse Agreement | Variable Interest Entity, Primary Beneficiary | ||||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||||||
Mortgages Held-for-sale, Fair Value Disclosure | $ 200.1 | $ 200.1 | $ 150.1 | |||
Warehouse Mortgage Loan Financing Facility | Variable Interest Entity, Primary Beneficiary | ||||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||||||
Loans held for sale pledged as a collateral | 200 | 200 | 150 | |||
Mortgages Held-for-sale, Fair Value Disclosure | $ 228.7 | $ 228.7 | $ 119.5 | |||
Ginnie Mae Loans | ||||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||||||
Percentage of loan transferred through securitization 60 days or more past due | 7.30% | 8% | ||||
Threshold period past due | 60 days | 60 days | 60 days |
Securitizations and Variable _4
Securitizations and Variable Interest Entities - Schedule of Cash Flows Related to Transfers Accounted for as Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Transfers and Servicing [Abstract] | ||||
Proceeds received from securitizations | $ 4,249.2 | $ 2,298.1 | $ 6,808.1 | $ 4,614.9 |
Servicing fees collected | 40.2 | 28.2 | 78.5 | 55.2 |
Purchases of previously transferred assets, net of claims reimbursed | (3.7) | (4) | (6.2) | (7.1) |
Cash flows between transferor and transferee proceeds and payment related to transfers accounted for sales | $ 4,285.7 | $ 2,322.4 | $ 6,880.3 | $ 4,663 |
Securitizations and Variable _5
Securitizations and Variable Interest Entities - Schedule of Assets That Relate to Continuing Involvement with Transferred Financial Assets with Servicing Rights and Maximum Exposure to Loss Including the Unpaid Principal Balance (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
UPB of loans transferred | $ 47,658.7 | $ 46,810.1 |
Maximum exposure to loss | 48,434.3 | 47,545.6 |
GinnieMae | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
UPB of loans transferred | 10,500 | 10,500 |
Mortgage Servicing Rights - Fair Value | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying value of assets | 690.6 | 636.5 |
Advances | ||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | ||
Carrying value of assets | $ 85.1 | $ 99 |
Securitizations and Variable _6
Securitizations and Variable Interest Entities - Schedule Of Securitization Reverse Mortgage Loans Buyouts And Financing Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Receivables, net | $ 153.4 | $ 154.8 | |
Debt service accounts | 27 | $ 71.2 | |
Mortgage loan financing facilities, net ($280.1 and $143.4 related to VIEs) | 1,190.5 | 710.6 | |
Liabilities | 12,638.4 | 12,111.9 | |
Other restricted cash | 19.3 | $ 47.9 | |
Total Assets | 13,084.7 | 12,513.7 | |
Variable Interest Entity, Primary Beneficiary | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Receivables, net | 33.1 | 19.9 | |
Mortgage loan financing facilities, net ($280.1 and $143.4 related to VIEs) | 280.1 | 143.4 | |
Variable Interest Entity, Primary Beneficiary | Warehouse Mortgage Loan Financing Facility | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Mortgages Held-for-sale, Fair Value Disclosure | 228.7 | 119.5 | |
Receivables, net | 33.1 | 19.9 | |
Real estate owned | 17.9 | 12.5 | |
Mortgage loan financing facilities, net ($280.1 and $143.4 related to VIEs) | 314 | 164.4 | |
Unamortized discount and debt issuance costs | (33.9) | (21) | |
Accrued expenses (Other liabilities) | 0.9 | 0.5 | |
Liabilities | 281 | 143.8 | |
Other restricted cash | 10.2 | 6.8 | |
Total Assets | 290 | 158.6 | |
Variable Interest Entity, Primary Beneficiary | Mortgage Warehouse Agreement | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Mortgages Held-for-sale, Fair Value Disclosure | $ 200.1 | $ 150.1 |
Securitizations and Variable _7
Securitizations and Variable Interest Entities - Schedule Of Carrying Value and Classification of Assets and Liabilities of Advance Financing Facilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Debt service accounts | $ 27 | $ 71.2 | |
Advance match funded liabilities | 405 | $ 499.7 | |
Variable Interest Entity, Primary Beneficiary | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Advance match funded liabilities | 404.3 | 498.9 | |
Variable Interest Entity, Primary Beneficiary | Advance match funded liabilities | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Match funded advances (Advances, net) | 467.9 | 573 | |
Debt service accounts | 10.6 | 15.7 | |
Advance match funded liabilities | $ 404.3 | $ 498.9 |
Securitizations and Variable _8
Securitizations and Variable Interest Entities - Schedule Of Carrying Value and Classification of Assets and Liabilities of Agency MSR Financing Facility (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Servicing Asset | $ 2,327.7 | $ 2,272.2 | |
Debt service accounts | $ 27 | $ 71.2 |
Securitizations and Variable _9
Securitizations and Variable Interest Entities - Carrying Value and Classification of Assets And Liabilities of PLS Notes Facility (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Servicing Asset | $ 2,327.7 | $ 2,272.2 | |
Debt service account (Restricted cash) | 27 | $ 71.2 | |
Unamortized debt issuance costs | (33.9) | (21) | |
Secured Debt | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Unamortized debt issuance costs | (0.5) | (0.4) | |
Variable Interest Entity, Primary Beneficiary | Secured Debt | Agency and PLS Mortgage Servicing Rights Financing Facility | |||
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items] | |||
Servicing Asset | 518.9 | 449.6 | |
Debt service account (Restricted cash) | 1.7 | 1.7 | |
Short-Term Debt | 277.2 | 282.1 | |
Unamortized debt issuance costs | $ (0.2) | $ (0.4) |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Loans held for sale | ||||||
Loans held for sale, at fair value | $ 1,103.9 | $ 1,025.7 | $ 674.2 | $ 1,352.9 | $ 845.2 | $ 617.8 |
Financial liabilities | ||||||
Advance match funded liabilities | 405 | 499.7 | ||||
Financing liabilities, at fair value: | ||||||
HMBS-related borrowings | 8,035.4 | 7,945 | 7,797.3 | 7,486.4 | 7,470.6 | 7,326.8 |
Other financing liabilities, at fair value | 845.9 | 900 | ||||
Other secured borrowings: | ||||||
Mortgage loan financing facilities, net ($280.1 and $143.4 related to VIEs) | 1,190.5 | 710.6 | ||||
MSR financing facilities | 927.7 | 916.2 | ||||
Senior notes | ||||||
Total Senior notes | 555.2 | 595.8 | ||||
Mortgage servicing rights | ||||||
MSRs | 2,327.7 | 2,374.7 | 2,272.2 | 2,580.6 | 2,665.2 | |
Carrying Value | ||||||
Loans held for sale | ||||||
Total Loans held for sale | 1,107 | 677.3 | ||||
Loans held for investment, at fair value | 8,227.8 | 7,975.5 | ||||
Financing liabilities, at fair value: | ||||||
Other financing liabilities, at fair value | 845.9 | 900 | ||||
Senior notes | ||||||
Total Senior notes | 555.2 | 595.8 | ||||
Fair Value | ||||||
Loans held for sale | ||||||
Total Loans held for sale | 1,107 | 677.3 | ||||
Loans held for investment, at fair value | 8,227.8 | 7,975.5 | ||||
Financing liabilities, at fair value: | ||||||
Other financing liabilities, at fair value | 845.9 | 900 | ||||
Senior notes | ||||||
Total Senior notes | 561.6 | 556.5 | ||||
ESS Financing Liability | ||||||
Financing liabilities, at fair value: | ||||||
Other financing liabilities, at fair value | 250.5 | 248.9 | ||||
Level 3 | Carrying Value | ||||||
Loans held for sale | ||||||
Loans held for sale, at fair value | 1,103.9 | 674.2 | ||||
Loans held for sale, at lower of cost or fair value | 3.1 | 3.1 | ||||
Loans held for investment, at fair value | 8,222.4 | 7,970 | ||||
Advances, net | 550.6 | 678.8 | ||||
Receivables, net | 153.4 | 154.8 | ||||
Financial liabilities | ||||||
Advance match funded liabilities | 405 | 499.7 | ||||
Financing liabilities, at fair value: | ||||||
HMBS-related borrowings | 8,035.4 | 7,797.3 | ||||
Other secured borrowings: | ||||||
Mortgage loan financing facilities, net ($280.1 and $143.4 related to VIEs) | 1,190.5 | 710.6 | ||||
MSR financing facilities | 927.7 | 916.2 | ||||
Mortgage servicing rights | ||||||
MSRs | 2,327.7 | 2,272.2 | ||||
Level 3 | Carrying Value | Second Lien | ||||||
Senior notes | ||||||
Senior secured notes | 245.3 | 239.7 | ||||
Level 3 | Fair Value | ||||||
Loans held for sale | ||||||
Loans held for sale, at fair value | 1,103.9 | 674.2 | ||||
Loans held for sale, at lower of cost or fair value | 3.1 | 3.1 | ||||
Loans held for investment, at fair value | 8,222.4 | 7,970 | ||||
Advances, net | 550.6 | 678.8 | ||||
Receivables, net | 153.4 | 154.8 | ||||
Financial liabilities | ||||||
Advance match funded liabilities | 405 | 499.7 | ||||
Financing liabilities, at fair value: | ||||||
HMBS-related borrowings | 8,035.4 | 7,797.3 | ||||
Other secured borrowings: | ||||||
Mortgage loan financing facilities, net ($280.1 and $143.4 related to VIEs) | 1,196.5 | 717.6 | ||||
MSR financing facilities | 914 | 900.3 | ||||
Mortgage servicing rights | ||||||
MSRs | 2,327.7 | 2,272.2 | ||||
Level 3 | Fair Value | Second Lien | ||||||
Senior notes | ||||||
Senior secured notes | 256.3 | 230.5 | ||||
Level 3 | Interest Rate Contract | Carrying Value | ||||||
Derivative financial instrument assets (liabilities), net | ||||||
Interest rate lock commitments | 4.1 | 5.6 | ||||
Level 3 | Interest Rate Contract | Fair Value | ||||||
Derivative financial instrument assets (liabilities), net | ||||||
Interest rate lock commitments | 4.1 | 5.6 | ||||
Level 3 | Other | Carrying Value | ||||||
Derivative financial instrument assets (liabilities), net | ||||||
Other commitments (a) | 0 | (0.1) | ||||
Level 3 | Other | Fair Value | ||||||
Derivative financial instrument assets (liabilities), net | ||||||
Other commitments (a) | 0 | (0.1) | ||||
Level 3 | ESS Financing Liability | ||||||
Mortgage servicing rights | ||||||
Loans related to Ginnie Mae guaranteed securitizations | (250.5) | (253.4) | (248.9) | (258.5) | (263.1) | (199) |
Level 3 | Loans Held for Sale - Fair Value | ||||||
Mortgage servicing rights | ||||||
Loans related to Ginnie Mae guaranteed securitizations | 296.7 | $ 284 | 203.1 | $ 197.4 | $ 23.3 | $ 32.1 |
Level 3 | Loans Held for Investment Securitization Trusts | Carrying Value | ||||||
Loans held for sale | ||||||
Loans held for investment, at fair value | 5.4 | 5.6 | ||||
Level 3 | Loans Held for Investment Securitization Trusts | Fair Value | ||||||
Loans held for sale | ||||||
Loans held for investment, at fair value | 5.4 | 5.6 | ||||
Level 2 | Carrying Value | ||||||
Loans held for sale | ||||||
Loans held for sale, at fair value | 1,103.9 | 674.2 | ||||
Senior notes | ||||||
Senior secured notes | 309.9 | 356.1 | ||||
Level 2 | Fair Value | ||||||
Loans held for sale | ||||||
Loans held for sale, at fair value | 1,103.9 | 674.2 | ||||
Senior notes | ||||||
Senior secured notes | 305.3 | 326 | ||||
Level 1 | Other | Carrying Value | ||||||
Derivative financial instrument assets (liabilities), net | ||||||
Interest rate lock commitments | (1.4) | 9.1 | ||||
Level 1 | Other | Fair Value | ||||||
Derivative financial instrument assets (liabilities), net | ||||||
Interest rate lock commitments | $ (1.4) | $ 9.1 |
Fair Value - Schedule of Reconc
Fair Value - Schedule of Reconciliation of Changes in Fair Value of Level 3 Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Purchases, issuances, sales and settlements | ||||
Advances (capitalization upon Ginnie Mae modifications) | $ 2,800 | $ 1,700 | $ 4,900 | $ 3,700 |
Total realized and unrealized gains and (losses): | ||||
Gains (losses) on derivatives | (46,700) | (47,400) | (96,000) | (44,000) |
Forward loans IRLCs | ||||
Total realized and unrealized gains and (losses): | ||||
Gains (losses) on derivatives | (900) | (3,400) | (1,500) | 2,100 |
Level 3 | Loans Held for Sale - Fair Value | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 284,000 | 23,300 | 203,100 | 32,100 |
Purchases, issuances, sales and settlements | ||||
Purchases and other | 80,500 | 240,400 | 225,500 | 252,800 |
Sales | (38,700) | (38,500) | (76,700) | (58,700) |
Settlements (2) | (25,100) | (25,800) | (47,300) | (25,800) |
Loans held for investment, at fair value | 800 | 1,500 | 1,900 | 1,500 |
Receivables, net | (7,600) | (15,600) | (18,200) | (16,100) |
Advances (capitalization upon Ginnie Mae modifications) | (2,800) | (1,700) | (4,900) | 1,700 |
Other | 2,800 | (2,800) | ||
Purchases, issuances, sales and settlements, total | 8,300 | 159,500 | 82,800 | 151,300 |
Total realized and unrealized gains and (losses): | ||||
Change in fair value included in earnings | 4,400 | 14,600 | 10,900 | 14,000 |
Ending balance | 296,700 | 197,400 | 296,700 | 197,400 |
REO (Other assets) | (4,300) | (7,100) | (7,300) | (7,100) |
Level 3 | ESS Financing Liability | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | (253,400) | (263,100) | (248,900) | (199,000) |
Purchases, issuances, sales and settlements | ||||
Issuances | 0 | 0 | (68,700) | |
Settlements (2) | 7,000 | 8,100 | 14,400 | 14,900 |
Purchases, issuances, sales and settlements, total | 7,000 | 8,200 | 14,400 | (53,800) |
Total realized and unrealized gains and (losses): | ||||
Change in fair value included in earnings | (4,100) | (3,600) | (16,000) | (5,600) |
Ending balance | (250,500) | (258,500) | (250,500) | (258,500) |
Level 3 | IRLCs | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 5,000 | 4,800 | 5,600 | (700) |
Purchases, issuances, sales and settlements | ||||
Issuances | 4,000 | 4,400 | 21,200 | 10,100 |
Loans held for sale, at fair value | 8,600 | (10,800) | 2,800 | (31,200) |
Purchases, issuances, sales and settlements, total | 12,600 | (6,500) | 24,000 | (21,000) |
Total realized and unrealized gains and (losses): | ||||
Change in fair value included in earnings | (13,500) | 3,000 | (25,500) | 23,100 |
Ending balance | $ 4,100 | $ 1,400 | $ 4,100 | $ 1,400 |
Fair Value - Schedule of Signif
Fair Value - Schedule of Significant Assumptions used in Valuation (Details) | Jun. 30, 2024 USD ($) year | Dec. 31, 2023 USD ($) year |
Discount rate | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.094 | 0.094 |
Loans Held for Investment Reverse Mortgages | Discount rate | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.052 | 0.049 |
Loans Held for Investment Reverse Mortgages | Minimum | Life in years | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.7 | 0.8 |
Loans Held for Investment Reverse Mortgages | Minimum | Weighted average prepayment speed | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.116 | 0.120 |
Loans Held for Investment Reverse Mortgages | Maximum | Life in years | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 7.9 | 7.9 |
Loans Held for Investment Reverse Mortgages | Maximum | Weighted average prepayment speed | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.329 | 0.354 |
Loans Held for Investment Reverse Mortgages | Weighted Average | Life in years | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 5.1 | 5.2 |
Loans Held for Investment Reverse Mortgages | Weighted Average | Weighted average prepayment speed | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.177 | 0.172 |
Fair Value Agency Mortgage Servicing Rights | Weighted average prepayment speed | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.063 | 0.077 |
Fair Value Agency Mortgage Servicing Rights | Discount rate | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.099 | 0.092 |
Fair Value Agency Mortgage Servicing Rights | Weighted average lifetime delinquency rate | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.012 | 0.013 |
Fair Value Agency Mortgage Servicing Rights | Weighted average cost to service (in dollars) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | $ | 71 | 71 |
Fair Value Non-Agency Mortgage Servicing Rights | Weighted average prepayment speed | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.078 | 0.079 |
Fair Value Non-Agency Mortgage Servicing Rights | Discount rate | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.109 | 0.114 |
Fair Value Non-Agency Mortgage Servicing Rights | Weighted average lifetime delinquency rate | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.101 | 0.100 |
Fair Value Non-Agency Mortgage Servicing Rights | Weighted average cost to service (in dollars) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | $ | 192 | 192 |
HMBS - Related Borrowings | Discount rate | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.052 | 0.049 |
HMBS - Related Borrowings | Minimum | Life in years | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.7 | 0.8 |
HMBS - Related Borrowings | Minimum | Weighted average prepayment speed | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.116 | 0.120 |
HMBS - Related Borrowings | Maximum | Life in years | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 7.9 | 7.9 |
HMBS - Related Borrowings | Maximum | Weighted average prepayment speed | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.329 | 0.354 |
HMBS - Related Borrowings | Weighted Average | Life in years | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 5.1 | 5.2 |
HMBS - Related Borrowings | Weighted Average | Weighted average prepayment speed | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.177 | 0.172 |
Mortgage Servicing Rights Pledged | Life in years | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 4.7 | 4.3 |
Mortgage Servicing Rights Pledged | Weighted average prepayment speed | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.053 | 0.065 |
Mortgage Servicing Rights Pledged | Discount rate | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.104 | 0.096 |
Mortgage Servicing Rights Pledged | Weighted average lifetime delinquency rate | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | 0.030 | 0.028 |
Mortgage Servicing Rights Pledged | Weighted average cost to service (in dollars) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Measurement input | $ | 134 | 130 |
Fair Value - Schedule of Estima
Fair Value - Schedule of Estimated Change in Fair Value of MSRs (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Fair Value Disclosures [Abstract] | |
Weighted average prepayment speeds, 10% | $ (56.3) |
Weighted average prepayment speeds, 20% | (111.3) |
Weighted average discount rate, 10% | (79.7) |
Weighted average discount rate, 20% | $ (152.9) |
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 10 Percent Adverse Change in Prepayment Speed, Percent | 0.007 |
ensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 20 Percent Adverse Change in Prepayment Speed, Percent | 0.015 |
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 10 Percent Adverse Change in Discount Rate, Percent | 0.010 |
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 20 Percent Adverse Change in Discount Rate, Percent | 0.020 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) | Jun. 30, 2024 | Dec. 31, 2023 |
Discount rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.094 | 0.094 |
Loans Held for Sale - Fair Va_3
Loans Held for Sale - Fair Value - Schedule of Loans Held for Sale Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Movement In Loans Held For Sale At Fair Value [Roll Forward] | ||||
Beginning balance | $ 1,025.7 | $ 845.2 | $ 674.2 | $ 617.8 |
Originations and purchases | 4,420.5 | 2,859.9 | 7,409.4 | 5,412.3 |
Proceeds from sales | (4,256.4) | (2,279.6) | (6,837.4) | (4,575.8) |
Principal collections | (27.5) | (31.6) | (50.6) | (47) |
Loans held for investment, at fair value | 0.8 | 1.5 | 1.9 | 3.1 |
Receivables, net | (7.6) | (15.6) | (18.2) | (14.5) |
REO (Other assets) | (4.3) | (7.1) | (7.3) | (11.2) |
Advances (capitalization upon Ginnie Mae modifications) | 2.8 | 1.7 | 4.9 | 3.7 |
Fair value gain (loss) on loans held for sale, at fair value (1) | (54.7) | (23.9) | (82.2) | (41.1) |
Other | 4.5 | 2.3 | 9.2 | 5.5 |
Ending balance | 1,103.9 | 1,352.9 | 1,103.9 | 1,352.9 |
Principal amount outstanding on loans held for sale | 1,139.8 | 678.8 | 1,139.8 | 678.8 |
Premium (discount) balance on loans held for sale | (28.7) | (2.4) | (28.7) | (2.4) |
Fair value adjustment to loans held for sale | (7.2) | (2.2) | (7.2) | (2.2) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans Held-for-sale, Fair Value Disclosure | 1,103.9 | $ 1,352.9 | 1,103.9 | $ 1,352.9 |
GSE loans | ||||
Movement In Loans Held For Sale At Fair Value [Roll Forward] | ||||
Beginning balance | 219.3 | |||
Ending balance | 558 | 558 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans Held-for-sale, Fair Value Disclosure | 558 | 558 | ||
Government- Forward loans | ||||
Movement In Loans Held For Sale At Fair Value [Roll Forward] | ||||
Beginning balance | 254 | |||
Ending balance | 263 | 263 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans Held-for-sale, Fair Value Disclosure | 263 | 263 | ||
Repurchased Ginnie Mae Loans | ||||
Movement In Loans Held For Sale At Fair Value [Roll Forward] | ||||
Beginning balance | 19.1 | |||
Ending balance | 23.9 | 23.9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans Held-for-sale, Fair Value Disclosure | 23.9 | 23.9 | ||
Reverse Loans | ||||
Movement In Loans Held For Sale At Fair Value [Roll Forward] | ||||
Beginning balance | 166.6 | |||
Ending balance | 249.8 | 249.8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans Held-for-sale, Fair Value Disclosure | 249.8 | 249.8 | ||
Other residential mortgage loans | ||||
Movement In Loans Held For Sale At Fair Value [Roll Forward] | ||||
Beginning balance | 15.2 | |||
Ending balance | 9.2 | 9.2 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans Held-for-sale, Fair Value Disclosure | $ 9.2 | $ 9.2 |
Loans Held for Sale - Fair Va_4
Loans Held for Sale - Fair Value - Schedule of Gains on Loans Held for Sale, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
MSRs retained on transfers of forward mortgage loans | $ 67.7 | $ 31.5 | $ 102.4 | $ 62.6 |
Gain (loss) on sales of loans, net | 13 | 7.6 | 20.2 | 21.5 |
Change in fair value of IRLCs | (1) | (3.2) | (1.6) | 2.4 |
Change in fair value of loans held for sale | (0.9) | 4.3 | (3.4) | 9.1 |
Gain (loss) on economic hedge instruments | 5 | 21.2 | 9.7 | 4.8 |
Other | (0.6) | (0.3) | (0.9) | (0.6) |
Gain on loans held for sale, net | 16.5 | 25.3 | 27.4 | 28.1 |
MSR valuation adjustments, net | (32.7) | (48.9) | (44.3) | (117.9) |
Gain (loss) on Sale of Forward Mortgage Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gain (loss) on sales of loans, net | (53.6) | (28.1) | (77.8) | (50.2) |
Repurchased Ginnie Mae Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gain (loss) on sales of loans, net | $ (0.2) | $ (0.1) | $ (1) | $ 0.1 |
Reverse Mortgages - Schedule of
Reverse Mortgages - Schedule of Loans Held For Investment and HMBS Related Borrowings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Loans Held for Investment - Reverse Mortgages | |||||
Loans Held For Investment, Reverse Mortgages, Unpaid Principal | $ 7,846.3 | $ 7,846.3 | $ 7,664.7 | ||
Loans Held For Investment, Reverse Mortgages, Fair Value Adjustment | 376.1 | 376.1 | 305.3 | ||
Beginning balance | 8,125 | $ 7,662.9 | 7,970 | $ 7,504.1 | |
Originations | 269.9 | 272.2 | 520.3 | 507.4 | |
Repayments (principal payments received) | (322) | (291.8) | (598.9) | (527.3) | |
Loans held for sale, at fair value | (0.8) | (1.5) | (1.9) | (3.1) | |
Receivables, net | (0.5) | (1) | (1.4) | (2) | |
Acquisition | 0 | 0 | |||
REO (Other assets) | (0.1) | 0 | (0.1) | (0.1) | |
Change in fair value | 150.9 | 34.1 | 334.4 | 195.7 | |
Securitized loans (pledged to HMBS-related borrowings) | 8,109.4 | 7,553.7 | 8,109.4 | 7,553.7 | 7,868.5 |
Unsecuritized loans | 113 | 121 | 113 | 121 | $ 101.5 |
Ending balance | 8,222.4 | 7,674.8 | 8,222.4 | 7,674.8 | |
HMBS Related Borrowings | |||||
Beginning balance | (7,945) | (7,470.6) | (7,797.3) | (7,326.8) | |
Securitization of HECM loans accounted for as a financing | (260.3) | (271.1) | (507.7) | (502.3) | |
Additional proceeds from securitization of HECM loans and tails | (3) | 0.1 | (6.4) | (6.1) | |
Acquisition | 0 | 0 | |||
Repayments (principal payments received) | 316 | 289.8 | 588.1 | 525.1 | |
Change in fair value | (143) | (34.5) | (312) | (176.2) | |
Ending balance | (8,035.4) | (7,486.4) | (8,035.4) | (7,486.4) | |
Securitized loans (pledged to HMBS-related borrowings) | $ (8,035.4) | $ (7,486.4) | $ (8,035.4) | $ (7,486.4) |
Reverse Mortgages - Schedule _2
Reverse Mortgages - Schedule of Reverse Mortgage Revenue, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Receivables [Abstract] | ||||
Gain on new originations | $ 5.1 | $ 4.2 | $ 11 | $ 10.5 |
Net interest income (servicing fee) | 6.1 | 5.8 | 12 | 11.7 |
Other change in fair value of securitized loans held for investment and HMBS-related borrowings, net (3) | (3.3) | (9.9) | (0.7) | (1.8) |
Change in fair value included in earnings, net | 7.9 | 0.1 | 22.4 | 20.5 |
Loan fees and other | 0.6 | 0.7 | 1.5 | 1.5 |
Gain on reverse loans held for investment and HMBS-related borrowings, net | $ 8.5 | $ 0.7 | $ 23.9 | $ 21.9 |
Advances - Schedule of Advances
Advances - Schedule of Advances Paid on Behalf of Borrowers or on Foreclosed Properties (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Advances On Behalf of Borrowers [Line Items] | ||||||
Advances, gross | $ 559.5 | $ 686.1 | ||||
Allowance for losses | (8.9) | $ (7.7) | (7.3) | $ (7.4) | $ (6.2) | $ (6.2) |
Advances, net | 550.6 | 678.8 | ||||
Principal and interest | ||||||
Advances On Behalf of Borrowers [Line Items] | ||||||
Advances, gross | 180 | 212.5 | ||||
Taxes and insurance | ||||||
Advances On Behalf of Borrowers [Line Items] | ||||||
Advances, gross | 253.6 | 343.3 | ||||
Foreclosures, bankruptcy, REO and other (1) | ||||||
Advances On Behalf of Borrowers [Line Items] | ||||||
Advances, gross | 125.9 | $ 130.3 | ||||
Foreclosures, bankruptcy, REO and other (1) | NEW YORK | ||||||
Advances On Behalf of Borrowers [Line Items] | ||||||
Advances, gross | 34.8 | |||||
Foreclosures, bankruptcy, REO and other (1) | FLORIDA | ||||||
Advances On Behalf of Borrowers [Line Items] | ||||||
Advances, gross | 9.7 | |||||
Foreclosures, bankruptcy, REO and other (1) | CALIFORNIA | ||||||
Advances On Behalf of Borrowers [Line Items] | ||||||
Advances, gross | 8.8 | |||||
Foreclosures, bankruptcy, REO and other (1) | PENNSYLVANIA | ||||||
Advances On Behalf of Borrowers [Line Items] | ||||||
Advances, gross | 6.2 | |||||
Foreclosures, bankruptcy, REO and other (1) | NEW JERSEY | ||||||
Advances On Behalf of Borrowers [Line Items] | ||||||
Advances, gross | $ 5.9 |
Advances - Schedule of Activity
Advances - Schedule of Activity in Advances (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Advances [Roll Forward] | ||||
Beginning balance - before Allowance for Losses | $ 610.5 | $ 663.1 | $ 686.1 | $ 725.1 |
New advances | 204.2 | 146.5 | 403.6 | 335.3 |
Advances Payments On Behalf Of Borrower Transfers To Other Assets | 2.1 | 2.2 | 5 | 11.1 |
Sales of advances | (8.3) | (0.6) | (9.3) | (4.9) |
Collections of advances and other | (248.9) | (201.1) | (525.8) | (456.6) |
Ending balance - before Allowance for Losses | 559.5 | 610 | 559.5 | 610 |
Beginning balance - Allowance for Losses | (7.7) | (6.2) | (7.3) | (6.2) |
Provision expense | (4.2) | (2.8) | (7.1) | (4.6) |
Net charge-offs and other | 3 | 1.6 | 5.5 | 3.4 |
Ending balance - Allowance for Losses | (8.9) | (7.4) | (8.9) | (7.4) |
Ending balance, net | $ 550.6 | $ 602.7 | $ 550.6 | $ 602.7 |
Mortgage Servicing - Schedule o
Mortgage Servicing - Schedule of Activity Related to MSRs - Fair Value Measurement Method (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Beginning balance | $ 2,374.7 | $ 2,580.6 | $ 2,272.2 | $ 2,665.2 | |
Servicing Asset at Fair Value, Disposals | (100.9) | 0 | (100.9) | 0 | |
Recognized on the sale of residential mortgage loans | 67.7 | 31.5 | 102.4 | 62.6 | |
Purchases of MSRs | 34.9 | 19.1 | 61.8 | 44 | |
Servicing transfers and adjustments | (85.7) | (32.5) | (87) | (32.5) | |
Changes in fair value recognized in earnings: | |||||
Changes in valuation inputs or assumptions | 92.6 | 136.8 | 194.4 | 53.2 | |
Realization of cash flows | (55.4) | (59.7) | (115.2) | (116.8) | |
Ending balance | $ 2,272.2 | 2,327.7 | 2,327.7 | ||
Assets serviced | 169,700 | 162,900 | 162,900 | ||
Servicing Asset at Fair Value, Period Increase (Decrease) | 37.2 | 79.2 | |||
Servicing assets at fair value, net additions (sales) recognized | (84.1) | (23.7) | |||
Derivative, Gain (Loss) on Derivative, Net | 46.7 | 47.4 | 96 | 44 | |
MSR valuation adjustments, net | 32.7 | 48.9 | 44.3 | 117.9 | |
Total MSR Reserve Fair Value Gains (Losses) | 37.2 | 77.2 | 79.2 | (63.3) | |
ESS Financing Liability | |||||
Changes in fair value recognized in earnings: | |||||
Realization of expected cash flows | 10.4 | 15.6 | 22.9 | 30.1 | |
Derivative, Gain (Loss) on Derivative, Net | (50.6) | (65.2) | (104.3) | (51.1) | |
MSR Asset Vehicle LLC | |||||
Changes in fair value recognized in earnings: | |||||
UPB of MSRs sold | 30.1 | 17.9 | |||
Fair Value Agency Mortgage Servicing Rights | |||||
Changes in fair value recognized in earnings: | |||||
Ending balance | 2,675.7 | 2,675.7 | |||
Servicing Asset at Fair Value, Period Increase (Decrease) | 77.1 | (63.6) | |||
Servicing assets at fair value, net additions (sales) recognized | 18.1 | $ 74.1 | |||
Fair Value Agency Mortgage Servicing Rights | MAV Asset Vehicle LLC | |||||
Changes in fair value recognized in earnings: | |||||
UPB of MSRs sold | 5,500 | 2,300 | |||
Fair Value Non-Agency Mortgage Servicing Rights | |||||
Changes in fair value recognized in earnings: | |||||
Assets serviced | 23,800 | 22,400 | 22,400 | ||
Rithm Capital Corp . and others | |||||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Beginning balance | 244.8 | ||||
Changes in fair value recognized in earnings: | |||||
Ending balance | 244.8 | 264 | 264 | ||
Assets serviced | 18,100 | 18,600 | 18,600 | ||
Transferred MSR, Subject To Pledged Liability | |||||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Beginning balance | 667.6 | ||||
Changes in fair value recognized in earnings: | |||||
Ending balance | 667.6 | 607.6 | 607.6 | ||
Assets serviced | 46,900 | 40,900 | 40,900 | ||
Fair Value GSE Mortgage Servicing Rights | |||||
Changes in fair value recognized in earnings: | |||||
Assets serviced | $ 127,300 | 122,900 | $ 122,900 | ||
Fair Value GSE Mortgage Servicing Rights | MAV Asset Vehicle LLC | |||||
Changes in fair value recognized in earnings: | |||||
Servicing Asset At Fair Value, Amount Derecognized | $ 85.8 | $ 32.5 |
Mortgage Servicing - Summary of
Mortgage Servicing - Summary of Delinquency Status of Loans Underlying Mortgage Servicing Rights (Details) - USD ($) $ in Billions | Jun. 30, 2024 | Dec. 31, 2023 |
Participating Mortgage Loans [Line Items] | ||
Assets serviced | $ 162.9 | $ 169.7 |
Percent of aggregate unpaid principal balance | 7.30% | 7.50% |
30 days | ||
Participating Mortgage Loans [Line Items] | ||
Percent of aggregate unpaid principal balance | 3.70% | 3.70% |
60 days | ||
Participating Mortgage Loans [Line Items] | ||
Percent of aggregate unpaid principal balance | 1.20% | 1.20% |
90 days or more | ||
Participating Mortgage Loans [Line Items] | ||
Percent of aggregate unpaid principal balance | 2.50% | 2.60% |
Fair Value Non-Agency Mortgage Servicing Rights | ||
Participating Mortgage Loans [Line Items] | ||
Assets serviced | $ 22.4 | $ 23.8 |
Percent of aggregate unpaid principal balance | 20.20% | 21.20% |
Fair Value Non-Agency Mortgage Servicing Rights | 30 days | ||
Participating Mortgage Loans [Line Items] | ||
Percent of aggregate unpaid principal balance | 9.40% | 9.40% |
Fair Value Non-Agency Mortgage Servicing Rights | 60 days | ||
Participating Mortgage Loans [Line Items] | ||
Percent of aggregate unpaid principal balance | 3.50% | 3.60% |
Fair Value Non-Agency Mortgage Servicing Rights | 90 days or more | ||
Participating Mortgage Loans [Line Items] | ||
Percent of aggregate unpaid principal balance | 7.30% | 8.20% |
Fair Value GSE Mortgage Servicing Rights | ||
Participating Mortgage Loans [Line Items] | ||
Assets serviced | $ 122.9 | $ 127.3 |
Percent of aggregate unpaid principal balance | 2% | 1.90% |
Fair Value GSE Mortgage Servicing Rights | 30 days | ||
Participating Mortgage Loans [Line Items] | ||
Percent of aggregate unpaid principal balance | 1.30% | 1.20% |
Fair Value GSE Mortgage Servicing Rights | 60 days | ||
Participating Mortgage Loans [Line Items] | ||
Percent of aggregate unpaid principal balance | 0.20% | 0.20% |
Fair Value GSE Mortgage Servicing Rights | 90 days or more | ||
Participating Mortgage Loans [Line Items] | ||
Percent of aggregate unpaid principal balance | 0.50% | 0.50% |
Fair Value GNMA Mortgage Servicing Rights | ||
Participating Mortgage Loans [Line Items] | ||
Assets serviced | $ 17.5 | $ 18.6 |
Percent of aggregate unpaid principal balance | 12.50% | 11.80% |
Fair Value GNMA Mortgage Servicing Rights | 30 days | ||
Participating Mortgage Loans [Line Items] | ||
Percent of aggregate unpaid principal balance | 6.20% | 6.10% |
Fair Value GNMA Mortgage Servicing Rights | 60 days | ||
Participating Mortgage Loans [Line Items] | ||
Percent of aggregate unpaid principal balance | 2% | 2% |
Fair Value GNMA Mortgage Servicing Rights | 90 days or more | ||
Participating Mortgage Loans [Line Items] | ||
Percent of aggregate unpaid principal balance | 4.20% | 3.70% |
Mortgage Servicing - Schedule_2
Mortgage Servicing - Schedule of Composition of Servicing UPB (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Servicing Assets at Fair Value [Line Items] | |||||
MSRs, at fair value | $ 2,327.7 | $ 2,374.7 | $ 2,272.2 | $ 2,580.6 | $ 2,665.2 |
Assets serviced | 162,900 | 169,700 | |||
UPB of loans transferred | 47,658.7 | 46,810.1 | |||
Owned MSRs | |||||
Servicing Assets at Fair Value [Line Items] | |||||
MSRs, at fair value | 1,720.1 | 1,604.6 | |||
Assets serviced | 122,000 | 122,700 | |||
MAV Transferred MSRs | |||||
Servicing Assets at Fair Value [Line Items] | |||||
MSRs, at fair value | 343.6 | 422.8 | |||
Assets serviced | $ 22,300 | $ 28,800 |
Mortgage Servicing - Narrative
Mortgage Servicing - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Transfers and Servicing [Abstract] | ||
Float balances | $ 2,060 | $ 1,560 |
Mortgage Servicing - Schedule_3
Mortgage Servicing - Schedule of Components of Servicing and Subservicing Fees (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Participating Mortgage Loans [Line Items] | ||||
Servicing fee | $ 91.7 | $ 89.4 | $ 182.1 | $ 179.3 |
Subservicing fee (4) | 26.8 | 18.4 | 54.3 | 38 |
MAV | 35.8 | 31.9 | ||
MAV Subservicing fee | 3.8 | 3.8 | ||
Rithm | 37.8 | 118.8 | ||
Servicing and Subservicing fees, total | 157.2 | 184.4 | 313.8 | 371.8 |
Late charges | 8.7 | 9.5 | 16.7 | 19 |
Reverse subservicing ancillary fees | 6.2 | 9.8 | 12.9 | 18 |
Recording fees | 1.4 | 1.3 | 2.6 | 2.5 |
Loan collection fees | 1.8 | 2.3 | 3.6 | 4.9 |
Boarding and deboarding fees | 1 | 0.9 | 1.7 | 1.8 |
Custodial accounts (float earnings) | 31.9 | 26.2 | 59.1 | 46.4 |
GSE forbearance fees | 0.1 | 0.3 | 0.2 | 0.5 |
Other, net | 2.5 | 2.9 | 4.8 | 4.8 |
Total ancillary income | 53.6 | 53.2 | 101.5 | 97.9 |
Servicing and subservicing fees | 210.8 | 237.6 | 415.3 | 469.7 |
Servicing and Subservicing Fees, Owned MSR | 169.7 | 157.6 | 334 | 308.6 |
Servicing and Subservicing Fees, Transferred MSR | 41.1 | 80 | 81.3 | 161.1 |
Ancillary fees - Transferred MSR | 4.2 | 5.3 | 7.8 | 10.4 |
MAV Asset Vehicle LLC | ||||
Participating Mortgage Loans [Line Items] | ||||
MAV | 17.8 | 15.5 | ||
MAV Subservicing fee | 1.9 | 2 | ||
Rithm Capital Corp . and others | ||||
Participating Mortgage Loans [Line Items] | ||||
Rithm | 19.1 | 59.2 | ||
Amount previously sold | $ 11.5 | $ 45.2 | $ 23.4 | $ 90.9 |
Other Financing Liabilities, _3
Other Financing Liabilities, at Fair Value - Schedule of Activity Related to Financing Liability - MSRs Pledged (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
ESS Financing Liability | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | $ 647.9 | $ 883.3 | $ 645.5 | $ 931.7 |
MSR transfers | 5.8 | 93.4 | 12.7 | 97.8 |
Changes in fair value due to inputs and assumptions | 32.5 | 81 | 40.3 | 42.7 |
Realization of expected cash flows | (10.4) | (15.6) | (22.9) | (30.1) |
Total fair value (gain) loss | 22.1 | 65.4 | 17.4 | 12.6 |
Ending balance (1) | 590 | 1,009.5 | 590 | 1,009.5 |
Derecognition of financing liability | (85.7) | (32.5) | (85.7) | (32.5) |
MSR Asset Vehicle LLC | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
UPB of MSRs sold | 30.1 | 17.9 | ||
MSR Asset Vehicle LLC | ESS Financing Liability | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
MSR transfers | 0 | 0.1 | 0 | 0.2 |
Derecognition of financing liability | (85.7) | (32.5) | (85.7) | (32.5) |
Other MSR Capital Partners | ESS Financing Liability | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
MSR transfers | 5.8 | 93.3 | $ 12.7 | $ 97.6 |
MAV Asset Vehicle LLC | Fair Value Agency Mortgage Servicing Rights | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
UPB of MSRs sold | $ 5,500 | $ 2,300 |
Other Financing Liabilities, _4
Other Financing Liabilities, at Fair Value - Schedule of Assets, Liabilities Related to MSR Transfer Agreements (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Servicing Liabilities at Fair Value [Line Items] | ||
Other financing liabilities, at fair value | $ 845.9 | $ 900 |
Other Financing Liabilities, _5
Other Financing Liabilities, at Fair Value – Schedule of Results of Operations in Connection With MSR Transfer Agreements that Do Not Qualify for Sale Accounting (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Related Party Transaction [Line Items] | ||||
Proceeds from Collection of Loans Receivable | $ 36.9 | $ 74.7 | $ 73.6 | $ 150.7 |
Less: Subservicing fee retained by Onity | (6.8) | (19.1) | (13.9) | (38.6) |
Ancillary and other settlement | 3 | 3.5 | 5.3 | 6.7 |
MSR Pledged liability expense | 46.1 | 73 | 91 | 143.3 |
ESS Financing Liability | ||||
Related Party Transaction [Line Items] | ||||
MSR Pledged liability expense | 33.1 | 59.1 | 65 | 118.8 |
ESS Financing Liability | ||||
Related Party Transaction [Line Items] | ||||
MSR Pledged liability expense | 13 | 13.9 | 26.1 | 24.5 |
MSR Asset Vehicle LLC | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from Collection of Loans Receivable | 17.8 | 15.5 | 35.8 | 31.9 |
Less: Subservicing fee retained by Onity | (2.3) | (2.1) | (4.9) | (4.4) |
Ancillary and other settlement | (0.2) | (0.2) | (0.3) | (0.2) |
MSR Pledged liability expense | 15.3 | 13.2 | 30.7 | 27.3 |
Rithm Capital Corp . and others | ||||
Related Party Transaction [Line Items] | ||||
Proceeds from Collection of Loans Receivable | 19.1 | 59.2 | 37.8 | 118.8 |
Less: Subservicing fee retained by Onity | (4.4) | (16.9) | (9) | (34.2) |
Ancillary and other settlement | 3.1 | 3.6 | 5.5 | 6.9 |
MSR Pledged liability expense | $ 17.8 | 45.9 | $ 34.3 | 91.5 |
Subservicing Fee Retained | (12.8) | (25.9) | ||
Net Servicing Fee Remittance | $ 32.4 | $ 65 |
Other Financing Liabilities, _6
Other Financing Liabilities, at Fair Value - Narrative (Details) $ in Millions | Dec. 31, 2023 USD ($) | May 02, 2022 | Jun. 30, 2024 USD ($) subservicer |
Servicing Assets at Fair Value [Line Items] | |||
Automatic renewal term | 1 year | ||
Number of subservicers | subservicer | 3 | ||
Ocwen Financial Corporation | |||
Servicing Assets at Fair Value [Line Items] | |||
Servicing agreements notice of termination | 6 months | ||
Rithm | |||
Servicing Assets at Fair Value [Line Items] | |||
Amount derecognized | $ 421.7 | ||
Servicing agreements notice of termination | 3 months | ||
UPBs Related to PLS MSRs | Rithm Capital Corp | |||
Servicing Assets at Fair Value [Line Items] | |||
UPB of MSRs sold | $ 33,400 | ||
New RMSR Agreements | Rithm | |||
Servicing Assets at Fair Value [Line Items] | |||
UPB of rights to MSRs sold | $ 33,600 | ||
2017 Agreements and New RMSR Agreements | Mortgage Servicing Rights Title Retained | Rithm | |||
Servicing Assets at Fair Value [Line Items] | |||
UPB of rights to MSRs sold | $ 9,500 | ||
Servicing agreements notice of termination | 3 months |
MSR Valuation Allowance, Net (D
MSR Valuation Allowance, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Assets that Continue to be Recognized, Securitized or Asset-Backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||||||||
MSRs, at fair value | $ 2,327.7 | $ 2,327.7 | $ 2,374.7 | $ 2,272.2 | $ 2,580.6 | $ 2,665.2 | ||
Servicing Asset at Fair Value, Period Increase (Decrease) | 37.2 | 79.2 | ||||||
Derivative, Gain (Loss) on Derivative, Net | 46.7 | $ 47.4 | 96 | $ 44 | ||||
MSR valuation adjustments, net | (32.7) | (48.9) | (44.3) | (117.9) | ||||
Total MSR Reserve Fair Value Gains (Losses) | 37.2 | 77.2 | 79.2 | (63.3) | ||||
Other financing liabilities, at fair value ($333.1 and $409.2 due to related party) ($5.4 and $5.6 related to VIEs) | 845.9 | 845.9 | 900 | |||||
MSR | ||||||||
Assets that Continue to be Recognized, Securitized or Asset-Backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||||||||
MSRs, at fair value | 2,300 | 2,300 | ||||||
ESS Financing Liability | ||||||||
Assets that Continue to be Recognized, Securitized or Asset-Backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||||||||
Other financing liabilities, at fair value ($333.1 and $409.2 due to related party) ($5.4 and $5.6 related to VIEs) | 250.5 | 250.5 | 248.9 | |||||
ESS Financing Liability | ||||||||
Assets that Continue to be Recognized, Securitized or Asset-Backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||||||||
Financing Liability At Fair Value | 590 | 1,009.5 | 590 | 1,009.5 | $ 647.9 | $ 645.5 | $ 883.3 | $ 931.7 |
Derivative, Gain (Loss) on Derivative, Net | (50.6) | (65.2) | (104.3) | (51.1) | ||||
Pledged MSR Liabilities | ||||||||
Assets that Continue to be Recognized, Securitized or Asset-Backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||||||||
Servicing Asset at Fair Value, Period Increase (Decrease) | 22.1 | 65.4 | 17.5 | 12.7 | ||||
ESS Financing Liabilities | ||||||||
Assets that Continue to be Recognized, Securitized or Asset-Backed Financing Arrangement Assets and any Other Financial Assets Managed Together [Line Items] | ||||||||
Total Fair value changes in Servicing liability at fair value | $ 2.9 | $ 4.6 | $ (1.7) | $ 9.3 |
Receivables - Schedule of Recei
Receivables - Schedule of Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Receivables [Abstract] | ||
Government-insured loan claims - Forward | $ 37.2 | $ 43.6 |
Government-insured loan claims - Reverse | 60.8 | 64.5 |
Subservicing fees and reimbursable expenses | 14.9 | 14.3 |
Due from custodial accounts | 14.8 | 13.8 |
Receivable from sale of MSRs (holdback) | 6.3 | 5.1 |
Subservicing fees, reimbursable expenses and other - Due from MAV | 0.8 | 3.4 |
Other | 6.4 | 4.5 |
Servicing receivable, total | 141.3 | 149.2 |
Income taxes receivable | 27.8 | 27.1 |
Other receivables | 4.7 | 3.6 |
Other receivables, gross | 173.8 | 179.9 |
Allowance for losses | (20.4) | (25.1) |
Receivables, net ($33.1 and $19.9 related to VIEs) | $ 153.4 | $ 154.8 |
Receivables - Narrative (Detail
Receivables - Narrative (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Income taxes receivable | $ 27.8 | $ 27.1 |
USVI Bureau of Internal Revenue | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Income taxes receivable | 26 | 25.2 |
Servicing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for financing notes | $ 20 | $ 24.6 |
Receivables - Schedule of Chang
Receivables - Schedule of Changes in allowance of Government-Insured Loan Claims (Details) - Government Insured Loans Claims - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Allowance for Losses | ||||
Beginning balance | $ 22.7 | $ 29.5 | $ 25.1 | $ 34.3 |
Provision | 3.1 | 4 | 7.1 | 7.9 |
Charge-offs and other, net | (5.4) | (6.1) | (11.8) | (14.9) |
Ending balance | $ 20.4 | $ 27.4 | $ 20.4 | $ 27.4 |
Investment in Equity Method I_2
Investment in Equity Method Investee and Related Party Transactions (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||
Subservicing Asset, Net Asset Value | $ 10.6 | |
MAV Canopy HoldCo I, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 15% | |
MSR Asset Vehicle LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Unpaid principal balance of loans subserviced | $ 52,900 | |
UPB of MSRs sold | 30.1 | $ 17.9 |
MSR Asset Vehicle LLC | Mortgage Servicing Rights Title Transferred | ||
Schedule of Equity Method Investments [Line Items] | ||
UPB of rights to MSRs sold | $ 22,300 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Other Assets [Abstract] | ||
Accumulated amortization | $ (11.8) | $ (10.1) |
Contingent loan repurchase asset | 341 | 343 |
Derivative margin deposit | 8.6 | 12.8 |
Derivatives, at fair value | 12.6 | 21.6 |
Prepaid expenses (including prepaid lender fees) | 24.9 | 34.3 |
Intangible assets, net (net of accumulated amortization of $11.8 million and $10.1 million) | 4.6 | 6.2 |
REO | 20.9 | 18.3 |
Prepaid representation, warranty and indemnification claims - Agency MSR sale | 5 | 5 |
Deferred tax asset, net | 3.4 | 3.1 |
Other | 4.3 | 5 |
Other Assets, Total | $ 84.3 | $ 106.2 |
Other Financing Liabilities - S
Other Financing Liabilities - Schedule of Financing Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||||
Other financing liabilities, at fair value | $ 845.9 | $ 845.9 | $ 900 | ||
Servicing and subservicing fees | 210.8 | $ 237.6 | 415.3 | $ 469.7 | |
Proceeds from other financing liabilities - Excess Servicing Spread (ESS) liability | 0 | $ 68.7 | |||
Other counterparties for Pledged MSR liab. | Financing Liabilities | |||||
Debt Instrument [Line Items] | |||||
Other financing liabilities, at fair value | 135.3 | 135.3 | 115.3 | ||
ESS Financing Liability | |||||
Debt Instrument [Line Items] | |||||
Other financing liabilities, at fair value | 250.5 | 250.5 | 248.9 | ||
ESS Financing Liability | |||||
Debt Instrument [Line Items] | |||||
Other financing liabilities, at fair value | 590 | 590 | 645.5 | ||
Residential Asset Securitization Trust | |||||
Debt Instrument [Line Items] | |||||
Other financing liabilities, at fair value | 5.4 | 5.4 | 5.6 | ||
Original Rights to Mortgage Servicing Rights Agreements | ESS Financing Liability | |||||
Debt Instrument [Line Items] | |||||
Other financing liabilities, at fair value | 121.6 | 121.6 | 121 | ||
MAV MSR Sale Agreements | ESS Financing Liability | |||||
Debt Instrument [Line Items] | |||||
Other financing liabilities, at fair value | $ 333.1 | $ 333.1 | $ 409.2 |
Borrowings - Schedule of Match
Borrowings - Schedule of Match Funded Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Advance match funded liabilities ($404.3 and $498.9 related to VIEs) | $ 405 | $ 499.7 |
Advance Receivables Backed Notes - Series 2015-VF5 | Total Ocwen Master Advance Receivables Trust (OMART) | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 50 | |
Available borrowing capacity | 96.7 | |
Advance match funded liabilities ($404.3 and $498.9 related to VIEs) | 353.3 | 409.8 |
Advance Receivables Backed Notes, Series 2015-VF1 | Total Ocwen Freddie Advance Funding Facility (OFAF) | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 0 | |
Available borrowing capacity | 149 | |
Advance match funded liabilities ($404.3 and $498.9 related to VIEs) | 51 | 89.1 |
EBO Advance Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 13.7 | |
Available borrowing capacity | 0 | |
Advance match funded liabilities ($404.3 and $498.9 related to VIEs) | 0.7 | 0.9 |
Available borrowing capacity based on amount of eligible collateral | 0 | |
Advance match funded liabilities | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 63.7 | |
Available borrowing capacity | 245.7 | |
Advance match funded liabilities ($404.3 and $498.9 related to VIEs) | $ 405 | $ 499.7 |
Weighted average interest rate | 7.88% | 8.07% |
Available borrowing capacity based on amount of eligible collateral | $ 0 | |
Prepaid lender fees, net | $ 3.8 | $ 5.5 |
Borrowings - Schedule of Mortga
Borrowings - Schedule of Mortgage Loan Warehouse and MSR Financing Facilities (Details) - USD ($) $ in Millions | 1 Months Ended | |||||||||
Mar. 04, 2024 | Apr. 30, 2024 | Mar. 31, 2024 | Jul. 30, 2024 | Jun. 30, 2024 | May 31, 2024 | Feb. 29, 2024 | Dec. 31, 2023 | Jun. 15, 2023 | Jan. 05, 2022 | |
Line of Credit Facility [Line Items] | ||||||||||
Unamortized debt issuance costs | $ (33.9) | $ (21) | ||||||||
Mortgage loan financing facilities | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Weighted average interest rate | 5.90% | 6.15% | ||||||||
Prepaid lender fees, net | $ 0.6 | $ 1 | ||||||||
Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 93 | |||||||||
Available borrowing capacity | 135.4 | |||||||||
Total Financing liabilities | 928.2 | 916.6 | ||||||||
Unamortized debt issuance costs | (0.5) | (0.4) | ||||||||
Outstanding borrowings (MSR financing facilities, net) | $ 927.7 | $ 916.2 | ||||||||
Weighted average interest rate | 8.26% | 8.18% | ||||||||
Secured Debt | Mortgage loan financing facilities | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | $ 1,155.1 | |||||||||
Available borrowing capacity | 266.3 | |||||||||
Total Financing liabilities | 1,224.3 | $ 731.6 | ||||||||
Outstanding borrowings (MSR financing facilities, net) | 1,190.5 | 710.6 | ||||||||
MSR financing facilities | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Available borrowing capacity | 28.2 | |||||||||
August 2022 Master Repurchase Agreement | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 125 | |||||||||
Available borrowing capacity | 45.3 | |||||||||
Total Financing liabilities | 4.7 | 15.7 | ||||||||
Master Repurchase Agreement | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 350 | |||||||||
Available borrowing capacity | 0 | |||||||||
Total Financing liabilities | 0 | 0 | ||||||||
Participation Agreement | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 139.1 | |||||||||
Available borrowing capacity | 0 | |||||||||
Total Financing liabilities | 260.9 | 83.9 | ||||||||
June 2023 Master Repurchase Agreement | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||
Available borrowing capacity | 161.6 | |||||||||
Total Financing liabilities | 38.4 | 64.2 | ||||||||
June 2023 Master Repurchase Agreement2 | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||
Available borrowing capacity | 1 | |||||||||
Total Financing liabilities | 0 | 0 | ||||||||
March 2023 Mortgage Warehouse Agreement | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||
Available borrowing capacity | 40 | |||||||||
Total Financing liabilities | 0 | 0 | ||||||||
March 2023 Mortgage Warehouse Agreement2 | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 117 | |||||||||
Available borrowing capacity | 0 | |||||||||
Total Financing liabilities | 88 | 71.1 | ||||||||
Maximum borrowing capacity | $ 205 | |||||||||
Mortgage Warehouse Agreement | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Available borrowing capacity | 0 | |||||||||
Long-term debt, term | 4 years | |||||||||
Mortgage Warehouse Agreement | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 219.4 | |||||||||
Available borrowing capacity | 0 | |||||||||
Total Financing liabilities | 10.6 | 12.2 | ||||||||
Master Repurchase Agreement2 | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||
Available borrowing capacity | 0 | |||||||||
Total Financing liabilities | 200.7 | 151.7 | ||||||||
Long Term Debt, Certificate, Period Increase | $ 50 | |||||||||
Master Repurchase Agreement2 | Secured Debt | Subsequent Event | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Total Financing liabilities | $ 200 | |||||||||
Loan and Security Agreement | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||
Available borrowing capacity | 0 | |||||||||
Total Financing liabilities | 0 | 0 | ||||||||
April 2023 Master Repurchase Agreement | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 204.5 | |||||||||
Available borrowing capacity | 0 | |||||||||
Total Financing liabilities | 295.5 | 168.4 | ||||||||
$200 million April 2024 Master Repurchase Agreement | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||
Available borrowing capacity | 0 | |||||||||
Total Financing liabilities | 0 | 0 | ||||||||
OLIT 2023 Notes | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||
Available borrowing capacity | $ 0 | |||||||||
Total Financing liabilities | $ 268.6 | $ 264.9 | ||||||||
Interest rate (as a percent) | 3% | |||||||||
OLIT Notes FY 2022 | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Total Financing liabilities | $ 127 | 164.4 | ||||||||
OLIT Asset-Backed Notes, Series 2024-HBI | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||
Available borrowing capacity | 0 | |||||||||
Total Financing liabilities | 187.1 | 0 | ||||||||
Agency Mortgage Servicing Rights Financing Facility | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||
Available borrowing capacity | 119.9 | |||||||||
Total Financing liabilities | 245.1 | 242.9 | ||||||||
Ginnie Mae Mortgage Servicing Rights Financing Facility | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 93 | |||||||||
Available borrowing capacity | 0 | |||||||||
Total Financing liabilities | 207 | 212.5 | ||||||||
Long Term Debt, Certificate, Period Increase | $ 300 | |||||||||
Ocwen Excess Spread-Collateralized Notes, Series 2019/2022-PLS1 Class A | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||
Available borrowing capacity | 0 | |||||||||
Total Financing liabilities | $ 32.1 | 39.2 | ||||||||
Interest rate (as a percent) | 5.114% | |||||||||
Debt instrument, face amount | $ 75 | |||||||||
PLS1 Notes Issuer Membership Interest Master Repurchase Agreement | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||
Available borrowing capacity | 0 | |||||||||
Total Financing liabilities | $ 34 | 34 | 0 | |||||||
PLS1 Notes Issuer Membership Interest Master Repurchase Agreement | Secured Debt | PLS Issuer | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 100% | |||||||||
OASIS Series 2014-1 | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||
Available borrowing capacity | 0 | |||||||||
Total Financing liabilities | 25.5 | 28.1 | ||||||||
Agency MSR Financing Facility Revolving Loan | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Prepaid lender fees, net | 2.4 | 3.6 | ||||||||
Agency MSR Financing Facility Revolving Loan | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||
Available borrowing capacity | 15.5 | |||||||||
Total Financing liabilities | 384.5 | 393.9 | ||||||||
September 2024 Loan and Security Agreement | Secured Debt | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Uncommitted available borrowing capacity | 0 | |||||||||
Available borrowing capacity | 18.4 | |||||||||
Total Financing liabilities | $ 11.6 | $ 0 |
Borrowings - Schedule of Senior
Borrowings - Schedule of Senior Notes (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (33.9) | $ (21) |
Senior notes, net ($245.3 and $239.7 due to related parties) | 555.2 | 595.8 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior notes | 597.6 | 645 |
Discount | (2.7) | (3.9) |
Unamortized discount and debt issuance costs | $ 39.7 | 45.3 |
7.875% Senior Notes, Due 2026 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 7.875% | |
Senior notes | $ 312.6 | 360 |
7.875% Senior Notes, Due 2026 | Secured Debt | Before March 15, 2025 | ||
Debt Instrument [Line Items] | ||
Redemption price | 101.969% | |
7.875% Senior Notes, Due 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Discount | $ (0.6) | (0.9) |
Unamortized debt issuance costs | $ (2.1) | (3) |
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 12% | |
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 285 | 285 |
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | Payment in Kind (PIK) Note | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 13.25% | |
12% Paid in Cash or 13.25% Paid in Kind Senior Notes, Due 2027 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Discount | $ (34.3) | (39.1) |
Unamortized debt issuance costs | $ (5.4) | $ (6.2) |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 29, 2024 | |
Debt Instrument [Line Items] | ||||||
Gain on extinguishment of debt | $ 0 | $ 0 | $ 1.4 | $ 0 | ||
PMC Senior Secured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, repurchased amount | $ 47.4 | |||||
Total repurchase open market price | $ 45.5 | |||||
Gain on extinguishment of debt | $ 1.4 | |||||
Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Covenant compliance, consolidated tangible net worth at period end | 300 | 300 | ||||
Restrictive liquidity requirements | 75 | 75 | ||||
Minimum | PMC Senior Secured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Covenant compliance, consolidated tangible net worth at period end | $ 275 | $ 275 |
Borrowings - Schedule of Assets
Borrowings - Schedule of Assets Held as Collateral Related to Secured Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Debt Instrument [Line Items] | |||
Cash and cash equivalents | $ 203.1 | $ 201.6 | |
Restricted cash | 46.3 | 53.5 | |
Loans held for sale | 1,107 | 677.3 | |
Loans held for investment, at fair value | 8,227.8 | 7,975.5 | |
Unsecuritized loans | 113 | 101.5 | $ 121 |
Mortgage servicing rights (MSRs), at fair value | 2,327.7 | 2,272.2 | |
Advances, net | 550.6 | 678.8 | |
Receivables, net ($33.1 and $19.9 related to VIEs) | 153.4 | 154.8 | |
REO | 20.9 | 18.3 | |
Total Assets | 13,084.7 | $ 12,513.7 | |
Assets | |||
Debt Instrument [Line Items] | |||
Cash and cash equivalents | 203.1 | ||
Restricted cash | 46.3 | ||
Loans held for sale | 1,107 | ||
Loans held for investment, at fair value | 8,109.4 | ||
Unsecuritized loans | 113 | ||
Mortgage servicing rights (MSRs), at fair value | 1,720.1 | ||
Advances, net | 550.6 | ||
Receivables, net ($33.1 and $19.9 related to VIEs) | 153.4 | ||
REO | 20.9 | ||
Total Assets | 12,023.8 | ||
Pledged Assets | |||
Debt Instrument [Line Items] | |||
Cash and cash equivalents | 0 | ||
Restricted cash | 46.3 | ||
Loans held for sale | 1,063.7 | ||
Loans held for investment, at fair value | 8,109.4 | ||
Unsecuritized loans | 81.9 | ||
Mortgage servicing rights (MSRs), at fair value | 1,729.1 | ||
Advances, net | 469.2 | ||
Receivables, net ($33.1 and $19.9 related to VIEs) | 56.4 | ||
REO | 17.9 | ||
Collateralized Borrowings | |||
Debt Instrument [Line Items] | |||
Cash and cash equivalents | 0 | ||
Restricted cash | 9.4 | ||
Loans held for sale | 1,063.6 | ||
Loans held for investment, at fair value | 8,035.4 | ||
Unsecuritized loans | 71.8 | ||
Mortgage servicing rights (MSRs), at fair value | 1,147.7 | ||
Advances, net | 435.8 | ||
Receivables, net ($33.1 and $19.9 related to VIEs) | 60.3 | ||
REO | 19.3 | ||
Total Assets | 10,843.1 | ||
Senior Lien | Asset Pledged as Collateral with Right | |||
Debt Instrument [Line Items] | |||
Total Assets | 11,573.9 | ||
Unencumbered Assets | |||
Debt Instrument [Line Items] | |||
Cash and cash equivalents | 203.1 | ||
Restricted cash | 0 | ||
Loans held for sale | 43.3 | ||
Loans held for investment, at fair value | 0 | ||
Unsecuritized loans | 31.2 | ||
Mortgage servicing rights (MSRs), at fair value | 0 | ||
Advances, net | 81.5 | ||
Receivables, net ($33.1 and $19.9 related to VIEs) | 97 | ||
REO | 3 | ||
Total Assets | $ 458.9 |
Borrowings - Schedule of Second
Borrowings - Schedule of Second Lien Priority on Specified Assets Carried on Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Advances, net | $ 550.6 | $ 678.8 |
Mortgage servicing rights (MSRs), at fair value | 2,327.7 | 2,272.2 |
Cash and cash equivalents | 203.1 | 201.6 |
Total assets | 13,084.7 | $ 12,513.7 |
Second Lien | ||
Debt Instrument [Line Items] | ||
Advances, net | 153 | |
Specified deferred servicing fee | 5.4 | |
Mortgage servicing rights (MSRs), at fair value | 674.5 | |
Cash and cash equivalents | 127.3 | |
Specified advance facility reserves | 10.6 | |
Specified loan value | 78 | |
Specified residual value | 0 | |
Total assets | $ 1,048.7 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Other Liabilities Disclosure [Abstract] | ||
Due to Rithm - Advance collections and servicing fees | $ 54.2 | $ 50.3 |
Other accrued expenses | 48.5 | 67.5 |
Liability for indemnification obligations | 36.1 | 35.5 |
Checks held for escheat | 53.3 | 52 |
Accrued legal fees and settlements | 15.1 | 8.3 |
Servicing-related obligations | 47.4 | 48.4 |
Derivative related payables | 12.1 | 10.7 |
Derivatives, at fair value | 9.9 | 7 |
MSR purchase price holdback | 3.6 | 3.8 |
Lease liability | 10.2 | 10.2 |
Liability for uncertain tax positions | 12.8 | 12.2 |
Accrued interest payable | 15.3 | 14.3 |
Income taxes payable | 2.1 | 8.2 |
Liability for unfunded pension obligation and India gratuity plan | 7.8 | 9.2 |
Other | 2.7 | 3.2 |
Mortgage insurance premium payable | 5.1 | 5 |
Excess servicing fee spread payable | 1.8 | 3.6 |
Total other liabilities | $ 337.9 | $ 349.3 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities - Summary of Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Derivative [Line Items] | |||||
Notional balance | $ 4,419.2 | $ 4,419.2 | $ 3,978.7 | ||
Derivatives, at fair value | 12.6 | 12.6 | 21.6 | ||
Derivative liability, notional amount | 2,730.5 | 2,730.5 | 920.2 | ||
Derivative liability, fair value | (9.9) | (9.9) | (7) | ||
Gains (losses) on derivatives | (46.7) | $ (47.4) | (96) | $ (44) | |
Forward Sales Of Reverse Loans | |||||
Derivative [Line Items] | |||||
Notional balance | 20 | 20 | 0 | ||
Derivatives, at fair value | 0 | 0 | 0 | ||
Derivative liability, notional amount | 20 | 20 | 50 | ||
Derivative liability, fair value | 0 | 0 | (0.1) | ||
Gains (losses) on derivatives | (0.2) | 0 | 0.1 | 0 | |
Forward loans IRLCs | |||||
Derivative [Line Items] | |||||
Notional balance | 1,532.4 | 1,532.4 | 592.5 | ||
Derivatives, at fair value | 3.5 | 3.5 | 5.1 | ||
Gains (losses) on derivatives | (1) | (3.2) | (1.6) | 2.4 | |
Reverse loans IRLCs | |||||
Derivative [Line Items] | |||||
Notional balance | 22.2 | 22.2 | 22.1 | ||
Derivatives, at fair value | 0.6 | 0.6 | 0.6 | ||
Gains (losses) on derivatives | 0.1 | (0.2) | 0.1 | (0.3) | |
TBA forward MBS trades | |||||
Derivative [Line Items] | |||||
Notional balance | 2,269.7 | 2,269.7 | 1,818.6 | ||
Derivatives, at fair value | 7.5 | 7.5 | 10.1 | ||
Derivative liability, notional amount | 2,110.5 | 2,110.5 | 854.9 | ||
Derivative liability, fair value | (8.2) | (8.2) | (6.8) | ||
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Notional balance | 250 | 250 | 790 | ||
Derivatives, at fair value | 0.5 | 0.5 | 3.9 | ||
Derivative liability, notional amount | 350 | 350 | 0 | ||
Derivative liability, fair value | (1.5) | (1.5) | 0 | ||
Interest rate option contracts | |||||
Derivative [Line Items] | |||||
Notional balance | 250 | 250 | 750 | ||
Derivatives, at fair value | 0.2 | 0.2 | 1.9 | ||
Derivative liability, notional amount | 250 | 250 | 0 | ||
Derivative liability, fair value | (0.2) | (0.2) | 0 | ||
TBA Forward Pipelines Trades | |||||
Derivative [Line Items] | |||||
Gains (losses) on derivatives | 4.8 | 21.2 | 9.7 | 4.8 | |
Interest Rate Swap Futures And TBA Forward MBS Trades | |||||
Derivative [Line Items] | |||||
Gains (losses) on derivatives | (50.6) | (65.2) | (104.3) | (51.1) | |
Other | |||||
Derivative [Line Items] | |||||
Derivative liability, notional amount | 0 | 0 | 15.3 | ||
Derivative liability, fair value | 0 | 0 | (0.1) | ||
Other Derivatives | |||||
Derivative [Line Items] | |||||
Gains (losses) on derivatives | 0 | 0 | 0 | 0.3 | |
Forward Trades | |||||
Derivative [Line Items] | |||||
Notional balance | 0 | 0 | 5.5 | ||
Derivatives, at fair value | 0 | 0 | 0 | ||
Forward LHFS Trades | |||||
Derivative [Line Items] | |||||
Gains (losses) on derivatives | 0.3 | $ 0 | 0 | $ 0 | |
Treasury Futures Contracts | |||||
Derivative [Line Items] | |||||
Notional balance | 75 | 75 | 0 | ||
Derivatives, at fair value | $ 0.1 | $ 0.1 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Narrative (Details) | 1 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Jun. 30, 2024 | Sep. 30, 2023 | Mar. 31, 2024 | Jun. 30, 2024 | Dec. 31, 2022 | |
Derivative [Line Items] | ||||||
Change in interest rate | 0.0050 | |||||
Minimum | ||||||
Derivative [Line Items] | ||||||
Loans held-for-sale, period of sale | 5 days | 5 days | ||||
Minimum Hedge Coverage Ratio | 25% | 90% | 60% | 95% | ||
Minimum | Forward loans IRLCs | ||||||
Derivative [Line Items] | ||||||
Loan commitment, term | 5 days | |||||
Loan commitment, average term | 40 days | |||||
Loan Commitment to Correspondents | 5 days | |||||
Maximum | ||||||
Derivative [Line Items] | ||||||
Loans held-for-sale, period of sale | 30 days | 30 days | ||||
Minimum Hedge Coverage Ratio | 30% | 110% | 105% | |||
Maximum | Forward loans IRLCs | ||||||
Derivative [Line Items] | ||||||
Loan commitment, term | 75 days | |||||
Loan commitment, average term | 60 days | |||||
Loan Commitment to Correspondents | 30 days |
Interest Expense - Schedule of
Interest Expense - Schedule of Components of Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt securities: | ||||
Interest expense | $ 73.1 | $ 68.3 | $ 140.5 | $ 130.5 |
OFC Senior Secured Notes | ||||
Debt securities: | ||||
Interest expense | 11.4 | 10.9 | 22.6 | 21.7 |
Amortization of Debt Issuance Costs and Discounts | 2.8 | 2.4 | 5.6 | 4.7 |
Senior Notes | ||||
Debt securities: | ||||
Interest expense | 6.5 | 7.8 | 13.9 | 15.5 |
MSR financing facilities | ||||
Debt securities: | ||||
Interest expense | 19.6 | 17.8 | 37.5 | 35.3 |
Mortgage loan financing facilities | ||||
Debt securities: | ||||
Interest expense | 24.8 | 19.8 | 43.5 | 33.4 |
Advance match funded liabilities | ||||
Debt securities: | ||||
Interest expense | 9.3 | 10.4 | 19.8 | 21.1 |
Escrow | ||||
Debt securities: | ||||
Interest expense | $ 1.4 | $ 1.6 | $ 3.2 | $ 3.5 |
Basic and Diluted Earnings pe_3
Basic and Diluted Earnings per Share - Schedule of Reconciliation of Calculation of Basic Earnings per Share to Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Weighted average common shares outstanding | ||||
Net income (loss) | $ 10.5 | $ 15.5 | $ 40.6 | $ (24.7) |
Weighted average shares of common stock (in shares) | 7,821,128 | 7,652,563 | 7,766,331 | 7,593,391 |
Basic earnings per share (in USD per share) | $ 1.34 | $ 2.02 | $ 5.23 | $ (3.25) |
Common stock warrants (in shares) | 3,713 | 115,977 | 36,148 | 0 |
Common stock awards (in shares) | 93,831 | 151,047 | 179,950 | 0 |
Dilutive weighted average shares of common stock (in shares) | 7,918,672 | 7,919,587 | 7,982,429 | 7,593,391 |
Diluted earnings per share (in USD per share) | $ 1.33 | $ 1.95 | $ 5.09 | $ (3.25) |
Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share | ||||
Anti-dilutive Securities (in shares) | 264,110 | 84,748 | 148,027 | 59,703 |
Market Based | ||||
Stock options and common stock awards excluded from the computation of diluted earnings (loss) per share | ||||
Anti-dilutive Securities (in shares) | 64,085 | 61,354 | 64,085 | 61,354 |
Business Segment Reporting - Na
Business Segment Reporting - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
MSR valuation adjustments, net | $ 32.7 | $ 48.9 | $ 44.3 | $ 117.9 |
Interest expense | $ 73.1 | $ 68.3 | $ 140.5 | $ 130.5 |
Business Segment Reporting - Sc
Business Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Results of Operations | |||||
Servicing and subservicing fees | $ 210.8 | $ 237.6 | $ 415.3 | $ 469.7 | |
Gain on reverse loans held for investment and HMBS-related borrowings, net | 8.5 | 0.7 | 23.9 | 21.9 | |
Gain on loans held for sale, net | 16.5 | 25.3 | 27.4 | 28.1 | |
Other revenue, net | 10.6 | 8.5 | 18.8 | 14.1 | |
Revenue | 246.4 | 272 | 485.5 | 533.9 | |
MSR valuation adjustments, net | (32.7) | (48.9) | (44.3) | (117.9) | |
Compensation and benefits | 55 | 57.7 | 108.6 | 115.7 | |
Servicing and origination | 13.9 | 17.6 | 29 | 33.3 | |
Technology and communications | 13 | 13 | 25.7 | 26.4 | |
Professional Fees, Net | (16.9) | (3.6) | |||
Professional Fees | 10.7 | 22.8 | |||
Occupancy, equipment and mailing | 7.5 | 7.7 | 15.2 | 16.5 | |
Corporate Overhead Allocations | 0 | 0 | 0 | 0 | |
Other expenses | 3.9 | 5.1 | 7.2 | 10.1 | |
Operating expenses | 104 | 84.3 | 208.4 | 198.4 | |
Other income (expense): | |||||
Interest income | 22.5 | 20.3 | 40 | 34.4 | |
Interest expense | (73.1) | (68.3) | (140.5) | (130.5) | |
Pledged MSR liability expense | (46.1) | (73) | (91) | (143.3) | |
Earnings of equity method investee | 3.1 | 2.9 | 5.8 | 3.1 | |
Gain on extinguishment of debt | 0 | 0 | 1.4 | 0 | |
Other, net | (2.7) | (4.4) | (3.4) | (3.2) | |
Other income (expense), net | (96.2) | (122.5) | (187.5) | (239.5) | |
Income (loss) before income taxes | 13.5 | 16.3 | 45.3 | (22) | |
Total Assets | |||||
Total Assets | 13,084.7 | 13,084.7 | $ 12,513.7 | ||
Operating Segments | Servicing | |||||
Results of Operations | |||||
Servicing and subservicing fees | 210.1 | 237.2 | 414.3 | 469 | |
Gain on reverse loans held for investment and HMBS-related borrowings, net | 2.8 | (4.1) | 11.4 | 9.9 | |
Gain on loans held for sale, net | (0.2) | 15.1 | 1.7 | 13.8 | |
Other revenue, net | 4.4 | 4.5 | 8.8 | 7 | |
Revenue | 217.2 | 252.7 | 436.2 | 499.8 | |
MSR valuation adjustments, net | (35.8) | (50.5) | (48.3) | (121.4) | |
Compensation and benefits | 24.5 | 26.7 | 49.8 | 56.1 | |
Servicing and origination | 11.2 | 16.4 | 24.4 | 31.6 | |
Technology and communications | 6.2 | 6.1 | 12.3 | 12.5 | |
Professional Fees, Net | 11.3 | 19.3 | |||
Professional Fees | 2.8 | 9.9 | |||
Occupancy, equipment and mailing | 6.6 | 7.2 | 13.5 | 14.9 | |
Corporate Overhead Allocations | 10.8 | 11.1 | 21.7 | 22.6 | |
Other expenses | 0.9 | 2.2 | 2 | 4.5 | |
Operating expenses | 63.1 | 81.1 | 133.6 | 161.4 | |
Other income (expense): | |||||
Interest income | 7.2 | 5.9 | 13.9 | 10.1 | |
Interest expense | (47) | (43.3) | (92.8) | (84.8) | |
Pledged MSR liability expense | (46.1) | (73.1) | (91.1) | (143.4) | |
Earnings of equity method investee | 3.1 | 2.9 | 5.8 | 3.1 | |
Gain on extinguishment of debt | 0 | 0 | 0 | 0 | |
Other, net | (2.9) | (4.5) | (3.4) | (4.9) | |
Other income (expense), net | (85.7) | (112.1) | (167.6) | (220) | |
Income (loss) before income taxes | 32.6 | 9 | 86.7 | (3) | |
Total Assets | |||||
Total Assets | 11,904.4 | 11,904.4 | 11,687.6 | ||
Operating Segments | Originations | |||||
Results of Operations | |||||
Servicing and subservicing fees | 0.7 | 0.4 | 1 | 0.8 | |
Gain on reverse loans held for investment and HMBS-related borrowings, net | 5.7 | 4.8 | 12.5 | 12 | |
Gain on loans held for sale, net | 16.7 | 10.2 | 25.7 | 14.3 | |
Other revenue, net | 6.2 | 4 | 10 | 7.1 | |
Revenue | 29.2 | 19.3 | 49.3 | 34.1 | |
MSR valuation adjustments, net | 3.1 | 1.6 | 4 | 3.5 | |
Compensation and benefits | 11.3 | 10.9 | 21.5 | 20.5 | |
Servicing and origination | 2.3 | 1 | 3.7 | 1.1 | |
Technology and communications | 1.7 | 1.8 | 3.4 | 3.5 | |
Professional Fees, Net | 0.4 | 0.8 | |||
Professional Fees | 0.5 | 0.8 | |||
Occupancy, equipment and mailing | 0.5 | 0.5 | 1 | 1 | |
Corporate Overhead Allocations | 4.3 | 5 | 8.2 | 9.9 | |
Other expenses | 1.4 | 1.5 | 2.4 | 3 | |
Operating expenses | 22 | 21.1 | 41 | 39.8 | |
Other income (expense): | |||||
Interest income | 14.2 | 13.1 | 23.8 | 22.1 | |
Interest expense | (14.9) | (14.1) | (25.3) | (24) | |
Pledged MSR liability expense | 0 | 0 | 0 | 0 | |
Earnings of equity method investee | 0 | 0 | 0 | 0 | |
Gain on extinguishment of debt | 0 | 0 | 0 | 0 | |
Other, net | (0.2) | (0.2) | (0.3) | 0 | |
Other income (expense), net | (0.9) | (1.2) | (1.7) | (1.9) | |
Income (loss) before income taxes | 9.4 | (1.3) | 10.5 | (4) | |
Total Assets | |||||
Total Assets | 913.5 | 913.5 | 551.9 | ||
Operating Segments | Corporate Items and Other | |||||
Results of Operations | |||||
Servicing and subservicing fees | 0 | 0 | 0 | 0 | |
Gain on reverse loans held for investment and HMBS-related borrowings, net | 0 | 0 | 0 | 0 | |
Gain on loans held for sale, net | 0 | 0 | 0 | 0 | |
Other revenue, net | 0 | 0 | 0 | 0 | |
Revenue | 0 | 0 | 0 | 0 | |
MSR valuation adjustments, net | 0 | 0 | 0 | 0 | |
Compensation and benefits | 19.2 | 20.1 | 37.3 | 39.2 | |
Servicing and origination | 0.5 | 0.2 | 0.8 | 0.5 | |
Technology and communications | 5 | 5.1 | 9.9 | 10.5 | |
Professional Fees, Net | (28.6) | (23.7) | |||
Professional Fees | 7.4 | 12 | |||
Occupancy, equipment and mailing | 0.4 | 0 | 0.8 | 0.6 | |
Corporate Overhead Allocations | (15) | (16.2) | (29.9) | (32.4) | |
Other expenses | 1.5 | 1.4 | 2.8 | 2.7 | |
Operating expenses | 18.9 | (17.8) | 33.7 | (2.7) | |
Other income (expense): | |||||
Interest income | 1.1 | 1.2 | 2.3 | 2.2 | |
Interest expense | (11.2) | (10.9) | (22.4) | (21.7) | |
Pledged MSR liability expense | 0 | 0 | 0.1 | 0.1 | |
Earnings of equity method investee | 0 | 0 | 0 | 0 | |
Gain on extinguishment of debt | 0 | 0 | 1.4 | 0 | |
Other, net | 0.4 | 0.4 | 0.4 | 1.8 | |
Other income (expense), net | (9.6) | (9.2) | (18.2) | (17.6) | |
Income (loss) before income taxes | (28.5) | $ 8.7 | (51.9) | $ (15) | |
Total Assets | |||||
Total Assets | $ 266.8 | $ 266.8 | $ 274.3 |
Business Segment Reporting - _2
Business Segment Reporting - Schedule of Depreciation and Amortization by Segment (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Amortization of intangibles | $ 1.7 | $ 2.9 | |
Total Assets | 13,084.7 | $ 12,513.7 | |
Servicing | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 11,904.4 | 11,687.6 | |
Originations | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 913.5 | 551.9 | |
Corporate and Other [Member] | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total Assets | $ 266.8 | $ 274.3 |
Regulatory Requirements - Narra
Regulatory Requirements - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Public Utilities, General Disclosures [Line Items] | ||
Net worth requirement | $ 445.5 | |
Cash and cash equivalents | 203.1 | $ 201.6 |
Assets serviced | $ 162,900 | 169,700 |
Percentage of portfolio to total forward owned servicing | 11% | |
Percentage of government-insured loans UPB to total UPB serviced and sub-serviced | 6% | |
Owned MSRs | ||
Public Utilities, General Disclosures [Line Items] | ||
Assets serviced | $ 122,000 | $ 122,700 |
Owned MSRs | Unpaid Principal Balance | ||
Public Utilities, General Disclosures [Line Items] | ||
Assets serviced | 17,200 | |
PHH Mortgage Corporation | ||
Public Utilities, General Disclosures [Line Items] | ||
Net worth | 558.1 | |
Restrictive liquidity requirements | 119.5 | |
Eligible liquidity | $ 248.4 |
Commitments - Narrative (Detail
Commitments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Other Commitments [Line Items] | |||
Threshold of outstanding principal balance on maximum claim amount (as a percent) | 98% | ||
Floating Rate Reverse Mortgage Loans | |||
Other Commitments [Line Items] | |||
Additional borrowing capacity to borrowers | $ 1,800 | $ 1,800 | $ 1,800 |
Funded amount in connection with reverse mortgage loans | 119.5 | ||
Forward Mortgage Loan Interest Rate Lock Commitments | |||
Other Commitments [Line Items] | |||
Short-term commitments to lend | 1,500 | 1,500 | |
Reverse loans IRLCs | |||
Other Commitments [Line Items] | |||
Short-term commitments to lend | 22.2 | $ 22.2 | |
Customer Concentration Risk | Servicing And Subservicing Fees Benchmark | Rithm | |||
Other Commitments [Line Items] | |||
Concentration risk (percent) | 16% | ||
Concentration Risk, Amount | $ 49.5 | ||
Customer Concentration Risk | Servicing And Subservicing Fees Benchmark | MAV Asset Vehicle LLC | |||
Other Commitments [Line Items] | |||
Concentration risk (percent) | 13% | ||
Concentration Risk, Amount | $ 39.6 | ||
Customer Concentration Risk | Unpaid Principal Balance | Rithm Capital Corp | |||
Other Commitments [Line Items] | |||
Concentration risk (percent) | 14% | ||
Customer Concentration Risk | Unpaid Principal Balance | MAV Asset Vehicle LLC | |||
Other Commitments [Line Items] | |||
Concentration risk (percent) | 17% | ||
Customer Concentration Risk | Loan Count | Rithm Capital Corp | |||
Other Commitments [Line Items] | |||
Concentration risk (percent) | 25% | ||
Customer Concentration Risk | Loan Count | MAV Asset Vehicle LLC | |||
Other Commitments [Line Items] | |||
Concentration risk (percent) | 14% | ||
Customer Concentration Risk | Delinquent Loans | Rithm | |||
Other Commitments [Line Items] | |||
Concentration risk (percent) | 64% | ||
Customer Concentration Risk | Servicing and Subservicing Portfolio Benchmark | MAV Asset Vehicle LLC | |||
Other Commitments [Line Items] | |||
Concentration Risk, Amount | $ 52,900 |
Commitments - Schedule of Activ
Commitments - Schedule of Activity Related to HMBS Repurchases (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Long-term Purchase Commitment [Line Items] | ||
Securitized Home Equity Conversion Mortgage-Backed Security | $ 7,701.9 | |
Long-term Purchase Commitment [Roll Forward] | ||
Beginning balance, repurchase securities, amount | 186 | |
Additions, repurchase securities, amount | 81.2 | $ 181.3 |
Recoveries, net, repurchase securities, amount | (90) | |
Transfers, repurchase securities, amount | 0 | |
Change in value, repurchase securities, amount | (1.9) | |
Ending balance, repurchase securities, amount | 175.3 | |
Maximum Claim Amount, Less Than 92% | ||
Long-term Purchase Commitment [Line Items] | ||
Securitized Home Equity Conversion Mortgage-Backed Security | 7,204 | |
Maximum Claim Amount, Greater than 92% and Less Than 95% | ||
Long-term Purchase Commitment [Line Items] | ||
Securitized Home Equity Conversion Mortgage-Backed Security | 256.2 | |
Maximum Claim Amount, Greater than 95% and less Than 98% | ||
Long-term Purchase Commitment [Line Items] | ||
Securitized Home Equity Conversion Mortgage-Backed Security | 241.6 | |
Active | ||
Long-term Purchase Commitment [Roll Forward] | ||
Beginning balance, repurchase securities, amount | 55.4 | |
Additions, repurchase securities, amount | 50.7 | |
Recoveries, net, repurchase securities, amount | (58.1) | |
Transfers, repurchase securities, amount | 0.1 | |
Change in value, repurchase securities, amount | 0.1 | |
Ending balance, repurchase securities, amount | 48.2 | |
Inactive | ||
Long-term Purchase Commitment [Roll Forward] | ||
Beginning balance, repurchase securities, amount | 130.6 | |
Additions, repurchase securities, amount | 30.5 | |
Recoveries, net, repurchase securities, amount | (32) | |
Transfers, repurchase securities, amount | (0.1) | |
Change in value, repurchase securities, amount | (2) | |
Ending balance, repurchase securities, amount | $ 127.1 |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) $ in Millions | 1 Months Ended | |
Jun. 30, 2024 USD ($) case loan | Jun. 30, 2023 USD ($) loan | |
Loss Contingency [Abstract] | ||
Accrued penalty | $ 15.1 | |
Amount settled | $ 3 | |
Number of cases | case | 5 | |
Warranty repurchase demands unpaid principal balance | $ 24.5 | $ 39.1 |
Warranty repurchase demands number of loans | loan | 69 | 142 |
Contingencies - Schedule of Ind
Contingencies - Schedule of Indemnification Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Indemnification Obligations Liability [Roll Forward] | ||||
Beginning balance | $ 32.9 | $ 41.6 | ||
Provision for (reversal of) representation and warranty obligations | (1) | 2.1 | ||
Provision for representation and warranty obligations - New production liability | 0.9 | 0.6 | ||
Charge-offs and other | 0.2 | (6.2) | ||
Ending balance | $ 33 | $ 38.1 | 33 | 38.1 |
Servicing and subservicing fees | $ 210.8 | $ 237.6 | $ 415.3 | $ 469.7 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | Jul. 26, 2024 USD ($) |
Waterfall | |
Subsequent Event [Line Items] | |
Liquidation preference | $ 51.7 |
Dividend rate | 7.875% |
Dividend rate increase | 2.50% |
Dividend rate cap | 15% |
Reverse Mortgage Assets | Mortgage Assets Management, LLC | |
Subsequent Event [Line Items] | |
Net asset value | $ 55 |
HMBS - Related Borrowings | |
Subsequent Event [Line Items] | |
Unpaid principal balance | $ 3,000 |